Part IV. Items of General Interest

Notice of Proposed Rulemaking by Cross-Reference to Temporary Regulations

Procedures for Administrative Review of a Determination That an Authorized Recipient Has Failed to Safeguard Tax Returns or Return Information

REG–157271–05

AGENCY: Internal Revenue Service (IRS), Treasury.

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

SUMMARY: In this issue of the Bulletin, the IRS is issuing temporary regulations (T.D. 9252) regarding administrative review procedures for certain government agencies and other authorized recipients of tax returns or return information (authorized recipients) whose receipt of returns and return information may be suspended or terminated because they do not maintain proper safeguards. The temporary regulations provide guidance to responsible IRS personnel and authorized recipients as to these administrative procedures. The text of the temporary regulations published in this issue of the Bulletin serves as the text of the proposed regulations.

DATES: Written and electronic comments and requests for a public hearing must be received by May 25, 2006.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–157271–05), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG–157271–05), 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, or via the Federal eRulemaking Por

tal at www.regulations.gov (IRS and REG–157271–05).

FOR FURTHER INFORMATION CONTACT: Concerning submission of comments, Treena Garrett, (202) 622–7180; concerning the temporary regulations, Melinda K. Fisher, (202) 622–4580 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Under section 6103 of the Internal Revenue Code (Code), tax returns and return information are protected from disclosure except in specifically enumerated circumstances. Where disclosure is permitted, section 6103 generally imposes strict safeguarding requirements and requires the IRS to monitor and enforce compliance with those requirements. Section 6103(p)(7) requires the Secretary of the Treasury to prescribe procedures providing for administrative review of any determination under section 6103(p)(4) that an agency, body, or commission receiving returns or return information pursuant to section 6103(d) has failed to meet the safeguarding requirements. Withdrawn §301.6103(p)(7)–1 set forth the procedures for terminating future disclosures to these authorized recipients. These proposed regulations provide the intermediate review and termination procedures for all authorized recipients identified in section 6103(p)(4). With an increasing volume of authorized disclosures of returns and return information, it is critical that authorized recipients of returns and return information adhere to the strict safeguard requirements of the Code and that the IRS take all necessary steps to ensure that those requirements are met. If unauthorized disclosures do occur, it is similarly important that the IRS take steps to address them and ensure that they are not repeated. Such steps include, as appropriate, suspension or termination of further disclosures to an authorized recipient. Nevertheless, because the authority to receive returns and return information is provided by law, authorized disclosures should not be suspended

or terminated for failure to maintain adequate safeguards without appropriate administrative review procedures. The temporary regulations set forth procedures to ensure that authorized recipients provide the proper security and protection to returns and return information.

Temporary regulations in this issue of the Bulletin amend the Procedure and Administration Regulations (26 CFR Part 301) relating to section 6103(p)(4) and (p)(7). The temporary regulations provide the intermediate review and termination procedures for all authorized recipients.

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

Special Analyses

It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified that these regulations will not have a significant economic impact on a substantial number of small businesses. These regulations do not impose burdens or obligations on any person, but instead provide certain rights of administrative review. Accordingly, a regulatory flexibility analysis is not required. Pursuant to section 7805(f) of the Code, these proposed regulations will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their 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 electronic and written comments (a signed original and eight (8) copies) that are submitted timely to the IRS. The IRS and Treasury Department specifically request comments on the clarity of the proposed regulations and how they can be made easier to understand. All

March 20, 2006 652 2006–12 I.R.B.

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Withdrawal of Notice of Proposed Rulemaking

Accordingly, under the authority of 26 U.S.C. 7805, the notice of proposed rulemaking (REG–103829–99) that was published in the Federal Register on June 6, 2002 (67 FR 38913), is withdrawn.

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

(Filed by the Office of the Federal Register on August 11, 2005, 8:45 a.m., and published in the issue of the Federal Register for August 12, 2005, 70 F.R. 47160)

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

Announcement 2006–17

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 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 March 20, 2006,

comments will be available for public inspection and copying. A public hearing may be scheduled if requested in writing by a person who timely submits comments. If a public hearing is scheduled, notice of the date, time, and place for the hearing will be published in the Federal Register .

Drafting Information

The principal author of these regulations is Melinda K. Fisher, Office of the Associate Chief Counsel (Procedure & Administration), Disclosure and Privacy Law Division.

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Proposed Amendments to the Regulations

Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301—PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 is amended, in part, by adding an entry in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * * Sections 301.6103(p)(4)–1 and 301.6103(p)(7)–1 also issued under 26 U.S.C. 6103(p)(4) and (7) and (q);

• • Par. 2. Section 301.6103(p)(4)–1 is added to read as follows:

§ 301.6103(p)(4)–1T Procedures relating to safeguards for returns or return information.

[The text of proposed § 301.6103(p) (4)–1 is the same as the text of § 301.6103(p)(4)–1T published elsewhere in this issue of the Bulletin].

Par. 3. Section 301.6103(p)(7)–1 is added to read as follows:

§301.6103(p)(7)–1 Procedures for administrative review of a determination that an authorized recipient has failed to safeguard tax returns or return information.

[The text of proposed §301.6103(p) (7)–1 is the same as the text of §301.6103(p)(7)–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 February 23, 2006, 8:45 a.m., and published in the issue of the Federal Register for February 24, 2006, 71 F.R. 9487)

Withdrawal of Notice of Proposed Rulemaking Regarding Excise Taxes; Definition of Highway Vehicle

Announcement 2006–16

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking.

SUMMARY: This document withdraws a proposed regulation relating to the definition of a highway vehicle for purposes of various excise taxes. The withdrawal affects vehicle manufacturers, dealers, and lessors; tire manufacturers; sellers and buyers of certain motor fuels; and operators of heavy highway vehicles.

FOR FURTHER INFORMATION CONTACT: Barbara Franklin, (202) 662–3130 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On June 6, 2002, a notice of proposed rulemaking was published in the Federal Register (REG–103829–99, 2002–2 C.B. 59 [67 FR 38913]). A public hearing was held on February 27, 2003. This notice of proposed rulemaking proposed amending the definition of “highway vehicle” for purposes of the Highway Use Tax Regulations (26 CFR part 41), the Manufacturers and Retailers Excise Tax Regulations (26 CFR part 48), and the Temporary Excise Tax Regulations Under the Highway Revenue Act of 1982 (Pub. L. 97–424) (26 CFR part 145).

Sections 851 and 852 of the American Jobs Creation Act of 2004 (Pub. L. 108–357) addressed the issues raised in the proposed regulation. Thus, the proposed regulation is unnecessary.

2006–12 I.R.B. 653 March 20, 2006

Glastonbury Interfaith Association, Inc.,

Glastonbury, CT Great Praise Outreach, Inc., Mobile, AL Greentrust Alliance, Inc., Cherry Hill, NJ Helping Hands International,

Los Angeles, CA High Tech Imaging, Inc., Los Angeles, CA Hillsborough Historical Society,

Hillsborough, CA Hingham Shipyard Historical Foundation,

Hingham, MA Household of Faith Ministries, Inc.,

Sandy Hook, KY Housing Redevelopment & Rentals, Inc.,

St. Petersburg, FL Human Development Center, Inc.,

Milwaukee, WI Independent Thinking & New Media

Foundation Corp., New York, NY Inn Ovations for Humanity,

New Orleans, LA Institute for Ministry Law & Ethics,

Salt Lake City, UT Institute of One, Waianae, HI Islamic Society & MASJID, Napa, CA Jacksonville Education Foundation, Inc.,

Jacksonville, AR Joseph G. Cirillo Memorial Scholarship

Fund, Havertown, PA Kleiner Foundation, Dunn Loring, VA Knox Area Youth Recreation Ministries,

Inc., Knoxville, TN Knox Hope Community Development

Corporation, Baltimore, MD L A C E Foundation, NUEVO, CA Lee Community Services, Antioch, CA Lewis Street Housing Development Fund

Company, Inc., Buffalo, NY Liberty Charitable Foundation, Inc.,

Bainbridge, GA Liberty Greys Military and Civilian

Society, Whitman, MA Lord and His Children Outreach Ministry,

Chicago, IL Maritime Shoshone, Inc., Moss Beach, CA MEDIA Internship Program,

San Francisco, CA Memorable Moments Wishes and Youth

Services, Inc., Birmingham, AL Men of Purpose K-Vision, Inc.,

East Palo Alto, CA Miami-Cass County Freedom Bound

Wildlife Rehabilitation Center, Inc., Peru, IN Mommys Breathing Space, Seattle, WA Moonvine Consortium, Harrisburg, AR Moses Udebiuwa Memorial Foundation,

Davidsonville, MD

and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more 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.

John A. Hyman Memorial

Youth Foundation Warrenton, NC

Foundations Status of Certain Organizations

Announcement 2006–18

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:

AG Heritage Park, Incorporated,

Alta Vista, KS Alabama Chapter of Safari Club

International, Inc., McCalla, AL American Breast Feeding Institute, Inc.,

East Sandwich, MA American Principles Foundation,

Washington, DC Animal Recovery Foundation - Animal

Rehabilitation Fund, Cranston, RI Animal Rights Enforcement Corp.,

New York, NY Arch Plaza, Inc., Miami Beach, FL Awakening Foundation, Beaverton, OR

Baba Dilip Singh Hospital Corporation,

Pittsburgh, PA Barbara H. Halpern Foundation for

Women and Children, Bergenfield, NJ Bucks County Amateur Radio Emergency

Service, Warminster, PA By Faith Experience Ministries, Inc.,

Jacksonville, FL C S Foundation, Inc., Keithville, LA C. W. Golden Foundation, Inc.,

Fayetteville, GA Casablanca American School Foundation

c/o CT Corporation, Wilmington, DE Cesar A. Padilla Messianic Ministries,

Inc., Warner Robins, GA Center for Active Video Education,

Bethesda, MD Charley One Air Search & Rescue,

Bassfield, MS Christian Camping, Inc., Clermont, IA Church Land Foundation Corp.,

Frisco, TX Circle of Life Farm & Rescue,

Central Islip, NY Citizens for Classical FM, Denver, CO Community Counts, Santa Monica, CA Community Focused Development

Corporation, Saint Louis, MO CRT-Campaign for Responsible

Transplantation, Inc., New York, NY Dallas Tax Assistance Program,

Dallas, TX David G. Joyner Ministries,

Bakersfield, CA Denise Smith Ministries, Inc.,

Southport, NC Detroit Summer Finance Program, Inc.,

Detroit, MI Digital Bridge Learning Resource Center,

Inc., Sun City Center, FL Donna Potter Ministries, Inc.,

Kingfisher, OK Donnas Day Care & Learning Center,

San Bernardino, CA E.W. Willheart Educational Foundation,

Inc., Atlanta, GA East West Academic Business and

Cultural Council, New York, NY Employment Education Performance

Improvement, Inc., San Bernardino, CA Fathers House Association, Chicago, IL Fishers of Men, Inc., Alto, GA Frank T. Fair Foundation, Blue Bell, PA FSASE Scholarship Foundation, Inc.,

Tallahassee, FL Fun Foundation, Koloa, HI Galena Park Boxing Academy & Youth

Center, Inc., Galena Park, TX

March 20, 2006 654 2006–12 I.R.B.

Valley of the Sun Boys and Girls Club,

Scottsdale, AZ Vigil Enterprises, Albuquerque, NM Webster Area Soccer Association,

Webster, SD Westwood Children’s Center, Inc.,

Houston, TX Whatever ICD, New York, NY Williams Economic Development, Inc.,

Ocala, FL Willis Demery Community Development

Corporation, New Orleans, LA Willow Brook Institute of International

Relations, Inc., Bethesda, MD Willowbrook-Champions Figure Skating,

Houston, TX Wisdom Village, Alameda, CA Y Entrepreneurial Society, Inc.,

New Haven, CT Youth Fitness and Education Association,

Alexandria, VA

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.

Muslim American Voice for Economic &

Human Survival, Inc., Evanston, IL Nanyo Kouryo Kyoukai Corporation,

Saipan, MP Network of Believers, Poulsbo, WA New Jersey Turn District of the American

Turners, Mahwah, NJ New York Menopause Foundation,

New York, NY Newton County Adult Education, Inc.,

Morocco, IN North Carolina Athletic Council,

Durham, NC Oakland Morh-I Tenants Association,

Oakland, CA Ombudsmen to Promote Government

Integrity, Alamo, CA Pendleton House Association,

Elizabeth City, NC Prayer Time Ministries, Atlanta, GA Project Arizona Civic Education,

Tucson, AZ Project Matthew, Carrollton, TX Project SOS, Inc., Linden, AL Re-Compute Org., Omaha, NE Red Sand Foundation, Incorporated,

Ridgewood, NJ Red Sea Mission, Inc., Lancaster, SC Renewal Housing Foundation,

San Jose, CA Resource Conservation and Information

Institute, Inc., Weiser, ID Rethinking Aids the Group for the

Scientific Reappraisal of the HIV, Oakland, CA Rhema Community Development,

Chicago, IL

RNIB America, Inc., Washington, DC Rudy Kachmann Behavior Foundation,

Inc., Fort Wayne, IN Safe Haven Family Restoration, Inc.,

Savannah, GA Sapio Institute, Chesterbrook, PA SBS Basketball Foundation, Gilbert, AZ Scott Ferguson Ministries, Inc.,

Cleveland, GA Scott Foundation, Inc., Scott, MS S.D. Ireland Cancer Research Fund, Inc.,

South Burlington, VT Sequoia Presidential Yacht Foundation,

Washington, DC Shannon House, Inc., Baltimore, MD Sigma Chi Beta Epsilon Educational

Foundation, Inc., Salt Lake City, UT Social Humane Appreciation Relief

Project Community Development and Betterment Corporation, Miami, FL Southern Friendship Community

Development Corporation, Inc., Temple Hills, MD Spaulding Paolozzi Foundation,

Charleston, SC Supreme Designs, Inc., Los Banos, CA Surviving Artists, Inc., Memphis, TN Telios, Inc., Charleston, SC Tennessee Business Roundtable

Foundation, Nashville, TN Tony Betten Family Foundation,

Grand Rapids, MI Truth in Research Foundation,

Foster City, CA U-Start, Inc., Schenectady, NY Universal Cancer Foundation, Inc.,

Springhill, FL

2006–12 I.R.B. 655 March 20, 2006