Part IV. Items — Internal Revenue Bulletin 2004-9

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

Electronic Filing of Duplicate Forms 5472

REG–167217–03

AGENCY: Internal Revenue Service (IRS), Treasury.

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

SUMMARY: In this issue of the Bulletin, the IRS is issuing temporary regulations (T.D. 9113) providing that a Form 5472 that is timely filed electronically is treated as satisfying the requirement timely to file a duplicate Form 5472 with the Internal Revenue Service Center in Philadelphia, Pennsylvania. This action is necessary to clarify how the duplicate filing requirements for Form 5472 apply when a reporting corporation electronically files its income tax return (including any attachments such as Form 5472). This document affects corporations subject to the reporting requirements in sections 6038A and 6038C that file Form 5472 electronically. The text of those temporary regulations also 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 May 10, 2004. Outlines of topics to be discussed at the public hearing scheduled for May 27, 2004, must be received by May 6, 2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–167217–03), 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–167217–03), 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 the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Edward Barret, (202) 435–5265; concerning submissions and the hearing, Robin Jones, (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

The temporary regulations in this issue of the Bulletin amend 26 CFR part

To clarify how the duplicate filing requirements for Form 5472 apply when a reporting corporation electronically files its income tax return (including any attachments such as Form 5472), the temporary regulations amend §1.6038A–2(d) to provide that a Form 5472 that is timely filed electronically is treated as satisfying the requirement timely to file a duplicate Form 5472 with the Internal Revenue Service Center in Philadelphia, Pennsylvania. The text of the temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed 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 also has 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 these regulations do not impose 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 written (a signed original and eight (8) copies) or electronic comments 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 May 27, 2004, in the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Due to building security procedures, visitors must enter at the Constitution Avenue entrance. In addition, all visitors must present photo identification to enter the building. 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 on the building access list to attend the hearing, see the FOR section 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 written or electronic comments by May 10, 2004, 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 May 6, 2004. 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 receiving outlines has passed. Copies of the agenda will be available free of charge at the hearing.

Drafting Information

The principal author of these proposed regulations is Edward Barret, Office of the Associate Chief Counsel (International). However, other personnel from the IRS

March 1, 2004 540 2004-9 I.R.B.

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 for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.6038A–1 is amended by revising paragraph (n)(2) to read as follows:

§1.6038A–1 General requirements and definitions.

- - - (n) * * * (1) * * * (2) Section 1.6038A–2 . Section 1.6038A–2 (relating to the requirement to file Form 5472) generally applies for taxable years beginning after July 10, 1989. However, §1.6038A–2 as it applies to reporting corporations whose sole trade or business in the United States is a banking, financing, or similar business as defined in §1.864–4(c)(5)(i) applies for taxable years beginning after December 10, 1990. The final sentence of §1.6038A–2(d) applies for taxable years ending on or after January 1, 2003. For taxable years ending prior to January 1, 2003, see §1.6038A–2(d) in effect prior to January 1, 2003 (see 26 CFR part 1 revised as of April 1, 2002).
- - - Par. 3. Section 1.6038A–2 is amended by revising paragraph (d) to read as follows:

§1.6038A–2 Requirement of return.

- - - (d) [The text of the proposed amendment to §1.6038A–2(d) is the same as the text for §1.6038A–2T(d) 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 February 6, 2004, 8:45 a.m., and published in the issue of the Federal Register for February 9, 2004, 69 F.R. 5940)

Foundations Status of Certain Organizations

Announcement 2004–12

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:

120 Gerry Street Housing Development Fund Corporation, Brooklyn, NY Abhinaya, Maryland Heights, MO Ada A Grant, Inc., Chicago, IL Agape Respite Care Providers, Inc.,

Baker, LA Agricultural Law Center of California,

Santa Maria, CA Aircraft Enterprises, Inc., Lafayette, GA Alliance Charitable Fund, Inc.,

Boston, MA Americans in Motion, Atkinson, NE Angel of Mercy, Inc.,

Hacienda Heights, CA Angels Gate, Inc., Fort Salonga, NY Arizona Branch of the International

Dyslexia Association, Scottsdale, AZ Association for Supplementing Seniors

Income and Support Structure, West Jefferson, OH Association of African American

Museums, Wilburforce, OH Association of Christian Home Educators

of Ventura County, Inc., Ventura, CA Asylum & Immigration Defense,

Garden Grove, CA

Awakening Home for Women and

Children, Chicago, IL Back Home Again, Inc., Red Wing, MN Barangay Community Services,

Tacoma, WA Borock, Inc., Jessup, GA Broken Chains Prison Ministry,

Las Vegas, NJ Bywater Community Development,

New Orleans, LA C Bar C Ranch, Inc., Farmington, NM Calhoun County Bank Boosters,

Port Lavaca, TX California Cadet Corps of the Morongo

Basin, Joshua Tree, CA Cannon Speedskating Fund of Utah,

Salt Lake City, UT Capital Quilters, Bismarck, ND Carib News Charities, Inc., New York, NY Cause for Celebration, Inc., Arlington, VA Center for Community Justice, Inc.,

Los Angeles, CA Central Child Development Center,

Hollywood, FL Central New Jersey Library of Judaica,

Inc., New Brunswick, NJ Changing the World, Inc., Houston, TX Charitable Society of Greenwood, Inc.,

Greenwood, SC Charleston Housing Trust and

Development Corporation, Charleston, SC Cheer Express, Villas, NJ Childrens Web Surfing Alliance,

Severna Park, MD Citytrack, Incorporated, New York, NY Clinch Independent Living Services,

Incorporated, Grundy, VA Colorado House of Ruth, Incorporated,

Aurora, CO Colorful Threads Weaving Together

Strands of Wholeness, Minneapolis, MN Community Husk Corporation,

Fontana, CA Constitutional Liberties Defense League,

Eugene, OR Cure Group 1, Inc., Conshohocken, PA D. T. & Associates, Farmington, MI Deutsche Gesellschaft, Metairie, LA Dialysis Patients Association-Warwick,

Warwick, RI Dick Marx Foundation,

Sherman Oaks, CA Divine Truth Ministry, Garland, TX Don’t Be a Sap...It’s a Booby Trap,

Carisbad, CA

2004-9 I.R.B. 541 March 1, 2004

New Image Humanitarian Society, Inc.,

Hauppauge, NY New Park N Play, Inc., Ramsey, NJ New Union Education Project, Inc.,

Cambridge, MA Nicodemus Buffalo Soldier Foundation,

Bogue, KS North Hill Recreation Committee, Inc.,

Boston, MA Northview Band Boosters, Brazil, IN Ontario Youth Sports, Crestline, OH Open Arms Residential Care Facility,

Pasadena, CA Personal Watercraft Safety Foundation,

Ocean City, NJ Piedra Vista Baseball Booster Club,

Farmington, NM Pinellas Housing Agency, Inc.,

Clearwater, FL Prince Boxing Gym, Inc., Houston, TX Prince of Peace Foundation,

Escondido, CA Princeton Gospel Music Performers

Organization, Princeton, KY Project Appleseed, Inc., Union, NJ Project Network, San Bernardino, CA Prosper Arts, Incorporated, New York, NY PS Theatre Works, Inc., Marlborough, MA Puerto Rican Committee of Lancaster,

Lancaster, PA Renascent Productions, Jax Beach, FL Restoring the Dream, Inc., New York, NY Rogue Valley Youth Hockey Association,

Medford, OR San Francisco Friends of Chamber Music,

San Francisco, CA Schnepf Farms Foundation,

Queen Creek, AZ Sense of Direction, Chicago, IL Share the Dream Foundation,

Santa Rosa, CA Shepherd’s Fold, Sterling, CO Skye Wallace Scholarship Foundation,

Columbus, OH Southeast Regional Year 2000 Crisis

Center, Inc., Atlanta, GA Southern California Psychoanalytic

Society, Los Angeles, CA Southland Community Development

Corporation, Eunice, LA Sparkle Industrial Services, Dolton, IL St. Clair Band Boosters, St. Clair, MO St. James Economic Development, Inc.,

Miami, FL St. Paul Health Initiative, Inc.,

Raleigh, NC St. Paul Outreach Ministries, Inc.,

Raleigh, NC

Echo Repertory Theatre, Inc.,

New York, NY Educators for Life, Inc., Manchester, NH Emmanuel Haitian Christian Community

Center, Inc., Miami, FL Encouraging Word Ministries,

Slippery Rock, PA Entertainers Together for a Cause,

Phoenix, AZ Fairfield Family Resource Center,

Fairfield, MT Faith Community Development

Corporation, Capitol Heights, MD Faith Works Milwaukee, Milwaukee, WI Family & Community Outreach Network,

Inglewood, CA Fig Garden Youth Soccer League of

Fresno, Inc., Fresno, CA Flathead Resource Organization,

Dixon, MT Florida Transit Feasibility Organization

East, Inc., Ft. Lauderdale, FL Foundation for Science, Technology,

Education, and Research, Inc., New York, NY Foundation Stone for Family Preservation,

Sacramento, CA Friends Against Corruption Theft,

Incorporated, Odessa, TX Friends of Natick Drama Workshop, Inc.,

Natick, MA Friends of SMCP, Inc., Nevada, MO Friends of USM Football, Portland, ME GCMS Community Youth Center,

Gibson City, IL God’s Grace Adoption Ministry, Inc.,

Modesto, CA Greater Lakeland Area Gardening Club,

Lakeland, FL Green Gardens Community Housing

Corporation, Bakersfield, CA Green-Quincy Housing Development

Fund, New York, NY Hall of China Political Discourse, Inc.,

Kensington, MD Healthy Care Solutions, Inc.,

Ft. Lauderdale, FL Holistic Counseling Services, Inc.,

North Miami Beach, FL Hunger First-Tri-Cities

Tennessee/Virginia, Inc., Kingsport, TN Ice for Kids, Inc., N. Tonawanda, NY Illinois Valley Education-to Careers

Partnership, Inc., La Salle, IL Indiana Percussion Association, Inc.,

Chesterton, IN Institute for the Education of Foster

Children, Mount Vernon, VA

International Bulgarian Assn. for Support

of Persons With Mental Disabilities, Elmhurst, NY J. D. Bud and Vonda Webb Foundation,

Coronado, CA James Madison High School

Band-Flag Parents Booster Club, Inc., San Antonio, TX Jazz and Blues Hall of Fame Museum,

Inc., Duncanville, TX Jesus’ Disciples International,

Rolling Hills Estates, CA Joint Heirs Ministry, Mercer Island, WA Journal of Legal Advocacy & Practice,

Inc., Woodland Hills, CA Kylies Project, Bellingham, WA Laughing Place Therapeutic Riding

Center, Inc., Lowndesboro, AL Leadership Training Institute,

Capitol Heights, MD Lees Summit High School AFJ ROTC

Booster Club, Lees Summit, MO Liberty Truth and Love Proclamations,

Fort Collins, CO Los Amigos Gate Booster Club,

Rancho Cucamonga, CA Louisiana Community Outreach Center,

Incorporated, Marion, LA Lyons Gymnastics Academy Boosters,

Van Nuys, CA Macedonia Community & Youth

Development Foundation, Minneapolis, MN Marc Anthony Foundation, Inc.,

New York, NY Marching Green Pride Band Boosters,

Azle, TX Mardi Gras Krowe De Colorado,

Denver, CO Medicine and Science Discovery Center

of Central Texas, Temple, TX Mellis Scholarship Fund, Inc.,

Modesto, CA Metro Christian Youth Services,

Milwaukee, OR Millbrook Baptist Kindergarten,

Raleigh, NC Missouri Cultural Trust Foundation,

St. Louis, MO Montgomery Housing, Inc.,

Gaithersburg, MD Moon Water Theater Company, Inc.,

Fort Worth, TX National Rod & Custom Car Hall of Fame

Foundation, Afton, OK NEO Allstars, Akron, OH New Future Education Fund,

San Marino, CA

March 1, 2004 542 2004-9 I.R.B.

Stephen M. Price Foundation, Inc.,

Jacksonville, FL Strong Movement, Dallas, TX Summer Computer Camp for

Disadvantaged Youth, Houston, TX Sun Crumbs, Inc., Pittsburgh, PA Surgtrain, Galveston, TX T. Stuart Payne Foundation, Inc.,

Cornelius, NC Team Sierra, Reno, NV Techbangla, Norcross, GA Total Theater Company, Pittsfield, MA Tristan Avery Braverman Foundation for

Autistic Children, Wantagh, NY Union Temple Community Development

Corporation, Washington, DC Vail Valley Wine Auction, Incorporated,

Edwards, CO Vibroplex Foundation, Inc., Mobile, AL Victims Assistance Center of Amherst,

Incorporated, Amherst, NY Vincent Palladino Memorial Foundation,

Inc., Moorestown, NJ Vision Corporation, South Bend, IN Weave, Inc., Ogden, UT West Central Illinois Education-to-Careers

Partnership, Quincy, IL Western Connecticut Youth Hockey, Inc.,

New Fairfield, CT Westwood Preservation Society, Inc.,

Westwood, MA Winneconne Civic Center Foundation,

Inc., Waukesha, WI Womens Outreach, Inc., Fayetteville, NY World Council of Peoples for the United

Nations, New York, NY Worldwide Community,

Grand Junction, CO Zonta Club of the Santa Clarita Valley

Foundation, Valencia, 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 clas

sification of foundation status in the Internal Revenue Bulletin.

Diversification Requirements for Variable Annuity, Endowment, and Life Insurance Contracts; Hearing

Announcement 2004–13

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of public hearing on proposed regulations.

SUMMARY: This document contains a notice of public hearing on proposed regulations (REG–163974–02, 2003–38 I.R.B. 595) to diversification requirements for variable annuity, endowment, and life insurance contracts.

DATES: The public hearing is being held on Thursday, April 1, 2004, at 10 a.m. The IRS must receive outlines of the topics to be discussed at the hearing by March 18, 2004.

ADDRESSES: The public hearing is being held in the auditorium of the Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Due to building security procedures, visitors must enter at the main entrance on Constitution Avenue. In addition, all visitors must present photo identification to enter the building.

Mail submissions to: CC:PA:LPD:PR (REG–163974–02), 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–163974–02), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC 20224. Alternatively, taxpayers may submit comments electronically via the Internet by submitting comments directly to the IRS Internet site at: http://www.irs.gov/regs .

FOR FURTHER INFORMATION CONTACT: Concerning submission of comments, the hearing, and/or to be placed on the building access list to attend the hearing, Guy R. Traynor of the Publications and Regulations Branch, Associate Chief Counsel, (Procedure and Administration) at (202) 622–3693 (not a toll-free number).

SUPPLEMENTARY INFORMATION: The subject of the public hearing is the notice of proposed regulations (REG–163974–02) that was published in the Federal Register on Wednesday, July 30, 2003 (68 FR 44689).

The rules of 26 CFR 601.601(a)(3) apply to the hearing.

Persons who have submitted written comments and wish to present oral comments at the hearing must submit an outline of the topics to be discussed and the amount of time to be devoted to each topic (signed original and eight (8) copies) by March 18, 2004.

A period of 10 minutes is allotted to each person for presenting oral comments.

After the deadline for receiving outlines has passed, the IRS will prepare an agenda containing the schedule of speakers. Copies of the agenda will be made available, free of charge, at the hearing.

Because of access restrictions, the IRS will not admit visitors 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 FURTHER INFORMATION CONTACT” section of this document.

Cynthia E. Grigsby, Acting Chief, Publications

and Regulations Branch, Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on February 13, 2004, 8:45 a.m., and published in the issue of the Federal Register for February 17, 2004, 69 F.R. 7389)

2004-9 I.R.B. 543 March 1, 2004