Part IV. Items — Internal Revenue Bulletin 1999-16

Cumulative Bulletin Continued With a New Format

Announcement 99–36

Last year the Service solicited comments on a proposal to discontinue publication of the cumulative bulletin (CB). The proposal was printed in the Federal Register dated October 2, 1998. Based on responses from taxpayers, tax practitioners, and government agencies, the Service has decided to continue publishing the CB.

Beginning with CB 1998–1, the CB will contain the same information but will have a new format.

Reprints of the weekly Internal Revenue Bulletins (IRBs) issued during the year will now be bound together to form the CB. Volume 1 will contain the first 26 issues of the IRB (1998–27 to 1998–52). Previously, the CB was created by consolidating Parts I-IV of the IRBs into Parts IIV of the CB.
The CB will now include a new cumulative list titled “List of Rulings and Decisions Under the Internal Revenue Code of 1986.” This list will be organized by code section and will identify, by citation only, the revenue rulings, revenue procedures, notices, and announcements that impact each code section. It will contain the page numbers in the CB. It can be used in the same manner as the “Numerical Finding List,” which will now provide both the page number in the IRB and the page number in the CB.
The cumulative “Finding List of Current Actions on Previously Published Items” and the “Index” will also identify both the IRB and CB page numbers. There will be no change to the manner in which the CB is cited.
Announcements that are published in the IRBs will be included in the CB. Previous CBs did not include announcements.
A list of “Actions Relating to Decisions of the Tax Court” and a list of “Disbarments and Suspensions” will remain as components of the CB.
Public laws relating to taxes will continue to be provided in volume 3 of the CB. If additional volumes are needed to published public laws, the CBs will be labeled consecutively as volume 4, 5, etc.

Announcement 99–40

On July 1, 1998, temporary regulations T.D. 8774, 1998–30 I.R.B. 5, were published in the Federal Register (63 F.R. 35799) relating to the kerosene excise tax. Recently, a group of taxpayers has advised the Internal Revenue Service that the taxpayers were unaware that they needed to be registered by the IRS for purposes of this tax. To address the problem, the final kerosene tax regulations will provide the following rules: (1) The period during which persons are treated as registered under the transitional registration rule, which currently is scheduled to expire on April 1, 1999, will instead expire on July 1, 1999; (2) Airlines, other aircraft operators, and fixed base operators that store kerosene in a terminal, and kerosene terminal operators will be treated as registered for purposes of the kerosene tax under the transitional registration rule. Further, the IRS will provide an expedited kerosene tax registration procedure.

Under the expedited procedure, persons that apply for registration with their IRS district office by May 14, 1999, will be given either a conditional Letter of Registration or a denial by June 30, 1999. To apply, an applicant files Form 637, Application for Registration (For Certain Excise Tax Activities), under activity S. An “S” registration is in addition to any “H” or “Y” registration an applicant may have received. Form 637 is filed with the IRS district director for the district where the applicant has its principal place of business. An applicant may obtain the address of its district director by calling 1800-829-1040. Applicants who do not have a principal place of business in the United States file Form 637 with the IRS, Office of Assistant Commissioner (International), 950 L’Enfant Plaza South, SW, Attention: OP:IN:D:C:E, Washington, DC 20024. The principal author of this announcement is Frank Boland of the Office of Assistant Chief Counsel (Passthroughs and Special Industries) . For further information regarding this announcement contact Frank Boland at (202) 622-3130 (not a toll-free call).

Announcement 99–41

Federal Insurance Contributions Act (FICA) Taxation of Amounts Under Employee Benefit Plans; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains corrections to Treasury Decision 8814, 1999–9 I.R.B. 4, which was published in the Federal Register on Friday, January 29, 1999 (64 F.R. 4542) that provides guidance as to when amounts deferred under or paid from a nonqualified deferred compensation plan are taken into account as wages for purposes of the employment taxes imposed by the Federal Insurance Contributions Act (FICA).

DATES: This correction is effective January 29, 1999.

FOR FURTHER INFORMATION CONTACT: Janine Cook, Linda E. Alsalihi, or Margaret Owens, (202) 622-6040 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections are under section 3121 of the Internal Revenue Code.

Need for Correction

As published, T.D. 8814 contains errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 8814), which was the subject of FR Doc. 99–1663, is corrected as follows:

On page 4542, column 1, in the regulation heading, the language “RIN 1545–AT27” is corrected to read “RIN 1545–AF97”.

§31.3121(v)(2)–1 [Corrected]

On page 4550, column 3, §31.3121(v)(2)–1(b)(5), paragraph (i) of

April 19, 1999 10 1999–16 I.R.B.

Example 10, line 9, the language “employee’s designated beneficiary in a single” is corrected to read “employee’s designated beneficiary in a single lump”.

On page 4551, column 1, §31.3121(v)(2)–1(b)(5), paragraph (ii) of Example 10, line 3 from the bottom of the paragraph, the language “payable in the event of the Employee E’s” is corrected to read “payable in the event of Employee E’s”.
On page 4551, column 1, §31.3121(v)(2)–1(b)(5), paragraph (ii) of Example 11, line 4 from the bottom of the paragraph, the language “E under the plan during the Employee E’s” is corrected to read “E under the plan during Employee E’s”.
On page 4566, column 3, §31.3121(v)(2)–1(g)(5), paragraph (i) of Example 8, line 14, the language “Based Employer R’s estimate that Employee” is corrected to read “Based on Employer R’s estimate that Employee”.
On page 4566, column 3, §31.3121(v)(2)–1(g)(5), paragraph (i) of Example 8, line 5 from the bottom of the paragraph, the language “which Employee R has a legally binding right” is corrected to read “which Employee F has a legally binding right”.

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

(Filed by the Office of the Federal Register on March 31, 1999, 8:45 a.m., and published in the issue of the Federal Register for April 1, 1999, 64 F.R. 15687)

Announcement 99–42

Certain Transfers of Stock or Securities by U.S. Persons to Foreign Corporations and Related Reporting Requirements; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains corrections to Treasury Decision 8770, 1998–27 I.R.B. 4, which was published in the Federal Register on Friday, June 19, 1998 (63 F.R. 33550) relating to certain

transfers of stock or securities by U.S. persons to foreign corporations pursuant to the corporate organization and reorganization provisions of the Internal Revenue Code, and the reporting requirements related to such transfers.

DATES: These corrections are effective July 20, 1998.

FOR FURTHER INFORMATION CONTACT: Philip L. Tretiak, (202) 622-3860 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections are under sections 367 and 6038B of the Internal Revenue Code.

Need for Correction

As published, T.D. 8770 contains errors which may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 8770), which was the subject of FR Doc. 98–15454, is corrected as follows:

On page 33555, column 2, in the preamble under the paragraph heading “Effective Dates”, line 19, the language “ a United States shareholder but does” is corrected to read “ a United States shareholder but does not”.

§1.367(a)–3 [Corrected]

On page 33556, column 1, §1.367(a)–3(a), lines 22 through 24, the language “a U.S. person exchanges stock of one foreign corporation for stock of another foreign corporation in a reorganization” is corrected to read “a U.S. person exchanges stock of a foreign corporation in a reorganization”.
On page 33556, column 1, §1.367(a)–3(a), line 27, the language “domestic corporation for stock of a” is corrected to read “domestic or foreign corporation for stock of a”.
On page 33559, column 1, §1.367(a)–3(d)(3), paragraph (ii) of Ex- ample 6, line 10, the language “§1.367(a)8(g)(3)(i) (which includes the” is cor

rected to read §1.367(a)–8(g)(3) (which includes the”.

§1.367(b)–4 [Corrected]

On page 33568, column 1, §1.367(b)–4(b)(5)(i), line 4, the language “transaction described in paragraph (b)(1)” is corrected to read “transaction described in paragraph (a)”.
On page 33568, column 2, §1.367(b)–4(b)(5)(ii), paragraph (ii) of the Example, line 2, the language “an exchange described in paragraph (b) of” is corrected to read “an exchange described in paragraph (a) of”.

§1.6038B–1 [Corrected]

On page 33569, column 1, § 1.6038B–1(b)(2)(i) introductory text, line 4, the language “in section 6038(a)(1)(A) will be” is corrected to read “in section 6038B(a)(1)(A) will be”.

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

(Filed by the Office of the Federal Register on March 31, 1999, 8:45 a.m., and published in the issue of the Federal Register for April 1, 1999, 64 F.R. 15687)

Announcement 99–43

Notice of Certain Transfers to Foreign Partnerships and Foreign Corporations; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains corrections to final income tax regulations T.D. 8817, 1999–8 I.R.B. 51, that were published in the Federal Register on Friday, February 5, 1999 (64 F.R. 5713) relating to certain transfers to foreign partnerships and corporations by U.S. persons. DATES: This correction is effective February 5, 1999.

FOR FURTHER INFORMATION CONTACT: Eliana Dolgoff (202)622-3860 (not a toll-free number).

1999–16 I.R.B. 11 April 19, 1999

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of this correction are under section 6038B of the Internal Revenue Code.

Need for Correction

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

Correction of Publication

Accordingly, the publication of the final regulations (T.D. 8817), that were the subject of FR Doc. 99–2798 is corrected as follows:

§1.6038B–1 [Corrected]

On page 5715, column 1, §1.6038B– 1(b)(1)(i), lines 4 through 7, the language “paragraph (b)(2) of this section, or cash, which is subject to special rules contained in paragraph (b)(3) of this section, any U.S. person that makes a” is corrected to read ”paragraph (b)(2) of this section, any U.S. person that makes a”. In §1.6038B– 1(b)(1)(i), the last line, the language “Property to a Foreign Corporation.” is corrected to read “Property to a Foreign Corporation. For special rules regarding cash transfers made in tax years beginning after February 5, 1999, see paragraphs (b)(3) and (g) of this section.”.
On page 5715, column 1, §1.6038B– 1(b)(3) introductory text, line 2, the language “foreign corporation must report the” is corrected to read “foreign corporation in a transfer described in section 6038B(a)(1)(A) must report the”.
On page 5715, column 2, §1.6038B– 1(c), line 6, the language “section 6038B(a)(1)(A) (including cash” is corrected to read “section 6038B(a)(1)(A) (including cash transferred in taxable years beginning after February 5, 1999,”.
On page 5715, column 2, §1.6038B– 1(g), lines 3 through 8, the language “July 20, 1998, except that the first sentence of paragraph (b)(1)(i), paragraph (b)(3), and the first sentence of paragraph (c) apply to transfers occurring in taxable years beginning after February 5, 1999. See §1.6038B–” is corrected to read “July 20, 1998, except that transfers of cash made in taxable years beginning on or before

February 5, 1999 are not required to be reported under section 6038B. See §1.6038B–“.

§1.6038B–2 [Corrected]

On page 5717, column 2, §1.6038B– 2(j)(1)(ii), line 1, the language, “Filing a Form 926 with the” is corrected to read “Filing a Form 926 (modified to reflect that the transferee is a partnership, not a corporation) with the”.

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

(Filed by the Office of the Federal Register on March 31, 1999, 8:45 a.m., and published in the issue of the Federal Register for April 1, 1999, 64 F.R. 15686)

Announcement 99–44

OMB Control Numbers Assigned Pursuant to the Paperwork Reduction Act; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

SUMMARY: This document contains corrections to final regulations T.D. 8011, 1985–1 C.B. 397, which were published in the Federal Register on Thursday, March 14, 1985 (50 F.R. 10221) relating to the displaying of OMB control numbers on this agency’s regulations that solicit or obtain information from the public.

DATES: This correction is effective November 12, 1996.

FOR FURTHER INFORMATION CONTACT: Marshall Feiring, (202) 622-3940, (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections displays this agency’s control numbers and implemented requirements of regulations promulgated by the Office of Management and Budget pursuant to the Paperwork Reduction Act of 1980.

Need for Correction

As published, final regulations (T.D. 8011) contain errors which may prove to be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 602

Reporting and recordkeeping requirements.

Correcting Amendment to Regulations

Accordingly, 26 CFR part 602 is corrected by making the following correcting amendments:

PART 602 — OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

Paragraph 1. The authority citation for part 602 continues to read as follows:

Authority: 26 U.S.C. 7805.

§602.101 [Corrected]

Par. 2. In §602.101, paragraph (a), second sentence, the language “(together with 26 CFR 601.9000)” is removed.

Par. 3. In §602.101, paragraph (b) is removed and paragraph (c) is redesignated as paragraph (b).

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

(Filed by the Office of the Federal Register on March 31, 1999, 8:45 a.m., and published in the issue of the Federal Register for April 1, 1999, 64 F.R. 15688)

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

Announcement 99–45

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 pre

April 19, 1999 12 1999–16 I.R.B.

cluded 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 April 19, 1999, and would end on the date the court first determines that the organization is not de

scribed 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, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.

Abraham Lincoln Opportunity

Foundations, Pine Mountain, GA

Proposed Form 1042–S, Foreign Person’s U.S. Source Income Subject to Withholding; Correction

Announcement 99–46

Announcement 99–24, 1999–14 I.R.B. 12, contained copies of proposed Form

1042–S that were poorly reproduced. We are providing more legible copies of Form 1042–S in this announcement. As a result, we have extended the date for receiving comments for that form to May 19, 1999. Please send your comments to Chairman, Tax Forms Coordinating Committee, Internal Revenue Service, OP:FS:FP, Room 5577, 1111 Constitution Avenue, NW, Washington, DC 20224. Alternatively, you may e-mail your comments to tfpmail@publish.no. irs.gov.

1999–16 I.R.B. 13 April 19, 1999

April 19, 1999 14 1999–16 I.R.B.

1999–16 I.R.B. 15 April 19, 1999

April 19, 1999 16 1999–16 I.R.B.

1999–16 I.R.B. 17 April 19, 1999

April 19, 1999 18 1999–16 I.R.B.

1999–16 I.R.B. 19 April 19, 1999

April 19, 1999 20 1999–16 I.R.B.