Bulletin No. 1999–16

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April 19, 1999

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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.

INCOME TAX

Notice 99–18, page 4.

Credit for producing fuel from a nonconventional

source, section 29 inflation adjustment factor and reference price. This notice publishes the nonconventional

source fuel credit, the inflation adjustment factor, and the

reference price under section 29 of the Code for calendar

year 1998. This data is used to determine the credit allowable on fuel produced from a nonconventional source.

EMPLOYEE PLANS

Rev. Proc. 99–23, page 5.

Qualified plans; remedial amendment period. This procedure extends the remedial amendment period under section 401(b) of the Code for amending qualified plans within

the meaning of section 401(a) or 403(a) for changes in the

qualification requirements made by the Small Business Job

Protection Act of 1996 and other recent legislation. In addition, this procedure extends the remedial amendment period

for amending governmental and nonelecting church plans for

the Tax Reform Act of 1986. Rev. Procs. 89–9, 89–13, section 13 of 93–39, 95–12, 97–41, and 98–14, modified. Notices 92–36, 96–64, 98–39, 98–52, and 99–5, modified.

comments on possible changes to published guidance concerning accounting period changes. Possible changes may

include revising the criteria used to establish a substantial

business purpose and allowing more automatic accounting

period changes.

Announcement 99–36, page 10.

The Service will continue to publish the cumulative bulletin

(CB) but in a new format. This decision was based on the responses from taxpayers, tax practitioners, and government

agencies to the Service’s proposal to discontinue the CB.

Announcement 99–41, page 10.

This document contains corrections to T.D. 8814, 1999–9

I.R.B. 4, that provides guidance as to when amounts deferred under or paid from a nonqualified deferred compensation plan are taken into account as wages for purposes of

the employment taxes imposed by the Federal Insurance

Contributions Act (FICA).

Announcement 99–42, page 11.

This document contains corrections to T.D. 8770, 1998–27

I.R.B. 4, relating to certain transfers of stock or securities

by U.S. persons to foreign corporations and related reporting requirements.

EXEMPT ORGANIZATIONS

Announcement 99–43, page 11.

Announcement 99–45, page 12.

This document contains corrections to T.D. 8817, 1999–8

I.R.B. 51, relating to certain transfers to foreign partnerships and corporations by U.S. persons.

The Abraham Lincoln Opportunity Foundation, Pine Mountain, GA, no longer qualifies as an organization to which contributions are deductible under section 170 of the Code.

Announcement 99–44, page 12.

Announcement 99–40, page 10.

This document contains corrections to T.D. 8011, 1985–1

C.B. 397, relating to the displaying of OMB control numbers

on IRS regulations that solicit or obtain information from the

public.

This announcement describes provisions that will be included in the final kerosene tax regulations.

Announcement 99–46, page 13.

EXCISE TAX

ADMINISTRATIVE

Notice 99–19, page 4.

Accounting periods; changes. This notice invites public

This document contains corrections to Announcement

99–24, 1999–14 I.R.B. 12, in which proposed revisions to

Form 1042-S were poorly reproduced. We are providing

more legible copies of Form 1042-S, and we are extending

the date for receiving comments to May 19, 1999.

Finding Lists begin on page 26.

Announcement of Disbarments and Suspensions begins on page 21.

Department of the Treasury

Internal Revenue Service

Mission of the Service

and by applying the tax law with integrity and fairness to

all.

Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official 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.

dures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions 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.

It is the policy of the Service to publish in the Bulletin all substantive 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 otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements

of internal practices and procedures that affect the rights

and duties of taxpayers are published.

Part II.—Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A,

Tax Conventions, 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 Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings

are issued by the Department of the Treasury’s Office of the

Assistant Secretary (Enforcement).

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.

Part IV.—Items of General Interest.

This part includes notices of proposed rulemakings, disbarment and suspension lists, and announcements.

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 published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and proce-

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 semiannual period, respectively.

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.

Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 401.—Qualified

Pension, Profit-Sharing and

Stock Bonus Plans

26 CFR 1.401(b)–1: Certain retroactive changes in

plan.

A remedial amendment period for changes in

plan qualification requirements made by the Small

Business Job Protection Act of 1996 and other recent legislation is provided. See Rev. Proc. 99–23,

page 5

1999–16 I.R.B.

April 19, 1999

Part III. Administrative, Procedural, and Miscellaneous

Nonconventional Source Fuel

Credit, § 29 Inflation

Adjustment Factor, and § 29

Reference Price

Notice 99–18

This notice publishes the nonconventional source fuel credit, inflation adjustment factor, and reference price under

§ 29 of the Internal Revenue Code for calendar year 1998. These are used to determine the credit allowable on fuel produced from a nonconventional source

under § 29 of the Internal Revenue Code.

The calendar year 1998 inflation-adjusted

credit applies to the sales of barrel-of-oil

equivalent of qualified fuels sold by a taxpayer to an unrelated person during the

1998 calendar year, the domestic production of which is attributable to the taxpayer.

BACKGROUND

Section 29(a) provides for a credit for

producing fuel from a nonconventional

source, measured in barrel-of-oil equivalent of qualified fuels, the production of

which is attributable to the taxpayer and

sold by the taxpayer to an unrelated person during the tax year. The credit is

equal to the product of $3.00 and the appropriate inflation adjustment factor.

Section 29(b)(1) and (2) provides for a

phase out of the credit. The credit allowable under § 29(a) must be reduced by an

amount which bears the same ratio to the

amount of the credit (determined without

regard to § 29(b)(1)) as the amount by

which the reference price for the calendar

year in which the sale occurs exceeds

$23.50 bears to $6.00. The $3.00 in

§ 29(a) and the $23.50 and $6.00 must

each be adjusted by multiplying these

amounts by the 1998 inflation adjustment

factor. In the case of gas from a tight formation, the $3.00 amount in § 29(a) must

not be adjusted.

Section 29(c)(1) defines the term

“qualified fuels” to include oil produced

from shale and tar sands; gas produced

from geopressurized brine, Devonian

shale, coal seams, or a tight formation, or

biomass; and liquid, gaseous, or solid

synthetic fuels produced from coal (in-

April 19, 1999

cluding lignite), including such fuels

when used as feedstocks.

Section 29(d)(1) provides that the

credit is to be applied only for sale of

qualified fuels the production of which is

within the United States (within the

meaning of § 638(1)) or a possession of

the United States (within the meaning of

§ 638(2)).

Section 29(d)(2)(A) requires that the

Secretary, not later than April 1 of each

calendar year, determine and publish in

the Federal Register the inflation adjustment factor and the reference price for the

preceding calendar year.

Section 29(d)(2)(B) defines “inflation

adjustment factor” for a calendar year as

the fraction the numerator of which is the

GNP implicit price deflator for the calendar year and the denominator of which is

the GNP implicit price deflator for calendar year 1979. The term “GNP implicit

price deflator” means the first version of

the implicit price deflator for the gross national product as computed and published

by the Department of Commerce.

Section 29(d)(2)(C) defines “reference

price” to mean with respect to a calendar

year the Secretary’s estimate of the annual

average wellhead price per barrel of all

domestic crude oil the price of which is

not subject to regulation by the United

States.

Section 29(d)(3) provides that in the

case of a property or facility in which

more than one person has an interest, except to the extent provided by regulations

prepared by the Secretary, production

from the property or facility (as the case

may be) must be allocated among the persons in proportion to their respective interests in the gross sales from the property

or facility.

Section 29(d)(5) and (6) provides that

the term “barrel-of-oil equivalent” with

respect to any fuel generally means that

amount of the fuel which has a Btu content of 5.8 million.

INFLATION ADJUSTMENT FACTOR

AND REFERENCE PRICE

The inflation adjustment factor for calendar year 1998 is 2.0384. The reference

price for calendar year 1998 is $10.88. As

required by § 29(d)(2)(A), the inflation

adjustment factor and reference price for

calendar year 1998 will be published in

the Federal Register on April 6, 1999.

PHASE-OUT CALCULATION

Because the calendar year 1998 reference price does not exceed $23.50 multiplied by the inflation adjustment factor,

the phase out of the credit provided for in

§ 29(b)(1) does not occur for any qualified fuel sold in calendar year 1998.

CREDIT AMOUNT

The nonconventional source fuel credit

under § 29(a) is $6.12 per barrel-of-oil

equivalent of qualified fuels ($3.00 ⫻

2.0284). This amount will be published

in the Federal Register on April 6, 1999.

DRAFTING INFORMATION

CONTACT

The principal author of this notice is

Alan H. Cooper of the Office of Assistant

Chief Counsel (Passthroughs and Special

Industries). For further information regarding this notice contact Alan H.

Cooper at (202) 622-3110 (not a toll-free

call).

Accounting Period Guidance

Notice 99–19

PURPOSE

This notice invites public comment on

possible changes to published guidance

concerning accounting period changes.

Among possible changes under consideration are: (1) revising the criteria used to establish a substantial business purpose, including what constitutes a natural business

year; and (2) allowing more accounting period changes to be made automatically.

BACKGROUND

Section 441 of the Internal Revenue

Code provides that taxable income must

be computed on the basis of the taxpayer’s taxable year. In general, the term

“taxable year” means the taxpayer’s annual accounting period, which can be a

calendar or fiscal year, or a period of less

than 12 months for which a return is made

1999–16 I.R.B.

(i.e., a short period). The term “annual

accounting period” means the annual period on the basis of which the taxpayer

regularly computes its income in keeping

its books. Special rules under the Code

and Income Tax Regulations require particular accounting periods for certain taxpayers such as domestic international

sales corporations and foreign sales corporations (§ 441(h)), personal service corporations (§ 441(i)), certain trusts (§ 644),

partnerships (§ 706), real estate investment trusts (§ 859), real estate mortgage

investment conduits (§ 860D(a)(5)), specified foreign corporations (§ 898), S corporations (§ 1378), and members of affiliated groups that file consolidated returns

(Treas. Reg. § 1.1502–76).

Section 442 provides that if a taxpayer

changes its annual accounting period, the

new accounting period becomes the taxpayer’s taxable year only if the change is

approved by the Secretary. In addition,

adoptions of fiscal years by certain taxpayers are treated as accounting period

changes and thus can become the taxpayer’s taxable year only with the approval of the Secretary. (See e.g.,

§ 706(b)(1)(C)).

Section 1.442–1(b) provides that approval for an accounting period change

will not be granted unless the taxpayer

and the Commissioner agree to the terms,

conditions, and adjustments under which

the change will be effected. In general, a

change of annual accounting period will

be approved where the taxpayer establishes a substantial business purpose for

making the change.

Under the Code and regulations, certain taxpayers are allowed to change their

annual accounting periods automatically

without securing the prior approval of the

Commissioner (see, e.g., § 859(b) and

Treas. Reg. §§ 1.442-1(c), (d), and (e)).

In addition, the Service has issued several

revenue procedures, such as Rev. Proc.

92–13, 1992–1 C.B. 665; Rev. Proc. 87–

32, 1987–2 C.B. 396; and Rev. Proc. 66–

50, 1966–2 C.B. 1260, that enable taxpayers to obtain automatic approval of

changes in their accounting periods, if

specific conditions are satisfied.

REQUEST FOR PUBLIC COMMENT

The Service is considering what, if any,

changes should be made in order to clar-

1999–16 I.R.B.

ify and simplify published guidance concerning accounting period changes. Accordingly, the Service and Treasury request comments on possible changes to

current accounting period guidance including, but not limited to, the following:

(1) What changes should be made to

the rules governing the approval of accounting period change requests? For example, what changes, if any, should be

made to the substantial business purpose

requirement? See Treas. Reg. § 1.4421(b)(1). How should deferral or shifting

of income, or acceleration or shifting of

deductions, (“deferral”) be considered in

determining whether to approve an accounting period change request? For example, should safe harbors permitting de

minimis deferral be established? If an accounting period change that creates deferral is permitted, what terms and conditions should apply to the change? Should

all taxpayers, regardless of their form

(e.g., corporation, partnership, S corporation), be subject to the same criteria for

approval? Should the rules for establishing a natural business year be revised, and

if so, how? See Rev. Proc. 74–33, 1974–2

C.B. 489.

(2) How should the current automatic

accounting period change procedures be

organized, clarified, and simplified? See,

e.g., Treas. Reg. § 1.442–1, Rev. Proc.

92–13, Rev. Proc. 87–32, and Rev. Proc.

66–50. Should the Service provide procedures for automatic approval to change

accounting periods in additional situations? If so, what types of situations

would warrant such automatic approval,

and what, if any, terms and conditions

should apply to such changes?

Taxpayers may submit comments in

writing to:

Internal Revenue Service

Attn: CC:DOM:CORP:R (Notice

99–19, Room 5226).

P.O. Box 7604

Ben Franklin Station

Washington, D.C. 20044

Alternatively, taxpayers may submit

comments electronically at:

http://www.irs.ustreas.gov/prod/cover.

html (the IRS Internet site).

All comments should be received by

June 18, 1999. The comments submitted

will be available for public inspection and

copying.

DRAFTING INFORMATION

The principal author of this notice is

Martin Scully of the Office of Assistant

Chief Counsel (Income Tax and Accounting). For further information regarding

this notice contact Mr. Scully on (202)

622-4960 (not a toll-free call).

26 CFR 601.201: Rulings and determination letters

(Also, Part I, section 401; 1.401(b)–1.)

Rev. Proc. 99–23

SECTION 1. PURPOSE

.01 This revenue procedure extends

until the last day of the first plan year beginning on or after January 1, 2000, the

remedial amendment period under

§ 401(b) of the Code for amending plans

that are qualified under § 401(a) or

§ 403(a) for changes made by the Small

Business Job Protection Act of 1996, Pub.

L. 104–188 (“SBJPA”) and for other recent changes in the law. It also designates

as a disqualifying provision for which this

extended remedial amendment period is

available any plan provision that causes a

plan to fail to satisfy the qualification requirements of the Code because of the repeal of the combined plan limitation

under § 415(e) or that is integral to this repealed qualification requirement. The repeal of § 415(e) is effective for limitation

years beginning after December 31, 1999.

.02 This revenue procedure provides

that the extension of the remedial amendment period also applies:

1 to all disqualifying provisions of new

plans adopted or effective after December

7, 1994, and all disqualifying provisions

of existing plans arising from a plan

amendment adopted after December 7,

1994;

2 to the deadline for adopting certain

amendments relating to § 415(b)(2)(E);

3 to the deadline for adopting amendments of disqualifying provisions that are

integral to a qualification requirement

changed by a provision of SBJPA that became effective on the first day of the first

plan year beginning after December 31,

1998; and

4 to the deadline for adopting amendments of disqualifying provisions that are

integral to the requirements of § 401(a)(31) to reflect the change made by

April 19, 1999

§ 6005(c)(2) of the Internal Revenue Service Restructuring and Reform Act of

1998, Pub. L. 105–206 (“RRA 98”).

.03 This revenue procedure also provides that the extension of the remedial

amendment period applies to the time for

adopting amendments of defined benefit

plans to provide that benefits will be determined in accordance with the applicable interest rate rules and applicable mortality table rules of § 1.417(e)–1(d) of the

Income Tax Regulations. However, such

a plan amendment must provide that, with

respect to distributions with annuity starting dates that are on or after the effective

date of the amendment but before the

adoption date of the amendment, the distribution will be the greater of the amount

that would be determined under the plan

without regard to the amendment and the

amount determined under the plan with

regard to the amendment.

.04 This revenue procedure extends by

one year the period of extended reliance

for certain plans that received favorable

determination, opinion, or notification letters under the Tax Reform Act of 1986,

Pub. L. 99–514 (“TRA 86”).

.05 Finally, this revenue procedure extends the TRA 86 remedial amendment

period for governmental and nonelecting

church plans to the end of the remedial

amendment period for SBJPA. This extension ensures that no such plan need be

submitted for a determination letter until

the end of the SBJPA remedial amendment period. Sponsors of nonelecting

church plans continue to have until the

end of the 2001 plan year to adopt amendments relating to the nondiscrimination

requirements.

SECTION 2. BACKGROUND

.01 In recent years, the following public laws have made changes affecting the

requirements for qualification of pension,

profit-sharing, and stock bonus plans

under § 401(a) or § 403(a):

1 the Uruguay Round Agreements Act,

Pub. L. 103–464 (“GATT”);

2 the Uniformed Services Employment

and Reemployment Rights Act of 1994,

Pub. L. 103–353 (“USERRA”);

3 SBJPA;

4 the Taxpayer Relief Act of 1997, Pub.

L. 105–34 (“TRA 97”); and

5 RRA 98.

April 19, 1999

.02 Rev. Proc. 97–41, 1997–33 I.R.B.

51, provided a remedial amendment period under § 401(b) with respect to certain

amendments for GATT, SBJPA, and

USERRA. The remedial amendment period that was provided under Rev. Proc.

97–41 generally permits plan amendments to be made retroactively effective if

they are adopted before the end of the remedial amendment period and they relate

to GATT, SBJPA, and USERRA qualification changes that are effective before

the first day of the first plan year beginning on or after January 1, 1999. Rev.

Proc. 98–14, 1998–4 I.R.B. 22, provided

that the remedial amendment period described in Rev. Proc. 97–41 will also

apply to plan amendments that relate to

TRA 97. For plans other than governmental plans, the remedial amendment

period under Rev. Proc. 97–41 and Rev.

Proc. 98–14 ends on the last day of the

first plan year beginning on or after January 1, 1999. For governmental plans, as

defined in § 414(d), the remedial amendment period ends on the later of (i) the

last day of the last plan year beginning before January 1, 2001, or (ii) the last day of

the first plan year beginning on or after

the “1999 legislative date” (that is, the

90th day after the opening of the first legislative session beginning after December 31, 1998, of the governing body with

authority to amend the plan, if that body

does not meet continuously). Those

amendments that are required to be made

to retain qualified status as a result of

changes in the qualification requirements

must be made retroactively effective as of

the date on which the qualification change

became effective with respect to the plan,

and, in general, operational compliance

prior to actual amendment is required.

Those amendments that are not required

but that amend plan provisions that are integrally related to qualification changes

may be made retroactively effective as of

the first day on which the plan was operated in accordance with the amended plan

provision.

.03 The remedial amendment period

described in Rev. Proc. 97–41 also applies

with respect to all disqualifying provisions of new plans adopted or effective

after December 7, 1994, and with respect

to all plan amendments adopted after December 7, 1994, which would cause an

existing plan to fail to be qualified.

.04 The end of the remedial amendment period described in Rev. Proc.

97–41 is also the deadline for adopting

plan amendments applying the changes

under § 415(b)(2)(E). It is, likewise, the

deadline for adopting a plan amendment

repealing a pre-August 20, 1996, GATT

plan amendment, thereby permitting the

earlier plan amendment to be disregarded

in applying § 767(d)(3)(A) of GATT, as

modified by § 1449(a) of SBJPA.

.05 Notice 98–52, 1998–46 I.R.B. 16,

provided guidance on the nondiscrimination safe harbor methods in § 401(k)(12)

and § 401(m)(11). This notice designates

as disqualifying provisions under §

401(b) plan provisions that are integral to

a qualification requirement changed by a

provision of SBJPA that becomes effective on the first day of the first plan year

beginning after December 31, 1998, provided two conditions are satisfied. First,

the plan provisions must generally be

amended by no later than the last day of

the first plan year beginning after December 31, 1998. Second, the plan provisions, as amended, must be effective as of

the first day of the first plan year beginning after December 31, 1998. Notice

98–52 also provides that a plan amendment that satisfies these conditions will

not be treated as violating § 411(d)(6)

merely because the plan amendment imposes the withdrawal restrictions required

by § 401(k)(12)(E)(i), provided that those

withdrawal restrictions do not apply with

respect to contributions allocated as of a

date before the first day of the first plan

year beginning after December 31, 1998.

.06 Notice 99–5, 1999–3 I.R.B. 10,

provided guidance relating to the exception to the definition of eligible rollover

distribution for certain hardship distributions which was added to §§ 402(c)(4)

and 403(b)(8)(B) by § 6005(c)(2)(A) and

(B) of RRA 98. This definition is relevant

in the application of the direct rollover requirements of § 401(a)(31). This notice

designates as disqualifying provisions

under § 401(b) plan provisions that are integral to the requirements of § 401(a)(31),

but only to the extent such provisions are

amended to reflect the change made by

§ 6005(c)(2) of RRA 98, provided two

conditions are satisfied. First, the plan

provisions must generally be amended to

reflect the change made by § 6005(c)(2)

1999–16 I.R.B.

of RRA 98 by no later than the last day of

the first plan year beginning after December 31, 1998. Second, the plan provisions, as amended, must be effective as of

the first day the plan operates in accordance with the change made by

§ 6005(c)(2) of RRA 98.

.07 Under § 417(e)(3), as amended by

§ 767 of the Retirement Protection Act of

1994 (“RPA 94,” which is part of GATT),

and § 1.417(e)–1(d), a defined benefit

plan must provide that the present value

of any accrued benefit and the amount of

any distribution must not be less than the

amount calculated using the applicable interest rate described in § 1.417(e)–1(d)(3)

and the applicable mortality table described in § 1.417(e)–1(d)(2). Prior to

amendment by § 767 of RPA 94, § 417(e)(3) required, instead of the applicable interest rate, an interest rate based on the

rate that would be used by the Pension

Benefit Guaranty Corporation (“PBGC”)

for a trusteed single-employer plan to

value the participant’s vested benefit

(“PBGC rate”), and it did not impose any

restrictions on the mortality table to be

used. Section 767 of RPA 94 and

§ 1.417(e)–1(d) are generally effective for

distributions with annuity starting dates in

plan years beginning after December 31,

1994. However, § 417(e)(3)(B) provides

a transition rule for plans adopted and in

effect as of December 7, 1994 (“preGATT plans”). In general, under this rule,

the present value of a distribution from a

pre-GATT plan that is made before the

earlier of (i) the first plan year beginning

after December 31, 1999, or (ii) the later

of the adoption or effective date of a plan

amendment applying the changes made to

§ 417(e)(3) to the plan is to be determined

under the plan’s pre-GATT terms. Thus,

for pre-GATT plans, amendments applying the changes to § 417(e)(3) to plan

years beginning before January 1, 2000,

could not be adopted retroactively, and

these plans could not be operated in accordance with the changes prior to plan

amendment.

.08 Section 767(d)(2) of RPA 94 provides that a participant’s accrued benefit

is not considered to be reduced in violation of § 411(d)(6) merely because the

benefit is determined in accordance with

the applicable interest rate rules and the

applicable mortality table rules of

§ 417(e)(3)(A), as amended by RPA 94.

1999–16 I.R.B.

Section 1.417(e)–1(d)(10) explains the

scope of relief from the requirements of §

411(d)(6). A plan amendment to comply

with the applicable interest rate rules and

the applicable mortality table rules of §

417(e)(3)(A), as amended by RPA 94,

must apply to all distributions with annuity starting dates that occur in plan years

beginning after December 31, 1999.

.09 Section 1.401(b)–1T(c)(3) authorizes the Commissioner to impose limits

and provide additional rules regarding the

amendments that may be made within the

remedial amendment period with respect

to a plan provision that has been designated by the Commissioner as a disqualifying provision under § 401(b).

.10 Under Rev. Proc. 89–9, 1989–1

C.B. 780, Rev. Proc. 89–13, 1989–1 C.B.

801 (both as modified by Rev. Proc. 93–9,

1993–1 C.B. 474), Rev. Proc. 93–39,

1993–2 C.B. 513, Announcement 94–85,

1994–26 I.R.B. 23, and Rev. Proc. 95–12,

1995–1 C.B. 508, plans that were submitted to the Service within certain deadlines

for determination, opinion, or notification

letters under TRA 86 and received favorable letters are entitled to extended reliance. The sponsor of a plan that is entitled to extended reliance on a favorable

TRA 86 letter may rely on that letter until

the earlier of the last day of the last plan

year commencing prior to January 1,

1999, or the date established for plan

amendment by any legislation that is effective after the date of the plan’s letter.

A plan with extended reliance must be

amended by the last day of the first plan

year beginning on or after January 1,

1999, to the extent necessary to comply

with regulations or administrative guidance of general applicability that has been

issued since the date of the plan’s favorable TRA 86 letter. These amendments

must be made effective no later than the

first day of the first plan year beginning

on or after January 1, 1999, and no earlier

than the first day of the plan year in which

the amendments are adopted. (But see

Rev. Rul. 94–76, 1994–2 C.B. 46, and

Rev. Rul. 96–47, 1996–2 C.B. 35.)

.11 For nonelecting church plans, Notice 98–39, 1998–33 I.R.B. 11, extended

the remedial amendment period for plan

amendments relating to regulations under

§§ 401(a)(4), 401(a)(5), 401(l), and 414(s)

(“TRA 86 remedial amendment period”)

until the last day of the first plan year be-

ginning on or after January 1, 2001. The

remedial amendment period was not extended for other amendments covered by

the TRA 86 remedial amendment period,

such as amendments required to satisfy

the Omnibus Budget Reconciliation Act of

1993 (“OBRA 93”), the Unemployment

Compensation Act of 1992 (“UCA”), or

the changes to the law under TRA 86 other

than changes to the nondiscrimination

rules. Sponsors of nonelecting church

plans were required by Notice 96–64,

1996–2 C.B. 229, to adopt amendments

satisfying those changes in law by the last

day of the first plan year beginning on or

after January 1, 1999.

.12 For governmental plans, Notice

96–64, citing Announcement 95–48,

1995–23 I.R.B. 13, provided that the TRA

86 remedial amendment period for plan

amendments relating to regulations under

§§ 401(a)(4), 401(a)(26), 401(k), 401(m),

410(b), and 414(s) was extended to the

last day of the first plan year beginning on

or after the later of January 1, 1999, or 90

days after the opening of the first legislative session beginning on or after January

1, 1999 (“1999 legislative date”). This

extension of the TRA 86 remedial amendment period for governmental plans applied to all amendments relating to TRA

86, UCA, and OBRA 93, not just the

nondiscrimination requirements.

SECTION 3. EXTENSION OF

REMEDIAL AMENDMENT PERIOD

.01 The remedial amendment period

described in Rev. Proc. 97–41 and Rev.

Proc. 98–14, hereafter referred to as the

“GUST” remedial amendment period, is,

in the case of nongovernmental plans,

hereby extended to the last day of the first

plan year beginning on or after January 1,

2000. This extension does not alter the

GUST remedial amendment period for

governmental plans described in Rev.

Proc. 98–14.

.02 This extension also applies to the

remedial amendment period with respect

to disqualifying provisions of new plans

adopted or effective after December 7,

1994, and with respect to plan amendments adopted after December 7, 1994,

which would cause an existing plan to fail

to be qualified.

.03 This extension also extends the

deadline for adopting plan amendments

April 19, 1999

applying the changes under § 415(b)(2)(E) and the deadline for adopting a

plan amendment repealing a pre-August

20, 1996, GATT plan amendment, thereby

permitting the earlier plan amendment to

be disregarded in applying § 767(d)(3)(A)

of GATT, as modified by § 1449(a) of

SBJPA.

.04 The deadline, under Notice 98–52,

for amending plan provisions that are integral to a qualification requirement

changed by a provision of SBJPA that becomes effective on the first day of the first

plan year beginning after December 31,

1998, is also extended to the end of the

GUST remedial amendment period. In

addition, the requirement, under Notice

98–52, that such plan provisions, as

amended, must be effective as of the first

day of the first plan year beginning after

December 31, 1998, is eliminated. Instead, such plan provisions, as amended,

must be effective no earlier than the first

day of the first plan year beginning after

December 31, 1998. Thus, for example,

an existing § 401(k) plan may be

amended by the last day of the 2000 plan

year, retroactive to the first day of that

year (or to the first day of the 1999 plan

year), to satisfy the safe harbors in

§ 401(k)(12) and § 401(m)(11) for the

2000 plan year (or for both the 1999 and

2000 plan years). Lastly, Notice 98–52 is

modified to provide that a plan amendment that is made within the GUST remedial amendment period will not be treated

as violating § 411(d)(6) merely because

the plan amendment imposes the withdrawal restrictions required by § 401(k)(12)(E)(i), but only if those withdrawal

restrictions do not apply with respect to

contributions allocated as of a date before

the first day of the first plan year for

which the plan satisfies the safe harbor.

.05 The deadline, under Notice 99–5,

for amending plan provisions that are integral to the requirements of § 401(a)(31)

to reflect the change made by § 6005(c)(2) of RRA 98 is also extended to the end

of the GUST remedial amendment period.

The requirement, under Notice 99–5, that

such plan provisions, as amended, must

be effective as of the first day the plan operates in accordance with the change

made by § 6005(c)(2) of RRA 98 continues to apply.

.06 Finally, the extension of the remedial amendment period also applies to the

April 19, 1999

time for adopting amendments of defined

benefit plans to provide that benefits will

be determined in accordance with the applicable interest rate rules and applicable

mortality table rules of § 1.417(e)–1(d).

Thus, such a plan amendment may be

adopted at any time up to the last day of

the extended remedial amendment period,

provided the amendment is made effective for distributions with annuity starting

dates occurring in plan years beginning

after December 31, 1999. However, pursuant to the Commissioner’s authority in

§1.401(b)–1T(c)(3), if such a plan

amendment is adopted after the last day of

the last plan year beginning before January 1, 2000, the amendment must provide

that, with respect to distributions with annuity starting dates that are after the last

day of that plan year but before the date of

adoption of the amendment, the distribution will be the greater of the amount that

would be determined under the plan without regard to the amendment and the

amount determined under the plan with

regard to the amendment.

.07 The TRA 86 remedial amendment

period for governmental plans is hereby

extended to the end of the GUST remedial

amendment period for governmental

plans described in Rev. Proc. 98–14, and

the TRA 86 remedial amendment period

for nonelecting church plans is hereby extended to the last day of the first plan year

beginning on or after January 1, 2000.

Accordingly, governmental plans need

not be amended to comply with TRA 86,

UCA, or OBRA 93 (to the extent the provisions of those acts apply) until the date

described in Rev. Proc. 98–14. In accordance with Notice 98–39, nonelecting

church plans need not be amended to

comply with the regulations under §§

401(a)(4), 401(l), 410(b), or 414(s) until

the last day of the first plan year beginning on or after January 1, 2001. For all

other applicable provisions of those acts,

however, nonelecting church plans must

be amended by the last day of the first

plan year beginning on or after January 1,

2000. The additional administrative relief

provided under Notice 92–36, 1992–2

C.B. 364, continues to be available to

governmental and nonelecting church

plans through the end of their respective

remedial amendment periods with respect

to the applicable nondiscrimination requirements.

SECTION 4. DESIGNATION OF PLAN

PROVISIONS INTEGRAL TO § 415(e)

AS DISQUALIFYING PROVISIONS

A plan provision is hereby designated

as a disqualifying provision under

§ 1.401(b)–1(b) if the plan provision

causes a plan to fail to satisfy the qualification requirements of the Code because

of the repeal of the combined plan limitation of § 415(e) by § 1452(a) of SBJPA or

if the provision is integral to the limitation

of § 415(e), as in effect prior to its repeal

by § 1452(a) of SBJPA, provided the following conditions are satisfied. First, the

plan provision must be amended to reflect

the repeal of § 415(e) by the end of the

GUST remedial amendment period. Second, in the case of a plan provision that is

integral to the limitation of § 415(e), the

plan provision, as amended, may not be

effective earlier than the first day on

which the plan was operated in accordance with the amended provision.

SECTION 5. EXTENSION OF

EXTENDED RELIANCE PERIOD

The TRA 86 extended reliance period is

extended by one year. A plan with extended reliance must therefore be amended

by the end of the GUST remedial amendment period to the extent necessary to

comply with regulations or administrative

guidance of general applicability that have

been issued since the date of the plan’s favorable TRA 86 letter. These amendments

must be made effective no later than the

first day of the first plan year beginning on

or after January 1, 2000, and, except in the

case of master or prototype or other preapproved plans, no earlier than the first day

of the plan year in which the amendments

are adopted. (But see Rev. Rul. 94–76 and

Rev. Rul. 96–47.)

SECTION 6. EFFECT ON OTHER

DOCUMENTS

The following revenue procedures and

notices are modified: Rev. Proc. 89–9,

Rev. Proc. 89–13, section 13 of Rev. Proc.

93–39, Rev. Proc. 95–12, Rev. Proc.

97–41, Rev. Proc. 98–14, Notice 92–36,

Notice 96–64, Notice 98–39, Notice

98–52, and Notice 99–5.

SECTION 7. EFFECTIVE DATE

This revenue procedure is effective

April 19, 1999.

1999–16 I.R.B.

DRAFTING INFORMATION

The principal author of this revenue

procedure is James Flannery of the Em-

1999–16 I.R.B.

ployee Plans Division. For further information regarding this revenue procedure,

contact the Employee Plans Division’s

telephone assistance service between the

hours of 1:30 and 3:30 p.m. Eastern time,

Monday through Thursday, on (202) 6226074/75. (These telephone numbers are

not toll-free.)

April 19, 1999

Part IV. Items of General Interest

Cumulative Bulletin Continued

With a New Format

Announcement 99–36

Last year the Service solicited comments on a proposal to discontinue publication of the cumulative bulletin (CB).

The proposal was printed in the Federal

responses from taxpayers, tax practitioners, and government agencies, the Service

has decided to continue publishing the

CB.

Beginning with CB 1998–1, the CB

will contain the same information but will

have a new format.

1. Reprints of the weekly Internal Revenue Bulletins (IRBs) issued during the

year will now be bound together to form

the CB. Volume 1 will contain the first 26

issues of the IRB (1998–27 to 1998–52).

Previously, the CB was created by consolidating Parts I-IV of the IRBs into Parts IIV of the CB.

2. The CB will now include a new cumulative list titled “List of Rulings and

Decisions Under the Internal Revenue

Code of 1986.” This list will be organized

by code section and will identify, by citation only, the revenue rulings, revenue

procedures, notices, and announcements

that impact each code section. It will contain the page numbers in the CB. It can be

used in the same manner as the “Numerical Finding List,” which will now provide

both the page number in the IRB and the

page number in the CB.

3. The cumulative “Finding List of

Current Actions on Previously Published

Items” and the “Index” will also identify

both the IRB and CB page numbers.

There will be no change to the manner in

which the CB is cited.

4. Announcements that are published in

the IRBs will be included in the CB. Previous CBs did not include announcements.

5. A list of “Actions Relating to Decisions of the Tax Court” and a list of “Disbarments and Suspensions” will remain as

components of the CB.

6. Public laws relating to taxes will

continue to be provided in volume 3 of

the CB. If additional volumes are needed

to published public laws, the CBs will be

labeled consecutively as volume 4, 5, etc.

April 19, 1999

Announcement 99–40

Announcement 99–41

On July 1, 1998, temporary regulations

T.D. 8774, 1998–30 I.R.B. 5, were published in the Federal Register (63 F.R.

35799) relating to the kerosene excise tax.

Recently, a group of taxpayers has advised the Internal Revenue Service that

the taxpayers were unaware that they

needed to be registered by the IRS for

purposes of this tax. To address the problem, the final kerosene tax regulations

will provide the following rules: (1) The

period during which persons are treated as

registered under the transitional registration rule, which currently is scheduled to

expire on April 1, 1999, will instead expire on July 1, 1999; (2) Airlines, other

aircraft operators, and fixed base operators that store kerosene in a terminal, and

kerosene terminal operators will be

treated as registered for purposes of the

kerosene tax under the transitional registration rule. Further, the IRS will provide

an expedited kerosene tax registration

procedure.

Under the expedited procedure, persons that apply for registration with their

IRS district office by May 14, 1999, will

be given either a conditional Letter of

Registration or a denial by June 30, 1999.

To apply, an applicant files Form 637, Application for Registration (For Certain Excise Tax Activities), under activity S. An

“S” registration is in addition to any “H”

or “Y” registration an applicant may have

received. Form 637 is filed with the IRS

district director for the district where the

applicant has its principal place of business. An applicant may obtain the address of its district director by calling 1800-829-1040. Applicants who do not

have a principal place of business in the

United States file Form 637 with the IRS,

Office of Assistant Commissioner (International), 950 L’Enfant Plaza South, SW,

Attention: OP:IN:D:C:E, Washington, DC

20024.

The principal author of this announcement is Frank Boland of the Office of Assistant Chief Counsel (Passthroughs and

Special Industries) . For further information regarding this announcement contact

Frank Boland at (202) 622-3130 (not a

toll-free call).

Federal Insurance Contributions

Act (FICA) Taxation of Amounts

Under Employee Benefit Plans;

Correction

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains

corrections to Treasury Decision 8814,

1999–9 I.R.B. 4, which was published in

the Federal Register on Friday, January

29, 1999 (64 F.R. 4542) that provides

guidance as to when amounts deferred

under or paid from a nonqualified deferred compensation plan are taken into

account as wages for purposes of the employment taxes imposed by the Federal

Insurance Contributions Act (FICA).

DATES: This correction is effective January 29, 1999.

FOR FURTHER INFORMATION CONTACT: Janine Cook, Linda E. Alsalihi, or

Margaret Owens, (202) 622-6040 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections are under section

3121 of the Internal Revenue Code.

Need for Correction

As published, T.D. 8814 contains errors

which may prove to be misleading and are

in need of clarification.

Correction of Publication

Accordingly, the publication of the

final regulations (T.D. 8814), which was

the subject of FR Doc. 99–1663, is corrected as follows:

1. On page 4542, column 1, in the regulation heading, the language “RIN

1545–AT27” is corrected to read “RIN

1545–AF97”.

§31.3121(v)(2)–1 [Corrected]

On page 4550, column 3,

§31.3121(v)(2)–1(b)(5), paragraph (i) of

1999–16 I.R.B.

Example 10, line 9, the language “employee’s designated beneficiary in a single” is corrected to read “employee’s designated beneficiary in a single lump”.

On page 4551, column 1,

§31.3121(v)(2)–1(b)(5), paragraph (ii) of

Example 10, line 3 from the bottom of the

paragraph, the language “payable in the

event of the Employee E’s” is corrected to

read “payable in the event of Employee

E’s”.

On page 4551, column 1,

§31.3121(v)(2)–1(b)(5), paragraph (ii) of

Example 11, line 4 from the bottom of the

paragraph, the language “E under the plan

during the Employee E’s” is corrected to

read “E under the plan during Employee

E’s”.

5. On page 4566, column 3,

§31.3121(v)(2)–1(g)(5), paragraph (i) of

Example 8, line 14, the language “Based

Employer R’s estimate that Employee” is

corrected to read “Based on Employer R’s

estimate that Employee”.

On page 4566, column 3,

§31.3121(v)(2)–1(g)(5), paragraph (i) of

Example 8, line 5 from the bottom of the

paragraph, the language “which Employee R has a legally binding right” is

corrected to read “which Employee F has

a legally binding right”.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 31, 1999, 8:45 a.m., and published in the

issue of the Federal Register for April 1, 1999, 64

F.R. 15687)

transfers of stock or securities by U.S.

persons to foreign corporations pursuant

to the corporate organization and reorganization provisions of the Internal Revenue Code, and the reporting requirements related to such transfers.

DATES: These corrections are effective

July 20, 1998.

FOR FURTHER INFORMATION CONTACT: Philip L. Tretiak, (202) 622-3860

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Certain Transfers of Stock or

Securities by U.S. Persons to

Foreign Corporations and

Related Reporting

Requirements; Correction

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains

corrections to Treasury Decision 8770,

1998–27 I.R.B. 4, which was published in

the Federal Register on Friday, June 19,

1998 (63 F.R. 33550) relating to certain

1999–16 I.R.B.

§1.367(b)–4 [Corrected]

5. On page 33568, column 1,

§1.367(b)–4(b)(5)(i), line 4, the language

“transaction described in paragraph

(b)(1)” is corrected to read “transaction

described in paragraph (a)”.

6. On page 33568, column 2,

§1.367(b)–4(b)(5)(ii), paragraph (ii) of

the Example, line 2, the language “an exchange described in paragraph (b) of” is

corrected to read “an exchange described

in paragraph (a) of”.

Background

§1.6038B–1 [Corrected]

The final regulations that are the subject of these corrections are under sections 367 and 6038B of the Internal Revenue Code.

Need for Correction

As published, T.D. 8770 contains errors

which may prove to be misleading and are

in need of clarification.

Correction of Publication

Accordingly, the publication of the

final regulations (T.D. 8770), which was

the subject of FR Doc. 98–15454, is corrected as follows:

1. On page 33555, column 2, in the

preamble under the paragraph heading

“Effective Dates”, line 19, the language “

a United States shareholder but does” is

corrected to read “ a United States shareholder but does not”.

§1.367(a)–3 [Corrected]

Announcement 99–42

rected to read §1.367(a)–8(g)(3) (which

includes the”.

2. On page 33556, column 1,

§1.367(a)–3(a), lines 22 through 24, the

language “a U.S. person exchanges stock

of one foreign corporation for stock of another foreign corporation in a reorganization” is corrected to read “a U.S. person

exchanges stock of a foreign corporation

in a reorganization”.

3. On page 33556, column 1,

§1.367(a)–3(a), line 27, the language “domestic corporation for stock of a” is corrected to read “domestic or foreign corporation for stock of a”.

4. On page 33559, column 1,

§1.367(a)–3(d)(3), paragraph (ii) of Example 6, line 10, the language “§1.367(a)8(g)(3)(i) (which includes the” is cor-

7. On page 33569, column 1,

§ 1.6038B–1(b)(2)(i) introductory text,

line 4, the language “in section

6038(a)(1)(A) will be” is corrected to

read “in section 6038B(a)(1)(A) will be”.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 31, 1999, 8:45 a.m., and published in the

issue of the Federal Register for April 1, 1999, 64

F.R. 15687)

Announcement 99–43

Notice of Certain Transfers to

Foreign Partnerships and

Foreign Corporations;

Correction

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Correction to final regulations.

SUMMARY: This document contains

corrections to final income tax regulations T.D. 8817, 1999–8 I.R.B. 51, that

were published in the Federal Register

on Friday, February 5, 1999 (64 F.R.

5713) relating to certain transfers to foreign partnerships and corporations by

U.S. persons.

DATES: This correction is effective February 5, 1999.

FOR FURTHER INFORMATION CONTACT: Eliana Dolgoff (202)622-3860

(not a toll-free number).

April 19, 1999

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of this correction are under section

6038B of the Internal Revenue Code.

Need for Correction

As published, the final regulations contain errors that may prove to be misleading and are in need of clarification.

Correction of Publication

Accordingly, the publication of the

final regulations (T.D. 8817), that were

the subject of FR Doc. 99–2798 is corrected as follows:

§1.6038B–1 [Corrected]

1. On page 5715, column 1, §1.6038B–

1(b)(1)(i), lines 4 through 7, the language

“paragraph (b)(2) of this section, or cash,

which is subject to special rules contained

in paragraph (b)(3) of this section, any

U.S. person that makes a” is corrected to

read ”paragraph (b)(2) of this section, any

U.S. person that makes a”. In §1.6038B–

1(b)(1)(i), the last line, the language

“Property to a Foreign Corporation.” is

corrected to read “Property to a Foreign

Corporation. For special rules regarding

cash transfers made in tax years beginning after February 5, 1999, see paragraphs (b)(3) and (g) of this section.”.

2. On page 5715, column 1, §1.6038B–

1(b)(3) introductory text, line 2, the language “foreign corporation must report

the” is corrected to read “foreign corporation in a transfer described in section

6038B(a)(1)(A) must report the”.

3. On page 5715, column 2, §1.6038B–

1(c), line 6, the language “section

6038B(a)(1)(A) (including cash” is corrected to read “section 6038B(a)(1)(A)

(including cash transferred in taxable

years beginning after February 5, 1999,”.

4. On page 5715, column 2, §1.6038B–

1(g), lines 3 through 8, the language “July

20, 1998, except that the first sentence of

paragraph (b)(1)(i), paragraph (b)(3), and

the first sentence of paragraph (c) apply to

transfers occurring in taxable years beginning after February 5, 1999. See

§1.6038B–” is corrected to read “July 20,

1998, except that transfers of cash made

in taxable years beginning on or before

April 19, 1999

February 5, 1999 are not required to be

reported under section 6038B. See

§1.6038B–“.

§1.6038B–2 [Corrected]

5. On page 5717, column 2, §1.6038B–

2(j)(1)(ii), line 1, the language, “Filing a

Form 926 with the” is corrected to read

“Filing a Form 926 (modified to reflect

that the transferee is a partnership, not a

corporation) with the”.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 31, 1999, 8:45 a.m., and published in the

issue of the Federal Register for April 1, 1999, 64

F.R. 15686)

Announcement 99–44

OMB Control Numbers Assigned

Pursuant to the Paperwork

Reduction Act; Correction

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Correcting amendment.

SUMMARY: This document contains

corrections to final regulations T.D. 8011,

1985–1 C.B. 397, which were published in

the Federal Register on Thursday, March

14, 1985 (50 F.R. 10221) relating to the

displaying of OMB control numbers on

this agency’s regulations that solicit or obtain information from the public.

DATES: This correction is effective November 12, 1996.

FOR FURTHER INFORMATION CONTACT: Marshall Feiring, (202) 622-3940,

(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of these corrections displays this

agency’s control numbers and implemented requirements of regulations promulgated by the Office of Management

and Budget pursuant to the Paperwork

Reduction Act of 1980.

Need for Correction

As published, final regulations (T.D.

8011) contain errors which may prove to

be misleading and are in need of clarification.

List of Subjects in 26 CFR Part 602

Reporting and recordkeeping requirements.

Correcting Amendment to Regulations

Accordingly, 26 CFR part 602 is corrected by making the following correcting

amendments:

PART 602 — OMB CONTROL

NUMBERS UNDER THE

PAPERWORK REDUCTION ACT

Paragraph 1. The authority citation for

part 602 continues to read as follows:

Authority: 26 U.S.C. 7805.

§602.101 [Corrected]

Par. 2. In §602.101, paragraph (a), second sentence, the language “(together

with 26 CFR 601.9000)” is removed.

Par. 3. In §602.101, paragraph (b) is

removed and paragraph (c) is redesignated as paragraph (b).

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 31, 1999, 8:45 a.m., and published in the

issue of the Federal Register for April 1, 1999, 64

F.R. 15688)

Deletions From Cumulative List

of Organizations Contributions

to Which are Deductible Under

Section 170 of the Code

Announcement 99–45

The name of an organization that no

longer qualifies as an organization described in section 170(c)(2) of the Internal

Revenue Code of 1986 is listed below.

Generally, the Service will not disallow

deductions for contributions made to a

listed organization on or before the date

of announcement in the Internal Revenue

Bulletin that an organization no longer

qualifies. However, the Service is not pre-

1999–16 I.R.B.

cluded from disallowing a deduction for

any contributions made after an organization ceases to qualify under section

170(c)(2) if the organization has not

timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter,

(2) was aware that such revocation was

imminent, or (3) was in part responsible

for or was aware of the activities or omissions of the organization that brought

about this revocation.

If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that

are otherwise allowable will continue to

be deductible. Protection under section

7428(c) would begin on April 19, 1999,

and would end on the date the court first

determines that the organization is not de-

1999–16 I.R.B.

scribed in section 170(c)(2) as more particularly set forth in section 7428(c)(1).

For individual contributors, the maximum

deduction protected is $1,000, with a husband and wife treated as one contributor.

This benefit is not extended to any individual, in whole or in part, for the acts or

omissions of the organization that were

the basis for revocation.

Abraham Lincoln Opportunity

Foundations, Pine Mountain, GA

1042–S that were poorly reproduced. We

are providing more legible copies of Form

1042–S in this announcement.

As a result, we have extended the date

for receiving comments for that form to

May 19, 1999. Please send your comments to Chairman, Tax Forms Coordinating Committee, Internal Revenue Service, OP:FS:FP, Room 5577, 1111

Constitution Avenue, NW, Washington,

DC 20224. Alternatively, you may e-mail

your comments to tfpmail@publish.no.

irs.gov.

Proposed Form 1042–S,

Foreign Person’s U.S. Source

Income Subject to Withholding;

Correction

Announcement 99–46

Announcement 99–24, 1999–14 I.R.B.

12, contained copies of proposed Form

April 19, 1999

1999–16 I.R.B.

April 19, 1999

1999–16 I.R.B.

April 19, 1999

1999–16 I.R.B.

April 19, 1999

1999–16 I.R.B.

Announcement of the Consent Voluntary Suspension of Attorneys,

Certified Public Accountants, Enrolled Agents, and Enrolled Actuaries

From Practice Before the Internal Revenue Service

Under 31 Code of Federal Regulations,

Part 10, an enrolled agent, in order to

avoid the institution or conclusion of a

proceeding for his disbarment or suspension from practice before the Internal

Revenue Service, may offer his resignation from such practice. The Director of

Practice, in his discretion, may suspend

an enrolled agent in accordance with the

consent offered.

Attorneys, certified public accountants,

enrolled agents, and enrolled actuaries are

prohibited in any Internal Revenue Ser-

vice matter from directly or indirectly employing, accepting assistance from, being

employed by or sharing fees with, any enrolled agent who has resigned from practice before the Internal Revenue Service.

To enable attorneys, certified public accountants, enrolled agents, and enrolled

actuaries to identify former enrolled

agents who have resigned from practice

before the Internal Revenue Service, the

Director of Practice will announce in the

Internal Revenue Bulletin the names and

addresses of former enrolled agents who

have resigned from such practice, and

date of resignation. This announcement

will appear in the weekly Bulletin at the

earliest practicable date after such action

and will continue to appear in the weekly

Bulletins for five successive weeks or for

as many weeks as is practicable for each

enrolled agent, who has resigned, and will

be consolidated and published in the Cumulative Bulletin.

The following individual has offered

his resignation as an enrolled agent:

Name

Address

Date of Resignation

Ellis, Ronald C.

Billings, MT

October 6, 1998

1999–16 I.R.B.

April 19, 1999

Announcement of the Expedited Suspension of Attorneys, Certified Public

Accountants, Enrolled Agents, and Enrolled Actuaries From Practice

Before the Internal Revenue Service

Under Title 31 of the Code of Federal

Regulations, section 10.76, the Director

of Practice is authorized to immediately

suspend from practice before the Internal

Revenue Service any practitioner who,

within five years, from the date the expedited proceeding is instituted, (1) has had

a license to practice as an attorney, certified public accountant, or actuary suspended or revoked for cause; or (2) has

been convicted of any crime under title 26

of the United States Code or, of a felony

under title 18 of the United States Code

involving dishonesty or breach of trust.

Attorneys, certified public accountants,

enrolled agents, and enrolled actuaries are

prohibited in any Internal Revenue Service

matter from directly or indirectly employing, accepting assistance from, being employed by, or sharing fees with, any practitioner disbarred or suspended from practice

before the Internal Revenue Service.

To enable attorneys, certified public accountants, enrolled agents, and enrolled actuaries to identify practitioners under expedited suspension from practice before the

Internal Revenue Service, the Director of

Practice will announce in the Internal Revenue Bulletin the names and addresses of

practitioners who have been suspended

from such practice, their designation as attorney, certified public accountant, en-

rolled agent, or enrolled actuary, and date

or period of suspension. This announcement will appear in the weekly Bulletin at

the earliest practicable date after such action and will continue to appear in the

weekly Bulletins for five successive weeks

or for as many weeks as is practicable for

each attorney, certified public accountant,

enrolled agent, or enrolled actuary so suspended and will be consolidated and published in the Cumulative Bulletin.

The following individual have been

placed under suspension from practice before the Internal Revenue Service by virtue

of the expedited proceeding provisions of

the applicable regulations:

Name

Address

Designation

Date of Suspension

Pierce, Steven J.

Aventura, FL

Attorney