Part IV. Items of General Interest

Guidance on Gifts and Bequests From Certain Expatriates

Announcement 2009–57

The Heroes Earnings Assistance and Relief Tax Act of 2008, Pub. L. 110–245, 122 Stat. 1624 (the “Act”), enacted on June 17, 2008, amended Subtitle B of the Internal Revenue Code (relating to estate and gift taxes) by inserting a new Chapter 15 and adding section 2801. Section 2801 imposes a tax on each U.S. citizen or resident who receives a “covered gift or bequest” on or after June 17, 2008, from a “covered expatriate” whose expatriation date was on or after that same date. The term “covered expatriate” is described in section 877A(g)(1), which was also added to the Code by the Act. A “covered gift” is defined as any property acquired directly or indirectly from an individual who, at the time of such acquisition, is a covered expatriate. A “covered bequest” is defined as any property acquired directly or indirectly by reason of the death of an individual who, immediately before death, was a covered expatriate.

The Internal Revenue Service intends to issue guidance under section 2801, as well as a new Form 708 on which to report the receipt of gifts and bequests subject to section 2801. The due date for reporting, and for paying any tax imposed on, the receipt of such gifts or bequests has not yet been determined. The due date will be contained in the guidance, and the guidance will provide a reasonable period of time between the date of issuance of the guidance and the date prescribed for the filing of the return and the payment of the tax.

Foundations Status of Certain Organizations

Announcement 2009–58

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:

Care4Hope, Salt Lake City, UT Eddie “Rochester” Anderson Foundation,

Inc., Los Angeles, CA Ensley Community Redevelopment

Corporation, Birmingham, AL Fountain Youth Ministries, Inc.,

Tucson, AZ Global Plan Initiative, Alexandria, VA Grassroots Educational Multimedia,

Hayward, WI Great Adventure Ministries, Inc.,

Otsego, MN HHCA, Inc., Los Angeles, CA Houstons Center Stage Theater,

Tomball, TX Intact Crime Consultants, Tallahassee, FL National Coalition for Dually Eligible

People, New Orleans, LA

New York Poverty Law Center,

New York, NY North Carolina Council on Problem

Gambling, Inc., Westfield, NY North Park Interfaith Housing

Corporation, Lemon Grove, CA Pocahontas Family Tree, Marlinton, WV Power Ministries International, Inc.,

Milltown, NJ Praise Inc., Louisville, KY Re-New London Council, Inc.,

New London, CT River of Fire Ministries International Inc.,

Battle Ground, WA Special Ed Advocate, Inc.,

Pembroke Pines, FL Sports for Life, Inc., North Canton, OH Staples Host Lions Club, Staples, MN Vital Signs Economic Stability Training,

Inc., Buford, GA Volunteer Mounted Patrol, Inc.,

Freeland, MD Word Way Community Development

Nonprofit Housing Corporation, Detroit, MI Wichita-Sedgwick County Domestic

Violence Coalition, Wichita, KS Yolanda Diamond Ministries,

Houston, TX

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.