Part IV. Items — Internal Revenue Bulletin 2001-36

Marys Covenant Child Care and

Foundations Status of Certain Organizations

Announcement 2001–85

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:

Christian Mental Health Services, Inc.,

Duluth, GA Circle of Love, Inc., College Park, GA Citizens Coalition for Responsible

Sharpsburg, GA Friends of Ghana, Inc., Macon, GA Friends of Goethe, Inc., Atlanta, GA Froghop, Inc., Atlanta, GA Fulton Parks Foundation, Inc., Atlanta, GA Fundacor Heart Foundation, Inc.,

Atlanta, GA Pediatric Life Support International, Inc.,

Power, Inc., Tampa, FL Community Reinvestment Concepts, Inc.,

Learning Center, Inc., Atlanta, GA Med. Help International, Inc.,

Melbourne Beach, FL Mike Elk Foundation, Carrollton, GA Ministry Resource Group, Inc.,

Atlanta, GA Montgomery Improvement 40th

Clayton, GA Consumer Law Center of the South, Inc.,

Anniversary Foundation, Montgomery, AL Morven Landmarks, Inc., Columbus, GA National Community Development, Inc.,

Atlanta, GA Cup, Inc., Decatur, GA Dale Davis Foundation, Inc.,

Boca Raton, FL Economical Hope Development, Inc.,

Plantation, FL Nehemiah Community Development

Morrow, GA Emmanuel Southside Community

Enrichment Center, Inc., Atlanta, GA Fishing Hall of Fame, Inc.,

Daytona Beach, FL Freemind Generation, Inc., Atlanta, GA Friends of Bowden, Inc., East Point, GA Friends of Georgia Cycling, Inc.,

Corporation, Inc., Riverdale, GA Oakwood Non Profit Housing

Corporation, Mt. Dora, FL Outreach Center, Inc., La Grange, GA Owens Community Caring & Sharing,

Inc., Decatur, GA Park Terrace Living Center, Lebanon, TN Partnership of Atlanta Congregations,

Macon, GA Philippine Medical Society of Florida,

Inc., Atlanta, GA Peachtree Christian Foundation, Inc.,

100 Black Men of Valdosta, Inc., Valdosta, GA Affordable Housing Concepts, Inc.,

Jonesboro, GA Safe Start USA, Inc., Winter Park, FL Sanford Festivals, Inc., Sanford, NC Skua Productions, Inc., Atlanta, GA Smith College Club of Atlanta,

Atlanta, GA Solid Rock Ranch, Inc., Valdosta, GA South Central Community Development

Clayton, GA Alliance for a Responsible Swine

Industry, Inc., Burgaw, NC Alternatives to Violence Project USA,

Inc., East Coast Chapter, Neptune Beach, FL Portsbridge Foundation, Inc.,

Inc., Albany, GA American Saddlebreed Special

Commissioned, Inc., Madison, GA Arc of Union Co., Maynardville, TN At-Risk Childrens-Teens Shelter, Inc.,

Atlanta, GA Atlanta Doo-Wopp Association, Inc.,

Dunwoody, GA Prime Life Foundation, Inc., Plano, TX Rest Haven Nursing Home Auxiliary,

Ripley, MS Rosslyn Counseling Ministry, Inc.,

Fayetteville, GA Atlanta World Basketball Championships

Woodstock, GA Global Health Service, Charlotte, NC Golf Hall of Fame, Inc., Atlanta, GA Greater Atlanta Inner City Games, Inc.,

Atlanta, GA Greyt Friends, Inc., Marietta, GA Hall of Success, Inc., Atlanta, GA Help our Youth USA International, Inc.,

Ellenwood, GA Hot Club of Atlanta, Inc., Decatur, GA Jesse Solomon Scholarship Foundation,

Inc., Madison, FL John Chambers, Inc., Atlanta, GA Kennesaw Youth Football Association,

Kennesaw, GA Korean-American Helping Hands

Organizing Comm., Inc., Atlanta, GA Barbara A. Hayes Breast Cancer

Foundation, Inc., Melbourne, FL Bartow Blaze Fastpitch Softball, Inc.,

Organization, Inc., Mableton, GA Lee’s Mill Action Team, Inc.,

Corp., Memphis, TN South Georgia Soccer Club, Inc.,

Douglas, GA Southeast Community Development

Corporation, Memphis, TN Southside Mega Flood Task Force, Inc.,

Bartow, FL Bay County Council for Children, Inc.,

Plymouth, NC Lifeline Academy, Inc., College Park, GA Little Rock Housing Authority Technical

Albany, GA Suwanee Community Development

Corp., Live Oak, FL Sword of the Word, Inc., Augusta, GA Twenty-First Century Senior Services,

Panama City, FL Birth Health, Inc., Atlanta, GA Blacks United for Youth-Cobb, Inc.,

Marietta, GA Building Hope, Inc., Atlanta, GA Camp Kaleidoscope, Inc., Alpharetta, GA Center Court, Inc., Baton Rouge, LA Chosen Ministries, Inc., Augusta, GA

Assistance Organization, Little Rock, AR Maarji Institute, Inc., Fayetteville, GA Macon County Community Housing

Development Corporation, Montezuma, GA Mary Lin Capital Campaign, Inc.,

Inc., Memphis, TN

Atlanta, GA

2001–36 I.R.B. 219 September 4, 2001

Tybee Island Land Trust, Inc.,

utors 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.

Tybee Island, GA Uhuru, Inc., Atlanta, GA United Christian Childrens Fund,

Winter Springs, FL United States Deaf Table Tennis

Association, St. Augustine, FL Vaughan Perry Foundation, Inc.,

Marion, AL Vaughan Thomasville Foundation, Inc.,

Wilbur Foundation, Inc., Atlanta, GA Wild Care, Inc., Denver, NC Youth United for Prosperity,

Norcross, GA

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 contrib

Thomasville, AL Victory Network, Inc., Albany, GA We Share, Inc., College Park, GA

The IRS Invites Your Comments on Proposed Changes to Substitute Forms Requirements for the Partner Copy of Schedule K-1 (Form 1065) and Schedule K-1 (Form 1065–B)

Announcement 2001–88

Background Based on recommendations of the Information Reporting Program Advisory Committee (IRPAC), the Internal Revenue Service (IRS) plans to revise Publication 1167, Substitute Printed, Computer-Prepared, and Computer-Generated Tax Forms and Schedules . It will provide revised substitute forms requirements for the copies of Schedule K-1 (Form 1065) and Schedule K-1 (Form 1065–B) furnished to partners, effective for the 2002 Schedule K-1.

The purpose of these revisions is to:

Make the substitute forms requirements more specific.
Set uniform visual standards that all taxpayers can recognize as representing a Schedule K-1.

Purpose The purpose of this announcement is to request comments on proposed changes to the substitute forms requirements for Schedule K-1 (Form 1065) and Schedule K-1 (Form 1065–B).

Revisions to The instructions in Publication 1167 would be supplemented by the following proposed requirements: Publication 1167

Copies of substitute Schedules K-1 furnished to partners must be clear and legible.
The substitute schedule must show the tax year, schedule number (K-1), related form number (1065 or

1065–B), and title exactly as shown on the official IRS schedule. This information must be prominently displayed together in one area of the schedule.

The line items on the substitute schedule must be in the same order as those on the official IRS schedule. The wording for each line and instruction must be substantially the same as the official schedule.
The schedule must contain all items required for use by the partner, but is not required to show lines

that do not have entries required for the particular partner. If line items are omitted, do not renumber the remaining lines. The remaining lines must have the same letters or numbers as the corresponding lines on the official schedule. Instructions should be provided to make it clear that the number and order of the items relate to the official schedule.

Either the official IRS version of the Partner’s Instructions for Schedule K-1 or substantially similar instructions must be furnished with the partner’s copy of Schedule K-1. If line items on a substitute

schedule have been omitted on a partner’s substitute Schedule K-1 because they do not apply to that partner, the corresponding line instructions may be omitted from that partner’s substitute instructions.

Logos are permitted on the substitute schedules, along with other information which is helpful to the

partners’ understanding of their tax responsibilities. Such information should be segregated in a manner that avoids confusion with the required Schedule K-1 tax items.

September 4, 2001 220 2001–36 I.R.B.

Benefit to By providing clear and consistent reporting of tax information to its partners, partnerships will make it Partnerships easier for its partners to comply with their tax responsibilities. Partnerships will spend less time explaining to partners the tax information they have received and how it relates to their income tax returns.

Benefit to Partners Income tax information the partners receive will be understandable and will be properly reflected on their income tax returns. Partners will receive fewer notices from the IRS.

Benefit to the IRS The IRS will receive more accurate returns, which in turn will reduce the need to contact taxpayers.

Comments Requested The IRS would like to receive comments on the proposed revisions to Publication 1167 regarding Schedule K-1 (Form 1065) and Schedule K-1 (Form 1065–B) from partnerships, partners, and other interested parties by October 1, 2001.

Please e-mail comments to the Substitute Forms Program Unit at tfp@publish.no.irs.gov. Please enter “Substitute Forms” on the Subject Line. You can also mail comments to Internal Revenue Service, Substitute Forms Program, W:CAR:MP:FP:S:CS, 1111 Constitution Avenue, NW, Room 5244, Washington, DC 20224. After the end of the comment period, the IRS will evaluate the comments and release a revised version of Publication 1167. Although we will not be able to respond to each comment, we will carefully consider all of them.

that meets the requirements described below. This announcement does not apply to situations in which a broker acts as a payee’s agent with respect to “readily tradable instruments” pursuant to the special rule in § 31.3406(h)–3(d) of the Employment Tax Regulations. Therefore, in the case of readily tradable instruments, the payer may rely on a taxpayer identification number provided by the broker (including by electronic means) unless certification is required and the broker notifies the payer that the number was not certified.

Electronic System Requirements

(1) In general . The electronic system must ensure that the information received by the payer is the information sent by the investment advisor or introducing broker. The system must document all occasions of user access that result in the submission. In addition, the design and operation of the electronic system, including access procedures, must make it reasonably certain that the person accessing the system and submitting the Form W-9 is the investment advisor or introducing broker.

(2) Same information as paper Form W-9 . The electronic submission must provide the payer with exactly the same information as the paper Form W-9.

(3) Signature requirements and per- jury statement . The electronic submission

The Internal Revenue Service Will Permit Electronic Submission of Forms W-9 by Certain Intermediaries

Announcement 2001–91

Background

In Announcement 98–27 (1998–1 C.B. 865) the Internal Revenue Service (the “Service”) announced that it will allow payers to establish a system to electronically receive Form W-9, “Request for Taxpayer Identification Number and Cer- tification” from payees. The “Instruc- tions for the Requester of Form W-9” were revised to describe a proper electronic system.

The Service will also allow a payer with an electronic system to electronically receive a Form W-9 from an investment advisor or introducing broker authorized to transmit that form as the payee’s agent. To receive a Form W-9 from an investment advisor or introducing broker, a payer’s electronic system must meet the requirements described below. The Service will revise the instructions to Form W-9 to reflect the provisions of this announcement.

Definitions

For purposes of this announcement, the term “payer” means a person re

quired to file an information return for payments described in §§ 3406(b)(2) and (3) of the Internal Revenue Code. The term “payee” means the person required to submit Form W-9 to the payer. The term “investment advisor” means a corporation, partnership or individual registered with the Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940. The term “introducing broker” means a broker-dealer that is regulated by the SEC and the National Association of Securities Dealers, Inc., and that is not a payer.

Reliance

A payer receiving a Form W-9 from an investment advisor or introducing broker authorized to transmit the Form W-9 to the payer may rely on it as if the form had been received directly from the payee, for purposes of filing information returns and determining the payer’s backup withholding obligations under § 3406. The advisor or broker must represent in writing (which may include electronic means) to the payer that the payee authorized the advisor or broker to transmit the Form W-9 to the payer.

The Form W-9 received from the investment advisor or introducing broker may be either the original paper Form W-9 or an electronic version (including a facsimile). An electronic version must be received by the payer through a system

2001–36 I.R.B. 221 September 4, 2001

must be signed with the payee’s electronic signature, but only in situations where Form W-9 and its instructions require a signature by the payee.

(A) Electronic signature . In addition to identifying the payee to whom the Form W-9 relates, the electronic signature must authenticate and verify the submission. For this purpose, the terms “authenticate” and “verify” have the same meanings as they do when applied to a written signature on a paper Form W-9. An electronic signature can be in any form that satisfies the foregoing requirements. The electronic signature must be the final entry in the submission.

(B) Perjury statement . The electronic signature on Form W-9 must be under penalties of perjury. The perjury statement must contain the language that

appears on the paper Form W-9. The electronic system must inform the payee that, by signing, the payee makes the declaration contained in the perjury statement. The perjury statement must immediately precede the electronic signature.

(4) Copies of electronic Forms W-9 . Upon request by the Service, the payer must supply a hard copy of the electronic Form W-9 and a statement that, to the best of the payer’s knowledge, the electronic Form W-9 was submitted by the investment advisor or introducing broker acting as the payee’s agent. The hard copy of the electronic Form W-9 must provide exactly the same information as, but need not be a facsimile of, the paper Form W-9.

(5) Effective date. This announcement applies to Forms W-9 submitted to payers by payees through investment advisors or

introducing brokers on or after September 4, 2001. For further information regarding this announcement, contact Nathan Rosen of the Office of the Associate Chief Counsel (Procedure & Administration), Administrative Provisions and Judicial Practice Division, at (202) 622-4910 (not a tollfree call).

September 4, 2001 222 2001–36 I.R.B.