Part IV. Items — Internal Revenue Bulletin 2016-8

Section 7428(c) Validation of Certain Contributions Made During Pendency of Declaratory Judgment Proceedings

Announcement 2016–05

This announcement serves notice to potential donors that the organization listed below has recently filed a timely declaratory judgment suit under section 7428 of the Code, challenging revocation

of its status as an eligible donee under section 170(c)(2).

Protection under section 7428(c) of the Code begins on the date that the notice of revocation is published in the Internal Revenue Bulletin and ends on the date on which a court first determines that an organization is not described in section 170(c)(2), as more particularly set forth in section 7428(c)(1).

In the case of individual contributors, the maximum amount of contributions protected during this period is limited to $1,000.00, with a husband and wife being

treated as one contributor. This protection is not extended to any individual who was responsible, in whole or in part, for the acts or omissions of the organization that were the basis for the revocation. This protection also applies (but without limitation as to amount) to organizations described in section 170(c)(2) which are exempt from tax under section 501(a). If the organization ultimately prevails in its declaratory judgment suit, deductibility of contributions would be subject to the normal limitations set forth under section 170.

Date Suit

Effective Date of

Name of Organization

Name of Organization Filed Revocation Location

Estes Family Educational and Charitable Foundation 12/22/2015 1/1/2010 Lufkin, TX

American Friends of Yeshiva Shaare Chaim Inc. 9/2/2015 5/1/2008 Edison, NJ

Arseny and Olga Kovshar Private Charitable 11/25/2015 4/30/2004 San Francisco, Memorial Foundation

Filed

11/25/2015 4/30/2004 San Francisco, CA

Notice of Disposition of Declaratory Judgment Proceedings under Section 7428

Announcement 2016–07

This announcement serves notice to donors that on October 13, 2015, the United States Tax Court entered a stipulated decision that effective January 1, 2000, the organization listed below is not qualified as an organization described in I.R.C. § 501(c)(3), is not exempt from taxation under section 501(a), and is not an organization described in section 170(c)(2). The United Fund for The Education of Russian Immigrant Children in Israel, Inc. Brooklyn, NY

Allocation of Creditable Foreign Taxes

REG–100861–15

AGENCY: Internal Revenue Service (IRS), Treasury.

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

SUMMARY: In the Rules and Regulations section in this issue of the Bulletin, the IRS is issuing temporary regulations that provide guidance relating to the allocation by a partnership of foreign income taxes. Those temporary regulations are necessary to improve the operation of an existing safe harbor rule that is used for determining whether allocations of creditable foreign tax expenditures are deemed to be in accordance with the partners’ interests in the partnership. The text of those temporary regulations published in this issue of the Bulletin also serves as the text of these proposed regulations.

DATES: Comments and requests for a public hearing must be received by May 4, 2016.

ADDRESSES: Send submissions to CC: PA:LPD:PR (REG–100861–15), room 5205, 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–100861–15), Courier’s desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 20224, or sent electronically, via the Federal eRulemaking Portal at www. regulations.gov (IRS REG–100861–15).

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Suzanne M. Walsh, (202) 317-4908; concerning submissions of comments, Oluwafunmilayo Taylor, (202) 317-5179 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

Temporary regulations in the Rules and Regulations section of this issue of the Bulletin contain amendments to the Income Tax Regulations (26 CFR part 1) which provide guidance relating to the allocation by a partnership of foreign income taxes. The text of those regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regula

February 22, 2016 356 Bulletin No. 2016–8

tions. The regulations affect partnerships and their partners.

Special Analyses

Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. 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 the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f), these regulations have been 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 comments that are submitted timely to the IRS as prescribed in this preamble under “ADDRESSES.” The Treasury Department and the IRS request comments on all aspects of the proposed rules. All comments will be available at www.regulations.gov or upon request. A public hearing will be scheduled if requested in writing by any person that timely submits comments. If a public hearing is scheduled, notice of the date, time, and place for the public hearing will be published in the Federal Register .

Drafting Information

The principal author of these regulations is Suzanne M. Walsh of the Office of Associate Chief Counsel (International). However, other personnel from the IRS and the 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 1.704–1 is amended as follows:

In paragraph (b)(0): i. Add an entry for § 1.704–1 (b)(1)(ii)( b )( 1 ).

ii. Revise the entries for (b)(4)(viii)( c )( 1 ) through ( 4 ) and (b)(4)(viii)( d )( 1 ).

Revise paragraphs (b)(1)(ii)( b )( 1 ), (b)(1)(ii)( b )( 3 )( B ), (b)(4)(viii)( a )( 1 ), (b)(4)(viii)( c )( 1 ), (b)(4)(viii)(c)( 2 )( ii ) and ( iii ), (b)(4)(viii)( c )( 3 ) and ( 4 ), (b)(4)(viii)( d )( 1 ), and Example 25 of paragraph (b)(5).
Add Examples 36 and 37 to paragraph (b)(5).

The revisions read as follows:

§ 1.704–1. Partner’s distributive share .

- - - (b) - - (0) [The text of the proposed amendments to § 1.704–1(b)(0) is the same as the text of § 1.704–1T(b)(0) published elsewhere in this issue of the Bulletin .]

(1) - - (ii) - - ( b ) Rules relating to foreign tax expen- ditures . ( 1 ) [The text of the proposed amendments to § 1.704–1(b)(1)(ii)( b )( 1 ) is the same as the text of § 1.704– 1T(b)(1)(ii)( b )( 1 ) published elsewhere in this issue of the Bulletin .]

- - - ( 3 ) - - ( B ) [The text of the proposed amendments to § 1.704–1(b)(1)(ii)( b )( 3 )( B ) is the same as the text of § 1.704– 1T(b)(1)(ii)( b )( 3 )( B ) published elsewhere in this issue of the Bulletin .]
- - - (4) - - (viii) - - ( a ) - - ( 1 ) [The text of the proposed amendments to § 1.704–1(b)(4)(viii)( a )( 1 ) is the same as the text of § 1.704– 1T(b)(4)(viii)( a )( 1 ) published elsewhere in this issue of the Bulletin .]

( c ) Income to which CFTEs relate . ( 1 )

[The text of the proposed amendments to § 1.704–1(b)(4)(viii)( c )( 1 ) is the same as the text of § 1.704–1T(b)(4)(viii)( c )( 1 ) published elsewhere in this issue of the Bulletin .]

( 2 ) - - ( ii ) [The text of the proposed amendments to § 1.704–1(b)(4)(viii)( c )( 2 )( ii ) is the same as the text of § 1.704– 1T(b)(4)(viii)( c )( 2 )( ii ) published elsewhere in this issue of the Bulletin .]

( iii ) [The text of the proposed amendments to § 1.704–1(b)(4)(viii)( c )( 2 )( iii ) is the same as the text of § 1.704– 1T(b)(4)(viii)( c )( 2 )( iii ) published elsewhere in this issue of the Bulletin .]

( 3 ) [The text of the proposed amendments to § 1.704–1(b)(4)(viii)( c )( 3 ) is the same as the text of § 1.704– 1T(b)(4)(viii)( c )( 3 ) published elsewhere in this issue of the Bulletin .]

( 4 ) [The text of the proposed amendments to § 1.704–1(b)(4)(viii)( c )( 4 ) is the same as the text of § 1.704– 1T(b)(4)(viii)( c )( 4 ) published elsewhere in this issue of the Bulletin .]

- - - ( d ) Allocation and apportionment of CFTEs to CFTE categories. ( 1 ) [The text of the proposed amendments to § 1.704– 1(b)(4)(viii)( d )( 1 ) is the same as the text of § 1.704–1T(b)(4)(viii)( d )( 1 ) published elsewhere in this issue of the Bulletin .]
- - - (5) - - Example 25 . [The text of the proposed amendments to § 1.704–1(b)(5) Example 25 is the same as the text of § 1.704–1T(b)(5) Example 25 published elsewhere in this issue of the Bulletin .]
- - - Example 36 . [The text of the proposed amendments to § 1.704–1(b)(5) Example 36 is the same as the text of § 1.704–1T(b)(5) Example 36 published elsewhere in this issue of the Bulletin .]

Example 37 . [The text of the proposed amendments to § 1.704–1(b)(5) Example 37 is the same as the text of § 1.704–1T(b)(5) Example 37 published elsewhere in this issue of the Bulletin .]

John Dalrymple, Deputy Commissioner for Services and Enforcement.

(Filed by the Office of the Federal Register on February 3, 2016, 8:45 a.m., and published in the issue of the Federal Register for February 4, 2016, 81 F.R. 01948)

Bulletin No. 2016–8 357 February 22, 2016