Part IV. Items — Internal Revenue Bulletin 2006-31

Notice of Proposed Rulemaking

United States Dollar Approximate Separate Transactions Method

REG–118897–06

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains a proposed regulation which provides the translation rates that must be used when translating into dollars certain items and amounts transferred by a qualified business unit (QBU) to its home office or parent corporation for purposes of computing dollar approximate separate transactions method (DASTM) gain or loss.

DATES: Written or electronic comments and requests for a public hearing must be received by October 11, 2006.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–118897–06), room 5203, Internal Revenue Service, PO Box 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–118897–06), 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 Portal at www.regulations.gov (IRS REG–118897–06).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Sheila Ramaswamy, at (202) 622–3870; concerning submissions of comments, Richard.A.Hurst@irscounsel.treas.gov, (202) 622–7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

Generally, a taxpayer and each of its qualified business units (QBUs) must make all determinations under subtitle A of the Internal Revenue Code in its respective functional currency. See §1.985–1(a)(1). For taxable years beginning after August 24, 1994, a U.S. corporation’s QBU that would otherwise be required to use a hyperinflationary currency as its functional currency generally must use the dollar as its functional currency and must compute income or loss under the DASTM method of accounting described in §1.985–3. See §1.985–1(b)(2)(ii). Section 1.985–3(d)(3) contains a rule for translating into dollars dividends, certain transfers, and returns of capital from the QBU to its home office or parent corporation. On March 8, 2005, Notice 2005–27, 2005–13 I.R.B. 795, (see §601.601(d)(2) of this chapter), announced the intention to amend §1.985–3(d)(3) regarding the proper exchange rate for determining DASTM gain or loss when translating certain current and historical assets upon a transfer from a QBU to its home office or parent corporation, as the case may be.

Explanation of Provisions

Under the DASTM method of accounting, a QBU’s income or loss for a taxable year is computed in U.S. dollars and adjusted to account for its DASTM gain or loss. See §1.985–3(b). A QBU’s DASTM gain or loss for a taxable year is determined under §1.985–3(d) by first computing the QBU’s change in net worth from the prior year and then making specified adjustments. The QBU’s change in net worth is computed by comparing the year-end balance sheets for the current and preceding taxable years. See §1.985–3(d)(1)(i). Special rules provide that some balance-sheet items are translated at the exchange rate for the translation period in which the cost of the item was incurred and so do not

give rise to DASTM gain or loss from year to year (“historical items”). See §1.985–3(d)(5). Other items are translated at the exchange rate for the last translation period for the taxable year and therefore do give rise to DASTM gain or loss (“current items”). See §1.985–3(d)(5).

The classification of an item as historical or current generally reflects the extent to which the item’s dollar value changes with fluctuations in exchange rates. For example, the dollar value of a financial asset, such as a unit of hyperinflationary local currency, necessarily changes with fluctuations in exchange rates. Accordingly, a financial asset generally is a current item. See §1.985–3(d)(5)(iv). By contrast, the value of a nonfinancial asset generally does not change with fluctuations in exchange rates. Accordingly, a nonfinancial asset generally is an historical item. See §1.985–3(d)(5)(v).

The computed change in the QBU’s net worth is then adjusted to reflect transactions that increase or decrease the QBU’s net worth without affecting the QBU’s income or loss. For example, an asset transferred from a QBU branch to its home office decreases the QBU’s net worth but does not affect the QBU’s income or loss and so must be added back to the QBU’s net worth for purposes of computing DASTM gain or loss. See §1.985–3(d)(3).

The DASTM method of accounting provides that adjustments described in the preceding paragraphs generally shall be translated into dollars at the exchange rate on the date the amount is paid. See §1.985–3(d)(3). This rule ensures that the QBU branch properly takes into account a current item’s change in value due to currency fluctuations while the item was in the QBU branch. However, applying this translation rule to historical items could potentially lead to distortions in the calculation of DASTM gain or loss. Because the value of historical items generally does not change with fluctuations in exchange rates, translating adjustments relating to historical items at the exchange rate on

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but that generally do not affect income or loss or earnings and profits (or a deficit in earnings and profits). Such items include a transfer to the home office of a QBU branch and a return of capital.

(ii) Translation . Except as provided by ruling or administrative pronouncement, items described in paragraph (d)(3)(i) of this section shall be translated into dollars as follows:

(A) If the item giving rise to the adjustment would be translated under paragraph (d)(5) of this section at the exchange rate for the last translation period of the taxable year if it were shown on the QBU’s year-end balance sheet, such item shall be translated at the exchange rate on the date the item is transferred.

(B) If the item giving rise to the adjustment would be translated under paragraph (d)(5) of this section at the exchange rate for the translation period in which the cost of the item was incurred if it were shown on the QBU’s year-end balance sheet, such item shall be translated at the same historical rate.

(iii) Effective date . Paragraph (d)(3)(ii) of this section is applicable for any transfer, dividend, or distribution that is a return of capital that is made after March 8, 2005, and that gives rise to an adjustment under this paragraph (d)(3).

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

(Filed by the Office of the Federal Register on July 12, 2006, 8:45 a.m., and published in the issue of the Federal Register for July 13, 2006, 71 F.R. 39604)

List of Nonbank Trustees and Custodians

Announcement 2006–45

The following is a list of entities that have been approved by the Commissioner of the Internal Revenue Service, pursuant to §1.408–2(e) of the Income Tax Regulations, to serve as a nonbank trustee or custodian. This list updates and supersedes the list published with Announcement 2005–59, 2005–37 I.R.B. 524.

Archer medical savings accounts (Archer MSAs) established under § 220

the date of distribution or transfer would inappropriately give rise to DASTM gain or loss.

The potentially anomalous results that may arise due to the application of the existing translation rule in §1.985–3(d)(3) can be prevented by modifying the rule to ensure that only the assets whose dollar value changes with fluctuations in exchange rates will give rise to DASTM gain or loss upon a transfer from a QBU to its home office. Accordingly, this proposed regulation amends §1.985–3(d)(3) in accordance with Notice 2005–27 as follows. The proposed regulation provides that if the item giving rise to the adjustment is a current asset which would be translated under §1.985–3(d)(5) at the exchange rate for the last translation period of the taxable year if it were on the QBU’s year-end balance sheet, the item will be translated at the exchange rate on the date the item is transferred. However, if the item giving rise to the adjustment is a historical asset which would be translated under §1.985–3(d)(5) at the exchange rate for the translation period in which the cost of the item was incurred if it were on the QBU’s year-end balance sheet, the item will be translated at the same historical rate.

Proposed Effective Date

Consistent with Notice 2005–27, this regulation is proposed to be effective for any transfer, dividend, or distribution that is a return of capital that is made after March 8, 2005, and that gives rise to an adjustment under §1.985–3(d)(3).

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 these regulations do not impose a collection of information on small entities, the provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small

Business Administration for comment on its impact on small business.

Comments and Requests for Public Hearing

Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and Treasury Department request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing 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 a public hearing will be published in the Federal Register .

Drafting Information

The principal author of these proposed regulations is Sheila Ramaswamy, Office of Associate Chief Counsel (International). 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 1.985–3 is amended by revising paragraph (d)(3) to read as follows:

§1.985–3 United States dollar approximate separate transactions method.

- - - (d) - - (3) Positive adjustments —(i) In gen- eral . The items described in this paragraph (d)(3) are dividend distributions for the taxable year and any items that decrease net worth for the taxable year

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account (including earned interest) will be deemed distributed and includible in gross income in the year(s) the account’s trustee or custodian was not a bank or, if applicable, an insurance company, or an approved nonbank trustee or nonbank custodian. Contributions made to such account are not deductible from gross income and will be disallowed if claimed on an income tax return.

This list of approved nonbank trustees and nonbank custodians includes their names, addresses, and the date each application was approved.

If an approved nonbank trustee or custodian believes that the information about it is incorrect, incomplete, or that it has been incorrectly omitted from this list, it may, on or before October 30, 2006, notify the Service in writing of any changes it proposes to the list. This notification should include a copy of the notice of approval.

The notification should be addressed to:

Internal Revenue Service SE:T:EP:RA:T1 Announcement 2006–45 1111 Constitution Ave., NW — PE Washington, DC 20224

Drafting Information

The principal author of this announcement is Calvin Thompson of the Employee Plans, Tax Exempt and Government Entities Division. Please contact Mr. Thompson at 1–202–283–9596 (not a toll-free number), if there are any questions regarding the publication of this list. Written inquiries concerning this announcement should be addressed to the Internal Revenue Service at the above address.

of the Internal Revenue Code, health savings accounts described in §223, custodial accounts of retirement plans qualified under § 401, custodial accounts described in § 403(b)(7), trust or custodial accounts of individual retirement accounts (IRAs) established under §§ 408 and 408A (Roth IRAs), Coverdell education savings accounts described in §530, and custodial accounts of eligible deferred compensation plans described in § 457(b) will not be tax exempt if the trustee or custodian of such accounts is not a bank (as defined in § 408(n)) (and in the case of Archer MSAs and health savings accounts, a bank within the meaning of § 408(n) or an insurance company within the meaning of § 816) or an approved nonbank trustee or custodian.

An entity that is not a bank (as defined in § 408(n)) (and in the case of Archer MSAs and health savings accounts a bank within the meaning of § 408(n) or an insurance company within the meaning of § 816) must receive approval from the Service to serve as a nonbank trustee or nonbank custodian. A prospective nonbank trustee or custodian must file a written application with the Commissioner of Internal Revenue demonstrating that the requirements of § 1.408–2(e)(2) through § 1.408–2(e)(7) of the regulations will be met. If the application is approved, a written notice of approval will be issued to the applicant. The notice of approval will state the day on which it becomes effective, and (except as otherwise provided therein) will remain effective until revoked by the Service or withdrawn by the applicant. Entities that have received such approval from the Service may also sponsor certain retirement plans, custodial accounts under § 403(b)(7) and individual retirement arrangements established under §§ 408 and 408A. (See, Rev. Proc. 2005–16, 2005–1

C.B. 674, and Rev. Proc. 87–50, 1987–2 C.B. 647, as modified.)

A prospective nonbank trustee or custodian may not accept any fiduciary account before such notice of approval becomes effective. In addition, a nonbank trustee or custodian may not accept a fiduciary account until after the plan administrator or the person for whose benefit the account is to be established is furnished with a copy of the written notice of approval issued to the applicant.

The continued reliance on a notice of approval is dependent upon the continued satisfaction of the nonbank trustee requirements set forth in the regulations. The notice of approval issued to an applicant will be revoked if the Commissioner determines that the applicant is unwilling or unable to administer fiduciary accounts in a manner consistent with the requirements of the regulations. Generally, the notice will not be revoked unless the Commissioner determines that the applicant has knowingly, willfully, or repeatedly failed to administer fiduciary accounts in a manner consistent with the requirements of the regulations, or has administered a fiduciary account in a grossly negligent manner.

The written notice of approval to serve as a nonbank trustee or nonbank custodian is not an endorsement of any investment made with respect to any retirement plan or arrangement handled by the approved nonbank trustee or custodian. The Internal Revenue Service does not review or approve investments.

If the trustee or custodian of an account described above is not a bank (and in the case of Archer MSAs and health savings accounts, a bank or an insurance company) or an approved nonbank trustee or nonbank custodian, the amounts held in such

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
1. A.B. Culbertson & Co.	1250 Continental Plaza Fort Worth, TX 76102	5/15/1984
2. A.G. Becker & Co.	Chicago, IL	12/12/1979
3. A.G. Edwards & Sons, Inc.	One North Jefferson St. Louis, MO 63103	11/26/1980
4. ABN AMRO Securities LLC	55 East 52nd Street New York, NY 10022	9/7/2000

2006–31 I.R.B. 122 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
5. Adler, Coleman Clearing Corp.	20 Broad St. New York, NY 10005	4/7/1987
6. Advest, Inc.	280 Trumbull Street Hartford, CT 06103	1/24/1989
7. Aisel & Co.	20 Broad Street New York, NY 10005	4/26/1991
8. American Brokerage Services, Inc.	131 Lafayette Ave. Detroit, MI 48226	9/18/1991
9. American Capital Marketing, Inc. (FKA American General Capital)	2777 Allen Parkway Houston, TX 77215	6/25/1984
10. American Express Financial Corp.	200 AXP Financial Center Minneapolis, MN 55474	8/12/1977
11. American Heritage Life Ins. Co.	76 South Laura Street Jacksonville, FL 32202	12/11/1984
12. American Transtech, Inc.	8000 Baymeadows Way Jacksonville, FL 32256	8/15/1990
13. Ameritrade, Inc.	4211 South 102nd Street Omaha, NE 68127–1031	4/18/1984
14. Analytic Investment Management, Inc.	2222 Martin Street, Suite 230 Irvine, CA 92715–1454	5/9/1989
15. Aspen Partnership	1895 Claremont Road Hoffman Estates, IL 60195	10/25/1990
16. B.C. Ziegler & Co.	215 North Main Street West Bend, WI 53095	9/27/1985
17. Banc of America Securities LLC	100 North Tryon Street NC 1–007–20–01 Charlotte, NC 28255	4/30/2003
18. Banc One Capital Corporation	P.O. Box 18277 90 North High Street Columbus, OH 43218	2/24/1992
19. Bank Hapoulim B.M.	6501 Wilshire Blvd. Los Angeles, CA 90048	5/15/1986
20. Bank Julius Baer & Co., LTD	330 Madison Avenue New York, NY 10017	12/15/1988
21. Bank Leumi Le — Israel B.N. Western Hemisphere Regional Mgt.	242 Fifth Avenue New York, NY 10022	2/10/1982
22. Bartlett & Co.	36 East Fourth Street Cincinnati, OH 45202	2/1/1989
23. Bear, Stearns & Co., Inc.	5 Hanover Square New York, NY 10004	6/2/1986
24. Bear, Sterns Securities Corp.	2 Broadway, 12th Floor New York, NY 10004	6/24/1991
25. Berklee College of Music, Inc.	1140 Boylston Street Boston, MA 02110	5/9/1989

July 31, 2006 123 2006–31 I.R.B.

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
26. Bernard L. Madoff Investment Securities LLC	885 Third Avenue New York, NY 10022	7/7/2004
27. BISYS Fund Services, Inc.	3425 Stelzer Rd. Columbus, OH 43219	12/31/2003
28. Blunt Ellis & Loewi, Inc.	225 East Mason Street Milwaukee, WI 53202	1/25/1982
29. BNY Clearing Services, LLC (FKA Kemper Clearing Corporation)	111 East Kilbourn Ave. Milwaukee, WI 53202	8/21/1989
30. Boettcher & Company, Inc.	828 Seventeenth Street Denver, CO 80201	8/10/1987
31. Brown & Company Securities Corporation	20 Winthrop Square Boston, MA 02110	2/27/1985
32. Bruns, Nordeman, Rea & Co.	New York, NY	10/31/1977
33. Burke, Christensen & Lewis Securities, Inc.	120 S. La Salle Street Suite 940 Chicago, IL 60603	3/11/1986
34. Burton J. Vincent, Chesley & Co.	105 West Adams Street Chicago, IL 60603	3/25/1982
35. Butler Wick & Co., Inc.	City Center One Bldg. Youngstown, OH 44501	10/8/1992
36. BUYandHold Securities Corporation	110 Wall Street New York, NY 10005	10/5/2000
37. Carolina Securities Corp.	239 Fayetteville St. Mall Raleigh, NC 27602	8/29/1983
38. Chapin, Davis & Company, Inc.	3 Village Square, Cross Keys Baltimore, MD 21210	12/7/1983
39. Charles Schwab & Co., Inc.	101 Montgomery Street San Francisco, CA 94104	1/8/1982
40. Christian & Missionary Alliance	P.O. Box C Nyack, NY 10960	8/15/1985
41. CIBC World Markets Corporation	200 Liberty Street New York, NY 10281	7/26/1977
42. Citigroup Global Markets, Inc.	388 Greenwich St. New York, NY 10105	7/22/1985
43. City Securities Corp.	135 North Pennsylvania Street Indianapolis, IN 46204	12/21/1982
44. Commerce First Thrift	Midvale, UT 84047	5/25/1978
45. Comprehensive Investment Services, Inc.	One Moody Plaza Galveston, TX 77550	6/16/2000
46. Continental Trust Co.	17110 Dallas Parkway Suite 200 Dallas, TX 75248	2/22/1977

2006–31 I.R.B. 124 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
47. D. A. Davidson & Co.	Davidson Building 8 Third Street North Great Falls, MT 59403	6/11/1982
48. D.J. St. Germain, Inc.	1500 Main Street Springfield, MA 01115	1/1/1977
49. Davenport & Co. of Virginia, Inc.	901 E. Cary Street Richmond, VA 23219	2/2/1987
50. Davenport & Company LLC	901 East Cary Street Richmond, VA 23219	3/31/1997
51. Deutsche Bank Securities Corp. d.b.a. C.J. Lawrence Deutsche	1290 Avenue of the Americas New York, NY 10104	3/14/1980
52. Deutsche Bank Securities, Inc.	1 South Street Baltimore, MD 21203	4/11/1994
53. Dougherty, Dawkins, Strand & Yost, Inc.	100 South Fifth Street Suite 2300 Minneapolis, MN 55402	2/22/1986
54. Dresdner Kleinwort Wasserstein Securities LLC	75 Wall Street New York, NY 10005	10/9/2002
55. Dreyfus Investment Services, Corp.	Two Mellon Bank Center Pittsburgh, PA 15259	5/18/1989
56. Duncan-Williams, Inc.	5860 Ridgeway Center Parkway Memphis, TN 38120	12/13/1995
57. E *Trade Clearing LLC	10951 White Rock Road Rancho Cordova, CA 95670	9/3/2002
58. E *Trade Securities LLC	4500 Bohannon Drive Menlo Park, CA 94025	8/30/2002
59. E *Trade Securities, Inc.	480 California Avenue Palo Alto, CA 94306	2/1/1996
60. Eads Generoe Trust	St. Louis, MO	2/3/1977
61. Edward D. Jones & Co.	201 Progress Parkway Maryland Height, MO 63043	5/30/1985
62. El Paso Electric Co.	P.O. Box 982 El Paso, TX 79960	6/15/1983
63. Elan Investment Services, Inc.	777 East Wisconsin Avenue Milwaukee, WI 53282	12/21/1987
64. Emmett A. Larkin Co., Inc.	100 Bush Street San Francisco, CA 94104	4/17/1986
65. Eppler, Guerin & Turner, Inc.	2001 Bryan Tower, Suite 2300 Dallas, TX 75201	9/6/1984
66. EVEREN Securities, Inc.	77 West Wacker Drive Chicago, IL 60601–1694	11/19/1998
67. Fahnestock & Co., Inc. (FKA Edward A. Viner & Co.)	110 Wall Street New York, NY 10005	4/15/1982

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APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
68. Fechtor, Detwiler & Co., Inc.	155 Federal Street Boston, MA 02110	3/26/1982
69. Ferris, Baker Watts, Inc. (FKA Ferris & Company)	1720 Eye Street, NW Washington, DC 20006	12/4/1987
70. Fiduciary Services Corporation	310 Commercial Drive Savannah, GA 31406	10/2/2003
71. Financial Data Services, Inc.	400 Atrium Drive Somerset, NJ 08873	11/14/1990
72. First Albany Corp.	41 State Street Albany, NY 12207	9/26/1979
73. First Clearing Corporation	10700 Wheat First Drive Glen Allen, VA 23060	4/21/1999
74. First Clearing, LLC (FKA First Clearing Corporation)	10700 Wheat First Drive Glen Allen, VA 23060	5/30/2003
75. First Illinois Capital Corp.	424 7th Street Plaza 7 Rockford, IL 61110	5/27/1982
76. First Manhattan Co.	437 Madison Avenue New York, NY 10022	1/26/1990
77. First of Michigan Corporation	100 Renaissance Center 26th Floor Detroit, MI 48243	8/31/1994
78. Fiserv Securities, Inc.	One Commerce Square 2005 Market Street Philadelphia, PA 19103	11/15/1984
79. Fleet Clearing Corporation	67 Wall Street New York, NY 10005	12/3/1986
80. Fleet Norstar Securities, Inc.	14 Wall Street New York, NY 10005	8/30/1991
81. Folger, Nolan, Fleming & Douglass	725 15th Street, N.W. Washington, DC 20015	9/16/1981
82. Freedom Capital Management Corporation	One Beacon Street Boston, MA 02108	8/29/1991
83. Freeman Welwood & Co., Inc.	1501 Fourth Avenue Suite 1700 Seattle, WA 98101	2/13/1996
84. G.T. Global Investors Services, Inc.	50 California Street San Francisco, CA 94111	5/27/1994
85. General Conference of the Mennonite Brethren Churches, Board of Trustees	315 South Lincoln Hillsboro, KS 67063	3/8/1983
86. Goldman, Sachs & Co.	85 Broad Street New York, NY 10004	12/8/1982
87. Greater Beneficial Union of Pittsburgh	4254 Clairton Blvd. Pittsburgh, PA 15227–3394	9/24/2004

2006–31 I.R.B. 126 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
88. Greek Catholic Union of the U.S.A.	5400 Tuscarawas Rd. Beaver, PA 15009–9513	5/24/2000
89. Gruntal & Co., Inc.	14 Wall Street New York, NY 10005	6/13/1984
90. H&R Block Financial Advisors, Inc.	735 Griswold Street Detroit, MI 48226	12/8/1983
91. H.G. Wellington & Co., Inc.	14 Wall Street New York, NY 10005	9/13/1993
92. H.M. Payson & Co.	One Portland Square P.O. Box 31 Portland, ME 04112	8/20/1987
93. Halpert and Company, Inc.	284 Millburn Avenue Millburn, NJ 07041	4/17/1996
94. Hamilton Investments, Inc. (FKA Illinois Company, Inc.)	30 North La Salle Street Chicago, IL 60602	8/6/1982
95. Hampshire Funding, Inc.	One Granite Place P.O. Box 2005 Concord, NH 03301	5/26/1988
96. Hanifen, Imhoff Clearing Corp.	1125 17th Street Denver, CO 80217	4/22/1997
97. Hanifen, Imhoff, Inc.	1125 17th Street, Suite 1700 Denver, CO 80202	12/3/1985
98. Harrisdirect, LLC	Harborside Financial Center 501 Plaza II Jersey City, NJ 07311	5/1/2002
99. Hartford Life Insurance Co.	Hartford Plaza Hartford, CT 06106	3/3/1982
100. Hazlett, Burt & Watson, Inc.	1300 Chapline Street Wheeling, WV 26003	4/11/1995
101. Heartland Securities, Inc.	208 South LaSalle Street Chicago, IL 60604	3/6/1984
102. Henry Scott, Inc.	Philadelphia, PA	3/23/1982
103. Herzfeld & Stern, Inc.	30 Broad Street New York, NY 10004	12/12/1984
104. Herzog, Heine, Geduld, Inc.	26 Broadway New York, NY 10004	2/11/1982
105. Holt & Collins	188 Embarcadero Suite 760 San Francisco, CA 94105	9/8/1988
106. Home Life Financial Assurance Corporation	2400 West Bay Drive Largo, FL 33540	11/13/1986
107. Howard, Weil, Labouisse, Friedrichs, Inc.	1100 Paydrus Street Suite 900 New Orleans, LA 70163	12/28/1987

July 31, 2006 127 2006–31 I.R.B.

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
108. Huntleigh Securities Corporation	222 South Central Avenue St. Louis, MO 63102	10/22/1997
109. I.M. Simon & Co.	7730 Forsyth Blvd. Clayton, MO 63105	11/3/1981
110. iClearing, LLC	100 Wood Avenue South Iselin, NJ 08830	2/7/2001
111. Integrated Fund Services, Inc.	221 East Fourth Street Suite 300 Cincinnati, OH 45202	5/15/2003
112. Investment Advisers, Inc.	1100 Dain Tower Minneapolis, MN 55440	10/9/1981
113. Isler, Colling & McAdams	Portland, OR	10/5/1978
114. J.C. Bradford & Co.	330 Commerce Street Nashville, TN 37201	2/28/1982
115. J.J.B. Hilliard, W.L. Lyons, Inc.	Hilliard Lyons Center 501 South Fourth St. Louisville, KY 40202	2/11/1992
116. Jacob Engle Foundation, Inc. (The)	P.O. Box 1136 Upland, CA 91786	3/25/1983
117. Janney Montgomery Scott, Inc.	1801 Market Street Philadelphia, PA 19103	3/23/1982
118. Jefferson Pilot Investor Services, Inc.	100 North Greene Street Greensboro, NC 27401	10/22/1979
119. Jesup, Josephthal & Co., Inc.	One Whitehall Street New York, NY 10004	12/18/1990
120. John Hancock Clearing Corporation	200 Liberty Street New York, NY 10281	3/21/1991
121. John Hancock Mutual Life Insurance Company	John Hancock Place 200 Clarendon Street Boston, MA 02117	8/24/1993
122. Juran & Moody, Inc.	Minnesota Mutual Life Center 400 North Robert Street Suite 800 Saint Paul, MN 55101	5/27/1994
123. Kagin Numismatic Services, Ltd.	1000 Insurance Exchange Bldg. Des Moines, IA 50309	3/18/1980
124. KH Funding Company	10801 Lockwood Drive Suite 370 Silver Spring, MD 20901	2/13/2002
125. Kirkpatrick, Pettis, Smith, Polian, Inc.	1623 Farnam Street Suite 700 Omaha, NE 68102	8/18/1981
126. L.F. Rothchild, Unterberg, Towbin	55 Water Street New York, NY 10041	12/23/1985

2006–31 I.R.B. 128 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
127. Legg Mason Wood Walker, Inc.	111 S. Calvert Street P.O. Box 1476 Baltimore, MD 21203	6/4/1985
128. Lehman Brothers, Inc.	200 Vesey Street New York, NY 10285	12/20/2000
129. Lester Sumrall Evangelistic Association, Inc.	530 East Ireland Road South Bend, IN 46614	9/2/1988
130. Liberty Life Insurance Co.	P.O. Box 789 Greenville, SC 29602	9/3/1982
131. Manley, Bennett, McDonald & Co.	St. Louis, MO	1/1/1977
132. McDonald & Company Securities, Inc.	580 Walnut Street Cincinnati, OH 45202	12/15/1983
133. MEGA Life and Health Insurance Company	Service Road 501 West Interstate 44 Oklahoma City, OK 73118	5/29/1991
134. Menold, Crawford, Hippler & Co.	23930 Michigan Ave. Dearborn, MI 40126	12/9/1988
135. Merrill, Lynch, Pierce, Fenner & Smith, Inc.	1700 Merrill Lynch Drive MSC 0703 Pennington, NJ 08534	8/3/1987
136. Merrimack Valley Investment, Inc.	367 Kingsbury Ave. Haverhill, MA 01830	9/28/1984
137. Mesirow Financial, Inc.	350 N. Clark Street Chicago, IL 60610	5/28/1982
138. Metropolitan Life Insurance Co.	One Madison Avenue New York, NY 10010	1/28/1987
139. Metropolitan Mortgage & Securities Corporation	W 292 Sprague Ave. Spokane, WA 99204	11/10/1976
140. Mid-Ohio Securities Corp.	225 Burns Road Elyria, OH 44036	1/28/1983
141. Mid-States Enterprises, Inc.	Carroll, IA	12/30/1976
142. Miller Johnson & Kuehn, Inc.	5500 Wayzata Blvd. Minneapolis, MN 55416	11/15/2000
143. Milwaukee Company (The)	250 East Wisconsin Avenue Milwaukee, WI 53202	9/15/1986
144. MKI Securities Corp.	61 Broadway New York, NY 10006	4/17/1985
145. Money Management Associates	4922 Fairmont Avenue Bethesda, MD 20814	5/26/1987
146. Moody Bible Institute of Chicago	820 N. La Salle Boulevard Chicago, IL 60610–3284	4/25/2003
147. Moore & Schley, Cameron & Co.	Two Broadway New York, NY 10004	11/15/1977

July 31, 2006 129 2006–31 I.R.B.

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
148. Morgan Keegan & Company, Inc.	Morgan Keegan Tower Fifty Front Street Memphis, TN 38108	1/27/1982
149. Morgan Stanley & Co., Incorporated	1585 Broadway New York, NY 10036	3/22/2004
150. Morgan Stanley DW Inc.	1585 Broadway New York, NY 10036	5/29/1986
151. Mortgage Loan Services, Inc.	780 Lynnhaven Parkway Suite 200 Virginia Beach, VA 23452	3/15/1995
152. Moseley, Hallgarten, Estabrook & Weeden, Inc.	One New York Plaza New York, NY 10004	12/10/1985
153. Murphy Favre, Inc.	W. 601 Riverside, 9th Floor Spokane, WA 99201	8/2/1976
154. Mutual Service Cooperative	Two Pine Tree Drive Arden Hills, MN 55112	6/6/1996
155. Myriad Corporation	1400 50th Street West Des Moines, IA 50265	7/20/1977
156. National Bank of Greece, S.A.	33 State Street Boston, MA 02109	2/4/1988
157. National Covenant Properties	5701 N. Francisco Dr. Chicago, IL 60625	6/30/1978
158. National Investor Services Corp.	44 Wall Street New York, NY 10005	3/18/1996
159. National Securities Corporation	1001 Fourth Avenue Suite 2200 Seattle, WA 98154	12/31/1986
160. National Slovak Society of the U.S.A.	351 Valley Brook Road McMurray, PA 15317–3337	10/28/2004
161. Nationwide Advisory Services, Inc. (Nationwide Financial Services, Inc.)	One Nationwide Plaza Columbus, OH 43216	9/25/1985
162. Nationwide Credit Union	One Nationwide Plaza Columbus, OH 43216	4/13/1978
163. NBC Securities, Inc.	1927 First Avenue North Birmingham, AL 35203	7/16/1996
164. Neuberger & Berman	522 Fifth Ave. New York, NY 10036	10/4/1983
165. Newhard, Cook & Co.	300 North Broadway St. Louis, MO 63102	6/4/1985
166. Oberweis Securities, Inc.	841 North Lake Street Aurora, IL 60506	2/11/1985
167. Parker/Hunter, Inc.	600 Grant Street Pittsburgh, PA 15219	6/15/1990
168. Partnership Services, Inc.	5520 LBJ Freeway Suite 430 Dallas, TX 75240	3/31/1993

2006–31 I.R.B. 130 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
169. Peninsular Securities Co.	Waters Building Grand Rapids, MI 49503	1/28/1985
170. Penson Financial Services, Inc.	1700 Pacific Avenue Suite 1400 Dallas, TX 75201	6/9/2005
171. Perelman-Carley & Associates, Inc.	Twin Towers 3000 Farnam Street Omaha, NE 68131	1/13/1989
172. Perkins Coie LLP	1201 Third Avenue Suite 4800 Seattle, WA 98101–3099	8/2/2004
173. Pershing LLC	One Pershing Plaza Jersey City, NJ 07399	12/4/1985
174. Pflueger & Baerwald, Inc.	Mills Building 220 Montgomery Street Room 1000 San Francisco, CA 94104	11/9/1981
175. PFS Investments, Inc.	3120 Breckenridge Boulevard Duluth, GA 30199	9/28/1995
176. Pioneer Financial Services, Inc.	4233 Roanoke Road Kansas City, MO 64111	1/25/1985
177. Pioneer Investment Management USA	60 State Street Boston, MA 02109	2/21/1986
178. Piper Jaffray & Co.	Piper Jaffray Center 800 Nicollet Mall Minneapolis, MN 55402–7020	4/21/1982
179. Polish Falcons of America	615 Iron City Drive Pittsburgh, PA 15205–4397	11/3/2004
180. Prescott, Ball & Turben, Inc.	1331 Euclid Ave. Cleveland, OH 44115	1/27/1983
181. PrimeVest Financial Services, Inc.	400 First Street South St. Cloud, MN 56301–3600	12/8/1993
182. Principal Life Insurance Company	711 High Street Des Moines, IA 50392–0001	7/27/1988
183. PWMCO, LLC	310 South Michigan Avenue Chicago, IL 60604	1/6/2005
184. R. Rowland & Co., Inc.	St. Louis, MO	3/29/1984
185. R.G. Dickinson & Co.	200 Des Moines Building 405 6th Ave. Des Moines, IA 50309	7/20/1983
186. R.J. Steichen & Company	Midwest Plaza 801 Nicolett Mall Suite 100 Minneapolis, MN 55402–2526	5/21/1993
187. Raymond James & Associates, Inc.	880 Carillon Parkway P.O. Box 12749 St. Petersburg, FL 33733–2749	4/26/1982

July 31, 2006 131 2006–31 I.R.B.

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
188. Raymond James & Associates, Inc.	880 Carillon Parkway P.O. Box 12749 St. Petersburg, FL 33733–2749	3/8/1982
189. RBC Dain Rauscher, Inc.	Dain Rauscher Plaza 60 South Sixth Street Minneapolis, MN 55402–4422	3/2/1998
190. RBC Dain Rauscher, Inc.	Dain Rauscher Plaza 60 South Sixth Street Minneapolis, MN 55402–4422	1/22/1982
191. Regan MacKenzie, Incorporated	999 Third Avenue Suite 4300 Seattle, WA 98104	8/31/1989
192. Regions Investment Company, Inc.	2011 Fourth Avenue North Birmingham, AL 35203	7/20/2000
193. Reserve Management Company, Inc.	810 Seventh Avenue New York, NY 10019	10/18/1989
194. Robert W. Baird & Co., Inc.	777 East Wisconsin Avenue Milwaukee, WI 53202	6/10/2004
195. Robert W. Baird & Co., Inc.	777 E. Wisconsin Avenue Milwaukee, WI 53202	7/31/1986
196. Robinson-Humphrey Co., Inc. (The)	Two Peachtree Street, N.W. Atlanta, GA 30383	5/24/1982
197. Romano Bros. & Co.	820 Davis Street Evanston, IL 60201	9/28/1984
198. Rose & Company Investment Brokers, Inc.	141 West Jackson Blvd. Chicago, IL 60604	4/14/1982
199. Rotan Mosle, Inc.	1500 South Tower Pennzoil Place P.O. Box 3226 Houston, TX 77001	5/6/1980
200. Rushmore Investment Brokers, Inc.	4922 Fairmont Avenue Bethesda, MD 20814	9/24/1986
201. Sanford C. Bernstein & Co., Inc.	767 Fifth Avenue New York, NY 10153	11/13/1986
202. Santa Ana City Employees Credit Union	800 West Santa Ana Blvd. Santa Ana, CA 92701	3/25/1982
203. Saturna Capital Corporation	101 Prospect Street Bellingham, WA 98227–2838	3/28/1991
204. SBC Trust Services, Inc.	2401 Cedar Springs Road Dallas, TX 75201–1407	4/10/2001
205. SBCI Swiss Bank Corporation Investment Banking, Inc.	222 Broadway, 4th Floor New York, NY 10038	2/11/1992
206. SBM Financial Services, Inc.	8400 Normandale Lake Boulevard Suite 1150 Minneapolis, MN 55437	5/13/1995

2006–31 I.R.B. 132 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
207. Scott & Stringfellow, Inc. (FKA Craige, Inc.)	823 E. Main Street Richmond, VA 23219	5/5/1999
208. Scottsdale Securities, Inc.	12855 Flushing Meadow St. Louis, MO 63131	10/9/1996
209. Securities Management Research, Inc.	Two Moody Plaza Galveston, TX 77550	6/22/1978
210. Security Management Company, LLC (FKA Security Management Co.)	700 SW Harrison Street Topeka, KS 66636–0001	8/14/1996
211. SG Cowen Securities Corporation	1221 Avenue of the Americas New York, NY 10020	6/30/1998
212. ShareBuilder Securities Corporation	1000 124th Avenue, NE Bellevue, WA 98005	4/15/2003
213. SMA Services, Inc.	35 Lakeshore Drive Birmingham, AL 35209	8/27/1998
214. Smith, Moore & Co.	400 Locust Street St. Louis, MO 63102	1/18/1983
215. Southwest Securities, Inc.	Renaissance Tower 1201 Elm Street Suite 4300 Dallas, TX 75270	12/9/1992
216. Spear Rees & Co.	505 North Brand Boulevard Sixteenth Floor Glendale, CA 91203	1/13/1988
217. Spear, Leeds & Kellog	120 Broadway New York, NY 10271	3/29/1996
218. State Bond and Mortgage Company	8500 Normandale Lake Boulevard Minneapolis, MN 55437	12/21/1990
219. State Employees Credit Union	801 Hillsborough Street P.O. Box 26807 Raleigh, NC 27611–6807	1/1/1977
220. State Farm Investment Management Corporation	One State Farm Plaza Bloomington, IL 61410	9/22/1999
221. Stephens, Inc.	111 Center Street Little Rock, AR 72201	12/4/1987
222. Stern Brothers & Co.	1100 Main Street, Suite 2200 Kansas City, MO 64199	12/15/1987
223. Sterne, Agee & Leach, Inc.	1500 Am South-Sonat Tower Birmingham, AL 35203	9/11/1981
224. Stifel, Nicolaus & Co., Inc.	500 North Broadway St. Louis, MO 63102	9/9/1981
225. Summit Discount Brokerage (FKA Lehigh Securities Corp.)	1457 MacArthur Road Lehigh Valley, PA 18002	4/4/1990
226. Sunpoint Securities, Inc.	911 W. Loop 281 Longview, TX 75604	4/1/1998
227. SunTrust Capital Markets, Inc.	3333 Peachtree Road, NE Atlanta, GA 30326	5/27/1982

July 31, 2006 133 2006–31 I.R.B.

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
228. Sutro & Company, Inc.	201 California Street San Francisco, CA 94111–5096	12/8/1988
229. Swiss American Securities, Inc.	100 Wall Street New York, NY 10005	12/2/1980
230. Texas First Securities Corporation	1360 Post Oak Blvd., Suite 120 Houston, TX 77056	11/17/1988
231. TIAA-CREF Individual & Institutional Services, Inc.	730 Third Avenue New York, NY 10017	9/9/2002
232. Tucker Anthony, Incorporated	One Beacon Street Boston, MA 02108	10/23/1980
233. U.S. Clearing Corporation	120 Wall Street New York, NY 10005	5/3/1983
234. UBS Financial Services, Inc. (FKA UBS Paine Webber, Inc.)	1285 Avenue of the Americas New York, NY 10019	5/12/1989
235. UBS Financial Services, Inc. (FKA UBS Paine Webber, Inc.)	1285 Avenue of the Americas New York, NY 10019	8/26/2004
236. Ukrainian National Association	2200 Route 10 Parsippany, NJ 07054	9/24/2004
237. Unified Financial Securities, Inc.	429 North Pennsylvania Indianapolis, IN 46204	10/28/1976
238. United of Omaha Life Insurance Co.	Mutual of Omaha Plaza Omaha, NE 68175	3/16/1982
239. W.H. Reaves & Co., Inc.	30 Montgomery Street Jersey City, NJ 07302	12/7/1990
240. W.H. Turlington & Co.	509 East Center Street Lexington, NC 27292	11/3/1980
241. Wachovia Securities, Inc.	201 North Tryon Street Charlotte, NC 28202	4/6/1990
242. Wachovia Securities, LLC	901 East Byrd Street Richmond, VA 23219	7/1/2003
243. Wayne Hummer & Co.	300 South Wacker Drive Chicago, IL 60606	1/25/1983
244. Web Street Securities, Inc.	222 South Riverside Plaza 11th Floor Chicago, IL 60601	4/27/2000
245. Wedbush Morgan Securities	1000 Wilshire Boulevard Los Angeles, CA 90030	12/24/1984
246. Weiss, Peck & Greer	One New York Plaza New York, NY 10004	6/16/1982
247. Wells Advisors, Inc.	3885 Holcomb Bridge Road Norcross, GA 30092	3/20/1992
248. Wexford LLC Corporation	1 New York Plaza, 11th Floor New York, NY 10292	6/30/1998

2006–31 I.R.B. 134 July 31, 2006

APPROVED Nonbank Trustees/Custodians as of December 31, 2005

Name	Address	Approval Date
249. Wheat, First Securities, Inc.	P.O. Box 1357 707 East Main Street Richmond, VA 23211	3/23/1983
250. William R. Hough & Co., Inc.	100 2nd Avenue South Suite 800 St. Petersburg, FL 33701	4/18/1995

be deductible. Protection under section 7428(c) would begin on July 31, 2006, 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.

Fresh Start, Inc.

Wichita, KS Hope International Mission

Columbus, OH Master Credit Corporation

Las Vegas, NV

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

Announcement 2006–48

The Internal Revenue Service has revoked its determination that the organizations listed below qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986. 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

July 31, 2006 135 2006–31 I.R.B.