Part IV. Items — Internal Revenue Bulletin 2003-20

mits written comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register .

Drafting Information

The principal author of these regulations is Richard Charles Grosenick, Office of Assistant Chief Counsel (Administrative Provisions & Judicial Practice). However, other personnel from the IRS and the Treasury Department participated in its 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 * * * Par. 2. Section 1.6107–2 is added to read as follows:

§1.6107–2 Form and manner of furnishing copy of return and retaining copy or record.

[The text of this proposed section is the same as the text of §1.6107–2T published elsewhere in this issue of the Bulletin.

Par. 3. Section 1.6695–1 is amended by revising paragraph (b) to read as follows:

§1.6695–1 Other assessable penalties with respect to the preparation of income tax returns for other persons.

* * * * * (b) [The text of this proposed paragraph (b) is the same as the text of §1.6695– 1T(b) published elsewhere in this issue of the Bulletin.

* * * * * David A. Mader, Assistant Deputy Commissioner

of Internal Revenue.

(Filed by the Office of the Federal Register on April 23, 2003, 8:45 a.m., and published in the issue of the Federal Register for April 24, 2003, 68 F.R. 20089)

Notice of Proposed Rulemak- ing by Cross-Reference to Temporary Regulation

Tax Return Preparers — Electronic Filing

REG–141659–02

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary regulation

SUMMARY: In this issue of the Bulletin, the IRS is issuing a temporary regulation (T.D. 9053, on page 914) relating to a paid income tax preparer’s obligation to retain and furnish copies of income tax returns and claims for refund. The text of that temporary regulation also serves as the text of this proposed regulation.

DATES: Written and electronic comments and requests for a public hearing must be received by July 23, 2003.

ADDRESSES: Send submissions to: CC:PA:RU (REG–141659–02), 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 4 p.m. to: CC:PA:RU (REG– 141659–02), courier’s desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, D.C. Alternatively, taxpayers may submit comments electronically directly to the IRS Internet site at www.irs.gov/regs .

FOR FURTHER INFORMATION CONTACT: Concerning the regulation, Richard Charles Grosenick (202) 622– 7940; concerning submissions, LaNita Van Dyke (202) 622–7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in this issue of the Bulletin amend the Income Tax Regula

tions (26 CFR part 1) under sections 6107 and 6695 of the Internal Revenue Code. The temporary regulations eliminate the references to manually signed returns in the regulations under section 6695. In addition, they provide that the Commissioner may prescribe, in forms, instructions, or other appropriate guidance, the manner in which preparers may satisfy their obligations under section 6107 to furnish returns to taxpayers and to retain copies of returns.

The text of those temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary 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 this regulation and, because the regulation does not impose a collection of information on small entities, that 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 business.

Comments and Requests for a Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments, either electronically or on paper (a signed original and 8 copies), that are timely submitted to the IRS. The IRS and Treasury Department specifically request comments on the clarity of the proposed regulations and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing may be scheduled if requested in writing by any person who timely sub

2003–20 I.R.B. 927 May 19, 2003

ated exclusively for religious, charitable, scientific, educational, or certain other specified purposes.

Section 170(c)(2) of the Code provides that the term “charitable contribution” includes a contribution or gift to a domestic organization that is organized and operated exclusively for religious, charitable, scientific, educational, or certain other specified purposes.

Rev. Rul. 71–460, 1971–2 C.B. 231, provides that a domestic organization that conducts some or all of its activities outside the United States is not precluded from qualifying for exempt status under section 501(c)(3). See also Rev. Rul. 68–117, 1968–1 C.B. 251, and Rev. Rul. 68–165, 1968–1 C.B. 253. Rev. Rul. 68–489, 1968–2 C.B. 210, provides that an exempt organization under section 501(c)(3) does not jeopardize its exempt status by distributing funds to organizations not themselves exempt under section 501(c)(3), provided the exempt organization:

retains control and discretion as to the use of the funds;
maintains records establishing that the funds were used for section 501(c)(3) purposes; and
limits distributions to specific projects that are in furtherance of its own exempt purposes.

Rev. Rul. 56–304, 1956–2 C.B. 306, provides that an organization is not precluded from section 501(c)(3) exemption when it makes grants to individuals, provided the distributions are made on a true charitable basis and in furtherance of its exempt purposes. Such organizations should keep adequate records and case histories to show:

the name and address of the recipients;
the amount distributed to each;
the purpose for which the aid was given;
the manner in which the recipient was selected; and
the relationship, if any, between the recipient and

(i) members, officers, or trustees of the organization;

(ii) a grantor or substantial contributor to the organization or a member of the family of either; and

(iii) a corporation controlled by a grantor or substantial contributor.

International Grant-making and International Activities by Domestic 501(c)(3) Organizations: Request for Comments Regarding Possible Changes

Announcement 2003–29

The Internal Revenue Service requests public comment on how it might clarify existing requirements that section 501(c)(3) organizations must meet with respect to international grant-making and other international activities. The IRS is particularly interested in comments on how new guidance might reduce the possibility of diversion of assets for non-charitable purposes while preserving the important role of charitable organizations world-wide.

Background

The attacks of September 11, 2001, focused public attention on the need to take comprehensive measures to prevent terrorism. Investigative and law enforcement initiatives have identified situations in which charitable organizations have been a significant source of terrorist funding. The financing has come not only from United States-based charitable organizations, but also from foreign organizations that receive support directly or indirectly from United States donors. Further, investigative efforts have also identified situations in which diversion of charitable assets occurred without the knowledge of donors.

Statement of Purpose

The IRS is evaluating current guidance with respect to international grant-making and international activities of United Statesbased charities (both public charities and private foundations) to determine whether and to what extent additional guidance is needed to help prevent the diversion of charitable assets for non-charitable purposes and to assure donors that donations are used for their intended charitable purpose.

Guidance addressing standards, controls, and reporting requirements for international giving by U.S. charities has focused more on reducing the risk that charitable assets might be diverted for personal gain. The IRS is concerned that this guidance does not adequately cover the measures charities

should take to protect funds from being used for other non-charitable purposes (including terrorist activities). As a result, the IRS is considering new guidance applicable to public charities and private foundations that clarifies standards and requirements for international grant-making and international activities. The IRS is also considering making revisions to Forms 990, 990–PF, and 1023 to provide for more specific reporting on international grant-making and international activities.

The IRS is interested in learning how domestic charitable organizations conduct their international grant-making and international activities, and receiving suggestions on how existing guidance could be expanded to better address compliance with section 501(c)(3) and other federal tax standards. The IRS is particularly interested in comments on how the existing rules might be improved to help preclude the diversion of assets for non-charitable purposes and assure donors that their contributions are used solely for charitable purposes.

Within the past year, the IRS has issued three other requests for comments that could bear on international grant-making and international activities of charities. In Announcement 2002–87, 2002–39 I.R.B. 624, the IRS asked for public comments on how, among other matters, Form 990 might be improved to better reflect international grant-making activities of exempt organizations. In Announcement 2002–92, 2002–41 I.R.B. 709, the IRS asked for comments on changes to Form 1023. In Announcement 2002–47, 2002–18 I.R.B. 844, the IRS asked for comments on changes to private foundation regulations. The comment period has closed for all three requests. The IRS is aware that members of the public submitted comments in response to those requests that would also be responsive to this request and will take those comments into consideration. However, you may wish to modify or expand those comments to address the specific considerations raised here.

Existing Law

Section 501(a) of the Internal Revenue Code provides for exemption from income tax of organizations described in section 501(c)(3). Section 501(c)(3) describes organizations that are organized and oper

May 19, 2003 928 2003–20 I.R.B.

tax requirements and appropriate for other public charities and private foundations to follow.

How to Comment

Public comments should be submitted in writing on or before July 18, 2003, and should include a reference to Announcement 2003–29.

Comments may be submitted to:

Internal Revenue Service Attn: T:EO:RA:G (Announcement 2003–29) P.O. Box 7604 Ben Franklin Station Washington, DC 20044

Comments may be hand delivered between the hours of 8 a.m. and 4 p.m., Monday through Friday, to:

T:EO:RA:G (Announcement 2003–29) Courier’s Desk Internal Revenue Service 1111 Constitution Ave, N.W. Washington, DC 20224

Comments may also be sent via e-mail to: Tege.eo2@irs.gov

All comments received will be subject to public inspection.

Drafting Information

The principal author of this announcement is Robert Fontenrose of the Exempt Organizations Technical Division. For further information regarding this announcement, contact Mr. Fontenrose at (202) 283– 9484 (not a toll-free call).

Withdrawal of Announcement 99–45; Restoration of Organization on Cumulative List of Organizations Contributions to Which are Deductible Under Section 170 of the Code

Announcement 2003–30

In Announcement 99–45, 1999–1 C.B. 927, the Internal Revenue Service announced that the Abraham Lincoln Opportunity Foundation, of Pine Mountain Georgia, had been deleted from the Cumulative List of Organizations to Which

For private foundations, section 4945 and its underlying regulations impose an excise tax on certain distributions. If a grant is made to another organization that is not a public charity, the excise tax of section 4945 will apply unless the foundation exercises expenditure responsibility with respect to that grant. Expenditure responsibility, as defined in section 4945(h) and the regulations thereunder, means that the foundation must exert all reasonable efforts and establish adequate procedures (1) to see that the grant is spent solely for the purpose for which made, (2) to obtain full and complete reports from the grantee on how the funds were spent, and (3) to make full and detailed reports to the IRS with respect to these expenditures. Section 4945 imposes other specific requirements that private foundations must meet when making grants to an individual in order to avoid making a taxable expenditure.

Rev. Rul. 63–252, 1963–2 C.B. 101, and Rev. Rul. 66–79, 1966–1 C.B. 48, provide guidance as to whether and under what circumstances gifts to domestic charities that subsequently transfer the gifts to foreign organizations are deductible by donors.

Issues for Comment

The IRS requests comments on how domestic charitable organizations conduct their international grant-making and international activities, and whether the existing guidance discussed above provides adequate federal tax standards for these activities. The IRS is particularly interested in comments on how the existing rules discussed above might be improved to help preclude the diversion of assets for noncharitable purposes. While the IRS welcomes all ideas, some possible areas to address are:

What specific practices and safeguards are currently used by public charities and private foundations to ensure that grants to foreign recipients are not diverted for nonexempt purposes and overseas activities are in furtherance of exempt purposes? The IRS would find it particularly helpful to have specific details about the grant-making process, and examples of typical programs, including but not limited to:

a. What kind of due diligence investigation is done in advance of grant-making?

b. What provisions are used by grant agreements to ensure grants are used for their intended purpose?

c. What reports or other mechanisms are used to track the use of grant funds?

d. If a public charity or a private foundation makes repeated grants to the same foreign grantee, how often does it perform renewed due diligence on the grantee?

e. Are grant agreements, reports, and other significant correspondence written or accurately translated into English? Are grant funds disbursed by check? By electronic funds transfer? By cash?

In the aftermath of September 11, 2001, what review or changes in practice have organizations made to ensure that grants are not diverted to support terrorism or other non-charitable activities?
What difficulties have public charities and private foundations encountered in monitoring how international grants are actually used, or how international activities are conducted? Are there particular types of grants, recipients, or activities that are easier to monitor than others?
a. Are there additional requirements that should be added beyond those already specified in Rev. Rul. 56–304, Rev. Rul. 63–252, Rev. Rul. 66–79, and Rev. Rul. 68– 489 to reduce the risk that charitable assets may be diverted to non-charitable purposes? Please also comment on how any burden associated with any new requirements might be mitigated.

b. What specific changes to Forms 990, 990–PF, and 1023 would you recommend to allow for better monitoring of international grant-making and international activities by the IRS, and by other government agencies and members of the public who can review these forms as public documents?

In November 2002, the Treasury Department released “Anti-Terrorist Financing Guidelines: Voluntary Best Practices for U.S.-Based Charities” (search at www.treas.gov ). These guidelines were developed to help a charity reduce the risk that the charity’s funds would be frozen in connection with any ongoing anti-terrorism investigation. Recognizing that some of these voluntary best practices impose additional burdens on charities and may not be directly related to tax administration, the IRS is nevertheless interested in learning which of the best practices specified in the guidelines organizations currently use. The IRS is also interested in learning whether these currently used best practices are useful in achieving compliance with federal income

2003–20 I.R.B. 929 May 19, 2003

Boys & Girls Club of Assumption,

Contributions Are Deductible Under Section 170 of the Internal Revenue Code of 1986. Announcement 99–45 is hereby withdrawn. The Abraham Lincoln Opportunity Foundation will be treated as having been on the Cumulative List retroactively for all periods that it was in existence.

Foundations Status of Certain Organizations

Announcement 2003–31

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:

108th Street Tae Kwon Do Inst., Inc., New York, NY Abondia Center for Public Dialogue

Alice in Kids World Learning Center,

Tioga, LA Bear Creek High School Spirit Boosters

N. Chicago, IL Aliza Brandwine Center for Parent

Infant Development, Inc., Baltimore, MD All-Star Boys Competitive Gymnastics

Training Fund, Spring, TX Alliance for Democracy, Waltham, MA Alliance of Harari Volunteers, Inc.,

Napoleonville, LA Brazos Valley Community Partners, Inc.,

Bryan, TX Brooke High Cheering Booster Club,

Owners, Inc., Ocean Isle, NC Buchanan Basketball Foundation,

Follansbee, WV Brownfield Revival Ministries,

Silver Spring, MD Alpha Education Fund, Seattle, WA American Artists Relief Organization

Dunbar, WI Brunswick Area Responsible Canine

Network, Inc., New York, NY American Collectors Association of

Texas Educational Foundation, Austin, TX American Institute for Global Studies,

Grundy, VA Buffalo Urban Arts, Buffalo, NY California Association of Black Lawyers

Foundation, Los Angeles, CA California Sports High School Hall of

Inc., Byron, GA American Institute of Advanced Drivers,

Fame, Palm Desert, CA Calumet Magic Girls Softball, Ltd.,

Hammond, IN Camp Ravencliff Corporation,

Malibu, CA Amputee Assistance Association, Inc.,

El Sobrante, CA Campus Renewal Ministries,

San Diego, CA Angels Door, Chicago, IL Armstrong Cooper Basketball, Inc.,

Plymouth, MN Art-Works Childrens Art Museum &

Cedar Park, TX Candelighter North Texas Childhood

Resource Center, Fox Lake, IL Artspace at Tri-Main, Inc., Buffalo, NY Asian American Education & Heritage

Foundation, New York, NY Athletic Training for Sports Excellence,

Cancer Foundation, Dallas, TX Carbon County International Folkfest,

Helper, UT Cardinal Booster Club, Akron, OH Catalyst, Ann Arbor, MI Cedar Grove High School Association of

Parents & Teachers, Inc., Cedar Grove, NJ Centennial Elementary Parents in Action,

Foster City, CA Axxis Performing Arts Association,

Pico Rivera, CA Ballet Theatre Dallas, Richardson, TX Band of Indians Council, Inc.,

Evans, CO Center for Integrated Infrastructure

Strategies, Inc., Parker, CO Central Jersey Mustangs, Inc.,

N. Brunswick, NJ Channel Zero, Incorporated,

Education & Reflection, Minneapolis, MN Accelerated Music Program, Inc.,

Club, Lakewood, CO Believing Ground Ministries,

St. Louis Park, MN Child Safe Alliance, Inc.,

Lakewood, OH Children of the Sun Guidance Center,

Inc., Columbus, OH Childrens Literature Connection, Inc.,

Portland, OR Acheinu, Inc., Los Angeles, CA Action Council of the Blind of Missouri,

Cahokia, IL Ben Davis High School Hockey Club,

Indianapolis, IN Bethel Youth Basketball Association,

St. Louis, MO Action for the Betterment of Our

Community, Sturgis, SD Active 20–30 United States and Canada,

Bethel, OH Bicicletta Co., Chicago, IL Bilad as International Center,

Houston, TX Blue River Riders, Mohave Valley, AZ Blue Star Performance Company,

Schenectady, NY Christian Singles Fellowship, Inc.,

Altamonte Springs, FL Chuck Reynolds Ministries, Inc.,

Oklahoma City, OK Cincinnati Public Theater, Inc.,

Cincinnati, OH Circus Historical Society, Inc.,

Tucson, AZ Adam Clayton Powell Jr. Memorial

Committee, Inc., New York, NY Afrika is Home Coalition, Inc.,

New York, NY After School, Denver, CO Aids Living Remembrance Project,

Petersburg, VA Boy Scouts of America Troop 574, Inc.,

Chicago, IL Booker T. Washington High School

Band Boosters, Inc., Pensacola, FL Bosnia Educational Alliance,

Columbus, OH Clarice Community Service Programs,

Chicago, IL Akoma, Rochester, NY

St. Louis, MO

Dallas, TX

May 19, 2003 930 2003–20 I.R.B.

Greater Oneonta Swim Team, Inc.,

Oneonta, NY Guidance & Orientation for Future

Colors of Love, Inc.,

Yorktown Heights, NY Community Incentives for Teaching

Entrepreneur Association at the

Excellence Foundation, Costa Mesa, CA Community Justice Assistance Services,

University of Utah, Salt Lake City, UT Epsilon XI Lambda Education

Foundation, Greenville, MS Esteem Team, Inc., New York, NY Faith Foundation, Champaign, IL Faith in Action of Lafayette, Inc.,

Achievement & Recognition, Inc., Staten Island, NY Gulf Coast Interventional Radiology

Cornelia, GA Hampton Recital Foundation,

Phoenix, AZ Companion Cat Adoption Agency,

Society, Inc., Pensacola, FL Habersham Raider Tip-Off Club,

Flint, MI Compel Mens Resource and Referral

Lafayette, LA Family Holdings, Belleville, MI First Night San Luis Obispo,

Center, Inc., Wyandanch, NY Concerned Filipino Americans of

San Francisco, CA Harlem Opera, Inc., New York, NY Harvard Global Peace Project,

Boston, MA Health Beat, Inc., White Plains, NY Health Education Aids Liaison San

California, Carson, CA Connecticut Firefighters for Christ, Inc.,

San Luis Obispo, CA Floral Park Sports Association, Inc.,

Floral Park, NY Florence Community Development

West Haven, CT Cordell Jenkins Charitable Enterprises,

Inc., Los Angeles, CA Cornerstone International Youth Camp

Corporation, Florence, SC Florida Gold Coast Youth Hockey

Francisco, Inc., San Francisco, CA Heartland Community Foundation,

Overland Park, KS Heels Down Riding Program, Inc.,

Foundation, Atlanta, GA Cornerstone Masonic Historical Society,

League, Inc., Pompano Beach, FL Foundation for Children of the Future,

Salinas, CA Foundation of America, Peoria, AZ Franklin Wrestling Club, Inc.,

Monroe, NY Cosmopolitan Community Center of

Franklin, TN French American Friendship Foundation,

Miami, Inc., Miami, FL Cottage Ambulance, Inc.,

Big Horn, WY Heide Educational Center, Inc.,

Los Angeles, CA Hellenic Orthodox Christian Brotherhood

Mission of Jesus, Flushing, NY Help the Children & Widows, Inc.,

Carbondale, PA Cottage City Civic Association,

Cottage City, MD Crossroads Gospel Music & Ministries,

Inc., New York, NY Friends of Eastpark, Inc.,

Philadelphia, PA Friends of Haddo, Inc., New York, NY Friends of Hungarian Higher Education

Foundation, Washington, DC Friends of Spruce Creek Preserve, Inc.,

Inc., Mobile, AL Henry McNeal Turner Cultural Center,

Fairfax Station, VA Helping Hands Ministry Foundation,

Staten Island, NY Hiddenite Parent Teachers Organization,

Lubbock, TX Dean Park Historic District, Inc.,

Fort Myers, FL Dearborn Athletic Association,

Hiddenite, NC Highland Park Cheerleading Booster

Dearborn, MO Deep Ellum Center for the Arts,

New Smyrna Beach, FL Friends of the Los Angeles Childrens

Club, Inc., Dallas, TX Hispanic Cultural Center of Midland,

Dallas, TX Dickson Memorial Hospital Preservation

Ballet Theatre, Los Angeles, CA Friends of the Park County Fair,

Powell, WY Friends of Toras Simcha,

Society, Inc., Paragould, AR Directions, Memphis, TN Documentaries for the Betterment of

New York, NY Frontier Medical Services,

Midland, TX Hockey Future Ohio, Inc.,

Educational Opportunity, Inc., Quincy, MA Dog Savers Rescue, Inc.,

Birmingham, AL FSU Foundation, Concord, CA Ft. Stockton Sports Booster Club,

Westerville, OH Horses for Therapeutic Riding, Inc.,

Muir Beach, CA Dolphin Basketball Boosters,

Boca Raton, FL House Calls, Ltd., Fernley, NV Houston Institute of Cultural Studies,

Houston, TX Howland Playground Project, Inc.,

Warren, OH Huntington Beach Art Center,

Dana Point, CA E Kuppa Kakou I Ka Uhane O Ka

Olelo, Puhi, HI Earl Beaver Childrens Foundation,

Ft. Stockton, TX Fullerton Childrens Repertory Theater,

Chicago, IL Earth Right, San Diego, CA East Fairmont Gold and Blue Club,

Inc., Fullerton, CA Gems Foundation, Glenburn, ME Georgia Deaf Awareness, Ltd.,

Dunwoody, GA Gibson County High School Band

Santa Ana, CA Imaginary Friends Puppet Troupe, Inc.,

Alpharetta, GA Institute for Korean-American Culture,

Inc., Flushing, NY Institute for Urban Gardening, Inc.,

Tempe, AZ International Social Services Center,

Norwalk, CA Iowa Digital Education Association,

Fairmont, WV East Islip Student Athletes Booster Club,

Boosters, Dyer, TN Glory Bethel, Inc., Baton Rouge, LA Granite City Junior Olympic Volleyball

Association, St. Cloud, MN Greater Baton Rouge Childrens Chorus,

East Islip, NY Eastern Shepherd Drug Rehabilitation

Ltd., Anamosa, IA

Center, Inc., Patrick Springs, VA Edisto - Orangeburg Medical Alliance,

Inc., Baton Rouge, LA Greater Glens Falls Swim Club, Inc.,

Queensbury, NY

Orangeburg, SC

2003–20 I.R.B. 931 May 19, 2003

Jacob Bookwalter Foundation,

New Leaf Guild, Alice, TX New Point, Ann Arbor, MI New Schools Project, Inc., Austin, TX New York State Prekindergarten

Richmond, VA North Shore Community Theatre,

Kankakee, IL James Monroe Parent & Teacher

Louisiana Missouri Scouts,

Organization, San Leandro, CA Jamie Mastruserio Memorial Foundation,

Louisiana, MO Lowell Youth Soccer Association,

Lowell, MA Lucas Samuel Freund Foundation,

New York, NY Lyric West Theatre Company, Inc.,

Middletown, OH Jelly Educational Theater, Inc.,

Administrators Assoc., Inc., Tarrytown, NY Noahs Children Pediatric Hospice, Inc.,

Buxton, NC Jesus Saves Ministries, Inc.,

Haleiwa, HI Northern Nevada Roller Hockey League

Youth, Reno, NV Omaha Public Theatre in Our

Lakeland, FL Jobs for Teens, Inc., Medford, OR Jonathan Robertozzi Memorial Fund,

Wellesely, MA Main Street Morrilton, Inc.,

Morrilton, AR Maine Dads, Inc., Harmony, ME Making Life Choices, Inc.,

Mason City, IA Marshall Main Street Program,

E. Brunswick, NJ Kali Search Center, Inc.,

Neighborhoods Option, Ohama, NE Omo Oduduwa of Miami Valley, Inc.,

East Rochester, NY Kalispell Regional Medical Center

Xenia, OH Orland Township Scholarship Fund,

Orland Park, IL Otero Elementary School PTO,

Foundation, Inc., Kalispell, MT Keren Rachamim, Inc., Brooklyn, NY Key Foundation Resource Services, Inc.,

Marshall, IL Maryland All-Star Twisters, Inc.,

Glen Burnie, MD McAfee & Taft Community Foundation,

Inc., Oklahoma City, OK Mellenium Organization, Inc.,

Dallas, TX Kids With a Cause, Inc.,

Colorado Springs, CO Over the Rainbow Foundation, Inc.,

Orlando, FL Pacific Surge Ministries, Le Mesa, CA Palm Springs Animal Wellness Services,

Los Angeles, CA Kidzville Friends of the Playground,

Langley Park, MD Mesrobian Foundation, Montebello, CA Miami All Stars Cultural Association,

Inc., Miami, FL Mid City Home Owner Association,

Palm Springs, CA Parent-to-Parent of the Capital Area,

Inc., Zanesville, OH Konigswort, Incorporated,

St. Petersburg, FL Kory Pope Foundation, Inc.,

Inc., Tallahassee, FL Parksburg Childrens Charities,

Parkesburg, PA Parkside Development Foundation,

Boynton Beach, FL Lakeside Terrace Resident Council,

St. Louis, MO Middle School Parent Teacher

Organization, Shrewsbury, MA Middle Tennessee Womens Club,

Urbana, IL Lakewood Elementary PTO,

Philadelphia, PA Partners in Education of Tuckahoe, Inc.,

Gifted Talented, Pasadena, TX Pathways to Eros Foundation,

Buchanan, TN Laughing Willows Productions, Inc.,

Nashville, TN Milford Midget Football, Inc.,

Culver City, CA Leadership Granbury, Granbury, TX Learning Center of Southeastern Ohio,

Dallas, GA Miracles of Love, Inc., Morehead, KY Montomery County Handicapped

Association, Inc., Washington Grove, MD Moscow State University Support

Tuckahoe, NY Pasadena Parent Advocates for the

Inc., Zanesville, OH Lenoir County Aids Task Force,

Culver City, CA Perry Link Memorial Humane Society,

Inc., Jasper, TN Pharmacists Recovery Network, Inc.,

Grifton, NC Liberty City Outreach Program, Inc.,

Miami, FL Life Achievement, Inc., Portland, OR Lighthouse Youth Center of Palacios,

Palacios, TX Lincoln County Correctional Officers

Foundation, Inc., San Franscisco, CA Mothers Center of the South Shore, Inc.,

Dana Point, CA Museum of the Quest for Social Justice,

Sayville, NY Mulling Career Foundation, Inc.,

Atlanta, GA Municipal Forum Youth Education Fund,

Kingston, NY Pineywoods Bird and Bloom Club,

Livingston, TX Pleasant Ridge Kids Place,

Knoxville, TN Pleasant View Parent Boosters,

Lansing, MI Pond Gap Elementary PTO,

Association, Lincolnton, NC Little Peoples Place, New York, NY Living Rosary of Saint Anne,

New York, NY Museum of Architecture,

Caledonia, MI Lords Ministry of Helps, Hilltop, MN Los Angeles Childrens Ballet Theatre,

Inc., Pittsburgh, PA Nashua Panthers Youth Hockey

Association, Nashua, NH National College Days, Inc., Keller, TX National Immigrant Center 1, Inc.,

Knoxville, TN Portsmouth City Soccer Club, Rye, NH Prairie Brass Band Association, Inc.,

Crystal Lake, IL Program for Academic & Language

Culver, CA Los Angeles Dynamo Youth Hockey,

Services, Rancho Cucamonga, CA Providence Community Development

Inc., Studio City, CA Los Angeles First Preschool Education

Long Island City, NY New Beginnings Career Development,

Dallas, TX New Jersey Chinese Computer

Corp., Brooklyn, NY Pyramid, Inc., New York, NY Ray Chinese School, Naperville, IL

Center, Inc., Los Angeles, CA Los Angeles Hockey Officials

Association, Los Angeles, CA

Professionals Society, Inc., Denville, NJ

May 19, 2003 932 2003–20 I.R.B.

Womens Education & Research Institute,

Hazel Crest, IL Womens Forum Foundation, Inc.,

Razz Ma Tazz Musical Review

Company, Inc., Greensboro, NC Recovery Management Service Co., Inc.,

Southern Maine Association for the

Education of Young Children, S. Portland, ME Soweto Academy, Newark, NJ Spalding County Outreach for

Coral Springs, FL Restoration Educational Media

Chesapeake, VA World Christian Network, Flushing, NY World Craft Alliance, Inc., Boise, ID World Firefighters Assistance League,

Festival, New York, NY Worthington Rugby Club, Inc.,

Corporation Ministries, Scottsdale, AZ Rexburg Boxing Club, Rexburg, ID Rhombus Theatre, Minneapolis, MN Richmond Alumnae Delta House

Inc., Salt Lake City, UT World Peace & Environmental Film

Foundation, Inc., Richmond, VA Richmond Youth Chamber Collegium,

Re-Establishment and Education, Griffin, GA Special Technical Aquatic Rescue,

Greenwich, CT Spurwink Endowment Corporation,

Portland, ME Stage First Cincinnati, Inc.,

Newport, KY Stemley Volunteer Fire Department, Inc.,

Worthington, OH Wyandotte Village Neighborhood

Association, Kansas City, KS Young Musicians of Central New York,

Inc., Hanover, VA Rim Youth Football, Inc.,

Lake Arrowhead, CA Rockaway Township Education

Association Philanthropic Fund, Inc., Boonton, NJ Rural Housing for the Elderly II, Inc.,

Pell City, AL Stings Softball Booster Club, Inc.,

Victoria, TX Sultan Senior Parents Association,

Sultan, WA Sunny Joe White Foundation, Inc.,

Canastota, NY Youth Alive, Inc., Kissimmee, FL Youth Connection, Forest Lake, MN Youth Recycling, Granada Hills, CA Ziegler Memorial Foundation,

Manchester, NH Santa Cruz Campus Bike Center,

Boston, MA Sunnyside Youth, Inc., Wichita, KS Susitna Amateur Hockey Association,

Canyon Lake, CA

Santa Cruz, CA Satellite Arts, Incorporated,

Stony Brook, NY Schoolhouse Resource Center, Inc.,

Wasilla, AK Synesthetic Winter Percussion,

Kokomo, IN Team Go Foundation, Inc.,

Durham, NC Science Coalition of New Jersey,

North Brunswick, NJ Sea Hawks Swim Team of Metro East,

Inc., Belleville, IL Self Help Initiative, Silver Spring, MD Shady Spring Elementary School PTO,

Shady Spring, WV Showbiz, Scranton, PA Sickle Cell Foundation of New Jersey,

Manchester Center, VT Teen-Hope USA, Inc., Baytown, TX Tender Loving Care Corporation,

Community Association, Thousand Island Park, NY Torah Learning Center, Monsey, NY Touchdown, Inc., Detroit, IL Valley Vikings Youth Football

Birmingham, AL Tender Loving Care Homes, Inc.,

Richmond, VA Theatre America, Inc., New York, NY Thousand Island Park Tabernacle

Inc., Newark, NJ Sierra Rosa Housing Corp.,

Los Angeles, CA Sisters in the Name of Love,

Eastpointe, MI Sisters of Color, Inc., Longview, TX Sisu Productions, Beverly Hills, CA Slammers Futbol Club,

Ville Platte, LA Virgin Islands Library Association,

Organization, San Antonio, TX Village Garden Club of Sewickley, Inc.,

Newport Beach, CA Slavik Missionary Society, Wheaton, IL Snoqualmie Pony League Association,

Pittsburgh, PA Ville Platte Dixie Youth, Inc.,

Christiansted, VI Voices Against Violence,

Snoqualmie, WA So Kapi Ka Ya Yis Skat Tsii Yi Ta to

Run a Good Race, Browning, MT Software Commercialization and

Association, Trenton, NJ West Africa Womens Association USA,

Sacramento, CA Washington Township Baseball

Innovation Center, Inc., College Sta, TX Solon Stars Swim Club, Solon, OH Soma Foundation,

Inc., Mineola, NY Westchester Council on Crime and

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.

Second White Paper on Future of Employee Plans Determination Letter Program

Announcement 2003–32

The Service has published on the Internet a second white paper on the Employee Plans determination letter program.

The Service has maintained an Employee Plans determination letter program for many years, essentially in its present form. Under this program, the Employee Plans (EP) component of Tax Exempt and Government Entities (TE/GE) issues letters of determination regarding the qualified status of retirement plans under § 401(a) of the Internal Revenue Code and the status of related trusts under § 501(a). Determination letters provide assurance to plan sponsors, participants and other interested par

South San Francisco, CA Sonshine Haven, Inc., Hillsborough, NC Soul Rep Theatre Company, Dallas, TX

Delinquency, Inc., White Plains, NY White Plains Masonic Historical Society,

White Plains, NY Woga Parents Club, Plano, TX

2003–20 I.R.B. 933 May 19, 2003

Alternatively, comments may be hand delivered between the hours of 8:30 a.m. and 4:00 p.m. to:

CC:PA:RU (Announcement 2003–32) Courier’s Desk Internal Revenue Service 1111 Constitution Avenue, NW Washington, DC

Written comments should be submitted by September 2, 2003. All written comments will be open to public inspection.

DRAFTING INFORMATION

The principal author of this announcement is James Flannery of Employee Plans, Tax Exempt and Government Entities Division. For further information regarding this announcement, please contact the Employee Plans’ taxpayer assistance telephone service at: 1–877–829–5500 (a toll-free number) between the hours of 8:00 a.m. and 6:30 p.m. Eastern Time, Monday through Friday. Mr. Flannery may be reached at 1–202–283–9888 (not a toll-free number).

ties that the terms of employer-sponsored retirement plans satisfy the qualification requirements of the Code. Qualified plans offer significant tax advantages to employers and participants.

EP has undertaken a project to consider the long-term future of the determination letter program. The question the Service is considering, and which it has asked the public to consider, is whether there might be better alternatives to the present determination letter program.

As a preliminary step, in August 2001, EP published on the Internet a white paper outlining several options it had identified as possible alternatives to the present program. The second white paper, which has just been released, evaluates the public comments on these options. While recognizing the importance of the Service continuing to issue determination letters for qualified plans, the second white paper explores further how this process might be improved. One of the options outlined in the first white paper was a system of staggered remedial amendment periods. Such a system would introduce regular determination letter cycles for plan sponsors and would even-out determination letter workload from year to year for EP and practitioners. The second white paper explains in greater detail how such a system could work. The second white paper also discusses the possibility of requiring plans to

be updated annually. An annual plan update requirement could be established either without making other changes to the current determination letter program or in combination with a system of staggered remedial amendment periods. In the latter case, as described in the second white paper, plan sponsors would not need to request determination letters more frequently than every five years to have reliance even though plan amendments could be required every year.

The second white paper is entitled The Future of the Employee Plans Determina- tion Letter Program: Evaluation of Pub- lic Comments and Additional Explanation of Staggered Remedial Amendment Pe- riod Option. It may be downloaded from the Internet at: http://www.irs.gov/ep .

The Service invites interested parties to comment on the ideas in the second white paper. In particular, commentators are asked to address several questions that are listed at the end of the white paper. Written comments should reference Announcement 2003–32 and should be submitted, preferably in duplicate, to the following address:

CC:PA:RU (Announcement 2003–32),

room 5226 Internal Revenue Service POB 7604 Ben Franklin Station Washington, DC 20044

May 19, 2003 934 2003–20 I.R.B.