Revenue Ruling 2004-103

Rev. Rul. 2004-103
Rev. Rul. 2004-103, 2004-45 I.R.B. 783
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
                         MODIFICATION OF REV. RUL. 95-63
                           Released: October 20, 2004
                           Published: November 8, 2004

 Section 901.–Taxes of Foreign Countries and of Possessions of United States

  Modification of Rev. Rul. 95-63. Rev. Rul. 95-63, with respect to countries described in section 901(j)(2)(A) of the Code, is modified by providing that Iraq ceased to be described in that section on June 27, 2004. Rev. Rul. 95-63 modified.

  Modification of Rev. Rul. 95-63. Rev. Rul. 95-63, with respect to countries described in section 901(j)(2)(A) of the Code, is modified by providing that Iraq ceased to be described in that section on June 27, 2004. Rev. Rul. 95-63 modified.

  This ruling modifies Rev. Rul. 95-63, 1995-2 C.B. 85, which lists countries subject to certain special rules under sections 901(j) and 952(a)(5) of the Code.

LAW AND ANALYSIS

  Sections 901, 902, and 960 of the Code generally allow U.S. taxpayers to claim a foreign tax credit for income, war profits, and excess profits taxes paid or accrued (or deemed paid or accrued) to any foreign country or to any possession of the United States.

  Section 901(j)(1)(A) denies the credit for taxes paid or accrued (or deemed paid or accrued under sections 902 or 960) to any country described in section 901(j)(2)(A) if the taxes are with respect to income attributable to a period during which section 901(j) applies. Section 901(j)(1)(B) requires taxpayers to apply subsections (a), (b), and (c) of section 904 and sections 902 and 960 separately with respect to income attributable to such a period from sources within such country. In addition, section 952(a)(5) provides that subpart F income includes income derived by a controlled foreign corporation from any foreign country during any period during which section 901(j) applies to that foreign country.

  The special rules under sections 901(j) and 952(a)(5) cease to apply to a country when the Secretary of State certifies to the Secretary of the Treasury that such country is no longer described in section 901(j)(2)(A). Revenue Ruling 95-63 sets forth the countries which are (or were) described in section 901(j)(2)(A) and the period during which the special rules under sections 901(j) and 952(a)(5) apply with respect to each such country. Based on the certification by the Secretary of State, this revenue ruling states the date on which Iraq ceased to be described in section 901(j)(2)(A).

HOLDINGS AND EFFECTIVE DATES

  The list of countries in Revenue Ruling 95-63 is modified by changing the reference to Iraq as follows:

—————————————-
Country   Starting Date     Ending Date
 Iraq    February 1, 1991  June 27, 2004
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  For guidance on issues arising in a taxable year when section 901(j) ceases to apply to a country, see Rev. Rul. 92-62, 1992-2 C.B. 193.

EFFECT ON OTHER REVENUE RULINGS

  This ruling modifies Rev. Rul. 95-63, 1995-2 C.B. 85, with respect to countries described in section 901(j)(2)(A) of the Code.

DRAFTING INFORMATION

  The principal author of this revenue ruling is Mark R. Pollard of the Office of Associate Chief Counsel (International). For further information regarding this revenue ruling, contact Mr. Pollard at (202) 622-3850 (not a toll-free call).

 Rev. Rul. 2004-103, 2004-45 I.R.B. 783

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Revenue Ruling 2004-102

Rev. Rul. 2004-102
Rev. Rul. 2004-102, 2004-45 I.R.B. 784
                       Internal Revenue Service (I.R.S.)
                                 Revenue Ruling
      FEDERAL RATES; ADJUSTED FEDERAL RATES; ADJUSTED FEDERAL LONG-TERM RATE
                          AND THE LONG-TERM EXEMPT RATE
                           Released: October 18, 2004

                           Published: November 8, 2004

 Section 42.–Low-Income Housing Credit

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 280G.–Golden Parachute Payments

  Federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 382.–Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

  The adjusted applicable federal long-term rate is set forth for the month of November 2004.

Section 412.–Minimum Funding Standards

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 467.–Certain Payments for the Use of Property or Services

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 468.–Special Rules for Mining and Solid Waste Reclamation and Closing Costs

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 482.–Allocation of Income and Deductions Among Taxpayers

  Federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 483.–Interest on Certain Deferred Payments

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 642.–Special Rules for Credits and Deductions

  Federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 807.–Rules for Certain Reserves

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 846.–Discounted Unpaid Losses Defined

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 1288.–Treatment of Original Issue Discount on Tax-Exempt Obligations

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 7520.–Valuation Tables

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 7872.–Treatment of Loans With Below-Market Interest Rates

  The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the month of November 2004.

Section 1274.–Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property

  Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for November 2004.

  Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for November 2004.

  This revenue ruling provides various prescribed rates for federal income tax purposes for November 2004 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in service during the current month. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

——————————————————–
               REV. RUL. 2004-102 TABLE 1
    Applicable Federal Rates (AFR) for November 2004
                 Period for Compounding
            Annual      Semiannual  Quarterly  Monthly
Short-term
       AFR  2.37%       2.36%       2.35%      2.35%

  110% AFR  2.62%       2.60%       2.59%      2.59%
  120% AFR  2.85%       2.83%       2.82%      2.81%
  130% AFR  3.09%       3.07%       3.06%      3.05%
  Mid-term
       AFR  3.55%       3.52%       3.50%      3.49%
  110% AFR  3.91%       3.87%       3.85%      3.84%
  120% AFR  4.26%       4.22%       4.20%      4.18%
  130% AFR  4.63%       4.58%       4.55%      4.54%
  150% AFR  5.35%       5.28%       5.25%      5.22%
  175% AFR  6.25%       6.16%       6.11%      6.08%
 Long-term
       AFR  4.70%       4.65%       4.62%      4.61%
  110% AFR  5.19%       5.12%       5.09%      5.07%
  120% AFR  5.66%       5.58%       5.54%      5.52%
  130% AFR  6.14%       6.05%       6.00%      5.98%
——————————————————–

—————————————————————
                  REV. RUL. 2004-102 TABLE 2
                Adjusted AFR for November 2004
                    Period for Compounding
                         Annual  Semiannual  Quarterly  Monthly
Short-term adjusted AFR  1.68%   1.67%       1.67%      1.66%
Mid-term adjusted AFR    2.80%   2.78%       2.77%      2.76%
Long-term adjusted AFR   4.20%   4.16%       4.14%      4.12%
—————————————————————

——————————————————————————-
                          REV. RUL. 2004-102 TABLE 3
                   Rates Under Section 382 for November 2004
Adjusted federal long-term rate for the current month                     4.20%
Long-term tax-exempt rate for ownership changes during the current month  4.51%
  (the highest of the adjusted federal long-term rates for the current
  month and the prior two months.)
——————————————————————————-

——————————————————————————-
                          REV. RUL. 2004-102 TABLE 4
       Appropriate Percentages Under Section 42(b)(2) for November 2004
Appropriate percentage for the 70% present value low-income housing       7.96%
  credit
Appropriate percentage for the 30% present value low-income housing       3.41%
  credit
——————————————————————————-

——————————————————————————-

                          REV. RUL. 2004-102 TABLE 5
                   Rate Under Section 7520 for November 2004
Applicable federal rate for determining the present value of an annuity,  4.20%
  an interest for life or a term of years, or a remainder or
  reversionary interest

——————————————————————————-

 Rev. Rul. 2004-102, 2004-45 I.R.B. 784

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