Part IV. Items — Internal Revenue Bulletin 2007-7

Income and Currency Gain or Loss With Respect to a Section 987 QBU; Correction

Announcement 2007–4

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correction to notice of proposed rulemaking.

SUMMARY: This document contains corrections to a notice of proposed rulemaking (REG–208270–86, 2006–42 I.R.B. 698) that was published in the Federal Register on Thursday, September 7, 2006 (71 FR 52876), regarding the determination of the items of income or loss of a taxpayer with respect to a section 987 qualified business unit as well as the timing, amount character and source of any section 987 gain or loss.

FOR FURTHER INFORMATION CONTACT: Sheila Ramaswamy, (202) 622–3870 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of proposed rulemaking (REG–208270–86) that is the subject of these corrections is under section 987 of the Internal Revenue Code.

Need for Correction

As published, the notice of proposed rulemaking (REG–208270–86) contains errors that may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the notice of proposed rulemaking (REG–208270–86), that was the subject of FR Doc. 06–7250, is corrected as follows:

On page 52879, second column, in the preamble under the paragraph heading “ E. Concerns Regarding the 1991 Pro- posed Regulations: Notice 2000–20,” the sixteenth line following the formula, the

language “DE. The DE conducts mineral” is corrected to read “DE. The DE conducts mineral extraction in Country X”.

On page 52886, first column, in the preamble under the paragraph heading “ C. Section 1.987–3 Determination of the Items of Section 987 Taxable Income or Loss of an Owner of a Section 987 QBU,” the eighth line, the language “under other provisions are not taken” is corrected to read “under other provisions of the Code or regulations are not taken”.
On page 52886, second column, under the paragraph heading “ C. Section 1.987–3 Determination of the Items of Section 987 Taxable Income or Loss of an Owner of a Section 987 QBU,” first full paragraph, ninth line from the bottom of the paragraph, the language “rates for amount realized and adjusted” is corrected to read “rates for the amount realized and adjusted”.
On page 52886, second column, under the paragraph heading “ C. Section 1.987–3 Determination of the Items of Sec- tion 987 Taxable Income or Loss of an Owner of a Section 987 QBU,” second full paragraph, fifth line, the language “Generally the amount realized and” is corrected to read “Generally, the amount realized and adjusted”.

§ 1.987–1 [Corrected]

On page 52895, second column, § 1.987–1(b)(7), paragraph (ii)(B) of Ex- ample 1, fifth line from the bottom of the paragraph, the language “neither the activities of DE1 or DE2 are” is corrected to read “the activities of DE1 are not”.

§ 1.987–2 [Corrected]

On page 52899, first column, § 1.987–2(c)(9), lines 2 and 3, the language “illustrate the principles of this paragraph (c). For purposes of these” is corrected to read “illustrate the principles of paragraph (b) of this section and this paragraph (c). For purposes of these”.
On page 52899, second column, § 1.987–2(c)(9), paragraph (ii)(B) of Ex- ample 1, last line, the language “section 988 to X as a result of the loan.” is corrected to read “section 988 to X as a result of the disregarded loan.”
On page 52899, third column, § 1.987–2(c)(9), paragraph (ii)(A) of Ex- ample 3, line 3, the language “Federal tax purposes and therefore is a” is corrected to read “Federal income tax purposes and therefore is a”.
On page 52900, first column, § 1.987–2(c)(9), paragraph (ii)(C) of Ex- ample 4, line 3, the language “regarded for U.S. Federal tax purposes. As a” is corrected to read “regarded for U.S. Federal income tax purposes. As a”.
On page 52900, second column, § 1.987–2(c)(9), paragraph (ii)(A) of Ex- ample 7, line 1, the language “(ii) Analysis . (A) For Federal tax purposes” is corrected to read “(ii) Analysis . (A) For Federal income tax purposes”.
On page 52901, third column, § 1.987–2(d)(2), line 3, the language “described in section 988(c)(1)(i) and (ii)” is corrected to read “described in section 988(c)(1)(B)(i) and (ii)”.

§ 1.987–3 [Corrected]

On page 52902, third column, § 1.987–3(e)(2), line 5, the language “described in section 988(c)(1)(A)(i) and” is corrected to read “described in section 988(c)(1)(B)(i) and”.
On page 52904, first column, § 1.987–3(f) Example 3 ., the fourth line from the bottom of the paragraph, the language “section and § 1.987–1(c)(3) € 8,000 x $1=” is corrected to read “section and § 1.987–1(c)(3) ( € 8,000 x $1=”.

§ 1.987–6 [Corrected]

On page 52911, first column, § 1.987–6(c) Example, lines 5 through 10 from the bottom of the column, the language “of this section, Sf7,500 (Sf750,000/Sf1,000,000 x Sf10,000) of the section 987 gain will be treated as foreign source general limitation income which is not subpart F income and Sf2,500 (Sf250,000/Sf1,000,000 x Sf10,000) will” is corrected to read “of this section, Sf7,500 ((Sf750,000/Sf1,000,000) x Sf10,000) of the section 987 gain will be treated as foreign source general limitation income which is not subpart F income and Sf2,500 ((Sf250,000/Sf1,000,000) x Sf10,000) will”.

2007–7 I.R.B. 518 February 12, 2007

Begin Again Ministries, Inc.,

Springfield, MO Bethel Ministries, Inc., Huachuca City, AZ Better Days Ahead, Inc., Houston, TX B.F. Walker & Associates, Inc.,

Atlanta, GA BHPS PTO, Inc., Tallahassee, FL Blessed Through You, Inc., Odenton, MD Breaking the Cycle, Inc., Smyrna, GA Bucklin Community Better Life

Foundation, Bucklin, KS Building Doorways, Andover, MN Bullock Foundation, Inc., Charlotte, NC Butte Ski Club, Butte, MT Called to Serve, Troy, MI Cardiology P.C. Research Foundation,

Birmingham, AL Casa Del Sol Mobile Home Corporation,

Davis, CA CECN Foundation, Nacogdoches, TX Center for Civil War Living History, Inc.,

Roanoke, VA Center for Regional Economic Strategies,

Dayton, OH Central Washington Community Wellness

Foundation, Ellensburg, WA Changed Lives Seminars and Ministry,

Memphis, TN Chillicothe 757 Colts Baseball,

Chillicothe, OH Christian Life School Foundation,

Kenosha, WI Christian Rationalism Redeemer Center

Correspondent, Inc., Waterbury, CT Clarence & Lynn Wolfe Foundation,

Searcy, AR Columbus Georgia Wheelchair Athletic

Association, Columbus, GA Community Finance Corporation,

Tucson, AZ Community Healing Arts Center, Inc.,

Florence, MA Community Health Resource, Inc.,

Hogansville, GA Community Transportation Agency, Inc.,

Wilmington, DE Conrad Charitable Foundation,

Northville, MI Consciousness, Inc., Milwaukee, WI Coptic Legal Foundation, Glendale, CA Council for Educational Improvement,

Santa Fe, NM Cri-Du-Chat Research Foundation,

Cumming, GA Danielle Dawn Smalley Foundation, Inc.,

Crandall, TX Danish American Language Foundation,

St. Charles, IL

Cynthia E. Grigsby, Senior Federal Register Liaison Officer,

Publications and Regulations Branch,

Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on December 26, 2006, 8:45 a.m., and published in the issue of the Federal Register for December 27, 2006, 71 F.R. 77654)

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

Announcement 2007–13

The names of organizations that no longer qualify as organizations described in section 170(c)(2) of the Internal Revenue Code of 1986 are 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 February 12, 2007, 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.

Hawaii Credit Counseling Service

Honolulu, HI Lighthouse Credit Foundation, Inc.

Largo, FL

Foundations Status of Certain Organizations

Announcement 2007–14

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:

3TO, Sunnyvale, CA According to His Riches Corporation,

Washington, DC ActiVote America, Inc., Carmel, IN Africa Tent Evangelism, Inc.,

Lubbock, TX African Aids Prevention and Medical

Assistance Foundation, Charlotte, NC All Faith Youth Outreach Program, Inc.,

Montgomery, AL Alliance Preparatory High School,

Rancho Cucamonga, CA AMOR, Inc., Queens, NY Animal Resource Center, Inc., Slinger, WI Answer Evangelistic Ministries, Inc.,

San Antonio, TX Arch Angel Arts Center, Rochelle, VA Aventis Behring Foundation for Research

and Advancement of Patient Health, King of Prussia, PA Bamboo Village Hawaii, Inc.,

Kurtistown, HI

February 12, 2007 519 2007–7 I.R.B.

Mapua Alumni Foundation, Inc.,

Yorba Linda, CA Maridon Museum, Butler, PA Marion Regional Healthcare Foundation,

Mullins, SC Mauldin Scholarship Charitable Trust,

North Little Rock, AR Metropolitan Community Housing and

Development Organization, Inc., Baton Rouge, LA Mirandette Martial Arts Center, Inc.,

Kentwood, MI Moscow Directors’ Art Theatre Studio of

New York, New York, NY Mount Pleasant Outreach Ministries, Inc.,

Atlanta, GA Movement is Life, Inc., Detroit, MI Moving Transit Through LA,

Los Angeles, CA NBCAR Historic District, Dothan, AL Neurotherapy Research Association, Inc.,

Chevy Chase, MD New Beginning Home Preparing for the

Future, Winston Salem, NC New Dimension Theatre Studio, Inc.,

Edgewater, NJ New Vision Generational Learning

Center, Kalamazoo, MI Nickel of Hope, Cedar Hill, TX Nile Vintage Group, Inc., Brooklyn, NY Non Profit Secretarial Service NPSS, Inc.,

Houston, TX North Coast Alliance, Cambria, CA North Florida Housing, Inc., Newberry, FL Note Worthy Outreach, Inc., Mission, KS Notoriety, Inc., Irvine, CA N.P.R.S.C., Inc., New Port Richey, FL Nutritional Biomedicine Research

Institute, Inc., Aspen, CO Officeplease Foundation, Glen Ellen, CA On Target of North Carolina, Inc.,

Kernersville, NC Osseo Community Foundation,

Osseo, MN Our Father’s House, Inc.,

Goose Creek, SC Oxford Muse, Pearland, TX Particle Economics Research Institute,

Eastsound, WA Partnership for Health, Healing &

Community, Saco, ME Perpetual Help Unlimited, Chicago, IL Pineland Farms, Inc., New Gloucester, ME Place of Hope Dog Rescue Foundation,

Valentine, AZ Pokagon Fund, Inc., New Buffalo, MI Preventive Care for Productive Lives,

Inc., Potomac, MD

Danita Corbitt Memorial Scholarship,

Inc., Rossville, GA Developmental Education & Research,

Inc., Chandler, AZ Diamonds in the Rough, New Orleans, LA Disabled First, Oceanside, CA Disabled Traveler, Lapeer, MI Do2Learn Foundation, Inc., Raleigh, NC Doctor William H. Huger Home

Charitable Trust, Charleston, SC Dragon Fly After School Program,

Cambridge, MA Duxbury Recreation Foundation, Inc.,

Duxbury, MA Eagle Feather Publishing and Research

Institute, Austin, TX El Leon Literary Arts, Inc., Berkeley, CA Enchantment House Community Services,

Incorporated, Missouri City, TX Energy Farm, Jackson, MS Energy for the Future,

Rancho Cordova, CA Engineers Rod & Gun Club Charities,

Ottawa, IL Eucalyptus View, Inc., Escondido, CA Faithful Servant Ministries, Alvord, TX Family Images, Inc., New York, NY Family Unity World Wide, Rockmart, GA First Baptist Faith Foundation,

Hilton Head, SC For the Love of Homeless Pets, Inc.,

Hialeah Gardens, FL Foundation for Consumers Construction

Assistance, Inc., Bethany, OK Foundation for in Home Care,

Incorporated, Chattanooga, TN Foundation for Integrative Therapies,

Washington, DC Foundation for Professional Excellence in

the Community College, Austin, TX Foundation for the Re-Entry of

Ex-Offenders, Inc., (Free), Clinton, OH Freedom Watch, Inc., Miami, FL Gente Ayudando Gente S A, Houston, TX Georgia Advocate Health Partners, Inc.,

Atlanta, GA Grace Baptist Chapel Community

Development Corporation, Bronx, NY Grace Community Development

Corporation, Memphis, TN Grapevine Center for Communication

Arts, Inc., Bloomfield, CT Hair Angels Foundation, Inc., Carmel, IN Healing the Environment, Inc.,

Thayne, WI Hearts of Peace Foundation, Boulder, CO Hope Foundation, Incorporated,

Gaithersburg, MD

Housing & Community Synergy, Inc.,

Anaheim, CA Howard Family Foundation, Inc.,

Los Angeles, CA Human Services Projects, Inc.,

Park Forest, IL Idaho Clean Air Foundation, Inc.,

Sandpoint, ID Imani Support Services, Inc.,

Birmingham, AL In His Rest Ministries, Anacortes, WA Inner City Youth Computer Network,

Philadelphia, PA Inspirational Family Enrichment

Association, Inc., Inkster, MI Institute for the Advancement of

Contemporary Chinese Architecture, Ltd., Oyster Bay, NY Institute of Media Research, Inc.,

Cambridge, MA Institute United for the Study and Defense

Against Racism Toward Chinese People, Inc., Flushing, NY Interdisciplinary Artists Aggregation,

Inc., Santa Cruz, CA International Justice Center, Inc.,

Suwanee, GA International Latino Womens Congress,

Philadelphia, PA Isbell Home, Inc., Gadsden, AL Jack and Elizabeth Gellman Torah

Foundation, Inc., Amherst, NY Jewishlinks, Inc., San Mateo, CA Jo Saltkill Ministries, Inc., Ft. Worth, TX John J. Barcklow Foundation, Inc.,

Springfield, VA Kathedral Community Development, Inc.,

Tampa, FL Kinderhudson Corporation, Nyack, NY Ladwin Corp., San German, PR Lafontaine Christian Church Scholarship

Fund, Omaha, NE Land Conservancy, Inc., Fairfield, NJ Lark Second Chance, Harvey, IL Laws of Life Expression Contest, Inc.,

Greensboro, NC L D P Memorial Fund, Inc., Elizabeth, NJ Linda Parham Ministries, Inc.,

Worcester, MA Long March Foundation, Inc.,

New York, NY Love for Life Foundation of Philippine

American Physicians in America, Ledyard, CT Lyceum Corporation, Dallas, TX Making a Difference Foundation,

Los Angeles, CA

2007–7 I.R.B. 520 February 12, 2007

Youth Determined to Succeed Y.D.T.S.,

Inc., Pittsburgh, PA Youth Excelling Socially, Inc.,

Little Rock, AR Youth of Promise, Irvine, CA

If an organization listed above submits information that warrants the renewal of its classification as a public charity or as a private operating foundation, the Internal Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided in section 1.509(a)–7 of the Income Tax Regulations. It is not the practice of the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

Treatment of Payments in Lieu of Taxes Under Section 141

Announcement 2007–19

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Cancellation of notice of public hearing on proposed rulemaking.

SUMMARY: This document cancels a public hearing on proposed regulations (REG–136806–06, 2006–47 I.R.B. 950) modifying the standards for treating payments in lieu of taxes (PILOTs) as generally applicable taxes for purposes of the private security or payment test under section 141.

DATES: The public hearing, originally scheduled for February 13, 2007 at 10 a.m. is cancelled.

FOR FURTHER INFORMATION CONTACT: Kelly Banks of the Publications and Regulations Branch, Legal Processing Division, Associate Chief Counsel (Procedure and Administration) at (202) 622–0392 (not a toll-free number).

Professionals Network of Florida, Inc.,

Jupiter, FL Project Jakana, Ukiah, CA Radar, Inc., Reno, NV Rational Living Foundation, Inc.,

Tampa, FL Real Estate Education Foundation,

Albuquerque, NM Rhonda Joy Edwards Vansant Foundation,

Inc., Portland, OR Rock Springs Community Center,

Mullin, TX Rockville Striders Youth Track Club, Inc.,

Rockville, MD Rozie Wilson White Agency, Inc.,

Cedar Hill, TX Ruthmere Foundation, Inc., Elkhart, IN Sea Life Studies, Inc., Morro Bay, CA Seeds of Hope, Corralitos, CA Senior Citizens Foundation, Inc.,

Deming, NM Serv Behavioral Health Systems, Inc.,

West Trenton, NJ Share the Warmth, Inc., Evansville, IN Sharing the Journey, Toledo, OH Sharon Sockwell-Clark Mission

Foundation, Inc., Bergheim, TX Shield of Faith Out Reach Ministries, Inc.,

Atlanta, GA Shirley A. Cunningham Jr. Family

Foundation, Inc., Georgetown, KY Show Low Housing Coalition, Inc.,

Show Low, AZ Sibley House, Nuevo, CA Silence the Violence, Inc., Brooklyn, NY Snow Cloud Farm, Inc., Asheville, NC Solutions Community Outreach, Inc.,

Houston, TX South Central Urban Ministries, Inc.,

Nashville, TN Southwest Psychoanalytic Foundation,

Tucson, AZ Spirit Investigations, Inc., Nashville, TN Spotlight Fashion Group, Spartanburg, SC SRDS, Sartell, MN SS&W Enterprise, Inc., Philadelphia, PA St. Augustine Foundation, Ltd.,

Yonkers, NY St. Claude Community Family Center,

River Ridge, LA Stewart W. and Willma C. Hoyt

Foundation, Binghamton, NY

Stratford Festival Theater, Inc.,

Fairfield, CT Sundance Farm, Inc., Inman, KS Supporting Parents Educational Dreams,

Inc., Portland, OR Tallship Michigan, Franklin, MI Talons & Tails, Inc., Bunnell, FL Tarlow Family Foundation, Inc.,

St. Louis, MO Temple Broadcasting Communication,

Inc., Simpsonville, SC Texas Panhandle Film Commission,

Amarillo, TX Thomasville Initiative, Thomasville, NC Titusville Friends of the Arts,

Hydetown, PA To God be the Glory Ministries,

St. Louis, MO Tony J. Ferry Ministries, Rehoboth, MA Trail Corps Academy, Silverthorne, CO United Charities of America,

San Angelo, TX Upward Bound Youth Foundation, Inc.,

Clearwater, FL Veneto Org, Washington, DC Virtuous Women Under Construction,

Los Angeles, CA VNA Foundation, Inc., Syracuse, NY Walk-Ons, Inc., Salt Lake City, UT Well Ministries, Inc., Wings Mills, MD West Piedmont Workforce Investment

Board, Martinsville, VA Wishing Well Foundation of America,

Inc., Palmetto Bay, FL Women and Wisdom Foundation, Inc.,

Greensboro, NC Women of Faith Ministries and Gods

Associates, Indianapolis, IN Women of Light Foundation, Inc.,

Potomac, MD Workers Housing Corporation,

San Juan, PR WOW Community Outreach, Inc.,

Birmingham, AL W.W.O.C.B. — “We Want Our Children

Back” Community Organization of Athens, Athens, AL Xristos Association, Inc.,

South Holland, IL Yonkers Partnership Housing

Development Fund Corporation, Yonkers, NY

February 12, 2007 521 2007–7 I.R.B.

SUPPLEMENTARY INFORMATION: A notice of proposed rulemaking and notice of public hearing that appeared in the Federal Register on Thursday, October 19, 2006 (71 FR 61693), announced that a public hearing was scheduled for February 13, 2007, at 10 a.m. in the IRS Auditorium, New Carrollton Federal Building, 5000 Ellin Road, Lanham, MD 20706. Subsequently, a notice of change of location of public hearing was published in the Federal Register on Tuesday, December 26, 2006, (published as Announcement 2007–6, 2007–4 I.R.B. 376 [71 FR 77352]) changing the location to the IRS Auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. The subject of the public hearing is under section 141 of the Internal Revenue Code.

The public comment period for these regulations expired on January 16, 2007.

The notice of proposed rulemaking and notice of public hearing instructed those interested in testifying at the public hearing to submit a request to speak and an outline of the topics to be addressed. As of Tuesday, January 23, 2007, no one has requested to speak. Therefore, the public hearing scheduled for February 13, 2007, is cancelled.

LaNita Van Dyke,

Branch Chief, Publications and Regulations Branch,

Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on January 29, 2007, 8:45 a.m., and published in the issue of the Federal Register for January 30, 2007, 72 F.R. 4220)

2007–7 I.R.B. 522 February 12, 2007