22-01-irb01-40.pdf

ETA Advisory File Text

INCOME TAX Notice 2001 60 page 304. This notice provides information about a closing agreement program for tax-exempt bonds TEB VCAP . TEB VCAP pro- vides a mechanism whereby issuers of tax-exempt bonds who come forward on a voluntary basis can resolve viola- tions of the Code by entering into closing agreements with the Service. Comments are requested on TEB VCAP and on how the Service can expand its efforts to encourage com- pliance with the Code. EXEMPT ORGANIZATIONS Announcement 2001 97 page 310. A list is provided of organizations now classified as private foundations. ADMINISTRATIVE Notice 2001 60 page 304. This notice provides information about a closing agreement program for tax-exempt bonds TEB VCAP . TEB VCAP pro- vides a mechanism whereby issuers of tax-exempt bonds who come forward on a voluntary basis can resolve viola- tions of the Code by entering into closing agreements with the Service. Comments are requested on TEB VCAP and on how the Service can expand its efforts to encourage com- pliance with the Code.Notice 2001 61 page 305. This notice provides tax relief under sections 6081 6161 and 7508A of the Code for taxpayers affected by the September 11 2001 terrorist attack which included the destruction of the two World Trade Center towers and other buildings in the World Trade Center complex damage to the Pentagon and the air- plane crash in Pennsylvania on Tuesday September 11 2001. Notice 2001 62 page 307. Timely filing or payment private delivery services.An updated list of designated private delivery services PDSs is provided for purposes of section 7502 of the Code. Two new delivery services are added to the list. This notice also provides a new address for a PDS to use to submit its application for designation. The new address will also be used to request administrative review of a letter of denial of designation appeal a letter confirming the denial of designation provide written notification of any change in application information and appeal a proposed revocation letter. Rev. Proc. 97 19 modified. Notice 99 41 modified and superseded. Notice 2001 63 page 308. This notice provides additional tax relief under sections 6081 6161 and 7508A of the Code for taxpayers regardless of their location on account of events related to the September 11 2001 terrorist attack. Rev. Proc. 2001 48 page 308. This procedure provides the domestic asset liability percent- ages and domestic investment yield percentages needed by foreign companies conducting insurance business in the United States to compute their minimum effectively connected net investment income. Internal Revenue b bu ul ll le et ti in n Bulletin No. 2001 40 October 1 2001 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. Department of the Treasury Internal Revenue Service Finding Lists begin on page ii. Index for July through September begins on page iv. October 1 2001 2001 40 I.R.B. The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing offi- cial rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions Executive Orders Tax Conventions legislation court decisions and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are consolidated semiannually into Cumulative Bulletins which are sold on a single-copy basis. It is the policy of the Service to publish in the Bulletin all sub- stantive rulings necessary to promote a uniform application of the tax laws including all rulings that supersede revoke modify or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of in- ternal management are not published however statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations but they may be used as precedents. Unpublished rulings will not be relied on used or cited as precedents by Service personnel in the disposition of other cases. In applying pub- lished rulings and procedures the effect of subsequent leg- islation regulations court decisions rulings and proce-dures must be considered and Service personnel and oth- ers concerned are cautioned against reaching the same con- clusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows Part I. 1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II. Treaties and Tax Legislation. This part is divided into two subparts as follows Subpart A Tax Conventions and Other Related Items and Subpart B Legislation and Related Committee Reports. Part III. Administrative Procedural and Miscellaneous. To the extent practicable pertinent cross references to these subjects are contained in the other Parts and Sub- parts. Also included in this part are Bank Secrecy Act Admin- istrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury s Office of the Assistant Secretary Enforcement . Part IV. Items of General Interest. This part includes notices of proposed rulemakings disbar- ment and suspension lists and announcements. The first Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis and are published in the first Bulletin of the succeeding semi- annual period respectively. The IRS Mission Provide America s taxpayers top quality service by help- ing them understand and meet their tax responsibilitiesand by applying the tax law with integrity and fairness to all. Introduction The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. For sale by the Superintendent of Documents U.S. Government Printing Office Washington DC 20402. Voluntary Closing Agreement Program for Tax-Exempt Bonds Notice 2001 60 SECTION 1. PURPOSE This Notice provides information about a voluntary closing agreement program for tax-exempt bonds TEB VCAP . In particular the Notice sets forth proce- dures whereby issuers of tax-exempt bonds can resolve violations of the Inter- nal Revenue Code through closing agree- ments with the Internal Revenue Service. The Tax Exempt Bonds Outreach Plan- ning and Review TEB OPR function of Tax Exempt and Government Entities TE GE is developing new outreach and education initiatives to insure compliance by issuers of tax-exempt bonds with ap- plicable provisions of the Code. TEB VCAP is part of the TEB OPR outreach and education initiatives and provides ap- propriate remedies when issuers voluntar- ily come forward and express a desire to resolve violations of the Code. TEB VCAP is intended to encourage issuers and conduit borrowers to exercise due diligence in complying with the Code and to provide a vehicle to correct violations of the Code. It is the continuing policy of the Internal Revenue Service to attempt to resolve violations of the Code without taxing bondholders. TEB VCAP reflects this policy. The Service anticipates that more de- tailed procedures about the program will be provided as the program is refined and comments are received. For example standardized closing agreement terms and amounts may be specified for particular violations. Accordingly this Notice re- quests comments on TEB VCAP as well as comments on how the Service can ex- pand its efforts to encourage compliance with the Code. SECTION 2. BACKGROUND Gross income does not include interest on any state or local bond that meets the requirements of section 103 and related provisions of the Code. Under certain cir- cumstances an issuer may take remedial action under provisions such as sections 1.141 12 1.142 2 1.144 2 1.145 2 and1.147 2 of the Income Tax Regulations in order to cure a violation of the Code and to prevent interest on a bond from becom- ing includible in gross income. The Service has previously provided formal tax-exempt bond closing agree- ment programs such as the program de- scribed in Rev. Proc. 97 15 1997 1 C.B. 635 . Violations of section 103 and re- lated provisions of the Code that cannot be remediated under existing remedial ac- tion provisions or other tax-exempt bond closing agreement programs contained in regulations or other published guidance may be resolved by entering into a closing agreement under TEB VCAP. Section 7121 of the Code and the regula- tions thereunder authorize the Commis- sioner to enter into written closing agree- ments with any person in connection with the tax liability of such person or of the person or estate for whom he acts . Section 301.7121 1 of the Income Tax Regulations provides in part that a closing agreement may be entered into in any case in which there appears to be an advantage in having the case permanently and conclusively closed or if good and sufficient reasons are shown by the taxpayer for desiring a clos- ing agreement and it is determined by the Commissioner that the United States will sustain no disadvantage through consum- mation of such an agreement. SECTION 3. SCOPE OF TEB VCAP Under TEB VCAP an issuer or its autho- rized representative may request a closing agreement with respect to violations of sec- tion 103 and related provisions of the Code. TEB VCAP is not available when a Absent extraordinary circum- stances the violation can be remedi- ated under existing remedial action provisions or tax-exempt bond closing agreement programs contained in regu- lations or other published guidance. b The bond issue is under examina- tion. A bond issue is generally treated as under examination on the date a let- ter opening an examination on the bond issue is sent. c The tax-exempt status of the bonds is at issue in any court proceeding or is being considered by the IRS Office of Appeals. d The Service determines that the vio- lation was due to willful neglect. SECTION 4. PROCEDURES FOR REQUESTING A CLOSING AGREEMENT UNDER TEB VCAP a Information Required in Requests. An issuer or its authorized representa- tive requesting a closing agreement must submit the following information relating to the issue i A statement or statements under penalty of perjury certifying a. A description of the violation including its nature when it oc- curred and the events surrounding it and a statement about when and how the issuer discovered the vio- lation b. The procedures and policies which will be instituted to assure future compliance with the Code c. That the bond issue is not under examination d. That the tax-exempt status of the bond issue is not at issue in any court proceeding and is not being considered by the IRS Of- fice of Appeals e. That on the issue date the is- suer reasonably expected to com- ply with section 103 and related provisions of the Code f. That the violation was not due to willful neglect g. That the request for a closing agreement was promptly under- taken upon discovery of the viola- tion by the issuer or the conduit borrower and h. That the payment of the closing agreement amount if any will not be made with proceeds of bonds described in section 103 a . ii Astatement setting forth pro- posed closing agreement terms based on the model closing agreement language contained in IRM 7.6.2 and if applicable a computation of the proposed closing agreement amount. iii The name and phone number of a person to contact for addi- tional information. October 1 2001 304 2001 40 I.R.B. Part III. Administrative Procedural and Miscellaneous b Additional Information for Re- quests. Additional information may be required depending on the facts and cir- cumstances. c Penalty of Perjury Statement. The following declaration signed by the party making the submission must ac- company a TEB VCAP submission and any factual information submitted after the original submission or any change in the submission at a later time Under penalties of perjury I declare that I have examined this submission including accompanying documents and statements and to the best of my knowledge and belief the submission contains all the relevant facts relating to the request and such facts are true correct and complete. d Anonymous Closing Agreement Requests. An issuer or its authorized representative may initiate discussions regarding the appropriate terms of a closing agreement on an anonymous basis. An anonymous request may be made on behalf of a group of similarly situated issuers but the execution of the closing agreement and all terms therein must be consistent with section 7121 of the Code. Until the name of the bond issue is disclosed to the Ser- vice a request for a closing agreement under TEB VCAP will not prevent the Service from beginning an examination of the bond issue. An issue for which a request has been submitted under this paragraph d that has been placed under examination prior to the date the issue is identified to the Service will no longer be eligible for TEB VCAP. e TEB VCAP Mailing Address. TEB VCAP submissions should be mailed to Internal Revenue Service Attn T GE TEB O Rm. 5T2 1111 Constitution Avenue N.W. Washington D.C. 20224 SECTION 5. CLOSING AGREEMENT TERMS Closing agreements under TEB VCAP will generally follow the model closing agreement in IRM 7.6.2. Specific closing agreement terms will depend on the facts and circumstances of the case includingthe degree of diligence exercised by the issuer and any conduit borrower. Any standardized closing agreement terms that are developed for TEB VCAP will be set forth in the Internal Revenue Manual and or other published guidance. SECTION 6. EFFECT OF CLOSING AGREEMENT EXECUTED UNDER TEB VCAP The closing agreement will protect bond- holders from including in their gross in- come any interest on the bonds during a pe- riod specified in the agreement for any violation described in the agreement. A closing agreement executed under section 7121 of the Code shall be final and conclu- sive except that 1 the matter it relates to may be reopened in the event of fraud malfeasance or misrepresentation of a ma- terial fact 2 it is subject to the sections of the Code that expressly provide that effect be given to their provisions including any stated exception for section 7122 of the Code notwithstanding any other law or rule of law and 3 it is subject to any law en- acted after the date of the agreement that applies to a tax period ending after the date of the agreement covered by the agreement. SECTION 7. REQUESTS FOR COMMENTS We anticipate that TEB VCAP will be expanded and refined over time based on experience and public comment. The Service welcomes comments regarding the format and operation of TEB VCAP. The Service requests comments on the existing remedial action provisions and existing closing agreement programs and procedures contained in regulations and other published guidance. The Service welcomes suggestions with regard to the general framework of closing agreement terms including whether standardized closing agreement terms and amounts should be specified for particular viola- tions. The Service also requests com- ments regarding whether any of the pro- visions of the model closing agreement set forth in IRM 7.6.2 should be changed. Comments should be submitted in writ- ing within six months from the date this Notice appears in the Internal Revenue Bulletin. Comments should be sent to the following address Internal Revenue Service 1111 Constitution Avenue N.W. Washington D.C. 20224 Attn Susan D. Ruth T GE TEB O Rm. 5T2. Comments may also be sent electroni- cally via the Internet by selecting the Tax Regs option on the IRS Home Page by submitting comments directly to the IRS Internet site at http www.irs.gov prod tax regs comments.html or by e-mailing them to notice.comments m1.irs. counsel.gov. SECTION 8. EFFECTIVE DATE TEB VCAP is effective immediately. SECTION 9. DRAFTING INFORMATION The principal author of this Notice is Cliff Gannett of Tax Exempt Bonds Outreach Planning and Review of the Office of the Di- rector Tax Exempt Bonds Tax Exempt Government Entities. For further informa- tion regarding this Notice contact Mr. Gan- nett at 202 283-2999 not a toll-free call . Disaster Relief for Taxpayers Affected by the September 11 2001 Terrorist Attack. Notice 2001 61 PURPOSE This notice provides tax relief under sections 6081 6161 and 7508A of the Internal Revenue Code for taxpayers af- fected by the September 11 2001 ter- rorist attack which included the de- struction of the two World Trade Center towers and other buildings in the World Trade Center complex damage to the Pentagon and the airplane crash in Pennsylvania on Tuesday September 11 2001. The President issued federal dis- aster declarations on September 11 and 13 2001. The September 11 2001 dec- laration covers five New York counties Bronx Kings New York boroughs of Brooklyn and Manhattan Queens and Richmond. The September 13 2001 declaration covers Arlington County in Virginia where the Pentagon is located. These counties constitute a covered disaster area within the meaning of sec- 2001 40 I.R.B. 305 October 1 2001 tion 301.7508A 1 d 2 of the Proce- dure and Administration Regulations. In addition the Internal Revenue Service has determined that other taxpayers af- fected as defined below by the terrorist attack are also entitled to relief regard- less of where they reside. Taxpayers who believe they are entitled to relief under this notice should mark September 11 2001 Terrorist Attack in red ink on the top of their return and other documents submitted to the IRS. BACKGROUND Section 6081 provides that the Secretary may grant a reasonable extension of time generally not to exceed 6 months for fil- ing any return declaration statement or other document required by the Internal Revenue Code or by regulations thereun- der. Section 6161 provides that the Secretary may grant a reasonable extension of time generally not to exceed 6 months for pay- ing the amount or any installments of tax shown or required to be shown on any re- turn or declaration required by the Code or by regulations thereunder. Section 7508A provides the Secretary with authority to postpone the time for per- forming certain acts under the internal rev- enue laws for a taxpayer affected by a Pres- identially declared disaster as defined in section 1033 h 3 . Pursuant to section 7508A a and section 301.7508A 1 of the regulations a period of up to 120 days may be disregarded in determining whether the performance of certain acts is timely under the internal revenue laws. Section 301.7508A 1 c 1 lists seven acts per- formed by taxpayers for which section 7508A relief may apply. Among these acts are the filing of certain tax returns the pay- ment of certain taxes the making of de- ductible contributions to certain retirement plans and individual retirement arrange- ments the filing of a Tax Court petition the filing of a claim for credit or refund of tax and the bringing of a lawsuit upon a claim for credit or refund of tax. Section 301.7508A 1 d 1 describes the seven types of affected taxpayers eli- gible for the 120 day postponement. These taxpayers include any individual whose principal residence and any business entity whose principal place of business is lo- cated in the covered disaster area any indi- vidual who is a relief worker affiliated witha recognized government or philanthropic organization and who is assisting in the covered disaster area any individual whose principal residence and any business entity whose principal place of business is not lo- cated in the covered disaster area but whose records necessary to meet a filing or paying deadline are maintained in the cov- ered disaster area any estate or trust that has tax records necessary to meet a filing or paying deadline in a covered disaster area and any spouse of an affected taxpayer solely with regard to a joint return of the husband and wife. Therefore taxpayers lo- cated outside of the covered disaster area may qualify for relief if they are covered by one of the above mentioned categories. Additionally under section 301.7508A 1 d 1 vii of the regulations the Internal Revenue Service may determine that any other person is affected by a Presidentially declared disaster. Accordingly the Internal Revenue Service has determined that the following persons are also affected by the disaster 1 victims of the crash including those on the plane and those on the ground of the four commercial jet airplanes hi- jacked on September 11 2001 2 all workers assisting in the relief activities in the covered disaster areas and in Pennsyl- vania regardless of whether they are affili- ated with recognized government or philan- thropic organizations and 3 taxpayers whose place of employment is located within the Presidentially declared disaster area. In addition taxpayers who have diffi- culty in meeting their federal tax obliga- tions because of disruptions in the trans- portation and delivery of documents by mail or private delivery services resulting from the terrorist attack and who do not otherwise qualify under section 7508A are affected taxpayers only for purposes of re- lief as described in 5 of the Grant of Re- lief section below. The perpetrators of the attack and anyone aiding the attack will not qualify for relief under this notice. GRANT OF RELIEF 1 Individuals located in the affected counties and other individuals who are af- fected taxpayers as defined by section 301.7508A 1 d 1 of the regulations and by this notice that have extended the time for filing their tax year 2000 federal indi- vidual income tax return beyond September 10 2001 will have a postponement to Feb- ruary 12 2002 to file their returns. A simi-lar postponement to pay the amount of tax or any installment of tax shown or re- quired to be shown on those returns is gen- erally not permitted. This is because the tax was originally due on the due date of the 2000 return April 16 2001 and generally an extension of time to pay is not granted however a period of 120 days from Sep- tember 11 2001 until January 9 2002 will be disregarded in the calculation of any failure to pay penalty. Thus the penalty for failure to pay the tax due would start accru- ing once again if the tax is not paid by Janu- ary 9 2002. These returns include individ- ual income tax returns Forms 1040 1040A 1040EZ 1040NR or 1040NR-EZ and gift tax returns Forms 709 and 709-A . See section 301.7508A 1 c 1 for a list of affected returns. 2 Affected taxpayers as defined by section 301.7508A 1 d 1 of the regula- tions other than individualsare granted both a 120 day postponement under sec- tion 7508A and a six month extension under sections 6081 and 6161 to file cer- tain federal tax returns otherwise origi- nally due on or after September 11 2001 and on or before November 30 2001 and to pay the tax shown or required to be shown on those returns. The 120 day postponement and the six-month exten- sion run consecutively. In addition af- fected calendar year corporations and other entities that are currently on a six- month extension of time to file their fed- eral tax return that expires between Sep- tember 11 2001 and November 30 2001 will have an additional 120 days to file their returns under section 7508A. Thus the tax year 2000 return for an affected calendar year corporation that has been extended to September 17 2001 Septem- ber 15 2001 is a Saturday will now be due by January 15 2002. A similar post- ponement to pay the amount of tax or any installment of tax shown or required to be shown on those returns is generally not permitted. This is because the tax was originally due on the due date of the 2000 return March 15 2001 for a calendar year corporation and generally an exten- sion of time to pay is not granted. A pe- riod of 120 days from September 11 2001 until January 9 2002 will be disre- garded in the calculation of any failure to pay penalty. Thus the penalty for failure to pay the tax due would start accruing once again if the tax was not paid by Jan- October 1 2001 306 2001 40 I.R.B. 2001 40 I.R.B. 307 October 1 2001 uary 9 2002. These returns include part- nership returns corporate income tax re- turns estate and trust income tax returns estate tax returns annual returns filed by tax-exempt organizations certain excise tax returns and employment tax returns. See section 301.7508A 1 c 1 for a list of affected returns. 3 The due date of any estimated tax payment for tax year 2001 originally due on or after September 11 2001 and before January 15 2002 for taxpayers located in the affected counties and other affected taxpayers is postponed under section 7508A until January 15 2002. This applies to estimated tax payments made by individ- uals corporations estates and trusts. Thus for individuals the third estimated tax pay- ment for tax year 2001 due on September 17 2001 is postponed until January 15 2002. For a calendar year corporation the third estimated tax payment for tax year 2001 due on October 1 2001 is postponed until January 15 2002. Affected taxpayers will not be subject to penalties for failure to pay estimated tax installments for tax year 2001 with respect to installments that were originally due on or after September 11 2001 and before January 15 2002 as long as such installments are paid by January 15 2002. 4 In addition the Internal Revenue Service has granted a 120 day postpone- ment of time to the affected taxpayers to perform the other acts described in sec- tion 301.7508A 1 c 1 of the regula- tions. The postponement applies to acts required to be performed within the pe- riod beginning on September 11 2001 and ending on November 30 2001. 5 Taxpayers who have difficulty in meeting their federal tax obligations be- cause of disruption in the transportation and delivery of documents by mail or pri- vate delivery services resulting from the terrorist attack and who do not otherwise qualify for relief as described above will have until November 15 2001 to file re- turns and make payments required to be made from September 11 2001 through October 31 2001. 6 As a result of the terrorist attack taxpayers may have difficulty in making timely federal tax deposits in accordance with section 6302 and the regulations thereunder. The time for making federal tax deposits however cannot be extended under section 6081 or postponed undersection 7508A. For deposits required to be made from September 11 2001 through October 31 2001 however the Internal Revenue Service will waive the addition to tax under section 6656 for the failure to timely make any deposit of tax if the deposit is made on or before No- vember 15 2001 because reasonable cause for the failure exists during this pe- riod. The relief from the failure to timely deposit addition to tax under this para- graph is only applicable to taxpayers who are unable to meet their deposit obliga- tions because their or their service provider s records computers or other essential supporting services were dam- aged or essential personnel were injured by the attack. DRAFTING INFORMATION The principal author of this notice is Charles Hall of the Office of Associate Chief Counsel Procedure and Adminis- tration Administrative Provisions and Ju- dicial Practice Division . For further in- formation regarding this notice you may call 202 622-4940 not a toll-free call . Designated Private Delivery Services Notice 2001 62 This notice updates the list of designated private delivery services designated PDSs set forth in Notice 99 41 1999 2 C.B. 325 for purposes of the timely mail- ing treated as timely filing paying rule of section 7502 of the Internal Revenue Code effective September 1 2001. The Internal Revenue Service IRS is adding two new delivery services to the list of designated PDSs. Also this notice modifies Rev. Proc. 97 19 1997 1 C.B. 644 to provide a new address for a PDS to submit its written ap- plication for designation. This new address will also be used to request administrative review of a letter of denial of designation appeal a letter confirming the denial of des- ignation provide written notification of any change in application information and ap- peal a proposed revocation letter. Section 7502 f authorizes the Secretary to designate certain PDSs for the timely mailing treated as timely filing paying rule of section 7502. Rev. Proc. 97 19 provides the criteria currently applicable for designa-tion of a PDS. Notice 97 26 1997 1 C.B. 413 provides special rules to determine the date that will be treated as the postmark date for purposes of section 7502. Notice 97 50 1997 2 C.B. 305 modifying Rev. Proc. 97 19 and Notice 97 26 provides that each year there will be only one appli- cation period to apply for designation which will end on June 30th. Notice 99 41 provides that the IRS will publish a subsequent notice providing a new list of designated PDSs only if a designated PDS or service is added to or removed from the current list. Effective September 1 2001 the list of designated PDSs is as follows 1. Airborne Express Airborne Overnight Air Express Service Next Afternoon Service and Second Day Service 2. DHL Worldwide Express DHL DHL Same Day Service and DHL USA Overnight 3. Federal Express FedEx FedEx Prior- ity Overnight FedEx Standard Overnight and FedEx 2 Day and 4. United Parcel Service UPS UPS Next Day Air UPS Next Day Air Saver UPS 2nd Day Air UPS 2nd Day Air A.M. UPS Worldwide Express Plus and UPS Worldwide Express. UPS Worldwide Express Plus and UPS Worldwide Express are added to the list published in Notice 99 41. Both of these services provide delivery services to the United States from foreign countries. Air- borne DHL FedEx and UPS are not des- ignated with respect to any type of delivery service not identified above. The list of designated PDSs and services set forth above will remain in effect until further no- tice. The IRS will publish a subsequent no- tice setting forth a new list only if a desig- nated PDS or service is added to or removed from the current list or if there is a change to the application and or appeal procedures. Delivery services that wish to be designated in time for an upcoming fil- ing season must continue to submit applica- tions by June 30th of the year preceding that filing season as required by Rev. Proc. 97 19 as modified by Notice 97 50 . No- tice 97 26 continues to provide special rules used to determine the date that will be treated as the postmark date for purposes of section 7502. As a result of the IRS s reorganization the application addresses listed in section 6 of Rev. Proc. 97 19 are no longer cor- rect. Section 6 of Rev. Proc. 97 19 is modified to provide that a PDS may now submit its written application by mailing it to Internal Revenue Service Attn Director Submission Processing W CAS SP New Carrollton Federal Building 5000 Ellin Road Lanham MD 20706 Applications will no longer be accepted by hand delivery at the Courier s Desk lo- cated at 1111 Constitution Avenue N.W. The above address is also where a PDS may write to 1 obtain administrative re- view of a letter of denial of designation under section 9.03 of Rev. Proc. 97 19 2 appeal a letter confirming the denial of des- ignation under section 9.06 of Rev. Proc. 97 19 3 provide prompt written notifica- tion to the IRS of any change in application information under section 10.01 of Rev. Proc. 97 19 and 4 appeal the issuance of a proposed revocation letter under section 12.03 of Rev. Proc. 97 19. EFFECT ON OTHER DOCUMENTS Revenue Procedure 97 19 is modified. Notice 99 41 is modified and as so mod- ified is superseded. EFFECTIVE DATE This notice is effective on September 1 2001. FOR FURTHER INFORMATION The principal author of this notice is Charles A. Hall of the Office of Associate Chief Counsel Procedure and Administra- tion Administrative Provisions and Judicial Practice Division . For further information regarding this notice contact Charles A. Hall at 202 622-4940 not a toll-free call . Additional Disaster Relief for Taxpayers on Account of the September 11 2001 Terrorist Attack Notice 2001 63 The Treasury Department and the Inter- nal Revenue Service recognize that the con- tinuing disruption to the nation s financialmarkets transportation system and telecommunication and computer networks and continuing security concerns have made it difficult for many taxpayers to meet their September 17 2001 filing and payment re- quirements and for their representatives to assist them in doing so. This notice pro- vides additional tax relief under sections 6081 6161 and 7508A for taxpayers who regardless of their location are continuing to experience difficulties in meeting their filing and tax payment requirements on ac- count of events related to the September 11 2001 terrorist attack. The Internal Rev- enue Service has determined that the due date for all federal tax obligations falling be- tween September 10 2001 and September 24 2001 is postponed to September 24 2001. This postponement of time covers the filing of returns and claims for refund the payment of tax including estimated tax payments making elections and filing any other federal tax documents. The postpone- ment does not apply to deposits of federal taxes. For relief with respect to deposits of federal taxes see Notice 2001 61 on page 305 of this Bulletin and IRS News Release IR-2001 79. The relief provided by this notice is in ad- dition to the relief provided in Notice 2001 61 and IRS News Release IR-2001 79. DRAFTING INFORMATION The principal author of this notice is Charles Hall of the Office of Associate Chief Counsel Procedure and Adminis- tration Administrative Provisions and Ju- dicial Practice Division . For further in- formation regarding this notice you may call 202 622-4940 not a toll-free call . 26 CFR 601.105 Examination of returns and claims for refund credit or abatement determination of correct tax liability. Rev. Proc. 2001 48 SECTION 1. PURPOSE This revenue procedure provides the do- mestic asset liability percentages and do- mestic investment yields needed by foreign life insurance companies and foreign prop- erty and liability insurance companies to compute their minimum effectively con- nected net investment income under section 842 b of the Internal Revenue Code for taxable years beginning after December 31 1999. Instructions are provided for com- puting foreign insurance companies liabili- ties for the estimated tax and installment payments of estimated tax for taxable years beginning after December 31 1999. For more specific guidance regarding the com- putation of the amount of net investment income to be included by a foreign insur- ance company on its U.S. income tax re- turn see Notice 89 96 1989 2 C.B. 417 . For the domestic asset liability percentage and domestic investment yield as well as instructions for computing foreign insur- ance companies liabilities for estimated tax and installment payments of estimated tax for taxable years beginning after December 31 1998 see Rev. Proc. 2000 32 2000 33 I.R.B. 172 . SECTION 2. CHANGES .01 DOMESTIC ASSET LIABILITY PERCENTAGES FOR 2000. The Secretary determines the domestic asset liability per- centage separately for life insurance compa- nies and property and liability insurance companies. For the first taxable year begin- ning after December 31 1999 the relevant domestic asset liability percentages are 114.2 percent for foreign life insurance companies and 201.6 percent for foreign property and li- ability insurance companies. .02 DOMESTIC INVESTMENT YIELDS FOR 2000. The Secretary is re- quired to prescribe separate domestic in- vestment yields for foreign life insurance companies and for foreign property and lia- bility insurance companies. For the first taxable year beginning after December 31 1999 the relevant domestic investment yields are 8.2 percent for foreign life insurance companies and 5.6 percent for foreign property and lia- bility insurance companies. .03 SOURCE OF DATA FOR 2000. The section 842 b percentages to be used for the 2000 tax year are based on tax re- turn data following the same methodology used for the 1999 year. SECTION 3. APPLICATION ESTIMATED TAXES To compute estimated tax and the in- stallment payments of estimated tax due October 1 2001 308 2001 40 I.R.B. for taxable years beginning after Decem- ber 31 1999 a foreign insurance com- pany must compute its estimated tax pay- ments by adding to its income other than net investment income the greater of i its net investment income as determined under section 842 b 5 that is actually effectively connected with the conduct of a trade or business within the United States for the relevant period or ii the minimum effectively connected net in- vestment income under section 842 b that would result from using the most re- cently available domestic asset liability percentage and domestic investment yield. Thus for installment payments due after the publication of this revenue pro- cedure the domestic asset liability per- centages and the domestic investmentyields provided in this revenue procedure must be used to compute the minimum ef- fectively connected net investment in- come. However if the due date of an in- stallment is less than 20 days after the date this revenue procedure is published in the Internal Revenue Bulletin the asset liability percentages and domestic investment yields provided in Rev. Proc. 2000 32 may be used to compute the minimum effectively connected net in- vestment income for such installment. For further guidance in computing esti- mated tax see Notice 89 96. SECTION 4. EFFECTIVE DATE This revenue procedure is effective for taxable years beginning after December 31 1999.DRAFTING INFORMATION The principal author of this revenue procedure is Garrett D. Gregory of the Office of the Associate Chief Counsel In- ternational . For further information re- garding this revenue procedure please contact Mr. Gregory at 202 622-4461 not a toll-free call or write to the Inter- nal Revenue Service Office of the Asso- ciate Chief Counsel International 1111 Constitution Avenue NW Washington DC 20224 Attention CC INTL Br5 Room 4554. 2001 40 I.R.B. 309 October 1 2001 Foundations Status of Certain Organizations Announcement 2001 97 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 des- ignations in the Cumulative List of Orga- nizations Publication 78 or on the pre- sumption arising from the filing of notices under section 508 b of the Code. This listing does notindicate that the organiza- tions have lost their status as organiza- tions described in section 501 c 3 eligi- ble to receive deductible contributions. Former Public Charities.The follow- ing organizations which have been treated as organizations that are not pri- vate foundations described in section 509 a of the Code are now classified as private foundations 21st Century Economic Development Corporation Detroit MI A Family Affair by Jessie Inc. Lauderdale Lakes FL Abused Womens Abode Kindling Education Inc. Salem AR Acorn Educational Foundation Santa Rosa CA Ahkami Foundation Inc. Clifton NJ Aids Interfaith Network of Sacramento Valley the Foothills Sacramento CA Angelhouse Corp. Petaluma CA Angolacare Inc. Washington DC Arena Theatre and School Inc. Minneapolis MN Arkadelphia Housing Authority Resident Organization Arkadelphia AR Arts Awareness Project Rolla MO Asia Pacific Management Association Long Beach CA Autistic Childrens Project for Humane Education Mill Valley CA Biodrama Institute of San Francisco Mill Valley CA Boys Girls Clubs of the Keys Area Inc. Key West FL Brentwood 202 Senior Housing Inc. Oakland CA British American Theatre Company San Rafael CABrues Academy Oakland CA Buffalo River Stewardship Foundation Ltd. Harrison AR Butterflies for Kids Erie PA Camp Me and My Family Calistoga CA Capital City Boys Girls Club Jefferson City MO Childrens Explorium Inc. Cottekill NY Christian Youth Fund Eureka CA C.J.I. Association Inc. Little Rock AR Clarke Training High School Alumni Association-Chicagoland Connection Chicago IL Colusa County Youth Education Foundation Inc. Colusa CA Community Coalition Corporation Fort Smith AR Community Outreach Reentry Services for Men Inc. Vallejo CA Consortium for the Advancement of Children Richmond CA Cornerstone Shady Oaks Corporation Sacramento CA Corporacion Para el Desarrollo Integral de Hormigueros CD Hormigueros PR Crucian Sea Kids Inc. St. Croix VI Dade Teamworks Inc. Coral Gables FL David L. Snead Scholarship Foundation Detroit MI Del Norte Youth Football Inc. Crescent City CA DeQueen Sevier County Caring and Sharing Fund DeQueen AR Diamonds in the Rough Community Service Corporation of Greater Little Rock AR Doris Tate Crime Victims Foundation San Rafael CA Dragonmaker Productions Portland OR Dream Quest Inc. Little Rock AR Fall River Wild Trout Foundation Sacramento CA First Responders of Minot Minot ME Forest Sentinels in Science Inc. McCloud CA Friends of California Parks Sacramento CA Fulton County Child Abuse Prevention Council Rochester IN GC G Corporation Jacksonville AR Glorious Communications Network Berkley CA Golden Angels Club LJ Sweethome AR Grant County Amateur Radio Club Inc. Sheridan ARGrass Valley Police Activities League Inc. Grass Valley CA Greater Goals Foundation Inc. San Diego CA Help for a New Day W. Helena AR His Ideas Inc. Red Bluff CA Historic Farmhouse Foundation Gold River CA Historic First Presbyterian Church Preservation Foundation Napa CA Historic Research Foundation Kansas City MO Homes II U Inc. Jonesboro AR Homeward Bound Inc. Penryn CA Hope Pregnancy Care Center Blyteville AR Hot Springs Aids Resource Center Hot Springs AR Hyperbaric Oxygen Medical Foundation Glendale CA Inspirations Little Rock AR International Feline Foundation Santa Ana CA Isaiah 55 Feeding Ministry Pittsburg CA Jefferson Reeves Sr. Health Center Inc. Miami FL Kneady Hands Bay Point CA Kolobok Arts Inspiration Assn. Mercer Island WA LA Best Care Los Angeles CA Leadership and Development for Children of the South Inc. West Memphis AR Light for the Nations Inc. Yuba City CA Lions Club of Oakland Foundation Lafayette CA Love One Plaza Inc. Miami FL Luciel Beasley Foundation Vallejo CA Mandala Institute Inc. Sacramento CA Melanoma Society of America Walnut Creek CA Military Heritage Foundation Eureka CA Ministries of Jesus Christ Benton AR Mitochondrial Disorders Foundation of America Concord CA Multi-Cultural Theater Group Fairfield CA Music for Seniors the Disabled Inc. Arroyo Grande CA Nadias Ministry for the Middle East Inc. Oakland Park FL Napa Pain Resources Inc. Napa CA National Day of Prayer of Russellville AR Russellville AR October 1 2001 310 2001 40 I.R.B. Part IV. Items of General Interest Natomas Animal Rescue Sacramento CA New World Youth Ballet Arcata CA North Bay Performing Arts Association Petaluma CA Northern California Regional Computer Network Chico CA Nurseoptions Foundation Concord CA Omnilife Inc. Sacramento CA Our Brothers Keeper Santa Rosa CA Owasso Animal Defense Fund OADF Owasso OK Paddling to Atlanta 1996 Inc. Santa Rosa CA Palm Tree Enterprises Menlo Park CA People Helping People of South Charleston Ohio Inc. South Charleston OH Philbricks Place A California Non-Profit Public Benefit Corp. Yuba City CA Positive Alternative Inc. Miami FL Positive Self Esteem for Supportive Services Stockton CA Power of Gods Word Ministries Placerville CA Power Surge Vallejo CA Pulaski County Crime Stoppers N. Little Rock AR Radio Hope Phoenix AZ Rainbow Real Estate Professionals Sacramento CA Random Acts of Kindness Foundation Berkeley CA Reliable Medical Transportation Inc. Star City AR Restoring Sight International Inc. New York NY Rio Linda Pro. Rodeo Inc. Rio Linda CA Royal Stuarts Scottish Performers Guild Salinas CARPC Net Rohnert Park CA Rural Medicaid Transportation Inc. Warren AR Russellville Youth Baseball Association Inc. Russellville AR Safaris Inc. Broken Arrow OK Service First of Northern California Stockton CA Shakespeare at the Beach Stinson Beach CA Shem Tov Inc. Brooklyn NY Sierra Foothills All Weather Track Project Inc. Cedar Ridge CA Sierra Theatre Arts Growth Exchange Davis CA Society of Grumpy Old Men and Friends Little Rock AR Solar Connections Fort Bragg CA Solutions Lodi CA Sonoma-Chambolle Musigny Sister Cities Inc. Sonoma CA South Valley Behavioral Counseling Services Phoenix AZ Southeast Fayetteville Community Center Inc. Fayetteville AR St. Christopher Childrens Pre-Teen Educational and Medical Foundation Renton WA St. Francis Elderly Haven of Rest Stockton CA Summer Street Springdale AR T.M.J. Society of California Cameron Park CA Tri-County Medicaid Transportation Inc. Warren AR Tucker Financial Management Lodi CA Twin Counties Swim League Inc. Benicia CA Twin Lakes Yaba Scholarship Fund Mountain Home ARUnder the Spotlight Antioch CA Underground Gold Miners of California Museum Alleghany CA United Pastors of Sacramento Sacramento CA Vallejo Crimestoppers Inc. Vallejo CA Viking Boys Basketball Organization Antelope CA Washington Deming Study Group Rockville MD Weecare Too Inc. Yellville AR Women in Telecommunications Alamo CA Woodland House of Mercy Woodland CA Worldwide Christian Church Ministries Inc. Alhambra CA Youth Dream Video Productions Sacramento CA If an organization listed above sub- mits information that warrants the re- newal of its classification as a public charity or as a private operating founda- tion the Internal Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and contrib- utors may thereafter rely upon such rul- ing 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 classi- fication of foundation status in the Inter- nal Revenue Bulletin. 2001 40 I.R.B. 311 October 1 2001 October 1 2001 i 2001 40 I.R.B. Revenue rulings and revenue procedures hereinafter referred to as rulings that have an effect on previous rulings use the following defined terms to de- scribe the effect Amplified describes a situation where no change is being made in a prior pub- lished position but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus if an earlier ruling held that a principle applied to A and the new ruling holds that the same principle also applies to B the earlier ruling is amplified. Compare with modified below . Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused or may cause some confu- sion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously published ruling and points out an essen- tial difference between them. Modified is used where the substance of a previously published position is being changed. Thus if a prior ruling held that a principle applied to A but not to B and the new ruling holds that it ap-plies to both A and B the prior ruling is modified because it corrects a published position. Compare with amplified and clarified above . Obsoleted describes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in law or regulations. A ruling may also be obsoleted because the sub- stance has been included in regulations subsequently adopted. Revoked describes situations where the position in the previously published rul- ing is not correct and the correct position is being stated in the new ruling. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling or rulings . Thus the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations names etc. that were previously published over a pe- riod of time in separate rulings. If thenew ruling does more than restate the substance of a prior ruling a combination of terms is used. For example modified and superseded describes a situation where the substance of a previously pub- lished ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case the previously published ruling is first modified and then as modified is super- seded. Supplemented is used in situations in which a list such as a list of the names of countries is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times a new ruling may be pub- lished that includes the list in the original ruling and the additions and supersedes all prior rulings in the series. Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations the outcome of cases in litigation or the outcome of a Service study. Abbreviations The following abbreviations in current use and for- merly used will appear in material published in the Bulletin. A Individual. Acq. Acquiescence. B Individual. BE Beneficiary. BK Bank. B.T.A. Board of Tax Appeals. C Individual. C.B. Cumulative Bulletin. CFR Code of Federal Regulations. CI City. COOP Cooperative. Ct.D. Court Decision. CY County. D Decedent. DC Dummy Corporation. DE Donee. Del. Order Delegation Order. DISC Domestic International Sales Corporation. DR Donor. E Estate. EE Employee.E.O. Executive Order. ER Employer. ERISA Employee Retirement Income Security Act. EX Executor. F Fiduciary. FC Foreign Country. FICA Federal Insurance Contributions Act. FISC Foreign International Sales Company. FPH Foreign Personal Holding Company. F.R. Federal Register. FUTA Federal Unemployment Tax Act. FX Foreign Corporation. G.C.M. Chief Counsel s Memorandum. GE Grantee. GP General Partner. GR Grantor. IC Insurance Company. I.R.B. Internal Revenue Bulletin. LE Lessee. LP Limited Partner. LR Lessor. M Minor. Nonacq. Nonacquiescence. O Organization. P Parent Corporation.PHC Personal Holding Company. PO Possession of the U.S. PR Partner. PRS Partnership. PTE Prohibited Transaction Exemption. Pub. L. Public Law. REIT Real Estate Investment Trust. Rev. Proc. Revenue Procedure. Rev. Rul. Revenue Ruling. S Subsidiary. S.P.R. Statements of Procedural Rules. Stat. Statutes at Large. T Target Corporation. T.C. Tax Court. T.D. Treasury Decision. TFE Transferee. TFR Transferor. T.I.R. Technical Information Release. TP Taxpayer. TR Trust. TT Trustee. U.S.C. United States Code. X Corporation. Y Corporation. Z Corporation. Definition of Terms 2001 40 I.R.B. ii October 1 2001 Numerical Finding List 1 Bulletins 2001 27 through 2001 39 Announcements 2001 69 2001 27 I.R.B. 23 2001 70 2001 27 I.R.B. 23 2001 71 2001 27 I.R.B. 26 2001 72 2001 28 I.R.B. 39 2001 73 2001 28 I.R.B. 40 2001 74 2001 28 I.R.B. 40 2001 75 2001 28 I.R.B. 42 2001 76 2001 29 I.R.B. 67 2001 77 2001 30 I.R.B. 83 2001 78 2001 30 I.R.B. 87 2001 79 2001 31 I.R.B. 97 2001 80 2001 31 I.R.B. 98 2001 81 2001 33 I.R.B. 175 2001 82 2001 32 I.R.B. 123 2001 83 2001 35 I.R.B. 205 2001 84 2001 35 I.R.B. 206 2001 85 2001 36 I.R.B. 219 2001 86 2001 35 I.R.B. 207 2001 87 2001 35 I.R.B. 208 2001 88 2001 36 I.R.B. 220 2001 89 2001 38 I.R.B. 291 2001 90 2001 35 I.R.B. 208 2001 91 2001 36 I.R.B. 221 2001 92 2001 39 I.R.B. 301 2001 94 2001 39 I.R.B. 303 2001 95 2001 39 I.R.B. 303 Court Decisions 2070 2001 31 I.R.B. 90 Notices 2001 39 2001 27 I.R.B. 3 2001 41 2001 27 I.R.B. 2 2001 42 2001 30 I.R.B. 70 2001 43 2001 30 I.R.B. 72 2001 44 2001 30 I.R.B. 77 2001 45 2001 33 I.R.B. 129 2001 46 2001 32 I.R.B. 122 2001 47 2001 36 I.R.B. 212 2001 48 2001 33 I.R.B. 130 2001 49 2001 34 I.R.B. 188 2001 50 2001 34 I.R.B. 189 2001 51 2001 34 I.R.B. 190 2001 52 2001 35 I.R.B. 203 2001 53 2001 37 I.R.B. 225 2001 54 2001 37 I.R.B. 225 2001 55 2001 39 I.R.B. 299 2001 56 2001 38 I.R.B. 277 2001 57 2001 38 I.R.B. 279 2001 58 2001 39 I.R.B. 299 Proposed Regulations REG 110311 98 2001 35 I.R.B. 204 REG 106917 99 2001 27 I.R.B. 4 REG 103735 00 2001 35 I.R.B. 204 REG 103736 00 2001 35 I.R.B. 204 REG 100548 01 2001 29 I.R.B. 67 REG 106431 01 2001 37 I.R.B. 272 Railroad Retirement Quarterly Rates 2001 27 I.R.B. 1Revenue Procedures 2001 39 2001 28 I.R.B. 38 2001 40 2001 33 I.R.B. 130 2001 41 2001 33 I.R.B. 173 2001 42 2001 36 I.R.B. 212 2001 43 2001 34 I.R.B. 191 2001 44 2001 35 I.R.B. 203 2001 45 2001 37 I.R.B. 227 2001 46 2001 37 I.R.B. 263 2001 49 2001 39 I.R.B. 300 Revenue Rulings 2001 30 2001 29 I.R.B. 46 2001 33 2001 32 I.R.B. 11 8 2001 34 2001 28 I.R.B. 31 2001 35 2001 29 I.R.B. 59 2001 36 2001 32 I.R.B. 11 9 2001 37 2001 32 I.R.B. 100 2001 38 2001 33 I.R.B. 124 2001 39 2001 33 I.R.B. 125 2001 40 2001 38 I.R.B. 276 2001 41 2001 35 I.R.B. 193 2001 42 2001 37 I.R.B. 223 2001 43 2001 36 I.R.B. 209 2001 44 2001 37 I.R.B. 223 2001 47 2001 39 I.R.B. 293 Treasury Decisions 8947 2001 28 I.R.B. 36 8948 2001 28 I.R.B. 27 8949 2001 28 I.R.B. 33 8950 2001 28 I.R.B. 34 8951 2001 29 I.R.B. 63 8952 2001 29 I.R.B. 60 8953 2001 29 I.R.B. 44 8954 2001 29 I.R.B. 47 8955 2001 32 I.R.B. 101 8956 2001 32 I.R.B. 11 2 8957 2001 33 I.R.B. 125 8958 2001 34 I.R.B. 183 8959 2001 34 I.R.B. 185 8960 2001 34 I.R.B. 176 8961 2001 35 I.R.B. 194 8962 2001 35 I.R.B. 201 8963 2001 35 I.R.B. 197 1A cumulative list of all revenue rulings revenue procedures Treasury decisions etc. published in Internal Revenue Bulletins 2001 1 through 2001 26 is in Internal Revenue Bulletin 2001 27 dated July 2 2001. October 1 2001 iii 2001 40 I.R.B. Finding List of Current Actions on Previously Published Items 1 Bulletins 2001 27 through 2001 39 Announcements 2000 48 Modified by Notice 2001 43 2001 30 I.R.B. 72 Notices 98 52 Modified by Notice 2001 56 2001 38 I.R.B. 277 2001 4 Modified by Notice 2001 43 2001 30 I.R.B. 72 2001 9 Modified by Notice 2001 46 2001 32 I.R.B. 122 2001 15 Supplemented by Notice 2001 51 2001 34 I.R.B. 190 2001 42 Modified by Notice 2001 57 2001 38 I.R.B. 279 Proposed Regulations LR 97 79 Withdrawn by REG 100548 01 2001 29 I.R.B. 67 LR 107 84 Withdrawn by REG 100548 01 2001 29 I.R.B. 67 REG 110311 98 Supplemented by T.D. 8961 2001 35 I.R.B. 194 REG 106917 99 Corrected by Ann. 2001 86 2001 35 I.R.B. 207 REG 103735 00 Supplemented by T.D. 8961 2001 35 I.R.B. 194 REG 103736 00 Supplemented by T.D. 8961 2001 35 I.R.B. 194 REG 107186 00 Corrected by Ann. 2001 71 2001 27 I.R.B. 26 REG 130477 00 Supplemented by Ann. 2001 82 2001 32 I.R.B. 123 REG 130481 00 Supplemented by Ann. 2001 82 2001 32 I.R.B. 123 Revenue Procedures 83 74 Revoked by Rev. Proc. 2001 49 2001 39 I.R.B. 300Revenue Procedures Continued 84 84 Revoked by Rev. Proc. 2001 49 2001 39 I.R.B. 300 93 27 Clarified by Rev. Proc. 2001 43 2001 34 I.R.B. 191 97 13 Modified by Rev. Proc. 2001 39 2001 28 I.R.B. 38 98 44 Superseded by Rev. Proc. 2001 40 2001 33 I.R.B. 130 99 27 Superseded by Rev. Proc. 2001 42 2001 36 I.R.B. 212 99 49 Modified and amplified by Rev. Proc. 2001 46 2001 37 I.R.B. 263 2000 20 Modified by Notice 2001 42 2001 30 I.R.B. 70 2000 39 Corrected by Ann. 2001 73 2001 28 I.R.B. 40 2001 2 Modified by Rev. Proc. 2001 41 2001 33 I.R.B. 173 2001 6 Modified by Notice 2001 42 2001 30 I.R.B. 70 Revenue Rulings 57 589 Obsoleted by REG 106917 99 2001 27 I.R.B. 4 65 316 Obsoleted by REG 106917 99 2001 27 I.R.B. 4 68 125 Obsoleted by REG 106917 99 2001 27 I.R.B. 4 69 563 Obsoleted by REG 106917 99 2001 27 I.R.B. 4 70 379 Obsoleted by Rev. Rul. 2001 39 2001 33 I.R.B. 125 74 326 Obsoleted by REG 106917 99 2001 27 I.R.B. 4 78 127 Modified by Rev. Rul. 2001 40 2001 38 I.R.B. 276 78 179 Obsoleted by REG 106917 99 2001 27 I.R.B. 4 92 19 Supplemented by Rev. Rul. 2001 38 2001 33 I.R.B. 124Treasury Decisions 8948 Corrected by Ann. 2001 90 2001 35 I.R.B. 208 1A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2001 1 through 2001 26 is in Internal Revenue Bulletin 2001 27 dated July 2 2001. INDEX Internal Revenue Bulletins 2001 27 through 2001 39 The abbreviation and number in paren- thesis following the index entry refer to the specific item numbers in roman and italic type following the paranthesis refer to the Internal Revenue Bulletin in which the item may be found and the page number on which it appears. Key to Abbreviations Ann Announcement CD Court Decision DO Delegation Order EO Executive Order PL Public Law PTE Prohibited Transaction Exemption RP Revenue Procedure RR Revenue Ruling SPR Statement of Procedural Rules TC Tax Convention TD Treasury Decision TDO Treasury Department Order EMPLOYEE PLANS Defined benefit pension plan transfer of excess assets TD 8948 28 27 correc- tion Ann 90 35 208 Determination letters Future of the determination letter pro- gram Ann 83 35 205 Qualified plans simplifying applica- tion procedures Ann 77 30 83 Full funding limitations Weighted average interest rate for June 2001 Notice 39 27 3 July 2001 Notice 48 33 130 August 2001 Notice 52 35 203 September 2001 Notice 58 39 299 Nondiscrimination requirements and rules A defined benefit replacement alloca- tion cross-testing RR 30 29 46 Certain defined contribution retirement plans TD 8954 29 47 Governmental and church plans relief from Notice 46 32 122 Qualified retirement plans Compensation limit top-heavy deter- mination 401K hardship distribution Notice 56 38 277Remedial amendment period under EGTRRA Notice 42 30 70 Required minimum distribution alter- native model amendment Ann 82 32 123 Sample amendments for changes to plan qualifiation requirements No- tice 57 38 279 Regulations 26 CFR 1.401 a 4 0 8 revised 1.401 a 4 9 12 amended non- discrimination requirements for cer- tain defined contribution retirement plans TD 8954 29 47 26 CFR 1.420 1 added minimum cost requirement permitting the transfer of excess assets of a defined benefit pension plan to a retiree health ac- count TD 8948 28 27 correction Ann 90 35 208 26 CFR 301.7701 7 amended classi- fication of certain pension and em- ployee benefit trusts and investment trusts as domestic trusts for federal tax purposes TD 8962 35 201 Trusts classification of certain pension and employee benefit trusts and in- vestment trusts as domestic trusts for federal tax purposes TD 8962 35 201 EMPLOYMENT TAX Back wages subject to FICA and FUTA taxes year paid CD 2070 31 90 Electronic furnishing of payee state- ments voluntary hearing Ann 71 27 26 Federal tax deposits removal of Federal Reserve banks as depositaries TD 8952 29 60 Forms W-2 separate reporting of non- statutory stock option income Ann 92 39 301 Interest-free adjustments underpay- ments of employment taxes TD 8959 34 185 Penalties for underpayments of deposits and overstated deposit claims TD 8947 28 36 Railroad retirement rate determination quarterly July 1 2001 27 1 Refund or credit of overassessments date of allowance RR 40 38 276Regulations 26 CFR 31.6205 1 a 6 revised in- terest-free adjustments with respect to underpayments of employment taxes TD 8959 34 185 26 CFR 31.6302 1 revised 31.6302 c 4 revised 301.6656 1 2 re- moved 301.6656 3 redesignated as 301.6656 1 602.101 amended penalties for underpayments of de- posits and overstated deposit claims TD 8947 28 36 26 CFR 31.6302 1 amended 31.6302 c 3 amended 301.6302 1T re- moved removal of Federal Reserve banks as federal depositaries TD 8952 29 60 26 CFR 301.6323 j 1 added with- drawal of notice of federal tax lien in certain circumstances TD 8951 29 63 Tax liens federal circumstances for with- drawal of notice TD 8951 29 63 ESTATE TAX Automatic extension of time to file Form 706 TD 8957 33 125 Filing locations for estate gift and genera- tion-skipping transfer tax returns revised Ann 74 28 40 Generation-skipping transfer tax automatic allocation election Notice 50 34 189 Regulations 26 CFR 20.6075 1 revised 20.6081 1 revised 602.101 amended estate tax return Form 706 extension to file TD 8957 33 125 EXCISE TAX Excise tax return filing payment and de- posit requirements TD 8963 35 197 Form 2290SP Declaraci n del Impuesto sobre el Uso de Veh culos Pesados en las Carreteras new Ann 69 27 23 Regulations 26 CFR 40.0 1 amended 40.6011 a 1 2 amended 40.6071 a 1 amended 40.6071 a 2 removed 40.6091 1 amended 40.6101 1 re- vised 40.6109 a 1 revised 40.6151 a 1 revised 40.6302 c 1 2 revised 40.6302 c 3 amended 40.6302 c 4 removed 40.9999 1 removed deposits of ex- cise taxes TD 8963 35 197 2001 40 I.R.B. iv October 1 2001 EMPLOYEE PLANS Cont. EMPLOYMENT TAX Cont. EXEMPT ORGANIZATIONS Filing locations for estate gift and gener- ation-skipping transfer tax returns re- vised Ann 74 28 40 Generation-skipping transfer tax auto- matic allocation election Notice 50 34 189 List of organizations classified as pri- vate foundations Ann 70 27 23 Ann 72 28 39 Ann 76 29 67 Ann 78 30 87 Ann 79 31 97 Ann 84 35 206 Ann 85 36 219 Ann 89 38 291 Ann 94 39 301 Qualified state tuition programs rollovers and change of investments Notice 55 39 299 Revocations Ann 81 33 175 Ann 95 39 303 INCOME TAX Accounting periods rules and procedures for REG 106917 99 27 4 correc- tion Ann 86 35 207 Backup withholding rate for amounts paid after August 6 2001 Ann 80 31 98 Bonds tax and revenue anticipation safe harbor Notice 49 34 188 Business and traveling expenses per diemallowances Ann 73 28 40 Collapsible corporations withdrawal of proposed regulations LR 107 84 REG 100548 01 29 67 Corporations consolidated groups Tentative carryback adjustments TD 8950 28 34 Special aggregate stock ownership rules TD 8949 28 33 Corporations Consolidated income tax return filers withdrawal of proposed regulations LR 97 79 REG 100548 01 29 67 Mexican subsidiary formed to comply with foreign law RR 39 33 125 Credits Enhanced oil recovery credit 2001 in- flation adjustment Notice 54 37 225 Low-income housing credit Carryovers to qualified states 2001 National Pool RP 44 35 203 Satisfactory bond bond factor amounts for the period July through September 2001 RR 37 32 100Disclosure of return information Census of Agriculture TD 8958 34 183 Earned income credit eligibility after de- nial TD 8953 29 44 Electronic and magnetic media Filing specifications for Form 1042 S Foreign Person s U.S. Source Income Subject to Withholding RP 40 33 130 Information reporting seminars Form 1042 S Ann 87 35 208 Electronic filing for partnerships exemp- tion from Ann 75 28 42 Electronic furnishing of payee statements voluntary hearing Ann 71 27 26 Exempt organization revocations Ann 81 33 175 Ann 95 39 303 Federal tax deposits removal of Federal Reserve banks as depositaries TD 8952 29 60 Forms W 9 electronic submission by certain intermediaries Ann 91 36 221 1042 S specifications for filing magnet- ically or electronically RP 40 33 130 2290SP Declaraci n del Impuesto sobre el Uso de Veh culos Pesados en las Carreteras new Ann 69 27 23 Insurance companies Differential earnings rate and recom- puted differential earnings rate for mutual life insurance companies RR 33 32 11 8 Modified endowment contracts uniform closing agreement RP 42 36 212 Prevailing mortality and morbidity tables RR 38 33 124 Interest Investment Federal short-term mid-term and long-term rates for July 2001 RR 34 28 31 August 2001 RR 36 32 11 9 September 2001 RR 43 36 209 Rates Underpayments and overpayments quarter beginning October 1 2001 RR 47 39 293 Inventory LIFO Price indexes used by department stores for May 2001 RR 35 29 59 June 2001 RR 41 35 193 July 2001 RR 44 37 223Limitations on passive activity losses and credits Notice 47 36 212 Marginal properties oil and gas produc- tion depletion applicable percentages Notice 53 37 225 Notional principal contract NPC con- tingent nonperiodic payments Notice 44 30 77 Partnerships Substitute forms requirements for part- ner copy of Sch. K-1 of Forms 1065 and 1065-B Ann 88 36 220 Unvested partnership profits interests RP 43 34 191 Penalties for underpayments of deposits and overstated deposit claims TD 8947 28 36 Private foundations organizations now classified as Ann 70 27 23 Ann 72 28 39 Ann 76 29 67 Ann 78 30 87 Ann 79 31 97 Ann 84 35 206 Ann 85 36 219 Ann 89 38 291 Ann 94 39 301 Proposed Regulations 26 CFR 1.341 1 b 2 5 4 a 4 c withdrawn withdrawal of proposed regulations relating to col- lapsible corporations REG 100548 01 29 67 26 CFR 1.441 0 through 4 added 1.441 1T through 4T removed 1.442 1 revised 1.442 2T 3T re- moved 1.706 1 amended 1.706 1T removed 1.898 4 amended 1.1378 1 added 5c.442 1 re- moved 5f.442 1 removed 18.1378 1 removed changes in ac- counting periods REG 106917 99 27 4 correction Ann 86 35 207 26 CFR 1.1361 1 amended qualified subchapter S trust election for testa- mentary trusts REG 106431 01 37 272 26 CFR 1.1502 2 3 7 8 11 21 22 75 78 79 withdrawn with- drawal of proposed regulations relat- ing to corporations filing consolidated returns REG 100548 01 29 67 26 CFR 1.6011 4 amended 301. 6111 2 amended modification of tax shelter rules II REG 103735 00 REG 110311 98 REG 103736 00 35 204 Publication 1167 substitute forms gen- eral requirements RP 45 37 227 October 1 2001 v 2001 40 I.R.B. INCOME TAX Cont. INCOME TAX Cont. Railroad track maintenance costs ac- counting methods RP 46 37 263 Recognition of gain on Certain distributions of stock or securi- ties in connection with an acquisition TD 8960 34 176 Certain transfers to foreign trusts and estates TD 8956 32 11 2 Refund or credit of overassessments date of allowance RR 40 38 276 Regulations 26 CFR 1.32 3 added 1.32 3T re- moved 602.101 b amended eligi- bility requirements after denial of the earned income credit TD 8953 29 44 26 CFR 1.355 0 amended 1.355 7T added guidance under section 355 e recognition of gain on cer- tain distributions of stock or securi- ties in connection with an acquisition TD 8960 34 176 26 CFR 1.679 0 through 7 added 1.958 1 revised 1.958 2 amended foreign trusts that have U.S. beneficia- ries TD 8955 32 101 26 CFR 1.684 1 through 5 added recognition of gain on certain trans- fers to certain foreign trusts and es- tates TD 8956 32 11 2 26 CFR 1.732 3 added 1.1502 34 amended special aggregate stock ownership rules TD 8949 28 33 26 CFR 1.1502 78 amended 1.1502 78T removed guidance on filing an application for a tentative carryback adjustment in a consoli- dated return context TD 8950 28 3426 CFR 1.6011 4T amended 301.6111 2T amended 301.6112 1T amended modification of tax shelter rules II TD 8961 35 194 26 CFR 1.6302 1 2 revised 301.6656 1 2 removed 301.6656 3 redesignated as 301.6656 1 602.101 amended penalties for un- derpayments of deposits and over- stated deposit claims TD 8947 28 36 26 CFR 1.6302 1 2 amended 1.1461 1 amended 1.1502 5 a 1 amended 1.6151 1 d 1 amended removal of Federal Reserve banks as federal depositaries TD 8952 29 60 26 CFR 301.6103 j 5 1 added 301.6103 j 5 1T removed dis- closure of return information to of- ficers and employees of the Depart- ment of Agriculture for certain statistical purposes and related ac- tivities Census of Agriculture TD 8958 34 183 26 CFR 301.6323 j 1 added with- drawal of notice of federal tax lien in certain circumstances TD 8951 29 63 26 CFR 301.7701 7 amended classi- fication of certain pension and em- ployee benefit trusts and investment trusts as domestic trusts for federal tax purposes TD 8962 35 201 Standard Industry Fare Level SIFL for- mula RR 42 37 223 Substitute forms general requirements RP 45 37 227Tax conventions French social security tax treatment of Notice 41 27 2 Tax exempt bonds private activity bonds RP 39 28 38 Tax liens federal circumstances for with- drawal of notice TD 8951 29 63 Tax shelters Basis shifting tax avoidance transac- tions Notice 45 33 129 Listed transactions Notice 51 34 190 Modification of tax shelter rules II TD 8961 35 194 REG 103735 00 REG 110311 98 REG 103736 00 35 204 Procedures to investigate abusive pro- motions RP 49 39 300 Technical advice from Associates Chief Counsel and Division Counsel Associ- ate Chief Counsel TE GE frivolous issues RP 41 33 173 Trusts Classification of certain pension and employee benefit trusts and invest- ment trusts as domestic trusts for federal tax purposes TD 8962 35 201 Foreign trusts that have U.S. beneficia- ries TD 8955 32 101 Qualified subchapter S trust election for testamentary trusts REG 106431 01 37 272 Withholdings payments to nonqualified intermediaries and foreign trusts U. 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