Internal Revenue Bulletin 1999-17 (PDF rendition): IRS Announcements

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

EMPLOYEE PLANS
Notice 99–21, page 19.
Weighted average interest rate update.The weighted
average interest rate for April 1999 and the resulting per-
missible range of interest rates used to calculate current lia-
bility for purposes of the full funding limitation of section
412(c)(7) of the Code are set forth.
EXEMPT ORGANIZATIONS
T.D. 8818, page 3.
Public disclosure of material relating to tax-exempt
organizations.Final regulations under section 6104(d) of
the Code relate to public disclosure requirements applicable
to tax-exempt organizations.
Announcement 99–48, page 20.
A list is given of organizations now classified as private foun-
dations.
ADMINISTRATIVE
T.D. 8818, page 3.
Public disclosure of material relating to tax-exempt
organizations.Final regulations under section 6104(d) of
the Code relate to public disclosure requirements applicable
to tax-exempt organizations.
Rev. Proc. 99–21, page 18.
Refunds and credits; period of limitations; financial
disability. Taxpayers are informed about the information
that is required under section 6511(h)(2)(A) of the Code in
order to request suspension of the period of limitations
under section 6511 for claiming a credit or refund of tax due
to an individual taxpayer’s financial disability.
Notice 99–20, page 16.
Electronic funds transfer; failure to deposit penalty.
Taxpayers are informed that beginning July 1, 1999, certain
taxpayers that deposited more than $200,000 in aggregate
federal depository taxes during calendar year 1998 will be
subject to the 10-percent failure to deposit penalty under
section 6656 of the Code if those taxpayers fail to make de-
posits by electronic funds transfer. The Service will not, how-
ever, impose the section 6656 penalty on taxpayers that did
not deposit more than $200,000 in aggregate federal de-
pository taxes during calendar year 1998 solely for the fail-
ure to deposit by electronic funds transfer.
Internal Revenue
bbuulllleettiinn
Bulletin No. 1999–17
April 26, 1999
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Treasury
Internal Revenue Service
Finding Lists begin on page 24.
IRB 1999-17 4/21/99 11:47 AM Page 1

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.
Mission of the Service
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.
2
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.
IRB 1999-17 4/21/99 11:47 AM Page 2

Section 6104.—Publicity of
Information Required From
Certain Exempt Organizations
and Certain Trusts
26 CFR 301.6104(d)–3: Public inspection and
distribution of applications for tax exemption and
annual information returns of tax-exempt
organizations (other than private foundations).
T.D. 8818
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301 and 602
Public Disclosure of Material
Relating to Tax-Exempt
Organizations
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
final regulations relating to the public dis-
closure requirements of section 6104(d) of
the Internal Revenue Code (Code), as
amended by the Tax and Trade Relief Ex-
tension Act of 1998. These final regula-
tions apply only to tax-exempt organiza-
tions (organizations described in sections
501(c) or (d) and exempt under section
501(a)) other than private foundations.
These final regulations provide guidance
for tax-exempt organizations (other than
private foundations) required to make their
applications for tax exemption and annual
information returns available for public in-
spection. In particular, these regulations
provide guidance for tax-exempt organiza-
tions required to comply with requests
made in person or in writing from individ-
uals who seek a copy of those documents.
These regulations describe how a tax-ex-
empt organization can make those docu-
ments widely available and, therefore, not
be required to provide copies in response
to individual requests. These regulations
also address the standards that apply in de-
termining whether a tax-exempt organiza-
tion is the subject of a harassment cam-
paign and provide guidance on the
applicable procedures for obtaining relief
from the requirement that copies of docu-
ments be provided in response to requests.
DATES: These regulations are effective
June 8, 1999.
FOR FURTHER INFORMATION CON-
TACT: Michael B. Blumenfeld, (202)
622-6070 (not toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information con-
tained in these final regulations have been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number 1545-
1560. Responses to these collections of
information are mandatory.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
control number.
The estimated annual burden per re-
spondent/recordkeeper varies from 0
hours to 55 hours, depending on individ-
ual circumstances with an estimated aver-
age of 30 minutes.
Comments on the accuracy of this bur-
den estimate and suggestions for reducing
the burden should be sent to the Internal
Revenue Service,Attn: IRS Reports
Clearance Officer, OP:FS:FP, Washing-
ton, DC 20224, and to the Office of Man-
agement and Budget,Attn: Desk Officer
for the Department of the Treasury, Office
of Information and Regulatory Affairs,
Washington, DC 20503.
Books or records relating to this collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
This document contains amendments to
the Procedure and Administration Regula-
tions (26 CFR part 301) relating to the
section 6104(d) public disclosure require-
ments applicable to tax-exempt organiza-
tions (organizations described in sections
501(c) or (d) and exempt from taxation
under section 501(a)). Section 6104(d),
as amended by section 14(b) of the Tax
and Trade Relief Extension Act of 1998
(Division J of H.R. 4328, the Omnibus
Consolidated and Emergency Supplemen-
tal Appropriations Act, 1999) (Public Law
105–277, 112 Stat. 2681) (Tax and Trade
Relief Extension Act of 1998), will apply
to requests made to all tax-exempt organi-
zations (other than private foundations)
after June 8, 1999. Until such date, all
tax-exempt organizations continue to be
subject to the requirements of section
6104(e) as currently in effect, without re-
gard to the Tax and Trade Relief Exten-
sion Act of 1998.
Although the Tax and Trade Relief Ex-
tension Act of 1998 extended fully to pri-
vate foundations the public disclosure re-
quirements that apply to other tax-exempt
organizations, those requirements do not
go into effect with respect to private foun-
dations until the 60th day after the Secre-
tary of the Treasury issues final regula-
tions under section 6104(d) that apply to
private foundations. In the meantime, pri-
vate foundations continue to be subject to
the public disclosure requirements under
sections 6104(d) and (e) of the Internal
Revenue Code, as in effect prior to the
Tax and Trade Relief Extension Act of
1998.
Description of Current Law
Section 6104(e)
Section 10702 of the Omnibus Budget
Reconciliation Act of 1987 (OBRA ’87)
added subsection (e) to section 6104.
Section 6104(e) requires each tax-exempt
organization, including one that is a pri-
vate foundation, to allow public inspec-
tion of the organization’s application for
recognition of tax exemption. Section
6104(e) also requires each tax-exempt or-
ganization, other than one that is a private
foundation, to allow public inspection at
the organization’s principal office (and
certain regional or district offices) of its
three most recent annual information re-
turns. (Section 6104(e) does not apply to
private foundation annual information re-
turns, which are subject to public disclo-
sure under section 6104(d), as in effect
prior to the Tax and Trade Relief Exten-
sion Act of 1998.) Under section 6104(e),
each annual information return must be
1999–17 I.R.B.3April 26, 1999
Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
IRB 1999-17 4/21/99 11:47 AM Page 3

made available for a 3-year period begin-
ning on the date the return is required to
be filed or is actually filed, whichever is
later. In Notice 88–120 (1988–2 C.B.
454), the IRS provided tax-exempt orga-
nizations with guidance for complying
with the public inspection requirements.
The Taxpayer Bill of Rights 2
(TBOR2), enacted on July 30, 1996,
amended section 6104(e) by adding addi-
tional public disclosure requirements. As
amended, section 6104(e) requires each
tax-exempt organization, including one
that is a private foundation, to comply
with requests, made either in person or in
writing, for copies of the organization’s
application for recognition of tax exemp-
tion. Section 6104(e) also requires each
tax-exempt organization, other than one
that is a private foundation, to comply
with requests, made either in person or in
writing, for copies of the organization’s
three most recent annual information re-
turns. The organization must fulfill these
requests without charge, other than a rea-
sonable fee for reproduction and postage.
If the request for copies is made in per-
son, the organization generally must pro-
vide the requested copies immediately. If
the request for copies is made in writing,
the organization must provide the copies
within 30 days. Section 6104(e) also pro-
vides that an organization is relieved of its
obligation to provide copies upon request
if, in accordance with regulations promul-
gated by the Secretary of the Treasury, (1)
the organization has made the requested
documents widely available, or (2) the
Secretary of the Treasury determines,
upon application by the organization, that
the organization is subject to a harassment
campaign such that a waiver of the oblig-
ation to provide copies would be in the
public interest.
Issuance of Proposed Regulations under
Section 6104(e)
In Notice 96–48 (1996–2 C.B. 214),
the IRS invited comments on the changes
made by TBOR2. Twenty-two comments
were received and considered in the draft-
ing of a notice of proposed rulemaking
(REG–246250–96, 1997–2 C.B. 627),
published in the Federal Register(62
F.R. 50533) on September 26, 1997. The
IRS received twenty written comments on
the proposed regulations and held a public
hearing on February 4, 1998. After con-
sideration of all the written comments re-
garding the proposed regulations, and the
amendments made by the Tax and Trade
Relief Extension Act of 1998, described
below, those regulations are adopted as
revised by this Treasury decision.
Amendments Made by the Tax and Trade
Relief Extension Act of 1998
The Tax and Trade Relief Extension
Act of 1998, which was enacted on Octo-
ber 21, 1998, amended section 6104(e) of
the Internal Revenue Code to subject pri-
vate foundations to the same rules regard-
ing public disclosure of annual informa-
tion returns that apply to other tax-exempt
organizations. In addition, the Tax and
Trade Relief Extension Act of 1998 re-
pealed existing section 6104(d), and re-
designated section 6104(e), as amended,
as new section 6104(d). (Unless other-
wise noted, all references in these final
regulations to section 6104(d) are to sec-
tion 6104(d) as amended by the Tax and
Trade Relief Extension Act of 1998.)
The Tax and Trade Relief Extension
Act of 1998 amendments apply to re-
quests made after the later of December
31, 1998, or the 60th day after the Secre-
tary of the Treasury issues regulations re-
ferred to in section 6104(d)(4) (relating to
when documents are made widely avail-
able and when a particular request is con-
sidered part of a harassment campaign).
This Treasury decision adopts final regu-
lations under section 6104(d)(4) that are
applicable to tax-exempt organizations
other than private foundations. Accord-
ingly, amendments to section 6104(d) will
become applicable with respect to re-
quests made to tax-exempt organizations
other than private foundations after June
8, 1999.
Future Regulations Will Apply to
Private Foundations
The IRS and the Treasury Department
intend to issue shortly a notice of pro-
posed rulemaking relating to the public
disclosure requirements of section
6104(d) as those requirements apply to
private foundations. Until 60 days after
final regulations are issued, private foun-
dations continue to be subject to sections
6104(d) and (e), as in effect prior to
the Tax and Trade Relief Extension Act
of 1998. For that reason, existing
§301.6104(d)–1, relating to public inspec-
tion of private foundation annual returns,
is not affected by this Treasury decision.
Explanation of Provisions
Overview
The final regulations provide guidance
concerning the application for tax exemp-
tion and annual information returns a tax-
exempt organization, other than a private
foundation, must make available for pub-
lic inspection and must supply in response
to requests for copies. The final regula-
tions also provide guidance on (1) the
place and time the organization must
make these documents available for pub-
lic inspection, (2) conditions the organiza-
tion may place on requests for copies of
the documents, and (3) the amount, form
and time of payment of any fees the orga-
nization may charge. The final regula-
tions also prescribe how an organization
can make its application for tax exemp-
tion and annual information returns
widely available. Finally, the final regu-
lations provide guidance on the standards
that apply in determining whether an or-
ganization is the subject of a harassment
campaign and on the applicable proce-
dures for obtaining relief from the general
requirement that copies of documents be
provided in response to requests.
Application for Tax Exemption
A tax-exempt organization, other than
one that is a private foundation, must
make its application for tax exemption
available pursuant to these final regula-
tions. An application for tax exemption
includes the application form (such as
Form 1023 or Form 1024) and any sup-
porting documents filed by, or on behalf
of, the organization in connection with its
application. It also includes any letter or
document issued by the IRS in connection
with the application. Consistent with the
guidance provided in Notice 88–120, if an
organization filed its application before
July 15, 1987, the final regulations pro-
vide that the organization is required to
make available a copy of its application
only if it had a copy of the application on
July 15, 1987.
Annual Information Returns
A tax-exempt organization, other than
one that is a private foundation, must
April 26, 199941999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 4

make its three most recent annual infor-
mation returns available pursuant to these
final regulations. Generally, an annual in-
formation return includes Forms 990,
990-EZ, 990-BL, and Form 1065. It also
includes, generally, all schedules and at-
tachments filed with the IRS. An organi-
zation is not required, however, to dis-
close the parts of the return that identify
names and addresses of contributors to
the organization, nor is it required to dis-
close Form 990-T.
A few commentators asked that the
final regulations exempt certain items re-
ported on an application for tax exemp-
tion or an annual information return from
disclosure. For example, one commenta-
tor observed that only an organization de-
scribed in section 501(c)(3) is required by
statute (section 6033) to report certain
compensation information. By contrast, it
is the regulations under section 6033 that
require tax-exempt organizations de-
scribed in other parts of section 501(c) or
section 501(d) to report certain compen-
sation information. Accordingly, the
commentator asked that the final regula-
tions require public disclosure of the com-
pensation section of Form 990 only when
it is a statutory requirement, as opposed to
a regulatory requirement, to report such
information. Because section 6104(d) re-
quires, except for specific exceptions, dis-
closure of all the information reported on
an application or return, the IRS and the
Treasury Department decided that requir-
ing public disclosure of compensation in-
formation required to be reported on an
annual information return either by statute
or regulation is consistent with section
6104(d).
One commentator requested that final
regulations require an organization that
has not been determined by the IRS to be
exempt from taxation under section
501(a) to make its application for tax ex-
emption available for public inspection
and to provide copies upon request. Sec-
tion 301.6104(e)–1(b)(3) of the proposed
regulations provided that an organization
is not required to disclose its application
for tax exemption until the IRS deter-
mines it is exempt from taxation. Section
6104(d)(1) requires an organization to
disclose its application for tax exemption
only where it is exempt under section
501(a). Thus, the statute does not require
an organization to disclose its application
for tax exemption while the application is
pending or in a case where the IRS issues
an adverse determination. Accordingly,
the IRS and the Treasury Department con-
tinue to believe that the rule of the pro-
posed regulation is consistent with the
statute and have decided not to change
this provision.
One commentator proposed that a spe-
cial rule be included in the final regula-
tions so that a religious or apostolic orga-
nization described in section 501(d)
would not be required to publicly disclose
a Schedule K-1 of Form 1065 because it
contains taxpayer information with re-
spect to the distributees (i.e., the ratable
portions of the net income and expenses
of the individual members of the organi-
zation). After the submission of this com-
ment, the Internal Revenue Service Re-
structuring and Reform Act of 1998,
Public Law 105–206 (112 Stat. 685) was
enacted. Section 6019 of this Act
amended Code sections 6104(b) and
6104(e) to provide specifically that orga-
nizations described in section 501(d) are
not required to publicly disclose a Sched-
ule K-1 filed by the organization. Consis-
tent with this statutory modification of
section 6104, the final regulations elimi-
nate the requirement that a religious or
apostolic organization described in sec-
tion 501(d) disclose a Schedule K-1.
Place and Time Documents Must Be
Available for Public Inspection
Section 6104(d) requires a tax-exempt
organization to make its documents avail-
able for public inspection, and provide
copies upon request, at its principal office
and at certain regional or district offices.
Under Notice 88–120, certain sites where
services are provided (such as day care or
health care) are not treated as regional or
district offices for purposes of the public
inspection requirements, provided that
such sites do “not serve as offices of man-
agement staff (other than managers in-
volved solely in managing the specific
service of that service provider office).”
The IRS and the Treasury Department
recognize that many tax-exempt organiza-
tions maintain sites where their employ-
ees or volunteers solely provide services
that further exempt purposes, including
services provided directly to the public,
but do not maintain administrative or
management staff at such sites necessary
to respond to public disclosure requests.
Accordingly, the proposed regulations ex-
panded the “service provider exception”
of Notice 88–120 slightly. Under the
proposed regulations, sites where the only
services provided further exempt pur-
poses (such as day care, health care or sci-
entific or medical research) were ex-
cluded from the definition of a regional or
district office. Thus, under the proposed
regulations, a research organization that
maintains a laboratory used solely by in-
dividuals conducting scientific research
on behalf of the organization would not
have to respond to public disclosure re-
quests made at the laboratory even though
the researchers are not providing direct
services to the public. However, a re-
search organization would have a public
disclosure obligation at a laboratory if the
organization also uses space at that loca-
tion as offices for some of its manage-
ment staff (other than those involved
solely in managing the exempt function
activities at the laboratory).
Several comments were received on
this topic. One commentator expressed
the view that the definition of regional or
district office in the proposed regulations
was reasonably well balanced. Other
commentators, however, expressed con-
cern that this definition would reduce the
number of sites from which the docu-
ments could be obtained. One of these
commentators expressed the view that ex-
empting organizations from complying
with public disclosure requests made at
sites where employees engage solely in
providing exempt services would unnec-
essarily complicate the determination
whether an organization is required to re-
spond to public disclosure requests at a
particular site. This commentator sug-
gested that the final regulations treat any
site with 3 or more employees as a re-
gional or district office where an organi-
zation must respond to requests for public
inspection or copies. Another commenta-
tor expressed the view that the exception
for sites dedicated solely to providing ex-
empt services was reasonable, but sug-
gested that the final regulations clarify
what activities would constitute manage-
ment activities that would require an or-
ganization to respond to public disclosure
requests at the site.
The IRS and the Treasury Department
believe that the “regional and district of-
1999–17 I.R.B.5April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 5

fice” rule of section 6104(d) was intended
to enhance the availability of documents
in the case of an organization that main-
tains management staff at one or more of-
fices in addition to its principal office.
However, Congress explicitly recognized
that the burden to an organization of com-
plying with requests for public inspection
or copies made at small regional or dis-
trict offices (those with fewer than 3
employees) would outweigh the public
benefit of increased availability of the
documents. This rationale applies equally
as well to certain sites of a tax-exempt or-
ganization where its employees and vol-
unteers engage solely in providing ser-
vices that further exempt purposes and
which do not serve as an office for man-
agement staff. The IRS and the Treasury
Department believe the rule expressed in
the proposed regulations is consistent
with the intent of the statute and prior IRS
guidance, particularly in light of the new
provisions that allow copies to be ob-
tained by mail. Therefore, the rule of the
proposed regulations is followed in the
final regulations.
The proposed regulations prescribed
how an organization that does not main-
tain a permanent office or whose office
has very limited hours during certain
times of the year can comply with the
public inspection requirements. The pro-
posed regulations also provided rules con-
cerning the conditions the organization
may impose on public inspections that are
consistent with Notice 88–120. In this re-
gard, the final regulations follow the pro-
posed regulations.
The proposed regulations permitted a
principal, regional, or district office of an
organization to use an agent to process re-
quests for copies. One commentator
asked that the final regulations also allow
a tax-exempt organization to retain a local
agent to satisfy the organization’s public
inspection obligation. After careful con-
sideration of this comment, the IRS and
the Treasury Department have concluded
that, to avoid potential inconvenience to
members of the public, it is important that
tax-exempt organizations make their ap-
plications and returns available for in-
spection at their offices. Therefore, the
IRS and the Treasury Department did not
adopt this comment.
Another commentator asked that the
final regulations clarify that an organiza-
tion may apply the same security mea-
sures to individuals that request inspection
or copies that it applies to the public in
general. The IRS and the Treasury De-
partment have determined that the pro-
posed regulations would not preclude a
tax-exempt organization from implement-
ing its normal security measures. Thus, no
change is reflected in the final regulations.
Requirement to Furnish Copy to a
Requester
The proposed regulations generally re-
quired that a tax-exempt organization ac-
cept requests for copies made in person at
the same place and time that the specified
documents must be available for public
inspection. In general, the proposed regu-
lations required that the copies be pro-
vided on the day of the request. However,
the proposed regulations provided that, in
unusual circumstances, an organization
may provide the requested copies on the
next business day. Some commentators
expressed concern that a one-day delay
may not be sufficient. In response to
these comments, the final regulations pro-
vide that an organization must comply
with requests for copies made in person
by providing copies no later than the next
business day following the day the un-
usual circumstances cease to exist. How-
ever, in no event may the period of delay
exceed five business days. In response to
another comment, the final regulations
clarify that unusual circumstances include
times when the organization’s managerial
staff capable of fulfilling the request at-
tends an off-site meeting or convention.
When a request for copies is made in
writing, the proposed regulations required
that a tax-exempt organization mail the
copies within 30 days from the date it re-
ceives the request. However, the pro-
posed regulations provided that, if an or-
ganization requires advance payment of a
reasonable fee for copying and postage, it
may provide the copies within 30 days
from the date it receives payment, rather
than from the date of the initial request.
In addition, the proposed regulations pro-
vided guidance as to what constitutes a re-
quest, when a request is considered re-
ceived, and when copies are deemed
provided. The final regulations follow the
rules in the proposed regulations.
The proposed regulations provided that
individuals may request a specific part of
an application for tax exemption or an-
nual information return. One commenta-
tor expressed concern that requiring a tax-
exempt organization to provide a copy of
only part of a document may create a sig-
nificant burden on the tax-exempt organi-
zation because the organization would
have to identify the particular information
requested. In order to minimize this po-
tential burden, without requiring the re-
quester to pay for a copy of parts of a doc-
ument that the requester has no interest in
obtaining, the final regulations permit a
requester to request a copy of any specifi-
cally identified part or schedule of an ap-
plication or a return (except for informa-
tion which is not subject to public
disclosure under section 6104(d)(3)). For
example, a requester may request a copy
of Part V (List of Officers, Directors,
Trustees and Key Employees) of Form
990.
Reasonable Fee for Providing Copies
Section 6104(d)(1)(B) permits an orga-
nization to charge a reasonable fee for the
cost of copying and mailing documents in
response to requests for copies. The pro-
posed regulations stated that a fee was
reasonable only if it did not exceed the
fees the IRS charges for copies of tax-ex-
empt organization tax returns and related
documents. This fee is currently $1.00
for the first page and $.15 for each subse-
quent page. In addition, the proposed reg-
ulations allowed a charge for actual
postage costs. Some commentators re-
quested that the reasonable fee be greater
than the amount stated in the proposed
regulations. One commentator suggested
that the final regulations allow organiza-
tions to consider personnel costs and not
limit the fee to the IRS charge. The IRS
and the Treasury Department are con-
cerned that permitting organizations to
charge a higher fee could hinder the pub-
lic’s ability to receive a copy of an appli-
cation or return. Consequently, it was de-
cided that, on balance, the reasonable fee
set forth in the proposed regulations is ap-
propriate. Thus, the final regulations
adopt the reasonable fee provision of the
proposed regulations.
The proposed regulations permitted an
organization to collect payment in ad-
vance of providing the requested copies.
Under the proposed regulations, if an or-
April 26, 199961999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 6

ganization receives a written request for
copies with no payment enclosed, and the
organization requires payment in advance,
the organization must request payment
within 7 days from the date it receives the
request. The proposed regulations re-
quired an organization to accept payment
made by cash or money order and, when
the request is made in writing, also accept
payment made by personal check. An or-
ganization is permitted to accept other
forms of payment. One commentator
asked for the elimination of the require-
ment to accept a personal check because
an organization could be liable for bank
charges if there are insufficient funds to
cover the personal check. The final regu-
lations generally follow the proposed reg-
ulations, except that the final regulations
provide that a tax-exempt organization
that accepts payment by credit card is not
required to accept personal checks.
Consistent with the proposed regula-
tions, the final regulations protect re-
questers from unexpected fees where a
tax-exempt organization does not require
prepayment and where a requester does
not enclose prepayment with a request, by
requiring that an organization must re-
ceive consent from a requester before pro-
viding copies for which the fee charged
for copying and postage is in excess of
$20.
Local and Subordinate Organizations
Some commentators stated that the pro-
posed regulations were overly burden-
some with respect to local or subordinate
organizations recognized as tax-exempt
under a group exemption letter or that file
a group return pursuant to §1.6033–2(d)
and Rev. Proc. 80–27 (1980–1 C.B. 677).
Specifically, they objected to the require-
ment that a local or subordinate organiza-
tion make available copies of documents
submitted by the central or parent organi-
zation to the IRS to include the local or
subordinate organization in the group rul-
ing, which often consists of lengthy lists
or directories of names and addresses of
affiliated organizations. In addition, one
commentator expressed the view that the
annual filing under Rev. Proc. 80–27 that
a central or parent organization submits to
the IRS to cover a local or subordinate or-
ganization under its group exemption let-
ter does not constitute an application for
tax exemption within the meaning of sec-
tion 6104(d)(2)(A). In response to these
comments, the final regulations reduce
the burden on local and subordinate orga-
nizations. Under the final regulations, a
local or subordinate organization that re-
ceives a request made in person for in-
spection or for a copy of its application
for tax exemption is required to acquire,
and make available within a reasonable
amount of time (normally not more than
two weeks), the application for a group
exemption letter (if any) filed by the cen-
tral or parent organization. In addition, a
local or subordinate organization must
also make available any documents sub-
mitted by the central or parent organiza-
tion to the IRS to include the subordinate
organization in the group ruling. How-
ever, if the central or parent organization
submits a list or directory of organizations
covered by the group exemption letter, the
local or subordinate organization need
only provide the application for group ex-
emption and those pages of the list or di-
rectory that refer to it. If a local or subor-
dinate organization that does not file its
own annual information return but is cov-
ered under a group return receives a re-
quest made in person for inspection or for
a copy of its annual information return,
the local or subordinate organization must
make its group return available for in-
spection or provide copies within a rea-
sonable amount of time (normally not
more than two weeks). However, if the
group return includes separate schedules
with respect to each local or subordinate
organization included in the group return,
the local or subordinate organization re-
ceiving the request may omit any sched-
ules relating only to other organizations
included in the group return.
If the requester seeks inspection of an
application for tax exemption or an an-
nual information return, the local or sub-
ordinate organization may mail a copy of
the applicable document to the requester
within a reasonable amount of time (nor-
mally not more than two weeks) in lieu of
allowing an inspection. In such a case,
the local or subordinate organization may
not charge for the copies without the con-
sent of the requester. A local or subordi-
nate organization must comply with writ-
ten requests for copies in accordance with
the general rules for written requests dis-
cussed above.
The final regulations also clarify, con-
sistent with Notice 88–120, the obligation
of the central or parent organization to
comply, at its principal office, with re-
quests for inspection or copies of docu-
ments relating to its local and subordinate
organizations.
Making Applications and Information
Returns Widely Available
The final regulations provide that a tax-
exempt organization is not required to
comply with requests for copies if the or-
ganization has made the requested docu-
ments widely available. The final regula-
tions specify that an organization can
make its application for tax exemption
and/or its annual information returns
widely available by posting the applicable
document on the organization’s World
Wide Web page on the Internet or by hav-
ing the applicable document posted on an-
other organization’s World Wide Web
page as part of a database of similar mate-
rials, provided that the documents are
posted in a format which meets the crite-
ria set forth in the final regulations. An
organization that makes its application for
tax exemption and/or its annual informa-
tion returns widely available must provide
the individuals who request copies with
the World Wide Web address where the
documents are available.
The proposed regulations provided that
an organization must post its documents
on its World Wide Web page in a format
that the IRS uses to post forms and publi-
cations. Unlike the proposed regulations,
the final regulations do not enumerate one
or more particular formats that must be
used. Instead, the final regulations pro-
vide that the documents must be posted in
a format that meets the following criteria.
First, any individual with access to the In-
ternet must be able to access, download,
view and print the posted document in a
format which exactly reproduces the
image of the original document filed with
the IRS, except for any information per-
mitted to be withheld from public disclo-
sure under section 6104(d). The final reg-
ulations require an exact reproduction
because a format that does not exactly re-
produce the image of the original docu-
ment may raise questions about the accu-
racy or authenticity of the posted
document. Second, the format must
allow any individual with access to the In-
ternet to access, download, view and print
the posted document without payment of
1999–17 I.R.B.7April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 7

a fee to either the tax-exempt organization
or the entity maintaining the World Wide
Web page and without special computer
hardware or software required for that
format, other than software that is readily
available to members of the public free of
charge.
The IRS and the Treasury Department
understand that some of the formats that
the IRS itself uses to post forms and pub-
lications on the IRS World Wide Web
page may not satisfy the criteria specified
in the final regulations. For example,
some of these formats could require users
to have access to special hardware or soft-
ware that is not commonly used by the
public to access, download, view and
print documents. The final regulations
provide a one-year transition rule for any
tax-exempt organization that posted its
documents on the Internet on or before
April 9, 1999, in a manner consistent with
the proposed regulations. Until June 8,
2000, such an organization will be treated
as having made its documents “widely
available” for purposes of the final regu-
lations even if the format used does not
currently satisfy all of the criteria set forth
in the final regulations.
Some commentators suggested that the
final regulations permit an organization to
post its documents on the Internet in
HTML format. As discussed above, the
approach of the final regulations is to
identify the criteria that an Internet format
must satisfy. The IRS and the Treasury
Department understand that, currently,
when a heavily formatted document, such
as a tax return, is posted in HTML format,
it may not exactly reproduce the image of
the original document.
One format that currently satisfies the
criteria set forth in the final regulations is
Portable Document Format (PDF). PDF
is designed to reproduce the image of the
original document exactly. In addition,
documents in the PDF format can be
viewed, navigated and printed by anyone
using the freely available reader software.
Of course, there may be other formats that
currently satisfy the criteria set forth in
the final regulations. The IRS and the
Treasury Department refer to PDF only
for the purpose of illustrating an accept-
able format. No inference should be
drawn that the IRS and the Treasury De-
partment view PDF as an especially or
singularly qualified format, that IRS and
the Treasury Department endorse or war-
rant a specific document format (or soft-
ware used in connection with a format),
or that use or failure to use a specific doc-
ument format (or software used in con-
nection with a format) will result in any
preferential treatment from the IRS or the
Treasury Department. The IRS and the
Treasury Department note that a specific
format that currently satisfies the ”widely
available” criteria set forth in the final
regulations may be altered such that it no
longer satisfies the “widely available” cri-
teria in the future. Conversely, a specific
format that does not currently satisfy the
“widely available” criteria may be refined
to satisfy the “widely available” criteria in
the future.
As technology advances, the IRS and
the Treasury Department anticipate that
an increasing number of formats will
meet the criteria set forth in the final regu-
lations. Accordingly, the IRS and the
Treasury Department do not intend to
limit technologies that organizations may
use to post their documents as long as the
posted document is readily and freely ac-
cessible and appears, whether viewed on
screen or in print, exactly as the original.
The IRS and the Treasury Department
will continue to consider other additional
methods by which applications and re-
turns could be made widely available.
Accordingly, the final regulations provide
that the Commissioner may prescribe, by
revenue procedure or other guidance, ad-
ditional methods that an organization can
use to make its application for tax exemp-
tion and/or its annual information returns
widely available.
Harassment Campaigns
The proposed regulations provided
guidance in determining whether a tax-
exempt organization is the subject of a ha-
rassment campaign such that requiring
compliance with requests for copies that
are part of the harassment campaign
would not be in the public interest. Gen-
erally, the proposed regulations provided
that a harassment campaign exists where
the relevant facts and circumstances show
that the purpose of a group of requests
was to disrupt the operations of the tax-
exempt organization rather than to obtain
information. The proposed regulations
also contained examples that evaluated
whether particular situations constituted a
harassment campaign and whether an or-
ganization had a reasonable basis for be-
lieving that a request was part of the ha-
rassment campaign. The final regulations
retain this rule and the examples set forth
in the proposed regulations.
The proposed regulations provided that
an organization may suspend compliance
with a request if the organization reason-
ably believes that the request is part of a
harassment campaign. Commentators ex-
pressed concern that, if there is a delay in
the issuance of an IRS determination as to
whether the organization’s belief is rea-
sonable, the organization could be subject
to significant penalties for the intervening
period. The final regulations do not limit
the penalties that may be retroactively im-
posed in cases where an organization is
subsequently determined to have lacked a
reasonable belief for suspending compli-
ance. However, the IRS and the Treasury
Department recognize that it may be ap-
propriate to mitigate penalties in certain
circumstances, especially where a delay
in the issuance of a determination is com-
pletely outside the control of the organi-
zation requesting the determination. The
IRS intends to publish a revenue proce-
dure that will provide additional detail
concerning harassment campaign deter-
minations procedures and may prescribe
rules concerning the imposition and miti-
gation of penalties.
The proposed regulations required an
organization to file an application for a
harassment campaign determination
within 5 days after suspending compli-
ance with a request that the organization
believes to be part of such harassment
campaign. One commentator asked that
the time period for filing an application be
expanded to either 10 or 15 business days.
Another commentator observed, however,
that such an extension of time would fur-
ther delay compliance with requests for
copies that an organization reasonably be-
lieves, but are determined not to be, part
of a harassment campaign. The final reg-
ulations require an organization to file an
application for a harassment determina-
tion within 10 business days after sus-
pending compliance. The IRS and the
Treasury Department believe that this
time period strikes an appropriate balance
by providing organizations sufficient time
to prepare and file an application without
April 26, 199981999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 8

substantially delaying access to copies of
the documents. In addition, the final reg-
ulations allow an organization, without
submitting an application, to disregard re-
quests for copies in excess of two per
month or four per year made by a single
individual or sent from a single address.
Some commentators asked for clarifi-
cation concerning the period that an orga-
nization may continue not to comply with
requests for copies that are part of a ha-
rassment campaign once it has received
such a determination. The IRS and the
Treasury Department believe that the dis-
trict director for the key district in which
the organization’s principal office is lo-
cated (or such other person as the Com-
missioner may designate) should exercise
reasonable discretion, based on the facts
and circumstances of each case, in decid-
ing the exact terms and conditions of a
harassment campaign determination.
Consequently, the final regulations do not
change this provision of the proposed
regulations.
Various comments concerned the exam-
ples of harassment campaigns and re-
quests from members of the news media.
In this regard, example 4 has been modi-
fied to better illustrate that a request made
by a member of the news media is a strong
factor tending to indicate that the request
is not part of a harassment campaign.
Other Matters
The proposed regulations provided that
an individual denied inspection, or a copy,
of an application for tax exemption or an
annual information return could seek as-
sistance from the IRS by providing to the
Director of the Exempt Organizations Di-
vision a statement that describes the re-
quest and the reason for the individual’s
belief that the denial was in violation of
the legal requirements. The final regula-
tions provide instead that such individuals
should send their statements directly to
the district director for the key district in
which the principal office of the tax-ex-
empt organization is located (or such
other person as the Commissioner may
designate). Finally, various comments
raised questions regarding the availability
of an administrative appeal of a harass-
ment campaign determination and
whether harassment campaign applica-
tions and determinations are publicly
available. Whether an administrative ap-
peal is available and whether a harass-
ment campaign determination is publicly
available are matters beyond the scope of
these regulations, but may be addressed in
subsequent guidance.
Effective Date
The final regulations are effective June
8, 1999.
Special Analyses
It is hereby certified that the collections
of information in these regulations will
not have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact that
the average time required to maintain and
disclose the information required under
these regulations is estimated to be 30
minutes for each tax-exempt organization.
This estimate is based on the assumption
that, on average, a tax-exempt organiza-
tion will receive one request per year to
inspect or provide copies of its applica-
tion for tax exemption and its annual in-
formation returns. Less than 0.001 per-
cent of the tax-exempt organizations
affected by these regulations will be sub-
ject to the reporting requirements con-
tained in the regulations. It is estimated
that annually, approximately 1,000 tax-
exempt organizations will make their doc-
uments widely available by posting them
on the Internet. In addition, it is estimated
that annually, approximately 50 tax-ex-
empt organizations will file an application
for a determination that they are the sub-
ject of a harassment campaign such that a
waiver of the obligation to provide copies
of their applications for tax exemption
and their annual information returns is in
the public interest. The average time re-
quired to complete, assemble and file an
application describing a harassment cam-
paign is expected to be 5 hours. Because
applications for a harassment campaign
determination will be filed so infre-
quently, they will have no effect on the
average time needed to comply with the
requirements in these regulations. In ad-
dition, a tax-exempt organization is al-
lowed in these regulations to charge a rea-
sonable fee for providing copies to
requesters. Therefore, it is estimated that
on average it will cost tax-exempt organi-
zations less than $10 per year to comply
with these regulations, which is not a sig-
nificant economic impact. Therefore, a
Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to
section 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking
preceding these regulations was submit-
ted to Small Business Administration for
comment on its impact on small business.
Drafting Information
The principal author of these regula-
tions is Michael B. Blumenfeld, Office of
Associate Chief Counsel (Employee Ben-
efits and Exempt Organizations), IRS.
Other personnel from the IRS and the
Treasury Department also participated in
their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR Parts 301 and
602 are amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 is amended by adding entries in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6104(d)–4 also issued
under 26 U.S.C. 6104(e)(3);
Section 301.6104(d)–5 also issued
under 26 U.S.C. 6104(e)(3); * * *
Par. 2. Sections 301.6104(d)–2 through
301.6104(d)–5 are added to read as fol-
lows:
§301.6104(d)–2 Table of contents.
This section lists captions contained in
§§301.6104(d)–3 through 301.6104(d)–5.
§301.6104(d)–3 Public inspection and
distribution of applications for tax
exemption and annual information
returns of tax-exempt organizations
(other than private foundations).
(a) In general.
(b) Definitions.
(1) Tax-exempt organization.
(2) Private foundation.
(3) Application for tax exemption.
(i) In general.
(ii) No prescribed application form.
(iii) Exceptions.
1999–17 I.R.B.9April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 9

(iv) Local or subordinate organizations.
(4) Annual information return.
(i) In general.
(ii) Exceptions.
(iii) Returns more than 3 years old.
(iv) Local or subordinate organizations.
(5) Regional or district offices.
(i) In general.
(ii) Site not considered a regional or
district office.
(c) Special rules relating to public in-
spection.
(1) Permissible conditions on public in-
spection.
(2) Organizations that do not maintain
permanent offices.
(d) Special rules relating to copies.
(1) Time and place for providing copies
in response to requests made in per-
son.
(i) In general.
(ii) Unusual circumstances.
(iii) Agents for providing copies.
(2) Request for copies in writing.
(i) In general.
(ii) Time and manner of fulfilling writ-
ten requests.
(A) In general.
(B) Request for a copy of parts of docu-
ment.
(C) Agents for providing copies.
(3) Fees for copies.
(i) In general.
(ii) Form of payment.
(A) Request made in person.
(B) Request made in writing.
(iii) Avoidance of unexpected fees.
(iv) Responding to inquiries of fees
charged.
(e) Documents to be provided by re-
gional and district offices.
(f) Documents to be provided by local
and subordinate organizations.
(1) Applications for tax exemption.
(2) Annual information returns.
(3) Failure to comply.
(g) Failure to comply with public in-
spection or copying requirements.
(h) Effective date.
§301.6104(d)–4 Making applications
and returns widely available.
(a) In general.
(b) Widely available.
(1) In general.
(2) Internet posting.
(i) In general.
(ii) Transition rule.
(iii) Reliability and accuracy.
(c) Discretion to prescribe other meth-
ods for making documents widely
available.
(d) Notice requirement.
(e) Effective date.
§301.6104(d)–5 Tax-exempt
organization subject to harassment
campaign.
(a) In general.
(b) Harassment.
(c) Special rule for multiple requests
from a single individual or address.
(d) Harassment determination proce-
dure.
(e) Effect of a harassment determina-
tion.
(f) Examples.
(g) Effective date.
§301.6104(d)–3 Public inspection and
distribution of applications for tax
exemption and annual information
returns of tax-exempt organizations
(other than private foundations).
(a) In general.Except as otherwise
provided in this section, if a tax-exempt
organization (as defined in paragraph
(b)(1) of this section), other than a private
foundation (as defined in paragraph (b)(2)
of this section), filed an application for
recognition of exemption under section
501, it shall make its application for tax
exemption (as defined in paragraph (b)(3)
of this section) available for public in-
spection without charge at its principal,
regional and district offices during regular
business hours. Except as otherwise pro-
vided in this section, a tax-exempt organi-
zation, other than a private foundation,
shall make its annual information returns
(as defined in paragraph (b)(4) of this sec-
tion) available for public inspection with-
out charge in the same offices during reg-
ular business hours. Each annual
information return shall be made avail-
able for a period of three years beginning
on the date the return is required to be
filed (determined with regard to any ex-
tension of time for filing) or is actually
filed, whichever is later. In addition, ex-
cept as provided in §§301.6104(d)–4 and
301.6104(d)–5, an organization shall pro-
vide a copy without charge, other than a
reasonable fee for reproduction and actual
postage costs, of all or any part of any ap-
plication or return required to be made
available for public inspection under this
paragraph to any individual who makes a
request for such copy in person or in writ-
ing. See paragraph (d)(3) of this section
for rules relating to fees for copies.
(b) Definitions. For purposes of apply-
ing the provisions of section 6104(d), this
section and §§301.6104(d)–4 and
301.6104(d)–5, the following definitions
apply:
(1) Tax-exempt organization. The term
tax-exempt organization means any orga-
nization that is described in section 501(c)
or section 501(d) and is exempt from tax-
ation under section 501(a).
(2) Private foundation.The term pri-
vate foundation means a private founda-
tion as defined in section 509(a).
(3) Application for tax exemption—(i)
In general.Except as described in para-
graph (b)(3)(iii) of this section, the term
application for tax exemptionincludes
any prescribed application form (such as
Form 1023 or Form 1024), all documents
and statements the Internal Revenue Ser-
vice requires an applicant to file with the
form, any statement or other supporting
document submitted by an organization in
support of its application, and any letter
or other document issued by the Internal
Revenue Service concerning the applica-
tion (such as a favorable determination
letter or a list of questions from the Inter-
nal Revenue Service about the applica-
tion). For example, a legal brief submit-
ted in support of an application, or a
response to questions from the Internal
Revenue Service during the application
process, is part of an application for tax
exemption.
(ii) No prescribed application form.If
no form is prescribed for an organiza-
tion’s application for tax exemption, the
application for tax exemption includes—
(A) The application letter and copy of
the articles of incorporation, declaration
of trust, or other similar instrument that
sets forth the permitted powers or activi-
ties of the organization;
(B) The organization’s bylaws or other
code of regulations;
(C) The organization’s latest financial
statements showing assets, liabilities, re-
ceipts and disbursements;
(D) Statements describing the character
of the organization, the purpose for which
it was organized, and its actual activities;
April 26, 1999101999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 10

(E) Statements showing the sources of
the organization’s income and receipts
and their disposition; and
(F) Any other statements or documents
the Internal Revenue Service required the
organization to file with, or that the orga-
nization submitted in support of, the ap-
plication letter.
(iii) Exceptions.The term application
for tax exemptiondoes not include—
(A) Any application for tax exemption
filed by an organization that the Internal
Revenue Service has not yet recognized,
on the basis of the application, as exempt
from taxation under section 501 for any
taxable year;
(B) Any application for tax exemption
filed before July 15, 1987, unless the orga-
nization filing the application had a copy
of the application on July 15, 1987; or
(C) Any material, including the mater-
ial listed in §301.6104(a)-1(i) and infor-
mation that the Secretary would be re-
quired to withhold from public
inspection, that is not available for public
inspection under section 6104.
(iv) Local or subordinate organiza-
tions. For rules relating to applications
for tax exemption of local or subordinate
organizations, see paragraph (f)(1) of this
section.
(4) Annual information return—(i) In
general.Except as described in para-
graph (b)(4)(ii) of this section, the term
annual information returnincludes an
exact copy of any return filed by a tax-ex-
empt organization pursuant to section
6033. It also includes any amended re-
turn the organization files with the Inter-
nal Revenue Service after the date the
original return is filed. The copy must in-
clude all information furnished to the In-
ternal Revenue Service on Form 990, Re-
turn of Organization Exempt From
Income Tax, or any version of Form 990
(such as Forms 990-EZ or 990-BL except
Form 990-T) and Form 1065, as well as
all schedules, attachments and supporting
documents, except for the name and ad-
dress of any contributor to the organiza-
tion. For example, the annual information
return includes Schedule A of Form 990
(containing supplementary information
on section 501(c)(3) organizations), and
those parts of the return that show com-
pensation paid to specific persons (cur-
rently, Part V of Form 990 and Parts I and
II of Schedule A of Form 990).
(ii) Exceptions. The term annual infor-
mation returndoes not include Schedule
A of Form 990-BL, Form 990-T, Exempt
Organization Business Income Tax Re-
turn, Schedule K-1 of Form 1065 or Form
1120-POL, U.S. Income Tax Return For
Certain Political Organizations, and the
return of a private foundation. See
§301.6104(d)-1 for requirements relating
to public disclosure of private foundation
annual returns.
(iii) Returns more than 3 years old.
The term annual information returndoes
not include any return after the expiration
of 3 years from the date the return is re-
quired to be filed (including any exten-
sion of time that has been granted for fil-
ing such return) or is actually filed,
whichever is later. If an organization files
an amended return, however, the amended
return must be made available for a period
of 3 years beginning on the date it is filed
with the Internal Revenue Service.
(iv) Local or subordinate organiza-
tions. For rules relating to annual infor-
mation returns of local or subordinate or-
ganizations, see paragraph (f)(2) of this
section.
(5) Regional or district offices—(i) In
general.A regional or district office is
any office of a tax-exempt organization,
other than its principal office, that has
paid employees, whether part-time or
full-time, whose aggregate number of
paid hours a week are normally at least
120.
(ii) Site not considered a regional or
district office.A site is not considered a
regional or district office, however, if—
(A) The only services provided at the
site further exempt purposes (such as day
care, health care or scientific or medical
research); and
(B) The site does not serve as an office
for management staff, other than man-
agers who are involved solely in manag-
ing the exempt function activities at the
site.
(c) Special rules relating to public in-
spection—(1) Permissible conditions on
public inspection.A tax-exempt organi-
zation may have an employee present in
the room during an inspection. The orga-
nization, however, must allow the indi-
vidual conducting the inspection to take
notes freely during the inspection. If the
individual provides photocopying equip-
ment at the place of inspection, the orga-
nization must allow the individual to pho-
tocopy the document at no charge.
(2) Organizations that do not maintain
permanent offices.If a tax-exempt orga-
nization does not maintain a permanent
office, the organization shall comply with
the public inspection requirements of
paragraph (a) of this section by making its
application for tax exemption and its an-
nual information returns, as applicable,
available for inspection at a reasonable lo-
cation of its choice. Such an organization
shall permit public inspection within a
reasonable amount of time after receiving
a request for inspection (normally not
more than 2 weeks) and at a reasonable
time of day. At the organization’s option,
it may mail, within 2 weeks of receiving
the request, a copy of its application for
tax exemption and annual information re-
turns to the requester in lieu of allowing
an inspection. The organization may
charge the requester for copying and ac-
tual postage costs only if the requester
consents to the charge. An organization
that has a permanent office, but has no of-
fice hours or very limited hours during
certain times of the year, shall make its
documents available during those periods
when office hours are limited or not avail-
able as though it were an organization
without a permanent office.
(d) Special rules relating to copies—
(1) Time and place for providing copies in
response to requests made in-person—(i)
In general.Except as provided in para-
graph (d)(1)(iii) of this section, a tax-ex-
empt organization shall provide copies of
the documents it is required to provide
under section 6104(d) in response to a re-
quest made in person at its principal, re-
gional and district offices during regular
business hours. Except as provided in
paragraph (d)(1)(ii) of this section, an or-
ganization shall provide such copies to a
requester on the day the request is made.
(ii) Unusual circumstances.In the case
of an in-person request, where unusual
circumstances exist such that fulfilling the
request on the same business day places
an unreasonable burden on the tax-ex-
empt organization, the organization must
provide the copies no later than the next
business day following the day that the
unusual circumstances cease to exist or
the fifth business day after the date of the
request, whichever occurs first. Unusual
circumstances include, but are not limited
1999–17 I.R.B.11April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 11

to, receipt of a volume of requests that ex-
ceeds the organization’s daily capacity to
make copies; requests received shortly
before the end of regular business hours
that require an extensive amount of copy-
ing; or requests received on a day when
the organization’s managerial staff capa-
ble of fulfilling the request is conducting
special duties, such as student registration
or attending an off-site meeting or con-
vention, rather than its regular administra-
tive duties.
(iii) Agents for providing copies.A
principal, regional or district office of a
tax- exempt organization subject to the re-
quirements of this section may retain a
local agent to process requests made in
person for copies of its documents. A
local agent must be located within reason-
able proximity of the applicable office. A
local agent that receives a request made in
person for copies must provide the copies
within the time limits and under the con-
ditions that apply to the organization it-
self. For example, a local agent generally
must provide a copy to a requester on the
day the agent receives the request. When
a principal, regional or district office of a
tax-exempt organization using a local
agent receives a request made in person
for a copy, it must immediately provide
the name, address and telephone number
of the local agent to the requester. An or-
ganization that provides this information
is not required to respond further to the
requester. However, the penalty provi-
sions of sections 6652(c)(1)(C), 6652(c)-
(1)(D), and 6685 continue to apply to the
tax-exempt organization if the organiza-
tion’s local agent fails to provide the doc-
uments as required under section 6104(d).
(2) Request for copies in writing—(i)
In general.A tax-exempt organization
must honor a written request for a copy of
documents (or the requested part) that the
organization is required to provide under
section 6104(d) if the request—
(A) Is addressed to, and delivered by
mail, electronic mail, facsimile, or a pri-
vate delivery service as defined in section
7502(f) to a principal, regional or district
office of the organization; and
(B) Sets forth the address to which the
copy of the documents should be sent.
(ii) Time and manner of fulfilling writ-
ten requests—(A) In general.A tax-ex-
empt organization receiving a written re-
quest for a copy shall mail the copy of the
requested documents (or the requested
parts of documents) within 30 days from
the date it receives the request. However,
if a tax-exempt organization requires pay-
ment in advance, it is only required to
provide the copies within 30 days from
the date it receives payment. For rules re-
lating to payment, see paragraph (d)(3) of
this section. In the absence of evidence to
the contrary, a request or payment that is
mailed shall be deemed to be received by
an organization 7 days after the date of
the postmark. A request that is transmit-
ted to the organization by electronic mail
or facsimile shall be deemed received the
day the request is transmitted success-
fully. If an organization requiring pay-
ment in advance receives a written re-
quest without payment or with an
insufficient payment, the organization
must, within 7 days from the date it re-
ceives the request, notify the requester of
its prepayment policy and the amount
due. A copy is deemed provided on the
date of the postmark or private delivery
mark (or if sent by certified or registered
mail, the date of registration or the date of
the postmark on the sender’s receipt). If
an individual making a request consents,
a tax-exempt organization may provide a
copy of the requested document exclu-
sively by electronic mail. In such case,
the material is provided on the date the or-
ganization successfully transmits the elec-
tronic mail.
(B) Request for a copy of parts of docu-
ment. A tax-exempt organization must
fulfill a request for a copy of the organiza-
tion’s entire application for tax exemption
or annual information return or any spe-
cific part or schedule of its application or
return. A request for a copy of less than
the entire application or less than the en-
tire return must specifically identify the
requested part or schedule.
(C) Agents for providing copies. A tax-
exempt organization subject to the re-
quirements of this section may retain an
agent to process written requests for
copies of its documents. The agent shall
provide the copies within the time limits
and under the conditions that apply to the
organization itself. For example, if the
organization received the request first
(e.g., before the agent), the deadline for
providing a copy in response to a request
shall be determined by reference to when
the organization received the request, not
when the agent received the request. An
organization that transfers a request for a
copy to such an agent is not required to
respond further to the request. If the or-
ganization’s agent fails to provide the
documents as required under section
6104(d), however, the penalty provisions
of sections 6652(c)(1)(C), 6652(c)(1)(D),
and 6685 continue to apply to the tax-ex-
empt organization.
(3) Fees for copies—(i) In general. A
tax-exempt organization may charge a
reasonable fee for providing copies. A fee
is reasonable only if it is no more than the
per-page copying charge stated in
§601.702(f)(5)(iv)(B) of this chapter (fee
charged by the Internal Revenue Service
for providing copies to a requester), plus
no more than the actual postage costs in-
curred by the organization to provide the
copies. Before the organization provides
the documents, it may require that the in-
dividual requesting copies of the docu-
ments pay the fee. If the organization has
provided an individual making a request
with notice of the fee, and the individual
does not pay the fee within 30 days, or if
the individual pays the fee by check and
the check does not clear upon deposit, the
organization may disregard the request.
(ii) Form of payment—(A) Request
made in person.If a tax-exempt organi-
zation charges a fee for copying (as per-
mitted under paragraph (d)(3)(i) of this
section), it shall accept payment by cash
and money order for requests made in
person. The organization may accept
other forms of payment, such as credit
cards and personal checks.
(B) Request made in writing.If a tax-
exempt organization charges a fee for
copying and postage (as permitted under
paragraph (d)(3)(i) of this section), it
shall accept payment by certified check,
money order, and either personal check
or credit card for requests made in writ-
ing. The organization may accept other
forms of payment.
(iii) Avoidance of unexpected fees.
Where a tax-exempt organization does
not require prepayment and a requester
does not enclose payment with a request,
an organization must receive consent
from a requester before providing copies
for which the fee charged for copying and
postage exceeds $20.
(iv) Responding to inquiries of fees
charged.In order to facilitate a re-
April 26, 1999121999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 12

quester’s ability to receive copies
promptly, a tax-exempt organization shall
respond to any questions from potential
requesters concerning its fees for copying
and postage. For example, the organiza-
tion shall inform the requester of its
charge for copying and mailing its appli-
cation for exemption and each annual in-
formation return, with and without attach-
ments, so that a requester may include
payment with the request for copies.
(e) Documents to be provided by re-
gional and district offices.Except as oth-
erwise provided, a regional or district of-
fice of a tax-exempt organization must
satisfy the same rules as the principal of-
fice with respect to allowing public in-
spection and providing copies of its appli-
cation for tax exemption and annual
information returns. A regional or district
office is not required, however, to make
its annual information return available for
inspection or to provide copies until 30
days after the date the return is required to
be filed (including any extension of time
that is granted for filing such return) or is
actually filed, whichever is later.
(f) Documents to be provided by local
and subordinate organizations–(1) Appli-
cations for tax exemption. Except as oth-
erwise provided, a tax-exempt organiza-
tion that did not file its own application
for tax exemption (because it is a local or
subordinate organization covered by a
group exemption letter referred to in
§1.508–1 of this chapter) must, upon re-
quest, make available for public inspec-
tion, or provide copies of, the application
submitted to the Internal Revenue Service
by the central or parent organization to
obtain the group exemption letter and
those documents which were submitted
by the central or parent organization to in-
clude the local or subordinate organiza-
tion in the group exemption letter. How-
ever, if the central or parent organization
submits to the Internal Revenue Service a
list or directory of local or subordinate or-
ganizations covered by the group exemp-
tion letter, the local or subordinate organi-
zation is required to provide only the
application for the group exemption rul-
ing and the pages of the list or directory
that specifically refer to it. The local or
subordinate organization shall permit
public inspection, or comply with a re-
quest for copies made in person, within a
reasonable amount of time (normally not
more than 2 weeks) after receiving a re-
quest made in person for public inspec-
tion or copies and at a reasonable time of
day. In a case where the requester seeks
inspection, the local or subordinate orga-
nization may mail a copy of the applica-
ble documents to the requester within the
same time period in lieu of allowing an
inspection. In such a case, the organiza-
tion may charge the requester for copying
and actual postage costs only if the re-
quester consents to the charge. If the
local or subordinate organization receives
a written request for a copy of its applica-
tion for tax exemption, it must fulfill the
request in the time and manner specified
in paragraph (d)(2) of this section. The
requester has the option of requesting
from the central or parent organization, at
its principal office, inspection or copies of
the application for group exemption and
the material submitted by the central or
parent organization to include a local or
subordinate organization in the group rul-
ing. If the central or parent organization
submits to the Internal Revenue Service a
list or directory of local or subordinate or-
ganizations covered by the group exemp-
tion letter, it must make such list or direc-
tory available for public inspection, but it
is required to provide copies only of those
pages of the list or directory that refer to
particular local or subordinate organiza-
tions specified by the requester. The cen-
tral or parent organization must fulfill
such requests in the time and manner
specified in paragraphs (c) and (d) of this
section.
(2) Annual information returns.A local
or subordinate organization that does not
file its own annual information return (be-
cause it is affiliated with a central or par-
ent organization that files a group return
pursuant to §1.6033–2(d) of this chapter)
must, upon request, make available for
public inspection, or provide copies of,
the group returns filed by the central or
parent organization. However, if the
group return includes separate schedules
with respect to each local or subordinate
organization included in the group return,
the local or subordinate organization re-
ceiving the request may omit any sched-
ules relating only to other organizations
included in the group return. The local or
subordinate organization shall permit
public inspection, or comply with a re-
quest for copies made in person, within a
reasonable amount of time (normally not
more than 2 weeks) after receiving a re-
quest made in person for public inspec-
tion or copies and at a reasonable time of
day. In a case where the requester seeks
inspection, the local or subordinate orga-
nization may mail a copy of the applica-
ble documents to the requester within the
same time period in lieu of allowing an
inspection. In such a case, the organiza-
tion may charge the requester for copying
and actual postage costs only if the re-
quester consents to the charge. If the
local or subordinate organization receives
a written request for a copy of its annual
information return, it must fulfill the re-
quest by providing a copy of the group re-
turn in the time and manner specified in
paragraph (d)(2) of this section. The re-
quester has the option of requesting from
the central or parent organization, at its
principal office, inspection or copies of
group returns filed by the central or parent
organization. The central or parent orga-
nization must fulfill such requests in the
time and manner specified in paragraphs
(c) and (d) of this section.
(3) Failure to comply.If an organiza-
tion fails to comply with the requirements
specified in this paragraph, the penalty
provisions of sections 6652(c)(1)(C),
6652(c)(1)(D), and 6685 apply.
(g) Failure to comply with public in-
spection or copying requirements.If a
tax-exempt organization denies an indi-
vidual’s request for inspection or a copy
of an application for tax exemption or an
annual information return as required
under this section, and the individual
wants to alert the Internal Revenue Ser-
vice to the possible need for enforcement
action, the individual may provide a state-
ment to the district director for the key
district in which the applicable tax-ex-
empt organization’s principal office is lo-
cated (or such other person as the Com-
missioner may designate) that describes
the reason why the individual believes the
denial was in violation of the require-
ments of section 6104(d).
(h) Effective date.This section is effec-
tive June 8, 1999.
§301.6104(d)–4 Making applications
and returns widely available.
(a) In general.A tax-exempt organiza-
tion is not required to comply with a re-
1999–17 I.R.B.13April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 13

quest for a copy of its application for tax
exemption or an annual information re-
turn pursuant to §301.6104(d)–3(a) if the
organization has made the requested doc-
ument widely available in accordance
with paragraph (b) of this section. An or-
ganization that makes its application for
tax exemption and/or annual information
return widely available must neverthe-
less make the document available for
public inspection as required under
§301.6104(d)–3(a), as applicable.
(b) Widely available—(1) In general.
A tax-exempt organization makes its ap-
plication for tax exemption and/or an an-
nual information return widely available
if the organization complies with the re-
quirements specified in paragraph (b)(2)
of this section, and if the organization sat-
isfies the requirements of paragraph (d) of
this section.
(2) Internet posting—(i) In general. A
tax-exempt organization can make its ap-
plication for tax exemption and/or an an-
nual information return widely available
by posting the document on a World Wide
Web page that the tax-exempt organiza-
tion establishes and maintains or by hav-
ing the document posted, as part of a data-
base of similar documents of other
tax-exempt organizations, on a World
Wide Web page established and main-
tained by another entity. The document
will be considered widely available only
if–
(A) the World Wide Web page through
which it is available clearly informs read-
ers that the document is available and pro-
vides instructions for downloading it;
(B) the document is posted in a format
that, when accessed, downloaded, viewed
and printed in hard copy, exactly repro-
duces the image of the application for tax
exemption or annual information return as
it was originally filed with the Internal
Revenue Service, except for any informa-
tion permitted by statute to be withheld
from public disclosure. (See section
6104(d)(3) and §301.6104(d)–3(b)(3) and
(4)); and
(C) any individual with access to the
Internet can access, download, view and
print the document without special com-
puter hardware or software required for
that format (other than software that is
readily available to members of the public
without payment of any fee) and without
payment of a fee to the tax-exempt orga-
nization or to another entity maintaining
the World Wide Web page.
(ii) Transition rule.A tax-exempt orga-
nization that posted its application for tax
exemption or its annual information re-
turns on a World Wide Web page on or
before April 9, 1999, in a manner consis-
tent with regulation project REG–
246250–96 (1997 C.B. 627) (see
§601.601(d)(2) of this chapter) will be
treated as satisfying the requirements of
paragraphs (b)(2)(i)(B) & (C) of this sec-
tion until June 8, 2000, provided that an
individual can access, download, view
and print the document without payment
of a fee to the tax-exempt organization or
to another entity maintaining the World
Wide Web page.
(iii) Reliability and accuracy.In order
for the document to be widely available
through an Internet posting, the entity
maintaining the World Wide Web page
must have procedures for ensuring the re-
liability and accuracy of the document
that it posts on the page and must take
reasonable precautions to prevent alter-
ation, destruction or accidental loss of the
document when posted on its page. In the
event that a posted document is altered,
destroyed or lost, the entity must correct
or replace the document.
(c) Discretion to prescribe other meth-
ods for making documents widely avail-
able.The Commissioner, from time to
time, may prescribe additional methods,
other than an Internet posting meeting the
requirements of paragraph (b)(2) of this
section, that a tax-exempt organization
may use to make its documents widely
available.
(d) Notice requirement.If a tax-exempt
organization has made its application for
tax exemption and/or an annual informa-
tion return widely available it must notify
any individual requesting a copy where
the documents are available (including
the address on the World Wide Web, if ap-
plicable). If the request is made in per-
son, the organization shall provide such
notice to the individual immediately. If
the request is made in writing, the notice
shall be provided within 7 days of receiv-
ing the request.
(e) Effective date.This section is effec-
tive June 8, 1999.
§301.6104(d)–5 Tax-exempt
organization subject to harassment
campaign.
(a) In general.If the district director
for the key district in which the organiza-
tion’s principal office is located (or such
other person as the Commissioner may
designate) determines that the organiza-
tion is the subject of a harassment cam-
paign and compliance with the requests
that are part of the harassment campaign
would not be in the public interest, a tax-
exempt organization is not required to ful-
fill a request for a copy (as otherwise re-
quired by §301.6104(d)–3(a)) that it
reasonably believes is part of the cam-
paign.
(b) Harassment. A group of requests
for an organization’s application for tax
exemption or annual information returns
is indicative of a harassment campaign if
the requests are part of a single coordi-
nated effort to disrupt the operations of a
tax-exempt organization, rather than to
collect information about the organiza-
tion. Whether a group of requests consti-
tutes such a harassment campaign de-
pends on the relevant facts and
circumstances. Facts and circumstances
that indicate the organization is the sub-
ject of a harassment campaign include: a
sudden increase in the number of re-
quests; an extraordinary number of re-
quests made through form letters or simi-
larly worded correspondence; evidence of
a purpose to deter significantly the orga-
nization’s employees or volunteers from
pursuing the organization’s exempt pur-
pose; requests that contain language hos-
tile to the organization; direct evidence of
bad faith by organizers of the purported
harassment campaign; evidence that the
organization has already provided the re-
quested documents to a member of the
purported harassing group; and a demon-
stration by the tax-exempt organization
that it routinely provides copies of its doc-
uments upon request.
(c) Special rule for multiple requests
from a single individual or address.A tax-
exempt organization may disregard any re-
quest for copies of all or part of any docu-
ment beyond the first two received within
any 30-day-period or the first four received
within any one-year-period from the same
individual or the same address, regardless
April 26, 1999141999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 14

of whether the district director for the ap-
plicable key district (or such other person
as the Commissioner may designate) has
determined that the organization is subject
to a harassment campaign.
(d) Harassment determination proce-
dure. A tax-exempt organization may
apply for a determination that it is the
subject of a harassment campaign and that
compliance with requests that are part of
the campaign would not be in the public
interest by submitting a signed applica-
tion to the district director for the key dis-
trict where the organization’s principal of-
fice is located (or such other person as the
Commissioner may designate). The ap-
plication shall consist of a written state-
ment giving the organization’s name, ad-
dress, employer identification number,
and the name, address and telephone
number of the person to contact regarding
the application. The application must de-
scribe in detail the facts and circum-
stances that the organization believes sup-
port a determination that the organization
is subject to a harassment campaign. The
organization may suspend compliance
with respect to any request for a copy of
its documents based on its reasonable be-
lief that such request is part of a harass-
ment campaign, provided that the organi-
zation files an application for a
determination within 10 business days
from the day the organization first sus-
pends compliance with respect to a re-
quest that is part of the alleged campaign.
In addition, the organization may suspend
compliance with any request it reasonably
believes to be part of the harassment cam-
paign until it receives a response to its ap-
plication for a harassment campaign de-
termination.
(e) Effect of a harassment determina-
tion. If the appropriate district director
(or such other person as the Commis-
sioner may designate) determines that a
tax-exempt organization is the subject of
a harassment campaign and it is not in the
public interest to comply with requests
that are part of the campaign, such organi-
zation is not required to comply with any
request for copies that it reasonably be-
lieves is part of the campaign. This deter-
mination may be subject to other terms
and conditions set forth by the district di-
rector (or such other person as the Com-
missioner may designate). A person (as
defined in section 6652(c)(4)(C)) shall
not be liable for any penalty under sec-
tions 6652(c)(1)(C), 6652(c)(1)(D) or
6685 for failing to timely provide a copy
of documents in response to a request
covered in a request for a harassment de-
termination if the organization fulfills the
request within 30 days of receiving a de-
termination from the district director (or
such other person as the Commissioner
may designate) that the organization is
not subject to a harassment campaign.
Notwithstanding the preceding sentence,
if the district director (or such other per-
son as the Commissioner may designate)
further determines that the organization
did not have a reasonable basis for re-
questing a determination that it was sub-
ject to a harassment campaign or reason-
able belief that a request was part of the
campaign, the person (as defined in sec-
tion 6652(c)(4)(C)) remains liable for any
penalties that result from not providing
the copies in a timely fashion.
(f) Examples.The provisions of this
section are illustrated by the following ex-
amples:
Example 1.V, a tax-exempt organization, re-
ceives an average of 25 requests per month for
copies of its three most recent information returns.
In the last week of May, V is mentioned in a national
news magazine story that discusses information con-
tained in V’s 1996 information return. From June 1
through June 30, 1997 V receives 200 requests for a
copy of its documents. Other than the sudden in-
crease in the number of requests for copies, there is
no other evidence to suggest that the requests are
part of an organized campaign to disrupt V’s opera-
tions. Although fulfilling the requests will place a
burden on V, the facts and circumstances do not
show that V is subject to a harassment campaign.
Therefore, V must respond timely to each of the 200
requests it receives in June.
Example 2.Y is a tax-exempt organization that
receives an average of 10 requests a month for
copies of its annual information returns. From
March 1, 1997 to March 31, 1997, Y receives 25 re-
quests for copies of its documents. Fifteen of the re-
quests come from individuals Y knows to be active
members of the board of organization X. In the past
X has opposed most of the positions and policies
that Y advocates. None of the requesters have asked
for copies of documents from Y during the past year.
Y has no other information about the requesters. Al-
though the facts and circumstances show that some
of the individuals making requests are hostile to Y,
they do not show that the individuals have organized
a campaign that will place enough of a burden on Y
to disrupt its activities. Therefore, Y must respond
to each of the 25 requests it receives in March.
Example 3.The facts are the same as in Exam-
ple 2,except that during March 1997, Y receives
100 requests. In addition to the fifteen requests
from members of organization X’s board, 75 of the
requests are similarly worded form letters. Y dis-
covers that several individuals associated with X
have urged the X’s members and supporters, via the
Internet, to submit as many requests for a copy of
Y’s annual information returns as they can. The
message circulated on the Internet provides a form
letter that can be used to make the request. Both the
appeal via the Internet and the requests for copies
received by Y contain hostile language. During the
same year but before the 100 requests were re-
ceived, Y provided copies of its annual information
returns to the headquarters of X. The facts and cir-
cumstances show that the 75 form letter requests are
coordinated for the purpose of disrupting Y’s opera-
tions, and not to collect information that has already
been provided to an association representing the re-
questers’ interests. Thus, the fact and circum-
stances show that Y is the subject of an organized
harassment campaign. To confirm that it may disre-
gard the 90 requests that constitute the harassment
campaign, Y must apply to the applicable district
director (or such other person as the Commissioner
may designate) for a determination. Y may disre-
gard the 90 requests while the application is pend-
ing and after the determination is received. How-
ever, it must respond within the applicable time
limits to the 10 requests it received in March that
were not part of the harassment campaign.
Example 4.The facts are the same as in Exam-
ple 3,except that Y receives 5 additional requests
from 5 different representatives of the news media
who in the past have published articles about Y.
Some of these articles were hostile to Y. Normally,
the Internal Revenue Service will not consider a
tax-exempt organization to have a reasonable belief
that a request from a member of the news media is
part of a harassment campaign absent additional
facts that demonstrate that the organization could
reasonably believe the particular requests from the
news media to be part of a harassment campaign.
Thus, absent such additional facts, Y must respond
within the applicable time limits to the 5 requests
that it received from representatives of the news
media.
(g) Effective date. This section is ef-
fective June 8, 1999.
PART 602–OMB CONTROL
NUMBERS UNDER THE
PAPERWORK REDUCTION ACT
Paragraph 3. The authority for part 602
continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 4. In §602.101, paragraph (b) is
amended by adding the following entries
in numerical order to the table to read as
follows:
§602.101 OMB Control numbers.
* * * * *
(b) * * *
1999–17 I.R.B.15April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 15

CFR part or section Current OMB
where identified and control No.
described
* * * * *
301.6104(d)–3 . . . . . . . . . . . 1545–1560
301.6104(d)–4 . . . . . . . . . . . 1545–1560
301.6104(d)–5 . . . . . . . . . . . 1545–1560
* * * * *
Robert E. Wenzel,
Deputy Commissioner of
Internal Revenue.
Approved April 8, 1999.
Donald C. Lubick,
Assistant Secretary of
the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on April
8, 1999, 8:45 a.m., and published in the issue of the
Federal Register for April 9, 1999, 64 F.R. 17279)
Electronic Funds Transfer—
Temporary Waiver of Failure
to Deposit Penalty for Certain
Taxpayers
Notice 99–20
This notice provides guidance relating
to News Release IR–1999–27, issued
March 22, 1999, regarding application of
the § 6656 failure to deposit penalty to
taxpayers currently required to deposit by
electronic funds transfer.
In IR–1999–27, the Internal Revenue
Service announced that beginning July 1,
1999, any taxpayer that is currently re-
quired to deposit federal depository taxes
by electronic funds transfer and that de-
posited more than $200,000 in aggregate
federal depository taxes during calendar
year 1998 will be subject to the 10-per-
cent § 6656 failure to deposit penalty if
the taxpayer fails to make deposits by
electronic funds transfer.
The Service will not, however, impose
the § 6656 penalty on taxpayers that did
not deposit more than $200,000 in aggre-
gate federal depository taxes during cal-
endar year 1998 solely for the failure to
deposit by electronic funds transfer. This
waiver applies only to deposit obligations
incurred after June 30, 1999, and on or
before December 31, 1999. This waiver
in no way affects the waiver announced in
Notice 99–12, 1999–9 I.R.B. 44, covering
the period beginning January 1, 1999, and
ending June 30, 1999.
BACKGROUND
Section 6302(h)(1)(A) provides that the
Secretary will prescribe regulations nec-
essary for the development and imple-
mentation of an electronic funds transfer
system for the collection of depository
taxes. Section 6302(h)(2) provides a
phase-in schedule for the system.
Section 31.6302–1(h) of the Employ-
ment Taxes and Collection of Income Tax
at Source Regulations prescribes rules for
implementing an electronic funds transfer
system for the collection of depository
taxes. Under the regulation, taxpayers are
required to deposit taxes by electronic
funds transfer if the amount of their de-
pository taxes in a specified earlier year
exceeds the applicable threshold amount.
The regulation provides that taxpayers
with more than $50,000 of federal em-
ployment tax deposits in calendar year
1995 must use electronic funds transfer to
make deposits that are due on or after July
1, 1997, and relate to return periods be-
ginning on or after January 1, 1997. Tax-
payers with more than $50,000 in em-
ployment tax deposits in calendar year
1996 must use electronic funds transfer to
make deposits of taxes that are due on or
after January 1, 1998, relating to return
periods beginning on or after January 1,
1998. Taxpayers with more than $50,000
in employment tax deposits in calendar
year 1997 must use electronic funds trans-
fer to make deposits of taxes that are due
on or after January 1, 1999, relating to re-
turn periods beginning on or after January
1, 1999.
In addition, under the regulations, tax-
payers with no employment tax deposits
in either 1995 or 1996, but with more than
$50,000 in other federal tax deposits in ei-
ther 1995 or 1996, must use electronic
funds transfer to make deposits of taxes
that are due on or after January 1, 1998,
relating to return periods beginning on or
after January 1, 1998. Taxpayers with no
employment tax deposits in 1997, but
with more than $50,000 in other federal
tax deposits in 1997, must use electronic
funds transfer to make deposits of taxes
that are due on or after January 1, 1999,
relating to return periods beginning on or
after January 1, 1999.
Section 6656(a) provides that in the
case of any failure by any person to de-
posit taxes on the prescribed date in an
authorized government depository, a
penalty applies unless the failure is due to
reasonable cause and not due to willful
neglect. Rev. Rul. 95–68, 1995–2 C.B.
272, provides that, absent reasonable
cause, a taxpayer that is required to de-
posit federal taxes by electronic funds
transfer is subject to the 10-percent failure
to deposit penalty if the taxpayer deposits
the taxes by means other than electronic
funds transfer.
Notice 97–43, 1997–2 C.B. 294, pro-
vides that, in the case of taxpayers first re-
quired to deposit electronically on or after
July 1, 1997, the Internal Revenue Ser-
vice will not impose the 10-percent
§ 6656 penalty solely for the failure to
make the deposit electronically, provided
the deposit is otherwise made in a timely
manner. This waiver applies only to de-
posit obligations incurred on or before
December 31, 1997.
Section 931 of the Taxpayer Relief Act
of 1997, Pub. L. No. 105–34, 111 Stat.
881, provides that no penalty shall be im-
posed under the Internal Revenue Code
solely by reason of a failure by a person to
use the electronic fund transfer system es-
tablished under § 6302(h) of the Code if
(1) the person is a member of a class of
taxpayers first required to use such sys-
tem on or after July 1, 1997, and (2) the
failure occurs before July 1, 1998.
Notice 98–30, 1998–22 I.R.B. 9, pro-
vides that, in the case of taxpayers first re-
quired to deposit electronically on or after
July 1, 1997, the Internal Revenue Ser-
vice will not impose the 10-percent
§ 6656 penalty solely for the failure to
make the deposit electronically provided
the deposit is otherwise made in a timely
manner. This waiver applies only to de-
posit obligations incurred on or before
December 31, 1998.
Notice 99-12 provides that for taxpay-
ers first required to make federal tax de-
posits electronically on or after July 1,
1997, the Service will not impose the 10-
percent § 6656 penalty solely for the fail-
ure to make those deposits by electronic
funds transfer provided the deposit is oth-
erwise made in a timely manner. This
April 26, 1999161999–17 I.R.B.
IRB 1999-17 4/21/99 11:47 AM Page 16

waiver applies only to deposit obligations
incurred on or before June 30, 1999.
CONTINUED TEMPORARY WAIVER
OF PENALTY FOR CERTAIN
TAXPAYERS
For taxpayers that did not deposit more
than $200,000 in aggregate federal deposi-
tory taxes during calendar year 1998, the
Service will not impose the 10-percent
§ 6656 penalty solely for the failure to
make deposits by electronic funds transfer.
However, a taxpayer will remain liable for
the § 6656 penalty (absent reasonable
cause) if the taxpayer fails to make a re-
quired deposit in a timely manner.
This waiver of the 10-percent § 6656
penalty applies only to deposit obligations
incurred after June 30, 1999, and on or
before December 31, 1999. The penalty
waiver includes deposits made after De-
cember 31, 1999, provided the deposit
obligation was incurred on or before De-
cember 31, 1999. The penalty waiver ap-
plies to any taxpayer that did not deposit
more than $200,000 in aggregate federal
depository taxes during calendar year
1998, including a taxpayer that was first
required to deposit by electronic funds
transfer in 1995 or 1996.
DRAFTING INFORMATION
The principal author of this notice is
Vincent G. Surabian of the Office of As-
sistant Chief Counsel (Income Tax and
Accounting). For further information re-
garding the penalty waiver, contact Mr.
Surabian at (202) 622-4940 (not a toll-
free call).
1999–17 I.R.B.17April 26, 1999
IRB 1999-17 4/21/99 11:47 AM Page 17

April 26, 1999181999–17 I.R.B.
26 CFR 601.105: Examination of returns and
claims for refund, credit, or abatement;
determination of correct tax liability.
(Also Part I, section 6511.)
Rev. Proc. 99–21
SECTION 1. PURPOSE
This revenue procedure describes the
information that is required under
§ 6511(h)(2)(A) of the Internal Revenue
Code in order to request suspension of the
period of limitations under § 6511 for
claiming a credit or refund of tax due to
an individual taxpayer’s financial disabil-
ity. This information is required to be
submitted with the taxpayer’s claim for
credit or refund of tax.
SECTION 2. BACKGROUND
.01 Generally, under § 6511(a), a tax-
payer must file a claim for credit or re-
fund of tax within three years after the
date of filing a tax return or within two
years after the date of payment of the tax,
whichever period expires later.
.02 Section 6511(h), as added by
§ 3202 of the Internal Revenue Service
Restructuring and Reform Act of 1998,
Pub. L. No. 105–206, 112 Stat. 685 (July
22, 1998), suspends the statute of limita-
tions period for filing a claim for credit or
refund under § 6511(a) for any period of
an individual taxpayer’s life during which
the taxpayer is unable to manage the tax-
payer’s financial affairs because of a
medically determinable mental or physi-
cal impairment that can be expected to re-
sult in death, or has lasted (or can be ex-
pected to last) for a continuous period of
not less than 12 months. Further, a tax-
payer is not considered to be financially
disabled during any period in which the
taxpayer’s spouse or any other person is
authorized to act on behalf of the taxpayer
in financial matters. Section 6511(h)(2)-
(A) requires that proof of the taxpayer’s
financial disability be furnished to the In-
ternal Revenue Service.
SECTION 3. SCOPE
This revenue procedure applies to indi-
vidual taxpayers for any period of finan-
cial disability, regardless of when it oc-
curs, except if the taxpayer’s claim for
credit or refund was otherwise barred
(without regard to § 6511(h)) by opera-
tion of any law or rule of law (including
res judicata) as of July 22, 1998, the date
§ 6511(h) was enacted.
SECTION 4. PROCEDURE
Unless otherwise provided in IRS
forms and instructions, the following
statements are to be submitted with a
claim for credit or refund of tax to claim
financial disability for purposes of
§ 6511(h).
(1) a written statement by a physi-
cian (as defined in § 1861(r)(1) of the So-
cial Security Act, 42 U.S.C. § 1395x(r)),
qualified to make the determination, that
sets forth:
(a) the name and a description of
the taxpayer’s physical or mental impair-
ment;
(b) the physician’s medical opin-
ion that the physical or mental impair-
ment prevented the taxpayer from manag-
ing the taxpayer’s financial affairs;
(c) the physician’s medical opin-
ion that the physical or mental impair-
ment was or can be expected to result in
death, or that it has lasted (or can be ex-
pected to last) for a continuous period of
not less than 12 months;
(d) to the best of the physician’s
knowledge, the specific time period dur-
ing which the taxpayer was prevented by
such physical or mental impairment from
managing the taxpayer’s financial affairs;
and
(e) the following certification,
signed by the physician:
I hereby certify that, to the best of
my knowledge and belief, the above
representations are true, correct, and
complete.
(2) A written statement by the person
signing the claim for credit or refund that
no person, including the taxpayer’s
spouse, was authorized to act on behalf of
the taxpayer in financial matters during
the period described in paragraph (1)(d)
of this section. Alternatively, if a person
was authorized to act on behalf of the tax-
payer in financial matters during any part
of the period described in paragraph
(1)(d), the beginning and ending dates of
the period of time the person was so au-
thorized.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective for
claims within the scope of this revenue
procedure filed on or after July 22, 1998.
SECTION 6. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Of-
fice of Management and Budget (OMB)
in accordance with the Paperwork Reduc-
tion Act (44 U.S.C. § 3507) under control
number 1545–1649.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
OMB control number.
The collection of information is con-
tained in section 4 of this revenue proce-
dure. This information is required to es-
tablish a taxpayer’s financial disability for
purposes of § 6511(h)(2)(A). The likely
respondents are individual taxpayers and
physicians.
The estimated total annual reporting
burden is 24,100 hours.
The estimated annual burden per re-
spondent will vary from 15 minutes to 45
minutes, depending on individual circum-
stances, with an estimated average of 30
minutes. The estimated number of re-
spondents is 48,200.
The estimated annual frequency of re-
sponses is on occasion.
Books and records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
return information are confidential, as re-
quired by § 6103.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Paul E. Tellier of the Office
of Assistant Chief Counsel (Income Tax
and Accounting). For further information
regarding this revenue procedure contact
Mr. Tellier on (202) 622-4930 (not a toll-
free call).
Part III. Administrative, Procedural, and Miscellaneous
IRB 1999-17 4/21/99 11:47 AM Page 18

Drafting Information
The principal author of this notice is
Todd Newman of the Employee Plans Di-
vision. For further information regarding
this notice, call (202) 622-6076 between
2:30 and 3:30 p.m. Eastern time (not a
toll-free number). Mr. Newman’s number
is (202) 622-8458 (also not a toll-free
number).
1999–17 I.R.B.19April 26, 1999
Weighted Average Interest Rate
Update
Notice 99–21
Notice 88–73 provides guidelines for
determining the weighted average interest
rate and the resulting permissible range of
interest rates used to calculate current lia-
bility for the purpose of the full funding
limitation of § 412(c)(7) of the Internal
Revenue Code as amended by the Om-
nibus Budget Reconciliation Act of 1987
and as further amended by the Uruguay
Round Agreements Act, Pub. L. 103–465
(GATT).
The average yield on the 30-year Trea-
sury Constant Maturities for March 1999
is 5.58 percent.
The following rates were determined
for the plan years beginning in the month
shown below.
90% to 105%90% to 110%
WeightedPermissiblePermissible
MonthYearAverageRangeRange
April19996.115.50 to 6.425.50 to 6.72
IRB 1999-17 4/21/99 11:47 AM Page 19

April 26, 1999201999–17 I.R.B.
Part IV. Items of General Interest
Foundations Status of Certain
Organizations
Announcement 99–48
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. Accordingly,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. This
listing does notindicate that the organiza-
tions have lost their status as organiza-
tions described in section 501(c)(3), eligi-
ble to receive deductible 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:
SAFE Foundation Inc., Orlando, FL
S D Prism Dance Theatre, Philadelphia,
PA
S O S Appeal for Life, Chicago, IL
STOPInc., Memphis, TN
STRIVE, Scotts Valley, CA
Sacramento Area Volunteers in
Education, Sacramento, CA
Sacramento Retirement Association,
Sacramento, CA
Safe Children-Strong Families Inc.,
Naples, FL
Safe Haven Ministries Inc., Carrollton, IL
Safe Space Committee, Penfield, NY
Safety Village Iowa City-Coralville Inc.,
Iowa City, IA
Saint Tammany Sexual Assault Network
Inc., Covington, LA
Salama Fellowship Urban Ministries Inc.,
Nashville, TN
Salem Inc., Minneapolis, MN
Salem Social Services Corp., Memphis,
TN
Salisbury Club, St. Louis, MO
Salt Council Inc., Las Vegas, NV
Salt Ministries Inc., Houston, TX
Salt of the Earth Outreach Ministries,
East Hazel Crest, IL
Sample Soap Inc., Rochester, NY
San Angelo Code Blue Crime Watch Inc.,
San Angelo, TX
San Antonio Art Center, San Antonio, TX
San Diego Chapter Order of AHEPA No.
223, San Diego, CA
San Diego County All Star Basketball
Club, Lemon Grove, CA
San Francisco Irish Film Festival, Mill
Valley, CA
San-Hi Junior All American Football
Inc., San Bernardino, CA
San Juan Project, Salt Lake City, UT
Sandhill Estates Inc., Wheeler, TX
Santa Cruz Mutual Housing Association,
Santa Cruz, CA
Santa Fe School for Deaf Dalmatians,
Santa Fe, NM
Santa Society of Oakland, Bingham
Farms, MI
Sao Paulo Association for the Rescue of
Kids Inc., Robinson, IL
Savannah Support Council Inc.,
Savannah, GA
Savoreux Development Foundation Inc.,
Washington, DC
Scargro Home Inc., Columbus, OH
Schleicher County Community Services
Council, Eldorado, TX
Schoolhouse Inc., Cumberland Furnace,
TN
Schuetz Teams Outreach International,
Richland, WA
Science Enrichment Institute, Tulsa, OK
Scientific Games Inc. Employee Civic
Association, Alpharetta, GA
Scleroderma Federation of Ohio, Dayton,
OH
Scotia Dancers, New York, NY
Scottsdale Association of Men for the
Arts, Phoenix, AZ
Sea Legs Inc., San Pedro, CA
Second Chance Animal Rescue Inc.,
Lexington, NC
Second Chance Ranch Inc., Gadsden, AL
Second Chance Wildlife Center, West
Pittston, PA
Second District Commerce Network Inc.,
St. Louis, MO
Second Sight International, Portland, OR
Second Wind Aviation Safety Foundation
Inc., East Patchogue, NY
Section 5 Wrestling Organization Inc.,
Rush, NY
Sedalia Downtown Development
Incorporated, Sedalia, MO
Sedona Canyons Preservation
Association, Sedona, AZ
Seeds of Change, Chicago, IL
Sekvek Renewable Energy
Environmental Systems Non-Profit,
Mineola, NY
Selected Readings in Oral and
Maxillofacial Surgery Inc., Irving, TX
Self-Employment Economic
Development Council Inc., Clarkston,
WA
Self Help Crafts of the World Inc.,
Harrisonburg, VA
Sellersburg Shop with a Cop Inc.,
Sellersburg, IN
Seneca County AIDS Council, Tiffin, OH
Senior Broadcast Communications Inc.,
Durham, NC
Senior Citizen Center Inc. Pittsburg
Kansas, Pittsburg, KS
Senior Citizen TR Fund of Blue Springs,
Blue Springs, MO
Senior Citizens Association for
Information, Kansas City, MO
Senior Citizens Center Board
Incorporated, Park Rapids, MN
Senior Citizens Low Income Support
Group, Kernville, CA
Senior Housing Inc., Hampton, VA
Senior Meals Inc., Hampton, VA
Seniors Foundation, Fairfax, VA
Seniors Foundation Inc., Boston, MA
September House, Rochester, NY
Seraphim Dance Theatre Inc., Brooklyn,
NY
Serbian American Medical and Dental
Society, Chicago, IL
Serendipity Press, Mendota Heights, MN
Serenity Oriented Alternative Residences
Inc., Jonesboro, GA
Service Club of Andover Inc., Andover,
MA
Serving Our Savior Ministries, Paris, IL
Seth Pomeroy Family Ministries, Parker,
CO
Sexual Abuse Intervention Network of
Lake County, Grays Lake, IL
Seven Sisters Womens Environmental
Network, Chesterfield, NH
Seventh Day Adventist Laymen
Association Inc., Silver Spring, MD
Shadduli Center Inc., Santa Fe, NM
Shady Brook Foundation Inc., Houston,
TX
Shakedown Alliance, Bloomfield Hills,
MI
Share Foundation Inc., Pittsburgh, PA
Share International Inc., Wheat Ridge,
CO
IRB 1999-17 4/21/99 11:47 AM Page 20

1999–17 I.R.B.21April 26, 1999
Sharing Hearts and Nurturing Elders,
Antioch, CA
Sharon Soccer Association Inc., Sharon,
MA
Shasta High School District Booster
Foundation, Redding, CA
Shattermask Theatre, St. Louis, MO
Shawnee Free-Net Inc., Carbondale, IL
Shawnee Gardens Tenants Association
Inc., Louisville, KY
She Company, Washington, DC
Shearer Elementary School Parent
Teacher Organization of Winchester,
Winchester, KY
Shechinah Inc., Georgetown, DE
Shelbina Community Advancement
Corporation, Shelbina, MO
Shelby Christian Outreach Inc., Shelby,
OH
Shelby Valley Volunteer Fire Department
Inc., Robinson Creek, KY
Sheldon Park Neighborhood
Improvement Association, Muskegon,
MI
Shelter Assistance Association Inc., Santa
Rosa, CA
Shelter Island Choristers, Shelter Island,
NY
Shenandoah Bible Ministries, Mt.
Crawford, VA
Shepard Fold Ministries Inc., Phoenix,
NY
Shepherds Rest, Grover Beach, CA
Sherburne Area Youth Soccer
Organization, Sherburne, NY
Sherman Street Housing Corporation,
Gorham, ME
Showtime Express Community Theatre,
Granite City, IL
Shrewsbury School Foundation Inc.,
Washington, DC
Sidney-Shelby County Business
Advisory Council Inc., Sidney, OH
Sierra County Eldercare Services
Corporation, Truth or Consequences,
NM
Sierra Leone Relief Fund, Wilmington,
DE
Sierra Nevada Balalaika Society Inc.,
Reno, NV
Sierra Psychological Services, Reno, NV
Silent Communicator Inc., Keene, TX
Silkworth House Inc., Delmar, NY
Silo Senior Citizens Inc., Durant, OK
Silver Creek Community Services Inc.,
Carey, ID
Silver Moon Vintage Dance Ensemble,
Minneapolis, MN
Silver Sands Productions Inc., Ozone
Park, NY
Silverstar Foundation, Colorado Springs,
CO
Silvertone Ministries Inc., Sugar Land,
TX
Simple Society, Nashua, NH
Single-Parent Family Adoption Society
of West Virginia, Martinsburg, WV
Siouxlands Fantasy Christmas Inc., Sioux
City, IA
Sisters, Lynchburg, VA
Sisters-Crisis Pregnancy Ministry,
Lansing, MI
Six Thirty One Pieta Place Inc., Cranford,
NJ
Sixth Avenue Baptist Education
Foundation, Birmingham, AL
Slatington Community Ambulance
Service Inc., Slatington, PA
Solvak American Foundation for
Education and Science Inc., San
Diego, CA
Small World Child Care Center, Laurel,
MS
Smith Childrens Charities, Greenwich,
CT
WAIT-Workers Against Inhumane
Treatment, Bismarck, ND
W F S Multi-Purpose Center Funding
Corporation, Tuscaloosa, AL
Wadena County Child Safe, Wadena,
MN
Wagarville Nutritional Center Inc.,
Wagarville, AL
Walkersville Track Club Inc.,
Walkersville, MD
Wally Russell Fund, Dallas, TX
Walter Major Institute, Springfield, MO
Walterboro Soccer Club Inc., Walterboro,
SC
Wandas Fund-the Fund for Women
Active in Our Nations Defense,
Denver, CO
Warren Avenue Radio Patrol, Detroit, MI
Washington Chapter of the Foundation
for North American Wild Sheep,
Redmond, WA
Washington DC Association of Urban
Bankers Foundation, Washington, DC
Washington Metropolitan Area Affiliate
of the American, Washington, DC
Washington Refugee Resettlement,
Seattle, WA
Watchung Hills Girls Softball
Association Inc., Warren, NJ
Watchung Mountain K-9 Search and
Rescue Inc., Florham Park, NJ
Waterboy Ministries, Las Vegas, NV
Watkins Area Swimming Pool Inc.,
Watkins, MN
Wax Paragon, Saginaw, MI
Way to Communicate, Chicago, IL
We Are the People, Houston, TX
Weatherford Arts Council Association,
Weatherford, OK
Weatherford Youth Camp Inc.,
Weatherford, TX
Wee Share Inc., Birmingham, AL
Weequahic Park Association Inc.,
Newark, NJ
Wellness Community-Inland Valley Inc.,
Upland, CA
Wellspring Incorporated, Alexandria, VA
Were for Kids Organization, Bernardston,
MA
Wesley Daycare Center, Syracuse, NY
West African Child Development Fund
Inc., Silver Spring, MD
West Florin Place, Sacramento, CA
West Georgia Community Development
Corporation, Newnan, GA
West Hardin Senior Center, Hull, TX
West Haven Koaster Kar Race Inc., West
Haven, CT
West Haven Senior Basketball League
Inc., W. Haven, CT
West Hernando Youth Athletic Club Inc.,
Spring Hill, FL
West Michigan-St. Petersburg Region
International Exchange Council, East
Grand Rapids, MI
West Palm Beach Centennial Committee
Inc., West Palm Beach, FL
West Plains Boxing Club, W. Plains,
MO
West Side Industrial Research &
Retention Corporation, Chicago, IL
West Side Neighborhood Development
Association Inc., Newark, NJ
West Side Operation Weed and Seed
Corporation, Grand Rapids, MI
West Texas Freedom Corporation,
Midland, TX
Westbrook Basketball Boosters,
Westbrook, ME
Western New York Amateur Sports
Commission Inc., Buffalo, NY
Western Pennsylvania Combined
Training Association, Pittsburgh, PA
IRB 1999-17 4/21/99 11:47 AM Page 21

April 26, 1999221999–17 I.R.B.
Western Pennsylvania Policy Forum,
Erie, PA
Western Pennsylvania Veterans
Development Center, Johnstown, PA
Western Wake Senior Center Inc., Cary,
NC
Westfield Police Association Inc.,
Westfield, MA
Westside Alliance for Revitalization Inc.,
Bartlesville, OK
Westside Community Church,
Bloomington, IN
Westside Constituency Center, Newman,
CA
Westwind Community Programs Inc.,
Richmond, CA
Wharton Business School Club of Long
Island Inc., New York, NY
Whatcom County Fire District 10,
Bellingham, WA
Whatever It Takes Inc., Endicott, NY
Wheeler Halfway House Inc., Houston,
TX
Wheeling Works Inc., Wheeling, WV
Whirlwind Ministries, Fort Worth, TX
White County Correctional Ministry,
Searcy, AR
White Deer Search and Rescue, New
Columbia, PA
Whittier Inter-Faith Retirement Center,
Detroit, MI
Whole Village Family Resource Center,
Plymouth, NH
Wholechild Parenting Inc., Denver, CO
Wholeness Institute for Research and
Therapy Inc., Hurst, TX
Wilber D Mills Memorial Foundation,
Bryant, AR
Wilderness Experiences Inc., Kansas
City, KS
Wildlife Center of Houston Inc.,
Houston, TX
Wildlife Rehabilitators Association of
Rhode Island Inc., N. Kingston, RI
Wiley Post Flight Number 46 Order of
Daedalians Inc., Tinker AFB, OK
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as a
private operating foundation, the Internal
Revenue Service will issue a ruling or 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.
IRB 1999-17 4/21/99 11:47 AM Page 22

1999–17 I.R.B.23April 26, 1999
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”)
that have an effect on previous rulings
use the following defined terms to de-
scribe 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 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.
Definition of Terms
IRB 1999-17 4/21/99 11:47 AM Page 23

April 26, 1999241999–17 I.R.B.
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.
Numerical Finding List
1
Bulletins 1999–1 through 1999–16
Announcements:
99–1, 1999–2 I.R.B. 41
99–2, 1999–2 I.R.B. 44
99–3, 1999–3 I.R.B. 15
99–4, 1999–3 I.R.B. 15
99–5, 1999–3 I.R.B. 16
99–6, 1999–4 I.R.B.24
99–7, 1999–2 I.R.B. 45
99–8, 1999–4 I.R.B.24
99–9, 1999–4 I.R.B. 24
99–10, 1999–5 I.R.B. 63
99–11, 1999–5 I.R.B. 64
99–12, 1999–5 I.R.B. 65
99–13, 1999–6 I.R.B. 18
99–14, 1999–7 I.R.B.60
99–15, 1999–8 I.R.B.78
99–16, 1999–8 I.R.B. 80
99–17, 1999–9 I.R.B. 59
99–18, 1999–13 I.R.B. 21
99–19, 1999–10 I.R.B. 63
99–20, 1999–11 I.R.B.53
99–21, 1999–11 I.R.B.55
99–22, 1999–12 I.R.B. 32
99–23, 1999–15 I.R.B. 7
99–24, 1999–14 I.R.B. 12
99–25, 1999–12 I.R.B. 35
99–26, 1999–14 I.R.B. 20
99–27, 1999–13 I.R.B. 22
99–28, 1999–13 I.R.B. 25
99–29, 1999–13 I.R.B. 25
99–30, 1999–13 I.R.B. 26
99–31, 1999–13 I.R.B. 26
99–32, 1999–14 I.R.B.20
99–33, 1999–14 I.R.B. 21
99–34, 1999–15 I.R.B. 8
99–35, 1999–14 I.R.B. 22
99–36, 1999–16 I.R.B. 10
99–37, 1999–15 I.R.B. 9
99–38, 1999–15 I.R.B. 9
99–39, 1999–15 I.R.B. 10
99–40, 1999–16 I.R.B. 10
99–41, 1999–16 I.R.B. 10
99–42, 1999–16 I.R.B. 11
99–43, 1999–16 I.R.B. 11
99–44, 1999–16 I.R.B. 12
99–45, 1999–16 I.R.B. 12
99–46, 1999–16 I.R.B. 13
Notices:
99–1, 1999–2 I.R.B. 8
99–2, 1999–2 I.R.B. 8
99–3, 1999–2 I.R.B. 10
99–4, 1999–3 I.R.B. 9
99–5, 1999–3 I.R.B. 10
99–6, 1999–3 I.R.B. 12
99–7, 1999–4 I.R.B.23
99–8, 1999–5 I.R.B. 26
99–9, 1999–4 I.R.B. 23
99–10, 1999–6 I.R.B. 14
99–11, 1999–8 I.R.B.56
99–12, 1999–9 I.R.B. 44
99–13, 1999–10 I.R.B. 26
99–14, 1999–11 I.R.B.7
99–15, 1999–12 I.R.B.20
99–16, 1999–13 I.R.B.10
99–17, 1999–14 I.R.B.6
Notices—Continued
99–18, 1999–16 I.R.B. 4
99–19, 1999–16 I.R.B. 4
Proposed Regulations:
REG–209103–89, 1999–11 I.R.B. 10
REG–209619–93, 1999–10 I.R.B. 28
REG–245562–96, 1999–9 I.R.B. 45
REG–104072–97, 1999–11 I.R.B. 12
REG–114663–97, 1999–6 I.R.B. 15
REG–114664–97, 1999–11 I.R.B. 21
REG–116826–97, 1999–10 I.R.B. 40
REG–118620–97, 1999–9 I.R.B. 46
REG–120168–97, 1999–12 I.R.B. 21
REG–121806–97, 1999–10 I.R.B. 46
REG–100729–98, 1999–14 I.R.B. 9
REG–104924–98, 1999–10 I.R.B.47
REG–105964–98, 1999–12 I.R.B. 22
REG–106177–98, 1999–12 I.R.B. 25
REG–106219–98, 1999–9 I.R.B. 51
REG–106386–98, 1999–12 I.R.B. 31
REG–106388–98, 1999–11 I.R.B. 27
REG–106564–98, 1999–10 I.R.B.53
REG–106902–98, 1999–8 I.R.B. 57
REG–106905–98, 1999–11 I.R.B. 39
REG–110524–98, 1999–10 I.R.B. 55
REG–111435–98, 1999–7 I.R.B. 55
REG–113694–98, 1999–7 I.R.B. 56
REG–111435–98, 1999–7 I.R.B. 55
REG–113744–98, 1999–10 I.R.B. 59
REG–114841–98, 1999–11 I.R.B. 41
REG–115433–98, 1999–9 I.R.B. 54
REG–116099–98, 1999–12 I.R.B. 34
REG–116824–98, 1999–7 I.R.B.57
REG–117620–98, 1999–7 I.R.B. 59
REG–118662–98, 1999–13 I.R.B. 13
REG–119192–98, 1999–11 I.R.B. 45
REG–121865–98, 1999–8 I.R.B.63
Revenue Procedures:
99–1, 1999–1 I.R.B. 6
99–2, 1999–1 I.R.B. 73
99–3, 1999–1 I.R.B. 103
99–4, 1999–1 I.R.B. 115
99–5, 1999–1 I.R.B. 158
99–6, 1999–1 I.R.B. 187
99–7, 1999–1 I.R.B. 226
99–8, 1999–1 I.R.B. 229
99–9, 1999–2 I.R.B. 17
99–10, 1999–2 I.R.B. 11
99–11, 1999–2 I.R.B. 14
99–12, 1999–3 I.R.B. 13
99–13, 1999–5 I.R.B. 52
99–14, 1999–5 I.R.B. 56
99–15, 1999–7 I.R.B. 42
99–16, 1999–7 I.R.B. 50
99–17, 1999–7 I.R.B. 52
99–18, 1999–11 I.R.B.7
99–19, 1999–13 I.R.B.10
99–20, 1999–14 I.R.B.7
99–22, 1999–15 I.R.B.5
99–23, 1999–16 I.R.B.5
Revenue Rulings:
99–1, 1999–2 I.R.B. 4
99–2, 1999–2 I.R.B. 5
99–3, 1999–3 I.R.B. 4
99–4, 1999–4 I.R.B.19
99–5, 1999–6 I.R.B.8
99–6, 1999–6 I.R.B. 6
Revenue Rulings—Continued
99–7, 1999–5 I.R.B. 4
99–8, 1999–6 I.R.B.8
99–9, 1999–7 I.R.B.14
99–10, 1999–10 I.R.B. 10
99–11, 1999–10 I.R.B. 18
99–12, 1999–11 I.R.B. 6
99–13, 1999–10 I.R.B. 4
99–14, 1999–13 I.R.B. 3
99–15, 1999–12 I.R.B.4
99–16, 1999–13 I.R.B.5
99–17, 1999–14 I.R.B. 4
99–18, 1999–14 I.R.B. 3
99–19, 1999–15 I.R.B. 3
Treasury Decisions:
8789, 1999–3 I.R.B. 5
8791, 1999–5 I.R.B. 7
8792, 1999–7 I.R.B.36
8793, 1999–7 I.R.B.15
8794, 1999–7 I.R.B.4
8795, 1999–7 I.R.B.8
8796, 1999–4 I.R.B. 16
8797, 1999–5 I.R.B. 5
8798, 1999–12 I.R.B. 16
8799, 1999–6 I.R.B. 10
8800, 1999–4 I.R.B. 20
8801, 1999–4 I.R.B. 5
8802, 1999–4 I.R.B. 10
8803, 1999–12 I.R.B. 15
8804, 1999–12 I.R.B. 5
8805, 1999–5 I.R.B. 14
8806, 1999–6 I.R.B.4
8807, 1999–9 I.R.B. 33
8808, 1999–10 I.R.B. 21
8809, 1999–7 I.R.B.27
8810, 1999–7 I.R.B.19
8811, 1999–10 I.R.B. 19
8812, 1999–8 I.R.B. 19
8813, 1999–9 I.R.B. 34
8814, 1999–9 I.R.B. 4
8815, 1999–9 I.R.B. 31
8816, 1999–8 I.R.B. 4
8817, 1999–8 I.R.B. 51
IRB 1999-17 4/21/99 11:47 AM Page 24

1999–17 I.R.B.25April 26, 1999
Finding List of Current Action on
Previously Published Items
1
Bulletins 1999–1 through 1999–16
Notices:
92–36
Modified by Rev. Proc.
99–23, 1999–16 I.R.B. 5
96–64
Modified by Rev. Proc.
99–23, 1999–16 I.R.B. 5
98–39
Modified by Rev. Proc.
99–23, 1999–16 I.R.B. 5
98–52
Modified by Rev. Proc.
99–23, 1999–16 I.R.B. 5
99–5
Modified by Rev. Proc.
99–23, 1999–16 I.R.B. 5
Revenue Procedures:
78–10
Obsoleted by
99–12, 1999–3 I.R.B. 13
89–9
Modified by
99–23, 1999–16 I.R.B. 5
89–13
Modified by
99–23, 1999–16 I.R.B. 5
93–39, section 13
Modified by
99–23, 1999–16 I.R.B. 5
94–56
Superseded by
99–9, 1999–2 I.R.B. 17
95–12
Modified by
99–23, 1999–16 I.R.B. 5
97–23
Superseded by
99–3, 1999–1 I.R.B. 103
97–41
Modified by
99–23, 1999–16 I.R.B. 5
98–1
Superseded by
99–1, 1999–1 I.R.B. 6
98–2
Superseded by
99–2, 1999–1 I.R.B. 73
98–3
Superseded by
99–3, 1999–1 I.R.B. 103
98–4
Superseded by
99–4, 1999–1 I.R.B. 115
98–5
Superseded by
99–5, 1999–1 I.R.B. 158
Revenue Procedures—Continued
98–6
Superseded by
99–6, 1999–1 I.R.B. 187
98–7
Superseded by
99–7, 1999–1 I.R.B. 226
98–8
Superseded by
99–8, 1999–1 I.R.B. 229
98–14
Modified by
99–23, 1999–16 I.R.B. 5
98–22
Modified and amplified by
99–13, 1999–5 I.R.B. 52
98–28
Obsoleted by (except as provided in section 5.02 of)
99–22, 1999–15 I.R.B. 5
98–56
Superseded by
99–3, 1999–1 I.R.B. 103
98–63
Modified by announcement
99–7, 1999–2 I.R.B. 45
Revenue Rulings:
92–19
Supplemented in part by
99–10, 1999–10 I.R.B. 10
1
A cumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1998–1 through 1998–52 will be found in Internal
Revenue Bulletin 1999–1, dated January 4, 1999.
IRB 1999-17 4/21/99 11:47 AM Page 25

April 26, 1999261999–17 I.R.B.
Notes
IRB 1999-17 4/21/99 11:47 AM Page 26

IRB 1999-17 4/21/99 11:47 AM Page 27

INTERNAL REVENUE BULLETIN
The Introduction on page 3 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.
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, U.S. Government Printing Office, Washington, DC 20402. 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.ustreas.gov) or write to the IRS Bulletin Unit, OP:FS:FP:P:1, Room 5617, 1111 Constitution Avenue NW, Washington,
DC 20224.
IRB 1999-17 4/21/99 11:47 AM Page 28