Part IV. Items — Internal Revenue Bulletin 1997-34

Changes to Excise Taxes

Announcement 97–78

Purpose To announce excise tax changes made by the Taxpayer Relief Act of 1997 (P.L. 105-34) that take effect during August of 1997. These changes affect:

The tax on the use of international air travel facilities
Deposits of certain air transportation taxes
Vaccine taxes

Taxpayers need to follow the procedures in this announcement to report these taxes on the Form 720 for the 3rd quarter. The Form 720 for the 4th quarter will reflect these changes and others that take effect later.

Note: A separate announcement will be released at a later date to cover changes made by the Act that take effect on October 1, 1997, or later.

Use of international Rate. The rate is increased to $12.00 per person for the use of international air travel facilities. air travel facilities, This tax applies to arrivals as well as departures. For domestic flight segments that begin IRS No. 27 or end in Alaska or Hawaii there is no change; the tax remains at $6.00 and applies only to departures.

Effective date. Tax is imposed at the new rate for amounts paid after August 12, 1997, for transportation that begins after September 30, 1997.

How to report. Report the total of both the $6 and the $12 rate for the quarter on the line for IRS No. 27.

Delayed deposits Any deposit of taxes for IRS No. 26, transportation of persons by air, and IRS No. 27, use of international air travel facilities, that would otherwise be due after August 14, 1997, and before October 1, 1997, is due October 10, 1997.

Vaccine taxes Rate. A uniform tax on all taxable vaccines is imposed at $.75 per dose. The tax liability at the new rate is reported under IRS No. 97.

Effective date. The changes to vaccine taxes are effective for sales after August 5, 1997.

Taxable vaccines. After August 5, 1997, the vaccine is taxable if it:

Contains diphtheria toxoid;
Contains tetanus toxoid;
Contains pertussis bacteria, extracted or partial cell bacteria, or specific pertussis antigens;
Contains polio virus;
Is against measles;
Is against mumps;
Is against rubella;
Is any HIB vaccine;
Is against hepatitis B; or
Is against chicken pox.

Combination vaccines. If any taxable vaccine is combined with one or more additional taxable vaccines, then the amount of tax imposed is the sum of the amounts for the vaccines included in the combination.

How to report. For sales after June 30, 1997, and before August 6, 1997, report the vaccine tax liability under IRS Nos. 81, 82, 83, and 84. For sales after August 5, 1997, report your vaccine tax liability on a separate sheet and attach it to Form 720 for the 3rd quarter. Include the following information on the sheet:

1997–34 I.R.B. 11 August 25, 1997

The words “VACCINE TAX” across the top of the sheet;
Your name (as shown on the return) and employer identification number (EIN);
IRS No. 97 ; and
The amount of tax.

On Form 720, include the tax liability for IRS No. 97 in the total line for Part I taxes on page 2.

Availability of Publication 1544, Reporting Cash Payments of Over $10,000 (Revised Aug. 1997)

Announcement 97–80

Publication 1544, recently updated, is now available from the Internal Revenue Service. This publication is also available in Spanish as Publication 1544SP.

The publication is for persons who may receive large cash payments in the course of their business. Generally, any person in a trade or business who receives more than $10,000 in cash in a single transaction or in related transactions must file Form 8300, Report of Cash Payments Over $10,000 Received in a Trade or Business.

You can get a copy of Publication 1544 (or Publication 1544SP) by calling 1-800829-3676. You can also write to the IRS Forms Distribution Center nearest you.

If you have access to a personal computer and modem, you can also get the publication electronically. You can get the publication at:

World Wide Web - www.irs.ustreas.gov,
FTP - ftp.irs.ustreas.gov, and
Direct Dial (by Modem) - IRIS at FEDWORLD - (703)321-8020.

Revision of Forms 5310, 5310A, and 6088

Announcement 97–81

Form 5310, Application for Determination for Terminating Plan; Form 6088, Distributable Benefits From Employee Pension Benefit Plans; and Form 5310A, Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities—Notice of Qualified Separate Lines of Business have been revised. The new revision date for all forms is June 1997 (Rev. 6/97). Form 6088 and information only copies

of Forms 5310 and 5310A will available through IRS electronic information services by July 25, 1997 at the following addresses: Modem: 703-321-8020 (modem settings are N,8,1) Internet: http://www.irs.ustreas.gov

However, except for Form 6088, these forms are printed in special ink suitable for use with optical reading equipment. Therefore, copies downloaded from the bulletin board are for information only and are not acceptable for submission to Covington or Brooklyn. The official versions will be available by the end of August by calling 1-800-TAX-FORM.

Except for the revision date, no significant changes have been made to Form 5310 and Form 6088. Therefore, the current revision (Rev. 1/96) may continue to be used until the form is next revised. Persons having approval to computer generate this form may continue to use existing programs. Alternatively, the revision date may be changed from 1/96 to 6/97 without requesting reapproval, if no other changes are made to the OCR data sheet. The original SAN approval number must be transferred to the revised OCR data sheet.

Significant changes have been made to Form 5310A. Therefore, the 6/97 revision must be used for submissions after January 1, 1998. All Form 5310A submissions must now be filed with the IRS at P.O. Box 192, Covington, KY 410120192. Persons having approval to computer generate this form must update their programs to incorporate the changes made to this application. The revised OCR data sheet must be resubmitted for reapproval to: EP OCR Coordinator, CP:E:EP:FC, Room 2232, 1111 Constitution Ave., Washington, DC 20224.

As stated in Announcement 96-54, 1996-23 IRB 12, persons using IRS software to computer generate Form 5307 may continue to do so until further notice. Form 5307 produced by IRS software has

a 5/93 revision date and the approval number “SAN 50000”.

Arbitrage Restrictions on Tax- Exempt Bonds; Correction

Announcement 97–82

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains corrections to final regulations (T.D. 8718) which were published in the Fed- eral Register on Friday, May 9, 1997 (62 F.R. 25502 [1997–22 I.R.B. 4]). The final regulations relate to arbitrage and related restrictions applicable to tax-exempt bonds issued by State and local governments.

DATES: This correction is effective May 9, 1997.

FOR FURTHER INFORMATION CONTACT: David White, (202) 622-3980 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections are under section 148 of the Internal Revenue Code.

Need for Correction

As published, the final regulations (T.D. 8718) contain errors that may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of final regulations (T.D. 8718) which are the subject of F.R. Doc. 97–12062 is corrected as follows:

On page 25505, column 3, in the pre

August 25, 1997 12 1997–34 I.R.B.

BPD Inc., Kapaa, HI Bridge Homes, Inc., New York, NY Bronx Residents Against Grafitti, Bronx,

amble, under the paragraph heading “ F. Effective Dates ”, line 2, the language “effective for bonds issued on or after” is corrected to read “effective for bonds sold on or after”.

On page 25505, column 3, in the preamble, under the paragraph heading “ F. Effective Dates ”, the last line, the language “issued before July 8, 1997.” is corrected to read “sold before July 8, 1997.” Cynthia E. Grigsby, Chief, Regulations Unit Assistant Chief Counsel (Corporate)

(Filed by the Office of the Federal Register on July 25, 1997, 8:45 a.m., and published in the issue of the Federal Register for July 28, 1997, 62 F.R. 40270)

Deletions From Cumulative List of Organizations Contributions to Which Are Deductible Under Section 170 of the Code

Announcement 97–83

The name of an organization that no longer qualifies as an organization described in section 170(c)(2) of the Internal Revenue Code of 1986 is listed below.

Generally, the Service will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation.

If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on August 25, 1997,

and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.

The Fern Leigh Equine Research Founda tion Staunton, VA

Jack and Jill Day Care Center

Chicago, IL

Foundations Status of Certain Organizations

Announcement 97–84

Lower Hills, MA

NY Broomstones Curling Foundation,

Framingham, MA Chaim Foundation, Chicago, IL Citizens Against Pollution Northwest, Inc.,

Torrington, CT Clowns on Rounds, Inc., Albany, NY Connecticut Youth Theatre, Inc., Tolland,

CT Constantin Brancust International

Foundation, Inc., New York, NY Council for Equal Rights in Adoption,

Inc., New York, NY District 26 Foundation for Education,

Flushing, NY Divers Environmental Survey, Inc.,

Billerica, MA East Longmeadow Athletic Booster Club,

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: African Awareness Expos, Inc., Aurora,

CO African Children Fund, Columbus, OH Associates of Chicago Urban Day School,

East Longmeadow, MA East New York Partnership Housing

Inc., Rochester, MA Friends of the Society for Coptic

Development Fund Company, Inc., New Rochelle, NY Edgartown Patrolmens Association, Inc.,

Edgartown, MA Ellen Gilman Sylvia Solomon Scholarship

Fund, Inc., Chestnut Ridge, NY Falmouth Youth Initiatives, North

Falmouth, MA Feminist Network of Western Maine,

Farmington, ME F.G.P., Inc., Warwick, RI Foundation for Chinese Humanistic

Studies, Honolulu, HI Franklin Housing Alliance, Inc.,

Greenfield, MA Friends and Alumni of the Mendon

Upton Regional School District, Mendon, MA Friends of Maine’s Natural Areas, Inc.,

Augusta, ME Friends of the Playgound of Shelton,

Chicago, IL Bahamian American Cultural Society,

New York, NY Ben Rose Softball League, Inc., New

Shelton, CT Friends of the Rochester Senior Center,

Bedford, MA Beth Meir Yehuda Foundation, Inc.,

Archaeology, Inc., New York, NY Friends of Westborough State Hospital,

Brooklyn, NY Bird Island Trust Inc., Boynton Beach, FL Bishop Cheverus Society, Inc., Boston,

Inc., Westborough, MA Good Shephards Christmas, Inc.,

Needham, MA Greenwich Citizens Committee, Inc.,

Greenwich, NY Guard & Reserve Family Relief Fund,

MA Booker T. Anderson Scholarship Fund,

East Hebron, NH Hartford Late Night, Inc., Hartford, CT

1997–34 I.R.B. 13 August 25, 1997

Health Care Professional Association, Inc.,

Brooklyn, NY Hearn Historical and Preservation Society,

ME The Matlovich Society, Portland, ME Maywood Renaissance Center Inc.,

Maine Paramedic Association, Waterville,

Safety at Sea Institute, Newport, RI Salisbury Historical Society, Inc.,

Inc., New York, NY Heritage Initiative for Responsible

Economic Development-Hired, Bar Harbor, ME Hope Community House, Inc.,

Maywood, IL Mission Metro New York, Inc.,

Salisbury, MA Santa Claus Anonymous, Inc., Cambridge,

MA Saratoga Teen and Recreation Foundation,

Inc., Saratoga Springs, NY Save American Manufacturing

Morganville, NJ Imani House, Brooklyn, NY Information Consolidation Bureau, Inc.,

Boston, MA Insight Mediation Center, Inc., Newbury,

Saddlebrook, NJ Nassau Placement Network, Inc., Valley

Stream, NY National Center to Save Our Schools,

Schuylerville, NY Seed & Harvest Ministries, Inc., Flagler,

Westbury, NY National Committee for the Rights of the

Foundation, Inc., Tonawanda, NY Save Our Schwarzmanns Mill, Inc.,

Burlington, CT Schuyler Village Day Care, Inc.,

MA Institution of Housing and Community

CO Shadagee Hill, Inc., Holland, NY Sikh Education Foundation of North

Development, Maywood, IL International Center for Jewish Christian

Child, Durham, NC Neighbor Care, Dover, MA New Century Conservation Trust, Inc.,

Brunswick, ME New England Microfocus Users Group,

Understanding, Inc., New York, NY International Student Education Fund,

America, Pittsford, NY Toras Olam, Brooklyn, NY Ysleta Education Foundation, El Paso, TX

New York, NY King Spike Theatre, Inc., New York, NY Kollel Zichron Brocha, Brooklyn, NY Kurdistan Forum, Inc., New York, NY La Candelaria East Harlem Community

Inc., Boston, MA New York State Science Education

Center, Inc., New York, NY Language & Learning Intervention in a

Family Environment, Inc., Dobbs Ferry, NY La Primera Orquesta De Cuatro De

Leadership Association, Clinton Corners, NY Prototype Housing, Inc., New York, NY Public Compound-7, Inc., New York, NY Restore Olmsteds Waterway Coalition,

Brookline, MA Rhino Realty, Inc., Boston, MA Rhode Island Childrens Advocacy Center,

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.

Connecticut, Inc., Hartford, CT Lifelearn Center for Lifelong Learning,

San Anselmo, CA Loon Preservation Committee, Laconia,

Providence, RI Rhode Island Securities Awareness

NH Loradore Institute, Bronx, NY Louis Latimer Garden Community Center,

Corporation, Inc., Providence, RI Right Side Up, Divide, CO River Side Peers Assisting Peers, Inc., Port

Jervis, NY Robertson Scientific Research, Inc., Tulsa,

OK Roots of Evangelism, Mt. Vernon, NY Roots Revisited, Inc., Brooklyn, NY

Flushing, NY

August 25, 1997 14 1997–34 I.R.B.