Internal Revenue Bulletins  

April 3, 1989

Internal Revenue Bulletin No. 1989-14

There are no links to the official documents for the years 1989 through 1995. The information below can only be used as help for further research, as there is not enough information here to rely on for official guidance. For that you need to obtain a copy of the complete document.


Rev. Rul. 89-39
Federal rates; adjusted federal rates; adjusted federal long-term rate, and the long-term exempt rate. For purposes of sections 1274, 1288, 382, and other sections of the Code, tables set forth the rates for April 1989.

Rev. Rul. 89-40
LIFO; price indexes; department stores. The December 1988 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, December 31, 1988.

Rev. Rul. 89-41
Inventories; LIFO; financial conformity requirements affiliated group with foreign parent. Rev. Rul. 78-246 continues to be a valid exception to the LIFO conformity requirement for certain foreign parent-subsidiary groups of corporations. The exception is also applicable to the combined financial statements of certain foreign controlled brother-sister groups of corporations, but does not apply to U. S. owned groups of corporations. Rev. Rul. 78-246 amplified.

Rev. Rul. 89-42
International operation of ships and aircraft; income exempt from tax. Listed are those countries that provide equivalent exemptions for income derived from the international operation of ships or aircraft.

Rev. Rul. 89-44
Denial of foreign tax credit; South Africa. The denial of foreign tax credit shall apply to taxes paid or accrued with respect to income earned in and taxes paid to South Africa derived in taxable years of the person deriving the income beginning after December 31, 1987.

Rev. Rul. 89-45
S corporation; permissible shareholder. A trust, the terms of which provide that a portion of its corpus may be used to fund a new trust for an "after-born" grandchild of the grantor, is not a "qualified subchapter S trust" under section 1361(d)(3) of the Code.

Rev. Rul. 89-46
Consolidated returns; affiliated group; aggregate stock ownership rules. The aggregate stock ownership rules of section 1.1502-34 of the regulations apply regardless of actual stock ownership by a member of an affiliated group. Rev. Rul. 74-598 modified.

Rev. Rul. 89-48
Loans; loan limit adjusted for inflation. The loan limit specified by section 7872(g)(2) of the Code is adjusted for inflation for the years 1987, 1988, and 1989.

Notice 89-39
Taxpayers will be allowed to aggregate certain partnership and S corporation activities, for purposes of the at-risk rules under section 465 of the Code, based on section 1.465-1T of the regulations.


Announcement 89-49
A list is given of organizations now classified as private foundations.


Rev. Rul. 89-47
Intercompany sales; rebuttal of constructive sale price. The Service will follow the court decision in Storm Plastics, Inc. v. United States, 770 F.2d 148 (10th Cir. 1985), and allow a manufacturer to rebut the constructive sale price of section 4216(b)(1) of the Code even if there are no sales by the manufacturer to unrelated wholesale distributors. Rev. Rul. 77-66 is revoked and Rev. Rul. 76-182's conclusion that the 95 percent rule of Rev. Rul. 71-240 is rebuttable even when the manufacturer makes no sales to unrelated third party distributors is reinstated.


Rev. Proc. 89-26
Areas in which the Service will now issue advance rulings; classification of equipment leasing trusts. The Service will now issue advance rulings and determination letters dealing with the classification of equipment leasing trust. Rev. Proc. 89-3 modified.

T.D. 8241

Temporary and proposed regulations under section 6081 of the Code relate to the extension of time to file for taxpayers traveling outside the U. S. and Puerto Rico.

Notice 89-43
Guidelines are set forth for determining, for March 1989, 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.

Announcement 89-43
Publication 557, Tax-Exempt Status for Your Organization, contains an error in the discussion of estimated tax on page 6.

Announcement 89-44
Steps are listed that C corporations must follow to complete the section 38(c)(2) worksheet on page 2 of the 1988 Instructions for Form 3800, General Business Credit.

Announcement 89-45
Line 19 of Form 8396, Mortgage Interest Credit, is corrected.

Announcement 89-46
Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, and the Instructions for Form 8697 have been revised to reflect changes made to section 460 of the Code by P. L. 100-647, the Technical and Miscellaneous Revenue Act of 1988 (TAMPA).

Announcement 89-47
Lines 1 and 14 of Form 8801, Credit for Prior Year Minimum Tax, are corrected.

Announcement 89-48
Producers should report the tax on sales of diesel fuel for use in certain inter city buses on Form 720. Quarterly Federal Excise Tax Return, at the reduced rate of 3.1 cents a gallon.

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