Part IV. Items of General Interest

Guidance Issued for Computation of Additional Funding Requirements under § 412(l) of the Internal Revenue Code

Announcement 96–18

The Internal Revenue Service has issued Rev. Rul. 96–20 and Rev. Rul. 96–21, to provide guidance on the additional funding requirements under § 412(l) of the Internal Revenue Code, as amended by the Retirement Protection Act of 1994 (RPA ’94). Section 412(l) provides additional funding requirements for certain underfunded defined benefit plans that have more than 100 participants and that are not multiemployer plans.

Rev. Rul. 96–20 provides guidance on the requirements for the establishment and maintenance of certain amortization bases under § 412(l). The guidance is needed, in part, because the amortization base for additional unfunded old liability is scheduled to be established for the 1995 plan year. If the optional rule under § 412(l)(3)(E) is used to determine the additional unfunded old liability, an employer must make an election which is reported on a timely filed 1995 Form 5500 (see line 20a on Form 5500). Rev. Rul. 96–21 provides guidance for employers who desire to make elections in certain years under § 412(l)(11) to phase in the increase in the additional funding requirement under RPA ’94. Elections under § 412(l)(11) are made on line 20b of the 1995 Form 5500.

Recently, the Service released the 1995 Forms 5500 and accompanying instructions, including the 1995 Schedule B (Actuarial Information). Instructions for several lines on the Schedule B were reserved pending published guidance. The guidance in Rev. Rul. 96–21 is used to complete line 14 of the 1995 Schedule B. The ‘‘target amount’’ computed under Q&A-5 of Rev. Rul. 96–21 is entered on line 14d of the 1995 Schedule B.

The amount in line 12o of the 1995 Schedule B (the contributions needed to increase the funded current liability percentage of the plan to 100 percent under § 412(l)(1)) is calculated in the same manner as the ‘‘target amount’’, except that 100 percent is substituted

for the ‘‘target percentage’’ (as defined in Q&A-6 of Rev. Rul. 96–21).

Guidance relating to the calculations of the amounts reported on lines 91(1), 91(2), and 91(3) of the 1995 Schedule B is expected to be provided in separate published guidance that is not anticipated to apply to plan years beginning in 1995.

COMMENTS REQUESTED

Public comments may be submitted concerning issues arising under § 412(l), including issues related to the topics addressed in these revenue rulings. Comments should be sent to the following address:

Internal Revenue Service 1111 Constitution Avenue, N.W. Washington, DC 20224 Attn: CP:E:EP

DRAFTING INFORMATION

The principal author of this announcement is Martin L. Pippins of the Employee Plans Division. For further information regarding this announcement, please contact the Employee Plans Division’s taxpayer assistance telephone service between 2:30 p.m. and 4:00 p.m. Eastern Time, Monday through Thursday on (202) 622-6076 (Actuarial Hotline) (not a toll-free telephone number). Mr. Pippins’ telephone number is (202) 622-6261 (also not a toll-free number).

Withholding on Distributions of Indian Gaming Profits to Tribal Members; Correction

Announcement 96–19

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains a correction to final regulations [TD 8634 [1996–3 I.R.B. 17]] which were published in the Federal Register for Tuesday, December 19, 1995 (60 FR 65237). The final regulations relate to

the income tax withholding requirement on distributions of profits from certain gaming activities made to members of Indian tribes.

EFFECTIVE DATE: December 19, 1995.

FOR FURTHER INFORMATION CONTACT: Rebecca Wilson (202) 622-6040 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject to this correction are under section 3402 of the Internal Revenue Code.

Need for Correction

As published, TD 8634 contains an error that is in need of clarification.

Correction of Publication

Accordingly, the publication of final regulations which are the subject of FR Doc. 95–30683, is corrected as follows:

On page 65237, column one, in the heading, the ‘‘RIN’’ ‘‘1545–AT12’’ is corrected to read ‘‘1545–AT11’’.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 8, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 11, 1996, 61 F.R. 9639)

Notice, Consent, and Election Requirements Under Sections 411(a)(11) and 417; Correction

Announcement 96–20

AGENCY: Internal Revenue Service, Treasury.

ACTION: Correction to notice of proposed rulemaking by cross-reference to temporary regulations.

SUMMARY: This document contains a correction to proposed regulations by

15 1996–27 I.R.B.

cross-reference to temporary regulations which were published in the Federal Register for Friday, September 22, 1995 (60 FR 49236 [EE–24–93 1995–41 I.R.B. 33]). The proposed regulations provide guidance concerning the notice and consent requirements under section 411(a)(11) and the notice and election requirements of section 417.

FOR FURTHER INFORMATION CONTACT: Thomas Foley, (202) 622-6050 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking by cross-reference to temporary regulations that is the subject of this correction is under sections 411 and 417 of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed rulemaking by cross-reference to temporary regulations contains an error that is in need of correction.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking by cross-reference to temporary regulations which is the subject of FR Doc. 95–23264, is corrected as follows: On page 49236, in the heading, the ‘‘RIN’’ ‘‘1545–AT75’’ is corrected to read ‘‘1545–AU05’’.

Cynthia E. Grigsby, Chief, Regulations Unit Assistant Chief

Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 8, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 11, 1996, 61 F.R. 9660)

Notice, Consent, and Election Requirements Under Sections 411(a)(11) and 417; Hearing

Announcement 96–22

AGENCY: Internal Revenue Service, Treasury.

ACTION: Notice of public hearing on proposed rulemaking.

SUMMARY: This document provides notice of a public hearing on proposed Income Tax Regulations that provide guidance concerning the notice and consent requirements under section 411(a)(11) and the notice and election requirements of section 417.

DATE: The public hearing will be held Wednesday, April 24, 1996, beginning at 10:00 a.m. Requests to speak and outlines of oral comments must be received by Wednesday, April 3, 1996.

ADDRESSES: The public hearing will be held in the Commissioner’s Conference Room, third floor, Room 3313, Internal Revenue Building, 1111 Constitution Avenue NW, Washington, DC. Requests to speak and outlines of oral comments should be mailed to the Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Attn: CC:DOM:CORP:R [EE–24–93], room 5228, Washington, DC 20044.

FOR FURTHER INFORMATION CONTACT: Christina Vasquez of the Regulations Unit, Assistant Chief Counsel (Corporate), (202) 622-6803 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is proposed amendments to the Income Tax Regulations under sections 411 and 417 of the Internal Revenue Code of 1986. The proposed regulations appeared in the Federal Register for Friday, September 22, 1995 (60 FR 49236). The rules of § 601.601(a)(3) of the ‘‘Statement of Procedural Rules’’ (26 CFR part 601) shall apply with respect to the public hearing. Persons who have submitted written comments within the time prescribed in the notice of proposed rulemaking and who also desire to present oral comments at the hearing on the proposed regulations should submit not later than Wednesday, April 3, 1996, an outline of the oral comments/testimony to be presented at the hearing and the time they wish to devote to each subject.

Each speaker (or group of speakers representing a single entity) will be limited to 10 minutes for an oral presentation exclusive of the time consumed by the questions from the panel for the government and answer thereto.

High School, Davie, FL

Because of controlled access restrictions, attenders cannot be admitted beyond the lobby of the Internal Revenue Building until 9:45 a.m.

An agenda showing the scheduling of the speakers will be made after outlines are received from the persons testifying. Copies of the agenda will be available free of charge at the hearing.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate)

(Filed by the Office of the Federal Register on

March 8, 1996, 8:45 a.m., and published in the issue of the Federal Register for March 11, 1996, 61 F.R. 9659)

Foundations Status of Certain Organizations

Announcement 96–21

The following organizations have failed to establish or have been unable to maintain their status as public charities or as operating foundations. Accordingly, grantors and contributors may not, after this date, rely on previous rulings or designations in the Cumulative List of Organizations (Publication 78), or on the presumption arising from the filing of notices under section 508(b) of the Code. This listing does not indicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following organizations (which have been treated as organizations that are not private foundations described in section 509(a) of the Code) are now classified as private foundations:

Alliance For The Mentally Ill In

Ruston Louisiana Inc., Ruston, LA Art League Of Bonita Springs Inc.,

Bonita Springs, FL Beating The Odds Development

Corp., Greenville, MS Brevard Heritage Council Inc.,

Indiatlantic, FL Broward Independent Living Center

Inc., Fort Lauderdale, FL Caddo Bossier Council For Self

Esteem, Shreveport, LA Cenla Alcohol And Drug Abuse

Advisory Council, Pineville, LA Choral Parents Association Of Nova

1996–27 I.R.B. 16

Citizens For A Barrier Free Community

Inc., Port St Lucie, FL Clemson University Tiger Band Assoc.,

Clemson, SC Clinton Education Foundation For

Excellence Inc., Clinton, MS Creative Learning Day Care Center,

Kentwood, LA Creative Legal Solutions Inc., Miami

Beach, FL Depression Initiative Inc., Wilson,

Wyoming Dreher High School Athletic Booster

Club, Columbia, SC East Cooper Community Theatre Inc.,

Isle Of Palms, SC Ebony City Soccer Club And Youth

Development Program, Charleston, SC Florida Blueberry Festival And County

Fair Inc., Ocala, FL Foster Angels Of Broward Inc.,

Hollywood, FL Friends Alliance Housing Inc., New

Orleans, LA Friends Of Bet Shira Congregation

Inc., Miami, FL Friends Of The Pasco County Library

System Inc., Hudson, FL Great Falls Economic Development

Commission Inc., Great Falls, SC Green Bridge Fan Club Inc., Palmetto,

FL Greenwood Youth Foundation Inc.,

Schlater, MS

Grimke Center, N Charleston, SC Improvisational Composers Network

Inc., Miami, FL Independent Educational Media Inc.,

Winter Park, FL Irmo High School Academic Quiz

Team Booster Club, Columbia, SC Johnny Tanner Foundation, Spartan burg, SC Lake City Concert Series, Lake City,

SC League, Inc., Longwood, FL Lealman Avenue Elementary School

PTO, St Petersburg, FL Little Star Helping Hands Inc., Sumter,

SC Louisiana Bangladesh Society, New

Orleans, LA Louisiana Sinfonietta Inc., Baton

Rouge, LA Moultrie District Two Band Booster

Club, Mount Pleasant, SC Mt Olive Family Training And Counseling Center Corp., Slidell, LA New Smyrna Beach High School Band

Parents Assoc., New Smyrna Beach, FL North Baton Rouge Tutorial Program

Inc., Baton Rouge, LA NWR Cougar Booster Club Inc.,

Brandon, MS Opera Charleston Inc., Charleston, SC

Plaquemines Council On Aging, Port

Sulphur, LA Raiz Inc., Miami, FL Renes Day Care And Preschool Inc.,

New Orleans, LA Riverfront Floodwall Corridor Committee Inc., New Orleans, LA Senior And Junior Services Inc., New

Orleans, LA Service Through Economic Progress,

Pascagoula, MS Singg Inc., Columbia, SC Theophilus Community Living Corp.,

New Orleans, LA Vineyards Elementary School Parent

Teacher Organization Inc., Naples, FL Wright For The Riverwalk Inc., Ft

Lauderdale, FL

If an organization listed above submits information that warrants the renewal of its classification as a public charity or as a private operating foundation, the Internal Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided in section 1.509(a)-7 of the Income Tax Regulations. It is not the practice of the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

17 1996–27 I.R.B.