[Code of Federal Regulations]
[Title 26, Volume 12]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.1492-1]

[Page 236-237]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.1492-1  Nontaxable transfers.

    (a) The tax imposed by section 1491 does not apply:
    (1) If the transferee is an organization (other than an organization 
described in section 401(a) exempt from income tax under the provisions 
of sections 501 to 504, inclusive; or
    (2) If before the transfer it has been established to the 
satisfaction of the Commissioner that the transfer is not in pursuance 
of a plan having as one of its principal purposes the avoidance of 
Federal income taxes.
    (b) Whether a transfer of stock or securities is in pursuance of a 
plan having as one of its principal purposes the avoidance of Federal 
income taxes is a question to be determined from the facts and 
circumstances of each particular case. In any such case where a 
transferor desires to establish that the transfer is not in pursuance of 
such a plan, a statement of the facts relating to the plan under which 
the transfer is to be made or was made, together with

[[Page 237]]

a copy of the plan if in writing, shall be forwarded to the Commissioner 
of Internal Revenue, Washington, DC 20225, for a ruling. This statement 
shall contain, or be verified by, a written declaration that it is made 
under the penalties of perjury. A letter notifying the transferor of the 
Commissioner's determination will be mailed to the transferor.

[T.D. 6500, 25 FR 12082, Nov. 26, 1960]