Part IV. Items — Internal Revenue Bulletin 1998-48

Internal Revenue Service Center in Andover, Massachusetts. Under this voluntary program, participants have the option of: (1) submitting the entire partnership tax return (including Form 1065, U.S. Partnership Return of Income, Schedules K-1, Partner’s Share of Income, Credits, Deductions, etc., and all other related forms and schedules) on magnetic media, or (2) submitting only the Schedules K-1 on magnetic media and filing the rest of the partnership return on paper.

In Notice 97–77 (1997–52 I.R.B. 18 (December 29, 1997)), the IRS notified taxpayers that the Act’s amendment to section 6011(e)(2) is not self-executing. Rather, the IRS must first issue regulations that would require partnerships with more than 100 partners to file their partnership returns on magnetic media. Accordingly, partnerships were not required to file their 1997 partnership returns on magnetic media.

Explanation of Provisions

In General

The proposed regulations provide that partnerships with more than 100 partners must file their partnership returns on magnetic media. The determination of whether a partnership has more than 100 partners is made by counting the number of partners the partnership had over the partnership’s taxable year, regardless of whether a partner was a partner for the entire year or whether the partnership had over 100 partners on any particular day in the year.

The proposed regulations provide that a partnership return is a form in Series 1065 (including Form 1065, U.S. Partnership Return of Income, and Form 1065–B, U.S. Return of Income for Electing Large Partnerships), along with the corresponding Schedules K-1 and all other related forms and schedules that are required to be attached to the Series 1065 form.

Magnetic media means any magnetic media permitted under applicable regulations, revenue procedures, or publications. The IRS will prescribe procedures for participation in the mandatory magnetic media filing program for partnerships with more than 100 partners. In

Notice of Proposed Rulemaking and Notice of Public Hearing

Partnership Returns Required on Magnetic Media

REG–102023–98

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 requirements for filing partnership returns on magnetic media under section 6011(e) of the Internal Revenue Code. The proposed regulations reflect changes to the law made by the Taxpayer Relief Act of 1997. The proposed regulations affect partnerships with more than 100 partners. This document also provides a notice of a public hearing on these proposed regulations.

DATES: Written comments must be received by January 21, 1999. Requests to speak (with outlines of oral comments) at the public hearing scheduled for January 13, 1999, must be received by December 23, 1998.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG–102023–98), Room 5228, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG–102023–98), 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 htpp://www.irs.ustreas.gov/prod/tax_regs/ comments.html. 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, Bridget E. Finkenaur, 202-6224940; concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing, Mike Slaughter, 202-6227190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed amendments to the Regulations on Procedure and Administration (26 CFR part 301) relating to the filing of partnership returns on magnetic media under section 6011(e)(2) of the Internal Revenue Code. Section 6011(e)(2) was amended by section 1224 of the Taxpayer Relief Act of 1997, Public Law 105–34 (111 Stat. 788 (1997)) (the Act), effective for taxable years ending on or after December 31, 1997. Section 6012(e) of the Internal Revenue Service Restructuring and Reform Act of 1998, Public Law 105–206 (112 Stat. 685 (1998)), changes the effective date of section 1224 of the Act to taxable years beginning after December 31, 1997. Section 6011(e) authorizes the Secretary to prescribe regulations providing the standards for determining which returns must be filed on magnetic media or in other machine-readable form. Section 6011(e)(2)(A) provides that the regulations may not require any person to file returns on magnetic media unless the person is required to file at least 250 returns during the calendar year. However, the last sentence of section 6011(e)(2), which was added by section 1224 of the Act, provides that the Secretary must prescribe regulations requiring partnerships with more than 100 partners to file returns on magnetic media. In addition, section 6011(e)(2)(B) requires that the regulations take into account (among other relevant factors) the ability of the taxpayer to comply at reasonable cost with the requirements of the regulations.

Currently, the IRS permits certain partnerships to file their partnership returns on magnetic media (including magnetic tape, floppy disk, and electronic filing) with the

November 30, 1998 6 1998–48 I.R.B.

years ending on or after December 31, 1999. However, electing large partnerships under section 775 and partnerships using foreign addresses on their Series 1065 forms would not be required to file their partnership returns using magnetic media for taxable years ending before January 1, 2001.

Special Analyses

It is hereby certified that the regulations in this document will not have a significant economic impact on a substantial number of small entities. This certification is based on a determination that these regulations will impose no additional reporting or recordkeeping requirement and will prescribe only the method for filing partnership returns that are already required to be filed under section 6031. Accordingly, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required.

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.

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 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, January 13, 1999, at 10 a.m. in Room 2615 of the Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Due to building security procedures, visitors must enter at the 10th Street entrance, located between Constitution and Pennsylvania Avenues, NW. In addition, all visitors must present photo identification to enter the building. Because of access restrictions, visitors will not be admitted beyond the immediate entrance area more than 15 minutes before the hearing starts. For information about having your name

cluded in those procedures will be methods for registering for the program and signing the partnership return. The procedures will be contained in applicable revenue procedures or publications.

The term magnetic media generally includes magnetic tape, tape cartridge, and diskette, as well as other media (such as electronic filing). Consistent with the definition of magnetic media in other regulations, the proposed regulations define magnetic media broadly. However, under these regulations, the Service plans to require partnerships with more than 100 partners to file their partnership returns electronically. These requirements for electronic filing will be detailed in applicable revenue procedures or publications.

The IRS and Treasury Department believe that requiring affected partnerships to file electronically will enhance the quality of IRS’s customer service and will reduce the costs associated with maintaining the ability to accept forms in a variety of magnetic media. Furthermore, the IRS and Treasury Department believe that electronic filing has less burden on taxpayers than filing using other forms of magnetic media.

Electronic filing reduces the normal processing time associated with paper returns in that there is minimal hands-on processing and, therefore, there are no paperwork delays. Faster processing means faster settling of accounts and better customer service. Electronic filing also reduces errors and increases security by reducing duplicate or erroneous returns. In addition, taxpayers receive prompt acknowledgment that their returns have been received and accepted by the Internal Revenue Service. Finally, electronic filing reduces the operating costs for taxpayers whose data already resides on a computer system. Overall, electronic filing of partnership returns should increase customer satisfaction and confidence in the filing process, and be more cost effective for partnerships.

Although the IRS Service Center in Andover, Massachusetts currently accepts returns in the voluntary program on various forms of magnetic media, the systems at this facility are not year 2000 compliant and will not be in operation after 1999. Accordingly, in designing its new magnetic media systems to accept electroni

cally filed returns only, the IRS anticipates that it will no longer be able to accept returns filed in the form currently used by some partnerships in the voluntary program.

Hardship Waiver

The proposed regulations provide procedures for granting waivers of the magnetic media filing requirements for one or more years in cases of hardship. A determination of hardship will be based upon all of the facts and circumstances. Some factors that will be considered in granting waivers include the reasonableness of the incremental cost to the partnership of complying with the magnetic media filing requirements as well as temporary equipment breakdowns and destruction of magnetic media filing equipment.

Penalties

The proposed regulations provide that if a partnership has more than 100 partners and is required to file a partnership return, but fails to file its Series 1065 form, accompanying Schedules K-1, and all other related forms and schedules in the manner required, the partnership is deemed to have failed to file correct information returns for purposes of the information reporting penalty under section 6721. Penalties for failure to file correct information returns would apply for each Schedule K-1 that is not filed using permissible magnetic media.

Proposed Effective Dates

The IRS is currently focusing a significant portion of its resources on the Year 2000 date change. In addition, the IRS is developing new programs to accommodate the new Form 1065–B and partnership returns filed with a foreign address on the Series 1065 form. Further, partnerships will have to update their processes and technology to implement the electronic filing requirements.

Taking these factors into consideration, the proposed regulations would delay the effective date for filing partnership returns on magnetic media, and phase in the magnetic media filing of certain partnership returns. Thus, the proposed regulations would be generally effective for partnership returns for partnership taxable

1998–48 I.R.B. 7 November 30, 1998

ble revenue procedures or publications. The waiver will specify the type of partnership return and the period to which it applies. The waiver will also be subject to such terms and conditions regarding the method of filing as may be prescribed by the Commissioner.

(c) Failure to file. If a partnership fails to file a partnership return on magnetic media in the manner required and when required to do so by this section, the partnership will be deemed to have failed to file the return in the manner prescribed for purposes of the information return penalty under §6721. See §301.6724– 1(c)(3) for rules regarding the waiver of penalties for undue economic hardship relating to filing returns on magnetic media.

(d) Meaning of terms. The following definitions apply for purposes of this section:

(1) Magnetic media. The term mag- netic media means any magnetic media permitted under applicable regulations, revenue procedures, or publications. These generally include magnetic tape, tape cartridge, and diskette, as well as other media (such as electronic filing) specifically permitted under the applicable regulations, procedures, or publications.

(2) Partnership. The term partnership means a partnership as defined in §1.7611(a) of this chapter. (3) Partner. The term partner means a member of a partnership as defined in §7701(a)(2).

(4) Partnership return. The term part- nership return means a form in Series 1065 (including Form 1065, U.S. Partnership Return of Income, and Form 1065-B, U.S. Return of Income for Electing Large Partnerships), along with the corresponding Schedules K-1 and all other related forms and schedules that are required to be attached to the Series 1065 form.

(5) Partnerships with more than 100 partners. A partnership has more than 100 partners if, over the course of the partnership’s taxable year, the partnership had more than 100 partners, regardless of whether a partner was a partner for the entire year or whether the partnership had over 100 partners on any particular day in the year. For purposes of this paragraph (d)(5), however, only those persons having a direct interest in the partnership

placed on the building access list to attend the hearing, see the “FOR FURTHER INFORMATION CONTACT” section of this preamble.

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 comments and an outline of the topics to be discussed and the time to be devoted to each topic by December 23, 1998.

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 proposed regulations is Bridget E. Finkenaur, Office of the Assistant Chief Counsel (Income Tax and Accounting). However, other personnel from the IRS and Treasury Department participated in the development of these proposed regulations.

- - - -

Proposed Amendments to the Regulations

Accordingly, 26 CFR parts 1 and 301 are proposed to be amended as follows:

PART 1—INCOME TAXES

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

Authority: 26 U.S.C. 7805 * * * Par. 2 Section 1.6031(a) as proposed to be added at 63 F.R. 3679 is amended by adding paragraph (e)(i)(iv) read as follows:

§1.6031(a)–1 Return of partnership income.

(e) * * * (1) - * * (iv) Returns filed on magnetic media. Notwithstanding the provisions of paragraphs (e)(1)(i) and (ii) of this section, the return of a partnership that is required to be filed on magnetic media under §301.6011–3 of this chapter must be filed at the Service Center indicated in relevant Internal Revenue Service revenue proce

dures, publications, forms, or instructions.

PART 301—PROCEDURE AND ADMINISTRATION

Par. 4. The authority citation for part 301 is amended by adding an entry in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * * Section 301.6011–3 also issued under 26 U.S.C. 6011; * * *

Par. 5. Section 301.6011–3 is added to read as follows:

§301.6011–3 Required use of magnetic media for partnership returns.

(a) Partnership returns required on magnetic media. If a partnership with more than 100 partners is required to file a partnership return pursuant to §1.6031(a)–1 of this chapter, the information required by the applicable forms and schedules must be filed on magnetic media, except as otherwise provided in paragraph (b) of this section. Returns filed on magnetic media must be made in accordance with applicable revenue procedures or publications. In prescribing revenue procedures or publications, the Commissioner may determine that partnerships will be required to use any one form of magnetic media filing. For example, the Commissioner may determine that partnerships with more than 100 partners must file their partnership returns electronically. In filing its return, a partnership must register to participate in the magnetic media filing program in the manner prescribed by the Internal Revenue Service in applicable revenue procedures or publications.

(b) Waiver. The Commissioner may waive the requirements of this section if hardship is shown in a request for waiver filed in accordance with this paragraph (b). A determination of hardship will be based upon all of the facts and circumstances. One factor in determining hardship will be the reasonableness of the incremental cost to the partnership of complying with the magnetic media filing requirements. Other factors, such as equipment breakdowns or destruction of magnetic media filing equipment, also may be considered. A request for waiver must be made in accordance with applica

November 30, 1998 8 1998–48 I.R.B.

must be considered partners for purposes of determining the number of partners during the partnership’s taxable year.

(e) Examples. The following examples illustrate the provisions of paragraph (d)(5) of this section. In the examples, the partnerships utilize the calendar year, and the taxable year in question is 1999:

Example 1. Partnership P had five general partners and 90 limited partners on January 1, 1999. On March 15, 1999, 10 more limited partners acquired an interest in P. On September 30, 1999, the 10 newest partners sold their individual partnership interests to C, a corporation which was one of the original 90 limited partners. On December 31, 1999, P had the same five general partners and 90 limited partners it had on January 1, 1999. P had a total of 105 partners over the course of partnership taxable year 1999. Therefore, P must file its 1999 partnership return on magnetic media.

Example 2. Partnership Q is a general partnership that had 95 partners on January 1, 1999. On March 15, 1999, 10 partners sold their individual partnership interests to corporation D, which was not previously a partner in Q. On September 30, 1999, corporation D sold one-half of its partnership interest in equal shares to five individuals, who were not previously partners in Q. On December 31, 1999, Q had a total of 91 partners, and on no date in the year did Q have more than 100 partners. Over the course of the year, however, Q had 101 partners. Therefore, Q must file its 1999 partnership return on magnetic media.

Example 3. Partnership G is a general partnership with 100 partners on January 1, 1999. There are no new partners added to G in 1999. One of G’s partners, A, is a partnership with 53 partners. A is

one partner, regardless of the number of partners A has. Therefore, G has 100 partners and is not required to file its 1999 partnership return on magnetic media.

(f) Effective date. In general, this section applies to partnership returns for taxable years ending on or after December 31, 1999. However, electing large partnerships under §775 and partnerships using foreign addresses on their Series 1065 forms are not required to file using magnetic media for taxable years ending before January 1, 2001.

Par. 6. Section 301.6031–1 is revised to read as follows:

§301.6031–1 Return of partnership income.

For provisions relating to the requirement of returns of partnership income, see §1.6031(a)–1 of this chapter. For provisions relating to magnetic media filing of partnership returns, see §301.6011–3.

Par. 7. Section 301.6721–1 is amended by removing the third, fourth, and fifth sentences of paragraph (a)(2)(ii) and adding four sentences in their place to read as follows:

§301.6721–1 Failure to file correct information returns.

(a) * * *

(2) * * * (ii) * * * However, no penalty is imposed under paragraph (a)(1) of this section solely by reason of any failure to comply with the requirements of §6011(e)(2), except to the extent that such a failure occurs with respect to more than 250 information returns (the 250-threshold requirement) or in the case of a partnership with more than 100 partners, more than 100 information returns (the 100-threshold requirement) (collectively, the threshold requirements). Each Schedule K-1 considered in applying the 100threshold requirement will be treated as a separate information return. These threshold requirements apply separately to each type of information return required to be filed. Further, these threshold requirements apply separately to original and corrected returns. * * *

Michael P. Dolan, Deputy Commissioner of

Internal Revenue.

(Filed by the Office of the Federal Register on October 22, 1998, 8:45 a.m., and published in the issue of the Federal Register for October 23, 1998, 63 F.R. 56878)

Changes to Codes for Roth IRAs on Form 1099–R

Announcement 98–106

Purpose The purpose of this announcement is to advise payers making distributions from Roth IRAs of changes to the distributions codes on Form 1099–R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.

Background The Internal Revenue Service Restructuring and Reform Act of 1998 (Public Law 105–206) amended Internal Revenue Code section 408A, dealing with Roth IRAs. Because of these amendments, the Service has concluded that code K (Distribution from a 1998 Roth conversion IRA in the first 5 years) on the 1998 Form 1099–R may not be needed. In addition, a new code for recharacterizations is needed.

1998 Form 1099–R Code K, to be used in box 7 on the 1998 Form 1099–R, is now optional. All distributions from a Roth IRA or Roth conversion IRA can be reported using code J, Distribution from a Roth IRA in first 5 years, in box 7.

1999 Form 1099–R Code K will be eliminated on the 1999 Form 1099–R. Code J will be changed to “Distribution from a Roth IRA.” Use Code J when reporting any distribution from a Roth IRA or Roth conversion IRA. Code R, Recharacterized IRA contribution, will be added to identify a recharacterization of an IRA contribution.

1998–48 I.R.B. 9 November 30, 1998

Bethabara Shoppes Inc., Winston Salem,

NC Bethel Cultural Community

Foundations Status of Certain Organizations

Announcement 98–107

Baroda Charitable Educational Fund Inc.,

Inc., Aberdeen, NC Bethesda House Inc., Brooklyn, NY Bethlehem Inc., Bethany, OK Bettendorf Jaycees Foundation,

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: Austin Metropolitan Economic

Development Corporation, Austin, TX Autonomous Zone Foundation, Chicago,

Bristol, PA Barren River Imaginative Museum of

Science Inc., Bowling Green, KY Basic 4 Food and Nutrition Program,

Houston, TX Basic of Louisiana Inc., New Orleans,

LA Batesville Community Day Care Inc.,

Bayard, NE Baylor Ministries Inc., Moreno Valley,

CA BBB Housing Inc., Youngstown, OH BCCU Inc. Clearfield, Clearfield, UT BDC Brokerage Management

Development Center Inc., Brooklyn, NY Bethesda After-School Care Program

Batesville, IN Battered and Harassed Women and

Children Incorporated, Houston, TX Battered Womens Fund, Tyler, TX Bay Area Homes Network, Antioch, CA Bay Area Multicultural

Telecommunications Association, San Francisco, CA Bay City Youth Football Association,

Bettendorf, IA Better Quality of Life Inc., Landover,

Organization Inc., Cleveland, OH Beverly Park Playground Project,

Livonia, MI Bi-State Illinois and Iowa Chapter of the

MD Between Us Sisters Starting to Operate

Proficiently, Stockton, CA BEU Community Housing Development

Bay City, TX Bay Minette Rotary Village Inc., Bay

Minette, AL Bayards Chimney Rock Museum,

Southern Christian, Rock Island, IL Bicycle Transportation Alliance of

Portland Inc., Portland, ME Big Brother and Big Sister Inc.,

Bismarck, ND Big Brother Big Sister of the Midlands,

IL Avery County Agricultural and

Santee, SC Big Brothers and Big Sisters of N.

Central Arkansas Inc., Conway, AR Big Brothers Big Sisters Foundation of

Manatee County Florida Inc., Bradenton, FL Big Lake Elementary School Parent

Horticultural Fair Inc., Newland, NC Awakening Inc., Milwaukee, WI Awareness Communication Incorporated,

Corporation, Baltimore, MD Be True To Yourself Foundation, Seattle,

Inc., Ellon, MT Beck Hilderbrand Historic Preservation

Commission Inc., Bixby, OK Becky Bos Memorial Scholarship Fund,

WA Beaverhead Community Food Pantry

Teacher Student Organization, Elk River, MN Big Sky Sculpture Council, Billings, MT Big World Ventures Inc., Albuquerque,

Williamsport, PA B & J Community Care Home,

Columbia, SC B A I R, South San Francisco, CA B A Y Theatre Co. Inc., Birmingham,

East Jordan, MI Beeches Crabtree Foundation Inc.,

AL BABC Inc., Denver, CO Babe Ruth League of Brockton,

NM Bill Cobb Ministries Inc., Bethany, OK Billerica Youth Soccer Association,

Brockton, MA Babe Ruth League of Somerville Inc.,

Somerville, MA Backcountry Volunteers Inc., N. Scituate,

Guthrie, OK Believe Inc., Fort Worth, TX Bells for Books Inc., Boise, ID Bellwether Community Loan Fund Inc.,

Toledo, OH Belmont Dare Inc., Belmont, MA Beloved Ministries, Corpus Christi, TX Beltway Lady Cougars Inc., Upper

MA Backstage Inc., Decatur, AL Backstage Productions Inc., Atlanta, GA Bainbridge Educational Foundation Inc.,

Billerica, MA Binghamton Outreach Center Inc.,

Binghamton, NY Bios the Western New York Lead

Institute, Buffalo, NY Birmingham Association of Black

Journalists Inc., Birmingham, AL Birth Parents Support, Cincinnati, OH Birthright of Greater Meriden Inc.,

Meriden, CT Black Family Foundation Inc., Brooklyn,

NY Black Healthcare Initiative Coalition Inc.,

Princeton, NJ Bakersfield Alliance Soccer Club,

Bakersfield, CA Balkan Rape Trauma Response Coalition,

Chicago, IL Ballet Theatre North, Northbrook, IL Baltimore Softball Club, Baltimore, MD Banyan House Inc., Sarasota, FL Barnell Communications Inc., Miami, FL

Marlboro, MD Ben Radar Youth Foundation, Lewes, DE Bergen Girls Recreational Softball

League Inc., Montvale, NJ Berkshire School of Creative Speech Inc.,

Great Barriugton, MA Berry Basket Quilters Inc., Medford, NJ Best Care Help Services, Humble, TX Beta Beta Educational Foundation Inc.,

Indianapolis, IN Beth Dudley Scholarship Fund, Marietta,

New York, NY Black United Federation of Texas

Charities Inc., Houston, TX

Rockford, IL Black Sheep Theater Company Inc.,

November 30, 1998 10 1998–48 I.R.B.

Black Women Community Organization

Brazos Valley Regional Advisory

Council, College Station, TX Bread of Life Christian Mission, Plant

Inc., Kansas City, KS Blackhawk Central City Railway &

City, FL Breast Cancer Coalition of NJ Inc.,

Builders for Peace Inc., Washington, DC Building Bridges Inc., Monticello, MN Bunker Softball Association, Bunker, MO Burlington Symphony Orchestra,

Mining Museum LTD., Englewood, CO Blacks United to Save Our Youths,

Trenton, NJ Brenham-Washington County Swim Club

Burlington, NJ Business-Higher Education Federation,

Washington, DC Butler County Men Mission Inc.,

Cleveland, OH Blanchard School Parent Advisory

Council Inc., Uxbridge, MA Blink Inc., Visalia, CA Bloomfield Academy Inc., Bloomfield,

Inc., Brenham, TX Bridge and Gate Productions Inc.,

Eldorado, KS By His Spirit Ministries, Titusville, FL

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.

CT Bludance Theatre Inc., Kent, CT Blue Veil Ministry Inc., Tucson, AZ Blue World Conservancy LTS., Haddam,

Sunnyvale, CA Bridge to Victory Inc., Ft. Lauderdale, FL Bridgeport Cultural Trust Inc.,

NY Bridgewater Partnership Inc.,

Bridgeport, CT Bridges to Community Inc., Chappaqua,

CT Bluff Swamp Wildlife Refuge &

Botanical Garden Inc., Prairieville, LA Blunt Park Athletic Assoc. of Springfield

Bridgewater, MA Bridgework for a Better Tomorrow

Association, Raleigh, NC Briggs-Delaine Cultural Center,

Massachusetts, Springfield, MA BNS Family Solutions, Kalamazoo, MI Bob Fry Memorial Golf Tournament,

Walcott, IA Bob Smith Ministries Inc., Boca Raton,

FL Boise Basin Interpretive Association Inc.,

Summerton, SC Bristow Education Foundation Inc.,

Bristow, OK British American Drama Academy,

San Francisco, CA Broadhurst Charity Foundation,

Manchester, MO Bronx Second Chance Project Inc.,

Bronx, NY Brooks Brothers Christian Alliance

Idaho City, ID Book-Link Foundation Inc., Tupelo, MS Books Building a Childs Future, Irving,

TX Books for Life, Pittsford, VT Bookworms Resource Center,

Philadelphia, PA Boone County Court Appointed Special

Incorporated, Tulsa, OK Brookside Housing Services Corp., South

Plainfield, NJ Broome County Sheriffs Foundation,

Vestal, NY Brotherhood Association of America

Advocate Inc., Florence, KY Bosque County Tourism Council

Incorporated, Meridian, TX Boulder County Business Hall of Fame

Development Inc., Oklahoma City, OK Broussards Nutrition Program, Houston,

TX Brownsville Area Redstone Field Light

Committee, Brownsville, PA Brownsville Boxing Club, Brownsville,

TX Brownsville Community Neighborhood

Inc., Boulder, CO Boulder-Dushanbe Teahouse Trust,

Boulder, CO Boulder Valley Hockey Foundation,

Boulder, CO Boulderiety Inc., Boulder, CO Bound for Success, Dallas, TX Boyd Adult Care Group Homes

Incorporated, Toledo, OH Boys & Girls Club of Warren Inc.,

Action Center No. 1, Brooklyn, NY Bruce Williams Ministries Inc.,

Bryan, TX Buckeye Cheerleading Coaches

Warren, MA Boys and Girls Club of Chico California

Inc., Chico, CA Boys and Girls Club of Wayne and Pike

Columbia, SC Bryan Police Activities League Inc.,

Association Inc., Canton, OH Bucks County Christian Action Council,

Doylestown, PA Buffalo Coalition for Common Ground,

Counties Inc., Hamlin, PA Brad Smith Music Ministries,

Buffalo, NY Buffalo Public Housing Resident Council

Brentwood, TN Brazos 2020 Vision Inc., Bryan, TX Brazos Summer Explorers Inc., Bryan,

Corp., Buffalo, NY Build America Inc., Overland Park, KS

Travel and Tour Activities of Exempt Organizations; Hearing

Announcement 98–108

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of public hearing on proposed rulemaking.

SUMMARY: This document contains a notice of public hearing on proposed regulations that clarify when the travel and tour activities of tax exempt organizations are substantially related to the purposes for which exemption was granted.

DATES: The public hearing is being held on Wednesday, February 10, 1999, at 10 a.m. The IRS must receive outlines of topics to be discussed at the hearing by January 20, 1999.

ADDRESSES: The public hearing is being held in room 2615, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Due to building security procedures, visitors must enter at the 10th Street entrance, located between Constitution and Pennsylvania Avenues, NW. In addition, all visitors must present photo identification to enter the building.

1998–48 I.R.B. 11 November 30, 1998

Mail outlines to: CC:DOM:CORP:R (REG–121268–97), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Hand deliver outlines Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG– 121268–97), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Submit outlines electronically via the Internet by selecting the “Tax Regs” option on the IRS Home Page, or by submitting them directly to the IRS Internet site at http://www.irs.ustreas.gov/prod/tax_regs/ comments.html.

FOR FURTHER INFORMATION CONTACT: Concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hear

ing LaNita VanDyke, (202) 622-7190 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is proposed regulations (REG–121268–97) that were published in the Federal Regis- ter on April 23, 1998 (63 F.R. 20156

[1998–20 I.R.B. 12]).

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

Persons who have submitted written comments and wish to present oral comments at the hearing, must submit an outline of the topics to be discussed and the amount of time to be devoted to each topic (signed original and eight (8) copies) by January 20, 1999.

A period of 10 minutes is allotted to each person for presenting oral comments.

After the deadline for receiving outlines has passed, the IRS will prepare an agenda containing the schedule of speakers. Copies of the agenda will be made available, free of charge, at the hearing.

Because of access restrictions, the IRS will not admit visitors beyond the immediate entrance area more than 15 minutes before the hearing starts. For information about having your name placed on the building access list to attend the hearing, see the “FOR FURTHER INFORMATION CONTACT” section of this document.

Cynthia E. Grigsby, Chief, Regulations Unit, Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on November 9, 1998, 8:45 a.m., and published in the issue of the Federal Register for November 10, 1998, 63 F.R. 63016)

November 30, 1998 12 1998–48 I.R.B.