Part IV. Items of General Interest

Schedule UTP. The Service is considering other circumstances under which a tax position reported on Schedule UTP need not be separately reported elsewhere on the tax return or another disclosure statement.

Comments on Announcement 2010–9, Announcement 2010–17, the draft schedule, and the draft instructions should be submitted by June 1, 2010.

Comments should be submitted to: Internal Revenue Service, CC:PA:LPD:PR (Announcement 2010–9), Room 5203, P.O. Box 7604, Ben Franklin Station, N.W., Washington, D.C. 20044. Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m., Monday through Friday, to CC:PA:LPD:PR (Announcement 2010–9), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, N.W., Washington, D.C. Comments may also be transmitted electronically via the following e-mail address: Announcement.Com- ments@irscounsel.treas.gov . Please include “Announcement 2010–9” in the subject line of any electronic communications. All comments will be available for public inspection and copying.

The principal author of this announcement is Kathryn A. Zuba of the Office of Associate Chief Counsel (Procedure & Administration). For further information regarding this announcement, contact Kathryn A. Zuba at (202) 622–7583 (not a toll-free call).

Draft Schedule and Instructions for Uncertain Tax Positions Proposal

Announcement 2010–30

In Announcement 2010–9, 2010–7 I.R.B. 408, and Announcement 2010–17, 2010–13 I.R.B. 515, the Internal Revenue Service announced it is developing a schedule requiring certain taxpayers to report uncertain tax positions on their tax returns. The Service is now releasing the draft schedule, Schedule UTP, accompanied by draft instructions that provide a further explanation of the Service’s proposal. The Service invites public comment on the draft schedule and instructions. The schedule and instructions will be finalized after the Service has received and considered all of the comments regarding the overall proposal and the draft schedule and instructions.

The draft schedule and instructions provide that, beginning with the 2010 tax year, the following taxpayers with both uncertain tax positions and assets equal to or exceeding $10 million will be required to file Schedule UTP if they or a related party issued audited financial statements:

Form 1120, U.S. Corporation Income Tax Return ;

to file a Form 1120 L, U.S. Life Insur- ance Company Income Tax Return or Form 1120 PC, U.S. Property and Ca- sualty Insurance Company Income Tax Return ; and

to file Form 1120 F, U.S. Income Tax Return of a Foreign Corporation.

The draft schedule and instructions also provide that, for 2010 tax years, the Service will not require a Schedule UTP from Form 1120 series filers other than those identified above (such as real estate investment trusts or regulated investment companies), pass-through entities, or tax-exempt organizations. The Service will determine the timing of the requirement to file Schedule UTP for these entities after comments have been received and considered.

The Service is reviewing the extent to which the proposed Schedule UTP duplicates other reporting requirements, such as Form 8275, Disclosure Statement ; Form 8275–R, Regulation Disclosure Statement ; Form 8886, Reportable Transaction Dis- closure Statement ; and the Schedule M–3, Net Income (Loss) Reconciliation for Cor- porations With Total Assets of $10 Mil- lion or More . The draft instructions provide that a taxpayer will be treated as having filed a Form 8275 or Form 8275–R for tax positions that are properly reported on

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2010–19 I.R.B. 675 May 10, 2010

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Foundations Status of Certain Organizations

Announcement 2010–31

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:

Brown Star, Inc., Culver City, CA Center for Productive Worklife, Inc.,

Aldan, PA Chosen to Change Enterprise, Inc.,

Sacramento, CA Cover to Cover Ministries, Inc.,

Euless, TX Family Empowerment Zone, Inc.,

Saint Charles, MO Foundation of Daycare Providers,

Phoenix, AZ Fountain of Hope Foundation,

Yakima, WA Global Community Development

Corporation, League City, TX Harmony Cultural Development

Corporation, Lakeland, FL James Thomas & Associates, Inc.,

Morrow, GA Leonard E. Hicks Multi Purpose

Community Center Incorporation, Baltimore, MD Nazareth Ministries, New Orleans, LA New Generation International Community

Service, Miami Gardens, FL

New Life Community Development

Center, Atlanta, GA New Life Youth Development

Corporation, Gary, IN Radicand Foundation, Pleasant Grove, AL Redeemed International Outreach Center,

Palatka, FL Solid Rock Community Development

Corporation, Hanover, MD Soulja Boyz and Girlz Academy,

North Las Vegas, NV South Mansfield Community Association,

South Mansfield, LA Starlite Williams Ministries, Inc.,

Katy, TX St. Clair Shores Lions Charities, Inc.,

St. Clair Shores, MI Tri-Centric Foundation, Inc.,

Brooklyn, NY

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.

Revision of Form 3115

Announcement 2010–32

DECEMBER 2009 REVISION OF FORM 3115

The Internal Revenue Service has revised Form 3115, Application for Change in Accounting Method, and its instructions. The Form 3115 (Rev. December 2009) is the current Form 3115 and replaces the December 2003 version of the Form 3115.

Ordinarily, a taxpayer applies for consent to change a method of accounting for

federal income tax purposes by completing and filing a current Form 3115. For automatic change requests procedures, see section 6.02(1)(a) of Rev. Proc. 2008–52, 2008–36 I.R.B. 587 (as amplified, clarified, and modified by Rev Proc. 2009–39, 2009–38 I.R.B. 371). For non-automatic change request procedures, see section 8.06 of Rev. Proc. 97–27, 1997–1 C.B. 680 (as modified and amplified by Rev. Proc. 2002–19, 2002–1 C.B. 696, as amplified and clarified by Rev. Proc. 2002–54, 2002–2 C.B. 432, as modified by Rev. Proc. 2007–67, 2007–2 C.B. 1072, and as clarified and modified by Rev. Proc. 2009–39, 2009–38 I.R.B. 371).

To allow a reasonable transition to the December 2009 Form 3115, the IRS will accept either the December 2009 Form 3115 or the December 2003 Form 3115 through May 31, 2010, except where the use of the December 2009 Form 3115 is specifically required in guidance published in the Internal Revenue Bulletin. Taxpayers filing Forms 3115 after May 31, 2010, must use the December 2009 Form 3115. The IRS encourages taxpayers to use the December 2009 Form 3115 prior to June 1, 2010.

Section 6.02(3) of Rev. Proc. 2008–52 requires a taxpayer filing a request for an automatic change to file its original Form 3115 with its return and a duplicate of that Form 3115 with the national office. If prior to June 1, 2010, a taxpayer filed its duplicate copy of Form 3115 with the national office using the December 2003 Form 3115, the taxpayer may file its original Form 3115 with its return on either the December 2003 Form 3115 or the December 2009 Form 3115.

Taxpayers may download the December 2009 Form 3115 and its instructions from the IRS website, www.irs.gov, or order them by calling 1–800–TAX FORM (1–800–829–3676).

For further information regarding this announcement, contact Karla Meola at (202) 622–4930 or Brenda Wilson at (202) 622–4800 (not toll-free calls).

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