Part IV. Items — Internal Revenue Bulletin 2004-14

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

Depreciation of MACRS Property That is Acquired in a Like-Kind Exchange or As a Result of an Involuntary Conversion

REG–106590–00, REG–138499–02

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking; notice of proposed rule making by crossreference to temporary regulations; notice of public hearing; and partial withdrawal of proposed regulations.

SUMMARY: In this issue of the Bulletin, the IRS is issuing temporary regulations (T.D. 9115) relating to the depreciation of property subject to section 168 of the Internal Revenue Code (MACRS property). Specifically, the temporary regulations provide guidance on how to depreciate MACRS property acquired in a like-kind exchange under section 1031 or as a result of an involuntary conversion under section 1033 when both the acquired and relinquished property are subject to MACRS in the hands of the acquiring taxpayer. 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 and a partial withdrawal of proposed regulations (REG–138499–02, 2003–37 I.R.B. 541) published July 21, 2003.

DATES: Written or electronic comments must be received by May 30, 2004. Outlines of topics to be discussed at the public hearing scheduled for June 3, 2004, at 10 a.m. must be received by May 13, 2004.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG–106590–00), room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Alternatively, 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–106590–00), Courier’s Desk, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC, or sent electronically, via the IRS Internet site at http://www.irs.gov/regs . The public hearing will be held in the Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Charles J. Magee, (202) 622–3110; concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing, Robin Jones, (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in this issue of the Bulletin amend 26 CFR part 1 relating to section 168 of the Internal Revenue Code (Code). The temporary regulations provide guidance under section 168 on how to depreciate MACRS property acquired in a like-kind exchange under section 1031 or as a result of an involuntary conversion under section 1033 when both the acquired and relinquished property are subject to MACRS in the hands of the acquiring taxpayer. The text of those 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

ministrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations and, because these regulations do not impose on small entities a collection of information requirement, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Therefore, a Regulatory Flexibility Analysis 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 Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (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 has been scheduled for June 3, 2004, beginning at 10 a.m. in the Auditorium of the 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 placed on the building access list to attend the hearing, see the FOR FURTHER IN- FORMATION CONTACT section of this preamble.

The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who wish to present oral comments at the hearing must submit an outline of the topics to be discussed and the time to be devoted to each topic (signed original and eight (8) copies) by May 13, 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

2004-14 I.R.B. 704 April 5, 2004

the entries for §1.168(i)–1T(f)(1) through (f)(2)(i) published elsewhere in this issue of the Bulletin].

- - - (i) and (j) [The text of the proposed entries for §1.168(i)–1(i) and (j) is the same as the entries for §1.168(i)–1T(i) and (j) published elsewhere in this issue of the Bulletin].
- - - (l) [The text of the proposed entry for §1.168(i)–1(l) is the same as the entry for §1.168(i)–1T(l) published elsewhere in this issue of the Bulletin].

Par. 5. Section 1.168(i)–1 is amended by revising paragraphs (c)(2)(ii)(E), (d)(2), (e)(3)(i), (e)(3)(iii)(B)( 4 ), (e)(3)(vi), (f)(1), (f)(2)(i), (i), (j), and (l) to read as follows:

§1.168(i)–1 General asset accounts.

- - - (c) * - (2) - * (ii) - * (E) [The text of the proposed amendment to §1.168(i)–1(c)(2)(ii)(E) is the same as the text of §1.168(i)– 1T(c)(2)(ii)(E) published elsewhere in this issue of the Bulletin].
- - - (d) - * (2) [The text of the proposed amendment to §1.168(i)–1(d)(2) is the same as the text of §1.168(i)–1T(d)(2) published elsewhere in this issue of the Bulletin].
- - - (e) * - (3) - * (i) [The text of the proposed amendment to §1.168(i)–1(e)(3)(i) is the same as the text of §1.168(i)–1T(e)(3)(i) published elsewhere in this issue of the Bulletin].
- - - (iii) * * (B) * - * ( 4 ) [The text of the proposed amendment to §1.168(i)–1(e)(3)(iii)(B)( 4 ) is the same as the text of §1.168(i)– 1T(e)(3)(iii)(B)( 4 ) published elsewhere in this issue of the Bulletin].
- - - (e)(3)(vi) [The text of the proposed amendment to §1.168(i)–1(e)(3)(vi) is the same as the text of §1.168(i)–1T(e)(3)(vi)

passed. Copies of the agenda will be available free of charge at the hearing.

Drafting Information

The principal authors of these regulations are Alan H. Cooper, Office of the Chief Counsel (Small Business/Self Employed), and Charles J. Magee, Office of the Associate Chief Counsel (Passthroughs and Special Industries). However, other personnel from the IRS and Treasury Department participated in their development.

- - - -

Partial Withdrawal of Proposed Regulations

Under the authority of 26 U.S.C. 7805, §§1.168(a)–1 and 1.168(b)–1 of the notice of proposed rulemaking (REG–138499–02, 2003–37 I.R.B. 541

[68 FR 43047]) published in the Federal Register on July 21, 2003, are withdrawn.

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 reads as follows:

Authority: 26 U.S.C. 7805 * * * §1.168(i)–1 also issued under 26 U.S.C. 168(i)(4). Par. 2. Sections 1.168(a)–1 and 1.168(b)–1 are added to read as follows:

§1.168(a)–1 Modified accelerated cost recovery system.

[The text of this proposed section is the same as the text of §1.168(a)–1T(a) and (b) published elsewhere in this issue of the Bulletin].

§1.168(b)–1 Definitions.

[The text of this proposed section is the same as the text of §1.168(b)–1T(a) and (b)(1) published elsewhere in this issue of the Bulletin].

Par. 3. Section 1.168(d)–1 is amended to read as follows:

Revising paragraph (b)(3)(i) and (ii).
Adding paragraph (d)(3).

The revision and addition read as follows:

§1.168(d)–1 Applicable conventions-half-year and mid-quarter conventions.

- - - (b) - - (3) - - (i) and (ii) [The text of the proposed amendment to §1.168(d)–1(b)(3)(i) and (ii) is the same as the text of §1.168(d)–1T(b)(3)(i) and (ii) published elsewhere in this issue of the Bulletin].
- - - (d) - - (3) [The text of the proposed amendment to §1.168(d)–1(d)(3) is the same as the text of §1.168(d)–1T(d)(3) published elsewhere in this issue of the Bulletin.]

Par. 4. Section 1.168(i)–0 is amended by revising the entries for §1.168(i)–1(d)(2), (e)(3)(i), (e)(3)(v) and (vi), (f)(1), (f)(2), (f)(2)(i), (i), (j), and (l) to read as follows:

§1.168(i)–0 Table of contents for the general asset account rules.

§1.168(i)–1 General asset accounts.

- - - (d) - - (2) [The text of the proposed entry for §1.168(i)–1(d)(2) is the same as the entry for §1.168(i)–1T(d)(2) published elsewhere in this issue of the Bulletin].
- - - (e) - - (3) - - (i) [The text of the proposed entry for §1.168(i)–1(e)(3)(i) is the same as the entry for §1.168(i)–1T(e)(3)(i) published elsewhere in this issue of the Bulletin].
- - - (vi) [The text of the proposed entries for §1.168(i)–1(e)(3)(vi) is the same as the entries for §1.168(i)–1T(e)(3)(vi) published elsewhere in this issue of the Bulletin].
- - - (f) - - (f)(1) through (f)(2)(i) [The text of the proposed entries for §1.168(i)–1(f)(1) through (f)(2)(i) is the same as the text of

April 5, 2004 705 2004-14 I.R.B.

published elsewhere in this issue of the Bulletin].

- - - (f)(1) and (2) [The text of the proposed amendment to §1.168(i)–1(f)(1) and (2) is the same as the text of §1.168(i)–1T(f)(1) and (2) published elsewhere in this issue of the Bulletin].
- - - (i) and (j) [The text of the proposed amendment to §1.168(i)–1(i) and (j) is the same as the text of §1.168(i)–1T(i) and (j) published elsewhere in this issue of the Bulletin].
- - - (l) [The text of the proposed amendment to §1.168(i)–1(l) is the same as the text of §1.168(i)–1T(l)(1) through (l)(3)(i) published elsewhere in this issue of the Bulletin].

Par. 6. Section 1.168(i)–5 is added to read as follows:

§1.168(i)–5 Table of contents.

[The text of this proposed section is the same as the text of §1.168(i)–5T published elsewhere in this issue of the Bulletin].

Par. 7. Section 1.168(i)–6 is added to read as follows:

§1.168(i)–6 Like-kind exchanges and involuntary conversions.

[The text of this proposed section is the same as the text of §1.168(i)–6T published elsewhere in this issue of the Bulletin].

Par. 8. Section 1.168(k)–1 is added to read as follows:

§1.168(k)–1 Additional first year depreciation deduction.

(a) through (f)(5)(ii)(F)( 1 ) [Reserved]. For further guidance, see §1.168(k)–1T(a) through (f)(5)(ii)(F)( 1 ).

( 2 ) [The text of the proposed amendment to §1.168(k)–1(f)(5)(ii)(F)( 2 ) is the same as the text of §1.168(k)–1T(f)(5)(ii)(F)( 2 ) published elsewhere in this issue of the Bulletin].

(f)(5)(ii)(G) through (f)(5)(iv) [Reserved]. For further guidance, see §1.168(k)–1T(f)(5)(ii)(G) through (f)(5)(iv).

(v) [The text of the proposed amendment to §1.168(k)–1(f)(5)(v) is the same

as the text of §1.168(k)–1T(f)(5)(v) published elsewhere in this issue of the Bulletin].

(f)(6) through (f)(9) [Reserved]. For further guidance, see §1.168(k)–1T(f)(6) through (f)(9).

(g) Effective date . (1) [The text of the proposed amendment to §1.168(k)–1(g)(1) is the same as §1.168(k)–1T(g)(1)(i) published elsewhere in this issue of the Bulletin].

(2) [Reserved]. For further guidance, see §1.168(k)–1T(g)(2).

(3)(i) and (ii) [The text of the proposed amendment to §1.168(k)–1(g)(3)(i) and (ii) is the same as the text of §1.168(k)–1T(g)(3)(i) and (ii) published elsewhere in this issue of the Bulletin].

(g)(4) [Reserved]. For further guidance, see §1.168(k)–1T(g)(4).

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

(Filed by the Office of the Federal Register on February 27, 2004, 8:45 a.m., and published in the issue of the Federal Register for March 1, 2004, 69 F.R. 9560)

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

New Markets Tax Credit Amendments

REG–115471–03

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, the IRS is issuing revised temporary regulations (T.D. 9116) relating to the new markets tax credit. The text of those 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 Wednesday, June 2, 2004, must be received by May 10, 2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–115471–03), room 5203, Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, DC 20044. Alternatively, 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–115471–03), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC, or sent electronically via the IRS Internet site at www.irs.gov/regs. The public hearing will be held in IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Paul F. Handleman or Lauren R. Taylor, (202) 622–3040; concerning submission of comments, the hearing, and/or to be placed on the building access list to attend the hearing, LaNita Van Dyke, (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations in this issue of the Bulletin amend the Income Tax Regulations (26 CFR Part 1) relating to section 45D. The temporary regulations provide guidance for taxpayers claiming the new markets tax credit under section 45D. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the amendments.

Special Analyses

2004-14 I.R.B. 706 April 5, 2004

a new 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 their impact on small business.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written comments (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. Comments are requested on all aspects of the proposed regulations. In addition, the IRS and Treasury Department specifically request comments on the clarity of the proposed regulations and how they can be revised to be more easily understood. All comments will be available for public inspection and copying.

A public hearing has been scheduled for Wednesday, June 2, 2004, at 10 a.m. in the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. All visitors must present photo identification to enter the building. Because of access restrictions, visitors will not be admitted beyond the immediate entrance area at the Constitution Avenue entrance 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 preamble.

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

Persons who wish to present oral comments at the hearing must submit written comments and an outline of the topics to be discussed and the time to be devoted to each topic (preferably a signed original and eight (8) copies) by May 10, 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 regulations is Paul F. Handleman, Office of the Associate Chief Counsel (Passthroughs and Special Industries), IRS. 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 for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.45D–1 is amended to read as follows:

§1.45D–1 New markets tax credit.

[The text of the amendments to this proposed section is the same as the text of the amendments to §1.45D–1T 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 March 10, 2004, 8:45 a.m., and published in the issue of the Federal Register for March 11, 2004, 69 F.R. 11561)

Notice of Proposed Rulemaking

Exclusion of Employees of 501(c)(3) Organizations in 401(k) and 401(m) Plans

REG–149752–03

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains proposed amendments to the regulations under section 410(b) of the Internal Revenue Code. The proposed amendments permit, in certain circumstances, employees of a

tax-exempt organization described in section 501(c)(3) to be excluded for the purpose of testing whether a section 401(k) plan (or a section 401(m) plan that is provided under the same general arrangement as the section 401(k) plan of the employer) meets the requirements for minimum coverage specified in section 410(b). These regulations will affect tax-exempt employers described in section 501(c)(3), retirement plans sponsored by these employers, and participants in these plans.

DATES: Written or electronic comments and requests for a public hearing must be received by June 14, 2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–149752–03), 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–149752–03), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, taxpayers may submit comments electronically via the Internet directly to the IRS Internet site at www.irs.gov/regs .

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, R. Lisa Mojiri-Azad, 202–622–6060, or Stacey Grundman, 202–622–6090; concerning submissions and delivery of comments, Treena Garrett, 202–622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed amendments to the Income Tax Regulations (26 CFR Part 1) under section 410(b) of the Internal Revenue Code of 1986 (Code). The amendments implement a directive by Congress, contained in section 664 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107–16, 115 Stat. 38) (EGTRRA), to amend §1.410(b)–6(g) of the regulations.

Prior to the enactment of the Small Business Job Protection Act of 1996 (Public Law 104–188, 110 Stat. 1755) (SBJPA), both governmental and tax-exempt entities generally were subject to the

April 5, 2004 707 2004-14 I.R.B.

rule for governmental plans contained in §1.410(b)–6(g) to reflect the addition of section 401(a)(5)(G) (including whether there continues to be a need for this special rule with respect to governmental plans).

Effective Date

As directed by Congress in section 664 of EGTRRA, the amendments to §1.410(b)–6(g) are proposed to be effective for plan years beginning after December 31, 1996. Taxpayers may rely on these proposed regulations for guidance pending the issuance of final regulations. If, and to the extent, future guidance is more restrictive than the guidance in these proposed regulations, the future guidance will be applied without retroactive effect.

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 the regulation does 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 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 (a signed original and 8 copies) or electronic comments that are submitted timely to the IRS. The IRS and Treasury 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 .

section 410(b) coverage requirements and precluded from maintaining section 401(k) plans pursuant to section 401(k)(4)(B). To prevent the section 401(k)(4)(B) prohibition from causing a plan to fail section 410(b), the existing regulations provide that employees of either governmental or tax-exempt entities who are precluded from being eligible employees under a section 401(k) plan by reason of section 401(k)(4)(B) may be treated as excludable in applying the minimum coverage rules to a section 401(k) plan or a section 401(m) plan that is provided under the same general arrangement as the section 401(k) plan, if more than 95 percent of the employees of the employer who are not precluded from being eligible employees by section 401(k)(4)(B) benefit under the plan for the plan year. Although tax-exempt organizations described in section 501(c)(3) were precluded by section 401(k)(4)(B) from maintaining a section 401(k) plan, they were permitted to allow their employees to make salary reduction contributions to a plan or contract that satisfies section 403(b) (a section 403(b) plan).

Section 1426(a) of SBJPA amended section 401(k)(4)(B) to allow nongovernmental tax-exempt organizations (including organizations exempt under section 501(c)(3)) to maintain section 401(k) plans. Thus, a section 501(c)(3) tax-exempt organization can now maintain a section 401(k) plan, a section 403(b) plan, or both. In light of this provision of SBJPA, section 664 of EGTRRA directed the Secretary of the Treasury to modify the regulations under section 410(b) to provide that employees of a tax-exempt organization described in section 501(c)(3) who are eligible to make salary reduction contributions under a section 403(b) plan may be treated as excludable employees for the purpose of testing whether a section 401(k) plan or a section 401(m) plan that is provided under the same general arrangement as the section 401(k) plan meets the minimum coverage requirements contained in section 410(b) if (1) no employee of the organization is eligible to participate in the section 401(k) or section 401(m) plan and (2) at least 95 percent of the employees of the employer who are not employees of the organization

are eligible to participate in the section 401(k) or section 401(m) plan. The change recognizes that many tax-exempt organizations maintained section 403(b) plans prior to the enactment of SBJPA and is needed to allow the continued maintenance of section 403(b) plans by these organizations without requiring the same employees to be covered under a section 401(k) plan and the section 403(b) plan. The change will help an employer that maintains both a section 401(k) plan and a section 403(b) plan to satisfy the section 410(b) coverage requirements without the employer having to provide dual coverage for employees.

Explanation of Provisions

These regulations provide that employees of a tax-exempt organization described in section 501(c)(3) who are eligible to make salary reduction contributions under a section 403(b) plan may be treated as excludable employees for the purpose of testing whether a section 401(k) plan or a section 401(m) plan that is provided under the same general arrangement as the section 401(k) plan meets the minimum coverage requirements contained in section 410(b) if (1) no employee of the tax-exempt organization is eligible to participate in the section 401(k) or section 401(m) plan and (2) at least 95 percent of the employees of the employer who are not employees of the tax-exempt organization are eligible to participate in the section 401(k) or section 401(m) plan. The proposed regulations do not include any changes to the treatment of governmental plans under the current regulations. Unless grandfathered, state and local governmental entities continue to be precluded from maintaining section 401(k) plans pursuant to section 401(k)(4)(B). However, as a result of section 1505(a)(1) of the Taxpayer Relief Act of 1997 (Public Law 105–34, 111 Stat. 788), which added section 401(a)(5)(G) to the Code, governmental plans (within the meaning of section 414(d)) maintained by a state or local government or political subdivision thereof (or agency or instrumentality thereof) are not subject to the minimum coverage requirements contained in section 410(b). Consequently, the IRS and Treasury request comments on whether it would be appropriate to modify the special

2004-14 I.R.B. 708 April 5, 2004

(Filed by the Office of the Federal Register on March 15, 2004, 8:45 a.m., and published in the issue of the Federal Register for March 16, 2004, 69 F.R. 12291)

Foundations Status of Certain Organizations

Announcement 2004–22

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:

58 Group, Chicago, IL Abraham Lincoln National Cemetery

Support Committee, Frankfort, IL Accessible Creative Theatre, Inc.,

Carbondale, IL Adeline House an Orphanage,

Cleveland, OH Adelphic Historical Restoration Society,

Battle Creek, MI African American Community

Development Corporation, Canton, OH A H S Restoration, Inc., Anderson, IN Aid Angeles, Inc., Aliso Viejo, CA All My Children Child Care Services,

Inc., Cerritos, CA Alliance for Advancement of HIV-AIDS

Therapy, Inc., Palm Springs, CA Alpha Baydi Dia Fund, Detroit, MI Alpha Omega Foundation, Inc.,

Rock Island, IL Amauzari in the USA Organization,

Chicago, IL American Friends of Ateres Bnos

Yervshalayim, Inc., Chicago, IL American Museum of Magic, Inc.,

Marshall, MI Ancient World Society, Inc.,

Wauconda, IL

Drafting Information

The principal authors of these proposed regulations are R. Lisa Mojiri-Azad and Stacey Grundman of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and Treasury participated in the development of these regulations.

- - - -

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 is amended by removing the entry for §§1.410(b)–2 through 1.410(b)–10 and adding entries in numerical order to read, in part, as follows:

Authority: 26 U.S.C. 7805. - * * §1.410(b)–2 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–3 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–4 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–5 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–6 also issued under 26 U.S.C. 410(b)(6) and section 664 of the Economic Growth and Tax Relief Reconciliation Act of 2001 (Public Law 107–16, 115 Stat. 38). §1.410(b)–7 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–8 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–9 also issued under 26 U.S.C. 410(b)(6).

§1.410(b)–10 also issued under 26 U.S.C. 410(b)(6).* * *

Par. 2. Section 1.410(b)–0, table of contents, the entry for 1.410(b)–6 is amended by:

Revising the paragraph heading for 1.410(b)–6(g).
Adding paragraph headings for 1.410(b)–6(g)(1) and (g)(2). The revision and additions read as follows:

§1.410(b)–0 Table of contents.

§1.410(b)–6 Excludable employees.

- - - (g) Employees of certain governmental or tax-exempt entities.

(1) Employees of governmental entities.

(2) Employees of tax-exempt entities.

- - - Par. 3. In §1.410(b)–6, paragraph (g) is revised to read as follows:

§1.410(b)–6 Excludable employees.

- - - (g) Employees of certain governmen- tal or tax-exempt entities . For purposes of testing either a section 401(k) plan or a section 401(m) plan that is provided under the same general arrangement as a section 401(k) plan, an employer may treat as excludable those employees described in paragraphs (g)(1) and (2) of this section.

(1) Employees of governmental entities . Employees of governmental entities who are precluded from being eligible employees under a section 401(k) plan by reason of section 401(k)(4)(B)(ii) may be treated as excludable employees if more than 95 percent of the employees of the employer who are not precluded from being eligible employees by section 401(k)(4)(B)(ii) benefit under the plan for the plan year.

(2) Employees of tax-exempt entities . Employees of a tax-exempt organization described in section 501(c)(3) who are eligible to make salary reduction contributions under a section 403(b) plan may be treated as excludable employees if —

(i) No employee of the organization is eligible to participate in the section 401(k) or section 401(m) plan; and

(ii) At least 95 percent of the employees of the employer who are not employees of the organization are eligible to participate in the section 401(k) or section 401(m) plan.

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

April 5, 2004 709 2004-14 I.R.B.

Community Concern for Families and

Youth Freedom, Joliet, IL Community Leadership Council,

South Bend, IN Community Link Foundation, Inc.,

Ann Arbor, MI Community Planning Association,

Detroit, MI Community Preservation Association,

Inc., Naperville, IL Conversemos, Inc., Chicago, IL Corona Panthers Junior All American

Football, Corona, CA Corporation for Community Housing,

Chicago, IL Crayons for Kids Foundation,

Cleveland, OH Creative Flowering Through the

Performing Arts, Chicago, IL Creative Problem Solving Institute, Inc.,

Chicago, IL Critical Incident Stress Management

Indiana Network, Inc., Greenfield, IN Crossroads Christian Ministries

International, Inc., San Diego, CA Curtis Research Institute, Inc., Toledo, OH Dads of Michigan, Southfield, MI Delta Centre for Arts & Cultural Affairs,

Inc., Grand Rapids, MI Demand Clean Air, Yorba Linda, CA Depressive-Manic Depressive Group of

Henry County, Geneseo, IL Desert Gold Computer Resource Center,

Yucca Valley, CA Desert Hot Springs Community Task

Force, Desert Hot Springs, CA Detroit Classical Radio Corporation,

Detroit, MI Detroit Lady Roadrunners, Detroit, MI Detroit Track and Field Old Times

Association, Detroit, MI Dis N Dat Entertainment, Inc.,

Indianapolis, IN Dover New Philadelphia Community

Youth Soccer Association, Inc., New Philadelphia, OH EAI Employment Resources, Inc.,

Taylor, MI Earth for All, San Diego, CA Earth Resource Foundation,

Costa Mesa, CA East Side Baseball League, Inc., Gary, IN Eco Unity, San Diego, CA Economic Development Council,

Chicago, IL Einterz Amdg Foundation, Inc.,

Indianapolis, IN

Anger Institute, Inc., Chicago, IL Antioch Mission Fellowship,

Buena Park, CA Apiary of Solution & Knowledge, Inc.,

Indianapolis, IN Arab-American Chamber of Commerce,

Chicago, IL Arab-American Congress, Chicago, IL Ark of Safety, Caseyville, IL Ashe, Inc., Yuciapa, CA Asociacion de Fraternidades

Guatemaltecas Corp., Lynwood, CA Assistance Foundation, Palm Springs, CA Augusta Homes, Upland, CA Aurora Now Foundation, Tucson, AZ Ayala Athletic Foundation,

Chino Hills, CA Baby Basket, Lawrenceburg, IN Backdoor Ministries, Oak Hills, CA Ballet Folklorico Nuestras Tradiciones,

Colton, CA Bath Charter Township Housing

Commission, Bath, MI Bazan Prayer Ministries Ministerrios de

Oracion Bazan, El Canjon, CA Bellaire - Puritas Meals on Wheels,

Cleveland, OH Bethel Community Housing Corporation,

Detroit, MI Bethel Gospel Missions, Greenville, IL Bethesda Community Development

Center, Elgin, IL Black Contractors United Foundation,

Inc., Chicago, IL Braceville Parent-Teacher Community

Organization, Braceville, IL Brighter Futures, Chicago, IL Brightwood Children and Family

Cooperative, New Phila, OH Brosmer Serenity Club, Inc., Jasper, IN Bucktown Neighbors, Chicago, IL Business Network of Indiana, Inc.,

South Bend, IN Business United Officers and Youth

B U O Y I, Detroit, MI California Heritage Dancers,

Temecula, CA California Wildland Fire Fighter

Memorial Committee, Romoland, CA Camp Whitley, Inc., Columbia City, IN Care With Love Services, Kalamazoo, MI Caring About Nursing Disability

Organization, Lyndhurst, OH Case Management Worldwide,

San Diego, CA Catholic Homily, Marengo, OH Celebrate Me Home, Inc.,

Palm Springs, CA

Center for Emergency Management,

Troy, MI Center for Informed Health Care

Decisions, Chicago, IL Central America Gospel Mission Center,

Anaheim, CA Cerebral Aneurysm-Tumor Survivors

CATS, Lansing, MI Cerulean Dance Theatre, Chicago, IL Charities of Indianapolis, Indianapolis, IN Chicago Area AA Womens Luncheon,

Inc., Downers Grove, IL Chicago Help for Israels Cemeteries &

Graves Organization, Chicago, IL Chicago Neighbors United, Inc., Itasca, IL Chicago Wind City Artists, Inc.,

Chicago, IL Child Rescue International, Mesquite, TX Childrens Center of Excellence, Inc.,

Toledo, OH Childrens Life Line Foundation,

North Bergen, NJ Childrens Voices, Ada, MI Chinese-American Voters Alliance,

Chicago, IL Chino Hills Community First,

Chino Hills, CA Christ Reaching Asia Mission Worldwide,

Inc., Bedford, IN Christian Service Enterprises,

Schoolcraft, MI Citizens for Community Values of San

Diego, Solano Beach, CA Clarence Darrow Foundation, Chicago, IL Classic Cruisers, Perris, CA Cleveland Home Town Program,

Cleveland, OH Cleveland Nama Hatta Program,

Cleveland, OH Clissold School Endowment, Ltd.,

Chicago, IL Coalition for Better Schools and

Communities, San Diego, CA Coalition for United Community Labor

Force, Chicago, IL Cobalt Ensemble Theatre, Inc.,

Chicago, IL Committee for Improvement of Emerson

Community Development Corp., Gary, IN Committee to Restore America

Foundation, Oceanside, CA Common Education Foundation,

Chicago, IL Community Collaboration for Economic

Development, Champaign, IL Community Collaborative Outreach Gift,

Ypsilanti, MI

2004-14 I.R.B. 710 April 5, 2004

Have Luv, Incorporated,

Moreno Valley, CA Health & Habitat for the Elderly,

Upland, CA Heartland Communities, Inc.,

Ft. Wayne, IN Heavenly Helpers, Inc.,

San Bernardino, CA Heavens Gifts Youth and Family Services,

Moreno Valley, CA Help the Kids Foundation, Inc.,

Palm Beach, FL Henry County Safe House, Inc.,

Kewanee, IL Hepatitis United, Oregon, IL Heritage Child, Inc., Gary, IN High Kicks for High Hopes,

Taylorsville, IL High Score, Pomona, CA Highschool of Commerce East Commerce

Alumni Assoc., Lansing, MI Hillside Neighborhood Improvement

Association, Benton Harbor, MI Hispanic Illinois State Law Enforcement

Association Foundation, Chicago, IL Homeless Rehabilitation and Recovery,

Inc., Urbana, IL Homerville Little League, Homerville, OH Hometown Cinema, Inc.,

Woodland Hills, CA Hometown Sports & Recreation, Inc.,

Las Vegas, CA Hondures Relief Fund, Schaumburg, IL Hope 21, Indianapolis, IN Hope Cancer Fund, N. Hollywood, CA House of Luke Ministry, Hemet, CA House Rabbit Society of Chicago,

Prospect Heights, IL Housing Coalition for Urban

Advancement, Cleveland, OH Huntertown Hurricanes Youth Soccer

Club, Inc., Fort Wayne, IN Illinois Baptist Bible Fellowship,

Decatur, IL Illinois Educators Advocacy Retirement

Network, Inc., Springfield, IL Illinois Sports Hall of Fame and Museum,

Peoria, IL Illinois State Taekwondo Association,

Arlington Heights, IL Impact Staffing, Inc., Grand Rapids, MI Imperial Valley Childrens Services,

Calexico, CA In the Spirit of Ujima, Inc., Mansfield, OH Independent Living Center for Brain

Injury Survivors, San Diego, CA Indian Creek Military Museum,

Petersburg, IL

Elderly Mission of Los Angeles, Inc.,

Los Angeles, CA Eliza Tibbets Statue Foundation, Inc.,

Riverside, CA Emanon Club of Ypsilanti, Inc.,

Ypsilanti, MI Emerge Consortium, Toledo, OH Endangered Small Animal Conservation

Fund, Monmouth, IL Enterprising Spirits Organization of San

Diego, San Diego, CA Epic Drumline, Inc., Taylor, MI Ethics for America, Carrollton, IL Euclid Elementary School Community

Foundation, San Diego, CA Evergreen Institute on Elder

Environments, Bloomington, IN Families for Effective Autism Treatment,

Oceanside, CA Family Systems, Inc., Bedford Hts, OH Fathers Support Association,

Painesville, OH Fazes Production, Inc., Lake Elsinore, CA Federation of International Baseball,

Moreno Valley, CA Federation of Vietnamese Catholics in the

U S A, Clawson, MI F E E D S Corp., Davenport, IA Feminine Sanctuary, Dulzura, CA Financial Aid to Grandparents

Raising Grandchildren Foundation, Calumet Park, IL First Christian Ladies Affirming Salvation

to Sisters, Indianapolis, IN Fit Frogs, Inc., Greenwood, IN F I T C H, Inc., Chicago, IL Flo-Jo Memorial Community

Empowerment Foundation, Mission Viejo, CA Focus First, Inc., Carlsbad, CA Focus Group, Perris, CA Foodmobile, Inc., Indianapolis, IN For the Children, Inc., Southfield, MI Forest Hills Youth Football League,

Ada, MI Fort Wayne Tutoring Foundation,

Fort Wayne, IN Foundation for Advancement in Media

Education, Southfield, MI Foundation for Handicapped Mobility,

Indianapolis, IN Free Riders Community and Youth

Outreach Service, Detroit, MI Freedom Credit Counseling Service, Inc.,

Franklin, TN Friends of Bills Family, Chicago, IL Friends of Gary Public Library, Gary, IN

Friends of Lightning Bend and the Pines,

Belding, MI Friends of Owen County, Inc., Spencer, IN Friends of Roanoke Scouting, Inc.,

Huntington, IN Friends of South Africa, Detroit, MI Friends of the Forgotten,

Prospect Heights, IL Friends of the Oscoda County Library,

Mio, MI Friends of the Swim Team, Inc.,

Linton, IN Friends of the Victory, Inc., Evansville, IN Front Row Center, Inc., Seal Beach, CA Galama Mountains Conservation Fund,

Inc., New York, NY Garish House, Caledonia, OH Garth Youth Services, Inc., Chicago, IL Gathering Point, Chicago, IL Genesis Counseling, Inc., Enid, OK Gilead, Chicago, IL Glenwood Baseball, Inc., Glenwood, IL Global Action Network, San Diego, CA Globewings, Akron, OH Golden Corridor Association for

the Education of Young Children, Schaumburg, IL Golden Dreams for Children Foundation,

Plainfield, IL Goshen Arts Alliance, Goshen, IN Gospel Quartet Society, Inc.,

Yorba Linda, CA Graduate Psychology Students

Community Outreach Foundation, Rolling Meadows, IL Grand River Improvement Association,

Detroit, MI Grant County Wrestling Club,

Jonesboro, IN Great Chung Hwa Higher Education

Foundation, Rancho Palos Verdes, CA Great Lakes Credit Counseling,

Grand Rapids, MI Greater Alton Community Development,

Inc., Alton, IL Greater Brighton Area Chamber

Foundation, Brighton, MI Greater St. Stephen Non-Profit Housing

Development Corporation, Detroit, MI Growth Ministries, El Cajon, CA Grupo Folklorico Xcaret, Santa Ana, CA Haiku North America-Chicago 1999,

Evanston, IL Hamilton Foundation of Chicago,

Chicago, IL Hand-Up Foundation, St. Charles, IL Harrison-Brook Life Enhancement

Center, Inc., Indianapolis, IN

April 5, 2004 711 2004-14 I.R.B.

Medical Assess Foundation,

Gates Mills, OH Memorial Pointe Health Care Center, Inc.,

Evansville, IN Meta Driscoll Homes, Palm Desert, CA M G A Booster Club, Riverside, CA Michigan Hispanic Senior Citizens

Coalition, Southfield, MI Michigan Jazz Festival, S. Lyon, MI Millstadt Community Band, Millstadt, IL Milton Brunson Foundation,

Westchester, IL Minority Communications Resource

Organization, Youngstown, OH Minority Economic Development

Council of Jefferson County, Inc., Steubenville, OH Miracle Outreach, Longbeach, CA Mission Monroe Co., Monroe, MI Mission of Jehovah Yireh,

Lucerne Valley, CA Mission Perspective, Inc., Harlingen, TX Mohan Narasimhan Memorial Tr 010197,

Cerritos, CA Monroe County Taxpayers Association,

Inc., Bloomington, IN Moriah Community Development

Corporation, Chicago, IL Mountainaires Community and Family

Life Services, Inc., Detroit, MI Mugunghwa Association USA,

Garden Grove, CA Muslim Prisoners Assistance Association,

Dearborn Heights, MI Mustard Seed Society International,

Cypress, CA Na Hoa O Ka Hale Kanu, Colton, CA National Church Music Conference, Inc.,

Indianapolis, IN National Image Development Center, Inc.,

Detroit, MI National Jewish Education Foundation,

Inc., Chicago, IL National Scholastic Speedskating, Inc.,

Champaign, IL National Youth Innovations, Inc.,

Chula Vista, CA National Youth Motivation and Education

Center, Inc., Detroit, MI Natures Lifeguard, Inc., Trinidad, CA Needy Not Greedy, Madison Heights, MI Nehemiah Urban Church Ministries,

Chicago, IL New Beginnings Foster and Adoptive

Family Support Group, Hastings, MI New Hope Healing Institute, Inc.,

Indianapolis, IN New Life Foundation, Upland, CA

Indiana Association of Drug Court

Professionals, Lawrenceburg, IN Indiana Hall of Fame, Inc.,

Indianapolis, IN Indiana National Organization for Women

Foundation, Inc., Indianapolis, IN Indiana State Title I Parents Steering

Committee, Indianapolis, IN Indiana Volks Clubs, Plainville, IN Inland Counties Hispanic Roundtable,

San Bernardino, CA Inland Empire Police Canine Association,

Ontario, CA Inner City Voices and Visions Project,

Detroit, MI Inner Prizes Perform, Chicago, IL Institute for Anti-Aging Medicine,

San Marcos, CA Institute for Classical Art,

Steubenville, OH Institute for the Study of Academic

Racism, Big Rapids, MI Interactive Gym, Inc., Carmel, IN International Care Services, Detroit, MI International Christian Broadcasting, Inc.,

Newport Beach, CA International Christian Fellowship for

Mission Chicago Chapter, Chicago, IL International Medical Assistance, Ada, MI International Missing Children Network,

Inc., Indianapolis, IN Internet Society of Orthopedic Surgery

and Trauma, Chicago, IL Ironwood Theatre Project, Chicago, IL Italian American Womens Organization,

Melrose Park, IL James Gallagher Sr. Memorial Fund,

Oak Lawn, IL Jasper County Interfaith Alliance, Inc.,

Rensselaer, IN Jesse Campbell Memorial CDC,

Chicago, IL Jesus Video Project North County,

Escondido, CA Jim Mullen Charitable Foundation,

Niles, IL John Green, Sr. Golf House for Kids, Inc.,

Indianapolis, IN Jubilee International, Inc., Carmel, IN Keeping Up the Faith for the Future, Inc.,

Clinton Twp, MI Kids Not Criminals, Inc., Chicago, IL Kim Moore Ministries, Plymouth, MI Kingdom Climbers, Inc., Indianapolis, IN Kisses for Kids, Indianapolis, IN KJU, Incorporated, Upland, CA Kokomo Childrens Choir, Kokomo, IN Ktiv Noam, Inc., W. Bloomfield, MI

La Casa Del Alfarero, Chicago, IL Lady Lions Hockey Club, Lagrange, IL Lafave Scholarship Fund, Inc.,

Jackson, MI Lake Pointe Homeowners Association of

NW Ohio, Toledo, OH Lakeview Center for Education, Niles, IL Land of Lincoln Wheelchair Athletic

Association, Petersburg, IL Lanesville Improvement Fund,

Incorporated, Lanesville, IN Leadership Education Seminar Facilitator

Team, Oceanside, CA Let the Children Play, Paris Crossing, IN Lewis Cross Babe Ruth Parents

Organization, Inc., Onward, IN Life Impact Ministries International,

Rancho Santa Margarita, CA Life Long Fitness, Inc., Detroit, MI Light for the Lost Mission,

Sacramento, CA Linda E. Beck Mission for Women and

Youths, Long Beach, CA Linnie B. Robertson Crises Intervention

Center, Chicago, IL Little Thunder Kids Golf Foundation,

Inc., S. Madison, OH L O C of Detroit, Inc., Detroit, MI Lordstown T O G E T H E R, Inc.,

Lordstown, OH Love Outreach Development Center, Inc.,

Indianapolis, IN Love Unlimited Ministries,

Prospect Heights, IL Madison Co. Sheriffs Dept. Police

Benevolent and Protective Association, Edwardsville, IL Magic of Children Foundation,

Birmingham, MI Mahogany in Motion, Highland, CA Mahogany Scholarship Foundation,

Chicago, IL Main Street Sandwich, Sandwich, IL Mamie Bone Foundation, Chicago, IL Manchester Baseball Association, Inc.,

Alliance, OH Manufacturing Technology Center at

Indianapolis, Inc., Indianapolis, IN Maranatha Ministries Worldwide, Inc.,

Detroit, MI Margeys River of Hope, McHenry, IL Marquis Foundation, Inc., Lafayette, IN Marriage Forum Foundation,

San Diego, CA Maurice James Ministries, Inc.,

Chicago, IL Mediation Center for Justice,

Apple Valley, CA

2004-14 I.R.B. 712 April 5, 2004

Saginaw Survivors of Suicide, Inc.,

Saginaw, MI San Diego Grand Prix Kids,

San Diego, CA San Diego Post 6 Activities Foundation,

San Diego, CA Save the Cottage Association,

Evanston, IL School of Ministry Training, Berea, OH Second Chance Animal Rescue &

Education Network, Madison, WI Second Chance Thoroughbred Adoption

Agency, Blanchard, MI Shawn K. Crawford Memorial Education

Foundation, Chicago, IL Sierra Leone Association of Michigan,

Inc., Oak Park, MI Skills Ville Youth Corporation,

Detroit, MI Sleeping Bear Literacy Foundation,

Chelsea, MI Slovak-American International Cultural

Foundation, Inc., Wauconda, IL Slovenians of California, Fontana, CA Small Fri Academy, Inc., Merrillville, IN Smart N Safe Foundation, Hemet, CA Society for Manic Depression,

Las Vegas, NV Society for the Advancement of African

Americans, Detroit, MI Sonye, Chicago, IL South Euclid Lyndhurst Youth Football,

Lyndhurst, OH South Suburban and Vicinity Ministers

Fellowship, Harvey, IL Southeastern Indiana Emmaus

Community, Inc., Dillsboro, IN Southern California Public Transportation

Corporation, Irvine, CA Southern California Velodrome

Association, Encinitas, CA Southern Illinois Evangelistics

Association, Carbondale, IL Southwest Illinois Swimming Association,

Godfrey, IL Sri Venkateswara Psychiatric Foundation,

Incorporated, Bloomfield, MI St. Elmo Fifth Quarter, St. Elmo, IL St. Joseph Community Programs, Inc.,

Detroit, MI Standardbred Pleasure Horse Organization

SPHO Midwest, Aurora, IL Stars of Lebanon American Society of

Cleveland, Cleveland, OH Stewart Francke Leukemia Foundation,

Bloomfield, MI Stop the Abuse Against Forever, Inc.,

Spiceland, IN

NGB Community Outreach and Nonprofit

Housing Corporation, Ecorse, MI North American Association for Service

Education and Relief, Alta Loma, CA Northrop Choral Association,

Fort Wayne, IN Northwest Ohio Junior Baseball Club,

Fostoria, OH Northwest Ohio Sports, Inc., Toledo, OH OBCA Housing Corporation, Detroit, MI Oceanside Community Consortium

Board, Oceanside, CA Of Course It Is Productions, Chicago, IL Ohio Opera Theatre, Canton, OH Ohio Valley Animal Shelter, Incorporated,

Cannelton, IN Ohio Youth Athletics Support Group,

Akron, OH Okinawan Non Profit Karate Group,

Escanaba, MI Omega-Alpha Club, Midland, MI On With the Show Theatre Company,

Maywood, IL Operation Reapp, Ontario, CA Oponganon Sa Amerika, Cerritos, CA Orange County Blaze Softball Club,

Laguna Niguel, CA Orange Countys Helping Hands

Foundation, Irvine, CA Ottawa County Realtors Charitable Tr

Fund, Port Clinton, OH Own 4 Less, Inc., Lakewood, CA Painting San Diego, La Jolla, CA Palm Springs Pride, Palm Springs, CA Parker Family Gospel Tour, Inc.,

E. Palestine, OH Parkinsons Movement and Disorder

Foundation, Fountain Valley, CA Pastoral Care and Counseling Ministry of

Southern California, Laguna Hills, CA Path to Rome, Chicago, IL Patriots American Legion Baseball

Boosters, Buffalo Grove, IL Pause for Patriotism, Bradley, IL PBA Tour Foundation, Inc., Akron, OH Perry County Museum, Inc.,

Cannelton, IN Phillip Street Friends, Southfield, MI Phoenician Society, Inc., Indianapolis, IN PJAM, Inc., National City, CA Play and Learn, Incorporated,

Diamond Bar, CA Polish Humanities Foundation,

Chicago, IL Preparatory Youth-Sports, Inc.,

Indianapolis, IN Prescription Dog Love, Inc., Seville, OH

Preserving Communities Through

Economic Unity, Harvey, IL Price Adult Family Homes, Toledo, OH Project HMS Detroit, Canada Project Impact-Plus, Champaign, IL Promoting Peace in Our Communities,

W. Bloomfield, MI PTSA Michigan Congress of Parents

Teachers and Students, Walker, MI Quo Vadis, Redlands, CA Rahmat-E-Alam Foundation,

Hoffman Estate, IL Rainbow Steps to Nature,

Traverse City, MI Ralph Bell Little Egypt Crusade, Inc.,

Centralia, IL Rapid River Anishnabeg Powwow Assoc.,

Rapid River, MI Ray Shine Foundation, Inc., Artesia, CA Reaching Kids Foundation,

Costa Mesa, CA Redlands Theater Arts Corporation,

Redlands, CA Reflections of Love, Inc., Chicago, IL Restoration, Hillsdale, MI Retrouvaille of Orange Coast, Inc.,

Orange, CA Rexford Center for Therapeutic Riding,

New Haven, MI Rick Sullivan Foundation, Oak Forest, IL Ridgewood Students Music Education

Booster Association, Inc., W. Lafayette, OH Rising Sons-Alpha Psi Omega,

Toledo, OH Rising Star Ministries, Inc.,

Jacksonville, IL Riverboat Child Care Center, Inc.,

Madison, IN Robbins Action to Deliver Shelter, Inc.,

Robbins, IL Rose of Sharon Development Corporation,

Detroit, MI Rose Reder Memorial Scholarship Fund,

Toledo, OH Round Lake Area B E S T, Incorporated,

Round Lake, IL RTW Services, Inc., Garden Grove, CA Rugrats, Inc., Grayling, MI Running Rebel Track Club,

Cuyahoga Falls, OH Rural Community Assistance Center,

New Berlin, IL Rutland Township Historical Society,

Hampshire, IL Saginaw Clergy Community Development

Corporation, Saginaw, MI

April 5, 2004 713 2004-14 I.R.B.

Zeta Rho Foundation, Inc.,

Harbor City, 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.

New Revision of Publication 971, Innocent Spouse Relief (And Separation of Liability and Equitable Relief)

Announcement 2004–24

Publication 971, revised March 2004, is now available from the Internal Revenue Service. It replaces the July 2003 revision. It discusses the innocent spouse relief provisions available to taxpayers whose spouses improperly report or omit items on their joint tax returns.

You can get a copy of this publication by calling 1–800–TAX–FORM (1–800–829–3676) or by writing to the IRS Forms Distribution Center nearest you. Check your income tax package for the address. The publication is also available on the IRS Internet website at www.irs.gov .

Deletions From Cumulative List of Organizations Contributions to Which are Deductible Under Section 170 of the Code

Announcement 2004–27

The name of an organization that no longer qualifies as an organization described in section 170(c)(2) of the Internal Revenue Code of 1986 is listed below.

Generally, the Service will not disallow deductions for contributions made to a

Straight Legs Foundation,

Palm Desert, CA Stretching the Limits II, Beachwood, OH Students Helping Seniors, Inc.,

Swartz Creek, MI Sugoi Ministry, San Diego, CA Summit Housing Consortium, Inc.,

Bloomington, IN Sunrise Ballet Theatre, Anaheim, CA Swann Gallery Educational Corporation,

Detroit, MI Taft Homes Resident Council, Peoria, IL Tailored Living Concepts, Stanton, MI Talking Bible Project, Escondido, CA TDM, Inc., Indianapolis, IN Tee and Company Community Choir of

Joliet, Inc., Joliet, IL Thunder Bay Soccer Association,

Alpena, MI Todd Ministries International,

Costa Mesa, CA Tongan Charity Community of Orange

Los Angeles & San Bernardino Cntys, Claremont, CA Total Living Concepts, Inc., Hemet, CA Traveling Trunk, Santa Ana, CA T R E E S Training Reaching Educating

Empowering for Success, Detroit, MI Treesamerica, Incorporated, Derby, KS Triple Eagle Ranch, Encinitas, CA Triumph Ministry Group, Gates Mills, OH Tru-Sources Assisted Living Facilities,

University Park, IL Tustin Youth Football, Inc., Tustin, CA Ultimate Goals of America, Inc.,

Chicago, IL United Cambodian Charity, Inc.,

Lemon Grove, CA United Community Service of Harvey,

Incorporated, Chicago, IL Universal Language Foundation, Inc.,

Indianapolis, IN Upward Bound Recovery Ctr.,

Indianapolis, IN Urban Love Community Development

Corporation, Chicago, IL Urban Non Profit Development

Corporation, Detroit, MI U S Missionaries Aid Relief, Ltd.,

Evergreen Park, IL Venerations, La Mesa, CA Versailles Community Center, Inc.,

Versailles, IN VEVE Visual Environments for Visual

Education, San Diego, CA Vic Miller Foundation, Novi, MI Victorious Living, Rialto, CA Victory Foundation, Inc., Cleveland, OH

Vigo County Agencies of Emergency

Response, Incorporated, Terre Haute, IN Villa Park, Inc., Carbondale, IL Virtual Christianity, Inc., Lincoln, IL Vision Community Outreach

Organization, Detroit, MI Vision for the Advancement of Twinsburg

Township, Twinsburg, OH Vision Thru Fine Art, Inc., Chicago, IL Visions of Grace Urban Enrichment

Community Center, Inc., Markham, IL Visual Archives Foundation,

Temecula, CA Volunteers for Animals, Memphis, TN Warsaw Community Schools Theater

Boosters, Warsaw, IN Washington Park Foundation, Chicago, IL We Too Club, Inc., Sandusky, OH Wesley Foundation, Shadyside, OH West Hills High School Foundation, Inc.,

Santee, CA West Michigan Waves Disabled Sports

Team, Grand Rapids, MI West Town Alternative Health Project,

Chicago, IL Westside Pastoral Coalition for AIDS,

Chicago, IL WFC Foundation, Springfield, IL White County Family YMCA, Inc.,

Monticello, IN Whiteside County Crime Stoppers

Program, Inc., Sterling, IL William Simpson Essay Scholarship

Foundation, Park Forest, IL Willingham Foundation, East Lansing, MI Wings of Hope Training Center,

Chicago, IL Women Quest, Lansing, MI World Bar Association,

San Juan Capistrano, CA World Food and Disaster Relief

Programme, Inc., Madison Heights, MI World Harvest Ministries, Inc.,

Evansville, IN World Sports Production, Inc.,

Olympia Fields, IL Yemen Arab American Center for

Economic and Social Service, Detroit, MI You Can Beat the Odds, Inc.,

Little Rock, AR Young Dads, Inc., Grand Rapids, MI Youth Enterprises, Chicago, IL Youth Excellence in Sports, Inc.,

Traverse City, MI Youth Learning Innovation & Networking

for Knowledge & Success, Detroit, MI

2004-14 I.R.B. 714 April 5, 2004

particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.

Innovative Horizons, Inc.

Bartlesville, OK

listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an organization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was

in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation.

If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on November 5, 2001, and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more

April 5, 2004 715 2004-14 I.R.B.