Bulletin No. 1999–15

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Bulletin No. 1999–15

April 12, 1999

Internal Revenue

bulletin

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

the Code. Rev. Proc. 98–28 is obsolete except as provided

in section 5.02 of this revenue procedure.

Rev. Rul. 99–19, page 3.

LIFO; price indexes; department stores. The February

1999 Bureau of Labor Statistics price indexes are accepted

for use by department stores employing the retail inventory

and last-in, first-out inventory methods for valuing inventories

for tax years ended on, or with reference to, February 28,

1999.

EXEMPT ORGANIZATIONS

Announcement 99–23, page 7.

A list is given of organizations now classified as private foundations.

ADMINISTRATIVE

Rev. Proc. 99–22, page 5.

Qualified mortgage bonds; mortgage credit certificates; national median gross income. Guidance is provided concerning the use of the national and area median

gross income figures by issuers of qualified mortgage

bonds and mortgage credit certificates in determining the

housing cost/income ratio described in section 143(f)(5) of

Announcement 99–34, page 8.

The Service announces an additional delay in format

changes to Form W-2 and W-3 until tax year 2001.

Announcement 99–37, page 9.

Effective immediately, all applications for extension of time

to file Forms 5500, 5500–C/R, and 5500–EZ will be automatically approved if the request (Form 5558) is filed on or

before the normal due date of the return or report.

Announcement 99–38, page 9.

This document contains a notice of public hearing on proposed regulations REG–105170–97, 1998–50 I.R.B. 10, relating to the computation of the credit under section 41(c)

and the definition of qualified research under section 41(d).

A public hearing is scheduled for April 29, 1999.

Announcement 99–39, page 10.

This document contains corrections to T.D. 8812, 1999–8

I.R.B. 19, which was published in the Federal Register on

February 3, 1999 (64 F.R. 5160), relating to continuation

coverage requirements applicable to group health plans.

Finding Lists begin on page 16.

Announcement of Disbarments and Suspensions begins on page 11.

Department of the Treasury

Internal Revenue Service

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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.

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

Section 25.—Interest on

Certain Home Mortgages

26 CFR 1.25–4T: Qualified mortgage credit

certificate program (temporary).

Section 143.—Mortgage

Revenue Bonds: Qualified

Mortgage Bond and Qualified

Veterans’ Mortgage Bond

Rev. Rul. 99–19

26 CFR 6a.103A–2: Qualified mortgage bond.

Guidance is provided for the use of the national

and area median gross income figures by issuers of

qualified mortgage bonds and mortgage credit certificates in determining the housing cost/income

ratio described in section 143(f)(5) of the Code. See

Rev. Proc. 99–22, page 5.

Guidance is provided for the use of the national

and area median gross income figures by issuers of

qualified mortgage bonds and mortgage credit certificates in determining the housing cost/income

ratio described in section 143(f)(5) of the Code. See

Rev. Proc. 99–22, page 5.

Section 103.—State and

Local Bonds

Section 472.—Last-in, First-out

Inventories

26 CFR 1.103–1: Interest upon obligations of a

State, Territory, etc.

Guidance is provided for the use of the national

and area median gross income figures by issuers of

qualified mortgage bonds and mortgage credit certificates in determining the housing cost/income

ratio described in section 143(f)(5) of the Code. See

Rev. Proc. 99–22, page 5.

26 CFR 1.472–1: Last-in, first-out inventories.

LIFO; price indexes; department

stores. The February 1999 Bureau of

Labor Statistics price indexes are accepted for use by department stores employing the retail inventory and last-in,

first-out inventory methods for valuing

inventories for tax years ended on, or with

reference to, February 28, 1999.

The following Department Store Inventory Price Indexes for February 1999

were issued by the Bureau of Labor Statistics. The indexes are accepted by the

Internal Revenue Service, under § 1.472–

1(k) of the Income Tax Regulations and

Rev. Proc. 86–46, 1986–2 C.B. 739, for

appropriate application to inventories of

department stores employing the retail

inventory and last-in, first-out inventory

methods for tax years ended on, or with

reference to, February 28, 1999.

The Department Store Inventory Price

Indexes are prepared on a national basis

and include (a) 23 major groups of departments, (b) three special combinations

of the major groups - soft goods, durable

goods, and miscellaneous goods, and (c)

a store total, which covers all departments, including some not listed separately, except for the following: candy,

food, liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE

INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Groups

1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Women’s and Girls’ Accessories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1999–15 I.R.B.

Feb.

1998

Feb.

1999

Percent Change

from Feb.1998

to Feb. 19991

535.8

639.3

656.9

886.5

612.6

565.2

308.1

548.2

408.9

624.0

590.4

499.3

1001.0

802.0

926.5

668.3

583.7

810.3

242.0

73.6

496.2

643.1

632.3

889.8

619.6

565.8

320.0

549.6

380.3

617.4

592.2

478.3

983.3

741.9

951.6

679.2

602.7

808.2

233.8

69.0

–7.4

0.6

–3.7

0.4

1.1

0.1

3.9

0.3

–7.0

–1.1

0.3

–4.2

–1.8

–7.5

2.7

1.6

3.3

–0.3

–3.4

–6.3

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BUREAU OF LABOR STATISTICS, DEPARTMENT STORE

INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (Continued)

(January 1941 = 100, unless otherwise noted)

Feb.

1998

Feb.

1999

Percent Change

from Feb.1998

to Feb. 19991

21. Recreation and Education2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22. Home Improvements2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23. Auto Accessories2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

107.7

134.0

107.7

100.1

129.8

107.7

–7.1

–3.1

0.0

Groups 1 – 15: Soft Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

601.1

590.3

–1.8

Groups 16 – 20: Durable Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

462.4

455.6

–1.5

Groups 21 – 23: Misc. Goods2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

111.0

105.5

–5.0

Store Total3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

552.3

540.7

–2.1

Groups

1 Absence of a minus sign before percentage change in this column signifies price increase.

2 Indexes on a January 1986=100 base.

3 The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor, tobacco, and contract departments.

DRAFTING INFORMATION

The principal author of this revenue

ruling is Richard C. Farley, Jr. of the Of-

April 12, 1999

fice of Assistant Chief Counsel (Income

Tax and Accounting). For further information regarding this revenue ruling, con-

tact Mr. Farley on (202) 622-4970 (not a

toll-free call).

1999–15 I.R.B.

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Part III. Administrative, Procedural, and Miscellaneous

26 CFR 601.201: Rulings and determination

letters.

(Also Part I, sections 25, 103, 143; 1.25–4T,

1.103–1, 6a.103A–2.)

Rev. Proc. 99–22

SECTION 1. PURPOSE

This revenue procedure provides guidance concerning the United States and

area median gross income figures that are

to be used by issuers of qualified mortgage bonds, as defined in § 143(a) of the

Internal Revenue Code, and issuers of

mortgage credit certificates, as defined in

§ 25(c), in computing the housing cost/income ratio described in § 143(f)(5).

SECTION 2. BACKGROUND

.01 Section 103(a) provides that, except

as provided in § 103(b), gross income

does not include interest on any state or

local bond. Section 103(b)(1) provides

that § 103(a) shall not apply to any private

activity bond that is not a “qualified

bond” within the meaning of § 141. Section 141(e) provides that the term “qualified bond” includes any private activity

bond that (1) is a qualified mortgage

bond, (2) meets the volume cap requirements under § 146, and (3) meets the applicable requirements under § 147.

.02 Section 143(a)(1) provides that the

term “qualified mortgage bond” means a

bond that is issued as part of a “qualified

mortgage issue”. Section 143(a)(2)(A)

provides that the term “qualified mortgage issue” means an issue of one or more

bonds by a state or political subdivision

thereof, but only if (i) all proceeds of the

issue (exclusive of issuance costs and a

reasonably required reserve) are to be

used to finance owner-occupied residences; (ii) the issue meets the requirements of subsections (c),(d),(e),(f),(g),

(h),(i), and (m)(7) of § 143; (iii) the issue

does not meet the private business tests of

paragraphs (1) and (2) of § 141(b); and

(iv) with respect to amounts received

more than 10 years after the date of issuance, repayments of $250,000 or more

of principal on financing provided by the

issue are used not later than the close of

the first semi-annual period beginning

1999–15 I.R.B.

after the date the prepayment (or complete repayment) is received to redeem

bonds that are part of the issue.

.03 Section 143(f) imposes eligibility

requirements concerning the maximum

income of mortgagors for whom financing may be provided by qualified mortgage bonds. Section 25(c)(2)(A)(iii)(IV)

provides that recipients of mortgage

credit certificates must meet the income

requirements of § 143(f). Generally,

under §§ 143(f)(1) and 25(c)(2)(A)(iii)(IV), these income requirements are

met only if all owner-financing under a

qualified mortgage bond and all certified

indebtedness amounts under a mortgage

credit certificate program are provided to

mortgagors whose family income is 115

percent or less of the applicable median

family income. Under § 143(f)(6), the income limitation is reduced to 100 percent

of the applicable median family income if

there are fewer than three individuals in

the family of the mortgagor.

.04 Section 143(f)(4) provides that the

term “applicable median family income”

means the greater of (A) the area median

gross income for the area in which the

residence is located or (B) the statewide

median gross income for the state in

which the residence is located.

.05 Section 143(f)(5) provides for an

upward adjustment of the income limitations in certain high housing cost areas.

Under § 143(f)(5)(C), a high housing cost

area is a statistical area for which the

housing cost/income ratio is greater than

1.2. The housing cost/income ratio is determined under § 143(f)(5)(D) by dividing (a) the applicable housing price ratio

by (b) the ratio that the area median gross

income bears to the median gross income

for the United States. The applicable

housing price ratio is the new housing

price ratio (new housing average purchase price for the area divided by the

new housing average purchase price for

the United States) or the existing housing

price ratio (existing housing average area

purchase price divided by the existing

housing average purchase price for the

United States), whichever results in the

housing cost/income ratio being closer to

1. This income adjustment applies only

to bonds issued and nonissued bond

amounts elected after December 31,

1988.

.06 The Department of Housing and

Urban Development (HUD) has computed the median gross income for the

United States, the states, and statistical

areas within the states. The income information was released to the HUD regional

offices on January 27, 1999, and may be

obtained by calling the HUD reference

service at 1-800-245-2691. The income

information is also available at HUD’s

World Wide Web site, which provides a

menu from which you may select the year

and type of data of interest ((http://

huduser.org/data/factors.html). The Internal Revenue Service annually publishes

only the median gross income for the

United States.

.07 The most recent nationwide average purchase prices and average area purchase price safe harbor limitations were

published on September 6, 1994, in Rev.

Proc. 94–55, 1994–2 C.B. 716.

SECTION 3. APPLICATION

.01 When computing the housing

cost/income ratio under § 143(f)(5), issuers of qualified mortgage bonds and

mortgage credit certificates must use

$47,800 as the median gross income for

the United States. See section 2.06 of this

revenue procedure.

.02 When computing the housing

cost/income ratio under § 143(f)(5), issuers of qualified mortgage bonds and

mortgage credit certificates must use the

area median gross income figures released by HUD on January 27, 1999. See

section 2.06 of this revenue procedure.

SECTION 4. EFFECT ON OTHER

REVENUE PROCEDURES

.01 Rev. Proc. 98–28, 1998–15 I.R.B.

14, is obsolete except as provided in section 5.02 of this revenue procedure.

.02 This revenue procedure does not affect the effective date provisions of Rev.

Rul. 86–124, 1986–2 C.B. 27. Those effective date provisions will remain operative at least until the Service publishes a

new revenue ruling that conforms the approach to effective dates set forth in Rev.

Rul. 86–124 to the general approach

taken in this revenue procedure.

April 12, 1999

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SECTION 5. EFFECTIVE DATES

.01 Issuers must use the United States

and area median gross income figures

specified in section 3 of this revenue procedure for commitments to provide financing that are made, or (if the purchase

precedes the financing commitment) for

residences that are purchased, in the period that begins on January 27, 1999, and

ends on the date when these United States

and area median gross income figures are

April 12, 1999

rendered obsolete by a new revenue procedure.

.02 Notwithstanding section 5.01 of

this revenue procedure, issuers may continue to rely on the United States and area

median gross income figures specified in

Rev. Proc. 98-28 with respect to bonds

originally sold and nonissued bond

amounts elected not later than May 12,

1999, if the commitments or purchases

described in section 5.01 are made not

later than July 12, 1999.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Patricia M. Monahan of the

Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue

procedure contact Ms. Monahan at (202)

622-4431 (not a toll-free call).

1999–15 I.R.B.

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Page 7

Part IV. Items of General Interest

Foundations Status of Certain

Organizations

Announcement 99–23

The following organizations have

failed to establish or have been unable to

maintain their status as public charities or

as operating foundations. Accordingly,

grantors and contributors may not, after

this date, rely on previous rulings or designations in the Cumulative List of Organizations (Publication 78), or on the presumption arising from the filing of notices

under section 508(b) of the Code. This

listing does not indicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following

organizations (which have been treated as

organizations that are not private foundations described in section 509(a) of the

Code) are now classified as private foundations:

Adult and Children Transitional Shelter,

Denver, CO

Al Simon Center for Telecommunication

Law, Inc., San Diego, CA

Amelia Lighthouse & Museum Inc.,

Fernandina Beach, FL

American Atheist Veterans Inc.,

Escondido, CA

American Friends of Yeshivat Eretz

Hatzvi TR, Brooklyn, NY

Barberton Moose Charity and

Scholarship Fund Inc., Piqua, OH

Benton Park Arts Council, St. Louis, MO

Calvin Browns Alcohol & Drug-Free

Living Centers, Pasadena, CA

Children’s Education Fund, Inc.,

Lincolndale, NY

Cuban Humanitarian Assistance Society,

Inc., Dade County, FL

Dreams for Kids Inc., Chicago, IL

Faith House of America, Buffalo, NY

Gleasons Athletic Club, Inc., Brooklyn,

House of Coverance, Markham, IL

International Foundation, Broken Arrow,

Institute Paso Del Norte, El Paso, TX

Jeanette Lyons Surina Scholarship Fund,

Inc., Greenwood, IN

Let It Shine Center for the Learning

Impaired, West Linn, OR

1999–15 I.R.B.

Lewis IDA Community Development

Corporation, Lowville, NY

Magical Helping Hands, Inc., Brockton,

Metropolitan Entertainment, Sterling

Heights, MI

Music and Living, Inc., New York, NY

Nagis Dutt Memorial Care Fdn., Ann

Arbor, MI

Oasis Mission Incorporated, Radcliff, KY

Ohio Elks Charitable Trust, Marysville,

Praise Mountain Ministry, Inc., Conyers,

Preston Road Literacy Society, Dallas,

Prince Hall African Lodge Urban

Renewal Corporation, Newark, NJ

Reef USA Inc., Florham, NJ

Robinson Tennis Academy, Howell, MI

Rocky Mountain Community

Development Inc., Stillwell, OK

Siskiyou Institute, Etna, CA

Southern Tier West Development Fnd.,

Salamanca, NY

The Spruell Community Learning Center,

Compton, CA

Studio E Repertory Inc., New York, NY

Texas Society of Certified Public

Accountants Peer Assistance

Foundation, Inc., Dallas, TX

Voices of Hope, Greenville, SC

Waianae Coast Coalition for Human

Services, Waianae, HI

William C Pryor Portrait Trust Fund,

Washington, DC

Williams Foundation, Houston, TX

Williamsburg Court HDFC, Brooklyn,

Williamsburg Fire Department Auxiliary

Inc., Williamsburg, IN

Williamsburg Heights Community Block

Club Association Inc., Milwaukee, WI

Willowtree Counseling Center Inc.,

Phoenix, AZ

Wilson House Inc., Bartow, FL

Wimbly Club Inc., Jacksonville Beach,

Win, Baltimore, MD

Win-Good Sand Island Association,

Winona, MN

Window Rock Unified School District 8

Foundation Inc., Fort Defiance, AZ

Wings for Christ Inc., Beach Grove, IN

Wings of Freedom, Edmonds, WA

Wings Through TLC Inc., Crockett, TX

Winnebago Veterans Association Inc.,

Winnebago, NE

Winnies Nursery School Inc., Cleveland,

Wintergreen House Inc., Lutherville, MD

Wiregrass Community Outreach, Dothan,

Wisconsin Masonic Soccer Foundation

Inc., Dousman, WI

Wishes are Horses, Loveland, CO

Wishing Well Foundation Inc.,

Louisville, KY

With in Reach Kids Inc., Moorestown,

Wolf River Pipes and Drums Inc.,

Byhalia, MS

Wolverine State Community

Development Corporation, Flint, MI

Womans Club of Warren Educational

Scholarship & Historical Preservation

Group, Warren, PA

Women Changing the World, Lowell, IN

Women Executives in Business,

Mankato, MN

Womenfirst Inc., Paterson, NJ

Womens Implant Foundation, Dallas,

Womens Media Project, Austin, TX

Womens Opportunity Network, So

Portland, ME

Womens Outreach Inc., Goldsboro, NC

Womens Self-Defense League Inc.,

Rutherfordton, NC

Womens Task Force Inc., Greenville, SC

Woodbin 2 Project, Cary, NC

Woodburn Inc., Cincinnati, OH

Woodcrest Foundation Inc., Syosset, NY

Woodruff Mountain Foundation Inc.,

Great Barrington, MA

Woodson County Follies Community

Theatre Corporation Inc., Yates Center,

Word of Grace International Ministries

Inc., Delray Beach, FL

Word of Truth Community Housing

Association, Detroit, MI

Wordcraft Circle of Native Writers,

Fairfax, VA

Working Families Inc., Raleigh, NC

Workplace Institute, Tacoma, WA

World Ambassadors Ltd., Coralville, IA

World Childrens Foundation Inc., New

Orleans, LA

World Class, Maryville, TN

World Class Foundation, Normal, IL

World Class Partnership, Columbia, SC

April 12, 1999

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Page 8

World Congregational Fellowship Church

of Somers, Somers, CT

World Evangelical Mission Team of New

England Inc., Mattapan, MA

World Interdependence Fund of New

Mexico, Santa Fe, NM

World Mission Mobilization Center Inc.,

Yoakum, TX

World of Learning Inc., Austin, TX

World Peace Foundation Inc., Tampa, FL

World Refuge Charity Inc., St.

Petersburg, FL

World Salmonid Research Institute Inc.,

Nederland, CO

World Sports Mission of America,

Huntington Beach, CA

World Telugu Federation, West

Bloomfield, MI

World View Foundation Inc., Boston,

World Vision Mission Town, Cerritos,

Worldaid Foundation Inc., Orlando, FL

Wounded Eagles, Richardson, TX

Wray Cultural Enrichment Council,

Wray, CO

Writers Inc., Lawrence, KS

Writers Room of Boston Inc., Boston,

Writings on the Wall Inc., San Anselmo,

WXRT-WSCR Foundation, Chicago, IL

Wyoming Farmers Union Community

Services Incorporated, Pine Bluffs,

Wyoming Observer Inc., Laramie, WY

Wyoming State AIB Committee, Casper,

X-Treme Football Club Inc., Powell, OH

Xilin Childrens Foundation for Chinese

Education, Roselle, IL

Y & E Foundation, Yakima, WA

Y E S Kids Inc., Sarasota, FL

Yachad-Immanuel Ministry Inc.,

Bradenton, FL

Yakima Gateway Tower Foundation,

Yakima, WA

Yellowstone Project to Promote

Tolerance, Billings, MT

Yerakas Society of Greater New England

Inc., Peabody, MA

Yes Lord Ministries Inc., Indianapolis, IN

Yeshiva Hayisodos Inc., New York, NY

Yonkers Beautification Conservancy Inc.,

Yonkers, NY

Yonkers Job Development Corp.,

Yonkers, NY

York Skating Rink Inc., York, ME

Young Ambassador Center, Chicago

Heights, IL

Young Artists Inc., N. Myrtle Beach, SC

Young Blacks Making a Difference

Foundation, Stafford, TX

Young Leaders Academy of Baton

Rouge, Baton Rouge, LA

Young Leaders Council Inc., Nashville,

Young Peoples Marketing Society Inc.,

Denver, CO

Younger Family Home & Study Center

Inc., Lees Summit, MO

Youth Achievers U S A Inc., Landover,

Youth Alternative for Christ Inc.,

Springfield, NJ

Youth Awareness Program Inc., Tulsa, OK

Youth Challenge International Inc.,

Winston Salem, NC

Youth Courts of the Capital District Inc.,

Latham, NY

Youth Encouragement Systems, Linden,

Youth Entrepreneur Program Inc.,

Columbus, OH

Youth Forever, Long Lake, MN

Youth Job Training Center of Slaton

Lubbock, Lubbock, TX

Youth Leadership Council, Houston, TX

Youth Medical Home Inc., New Orleans,

Youth Services America Corp., Elliccott

City, MD

Youth Today Leaders Tomorrow Inc.,

Golden Valley, MN

Youth Unlimited Inc., Fort Collins, CO

Youth Vision Inc., Miami Beach, FL

Youth with a Mission-Philadelphia Inc.,

Essington, PA

Youth with a Mission Salt Lake City,

Ogden, UT

Youthserveusa, Washington, DC

Zainabia Islamic Society, Fontana, CA

Zato-Durami Water Project Inc.,

Amherst, MA

Zion Community Empowerment Center

Inc., College Park, GA

Zion Ministries Inc., Terre Haute, IN

Zook Community Club Inc., Larned, KS

If an organization listed above submits

information that warrants the renewal of

its classification as a public charity or as a

private operating foundation, the Internal

Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors

and contributors may thereafter rely upon

such ruling or determination letter as provided in section 1.509(a)–7 of the Income

Tax Regulations. It is not the practice of

the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

Format Changes to Forms W-2 and W-3 Postponed Until Tax Year 2001

Announcement 99–34

Background

In Announcement 98–55, 1998–26 I.R.B. 41, the IRS asked for comments on proposed format changes to

Form W-2, Wage and Tax Statement, and Form W-3, Transmittal of Wage and Tax Statements. These

changes were proposed for the 1999 forms to be filed in 2000.

In Announcement 98–84, 1998–38 I.R.B. 30, the IRS postponed making major format changes to Forms

W-2 and W-3 until the 2000 forms to be filed in 2001.

Changes Postponed

Until Tax Year 2001

April 12, 1999

Based on concerns expressed by industry representatives and others, the IRS is again postponing major

format changes to Forms W-2 and W-3. The IRS intends to make format changes similar to those first proposed in Announcement 98–55 to the 2001 forms to be filed in 2002.

1999–15 I.R.B.

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Page 9

The IRS will announce and request comments on proposed changes to the 2001 Forms W-2 and W-3 by

early 2000.

2000 Forms W-2

and W-3

The 2000 Forms W-2 and W-3 will remain the same size and retain the same format as the 1999 forms. The

forms may, however, be revised to reflect changes in the law or to allow for the reporting of additional items

in box 13.

Automatic Extension of Time To

File Certain Employee Plan

Returns (Forms 5500, 5500C/R, and 5500-EZ)

Announcement 99–37

Effective immediately, all applications

for extension of time to file Forms 5500,

5500-C/R, and 5500-EZ will be automatically approved if the request (Form 5558)

is filed on or before the normal due date

of the return or report. The Form 5558,

Application for Extension of Time To File

Certain Employee Plan Returns, must be

properly completed and signed in order

for the filer to receive an automatic approval of up to 2-1/2 months.

Because the extension is automatically

approved, the IRS will no longer return

approved copies of Form 5558 to the filer

to be filed with the return. Instead, filers

will be required to attach a photocopy of

the completed and signed Form 5558 to

the return or report.

This change in procedure does not

Request by —

Number or Address

Telephone

1-800-TAX FORM

(1-800-829-3676)

Personal computer:

World Wide Web

File Transfer Protocol

Telnet

www.irs.ustreas.gov

ftp.irs.ustreas.gov

iris.irs.ustreas.gov

Direct Dial (by modem)

703-321-8020

Credit for Increasing Research

Activities; Hearing

The IRS must receive outlines of topics to

be discussed at the hearing by April 15,

1999.

Announcement 99–38

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Notice of public hearing on

proposed rulemaking.

SUMMARY: This document contains a

notice of a public hearing on proposed

regulations relating to the computation of

the credit under section 41(c) and the definition of qualified research under section

41(d).

DATES: The public hearing is being held

on Thursday, April 29, 1999, at 10 a.m.

1999–15 I.R.B.

apply to filers of Form 5330, Return of

Excise Taxes Related to Employee Benefit Plans. Applications for extension of

time to file Form 5330 will continue to be

returned to the applicant as approved or

not approved.

These new procedures are reflected in

the instructions for the March 1999 revision of Form 5558. The form is now

available at the IRS’s Internet Web Site.

You can also get copies of Form 5558

from the IRS Distribution Centers when it

becomes available in early May 1999.

ADDRESSES: The public hearing is

being held in room 2615, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Due to

building security procedures, visitors

must enter at the 10th Street entrance, located between Constitution and Pennsylvania Avenues, NW. In addition, all visitors must present photo identification to

enter the building.

Mail outlines to: CC:DOM:CORP:R

(REG–105170–97), room 5226, Internal

Revenue Service, POB 7604, Ben

Franklin Station, Washington, DC 20044.

Hand deliver outlines Monday through

Friday between the hours of 8 a.m. and 5

p.m. to: CC:DOM:CORP:R (REG–

105170–97), Courier’s Desk, Internal

Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Submit outlines electronically via the Internet by selecting the “Tax Regs” option on the IRS

Home Page, or by submitting them directly to the IRS Internet site at:http://

www.irs.ustreas.gov/ prod/tax_regs/comments.html.

FOR FURTHER INFORMATION CONTACT: Concerning submissions of comments, the hearing, and/or to be placed on

the building access list to attend the hearing Guy Traynor, (202) 622-7180 (not a

toll free number).

April 12, 1999

IRB 1999-15

4/7/99 12:57 PM

Page 10

SUPPLEMENTARY INFORMATION:

The subject of the public hearing is

proposed regulations (REG-105170-97)

that were published in the Federal Register on December 2, 1998 (63 F.R. 66503

[1998–50 IRB 10 (see §601.601(d)(2)]).

The rules of 26 CFR 601.601(a)(3)

apply to the hearing.

Persons who have submitted written

comments and wish to present oral comments at the hearing, must submit an outline of the topics to be discussed and the

amount of time to be devoted to each topic

(signed original and eight (8) copies) by

April 15, 1999.

A period of 10 minutes is allotted to

each person for presenting oral comments.

After the deadline for receiving outlines

has passed, the IRS will prepare an agenda

containing the schedule of speakers.

Copies of the agenda will be made available, free of charge, at the hearing.

Because of access restrictions, the IRS

will not admit visitors beyond the immediate entrance area more than 15 minutes before the hearing starts. For information

about having your name placed on the

building access list to attend the hearing,

see the “FOR FURTHER INFORMATION

CONTACT” section of this document.

Cynthia E. Grigsby,

Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 24, 1999, 8:45 a.m., and published in the

issue of the Federal Register for March 25, 1999, 64

F.R. 14412)

April 12, 1999

Continuation Coverage

Requirements Applicable

to Group Health Plans;

Correction

Announcement 99–39

AGENCY: Internal Revenue Service

(IRS), Treasury

ACTION: Correction to final regulations.

SUMMARY: This document contains

corrections to Treasury Decision 8812,

1999–8 I.R.B. 19, which was published in

the Federal Register on Wednesday,

February 3, 1999 (64 F.R. 5160), relating

to continuation coverage requirements applicable to group health plans.

DATES: This correction is effective February 3, 1999.

FOR FURTHER INFORMATION CONTACT: Yurlinda Mathis at 202-622-4695

(not a toll free call).

SUPPLEMENTAL INFORMATION:

Background

The final regulations that are subject to

these corrections are under section 4980B

of the Internal Revenue Code.

Need for Correction

As published, T.D. 8812 contains 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. 8812), which were

the subject of FR Doc. 99–1520, is corrected as follows:

1. On page 5166, column 2, in the preamble under the heading, “COBRA Continuation Coverage”, first full paragraph,

line 4 from the bottom of paragraph, the

language “offer for core coverage separately.” is corrected to read “offer core

coverage separately.”

2. On page 5170, column 1, in the preamble under the heading, “Paying for

COBRA Continuation Coverage”, last

paragraph in the column, line 14, the language “beginning. Therefore, the final” is

corrected to read “beginning of the period. Therefore, the final”.

§54.4980B–1 [Corrected]

On page 5174, column 1,

§54.4980B–1, paragraph (b), line 7 from

the bottom of the paragraph, the language

“rules in §§54.4980B–1 though” is corrected to read “rules in §§54.4980B–1

through”.

Michael Slaughter,

Acting Chief, Regulations Unit,

Assistant Chief Counsel (Corporate).

(Filed by the Office of the Federal Register on

March 24, 1999, 8:45 a.m., and published in the

issue of the Federal Register for March 25, 1999, 64

F.R. 14382)

1999–15 I.R.B.

IRB 1999-15

4/7/99 12:57 PM

Page 11

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

1999–15 I.R.B.

April 12, 1999

IRB 1999-15

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Page 12

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