REVENUE RULE 95-56

1995-2 C.B. 322, 1995-36 I.R.B. 20

Released: August 10, 1995
Published: September 5, 1995

OBSOLETING CONDUIT REVENUE RULINGS

Section 7805.--Rules and Regulations, 26 CFR 301.7805-1: Rules and regulations.

Obsoleting conduit revenue rulings. Certain rulings that relate to conduit financing arrangements are obsoleted.

Section 871.--Tax on Nonresident Alien Individuals

Rev. Rul. 84-152, 1984-2 C.B. 381; Rev. Rul. 84-153, 1984-2 C.B. 383; Rev. Rul. 85-163, 1985-2 C.B. 349; and Rev. Rul. 87-89.

Situations (1) and (2), 1987-2 C.B. 195, are rendered obsolete for payments made after September 10, 1995, that are subject to the final regulations under section 7701(l).

Section 881.--Tax on Income of Foreign Corporations Not Connected with United States Business

Rev. Rul. 84-152, 1984-2 C.B. 381; Rev. Rul. 84-153, 1984-2 C.B. 383; Rev. Rul. 85-163, 1985-2 C.B. 349; and Rev. Rul. 87-89.

Situations (1) and (2), 1987-2 C.B. 195, are rendered obsolete for payments made after September 10, 1995, that are subject to the final regulations under section 7701(l).

Section 1441.--Withholding of Tax on Nonresident Aliens

Rev. Rul. 84-152, 1984-2 C.B. 381; Rev. Rul. 84-153, 1984-2 C.B. 383; Rev. Rul. 85-163, 1985-2 C.B. 349; and Rev. Rul. 87-89.

Situations (1) and (2), 1987-2 C.B. 195, are rendered obsolete for payments made after September 10, 1995, that are subject to the final regulations under section 7701(l).

Section 1442.--Withholding of Tax on Foreign Corporations

Rev. Rul. 84-152, 1984-2 C.B. 381; Rev. Rul. 84-153, 1984-2 C.B. 383; Rev. Rul. 85-163, 1985-2 C.B. 349; and Rev. Rul. 87-89.

Situations (1) and (2), 1987-2 C.B. 195, are rendered obsolete for payments made after September 10, 1995, that are subject to the final regulations under section 7701(l).

Section 7701.--Definitions

Rev. Rul. 84-152, 1984-2 C.B. 381; Rev. Rul. 84-153, 1984-2 C.B. 383; Rev. Rul. 85-163, 1985-2 C.B. 349; and Rev. Rul. 87-89.

Situations (1) and (2), 1987-2 C.B. 195, are rendered obsolete for payments made after September 10, 1995, that are subject to the final regulations under section 7701(l).

Obsoleting conduit revenue rulings. Certain rulings that relate to conduit financing arrangements are obsoleted.

The Internal Revenue Service is continuing its program of reviewing revenue rulings published in the Internal Revenue Bulletin to identify and publish lists of those revenue rulings that, although not specifically revoked or suspended, are no longer considered determinative because (1) the applicable statutory provisions or regulations have been changed or repealed; (2) the ruling position is specifically covered by statute, regulations or subsequently published position; or (3) the facts set forth no longer exist or are not sufficiently described to permit clear application of the current statute and regulations.

This revenue ruling publishes a list of revenue rulings that recharacterize back-to-back loans as loans directly between two entities where the arrangements were entered into to obtain the benefits of an income tax treaty that exempted interest payments from U.S. withholding tax or to qualify for the portfolio interest exemption from withholding tax under sections 871(b) and 881(c).

The revenue rulings listed below are rendered obsolete for payments made after September 10, 1995, that are subject to the final regulations under section 7701(1). See, TD 8611, 60 F.R. 40997.

Rev. Rul. No. C.B. Citation
Rev. Rul. 84-152 1984-2 C.B. 381
Rev. Rul. 84-153 1984-2 C.B. 383
Rev. Rul. 85-163 1985-2 C.B. 349
Rev. Rul. 87-89, Situations (1) and (2) 1987-2 C.B. 195

The Service will continue to review other revenue rulings relating to conduit financing arrangements to ascertain whether any are rendered obsolete. Therefore, failure to include any particular revenue ruling in the above list should not be construed as an indication that the revenue ruling necessarily is determinative with respect to payments governed by the final regulations issued under section 7701(1).

DRAFTING INFORMATION

The principal author of this revenue ruling is Elissa J. Shendalman of the Office of the Associate Chief Counsel (International). For further information concerning this revenue ruling contact Ms. Shendalman on (202) 622-3870 (not a toll-free call).

Rev. Rul. 95-56, 1995-2 C.B. 322, 1995-36 I.R.B. 20