Bulletin No. 1999–17

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Internal Revenue

bulletin

Bulletin No. 1999–17

April 26, 1999

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.

EMPLOYEE PLANS

Notice 99–21, page 19.

Weighted average interest rate update. The weighted

average interest rate for April 1999 and the resulting permissible range of interest rates used to calculate current liability for purposes of the full funding limitation of section

412(c)(7) of the Code are set forth.

EXEMPT ORGANIZATIONS

T.D. 8818, page 3.

Public disclosure of material relating to tax-exempt

organizations. Final regulations under section 6104(d) of

the Code relate to public disclosure requirements applicable

to tax-exempt organizations.

Announcement 99–48, page 20.

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

ADMINISTRATIVE

T.D. 8818, page 3.

Public disclosure of material relating to tax-exempt

organizations. Final regulations under section 6104(d) of

Finding Lists begin on page 24.

Department of the Treasury

Internal Revenue Service

the Code relate to public disclosure requirements applicable

to tax-exempt organizations.

Rev. Proc. 99–21, page 18.

Refunds and credits; period of limitations; financial

disability. Taxpayers are informed about the information

that is required under section 6511(h)(2)(A) of the Code in

order to request suspension of the period of limitations

under section 6511 for claiming a credit or refund of tax due

to an individual taxpayer’s financial disability.

Notice 99–20, page 16.

Electronic funds transfer; failure to deposit penalty.

Taxpayers are informed that beginning July 1, 1999, certain

taxpayers that deposited more than $200,000 in aggregate

federal depository taxes during calendar year 1998 will be

subject to the 10-percent failure to deposit penalty under

section 6656 of the Code if those taxpayers fail to make deposits by electronic funds transfer. The Service will not, however, impose the section 6656 penalty on taxpayers that did

not deposit more than $200,000 in aggregate federal depository taxes during calendar year 1998 solely for the failure to deposit by electronic funds transfer.

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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 6104.—Publicity of

Information Required From

Certain Exempt Organizations

and Certain Trusts

26 CFR 301.6104(d)–3: Public inspection and

distribution of applications for tax exemption and

annual information returns of tax-exempt

organizations (other than private foundations).

T.D. 8818

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301 and 602

Public Disclosure of Material

Relating to Tax-Exempt

Organizations

AGENCY: Internal Revenue Service

(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains

final regulations relating to the public disclosure requirements of section 6104(d) of

the Internal Revenue Code (Code), as

amended by the Tax and Trade Relief Extension Act of 1998. These final regulations apply only to tax-exempt organizations (organizations described in sections

501(c) or (d) and exempt under section

501(a)) other than private foundations.

These final regulations provide guidance

for tax-exempt organizations (other than

private foundations) required to make their

applications for tax exemption and annual

information returns available for public inspection. In particular, these regulations

provide guidance for tax-exempt organizations required to comply with requests

made in person or in writing from individuals who seek a copy of those documents.

These regulations describe how a tax-exempt organization can make those documents widely available and, therefore, not

be required to provide copies in response

to individual requests. These regulations

also address the standards that apply in determining whether a tax-exempt organization is the subject of a harassment campaign and provide guidance on the

applicable procedures for obtaining relief

from the requirement that copies of documents be provided in response to requests.

1999–17 I.R.B.

DATES: These regulations are effective

June 8, 1999.

FOR FURTHER INFORMATION CONTACT: Michael B. Blumenfeld, (202)

622-6070 (not toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collections of information contained in these final regulations have been

reviewed and approved by the Office of

Management and Budget in accordance

with the Paperwork Reduction Act (44

U.S.C. 3507) under control number 15451560. Responses to these collections of

information are mandatory.

An agency may not conduct or sponsor,

and a person is not required to respond to,

a collection of information unless the collection of information displays a valid

control number.

The estimated annual burden per respondent/recordkeeper varies from 0

hours to 55 hours, depending on individual circumstances with an estimated average of 30 minutes.

Comments on the accuracy of this burden estimate and suggestions for reducing

the burden should be sent to the Internal

Revenue Service, Attn: IRS Reports

Clearance Officer, OP:FS:FP, Washington, DC 20224, and to the Office of Management and Budget, Attn: Desk Officer

for the Department of the Treasury, Office

of Information and Regulatory Affairs,

Washington, DC 20503.

Books or records relating to this collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and

tax return information are confidential, as

required by 26 U.S.C. 6103.

Background

This document contains amendments to

the Procedure and Administration Regulations (26 CFR part 301) relating to the

section 6104(d) public disclosure requirements applicable to tax-exempt organizations (organizations described in sections

501(c) or (d) and exempt from taxation

under section 501(a)). Section 6104(d),

3

as amended by section 14(b) of the Tax

and Trade Relief Extension Act of 1998

(Division J of H.R. 4328, the Omnibus

Consolidated and Emergency Supplemental Appropriations Act, 1999) (Public Law

105–277, 112 Stat. 2681) (Tax and Trade

Relief Extension Act of 1998), will apply

to requests made to all tax-exempt organizations (other than private foundations)

after June 8, 1999. Until such date, all

tax-exempt organizations continue to be

subject to the requirements of section

6104(e) as currently in effect, without regard to the Tax and Trade Relief Extension Act of 1998.

Although the Tax and Trade Relief Extension Act of 1998 extended fully to private foundations the public disclosure requirements that apply to other tax-exempt

organizations, those requirements do not

go into effect with respect to private foundations until the 60th day after the Secretary of the Treasury issues final regulations under section 6104(d) that apply to

private foundations. In the meantime, private foundations continue to be subject to

the public disclosure requirements under

sections 6104(d) and (e) of the Internal

Revenue Code, as in effect prior to the

Tax and Trade Relief Extension Act of

1998.

Description of Current Law

Section 6104(e)

Section 10702 of the Omnibus Budget

Reconciliation Act of 1987 (OBRA ’87)

added subsection (e) to section 6104.

Section 6104(e) requires each tax-exempt

organization, including one that is a private foundation, to allow public inspection of the organization’s application for

recognition of tax exemption. Section

6104(e) also requires each tax-exempt organization, other than one that is a private

foundation, to allow public inspection at

the organization’s principal office (and

certain regional or district offices) of its

three most recent annual information returns. (Section 6104(e) does not apply to

private foundation annual information returns, which are subject to public disclosure under section 6104(d), as in effect

prior to the Tax and Trade Relief Extension Act of 1998.) Under section 6104(e),

each annual information return must be

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made available for a 3-year period beginning on the date the return is required to

be filed or is actually filed, whichever is

later. In Notice 88–120 (1988–2 C.B.

454), the IRS provided tax-exempt organizations with guidance for complying

with the public inspection requirements.

The Taxpayer Bill of Rights 2

(TBOR2), enacted on July 30, 1996,

amended section 6104(e) by adding additional public disclosure requirements. As

amended, section 6104(e) requires each

tax-exempt organization, including one

that is a private foundation, to comply

with requests, made either in person or in

writing, for copies of the organization’s

application for recognition of tax exemption. Section 6104(e) also requires each

tax-exempt organization, other than one

that is a private foundation, to comply

with requests, made either in person or in

writing, for copies of the organization’s

three most recent annual information returns. The organization must fulfill these

requests without charge, other than a reasonable fee for reproduction and postage.

If the request for copies is made in person, the organization generally must provide the requested copies immediately. If

the request for copies is made in writing,

the organization must provide the copies

within 30 days. Section 6104(e) also provides that an organization is relieved of its

obligation to provide copies upon request

if, in accordance with regulations promulgated by the Secretary of the Treasury, (1)

the organization has made the requested

documents widely available, or (2) the

Secretary of the Treasury determines,

upon application by the organization, that

the organization is subject to a harassment

campaign such that a waiver of the obligation to provide copies would be in the

public interest.

sideration of all the written comments regarding the proposed regulations, and the

amendments made by the Tax and Trade

Relief Extension Act of 1998, described

below, those regulations are adopted as

revised by this Treasury decision.

§301.6104(d)–1, relating to public inspection of private foundation annual returns,

is not affected by this Treasury decision.

Amendments Made by the Tax and Trade

Relief Extension Act of 1998

The final regulations provide guidance

concerning the application for tax exemption and annual information returns a taxexempt organization, other than a private

foundation, must make available for public inspection and must supply in response

to requests for copies. The final regulations also provide guidance on (1) the

place and time the organization must

make these documents available for public inspection, (2) conditions the organization may place on requests for copies of

the documents, and (3) the amount, form

and time of payment of any fees the organization may charge. The final regulations also prescribe how an organization

can make its application for tax exemption and annual information returns

widely available. Finally, the final regulations provide guidance on the standards

that apply in determining whether an organization is the subject of a harassment

campaign and on the applicable procedures for obtaining relief from the general

requirement that copies of documents be

provided in response to requests.

Issuance of Proposed Regulations under

Section 6104(e)

Future Regulations Will Apply to

Private Foundations

In Notice 96–48 (1996–2 C.B. 214),

the IRS invited comments on the changes

made by TBOR2. Twenty-two comments

were received and considered in the drafting of a notice of proposed rulemaking

(REG–246250–96, 1997–2 C.B. 627),

published in the Federal Register (62

F.R. 50533) on September 26, 1997. The

IRS received twenty written comments on

the proposed regulations and held a public

hearing on February 4, 1998. After con-

The IRS and the Treasury Department

intend to issue shortly a notice of proposed rulemaking relating to the public

disclosure requirements of section

6104(d) as those requirements apply to

private foundations. Until 60 days after

final regulations are issued, private foundations continue to be subject to sections

6104(d) and (e), as in effect prior to

the Tax and Trade Relief Extension Act

of 1998. For that reason, existing

April 26, 1999

The Tax and Trade Relief Extension

Act of 1998, which was enacted on October 21, 1998, amended section 6104(e) of

the Internal Revenue Code to subject private foundations to the same rules regarding public disclosure of annual information returns that apply to other tax-exempt

organizations. In addition, the Tax and

Trade Relief Extension Act of 1998 repealed existing section 6104(d), and redesignated section 6104(e), as amended,

as new section 6104(d). (Unless otherwise noted, all references in these final

regulations to section 6104(d) are to section 6104(d) as amended by the Tax and

Trade Relief Extension Act of 1998.)

The Tax and Trade Relief Extension

Act of 1998 amendments apply to requests made after the later of December

31, 1998, or the 60th day after the Secretary of the Treasury issues regulations referred to in section 6104(d)(4) (relating to

when documents are made widely available and when a particular request is considered part of a harassment campaign).

This Treasury decision adopts final regulations under section 6104(d)(4) that are

applicable to tax-exempt organizations

other than private foundations. Accordingly, amendments to section 6104(d) will

become applicable with respect to requests made to tax-exempt organizations

other than private foundations after June

8, 1999.

4

Explanation of Provisions

Overview

Application for Tax Exemption

A tax-exempt organization, other than

one that is a private foundation, must

make its application for tax exemption

available pursuant to these final regulations. An application for tax exemption

includes the application form (such as

Form 1023 or Form 1024) and any supporting documents filed by, or on behalf

of, the organization in connection with its

application. It also includes any letter or

document issued by the IRS in connection

with the application. Consistent with the

guidance provided in Notice 88–120, if an

organization filed its application before

July 15, 1987, the final regulations provide that the organization is required to

make available a copy of its application

only if it had a copy of the application on

July 15, 1987.

Annual Information Returns

A tax-exempt organization, other than

one that is a private foundation, must

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make its three most recent annual information returns available pursuant to these

final regulations. Generally, an annual information return includes Forms 990,

990-EZ, 990-BL, and Form 1065. It also

includes, generally, all schedules and attachments filed with the IRS. An organization is not required, however, to disclose the parts of the return that identify

names and addresses of contributors to

the organization, nor is it required to disclose Form 990-T.

A few commentators asked that the

final regulations exempt certain items reported on an application for tax exemption or an annual information return from

disclosure. For example, one commentator observed that only an organization described in section 501(c)(3) is required by

statute (section 6033) to report certain

compensation information. By contrast, it

is the regulations under section 6033 that

require tax-exempt organizations described in other parts of section 501(c) or

section 501(d) to report certain compensation information. Accordingly, the

commentator asked that the final regulations require public disclosure of the compensation section of Form 990 only when

it is a statutory requirement, as opposed to

a regulatory requirement, to report such

information. Because section 6104(d) requires, except for specific exceptions, disclosure of all the information reported on

an application or return, the IRS and the

Treasury Department decided that requiring public disclosure of compensation information required to be reported on an

annual information return either by statute

or regulation is consistent with section

6104(d).

One commentator requested that final

regulations require an organization that

has not been determined by the IRS to be

exempt from taxation under section

501(a) to make its application for tax exemption available for public inspection

and to provide copies upon request. Section 301.6104(e)–1(b)(3) of the proposed

regulations provided that an organization

is not required to disclose its application

for tax exemption until the IRS determines it is exempt from taxation. Section

6104(d)(1) requires an organization to

disclose its application for tax exemption

only where it is exempt under section

501(a). Thus, the statute does not require

an organization to disclose its application

1999–17 I.R.B.

for tax exemption while the application is

pending or in a case where the IRS issues

an adverse determination. Accordingly,

the IRS and the Treasury Department continue to believe that the rule of the proposed regulation is consistent with the

statute and have decided not to change

this provision.

One commentator proposed that a special rule be included in the final regulations so that a religious or apostolic organization described in section 501(d)

would not be required to publicly disclose

a Schedule K-1 of Form 1065 because it

contains taxpayer information with respect to the distributees (i.e., the ratable

portions of the net income and expenses

of the individual members of the organization). After the submission of this comment, the Internal Revenue Service Restructuring and Reform Act of 1998,

Public Law 105–206 (112 Stat. 685) was

enacted. Section 6019 of this Act

amended Code sections 6104(b) and

6104(e) to provide specifically that organizations described in section 501(d) are

not required to publicly disclose a Schedule K-1 filed by the organization. Consistent with this statutory modification of

section 6104, the final regulations eliminate the requirement that a religious or

apostolic organization described in section 501(d) disclose a Schedule K-1.

Place and Time Documents Must Be

Available for Public Inspection

Section 6104(d) requires a tax-exempt

organization to make its documents available for public inspection, and provide

copies upon request, at its principal office

and at certain regional or district offices.

Under Notice 88–120, certain sites where

services are provided (such as day care or

health care) are not treated as regional or

district offices for purposes of the public

inspection requirements, provided that

such sites do “not serve as offices of management staff (other than managers involved solely in managing the specific

service of that service provider office).”

The IRS and the Treasury Department

recognize that many tax-exempt organizations maintain sites where their employees or volunteers solely provide services

that further exempt purposes, including

services provided directly to the public,

but do not maintain administrative or

management staff at such sites necessary

5

to respond to public disclosure requests.

Accordingly, the proposed regulations expanded the “service provider exception”

of Notice 88–120 slightly. Under the

proposed regulations, sites where the only

services provided further exempt purposes (such as day care, health care or scientific or medical research) were excluded from the definition of a regional or

district office. Thus, under the proposed

regulations, a research organization that

maintains a laboratory used solely by individuals conducting scientific research

on behalf of the organization would not

have to respond to public disclosure requests made at the laboratory even though

the researchers are not providing direct

services to the public. However, a research organization would have a public

disclosure obligation at a laboratory if the

organization also uses space at that location as offices for some of its management staff (other than those involved

solely in managing the exempt function

activities at the laboratory).

Several comments were received on

this topic. One commentator expressed

the view that the definition of regional or

district office in the proposed regulations

was reasonably well balanced. Other

commentators, however, expressed concern that this definition would reduce the

number of sites from which the documents could be obtained. One of these

commentators expressed the view that exempting organizations from complying

with public disclosure requests made at

sites where employees engage solely in

providing exempt services would unnecessarily complicate the determination

whether an organization is required to respond to public disclosure requests at a

particular site. This commentator suggested that the final regulations treat any

site with 3 or more employees as a regional or district office where an organization must respond to requests for public

inspection or copies. Another commentator expressed the view that the exception

for sites dedicated solely to providing exempt services was reasonable, but suggested that the final regulations clarify

what activities would constitute management activities that would require an organization to respond to public disclosure

requests at the site.

The IRS and the Treasury Department

believe that the “regional and district of-

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fice” rule of section 6104(d) was intended

to enhance the availability of documents

in the case of an organization that maintains management staff at one or more offices in addition to its principal office.

However, Congress explicitly recognized

that the burden to an organization of complying with requests for public inspection

or copies made at small regional or district offices (those with fewer than 3

employees) would outweigh the public

benefit of increased availability of the

documents. This rationale applies equally

as well to certain sites of a tax-exempt organization where its employees and volunteers engage solely in providing services that further exempt purposes and

which do not serve as an office for management staff. The IRS and the Treasury

Department believe the rule expressed in

the proposed regulations is consistent

with the intent of the statute and prior IRS

guidance, particularly in light of the new

provisions that allow copies to be obtained by mail. Therefore, the rule of the

proposed regulations is followed in the

final regulations.

The proposed regulations prescribed

how an organization that does not maintain a permanent office or whose office

has very limited hours during certain

times of the year can comply with the

public inspection requirements. The proposed regulations also provided rules concerning the conditions the organization

may impose on public inspections that are

consistent with Notice 88–120. In this regard, the final regulations follow the proposed regulations.

The proposed regulations permitted a

principal, regional, or district office of an

organization to use an agent to process requests for copies. One commentator

asked that the final regulations also allow

a tax-exempt organization to retain a local

agent to satisfy the organization’s public

inspection obligation. After careful consideration of this comment, the IRS and

the Treasury Department have concluded

that, to avoid potential inconvenience to

members of the public, it is important that

tax-exempt organizations make their applications and returns available for inspection at their offices. Therefore, the

IRS and the Treasury Department did not

adopt this comment.

Another commentator asked that the

final regulations clarify that an organiza-

April 26, 1999

tion may apply the same security measures to individuals that request inspection

or copies that it applies to the public in

general. The IRS and the Treasury Department have determined that the proposed regulations would not preclude a

tax-exempt organization from implementing its normal security measures. Thus, no

change is reflected in the final regulations.

Requirement to Furnish Copy to a

Requester

The proposed regulations generally required that a tax-exempt organization accept requests for copies made in person at

the same place and time that the specified

documents must be available for public

inspection. In general, the proposed regulations required that the copies be provided on the day of the request. However,

the proposed regulations provided that, in

unusual circumstances, an organization

may provide the requested copies on the

next business day. Some commentators

expressed concern that a one-day delay

may not be sufficient. In response to

these comments, the final regulations provide that an organization must comply

with requests for copies made in person

by providing copies no later than the next

business day following the day the unusual circumstances cease to exist. However, in no event may the period of delay

exceed five business days. In response to

another comment, the final regulations

clarify that unusual circumstances include

times when the organization’s managerial

staff capable of fulfilling the request attends an off-site meeting or convention.

When a request for copies is made in

writing, the proposed regulations required

that a tax-exempt organization mail the

copies within 30 days from the date it receives the request. However, the proposed regulations provided that, if an organization requires advance payment of a

reasonable fee for copying and postage, it

may provide the copies within 30 days

from the date it receives payment, rather

than from the date of the initial request.

In addition, the proposed regulations provided guidance as to what constitutes a request, when a request is considered received, and when copies are deemed

provided. The final regulations follow the

rules in the proposed regulations.

The proposed regulations provided that

individuals may request a specific part of

6

an application for tax exemption or annual information return. One commentator expressed concern that requiring a taxexempt organization to provide a copy of

only part of a document may create a significant burden on the tax-exempt organization because the organization would

have to identify the particular information

requested. In order to minimize this potential burden, without requiring the requester to pay for a copy of parts of a document that the requester has no interest in

obtaining, the final regulations permit a

requester to request a copy of any specifically identified part or schedule of an application or a return (except for information which is not subject to public

disclosure under section 6104(d)(3)). For

example, a requester may request a copy

of Part V (List of Officers, Directors,

Trustees and Key Employees) of Form

990.

Reasonable Fee for Providing Copies

Section 6104(d)(1)(B) permits an organization to charge a reasonable fee for the

cost of copying and mailing documents in

response to requests for copies. The proposed regulations stated that a fee was

reasonable only if it did not exceed the

fees the IRS charges for copies of tax-exempt organization tax returns and related

documents. This fee is currently $1.00

for the first page and $.15 for each subsequent page. In addition, the proposed regulations allowed a charge for actual

postage costs. Some commentators requested that the reasonable fee be greater

than the amount stated in the proposed

regulations. One commentator suggested

that the final regulations allow organizations to consider personnel costs and not

limit the fee to the IRS charge. The IRS

and the Treasury Department are concerned that permitting organizations to

charge a higher fee could hinder the public’s ability to receive a copy of an application or return. Consequently, it was decided that, on balance, the reasonable fee

set forth in the proposed regulations is appropriate. Thus, the final regulations

adopt the reasonable fee provision of the

proposed regulations.

The proposed regulations permitted an

organization to collect payment in advance of providing the requested copies.

Under the proposed regulations, if an or-

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ganization receives a written request for

copies with no payment enclosed, and the

organization requires payment in advance,

the organization must request payment

within 7 days from the date it receives the

request. The proposed regulations required an organization to accept payment

made by cash or money order and, when

the request is made in writing, also accept

payment made by personal check. An organization is permitted to accept other

forms of payment. One commentator

asked for the elimination of the requirement to accept a personal check because

an organization could be liable for bank

charges if there are insufficient funds to

cover the personal check. The final regulations generally follow the proposed regulations, except that the final regulations

provide that a tax-exempt organization

that accepts payment by credit card is not

required to accept personal checks.

Consistent with the proposed regulations, the final regulations protect requesters from unexpected fees where a

tax-exempt organization does not require

prepayment and where a requester does

not enclose prepayment with a request, by

requiring that an organization must receive consent from a requester before providing copies for which the fee charged

for copying and postage is in excess of

$20.

Local and Subordinate Organizations

Some commentators stated that the proposed regulations were overly burdensome with respect to local or subordinate

organizations recognized as tax-exempt

under a group exemption letter or that file

a group return pursuant to §1.6033–2(d)

and Rev. Proc. 80–27 (1980–1 C.B. 677).

Specifically, they objected to the requirement that a local or subordinate organization make available copies of documents

submitted by the central or parent organization to the IRS to include the local or

subordinate organization in the group ruling, which often consists of lengthy lists

or directories of names and addresses of

affiliated organizations. In addition, one

commentator expressed the view that the

annual filing under Rev. Proc. 80–27 that

a central or parent organization submits to

the IRS to cover a local or subordinate organization under its group exemption letter does not constitute an application for

tax exemption within the meaning of sec-

1999–17 I.R.B.

tion 6104(d)(2)(A). In response to these

comments, the final regulations reduce

the burden on local and subordinate organizations. Under the final regulations, a

local or subordinate organization that receives a request made in person for inspection or for a copy of its application

for tax exemption is required to acquire,

and make available within a reasonable

amount of time (normally not more than

two weeks), the application for a group

exemption letter (if any) filed by the central or parent organization. In addition, a

local or subordinate organization must

also make available any documents submitted by the central or parent organization to the IRS to include the subordinate

organization in the group ruling. However, if the central or parent organization

submits a list or directory of organizations

covered by the group exemption letter, the

local or subordinate organization need

only provide the application for group exemption and those pages of the list or directory that refer to it. If a local or subordinate organization that does not file its

own annual information return but is covered under a group return receives a request made in person for inspection or for

a copy of its annual information return,

the local or subordinate organization must

make its group return available for inspection or provide copies within a reasonable amount of time (normally not

more than two weeks). However, if the

group return includes separate schedules

with respect to each local or subordinate

organization included in the group return,

the local or subordinate organization receiving the request may omit any schedules relating only to other organizations

included in the group return.

If the requester seeks inspection of an

application for tax exemption or an annual information return, the local or subordinate organization may mail a copy of

the applicable document to the requester

within a reasonable amount of time (normally not more than two weeks) in lieu of

allowing an inspection. In such a case,

the local or subordinate organization may

not charge for the copies without the consent of the requester. A local or subordinate organization must comply with written requests for copies in accordance with

the general rules for written requests discussed above.

The final regulations also clarify, consistent with Notice 88–120, the obligation

7

of the central or parent organization to

comply, at its principal office, with requests for inspection or copies of documents relating to its local and subordinate

organizations.

Making Applications and Information

Returns Widely Available

The final regulations provide that a taxexempt organization is not required to

comply with requests for copies if the organization has made the requested documents widely available. The final regulations specify that an organization can

make its application for tax exemption

and/or its annual information returns

widely available by posting the applicable

document on the organization’s World

Wide Web page on the Internet or by having the applicable document posted on another organization’s World Wide Web

page as part of a database of similar materials, provided that the documents are

posted in a format which meets the criteria set forth in the final regulations. An

organization that makes its application for

tax exemption and/or its annual information returns widely available must provide

the individuals who request copies with

the World Wide Web address where the

documents are available.

The proposed regulations provided that

an organization must post its documents

on its World Wide Web page in a format

that the IRS uses to post forms and publications. Unlike the proposed regulations,

the final regulations do not enumerate one

or more particular formats that must be

used. Instead, the final regulations provide that the documents must be posted in

a format that meets the following criteria.

First, any individual with access to the Internet must be able to access, download,

view and print the posted document in a

format which exactly reproduces the

image of the original document filed with

the IRS, except for any information permitted to be withheld from public disclosure under section 6104(d). The final regulations require an exact reproduction

because a format that does not exactly reproduce the image of the original document may raise questions about the accuracy or authenticity of the posted

document. Second, the format must

allow any individual with access to the Internet to access, download, view and print

the posted document without payment of

April 26, 1999

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a fee to either the tax-exempt organization

or the entity maintaining the World Wide

Web page and without special computer

hardware or software required for that

format, other than software that is readily

available to members of the public free of

charge.

The IRS and the Treasury Department

understand that some of the formats that

the IRS itself uses to post forms and publications on the IRS World Wide Web

page may not satisfy the criteria specified

in the final regulations. For example,

some of these formats could require users

to have access to special hardware or software that is not commonly used by the

public to access, download, view and

print documents. The final regulations

provide a one-year transition rule for any

tax-exempt organization that posted its

documents on the Internet on or before

April 9, 1999, in a manner consistent with

the proposed regulations. Until June 8,

2000, such an organization will be treated

as having made its documents “widely

available” for purposes of the final regulations even if the format used does not

currently satisfy all of the criteria set forth

in the final regulations.

Some commentators suggested that the

final regulations permit an organization to

post its documents on the Internet in

HTML format. As discussed above, the

approach of the final regulations is to

identify the criteria that an Internet format

must satisfy. The IRS and the Treasury

Department understand that, currently,

when a heavily formatted document, such

as a tax return, is posted in HTML format,

it may not exactly reproduce the image of

the original document.

One format that currently satisfies the

criteria set forth in the final regulations is

Portable Document Format (PDF). PDF

is designed to reproduce the image of the

original document exactly. In addition,

documents in the PDF format can be

viewed, navigated and printed by anyone

using the freely available reader software.

Of course, there may be other formats that

currently satisfy the criteria set forth in

the final regulations. The IRS and the

Treasury Department refer to PDF only

for the purpose of illustrating an acceptable format. No inference should be

drawn that the IRS and the Treasury Department view PDF as an especially or

singularly qualified format, that IRS and

April 26, 1999

the Treasury Department endorse or warrant a specific document format (or software used in connection with a format),

or that use or failure to use a specific document format (or software used in connection with a format) will result in any

preferential treatment from the IRS or the

Treasury Department. The IRS and the

Treasury Department note that a specific

format that currently satisfies the ”widely

available” criteria set forth in the final

regulations may be altered such that it no

longer satisfies the “widely available” criteria in the future. Conversely, a specific

format that does not currently satisfy the

“widely available” criteria may be refined

to satisfy the “widely available” criteria in

the future.

As technology advances, the IRS and

the Treasury Department anticipate that

an increasing number of formats will

meet the criteria set forth in the final regulations. Accordingly, the IRS and the

Treasury Department do not intend to

limit technologies that organizations may

use to post their documents as long as the

posted document is readily and freely accessible and appears, whether viewed on

screen or in print, exactly as the original.

The IRS and the Treasury Department

will continue to consider other additional

methods by which applications and returns could be made widely available.

Accordingly, the final regulations provide

that the Commissioner may prescribe, by

revenue procedure or other guidance, additional methods that an organization can

use to make its application for tax exemption and/or its annual information returns

widely available.

Harassment Campaigns

The proposed regulations provided

guidance in determining whether a taxexempt organization is the subject of a harassment campaign such that requiring

compliance with requests for copies that

are part of the harassment campaign

would not be in the public interest. Generally, the proposed regulations provided

that a harassment campaign exists where

the relevant facts and circumstances show

that the purpose of a group of requests

was to disrupt the operations of the taxexempt organization rather than to obtain

information. The proposed regulations

also contained examples that evaluated

8

whether particular situations constituted a

harassment campaign and whether an organization had a reasonable basis for believing that a request was part of the harassment campaign. The final regulations

retain this rule and the examples set forth

in the proposed regulations.

The proposed regulations provided that

an organization may suspend compliance

with a request if the organization reasonably believes that the request is part of a

harassment campaign. Commentators expressed concern that, if there is a delay in

the issuance of an IRS determination as to

whether the organization’s belief is reasonable, the organization could be subject

to significant penalties for the intervening

period. The final regulations do not limit

the penalties that may be retroactively imposed in cases where an organization is

subsequently determined to have lacked a

reasonable belief for suspending compliance. However, the IRS and the Treasury

Department recognize that it may be appropriate to mitigate penalties in certain

circumstances, especially where a delay

in the issuance of a determination is completely outside the control of the organization requesting the determination. The

IRS intends to publish a revenue procedure that will provide additional detail

concerning harassment campaign determinations procedures and may prescribe

rules concerning the imposition and mitigation of penalties.

The proposed regulations required an

organization to file an application for a

harassment campaign determination

within 5 days after suspending compliance with a request that the organization

believes to be part of such harassment

campaign. One commentator asked that

the time period for filing an application be

expanded to either 10 or 15 business days.

Another commentator observed, however,

that such an extension of time would further delay compliance with requests for

copies that an organization reasonably believes, but are determined not to be, part

of a harassment campaign. The final regulations require an organization to file an

application for a harassment determination within 10 business days after suspending compliance. The IRS and the

Treasury Department believe that this

time period strikes an appropriate balance

by providing organizations sufficient time

to prepare and file an application without

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substantially delaying access to copies of

the documents. In addition, the final regulations allow an organization, without

submitting an application, to disregard requests for copies in excess of two per

month or four per year made by a single

individual or sent from a single address.

Some commentators asked for clarification concerning the period that an organization may continue not to comply with

requests for copies that are part of a harassment campaign once it has received

such a determination. The IRS and the

Treasury Department believe that the district director for the key district in which

the organization’s principal office is located (or such other person as the Commissioner may designate) should exercise

reasonable discretion, based on the facts

and circumstances of each case, in deciding the exact terms and conditions of a

harassment campaign determination.

Consequently, the final regulations do not

change this provision of the proposed

regulations.

Various comments concerned the examples of harassment campaigns and requests from members of the news media.

In this regard, example 4 has been modified to better illustrate that a request made

by a member of the news media is a strong

factor tending to indicate that the request

is not part of a harassment campaign.

Other Matters

The proposed regulations provided that

an individual denied inspection, or a copy,

of an application for tax exemption or an

annual information return could seek assistance from the IRS by providing to the

Director of the Exempt Organizations Division a statement that describes the request and the reason for the individual’s

belief that the denial was in violation of

the legal requirements. The final regulations provide instead that such individuals

should send their statements directly to

the district director for the key district in

which the principal office of the tax-exempt organization is located (or such

other person as the Commissioner may

designate). Finally, various comments

raised questions regarding the availability

of an administrative appeal of a harassment campaign determination and

whether harassment campaign applications and determinations are publicly

available. Whether an administrative ap-

1999–17 I.R.B.

peal is available and whether a harassment campaign determination is publicly

available are matters beyond the scope of

these regulations, but may be addressed in

subsequent guidance.

The final regulations are effective June

8, 1999.

nificant economic impact. Therefore, a

Regulatory Flexibility Analysis under the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

preceding these regulations was submitted to Small Business Administration for

comment on its impact on small business.

Special Analyses

Drafting Information

It is hereby certified that the collections

of information in these regulations will

not have a significant economic impact on

a substantial number of small entities.

This certification is based on the fact that

the average time required to maintain and

disclose the information required under

these regulations is estimated to be 30

minutes for each tax-exempt organization.

This estimate is based on the assumption

that, on average, a tax-exempt organization will receive one request per year to

inspect or provide copies of its application for tax exemption and its annual information returns. Less than 0.001 percent of the tax-exempt organizations

affected by these regulations will be subject to the reporting requirements contained in the regulations. It is estimated

that annually, approximately 1,000 taxexempt organizations will make their documents widely available by posting them

on the Internet. In addition, it is estimated

that annually, approximately 50 tax-exempt organizations will file an application

for a determination that they are the subject of a harassment campaign such that a

waiver of the obligation to provide copies

of their applications for tax exemption

and their annual information returns is in

the public interest. The average time required to complete, assemble and file an

application describing a harassment campaign is expected to be 5 hours. Because

applications for a harassment campaign

determination will be filed so infrequently, they will have no effect on the

average time needed to comply with the

requirements in these regulations. In addition, a tax-exempt organization is allowed in these regulations to charge a reasonable fee for providing copies to

requesters. Therefore, it is estimated that

on average it will cost tax-exempt organizations less than $10 per year to comply

with these regulations, which is not a sig-

The principal author of these regulations is Michael B. Blumenfeld, Office of

Associate Chief Counsel (Employee Benefits and Exempt Organizations), IRS.

Other personnel from the IRS and the

Treasury Department also participated in

their development.

Effective Date

9

* * * * *

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR Parts 301 and

602 are amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation for

part 301 is amended by adding entries in

numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.6104(d)–4 also issued

under 26 U.S.C. 6104(e)(3);

Section 301.6104(d)–5 also issued

under 26 U.S.C. 6104(e)(3); * * *

Par. 2. Sections 301.6104(d)–2 through

301.6104(d)–5 are added to read as follows:

§301.6104(d)–2 Table of contents.

This section lists captions contained in

§§301.6104(d)–3 through 301.6104(d)–5.

§301.6104(d)–3 Public inspection and

distribution of applications for tax

exemption and annual information

returns of tax-exempt organizations

(other than private foundations).

(a)

(b)

(1)

(2)

(3)

(i)

(ii)

(iii)

In general.

Definitions.

Tax-exempt organization.

Private foundation.

Application for tax exemption.

In general.

No prescribed application form.

Exceptions.

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(iv)

(4)

(i)

(ii)

(iii)

(iv)

(5)

(i)

(ii)

Local or subordinate organizations.

Annual information return.

In general.

Exceptions.

Returns more than 3 years old.

Local or subordinate organizations.

Regional or district offices.

In general.

Site not considered a regional or

district office.

(c) Special rules relating to public inspection.

(1) Permissible conditions on public inspection.

(2) Organizations that do not maintain

permanent offices.

(d) Special rules relating to copies.

(1) Time and place for providing copies

in response to requests made in person.

(i) In general.

(ii) Unusual circumstances.

(iii) Agents for providing copies.

(2) Request for copies in writing.

(i) In general.

(ii) Time and manner of fulfilling written requests.

(A) In general.

(B) Request for a copy of parts of document.

(C) Agents for providing copies.

(3) Fees for copies.

(i) In general.

(ii) Form of payment.

(A) Request made in person.

(B) Request made in writing.

(iii) Avoidance of unexpected fees.

(iv) Responding to inquiries of fees

charged.

(e) Documents to be provided by regional and district offices.

(f) Documents to be provided by local

and subordinate organizations.

(1) Applications for tax exemption.

(2) Annual information returns.

(3) Failure to comply.

(g) Failure to comply with public inspection or copying requirements.

(h) Effective date.

§301.6104(d)–4 Making applications

and returns widely available.

(a)

(b)

(1)

(2)

(i)

(ii)

In general.

Widely available.

In general.

Internet posting.

In general.

Transition rule.

April 26, 1999

(iii) Reliability and accuracy.

(c) Discretion to prescribe other methods for making documents widely

available.

(d) Notice requirement.

(e) Effective date.

§301.6104(d)–5 Tax-exempt

organization subject to harassment

campaign.

(a)

(b)

(c)

(d)

(e)

(f)

(g)

In general.

Harassment.

Special rule for multiple requests

from a single individual or address.

Harassment determination procedure.

Effect of a harassment determination.

Examples.

Effective date.

§301.6104(d)–3 Public inspection and

distribution of applications for tax

exemption and annual information

returns of tax-exempt organizations

(other than private foundations).

(a) In general. Except as otherwise

provided in this section, if a tax-exempt

organization (as defined in paragraph

(b)(1) of this section), other than a private

foundation (as defined in paragraph (b)(2)

of this section), filed an application for

recognition of exemption under section

501, it shall make its application for tax

exemption (as defined in paragraph (b)(3)

of this section) available for public inspection without charge at its principal,

regional and district offices during regular

business hours. Except as otherwise provided in this section, a tax-exempt organization, other than a private foundation,

shall make its annual information returns

(as defined in paragraph (b)(4) of this section) available for public inspection without charge in the same offices during regular business hours. Each annual

information return shall be made available for a period of three years beginning

on the date the return is required to be

filed (determined with regard to any extension of time for filing) or is actually

filed, whichever is later. In addition, except as provided in §§301.6104(d)–4 and

301.6104(d)–5, an organization shall provide a copy without charge, other than a

reasonable fee for reproduction and actual

postage costs, of all or any part of any ap-

10

plication or return required to be made

available for public inspection under this

paragraph to any individual who makes a

request for such copy in person or in writing. See paragraph (d)(3) of this section

for rules relating to fees for copies.

(b) Definitions. For purposes of applying the provisions of section 6104(d), this

section and §§301.6104(d)–4 and

301.6104(d)–5, the following definitions

apply:

(1) Tax-exempt organization. The term

tax-exempt organization means any organization that is described in section 501(c)

or section 501(d) and is exempt from taxation under section 501(a).

(2) Private foundation. The term private foundation means a private foundation as defined in section 509(a).

(3) Application for tax exemption—(i)

In general. Except as described in paragraph (b)(3)(iii) of this section, the term

application for tax exemption includes

any prescribed application form (such as

Form 1023 or Form 1024), all documents

and statements the Internal Revenue Service requires an applicant to file with the

form, any statement or other supporting

document submitted by an organization in

support of its application, and any letter

or other document issued by the Internal

Revenue Service concerning the application (such as a favorable determination

letter or a list of questions from the Internal Revenue Service about the application). For example, a legal brief submitted in support of an application, or a

response to questions from the Internal

Revenue Service during the application

process, is part of an application for tax

exemption.

(ii) No prescribed application form. If

no form is prescribed for an organization’s application for tax exemption, the

application for tax exemption includes—

(A) The application letter and copy of

the articles of incorporation, declaration

of trust, or other similar instrument that

sets forth the permitted powers or activities of the organization;

(B) The organization’s bylaws or other

code of regulations;

(C) The organization’s latest financial

statements showing assets, liabilities, receipts and disbursements;

(D) Statements describing the character

of the organization, the purpose for which

it was organized, and its actual activities;

1999–17 I.R.B.

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(E) Statements showing the sources of

the organization’s income and receipts

and their disposition; and

(F) Any other statements or documents

the Internal Revenue Service required the

organization to file with, or that the organization submitted in support of, the application letter.

(iii) Exceptions. The term application

for tax exemption does not include—

(A) Any application for tax exemption

filed by an organization that the Internal

Revenue Service has not yet recognized,

on the basis of the application, as exempt

from taxation under section 501 for any

taxable year;

(B) Any application for tax exemption

filed before July 15, 1987, unless the organization filing the application had a copy

of the application on July 15, 1987; or

(C) Any material, including the material listed in §301.6104(a)-1(i) and information that the Secretary would be required to withhold from public

inspection, that is not available for public

inspection under section 6104.

(iv) Local or subordinate organizations. For rules relating to applications

for tax exemption of local or subordinate

organizations, see paragraph (f)(1) of this

section.

(4) Annual information return—(i) In

general. Except as described in paragraph (b)(4)(ii) of this section, the term

annual information return includes an

exact copy of any return filed by a tax-exempt organization pursuant to section

6033. It also includes any amended return the organization files with the Internal Revenue Service after the date the

original return is filed. The copy must include all information furnished to the Internal Revenue Service on Form 990, Return of Organization Exempt From

Income Tax, or any version of Form 990

(such as Forms 990-EZ or 990-BL except

Form 990-T) and Form 1065, as well as

all schedules, attachments and supporting

documents, except for the name and address of any contributor to the organization. For example, the annual information

return includes Schedule A of Form 990

(containing supplementary information

on section 501(c)(3) organizations), and

those parts of the return that show compensation paid to specific persons (currently, Part V of Form 990 and Parts I and

II of Schedule A of Form 990).

1999–17 I.R.B.

(ii) Exceptions. The term annual information return does not include Schedule

A of Form 990-BL, Form 990-T, Exempt

Organization Business Income Tax Return, Schedule K-1 of Form 1065 or Form

1120-POL, U.S. Income Tax Return For

Certain Political Organizations, and the

return of a private foundation. See

§301.6104(d)-1 for requirements relating

to public disclosure of private foundation

annual returns.

(iii) Returns more than 3 years old.

The term annual information return does

not include any return after the expiration

of 3 years from the date the return is required to be filed (including any extension of time that has been granted for filing such return) or is actually filed,

whichever is later. If an organization files

an amended return, however, the amended

return must be made available for a period

of 3 years beginning on the date it is filed

with the Internal Revenue Service.

(iv) Local or subordinate organizations. For rules relating to annual information returns of local or subordinate organizations, see paragraph (f)(2) of this

section.

(5) Regional or district offices—(i) In

general. A regional or district office is

any office of a tax-exempt organization,

other than its principal office, that has

paid employees, whether part-time or

full-time, whose aggregate number of

paid hours a week are normally at least

120.

(ii) Site not considered a regional or

district office. A site is not considered a

regional or district office, however, if—

(A) The only services provided at the

site further exempt purposes (such as day

care, health care or scientific or medical

research); and

(B) The site does not serve as an office

for management staff, other than managers who are involved solely in managing the exempt function activities at the

site.

(c) Special rules relating to public inspection—(1) Permissible conditions on

public inspection. A tax-exempt organization may have an employee present in

the room during an inspection. The organization, however, must allow the individual conducting the inspection to take

notes freely during the inspection. If the

individual provides photocopying equipment at the place of inspection, the orga-

11

nization must allow the individual to photocopy the document at no charge.

(2) Organizations that do not maintain

permanent offices. If a tax-exempt organization does not maintain a permanent

office, the organization shall comply with

the public inspection requirements of

paragraph (a) of this section by making its

application for tax exemption and its annual information returns, as applicable,

available for inspection at a reasonable location of its choice. Such an organization

shall permit public inspection within a

reasonable amount of time after receiving

a request for inspection (normally not

more than 2 weeks) and at a reasonable

time of day. At the organization’s option,

it may mail, within 2 weeks of receiving

the request, a copy of its application for

tax exemption and annual information returns to the requester in lieu of allowing

an inspection. The organization may

charge the requester for copying and actual postage costs only if the requester

consents to the charge. An organization

that has a permanent office, but has no office hours or very limited hours during

certain times of the year, shall make its

documents available during those periods

when office hours are limited or not available as though it were an organization

without a permanent office.

(d) Special rules relating to copies—

(1) Time and place for providing copies in

response to requests made in-person—(i)

In general. Except as provided in paragraph (d)(1)(iii) of this section, a tax-exempt organization shall provide copies of

the documents it is required to provide

under section 6104(d) in response to a request made in person at its principal, regional and district offices during regular

business hours. Except as provided in

paragraph (d)(1)(ii) of this section, an organization shall provide such copies to a

requester on the day the request is made.

(ii) Unusual circumstances. In the case

of an in-person request, where unusual

circumstances exist such that fulfilling the

request on the same business day places

an unreasonable burden on the tax-exempt organization, the organization must

provide the copies no later than the next

business day following the day that the

unusual circumstances cease to exist or

the fifth business day after the date of the

request, whichever occurs first. Unusual

circumstances include, but are not limited

April 26, 1999

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to, receipt of a volume of requests that exceeds the organization’s daily capacity to

make copies; requests received shortly

before the end of regular business hours

that require an extensive amount of copying; or requests received on a day when

the organization’s managerial staff capable of fulfilling the request is conducting

special duties, such as student registration

or attending an off-site meeting or convention, rather than its regular administrative duties.

(iii) Agents for providing copies. A

principal, regional or district office of a

tax- exempt organization subject to the requirements of this section may retain a

local agent to process requests made in

person for copies of its documents. A

local agent must be located within reasonable proximity of the applicable office. A

local agent that receives a request made in

person for copies must provide the copies

within the time limits and under the conditions that apply to the organization itself. For example, a local agent generally

must provide a copy to a requester on the

day the agent receives the request. When

a principal, regional or district office of a

tax-exempt organization using a local

agent receives a request made in person

for a copy, it must immediately provide

the name, address and telephone number

of the local agent to the requester. An organization that provides this information

is not required to respond further to the

requester. However, the penalty provisions of sections 6652(c)(1)(C), 6652(c)(1)(D), and 6685 continue to apply to the

tax-exempt organization if the organization’s local agent fails to provide the documents as required under section 6104(d).

(2) Request for copies in writing—(i)

In general. A tax-exempt organization

must honor a written request for a copy of

documents (or the requested part) that the

organization is required to provide under

section 6104(d) if the request—

(A) Is addressed to, and delivered by

mail, electronic mail, facsimile, or a private delivery service as defined in section

7502(f) to a principal, regional or district

office of the organization; and

(B) Sets forth the address to which the

copy of the documents should be sent.

(ii) Time and manner of fulfilling written requests—(A) In general. A tax-exempt organization receiving a written request for a copy shall mail the copy of the

April 26, 1999

requested documents (or the requested

parts of documents) within 30 days from

the date it receives the request. However,

if a tax-exempt organization requires payment in advance, it is only required to

provide the copies within 30 days from

the date it receives payment. For rules relating to payment, see paragraph (d)(3) of

this section. In the absence of evidence to

the contrary, a request or payment that is

mailed shall be deemed to be received by

an organization 7 days after the date of

the postmark. A request that is transmitted to the organization by electronic mail

or facsimile shall be deemed received the

day the request is transmitted successfully. If an organization requiring payment in advance receives a written request without payment or with an

insufficient payment, the organization

must, within 7 days from the date it receives the request, notify the requester of

its prepayment policy and the amount

due. A copy is deemed provided on the

date of the postmark or private delivery

mark (or if sent by certified or registered

mail, the date of registration or the date of

the postmark on the sender’s receipt). If

an individual making a request consents,

a tax-exempt organization may provide a

copy of the requested document exclusively by electronic mail. In such case,

the material is provided on the date the organization successfully transmits the electronic mail.

(B) Request for a copy of parts of document. A tax-exempt organization must

fulfill a request for a copy of the organization’s entire application for tax exemption

or annual information return or any specific part or schedule of its application or

return. A request for a copy of less than

the entire application or less than the entire return must specifically identify the

requested part or schedule.

(C) Agents for providing copies. A taxexempt organization subject to the requirements of this section may retain an

agent to process written requests for

copies of its documents. The agent shall

provide the copies within the time limits

and under the conditions that apply to the

organization itself. For example, if the

organization received the request first

(e.g., before the agent), the deadline for

providing a copy in response to a request

shall be determined by reference to when

the organization received the request, not

12

when the agent received the request. An

organization that transfers a request for a

copy to such an agent is not required to

respond further to the request. If the organization’s agent fails to provide the

documents as required under section

6104(d), however, the penalty provisions

of sections 6652(c)(1)(C), 6652(c)(1)(D),

and 6685 continue to apply to the tax-exempt organization.

(3) Fees for copies—(i) In general. A

tax-exempt organization may charge a

reasonable fee for providing copies. A fee

is reasonable only if it is no more than the

per-page copying charge stated in

§601.702(f)(5)(iv)(B) of this chapter (fee

charged by the Internal Revenue Service

for providing copies to a requester), plus

no more than the actual postage costs incurred by the organization to provide the

copies. Before the organization provides

the documents, it may require that the individual requesting copies of the documents pay the fee. If the organization has

provided an individual making a request

with notice of the fee, and the individual

does not pay the fee within 30 days, or if

the individual pays the fee by check and

the check does not clear upon deposit, the

organization may disregard the request.

(ii) Form of payment—(A) Request

made in person. If a tax-exempt organization charges a fee for copying (as permitted under paragraph (d)(3)(i) of this

section), it shall accept payment by cash

and money order for requests made in

person. The organization may accept

other forms of payment, such as credit

cards and personal checks.

(B) Request made in writing. If a taxexempt organization charges a fee for

copying and postage (as permitted under

paragraph (d)(3)(i) of this section), it

shall accept payment by certified check,

money order, and either personal check

or credit card for requests made in writing. The organization may accept other

forms of payment.

(iii) Avoidance of unexpected fees.

Where a tax-exempt organization does

not require prepayment and a requester

does not enclose payment with a request,

an organization must receive consent

from a requester before providing copies

for which the fee charged for copying and

postage exceeds $20.

(iv) Responding to inquiries of fees

charged. In order to facilitate a re-

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Page 13

quester ’s ability to receive copies

promptly, a tax-exempt organization shall

respond to any questions from potential

requesters concerning its fees for copying

and postage. For example, the organization shall inform the requester of its

charge for copying and mailing its application for exemption and each annual information return, with and without attachments, so that a requester may include

payment with the request for copies.

(e) Documents to be provided by regional and district offices. Except as otherwise provided, a regional or district office of a tax-exempt organization must

satisfy the same rules as the principal office with respect to allowing public inspection and providing copies of its application for tax exemption and annual

information returns. A regional or district

office is not required, however, to make

its annual information return available for

inspection or to provide copies until 30

days after the date the return is required to

be filed (including any extension of time

that is granted for filing such return) or is

actually filed, whichever is later.

(f) Documents to be provided by local

and subordinate organizations–(1) Applications for tax exemption. Except as otherwise provided, a tax-exempt organization that did not file its own application

for tax exemption (because it is a local or

subordinate organization covered by a

group exemption letter referred to in

§1.508–1 of this chapter) must, upon request, make available for public inspection, or provide copies of, the application

submitted to the Internal Revenue Service

by the central or parent organization to

obtain the group exemption letter and

those documents which were submitted

by the central or parent organization to include the local or subordinate organization in the group exemption letter. However, if the central or parent organization

submits to the Internal Revenue Service a

list or directory of local or subordinate organizations covered by the group exemption letter, the local or subordinate organization is required to provide only the

application for the group exemption ruling and the pages of the list or directory

that specifically refer to it. The local or

subordinate organization shall permit

public inspection, or comply with a request for copies made in person, within a

reasonable amount of time (normally not

1999–17 I.R.B.

more than 2 weeks) after receiving a request made in person for public inspection or copies and at a reasonable time of

day. In a case where the requester seeks

inspection, the local or subordinate organization may mail a copy of the applicable documents to the requester within the

same time period in lieu of allowing an

inspection. In such a case, the organization may charge the requester for copying

and actual postage costs only if the requester consents to the charge. If the

local or subordinate organization receives

a written request for a copy of its application for tax exemption, it must fulfill the

request in the time and manner specified

in paragraph (d)(2) of this section. The

requester has the option of requesting

from the central or parent organization, at

its principal office, inspection or copies of

the application for group exemption and

the material submitted by the central or

parent organization to include a local or

subordinate organization in the group ruling. If the central or parent organization

submits to the Internal Revenue Service a

list or directory of local or subordinate organizations covered by the group exemption letter, it must make such list or directory available for public inspection, but it

is required to provide copies only of those

pages of the list or directory that refer to

particular local or subordinate organizations specified by the requester. The central or parent organization must fulfill

such requests in the time and manner

specified in paragraphs (c) and (d) of this

section.

(2) Annual information returns. A local

or subordinate organization that does not

file its own annual information return (because it is affiliated with a central or parent organization that files a group return

pursuant to §1.6033–2(d) of this chapter)

must, upon request, make available for

public inspection, or provide copies of,

the group returns filed by the central or

parent organization. However, if the

group return includes separate schedules

with respect to each local or subordinate

organization included in the group return,

the local or subordinate organization receiving the request may omit any schedules relating only to other organizations

included in the group return. The local or

subordinate organization shall permit

public inspection, or comply with a request for copies made in person, within a

13

reasonable amount of time (normally not

more than 2 weeks) after receiving a request made in person for public inspection or copies and at a reasonable time of

day. In a case where the requester seeks

inspection, the local or subordinate organization may mail a copy of the applicable documents to the requester within the

same time period in lieu of allowing an

inspection. In such a case, the organization may charge the requester for copying

and actual postage costs only if the requester consents to the charge. If the

local or subordinate organization receives

a written request for a copy of its annual

information return, it must fulfill the request by providing a copy of the group return in the time and manner specified in

paragraph (d)(2) of this section. The requester has the option of requesting from

the central or parent organization, at its

principal office, inspection or copies of

group returns filed by the central or parent

organization. The central or parent organization must fulfill such requests in the

time and manner specified in paragraphs

(c) and (d) of this section.

(3) Failure to comply. If an organization fails to comply with the requirements

specified in this paragraph, the penalty

provisions of sections 6652(c)(1)(C),

6652(c)(1)(D), and 6685 apply.

(g) Failure to comply with public inspection or copying requirements. If a

tax-exempt organization denies an individual’s request for inspection or a copy

of an application for tax exemption or an

annual information return as required

under this section, and the individual

wants to alert the Internal Revenue Service to the possible need for enforcement

action, the individual may provide a statement to the district director for the key

district in which the applicable tax-exempt organization’s principal office is located (or such other person as the Commissioner may designate) that describes

the reason why the individual believes the

denial was in violation of the requirements of section 6104(d).

(h) Effective date. This section is effective June 8, 1999.

§301.6104(d)–4 Making applications

and returns widely available.

(a) In general. A tax-exempt organization is not required to comply with a re-

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Page 14

quest for a copy of its application for tax

exemption or an annual information return pursuant to §301.6104(d)–3(a) if the

organization has made the requested document widely available in accordance

with paragraph (b) of this section. An organization that makes its application for

tax exemption and/or annual information

return widely available must nevertheless make the document available for

public inspection as required under

§301.6104(d)–3(a), as applicable.

(b) Widely available—(1) In general.

A tax-exempt organization makes its application for tax exemption and/or an annual information return widely available

if the organization complies with the requirements specified in paragraph (b)(2)

of this section, and if the organization satisfies the requirements of paragraph (d) of

this section.

(2) Internet posting—(i) In general. A

tax-exempt organization can make its application for tax exemption and/or an annual information return widely available

by posting the document on a World Wide

Web page that the tax-exempt organization establishes and maintains or by having the document posted, as part of a database of similar documents of other

tax-exempt organizations, on a World

Wide Web page established and maintained by another entity. The document

will be considered widely available only

if–

(A) the World Wide Web page through

which it is available clearly informs readers that the document is available and provides instructions for downloading it;

(B) the document is posted in a format

that, when accessed, downloaded, viewed

and printed in hard copy, exactly reproduces the image of the application for tax

exemption or annual information return as

it was originally filed with the Internal

Revenue Service, except for any information permitted by statute to be withheld

from public disclosure. (See section

6104(d)(3) and §301.6104(d)–3(b)(3) and

(4)); and

(C) any individual with access to the

Internet can access, download, view and

print the document without special computer hardware or software required for

that format (other than software that is

readily available to members of the public

without payment of any fee) and without

April 26, 1999

payment of a fee to the tax-exempt organization or to another entity maintaining

the World Wide Web page.

(ii) Transition rule. A tax-exempt organization that posted its application for tax

exemption or its annual information returns on a World Wide Web page on or

before April 9, 1999, in a manner consistent with regulation project REG–

246250–96 (1997 C.B. 627) (see

§601.601(d)(2) of this chapter) will be

treated as satisfying the requirements of

paragraphs (b)(2)(i)(B) & (C) of this section until June 8, 2000, provided that an

individual can access, download, view

and print the document without payment

of a fee to the tax-exempt organization or

to another entity maintaining the World

Wide Web page.

(iii) Reliability and accuracy. In order

for the document to be widely available

through an Internet posting, the entity

maintaining the World Wide Web page

must have procedures for ensuring the reliability and accuracy of the document

that it posts on the page and must take

reasonable precautions to prevent alteration, destruction or accidental loss of the

document when posted on its page. In the

event that a posted document is altered,

destroyed or lost, the entity must correct

or replace the document.

(c) Discretion to prescribe other methods for making documents widely available. The Commissioner, from time to

time, may prescribe additional methods,

other than an Internet posting meeting the

requirements of paragraph (b)(2) of this

section, that a tax-exempt organization

may use to make its documents widely

available.

(d) Notice requirement. If a tax-exempt

organization has made its application for

tax exemption and/or an annual information return widely available it must notify

any individual requesting a copy where

the documents are available (including

the address on the World Wide Web, if applicable). If the request is made in person, the organization shall provide such

notice to the individual immediately. If

the request is made in writing, the notice

shall be provided within 7 days of receiving the request.

(e) Effective date. This section is effective June 8, 1999.

14

§301.6104(d)–5 Tax-exempt

organization subject to harassment

campaign.

(a) In general. If the district director

for the key district in which the organization’s principal office is located (or such

other person as the Commissioner may

designate) determines that the organization is the subject of a harassment campaign and compliance with the requests

that are part of the harassment campaign

would not be in the public interest, a taxexempt organization is not required to fulfill a request for a copy (as otherwise required by §301.6104(d)–3(a)) that it

reasonably believes is part of the campaign.

(b) Harassment. A group of requests

for an organization’s application for tax

exemption or annual information returns

is indicative of a harassment campaign if

the requests are part of a single coordinated effort to disrupt the operations of a

tax-exempt organization, rather than to

collect information about the organization. Whether a group of requests constitutes such a harassment campaign depends on the relevant facts and

circumstances. Facts and circumstances

that indicate the organization is the subject of a harassment campaign include: a

sudden increase in the number of requests; an extraordinary number of requests made through form letters or similarly worded correspondence; evidence of

a purpose to deter significantly the organization’s employees or volunteers from

pursuing the organization’s exempt purpose; requests that contain language hostile to the organization; direct evidence of

bad faith by organizers of the purported

harassment campaign; evidence that the

organization has already provided the requested documents to a member of the

purported harassing group; and a demonstration by the tax-exempt organization

that it routinely provides copies of its documents upon request.

(c) Special rule for multiple requests

from a single individual or address. A taxexempt organization may disregard any request for copies of all or part of any document beyond the first two received within

any 30-day-period or the first four received

within any one-year-period from the same

individual or the same address, regardless

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Page 15

of whether the district director for the applicable key district (or such other person

as the Commissioner may designate) has

determined that the organization is subject

to a harassment campaign.

(d) Harassment determination procedure. A tax-exempt organization may

apply for a determination that it is the

subject of a harassment campaign and that

compliance with requests that are part of

the campaign would not be in the public

interest by submitting a signed application to the district director for the key district where the organization’s principal office is located (or such other person as the

Commissioner may designate). The application shall consist of a written statement giving the organization’s name, address, employer identification number,

and the name, address and telephone

number of the person to contact regarding

the application. The application must describe in detail the facts and circumstances that the organization believes support a determination that the organization

is subject to a harassment campaign. The

organization may suspend compliance

with respect to any request for a copy of

its documents based on its reasonable belief that such request is part of a harassment campaign, provided that the organization files an application for a

determination within 10 business days

from the day the organization first suspends compliance with respect to a request that is part of the alleged campaign.

In addition, the organization may suspend

compliance with any request it reasonably

believes to be part of the harassment campaign until it receives a response to its application for a harassment campaign determination.

(e) Effect of a harassment determination. If the appropriate district director

(or such other person as the Commissioner may designate) determines that a

tax-exempt organization is the subject of

a harassment campaign and it is not in the

public interest to comply with requests

that are part of the campaign, such organization is not required to comply with any

request for copies that it reasonably believes is part of the campaign. This determination may be subject to other terms

and conditions set forth by the district director (or such other person as the Commissioner may designate). A person (as

1999–17 I.R.B.

defined in section 6652(c)(4)(C)) shall

not be liable for any penalty under sections 6652(c)(1)(C), 6652(c)(1)(D) or

6685 for failing to timely provide a copy

of documents in response to a request

covered in a request for a harassment determination if the organization fulfills the

request within 30 days of receiving a determination from the district director (or

such other person as the Commissioner

may designate) that the organization is

not subject to a harassment campaign.

Notwithstanding the preceding sentence,

if the district director (or such other person as the Commissioner may designate)

further determines that the organization

did not have a reasonable basis for requesting a determination that it was subject to a harassment campaign or reasonable belief that a request was part of the

campaign, the person (as defined in section 6652(c)(4)(C)) remains liable for any

penalties that result from not providing

the copies in a timely fashion.

(f) Examples. The provisions of this

section are illustrated by the following examples:

Example 1. V, a tax-exempt organization, receives an average of 25 requests per month for

copies of its three most recent information returns.

In the last week of May, V is mentioned in a national

news magazine story that discusses information contained in V’s 1996 information return. From June 1

through June 30, 1997 V receives 200 requests for a

copy of its documents. Other than the sudden increase in the number of requests for copies, there is

no other evidence to suggest that the requests are

part of an organized campaign to disrupt V’s operations. Although fulfilling the requests will place a

burden on V, the facts and circumstances do not

show that V is subject to a harassment campaign.

Therefore, V must respond timely to each of the 200

requests it receives in June.

Example 2. Y is a tax-exempt organization that

receives an average of 10 requests a month for

copies of its annual information returns. From

March 1, 1997 to March 31, 1997, Y receives 25 requests for copies of its documents. Fifteen of the requests come from individuals Y knows to be active

members of the board of organization X. In the past

X has opposed most of the positions and policies

that Y advocates. None of the requesters have asked

for copies of documents from Y during the past year.

Y has no other information about the requesters. Although the facts and circumstances show that some

of the individuals making requests are hostile to Y,

they do not show that the individuals have organized

a campaign that will place enough of a burden on Y

to disrupt its activities. Therefore, Y must respond

to each of the 25 requests it receives in March.

Example 3. The facts are the same as in Example 2, except that during March 1997, Y receives

15

100 requests. In addition to the fifteen requests

from members of organization X’s board, 75 of the

requests are similarly worded form letters. Y discovers that several individuals associated with X

have urged the X’s members and supporters, via the

Internet, to submit as many requests for a copy of

Y’s annual information returns as they can. The

message circulated on the Internet provides a form

letter that can be used to make the request. Both the

appeal via the Internet and the requests for copies

received by Y contain hostile language. During the

same year but before the 100 requests were received, Y provided copies of its annual information

returns to the headquarters of X. The facts and circumstances show that the 75 form letter requests are

coordinated for the purpose of disrupting Y’s operations, and not to collect information that has already

been provided to an association representing the requesters’ interests. Thus, the fact and circumstances show that Y is the subject of an organized

harassment campaign. To confirm that it may disregard the 90 requests that constitute the harassment

campaign, Y must apply to the applicable district

director (or such other person as the Commissioner

may designate) for a determination. Y may disregard the 90 requests while the application is pending and after the determination is received. However, it must respond within the applicable time

limits to the 10 requests it received in March that

were not part of the harassment campaign.

Example 4. The facts are the same as in Example 3, except that Y receives 5 additional requests

from 5 different representatives of the news media

who in the past have published articles about Y.

Some of these articles were hostile to Y. Normally,

the Internal Revenue Service will not consider a

tax-exempt organization to have a reasonable belief

that a request from a member of the news media is

part of a harassment campaign absent additional

facts that demonstrate that the organization could

reasonably believe the particular requests from the

news media to be part of a harassment campaign.

Thus, absent such additional facts, Y must respond

within the applicable time limits to the 5 requests

that it received from representatives of the news

media.

(g) Effective date. This section is effective June 8, 1999.

PART 602–OMB CONTROL

NUMBERS UNDER THE

PAPERWORK REDUCTION ACT

Paragraph 3. The authority for part 602

continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 4. In §602.101, paragraph (b) is

amended by adding the following entries

in numerical order to the table to read as

follows:

§602.101 OMB Control numbers.

* * * * *

(b) * * *

April 26, 1999

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CFR part or section

where identified and

described

Page 16

Current OMB

control No.

* * * * *

301.6104(d)–3 . . . . . . . . . . . 1545–1560

301.6104(d)–4 . . . . . . . . . . . 1545–1560

301.6104(d)–5 . . . . . . . . . . . 1545–1560

* * * * *

Robert E. Wenzel,

Deputy Commissioner of

Internal Revenue.

Approved April 8, 1999.

Donald C. Lubick,

Assistant Secretary of

the Treasury

(Tax Policy).

(Filed by the Office of the Federal Register on April

8, 1999, 8:45 a.m., and published in the issue of the

Federal Register for April 9, 1999, 64 F.R. 17279)

Electronic Funds Transfer—

Temporary Waiver of Failure

to Deposit Penalty for Certain

Taxpayers

Notice 99–20

This notice provides guidance relating

to News Release IR–1999–27, issued

March 22, 1999, regarding application of

the § 6656 failure to deposit penalty to

taxpayers currently required to deposit by

electronic funds transfer.

In IR–1999–27, the Internal Revenue

Service announced that beginning July 1,

1999, any taxpayer that is currently required to deposit federal depository taxes

by electronic funds transfer and that deposited more than $200,000 in aggregate

federal depository taxes during calendar

year 1998 will be subject to the 10-percent § 6656 failure to deposit penalty if

the taxpayer fails to make deposits by

electronic funds transfer.

The Service will not, however, impose

the § 6656 penalty on taxpayers that did

not deposit more than $200,000 in aggregate federal depository taxes during calendar year 1998 solely for the failure to

deposit by electronic funds transfer. This

waiver applies only to deposit obligations

April 26, 1999

incurred after June 30, 1999, and on or

before December 31, 1999. This waiver

in no way affects the waiver announced in

Notice 99–12, 1999–9 I.R.B. 44, covering

the period beginning January 1, 1999, and

ending June 30, 1999.

BACKGROUND

Section 6302(h)(1)(A) provides that the

Secretary will prescribe regulations necessary for the development and implementation of an electronic funds transfer

system for the collection of depository

taxes. Section 6302(h)(2) provides a

phase-in schedule for the system.

Section 31.6302–1(h) of the Employment Taxes and Collection of Income Tax

at Source Regulations prescribes rules for

implementing an electronic funds transfer

system for the collection of depository

taxes. Under the regulation, taxpayers are

required to deposit taxes by electronic

funds transfer if the amount of their depository taxes in a specified earlier year

exceeds the applicable threshold amount.

The regulation provides that taxpayers

with more than $50,000 of federal employment tax deposits in calendar year

1995 must use electronic funds transfer to

make deposits that are due on or after July

1, 1997, and relate to return periods beginning on or after January 1, 1997. Taxpayers with more than $50,000 in employment tax deposits in calendar year

1996 must use electronic funds transfer to

make deposits of taxes that are due on or

after January 1, 1998, relating to return

periods beginning on or after January 1,

1998. Taxpayers with more than $50,000

in employment tax deposits in calendar

year 1997 must use electronic funds transfer to make deposits of taxes that are due

on or after January 1, 1999, relating to return periods beginning on or after January

1, 1999.

In addition, under the regulations, taxpayers with no employment tax deposits

in either 1995 or 1996, but with more than

$50,000 in other federal tax deposits in either 1995 or 1996, must use electronic

funds transfer to make deposits of taxes

that are due on or after January 1, 1998,

relating to return periods beginning on or

after January 1, 1998. Taxpayers with no

employment tax deposits in 1997, but

with more than $50,000 in other federal

tax deposits in 1997, must use electronic

funds transfer to make deposits of taxes

16

that are due on or after January 1, 1999,

relating to return periods beginning on or

after January 1, 1999.

Section 6656(a) provides that in the

case of any failure by any person to deposit taxes on the prescribed date in an

authorized government depository, a

penalty applies unless the failure is due to

reasonable cause and not due to willful

neglect. Rev. Rul. 95–68, 1995–2 C.B.

272, provides that, absent reasonable

cause, a taxpayer that is required to deposit federal taxes by electronic funds

transfer is subject to the 10-percent failure

to deposit penalty if the taxpayer deposits

the taxes by means other than electronic

funds transfer.

Notice 97–43, 1997–2 C.B. 294, provides that, in the case of taxpayers first required to deposit electronically on or after

July 1, 1997, the Internal Revenue Service will not impose the 10-percent

§ 6656 penalty solely for the failure to

make the deposit electronically, provided

the deposit is otherwise made in a timely

manner. This waiver applies only to deposit obligations incurred on or before

December 31, 1997.

Section 931 of the Taxpayer Relief Act

of 1997, Pub. L. No. 105–34, 111 Stat.

881, provides that no penalty shall be imposed under the Internal Revenue Code

solely by reason of a failure by a person to

use the electronic fund transfer system established under § 6302(h) of the Code if

(1) the person is a member of a class of

taxpayers first required to use such system on or after July 1, 1997, and (2) the

failure occurs before July 1, 1998.

Notice 98–30, 1998–22 I.R.B. 9, provides that, in the case of taxpayers first required to deposit electronically on or after

July 1, 1997, the Internal Revenue Service will not impose the 10-percent

§ 6656 penalty solely for the failure to

make the deposit electronically provided

the deposit is otherwise made in a timely

manner. This waiver applies only to deposit obligations incurred on or before

December 31, 1998.

Notice 99-12 provides that for taxpayers first required to make federal tax deposits electronically on or after July 1,

1997, the Service will not impose the 10percent § 6656 penalty solely for the failure to make those deposits by electronic

funds transfer provided the deposit is otherwise made in a timely manner. This

1999–17 I.R.B.

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waiver applies only to deposit obligations

incurred on or before June 30, 1999.

CONTINUED TEMPORARY WAIVER

OF PENALTY FOR CERTAIN

TAXPAYERS

For taxpayers that did not deposit more

than $200,000 in aggregate federal depository taxes during calendar year 1998, the

Service will not impose the 10-percent

§ 6656 penalty solely for the failure to

make deposits by electronic funds transfer.

However, a taxpayer will remain liable for

1999–17 I.R.B.

the § 6656 penalty (absent reasonable

cause) if the taxpayer fails to make a required deposit in a timely manner.

This waiver of the 10-percent § 6656

penalty applies only to deposit obligations

incurred after June 30, 1999, and on or

before December 31, 1999. The penalty

waiver includes deposits made after December 31, 1999, provided the deposit

obligation was incurred on or before December 31, 1999. The penalty waiver applies to any taxpayer that did not deposit

more than $200,000 in aggregate federal

17

depository taxes during calendar year

1998, including a taxpayer that was first

required to deposit by electronic funds

transfer in 1995 or 1996.

DRAFTING INFORMATION

The principal author of this notice is

Vincent G. Surabian of the Office of Assistant Chief Counsel (Income Tax and

Accounting). For further information regarding the penalty waiver, contact Mr.

Surabian at (202) 622-4940 (not a tollfree call).

April 26, 1999

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Part III. Administrative, Procedural, and Miscellaneous

26 CFR 601.105: Examination of returns and

claims for refund, credit, or abatement;

determination of correct tax liability.

(Also Part I, section 6511.)

Rev. Proc. 99–21

(without regard to § 6511(h)) by operation of any law or rule of law (including

res judicata) as of July 22, 1998, the date

§ 6511(h) was enacted.

SECTION 5. EFFECTIVE DATE

This revenue procedure is effective for

claims within the scope of this revenue

procedure filed on or after July 22, 1998.

SECTION 4. PROCEDURE

SECTION 1. PURPOSE

This revenue procedure describes the

information that is required under

§ 6511(h)(2)(A) of the Internal Revenue

Code in order to request suspension of the

period of limitations under § 6511 for

claiming a credit or refund of tax due to

an individual taxpayer’s financial disability. This information is required to be

submitted with the taxpayer’s claim for

credit or refund of tax.

SECTION 2. BACKGROUND

.01 Generally, under § 6511(a), a taxpayer must file a claim for credit or refund of tax within three years after the

date of filing a tax return or within two

years after the date of payment of the tax,

whichever period expires later.

.02 Section 6511(h), as added by

§ 3202 of the Internal Revenue Service

Restructuring and Reform Act of 1998,

Pub. L. No. 105–206, 112 Stat. 685 (July

22, 1998), suspends the statute of limitations period for filing a claim for credit or

refund under § 6511(a) for any period of

an individual taxpayer’s life during which

the taxpayer is unable to manage the taxpayer’s financial affairs because of a

medically determinable mental or physical impairment that can be expected to result in death, or has lasted (or can be expected to last) for a continuous period of

not less than 12 months. Further, a taxpayer is not considered to be financially

disabled during any period in which the

taxpayer’s spouse or any other person is

authorized to act on behalf of the taxpayer

in financial matters. Section 6511(h)(2)(A) requires that proof of the taxpayer’s

financial disability be furnished to the Internal Revenue Service.

SECTION 3. SCOPE

This revenue procedure applies to individual taxpayers for any period of financial disability, regardless of when it occurs, except if the taxpayer’s claim for

credit or refund was otherwise barred

April 26, 1999

Unless otherwise provided in IRS

forms and instructions, the following

statements are to be submitted with a

claim for credit or refund of tax to claim

financial disability for purposes of

§ 6511(h).

(1) a written statement by a physician (as defined in § 1861(r)(1) of the Social Security Act, 42 U.S.C. § 1395x(r)),

qualified to make the determination, that

sets forth:

(a) the name and a description of

the taxpayer’s physical or mental impairment;

(b) the physician’s medical opinion that the physical or mental impairment prevented the taxpayer from managing the taxpayer’s financial affairs;

(c) the physician’s medical opinion that the physical or mental impairment was or can be expected to result in

death, or that it has lasted (or can be expected to last) for a continuous period of

not less than 12 months;

(d) to the best of the physician’s

knowledge, the specific time period during which the taxpayer was prevented by

such physical or mental impairment from

managing the taxpayer’s financial affairs;

and

(e) the following certification,

signed by the physician:

I hereby certify that, to the best of

my knowledge and belief, the above

representations are true, correct, and

complete.

(2) A written statement by the person

signing the claim for credit or refund that

no person, including the taxpayer ’s

spouse, was authorized to act on behalf of

the taxpayer in financial matters during

the period described in paragraph (1)(d)

of this section. Alternatively, if a person

was authorized to act on behalf of the taxpayer in financial matters during any part

of the period described in paragraph

(1)(d), the beginning and ending dates of

the period of time the person was so authorized.

18

SECTION 6. PAPERWORK

REDUCTION ACT

The collections of information contained in this revenue procedure have

been reviewed and approved by the Office of Management and Budget (OMB)

in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control

number 1545–1649.

An agency may not conduct or sponsor,

and a person is not required to respond to,

a collection of information unless the collection of information displays a valid

OMB control number.

The collection of information is contained in section 4 of this revenue procedure. This information is required to establish a taxpayer’s financial disability for

purposes of § 6511(h)(2)(A). The likely

respondents are individual taxpayers and

physicians.

The estimated total annual reporting

burden is 24,100 hours.

The estimated annual burden per respondent will vary from 15 minutes to 45

minutes, depending on individual circumstances, with an estimated average of 30

minutes. The estimated number of respondents is 48,200.

The estimated annual frequency of responses is on occasion.

Books and records relating to a collection of information must be retained as

long as their contents may become material in the administration of any internal

revenue law. Generally, tax returns and

return information are confidential, as required by § 6103.

DRAFTING INFORMATION

The principal author of this revenue

procedure is Paul E. Tellier of the Office

of Assistant Chief Counsel (Income Tax

and Accounting). For further information

regarding this revenue procedure contact

Mr. Tellier on (202) 622-4930 (not a tollfree call).

1999–17 I.R.B.

IRB 1999-17

4/21/99 11:47 AM

Page 19

Weighted Average Interest Rate

Update

Notice 99–21

Notice 88–73 provides guidelines for

determining the weighted average interest

rate and the resulting permissible range of

interest rates used to calculate current liability for the purpose of the full funding

limitation of § 412(c)(7) of the Internal

Revenue Code as amended by the Omnibus Budget Reconciliation Act of 1987

and as further amended by the Uruguay

Round Agreements Act, Pub. L. 103–465

(GATT).

Month

Year

Weighted

Average

April

1999

6.11

Drafting Information

The principal author of this notice is

Todd Newman of the Employee Plans Di-

1999–17 I.R.B.

90% to 105%

Permissible

Range

90% to 110%

Permissible

Range

5.50 to 6.42

5.50 to 6.72

vision. For further information regarding

this notice, call (202) 622-6076 between

2:30 and 3:30 p.m. Eastern time (not a

19

The average yield on the 30-year Treasury Constant Maturities for March 1999

is 5.58 percent.

The following rates were determined

for the plan years beginning in the month

shown below.

toll-free number). Mr. Newman’s number

is (202) 622-8458 (also not a toll-free

number).

April 26, 1999

IRB 1999-17

4/21/99 11:47 AM

Page 20

Part IV. Items of General Interest

Foundations Status of Certain

Organizations

Announcement 99–48

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:

S A F E Foundation Inc., Orlando, FL

S D Prism Dance Theatre, Philadelphia,

PA

S O S Appeal for Life, Chicago, IL

S T O P Inc., Memphis, TN

S T R I V E, Scotts Valley, CA

Sacramento Area Volunteers in

Education, Sacramento, CA

Sacramento Retirement Association,

Sacramento, CA

Safe Children-Strong Families Inc.,

Naples, FL

Safe Haven Ministries Inc., Carrollton, IL

Safe Space Committee, Penfield, NY

Safety Village Iowa City-Coralville Inc.,

Iowa City, IA

Saint Tammany Sexual Assault Network

Inc., Covington, LA

Salama Fellowship Urban Ministries Inc.,

Nashville, TN

Salem Inc., Minneapolis, MN

Salem Social Services Corp., Memphis,

TN

Salisbury Club, St. Louis, MO

Salt Council Inc., Las Vegas, NV

Salt Ministries Inc., Houston, TX

Salt of the Earth Outreach Ministries,

East Hazel Crest, IL

Sample Soap Inc., Rochester, NY

San Angelo Code Blue Crime Watch Inc.,

San Angelo, TX

April 26, 1999

San Antonio Art Center, San Antonio, TX

San Diego Chapter Order of AHEPA No.

223, San Diego, CA

San Diego County All Star Basketball

Club, Lemon Grove, CA

San Francisco Irish Film Festival, Mill

Valley, CA

San-Hi Junior All American Football

Inc., San Bernardino, CA

San Juan Project, Salt Lake City, UT

Sandhill Estates Inc., Wheeler, TX

Santa Cruz Mutual Housing Association,

Santa Cruz, CA

Santa Fe School for Deaf Dalmatians,

Santa Fe, NM

Santa Society of Oakland, Bingham

Farms, MI

Sao Paulo Association for the Rescue of

Kids Inc., Robinson, IL

Savannah Support Council Inc.,

Savannah, GA

Savoreux Development Foundation Inc.,

Washington, DC

Scargro Home Inc., Columbus, OH

Schleicher County Community Services

Council, Eldorado, TX

Schoolhouse Inc., Cumberland Furnace,

TN

Schuetz Teams Outreach International,

Richland, WA

Science Enrichment Institute, Tulsa, OK

Scientific Games Inc. Employee Civic

Association, Alpharetta, GA

Scleroderma Federation of Ohio, Dayton,

OH

Scotia Dancers, New York, NY

Scottsdale Association of Men for the

Arts, Phoenix, AZ

Sea Legs Inc., San Pedro, CA

Second Chance Animal Rescue Inc.,

Lexington, NC

Second Chance Ranch Inc., Gadsden, AL

Second Chance Wildlife Center, West

Pittston, PA

Second District Commerce Network Inc.,

St. Louis, MO

Second Sight International, Portland, OR

Second Wind Aviation Safety Foundation

Inc., East Patchogue, NY

Section 5 Wrestling Organization Inc.,

Rush, NY

Sedalia Downtown Development

Incorporated, Sedalia, MO

Sedona Canyons Preservation

Association, Sedona, AZ

Seeds of Change, Chicago, IL

20

Sekvek Renewable Energy

Environmental Systems Non-Profit,

Mineola, NY

Selected Readings in Oral and

Maxillofacial Surgery Inc., Irving, TX

Self-Employment Economic

Development Council Inc., Clarkston,

WA

Self Help Crafts of the World Inc.,

Harrisonburg, VA

Sellersburg Shop with a Cop Inc.,

Sellersburg, IN

Seneca County AIDS Council, Tiffin, OH

Senior Broadcast Communications Inc.,

Durham, NC

Senior Citizen Center Inc. Pittsburg

Kansas, Pittsburg, KS

Senior Citizen TR Fund of Blue Springs,

Blue Springs, MO

Senior Citizens Association for

Information, Kansas City, MO

Senior Citizens Center Board

Incorporated, Park Rapids, MN

Senior Citizens Low Income Support

Group, Kernville, CA

Senior Housing Inc., Hampton, VA

Senior Meals Inc., Hampton, VA

Seniors Foundation, Fairfax, VA

Seniors Foundation Inc., Boston, MA

September House, Rochester, NY

Seraphim Dance Theatre Inc., Brooklyn,

NY

Serbian American Medical and Dental

Society, Chicago, IL

Serendipity Press, Mendota Heights, MN

Serenity Oriented Alternative Residences

Inc., Jonesboro, GA

Service Club of Andover Inc., Andover,

MA

Serving Our Savior Ministries, Paris, IL

Seth Pomeroy Family Ministries, Parker,

CO

Sexual Abuse Intervention Network of

Lake County, Grays Lake, IL

Seven Sisters Womens Environmental

Network, Chesterfield, NH

Seventh Day Adventist Laymen

Association Inc., Silver Spring, MD

Shadduli Center Inc., Santa Fe, NM

Shady Brook Foundation Inc., Houston,

TX

Shakedown Alliance, Bloomfield Hills,

MI

Share Foundation Inc., Pittsburgh, PA

Share International Inc., Wheat Ridge,

CO

1999–17 I.R.B.

IRB 1999-17

4/21/99 11:47 AM

Page 21

Sharing Hearts and Nurturing Elders,

Antioch, CA

Sharon Soccer Association Inc., Sharon,

MA

Shasta High School District Booster

Foundation, Redding, CA

Shattermask Theatre, St. Louis, MO

Shawnee Free-Net Inc., Carbondale, IL

Shawnee Gardens Tenants Association

Inc., Louisville, KY

She Company, Washington, DC

Shearer Elementary School Parent

Teacher Organization of Winchester,

Winchester, KY

Shechinah Inc., Georgetown, DE

Shelbina Community Advancement

Corporation, Shelbina, MO

Shelby Christian Outreach Inc., Shelby,

OH

Shelby Valley Volunteer Fire Department

Inc., Robinson Creek, KY

Sheldon Park Neighborhood

Improvement Association, Muskegon,

MI

Shelter Assistance Association Inc., Santa

Rosa, CA

Shelter Island Choristers, Shelter Island,

NY

Shenandoah Bible Ministries, Mt.

Crawford, VA

Shepard Fold Ministries Inc., Phoenix,

NY

Shepherds Rest, Grover Beach, CA

Sherburne Area Youth Soccer

Organization, Sherburne, NY

Sherman Street Housing Corporation,

Gorham, ME

Showtime Express Community Theatre,

Granite City, IL

Shrewsbury School Foundation Inc.,

Washington, DC

Sidney-Shelby County Business

Advisory Council Inc., Sidney, OH

Sierra County Eldercare Services

Corporation, Truth or Consequences,

NM

Sierra Leone Relief Fund, Wilmington,

DE

Sierra Nevada Balalaika Society Inc.,

Reno, NV

Sierra Psychological Services, Reno, NV

Silent Communicator Inc., Keene, TX

Silkworth House Inc., Delmar, NY

Silo Senior Citizens Inc., Durant, OK

Silver Creek Community Services Inc.,

Carey, ID

1999–17 I.R.B.

Silver Moon Vintage Dance Ensemble,

Minneapolis, MN

Silver Sands Productions Inc., Ozone

Park, NY

Silverstar Foundation, Colorado Springs,

CO

Silvertone Ministries Inc., Sugar Land,

TX

Simple Society, Nashua, NH

Single-Parent Family Adoption Society

of West Virginia, Martinsburg, WV

Siouxlands Fantasy Christmas Inc., Sioux

City, IA

Sisters, Lynchburg, VA

Sisters-Crisis Pregnancy Ministry,

Lansing, MI

Six Thirty One Pieta Place Inc., Cranford,

NJ

Sixth Avenue Baptist Education

Foundation, Birmingham, AL

Slatington Community Ambulance

Service Inc., Slatington, PA

Solvak American Foundation for

Education and Science Inc., San

Diego, CA

Small World Child Care Center, Laurel,

MS

Smith Childrens Charities, Greenwich,

CT

W A I T-Workers Against Inhumane

Treatment, Bismarck, ND

W F S Multi-Purpose Center Funding

Corporation, Tuscaloosa, AL

Wadena County Child Safe, Wadena,

MN

Wagarville Nutritional Center Inc.,

Wagarville, AL

Walkersville Track Club Inc.,

Walkersville, MD

Wally Russell Fund, Dallas, TX

Walter Major Institute, Springfield, MO

Walterboro Soccer Club Inc., Walterboro,

SC

Wandas Fund-the Fund for Women

Active in Our Nations Defense,

Denver, CO

Warren Avenue Radio Patrol, Detroit, MI

Washington Chapter of the Foundation

for North American Wild Sheep,

Redmond, WA

Washington DC Association of Urban

Bankers Foundation, Washington, DC

Washington Metropolitan Area Affiliate

of the American, Washington, DC

Washington Refugee Resettlement,

Seattle, WA

21

Watchung Hills Girls Softball

Association Inc., Warren, NJ

Watchung Mountain K-9 Search and

Rescue Inc., Florham Park, NJ

Waterboy Ministries, Las Vegas, NV

Watkins Area Swimming Pool Inc.,

Watkins, MN

Wax Paragon, Saginaw, MI

Way to Communicate, Chicago, IL

We Are the People, Houston, TX

Weatherford Arts Council Association,

Weatherford, OK

Weatherford Youth Camp Inc.,

Weatherford, TX

Wee Share Inc., Birmingham, AL

Weequahic Park Association Inc.,

Newark, NJ

Wellness Community-Inland Valley Inc.,

Upland, CA

Wellspring Incorporated, Alexandria, VA

Were for Kids Organization, Bernardston,

MA

Wesley Daycare Center, Syracuse, NY

West African Child Development Fund

Inc., Silver Spring, MD

West Florin Place, Sacramento, CA

West Georgia Community Development

Corporation, Newnan, GA

West Hardin Senior Center, Hull, TX

West Haven Koaster Kar Race Inc., West

Haven, CT

West Haven Senior Basketball League

Inc., W. Haven, CT

West Hernando Youth Athletic Club Inc.,

Spring Hill, FL

West Michigan-St. Petersburg Region

International Exchange Council, East

Grand Rapids, MI

West Palm Beach Centennial Committee

Inc., West Palm Beach, FL

West Plains Boxing Club, W. Plains,

MO

West Side Industrial Research &

Retention Corporation, Chicago, IL

West Side Neighborhood Development

Association Inc., Newark, NJ

West Side Operation Weed and Seed

Corporation, Grand Rapids, MI

West Texas Freedom Corporation,

Midland, TX

Westbrook Basketball Boosters,

Westbrook, ME

Western New York Amateur Sports

Commission Inc., Buffalo, NY

Western Pennsylvania Combined

Training Association, Pittsburgh, PA

April 26, 1999

IRB 1999-17

4/21/99 11:47 AM

Page 22

Western Pennsylvania Policy Forum,

Erie, PA

Western Pennsylvania Veterans

Development Center, Johnstown, PA

Western Wake Senior Center Inc., Cary,

NC

Westfield Police Association Inc.,

Westfield, MA

Westside Alliance for Revitalization Inc.,

Bartlesville, OK

Westside Community Church,

Bloomington, IN

Westside Constituency Center, Newman,

CA

Westwind Community Programs Inc.,

Richmond, CA

Wharton Business School Club of Long

Island Inc., New York, NY

Whatcom County Fire District 10,

Bellingham, WA

Whatever It Takes Inc., Endicott, NY

April 26, 1999

Wheeler Halfway House Inc., Houston,

TX

Wheeling Works Inc., Wheeling, WV

Whirlwind Ministries, Fort Worth, TX

White County Correctional Ministry,

Searcy, AR

White Deer Search and Rescue, New

Columbia, PA

Whittier Inter-Faith Retirement Center,

Detroit, MI

Whole Village Family Resource Center,

Plymouth, NH

Wholechild Parenting Inc., Denver, CO

Wholeness Institute for Research and

Therapy Inc., Hurst, TX

Wilber D Mills Memorial Foundation,

Bryant, AR

Wilderness Experiences Inc., Kansas

City, KS

Wildlife Center of Houston Inc.,

Houston, TX

22

Wildlife Rehabilitators Association of

Rhode Island Inc., N. Kingston, RI

Wiley Post Flight Number 46 Order of

Daedalians Inc., Tinker AFB, OK

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.

1999–17 I.R.B.

IRB 1999-17

4/21/99 11:47 AM

Page 23

Definition of Terms

Revenue rulings and revenue procedures

(hereinafter referred to as “rulings”)

that have an effect on previous rulings

use the following defined terms to describe the effect:

Amplified describes a situation where

no change is being made in a prior published position, but the prior position is

being extended to apply to a variation of

the fact situation set forth therein. Thus,

if an earlier ruling held that a principle

applied to A, and the new ruling holds

that the same principle also applies to B,

the earlier ruling is amplified. (Compare

with modified, below).

Clarified is used in those instances

where the language in a prior ruling is

being made clear because the language

has caused, or may cause, some confusion. It is not used where a position in a

prior ruling is being changed.

Distinguished describes a situation

where a ruling mentions a previously

published ruling and points out an essential difference between them.

Modified is used where the substance

of a previously published position is

being changed. Thus, if a prior ruling

held that a principle applied to A but not

to B, and the new ruling holds that it ap-

plies to both A and B, the prior ruling is

modified because it corrects a published

position. (Compare with amplified and

clarified, above).

Obsoleted describes a previously published ruling that is not considered determinative with respect to future transactions. This term is most commonly used

in a ruling that lists previously published

rulings that are obsoleted because of

changes in law or regulations. A ruling

may also be obsoleted because the substance has been included in regulations

subsequently adopted.

Revoked describes situations where the

position in the previously published ruling is not correct and the correct position

is being stated in the new ruling.

Superseded describes a situation where

the new ruling does nothing more than

restate the substance and situation of a

previously published ruling (or rulings).

Thus, the term is used to republish under

the 1986 Code and regulations the same

position published under the 1939 Code

and regulations. The term is also used

when it is desired to republish in a single

ruling a series of situations, names, etc.,

that were previously published over a period of time in separate rulings. If the

new ruling does more than restate the

substance of a prior ruling, a combination

of terms is used. For example, modified

and superseded describes a situation

where the substance of a previously published ruling is being changed in part and

is continued without change in part and it

is desired to restate the valid portion of

the previously published ruling in a new

ruling that is self contained. In this case

the previously published ruling is first

modified and then, as modified, is superseded.

Supplemented is used in situations in

which a list, such as a list of the names of

countries, is published in a ruling and

that list is expanded by adding further

names in subsequent rulings. After the

original ruling has been supplemented

several times, a new ruling may be published that includes the list in the original

ruling and the additions, and supersedes

all prior rulings in the series.

Suspended is used in rare situations to

show that the previous published rulings

will not be applied pending some future

action such as the issuance of new or

amended regulations, the outcome of

cases in litigation, or the outcome of a

Service study.

Abbreviations

E.O.—Executive Order.

ER—Employer.

ERISA—Employee Retirement Income Security Act.

EX—Executor.

F—Fiduciary.

FC—Foreign Country.

FICA—Federal Insurance Contribution Act.

FISC—Foreign International Sales Company.

FPH—Foreign Personal Holding Company.

F.R.—Federal Register.

FUTA—Federal Unemployment Tax Act.

FX—Foreign Corporation.

G.C.M.—Chief Counsel’s Memorandum.

GE—Grantee.

GP—General Partner.

GR—Grantor.

IC—Insurance Company.

I.R.B.—Internal Revenue Bulletin.

LE—Lessee.

LP—Limited Partner.

LR—Lessor.

M—Minor.

Nonacq.—Nonacquiescence.

O—Organization.

P—Parent Corporation.

PHC—Personal Holding Company.

PO—Possession of the U.S.

PR—Partner.

PRS—Partnership.

PTE—Prohibited Transaction Exemption.

Pub. L.—Public Law.

REIT—Real Estate Investment Trust.

Rev. Proc.—Revenue Procedure.

Rev. Rul.—Revenue Ruling.

S—Subsidiary.

S.P.R.—Statements of Procedral Rules.

Stat.—Statutes at Large.

T—Target Corporation.

T.C.—Tax Court.

T.D.—Treasury Decision.

TFE—Transferee.

TFR—Transferor.

T.I.R.—Technical Information Release.

TP—Taxpayer.

TR—Trust.

TT—Trustee.

U.S.C.—United States Code.

X—Corporation.

Y—Corporation.

Z—Corporation.

The following abbreviations in current use and formerly used will appear in material published in the

Bulletin.

A—Individual.

Acq.—Acquiescence.

B—Individual.

BE—Beneficiary.

BK—Bank.

B.T.A.—Board of Tax Appeals.

C.—Individual.

C.B.—Cumulative Bulletin.

CFR—Code of Federal Regulations.

CI—City.

COOP—Cooperative.

Ct.D.—Court Decision.

CY—County.

D—Decedent.

DC—Dummy Corporation.

DE—Donee.

Del. Order—Delegation Order.

DISC—Domestic International Sales Corporation.

DR—Donor.

E—Estate.

EE—Employee.

1999–17 I.R.B.

23

April 26, 1999

IRB 1999-17

4/21/99 11:47 AM

Page 24

Numerical Finding List1

Bulletins 1999–1 through 1999–16

Announcements:

99–1, 1999–2 I.R.B. 41

99–2, 1999–2 I.R.B. 44

99–3, 1999–3 I.R.B. 15

99–4, 1999–3 I.R.B. 15

99–5, 1999–3 I.R.B. 16

99–6, 1999–4 I.R.B. 24

99–7, 1999–2 I.R.B. 45

99–8, 1999–4 I.R.B. 24

99–9, 1999–4 I.R.B. 24

99–10, 1999–5 I.R.B. 63

99–11, 1999–5 I.R.B. 64

99–12, 1999–5 I.R.B. 65

99–13, 1999–6 I.R.B. 18

99–14, 1999–7 I.R.B. 60

99–15, 1999–8 I.R.B. 78

99–16, 1999–8 I.R.B. 80

99–17, 1999–9 I.R.B. 59

99–18, 1999–13 I.R.B. 21

99–19, 1999–10 I.R.B. 63

99–20, 1999–11 I.R.B. 53

99–21, 1999–11 I.R.B. 55

99–22, 1999–12 I.R.B. 32

99–23, 1999–15 I.R.B. 7

99–24, 1999–14 I.R.B. 12

99–25, 1999–12 I.R.B. 35

99–26, 1999–14 I.R.B. 20

99–27, 1999–13 I.R.B. 22

99–28, 1999–13 I.R.B. 25

99–29, 1999–13 I.R.B. 25

99–30, 1999–13 I.R.B. 26

99–31, 1999–13 I.R.B. 26

99–32, 1999–14 I.R.B. 20

99–33, 1999–14 I.R.B. 21

99–34, 1999–15 I.R.B. 8

99–35, 1999–14 I.R.B. 22

99–36, 1999–16 I.R.B. 10

99–37, 1999–15 I.R.B. 9

99–38, 1999–15 I.R.B. 9

99–39, 1999–15 I.R.B. 10

99–40, 1999–16 I.R.B. 10

99–41, 1999–16 I.R.B. 10

99–42, 1999–16 I.R.B. 11

99–43, 1999–16 I.R.B. 11

99–44, 1999–16 I.R.B. 12

99–45, 1999–16 I.R.B. 12

99–46, 1999–16 I.R.B. 13

Notices:

99–1, 1999–2 I.R.B. 8

99–2, 1999–2 I.R.B. 8

99–3, 1999–2 I.R.B. 10

99–4, 1999–3 I.R.B. 9

99–5, 1999–3 I.R.B. 10

99–6, 1999–3 I.R.B. 12

99–7, 1999–4 I.R.B. 23

99–8, 1999–5 I.R.B. 26

99–9, 1999–4 I.R.B. 23

99–10, 1999–6 I.R.B. 14

99–11, 1999–8 I.R.B. 56

99–12, 1999–9 I.R.B. 44

99–13, 1999–10 I.R.B. 26

99–14, 1999–11 I.R.B. 7

99–15, 1999–12 I.R.B. 20

99–16, 1999–13 I.R.B. 10

99–17, 1999–14 I.R.B. 6

Notices—Continued

99–18, 1999–16 I.R.B. 4

99–19, 1999–16 I.R.B. 4

Proposed Regulations:

REG–209103–89, 1999–11 I.R.B. 10

REG–209619–93, 1999–10 I.R.B. 28

REG–245562–96, 1999–9 I.R.B. 45

REG–104072–97, 1999–11 I.R.B. 12

REG–114663–97, 1999–6 I.R.B. 15

REG–114664–97, 1999–11 I.R.B. 21

REG–116826–97, 1999–10 I.R.B. 40

REG–118620–97, 1999–9 I.R.B. 46

REG–120168–97, 1999–12 I.R.B. 21

REG–121806–97, 1999–10 I.R.B. 46

REG–100729–98, 1999–14 I.R.B. 9

REG–104924–98, 1999–10 I.R.B. 47

REG–105964–98, 1999–12 I.R.B. 22

REG–106177–98, 1999–12 I.R.B. 25

REG–106219–98, 1999–9 I.R.B. 51

REG–106386–98, 1999–12 I.R.B. 31

REG–106388–98, 1999–11 I.R.B. 27

REG–106564–98, 1999–10 I.R.B. 53

REG–106902–98, 1999–8 I.R.B. 57

REG–106905–98, 1999–11 I.R.B. 39

REG–110524–98, 1999–10 I.R.B. 55

REG–111435–98, 1999–7 I.R.B. 55

REG–113694–98, 1999–7 I.R.B. 56

REG–111435–98, 1999–7 I.R.B. 55

REG–113744–98, 1999–10 I.R.B. 59

REG–114841–98, 1999–11 I.R.B. 41

REG–115433–98, 1999–9 I.R.B. 54

REG–116099–98, 1999–12 I.R.B. 34

REG–116824–98, 1999–7 I.R.B. 57

REG–117620–98, 1999–7 I.R.B. 59

REG–118662–98, 1999–13 I.R.B. 13

REG–119192–98, 1999–11 I.R.B. 45

REG–121865–98, 1999–8 I.R.B. 63

Revenue Procedures:

99–1, 1999–1 I.R.B. 6

99–2, 1999–1 I.R.B. 73

99–3, 1999–1 I.R.B. 103

99–4, 1999–1 I.R.B. 115

99–5, 1999–1 I.R.B. 158

99–6, 1999–1 I.R.B. 187

99–7, 1999–1 I.R.B. 226

99–8, 1999–1 I.R.B. 229

99–9, 1999–2 I.R.B. 17

99–10, 1999–2 I.R.B. 11

99–11, 1999–2 I.R.B. 14

99–12, 1999–3 I.R.B. 13

99–13, 1999–5 I.R.B. 52

99–14, 1999–5 I.R.B. 56

99–15, 1999–7 I.R.B. 42

99–16, 1999–7 I.R.B. 50

99–17, 1999–7 I.R.B. 52

99–18, 1999–11 I.R.B. 7

99–19, 1999–13 I.R.B. 10

99–20, 1999–14 I.R.B. 7

99–22, 1999–15 I.R.B. 5

99–23, 1999–16 I.R.B. 5

Revenue Rulings—Continued

99–7, 1999–5 I.R.B. 4

99–8, 1999–6 I.R.B. 8

99–9, 1999–7 I.R.B. 14

99–10, 1999–10 I.R.B. 10

99–11, 1999–10 I.R.B. 18

99–12, 1999–11 I.R.B. 6

99–13, 1999–10 I.R.B. 4

99–14, 1999–13 I.R.B. 3

99–15, 1999–12 I.R.B. 4

99–16, 1999–13 I.R.B. 5

99–17, 1999–14 I.R.B. 4

99–18, 1999–14 I.R.B. 3

99–19, 1999–15 I.R.B. 3

Treasury Decisions:

8789, 1999–3 I.R.B. 5

8791, 1999–5 I.R.B. 7

8792, 1999–7 I.R.B. 36

8793, 1999–7 I.R.B. 15

8794, 1999–7 I.R.B. 4

8795, 1999–7 I.R.B. 8

8796, 1999–4 I.R.B. 16

8797, 1999–5 I.R.B. 5

8798, 1999–12 I.R.B. 16

8799, 1999–6 I.R.B. 10

8800, 1999–4 I.R.B. 20

8801, 1999–4 I.R.B. 5

8802, 1999–4 I.R.B. 10

8803, 1999–12 I.R.B. 15

8804, 1999–12 I.R.B. 5

8805, 1999–5 I.R.B. 14

8806, 1999–6 I.R.B. 4

8807, 1999–9 I.R.B. 33

8808, 1999–10 I.R.B. 21

8809, 1999–7 I.R.B. 27

8810, 1999–7 I.R.B. 19

8811, 1999–10 I.R.B. 19

8812, 1999–8 I.R.B. 19

8813, 1999–9 I.R.B. 34

8814, 1999–9 I.R.B. 4

8815, 1999–9 I.R.B. 31

8816, 1999–8 I.R.B. 4

8817, 1999–8 I.R.B. 51

Revenue Rulings:

99–1, 1999–2 I.R.B. 4

99–2, 1999–2 I.R.B. 5

99–3, 1999–3 I.R.B. 4

99–4, 1999–4 I.R.B. 19

99–5, 1999–6 I.R.B. 8

99–6, 1999–6 I.R.B. 6

1 A cumulative list of all revenue rulings, revenue

procedures, Treasury decisions, etc., published in

Internal Revenue Bulletins 1998–1 through 1998–52

will be found in Internal Revenue Bulletin 1999–1,

dated January 4, 1999.

April 26, 1999

24

1999–17 I.R.B.

IRB 1999-17

4/21/99 11:47 AM

Page 25

Finding List of Current Action on

Previously Published Items1

Bulletins 1999–1 through 1999–16

Notices:

92–36

Modified by Rev. Proc.

99–23, 1999–16 I.R.B. 5

96–64

Modified by Rev. Proc.

99–23, 1999–16 I.R.B. 5

98–39

Modified by Rev. Proc.

99–23, 1999–16 I.R.B. 5

98–52

Modified by Rev. Proc.

99–23, 1999–16 I.R.B. 5

99–5

Modified by Rev. Proc.

99–23, 1999–16 I.R.B. 5

Revenue Procedures—Continued

98–6

Superseded by

99–6, 1999–1 I.R.B. 187

98–7

Superseded by

99–7, 1999–1 I.R.B. 226

98–8

Superseded by

99–8, 1999–1 I.R.B. 229

98–14

Modified by

99–23, 1999–16 I.R.B. 5

98–22

Modified and amplified by

99–13, 1999–5 I.R.B. 52

98–28

Obsoleted by (except as provided in section 5.02 of)

99–22, 1999–15 I.R.B. 5

Revenue Procedures:

98–56

Superseded by

99–3, 1999–1 I.R.B. 103

78–10

Obsoleted by

99–12, 1999–3 I.R.B. 13

98–63

Modified by announcement

99–7, 1999–2 I.R.B. 45

89–9

Modified by

99–23, 1999–16 I.R.B. 5

Revenue Rulings:

89–13

Modified by

99–23, 1999–16 I.R.B. 5

92–19

Supplemented in part by

99–10, 1999–10 I.R.B. 10

93–39, section 13

Modified by

99–23, 1999–16 I.R.B. 5

94–56

Superseded by

99–9, 1999–2 I.R.B. 17

95–12

Modified by

99–23, 1999–16 I.R.B. 5

97–23

Superseded by

99–3, 1999–1 I.R.B. 103

97–41

Modified by

99–23, 1999–16 I.R.B. 5

98–1

Superseded by

99–1, 1999–1 I.R.B. 6

98–2

Superseded by

99–2, 1999–1 I.R.B. 73

98–3

Superseded by

99–3, 1999–1 I.R.B. 103

98–4

Superseded by

99–4, 1999–1 I.R.B. 115

98–5

Superseded by

99–5, 1999–1 I.R.B. 158

1 A cumulative finding list for previously published

items mentioned in Internal Revenue Bulletins

1998–1 through 1998–52 will be found in Internal

Revenue Bulletin 1999–1, dated January 4, 1999.

1999–17 I.R.B.

25

April 26, 1999

IRB 1999-17

4/21/99 11:47 AM

Page 26

Notes

April 26, 1999

26

1999–17 I.R.B.

IRB 1999-17

4/21/99 11:47 AM

Page 27

IRB 1999-17

4/21/99 11:47 AM

Page 28

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