Part IV. Items — Internal Revenue Bulletin 1997-38

Notice of Proposed Rulemaking and Notice of Public Hearing

Rules for Property Produced in a Farming Business

REG–208151–91

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing.

SUMMARY: In T.D. 8729 on page 4 of this Bulletin, the IRS is issuing temporary regulations relating to the application of section 263A of the Internal Revenue Code of 1986 to property produced in a farming business. The regulations affect taxpayers engaged in the business of farming that grow or raise plants or animals. The text of T.D. 8729 also serves as the text of these proposed regulations. This document provides notice of a public hearing on these proposed regulations.

DATES: Written comments must be received by November 20, 1997. Requests to speak and outlines of topics to be discussed at the public hearing scheduled for November 19, 1997, must be received by October 29, 1997.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-208151–91), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG208151–91), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC. Alternatively, taxpayers may submit comments electronically via the internet by selecting the “Tax Regs” option on the IRS Home Page, or by submitting comments directly to the IRS internet site at http://www.irs.ustreas. gov/prod/tax_regs/comment.html. The public hearing will be held in room 2615, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Jan

Skelton, (202) 622-4970; concerning submissions and the hearing, Michael Slaughter, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

T.D. 8729 amends Regulations on Income Taxes (26 CFR part 1). The regulations provide guidance with respect to the application of section 263A to property produced in a farming business.

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 12866. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. 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

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

A public hearing has been scheduled for Wednesday, November 19, 1997, at 10 a.m., at the Internal Revenue Building, 1111 Constitution Ave., NW, Washington, DC, 20224. 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 November 20, 1997 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 October 29, 1997.

A period of ten 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 Jan Skelton of the Office of Assistant Chief Counsel (Income Tax & Accounting). However, other personnel from the IRS and Treasury Department participated in their development.

Proposed Amendments to the Regulations

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 1.263A–0 is amended by:

Revising the introductory text.
Adding the entries for §1.263A–4. The addition and revision read as follows:

§1.263A–0 Outline of regulations under section 263A.

This section lists the paragraphs in §§1.263A–1 through 1.263A–4 and §§1.263A–8 through 1.263A-15.

§1.263A–4 Rules for property produced in a farming business.

[The text of the proposed entries for §1.263A–4 in §1.263A–0 is the same as

1997–38 I.R.B. 21 September 22, 1997

Connecticut Junior Academy of Science

the text of the entries for §1.263A–4T in §1.263A–0T published in T.D. 8729].

Par. 3. Section 1.263A–4 is amended by revising the section heading and adding new text to read as follows:

§1.263A–4 Rules for property produced in a farming business.

[The proposed text of §1.263A–4 is the same as the text in §1.263A–4T published in T.D. 8729.]

Michael P. Dolan, Acting Commissioner of

Internal Revenue.

(Filed by the Office of the Federal Register on August 21, 1997, 8:45 a.m., and published in the issue of the Federal Register for August 22, 1997, 62 F.R. 44607)

Foundations Status of Certain Organizations

Announcement 97–97

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: Acadia Homes for Students, Ellsworth,

The Albany Civic Forum, Inc., Albany,

Abuse, Austin, TX Bone Marrow Transplant Family Support

Network, Avon, CT Brooklyn Heights Center for Counseling,

NY Allied Printing Trades Council

Community Services, Inc., New York, NY All Species Wildlife Sanctuary &

and Engineering, Hamden, CT Dekos A Foundation for Education,

Harvard, MA Don Martin Pena Sabana, Inc., New

York, NY East Hampton-Marlborough Foundation,

Environmental Learning Center, Rockport, ME American Central European Dental

Institute, Ltd., Boston, MA American Friends of Elah, Inc., New

York, NY American Friends of the Cambodia Trust,

East Hampton, CT 84th Precinct Community Council, Brooklyn, NY 1st Ward Boosters, Lackawanna, NY Five Towns Jewish Council, Inc.,

Woodmere, NY Flora T. Little Trust, Bridgewater, MA Fraternidad Sangermenos Unidos, Inc.,

Inc., New York, NY American Friends of the Russian

Academy, Inc., New York, NY The American Music Ensemble, Inc.,

Winchester, MA Americans for Exchange of Culture

Education & Language in East Central Europe & Russia, Inc., Patchogue, NY Anagram Productions, Inc., Boston, MA Andrew E. Tyler Scholarship Foundation,

New York, NY Animal Connection, Inc., New York, NY Animal Control Officers Association of

New York, NY Golden Eagle Institute, Inc., Flushing,

NY Heart Center Foundation, Manchester,

Inc., Waterbury, CT Homeless Resource Center, Inc., Wards

Island, NY International Midwives Exchange, Inc.,

NH Hingham Music Parents Association,

Hingham, MA Hispanic Coalition of Greater Waterbury,

Massachusetts, Inc., Canton, MA Anna Anderson Doering Memorial

Scholarship Trust, Cromwell, CT Aquila Legis Foundation of North

America, Inc., New York, NY Armenian Art Alliance, Watertown, MA Artspeak, Inc., North Andover, MA Asgog Foundation, Inc., New York, NY Ashland Elementary School PTO, Inc.,

Kingston, NY Island Waldorf Community, Inc., West

Tisbury, MA Jewish Deaf Congress, Inc., Potomac,

MD Joshua Smith Foundation, Mystic, CT Kids With Kids, Inc., New York, NY Ladies of Color, Inc., Jamaica, NY Lazarus Program for the Homeless, Inc.,

Ashland, MA Association of Citizen Advocacy

Programs in Connecticut, Inc., Bridgeport, CT Ballet Bagata, Inc., Brooklyn, NY Barnstable County Hospital Foundation,

New York, NY L. Frank Baum-Oz Museum, Inc.,

Inc., Farnams Cheshire, MA Loving Family, Inc., New York, NY Maine Energy Coalition, Bar Mills, ME Massachusetts Black Lawyers

Chittenango, NY Lightwing Institute in the Berkshires,

Inc., Yarmouth, MA Bartlett-Jackson Recreation Youth

Center, Intervale, NH Beam Project, Inc., Allston, MA Black Christians Against Substance

Community Service Association, Inc., Boston, MA Mass-Cap Coalition, Inc., Lexington, MA Mental Health Resources, Inc., Rockland,

ME Advance, Inc., Derby, CT Afghan Hindu Association, Inc.,

Flushing, NY African Methodist Ministries Alliance,

Buffalo, NY African Women Against Aids Network,

Inc., Brooklyn, NY Central Harlem Local Development

NY Citizens for a Safer Minnesota Education

Fund, St. Paul, MN Community Television Association of

Corporation, New York, NY Central Harlem Partnership, New York,

ME M.E.R.C.A., Lebanon, NH Merrimack Valley Computer Society,

Inc., Lowell, MA Michael Hefler Memorial Fund, Inc.,

New York, NY Middlesex Spotlight Players, Inc.,

Middletown, CT Modern Dance Center of Westchester,

Inc., New Rochelle, NY Akademia Duncan, New York, NY Akiele, Inc., Yorktown Heights, NY

Inc., Bronxville, NY

Maine, South Portland, ME

September 22, 1997 22 1997–38 I.R.B.

New Hampshire Coalition on Substance

Sebasticook Valley Boys and Girls Club,

Volunteers for Homeless Inc.,

Abuse & the Elderly, Bedford, NH New Hampshire Dare Officers

Association, North Woodstock, NH New Horizons Counseling Center,

Presque Isle, ME North Shore Art Guild, Inc., Miller Place,

Pittsfield, ME 2nd Renaissance Foundation, Inc., Natick, MA Sharisa Advocacy Foundation for

Education and Research, Inc., New City, NY Society To Save Children and Families of

Levittown, PA The Wellness Foundation of Vermont,

Barre, VT Worcester Project, Inc., Gardner, MA Workforce Development Corp.

Downtown Brooklyn Training Employment Council, New York, NY 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.

NY Oyster River High School Athletic

Booster Club, Durham, NH Pediatric & Medical Clinical Associates,

War-Torn Liberia, Inc., Jamaica, NY Stafford Springs Volunteer Fire Dept.,

Inc., Stafford Springs, CT Stageworks of Leominster, Inc.,

Inc., Valhalla, NY Rainbow Repertory Theatre, Inc., New

York, NY Reaching the Community Needs, Inc.,

Flushing, NY The Region & Assembly of Overeaters

Anonymous, Brooklyn, NY Rural Development, Inc., Turner Falls,

Leominster, MA Sumoto An African-American Christian

Womens Group, Sacramento, CA Twinfish Productions, Inc., East

MA Russian-American Council on Economic

Rockaway, NY 2000 Miracles Foundation, Inc., Greenwich, CT United Conservationists of North

America, Inc., Lyons, NY Veterans Assistance Foundation, Inc.,

Development, New Haven, CT Sabai, Inc., Lowell, MA

Framingham, MA

1997–38 I.R.B. 23 September 22, 1997