Part IV. Items of General Interest

U.S.C. 7805, the proposed rulemaking that was published in the Federal Regis- ter on Monday, January 13, 1992 (57 F.R. 1232) is withdrawn.

Robert E. Wenzel, Deputy Commissioner

of Internal Revenue.

(Filed by the Office of the Federal Register on July 11, 2000, 8:45 a.m., and published in the issue of the Federal Register for July 12, 2000, 65 F.R. 42900)

Supplemental Information on Treasury Bills for Publication 1212

Announcement 2000–64

Banks, brokers, and other middlemen who report discount on Treasury bill redemptions on Form 1099–INT must use the owner’s purchase price, where available, to determine the amount of discount to report. This information can usually be obtained from the owner’s or middleman’s records. However, if the owner’s purchase price is not available from existing records, the middleman must report the discount as if the holder had purchased the Treasury bill at its original issue price. In this case, the middleman must use as the original issue price the noncompetitive issue price for the longest-maturity Treasury bill maturing on that date.

For Treasury bill redemptions when the owner’s purchase price cannot be determined, the following list gives the noncompetitive issue prices and corresponding amounts of discount to be reported on Form 1099–INT for Treasury bills maturing May through July 2000. This list, which should also help middlemen determine any amounts subject to backup withholding, supplements the list that appears in 1999 edition of Publication 1212, List of Original Issue Discount Instruments.

Automatic Enrollment Features in Prototype Section 401(k) Plans

Announcement 2000–60

The Service would like to bring to the attention of prototype plan sponsors and employers that currently maintain, or are considering adopting, § 401(k) plans the availability of automatic enrollment features in pre-approved § 401(k) plans. In general, § 401(k) plans that have automatic enrollment features reportedly have had significantly higher employee participation rates than § 401(k) plans without such features.

Under an automatic enrollment feature in an employer’s § 401(k) plan, a participant’s compensation is automatically reduced by a specified percentage, and that amount is contributed as an elective contribution on the participant’s behalf to the plan, unless the participant affirmatively elects not to have his or her compensation reduced or to have it reduced by a different amount. See Rev. Rul. 2000–8, 2000–7 I.R.B. 617 (February 14, 2000). The Service “pre-approves” certain taxqualified retirement plans, including § 401(k) plans, under the Service’s prototype plan program, which is set forth in Rev. Proc. 2000–20, 2000–6 I.R.B. 553. Prototype plans are submitted by sponsors to the Service for review for compliance with applicable laws and procedures. Sponsors, who may be financial institutions or others, offer their Service-approved prototype plans to employers to adopt for the benefit of employees.

Bad Debt Reserves of Thrift Institutions

Announcement 2000–63

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of proposed regulations.

SUMMARY: This document withdraws proposed regulations amending the income tax regulations. This action is taken to remove from the IRS’ inventory of regulations projects certain proposed regulations that will not be published in final form because under a subsequent amendment the underlying statute does not apply to taxable years beginning after December 31, 1995.

DATES: These proposed regulations are withdrawn July 12, 2000.

FOR FURTHER INFORMATION CONTACT: Craig Wojay, of the Office of Assistant Chief Counsel, Financial Institutions and Products, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC 20224. Telephone (202) 622-3920, (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document withdraws certain proposed regulations previously published in the Federal Register (FI–42–90, 1992–1 C.B. 1072 [57 F.R. 1232]) by the IRS. These proposed regulations, §§1.593–12, 1.593–13, and 1.593–14, are being withdrawn because under a subsequent amendment the underlying statute, section 593, does not apply subsections (a), (b), (c), and (d) to taxable years beginning after December 31, 1995.

Drafting Information

The principal author of this withdrawal notice is Craig Wojay, Office of the Assistant Chief Counsel (Financial Institutions and Products) within the Office of the Chief Counsel, IRS. However, other personnel from the IRS and the Treasury Department participated in developing the withdrawal notice.

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Withdrawal of Proposed Amendments to the Regulations

Accordingly, under the authority of 26

2000–31 I.R.B. 149 July 31, 2000

Short-Term United States Treasury Bills Issued at a Discount and Maturing August 2000-December 2000

Dollar Amount of Noncompetitive OID to be reported CUSIP Maturity Issue Issue Price (% of (per $1,000 of Number Date Date Principal Amount) Maturity Value)

• 52-week bill

tween the hours of 8 a.m. and 5 p.m. to: Regulations Unit CC (REG–117162–99), 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.gov/tax_regs/ regslist.html.

FOR FURTHER INFORMATION CONTACT: Concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing, contact Treena Garrett, (202) 6227180 (not a toll-free number).

Tax Treatment of Cafeteria Plans; Public Hearing

Announcement 2000–65

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 relating to the tax treatment of cafeteria plans.

DATES: The public hearing is being held on August 17, 2000, at 10 a.m. The IRS

must receive outlines of the topics to be discussed at the hearing by August 3, 2000.

ADDRESSES: The public hearing is being held in Room 4718, Internal Revenue Building, 1111 Constitution Avenue, NW., Washington, DC. Due to building security procedures, visitors must enter at the 10 ^th

Street entrance, located between Constitution and Pennsylvania Avenues, NW. In addition, all visitors must present photo identification to enter the building.

Mail outlines to: Regulations Unit CC (REG–117162–99), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Hand deliver outlines Monday through Friday be

July 31, 2000 150 2000–31 I.R.B.

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is the notice of proposed regulations (REG–117162–99, 2000–15 I.R.B. 871) that was published in the Federal Register on March 23, 2000 (65 F.R. 15587). 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 August 3, 2000. 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, Office of Special Counsel, (Modernization and Strategic Planning).

2000–31 I.R.B. 151 July 31, 2000