The Internal Revenue Bulletin is issued weekly and contains rulings, procedures and decisions published by the Internal Revenue Service and all Treasury Departinent regulations (including Treasury Decisions) pertaining to Internal Revenue matters. It may be obtained on a subscription basis from the Superintendent of Documents, Government Printing Office, Washington, D.C., 20402, for $6.00 per year-foreign $8.75. Single copies of the Bulletin-20 cents each.

The contents of the weekly Bulletin are consolidated at least semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single-copy basis. Subscribers to the weekly Bulletin will be notified when copies of the Cumulative Bulletins are available.

Certain issues of Cumulative Bulletins are out of print and are therefore not available. Persons desiring available Cumulative Bulletins which are listed below may obtain them from the Superintendent of Documents at prices as follows:

1 House, Senate, and conference reports on revenue bills enacted as the act of October 3, 1913, the act of October 22, 1914, and the Revenue Acts of 1916 to 1938, inclusive, and on amendment to such acts.

* Printed in one volume.

All inquiries in regard to these publications and subscriptions should be sent to the Superintendent of Documents, Government Printing Office, Washington, D.C., 20402.

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U.S. GOVERNMENT PRINTING OFFICE: 1969

INCOME TAX:

HIGHLIGHTS OF THIS ISSUE

? Texas has been added to the list of areas in which
"major disasters" have occurred in 1963 as qualifying
2 for the special treatment, under section 165 (h) of
the Code, of losses resulting therefrom.
An employee who is absent from work on account of
personal injuries or sickness on the normal working
day immediately preceding a (nonworking) legal holi-
day, and continues to be absent on the normal work-
ing day following the holiday, may exclude from gross
income, to the extent provided in section 105(d) of
the Code, wages or payments in lieu of wages received
for the holiday; Revenue Ruling 58–371 modified.
A nonprofit corporation which makes unsecured and
secured loans to eligible students for the purpose of
completing their education may qualify for exemption
from Federal income tax under section 501(c)(3) of
the Code.

Rev. Rul. 63–21,
Supplement VII,
page 12.

Rev. Rul. 63-219,
page 9.

Rev. Rul. 63–220,
page 12.

page 14.

The Revenue Service indicates circumstances under Rev. Rul. 63-221,
which a threat or imminence of condemnation will be
considered to exist for purposes of section 1033 of
the Code; Revenue Ruling 58-557 modified.

page 22.

A corporation may not be required to make a remittance Rev. Rul. 63–222,
when filing an application for extension of time in
which to file its income tax return if the application is
accompanied by a statement with respect to an ex-
pected net operating loss carryback.

page 16.

The regulations have been amended to extend to fisher- T.D. 6678,
men the same treatment accorded farmers in relation
to estimated tax, effective for calendar year 1963 and
subsequent taxable years.

page 15.

The regulations under section 1033 of the Code have T.D. 6679,
been amended to provide for the processing of delin-
quent applications for extensions of time to replace
involuntarily converted property.

(Continued on page 3)

Finding Lists begin on page 29.

TREASURY DEPARTMENT

706-674-63--1

• INTERNAL REVENUE SERVICE

INTRODUCTION

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for the announcement of official rulings and procedures of the Internal Revenue Service, and for the publication of Treasury Decisions, Executive Orders, tax conven. tions, legislation, and court decisions pertaining to internal revenue matters. Other items considered to be of general interest are also published in the Bulletin, such as announcements relating to proposed regulations published with notice of proposed rulemaking, announcements relating to decisions of the Tax Court of the United States, announcements of the disbarment and suspension of attorneys and agents from practice before the Internal Revenue Service, Delegation Orders, names of organizations whose status as tax-exempt organizations for purposes of section 170 of the Internal Revenue Code of 1951 has been changed, etc.

It is the policy of the Service to publish in the Bulletin all substantive and procedural rulings of importance or of general interest, the publication of which is considered necessary to promote a uniform application of the laws administered by the Service. It is also the policy to publish all rulings and statements of procedures which supersede, revoke, modify, or amend any published ruling or procedure. Except where otherwise indicated, published rulings and procedures apply retroactively. Rulings and statements of procedures relating solely to matters of internal management are not published. However, statements of internal practices and procedures affecting rights or duties of taxpayers, or industry regulation, which appear in internal management documents, are published. Revenue Rulings and Revenue Procedures are based upon rulings and internal management documents prepared in the various divisions of the National Office, including the Office of the Chief Counsel for the Internal Revenue Service. In the preparation of these, caution is exercised to conceal the identity of the taxpayer, as well as any confidential personal and business information.

Revenue Rulings and Revenue Procedures reported in the Bullet in do not have the force and effect of Treasury Department Regulations (including Treasury Decisions), but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. No unpublished ruling or decision will be cited or relied upon by any officer or employee of the Internal Revenue Service as a precedent in the disposition of other cases.

Since each published ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, Service personnel and others concerned are cautioned against reaching

(Continued on page 4)