Part IV. Items — Internal Revenue Bulletin 1996-30

material in the administration of any Internal Revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Estimated total annual reporting burden: 1,000 hours. The estimated annual burden per respondent varies from five to thirty minutes, depending on individual circumstances, with an estimated average of ten minutes. Estimated number of respondents: 6,000. Estimated annual frequency of responses: 1.

Background

Temporary regulations in TD 8677 of this issue of the Bulletin amend the Income Tax Regulations (26 CFR par 1) relating to deductions and losses of members. The temporary amendments concern the method for computing the limitations with respect to separate return limitation year (SRLY) losses. They also concern the rules relating to carryover and carryback of losses to consolidated and separate return years and to the built-in deductions rules. The final regulations that are proposed to be based on these proposed regulations would be added to part 1 of title 26 of the Code of Federal Regulations. Those final regulations would provide rules for computing the limitations with respect to separate return limitation year (SRLY) losses. They also concern the rules relating to carryover and carryback of losses to consolidated and separate return years and to the built-in deductions rules.

For the text of these new temporary regulations, see TD 8677. The preamble to the temporary regulations explains the regulations.

Proposed Effective Date

For dates of application and special transition rules, see the discussion of Effective Dates under SUPPLEMENTARY INFORMATION relating to the temporary regulations, published elsewhere in this issue of the Bulletin.

Special Analyses

Notice of Proposed Rulemaking and Notice of Public Hearing

Consolidated Returns—Limitations on the Use of Certain Losses and Deductions

CO–24–96

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of prior proposed rule, notice of proposed rulemaking by cross-reference to temporary regulations, and notice of public hearing.

SUMMARY: On January 29, 1991, proposed rules under section 1502 were filed with the Office of the Federal Register (CO–78–90; see 56 FR 4228; 1991–1 C.B. 757). A public hearing was held on April 8, 1991. The IRS and Treasury published Notice 91–27 (1991–2 C.B. 629) to advise of intended modifications to the proposed regulations. The January, 1991, proposed rules are withdrawn, and these proposed rules are issued in their place.

In TD 8677 on page 7 of this issue of the Bulletin, the IRS is issuing temporary regulations relating to the carryover and carryback of losses to consolidated and separate return years. The text of those temporary regulations also serves as the text of these proposed regulations. This document also provides a notice of public hearing on these proposed regulations.

DATES: Written comments must be received by Wednesday, September 25, 1996. Outlines of topics to be discussed at the public hearing scheduled for Thursday, October 17, 1996, at 10 a.m. must be received by Thursday, September 26, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (CO–24–96), room 5228, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. In the alternative, submissions may be hand delivered between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (CO–24–96), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, DC. The public hearing will be held in the NYU Classroom, Room 2615, Internal Revenue Building, 1111 Constitution Avenue NW., Washington, DC 20224.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, David B. Friedel, (202) 622–7550; concerning submissions and the hearing, Evangelista Lee, (202) 622–7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information contained in this notice of proposed rulemaking has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under the control number 1545– 1237. Section 1.1502–21(b)(3) requires a response from certain consolidated groups. The IRS requires the information to assure that an election to relinquish a carryback period is properly documented.

Comments concerning the collection of information should be sent to the Office of Management and Budget, Attn: Desk Officer for the Department of Treasury, Office of Information and Regulatory Affairs, Washington, DC, 20503, with copies to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, T:FP. Washington, DC, 20224. Comments on the collection of information should be received by Monday, August 26, 1996.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid control number.

The collection of information is in Proposed § 1.1502–21(b)(3). That section permits an election to relinquish a carryback period with respect to a consolidated net operating loss. The common parent of the group files the statement evidencing the election with the income tax return of the group. This information is required by the IRS to assure that an election to relinquish a carryback period is properly documented. The likely respondents and/or recordkeepers are certain consolidated groups of corporations. Responses to this collection of information are required to obtain a benefit (relating to the carryover of losses which would otherwise be carried back).

Books or records relating to this collection of information must be retained as long as their contents may become

23 1996–30 I.R.B.

certification is based on the fact that these regulations will primarily affect affiliated groups of corporations that have elected to file consolidated returns, which tend to be larger businesses. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Comments and Public Hearing

A public hearing has been scheduled for Monday, September 16, 1996, at 10 a.m. in the NYU Classroom, Room 2615, Internal Revenue Building, 1111 Constitution Avenue NW., Washington, DC. Because of access restrictions, visitors will not be admitted beyond the building lobby more than 15 minutes before the hearing starts.

The rules of 26 CFR 601.601(a)(3) apply to the hearing.

Persons that wish to present oral comments at the hearing must submit written comments by Wednesday, September 25, 1996, and submit an outline of the topics to be discussed and the time to be devoted to each topic (signed original and eight (8) copies) by Thursday, September 26, 1996.

A period of 10 minutes will be allotted to each person for making comments.

An agenda showing the scheduling of the speakers will be prepared after the deadline for receiving outlines has passed. Copies of the agenda will be available free of charge at the hearing.

Drafting Information

The principal author of these regulations is David B. Friedel, Office of Assistant Chief Counsel (Corporate), IRS. However, other personnel from the IRS and Treasury Department participated in their development.

Withdrawal of Notice of Proposed Rulemaking

Accordingly, under the authority of 26 U.S.C. 7805, the notice of proposed

rulemaking that was published on January 29, 1991 (56 FR 4228) is withdrawn.

- - - -

Proposed Amendments to the Regula- tions

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for Part 1 is amended in part by adding citations in numerical order to read as follows:

Authority: 26 U.S.C. 7805

- Section 1.1502–15 also issued under 26 U.S.C. 1502.
- Section 1.1502–21 also issued under 26 U.S.C. 1502. Section 1.1502–22 also issued under 26 U.S.C. 1502. Section 1.1502–23 also issued under 26 U.S.C. 1502. Section 1.1502–79 also issued under 26 U.S.C. 1502. Section 1.1502–15A also issued under 26 U.S.C. 1502. Section 1.1502–21A also issued under 26 U.S.C. 1502. Section 1.1502–22A also issued under 26 U.S.C. 1502. Section 1.1502–23A also issued under 26 U.S.C. 1502. Section 1.1502–41A also issued under 26 U.S.C. 1502. Section 1.1502–79A also issued under 26 U.S.C. 1502.
- Par. 2. Section 1.1502–15 is added to read as follows:

§ 1.1502–15 SRLY limitation on built-in losses.

[The text of this proposed section is the same as the text of § 1.1502–15T published elsewhere in this issue of the Bulletin.]

Par. 3. Section 1.1502–21 is added to read as follows:

§ 1.1502–21 Net operating losses.

[The text of this proposed section is the same as the text of § 1.1502–21T published elsewhere in this issue of the Bulletin.]

Par. 4. Section 1.1502–22 is added to read as follows:

§ 1.1502–22 Consolidated capital gain and loss.

[The text of this proposed section is the same as the text of § 1.1502–22T published elsewhere in this issue of the Bulletin.]

Par. 5. Section 1.1502–23 is added to read as follows:

§ 1.1502–23 Consolidated net section 1231 gain or loss.

[The text of this proposed section is the same as the text of § 1.1502–23T published elsewhere in this issue of the Bulletin.]

Margaret Milner Richardson, Commissioner of Internal Revenue.

(Filed by the Office of the Federal Register on June 26, 1996, 8:45 a.m., and published in the issue of the Federal Register for June 27, 1996, 61 F.R. 33393)

Notice of Proposed Rulemaking

Modifications of Bad Debts and Dealer Assignments of Notional Principal Contracts

FI-59-94

AGENCY: Internal Revenue Service (IRS), Treasury.

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

SUMMARY: In TD 8676 on page 4 of this issue of the Bulletin, the IRS is issuing temporary regulations relating to the allowance of a deduction for a partially worthless debt when the terms of a debt instrument have been modified. The temporary regulations provide relief to certain taxpayers that are required to recognize gain as the result of modifying a debt instrument, when a portion of the gain is in part caused by a reduction of the debt’s basis attributable to a bad debt deduction claimed in a prior taxable year. The temporary regulations provide guidance to taxpayers that modify the terms of a debt instrument after deducting an amount for partial worthlessness.

In TD 8676 the IRS is also issuing temporary regulations relating to certain assignments of notional principal contracts by dealers in those contracts. The temporary regulations provide guidance to taxpayers relating to consequences of these assignments.

1996–30 I.R.B. 24

The text of those temporary regulations also serves as the text of these proposed regulations.

DATES: Written comments and requests for a public hearing must be received by September 23, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (FI-59-94), room 5228, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. In the alternative, submissions may be hand delivered between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (FI-59-94), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, D.C. 20224

FOR FURTHER INFORMATION CONTACT: Craig R. Wojay, Office of Assistant Chief Counsel, Financial Institutions and Products, (202) 622-3920 (not a toll-free number) concerning the modifications of bad debts, and Thomas J. Kelly, Office of Assistant Chief Counsel, Financial Institutions and Products, (202) 622-3940 (not a toll-free number) concerning dealer assignments of notional principal contracts.

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in TD 8676 amend the Income Tax Regulations (26 CFR part 1) relating to section 166. The temporary regulations contain rules relating to the requirement that a debt be charged off before a deduction on account of partial worthlessness is allowed. The rules apply to certain taxpayers who are required to recognize gain as the result of a significant modification of a debt instrument.

Temporary regulations in TD 8676 amend the Income Tax Regulations (26 CFR part 1) relating to section 1001. The temporary regulations contain rules relating to certain assignments of notional principal contracts by dealers in those contracts.

The text of those temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in EO

Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to these regulations, and, therefore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (a signed original and eight (8) copies) that are submitted timely to the IRS. All comments will be available for public inspection and copying. A public hearing may be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register .

Drafting Information

The principal author of the regulations concerning the modifications of bad debts is Craig R. Wojay, Office of Assistant Chief Counsel (Financial Institutions and Products), IRS. The principal author of the regulations concerning dealer assignments of notional principal contracts is Thomas J. Kelly, Office of Assistant Chief Counsel (Financial Institutions and Products), IRS. However, other personnel from the IRS and Treasury Department participated in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regula- tions

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 - -

Par. 2. Section 1.166-3 is amended by adding paragraph (a)(3) to read as follow:

§ 1.166-3 Partial or total worthless- ness.

[The text of proposed paragraph (a)(3) is the same as the text of § 1.166-3T(a)(3) published elsewhere in this issue of the Bulletin].

Par. 3. Section 1.1001-4 is added to read as follows:

§ 1.1001-4 Modifications of notional principal contracts.

[The text of proposed section 1.1001-4 is the same as the text of § 1.1001-4T published elsewhere in this issue of the Bulletin].

Margaret Milner Richardson, Commissioner of Internal Revenue.

(Filed by the Office of the Federal Register on June 24, 1996, 8:45 a.m., and published in the issue of the Federal Register for June 25, 1996, 61 F.R. 32728)

Notice of Proposed Rulemaking and Notice of Public Hearing

Qualified Small Business Stock

IA-26-94

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

SUMMARY: This document contains proposed regulations relating to the 50percent exclusion for gain from certain small business stock. The proposed regulations reflect changes to the law made by the Omnibus Budget Reconciliation Act of 1993 (OBRA ’93) and provide guidance to the issuers and owners of the stock of certain small businesses. This document also provides a notice of public hearing on these proposed regulations.

DATES: Written comments and outlines of oral comments to be presented at the public hearing scheduled for October 3, 1996 must be received by September 4, 1996.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (IA-26-94), Room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. In the alternative, submissions may be hand delivered between

25 1996–30 I.R.B.

the hours of 8 a.m. and 5 p.m. to CC:DOM:CORP:R (IA-26-94), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC. The public hearing will be held in Room 2615, Internal Revenue Building, 1111 Constitution Avenue, NW., Washington, DC 20224.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Catherine A. Prohofsky at (202) 622-4930; concerning submissions and the public hearing, Christina Vasquez at (202) 622-7180; (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed amendments to the Income Tax Regulations (26 CFR part 1) relating to section 1202 of the Internal Revenue Code. Section 1202 was added by section 13113 of OBRA ’93. Section 1202 allows a taxpayer (other than a corporation) to exclude 50 percent of certain gain from the sale of qualified small business stock held for more than 5 years.

Section 1202(c)(1) provides that only stock acquired after August 10, 1993, at its original issuance in exchange for money, property other than stock, or as compensation for services to the corporation (other than as an underwriter) qualifies for the exclusion (the original issue requirement). Section 1202(c)(3) provides two rules to prevent evasion of the original issue requirement. Under the first rule, the exclusion does not apply to stock acquired by the taxpayer if, at any time during the 4-year period beginning 2 years before the issuance of such stock, the corporation purchased (directly or indirectly) any of its stock from the taxpayer or a related person. Section 1202(c)(3)(A). Under the second rule, the exclusion does not apply to stock issued by a corporation if, during the 2-year period beginning 1 year before the issuance of such stock, the corporation made one or more purchases of its stock with an aggregate value (as of the time of the respective purchases) exceeding 5 percent of the aggregate value of all of its stock as of the beginning of the 2-year period. Section 1202(c)(3)(B). The IRS and Treasury are concerned that, in many cases, redemptions that have neither the purpose nor the effect of evading the original issue require

ment may result in disqualification under these rules. Section 1202(k) authorizes Treasury to prescribe such regulations as may be appropriate to carry out the purposes of section 1202.

Explanation of provisions

The proposed regulations permit a corporation to redeem de minimis amounts of stock without violating the anti-evasion rules. The proposed regulations also provide that certain redemptions that are incident to events affecting a shareholder and are unlikely to result in evasion of the original issue requirement are disregarded in determining whether redemptions exceed the de minimis amounts. In particular, redemptions upon termination of a shareholder’s employment or the death, disability, or mental incompetency of a shareholder are disregarded. Finally, the regulations clarify that transfers of stock by a shareholder to an employee in connection with the performance of services are not treated as redemptions for purposes of the anti-evasion rules.

The regulations will apply to stock issued after the date they are published as final regulations. The regulations will also apply to stock issued on or before that date, but only with respect to the effect of redemptions occurring after that date.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in EO 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to these proposed regulations, and, therefore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (a signed original and 8 copies) that are submitted timely to the IRS. All comments will be available for public inspection and copying.

The IRS and Treasury invite comments on matters addressed in the proposed regulations and suggestions for any additional exceptions and clarifications that may be appropriate in the context of the purpose of section 1202(c)(3) and the regulatory authority granted in section 1202(k). The IRS and Treasury specifically invite comments from the small business community. The IRS and Treasury are particularly interested in comments regarding the scope of the exception for redemptions incident to termination of employment. The IRS and Treasury are committed to extending the exception to independent contractors, but seek comments regarding how to determine when a termination of the independent contractor’s services has occurred.

A public hearing has been scheduled for October 3, 1996, at 10 a.m. in Room 2615, Internal Revenue Building, 1111 Constitution Avenue, NW., Washington, DC. Because of access restrictions, visitors will not be admitted beyond the building lobby more than 15 minutes before the hearing starts.

The rules of 26 CFR 601.601(a)(3) apply to the hearing.

Persons that wish to present oral comments at the hearing must submit written comments and an outline of topics to be discussed and the time to be devoted to each topic (signed original and 8 copies) by September 4, 1996.

A period of 10 minutes will be allotted to each person for making comments.

An agenda showing the scheduling of the speakers will be prepared after the deadline for receiving outlines has passed. Copies of the agenda will be available free of charge at the hearing.

Drafting Information

The principal author of these regulations is Catherine A. Prohofsky, Office of Assistant Chief Counsel (Income Tax and Accounting). However, other personnel from the IRS and Treasury Department participated in their development.

- - - -

Proposed Amendments to the Regula- tions

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 is amended by adding an entry in numerical order to read as follows:

1996–30 I.R.B. 26

Authority: 26 U.S.C. 7805 - - Section 1.1202-2 is also issued under 26 U.S.C. 1202(k).

- Par. 2. Sections 1.1202-0 and 1.1202-2 are added to read as follows:

§ 1.1202-0 Table of contents.

This section lists the major captions that appear in the regulations under § 1.1202-2.

§ 1.1202-2 Qualified small business stock; effect of redemptions.

(a) Redemptions from taxpayer or related person.

(1) In general. (2) De minimis amount. (b) Significant redemptions. (1) De minimis amount. (2) Special rule. (c) Transfers by shareholders in connection with the performance of services not treated as purchases.

(d) Exceptions for termination of services, death, or disability or mental incompetency.

(1) Termination of services. (2) Death. (3) Disability or mental incompetency.

(e) Effective date.

§ 1.1202-2 Qualified small business stock; effect of redemptions.

(a) Redemptions from taxpayer or re- lated person —(1) In general. Stock acquired by a taxpayer is not qualified small business stock if, in one or more purchases during the 4-year period beginning on the date 2 years before the issuance of the stock, the issuing corporation purchases (directly or indirectly) more than a de minimis amount of its stock from the taxpayer or from a person related (within the meaning of section 267(b) or 707(b)) to the taxpayer.

(2) De minimis amount. For purposes of this paragraph (a), stock exceeds a de minimis amount only if the aggregate amount paid for the stock exceeds $10,000 and more than 2 percent of the stock held by the taxpayer and related persons is acquired. The following rules apply for purposes of determining whether the 2-percent limit is exceeded. The percentage of stock acquired in any single purchase is determined by dividing the stock’s value (as of the time of purchase) by the value (as of the time of purchase) of all stock held (directly or

indirectly) by the taxpayer and related persons immediately before the purchase. The percentage of stock acquired in multiple purchases is the sum of the percentages determined for each separate purchase.

(b) Significant redemptions —(1) In general. Stock is not qualified small business stock if, in one or more purchases during the 2-year period beginning on the date 1 year before the issuance of the stock, the issuing corporation purchases more than a de minimis amount of its stock and the purchased stock has an aggregate value (as of the time of the respective purchases) exceeding 5 percent of the aggregate value of all of the issuing corporation’s stock as of the beginning of such 2-year period.

(2) De minimis amount. For purposes of this paragraph (b), stock exceeds a de minimis amount only if the aggregate amount paid for the stock exceeds $10,000 and more than 2 percent of all outstanding stock is purchased. The following rules apply for purposes of determining whether the 2-percent limit is exceeded. The percentage of the stock acquired in any single purchase is determined by dividing the stock’s value (as of the time of purchase) by the value (as of the time of purchase) of all stock outstanding immediately before the purchase. The percentage of stock acquired in multiple purchases is the sum of the percentages determined for each separate purchase.

(c) Transfers by shareholders in con- nection with the performance of services not treated as purchases. A transfer of stock by a shareholder to an employee or independent contractor (or to a beneficiary of an employee or independent contractor) is not treated as a purchase of the stock by the issuing corporation for purposes of this section even if the stock is treated as having first been transferred to the corporation under § 1.83- 6(d)(1) (relating to transfers by shareholders to employees or independent contractors).

(d) Exceptions for termination of ser- vices, death, or disability or mental incompetency. A stock purchase is disregarded for purposes of this section if—

(1) Termination of services —(i) Em- ployees and directors. The stock was acquired by the seller in connection with the performance of services as an employee or director and the stock is purchased from the seller incident to the seller’s retirement or other bona fide termination of such services;

(ii) Independent contractors. [Reserved];

(2) Death. The stock is purchased from the deceased shareholder’s estate, beneficiary, heir, surviving joint tenant, or from a surviving spouse or a trust established by a decedent, the stock is purchased within 3 years and 9 months from the date of death, and the stock (or an option to acquire the stock) was acquired by the seller before or on account of the death of the decedent; or

(3) Disability or mental incompe- tency. The stock is purchased incident to the disability or mental incompetency of the selling shareholder.

(e) Effective date. This section applies to stock issued after the date these regulations are published as final regulations in the Federal Register . This section also applies to stock issued on or before the date these regulations are published as final regulations in the Federal Register, but only with respect to the effect of purchases by the issuing corporation that occur after that date.

Margaret Milner Richardson, Commissioner of Internal Revenue.

(Filed by the Office of the Federal Register on June 3, 1996, 11:29 a.m., and published in the issue of the Federal Register for June 6, 1996, 61 F.R. 28821)

Foundations Status of Certain Organizations

Announcement 96–67

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: Abode Incorporation, New Orleans, LA Addiction Recovery Resources, Inc., Jonesboro, GA

27 1996–30 I.R.B.

African American Cultural and Economic Alliance Inc., Washington, DC Agape House Inc., Hoyleton, IL Agricultural Educational Foundation Inc., 1497 N 1050 E Road, Monticello, IL Alle-Kiski Literacy Council Inc., New

Kensington, PA Archway Programs Delaware Inc., Atco,

NJ Armin Mattli Foundation, Inc., Orlando,

FL Athenaeum Theatre Company, Chicago,

IL Audio Optics Inc., West Orange, NJ Aware Incorporated, Clayton, MO Calvert Chamber Foundation Inc., Prince Frederick, MD Canaan House, Lynchburg, VA Center for Families in Change Inc.,

Meadville, PA Center for Law in the Public Interest

Foundation, Woodland Hills, CA Central Minnesota Youth Symphony Inc., St. Cloud, MN Centro Comunal Unidad Community Center Inc., Washington, DC Cherry Tree Music CO-OP, Philadelphia,

PA Citizens Advisory to Probation and Pa role, Festus, MO Civil Justice for Civil Liberty, Omaha,

NE Coalition to Avert Prison Recidivism,

Galesburg, IL Collingwood Foundation Inc., Gibsonia,

PA Committee for a Greener Glencoe, Glencoe, IL Community Connections Publications Inc., Asheville, NC Community Education Institute, Cleve land, TN Community Human Development Center

Inc., Philadelphia, PA Compass Theatre Inc., Princeton, NJ Consensus Foundation, Dallas, TX Coping Kids Inc., East Petersburg, PA Crawford County Literacy Council Inc.,

Meadville, PA Creekside Community Center, Muscatine, IA Dauphin County Counseling Center, Harrisburg, PA Delaware Valley Housing Corporation,

Philadelphia, PA District of Columbia Cancer Consor tium, Washington, DC Dodge County Friends of the Arts Inc.,

Eastman, GA Dorothy B Ferebee Foundation Incorpo rated, Washington, DC Douglas County High School Academic

Booster Club Inc., Douglasville, GA

Durham Ecumenical Youth Choir, Durham, NC East Asia Research Institute, Washing ton, DC Evensong Chorale Inc., Virgina Beach,

VA Employment Development Services, Ba ton Rouge, LA Emporia Community Development Inc.,

Emporia, VA End-Time Deliverance Center Inc., Clinton, MS Equipping the Saints Ministries Inc.,

Deerfield Beach, FL Fenwick Transportation Corporation, Woodstown, NJ First Ozark Housing Development Corp., Mountain Home, AR Fish and Wildlife Alliance, Anoka, MN Food Phone of The Lehigh Valley, Bethlehem, PA Foundation for the Advancement & Sup port of Educ of Namibia Inc., Washington, DC Fourth Street Consortium Inc., Reading,

PA Freedom Faith Ministries Inc., Kenosha,

WI Friends of Justice, Kansas City, MO Friends of the Decorative Arts, Inc.,

Lake Charles, LA Friends of Transportation, Inc., Asheville, NC Flying Pig Theatre, Pittsburgh, PA G.A.N.A.S., Denver, CO Gentle Hands Ministries, Gastonia, NC Georgetown Preparatory School Alumni

Association Inc., Rockville, MD Grand Ma’s Hands, Charlotte, NC Granville Academy National Inc., Lawrenceville, NJ Grassroot Arts, Kankakee, IL Green Lake County Humane Society

Inc., Green Lake, WI Gymnastic Expressions, Montoursville,

PA Haddock Foundation, Morrisville, NC Harmonia Music Club, Lebanon, PA Heritage Foundation at Whiteman Air

Force Base, Whiteman AFB, MO His Higher Hopes Inc., Independence,

MO Historic Wills Preservation Project Inc.,

Reading, PA Holiday House of Federation Housing

Inc., Philadelphia, PA Interamerican Mustic Festival of Florida,

Inc., Miami, FL International Assoc. of Black Profes sional, Landover, MD International Missions Outreach, Har risonville, MO Iowa Historic Preservation Alliance, West Branch, IA

Irish American Unity Foundation, Boynton Beach, FL Joyfull Ministries Inc., Pensacola, FL Kansas City Area Teachers of Math ematics Inc., Kansas City, MO Kirke Harris Ensemble, Landover, MD Krisle Christian Ministries, Whitehouse,

TX L B G I Educational Services, Chicago,

IL L C 38 Charity Fund Inc., Philadelphia,

PA Learning Center for Christ, Washington,

DC Lincolnton Chorus Booster, Inc., Lincolnton, NC Living Composers Inc., Atlanta, GA Mineral Area Choir Connection, Desloge, MO Minnesota Asian Youth Support Group

Inc., Minneapolis, MN Miracle on Caney Creek, Inc., Lexing ton, KY MLAC Inc., Pittsburgh, PA Mooresville Foundation For Excellance

in Education, Mooresville, NC Muhammad Ali Education and Humani tarian Foundation, Chicago, IL National Academic Association, Colum bus, OH National Coalition for Human Rights,

Minneapolis, MN National Housing Preservation Corp., Nashville, TN Native American Television Inc., St. Cloud, MN Nebraska Vegetarian Society, Lincoln,

NE New Horizons Charity, Mackinaw, IL New Outlook Inc., Jacksonville, FL North Carolina Foundation for Interna tional Commerce, Research Triangle Park, NC Northwest Suburban Bar Association Foundation, Arlington Heights, IL Nurses for Human Development Educa tion Inc., Jonesboro, AR Off the Streets, Hoffman Estates, IL

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.

1996–30 I.R.B. 28