Bulletin No. 1999–19

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Internal Revenue

bulletin

Bulletin No. 1999–19

May 10, 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.

INCOME TAX

ADMINISTRATIVE

Rev. Rul. 99–22, page 3.

Notice 99–22, page 5.

LIFO; price indexes; department stores. The March

1999 Bureau of Labor Statistics price indexes are accepted

for use by department stores employing the retail inventory

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

for tax years ended on, or with reference to, March 31,

1999.

EMPLOYEE PLANS

Announcement 99–50, page 6.

Effective May 10, 1999, the Service will temporarily discontinue accepting applications for approval of master and prototype plans (M & P) and regional prototype plans pending

the issuance of revised revenue procedures.

EXEMPT ORGANIZATIONS

Announcement 99–51, page 6.

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

Finding Lists begin on page 11.

Department of the Treasury

Internal Revenue Service

Low-income housing tax credit. Resident population figures are reproduced for American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands

for the purpose of determining their 1999 calendar year

state housing credit ceiling under section 42(h) of the Code

and private activity bond volume cap under section 146 of

the Code. Notice 94–16 obsoleted.

Announcement 99–52, page 9.

This document contains a correction to Announcement

99–36, 1999–16 I.R.B. 10, relating to the decision by the

Service to continue to publish the cumulative bulletin but in a

new format.

Mission of the Service

and by applying the tax law with integrity and fairness to

all.

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

Introduction

The Internal Revenue Bulletin is the authoritative instrument

of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service

and for publishing Treasury Decisions, Executive Orders, Tax

Conventions, legislation, court decisions, and other items of

general interest. It is published weekly and may be obtained

from the Superintendent of Documents on a subscription

basis. Bulletin contents are consolidated semiannually into

Cumulative Bulletins, which are sold on a single-copy basis.

dures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances

are substantially the same.

The Bulletin is divided into four parts as follows:

Part I.—1986 Code.

This part includes rulings and decisions based on provisions

of the Internal Revenue Code of 1986.

It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application

of the tax laws, including all rulings that supersede, revoke,

modify, or amend any of those previously published in the

Bulletin. All published rulings apply retroactively unless otherwise indicated. Procedures relating solely to matters of internal management are not published; however, statements

of internal practices and procedures that affect the rights

and duties of taxpayers are published.

Part II.—Treaties and Tax Legislation.

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

Tax Conventions, and Subpart B, Legislation and Related

Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.

To the extent practicable, pertinent cross references to

these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rulings. Bank Secrecy Act Administrative Rulings

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

Assistant Secretary (Enforcement).

Revenue rulings represent the conclusions of the Service on

the application of the law to the pivotal facts stated in the

revenue ruling. In those based on positions taken in rulings

to taxpayers or technical advice to Service field offices,

identifying details and information of a confidential nature

are deleted to prevent unwarranted invasions of privacy and

to comply with statutory requirements.

Part IV.—Items of General Interest.

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

Rulings and procedures reported in the Bulletin do not have

the force and effect of Treasury Department Regulations,

but they may be used as precedents. Unpublished rulings

will not be relied on, used, or cited as precedents by Service

personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and proce-

The first Bulletin for each month includes a cumulative index

for the matters published during the preceding months.

These monthly indexes are cumulated on a semiannual basis,

and are published in the first Bulletin of the succeeding semiannual period, respectively.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402.

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

Section 472.—Last-in, First-out

Inventories

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

LIFO; price indexes; department

stores. The March 1999 Bureau of Labor

Statistics price indexes are accepted for

use by department stores employing the

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

for tax years ended on, or with reference

to, March 31, 1999.

Rev. Rul. 99–22

The following Department Store Inventory Price Indexes for March 1999

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

Internal Revenue Service, under

§ 1.472–1(k) of the Income Tax Regulations and Rev. Proc. 86–46, 1986–2 C.B.

739, for appropriate application to inventories of department stores employing

the retail inventory and last-in, first-out

inventory methods for tax years ended

on, or with reference to, March 31, 1999.

The Department Store Inventory Price

Indexes are prepared on a national basis

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

the major groups - soft goods, durable

goods, and miscellaneous goods, and (c) a

store total, which covers all departments,

including some not listed separately, except for the following: candy, food,

liquor, tobacco, and contract departments.

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE

INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS

(January 1941 = 100, unless otherwise noted)

Mar.

1998

Mar.

1999

Percent Change

from Mar.1998

to Mar. 19991

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

538.9

636.1

658.7

898.3

620.5

576.3

308.1

556.8

429.5

636.5

608.1

501.4

993.0

796.7

932.4

673.0

583.1

818.3

237.4

73.4

106.7

134.5

107.5

555.8

619.9

651.0

887.6

617.2

577.4

321.4

557.4

408.4

623.1

611.1

488.6

977.8

785.7

957.3

690.9

602.4

803.5

233.9

67.9

99.9

128.5

107.4

3.1

–2.5

–1.2

–0.5

0.2

4.3

0.1

–4.9

–2.1

0.5

–2.6

–1.5

–1.4

2.7

3.3

–1.8

–1.5

–7.5

–6.4

–4.5

–0.1

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

612.2

603.6

–1.4

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

463.0

454.6

–1.8

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

110.4

105.1

–4.8

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

558.9

548.5

–1.9

Groups

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

2 Indexes on a January 1986=100 base.

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

1999–19 I.R.B.

May 10, 1999

DRAFTING INFORMATION

The principal author of this revenue

ruling is Richard C. Farley, Jr. of the Office of Assistant Chief Counsel (Income

Tax and Accounting). For further information regarding this revenue ruling, contact Mr. Farley on (202) 622-4970 (not a

toll-free call).

May 10, 1999

1999–19 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous

Low-Income Housing Tax

Credit—1999 Possessions

Population Figures

Notice 99–22

This notice obsoletes Notice 94–16,

1994–1 C.B. 337, and publishes the Bureau of the Census population figures for

American Samoa, Guam, the Northern

Mariana Islands, Puerto Rico, and the

U.S. Virgin Islands (the Possessions) for

use in calculating the 1999 calendar year

population-based component of the state

housing credit ceiling (Credit Ceiling)

under § 42(h)(3)(C)(i) of the Internal

Revenue Code and the 1999 calendar year

volume cap (Volume Cap) under § 146.

Notice 94–16 provides resident population figures for the Possessions to use in

calculating their Credit Ceilings and Vol-

1999–19 I.R.B.

ume Caps for the 1994 calendar year and

subsequent calendar years until superseded by release of new population figures by the Bureau of the Census.

The Bureau of the Census has released

in CB98–219 and CB98–241 new estimates of the resident population of the

Possessions. The new resident population

figures of the Possessions, reprinted

below, must be used by the Possessions in

determining their 1999 Credit Ceilings

and Volume Caps.

Resident Population Figures

Possession

Population

American Samoa

Guam

Northern Mariana Islands

Puerto Rico

U.S. Virgin Islands

62,093

149,101

66,611

3,860,091

118,382

For calendar years after 1999, the resident population figures of the Possessions

will be included in the annual Internal

Revenue Service publication providing

the most recent estimates of the resident

population for the states.

The principal authors of this notice are

Christopher J. Wilson of the Office of Assistant Chief Counsel (Passthroughs and

Special Industries) and Timothy L. Jones

of the Office of Assistant Chief Counsel

(Financial Institutions and Products). For

further information regarding this notice

contact Mr. Wilson on (202) 622-3040

(not a toll-free call).

May 10, 1999

Part IV. Items of General Interest

Temporary Closing of M&P

and Regional Prototype

Plan Programs

Announcement 99–50

The Service is revising and improving

the master and prototype (M&P) and regional prototype plan programs. Revised

procedures are expected to be published

soon. In the interim, the Service will temporarily discontinue accepting applications for approval of M&P and regional

prototype plans, effective May 10, 1999.

At the present time, the Service’s review of applications for approval of M&P

and regional prototype plans generally

takes into account recent changes in law,

but does not consider the provisions of the

Small Business Job Protection Act of

1996, Pub. L. 104–88 (SBJPA), that are

effective in 1999 and later (that is, the

nondiscrimination safe harbors under

§ 401(k)(12) and § 401(m)(11) of the Internal Revenue Code and the repeal of the

combined plan limitation under § 415(e)).

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

as modified by Rev. Proc. 98–53,

1998–40 I.R.B. 9. The Service is currently developing procedures that will

allow sponsors to request approval letters

for these plans which will take into account all recent changes in law, including

the provisions of SBJPA that are effective

in 1999 and later. Because the Service

has consolidated its determination letter

program, it is no longer necessary or practical to maintain two separate programs

for the approval of prototype plans.

Therefore, it is expected that the new procedures will combine the M&P and regional prototype plan programs into a single program that will be administered by

the Service’s headquarters office. This

single program will provide a uniform set

of procedures that will apply to all prototype plans, regardless of whether the

plans are sponsored by organizations that

currently may sponsor M&P plans or by

individuals or organizations that currently

may sponsor regional prototype plans.

The Service expects to publish these

new procedures soon. In anticipation of

this, effective May 10, 1999, it will not

accept applications for approval of M&P

and regional prototype plans until further

May 10, 1999

notice. The Service will continue to

process all M&P and regional prototype

plan applications submitted before May

10, 1999 in accordance with Rev. Proc.

98–14, as modified by Rev. Proc. 98–53.

Any opinion or notification letter issued

in response to a pre-May 10, 1999 application will not take into account the provisions of SBJPA that are effective in

1999 and later, even if the letter is issued

after the date that the Service starts accepting applications under the new procedures. Alternatively, sponsors may withdraw any pending application relating to

an M&P or regional prototype plan. In

this case, the user fee will not be refunded. However, if a new application

pertaining to the same plan is filed under

the new procedures on or before December 31, 1999, the user fee for the new application will be waived. The sponsor

should indicate on the face of the application form that the user fee is being waived

pursuant to Announcement 99–50.

Foundations Status of Certain

Organizations

Announcement 99–51

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:

Able House Inc., Los Angeles, CA

Arizona Youthline, Phoenix, AZ

Claypole Publishers Inc., Princeton, NJ

Creative Parents Television, Carmichael,

Crescent City Community Housing

Corporation, New Orleans, LA

D A R E for the Kids of Apache Junction

Inc., Apache Junction, AZ

East Grasslands Waterfowl Habitat

Association, Modesto, CA

Extended Academics Inc., Bay Minette,

First Quartet Inc., Atlanta, GA

Foundation for Regional Transit,

Palo Alto, CA

Friends of the Columbia County Library

Chapter of Suwanne Regional,

Lake City, FL

Harmon Glass Foundation for Highway

Safety Inc., Minneapolis, MN

Help Ourselves Project, Philadelphia, PA

Korean Community Talk Line,

Sacramento, CA

Left Coast Crime Conference Inc.,

Phoenix, AZ

Living Traditions Inc., New York, NY

Lonsdale Improvement Organization Inc.,

Knoxville, TN

Mansfield Families, Mansfield, MA

Manufacturing Technology Initiative,

San Jose, CA

Medical Psychophysics Research

Institute Inc., Las Vegas, NV

Metropolitan Innovations Incorporated,

Minneapolis, MN

Mohawk Valley Breastfeeding Network,

Utica, NY

Mount Zion Area Economic

Development Corporation, Mount

Zion, IL

Multi-Cultural Visions, Phoenix, AZ

New Hope Arts Commission Inc.,

New Hope, PA

New Hope of Florence Inc., Florence, SC

New Hope Outreach Ministries, Baton

Rouge, LA

New Horizons Development Corporation,

Brooklyn, NY

New Jersey Coalition Against Sexual

Assault, New Brunswick, NJ

New Jersey Disability and Non-Profit

Micro-Loan Fund Inc., Trenton, NJ

New Joshua Center for Hope, Cleveland,

New Life Cultural Society, Northbrook,

New Life Dimensions Ministries,

Scottsdale, AZ

New Life Intracoastal Community,

New Orleans, LA

1999–19 I.R.B.

New Life Newspapers, Seattle, WA

New Life Options for the Vital Elderly

Inc., Antioch, IL

New London Community Center Inc.,

New London, CT

New Lothrop Teen Center Inc.,

New Lothrop, MI

New Mexico Center for Loss and Grief,

Santa Fe, NM

New Mexico Housing Alliance,

Albuquerque, NM

New Mexico Law Enforcement Football

League, Albuquerque, NM

New Mt. Zion Family Life Center Inc.,

West Memphis, AR

New Music Institute of Kansas City Inc.,

Westwood, KS

New Name of the Game Golf Foundation

Inc., Pittsburgh, PA

New Orleans Rhythm & Dance Ensemble

Inc., New Orleans, LA

New Pisgah Haven Homes, Chicago, IL

New Press, Rego Park, NY

New Providence Sports Club Inc., New

Providence, NJ

New Refuge House Inc., Buffalo, NY

New Renaissance of Hope Inc., Detroit,

New Spirit Evangelistic Ministries,

Houston, TX

New Wine Ministries, West Monroe, LA

New Wings Ministries, Vestal. NY

New World Studios Incorporated,

Springfield, OR

New York Alliance of Black School

Educators Incorporated, Brooklyn,

New York Association of Psychiatric

Rehabilitation Services Inc., Syracuse,

New York Drug Enforcement Agents

Scholarship Foundation Inc.,

New York, NY

New York International African Institute,

Buffalo, NY

New York Knights of the Grip Nassau Co

Inc., Woodbury, NY

New York Labor History Association

Incorporated, New York, NY

New York State Council for Education in

Agriculture, Caneadea, NY

New Yorkers for Companion Animals

Inc., New York, NY

Newberry County Project Life Inc.,

Newberry, SC

Newburgh Heritage Trust Inc.,

Newburgh, ME

1999–19 I.R.B.

Newburgh Karate Club, Newburgh, IN

Newport Foundation Incorporated,

Windsor Locks, CT

Newport Preservation Alliance, Newport,

Newport Volunteer Firefighters & Rescue

Association, Newport, NC

Newton Rotary Club Endowment Inc.,

Newton, NJ

Next Progressive Inc., Washington, DC

Next Stage Productions Inc., Port

Washington, NY

NFTE Solutions Inc., Bronx, NY

NIA Hope Inc., Philadelphia, PA

Night and Day Group, Euclid, OH

NIOTA Flood Control Council, Nauvoo,

Nirmala Foundation, Pittsburgh, PA

Nisswi Ishkoden, Grand Rapids, MI

NLF Education Foundation Inc., Dallas

Ft. Worth, TX

Noble County AIDS Task Force Inc.,

Kendallville, IN

Noblesville Cultural Arts Commission

Inc., Noblesville, IN

Nolan Outreach, Baton Rouge, LA

Nomad Cincinnati, OH

Nome Library Foundation Inc., Nome,

Non-Profit Import Exchange Inc.,

St. Charles, MO

Nordenlight Love for Animals Inc.,

Upper Saddle River, NJ

Nordyne Flood Relief Fund, St. Louis,

Norfolk Youth Association Inc., Norfolk,

North Alexander School Association Inc.,

Washington, GA

North American Chinese Christian

Literature Ministry, Chicago, IL

North American Chinese Martial Arts

Federation Inc., Baltimore, MD

North American Chinese Sociologist

Association, Poway, CA

North American Jat Charities Inc.,

Freehold, NJ

North American Snake Institute Inc.,

Jacksonville, FL

North Area Adult Respite Center, North

Syracuse, NY

North Area Athletic Club Inc., Liverpool,

North Attleboro Educational Foundation

Inc., N. Attleboro, MA

North Augusta High School Foundation,

North Augusta, SC

North Bennington Independent Artists

Space, N. Bennington, VT

North Carolina Alliance for

Transportation Reform, Durham, NC

North Carolina Depressive & ManicDepressive Association, Raleigh, NC

North Carolina Injured Workers Network,

Granite Falls, NC

North Central Recycling Inc., Concordia,

North Country Fiber Fair Inc., Valley

City, ND

North Dade Community Development

Corporation, Miami, FL

North Dakota Peace Officers Foundation

Inc., West Fargo, ND

North Hill Apartments Inc., Springfield,

North Kansas City Historical Society,

North Kansas City, MO

Northland Village Residents Council,

Dayton, OH

North Mobile Boxing Club, Satsuma,

North Newstead Merchants Association,

St. Louis, MO

North Pole Youth Sports Council Inc.,

N. Pole, AK

North Texas Kids Services Inc., Dallas,

North Texas Tres Dias, Dallas, TX

North Tulsa Neighborhood Development

Corporation, Tulsa, OK

Northampton Childrens Theatre Inc.,

Northampton, MA

Northampton Soccer Club Inc.,

Northampton, MA

Northeast Community Drill Team,

Houston, TX

Northeast Hawkwatch Inc., Southwick,

Northeast Metro Pageant Inc., Ham Lake,

Northeast Minnesota Housing

Partnership, Virginia, MN

Northeast Mobile Search & Rescue Inc.,

Ballston Lake, NY

Northeast Regional Tenant Community

Association Inc., Baltimore, MD

Northeast Sports Center of Amherst,

Nelson, NH

Northeast Tarrant Foundation, Haltom

City, TX

Northern Area Association, Detroit, MI

Northern California Family Life Skills

Learning Ctr & Domestic, Redding,

May 10, 1999

Northern California Swim League, Galt,

Northern Lights Alternatives-Capital

District, Delmar, NY

Northern Lights Jr. Drum and Bugle

Corps Association, Longview, WA

Northern Nevada Foundation Inc., Reno,

Northern Rockies Heritage Center Inc.,

Missoula, MT

Northern Virginia Tennis Patrons

Association Inc., Fairfax, VA

Northern York County Historical and

Preservation Society Inc., York, PA

Northern Youth Recreation Association,

Inc., Dillsburg, PA

Northland Military Museum, Sebeka,

Northland Vietnam Veterans Memorial

Foundation, Duluth, MN

Northshore Hellenic Womens Guild Inc.,

Danvers, MA

Northside Neighbors Inc., Wadsworth,

Northwest Babe Ruth League,

Bakersfield, CA

Northwest Community Projects Inc.,

Arlington Heights, IL

Northwest Educational Foundation Inc.,

Grand Island, NE

Northwest Health Center, Santa Maria,

Northwest Hope Ministries for Persons

with Disabilities, Troutdale, OR

Northwest Omaha Renegades Youth

Athletic Association Inc., Omaha, NE

Northwest United Soccer Club, Crystal

Lake, IL

Norwegian Emigrant Museum, Fridley,

Novalight Arts Inc., New York, NY

Now Detroit Community Organization,

Detroit, MI

NSSC National Space Science Center

Inc., Scottsdale, AZ

Nuage Life Style Balance Inc., New

York, NY

Nucleus Inc., Franklin, NE

Nuestra Casa, San Jose, CA

Nulife Elder Care Home Inc., Oakwood

Village, OH

Nur-Ain Jahan of the Southern Tier,

Binghamton, NY

Nurses for National Health Care –

Midwest, Naperville, IL

Nursing Research Institute of the

Southwest Inc., Denton, TX

May 10, 1999

Nutrition and Fitness Research

Associates Inc., Philadelphia, PA

Nysmith Fund Inc., Herndon, VA

Parkville School-Age Child Care Inc.,

Hartford, CT

Rights and Resources, Arlington, VA

Rio Bravo Association, Edinburg, TX

Rio Grande Counseling Center, Los

Fresnos, TX

Ripley Band Boosters, Ripley, OH

Ripley County Child Abuse Prevention

Council, Versailles, IN

Ripley Youth Basketball League Inc.,

Ripley, WV

Rise & Shine Development Center,

Boone, NC

Rising Star Child Care and Development

Center Inc., Raleigh, NC

Rising Stars Early Learning Centers Inc.,

Baltimore, MD

Rising Sun Energy Center, Santa Cruz,

Rita Ethington Deliverance Ministry of

Helps Inc., Detroit, MI

River Heights Apartments Inc.,

Starkville, MS

River Oaks Arts, Oak Park, IL

River of Life Ministries Inc., Macon, GA

River Road Band Booster Association,

Amarillo, TX

River Valley Childrens Home Inc.,

Minneapolis, MN

Riverdale Volunteer Fire Company Inc.,

Riverdale, NJ

Riverside Arts Center, Riverside, IL

Riverside Tournament Association,

Littleton, CO

Riviera Kleberg County Scholarship

Fund Inc., Riviera, TX

Ro Shea Recovery Center, Sandhill, MS

Roaring Twenties of Rockford Inc.,

Rockford, IL

Robert Carter House Inc., Houston, TX

Robert Gamez Foundation, Las Vegas,

Robert Hammond Ministries Inc.,

Wichita, KS

Robert R Mitchell Scholarship Fund,

Akron, OH

Rochelle Can, Oregon, IL

Rochester School of the Arts, Rochester,

Rock-on Camp Inc., Barrington, IL

Rockaway Beach Community

Development Association, Rockaway

Beach, MO

Rockdale Swimming Inc., Conyers, GA

Rocky Mountain Care-Holladay Inc., Salt

Lake City, UT

Rocky Mountain Division of the

International Association for, Denver,

Rocky Mountain Repertory Ensemble,

Broomfield, CO

Roff Educational Enrichment

Foundation, Roff, OK

Roger D Watkins Evangelistic

Association Inc., Crossville, AL

Rolling Hills Ministry Inc., Alvord, TX

Ropes Course in Support of Project Dare,

Cary, NC

Rosedale Historical Society Inc.,

Rosedale, MD

Rosemary Hubbell Wirkus Memory

Disorder Residential Facility Inc.,

Chiegiak, AK

Rosemary Institute for Public

Involvement Inc., Portland, OR

Roseville Public Schools Foundation,

Roseville, IL

Roslyn Nadel Scholarship for Disabled

Persons Inc., Florham Park, NJ

Rowan County Christmas Inc.,

Morehead, KY

Rowlett Animal Adoption Center,

Rowlett, TX

Rowlett Needy Childrens Fund, Dallas,

Royal Court of the Golden Spike Empire,

Salt Lake, UT

Royal Heights Housing Inc., Dunn, NC

Royal Oak Foundation for Public

Education, Royal Oak, MI

RSD Charitable Trust of Michigan, Ann

Arbor, MI

Ruach Ministries Inc., Ramsey, NJ

Rubicon Productions Inc., Lexington, VA

Rugby Volunteer Rescue Squad and Fire

Department Inc., Mount of Wilson, VA

Ruidoso Junior Golf Inc., Ruidoso, NM

Rural America Network, Newport, WA

Rural Minnesota Community Computer

Consortium Inc., Princeton, NM

Rural Partners, Springfield, IL

Russell County Medical Center Auxiliary,

Lebanon, VA

Russian American Development

Corporation, Cheverly, MD

Russian-American Fund for Orthodoxy,

New York, NY

Russian Ballet Institute Inc., Salt Lake

City, UT

Russian Business Foundation Ltd.,

Osterville, MA

1999–19 I.R.B.

Russian Educational Foundation Inc.,

Houston, TX

Ruth Bass Memorial Foundation Inc.,

W. Orange, NJ

Ruth Taylor Williams Foundation,

Las Vegas, NV

Ryan Lynch Memorial Polocrosse

Foundation, Aspen, CO

Rye Education Fund Inc., Rye, NY

Side By Side, E. Williston, NY

Summit Vietnam Veterans Foundation

Corp., Mogadore, OH

Teacher Mommy Day Care Inc., Monsey,

The Japanese Folk Dance Institute of N Y

Inc., New York, NY

The Parks Project, Sacramento, CA

Unlimited Minds Inc., Albany, NY

Vallejo Affordable Housing Inc., Vallejo,

1999–19 I.R.B.

Venezuela en Danzas, Houston, TX

We Care Foundation Inc., Baton Rouge,

Westside Track Club Inc., Louisville, KY

White Oak Mountain Ministries Inc.,

Harrison, TN

63rd Ohio Volunteer Infantry Regiment,

Chillicothe, Oh

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 clas-

sification of foundation status in the Internal Revenue Bulletin.

Cumulative Bulletin Continued

in a New Format; Correction

Announcement 99–52

Announcement 99–36, 1999–16 IRB

10, is missing text in the first column,

item #1, on page 10. The second sentence

in the paragraph reads:

“Volume 1 will contain the first 26 issues of the IRB (1998–27 to 1998–52).”

The text is corrected as follows:

“Volume 1 will contain the first 26 issues of the IRB (1998–1 to 1998–26), and

Volume 2 will contain the second 26 issues of the IRB (1998–27 to 1998–52).”

May 10, 1999

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.

May 10, 1999

1999–19 I.R.B.

Numerical Finding List1

Bulletins 1999–1 through 1999–18

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

99–48, 1999–17 I.R.B. 20

99–49, 1999–18 I.R.B. 7

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

Notices—Continued

99–16, 1999–13 I.R.B. 10

99–17, 1999–14 I.R.B. 6

99–18, 1999–16 I.R.B. 4

99–19, 1999–16 I.R.B. 4

99–20, 1999–17 I.R.B. 16

99–21, 1999–17 I.R.B. 19

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

99–21, 1999–17 I.R.B. 18

99–22, 1999–15 I.R.B. 5

99–23, 1999–16 I.R.B. 5

Revenue Rulings—Continued

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

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

99–20, 1999–18 I.R.B. 5

99–21, 1999–18 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

8818, 1999–17 I.R.B. 3

Revenue Rulings:

99–1, 1999–2 I.R.B. 4

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.

1999–19 I.R.B.

May 10, 1999

Finding List of Current Action on

Previously Published Items1

Bulletins 1999–1 through 1999–18

Notices:

92–36

Modified by