Bulletin No. 1996–8 - February 27, 1996 - Tax Highlights and Procedures

Sep 4, 2026

Bulletin No. 1996–8 (February 27, 1996) provides synopses of key Internal Revenue Service items for the period, emphasizing proposed and final regulations across income tax, employee plans, exempt organizations, and excise taxes. The issue highlights guidance affecting S corporations and rental real estate activities, rules for research and experimental expenditures, interest rate determinations for full funding limitations, and changes in excise tax rates and expirations. It also includes administrative procedures and service missions describing fair and efficient tax administration.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages39

Reading Time1 h 38 min

AccessFree to download

Highlights of This Issue

Income Tax

Employee Plans

Exempt Organizations

Excise Taxes

Administrative

Mission of the Service

Statement of Principles of Internal Revenue Tax Administration

Introduction

Bulletin No. 1996–8 February 27, 1996 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. INCOME TAX PS–7–89, page 24. Proposed regulations under section 1254 of the Code relating to the treatment of gain from the disposition of interest in certain natural resource recapture property by S corporations and their shareholders. T.D. 8645, page 4. Final regulations under section 469 of the Code providing rules for rental real estate activities of taxpayers engaged in certain real property trades or businesses. T.D. 8646, page 10. Final regulations under section 861 of the Code provides guidance concerning the allocation and apportionment of research and experimental expenditures for purposes of determining taxable income from sources inside and outside the U.S. EMPLOYEE PLANS Notice 96–11, page 19. Guidelines are set forth for determining for February 1996, the weighted average interest rate and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code as amended by the Omnibus Budget Reconciliation Act of 1987 and by the Uruguay Round Agreements Act (GATT) . EXEMPT ORGANIZATIONS Announcement 96–10, page 30. A list is provided of organizations that no longer qualify as organizations to which contributions are deductible under section 170 of the Code. EXCISE TAXES Announcement 96–9, page 30. Effective after December 31, 1995, the rates for fuel taxes and the base amount not subject to the luxury tax have changed. Also, excise taxes on transportation and on the superfund expired December 31, 1995. ADMINISTRATIVE Rev. Proc. 96–25, page 19. Automobile owners and lessees. This procedure provides owners and lessees of passenger automobiles with tables detailing the limitations on depreciation deductions for automobiles first placed in service during calendar year 1996 and the amounts to be included in income for automobiles first leased during calendar year 1996. Rev. Proc. 96–26, page 22. Backup withholding; substitute Form W–9. The requirements for payors that want to use a substitute Form W– 9, Request for Taxpayer Identification Number and Certification, are clarified. Finding Lists begin on page 00. Announcement of Disbarments and Suspensions begin on page 00. Announcement of Declaratory Judgment Proceeding Under Section 7428 on page 00. Mission of the Service The purpose of the Internal Revenue Service is to collect the proper amount of tax revenue at the least cost; serve the public by continually improving the quality of our products and services; and perform in a manner warranting the highest degree of public confidence in our integrity, efficiency and fairness. Statement of Principles of Internal Revenue Tax Administration The function of the Internal Revenue Service is toadminister the Internal Revenue Code. Tax policy for raising revenue is determined by Congress. With this in mind, it is the duty of the Service to carry out that policy by correctly applying the laws enacted by Congress; to determine the reasonable meaning of various Code provisions in light of the Congressional purpose in enacting them; and to perform this work in a fair and impartial manner, with neither a government nor a taxpayer point of view. At the heart of administration is interpretation of the Code. It is the responsibility of each person in the Service, charged with the duty of interpreting the law, to try to find the true meaning of the statutory provision and not to adopt a strained construction in the belief that he or she is ‘‘protecting the revenue.’’The revenue is properly protected only when we ascertain and apply the true meaning of the statute. The Service also has the responsibility of applying and administering the law in a reasonable

FAQs

What types of tax guidance are covered in this issue’s highlights?

The highlights include proposed and final income tax regulations, employee plan interest rate guidance, exempt organization announcements, and excise tax rate changes and expirations.

What administrative procedures are mentioned in the bulletin?

The bulletin lists administrative items such as depreciation limitation tables for certain passenger automobiles and clarified backup withholding requirements for substitute Form W–9.

What is the stated mission and guiding principle of the Internal Revenue Service in this issue?

The mission focuses on collecting the proper amount of tax revenue at least cost, improving products and services for the public, and acting with integrity, efficiency, and fairness. Principles emphasize administering the tax code fairly and interpreting statutes to find their true meaning.

Sep 4, 2026

Uploaded by Clementine