us-irs-announcements-irb-2000-46-pdf•Internal Revenue Bulletin 2000-46 (PDF rendition): IRS Announcements
Internal Revenue Bulletin 2000-46 (PDF rendition): IRS Announcements
us-irs-announcements-irb-2000-46-pdfInternal Revenue Bulletin 2000-46 (PDF rendition): IRS AnnouncementsGuidance
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SPECIAL ANNOUNCEMENT Announcement 2000–93, page 487. The Thirteenth Annual Institute on Current Issues in International Taxation, jointly sponsored by the Internal Revenue Service and The George Washington University, will be held on December 7 and 8, 2000, at the J.W. Marriott Hotel in Washington, DC. INCOME TAX Rev. Rul. 2000–51, page 469. LIFO; price indexes; department stores. The September 2000 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, September 30, 2000. T.D. 8906, page 470. Final regulations under section 752 of the Code relate to the allocation of nonrecourse liabilities by a partnership. Rev. Proc. 2000–47, page 482. This procedure informs the public of the Service’s decision to reconsider its interpretation of section 29(c)(1)(C) of the Code and to issue no further private letter rulings regarding whether a solid fuel (other than coke and solid fuel produced from waste coal fines) is a qualified fuel under section 29(c)(1)(C) pending its reconsideration. Public comments regarding the proper interpretation of section 29(c)(1)(C) are requested by November 27, 2000. Rev. Proc. 2000–3 amplified. EXEMPT ORGANIZATIONS Announcement 2000–91, page 484. A list is given of organizations now classified as private foun- dations. EMPLOYMENT TAX Notice 2000–47, page 480. This notice provides tables that show the amount of an indi- vidual’s income that is exempt from a notice of levy used to collect delinquent tax in 2001. TAX CONVENTIONS Page 475. The bilateral agreement between the United States and the State of Bahrain, providing for the reciprocal tax exemption of income from the international operation of ships and/or aircraft, is set forth. ADMINISTRATIVE Announcement 2000–92, page 486. This document contains corrections to proposed regula- tions (REG–117162–99, 2000–15, I.R.B. 871) relating to the tax treatment of cafeteria plans. Internal Revenue bbuulllleettiinn Bulletin No. 2000–46 November 13, 2000 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. Department of the Treasury Internal Revenue Service Finding Lists begin on page ii. November 13, 20002000–46 I.R.B. The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing offi- cial rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conventions, legislation, court decisions, and other items of general interest. It is published weekly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents are consolidated semiannually into Cumulative Bulletins, which are sold on a single-copy basis. It is the policy of the Service to publish in the Bulletin all sub- stantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of in- ternal management are not published; however, statements of internal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identifying details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying pub- lished rulings and procedures, the effect of subsequent leg- islation, regulations, court decisions, rulings, and proce- dures must be considered, and Service personnel and oth- ers concerned are cautioned against reaching the same con- clusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions, and Subpart B, Legislation and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Sub- parts. Also included in this part are Bank Secrecy Act Admin- istrative Rulings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Secretary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbar- ment and suspension lists, and announcements. The first Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the first Bulletin of the succeeding semi- annual period, respectively. The IRS Mission Provide America’s taxpayers top quality service by help- ing them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. Introduction The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. For sale by the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. 2000–46 I.R.B.469November 13, 2000 Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 29.—Credit for Producing Fuel From a Nonconventional Source May a taxpayer obtain a private letter ruling under section 29(c)(1)(C) that a solid fuel (other than coke and solid fuel produced from waste coal fines) is a qualified fuel? See Rev. Proc. 2000–47, page 482. Section 472.—Last-in, First-out Inventories 26 CFR 1.472–1: Last-in, first-out inventories. LIFO; price indexes; department stores. The September 2000 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, September 30, 2000. Rev. Rul. 2000–51 The following Department Store Inven- tory Price Indexes for September 2000 were issued by the Bureau of Labor Statis- tics. The indexes are accepted by the In- ternal Revenue Service, under § 1.472–1(k) of the Income Tax Regula- tions and Rev. Proc. 86–46, 1986–2 C.B. 739, for appropriate application to inven- tories of department stores employing the retail inventory and last-in, first-out in- ventory methods for tax years ended on, or with reference to, September 30, 2000. The Department Store Inventory Price Indexes are prepared on a national basis and include (a) 23 major groups of depart- ments, (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, ex- cept for the following: candy, food, liquor, tobacco, and contract departments. November 13, 20004702000–46 I.R.B. DRAFTING INFORMATION The principal author of this revenue rul- ing is Alan J. Tomsic of the Office of Asso- ciate Chief Counsel (Income Tax and Ac- counting). For further information regarding this revenue ruling, contact Mr. Tomsic at (202) 622-4970 (not a toll-free call). Section 752.—Treatment of Certain Liabilities 26 CFR 1.752–3: Partner’s share of nonrecourse liabilities. T.D. 8906 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 Allocation of Partnership Debt AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. SUMMARY: This document contains final regulations relating to the allocation of non- recourse liabilities by a partnership. The final regulations revise tier three of the three-tiered allocation structure contained in the current nonrecourse liability regula- tions, and also provide guidance regarding the allocation of a single nonrecourse liabil- ity secured by multiple properties. DATES: Effective Date: These regulations are effective October 31, 2000. Applicability Date: For dates of applica- bility of these regulations, see §1.752– 5(a). FOR FURTHER INFORMATION CON- TACT: Dan Carmody, (202) 622-3070 (not a toll-free number). BUREAU OF LABOR STATISTICS, DEPARTMENT STORE INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS (January 1941 = 100, unless otherwise noted) Percent Change GroupsSep.Sep.from Sep. 1999 19992000to Sep. 2000 1 1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 543.6496.1-8.7 2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . 629.3609.3-3.2 3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . 645.4660.62.4 4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 883.1913.63.5 5. Infants’ Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 633.6633.70.0 6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . 566.1584.93.3 7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . 326.7342.9 5.0 8. Women’s and Girls’ Accessories . . . . . . . . . . . . . . 536.2540.00.7 9. Women’s Outerwear and Girls’ Wear . . . . . . . . . . . 408.9400.2-2.1 10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . 619.3606.3-2.1 11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . 618.4624.81.0 12. Boys’ Clothing and Furnishings . . . . . . . . . . . . . . 498.5481.7 -3.4 13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 960.4933.7-2.8 14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 767.0788.02.7 15. Toilet Articles and Drugs. . . . . . . . . . . . . . . . . . . . 982.5969.9-1.3 16. Furniture and Bedding. . . . . . . . . . . . . . . . . . . . . . 696.6707.21.5 17. Floor Coverings. . . . . . . . . . . . . . . . . . . . . . . . . . . 602.8614.82.0 18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 796.1777.5-2.3 19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . 235.7230.6-2.2 20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . 64.658.3-9.8 21. Recreation and Education 2 . . . . . . . . . . . . . . . . . . 96.492.3-4.3 22. Home Improvements 2 . . . . . . . . . . . . . . . . . . . . . . 127.8128.30.4 23. Auto Accessories 2 . . . . . . . . . . . . . . . . . . . . . . . . . 107.1106.5-0.6 Groups 1 - 15: Soft Goods . . . . . . . . . . . . . . . . . . . . . 605.2600.3-0.8 Groups 16 - 20: Durable Goods . . . . . . . . . . . . . . . . . 450.6438.9-2.6 Groups 21 - 23: Misc. Goods 2 . . . . . . . . . . . . . . . . . . . 102.799.8-2.8 Store Total 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 547.0539.4-1.4 1 Absence of a minus sign before the percentage change in this column signifies a 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. 2000–46 I.R.B.471November 13, 2000 SUPPLEMENTARY INFORMATION: Introduction This document revises §1.752–3 of the Income Tax Regulations (26 CFR part 1) relating to the allocation by a partnership of nonrecourse liabilities. Background On January 13, 2000, the IRS pub- lished in the Federal Registera notice of proposed rulemaking (REG–103831–99, 2000–5 I.R.B. 452 [65 F.R. 2084]) to pro- vide guidance relating to the allocation of nonrecourse liabilities by a partnership. The IRS and Treasury received public comments concerning the proposed regu- lations, and a public hearing was held on May 3, 2000. After consideration of the comments received, the proposed regula- tions are adopted as revised by this Trea- sury decision. Explanation of Revisions and Summary of Comments 1. In General Treasury regulation §1.752–3 currently provides a three-tiered system for allocat- ing nonrecourse liabilities. The three- tiered system applies sequentially. Under the first tier, a partner is allocated an amount of the liability equal to that part- ner’s share of partnership minimum gain under section 704(b). See §1.704–2 (g)(1). Under the second tier, to the ex- tent the entire liability has not been allo- cated under the first tier, a partner will be allocated an amount of liability equal to the gain that partner would be allocated under section 704(c) if the partnership disposed of all partnership property sub- ject to one or more nonrecourse liabilities in full satisfaction of the liabilities (sec- tion 704(c) minimum gain). Under the third tier, a partner is allocated any excess nonrecourse liabilities (i.e., nonrecourse liabilities in excess of the portion alloca- ble in the first and second tiers) under one of several methods (i.e., partner’s share of profits or certain reasonably ex- pected deductions) that the partnership may choose. The proposed regulations modified the third tier to allow an additional method under which a partnership may allocate an excess nonrecourse liability based on the excess section 704(c) gain (i.e., the excess of the amount of section 704(c) built-in gain attributable to an item of property over the amount of section 704(c) minimum gain on that property) attributable to the properties that are sub- ject to the liability. In addition, for pur- poses of determining section 704(c) mini- mum gain under the second tier, the proposed regulations provided that if a partnership holds multiple properties sub- ject to a single liability, the liability may be allocated among the properties based on any reasonable method. A method is not reasonable under the proposed regu- lations if it allocates to any property an amount that exceeds the fair market value of the property. 2.Allocation of Debt in Accordance With Reverse Section 704(c) Gain One commentator noted that the addi- tional method provided in the proposed regulations under the third tier covers only built-in gain on section 704(c) prop- erty, which includes built-in gain (i.e., book value minus adjusted basis) attribut- able to contributed property, but not built- in gain attributable to property subject to a revaluation (pursuant to §1.704–1(b)(2)(iv)(f)) (i.e., reverse sec- tion 704(c) gain). The commentator noted that this distinction is not made in allocating nonrecourse liabilities in accor- dance with section 704(c) minimum gain under the second tier and questioned the policy reason for excluding the reverse section 704(c) gain in applying the third tier. In response to this comment, the final regulations provide that an excess nonrecourse liability may be allocated under the third tier in accordance with ex- cess section 704(c) gain as well as excess reverse section 704(c) gain (i.e., the ex- cess of the amount of reverse section 704(c) gain attributable to an item of property over the section 704(c) mini- mum gain on that property) with respect to property that is subject to such liability. 3. Interplay With the Disguised Sales Rules One commentator noted that the pro- posed amendments to §1.752–3 would impact the disguised sales rules relating to transfers of encumbered property. The disguised sale rules treat a contribution of property encumbered by a “non-quali- fied” liability (generally, a liability in- curred within two years of the contribu- tion to the partnership that is incurred in anticipation of such contribution) as a disguised sale to the extent that the amount of the liability exceeds the con- tributing partner’s share of the liability immediately after the contribution. Sec- tion 1.707–5(a)(2)(ii) provides that a partner’s share of a nonrecourse liability, for purposes of the disguised sale rules, is determined by applying the same per- centage used to determine the partner’s share of the excess nonrecourse liability under §1.752–3(a)(3). Because the proposed amendments to §1.752–3(a)(3) would allow excess nonre- course liabilities to be allocated according to an amount, rather than a percentage, the potential for ambiguity exists. The com- mentator suggested that the disguised sale rules should be modified to define a part- ner’s share of a nonrecourse liability by cross-reference to §1.752–3(a), rather than limiting the definition to the third tier. The commentator noted that maintaining sepa- rate definitions for the same term was bur- densome and confusing for practitioners, and noted that the disguised sale rules pro- vide consistency between sections 707(a) and 752 with respect to the definition of a partner’s share of a recourse liability by reference to §1.752–2 without limitation. The preamble to §1.707–5 explains that the cross-reference defining a partner’s share of nonrecourse liabilities is limited to the third tier of §1.752–3(a) because the adoption of the full three-tier approach in the disguised sale context would provide an inverse relationship between the gain inherent in the contributed property and the extent to which a disguised sale of the property results from the encumbrance. See preamble (57 F.R. 44974). The con- tributing partner’s share of the liability under §1.752–3(a) generally will increase as the amount of built-in gain on the prop- erty increases, which in turn would reduce the extent to which the contribution would be treated as a disguised sale. The same problem would exist if the proposed modifications to the third tier were taken into account for purposes of §1.707–5(a)(2)(ii). To the extent that ex- cess section 704(c) gain exists with re- spect to a property, the partnership could November 13, 20004722000–46 I.R.B. allocate excess nonrecourse liabilities to the contributing partner. The greater the built-in gain with respect to a property, the less likely it would be that a disguised sale would result from the contribution. In order to avoid this inappropriate result, the final regulations clarify that the modi- fications made to the third tier do not apply for purposes of §1.707–5(a)(2)(ii). Thus, for purposes of the disguised sale rules, the partner’s share of nonrecourse liabilities continues to be determined under the third tier by reference to the partner’s share of profits or certain rea- sonably expected deductions. 4. Treatment of “Extra” Excess Section 704(c) Gain Rev. Rul. 95–41 (1995–1 C.B. 132) holds that if a partnership determines the partners’ interests in partnership profits based on all of the facts and circum- stances relating to the economic arrange- ment of the partners, excess section 704(c) gain is one factor, but not the only factor, to be considered under §1.752–3(a)(3). The preamble to the pro- posed regulations provides that this hold- ing will remain relevant where a partner- ship does not allocate nonrecourse debt under the third tier based on the excess section 704(c) gain attributable to the property that is subject to the debt. The preamble also provides that once a part- nership has allocated nonrecourse indebt- edness pursuant to the rule in the pro- posed regulations based upon excess section 704(c) gain, that excess section 704(c) gain cannot again be considered in determining a partner’s interest in part- nership profits. One commentator asked, in situations where the amount of a liability allocated to a partner under the third tier pursuant to the rule contained in the proposed regula- tions is less than the partner’s share of ex- cess 704(c) gain, whether the remaining excess 704(c) gain should be taken into account for purposes of determining a partner’s interest in partnership profits under the third tier with regard to other li- abilities. The statement contained in the pream- ble regarding the impact of the proposed regulations on Rev. Rul. 95–41 reflects a concern on the part of IRS and Treasury that taxpayers might count the same ex- cess section 704(c) gain in applying the rule in the proposed regulations and then again in determining a partner’s interest in partnership profits under the third tier. To the extent that a portion of excess sec- tion 704(c) gain remains after a liability has been fully allocated, there is no dou- ble-counting, and the remaining portion of the gain should be taken into account as one factor to be considered in deter- mining a partner’s interest in partnership profits under §1.752–3(a)(3) and Rev. Rul. 95–41. 5. Applicability of §1.752–3(b) to Third- Tier Allocations The proposed regulations provide rules regarding the allocation of a single liability among multiple properties. The proposed regulations generally provide that if a part- nership has multiple properties subject to a single liability, for purposes of determining the amount of section 704(c) minimum gain in applying the second tier, the part- nership may allocate to each property an amount of the liability that, when combined with any other liabilities allocated to the property, do not exceed the property’s fair market value. The portion of the liability allocated to each property will be treated as a separate loan in determining the section 704(c) minimum gain attributable to the property. One commentator asked that the rule for allocating a single liability among multiple properties under the second tier also apply to third tier allocations. For purposes of the second tier, where nonrecourse debt is cross-collateralized, it is necessary to deter- mine how much of the nonrecourse debt is attributable to each partnership property, since debt is allocated among the partners under that tier based upon the amount by which the debt attributable to each specific property exceeds the tax basis of such prop- erty. (See §1.704–3(a)(2), which provides that, except in limited circumstances, sec- tion 704(c) applies on a property-by-prop- erty basis.) Under the proposed modifica- tion to the third tier, any remaining nonrecourse liability of the partnership could be allocated to a partner up to the ex- cess section 704(c) gain allocable to the partner on property subject to that liability. There is no need to bifurcate cross-collater- alized debt under this tier, since excess sec- tion 704(c) gain is not limited by the amount of debt attributable to specific part- nership property. So long as a partner’s share of excess section 704(c) gain is attrib- utable to property that is “subject to” the debt being allocated, the debt may be allo- cated in accordance with that partner’s share of such excess section 704(c) gain. Multiple properties may be “subject to” the same indebtedness. Bifurcating the debt among multiple properties so that each property is treated as subject to only a por- tion of the debt actually would limit taxpay- ers’ flexibility and narrow the scope of the proposed change to the third tier. Accord- ingly, the commentator’s recommendation is not adopted. However, the final regula- tions add an example which clarifies the operation of this rule. 6. Retroactive Effective Date One commentator suggested that the reg- ulations should apply on a retroactive basis. This suggestion has not been adopted. However, the final regulations respond to this recommendation by providing an op- tional effective date for those taxpayers who wish to apply the rules currently to lia- bilities incurred prior to the issuance of these regulations. 7. Additional Comments Requested The preamble to the proposed regula- tions requested comments regarding the al- location of a single liability among multiple partnerships. Although no formal com- ments were submitted on this issue, several commentators have indicated that addi- tional guidance regarding appropriate methods of allocating such liabilities would be helpful. The IRS and Treasury again re- quest comments regarding this issue. Special Analyses It has been determined that this Treasury decision is not a significant regulatory ac- tion as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Proce- dure Act (5 U.S.C. chapter 5) and the Regu- latory Flexibility Act (5 U.S.C. chapter 6) do not apply to these regulations and, there- fore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding these regu- lations was submitted to the Small Business Administration for comment on its impact on small business. 2000–46 I.R.B.473November 13, 2000 Drafting Information The principal author of these regulations is Christopher T. Kelley, Office of Chief Counsel (Passthroughs and Special Indus- tries). However, other personnel from the IRS and Treasury participated in their de- velopment. * * * * * Adoption of Amendments to the Regulations Accordingly, 26 CFR part 1 is amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.752–3 is amended as follows: 1. Paragraph (a)(3) is amended by adding three sentences immediately be- fore the last sentence in the paragraph. 2. Paragraph (b) is redesignated as paragraph (c). 3. New paragraph (b) is added. 4. Newly designated paragraph (c) is amended by revising the introductory text and adding a new Example 3. The revisions and addition read as fol- lows: §1.752–3 Partner’s share of nonrecourse liabilities. (a) * * * (3) * * * Additionally, the partnership may first allocate an excess nonrecourse liability to a partner up to the amount of built-in gain that is allocable to the part- ner on section 704(c) property (as defined under §1.704–3(a)(3)(ii)) or property for which reverse section 704(c) allocations are applicable (as described in §1.704–3 (a)(6)(i)) where such property is subject to the nonrecourse liability to the extent that such built-in gain exceeds the gain described in paragraph (a)(2) of this sec- tion with respect to such property. This additional method does not apply for pur- poses of §1.707–5(a)(2)(ii). To the extent that a partnership uses this additional method and the entire amount of the ex- cess nonrecourse liability is not allocated to the contributing partner, the partnership must allocate the remaining amount of the excess nonrecourse liability under one of the other methods in this paragraph (a)(3). * * * (b) Allocation of a single nonrecourse liability among multiple properties—(1) In general. For purposes of determining the amount of taxable gain under para- graph (a)(2) of this section, if a partner- ship holds multiple properties subject to a single nonrecourse liability, the partner- ship may allocate the liability among the multiple properties under any reasonable method. A method is not reasonable if it allocates to any item of property an amount of the liability that, when com- bined with any other liabilities allocated to the property, is in excess of the fair market value of the property at the time the liability is incurred. The portion of the nonrecourse liability allocated to each item of partnership property is then treated as a separate loan under paragraph (a)(2) of this section. In general, a part- nership may not change the method of al- locating a single nonrecourse liability under this paragraph (b) while any portion of the liability is outstanding. However, if one or more of the multiple properties subject to the liability is no longer subject to the liability, the portion of the liability allocated to that property must be reallo- cated among the properties still subject to the liability so that the amount of the lia- bility allocated to any property does not exceed the fair market value of such prop- erty at the time of reallocation. (2) Reductions in principal. For pur- poses of this paragraph (b), when the out- standing principal of a partnership liabil- ity is reduced, the reduction of outstanding principal is allocated among the multiple properties in the same pro- portion that the partnership liability origi- nally was allocated to the properties under paragraph (b)(1) of this section. (c) Examples. The following examples illustrate the principles of this section: * * * * * Example 3. Allocation of liability among multiple properties. (i) A and B are equal partners in a part- nership (PRS). A contributes $70 of cash in ex- change for a 50-percent interest in PRS. B con- tributes two items of property, X and Y, in exchange for a 50-percent interest in PRS. Property X has a fair market value (and book value) of $70 and an ad- justed basis of $40, and is subject to a nonrecourse liability of $50. Property Y has a fair market value (and book value) of $120, an adjusted basis of $40, and is subject to a nonrecourse liability of $70. Im- mediately after the initial contributions, PRS refi- nances the two separate liabilities with a single $120 nonrecourse liability. All of the built-in gain attrib- utable to Property X ($30) and Property Y ($80) is section 704(c) gain allocable to B. (ii) The amount of the nonrecourse liability ($120) is less than the total book value of all of the properties that are subject to such liability ($70 + $120 = $190), so there is no partnership minimum gain. §1.704–2(d). Accordingly, no portion of the liability is allocated pursuant to paragraph (a)(1) of this section. (iii) Pursuant to paragraph (b)(1) of this section, PRS decides to allocate the nonrecourse liability evenly between the Properties X and Y. Accord- ingly, each of Properties X and Y are treated as being subject to a separate $60 nonrecourse liability for purposes of applying paragraph (a)(2) of this sec- tion. Under paragraph (a)(2) of this section, B will be allocated $20 of the liability for each of Proper- ties X and Y (in each case, $60 liability minus $40 adjusted basis). As a result, a portion of the liability is allocated pursuant to paragraph (a)(2) of this sec- tion as follows: PartnerPropertyTier 1Tier 2 AX$0$0 Y$0$0 BX$0$20 Y$0$20 (iv) PRS has $80 of excess nonrecourse liability that it may allocate in any manner consistent with paragraph (a)(3) of this section. PRS determines to allocate the $80 of excess nonrecourse liabilities to the partners up to their share of the remaining sec- tion 704(c) gain on the properties, with any remain- ing amount of liabilities being allocated equally to A and B consistent with their equal interests in partner- ship profits. B has $70 of remaining section 704(c) gain ($10 on Property X and $60 on Property Y), and thus will be allocated $70 of the liability in ac- cordance with this gain. The remaining $10 is di- vided equally between A and B. Accordingly, the overall allocation of the $120 nonrecourse liability is as follows: November 13, 20004742000–46 I.R.B. PartnerTier 1Tier 2Tier 3Total A$0$0$5$5 B$0$40$75$115 Par. 3. In §1.752–5, paragraph (a) is amended by adding three sentences after the first sentence: Section 1.752–5 Effective dates and transition rules. (a) In general. * * * However, §1.752–3(a)(3) fifth, sixth, and seventh sentences, (b), and (c) Example 3, do not apply to any liability incurred or assumed by a partnership prior to October 31, 2000. Nevertheless, §1.752–3(a)(3) fifth, sixth, and seventh sentences, (b), and (c) Example 3, may be relied upon for any liability incurred or assumed by a partnership prior to October 31, 2000 for taxable years ending on or after October 31, 2000. * * * * * * * * David A. Mader, Acting Deputy Commissioner of Internal Revenue. Approved October 11, 2000. Jonathan Talisman, Acting Assistant Secretary of the Treasury. (Filed by the Office of the Federal Register on Octo- ber 30, 2000, 8:45 a.m., and published in the issue of the Federal Register for October 31, 2000, 65 F.R. 64888) 2000–46 I.R.B.475November 13, 2000 Part II. Treaties and Tax Legislation Subpart A.—Tax Conventions November 13, 20004762000–46 I.R.B. 2000–46 I.R.B.477November 13, 2000 November 13, 20004782000–46 I.R.B. 2000–46 I.R.B.479November 13, 2000 Tables for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income Notice 2000–47 1. Table for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income (Forms 668-W(c) & 668-W(c)(DO)) 2001 Publication 1494, shown below, provides tables that show the amount of an individual’s income that is exempt from a notice of levy used to collect delinquent tax in 2001. (Amounts are for each pay period.) November 13, 20004802000–46 I.R.B. Part III. Administrative, Procedural, and Miscellaneous Filing Status: Single Number of Exemptions Claimed on Statement Pay Period123456More Than 6 Daily28.6539.8150.9662.1273.2784.4217.50 plus 11.54 for each exemption Weekly143.27199.04254.81310.58366.35422.1287.50 plus 55.77 for each exemption Biweekly286.54398.08509.62621.15732.69844.23175.00 plus 111.54 for each exemption Semi-310.42431.25552.08672.92793.75914.58189.58 plus 120.83 for monthlyeach exemption Monthly620.83862.501104.171345.831587.501829.17379.17 plus 241.67 for each exemption Filing Status: Unmarried Head of Household Number of Exemptions Claimed on Statement Pay Period123456More Than 6 Daily36.7347.8859.0470.1981.3592.5025.58 plus 11.54 for each exemption Weekly183.65239.42295.19350.96406.73462.50127.88 plus 55.77 for each exemption Biweekly367.31478.85590.38701.92813.46925.00255.77 plus 111.54 for each exemption Semi-397.92518.75639.58760.42881.251002.08277.08 plus 120.83 for monthlyeach exemption Monthly795.831037.501279.171520.831762.502004.17554.17 plus 241.67 for each exemption 2000–46 I.R.B.481November 13, 2000 Filing Status: Married Filing Joint (and Qualifying Widow(er)s) Number of Exemptions Claimed on Statement Pay Period123456More Than 6 Daily40.3851.5462.6973.8585.0096.1529.23 plus 11.54 for each exemption Weekly201.92257.69313.46369.23425.00480.77146.15 plus 55.77 for each exemption Biweekly403.85515.38626.92738.46850.00961.54292.31 plus 111.54 for each exemption Semi-437.50558.33679.17800.00920.831041.67316.67 plus 120.83 for monthlyeach exemption Monthly875.001116.671358.331600.001841.672083.33633.33 plus 241.67 for each exemption Filing Status: Married Filing Seperate Number of Exemptions Claimed on Statement Pay Period123456More Than 6 Daily25.7736.9248.0859.2370.3881.5414.62 plus 11.54 for each exemption Weekly128.85184.62240.38296.15351.92407.6973.07 plus 55.77 for each exemption Biweekly257.69369.23480.77592.31703.85815.38146.15 plus 111.54 for each exemption Semi-279.17400.00520.83641.67762.50883.33158.33 plus 120.83 for monthlyeach exemption Monthly558.33800.001041.671283.331525.001766.67316.67 plus 241.67 for each exemption Filing Status*DailyWklyBi-WklySemi-MoMonthly Single or Head 14.2321.1542.3145.8391.67 of Household28.4642.3184.6291.67183.33 Any Other13.4617.3134.6237.5075.00 Filing Status26.9234.6269.2375.00150.00 310.3851.92103.85112.50225.00 413.8569.23138.46150.00300.00 2. Table for Figuring Additional Exempt Amount for Taxpayers at Least 65 Years Old and/or Blind Additional Exempt Amount * ADDITIONAL STANDARD DEDUCTION claimed on Parts 3, 4, & 5 of levy. November 13, 20004822000–46 I.R.B. Examples These tables show the amount exempt from a levy on wages, salary, and other income. For example: 1. A single taxpayer who is paid weekly and claims three exemptions (including one for the taxpayer) has $254.81 exempt from levy. 2. If the taxpayer in number 1 is over 65 and writes 1 in the ADDITIONAL STANDARD DEDUCTION space on Parts 3, 4, & 5 of the levy, $275.96 is exempt from this levy ($254.81 plus $21.15). 3. A taxpayer who is married, files jointly, is paid bi-weekly, and claims two exemptions (including one for the taxpayer) has $515.38 exempt from levy. 4. If the taxpayer in number 3 is over 65 and has a spouse who is blind, this taxpayer should write 2 in the ADDITIONAL STAN- DARD DEDUCTION space on Parts 3, 4, & 5 of the levy. Then, $584.61 is exempt from this levy ($515.38 plus $69.23). 26 CFR 601.201: Rulings and determination letters. (Also Part I, section 29.) Rev. Proc. 2000–47 SECTION 1. PURPOSE This revenue procedure amplifies Rev. Proc. 2000–3, 2000–1 I.R.B. 103, which sets forth areas of the Internal Revenue Code in which the Internal Revenue Ser- vice will not issue advance rulings or de- termination letters. SECTION 2. BACKGROUND Section 5 of Rev. Proc. 2000–3 sets forth those areas under extensive study in which rulings or determination letters will not be issued until the Service re- solves the issue through publication of a revenue ruling, revenue procedure, regu- lations, or otherwise. The purpose of § 29 of the Internal Revenue Code is to reduce United States dependence on imported energy. S. Rep. No. 394, 96th Cong., 1st Sess. 87 (1979), 1980–3 C.B. 131, 205. Section 29 provides a credit against income tax for the production and sale of “qualified fuels” produced from a non- conventional source. Section 29(c)(1)(C) provides that qualified fuels include liquid, gaseous, or solid syn- thetic fuels produced from coal (includ- ing lignite). Rev. Rul. 86–100, 1986–2 C.B. 3, adopts for purposes of § 29(c)(1)(C) the definition of synthetic fuel in § 1.48–9 (c)(5) of the Income Tax Regulations be- cause of the similar purpose and lan- guage of § 29 and former § 48(l) of the Internal Revenue Code of 1954. Section 1.48–9(c)(5)(ii) provides that, to be “synthetic,” a fuel must differ signifi- cantly in chemical composition, as op- posed to physical composition, from the substance used to produce it. The Service has issued a number of rulings that allow taxpayers to claim the § 29 credit with respect to coke and solid fuels produced from waste coal and coal fines. Concern has been raised that tax- payers are also claiming the § 29 credit for processing coal in other ways that may not have been intended by the Con- gress. The Treasury Department and the Service are seeking information concern- ing the processes currently used in pro- ducing solid fuel for which the credit is claimed. SECTION 3. PROCEDURE Rev. Proc. 2000–3 is amplified by adding the following to section 5: Section 29.—Credit for Production and Sale of Qualified Fuels.—Whether a solid fuel other than coke or a fuel pro- duced from waste coal is a qualified fuel under § 29(c)(1)(C). Waste coal for this purpose is limited to waste coal fines from normal mining and crushing opera- tions and does not include fines pro- duced (for example, by crushing run-of- mine coal) for the purpose of claiming the credit. SECTION 4. EFFECTIVE DATE This revenue procedure applies to all ruling requests, including any pending in the national office and any submitted after the date of publication of this rev- enue procedure. Taxpayers that have pending ruling requests involving solid fuel other than coke but whose ruling re- quests do not indicate that the fuel is pro- duced from waste coal fines may modify their ruling requests if they meet the standard described in section 3 of this revenue procedure so that the Service may continue to consider their requests. SECTION 5. EFFECT ON OTHER DOCUMENTS Rev. Proc. 2000–3 is amplified. SECTION 6. REQUEST FOR COMMENTS The Service requests comments con- cerning this revenue procedure and the standard to be applied in determining whether fuel produced from coal is a solid synthetic fuel. In particular, the Service requests comments on whether significant chemical change is an appropriate test and, if so, what constitutes such a change. The Service also requests comments on whether, in the case of solid fuels other than coke, additional or alternative tests are needed. Comments are specifically requested with respect to the following: (1) should the § 29 credit for solid syn- thetic fuel under § 29(c)(1)(C) be allowed only where domestic energy production is increased; (2) under what circumstances should the § 29 credit for solid synthetic fuel under § 29(c)(1)(C) be allowed with respect to fuel produced from waste coal and coal fines; and (3) must a solid syn- thetic fuel have a market value that is sig- nificantly greater than the market value of the coal and any additives from which it is produced. To facilitate speedy resolution, the Ser- vice requests that comments be submitted by November 27, 2000. An original and eight copies of written comments should be mailed to: Internal Revenue Service Attn: CC:MSP:R (Rev. Proc. 2000–47) Room 5228 (PSI:Br6) PO Box 7604 Ben Franklin Station Washington, DC 20044 or hand delivered between the hours of 8:00 a.m. and 5:00 p.m. to: Courier’s Desk Internal Revenue Service Attn: CC:MSP:R (Rev. Proc. 2000–47) Room 5228 (PSI:Br6) 1111 Constitution Avenue, NW Washington, DC In addition, comments may be submitted electronically at: joel.s.rutstein@m1.irscounsel.treas.gov. DRAFTING INFORMATION The principal author of this revenue procedure is David McDonnell of the Of- fice of Associate Chief Counsel (Passthroughs and Special Industries). However, other personnel from the IRS and Treasury participated in its develop- ment. For further information regarding this revenue procedure contact Mr. Mc- Donnell at (202) 622-3110 (not a toll-free call). 2000–46 I.R.B.483November 13, 2000 Foundations Status of Certain Organizations Announcement 2000–91 The following organizations have failed to establish or have been unable to main- tain their status as public charities or as op- erating 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 sec- tion 508(b) of the Code. This listing does notindicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive de- ductible contributions. Former Public Charities.The following organizations (which have been treated as organizations that are not private founda- tions described in section 509(a) of the Code) are now classified as private foun- dations: Afghanistan Peace Association, Inc., Flushing, NY Alameda County Cancer League, Inc., Piedmont, CA Alameda Ladies Relief Society, Alameda, CA Alfred J. Friend Memorial Fund, Inc., Rockville Centre, NY Alliance for Advanced Coatings Research, Rolla, MO Alternative Home Care, Inc., Mount Sinai, NY American Friends of Birkat Peretz, Brooklyn, NY American Friends of Gifted Young Musicians in Israel, Inc., New York, NY American Friends of Ora, Brooklyn, NY American Friends of Yeshiva Nezer Hatorah, Inc., Brooklyn, NY American Friends of Yeshivat Imrei Datt, Inc., Brooklyn, NY American Philharmonic & Theatre Company, Inc., New York, NY Angels on Earth, Inc., Lawrence, NY Another Door, Ltd., Glencove, NY Appomattox Primary School Parent- Teacher Organization, Appomattox, VA Arizona Hispanic Association, Apache Junction, AZ Arkansas Osteopathic Foundation, Little Rock, AR Association for Legal Learning, Pelham, NY Atlanta Outreach Foundation for the Homeless, Atlanta, GA B. Stephen Demchuk Foundation, South Salem, NY Bakersfield Storm Soccer Club, Bakersfield, CA Bath Civil War Preservation Society, Inc., Bath, ME Battered Womens Resource Center, Inc., Brooklyn, NY Benjamin Church Development Corporation, Bristol, RI Bishop Henry B. Hucles Nursing Home, Inc., Uniondale, NY Bluff City Middle School Athletic Booster Club, Bluff City, TN Boles Junior High Athletic Booster Club, Inc., Arlington, TX Bosnian Refugees Association, Corp., Long Island City, NY Brain Injury Association Texas Gulf Coast Area, Houston, TX Brass Band of Minot, Milnot, ND Brazilian Community Center, Malden, MA Break O’Day Farm and Metcalfe Museum, Inc., Durham, OK Bridges of Milwaukee, Inc., Wauwatosa, WI Brookdale Residence Housing Development Fund Corporation, Brooklyn, NY Brotherhood for HIV Economic Support, Inc., Evansville, IN Buckeye Academic Booster Club, Buckeye, AZ Buenos Aires Yoga School Foundation, Chicago, IL Building Blocks Non-Profit Housing Corporation, Royal Oak, MI California Capital Access Forum, Inc., San Francisco, CA Catch and Release Foundation, Inc., Pound Ridge, NY Catholics for Life, Inc., Deer Park, NY C C L Chinese-American Culture Learning Center, Inc., Flushing, NY Cedarburg Junior Womans Club, Inc., Cedarburg, WI Center for Childrens Advocacy, Inc., Nutley, NJ Center for Policy Studies in Russia, Monterey, CA Center for the Urban Environment, Inc., Brooklyn, NY Chassidic Discover Center, Inc., Brooklyn, NY Chen V’Chesed, Brooklyn, NY Child Identification & Data Services, Incorporated, Brooklyn, NY Children Mishnayos Memorial Foundation, Inc., Brooklyn, NY Childrens Fund USA, Inc., Brooklyn, NY Christmas in April - El Paso, Inc., El Paso, CA Christmas in the Valley, Arcadia, MO City Club of Boise, Inc., Boise, ID Clinton Residence, Inc., Hempstead, NY Coalition for Pregnant Teens Services for Youth and Families, West Hempstead, NY Community Ministries of Virginia, Inc., Newport News, VA Contemporary Chamber Opera of Minnesota, Inc., Minneapolis, MN Contending for the Faith Bible Study, Tampa, FL Corporate Kingdom, Ltd., Garden City, NY Corporation for Musical Development, Middle Village, NY Counsel of Substance Abuse Professionals, Inc., Rome, GA Cultural Center of the Taino Nation of the Antilles, Inc., New York, NY Cystic Fibrosis Support Group of Oregon, Clackamas, OR Dark Horse Productions, Inc., Amagansett, NY David Rosenthal Foundation, Great Neck, NY Deaf and Hearing Ventures, Incorporated, Birmingham, AL DEAF, Inc., New York, NY Desnick Family Charitable Foundation, Chicago, IL Disability Group, Inc., Los Angeles, CA Donation for Life Coalition, Inc., San Francisco, CA Earthspan, Stewartstown, PA East Central Upper Peninsula Health and Education Foundation, Newberry, MI Ebony Zawadi, Inc., Brandywine, MD Elderly Housing Services, Inc., Johnson City, TN Emilys Store, Inc., Columbia, MD End Time Full Gospel Harvestors, Inc., Floral Park, NY Families of Abused Children Traumatized Sexually, Inc., Virginia Beach, VA Family Link-up, Inc., Brooklyn, NY November 13, 20004842000–46 I.R.B. Part IV. Items of General Interest Far Rockaway Panther Football, Inc., Far Rockaway, NY Farm Workers Development Center, Granger, WA Fathers and Mothers in Legal Yearning, Inc., Tucson, AZ Flatbush Youth Association, Inc., Brooklyn, NY Focus Information Service, Ltd., Dayton, OH Fontana Academy of Martial Arts, Fontana, CA Foundation for Clean Air Progress, Washington, DC Foundation for Peace, Inc., Brookville, NY Foundation for the Children of Haiti, Dix Hills, NY Foundation for the Prevention and Recovery of Missing Children, Boca Raton, FL Friends of Beth Yisrael Institutions, Brooklyn, NY Friends of Rye Brook, Inc., Rye Brook, NY Friends of the William Floyd Estate, Inc., Patchogue, NY Frontier Fertilizer Superfund Oversight Group, Davis, CA Fund for the Children of Chernobyl Northwest United States of America, Kent, WA Garland Genealogical Society, Inc., Garland, TX Give a Helping Hand Corporation, Bay Shore, NY Griffin-Spalding Clean Community Commission, Inc., Griffin, GA Habitat for Elderly & Handicapped, Inc., Shirley, NY Hampton Roads Boys-Girls Club Alumni Association, Newport News, VA Hashevaynu, Inc., Monsey, NY Health Care Resources Interlink, Inc., Care Resources, San Jose, CA High Thoughts Ministries, Inc., Newbury Park, CA Hmong American Womens Association, Milwaukee, WI Homeowners Assistance Corporation of New York, St. Albans, NY Inner-Outer Partnership, Pacific Palisades, CA Institute for Community Leadership Training, Inc., Brooklyn, NY Institute of World Traditional Medicine, Santa Monica, CA Interactive Trust - A Foundation for America, Des Moines, IA International Center for Jewish Peoplehood, Memphis, TN International Skating Center of Connecticut Scholarship Foundation, Avon, CT International Used Oil Research Institute, Mobile, AL Internet Nonprofit Center, Inc., Brooklyn, NY Irish Services, Inc., Woodside, NY Island Park Playground Fund Organization, Inc., Island Park, NY It Takes a Village, Inc., Chicago, IL Jesus the Living Word Ministries, Inc., Hughson, CA Jim Clark Community Services, Inc., Inglewood, CA June and Roy Metcalf Elementary Parent- Teacher Organization, Houston, TX Kansas Community Corporation, Kansas, IL Keeping Brothers in School, Inc., Brooklyn, NY Keren Aniyai Irchoh, Inc., Brooklyn, NY Kids Instilled with Dignity Survive Kids, Inc., Ponte Verde, FL Kids Nutritional Services, Slidell, LA Kincraig Housing, Inc., Brooklyn, NY King Kekaulike High School Band Boosters, Pukalani, HI Koakos Syllogos Ippocrates, Inc., Astoria, NY Kolel Zichron Yoseph, Inc., Brooklyn, NY Laneville Christmas Light Display, Laneville, TX Lantern Theatre, Inc., Wantagh, NY Law Review, Inc., Edina, MN League of Muslim Women of Rochester, Rochester, NY Light to the Nations, Inc., Brooklyn, NY Long Island Counseling Center, Inc., Mineola, NY Machne Menachem, Inc., Brooklyn, NY Marcus High School Basketball Booster Club, Flower Mound, TX Masumeen Charitable Trust, North Reading, MA Maumee High School Ice Hockey Association, Maumee, OH Mesorah Center for Jewish Studies Charitable Trust, Highland Park, NJ Mindpaint Workshop, Lincoln, NE Mishkan Yaakov Charitable Trust, New York, NY Mission Crusade, Inc., Forest Hills, NY Moharil Ashlag Torah Center, Inc., Brooklyn, NY Monsignor Michael Fleming Catholic Youth Foundation, Inc., Bayside, NY Moscow State University Center for Social Services and Humanities, Arlington, VA MRC Housing Development Fund Company, Inc., Brooklyn, NY Municipal Training Center Queens, Inc., Jamaica, NY Nassau Community Outreach Consortium, Inc., Lawrence, NY National Educator Foundation, Los Angeles, CA National Independence Day Parade, Inc., Washington, DC National Organization for Von Willebrand Patients & Carriers, Inc., Cockeysville, MD Neurodegenerative Disease Foundation, Inc., Huntington, NY New Creation Ministries, Wenatchee, WA New Dialogue Study Group, Inc., Rego Park, NY New Horizon Childrens Enrichment Center, Dothan, AL New York Guard Foundation, Inc., White Plains, NY Northeast Community Feed-a-Meal Program, Mer Rouge, LA North Haven Historical Cemetary Association, Inc., Sag Harbor, NY North Posey Athletic Booster Club, Inc., Poseyville, IN Oklahoma Association of Urban Bankers, Oklahoma City, OK Olympic Peninsula Intertribal Cultural Advisory Committee, Kingston, WA Osage Resident Council Association, Skiatook, OK Outreach Childrens Home, Nashville, TN Oxbridge Study Abroad Center, Washington, DC Palm Beaches Alive, Inc., West Palm Beach, FL Parker Youth, Inc., Parker, CO Parsippany High School Wrestling Boosters Parents Association, Parsippany, NJ Pathways Spiritual Foundation, Laguna Beach, CA Project Destiny International Scholarship Foundation, Inc., Jamaica, NY Project Intercept, Inc., St. Paul, MN Project Pass, St. Louis, MO 2000–46 I.R.B.485November 13, 2000 Protestant Lawyers Association of New York Scholarship Fund, Inc., Brooklyn, NY Pursuit Soccer Club, Spring, TX Quick Social Services, Inc., Wyandanch, NY Quota Club of Tulsa Charitable and Educational Foundation, Inc., Talala, OK Rabbi Yisroel Aryeh Leib Research Institute on Moshiach and the Scie, Brooklyn, NY Rabbinical Study - Ohel Shlomo, Inc., Brooklyn, NY Radcliffe Sorority Sisters, Inc., Radcliffe, IA Reach Foundation, Shaker Heights, OH Reaching Out the African-American Youth Mentoring Service, Tacoma, WA Rebel Alliance Theatre, Inc., Oshkosh, WI Renaissance Alano Club, Santa Ana, CA Rhode Island Breast Cancer Coalition, Inc., Coventry, RI River Run Arts - Earth Studies Camp, Inc., Peninsula, OH Rivers Bend Playhouse, Inc., Evansville, IN Rosemary Fund, Inc., Franklin Sq, NY Rwanda Reconstruction Fund, Inc., Rockville, MD Santa Paula Foundation for Youth, Ventura, CA Sarajevo Fund, Incorporated, New York, NY Save Our Selves, Inc., Bowie, MD Save our Smile SOS, Inc., Dix Hills, NY Save the Horse, Inc., Old Bethpage, NY Scholar Athletes, Inc., Westbury, NY Selig Gourson Tapemobile, Inc., Brooklyn, NY Seven Loaves & Five Fishes, Inc., Mission, Brooklyn, NY Seventh Principle, Inc., South Orange, NJ Sigma Phi Omega National Honor Society, Washington, DC Sixty-Five Roses Auxiliary, Inc., Phoenix, AZ Sonoma County Braillists, Inc., Santa Rosa, CA Southern California Support for Children, Inc., Yucaipa, CA Special Forces Ministries, Inc., Brusly, LA Starbrite Foundation, Phoenix, AZ Stillwater Volunteer Fire Association, Cincinnati, OH Stonewall Jackson Middle School, Mechanicsville, VA Stop Abuse, Inc., Canoga Park, CA Supportive Living Program, Inc., Quincy, MA Substainable Communities, Inc., Santa Fe, NM Tanitas, Inc., Chevy Chase, MD Tax History Foundation and Museum, Northfield, IL Teal Lost Land & Ghost Lakes Improvement Assn., Hayward, WI Telos Institute, Inc., Candor, NY Toaster Museum Foundation, Inc., Charlottesville, VA Tov-Roi Foundation, Inc., Brooklyn, NY TRRE Foundation, Seattle, WA Tulsa Area Wheelchair Sports Association, Inc., Tulsa, OK Tunbridge Engine Company, Inc., Tunbridge, VT United Ethiopian Services, Inc., Cambridge, MA Universal Peace Mission, Inc., Pittsburgh, PA Vaad L’Hatzolas Nidchei Yisroel, Inc., Brooklyn, NY Valley Coalition for the Homeless, San Benito, CA Vermilion Schools Athletic Boosters, Inc., Vermilion, OH Veuhsesuh Hayushor Vehatov, Inc. Monroe, NY Victorious Overcomers Community Alliance, Inc., Amityville, NY Vietnam Veterans for Christ, Phoenix, AZ Walk for a Cure Foundation, Salem, OR Wellness Education Foundation, Carlsbad, CA Wellston Community Support Assoc., St. Louis, MO Whiteman Officers Wives Club, Warrensburg, MO Worldwide Gospel Tracts, Inc., Pasadena, CA Yamim, Inc., New York, NY Yeshiva Chasidei Belz of Jerusalem, Brooklyn, NY Yeshiva Shalom Rav, Far Rockaway, NY Youth Frontiers, Inc., Bronx, NY YSI International, Hollywood, FL Yvettes Creative Learning, Inc., Marietta, GA Zomet, Woodmere, NY 1884 Oakhurst Links Foundation, White Sulphur Springs, WV 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 de- termination letter with the revised classi- fication as to foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as pro- vided 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 Inter- nal Revenue Bulletin. Tax Treatment of Cafeteria Plans; Correction Announcement 2000–92 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to notice of pro- posed rulemaking. SUMMARY: This document contains a correction to proposed regulations that were published in the Federal Register on Thursday, March 23, 2000 (65 F.R. 15587), relating to tax treatment of cafe- teria plans. FOR FURTHER INFORMATION CON- TACT: Christine L. Keller at (202) 622- 6080 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The notice of proposed rulemaking that is the subject of this correction is under section 125 of the Internal Revenue Code. Need for Correction As published, the proposed regulations contain an error that may prove to be mis- leading and is in need of clarification. Correction of Publication Accordingly, the publication of the pro- posed regulations (REG–117162–99, 2000–15 I.R.B. 871), that were the sub- ject of FR Doc. 00–5818, is corrected as follows: On page 15587, column 2, the regula- tion heading in the middle of the column, line 5, the “RIN 1545–AX59” is corrected to read “RIN 1545–AY23”. November 13, 20004862000–46 I.R.B. Cynthia E. Grigsby, Chief, Regulations Unit, Office of Special Counsel (Modernization and Strategic Planning) (Filed by the Office of the Federal Register on Octo- ber 24, 2000, 8:45 a.m., and published in the issue of the Federal Register for October 25, 2000, 65 F.R. 63824) IRS and George Washington University to Sponsor Institute on International Tax Issues Announcement 2000–93 Director, International, LMSB, Carol A. Dunahoo has announced the Thirteenth Annual Institute on Current Issues in In- ternational Taxation, jointly sponsored by the Internal Revenue Service and The George Washington University, to be held on December 7 and 8, 2000 at the J.W. Marriott Hotel in Washington, DC. Reg- istration is currently underway for the In- stitute, which is intended for profession- als in international tax law. The program will present a unique op- portunity for top IRS and Treasury officials and tax experts, as well as leading private sector specialists, to address breaking is- sues and present key perspectives on new developments. The Institute will open with an address by Jeffrey Owens, Head of Fis- cal Affairs Division, Organisation for Eco- nomic Co-operation and Development. The first day will also feature sessions on corporate tax shelters from an international perspective, new ways of handling tax con- troversies, and inbound and outbound up- dates. Competent Authority officials from Canada, Japan, the United Kingdom, and the United States will discuss current and emerging issues. Larry Langdon, Com- missioner of the IRS Large and Mid-Size Business Division, will provide the lun- cheon address. The second day will focus on interna- tional tax issues in the New Economy, in- cluding character of income and perma- nent establishment, e-commerce implications for Subpart F, income sourc- ing rules and transfer pricing, e-com- merce and the EU VAT proposal, and vir- tual relationships in an e-commerce world. Jonathan Talisman, Acting Assis- tant Secretary for Tax Policy, Department of the Treasury, will provide the luncheon address. The second day will also in- clude an “Ask the IRS” panel. Those interested in attending or obtain- ing more information should contact The George Washington University, Confer- ence Management Services, by phone at (202) 973-1110 or by visiting their web site at http://www.gwu.edu/~cms/iti13. 2000–46 I.R.B.487November 13, 2000 November 13, 2000i2000–46 I.R.B. Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplified describes a situation where no change is being made in a prior pub- lished position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle applied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarified is used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confu- sion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously published ruling and points out an essen- tial difference between them. Modified is used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it ap- plies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified and clarified, above). Obsoleted describes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rulings that are obsoleted because of changes in law or regulations. A ruling may also be obsoleted because the sub- stance has been included in regulations subsequently adopted. Revoked describes situations where the position in the previously published rul- ing is not correct and the correct position is being stated in the new ruling. Superseded describes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a pe- riod of time in separate rulings. If 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 pub- lished ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case the previously published ruling is first modified and then, as modified, is super- seded. Supplemented is used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be pub- lished that includes the list in the original ruling and the additions, and supersedes all prior rulings in the series. Suspended is used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The following abbreviations in current use and for- merly used will appear in material published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. DC—Dummy Corporation. DE—Donee. Del. Order—Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign Corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE—Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statements of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. Definition of Terms 2000–46 I.R.B.iiNovember 13, 2000 Numerical Finding List 1 Bulletins 2000–27 through 2000–45 Announcements: 2000–57, 2000–28 I.R.B. 115 2000–58, 2000–30 I.R.B. 135 2000–59, 2000–29 I.R.B. 120 2000–60, 2000–31 I.R.B. 149 2000–61, 2000–30 I.R.B. 136 2000–62, 2000–30 I.R.B. 137 2000–63, 2000–31 I.R.B. 149 2000–64, 2000–31 I.R.B. 149 2000–65, 2000–31 I.R.B. 150 2000–66, 2000–32 I.R.B. 160 2000–67, 2000–32 I.R.B. 160 2000–68, 2000–32 I.R.B. 161 2000–69, 2000–33 I.R.B. 183 2000–70, 2000–34 I.R.B. 204 2000–71, 2000–44 I.R.B. 456 2000–72, 2000–35 I.R.B. 226 2000–73, 2000–35 I.R.B. 230 2000–74, 2000–35 I.R.B. 230 2000–75, 2000–37 I.R.B. 268 2000–76, 2000–36 I.R.B. 260 2000–77, 2000–36 I.R.B. 260 2000–78, 2000–43 I.R.B. 428 2000–79, 2000–39 I.R.B. 303 2000–80, 2000–40 I.R.B. 320 2000–81, 2000–41 I.R.B. 348 2000–82, 2000–42 I.R.B. 385 2000–83, 2000–41 I.R.B. 348 2000–84, 2000–42 I.R.B. 385 2000–85, 2000–43 I.R.B. 429 2000–86, 2000–44 I.R.B. 456 2000–87, 2000–44 I.R.B. 457 2000–88, 2000–44 I.R.B. 460 2000–89, 2000–45 I.R.B. 467 Court Decisions: 2068, 2000–28 I.R.B. 109 Notices: 2000–33, 2000–27 I.R.B. 97 2000–34, 2000–33 I.R.B. 172 2000–35, 2000–29 I.R.B. 118 2000–36, 2000–33 I.R.B. 173 2000–37, 2000–29 I.R.B. 118 2000–38, 2000–33 I.R.B. 174 2000–39, 2000–30 I.R.B. 132 2000–40, 2000–30 I.R.B. 134 2000–41, 2000–33 I.R.B. 177 2000–42, 2000–39 I.R.B. 302 2000–43, 2000–35 I.R.B. 209 2000–44, 2000–36 I.R.B. 255 2000–45, 2000–36 I.R.B. 256 2000–46, 2000–37 I.R.B. 265 2000–48, 2000–37 I.R.B. 265 2000–49, 2000–37 I.R.B. 266 2000–50, 2000–38 I.R.B. 291 2000–51, 2000–38 I.R.B. 291 2000–52, 2000–38 I.R.B. 292 2000–53, 2000–38 I.R.B. 293 2000–54, 2000–42 I.R.B. 356 2000–55, 2000–43 I.R.B. 393 2000–56, 2000–43 I.R.B. 393 2000–57, 2000–43 I.R.B. 389 Proposed Regulations: REG–209038–89, 2000–34 I.R.B. 191 Proposed Regulations—Continued REG–246249–96, 2000–44 I.R.B. 439 REG–105316–98, 2000–27 I.R.B. 98 REG–110311–98, 2000–36 I.R.B. 258 REG–103805–99, 2000–42 I.R.B. 376 REG–105235–99, 2000–44 I.R.B. 447 REG–116495–99, 2000–33 I.R.B. 179 REG–103735–00, 2000–36 I.R.B. 258 REG–103736–00, 2000–36 I.R.B. 258 REG–106511–00, 2000–45 I.R.B. 465 REG–108522–00, 2000–34 I.R.B. 187 REG–108553–00, 2000–44 I.R.B. 452 REG–112502–00, 2000–40 I.R.B. 316 REG–114697–00, 2000–43 I.R.B. 421 Railroad Retirement Quarterly Rate: 2000–28, I.R.B. 112 2000–29, I.R.B. 117 2000–42, I.R.B. 354 Revenue Procedures: 2000–28, 2000–27 I.R.B. 60 2000–29, 2000–28 I.R.B. 113 2000–30, 2000–28 I.R.B. 113 2000–31, 2000–31 I.R.B. 146 2000–32, 2000–33 I.R.B. 172 2000–33, 2000–36 I.R.B. 257 2000–34, 2000–34 I.R.B. 186 2000–35, 2000–35 I.R.B. 211 2000–36, 2000–37 I.R.B. 267 2000–37, 2000–40 I.R.B. 308 2000–38, 2000–40 I.R.B. 310 2000–39, 2000–41 I.R.B. 340 2000–40, 2000–42 I.R.B. 357 2000–41, 2000–42 I.R.B. 371 2000–42, 2000–43 I.R.B. 394 2000–43, 2000–43 I.R.B. 404 2000–44, 2000–43 I.R.B. 409 2000–45, 2000–43 I.R.B. 417 2000–46, 2000–44 I.R.B. 438 Revenue Rulings: 2000–32, 2000–27 I.R.B. 1 2000–33, 2000–31 I.R.B. 142 2000–34, 2000–29 I.R.B. 116 2000–35, 2000–31 I.R.B. 138 2000–36, 2000–31 I.R.B. 140 2000–37, 2000–32 I.R.B. 156 2000–38, 2000–32 I.R.B. 157 2000–39, 2000–34 I.R.B. 184 2000–40, 2000–35 I.R.B. 208 2000–41, 2000–36 I.R.B. 248 2000–42, 2000–39 I.R.B. 297 2000–43, 2000–41 I.R.B. 333 2000–44, 2000–41 I.R.B. 336 2000–45, 2000–41 I.R.B. 337 2000–46, 2000–41 I.R.B. 334 2000–47, 2000–37 I.R.B. 264 2000–48, 2000–42 I.R.B. 349 2000–49, 2000–44 I.R.B. 430 2000–50, 2000–45 I.R.B. 462 Treasury Decisions: 8886, 2000–27 I.R.B. 3 8888, 2000–27 I.R.B. 3 8889, 2000–30 I.R.B. 124 8890, 2000–30 I.R.B. 122 8891, 2000–32 I.R.B. 152 8892, 2000–32 I.R.B. 158 8893, 2000–31 I.R.B. 143 Treasury Decisions—Continued 8894, 2000–33 I.R.B. 162 8895, 2000–40 I.R.B. 304 8896, 2000–36 I.R.B. 249 8897, 2000–36 I.R.B. 234 8898, 2000–38 I.R.B. 276 8899, 2000–38 I.R.B. 288 8900, 2000–38 I.R.B. 279 8901, 2000–38 I.R.B. 272 8902, 2000–41 I.R.B. 323 8903, 2000–42 I.R.B. 352 8904, 2000–42 I.R.B. 350 8905, 2000–44 I.R.B. 435 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2000–1 through 2000–26 is in Internal Revenue Bulletin 2000–27, dated July 3, 2000. November 13, 2000iii2000–46 I.R.B. Finding List of Current Actions on Previously Published Items 1 Bulletins 2000–27 through 2000–45 Notices: 87–76 Obsoleted by T.D. 8897, 2000–36 I.R.B. 234 88–24 Obsoleted by T.D. 8897, 2000–36 I.R.B. 234 88–86 Obsoleted by T.D. 8897 (section V), 2000–36 I.R.B. 234 2000–48 Superseded by Rev. Proc. 2000–39, 2000–41 I.R.B. 340 Proposed Regulations: LR–97–79 Partial withdrawal by REG–103805–99, 2000–42 I.R.B. 376 FI–42–90 Withdrawn by Announcement 2000–63, 2000–31 I.R.B. 149 IA–38–93 Withdrawn by Announcement 2000–68, 2000–32 I.R.B. 161 REG–107644–98 Corrected by Announcement 2000–66, 2000–32 I.R.B. 160 REG–108522–00 Corrected by Announcement 2000–85, 2000–43 I.R.B. 428 Revenue Procedures: 88–23 Superseded by Rev. Proc. 2000–35, 2000–35 I.R.B. 211 98–50 Modified and superseded by Rev. Proc. 2000–31, 2000–31 I.R.B. 146 98–51 Modified and superseded by Rev. Proc. 2000–31, 2000–31 I.R.B. 146 99–18 Modified by Rev. Proc. 2000–29, 2000–28 I.R.B. 113 99–34 Superseded by Rev. Proc. 2000–28, 2000–27 I.R.B. 60 99–49 Modified and amplified by Rev. Proc. 2000–38, 2000–40 I.R.B. 310 2000–3 Amplified by Rev. Proc. 2000–46, 2000–44 I.R.B. 438 2000–9 Superseded by Rev. Proc. 2000–39, 2000–41 I.R.B. 340 Treasury Decisions: 8873 Corrected by Announcement 2000–74, 2000–35 I.R.B. 230 8883 Corrected by Announcement 2000–57, 2000–28 I.R.B. 115 8884 Corrected by Announcement 2000–73, 2000–35 I.R.B. 230 8892 Corrected by Announcement 2000–81, 2000–41 I.R.B. 348 1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2000–1 through 2000–26 is in Internal Revenue Bulletin 2000–27, dated July 3, 2000. INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of Documents when their subscriptions must be renewed. CUMULATIVE BULLETINS The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week- ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the Superintendent of Documents. ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Select Tax Info for Business at the bottom of the page. Then select Internal Revenue Bulletins. INTERNAL REVENUE BULLETINS ON CD–ROM Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD–ROM). The CD–ROM can be purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders(discount for online orders) or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January. HOW TO ORDER Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance, detach entire page, and mail to the Superintendent of Documents, P.O. Box 371954, Pittsburgh, PA 15250–7954. Please allow two to six weeks, plus mailing time, for delivery. WE WELCOME COMMENTS ABOUT THE INTERNAL REVENUE BULLETIN If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the IRS Bulletin Unit, W:CAR:MP:FP, Washington, DC 20224. Internal Revenue Service Washington, DC 20224 Official Business Penalty for Private Use, $300
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