Page images
PDF
EPUB
[blocks in formation]

SECTION 23 (u). DEDUCTIONS FROM GROSS INCOME: ALIMONY, ETC., PAYMENTS

REGULATIONS 118, SECTION 39.23 (u)-1: Periodic

alimony payments.

Monthly payments made by husband to his former wife under a decree where payments for a period of less than ten years are contingent. See Rev. Rul. 59-45, page 73.

SECTION 24 (b).-ITEMS NOT DEDUCTIBLE: LOSSES FROM SALES OR EXCHANGES OF PROPERTY

REGULATIONS 118, SECTION 39.24 (b)-1: Losses

from sales or exchanges between certain classes

of persons.

Stock in a corporation owned by collateral relatives for purposes of determining constructive ownership of stock. See Rev. Rul. 59-43, page 12.

PART VI

ITEMS OF GENERAL INTEREST

CERTIFICATION OF STATE UNEMPLOYMENT
COMPENSATION LAWS FOR 1958 1

Announcement 59-11

In accordance with the requirements of sections 3304 (c) and 3303(b)(1) of the Internal Revenue Code of 1954, as amended, the Secretary of Labor has certified to the Secretary of the Treasury, for the taxable year 1958, each of the 48 States, Alaska and Hawaii, and the District of Columbia, and the unemployment compensation laws thereof.

124 F.R. 174,

(80)

U. S. GOVERNMENT PRINTING OFFICE: 1959

[blocks in formation]

page 10.

Revenue Ruling 57-506 is distinguished from Revenue Rev. Rul. 59-47,
Ruling 57-507 with respect to the issue relative to
the tax consequences of a transfer of appreciated
property in trust pursuant to a separation agreement
between a taxpayer and his wife.

An amount received by a civil service employee, in ac- Rev. Rul. 59-48,
cordance with a Congressional private law, represent-

ing a reimbursement for loss resulting from an ad-
ministrative error, constitutes back pay.

page 11.

page 44.

An amendment to Regulations 118, relating to the un- T. D. 6352,
limited deduction for charitable and other contribu-
tions, conforms those regulations to Public Law 408
(84th Cong.).

The regulations under section 641 (b) of the 1954 Code, T. D. 6353,
relating to the computation and payment of income
taxes by an estate or trust, have been amended.

page 8.

Regulations have been proposed to implement the pro- Announcement,

visions of the Retirement-Straight Line Adjustment
Act of 1958, relating to changes from the retirement
to the straight-line method of computing depreciation.

page 5.

EMPLOYMENT TAX:

Under the circumstances, an individual engaged by a Rev. Rul. 59-49,
title company as a title searcher is an employee of the
company for Federal employment tax purposes.

page 12.

page 14.

Certain described services performed by an ordained Rev. Rul. 59-50,
minister of a church for a religious organization are
determined to be in "the exercise of his ministry" for
employment tax purposes.

page 16.

An individual performing services as a "supervisor" for Rev. Rul. 59-51,
a dairy herd improvement association is, under the
circumstances involved, an employee of the associa-
tion.

Regulations have been adopted with respect to the gen- T. D. 6354,
eral and the applicable administrative provisions of
the 1954 Code relating to employment taxes.

(Continued on page 3)

page 19.

TREASURY DEPARTMENT • INTERNAL REVENUE SERVICE

494366-59-1

INTRODUCTION

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for the announcement of official rulings and procedures of the Internal Revenue Service, and for the publication of Treasury Decisions, Executive Orders, tax conventions, legislation, and court decisions pertaining to internal revenue matters. Other items considered to be of general interest are also published in the Bulletin, such as announcements relating to proposed regulations published with notice of proposed rulemaking, announcements relating to decisions of the Tax Court of the United States, announcements of the disbarment and suspension of attorneys and agents from practice before the Treasury Department, Delegation Orders, etc.

It is the policy of the Service to publish in the Bulletin all substantive and procedural rulings of importance or of general interest, the publication of which is considered necessary to promote a uniform application of the laws administered by the Service. It is also the policy to publish all rulings and statements of procedures which supersede, revoke, modify, or amend any published ruling or procedure. Except where otherwise indicated, published rulings and procedures apply retroactively. Rulings and statements of procedures relating solely to matters of internal management are not published. However, statements of internal practices and procedures affecting rights or duties of taxpayers, or industry regulation, which appear in internal management documents, are published. Revenue Rulings and Revenue Procedures are based upon rulings and interiral management documents prepared in the various divisions of the National Office, including the Office of the Chief Counsel for the Internal Revenue Service. In the preparation of these, caution is exercised to conceal the identity of the taxpayer, as well as any confidential personal and business information. All Revenue Rulings published in the Bulletin have received the consideration and concurrence of the Chief Counsel.

Revenue Rulings and Revenue Procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations (including Treasury Decisions), but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. Since each published ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. In applying rulings and procedures published in the Bulletin, (Continued on page 4)

DEPOSITED BY THE

UNITED STATES OF AMERICA

3

HIGHLIGHTS OF THIS ISSUE-(Continued from page 1)

EXCISE TAXES:

The documentary stamp tax applies to the issuance and Rev. Rul. 59-52, the sale or transfer of shares of stock of a limited dividend housing corporation.

page 39.

Regulations have been adopted prescribing temporary T. D. 6355,

rules for determining constructive sale price under
section 4216(b) of the 1954 Code, as amended by the
Excise Tax Technical Changes Act of 1958.

page 57.

ALCOHOL TAX:

page 55.

Volatile fruit-flavor concentrates containing excessive Rev. Rul. 59-53, alcohol may not be diluted with water, prior to the addition of authorized substances, for the purpose of reducing the alcoholic content of the concentrate and removing the product from the premises.

TOBACCO TAX:

Tobacco products may continue to be delivered, without payment of tax, for use as supplies on vessels and aircraft engaged in trade between ports in the State of Alaska and other ports in the United States outside of Alaska.

[blocks in formation]

page 62.

A method is set forth for determining acceptable dates Rev. Proc. 59-2, which may be shown on claims for refund as the dates that tobacco products are withdrawn from the market by manufacturers or importers.

ADMINISTRATIVE:

page 48.

Even though a court did not have jurisdiction over a Ct. D. 1833,
delinquent taxpayer's person, it did have jurisdiction
to foreclose a Federal tax lien against the cash sur-
render value of life insurance policies issued to him.

page 61.

The Revenue Service sets forth the procedure for sus- Rev. Proc. 59-1, pending assessment of proposed personal_holding company tax deficiences where an agreement has been signed under the provisions of section 547 (c)(3) of the 1954 Code.

59-12,

A liberal policy is being followed by the Revenue Serv- Announcement ice in considering requests from employers in flood areas for extensions of time for filing Federal unemployment tax returns.

page 64.

Announcement of action on decisions of the Tax Court of Page 6. the United States.

INTRODUCTION-(Continued from page 2)

personnel of the Service and others concerned must consider the effect of subsequent legislation, regulations, court decisions, rulings and procedures.

Each published ruling is designated as a "Revenue Ruling," and each published procedure is designated as a "Revenue Procedure." These should be cited by reference to the year of issuance and the Bulletin and page where reported. Thus, Revenue Ruling No. 11 for 1958, which is reported on page 8 of Bulletin No. 2 for 1958, should be cited as "Rev. Rul. 58-11, I.R.B. 1958-2, 8," until it appears in the Cumulative Bulletin, when it should be cited as "Rev. Rul. 58–11, C.B. 1958-1, -" Similarly, Revenue Procedure No. 1 for 1958, which is reported on page 15 of Bulletin No. 3 for 1958, should be cited as "Rev. Proc. 58-1, I.R.B. 1958-3, 15," until such time as it appears in the Cumulative Bulletin. Revenue Rulings are keyed to the applicable sections of the Internal Revenue Code and regulations. The Bulletin is published weekly and may be obtained on a subscription basis from the Superintendent of Documents, as indicated below. The contents of the Bulletin are consolidated at least semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single-copy basis. Subscribers to the weekly Bulletin will be notified when copies of the Cumulative Bulletins are available.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington 25, D.C. Price 20 cents (single copy). Subscription price: $6.00 a year; $2.75 additional for foreign mailing.

« PreviousContinue »