Part IV. Items of General Interest

Foundations Status of Certain Organizations

Announcement 97–101

Kundalini Yoga Ashram of

New York, Inc., New York, NY La Coalicion Deportiva Hispano

Napa State Hospital Volunteer Community

Advisory Board, Napa, CA National Aids Memorial, Jersey City, NJ National Association for Orphans &

The following organizations have failed to establish or have been unable to maintain their status as public charities or as operating foundations. A c c o r d i n g l y, 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. T h i s listing does not indicate that the organizations have lost their status as org a n i z ations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following

• rganizations (which have been treated as

• rganizations that are not private foundations described in section 509(a) of the Code) are now classified as private found a t i o n s : Advisory Committee of the Burton E.

Americana, Inc., New York, NY Lao International Community

Copiague, NY Lights on Deaf Theater, Ltd.,

Development Center of CT., Inc., Hartford, CT La Paloma, Inc., Watertown, CT Las Puertas Housing Corporation,

Abandoned Children, Glenn Dale, MD National Business Council for Family

Daycare, Inc., Kensington, CT National Educational Technologies

Bronx, NY Latin American Womens Association of

Research Institute, Inc., Groton, CT National Incarcerated Aids Network,

Leominster, MA National Infertility Network Exchange,

Connecticut, Inc., Hamden, CT Latino Community Volunteers

Corps., Inc., Middleborough, MA Latino Peace Officers Association of

East Meadow, NY National Youth Achievement Foundation,

Massachusetts, Charlestown, MA Lawrence D. Bell Aerospace Museum,

Bronx, NY Neighborhood Assistance Center

Corporation, Woodhaven, NY Nelson Memorial Playground Assn., Inc.,

Williamsville, NY Lechendor Arts Group, Inc.,

New York, NY Lewis Foundation for Disadvantaged

Plymouth, MA Ner Sarah Childrens Fund, Inc.,

Lawrence, NY New England Alliance of Multiracial

Children, Inc., New York, NY Ley, Staten Island, NY Lift Up a Standard Ministries, Inc.,

Families, Inc., Medford, MA New England Environmental Law

Stevenson Endowment Fund, Chillicothe, OH Albina Head Start, Inc., Portland, OR Animal Rescue and Rehabilitation

Rochester, NY Lions Youth Hockey Association, Ltd.,

Glen Head, NY Living Farms, Inc., Bronx, NY Local Education Alternatives Resource

New Haven, CT New Hope, Lake Wood, CA New Rochelle Opera Guild,

S o c i e t y, Inc., Boston, MA New Haven River Anglers, Inc., Bristol, V T New Haven Womens Aids Coalition, Inc.,

New Rochelle, NY New Visions, Inc., Washington Mills, NY Nightingale Research Foundation, Inc.,

Foundation LTD, Savona, NY Brooklyn Gastroenterological

Association, Brooklyn, NY Broome County Chapter American

Institute of Banking, Binghamton, NY Circolo Culturale Jazz, Inc.,

Network, Inc., New York, NY Long Island Animal Advocates, Inc.,

Rockville Centre, NY Long Island Society Prevention of

Cruelty Children County Nassau, Inc., Mineola, NY Maat, Inc., Brooklyn, NY Madonna of the Streets, Inc.,

Staten Island, NY Evergreen Network, Inc., Southport, CT Family Life Center, Inc., Aliquippa, PA Firedrake Inc., New York, NY Foundation for Research in Cardiac

Ogdensburg, NY Non Hunters Rights Alliance,

Rockland, ME Norman A. Fennell Memorial Scholarship

Foundation, Inc., Harwichport, MA Northeast Bronx Redevelopment

Corporation, Bronx, NY Nutmeg BMX, Inc., Bridgeport, CT Ocean State Knitting Guild, Cranston, RI Onteora Babe Ruth League, Inc.,

Foundation, Inc., Port Washington, NY Organization for the Retirement of

Surgery and Cardiovascular Biology, Inc., New York, NY Friends of Families, Buena Park, CA Hip Hoppin Corporation, Brooklyn, NY Hope Alliance for Animals, Branford, CT International Institute for Trade and

Buffalo, NY Mahasatipatthana Meditation Center,

Inc., Brooklyn, NY Maine Respite Home, Portland, ME Making Ends Meet Foundation, Inc.,

Marblehead, MA Management Corps for the Emerging

East, Inc., Wellesley, MA Mariners Harbor Improvement

New York, NY Optimum Professional Achievement

Education, Inc., Brookline, MA International Womens Club of New

England, Cape Neddick, ME Inwood Heights Housing Development

Corporation, Staten Island, NY Mark A. Kent Scholarship Fund, Inc.,

Hingham, MA The Mayors Committee for a Better

People, Inc., Far Rockaway, NY Our Daily Blessings, Albion, NY Our Lady of Mt. Carmel Development

Fund Corporation, Bronx, NY Iota Kappa Lambda Schola,

Syracuse, NY Iscomp Technical Institute,

Corporation, New York, NY Our Place Drop in Center,

Bellows Falls, VT Paramus Affordable Housing

Corporation, Paramus, NJ People Helping People with Christ, Inc.,

Wareham, MA

Los Angeles, CA Jose Napoleon Duarte Foundation, Inc.,

Community, Las Vegas, NV Mount Eve Land Trust, Inc., Goshen, NY Naked Theatre, Inc., New Haven, CT Nantucket Education Trust, Inc.,

Mamticlet, MA

Great Falls, VA

1997–41 I.R.B. 13 October 14, 1997

Region 15 PTO Perpetual Fund,

ing to the internal revenue tax liability of such person (or of the person or estate for whom he or she acts). This does not include the authority to set aside any closing agreement.

Delegated to: The Assistant Commissioner (Employee Plans and Exempt Organizations) in cases under his or her jurisdiction.

Redelegation: This authority may be redelegated to special assistants and division directors reporting directly to the assistant commissioner.

5. Authority: To enter into and approve a written agreement with any person relating to the internal revenue tax liability of such person (or of the person or estate for whom he or she acts), for a taxable period or periods ended prior to the date of the agreement and related specific items affecting other taxable periods. This does not include the authority to set aside any closing agreement.

Delegated to: In cases under their jurisdiction (but excluding cases docketed before the United States Tax Court), the Assistant Commissioner (International); regional commissioners; regional counsel; regional chief compliance off i c e r s ; service center directors; district directors; regional directors of appeals; assistant regional directors of appeals; chiefs and associate chiefs of appeals offices; and appeals team chiefs with respect to their team cases.

Redelegation: 1. Service center directors and the Director, Austin Compliance C e n t e r, may redelegate this authority no lower than the Chief, Examination Support Unit, with respect to agreements concerning the administrative disposition of certain tax shelter cases, and no lower than the Chief, Windfall Profit Tax Staff, A u s t i n Service Center or Austin Compliance Cent e r, with respect to entering into and approving a written agreement with the Ta x Matters Partner/Person (TMP) and one or more partners or shareholders with respect to whether the partnership or S corporation, acting through its T M P, is duly authorized to act on behalf of the partners or shareholders in the determination of partnership or S corporation items for purposes of the tax imposed by Chapter 45, and for purposes of assessment and collection of the windfall profit tax for such partnership or S corporation taxable year.

Southbury, CT Sepharadic Heritage Alliance, Inc.,

Great Neck, NY Spokane Chamber Choir, Colville, WA Zanesville Green Commission, Inc.,

Zanesville, OH 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 Ta x Regulations. It is not the practice of the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

Delegation Order No. 97 (Rev. 34)

Delegation of Authority

A G E N C Y: Internal Revenue Service (IRS), Treasury.

ACTION: Delegation of Authority

S U M M A RY: The authority delegated by the Commissioner of Internal Revenue to the Assistant Commissioner (Employee Plans and Exempt Organizations), to enter into and approve certain closing agreements, may be redelegated to special assistants and division directors reporting directly to the Assistant Commissioner (Employee Plans and Exempt Org a n i z ations). The text of the delegation order appears below.

EFFECTIVE DATE: August 18, 1997

FOR FURTHER INFORMATION CONTA C T: John H. Tu r n e r, CP:E:EP:P:2, Room 6702, 1111 Constitution Av e n u e, NW, Washington, DC 20224, (202) 6226214 (not a toll-free number).

Effective: August 18, 1997

Closing Agreements Concerning Internal Revenue Tax Liability (Supplemented by Delegation Orders No. 236, 245, 247 and 248) 1. Authority: To enter into and approve a written agreement with any person relating to the internal revenue tax liability of

such person (or of the person or estate for whom he or she acts) in respect to any prospective transactions or completed transactions if the request to the Chief Counsel for determination or ruling was made before any affected returns have been filed. This does not include the authority to set aside any closing agreement.

Delegated to: The Chief Counsel in cases under his/her jurisdiction.

Redelegation: This authority may be redelegated no lower than the Deputy Associate Chief Counsels for cases under their respective jurisdictions and to the Assistant Chief Counsels for cases under their respective jurisdictions that do not involve precedent issues.

2. Authority: To enter into and approve a written agreement with any person relating to the internal revenue tax liability of such person (or of the person or estate for whom he or she acts) for a taxable period or periods ended prior to the date of agreement and related specific items affecting other taxable periods. This does not include the authority to set aside any closing agreement.

Delegated to: The Associate Chief Counsels and the Assistant Commissioners (Examination) and (International) for matters under their respective jurisdictions.

Redelegation: The authority delegated to the Associate Chief Counsels may be redelegated, by the Deputy Chief Counsel, to the Deputy Associate Chief Counsels. The authority delegated to the A s s i s t a n t Commissioners (Examination) and (International) may be redelegated, respectively, to the Deputy Assistant Commissioners (Examination) and (International).

3. Authority: To enter into and approve a written agreement with any person relating to the internal revenue tax liability of such person (or of the person or estate for whom he or she acts) with respect to the performance of his or her functions as the competent authority under the tax conventions of the United States. This does not include the authority to set aside any closing agreement.

Delegated to: The Assistant Commissioner (International).

Redelegation: This authority may be redelegated to the Deputy Assistant Commissioner (International).

4. Authority: To enter into and approve a written agreement with any person relat

October 14, 1997 14 1997–41 I.R.B.

2. The Assistant Commissioner (International) and district directors may redelegate this authority no lower than the Chief, Quality Review Staff/Section with respect to all matters, and not below the Chief, Examination Support Staff / S e ction, or Chief, Planning and Special Programs Branch/Section, with respect to agreements concerning the administrative disposition of certain tax shelter cases, or Chief, Special Procedures function, with respect to the waiver of right to claim refunds for those responsible officers who pay the corporate liability in lieu of a trust fund recovery penalty assessment under IRC 6672.

6. Authority: In cases under their jurisdiction docketed in the United States Tax Court and in other Tax Court cases upon the request of Chief Counsel or his/her delegate, to enter into and approve a written agreement with any person relating to the internal revenue tax liability of such person (or of the person or estate for whom he or she acts), but only in respect to related specific items affecting other taxable periods. This does not include the authority to set aside any closing agreement.

Delegated to: The associate chief counsels; the Assistant Commissioners (Employee Plans and Exempt Org a n i z ations) and (International); regional commissioners; regional counsel; regional directors of appeals; assistant regional directors of appeals; chiefs and associate chiefs of appeals offices; and appeals team chiefs with respect to their team cases.

Redelegation: This authority may not be redelegated.

7. Authority: In cases under the jurisdiction of the Assistant Commissioner (International), to enter into and approve a written agreement with any person relating to the internal revenue tax liability of such person (or of the person or estate for whom he/she acts), and to provide for the mitigation of economic double taxation under section 3 of Revenue Procedure 64–54, 1964–2 C.B. 1008, under Revenue Procedure 72–22, 1972–1 C.B. 747, and under Revenue Procedure 69–13, 1969–1 C.B. 402, and to enter into and approve a written agreement providing the treatment available under Revenue Procedure 65–17, 1965–1 C.B. 833. This does not include the authority to set aside any closing agreement.

Delegated to: The Assistant Commissioner (International).

Redelegation: This authority may not be redelegated.

S o u rces of Authority: 26 CFR 301.7121–1(a); Treasury Order No. 150–07; Treasury Order No. 150–09; and Treasury Order No. 150–17, subject to the transfer of authority covered in Treasury Order No. 120–01, as modified by Treasury Order No. 150–27, as revised.

To the extent that the authority previously exercised consistent with this order may require ratification, it is hereby affirmed and ratified.

This order supersedes Delegation Order No. 97 (Rev. 33), which was effective March 15, 1996.

Approved August 18, 1997.

Michael P. Dolan Deputy Commissioner

Changes to Volume Submitter and Regional Prototype Programs

Announcement 97–102

A. Introduction

Because the Internal Revenue Service (Service) is consolidating its determination letter processing program at the Ohio Key District Office in Cincinnati, changes in the Volume Submitter and Regional Prototype Programs are necessary. Previously, each key district office managed its own program.

H o w e v e r, effective with the date of publication of this announcement, all requests for Volume Submitter A d v i s o r y letters and Regional Prototype Notification letters may only be submitted to the Ohio Key District Office in Cincinnati. All existing Notification and A d v i s o r y letters remain valid. In addition, requests for determination letters by employers who adopt a Regional Prototype or Vo lume submitter plan may only be submitted to the Ohio Key District Office.

This Announcement provides practitioners with specific instructions for submitting requests for approval of Vo l u m e Submitter and Regional Prototype plans (both new or amended). In addition, the Announcement provides instructions for the submission of determination letter re

quests for adopters of these types of plans.

B. Background

The Volume Submitter Program enables the Service to expedite the issuance of determination letters in response to applications for approval of certain individually designed retirement plans. Under the program, previously administered by each key district office, a practitioner who meets the standards in C below, may request the Service to issue an advisory letter regarding the volume submitter specimen plan. A specimen plan is a sample plan of a practitioner (rather than the actual plan of an employer) that contains provisions that are identical or substantially similar to the provisions in plans that the practitioner’s clients have adopted or are expected to adopt. Once the Service approves the specimen plan, the practitioner is able to file determination letter requests on behalf of employers adopting substantially similar plans. These determination letter requests ordinarily will be processed more quickly than requests for other individually designed plans. The requirements for the Volume Submitter Program are described more fully in Rev. Proc. 97–6, 1997–1 I.R.B. 153.

A Regional Prototype Plan is a plan that is made available by a regional sponsor for adoption by employers. A R e g i o n a l Prototype Plan consists of a basic plan document, an adoption agreement, and (with certain exceptions) a trust or custodial account document. Once the Service has approved the plan, an employer is able to request a determination letter, if needed for reliance. These determination letters ordinarily will be processed more quickly than requests pertaining to individually designed plans. The requirements for the Regional Prototype Program are described more fully in Rev. Proc. 89–13, 1989–1 C.B. 801, as modified.

C. Approval of Volume Submitter Plans

Once a Volume Submitter practitioner’s specimen plan is approved by the Ohio Key District (whether as a new specimen plan or as an amendment to a previously approved specimen plan) the approved plan may be marketed throughout the c o u n t r y.

See F. below for Where To File.

1997–41 I.R.B. 15 October 14, 1997

D. Approval of Regional Prototype Plans

Since the Regional Prototype Program is a national program with uniform rules across the country, there will be no change in the requirements for this program. Sponsors of Regional Prototype Plans seeking a notification letter and adopting employers seeking a determination letter should continue to follow the instructions contained in Rev. proc. 89–13, as modified. As of the date of the publication of this Announcement, Regional Prototype sponsors may market approved Regional Prototype plans throughout the country.

See F. Below for Where to File.

E. Registration of Regional Prototype Plans

Sponsors of Regional Prototype Plans must continue to meet the registration requirement of Section 14 of Rev. Proc. 89–13, as modified by Rev. Proc. 95–42 1995–2 C.B. 411.

F. Where to File

A request for approval of a volume submitter specimen plan should be submitted to the Volume Submitter Coordinator in the Ohio Key District Office at the following address:

Internal Revenue Service P.O. Box 2508 Cincinnati, OH 45201 ATTN: VSC Coordinator Room 4106 Practitioners who (1) sponsor Regional Prototype Plans, (2) adopt the plans of mass submitters approved by Headquarters after the date of this Announcement, or (3) amend plans previously approved by the Service, must submit their applications for notification letters to the Ohio Key District Office.

Adopters of previously approved Vo lume Submitter and Regional Prototype plans should address requests for determination letters to the Ohio Key District Office at the following address:

Internal Revenue Service P.O. Box 192 Covington, KY 41012-0192 Applications shipped by Express Mail or by a delivery service should be sent to:

Internal Revenue Service 201 West Rivercenter Boulevard ATTN: Extracting Stop 312 Covington, KY 41011

G. Reliance

Practitioners who already have Service approved Volume Submitter and/or Regional Prototype plans may continue to rely on their advisory/notification letters. S i m i l a r l y, adopters of such plans who have determination letters or are entitled to rely on a notification letter, may continue to rely on them.

In certain instances, most notable a l a rge influx of applications, the application review may take place in an off i c e other than the Cincinnati office.

H. Comments

The Service is presently considering the feasibility of maintaining three separate volume type programs (Master and Prototype, Regional Prototype and Vo lume Submitter). The Service is seeking input from practitioners as to what, if any, changes should be made to the programs. Any practitioner wishing to comment on this matter should address comments to:

Internal Revenue Service 1111 Constitution Avenue, NW Washington DC 20224 ATTN: CP:E:EP:FC Room 2236 Comments will be accepted until sixty (60) days after the publication of this Announcement.

Optional Procedures for Substantiating Certain Travel, Etc., Expenses — Public Comments Requested

Announcement 97–103

R e v. Proc. 97–45, page 10, provides optional rules under which an employee of a federal government agency who is reimbursed for ordinary and necessary business expenses relating to travel, entertainment, gifts, or listed property (such as an employee’s automobile) may make an adequate accounting to the employer to substantiate those expenses (under §§ 1.274–5T(f) (2) and (4) (ii) of the temporary Income Tax Regulations) by submitting an account book, diary, log, etc., alone, without submitting documentary evidence such as receipts. These rules generally apply to employees of the executive and judicial branches, and certain employees of the legislative branch, of the federal government. The Service re

quests comments from federal government agencies on the procedure in Rev. Proc. 97–45.

In addition, the Service will continue to accept public comments (originally requested in connection with the publication of § 1.274–5T(f) (4) (ii)) regarding whether there are circumstances or conditions (including the use of internal controls) under which the Service could extend procedures like those in Rev. Proc. 97–45 to employers that are not federal government agencies.

Comments should be submitted by December 31, 1997 to: Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, A t t n : C C : D O M : C O R P : T:R (IT&A Branch 2), Room 5228. All materials submitted will be available for public inspection and copying.

Section 7428(c) Validation of Certain Contributions Made During Pendency of Declaratory Judgment Proceedings

This announcement serves notice to potential donors that the organizations listed below have recently filed timely declaratory judgment suits under section 7428 of the Code, challenging revocation of their status as eligible donees under section 170(c)(2).

Protection under section 7428(c) of the Code begins on the date that the notice of revocation is published in the Internal Revenue Bulletin and ends on the date on which a court first determines that an org anization is not described in section 170(c)(2), as more particularly set forth in section 7428(c)(1). In the case of individual contributors, maximum amount of contributions protected during this period is limited to $1,000, with a husband and wife being treated as one contributor. This protection is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the org a n i z ation that were the basis for the revocation. This protection also applies (but without limitation as to amount) to org a n i z a t i o n s described in section 170(c)(2) which are exempt from tax under section 501(a). If the organization ultimately prevaisl in its declaratory judgment suit, deductibility of contributions would be subject to the normal limitations set forth under section 170. Oriana House, Inc., Akron, Ohio Don Stewart Association, Phoenix, AZ

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1997–41 I.R.B. 17 October 14, 1997

October 14, 1997 18 1997–41 I.R.B.

1997–41 I.R.B. 19 October 14, 1997