Part IV. Items of General Interest

Year 2000 Changes

Announcement 98–5

The purpose of this announcement is to identify forms and date fields that will be affected by the impending expansion of the date field to accommodate the Year 2000. The Information Reporting Program has date fields within the information return records filed magnetically/electronically to the Martinsburg Computing Center. Currently we allow a two-position field for the year (YY) which appears in both the Payer “A” Record and Payee “B” Record. All other dates within the Payee Records are currently six-digit fields in the format of MMDDYY.

For Tax Year 1998, the information returns date fields will be expanded and reformatted by changing the two-digit tax year field to four-digits in preparation for the Year 2000. To accommodate the change, the four-digit tax year field in the Payer “A” Record will be in positions 25. The sequence number field will be eliminated due to the date expansion. The tax year will be dropped in the Payee “B” record since the tax year of the return can be determined by the tax year provided in the Payer “A” Record. By expanding the tax year field to four-positions, the Information Reporting Program will be consistent with the industry standard.

The record format for information returns filed magnetically/electronically will have the following changes:

• Two-digit date fields (YY) will be

In addition to the necessary Year 2000 changes, there are changes that will be made as a result of legislative requirements. The current 420 position record will be expanded to accommodate this new information. It is our intention to make the Publication 1220, which will identify these changes, available as soon as possible.

This announcement refers specifically to the information returns designated below that are received and processed magnetically/electronically at the Internal Revenue Service, Martinsburg Computing Center. The related publications will be revised accordingly.

1098 Mortgage Interest Statement 1099–A Acquisition and Abandonment of Secured Property 1099–B Proceeds From Broker and Barter Exchange Transactions 1099–C Cancellation of Debt 1099–DIV Dividends and Distributions 1099–G Certain Government Payments 1099–INT Interest Income 1099–LTC Long Term Care and Accelerated Death Benefits 1099–MISC Miscellaneous Income 1099–MSA Distributions from Medical Savings Accounts 1099–OID Original Issue Discount 1099–PATR Taxable Distributions Received from Cooperatives 1099–R Distributions From Pension, Annuities, Retirement or Profit-Sharing

Plans, IRAs, Insurance Contracts, Etc. 1099–S Proceeds From Real Estate Transactions 5498 Individual Retirement Arrangement Information 5498MSA Medical Savings Account Information W–2G Certain Gambling Winnings 1042S Foreign Person’s U.S. Source Income Subject to Withholding W–4 Employee’s Withholding Allowance Certificate The date field expansion will be effective for Tax Year 1998 data filed in Calendar Year 1999.

Announcement 98–6

The Form 5498 IRA/SEP/SIMPLE Indicator instructions on page 42 of the TY97 Publication 1220 are causing confusion to both filers and to the Internal Revenue Bulletin (I.R.B.). In your publication, please cross out the phrase “and not reporting contributions in Amount Codes 1, 6, or 7”. (See below.)

The TY97 paper instructions advise filers to use the IRA/SEP/SIMPLE Indicators with Payment Amount Fields 2 and 4 only if there is no money reported in Payment Amount Fields 1, 6, or 7. Our program re- quires an indicator if there is money in Payment Amount Fields 2 and 4. For filing information returns magnetically or electronically, the Publication 1220 instructions take precedent over the paper instructions.

An I.R.B. will be issued to clarify the problem.

Please notify ISS if there are any other areas of concern with the new pub.

expanded to four-digits (YYYY)

• Six-digit date fields (MMDDYY)

will be changed to eight-digits (YYYYMMDD)

141 Form 5498 IRA 1 Required. Form 5498 only. Enter ‘ 1 ’if reporting a rollover (Amount Code 2) Indicator ( I ndividual or Fair Market Value (Amount Code 4) for an IRA.Otherwise, enter a blank. R etirement A rrangement)

142 Form 5498 SEP Indicator 1 Required. Form 5498 only. Enter ‘ 1 ’if reporting a rollover (Amount Code 2) ( S implified E mployee P ension) or Fair Market Value (Amount Code 4) for a SEP. Otherwise, enter a blank.

143 Form 5498 SIMPLE 1 Required . Form 5498 only. Enter ‘ 1 ’if reporting a rollover (Amount Code 2) Indicator ( S avings I ncentive or Fair Market Value (Amount Code 4) for a SIMPLE. Otherwise, enter a M atch Pl an for E mployees blank. of Small employers)

1998–5 I.R.B 25 February 2, 1998

Highways and Hedges Inc., Onalaska, WI Hill Country Childrens Advocacy Center,

Llano, TX Hill Country Social Services Inc., Sachse,

Foundations Status of Certain Organizations

Announcement 98–7

Calistoga Music Ministries, Angwin, CA Caring Friends Foundation Incorporated,

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: Anchorage Education Community

Rialto, CA Carson Community Emergency Shelter,

Carson, CA Celebrity AIDS Benefit, Wrightwood,

TX Charleston Stage Company, Charleston,

CA Center for A New Generation, East Palo

TX Hill Country Victims Inc., Burnett, TX Hillcrest Community Development Inc.,

Bentonia, MS Hillsborough County Law Enforcement

Alto, CA Central Area Business Development

Center, Seattle, WA Central Recovery & Development

Project, Los Angeles, CA Champions Foundation Inc., Athens, GA Chandler Parents Club Inc., Chandler, OK Change Masters Inc., Greeley, CO Channel Housing Ministries Inc., New

Charity Inc., Tampa, FL Hillsdale County Celebration of Christ,

Hillsdale, MI Hilton Head Island Soccer Club, Hilton

Inc., Hilton Head Island, SC His House Ministries Inc., Warner

Head Island, SC Hilton Head Wildlife Rescue Service

Era, MI Channel Vision Inc., Los Angeles, CA Chapel Foundation, Nashville, TN Chapel Perilous Theater Ensemble,

Robins, GA Hispanic American Association of SA

Chicago, IL Charity of the Three Fishermen, Houston,

Rasota Manatee Counties Inc., Sarasota, FL Hispanic American Construction Industry

Ed & Civic Awareness Org., Chicago, IL Hispanic American Foundation

Winning With Stronger Education, Anchorage, AK Armenian Film Society, Northridge, CA Association of Alpha Development

Hispanic Oldtimers All-Star Base, Chicago, IL Hispanic Veterans Project of Kansas Inc.,

WV Chase Homeless Assistance Fund Inc.,

Corporation, Miami, FL Hispanic Sports Hall of Fame and

Development, Maywood, IL NAIOP Charities Inc., McLean, VA Nasau Volunteer Dive Rescue Team,

Corporations, Los Angeles, CA Association of Black Families for

Cultural and Educational Development, Oakland, CA Auburn Resident Council, Auburn, CA Ayuda Homes, Walnut, CA Bakersfield Korean Academy,

Bakersfield, CA Bardia Foundation Inc., Westlake, CA Bay Area Black Professionals, Oakland,

CA Believers Quartet Inc., Sacramento, CA Berkeley Community Homes, Oakland,

CA Big Blue Foundation Inc., Los Angeles,

CA Big Rock Productions Inc., Malibu, CA Black Eyes Productions Inc., San Jose,

CA Boise Blue Society, Inc., Boise, ID Borinquen Culture Through Agriculture

Montpelier, OH Chassidic Center Nusach Ari of the West

Inc., Denver, CO Chattanooga Hamilton Area Community

Development Corporation, Chattanooga, TN Circus Earth Foundation, San Diego, CA Council for Safer Communities, Chicago,

Ridge, NJ Halifax County HIV AIDS Task Force,

Olathe, KS I N K Investing N Kids, Hilmar, CA Institution of Housing and Community

IL Farish Street Historic District

Neighborhood Foundation Inc., Jackson, MS Farm Plan Advocates Inc., Charlotte, NC Farmers Harvest Inc., Philadelphia, PA Farragut Dugout Club Inc., Knoxville,

Fernandina Beach, FL National Arthrogryposis Foundation Inc.,

Program, Chicago, IL National Association of African

Birmingham, AL National Association for Grass Roots

TN Fast Food Inc., Tulsa, OK Father & Son Mission Housing

Corporation, Memphis, TN Fauquier County Soccer Clubs,

American Entrepreneurs, Inc., Indianapolis, IN North American Institute for International

Gainesville, VA Fawn Ridge Wildlife Refuge Inc., Cream

Communications, Washington, DC Northern Virginia Interdenominational

Mass Choir, Alexandria, VA Northland Homes and Properties Inc.,

Fostoria, OH Northland Partners in Progress, Duluth,

Learning Center, Holualoa, HI Broader Horizon Inc., Cupertino, CA Business and Employment Training

MN Northside Athletes Foundation

Corporation, Houston, TX

Foundation of Napa County Inc., Napa, CA The California Citizenship Foundation,

Inc., Halifax, NC Harrison County Drug and Alcohol

Council Inc., Clarksburg, WV Highlands Forum Inc., Highlands, NC Highview Resident Council Inc.,

Maryland Heights, MO

Sacramento, CA

Corporation, Atlanta, GA Northside Community Development

February 2, 1998 26 1998–5 I.R.B.

Northside Rotary Foundation Inc.,

Worth, TX Novice Volunteer Fire Department Inc.,

Fayetteville, AR Northwest Athletic Association, Houston,

TX Northwest Education Coalition, Houston,

Nosotros Unidos Multicultural Gang, Ft.

Paris, TX Novus Foundation Incorporated,

Mountainside, NJ Nowata’s Historical Main Street Inc.,

TX Northwest Houston Education

Foundation, Inc., Houston, TX Northwest Independent Living Group

Inc., Schaumburg, IL Northwest Nutritional Center, Houston,

Nowata, OK NTID Alumni Chapter of Greater

Houston, Houston, TX Nueva Esperanza Childrens Home Inc.,

TX Northwest Ohio Youth Soccer League,

Texas Neurosciences Foundation, San

Antonio, TX 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.

Maumee, OH Northwest Striders Track and Field,

Towson, MD Northwoods Wilderness Recovery Inc.,

Plano, TX Nursing Health Center, Cleveland, OH Salem Elementary Academic Foundation

Inc., Salem, IL Stop Up the Cracks and Let Them Learn,

Houston, TX Stretch for Greatness Inc., Richardson, TX

Houghton, MI

1998–5 I.R.B 27 February 2, 1998