Part IV. Items — Internal Revenue Bulletin 2001-18

Application of Section 904 to Income Subject to Separate Limitations and Section 864(e) Affiliated Group Expense Allocation and Apportionment Rules; Correction

Announcement 2001–41

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Corrections to final and temporary regulations.

SUMMARY: This document contains corrections to final and temporary regulations (T.D. 8916, 2001–4 I.R.B. 360) that were published in the Federal Register on Wednesday, January 3, 2001 (66 FR 268), relating to the section 864(e)(5) and (6) rules on affiliated group interest and other expense allocation and apportionment and to the section 904(d) foreign tax credit limitation.

DATES: These corrections are effective January 3, 2001.

FOR FURTHER INFORMATION CONTACT: Bethany A. Ingwalson (202) 6223850 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final and temporary regulations that are the subject of these corrections are under section 864 and 904 of the Internal Revenue Code.

Need for Correction

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

Correction of Publication

Accordingly, the publication of the final and temporary regulations (T.D. 8916), that were the subject of FR Doc. 00–32477, is corrected as follows:

On page 268, column 3, in the preamble in the caption “DATES:” under the “Applicability Dates: ” paragraph heading, first full paragraph, line 6 and 7, the language “9(h)(5)(i) and (ii), §1.861– 11(d)(8), and §1.861–14(d)(1), (d)(2)(i), and (d)(2)(ii)” is corrected to read “9(h)(5)(iii),

§1.861–11(d)(2)(iv) and (d)(7), and §1.861–14(d)(1) and (d)(2)(iii)”.

§1.904–4 [Corrected]

On page 276, column 3, §1.904–4, paragraph (g)(3)(ii)(C), line 6, the language “determination whether a distribution” is corrected to read “determination of whether a distribution”.

Cynthia E. Grigsby, Chief, Regulations Unit, Office of Special Counsel (Modernization and Strategic Planning).

(Filed by the Office of the Federal Register on March 22, 2001, 8:45 a.m., and published in the issue of the Federal Register for March 23, 2001, 66 F.R. 16126)

Application of Section 904 to Income Subject to Separate Limitations and Computation of Deemed-Paid Credit Under Section 902; Correction

Announcement 2001–42

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Corrections to notice of proposed rulemaking and notice of public hearing.

SUMMARY: This document contains corrections to a notice of proposed rulemaking and notice of public hearing (REG–104683–00, 2001–4 I.R.B. 407) that was published in the Federal Regis- ter on Wednesday, January 3, 2001 (66 FR 319), relating to the application of section 904 to income subject to separate limitations and computation of deemedpaid credit under section 902.

FOR FURTHER INFORMATION CONTACT: Bethany A. Ingwalson (202) 6223850 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking and notice of public hearing that is the subject of these corrections is under sections 902 and 904 of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed rulemaking and notice of public hearing (REG–104683–00) contain errors that may be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking and notice of public hearing (REG–104683–00), which is the subject of FR Doc. 00–32478, is corrected as follows:

On page 319, column 2, in the preamble under the caption “ADDRESSES:”, line 9, the language “(REG–106409–00), Courier’s Desk,” is corrected to read “(REG–104683–00), Courier’s Desk,”.

§1.904(b)–1 [Corrected]

On page 331, column 3, §1.904 (b)–1(f), paragraph (i) of Example 1, line 4 from the bottom of the paragraph, the language “would have been subject to tax a rate of 20” is corrected to read “would have been subject to tax at a rate of 20”.

Cynthia E. Grigsby, Chief, Regulations Unit, Office of Special Counsel (Modernization and Strategic Planning).

(Filed by the Office of the Federal Register on March 20, 2001, 8:45 a.m., and published in the issue of the Federal Register for March 21, 2001, 66 F.R. 15820)

Tax Treatment of Cafeteria Plans; Correction

Announcement 2001–43

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Corrections to final regulations.

SUMMARY: This document contains corrections to final regulations (T.D. 8921, 2001–7 I.R.B. 532) that were published in the Federal Register on Wednesday, January 10, 2001 (66 FR

2001–18 I.R.B. 1147 April 30, 2001

FOR FURTHER INFORMATION CONTACT: Anne O’Connell Devereaux (202) 622-3850 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking (REG–110374–00), that is the subject of this correction is under section 6205 of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed rulemaking (REG–110374–00) contains an error that may prove to be misleading and is in need of clarification.

Correction of Publication

Accordingly, the publication of the notice of proposed rulemaking which was the subject of FR Doc. 01–273, is corrected as follows:

On page 3958, column 2, in the preamble under the paragraph heading “Proposed Effective Date”, the first paragraph, line 7, the language “January 12, 2001. No inference is” is corrected to read “January 17, 2001. No inference is”.

Cynthia E. Grigsby, Chief, Regulations Unit, Office of Special Counsel (Modernization and Strategic Planning).

(Filed by the Office of the Federal Register on March 2, 2001, 8:45 a.m., and published in the issue of the Federal Register for March 5, 2001, 66 F.R. 13275)

Foundations Status of Certain Organizations

Announcement 2001–45

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.

1837), relating to section 125 cafeteria plans.

DATES: This correction is effective January 10, 2001.

FOR FURTHER INFORMATION CONTACT: Christine L. Keller (202) 6226080 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections are under section 125 of the Internal Revenue Code.

Need for Correction

As published, final regulations (T.D. 8921, 2001–7 I.R.B. 532) 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. 8921), which were the subject of FR Doc. 01–258, is corrected as follows:

On page 1838, column 1, in the preamble under the paragraph heading 1. Changes in the March 2000 Final Regulations, line 3 of the first paragraph, the language “final regulations issued earlier this year” is corrected to read “final regulations issued in March 2000”.
On page 1838, column 3, under the paragraph heading 2. Changes From the March 2000 Proposed Regulations, line 4, the language “earlier this year, but include various” is corrected to read “in March 2000, but include various”.
On page 1840, column 1, amendatory instruction Par. 2. is corrected by adding a new instruction “3a.” following item 3 to read as follows:

3a. Revising paragraph (c)(3)(ii).

§1.125–4 [Corrected]

On page 1840, column 2, §1.125–4 is corrected by removing the 5 asterisks following paragraph (c)(1)(ii).
On page 1840, column 2, §1.125–4 is corrected by removing the 5 asterisks following paragraph (c)(3)(i) and adding the text of revised paragraph (c)(3)(ii) in their place to read as follows:

§1.125–4 Permitted election changes.

(c) * * * (3) * * * (ii) Application to other qualified bene- fits . An election change satisfies the requirements of this paragraph (c)(3) with respect to other qualified benefits if the election change is on account of and corresponds with a change in status that affects eligibility for coverage under an employer’s plan. An election change also satisfies the requirements of this paragraph (c)(3) if the election change is on account of and corresponds with a change in status that effects expenses described in section 129 (including employment-related expenses as defined in section 21(b)(2)) with respect to dependent care assistance, or expenses described in section 137 (including qualified adoption expenses as defined in section 137(d)) with respect to adoption assistance.

On page 1841, column 3, §1.125–4(f)(5)(ii), line 4, the language “Service, or a tribal organization” is corrected to read “Service, or a tribal organization;”.

Cynthia E. Grigsby, Chief, Regulations Unit, Office of Special Counsel (Modernization and Strategic Planning).

(Filed by the Office of the Federal Register on March 1, 2001, 8:45 a.m., and published in the issue of the Federal Register for March 2, 2001, 66 F.R. 13012)

Interest-Free Adjustments With Respect to Underpayments of Employment Taxes; Correction

Announcement 2001–44

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTON: Correction to notice of proposed rulemaking.

SUMMARY: This document contains a correction to a notice of proposed rulemaking (REG–110374–00, 2001–12 I.R.B. 915) that was published in the Fed- eral Register on Wednesday, January 17, 2001 (66 FR 3956), relating to interestfree adjustments with respect to underpayments of employment taxes.

April 30, 2001 1148 2001–18 I.R.B.

Excelsior Hose Company Number 4, Inc.,

Kingston, NY Family Housing Services of Orange Co.,

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:

Calvary Foundation, Inc., Buffalo, NY Camden Community Partnership for

Substance Abuse Prevention, Inc., Camden, NJ Capizeno Circle, Inc., USA,

Jersey City, NJ Casa Banome Housing Development

Fund Corporation, Bronx, NY Center for Immigration Support, Inc.,

Inc., Newburgh, NY Famine Garden Foundation, Hillside, NY Fifty Plus, Inc., Staten Blvd., NY First Baptist Housing Development Fund

Company, Inc., Mamaroneck, NY First Hellenic-American Society of

125th Anniversary of Tarrytown, Inc., Tarrytown, NY 1000 Islands Select Hockey, Inc., Watertown, NY Aberdeen Solomon David Memorial

Montrose, NY Central Westchester Senior Center, Inc.,

New City, NY Center for Jewish Governance,

Friends, Inc., New York, NY Fitness Training Institute, Inc.,

New York, NY Floyd Historical Society, Rome, NY Foothills Community Center, Inc.,

Scholarship Fund, Newark, NJ Adventure for Adults, Inc.,

Professional Health Educators, Inc., Binghamton, NY Friends of Hill Cottage, Ltd.,

Haddon Heights, NJ Africa Legal Defense and Education

Fund, Inc., New York, NY African American Historical Society of

Rockland County, Inc., Tappan, NY Afriqua, East Orange, NJ Ahepa 91, Inc., Lancaster, NY Aids Association of Western New York,

Inc., Buffalo, NY Amateur Radio Communication Service

Corps, Inc., Neptune, NJ American-Belgian Holocaust Memorial

Port Chester, NY Charge, Incorporated, New York, NY Childrens Holiday Foundation, Inc.,

New York, NY Corning Community College Alumni

New York, NY Clifton Hospice House, Inc., Clifton, NJ Clinton Complex Housing Development

Monticello, NY Foundation of NYS Federation of

Lake George, NY Friends of Lt. George Lener,

Fund Corporation, Bronx, NY Cohoes Kiwanis Foundation, Inc.,

Cohoes, NY Community Law Advocates,

New York, NY Concord Conservancy, Inc.,

Foundation, New York, NY American Committee for Sanz

Institutions of Israel, Inc., Brooklyn, NY American Friends of the Centre for

Association, Inc., Corning, NY Cuddlecare A New Jersey Nonprofit

Staten Island, NY Friends of Memorial, Inc., New York, NY Friends of Science, Staten Island, NY Foundation for Economic Democracy,

Inc., New York, NY Fulmont Ralph Bell Crusade, Fonda, NY Galatea Ensemble, Inc., New York, NY Graffiti Community Ministries, Inc.,

New York, NY Grassroots Interconnect, Inc.,

Pittsford, NY Greater New York Chapter of Adec, Inc.,

European Security Studies, Ltd., New York, NY American Friends of the Jewish Bible

Association, Inc., Long Branch, NJ American Friends of the Shanghai

Corporation, Red Bank, NJ Cumberland County Coalition on Abuse

and Neglect, Incorporated, Vineland, NJ David Martin Carter Award Fund

New York, NY Greater Rochester Professionals

Museum, Inc., New York, NY American Methadone Treatment Assoc.,

New York, NY American Pledge, Inc., Chappaqua, NY Amherst Chamber Ensembles, Inc.,

Corporation, New York, NY Dimension Educative Corporation,

Irvington, NJ Earthbase, Inc., New York, NY Eating Disorders International, Inc.,

West New York, NY Domestic Pressure, Inc., New York, NY Dr. E.L. Williams Jr., Ministries,

Network, Rochester, NY Harborside Apartments, Inc.,

Paterson, NJ Help Aids Resources Triumph, Inc.,

New York, NY Hill Communications, Inc.,

Williamsville, NY Angels for Janine, Armonk, NY Ark House, Inc., Newark, NJ Art in Perpetuity, New York, NY Artsmarter, Inc, New York, NY Association of Consumers for

New York, NY Economic Development Corporation of

Westchester Avenue, Bronx, NY Education Connection Foundation, Inc.,

Schenectady, NY Homeboy Golf Tournament, Inc.,

New York, NY Homes for All, Ltd., Delmar, NY Homestead Establishment, Inc.,

Orchard Park, NY Hope Animal Foundation, Inc.,

Enhancement and Support, Inc., Seneca Falls, NY Aurora Playground Fund, Aurora, NY Bear Boosters, Delrain, NJ Biliary Artesia & Livery Transplant

Hackensack, NJ Eleemosynary Charitable Fund, Inc.,

New York, NY Environmental Benefit, Inc.,

Inc., Poughkeepsie, NY In the Spirit of the Children, Inc.,

Summit, NJ Hudson Valley Air Museum Foundation,

New York, NY International Bank Study Center, Inc.,

New York, NY International Foundation for

Network, Inc., Staten Island, NY Bridges to Independence, Inc.,

New York, NY Bronx Korea Community Service Center,

Port Chester, NY Epasa-USA, Inc., Ridgewood, NY Epidavros Project, Inc., New York, NY Erie County Youthbuild, Inc.,

Buffalo, NY Ethos Environmental Council, Inc.,

Westfield, NJ Evergreen Foundation, Buffalo, NY

Inc., Bronx, NY Broome Community Partners, Inc.,

Development of Modern Arts, New York, NY

Binghamton, NY

2001–18 I.R.B. 1149 April 30, 2001

International Junior Golf Tour, Inc.,

Mullica Twp Community Playground

Hilton Head, SC International Society for Holter &

Potsdam Youth Soccer Association, Inc.,

Noninvasive Electrocardiology, Inc., Boston, MA Israel Leadership and Education

Project, Inc., Sweetwater, NJ Musicians Against Racism-Sexism, Inc.,

New York, NY Musicians Aid Society of New York, Inc.,

Potsdam, NY Praise Guide Dog Center & Mobility

School for the Blind, Old Westbury, NY Prayer Mountain, Inc., Sauquoit, NY Project Live No. 4, Inc., Newark, NJ Prometheus Theatre Productions, Inc.,

Foundation, Inc., New York, NY Jiribilla Cuban Culture Association, Inc.,

New York, NY Mustard Seed Korean Community

Services Center, Inc., Palisades Park, NJ N.J. Roadrunners, Inc., Union, NJ Neighborhood Partnership Housing

Los Angeles, CA Pryor Manor Marsh Preservation

New York, NY Johnson City Rotary Foundation,

Vestal, NY Jude Institute of New Jersey, Inc.,

Association, Inc., New York, NY Puertorican Hispanic Asian Development

Englishtown, NJ Kencon, Inc., Willingboro, NJ Kenmore Housing Development Fund,

Development Fund Company, Inc., New York, NY New American Stage Company, Inc.,

White Plains, NY New Development Opportunities, Inc.,

Corporation, New York, NY PWA Fund of Central New York, Inc.,

Syracuse, NY R.B.M. Shelter Family Care, Inc.,

Newark, NJ Raymond Francis Okonsky Foundation,

Corporation, New York, NY Kingston-Newburgh Enterprise

Corporation, Newburgh, NY Kofi, Incorporated, Bronx, NY Leadership Board, Inc., Waterford, NY Learning Annex Foundation, Inc.,

Dunkirk, NY New Square Local Development

New York, NY Rensselaer Artists Movement Society,

New York, NY Learning Emporium, Inc., Clifton, NJ Levoy Theatre Preservation Society, Inc.,

Corporation, New Square, NY Newton Ice Rink, Inc., Newton, CT New York Forum, Inc.,

New York, NY New York Society for Thoracic Surgery,

Inc., New York, NY New York State Aerospace Education

Rensselaer, NY River Vale Playground Committee, Inc.,

River Vale, NJ Rochester Childrens Museum,

Millville, NJ Lewis P. Preston Education Program for

Rochester, NY Rockland Bicentennial 1998, Inc.,

New City, NY Rockwork New York, Inc.,

Girls, Inc., Newark, DE Lewis Street Housing Development Fund

Council, Inc., Scotia, NY New York Womens Film Festival, Inc.,

New York, NY North Bronx Health Center, Inc.,

Company, Buffalo, NY Life and Living Bereavement Center,

New York, NY Romanian Childrens Fund, Inc.,

Westwood, NJ Rubber Duck Productions, Inc.,

Inc., New York, NY Lighthouse Community Outreach, Inc.,

New York, NY North Jersey Babe Ruth Fall Ball, Inc.,

Bronx, NY Lilac Housing, Corp., Williamsville, NY Lillian Leppe & Augusto Mauro

Sussex, NJ Northeast Bronx Community Cultural

Committee, Inc., Bronx, NY Northeast New Jersey Area Convention

of NA, Inc., Roselle, NJ Northeastern Anthrpological Assoc.,

Somerville, MA Rye Neck Community Fund, Inc.,

Mamaroneck, NY Samaritan Home Care,

Memorial Foundation, Inc., New York, NY Ludlow Independent Soccer Club,

Suffern, NY Saratoga Affordable Housing Coalition,

Inc., Saratoga Springs, NY Self Help for the Hard of Hearing New

Ludlow, MA Magnificat Meal Movement International New York, White Plains, NY Maria Foundation, Inc., Cherry Hill, NJ McTyeire School Alumnae Association of

NEAA, Amherst, MA Northhenge International Bobsledding,

Housing, Inc., Plain Valley, NY Ocean of Know, Inc., Dover Plains, NY Pan Pacific and Southeast Asia Womens

Association, New York, NY Parkchester Multi-Cultural Association,

Incorporated, Bronx, NY Paul Revere Institute, Inc., Boston, MA Peace on Earth Foundation, Inc.,

Syracuse, NY Sloatsburg Interfaith Housing Alliance

Inc., Albany, NY Oasis Community Development and

Hampshire, Nashua, NH Seneca Heights Corporation,

Middle Village, NY Socio-Economic Empowerment Through

Democracy Development Group, Inc., Dryden, NY Sovereign Military Order of Saint John of

Eastern USA and Canada, Cliffside Park, NJ Medgar Evers College Research and

Corporation, Elmsford, NY Smart Kids USA, Inc.,

Development Foundation, Inc., New York, NY Millenium Arts Project, Inc.,

New York, NY Miriam Zukerman Music Foundation,

New York, NY Peaceart International, Inc.,

New York, NY Miss America Foundation, Inc.,

Jerusalem Villdieu, Inc., New York, NY St. Judes Community Center, Inc.,

Atlantic City, NJ Moscow Institute for Advanced Studies,

Rochester, NY Peak, Inc., New York, NY Peas on Earth Nonprofit Trust,

Simsbury, CT Penny Park Playground, Inc.,

Inc., New York, NY Motherless Daughters, Inc.,

Hammonton, NJ Play for Kids, Inc., New York, NY

Brooklyn, NY Stage One, Incorporated, New York, NY Staten Island Help Our People Excel,

Staten Island, NY

New York, NY

April 30, 2001 1150 2001–18 I.R.B.

Syracuse Walk of Stars Awards, Inc.,

Young Artists Group, Inc.,

New York, NY Young at Heart, Mattydale, NY Young Readers Network, Inc.,

Syracuse, NY Taiwan International Cultural Exchange,

Van Nest Community Association, Inc.,

Bronx, NY Victor Blue Devil Lacrosse Committee,

Victor, NY Weigh Less Foundation,

New York, NY Ten Broeck Triangle Preservation

League, Inc., Albany, NY Theodore Brown Christian Academy,

East Orange, NJ Tioga Carver Community Foundation,

New York, NY Weigh Reseach Foundation,

New York, NY Zachor Int’l, Inc., New York, NY

New York, NY Union Baptist Community Development

Corporation, White Plains, NY United Community Central Los Angeles,

New York, NY West Chester Wildlife, Incorporated,

Peekskill, NY Wheatfield-Ulster County Civil War

Round Table, Stone Ridge, NY Wildlife Warriors, Inc., New City, NY Womens Center for Grassroots

Glendora, CA Universal Prayer Fellowship, Inc.,

Development, Los Angeles, CA World Confederation of United Zionists,

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.

East Orange, NJ University Gynecologists &

Obstetricians, Inc., Buffalo, NY Upstate New York Torah Association,

New York, NY World Cultural Exchange, Inc.,

New York, NY World of Culture for Performing Arts,

Inc., Albany, NY Uptown-Inner City League, Inc.,

New York, NY Urgent Family Home Health Care, Inc.,

Inc., New York, NY Yale Project 55, Inc., New York, NY Yonkers Local Assistance Corporation,

Yonkers, NY Yorkville Youth Athletic Association,

Bronx, NY Vajrasattva Foundation, Inc.,

Inc., New York, NY

New York, NY

2001–18 I.R.B. 1151 April 30, 2001