Part IV. Items of General Interest

The IRS and Treasury Department request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register .

Drafting Information

The principal author of these regulations is John Moriarty, Office of Associate Chief Counsel (Income Tax & Accounting). However, other personnel from the IRS and Treasury Department participated in their development.

* * * * *

Proposed Amendments to the Regula- tions

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Section 1.274–5 also issued under 26 U.S.C. 274(d). * * *

Par. 2. Section 1.62–2 is amended by removing the last three sentences of paragraph (e)(2) and adding two sentences in their place to read as follows:

§ 1.62–2 Reimbursements and other expense allowance arrangements.

* * * * * (e) * * * (2) * * * See § 1.274–5(g) and (j), which grant the Commissioner the authority to establish optional methods of substantiating certain expenses. Substantiation of the amount of a business expense in accordance with rules prescribed pursuant to the authority granted by § 1.274–5(g) or (j) will be treated as substantiation of the amount of such expense for purposes of this section.

* * * * * Par. 3. Section 1.274–5 is amended by:

1. Adding paragraph (j)(3).

Notice of Proposed Rule- making by Cross–Reference to Temporary Regulations

Substantiation of Incidental Expenses

REG–141832–02

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of proposed rulemaking by cross-reference to temporary regulations.

SUMMARY: This document contains proposed amendments to regulations relating to the requirement to substantiate business expenses for traveling expenses away from home. In T.D. 9020 in this issue of the Bulletin, the IRS is issuing temporary regulations relating to the requirement to substantiate business expenses for traveling expenses while away from home under section 274 of the Internal Revenue Code. The text of those regulations also serves as text for these proposed regulations. This document also contains proposed regulations amending the regulations under section 62 to conform the crossreference to the regulations under section 274.

DATES: Written or electronic comments and requests for a public hearing must be received by February 6, 2003.

ADDRESSES: Send submissions to: CC:ITA:RU (REG–141832–02), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:ITA:RU (REG– 141832–02), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, taxpayers may submit electronic comments directly to the IRS Internet site at www.irs.gov/regs .

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regu

lations, John Moriarty, (202) 622–4930; concerning submissions of comments and/or requests for a public hearing, LaNita Van Dyke, (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

Final and temporary regulations in this issue of the Bulletin amend the Income Tax Regulations (26 CFR part 1) relating to section 274. The temporary regulations authorize the Commissioner to establish a method under which a taxpayer may use a specified amount or amounts for incidental expenses paid or incurred while traveling away from home in lieu of substantiating the actual cost of incidental expenses. The text of the temporary regulations also serves, in part, as text for these proposed regulations. The preamble to the temporary regulations explains the amendment.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It is hereby certified that these regulations will not have a significant economic impact on a substantial number of small entities. This certification is based upon the fact that these regulations do not require a collection of information and do not impose any new or different requirements on small entities. Therefore, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact.

Comments and Request for a Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS.

2002–48 I.R.B. 921 December 2, 2002

tion should be received by January 17, 2003. Comments are specifically requested concerning:

Whether the proposed collection of information is necessary for the proper performance of the functions of the Internal Revenue Service, including whether the information will have practical utility;

The accuracy of the estimated burden associated with the proposed collection of information (see below);

How the quality, utility, and clarity of the information to be collected may be enhanced;

How the burden of complying with the proposed collection of information may be minimized, including through the application of automated collection techniques or other forms of information technology; and

Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of service to provide information.

The collection of information in this proposed regulation is in 26 CFR 1.6043– 4(a) and (b) and in 26 CFR 1.6045–3. The information is required be reported to ensure that shareholders properly recognize gain from corporate acquisitions and changes in capital structure. The collection of information is mandatory. The likely respondents are large corporations. The estimated total annual reporting and recordkeeping burden in proposed § 1.6043– 4(a), requiring the filing of Form 8806, is 2 hours. The estimated total annual reporting and recordkeeping burden in proposed §§ 1.6043–4(b) and 1.6045–3 is 15 minutes for each Form 1099–CAP and 10 minutes for Form 1096.

The estimated annual burden per respondent and/or recordkeeper will vary dependent on the number of Forms 1099– CAP required to be filed.

The estimated number of respondents under the proposed regulations is 350. The estimated number of respondents under the temporary regulations, for transactions occurring after December 31, 2001, is 5.

The estimated annual frequency of reporting on Form 8806 and Form 1096 is 1. The estimated annual frequency of reporting on Form 1099–CAP is 1 for each shareholder.

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless

2. Adding a new sentence at the end of paragraph (m).

The additions read as follows:

§ 1.274–5 Substantiation requirements.

[The text of proposed § 1.274–5(j)(3) and the proposed new sentence at the end of § 1.274–5(m) are the same as the text of § 1.274–5T(j)(3) and the last sentence of § 1.274–5T(m) published elsewhere in this issue of the Federal Register ].

Robert E. Wenzel, Deputy Commissioner of

Internal Revenue.

(Filed by the Office of the Federal Register on November 8, 2002, 8:45 a.m., and published in the issue of the Federal Register for November 12, 2002, 67 F.R. 68539)

Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations and Notice of Public Hearing

Information Reporting Relating to Taxable Stock Transactions

REG–143321–02

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary regulations and notice of public hearing.

SUMMARY: In this issue of the Bulletin, IRS is issuing temporary regulations (T.D. 9022) relating to information reporting relating to taxable stock transactions. This document contains proposed regulations under section 6043(c) requiring information reporting by a corporation if control of the corporation is acquired or if the corporation has a recapitalization or other substantial change in capital structure. This document also contains proposed regulations under section 6045 concerning information reporting requirements for brokers with respect to transactions described in section 6043(c). The text of the temporary regulations serves as the

text of these proposed regulations. This document also provides notice of a public hearing on these proposed regulations.

DATES: Written or electronic comments must be received by February 18, 2003. Outlines of topics to be discussed at the public hearing scheduled for March 5, 2003, at 10 a.m., must be received by February 12, 2003.

ADDRESSES: Send submissions to: CC:ITA:RU (REG–143321–02), room 5226, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 5 p.m. to: CC:ITA:RU (REG– 143321–02), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, taxpayers may submit electronic comments directly to the IRS Internet site at: www.irs.gov/regs . The public hearing will be held in room 4718, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Nancy L. Rose (202) 622–4910; concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing, Treena Garrett at (202) 622–7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information contained in this notice of proposed rulemaking has been submitted to the Office of Management and Budget for review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)). Comments on the collection of information should be sent to the Office of Management and Budget, Attn: Desk Officer for the Department of the Treasury, Office of Information and Regulatory Affairs, Washington, DC 20503, with copies to the Internal Revenue Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S, Washington, DC 20224. Comments on the collection of informa

December 2, 2002 922 2002–48 I.R.B.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1— INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.6043–4 is added to read as follows:

§ 1.6043–4 Information returns relating to certain acquisitions of control and changes in capital structure.

[The text of proposed § 1.6043–4 is the same as the text of § 1.6043–4T published elsewhere in this issue of the Federal Reg- ister ]

Par. 3. Section 1.6045–3 is added to read as follows:

§ 1.6045–3 Information reporting for acquisitions of control or substantial changes in capital structure.

[The text of proposed § 1.6045–3 is the same as the text of § 1.6045–3T published elsewhere in this issue of the Federal Reg- ister ]

Robert E. Wenzel, Deputy Commissioner of

Internal Revenue.

(Filed by the Office of the Federal Register on November 13, 2002, 4:24 p.m., and published in the issue of the Federal Register for November 18, 2002, 67 F.R. 69496)

Foundations Status of Certain Organizations

Announcement 2002–107

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

it displays a valid control number assigned by the Office of Management and Budget.

Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

Background and Explanation of Provisions

Temporary regulations in this issue of the Bulletin amend the Income Tax Regulations (26 CFR Part 1) relating to sections 6043 and 6045. The temporary regulations set forth information reporting requirements relating to acquisitions of control and substantial changes in capital structure. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments and these proposed regulations.

As set forth in the preamble to the temporary regulations, public comments are specifically invited with regard to the potential for duplicate reporting under these proposed regulations and with regard to the burden of compliance with the reporting requirements under the proposed regulations.

Proposed Effective Date

The provisions of these regulations under section 6043 are proposed to be applicable for any acquisition of control and change in capital structure occurring after the date on which these regulations are published in the Federal Register as final regulations. The provisions of these regulations under section 6045 are proposed to be applicable for any Form 1099–CAP received by a broker after the date on which these regulations are published in the Federal Register as final regulations.

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because the regulations do not im

pose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any electronic or written comments (a signed original and eight (8) copies) that are submitted timely to the IRS. The IRS and Treasury Department request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing has been scheduled for March 5, 2003, beginning at 10 a.m. in room 4718, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Because of access restrictions, visitors will not be admitted beyond the immediate entrance area more than 30 minutes before the hearing starts. For information about having your name placed on the building access list to attend the hearing, see the FOR portion of this preamble.

The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who wish to present oral comments must submit electronic or written comments by February 18, 2003, and an outline of the topics to be discussed and the time to be devoted to each topic (a signed original and eight (8) copies) by February 12, 2003. A period of 10 minutes will be allotted to each person for making comments. An agenda showing the scheduling of the speakers will be prepared after the deadline for reviewing outlines has passed. Copies of the agenda will be available free of charge at the hearing.

Drafting Information

The principal author of this notice of proposed rulemaking is Nancy L. Rose, Office of Associate Chief Counsel (Procedure and Administration).

* * * * * *

2002–48 I.R.B. 923 December 2, 2002

Port Gamble S’Klallam Foundation,

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:

Flatbush Institute for Torah Study, Inc.,

Brooklyn, NY Fourth Unity, Inc., Brooklyn, NY Fresh Bread Productions, Brooklyn, NY Gods Child Senior Care Pavilion, Inc.,

Stone Mountain, GA Greater San Diego Health Education, Inc.,

Actions Community Development Corpo ration, Houston, TX African-American Advocacy Education and

Training Consultant Group, Incorporated, Syracuse, NY All Helping Hands, Inc., Lake City, FL Alpha Pi Chi Sorority Theta Lamdda Rho

Chapter, St. Louis, MO American-Somali Council, Manassas, VA Beacon Trace Community Corporation,

San Diego, CA Healing Center, Candler, NC Hearts to Feel Hands to Serve, Inc.,

New York, NY Highway to Education Trust of Worth

Township, Oaklawn, IL Honey Bear Child Care and Learning

Centers, Inc., Swartz Creek, MI Hopeville Institution, San Antonio, TX Housing Enablement and Access to Land,

Kingston, WA Project Helping Hand, Inc., Tyler, TX Rainbow Alliance Challenge of Northern

Rhode Island, Inc., Central Falls, RI Rainbow Alliance Challenge of Southern

Rhode Island, Inc., Central Falls, RI Rich Tryon Ministries, Fort Royal, SC School Foundation of Community Unit

School Dist. 3 Pike and Calhoun Counties IL, Pleasant Hill, IL Second Chance Community Development,

Inc., Lauderhill, FL Silent Teens Organization, Canoga Park, CA Siskiyou County Job Council, Yreka, CA Special Touch Day Care Center,

Brooklyn, NY Starlight Deaf Association of

Alton Illinois, Alton, IL Stonehenge Foundation, Incorporated,

Gladwyne, PA Stuart C. Dodd Institute for Social

Inc., Nashville, TN Western Somali Relief Agency, Inc.,

San Diego, CA Wishes of Life, Inc., Snellville, GA Yonkers Housing Development

Pittsford, NY Bear Mountain Learning Community,

Inc., Central Falls, RI Indus Foundation, Sudbury, MA Institute for Veteran Transition II,

Waterford, ME Bia House, Palm Desert, CA Bob Epperson Ministries, Springville, AL Caleb Development Corporation,

Innovation, Seattle, WA Tower of Faith Economic Development

Development Association, Pittsburgh, PA Vanderbilt Asthma Sinus Allergy Program,

Corporation, Compton, CA Universal Street Academy Community

Swampscott, MA Canon McMillan Baseball Association,

Canonsburg, PA Carolina Housing Partnership

Association, Jacksonville, FL Center for Security and Social Progress,

Inc., Waban, MA Changing Faces, Inc., Santa Maria, CA Children of Christ Outreach, Burien, WA Coats Heritage House, Inc., Elkland, PA Communities With Vision, Inc.,

Sorrento, FL Eagle Vision Society, Oklahoma City, OK Edisto Haven, Orangeburg, SC Episcopal Church of the Nativity Trust,

Huntsville, AL Extended Harvest, Vancouver, WA Eye Foundation, Readfield, ME Fields Center, Inc., Louisville, KY Fire Fighters Memorial Foundation, Inc.,

Fresno, CA Joshaun Foundation, Inc., Penn Valley, CA Kansas Foundation for Clinical

Pharmacology, Inc., Overland Park, KS Kira Institute, Inc., Amherst, MA Los Angeles County Bomberos,

Incorporated, Montebello, CA Meals 4 U, Grosse Pointe Woods, MI Mercy Place Ministries, Shippenburg, PA Mid-Maine Global Forum, Waterville, ME Milwaukee Institute for Biblical Studies,

Association Educational Opportunities, Plymouth, MN Mound Bayou Community Development

Corporation, Incorporated, Mound Bayou, MS Mystery Weavers, Red Bluff, CA National Floor Safety Institute, Bedford, TX Noble Charitable Center, Agoura Hills, CA North Star Land Foundation, Inc.,

Edgartown, MA Ocean Adventures, Ltd., Prior Lake, MN On Gods Behalf Ministries, Inc.,

Grand Rapids, MI Peluso Family Foundation, Stockton, CA

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.

Inc., Milwaukee, WI Minnesota Precision Manufacturing

Corporation, Yonkers, NY

Omaha, NE

December 2, 2002 924 2002–48 I.R.B.