Internal Revenue Bulletin 2000-37

Official source: Internal Revenue Bulletin (https://www.irs.gov/pub/irs-irbs/irb00-37.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

Rev. Rul. 2000–47, page 264. LIFO; price indexes; department stores. The July 2000 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 2000.

Notice 2000–48, page 265. Deductions; travel expenses; per diem rates. Taxpayers are informed that the U.S. General Services Administration (GSA) intends to issue new per diem rates for travel by federal employees effective October 1, 2000. Rules are set forth regarding the use of the new GSA rates by taxpayers to substantiate the amount of certain travel expenses under Rev. Proc. 2000–9 (2000–2 I.R.B. 280).

Notice 2000–46, page 265. Weighted average interest rate update. The weighted average interest rate for August 2000 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section 412(c)(7) of the Code are set forth.

Announcement 2000–75, page 268. A list is given of organizations now classified as private foundations.

Notice 2000–49, page 266. This notice clarifies the availability of tabular schedules as alternative reporting formats on Schedule P (Form 1120-FSC), Transfer Price or Commission, filed by foreign sales corporations for 1999 and prior taxable years.

Rev. Proc. 2000–36, page 267. Low-income housing tax credit. This procedure publishes the unused housing credit carryover amounts allocated to qualified states under section 42(h)(3)(D) of the Code for calendar year 2000.

Finding Lists begin on page ii. Announcement of Disbarments and Suspensions begins on page 270.

Department of the Treasury Internal Revenue Service

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities

The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are consolidated semiannually into Cumulative Bulletins, which are sold on a single-copy basis.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published.

Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements.

Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and proce

and by applying the tax law with integrity and fairness to all.

dures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions, and Subpart B, Legislation and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement).

Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

The first Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the first Bulletin of the succeeding semiannual period, respectively.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

September 11, 2000 2000–37 I.R.B.

Section 472.—Last-in, First-out Inventories

26 CFR 1.472–1: Last-in, first-out inventories.

LIFO; price indexes; department stores. The July 2000 Bureau of Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in, first-out inventory methods for valuing inventories for tax years ended on, or with reference to, July 31, 2000.

Rev. Rul. 2000–47

The following Department Store Inventory Price Indexes for July 2000 were issued by the Bureau of Labor Statistics. The indexes are accepted by the Internal Revenue Service, under § 1.472–1(k) of the Income Tax Regulations and Rev. Proc. 86–46, 1986–2 C.B. 739, for appropriate application to inventories of department stores employing the retail inventory and last-in, firstout inventory methods for tax years ended on, or with reference to, July 31, 2000.

The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of departments, (b) three special combinations of the major groups — soft goods, durable goods, and miscellaneous goods, and (c) a store total, which covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Percent Change Groups July July from July 1999 1999 2000 to July 2000 ¹

1. Piece Goods - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 551.4 519.6 -5.8
2. Domestics and Draperies - - - - - - - - - - - - - - - - - - - - - 632.6 630.3 -0.4
3. Women’s and Children’s Shoes - - - - - - - - - - - - - - - - - 635.4 613.6 -3.4
4. Men’s Shoes - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 874.8 896.4 2.5
5. Infants’ Wear - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 615.1 629.5 2.3
6. Women’s Underwear - - - - - - - - - - - - - - - - - - - - - - - - 560.8 561.4 0.1
7. Women’s Hosiery - - - - - - - - - - - - - - - - - - - - - - - - - - 321.3 335.1 4.3
8. Women’s and Girls’Accessories - - - - - - - - - - - - - - - - 532.8 528.2 -0.9
9. Women’s Outerwear and Girls’ Wear - - - - - - - - - - - - - 367.0 364.0 -0.8
10. Men’s Clothing - - - - - - - - - - - - - - - - - - - - - - - - - - - 616.1 602.8 -2.2
11. Men’s Furnishings - - - - - - - - - - - - - - - - - - - - - - - - - 618.8 608.8 -1.6
12. Boys’ Clothing and Furnishings - - - - - - - - - - - - - - - - 470.9 478.6 1.6
13. Jewelry - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 962.1 945.5 -1.7
14. Notions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 794.3 780.8 -1.7
15. Toilet Articles and Drugs - - - - - - - - - - - - - - - - - - - - - 967.1 965.7 -0.1
16. Furniture and Bedding - - - - - - - - - - - - - - - - - - - - - - 685.0 689.2 0.6
17. Floor Coverings - - - - - - - - - - - - - - - - - - - - - - - - - - - 602.2 609.8 1.3
18. Housewares - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 792.6 783.5 -1.1
19. Major Appliances - - - - - - - - - - - - - - - - - - - - - - - - - - 235.0 232.9 -0.9
20. Radio and Television - - - - - - - - - - - - - - - - - - - - - - - 65.7 59.1 -10.0
21. Recreation and Education ² - - - - - - - - - - - - - - - - - - - - 98.1 92.6 -5.6
22. Home Improvements ² - - - - - - - - - - - - - - - - - - - - - - - 128.1 127.9 -0.2
23. Auto Accessories ² - - - - - - - - - - - - - - - - - - - - - - - - - 106.5 106.5 0.0 Groups 1 - 15: Soft Goods - - - - - - - - - - - - - - - - - - - - - - - - - 588.1 583.3 -0.8 Groups 16 - 20: Durable Goods - - - - - - - - - - - - - - - - - - - - - - 449.3 439.9 -2.1 Groups 21 - 23: Misc. Goods ² - - - - - - - - - - - - - - - - - - - - - - - 103.7 100.0 -3.6 Store Total ³ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 536.7 529.2 -1.4

1 Absence of a minus sign before the percentage change in this column signifies a price increase. 2 Indexes on a January 1986=100 base. 3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue ruling is Alan J. Tomsic of the Office of Associate Chief Counsel (Income Tax and Ac

counting). For further information regarding this revenue ruling, contact Mr. Tomsic at (202) 622-4970 (not a toll-free call).

September 11, 2000 264 2000–37 I.R.B.

The average yield on the 30-year Treasury Constant Maturities for July 2000 is 5.85 percent. The following rates were determined for the plan years beginning in the month shown below.

Weighted Average Interest Rate Update

Notice 2000–46

Notice 88–73 provides guidelines for determining the weighted average interest rate and the resulting permissible range of

interest rates used to calculate current liability for the purpose of the full funding limitation of § 412(c)(7) of the Internal Revenue Code as amended by the Omnibus Budget Reconciliation Act of 1987 and as further amended by the Uruguay Round Agreements Act, Pub. L. 103–465 (GATT).

90% to 105% 90% to 110% Weighted Permissible Permissible Month Year Average Range Range

August 2000 5.98 5.38 to 6.28 5.38 to 6.57

Drafting Information

The principal author of this notice is Todd Newman of the Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this notice, call the Employee Plans Actuarial hotline, (202) 622-6076 between 2:30 and 3:30 p.m. Eastern time (not a toll-free number). Mr. Newman’s number is (202) 622-8458 (also not a toll-free number).

Optional Per Diem Rates for Employees, Self-employed Individuals, and Other Taxpayers Used in Computing Deductible Costs

Notice 2000–48

This notice informs taxpayers that the U.S. General Services Administration will change the per diem rates for travel by federal employees as of October 1, 2000. These rates (“GSA rates”) are incorporated by reference in Rev. Proc. 2000–9, 2000–2 I.R.B. 280, which allows their use in substantiating the amount of certain travel expenses, and are set forth in full in Publication 1542. However, as provided below, taxpayers may either use the new GSA rates or choose to continue to treat the current GSA rates as the federal per diem rates for travel expenses paid or incurred through the end of calendar year 2000. Also, comments are requested concerning application of the October 1 annual GSA rate changes in future years.

GSA PER DIEM RATES

Rev. Proc. 2000–9 generally provides that, for travel within the continental United States (“CONUS”), the federal meal and incidental expense (“M&IE”) rates and the federal per diem rates published by GSA may be used to substantiate certain travel expenses. GSA has recently announced its intention to update these rates annually effective October 1, rather than January 1, to match the federal government’s fiscal year. The GSA rates will be available on the GSA website at www.policyworks.gov/perdiem. Accordingly, for purposes of Rev. Proc. 2000–9, the updated GSA rates will apply as of October 1, 2000, to determine the amount of the CONUS travel expenses paid or incurred on or after that date, unless a taxpayer uses the transition rule described below. Consequently, the April 2000 revision of Pub. 1542, Per Diem Rates (For Travel Within the Continental United States), which reprints the GSA rates made effective January 1, 2000, will not be effective for travel on or after October 1, 2000, unless the election described below is in effect.

TRANSITION RULE

To ease the transition to the GSA rates that will be updated as described above, the Internal Revenue Service will allow taxpayers, in applying Rev. Proc. 2000–9, to use the GSA rates in effect for the first 9 months of 2000 (“current rates”) for expenses of CONUS travel while away from home that are paid or incurred before January 1, 2001, in lieu of the updated GSA rates. A taxpayer must consistently use either the current GSA rates or the updated

GSA rates for the period of October 1, 2000, through December 31, 2000. During this period, a taxpayer may not use the current GSA rates for some travel and the updated GSA rates for other travel.

SPECIAL RATES PROVIDED IN REV. PROC. 2000–9

Rev. Proc. 2000–9 provides two optional methods that may be used in lieu of the use of the GSA rates to substantiate the amount of certain travel expenses. Section 5 provides a simplified High-Low Substantiation Method for employers to substantiate the amount of employees’ lodging, meal, and incidental expenses, and section 4.04 provides special M&IE rates for the transportation industry as an alternative to the M&IE rates published by GSA. Rev. Proc. 2000–9 provides that the use of these optional substantiation methods must be consistent throughout the 2000 calendar year. When the rates for these optional methods (“special rates”) are updated in the next per diem revenue procedure (expected to be published in September 2000), the Service will permit taxpayers using the optional methods for travel in calendar year 2000 to use either the updated special rates, or the current special rates, for the last 3 months of the 2000 calendar year. However, such taxpayers may not use the GSA rates instead of the special rates for that period.

REQUEST FOR COMMENTS

The Treasury Department and the Service invite comments on this notice and on future per diem revenue procedures. In particular, comments are requested on whether, in future years, the High-Low

2000–37 I.R.B. 265 September 11, 2000

transaction basis is a tabular schedule in spreadsheet or similar format. The type of tabular schedule represented by this checkbox does not aggregate transactions but rather reports as a separate line item all Schedule P information for each transaction.

For taxable years beginning before January 1, 1999, item B of Schedule P permitted an aggregate reporting format that differed in some respects from the aggregate reporting format permitted on the 1999 Schedule P. Unlike the 1999 Schedule P, the former versions of Schedule P permitted an aggregate Schedule P to be filed not only for transaction-by-transaction reporting but also for groups of transactions consisting of products or product lines using the FSC administrative pricing rules. Also, unlike the 1999 Schedule P, the former versions of Schedule P did not expressly prescribe any form of tabular schedule as an alternative reporting format. See generally Notice 99–23, 1999– 20 I.R.B. 73. During the filing season for 1999 FSC income tax returns, several taxpayers and practitioners have asked the Service to clarify whether FSCs filing 1999 Schedule P and its predecessors may use a tabular schedule under the aggregate reporting format, reporting each aggregate of transactions (or, as permitted for taxable years beginning before January 1, 1999, each aggregate of groups) as a line item.

SECTION II. CLARIFICATIONS TO SCHEDULE P AND INSTRUCTIONS

The Service will accept a tabular schedule in spreadsheet or similar format as the equivalent of aggregate Schedules P for taxable years beginning before January 1, 2000, notwithstanding the absence of a specific checkbox for such a tabular schedule, provided that (1) the tabular schedule accompanies a partially completed Schedule P indicating the FSC’s name and employer identification number (EIN); (2) the accompanying Schedule P shows a check mark in the appropriate checkbox for aggregation in item B (box 1a on 1999 Schedule P, or box 3 on prior years’Schedules P); (3) the tabular schedule reports all information as if a separate Schedule P were filed for each permitted aggregate of transactions or groups of transactions; (4) the tabular schedule is formatted in columns that correspond to item A, item C, and each line

Substantiation Method and the special transportation industry rates should be updated to match the October 1 effective date of the GSA rates or should continue to apply on a calendar-year basis. Also, comments are requested on whether, in future years, the revenue procedure should continue to make the substantiation rules effective as the rates are announced by GSA or should maintain consistent rates on a calendar-year basis by disregarding GSA’s annual update (for employers other than federal employers) until the beginning of the next calendar year. Written comments should be submitted by October 27, 2000. An original and eight copies of written comments should be sent to:

Internal Revenue Service Attn: CC:MSP:R (Notice 2000–48)

Room 5228 (IT&A:Br2) P.O. Box 7604 Ben Franklin Station Washington, DC 20044.

or hand delivered between the hours of 8 a.m. and 5 p.m. to:

Courier’s Desk Internal Revenue Service Attn: CC:MSP:R (Notice 2000–48)

Room 5228 (IT&A:Br2) 1111 Constitution Avenue, NW Washington, D.C.

Alternatively, comments may be submitted electronically at the following address:

Joel.S.Rutstein@m1.irscounsel.treas.gov.

DRAFTING INFORMATION

The principal author of this notice is Edwin B. Cleverdon of the Office of Associate Chief Counsel (Income Tax and Accounting). For further information regarding this notice contact Mr. Cleverdon at (202) 622-4920 (not a toll-free call).

Clarification of Schedule P (Form 1120-FSC)

Notice 2000–49

This notice clarifies the availability of tabular schedules as alternative reporting formats on Schedule P of Form 1120-FSC, filed by foreign sales corporations, for 1999 and prior taxable years.

SECTION I. BACKGROUND

Foreign sales corporations (FSCs) use Schedule P, “Transfer Price or Commission,” of Form 1120-FSC, “U.S. Income Tax Return of a Foreign Sales Corporation,” to compute the transfer price to charge a FSC or the commission to pay to a FSC under the FSC administrative pricing rules of section 925 of the Internal Revenue Code. The transfer price or commission allocates foreign trading gross receipts from the sale of export property and certain services between a FSC and its related supplier.

Under the administrative pricing rules, each transaction generating foreign trading gross receipts is reportable on Schedule P. Under Temp. Treas. Reg. § 1.925 (a)–1T(c)(8), a FSC and its related supplier may elect to group transactions on a product or product line basis and must make the election for each group on Schedule P. Item B of Schedule P provides checkboxes for a FSC to indicate whether the Schedule P is filed on a “Transaction-by-transaction” basis or with respect to a “Group of transactions.”

In the 1999 version of Schedule P (“1999 Schedule P”), applicable to calendar year 1999 and other taxable years beginning during 1999, item B also permits FSCs that choose to report on a transaction-by-transaction basis to check either of two subsidiary checkboxes representing alternative reporting formats for filing Schedule P. If the FSC chooses an “aggregate” format, the instructions to Schedule P specify that the FSC may combine on a single Schedule P all transactions in a product or product line to which the same administrative pricing method is applied. Where not all aggregated transactions fall within the same product or product line, or where the FSC uses more than one pricing method, the instructions require the FSC to file additional Schedules P, so that a separate Schedule P is filed for each combination of product or product line and pricing method, i.e., for each aggregate. To be eligible for the aggregate reporting format, the FSC and its related supplier must maintain a supporting schedule containing all information that would be reported if a separate Schedule P were filed for each transaction.

The other alternative reporting format for which the 1999 Schedule P provides a checkbox for reporting on a transaction-by

September 11, 2000 266 2000–37 I.R.B.

item in Parts I, II and III of Schedule P; (5) each column is totaled; and (6) each page contains a page number and the FSC’s name and EIN.

FSCs filing aggregate tabular schedules in accordance with this notice should enter “FILED UNDER NOTICE 2000–49” across the top of the tabular schedule and the accompanying Schedule P.

SECTION III. 2000 SCHEDULE P

The Service intends to incorporate these clarifications into the version of Schedule P and corresponding instructions to be issued for taxable years beginning during 2000 (“2000 Schedule P”). In the 2000 Schedule P, the Service expects to refine the “Aggregate” checkbox for transactionby-transaction reporting by providing two checkboxes in its place, one for aggregation on Schedules P and one for aggregation on a tabular schedule as an alternative reporting format. The existing checkbox for a tabular schedule of transactions without aggregation (generally used by FSCs engaging in a small number of transactions) will remain as a third alternative reporting format for transaction-by-transaction reporting. Unchanged will be the checkbox for grouping of transactions, where aggregation is not permitted and FSCs are generally required to use a tabular schedule as the reporting format.

SECTION IV. DRAFTING INFORMATION

The principal author of this notice is Douglas Giblen of the Office of Associate Chief Counsel (International). For further information regarding this notice, contact Mr. Giblen at (202) 874-1490 (not a tollfree call).

26 CFR 601.105: Examination of returns and claims for refund, credit, or abatement; determination of correct tax liability. (Also Part I, §§ 42; 1.42-14.)

Rev. Proc. 2000–36

This revenue procedure publishes the amounts of unused housing credit carryovers allocated to qualified states under § 42(h)(3)(D) of the Internal Revenue Code for calendar year 2000.

Rev. Proc. 92–31, 1992–1 C.B. 775, provides guidance to state housing credit agencies of qualified states on the procedure for requesting an allocation of unused housing credit carryovers under § 42(h)(3)(D). Section 4.06 of Rev. Proc. 92–31 provides that the Internal Revenue Service will publish in the Internal Revenue Bulletin the amount of unused housing credit carryovers allocated to qualified states for a calendar year from a national pool of unused credit authority (the National Pool). This revenue procedure publishes these amounts for calendar year 2000.

The unused housing credit carryover amount allocated from the National Pool by the Secretary to each qualified state for calendar year 2000 is as follows:

Qualified State Amount Allocated

Alabama $ 21,268 Alaska 3,015 Arizona 23,256 California 161,319 Colorado 19,741 Delaware 3,668 Florida 73,547 Georgia 37,906 Idaho 6,092 Illinois 59,030 Indiana 28,924 Iowa 13,966

Qualified State Amount Allocated

Kansas 12,917 Maryland 25,171 Massachusetts 30,055 Michigan 48,008 Minnesota 23,243 Mississippi 13,475 Missouri 26,615 Nebraska 8,109 Nevada 8,806 New Hampshire 5,846 New Jersey 39,635 New York 88,564 North Carolina 37,237 Ohio 54,787 Oregon 16,140 Pennsylvania 58,376 Puerto Rico 18,930 Rhode Island 4,822 Tennessee 26,689 Texas 97,556 Utah 10,366 Vermont 2,890 Virginia 33,451 West Virginia 8,794 Wisconsin 25,554

This revenue procedure is effective for allocations of housing credit dollar amounts attributable to the National Pool component of a qualified state’s housing credit ceiling for calendar year 2000.

DRAFTING INFORMATION

The principal author of this revenue procedure is Christopher J. Wilson of the Office of Associate Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue procedure, contact Mr. Wilson at (202) 622-3040 (not a toll-free call).

2000–37 I.R.B. 267 September 11, 2000

Eye of the Tiger Booster Club,

Mesquite, TX For all People There is Hope, Fresno, CA Foundation for Louisiana Drug Free Use,

Baton Rouge, LA Foundation II of the American College of

Foundations Status of Certain Organizations

Announcement 2000–75

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:

Aids-Free Foundation, Bay St. Louis, MS Algiers Community Improvement

Caddo & Bossier Zoological Association,

Inc., Shreveport, LA Cambridge Chinese Choral Society, Inc.,

Boston, MA Camp Lake County, Inc., Lakeview, OR Caribbean American Steel Pan Education

Ten Mile, TN Childrens Bread, Columbus, OH Christian Homeless Rehabilitation

Tucson, AZ Faith, Inc., Phoenix, AZ Fall Classic, Inc., Lancaster, PA Feeding All Children Ministries,

Center, Brooklyn, MA Cecils Historic District, Inc., Frederick,

MD Center for Hearing Impaired

Technologies, Cleveland, OH Center for the Advancement for the

Physically and Mentally Challenged, Saddle Brook, NJ Center for Victim Services,

Trial Lawyers, Inc., Irvine, CA Franklin County Step Ahead Council,

Georgetown, TX Central East Austin Caregivers of Austin

Inc., Brookville, IN Free, Inc., Chicago, IL Friends of Belmont High School Soccer,

Belmont, MA Friends of Lindsey Steele Foundation,

Inc., Oakland, ME Friends of the Border Foudation,

Texas, Austin, TX Ceramic Arts Foundation, Inc.,

New York, NY Chateau Genesis, Sedona, AZ Cheeta, Inc./Coalition Hoosiers

San Antonio, TX Friends of the Guymon Public Library,

Encouraging, Etc., Indianapolis, IN Cherokee Christian Childrens Ranch,

Inc., Guymon, OK Future Youth, Inc., Rochester, NY General Medical Foundation,

Richmond, VA Global Partnership for Education,

Association, New Orleans, LA American Community Assistance

Hale, MI Hartwell Sober Living, Inc.,

Santa Ana, CA Healing Environments, Palo Alto, CA Innercity Management Works

League, Hannibal, MO American Friends of Shavei Golah

Center, Inc., Damascus, MD College Station Rotary Club Charities,

Jerusalem College for Russian Jews, Brooklyn, NY American Gift Foundation, Inc.,

Gaithersburg, MD Appalachian Wilderness Program, Inc.,

College Station, TX Colorado Open Systems Consortium,

Associates, Bangor, ME Jewish Legacy Foundation, New York,

Highlands Ranch, CO Columbus Music Awards, Inc.,

Incorporated, Houston, TX International Association for Support of

Privatization, Washington, DC Jewish Community Endowment

NY Junior Auxiliary of Caruthersville

Doraville, GA Association of Women Psychiatrists,

New York, NY Ateres Chaim, Inc., Monsey, NY Auburn Youth Hockey Association, Inc.,

Columbus, OH Combined Alcohol & Drug Prevention

Treatment, Inc., Collinsville, AL Come Alive Ministry, Akron, OH Conflict Resolution & Mediation, Inc.,

East Orange, NJ Cor Jesu Hermitage Foundation, Inc.,

New York, NY Cops, Cons and Kids, Inc.,

Missouri, Inc., Caruthersville, MO Junior Auxiliary of Jasper Alabama, Inc.,

Jasper, AL Just Another Meal Jam, Inc.,

Auburn, ME Auxiliary of Twin Lakes Center,

Burlington, NC Baltimore Bicentennial Celebration, Inc.,

Louisville, KY Cranston Crime Stoppers, Inc.,

North Charleston, NC Justus Foundation, Inc., Lorenzo, TX Kentucky Natural Lands Trust, Inc.,

Berea, KY Keren Aharon, Inc., Brooklyn, NY Kick Karate, Lockport, IL Kids at the Crossroads, Inc., Austin, TX Kindred Spirits Foundation, Inc.,

Baltimore, MD Barrington Horse Show, Inc.,

Barrington Hills, IL Baytown Citizen Police Academy Alumni

Cranston, RI Craven County Future, New Bern, NC Daniel D. Tompkins Masonic Historical

Society, Staten Island, NY Dwelling Place, Inc., Bethel, CT East Lansing Pinecrest Neighborhood

Association, Inc., Barry, IL Beechwood Center of New Jersey, Inc.,

Association, Lansing, MI Edinburg Housing Opportunity

Langhorne, PA Berks Regional Training Institute,

New York, NY Kirkwood Childrens Chorale, Inc.,

Kirkwood, MO Koyoty Transit Corporation,

West Lawn, PA Big Horn Lenape Fed, Martinsville, OH Boston United Soccer, Inc., Boston, MA

Corporation, Edinburg, TX Empowerment Zone Ecumenical Council

EZEC, Detroit, MI ESP of Jamaica Plain, E. Boston, MA

Burkesville, KY

September 11, 2000 268 2000–37 I.R.B.

L. Francis Griffin Foundation, Inc.,

Union Colony Estates, Greeley, CO United States Amateur Boxing of

Farmville, VA Lamp Lighters Christian Radio of Pierre,

Photography Preservation Society,

St. Louis, MO Planes of Fames East, Inc.,

Minneapolis, MN Plant a Tree Help a Kid Foundation, Inc.,

Inc., Pierre, SD Land of Lincoln Conservation, Inc.,

Pontoon Beach, Inc., Pontoon Beach, IL Valley Arts Society, Puyallup, WA Verrazano Babe Ruth League,

Gilberts, IL LEAP, Inc., Carson, CA Lemoyne-Owen College Community

Development Corp., Memphis, TN Life Management Services, Inc.,

Kansas City, MO Play Pyramid, Lady Lake, FL Public Improvements Corporation,

Staten Island, NY Village Center of Poppleton,

Baltimore, MD Violence Intervention Prevention

Coalition, Fort Worth, TX VSL Association, San Marino, CA Wisconsin State Equity Corporation,

Pittsfield, MA Linda’s Food Cupboard, Bradley, ME Long Island Seaport & Ecocenter, Inc.,

Greenwood Villiage, CO Recreation-Academic Program, Inc.,

South Orange, NJ Reggie Dabbs Ministries, Inc.,

Fort Myers, FL Reno Ballet, Inc., Carson City, NV Rockwood Care Center, Inc.,

Madison, WI Wisdom Bridge Theatre Foundation,

Port Jefferson, NY Marietta Chamber Orchestra,

Vincent, OH Merrill Township Firefighters

Association, Bitely, MI Miracle Victory Ministries, Inc.,

Palm Beach Gardens, FL Rudolf Walther Foundation, Inc.,

Chicago, IL Womad Foundation of North America,

Inc., New York, NY Womens Resource Center of El Paso,

Inc., El Paso, TX Young Organizers Uniting Teenage

East Orange, NJ Montgomery Junior Tennis Association,

Norcross, GA Saginaw Area Episcopal Urban Cluster,

Saginaw, MI Scholarship Resource Finders and

Counseling Services, Inc., Lauderhill, FL Second Thursday Network, Inc.,

Harmony, Inc., Brooklyn, NY Zichron Yitzchok, Inc.,

Inc., Montgomery, AL National Ceramic Center Foundation,

Inc., Boulder, CO Native American Ministries,

Bedford Hills, NY Zion Hill Foundation of Rochester, Inc.,

Galesburg, IL New Paltz Rescue Squad, Inc.,

New York, NY Sigma Omega Foundation, Chicago, IL Slick Boys Youth Foundation, Inc.,

New Paltz, NY Nix Foundation, Inc.,

Washington, LA No Power to Drugs Foundation, Inc.,

Chicago, IL Society for Ultrastructural Pathology,

Inc., Birmingham, AL Spirit of Life Dance Theater, Chicago, IL St. James Community Choir,

Rochester, NY 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.

PMBK Pines, FL Ohel Avrohom Elimelech, Inc.,

Brooklyn, NY Oklahoma Junior Chianina,

Anadarko, OK Paradise Village Children’s Home, Inc.,

Washington, DC Take Heart, Inc., Denison, TX Texas Logistics Education Foundation,

Dallas, TX Tony Brock Tennis Foundation, Inc.,

Cincinnati, OH Transportation Research Institute,

Bastrop, LA Parkville Fine Arts Association, Inc.,

New Orleans, LA

Parkville, MO

2000–37 I.R.B. 269 September 11, 2000

Under 31 Code of Federal Regulations, Part 10, an attorney, certified public accountant, enrolled agent or enrolled actuary, in order to avoid the institution or conclusion of a proceeding for his disbarment or suspension from practice before the Internal Revenue Service, may offer his consent to suspension from such practice. The Director of Practice, in his discretion, may suspend an attorney, certified public accountant, enrolled agent or enrolled actuary in accordance with the consent offered.

Attorneys, certified public accountants, enrolled agents and enrolled actuaries are prohibited in any Internal Revenue Ser

vice matter from directly or indirectly employing, accepting assistance from, being employed by or sharing fees with, any practitioner disbarred or suspended from practice before the Internal Revenue Service.

To enable attorneys, certified public accountants, enrolled agents and enrolled actuaries to identify practitioners under consent suspension from practice before the Internal Revenue Service, the Director of Practice will announce in the Internal Revenue Bulletin the names and addresses of practitioners who have been suspended from such practice, their designation as attorney, certified public ac

countant, enrolled agent or enrolled actuary, and date or period of suspension. This announcement will appear in the weekly Bulletin at the earliest practicable date after such action and will continue to appear in the weekly Bulletins for five successive weeks or for as many weeks as is practicable for each attorney, certified public accountant, enrolled agent or enrolled actuary so suspended and will be consolidated and published in the Cumulative Bulletin.

The following individuals have been placed under consent suspension from practice before the Internal Revenue Service:

Date of Name Address Designation Suspension

Stoppenhagen, Larry Ft. Wayne, IN CPA April 14, 2000

to April 13, 2001

Chon, James N. Hollywood, CA CPA May 22, 2000

to May 21, 2003

Bleyer, Stephen A. Bala Cynwyd, PA CPA June 26, 2000

to December 25, 2000

Knutson, Owen Ouray, CO CPA July 3, 2000

to January 2, 2003

Silverman, Richard E. Fayetteville, NY CPA August 1, 2000

to March 31, 2004

Holt, Jeffrey Little Rock, AR Enrolled October 1, 2000 Agent to March 31, 2003

Barbagallo, Joseph Newton, PA CPA October 15, 2000

to October 14, 2004

September 11, 2000 270 2000–37 I.R.B.

Under Section 330, Title 31 of the United States Code, the Secretary of the Treasury, after due notice and opportunity for hearing, is authorized to suspend or disbar from practice before the Internal Revenue Service any person who has violated the rules and regulations governing the recognition of attorneys, certified public accountants, enrolled agents or enrolled actuaries to practice before the Internal Revenue Service.

Attorneys, certified public accountants, enrolled agents, and enrolled actuaries are prohibited in any Internal Revenue Service matter from directly or indirectly em

ploying, accepting assistance from, being employed by or sharing fees with, any practitioner disbarred or under suspension from practice before the Internal Revenue Service.

To enable attorneys, certified public accountants, enrolled agents and enrolled actuaries to identify such disbarred or suspended practitioners, the Director of Practice will announce in the Internal Revenue Bulletin the names and addresses of practitioners who have been suspended from such practice, their designation as attorney, certified public accountant, enrolled agent or enrolled actuary, and the date of

disbarment or period of suspension. This announcement will appear in the weekly Bulletin for five successive weeks or as long as it is practicable for each attorney, certified public accountant, enrolled agent or enrolled actuary so suspended or disbarred and will be consolidated and published in the Cumulative Bulletin.

After due notice and opportunity for hearing before an administrative law judge, the following individual has been disbarred from further practice before the Internal Revenue Service:

Name Address Designation Effective Date

Luebben, William Hot Springs, AR CPA February 11, 2000

2000–37 I.R.B. 271 September 11, 2000

Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect:

Amplified describes a situation where no change is being made in a prior published position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below).

Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confusion. It is not used where a position in a prior ruling is being changed.

Distinguished describes a situation where a ruling mentions a previously published ruling and points out an essential difference between them.

Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it ap

The following abbreviations in current use and for- merly used will appear in material published in the Bulletin.

A —Individual. Acq. —Acquiescence. B —Individual. BE —Beneficiary. BK —Bank. B.T.A. —Board of Tax Appeals. C —Individual. C.B. —Cumulative Bulletin. CFR —Code of Federal Regulations. CI —City. COOP —Cooperative. Ct.D. —Court Decision. CY —County. D —Decedent. DC —Dummy Corporation. DE —Donee. Del. Order —Delegation Order. DISC —Domestic International Sales Corporation. DR —Donor. E —Estate. EE —Employee.

plies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in law or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted.

Revoked describes situations where the position in the previously published ruling is not correct and the correct position is being stated in the new ruling.

Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a period of time in separate rulings. If the

E.O. —Executive Order. ER —Employer. ERISA —Employee Retirement Income Security Act. EX —Executor. F —Fiduciary.

FC —Foreign Country. FICA —Federal Insurance Contributions Act. FISC —Foreign International Sales Company. FPH —Foreign Personal Holding Company. F.R. —Federal Register. FUTA —Federal Unemployment Tax Act. FX —Foreign Corporation. G.C.M. —Chief Counsel’s Memorandum. GE —Grantee. GP —General Partner. GR —Grantor. IC —Insurance Company. I.R.B. —Internal Revenue Bulletin. LE —Lessee. LP —Limited Partner. LR —Lessor. M —Minor. Nonacq. —Nonacquiescence. O —Organization. P —Parent Corporation.

new ruling does more than restate the substance of a prior ruling, a combination of terms is used. For example, modified and superseded describes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case the previously published ruling is first modified and then, as modified, is superseded.

Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series.

Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study.

PHC —Personal Holding Company. PO —Possession of the U.S. PR —Partner. PRS —Partnership. PTE —Prohibited Transaction Exemption.

Pub. L. —Public Law. REIT —Real Estate Investment Trust. Rev. Proc. —Revenue Procedure. Rev. Rul. —Revenue Ruling. S —Subsidiary. S.P.R. —Statements of Procedural Rules. Stat. —Statutes at Large. T —Target Corporation. T.C. —Tax Court. T.D. —Treasury Decision. TFE —Transferee. TFR —Transferor. T.I.R. —Technical Information Release. TP —Taxpayer. TR —Trust. TT —Trustee. U.S.C. —United States Code. X —Corporation. Y —Corporation. Z —Corporation.

September 11, 2000 i 2000–37 I.R.B.

Numerical Finding List ¹

Bulletins 2000–27 through 2000–36

Announcements: 2000–57, 2000–28 I.R.B. 115 2000–58, 2000–30 I.R.B. 135 2000–59, 2000–29 I.R.B. 120 2000–60, 2000–31 I.R.B. 149 2000–61, 2000–30 I.R.B. 136 2000–62, 2000–30 I.R.B. 137 2000–63, 2000–31 I.R.B. 149 2000–64, 2000–31 I.R.B. 149 2000–65, 2000–31 I.R.B. 150 2000–66, 2000–32 I.R.B. 160 2000–67, 2000–32 I.R.B. 160 2000–68, 2000–32 I.R.B. 161 2000–69, 2000–33 I.R.B. 183 2000–70, 2000–34 I.R.B. 204 2000–72, 2000–35 I.R.B. 226 2000–73, 2000–35 I.R.B. 230 2000–74, 2000–35 I.R.B. 230 2000–76, 2000–36 I.R.B. 260 2000–77, 2000–36 I.R.B. 260

Court Decisions: 2068, 2000–28 I.R.B. 109

Notices: 2000–33, 2000–27 I.R.B. 97 2000–34, 2000–33 I.R.B. 172 2000–35, 2000–29 I.R.B. 118 2000–36, 2000–33 I.R.B. 173 2000–37, 2000–29 I.R.B. 118 2000–38, 2000–33 I.R.B. 174 2000–39, 2000–30 I.R.B. 132 2000–40, 2000–30 I.R.B. 134 2000–41, 2000–33 I.R.B. 177 2000–43, 2000–35 I.R.B. 209 2000–44, 2000–36 I.R.B. 255 2000–45, 2000–36 I.R.B. 256

Proposed Regulations: REG–209038–89, 2000–34 I.R.B. 191 REG–105316–98, 2000–27 I.R.B. 98 REG–110311–98, 2000–36 I.R.B. 258 REG–116495–99, 2000–33 I.R.B. 179 REG–103735–00, 2000–36 I.R.B. 258 REG–103736–00, 2000–36 I.R.B. 258 REG–108522–00, 2000–34 I.R.B. 187

Railroad Retirement Quarterly Rate: 2000–28, I.R.B. 112 2000–29, I.R.B. 117

Revenue Procedures: 2000–28, 2000–27 I.R.B. 60 2000–29, 2000–28 I.R.B. 113 2000–30, 2000–28 I.R.B. 113 2000–31, 2000–31 I.R.B. 146 2000–32, 2000–33 I.R.B. 172 2000–33, 2000–36 I.R.B. 257 2000–34, 2000–34 I.R.B. 186 2000–35, 2000–35 I.R.B. 211

1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2000–1 through 2000–26 is in Internal Revenue Bulletin 2000–27, dated July 3, 2000.

Revenue Rulings: 2000–32, 2000–27 I.R.B. 1 2000–33, 2000–31 I.R.B. 142 2000–34, 2000–29 I.R.B. 116 2000–35, 2000–31 I.R.B. 138 2000–36, 2000–31 I.R.B. 140 2000–37, 2000–32 I.R.B. 156 2000–38, 2000–32 I.R.B. 157 2000–39, 2000–34 I.R.B. 184 2000–40, 2000–35 I.R.B. 208 2000–41, 2000–36 I.R.B. 248

Treasury Decisions: 8886, 2000–27 I.R.B. 3 8888, 2000–27 I.R.B. 3 8889, 2000–30 I.R.B. 124 8890, 2000–30 I.R.B. 122 8891, 2000–32 I.R.B. 152 8892, 2000–32 I.R.B. 158 8893, 2000–31 I.R.B. 143 8894, 2000–33 I.R.B. 162 8896, 2000–36 I.R.B. 249 8897, 2000–36 I.R.B. 234

2000–37 I.R.B. ii September 11, 2000

Finding List of Current Actions on Previously Published Items ¹

Bulletins 2000–27 through 2000–36

Notices:

87–76 Obsoleted by T.D. 8897, 2000–36 I.R.B. 234

88–24 Obsoleted by T.D. 8897, 2000–36 I.R.B. 234

88–86 Obsoleted by T.D. 8897 (section V), 2000–36 I.R.B. 234

Proposed Regulations:

FI–42–90 Withdrawn by Announcement 2000–63, 2000–31 I.R.B. 149

IA–38–93 Withdrawn by Announcement 2000–68, 2000–32 I.R.B. 161

REG–107644–98 Corrected by Announcement 2000–66, 2000–32 I.R.B. 160

Revenue Procedures:

88–23 Superseded by Rev. Proc. 2000–35, 2000–35 I.R.B. 211

98–50 Modified and superseded by Rev. Proc. 2000–31, 2000–31 I.R.B. 146

98–51 Modified and superseded by Rev. Proc. 2000–31, 2000–31 I.R.B. 146

99–18 Modified by Rev. Proc. 2000–29, 2000–28 I.R.B. 113

99–34 Superseded by Rev. Proc. 2000–28, 2000–27 I.R.B. 60

Treasury Decisions:

8873 Corrected by Announcement 2000–74, 2000–35 I.R.B. 230

8883 Corrected by Announcement 2000–57, 2000–28 I.R.B. 115

8884 Corrected by Announcement 2000–73, 2000–35 I.R.B. 230

1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2000–1 through 2000–26 is in Internal Revenue Bulletin 2000–27, dated July 3, 2000.

September 11, 2000 iii 2000–37 I.R.B.

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of Documents when their subscriptions must be renewed.

The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents.

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