Part IV. Items of General Interest

Notice of Proposed Rulemaking and Notice of Public Hearing

Partner’s Distributive Share

REG–144620–04

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

SUMMARY: The proposed regulations provide rules for testing the substantiality of an allocation under section 704(b) where the partners are look-through entities or members of a consolidated group, provide additional guidance on the effect of other provisions, such as section 482, upon the tax treatment of a partner with respect to the partner’s distributive share under section 704(b), and revise the existing rules for determining the partners’ interests in a partnership. The proposed regulations affect partnerships and their partners. This document also provides notice of a public hearing on these proposed regulations.

DATES: Written or electronic comments must be received by January 25, 2006. Outlines of topics to be discussed at the public hearing scheduled for February 15, 2006, at 10 a.m., must be received by January 25, 2006.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–144620–04), 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–144620–04), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC, or sent electronically, via the IRS internet site at http://www.irs.gov/regs or via the Federal eRule making Portal at http://www.regulations.gov(IRS REG–144620–04) . 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, Timothy J. Leska, (202) 622–3050; concerning submissions and the hearing, LaNita Van Dyke, (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Subchapter K is intended to permit taxpayers to conduct joint business activities through a flexible economic arrangement without incurring an entity-level tax. To achieve this goal of a flexible economic arrangement, partners are generally permitted to decide among themselves how a partnership’s items will be allocated. Section 704(a) of the Internal Revenue Code (Code) provides that a partner’s distributive share of income, gain, loss, deduction, or credit shall, except as otherwise provided, be determined by the partnership agreement.

Section 704(b) places a significant limitation on the general flexibility of section 704(a). Specifically, section 704(b) provides that a partner’s distributive share of income, gain, loss, deduction, or credit (or item thereof) shall be determined in accordance with the partner’s interest in the partnership (determined by taking into account all facts and circumstances) if the allocation to a partner under the partnership agreement of income, gain, loss, deduction, or credit (or item thereof) does not have substantial economic effect. Thus, the statute provides that partnership allocations either must have substantial economic effect or must be in accordance with the partner’s interest in the partnership.

Section 1.704–1(b)(2)(i) provides that the determination of whether an allocation of income, gain, loss, or deduction to a partner has substantial economic effect involves a two-part analysis. First, the allocation must have economic effect within the meaning of §1.704–1(b)(2)(ii). Second, the economic effect of the allocation must be substantial within the meaning of §1.704–1(b)(2)(iii).

For an allocation to have economic effect, it must be consistent with the underlying economic arrangement of the partners. This means that, in the event that

there is an economic benefit or burden that corresponds to the allocation, the partner to whom the allocation is made must receive such economic benefit or bear such economic burden. §1.704–1(b)(2)(ii)( a ). Under §1.704–1(b)(2)(ii)( b ), an allocation of income, gain, loss, or deduction (or item thereof) to a partner generally has economic effect if, and only if, throughout the full term of the partnership, the partnership agreement provides: (1) for the determination and maintenance of the partners’ capital accounts in accordance with §1.704–1(b)(2)(iv); (2) for liquidating distributions to the partners to be made in accordance with the positive capital account balances of the partners; and (3) for each partner to be unconditionally obligated to restore the deficit balance in the partner’s capital account following the liquidation of the partner’s partnership interest. In lieu of satisfying the third requirement, the partnership may satisfy the qualified income offset rules set forth in §1.704–1(b)(2)(ii)( d ). An allocation also may be deemed to have economic effect if it satisfies the economic effect equivalence rules of §1.704–1(b)(2)(ii)( i ).

Section 1.704–1(b)(2)(iii)( a ) provides as a general rule that the economic effect of an allocation (or allocations) is substantial if there is a reasonable possibility that the allocation (or allocations) will affect substantially the dollar amounts to be received by the partners from the partnership, independent of tax consequences. Notwithstanding the previous sentence, the economic effect of the allocation (or allocations) is not substantial if, at the time the allocation (or allocations) becomes part of the partnership agreement, (1) the after-tax economic consequences of at least one partner may, in present value terms, be enhanced compared to such consequences if the allocation (or allocations) were not contained in the partnership agreement, and (2) there is a strong likelihood that the after-tax economic consequences of no partner will, in present value terms, be substantially diminished compared to such consequences if the allocation (or allocations) were not contained in the partnership agreement. In determining the after-tax economic benefit or detriment to a partner, tax consequences

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is a member of a group filing (or required to file) consolidated returns for the tax year. See §1.1502–1(h).

The proposed regulations clarify that for purposes of §1.704–1(b)(2)(iii)( a )( 1 ), the after-tax economic consequences of a partner resulting from an allocation or allocations must be compared to the after-tax economic consequences to that partner if the allocation or allocations were made in accordance with the partners’ interests in the partnership. The proposed regulations also remove the per capita presumption in §1.704–1(b)(3)(i), which reaches the correct result in very few cases. Finally, the regulations include an example illustrating a fact pattern to which, apart from the application of section 704(b), other sections may apply.

Proposed Effective Date

These regulations are generally proposed to apply for partnership taxable years beginning on or after the date on which final regulations are published in the Federal Register . No inference is intended as to the tax consequences of partnership allocations made in taxable years beginning before the effective date of these regulations.

Special Analyses

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

that result from the interaction of the allocation with such partner’s tax attributes that are unrelated to the partnership will be taken into account.

If the partnership agreement provides for an allocation of income, gain, loss, deduction or credit to a partner that does not have substantial economic effect, then the partner’s distributive share of that item is determined in accordance with the partner’s interest in the partnership. References in section 704(b) or §1.704–1 to a partner’s interest in the partnership, or to the partners’ interests in the partnership, signify the manner in which the partners have agreed to share the economic benefit or burden (if any) corresponding to the income, gain, loss, deduction, or credit (or item thereof) that is allocated, taking into account all facts and circumstances relating to the economic arrangement of the partners.

Section 1.704–1(b)(3)(i) provides that all partners’ interests are presumed to be equal (determined on a per capita basis). However, this presumption may be rebutted by the taxpayer or the IRS by establishing facts and circumstances that show that the partners’ interests in the partnership are otherwise.

Section 1.704–1(b)(1)(iii) provides that an allocation that is respected under section 704(b) nevertheless may be reallocated under other provisions, such as section 482, section 704(e)(2), section 706(d) (and related assignment of income principles), and §1.751–1(b)(2)(ii).

On April 21, 2004, temporary regulations (T.D. 9121, 2004–1 C.B. 903) relating to the proper allocation of partnership expenditures for foreign taxes were published in the Federal Register (69 FR 21405). In the preamble to those regulations, the IRS and the Treasury Department indicated a concern that some partnerships are taking the position that, in determining if the economic effect of a partnership allocation is substantial, they need not consider the tax consequences to an owner of the partner that result from the allocation. This position is inconsistent with the policies underlying the substantial economic effect rules, because it would allow a partnership to make tax-advantaged allocations if the tax advantages of the allocations accrue to an owner of a partner, rather than to the partner itself.

Explanation of Provisions

These proposed regulations provide that the interaction of a partnership allocation with the tax attributes of owners of look-through entities must be taken into account when testing the substantiality of the allocation to a partner that is a look-through entity. For this purpose, look-through entities include partnerships, S corporations, trusts, certain controlled foreign corporations, and entities that are disregarded for federal tax purposes, such as qualified subchapter S subsidiaries under section 1361(b)(3), entities that are disregarded under §§301.7701–1 through 301.7701–3 of the Procedure and Administration Regulations, or qualified real estate investment trusts (REIT) subsidiaries within the meaning of section 856(i)(2). In general, look-through entities are entities that flow certain tax consequences through to their owners. Although regulated investment companies (RICs) and REITs have certain flow through characteristics, the regulations do not include them in the list of look-through entities, because the Treasury Department and the IRS believe that the burdens of a rule requiring taxpayers to look through these entities in determining the substantiality of partnership allocations generally would outweigh the benefits of such a rule. However, if necessary, RICs and REITs or other look-through entities may be added to the list of look-through entities in future guidance. Comments are requested regarding the treatment of controlled foreign corporations as look-through partners for purposes of §1.704–1(b)(2)(iii)( a )( 2 ) of these proposed regulations. Specifically, comments are requested concerning whether the rule should be limited to those situations in which the controlled foreign corporation owns greater than a threshold minimum percentage interest in the partnership, or only by taking into account the tax attributes of those U.S. shareholders of the controlled foreign corporation owning above a threshold percentage of the stock of the controlled foreign corporation.

The regulations also provide that the interaction of a partnership allocation with the tax attributes of the consolidated group must be taken into account when testing the substantiality of the allocation to a partner that is a member of a consolidated group. A member of a consolidated group

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(b)(2)(iii), the economic effect of an allocation (or allocations) is substantial if there is a reasonable possibility that the allocation (or allocations) will affect substantially the dollar amounts to be received by the partners from the partnership, independent of tax consequences. Notwithstanding the preceding sentence, the economic effect of an allocation (or allocations) is not substantial if, at the time the allocation (or allocations) becomes part of the partnership agreement, the after-tax economic consequences of at least one partner may, in present value terms, be enhanced compared to such consequences if the allocation (or allocations) were not contained in the partnership agreement (and, thus, the allocation or allocations were allocated among the partners in accordance with the partners’ interests in the partnership), and there is a strong likelihood that the after-tax economic consequences of no partner will, in present value terms, be substantially diminished compared to such consequences if the allocation (or allocations) were not contained in the partnership agreement (and, thus, the allocation or allocations were allocated among the partners in accordance with the partners’ interests in the partnership). In determining the after-tax economic benefit or detriment to a partner, tax consequences that result from the interaction of the allocation with such partner’s tax attributes that are unrelated to the partnership will be taken into account. See paragraph (b)(5) Examples 5 and 9 of this section. The economic effect of an allocation is not substantial in the two situations described in paragraphs (b)(2)(iii)( b ) and ( c ) of this section. However, even if an allocation is not described therein, its economic effect may be insubstantial under the general rules stated in this paragraph (b)(2)(iii)( a ). References in this paragraph (b)(2)(iii) to allocations include capital account adjustments made pursuant to paragraph (b)(2)(iv)( k ) of this section.

( 2 ) Partners that are look-through enti- ties or members of a consolidated group ( i ) Rule . For purposes of this paragraph (b)(2)(iii), in determining the after-tax economic benefit or detriment to any partner that is a look-through entity, the tax consequences that result from the interaction of the allocation with the tax attributes of any person that owns an interest in such a partner, whether directly or indirectly through

ments 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 February 15, 2006, at 10 a.m. in the Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Because of access restrictions, visitors will not be admitted beyond the immediate entrance area more than 30 minutes before the hearing starts. For information about having your name on the building access list to attend the hearing, see the FOR FURTHER INFORMATION CONTACT portion of this preamble.

The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who wish to present oral comments must submit written or electronic comments by January 25, 2006, 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 January 25, 2006. 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 this regulation is Timothy J. Leska, Office of the Associate Chief Counsel (Passthroughs & Special Industries). However, other personnel from the IRS and Treasury Department participated in its development.

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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 1.704–1 is amended as follows:

1. Paragraph (b)(1)(ii)( a ) is amended by adding a sentence at the end of the paragraph.

2. Paragraph (b)(1)(iii) is amended by revising the first three sentences and adding a new fourth sentence.

3. Paragraphs (b)(2)(iii)( a ), is redesignated as paragraph (b)(2)(iii)( a )( 1 ) and revised.

4. New paragraph (b)(2)(iii)( a )( 2 ) is added.

5. The last two sentences of paragraph (b)(3)(i) are removed.

6. Paragraph (b)(5) Example 29 and Example 30 are added.

The additions and revisions read as follows:

§1.704–1 Partner’s distributive share.

• • • • (b) - * (1) - * (ii) Effective dates . ( a ) * * * Paragraph (b)(2)(iii)( a )( 2 ) and paragraph (b)(5) Ex- ample 30 of this section apply to taxable years beginning on or after the date on which final regulations are published in the Federal Register .

(iii) Effect of other sections . The determination of a partner’s distributive share of income, gain, loss, deduction, or credit (or item thereof) under section 704(b) and this paragraph (b) is not conclusive as to the tax treatment of a partner with respect to such distributive share. For example, an allocation of loss or deduction to a partner that is respected under section 704(b) and this paragraph (b) may not be deductible by such partner if the partner lacks the requisite motive for economic gain (see, e.g., Goldstein v. Commissioner, 364 F.2d 734 (2d. Cir. 1966)), or may be disallowed for that taxable year (and held in suspense) if the limitations of section 465 or section 704(d) are applicable. Similarly, an allocation that is respected under section 704(b) and this paragraph (b) nevertheless may be reallocated under other provisions, such as section 482, section 704(e)(2), section 706(d) (and related assignment of income principles), and §1.751–1(b)(2)(ii). See paragraph (b)(5) Example 29 of this section. - * *

(2) - * (iii) Substantiality —( a ) In gen- eral —( 1 ) Fundamental principles . Except as otherwise provided in this paragraph

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one or more look-through entities, must be taken into account, and, in determining the after-tax economic benefit or detriment to any partner that is a member of a consolidated group (within the meaning of §1.1502–1(h)), the tax consequences that result from the interaction of the allocation with the tax attributes of the consolidated group and with the tax attributes of another member with respect to a separate return year must be taken into account. See paragraph (b)(5) Example 30 of this section.

( ii ) Definition . For purposes of this paragraph (b)(2)(iii)( a )( 2 ), a look-through entity means—

( A ) A partnership; ( B ) A subchapter S corporation; ( C ) A trust; ( D ) An entity that is disregarded for Federal tax purposes, such as a qualified subchapter S subsidiary under section 1361(b)(3), an entity that is disregarded as an entity separate from its owner under §§301.7701–1 through 301.7701–3 of this chapter, or a qualified REIT subsidiary within the meaning of section 856(i)(2).

( E ) A controlled foreign corporation, as defined in section 957(a), but only with respect to allocations of items of income, gain, loss, or deduction that enter into the corporation’s computation of subpart F income or would enter into that computation if such items were allocated to the corporation (collectively, subpart F items). For purposes of this paragraph (b)(2)(iii)( a )( 2 )( ii )( E ), the rule in paragraph (b)(2)(iii)( a )( 2 )( i ) of this section shall apply only by taking into account the tax attributes of a person that is a United States shareholder of the controlled foreign corporation the amount of whose inclusions of gross income under section 951(a) are affected by the partnership’s allocations of subpart F items (or would be affected if such items were allocated to the corporation).

• • • • (5) Examples . - * * Example 29 . (i) B, a domestic corporation, and C, a controlled foreign corporation, form BC, a partnership organized under the laws of country X. B and C each contribute 50 percent of the capital of BC. B and C are wholly-owned subsidiaries of A, a domestic corporation. Substantially all of BC’s income would not be subpart F income if earned directly by C. The BC partnership agreement provides that, for the first fifteen years, BC’s gross income will be allocated 10 percent to B and 90 percent to C, and BC’s deductions and losses will be allocated 90 percent to B and

10 percent to C. The partnership agreement also provides that, after the initial fifteen year period, BC’s gross income will be allocated 90 percent to B and 10 percent to C, and BC’s deductions and losses will be allocated 10 percent to B and 90 percent to C.

(ii) Apart from the application of section 704(b), the Commissioner may reallocate or otherwise not respect the allocations under other sections. See paragraph (b)(1)(iii) of this section. For example, BC’s allocations of gross income, deductions, and losses may be evaluated and reallocated (or not respected), as appropriate, if it is determined that the allocations result in the evasion of tax or do not clearly reflect income under section 482.

Example 30 . PRS is a partnership with three partners, A, B, and C. A is a corporation that is a member of a consolidated group within the meaning of §1.1502–1(h). B is a subchapter S corporation that is wholly owned by D, an individual. C is a partnership with two partners, E, an individual, and F, a corporation that is a member of a consolidated group within the meaning of §1.1502–1(h). For purposes of paragraph (b)(2)(iii) of this section, in determining the after-tax economic benefit or detriment of an allocation to A, the tax consequences that result from the interaction of the allocation to A with the tax attributes of the consolidated group in which A is a member must be taken into account. In determining the after-tax economic benefit or detriment of an allocation to B, the tax consequences that result from the interaction of the allocation with the tax attributes of D must be taken into account. In determining the after-tax economic benefit or detriment of an allocation to C, the tax consequences that result from the interaction of the allocation with the tax attributes of E and the consolidated group in which F is a member must be taken into account.

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

(Filed by the Office of the Federal Register on November 17, 2005, 8:45 a.m., and published in the issue of the Federal Register for November 18, 2005, 70 F.R. 69919)

Compliance Assurance Process

Announcement 2005–87

The Internal Revenue Service is conducting a pilot program, the Compliance Assurance Process (CAP), for large business taxpayers. Under this pilot program, the Service’s Large and Mid-size Business Division is working with large business taxpayers to identify and resolve issues prior to the filing of a tax return. The objective of the program is to reduce taxpayer burden and uncertainty while assuring the Service of the accuracy of tax returns prior to filing, thereby reducing

or eliminating the need for post-filing examinations. The CAP will reduce taxpayer burden through the contemporaneous exchange of information about completed events and transactions that affect tax liability, rather than through the traditional examination process. The CAP will also foster compliance by helping the Service achieve its goal of shortening examination cycles and increasing currency for taxpayers while enhancing the accurate, efficient, and timely final resolution of increasingly complex corporate tax issues. In addition, the program will assist in increasing audit coverage by providing a more efficient use of audit resources. Finally, the program will allow taxpayers to better manage tax reserves and ensure more precise reporting of earnings on financial statements.

Several large business taxpayers volunteered to participate in the CAP pilot program during the 2005 tax year. Upon its conclusion, the Service will evaluate the pilot program, consider necessary adjustments, and determine whether to make the program permanent.

DESCRIPTION OF PROGRAM

The CAP requires extensive cooperation between the Service and participating taxpayers. Throughout the tax year, these taxpayers are expected to engage in full disclosure of information concerning their completed business transactions and their proposed return treatment of all material issues. Participating taxpayers that resolve all material issues will be assured, prior to the filing of the tax return, that the Service will accept their tax return, if filed consistent with the resolutions (described below), and that no post-filing examination will be required. If all issues cannot be resolved prior to the filing of the return, the program will identify the remaining items that will need to be resolved through traditional examination processes.

Significant aspects of the CAP include:

completed transactions in a manner that is timely and allows a meaningful analysis of material items affecting the tax return;

immediately after completion, while

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issues prior to filing the tax return, the Service will provide the taxpayer with written confirmation that, subject to the completion of a post-filing review, it will accept the taxpayer’s return as to the resolved issues if the return is filed consistent with the closing agreement(s).

Once the taxpayer files the return, the Service and the taxpayer will participate in a joint post-filing review to confirm that all resolved issues were reported as agreed. It is expected that this post-filing review will be completed within 90 days of the filing of the return. If the post-filing review reveals that the return is not consistent with the terms of the closing agreement(s), or reveals that there are items on the return presenting material issues that were not adequately disclosed, the Service will examine all inconsistent or inadequately disclosed issues through the traditional examination process. The taxpayer will retain access to all available Appeals proceedings with respect to any traditional examination that is conducted.

Although the CAP is not subject to the restrictions in section 7605(b), the Service will only reopen the year after the post-filing review has occurred and any traditional examination of inconsistent or inadequately disclosed issues has concluded if the circumstances set out in section 5 of Rev. Proc. 2005–32, 2005–23 I.R.B. 1206, apply.

CONTACT INFORMATION

For further information regarding this announcement, contact Christopher Johnson, LMSB Communications and Liaison Director, at (202) 283–8588 (not a toll-free number) or by email at chris.johnson@irs.gov .

Request for Applications to Participate in the 2006 IRS Individual e-file Partnership Program

Announcement 2005–88

The Stakeholder Partnerships, Education and Communication (SPEC) function within the Internal Revenue Service (IRS) is continuing its efforts to establish IRS e-file partnerships with various entities. The IRS is seeking non-monetary e-file

knowledgeable personnel and necessary records are most accessible;

positions between the Service and the taxpayer;

prior to filing.

The program does not include providing participating taxpayers with guidance on or resolving prospective or incomplete transactions outside of existing procedures.

The Service has assigned an Account Coordinator to each taxpayer participating in the CAP pilot program. The Account Coordinator serves as the primary point of contact with the Service for issue resolution. The Account Coordinator will review the taxpayer’s audit history and prior tax issues and will become familiar with relevant industry trends and current business practices of the taxpayer. To ensure proper and accurate evaluation of all tax items, the Account Coordinator will consult with Service specialists, Appeals personnel, and Chief Counsel advisors. Similarly, participating taxpayers have designated personnel to act as the primary contact for the Account Coordinator.

The Service has also asked the participating taxpayers, if relevant:

charts reflecting all related entities and the flow of relevant information involving those entities;

events that will affect reporting for the tax year;

sources for disclosure of requested information.

All information provided to the Service in connection with the CAP concerning the participating taxpayers’ tax liability and all closing agreements entered into between the Service and the participating taxpayers are return information protected from disclosure by the confidentiality provisions of section 6103.

A standardized memorandum of understanding (MOU), which sets the ground rules for the CAP, has been executed between each participating taxpayer and the assigned Account Coordinator. The MOU defines specific objectives for the program, sets parameters for the disclosure of information, describes the methods of communication, and serves as a statement of the parties’ commitment to good-faith participation in the CAP. Adherence to the processes established by the MOU is an integral part of resolving identified issues and assuring the Service of the accuracy of the tax return. Failure to comply with the terms of the MOU may result in removal of the taxpayer from the program.

The Account Coordinator and the taxpayer will work together during the process to identify and resolve issues. As issues are resolved, the Account Coordinator and the taxpayer will enter into Issue Resolution Agreements (IRAs) recording the resolutions. When necessary, the parties may use existing issue resolution processes, such as Fast Track Settlement (Rev. Proc. 2003–40, 2003–1 C.B. 1044). After the close of the tax year, the Account Coordinator will incorporate the resolution of the identified issues in Form 906 closing agreement(s), based on the completed IRAs. The CAP does not change or modify LMSB’s current authorities to resolve cases.

If the taxpayer has fully complied with the terms of the MOU, and all identified issues have been resolved through closing agreement(s), the Service will provide the taxpayer with written confirmation that, subject to the completion of a post-filing review, it will accept the taxpayer’s return if it is filed consistent with the closing agreement(s).

If the taxpayer has fully complied with the terms of the MOU, but the Service and the taxpayer cannot resolve all identified

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ment Options.

PARTICIPATION STANDARDS & REQUIREMENTS

Participants will abide by the following standards and requirements, if applicable:

in the electronic tax preparation and filing industry in 2004 and 2005.

Originator, Intermediate Service Provider, Software Developer, and Transmitter) must be in good standing with the IRS, comply with the e-file requirements stated in the IRS Revenue Procedure 2005–60, current versions of Publications 1345,1345A, 3112, and pass the annual Suitability and Participants Acceptance Testing (PATS) conducted by the IRS. You can find the IRS e-file technical publications on the IRS web site at http://www.irs.gov .

privacy provisions of 26 U.S.C. §7216 and U.S.C.§ 6103.

prove and display third-party certifications for the privacy/security/authenticity of its online service. The Participant’s web site should display the third-party certification and privacy seals. Participants must use software that will enable their web sites to state their privacy practices in a standard machine-readable format that can be retrieved automatically and interpreted easily by users.

curity provisions in applicable Department of Treasury/IRS rules including, but not limited to, 31 C.F.R. Part 10, IRS Rev. Proc. 2005–60, current versions of IRS Publications 1345, 1345A, and 3112, and 26 U.S.C. §7216. In addition, Participants must comply with the Federal Trade Commission’s Graham Leach Bliley Act to protect the security of taxpayer information.

partnerships for Filing Season 2006 . No applications for funding (monetary compensation) will be considered. A commercial business, non-profit organization, state government or local government may submit applications. Applications are not solicited from other Federal government agencies. The program is an annual program and covers the period January through October 16, 2006. All prior year partners must reapply for Filing Season 2006.

BACKGROUND

The IRS Restructuring and Reform Act of 1998 (RRA 98) requires the IRS to receive 80 percent of all returns electronically by 2007. RRA 98 authorized the IRS Commissioner to promote the benefits of and encourage the use of e-file services. As a result of RRA 98, the IRS enters into non-monetary partnerships with businesses to offer low cost income tax preparation and electronic filing for qualified taxpayers.

Continued opportunities for growth in electronic tax administration are evident. For Filing Season 2005, the IRS received 68 million electronically filed returns, an increase of 11% over the previous year. Visit the IRS web site, http://www.irs.gov, for the most current results from market research on individual taxpayers, including demographic data and psychographic studies. This research includes attitudinal surveys, customer satisfaction surveys, Public Service communications, tracking studies and any focus group results.

The IRS accepts many forms and schedules for electronic filing. Visit the IRS web site for a complete listing of accepted forms and schedules.

FILING SEASON 2006

For Filing Season 2006, the IRS will focus on the 1040 series income tax returns covering “IRS e-file Using a Tax Preparer” and “IRS e-file Using a Personal Computer.” Additional emphasis is being placed on the following features: “Self-Select Personal Identification Number (PIN) for e-file”, “Using e-file for Federal/State Returns”, and “Electronic Payment Options” for balance due and estimated payment options.

A major area of emphasis is to reach those taxpayers who continue to file com

puter prepared paper returns (v-code). Research indicates that the number of v-code returns continues to increase (76% of all v-code returns are prepared by paid preparers). Emphasis should be placed on converting v-code filers to electronically file their returns through the marketing and promotion of the benefits of e-file.

Participants should also reach those individuals eligible for the Earned Income Tax Credit (EITC). It’s important to note that many of the military families may also qualify for EITC since supplemental payments and combat pay are exempt from the income calculations.

Participants are encouraged to focus on reducing the number of errors made on electronically filed returns, including those returns claiming EITC. The “EITC Assistant” is an interactive web-based tool designed to help tax professionals determine whether or not their clients are eligible for EITC, and why. The “EITC Assistant” is a step taken by the IRS to maximize taxpayer participation, minimize EITC errors while increasing compliance. You can find the “EITC Assistant” on the IRS web site at http://www.irs.gov/eitc.

The IRS expects all accepted partners to aggressively market, promote and offer e-file product and services through October 16, 2006. The IRS will supply the partners with the key marketing messages, when they become available, that support electronic filing during the Filing Season (January through April 15, 2006) and post- Filing Season (April through October 16, 2006). These messages should be used in your promotion of electronic filing and placed on your web site. Utilization of these messages will ensure uniformity and maximize public awareness. For additional information on the various e-file programs, features, and market research, visit the IRS web site at http://www.irs.gov .

Participants will receive hyperlinks from the IRS web site — irs.gov (Partners Page) — to the Participant’s web site. Potential Participants may request links for the following categories:

als

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ucts and services to filers of the 1040 Series returns, including complex returns, balance due returns, Federal/State returns, and 1040EZ returns.

ing the number of errors on electronically prepared returns, including those returns claiming EITC.

e-file features including the Self-Select PIN, Electronic Payment Options, Federal/State e-file, Direct Deposit of Refunds, etc.

and offer e-file services through October 16, 2006. The Participant should use the key marketing messages, provided by the IRS, for the promotion of Filing Season and Post Filing Season electronic filing and place them on your web site.

one (1) hyperlink on the IRS e-file Partners Page per category:

with a description ( not to exceed 350 characters including spaces ) for each hyperlink placed on the IRS e-file Partners Page. The hyperlink description may describe multiple offers/services.

ply the IRS with a link to their web site in their application or no less than ten (10) business days before the site is expected to go live (start date of electronic filing). All sites must be examined before they can be posted on the

IRS e-file Partners Page. The purpose of the review is to ensure each Participant’s web site complies with the standards and requirements set forth in this announcement.

best practices to ensure the taxpayer return information entrusted to them is secure and the privacy of such information is maintained. In any instance where a Participant contracts with a service provider to obtain technology services, it will adhere to this standard. To the extent multiple Participants rely on a single service provider for front or back office services (not ISP services), it is even more critical that such taxpayer security and privacy be maintained with respect to others who share these services.

tionally adequate and consistent with the Participant’s offer in permitting a taxpayer to complete their return. Failure to comply may result in the Participant’s removal from the Partners Page.

required to provide their SSN, it must be part of a secure session. Participants must not be permitted to use SSNs as a requested field for registration purposes or for establishing a taxpayer account on-line.

e-file logo on the landing page of its web site. The e-file logo and guidelines can be downloaded from http://www.irs.gov .

the IRS web site, http://www.irs.gov, from its web site.

tain inappropriate content. Further, the Participant will ensure that all online advertising and hyperlinks posted on its web site neither promote nor link to inappropriate content.

customer service support options (including associated fees, if any) and privacy policy on the landing page of its web site. Participants must provide

taxpayers with a business contact point by on-line form, email, mail, facsimile or telephone number which the Participant maintains and reviews. The Participant must provide taxpayers a method to obtain the status of their tax return. Taxpayers can be directed to “Where’s My Tax Refund?” located on the Homepage of the IRS web site at http://www.irs.gov .

play on the landing page of its web site the promotion of income tax preparation and electronic filing for individuals eligible for EITC. Participants are encouraged to offer a monetary incentive (reduced return preparation and electronic filing costs) to attract these taxpayers.

tions in the forms and schedules that are likely to be needed to support their offerings. The Participant should clearly display a listing of the forms and schedules that will be offered either visible or accessible from the Participant’s landing page.

ther visible or accessible from the Participant’s landing page a listing of the States that their software supports.

fer commercial products and services consistent with obtaining the positive consent of the user as described in 26 U.S.C. 7616 before offering fee-based products and services not related to tax preparation.

in their tax preparation software that will “time out” the session after no changes are made for a period of time consistent with best practices approved by privacy seal certification programs.

appropriate disclosure of a taxpayer’s return information to a member of the public, such as another taxpayer or other unauthorized party in the course of providing e-file services as a result of their hyperlink on the IRS e-file Partners Page, will immediately notify

December 12, 2005 1147 2005–50 I.R.B.

the IRS of this disclosure and then shut down its program immediately.

notification ( e.g., email) to the IRS of changes, additions and deletions to URLs, link descriptions, etc.

mance Reports to the IRS Point of Contact by May 31, 2006, covering Filing Season activity, and by Novem- ber 15, 2006, covering post Filing Season activity. The reports will cover information such as e-file statistics (including the number of EITC returns), web site activity and anything else the IRS deems necessary. The IRS Point of Contact will provide written reporting instructions and requirements to accepted Participants.

PERFORMANCE STANDARDS

ticipant’s hyperlink(s) available on the IRS web site for the start of electronic filing, subject to the participant’s passing of the annual Suitability, PATS testing, and web site review. Hyperlinks will remain on the IRS e-file Partners Page through October 16, 2006, or at the discretion of the IRS .

sis the Participants’ offers listed on the IRS e-file Partners Page.

IRS e-file Partners Page to the Free File web page.

the Participant’s written request for changes/additions/deletions to a URL, link description, etc.

web site(s) at any time to ensure that participation requirements are met.

ferings or products, but will promote the IRS e-file Partners Page. A “Site Disclaimer” will be displayed upon exiting the IRS web site before the user enters the Participant’s web site.

PARTICIPATION TERMS

The IRS Individual e-file Partnership Program is an annual program, and all prospective Participants, including returning Participants, must reapply each year following the guidelines in the Internal Revenue Bulletin announcement advertised on http://www.irs.gov .

pant is not meeting the “Participation Standards & Requirements,” the IRS may terminate its partnership with the Participant and remove the participant’s hyperlink(s) from the IRS e-file Partners Page.

mediately if it wishes to terminate its partnership with the IRS. The notification should be submitted through email to the IRS Point of Contact or sent to the Point of Contact’s address indicated below in “IRS Point of Contact/Application Submission.”

APPLICATION PROCESS

Applications should contain the following information, if applicable :

of Contact (name, title, address, cell/telephone number, fax number and email address) for discussion of your application and program participation.

tion software and the States it will support.

Filer Identification Number(s) (EFIN) and/or Electronic Transmitter Identification Number (ETIN).

and provide a short description (not to exceed 350 characters including spaces) of the services and products

to be promoted on the IRS e-file Partners Page. In addition, the Applicant should provide the associated URL(s). The URL(s) cannot contain the word “IRS.” Indicate the category for each hyperlink:

administrators ( i.e., VeriSign, Thawte, Truste) that certify the privacy/security/authenticity of its online service and provide certification that the Applicant’s current status is active and in good standing.

tion vehicle(s) ( i.e., web site, marketing/promotional products, etc.) to market and promote your products and services and IRS e-file . Describe the incentives, discounts, offers, benefits to taxpayers or other specific approaches to increase e-file volumes.

to reach taxpayers that claim EITC. This can include marketing/promotional efforts, monetary incentives (reduced return preparation and electronic filing costs).

to reduce errors on electronically filed returns, including those returns claiming EITC.

with the privacy and disclosure provisions of 26 U.S.C. 7216 and 26 U.S.C. 6103.

with the Federal Trade Commission’s Gramm-Leach Bliley (GLB) Act of 1999, Financial Privacy Rule and Safeguard Rules.

2005–50 I.R.B. 1148 December 12, 2005

IRS POINT OF CONTACT/APPLICATION SUBMISSION

Applications to participate in the IRS Individual e-file Partnership Program should be submitted as a Word document through email at **_WIe-filepartners@irs.gov_* (Please make sure there is an asterisk before the WI (Wage and Investment) when submitting an application.) An application may also be sent to Karen Bradley at the following address:

Internal Revenue Service 5000 Ellin Road Lanham, MD 20706 Attention: Karen Bradley

SE:W:CAR:SPEC:FO:IMS C4–132

If you wish to have a hyperlink(s) on the IRS e-file Partners Page for the start of electronic filing, your applica- tion must be submitted by December 30, 2005. If your application is received after the deadline, there is no guarantee that it will be accepted by the IRS.

Any questions regarding the development of applications, the submission of Performance Reports, or any other type of contact for this program should be directed to Karen Bradley at (202) 283–7034 or through email to **_WIe-filepartners@irs.gov_* . Please make sure there is an asterisk (*) before the WI (Wage and Investment) for any type of email contact.

APPLICATION EVALUATION

All applications will be evaluated based on the required information provided to the IRS and the applicant’s ability to fulfill their responsibilities. Prior year performance will also be considered when evaluating applications from returning partners.

ACCEPTANCE/DENIAL OF APPLICATION

If your application is accepted, you will receive written notification from the IRS. If your application is denied, you will receive written notification from the IRS with an explanation of the denial.

e-Help

If you have any questions related to e-products/electronic filing, you can contact the e-Help Desk toll-free at 1–866–255–0654 . The e-Help desk assistors are ready to respond to non-account related questions and issues. You can also go to http://www.irs.gov where the IRS houses a variety of information which impacts the tax professional.

Foundations Status of Certain Organizations

Announcement 2005–89

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.

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:

ACHI, Inc., A Not for Profit Corporation,

Brooklyn, NY African-American Health Network,

Cincinnati, OH Agape Outreach and Development Center,

Kansas City, MO All About Us, Inc., Johnstown, PA American Associates of York Minster

Fund, Washington, DC American Friends of B’Nai Levy

Foundation, Brooklyn, NY American Youth Athletic and Scholarship

Fund, Inc., Bethel, OH American Youth Institute, Atlanta, GA Appalachian Domestic Violence

Collaborative, Jackson, OH Appalachian Leadership Program,

Boone, NC

Assistance Dogs for Freedom, Inc.,

Northbrook, IL Avondale Public Safety Task Force, Inc.,

Cincinnati, OH Baptist Ministerial Association,

Laurel, MS Bell Atlantic Classic Charities, Inc.,

Silver Spring, MD Belpre Bike Rodeo Committee,

Belpre, OH Bentley Woods, Inc., Lebanon, OH Big Dog Little Dog, Los Angeles, CA Bio Environmentally Degradable Polymer

Society, Inc., Wyoming, MN Boyers Pond-Shekinah Ministries,

Central City, PA Build a Dream Committee, Marion, OH Burns Community Development

Foundation, Columbia, SC Camp Mitakuye Oyasin, Inc., Alpine, UT Capital City Pipes Housing &

Community Development Corporation, Tallahassee, FL Capital City South Foundation, Inc.,

Baton Rouge, LA Career Explorers, Inc., Timonium, MD C A R E S, Lincoln, NE Careysburg Association of North

America, Marietta, GA C A T S, Inc., of Ft. Walton Beach,

Ft. Walton Beach, FL Center for Life & Family, Pittsburgh, PA Central Ohio Association of Foster and

Adoptive Families, Columbus, OH Charity Ball Organization, Granville, OH Charity Riders of Central PA,

Harrisburg, PA Chesterfield Wilson Community

Development, Inc., Miami, FL Chesterfield Wilson Ministry, Inc.,

Miami, FL Chicago Metropolitan Development

Association, Chicago, IL Children Educational Program,

Jackson, MS Childrens Hope Foundation Charitable

Trust, Newton Square, PA Chosen Generation, Inc., Columbus, MS Christianity Organization Relief for

Southern Sudan, Coon Rapids, MN Cibolo Valley Animal Rescue, Cibolo, TX College Resource Center of Wilmington,

Inc., Wilmington, DE Columbus Development Committee, Inc.,

Whiteville, NC Community Coordinating Council,

McCormick, SC

December 12, 2005 1149 2005–50 I.R.B.

Institute for Caribbean and International

Studies, Washington, DC Institute for Creative Understanding,

Columbus, OH Interdenominational Christian Mens

Network, Inc., South Easton, MA International Society of Chairborne

Philosophers Poets Artists Student, Sacramento, CA Jack Parish Foundation, Terrace Park, OH Jeffreys Charitable Trust, Leetsdale, PA John Leopold Weil and Geraldine Rickard

Weil Memorial Charitable Foundation, W. Newton, MA Juniata County Girls Softball Association,

Mifflintown, PA Kesher Center for Jewish Studies, Inc.,

Cedarhurst, NY Kids-World Tennis Association, Inc.,

Middletown, CT Korean American Government Employees

Association, Los Angeles, CA Kuji Foundation, Inc., Guilford, CT Labrador Retriever Adoption & Rescue of

Central Ohio, Galena, OH Leadership Forum Coalition,

Fairfax City, VA Learning Tree Childcare Center,

Chattanooga, TN Lone Star Leadership Council,

San Antonio, TX Lone Star Leadership Foundation,

Fort Worth, TX Longevityplus, Virginia Beach, VA Lord Is My Life Ministries, Irvine, CA Love Conquers All Outreach Ministries &

Mission, Gaston, NC Loves 180, Inc., Columbus, OH Maggie Rogers Foundation, Inc.,

Schaumburg, IL Main Street Gallipolis, Inc.,

Gallipolis, OH Manne Du Jour, Inc., East Orange, NJ Margalla Institute of Health Sciences,

Inc., Riverside, CA Mary Washington Alliance,

Fredericksburg, VA Master Builders Ministries, Inc.,

Fairfield, OH McDonalds Charitable Trust, Marrero, LA Medex Foundation for Advancement of

Women in Health Care, Yarmouth, ME Mens Christian Fellowship of the Ozarks,

West Plains, MO Mentoring Plus, Inc., Glen Allen, VA Mentoring Student Athletes Foundation,

Gahanna, OH Miles for Smiles, Concord, NH

Community Oriented Policing

Partnership, Monroeville, PA Community Potential, Inc.,

Binghamton, NY Community Public Housing,

Lawndale, CA Community Safety Network, Oakland, CA Concerned Students of Texas,

San Antonio, TX Constitution Day, Inc., El Monte, CA Covingtons Family Care, Inc.,

Nashville, TN Creative Humanitarianism International,

Chicago, IL Creative Unity Youth Artist Foundation,

Los Angeles, CA Daymetro Community Family Action

Agency Cooperative Foundation, Inc., Englewood, OH Deliverance Outreach Ministry,

Columbia, SC Destiny Outreach Center, Columbus, OH Disability Sports and Recreation Council

of Mid-Missouri, Columbia, MO Don Abel Memorial Wrestling

Foundation, Eudora, KS Dowell Baseball Association, Duquoin, IL Dr. Bert W. and Blanche B. Pollum

Conservancy, Inc., Dubois, PA Dress for Success Columbus, Powell, OH Drop the Guns Try the Son K O G,

Lorain, OH Ellensburg Electronic Community

Foundation, Ellensburg, WA Elm St. Opportunity Center, Inc.,

Fernandina Beach, FL Emerging Leaders Foundation,

Corpus Christi, TX Family Care Communities of

Pennsylvania, Inc., Lancaster, PA First Wheels of Wilson County, Inc.,

Lebanon, TN Florida Healthnet, Inc., Longboat Key, FL Foundation for Advancement of Worker

Health and Safety, Washington, DC Fox Economic Educational Development,

Inc., Mobile, AL Franklin County Forest and Farmland

Conservancy, Inc., Shippensburg, PA Freedom Brass Band of Northeast Ohio,

Inc., Cuyahoga Falls, OH Freedom Channel, Inc., Washington, DC Friends of a Feather, Frederic, WI Friends of Harmon Field Foundation, Inc.,

Franklin, OH Friends of Rock Point, Inc.,

Burlington, VT

Friends of Santa Clara Del Cobre, Inc.,

Jamaica, NY Friendship Community Development

Corporation, Columbia, SC G & V Community Services, Inc.,

Fernandina, FL Galveston County T L C, Inc.,

Santa Fe, TX Gamut International Foundation,

Pittsburgh, PA Garland City Volunteer Fire Department,

Garland City, AR Gauvin We Care Foundation,

St. Marys, KS Gensoc Org, Inc., Frazier Park, CA Georgia Speakout Project, Inc.,

Atlanta, GA Go Forward, Inc., Cincinnati, OH Go Women, Inc., Winchester, KY Gods Army Ministry, Inc., Bronx, NY G O S P E L Life Ministries,

Independence, MO Great American Artists, Terrace Park, OH Great Miami Education & Conservation

Group, Inc., Cincinnati, OH Greater Dallas Congress of National

Black Churches, Inc., Dallas, TX Greater Pittsburgh Supported Employment

Association, Inc., Pittsburgh, PA Greater Toledo Housing Foundation, Inc.,

Sylvania, OH Greek Theater, Inc., Winston Salem, NC Habitats for Vets by Vets, Summit, NJ Hampden-Sydney Gentleman,

Handen-Sydney Harris House, Inc., Waycross, GA Harvest Home of Hope Dayton, Inc.,

Trotwood, OH Heart Healer Ministries, Inc.,

West Mifflin, PA Hearts of Gold Cloggers, Florence, KY Help The Needy, Woodland Park, CO His Love & Truth Ministries,

Mountainair, NM Homeownership Network Services,

Columbus, OH H O R S E, Yankton, SD Horse Education and Rescue Alliance of

the United States, Newark Valley, NY Housing Access, Inc., Louisville, KY Human Potential Foundation,

Birmingham, AL Humane Association of Simpson County,

Franklin, KY Ideas for Better Living, Overland Park, KS Impactos Humanos Foundation

Corporation, Alpharetta, GA Inet University, Inc., Hershey, PA

2005–50 I.R.B. 1150 December 12, 2005

Snow Shoe Ambulance & Rescue Service,

Snow Shoe, PA Snowhill Community Services,

Malone, FL Society for the Preservation of Putnam

County Antiquities & Greenways, Carmel, NY Solve, Inc., Silverado, CA Somali Community Organization of

Illinois, Inc., Chicago, IL S O N Ministries, Inc., Brentwood, CA Sounds of Hope, Inc., New York, NY South Florida Employment Training

and Development Corporation, Miami Shores, FL Southeast Arkansas Kennel Club Search

& Rescue Team, Jefferson, AR Southern Maryland Mariners Youth

Baseball Organization, Inc., Waldorf, MD Special Needs Outreach, Inc.,

Winter Garden, FL Starlight Economic Development, Inc.,

Chunchula, AL Steamboat Hill Corporation, Dayton, OH Stop the Violence Lets Talk, Inc.,

New London, CT STRS Ohio 80th, Inc., Columbus, OH Sudanese Christian Outreach, Inc.,

Omaha, NE Sunshine Sewing School, St. Louis, MO Take Me Out to the Ball Game, Inc.,

Columbus, OH Taters Charities, Inc., Norwich, CT TBDC Housing, Inc., Toledo, OH Tennessee Minority Health Care

Coalition, Inc., Nashville, TN Thespis Theatricals, Cincinnati, OH Thomas Slave Chapel Foundation, Inc.,

Bedford, VA Tiffy-Mac Therapeutic Equestrian Center,

Gansevoort, NY Tiny Toon Town Daycare Center,

Hillside, IL Torne Valley Preservation Association,

Inc., Hillburn, NY Tower of Refuge & Strength, Inc.,

Staten Island, NY Tower Project, Inc., Cincinnati, OH Tree of Life Aftercare Program, Inc.,

Louisville, KY Tree of Life Outreach Development, Inc.,

Miami, FL Tri-State Childrens Charity,

Cranberry Township, PA Twinsburg Athletic Club, Twinsburg, OH UBD Corporation, Baltimore, MD

Milestone Food Umbrella, Inc.,

Lithonia, GA Miraculous Ministries, Oxford, OH Missionary City USA, Millersport, OH Missionary Program of Hawaii, Aiea, HI Mount Zion Community Development

Corporation, Ft. Mill, SC Mt. Calvary Multicultural Child Care

Center, Harrisburg, PA Mt. Laurel Skating & Recreation

Corporation, Piscataway, NJ Mt. Sinai Medical Center Health Care

Foundation, Inc., Cleveland, OH Myron Wentz Foundation, Inc.,

Salt Lake City, UT National Homeownership Corporation,

Montebello, CA Naval Lodge Charities, Inc.,

Washington, DC NEEV Foundation, Los Angeles, CA Nevada Trap Shooting Hall of Fame,

Yerington, NV New Beginning Community Outreach,

Inc., Grand Bay, AL New Birth Community Services

Corporation, Ft. Lauderdale, FL New Hope Christian Academy,

Albuquerque, NM New Southwest Jewish Archives Clearing

House & Research, Potomac, MD No Phase Artspace, Inc., Roanoke, VA North Florida Youth Sports Foundation,

Inc., Lake City, FL North Park Community Development

Corporation, Dallas, TX Northwest Ohio Football Coaches

Association, Maumee, OH Nykolz II Cultural Center, Forest Hill, TX O Grifs New Directions Group Home,

San Diego, CA Oasis of Love Care Centers,

Inc., Toledo, OH Odissea Foundation, Inc.,

San Francisco, CA Ohio Appalachian Dance Festival,

Norwich, OH Ohio Valley Creation Education

Association, Beverly, OH Old Kings Orchard Community Center,

Inc., Decatur, IL One to One Citizen Advocacy, Inc.,

Fort Collins, CO Open Way Life Ministries, Melissa, TX Operation Stray Cat, Inc.,

Baton Rouge, LA Overseas Pakistanis Educational Network

Open, Woodside, NY

Partnership for Land Use Management,

Doylestown, PA Pathways Health and Wellness, Inc.,

Mount Vernon, OH Pennsylvanians for Responsible

Agriculture, Annville, PA Pequot Lakes Boys Traveling Basketball

Team, Brainerd, MN Perseus Foundation, Inc.,

Gaithersburg, MD Philip S. Muccio Medical Research

Foundation, Inc., Columbus, OH Platte Canyon Educational Foundation,

Baily, CO Positive Alternatives for Change,

Newark, OH Prevention Education for Adults Children

& Everyone, Inc., Snellville, GA Pro Inner City Chamber of Commerce,

Inc., Dayton, OH Project Cleveland 2000, Cleveland, OH Puailoa Tavete Community Foundation,

Malaeimi, AS Raw Basketball Organization,

Cincinnati, OH Reliable Cash Management Association,

Gurnee, IL Relief Interactive, Springfield, VA Retrouvaille Columbus, Pataskala, OH Ricardo Montalban-Nosotros Foundation,

Inc., Los Angeles, CA R I S E Ministries, Inc., Decatur, GA River Park Advisory Council, Chicago, IL Rock Contemporary Christian Radio, Inc.,

Akron, OH Rosa Batie 488, Inc., Lake City, FL Russart, American Center for

Humanitarian Aid to Russia and CIS, San Francisco, CA Santa Barbara Equine Assistance

& Evacuation Team, Inc., Santa Barbara, CA Santa Barbara Free Thinkers, Ventura, CA Save-Society Against Violent

Entertainment, Inc., Rogers, AR Schoolworld Internet Education

Foundation, Inc., Fairfield, OH Shawn Stephen Cohen Drama Memorial

Fund, Palm Coast, FL Shelby Farms Conservancy, Inc.,

Memphis, TN Shepherding Ministries, Greenville, SC Sheridan Oaks Pastors Retreat,

Boyceville, WI Sierra Leone Aid Foundation, Inc.,

New York, NY Skateland Artistic Booster Club,

Klamath Falls, OR

December 12, 2005 1151 2005–50 I.R.B.

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.

Uniformed Safety Education Officers,

Inc., Olathe, KS United Christian Coalition, Inc.,

Margate, FL Universal Center Corp., Memphis, TN USNA Parents Club of the Texas Gulf

Coast, Inc., Houston, TX Vietnamese American Buddhist

Association of Cincinnati, Inc., Maineville, OH Virgin Healthcare Foundation U S A, Inc.,

New York, NY Virginia Foundation for Housing

Preservation, Richmond, VA Washington D C Vietnamese Community

Center, Inc., Washington, DC

Washington HOOPS, Inc., Seattle, WA Washington Senior Care Corporation,

Pittsburgh, PA Water Safety Foundation, Tustin, CA Way to Freedom, Sacramento, CA Wesley J. Kline Foundation for Pet

Therapy, Inc., Des Moines, IA Wiley Kennedy Foundation,

Columbia, SC World-Wide Indigenous Missions

Associates, Reslands, CA Worship Ministries International,

Gilbert, AZ

If an organization listed above submits information that warrants the renewal of

2005–50 I.R.B. 1152 December 12, 2005