Signal-initiated activation of the transcription factor NF-B is mediated through proteolysis of its cytoplasmic inhibitory proteins IB␣ and IB. While most NF-B inducers trigger the degradation of IB␣, only certain stimuli are able to induce the degradation of IB. The degradation of IB␣ is targeted by its sitespecific phosphorylations, although the mechanism underlying the degradation of IB remains elusive. In the present study, we have analyzed the effect of phosphatase inhibitors on the proteolysis of IB. We show that the serine/threonine phosphatase inhibitor calyculin A induces the hyperphosphorylation and subsequent degradation of IB in both human Jurkat T cells and the murine 70Z-3 preB cells, which is associated with the nuclear expression of active NF-B. The calyculin A-mediated degradation of IB is further enhanced by the cytokine tumor necrosis factor-␣ (TNF-␣), although TNF-␣ alone is unable to induce the degradation of IB. Mutational analyses have revealed that the inducible degradation of IB induced by calyculin A, and TNF-␣ requires two N-terminal serines (serines 19 and 23) that are homologous to the inducible phosphorylation sites present in IB␣. Furthermore, the C-terminal 51 amino acid residues, which are rich in serines and aspartic acids, are also required for the inducible degradation of IB. These results suggest that the degradation signal of IB may be controlled by the opposing actions of protein kinases and phosphatases and that both the Nand C-terminal sequences of IB are required for the inducible degradation of this NF-B inhibitor.The NF-B/Rel family of transcription factors play a pivotal role in the regulation of various cellular genes involved in the immediate early processes of immune, acute phase, and inflammatory responses (1, 2). In addition, these cellular factors have also been implicated in the transcriptional activation of certain human viruses, most notably the type 1 human immune deficiency virus (3-7). The mammalian NF-B/Rel family is composed of at least five structurally related DNA-binding proteins, including p50, p52, RelA, RelB, and c-Rel, which bind to a target DNA sequence (B) as various heterodimers or homodimers (reviewed in Siebenlist et al. (8)). In most cell types, including resting T cells, the NF-B/Rel proteins are sequestered in the cytoplasmic compartment by physical association with inhibitory proteins that are characteristic of the presence of various numbers of ankyrin-like repeats (reviewed in Verma et al. (9)). The major cytoplasmic inhibitors include IB␣ (10, 11), IB (12), and the precursor proteins of p50 and p52 (9). The IB molecules appear to bind to and mask the nuclear localization signal of NF-B/Rel, thereby preventing the nuclear translocation of these transcription factors (13-16).The latent cytoplasmic NF-B/Rel complexes can be activated by a variety of cellular stimuli, including the mitogen phorbol esters, cytokines such as tumor necrosis factor-␣ (TNF-␣), 1 and interleukin-1, the bacterial component lipopolysaccharide, serine/...