Part IV. Items — Internal Revenue Bulletin 2002-29

On page 7638, column 2, § 1.280G–1, paragraph (g) of A–6:, Example 5., line 9, the language “pays or accrues a payment that would” is corrected to read “that would”.
On page 7638, column 3, § 1.280G–1, paragraph (b)(1) of A–7:, line 9, the language “A–7, the vote can be no less than the” is corrected to read “A–7, the vote can be on less than the”.
On page 7640, column 1, § 1.280G–1, paragraph (e) of A–7:, Example 7., line 16, the language “the payments of $400,000 to X; $600,000 to” is corrected to read “and describing the payments of $400,000 to X; $600,000 to”.
On page 7640, column 1, § 1.280G–1, paragraph (e) of A–7:, Example 8., line 8, the language “the nature of the payments to X, Y, and Z are” is corrected to read “the nature and amount of the payments to X, Y, and Z are”.
On page 7641, column 1, § 1.280G–1, paragraph (c) of A–11:, lines 18 and 19 from the top of the column, the language “under section 3121(v) and § 1.312(v)–1(c)(4) or payment related to health” is corrected to read “under section 3121(v) and § 31.3121(v)(2)–1(e)(4) of this chapter, or a payment related to health”.
On page 7641, column 2, § 1.280G–1, paragraph (a) of A–13:, lines 13 and 14, the language “value of an option with an ascertainable fair market value at the time the option” is corrected to read “value of an option at the time the option”.
On page 7642, column 1, § 1.280G–1, Q–17:, line 3, the language “purposes of paragraph (a)(1) of Q/A–15” is corrected to read “purposes of paragraph (a)(1) and (b) of Q/A–15”.
On page 7642, column 3, § 1.280G–1, paragraph (c) of A–18:, line 16, the language “defined in Q/A–20 of this section). If the” is corrected to read “defined in Q/A–20 of this section). The number of employees is determined with regard to the rules in Q/A–19 (c). If the”.
On page 7642, column 3, § 1.280G–1, paragraph (a) of A–19:, line 13, the language “A–21 of this section)

Golden Parachute Payments; Correction

Announcement 2002–65

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction 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–109114–90, 2002–9 I.R.B. 576) that was published in the Federal Regis- ter on Wednesday, February 20, 2002 (67 FR 7630) that will clarify the application of section 280G of the Internal Revenue Code to deny a deduction to a corporation for any excess parachute.

FOR FURTHER INFORMATION CONTACT: Erinn Madden at (202) 622–6060 (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 are under section 280G of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed rulemaking and notice of public hearing (REG–209114–90, 2002–9 I.R.B. 576) contains errors that may prove to 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–209114–90), which is the subject of FR Doc. 02–3819, is corrected as follows:

On page 7630, column 1, in the preamble under the caption “SUMMARY:”, fourth line from the bottom of the paragraph, the language “may rely on the 1989 regulations for any” is corrected to read “may rely on the 1989 proposed regulations for any”.
On page 7630, column 2, in the preamble under the caption “FOR FURTHER INFORMATION CONTACT:”, line 2, the language “Madden at (202) 622–6030 (not a toll” is corrected to read “Madden at (202) 622–6060 (not at toll-”.
On page 7630, column 2, in the preamble under the paragraph heading “Background”, second paragraph, line 9, the language “section 312(v)(2)(A), which relates to” is corrected to read “section 3121(v)(2)(A), which relates to the.”
On page 7630, column 2, in the preamble under the paragraph heading “Background”, second paragraph, line 14, the language “FR 19390 on May 5, 1989 (the 1989” is corrected to read “FR 19390 on May 5, 1989 and corrected in 54 FR 25879 (June 20, 1989) (the 1989”.
On page 7631, column 1, in the preamble under the paragraph heading “ Dis- qualified Individuals ”, second paragraph, line 7, the language “1989 regulations provides a de minimis ” is corrected to read “1989 proposed regulations provides a de minimis ”.
On page 7634, column 2, in the preamble under the paragraph heading “ Rea- sonable Compensation ”, first full paragraph from the top of the column, line 2 from end of paragraph, the language “show to be reasonable compensation” is corrected to read “shown to be reasonable compensation”.
On page 7635, column 3, in the preamble under the paragraph heading “ Tim- ing of the Payment of Tax under Section 4999 ”, paragraph 1, line 2, the language “section 312(v) and § 1.3121(v)–1(e)(4)” is corrected to read “section 3121(v) and § 31.3121(v)(2)–1(e)(4)”.
On page 7635, column 3, in the preamble under the paragraph heading “ Pro- posed Effective Date ”, line 4, the language “control occurring on or after January 1,” is corrected to read “control that occurs on or after January 1,”.

§ 1.280G–1 [Corrected]

On page 7638, column 2, § 1.280G–1, paragraph (g) of A–6:, Example 4 ., line 10, the language “application of the excemption described in” is corrected to read “application of the exemption described in”.

2002–29 I.R.B. 182 July 22, 2002

paid during the” is corrected to read “A–21 of this section) earned during the”.

On page 7644, column 1, § 1.280G–1, paragraph (c) of A–22:, line 7, the language “that is closely associated and materially” is corrected to read “that is closely associated with and materially”.
On page 7646, column 3, § 1.280G–1, paragraph (f) of A–24:, Example 4., line 3 from the bottom of the column, the language “would been on January 15, 2011. The” is corrected to read “would have been on January 15,
The”.
On page 7648, column 1, § 1.280G–1, paragraph (c) of A–26:, line 13, the language “of section 129); or a no-additional-cost” is corrected to read “of section 129); a no-additional-cost”.
On page 7648, column 1, § 1.280G–1, paragraph (c) of A–26:, line 15, the language “132(b)) or qualified employee discount” is corrected to read “132(b)) qualified employee discount”.
On page 7648, column 1, § 1.280G–1, line 16, the language “(within the meaning of section 132(c));” is corrected to read “(within the meaning of section 132(c)) qualified retirement planning services under section 132(m);”.
On page 7649, column 1, § 1.280G–1, paragraph (d) of A–27:, Example 4., lines 11 through 22, the language “Corporation P shareholders also owned Corporation O stock (overlapping shareholders) with a fair market value of 5 percent of the value of Corporation O stock. The overlapping shareholders consist of Mutual Company A Growth Fund, which prior to the transaction owns 3 percent of the value of Corporation O stock, Mutual Company A Income Fund, which prior to the transaction owns 1 percent of the value of Corporation O stock, and B, an individual who prior to the transaction owns 1 percent” is corrected to read “Corporation O shareholders also owned Corporation P stock (overlapping shareholders) exchanged for O stock with a fair market value of 5 percent of the value of Corporation O stock. The overlapping shareholders consist of Mutual Company A Growth Fund, which prior to the transaction owns P stock that is exchanged for 3 percent of the value of Corporation O stock, Mutual Company A Income Fund, which prior to the transaction owns P stock that is exchanged for 1 percent of

the value of Corporation O stock, and B an individual who prior to the transaction owns P stock that is exchanged for 1 percent”

On page 7651, column 1, § 1.280G–1, A–32:, line 12, the language “24 and 35 of this section. However, for” is corrected to read “24 and 31 of this section. However, for”.
On page 7655, column 1, § 1.280G–1, paragraph (c) of A–42:, Example 3., line 4, the language “services to Corporation N, when and if,” is corrected to read “services to Corporation N, when and if”.
On page 7656, column 2, § 1.280G–1, A–48: is corrected to read as follows:

§ 1.280G–1 Golden parachute payments .

A–48: This section applies to any payments that are contingent on a change in ownership or control that occurs on or after January 1, 2004. Taxpayers can rely on these rules after February 20, 2002, for the treatment of any parachute payment.

Cynthia E. Grigsby, Chief, Regulations Unit, Associate Chief Counsel (Income Tax and Accounting) .

(Filed by the Office of the Federal Register on June 20, 2002, 8:45 a.m., and published in the issue of the Federal Register for June 21, 2002, 67 F.R. 42210)

Foundations Status of Certain Organizations

Announcement 2002–66

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:

Network, Inc., Phillippi, WV Barcap of Florida, Inc., Sarasota, FL

7-12 Model Aviation Youth Academy, Long Beach, CA A-Home, Inc., New Orleans, LA Acadian Memorial Foundation, Inc.,

St. Martinville, LA Adventures in Art, Inc., Ft. Worth, TX African-American Community

Entrustment, San Francisco, CA African American Portrait Collection,

Inc., Sacramento, CA Aha Mele ’O Ho ’Omau, Honolulu, HI Alberta Street Apartments Preservation,

Inc., Wilsonville, OR Alianza Deministerios Evangelicos

Nacionales, Costa Mesa, CA Aloha Park Preservation, Inc.,

Wilsonville, OR Alpha Community Housing

Development, Inc., New Orleans, LA Alpha Reading & Tutorial Services,

Royal Palm Beach, FL Alumni Basketball Camp, Inc.,

Norman, OK Angels Anonymous of Horizon Hospice,

Inc., Meridian, ID Animal Welfare Council,

Weatherford, TX Arc Marion New Hope Foundation, Inc.,

Ocala, FL Aromas San Juan Bautista Community

Schools Foundation, San Juan Bautista, CA Ascension Theatre, Inc., New York, NY Autumn Glow Alzheimers Care Home,

Inc., San Francisco, CA Axumite Community Development

Corporation, Stockton, CA B. J. Hill and Associates, Inc.,

Fayetteville, NC Babes and Tots Child Care, Inc.,

Mountain Home, AR Backdoor Institute of Disability Enabling

Resources & Services, Inc., Sacramento, CA Baltimore County Health Council,

Towson, MD Barbour County Family Resource

July 22, 2002 183 2002–29 I.R.B.

Beaufort County Cities in Schools, Inc.,

Hilton Head, SC Behavioral Impact Counseling Services,

Chillicothe, OH Chinese Cultural Foundation of Diablo

Children and Family Network, Inc.,

Cumberland Regional Improvement

Inc., Mission Hills, CA Benedictus, El Cajon, CA Bethel High School Band Boosters Club,

Silt, CO Chillicothe Quarterback Club,

Valley, Danville, CA Cleveland County Friends of the

Corporation, Fayetteville, NC Cypress and Senior Care Homes, Inc.,

Antioch, CA Cypress Gardens Housing Corporation,

Gilroy, CA DARE Georgia, Inc., Decatur, GA De Mano A Mano Spanish Language

Spanaway, WA Bethlehem Partners in Prevention,

Hotline, Santa Barbara, CA Decro Kappa Corporation,

Spartanburg, SC Big Brothers Big Sisters of the Tulorosa

Fairgrounds, Inc., Norman, OK Clover Hill Area Teen Center, Inc.,

Anaheim Hills, CA Deming Soccer League, Deming, NM Desert Legacy Employment Solutions,

Basin, Inc., Alamogordo, NM Boston Islamic School, Inc., Boston, MA Bound for Freedom, Inc., Charlotte, NC Boys and Girls Club of Fauquier, Inc.,

Midlothian, VA Coastal Health & Fitness, Inc.,

Coleville, CA Collective Theatre Company,

Camarillo, CA Coleville High School PTSO,

Warrenton, VA Boys & Girls Club of Lake County,

Winston Salem, NC Colorado Inhalant Abuse Program, Inc.,

Inc., Phoenix, AZ Desoto County Domestic Violence

Clearlake, CA Brazos Valley Youth Corporation,

Council, Arcadia, FL Dwight R. Means Foundation,

Dallas, TX E. E. Brownell Academy of Humanities

and Fine Arts Parents Club, Gilroy, CA East Lincoln Middle School Parents

College Station, TX Brendas Full House, Columbia, MO Brookhollow Tenant Association,

Denver, CO Colquitt County Senior Consortium, Inc.,

Moultrie, GA Columbus Metabolic Foundation, Inc.,

Incorporation, Kerrville, TX Business for Progress Economic

Development Corporation, Hawaiian Gardens, CA Butte Libraries Foundation, Chico, CA Calabash Hawaii, Honolulu, HI California Institute for Biodiversity,

Walnut Creek, CA Canine Service Corps, Wimberley, TX Cantilever Network, Incorporated,

Chicago, IL Canyon Creek Narrow Guage Railway,

Columbus, GA Communities in Schools of Asheville,

Gulfport, MS Community Learning and Information

Network of the Tri-State, Inc., Huntington, WV Community Supporters of the Atlanta

Palmetto, FL Ensemble Theatre, Scottsdale, AZ Environmental Resourcing Association,

Asheville, NC Communities in Schools of the Valley of

Teachers Organization, Iron Station, NC Eden Economic Development

Corporation, Eden, TX Educational Concepts, Sacramento, CA El Paisano Educational Resource Center,

the Sun, Inc., Phoenix, AZ Community Health Center of Glendale,

Sylmar, CA Community in Action, Inc.,

Inc., Albuquerque, NM Ellenton Lions Foundation, Inc.,

Olympia, WA Evansville Fc-Soccer League,

Georgetown, CA Caregivers Solutions, Inc.,

Oklahoma City, OK Casper Storm AAU Basketball Club,

Symphony Orchestra, Atlanta, GA Conejo Oaks Symphony, Inc.,

Thousand Oaks, CA Connecticut Valley Soccer Club, Inc.,

Evansville, IN F Q Story Block Watch Association,

Inc., Evansville, WY Catholic Christian Community for

Phoenix, AZ Fairmont Private Schools Parent

Association, Anaheim, CA Families for Children of Oregon,

Portland, OR Families for Inclusive Education,

Justice, Inc., Vallejo, CA Center for Christian-Jewish Dialogue,

Colorado Springs, CO Center for Multicultural Wellness and

Claremont, NH Consortium for Learning & Research in

Shelbyville, KY Contemporary Asian Theatre Scene,

Aging, Sacramento, CA Contact Point Productions, Inc.,

Jefferson, LA Fannie Bush Teacher Organization of

Prevention, Inc., Winter Park, FL Central California Arts Foundation,

San Jose, CA Covenant Word Ministries, Inc.,

Tulare, CA Central Coast Theater Works, Inc.,

Winchester Kentucky, Winchester, KY Fannin County High School Tip-Off

Santa Cruz, CA Central High Choral Booster Bunch,

Dallas, TX Coyote Trail PTF, Tucson, AZ Crawford Center, Inc., Miami, FL Crime Prevention Boosters,

Club, Inc., Mineral Bluff, GA Few-Fund for Education Research and

Inc., Phoenix, AZ Central Valley Youth Services, Inc.,

Nashville, TN Crossroads Riding Center, Inc.,

Stockton, CA Charles Apartments Housing

Training, Washington, DC First Night Phoenix, Inc., Tempe, AZ Five Forks Commemorative Committee,

Corporation, Gilroy, CA Charleston Rotary Fund, Charleston, SC Chesapeake Bay Educators, Weems, VA Child Safety Net of Southern California,

Alexandria, LA Cuarto Centennial Project Corporation,

Albuquerque, NM Cuban Cultural Group, Inc., Miami, FL Cultural Movement, Inc., Goldsboro, NC

Prince George, VA Florence County Association of

Educational Office Professionals, Lake City, SC Focus on Children, Inc., Durham, NC

Los Angeles, CA

2002–29 I.R.B. 184 July 22, 2002

Folsom St. Interchange,

Boulder, CO Highland Park Community Development

San Francisco, CA For the Children, Mountain View, MO Foundation for Students Education,

High Peaks Educational Group, Inc.,

Corporation, Pasadena, CA Hilo Medical Center Foundation,

Las Vegas Vecindario De Esperanza

Resident Council, Las Vegas, NM Latino American Economic Development

Institute, Hollywood, CA Latinos Unidos for Alcohol and Drug

Easton, MA Fourth of July Celebration at Hansen

Hilo, HI Historic Entertainment and Repertory

Dam, Sun Valley, CA Friends of Mallory Square, Inc.,

Services of Monterey County, Castroville, CA Leland College Development

Corporation, Baton Rouge, LA Liberty Bells Group, Hopewell, VA Life Care Institute, Inc., Boseman, MT Life Net Ministries, Richmond, VA Lincoln County Housing Coalition, Inc.,

Davenport, WA Literacy Initiatives & Family Endeavors,

Key West, FL Friends of Santa Clara Soccer Park,

Organizational Society, Morrisville, NC Hmong International Culture Reunion,

Inc., Fresno, CA Homebound Remembered, Inc.,

Santa Clara, CA Friends of the Civic Arts Plaza,

Thousand Oaks, CA Friends of the Fairfax City Library,

San Antonio, TX Living Classrooms of Florida, Inc.,

Fairfax, VA Friends of the Ma Rainey Museum of

Lubbock, TX Hope Connection, Mission Hills, CA Housing Effort, Inc., Louisville, KY Houston Enhanced Enterprise

Community Governance Board, Houston, TX Hub City Community Hospice,

the Blues, Inc., Columbus, GA Friends of the National Kidney

Association, San Francisco, CA FSUS Sigma Chi Educational

Riviera, FL Los Molinos Educational Endowment

Foundation, Los Molinos, CA Louisiana Lacrosse Association,

Shreveport, LA Love Memorial Parent Teacher

Organization, Lincolnton, NC Lovell Wyoming Educational

Foundation, Inc., Tallahassee, FL Gardngs Favrp, Inc., Ft. Lauderdale, FL Gate Parents Group of the San Mateo

Compton, CA Hui Kauhale, Inc., Honolulu, HI Imani House, Winston Salem, NC Inner City Youth, San Francisco, CA Institute for Behavior and Research, Inc.,

Union High School District, San Mateo, CA Gateway Apprenticeship Program,

Boulder, CO Geneseo High School Soccer Boosters,

Daphne, AL Integrity Youth Enterprises, Inc.,

Santa Maria, CA International Baccalaureate Foundation

of Choctawhatchee H.S., Fort Walton, FL Irby Adult Resources Center, Inc.,

Foundation, Inc., Lovell, WY Lower Umpqua Volunteers Luv, Inc.,

Reedsport, OR Lyons Elementary Parent Teacher

Geneseo, IL Georgia Community-Based

Development, Inc., Atlanta, GA Georgia Mountains Private Industry

Organization, Lyons, CO Marc Carr Evangelistic Association, Inc.,

Sarasota, FL Marin People Care, San Rafael, CA Maryland Parent Teacher Organization,

Phoenix, AZ Maui Tongan Association, Kahului, HI McKendree Vilage Home Health, Inc.,

Council, Inc., Gainesville, GA Get Well Soon Day Care Program,

Aloha, OR Glenoak Golden Eagel Kick Off Club,

Pascagoula, MS Irene Cardenas Memorial Scholarship

Fund, Del Rio, TX J. W. Williams Neighborhood Center,

Oklahoma City, OK Mead High PTSA, Tacoma, WA Men of Moral Consciousness,

Inc., Canton, OH Gods Kitchen, Inc., Boynton Beach, FL Golden Starfish Buddy Program,

Memphis, TN Jeffco First Steps for Children With

Special Needs, Golden, CO JLWP Adult Day Care Center, Inc.,

Humphrey, AR Juvenile Drug Diversion Program,

Hermitage, TN MDC Today Foundation,

Medina, WA Golden Triangle Deacon & Deaconess

Council, Beaumont, TX Great American Museum of History,

Fairbanks, AK Keep the Kids Busy Foundation,

Carson City, NV Group Opportunity, Inc., Richmond, CA Gulf Shore Literary Society, Inc.,

Capitola, CA Kami Educational Corporation,

Jackson, MS Kent High Schools PTSA, Tacoma, WA Kolours Dance, Inc., Atlanta, GA Korean Artist Association of Southern

Network, Newark, OH Mid-South Interventions & Solutions

Wilson, NC Merchants Development, Inc.,

Birmingham, AL Mid-Ohio Community Information

Institute, Inc., Natchitiches, LA Middletown Educational Foundation,

Naples, FL H & L Charities, Nashville, TN Harbison West Elementary Parent

Teacher Organization, Columbia, SC Hawaii Power Builders, Inc.,

California, Los Angeles, CA La Cheim Psychological Treatment

Services, Inc., Oakland, CA La Joya Middle School PTC,

Middletown, CA Miracles Recovery Center, Inc.,

Honolulu, HI Haywood County Agricultural &

Visalia, CA Labor Museum & Learning Center of

Houston, TX

Activities Center Association, Waynesville, NC Help-Out, Texas City, TX Helper Intermountain Theatre,

Michigan, Flint, MI Lakers Premier Soccer Club, Inc.,

Mandeville, LA

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

Helper, UT

July 22, 2002 185 2002–29 I.R.B.

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.

2002–29 I.R.B. 186 July 22, 2002