Part IV. Items of General Interest

Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations

Guidance Under Section 1502; Application of Section 108 to Members of a Consolidated Group

REG–153319–03

AGENCY: Internal Revenue Service (IRS), Treasury.

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

SUMMARY: Temporary regulations (T.D 9098) in this issue of the Bulletin amend the Income Tax Regulations relating to section 1502. The text of those regulations also serves as the text of these proposed regulations.

DATES: Written or electronic comments must be received by January 12, 2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–153319–03), room 5203, 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:LPD:PR (REG–153319–03), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, taxpayers may submit comments electronically directly to the IRS Internet site at www.irs.gov/regs .

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Amber Renee Cook or Marie C. Milnes-Vasquez at (202) 622–7530; concerning submission of comments, LaNita Van Dyke at (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

Temporary regulations in this issue of the Bulletin amend 26 CFR part 1 relating

to section 1502. The text of the temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments.

Special Analysis

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. Further, 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 on the fact that these regulations will primarily affect affiliated groups of corporations that have elected to file consolidated returns, which tend to be larger businesses. Moreover, the number of taxpayers affected and the average burden are minimal. Accordingly, 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 its impact on small business.

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. The IRS and Treasury Department specifically request comments on the clarity of the proposed rules and how they may 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 hearing will be published in the Federal Register .

Drafting Information

The principal author of these regulations is Marie C. Milnes-Vasquez of the

Office of Associate Chief Counsel (Corporate). However, other personnel from the IRS and Treasury Department participated in their development.

- - - -

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 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Section 1.1502–28 also issued under 26 U.S.C. 1502. - * *

Par. 2. Section 1.1502–28 is added to read as follows:

§1.1502–28 Consolidated section 108.

[The text of this proposed section is the same as the text of §1.1502–28T published elsewhere in this issue of the Bulletin].

Mark E. Matthews, Deputy Commissioner for Services and Enforcement .

(Filed by the Office of the Federal Register on December 10, 2003, 8:45 a.m., and published in the issue of the Federal Register for December 11, 2003, 68 F.R. 69062)

Foundations Status of Certain Organizations

Announcement 2003–89

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.

December 29, 2003 1256 2003-52 I.R.B.

Emergency Mental Health Technicians

Associate Group, Inc., Belgrade, MT Enstrom Foundation, Julian, CA Eternity Now Ministries, Monument, CO Eye, Ear, Nose and Throat Foundation,

Metairie, LA Faith Community Development

Corporation, Inc., Dayton, OH Far West Historical Society, Dallas, TX Feigenbaum Foundation, Inc.,

Chevy Chase, MD Feline Society, Inc., Birmingham, AL First American Enterprises, Inc.,

West Palm Beach, FL Focus on Leadership, Incorporated,

Gainesville, FL Foundation for Entrepreneurship and

Strategic Partnering in the Americas, Inc., Miami, FL Foundation for Science Technology

Education and Research, Inc., New York, NY Friends of the Biltmore, Inc.,

Baltimore, MD Giving Back, Inc., Chicago, IL Global Institute for Small Business

Corporations, Midlothian, VA Globalearn, Los Gatos, CA Gods House of Deliverance,

Lancaster, CA Good Shepherd Foundation, Inc.,

Fort Wayne, IN Gordon B. Hancock Memorial

Foundation, Richmond, VA Grace Unlimited, Inc., Anderson, SC Gray Cup, Inc., Jackson, MS Greater Works CDC, Philadelphia, PA Greenville Educational Enrichment

Foundation, Greenville, TX GSM Community Development,

Houston, TX Gulf Coast Therapeutic Foster Parent

Association, Mobile, AL Hartford Botanical Garden Planning

Committee, Inc., Hartford, CT High Point Community Pride Association,

Clearwater, FL House of Corinth, Houston, TX Immaculate Heart of Mary Shrine of

Abbeville, Abbeville, LA Imperial County Sheriffs Activities

League, Inc., Seeley, CA Impressions of Grace A B G, Inc.,

Baldwin, CA Infinite Blue Productions, Inc.,

Emeryville, CA Inland Rivers Ports and Terminals

Education Program, Jackson, MS

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:

120 Gerry Street Housing Development Fund Corporation, Brooklyn, NY Aerospace Education Alliance, Inc.,

Homestead, FL Aircraft Enterprises, Inc., Lafayette, GA Alliance for Life International,

Laguna Niguel, CA American Friends of Siach Simcha,

Cleveland, OH American Samoa Equestrian Federation,

Pago, Pago, AS American Voter, Henderson, NV Anil Gandhi MD Charitable

Corporation, c/o Harold Drooz, Norwalk Town Square, CA Animal Therapy Association,

Barnesville, MD Anoka Tornado Hoops, Inc., Anoka, MN Applehouse Retreat, Inc., Goldsby, OK Asklepia Foundation, Grants Pass, OR Association of the Triumphant Vjara,

Keno, OR Atone Youth Program, Inc., Brockton, MA Automotive Repair Coalition Foundation,

Sacramento, CA Bachbridge Limited, Riverside, CA Batavia Main Street, Batavia, IL Beautiful Camino Real, Inc.,

Boca Raton, FL Black Men & Women Entrepreneur

Support Association, Brooklyn, NY Black-White Productions, Inc.,

Oak Park, IL Blackhawk Baseball, Inc., Argyle, TX Blessed Sacrament School Alumni

Association, Newark, OH Blooming Society, Lake Worth, FL Borden K-12 Schools PTO, Borden, IN Bridges for Jesus Ministry, Falfurrias, TX Business Prize, Las Vegas, NV Calvary International Missions, Inc.,

Tucson, AZ Caribbean American Legal Defense Fund,

Inc., New York, NY C.C.A.P., Greencastle, PA Center for Innovation in Health Facilities,

Houston, TX Center for Justice, Spokane, WA Central and Eastern European Schools

Association, Princeton, NJ C E P A, Inc., Dallas, TX

Cerebral Palsy Commission,

Los Lunas, NM C H A M P S, Inc., Memphis, TN Changing the World, Inc., Houston, TX Charis Charitable Foundation,

Houston, TX Chasdei Shlomo Trust, New York, NY Chesterfield Education and Training

Institute, Seattle, WA Chicago Area Program for Economic

Development and Adult Education, Chicago, IL Child’s Night Inn, Inc.,

Newport News, VA Christian Family Foundation,

Water Valley, MS Clearview Terrace II, Inc., Hanover, PA Closing the Gap, Inc., Charleston, MA Coats Missions and Education Ministries,

Mesquite, TX Community Enrichment Association,

New Smyrna Beach, FL Community Health Resource Center,

Richmond, VA Community Youth Initiative Advisory

Board, Inc., Dillon, MT Competitive Aquatic Support Foundation,

Inc., Longwood, FL Conner Community Development

Corporation, Connersville, IN Construction Career Training, Inc.,

West Des Moines, IA Corona Norco Day of the Child

Committee, Corona, CA Corporate Assistance Program,

Sherman Oaks, CA Courtlandt Masonic Historical Society,

Peekskill, NY Crimebusters, Inc., Hendersonville, TN Danse Mirage South, Inc., New Hope, PA David & Goliath International Ministries,

Fountain Hills, AZ Day Star Community Development

Corporation, Dix Hills, NY Death Valley Childrens Support Group,

Death Valley, CA Denton Baseball, Inc., Denton, TX Desmond Institute, Fresno, CA Dialysis Patients Association – Warwick,

Warwick, RI Dubay Performing Arts & Cultural Center

of Polson, Inc., Polson, MT Earth Kids Foundation, Carlsbad, CA Eastern Missouri Shotokan Karate

Association, St. Louis, MO Edward B. Howell Memorial Scholarship,

Watsonville, CA ELIYAH, Phoenix, AZ

2003-52 I.R.B. 1257 December 29, 2003

Polisci Financials, Inc., Villanova, PA Precision Pilgrim Ministries,

Birmingham, AL Primary Rendition Educational

Productions, Chapel Hill, TN Ps Theatre Works, Inc., Wayland, MA Public Housing Advocacy for Disability

and Diversity, Inc., Atlanta, GA Reis Foundation, Inc., Los Angeles, CA Reuben Kadish Art Foundation,

New York, NY Rob Palmer Blue Holes Foundation,

Charleston, SC Salvatore Martirano Foundation,

Urbana, IL San Diego Environmental Foundation,

Inc., San Diego, CA Sarah Allen Services, Inc.,

Philadelphia, PA Savannah State Student Athletic Assoc.,

Inc., Savannah, GA Science Education Outreach, Inc.,

Princeton, NJ Senior Leaders Professional Workshop,

Clio, MI Seva International, Cerritos, CA Shalom Ministries, Inc.,

Prince George, VA Shelly Dorgan Memorial Scholarship

Fund, Edina, MN Shelter Options, Inc., Costa Mesa, CA Shree Chakradhar Charitable Foundation,

Inc., Valrico, FL Somebody Cares Community Center, Inc.,

Ft. Lauderdale, FL Sonshine All-Star Booster Club,

Conway, AR South Florida Board of Realtists

Foundation, Inc., Miami, FL Space Development Institute, Inc.,

Poway, CA Spark Foundation, Fairfax, VA Sparkle Industrial Services, Dolton, IL Spectrum Theatre, Charlottesville, VA St. Francis Youth Hockey Association,

E. Bethel, MN Stanislaus Family Daycare Association,

Modesto, CA Starlight Educational Foundation, Inc.,

Tracy, CA Stars in the Forest Wildlife Rehabilitation,

Inc., Manhasset, NY Start Here, Blacksburg, VA Summit Skating Club, Inc.,

Dimondale, MI Surgtrain, Galveston, TX Teen Mercy, Scranton, PA

Institute for Infrastructure Asset

Management, Inc., Troy, NY Institute for Telehealth, Denver, CO International Cultural Alliance, Inc.,

Daly City, CA International Shinto Foundation, Inc.,

New York, NY Its About Time Committee,

Sacramento, CA Jadid Urdu Tehrik, Inc., Staten Island, NY Junction City Swim Team,

Junction City, OR June Foundation for Prenatal Maternal

Health, Inc., Cumberland, MD Junior Auxiliary of Indianola,

Indianola, MS Kamp Kindness, Inc., Bowie, MD Kandid Kids, Inc., Los Angeles, CA Kelsey Creek Sanctuary, Inc., Gilmer, TX Kennedy Nordic Booster Club,

Bloomington, MN Keystone Oaks Cheerleading Association,

Pittsburgh, PA Kids Love Gymnastics Center,

San Diego, CA Kids World Family Day Care,

Compton, CA Kimberlys Foundation, Inc.,

New York, NY La Jolla Jaguars Hockey Association,

San Diego, CA Labor of Love International, Inc.,

Miami Beach, FL Langford School Foundation,

Langford, SD Las Vegas Kite Club, Las Vegas, NV Latter Day Messiah, Incorporated,

Detroit, MI Laymen for Christ Ministries, Inc.,

Oklahoma City, OK Let the Healing Begin, Inc.,

Hempstead, NY Locks of Love, Inc., Hayward, CA Loma Vista Inn, Inc., Santa Barbara, CA Louisa Community Development

Corporation, Incorporation, New Orleans, LA LPI Charities, Inc., Chicago, IL Lydia Whitney Foundation, Inc.,

Collinsville, CT Marana Unified School District PTO,

Marana, AZ Maritime Heritage Project,

San Anselmo, CA Marshalltown Community School District

Foundation, Marshalltown, IA Mary & Elizabeth Crisis Pregnancy

Center, Inc., Toano, VA

Melba & Friends, Urbana, IL Michigan Antique Fire Equipment

Preservation Group, Ann Arbor, MI Middleton Center, Inc., Detroit, MI Montgomery Housing, Inc.,

Gaithersburg, MD Morton Mustang Hockey Club, Inc.,

Berwyn, IL Mothers Opposed to Mistreatment of

Minors, Inc., Amarillo, TX Mount Hope Economic Development

Corporation, Warren, RI Mount Lebanon Travel Hockey

Association, Inc., Pittsburgh, PA National Free Flight Society,

Millcreek, WA National Infantry Foundation, Inc.,

Columbus, GA National Urban Alliance for Effective

Education, Inc., Valley Stream, NY New Dy Aero-Medical Foundation, Inc.,

Snellville, GA New Hampshire Association of Public

Accountants Educational Foundation, Londenberry, NH New Haven Shelter, Los Angeles, CA New Union Education Project, Inc.,

Cambridge, MA Nim Yan Choi Scholarship Foundation,

San Gabriel, CA North American Affordable Housing

Initiative, Inc., San Antonio, TX North Carolina Life of Rehabilitation,

Inc., Charlotte, NC Northeast Texas Search Team, Inc.,

Texarkana, TX Northfield Villa Foundation, Inc.,

Scottsbluff, NE Northwest Colorectal Foundation,

Seattle, WA Northwest Region of the William Glasser

Institute, Newport, WA Oaks of Righteousness, Fort Mill, SC Ontario Youth Sports, Inc., Crestline, OH Opportunity Enrichment Services, Inc.,

Austin, TX Outer Mission Development Corporation,

San Francisco, CA Pennies for the Homeless,

Albuquerque, NM Perpich Center for Arts Education

Foundation, Golden Valley, MN Physics Intuition Applications, Inc.,

Woodland Hills, CA Players Development Academy Corp.,

Bernardsville, NJ Police Athletic League of Palm Springs,

Palm Springs, FL

December 29, 2003 1258 2003-52 I.R.B.

Thomas Worthington and Worthington

Kilbourne Ice Hockey Boosters, Columbus, OH Tom Kaney Benevolent Medical Fund,

Inc., Tampa, FL Tony Ferro Scholarship Fund,

Nederland, TX Topcoats Booster Club, Inc.,

The Colony, TX Towel Ministries, Inc., Spring, TX Toy Soldier and Model Museum,

Hornell, NY Traveling Classroom Foundation,

Kenmore, WA Triangle Learning Foundation,

Chapel Hill, NC United Affordable Housing, Inc.,

St. Petersburg, FL United Pet Foundation, New York, NY Universal Studios Archives Foundation,

New York, NY Violence Prevention Education,

Minneapolis, MN Visions of the Soul V O T S, Inc.,

Los Angeles, CA Warner G. Leppin Foundation, Inc.,

Winslow, AZ Waterstown Masonic Historical Society,

Waterstown, NY Western Community Tae Kwon Do Fund,

Inc., Royal Palm Beach, FL Western Institute for Nature Resources

Education and Policy, Rickreall, WA Why We Were Chosen Foundation

Corporation, Ft. Lauderdale, FL Wilmer-Louise Thornton Academy,

Detroit, MI Wings of Love, Memphis, TN Youth Character Development, Inc.,

Dallas, TX

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.

Notice of Disposition of Declaratory Judgment Proceedings Under Section 7428

Announcement 2003–90

This announcement serves notice to donors that on April 9, 2003, the United States Court of Appeals for the Tenth Circuit affirmed the decision of the Tax Court which was entered on September 25, 2001. The court agreed with the Service that the organization listed below is not described in section 501(c)(3) and is not exempt from taxation under section 501(a) effective January 1, 1987.

IHC Health Plans

Salt Lake City, UT

Notice of Disposition of Declaratory Judgment Proceedings Under Section 7428

Announcement 2003–91

This announcement serves notice to potential donors that on January 16, 2003, the United States Tax Court granted the Service's motion to dismiss the case. Thus,

the organization listed below is not recognized as an organization described in section 501(c)(3) and is not exempt from taxation under section 501(a) of the Internal Revenue Code effective January 1, 1993.

San Diego World Heritage

Foundation, Inc. San Diego, CA

Notice of Disposition of Declaratory Judgment Proceedings Under Section 7428

Announcement 2003–92

This announcement serves notice to donors that on July 21, 2003, the United States Tax Court entered a Decision accepting the agreement of the parties regarding the organization described below. Pursuant to the Decision, the organization listed below is not recognized as an organization described in section 501(c)(3) and is not exempt from tax under section 501(a) and is not an organization described in section 170(c)(2) effective April 26, 1995.

T.L.C. Environmental

Encinitas, CA

2003-52 I.R.B. 1259 December 29, 2003