[Federal Register Volume 59, Number 92 (Friday, May 13, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11493]


[[Page Unknown]]

[Federal Register: May 13, 1994]


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DEPARTMENT OF THE TREASURY
26 CFR Parts 1 and 602

[TD 8537]
RIN 1545-AQ50

 

Carryover of Passive Activity Losses and Credits and At Risk 
Losses to Bankruptcy Estates of Individuals

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations relating to the 
application of carryover of passive activity losses and credits and at 
risk losses to the bankruptcy estates of individuals. The final 
regulations affect individual taxpayers who file bankruptcy petitions 
under chapter 7 or chapter 11 of title 11 of the United States Code and 
have passive activity losses and credits under section 469 or losses 
under section 465.

DATES: These regulations are effective May 13, 1994.
    These regulations apply to bankruptcy cases commencing on or after 
November 9, 1992. In addition, the regulations apply, at the election 
of the affected taxpayers, to cases that commenced before, and end on 
or after, November 9, 1992.

FOR FURTHER INFORMATION CONTACT: Amy J. Sargent of the Office of 
Assistant Chief Counsel (Income Tax & Accounting), Office of Chief 
Counsel, Internal Revenue Service, 1111 Constitution Avenue, NW., 
Washington, DC 20224, or telephone (202) 622-4930 (not a toll-free 
number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in these final regulations 
has been reviewed and approved by the Office of Management and Budget 
in accordance with the requirements of the Paperwork Reduction Act (44 
U.S.C. 3504(h)) under control number 1545-1375. The estimated annual 
burden per respondent varies from .5 hour to 1.5 hours, depending on 
individual circumstances, with an estimated average of 1 hour.
    Comments concerning the accuracy of this burden estimate and 
suggestions for reducing this burden should be sent to the Internal 
Revenue Service, Attn: IRS Reports Clearance Officer, PC:FP, 
Washington, DC 20224, and to the Office of Management and Budget, Attn: 
Desk Officer for the Department of Treasury, Office of Information and 
Regulatory Affairs, Washington, DC 20503.

Background

    This document contains final Income Tax Regulations (26 CFR part 1) 
under section 1398 of the Internal Revenue Code (Code). On November 9, 
1992, the IRS published in the Federal Register a notice of proposed 
rulemaking designating passive activity losses and credits under 
section 469 and unused section 465 losses as attributes that pass from 
the debtor to the bankruptcy estate under section 1398(g) of the Code 
and that, upon termination of the estate, pass from the bankruptcy 
estate to the debtor under section 1398(i). Corrections to the Notice 
of Proposed Rulemaking were published in the Federal Register on 
December 22, 1992 (57 FR 246). A public hearing was held on January 25, 
1993. After consideration of the public comments regarding the proposed 
regulations, the final regulations adopt the rules contained in the 
proposed regulations without substantive change. A discussion of the 
public comments is set forth below.

Public Comments

    The comments received by the IRS were generally favorable, 
welcoming the designation of attributes under section 1398(g)(8). 
Several commentators suggested that the regulations be modified. These 
suggestions are discussed below.

I. Expansion of the Proposed Regulations to Include Additional 
Attributes

    The proposed regulations designate passive activity losses and 
credits under section 469 and losses under section 465 as attributes 
that pass from the debtor to the estate. Several commentators suggested 
that the scope of the proposed regulations be expanded to include 
additional attributes of the debtor, either by specifically listing the 
additional attributes or by providing that attributes of the debtor 
pass to the estate if they are related to property passing to the 
estate or are in the nature of a carryforward.
    These suggestions were not adopted in the final regulations. The 
treatment of other unenumerated attributes under section 1398 (g) and 
(i) is more appropriately provided in a separate regulation project. 
This would provide taxpayers with an opportunity to comment before 
additional attributes of the debtor are designated, by final 
regulation, as attributes that pass to the estate.

II. Taxation of Estate's Transfers of an Interest in a Passive Activity 
or Former Passive Activity or an Interest in a Section 465 Activity 
Before Termination of the Estate

    The proposed regulations provide that if, before the termination of 
the estate, the estate transfers an interest in a passive activity or 
former passive activity to the debtor (other than by sale or exchange), 
the transfer is not treated as a disposition for purposes of any 
provision of the Code assigning tax consequences to a disposition. By 
way of example, the proposed regulations state that such transfers 
include transfers from the estate to the debtor of property that is 
exempt under section 522 of title 11 of the United States Code and 
abandonments of estate property to the debtor under section 554(a) of 
such title. The proposed regulations provide similar rules for the 
transfer of a section 465 activity.
    Several commentators objected on the grounds that these provisions 
are outside the scope of the regulatory authority of the IRS under 
section 1398(g) and (i). In general, these commentators maintained that 
the regulatory authority of the IRS is limited to listing attributes 
that pass from the debtor to the estate and that, upon termination of 
the estate, pass to the debtor. In addition, one commentator contended 
that the provisions relating to pre-termination transfers between the 
estate and the debtor constitute an improper attempt to amend by 
regulation the express language of section 1398(f)(2). Commentators 
also questioned the treatment of abandonments as nontaxable 
dispositions, reiterating many of the arguments set forth in In re A.J. 
Lane & Co., 133 B.R. 264 (Bankr. D. Mass. 1991), which stated in dicta 
that abandonments are taxable dispositions. See also In re Rubin, 154 
B.R. 897 (Bankr. D. Md. 1992).
    The final regulations retain the rules of the proposed regulations. 
Although section 1398 does not provide explicit rules relating to pre-
termination transfers between the estate and the debtor, the Secretary 
has authority pursuant to section 7805(a) to issue interpretative 
regulations under section 1398. The IRS and the Treasury Department 
believe the rules adopted in the final regulations are consistent with 
the overall system established by section 1398 and, in the absence of a 
contrary statutory provision, are a reasonable exercise of the 
Secretary's authority under section 7805(a). Moreover, the rules 
adopted in the final regulations are consistent with the only appellate 
court case on point, which holds that the transfer (other than by sale 
or exchange) of an asset from the estate to the debtor before the 
termination of the estate is a nontaxable disposition. See In re Olson, 
100 B.R. 458 (Bankr. N.D. Iowa 1989), aff'd, 121 B.R. 346 (N.D. Iowa 
1990), aff'd, 930 F.2d 6 (8th Cir. 1991).

III. Debtor's Succession to the Estate's Passive Activity Losses and 
Credits and Unused Section 465 Losses Before Termination of the Estate

    As a corollary to the treatment of the estate's transfer of an 
interest in a passive activity or former passive activity as a 
nontaxable disposition, the proposed regulations provide that if, 
before the termination of the estate, the estate transfers an interest 
in a passive activity or former passive activity to the debtor (other 
than by sale or exchange), the debtor succeeds to and takes into 
account the allocable portion of the estate's unused passive activity 
loss and credit attributable to the activity (determined as of the 
first day of the estate's taxable year in which the transfer occurs). 
The proposed regulations provide similar rules for section 465 losses.
    The objections submitted by one commentator generally parallel the 
previously discussed objections to the treatment of the estate's 
transfer of an interest in a passive activity or former passive 
activity before the termination of the estate as a nontaxable 
disposition. The final regulations retain the rules in the proposed 
regulations.

IV. Effective Date

    The provisions of Secs. 1.1398-1 and 1.1398-2 were proposed to be 
effective for bankruptcy cases commencing on or after November 9, 1992. 
Several commentators suggested alternative effective dates for the 
final regulations. One commentator recommended that a more appropriate 
effective date would be the date the regulations become final. Another 
commentator contended that, at least in certain situations, the 
regulations should be effective for bankruptcy cases commencing prior 
to November 9, 1992.
    The IRS and the Treasury Department believe that it is not 
necessary to delay the effective date because publication of the 
proposed regulations, which are being finalized without significant 
change, provided adequate notice of the new rules. In addition, 
limiting the application of the new rules to cases commenced after 
publication of the proposed regulations is clearly within the Treasury 
Department's authority to prescribe the extent to which regulations 
shall be applied without retroactive effect and conforms to the pattern 
of section 1398(g), which applies to cases commencing after March 25, 
1981. Accordingly, the final regulations retain the effective date of 
the proposed regulations.

V. Joint Election to Have Secs. 1.1398-1 and 1.1398-2 Apply to Cases 
Commenced Before November 9, 1992

    For cases commenced prior to November 9, 1992, and terminating on 
or after that date, the proposed regulations apply only if a joint 
election is made by the debtor and the estate. In cases under chapter 
7, the election is valid only with the written consent of the 
bankruptcy trustee. In cases under chapter 11, the election is valid 
only if it is incorporated (a) into a bankruptcy plan that is confirmed 
by the bankruptcy court, or (b) into an order of the court. 
Additionally, the caption ``ELECTION PURSUANT TO Sec. 1.1398-1 (or 
Sec. 1.1398-2)'' must be placed prominently on the first page of each 
of the debtor's returns that is affected by the election (other than 
returns for taxable years that begin after the termination of the 
estate) and on the first page of each of the estate's returns that is 
affected by the election.
    One commentator recommended eliminating the requirement that the 
debtor join in the election. In general, this commentator felt that 
this requirement gave the debtor exclusive control over the passive 
activity losses and credits and unused section 465 losses to the 
detriment of the creditors.
    The final regulations retain the requirement that the debtor join 
in the election. This requirement permits debtors to rely on the law in 
effect at the time they entered into bankruptcy.
    One commentator suggested that because the consent of the debtor is 
required, the regulations should clarify that the written consent of 
the debtor is required in cases under chapter 7, in addition to the 
written consent of a bankruptcy trustee. The proposed regulations 
require the debtor to show consent by actually making the election. The 
debtor's election will be evidenced by the return on which it is made, 
and it is not clear what purpose would be served by an additional 
paperwork requirement. Accordingly, this suggestion was not adopted.
    A commentator requested clarification as to whether the election 
could be made on an amended return. In response to this comment, the 
regulations clarify that the election can be made on an amended return.
    Finally, a commentator requested that the regulations clarify 
whether the election is available for estates that are terminated after 
November 9, 1992, but before the adoption of final regulations. Because 
the regulations are sufficiently clear on this point, this comment was 
not adopted.

VI. Other Comments

    One commentator requested that the regulations provide guidance on 
the determination of basis under section 1398(g)(6), which provides 
that, in the case of assets acquired by the estate from the debtor, the 
estate succeeds to the debtor's basis, determined as of the first day 
of the debtor's taxable year in which the case commenced. The specific 
guidance requested concerned the effect on basis of events (such as 
depreciation or distributions received by the debtor as the result of 
holding an interest in a passthrough entity) that occur after the first 
day of the debtor's taxable year in which the case commenced, but prior 
to the commencement date. It was also requested that the regulations 
provide guidance on the application of the ``varying interest'' rule of 
section 706(d)(1) to the estate. This guidance is outside the scope of 
these regulations. Accordingly, the final regulations do not provide 
guidance on these issues.

Special Analysis

    It has been determined that these final regulations are not 
significant rules as defined in EO 12866. Therefore, a regulatory 
assessment is not required. It has also been determined that section 
553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) and the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to these 
regulations. Therefore, a Regulatory Flexibility Analysis is not 
required. Pursuant to section 7805(f) of the Internal Revenue Code, a 
copy of the proposed rules was submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business.

Drafting Information

    The principal author of these regulations is Amy J. Sargent of the 
Office of Assistant Chief Counsel (Income Tax and Accounting), IRS. 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 602

    Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. An undesignated center heading is added immediately 
following Sec. 1.1388-1 to read as follows:

``Rules Relating to Individuals' Title 11 Cases''

    Par. 3. Sections 1.1398-1 and 1.1398-2 are added to read as 
follows:


Sec. 1.1398-1  Treatment of passive activity losses and passive 
activity credits in individuals' title 11 cases.

    (a) Scope. This section applies to cases under chapter 7 or chapter 
11 of title 11 of the United States Code, but only if the debtor is an 
individual.
    (b) Definitions and rules of general application. For purposes of 
this section--
    (1) Passive activity and former passive activity have the meanings 
given in section 469(c) and (f)(3);
    (2) The unused passive activity loss (determined as of the first 
day of a taxable year) is the passive activity loss (as defined in 
section 469(d)(1)) that is disallowed under section 469 for the 
previous taxable year; and
    (3) The unused passive activity credit (determined as of the first 
day of a taxable year) is the passive activity credit (as defined in 
section 469(d)(2)) that is disallowed under section 469 for the 
previous taxable year.
    (c) Estate succeeds to losses and credits upon commencement of 
case. The bankruptcy estate (estate) succeeds to and takes into 
account, beginning with its first taxable year, the debtor's unused 
passive activity loss and unused passive activity credit (determined as 
of the first day of the debtor's taxable year in which the case 
commences).
    (d) Transfers from estate to debtor--(1) Transfer not treated as 
taxable event. If, before the termination of the estate, the estate 
transfers an interest in a passive activity or former passive activity 
to the debtor (other than by sale or exchange), the transfer is not 
treated as a disposition for purposes of any provision of the Internal 
Revenue Code assigning tax consequences to a disposition. The transfers 
to which this rule applies include transfers from the estate to the 
debtor of property that is exempt under section 522 of title 11 of the 
United States Code and abandonments of estate property to the debtor 
under section 554(a) of such title.
    (2) Treatment of passive activity loss and credit. If, before the 
termination of the estate, the estate transfers an interest in a 
passive activity or former passive activity to the debtor (other than 
by sale or exchange)--
    (i) The estate must allocate to the transferred interest, in 
accordance with Sec. 1.469-1(f)(4), part or all of the estate's unused 
passive activity loss and unused passive activity credit (determined as 
of the first day of the estate's taxable year in which the transfer 
occurs); and
    (ii) The debtor succeeds to and takes into account, beginning with 
the debtor's taxable year in which the transfer occurs, the unused 
passive activity loss and unused passive activity credit (or part 
thereof) allocated to the transferred interest.
    (e) Debtor succeeds to loss and credit of the estate upon its 
termination. Upon termination of the estate, the debtor succeeds to and 
takes into account, beginning with the debtor's taxable year in which 
the termination occurs, the passive activity loss and passive activity 
credit disallowed under section 469 for the estate's last taxable year.
    (f) Effective date--(1) Cases commencing on or after November 9, 
1992. This section applies to cases commencing on or after November 9, 
1992.
    (2) Cases commencing before November 9, 1992--(i) Election 
required. This section applies to a case commencing before November 9, 
1992, and terminating on or after that date if the debtor and the 
estate jointly elect its application in the manner prescribed in 
paragraph (f)(2)(v) of this section (the election). The caption 
``ELECTION PURSUANT TO Sec. 1.1398-1'' must be placed prominently on 
the first page of each of the debtor's returns that is affected by the 
election (other than returns for taxable years that begin after the 
termination of the estate) and on the first page of each of the 
estate's returns that is affected by the election. In the case of 
returns that are amended under paragraph (f)(2)(iii) of this section, 
this requirement is satisfied by placing the caption on the amended 
return.
    (ii) Scope of election. This election applies to the passive and 
former passive activities and unused passive activity losses and 
passive activity credits of the taxpayers making the election.
    (iii) Amendment of previously filed returns. The debtor and the 
estate making the election must amend all returns (except to the extent 
they are for a year that is a closed year within the meaning of 
paragraph (f)(2)(iv)(D) of this section) they filed before the date of 
the election to the extent necessary to provide that no claim of a 
deduction or credit is inconsistent with the succession under this 
section to unused losses and credits. The Commissioner may revoke or 
limit the effect of the election if either the debtor or the estate 
fails to satisfy the requirement of this paragraph (f)(2)(iii).
    (iv) Rules relating to closed years--(A) Estate succeeds to 
debtor's passive activity loss and credit as of the commencement date. 
If, by reason of an election under this paragraph (f), this section 
applies to a case that was commenced in a closed year, the estate, 
nevertheless, succeeds to and takes into account the unused passive 
activity loss and unused passive activity credit of the debtor 
(determined as of the first day of the debtor's taxable year in which 
the case commenced).
    (B) No reduction of unused passive activity loss and credit for 
passive activity loss and credit not claimed for a closed year. In 
determining a taxpayer's carryover of a passive activity loss or credit 
to its taxable year following a closed year, a deduction or credit that 
the taxpayer failed to claim in the closed year, if attributable to an 
unused passive activity loss or credit to which the taxpayer succeeded 
under this section, is treated as a deduction or credit that was 
disallowed under section 469.
    (C) Passive activity loss and credit to which taxpayer succeeds 
reflects deductions of prior holder in a closed year. A loss or credit 
to which a taxpayer would otherwise succeed under this section is 
reduced to the extent the loss or credit was allowed to its prior 
holder for a closed year.
    (D) Closed year. For purposes of this paragraph (f)(2)(iv), a 
taxable year is closed to the extent the assessment of a deficiency or 
refund of an overpayment is prevented, on the date of the election and 
at all times thereafter, by any law or rule of law.
    (v) Manner of making election--(A) Chapter 7 cases. In a case under 
chapter 7 of title 11 of the United States Code, the election is made 
by obtaining the written consent of the bankruptcy trustee and filing a 
copy of the written consent with the returns (or amended returns) of 
the debtor and the estate for their first taxable years ending after 
November 9, 1992.
    (B) Chapter 11 cases. In a case under chapter 11 of title 11 of the 
United States Code, the election is made by incorporating the election 
into a bankruptcy plan that is confirmed by the bankruptcy court or 
into an order of such court and filing the pertinent portion of the 
plan or order with the returns (or amended returns) of the debtor and 
the estate for their first taxable years ending after November 9, 1992.
    (vi) Election is binding and irrevocable. Except as provided in 
paragraph (f)(2)(iii) of this section, the election, once made, is 
binding on both the debtor and the estate and is irrevocable.


Sec. 1.1398-2  Treatment of section 465 losses in individuals' title 11 
cases.

    (a) Scope. This section applies to cases under chapter 7 or chapter 
11 of title 11 of the United States Code, but only if the debtor is an 
individual.
    (b) Definition and rules of general application. For purposes of 
this section--
    (1) Section 465 activity means an activity to which section 465 
applies; and
    (2) For each section 465 activity, the unused section 465 loss from 
the activity (determined as of the first day of a taxable year) is the 
loss (as defined in section 465(d)) that is not allowed under section 
465(a)(1) for the previous taxable year.
    (c) Estate succeeds to losses upon commencement of case. The 
bankruptcy estate (the estate) succeeds to and takes into account, 
beginning with its first taxable year, the debtor's unused section 465 
losses (determined as of the first day of the debtor's taxable year in 
which the case commences).
    (d) Transfers from estate to debtor--(1) Transfer not treated as 
taxable event. If, before the termination of the estate, the estate 
transfers an interest in a section 465 activity to the debtor (other 
than by sale or exchange), the transfer is not treated as a disposition 
for purposes of any provision of the Internal Revenue Code assigning 
tax consequences to a disposition. The transfers to which this rule 
applies include transfers from the estate to the debtor of property 
that is exempt under section 522 of title 11 of the United States Code 
and abandonments of estate property to the debtor under section 554(a) 
of such title.
    (2) Treatment of section 465 losses. If, before the termination of 
the estate, the estate transfers an interest in a section 465 activity 
to the debtor (other than by sale or exchange) the debtor succeeds to 
and takes into account, beginning with the debtor's taxable year in 
which the transfer occurs, the transferred interest's share of the 
estate's unused section 465 loss from the activity (determined as of 
the first day of the estate's taxable year in which the transfer 
occurs). For this purpose, the transferred interest's share of such 
loss is the amount, if any, by which such loss would be reduced if the 
transfer had occurred as of the close of the preceding taxable year of 
the estate and been treated as a disposition on which gain or loss is 
recognized.
    (e) Debtor succeeds to losses of the estate upon its termination. 
Upon termination of the estate, the debtor succeeds to and takes into 
account, beginning with the debtor's taxable year in which the 
termination occurs, the losses not allowed under section 465 for the 
estate's last taxable year.
    (f) Effective date--(1) Cases commencing on or after November 9, 
1992. This section applies to cases commencing on or after November 9, 
1992.
    (2) Cases commencing before November 9, 1992--(i) Election 
required. This section applies to a case commencing before November 9, 
1992, and terminating on or after that date if the debtor and the 
estate jointly elect its application in the manner prescribed in 
paragraph (f)(2)(v) of this section (the election). The caption 
``ELECTION PURSUANT TO Sec. 1.1398-2'' must be placed prominently on 
the first page of each of the debtor's returns that is affected by the 
election (other than returns for taxable years that begin after the 
termination of the estate) and on the first page of each of the 
estate's returns that is affected by the election. In the case of 
returns that are amended under paragraph (f)(2)(iii) of this section, 
this requirement is satisfied by placing the caption on the amended 
return.
    (ii) Scope of election. This election applies to the section 465 
activities and unused losses from section 465 activities of the 
taxpayers making the election.
    (iii) Amendment of previously filed returns. The debtor and the 
estate making the election must amend all returns (except to the extent 
they are for a year that is a closed year within the meaning of 
paragraph (f)(2)(iv)(D) of this section) they filed before the date of 
the election to the extent necessary to provide that no claim of a 
deduction is inconsistent with the succession under this section to 
unused losses from section 465 activities. The Commissioner may revoke 
or limit the effect of the election if either the debtor or the estate 
fails to satisfy the requirement of this paragraph (f)(2)(iii).
    (iv) Rules relating to closed years--(A) Estate succeeds to 
debtor's section 465 loss as of the commencement date. If, by reason of 
an election under this paragraph (f), this section applies to a case 
that was commenced in a closed year, the estate, nevertheless, succeeds 
to and takes into account the section 465 losses of the debtor 
(determined as of the first day of the debtor's taxable year in which 
the case commenced).
    (B) No reduction of unused section 465 loss for loss not claimed 
for a closed year. In determining a taxpayer's carryover of an unused 
section 465 loss to its taxable year following a closed year, a 
deduction that the taxpayer failed to claim in the closed year, if 
attributable to an unused section 465 loss to which the taxpayer 
succeeds under this section, is treated as a deduction that was not 
allowed under section 465.
    (C) Loss to which taxpayer succeeds reflects deductions of prior 
holder in a closed year. A loss to which a taxpayer would otherwise 
succeed under this section is reduced to the extent the loss was 
allowed to its prior holder for a closed year.
    (D) Closed year. For purposes of this paragraph (f)(2)(iv), a 
taxable year is closed to the extent the assessment of a deficiency or 
refund of an overpayment is prevented, on the date of the election and 
at all times thereafter, by any law or rule of law.
    (v) Manner of making election--(A) Chapter 7 cases. In a case under 
chapter 7 of title 11 of the United States Code, the election is made 
by obtaining the written consent of the bankruptcy trustee and filing a 
copy of the written consent with the returns (or amended returns) of 
the debtor and the estate for their first taxable years ending after 
November 9, 1992.
    (B) Chapter 11 cases. In a case under chapter 11 of title 11 of the 
United States Code, the election is made by incorporating the election 
into a bankruptcy plan that is confirmed by the bankruptcy court or 
into an order of such court and filing the pertinent portion of the 
plan or order with the returns (or amended returns) of the debtor and 
the estate for their first taxable years ending after November 9, 1992.
    (vi) Election is binding and irrevocable. Except as provided in 
paragraph (f)(2)(iii) of this section, the election, once made, is 
binding on both the debtor and the estate and is irrevocable.

PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

    Par. 4. The authority citation for part 602 continues to read as 
follows:

    Authority: 26 U.S.C. 7805.

    Par. 5. In Sec. 602.101(c), entries are added to the table in 
numerical order to read as follows: 

------------------------------------------------------------------------
                                                            Current OMB 
   CFR part or section where identified and described      control No.  
------------------------------------------------------------------------
                                                                        
                                  *****                                 
1.1398-1................................................       1545-1375
1.1398-2................................................       1545-1375
                                                                        
                                 *****                                  
------------------------------------------------------------------------

Margaret Milner Richardson,
Commissioner of Internal Revenue.
    Approved: April 6, 1994.
Leslie Samuels,
Assistant Secretary of the Treasury.
[FR Doc. 94-11493 Filed 05-12-94; 8:45 am]
BILLING CODE 4830-01-U