Internal Revenue Bulletin 2004-19 (PDF rendition): IRS Revenue Rulings

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.

Bulletin No. 200
4-19
May 10, 2004
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2004–44, page 885.
Federal rates; adjusted federal rates; adjusted federal
long-termrateandthelong-termexemptrate.For pur-
poses of sections 382, 642, 1274, 1288, and other sections
of the Code, tables set forth the rates for May 2004.
T.D. 9120,
page 881.
REG–12944
7–01, page 894.
Final, tem
porary, and proposed regulations under section 861
of the Code
provide an alternative method for valuing assets
for purpos
es of apportioning interest expense under the tax
book value
method contained in temporary regulations section
1.861–9T
(g). For that limited purpose, the alternative method
allows ta
xpayers to determine the adjusted basis of all tangi-
ble prope
rty under the alternative depreciation system of sec-
tion 168(
g). The regulations also provide guidance on electing
the alte
rnative method. The alternative method provides tax-
payers w
ith the option of determining the adjusted bases of
both for
eign and domestic assets under one consistent depre-
ciation
regime for temporary regulations section 1.861–9T(g)
apporti
onment purposes and helps reduce the basis disparity
betwee
n foreign and domestic assets which can occur under
the cur
rent regulations. A public hearing on the proposed reg-
ulatio
ns is scheduled for July 19, 2004.
T.D. 9122, page 886.
Final regulations under section 1502 of the Code relate to the
determination of the basis of the stock of the common parent
of a consolidated group when such stock is acquired in a trans-
action that qualifies as a group structure change. These regula-
tions amend current regulations section 1.1502–31 modifying
the application of the net asset basis rule in group structure
changes.
EXEMPT ORGANIZATIONS
Notice 2004–35, page 889.
Net investment income of private foundation.Thisnotice
announces that the Treasury Department and the Service
intend to propose regulations modifying regulations section
53.4940–1(d)(2) to provide that a private foundation’s net
investment income for purposes of section 4940 of the Code
does not include distributions from trusts and estates and that
until further guidance is promulgated, income distributions
from trusts and estates will not retain their character in the
hands of a distributee private foundation for purposes of
determining the foundation’s net investment income under
section 4940(c). This notice also provides instructions on how
a private foundation should fill out its applicable returns and
how to claim refunds.
Notice 2
004–36, page 889.
Distrib
utable amount of a private foundation.This no-
tice sta
tes that the Treasury Department and the Service in-
tend to p
ropose regulations modifying regulations under sec-
tion 49
42 of the Code in a manner consistent with the holding
of the T
ax Court and the Ninth Circuit inAnn Jackson Family
Founda
tion. It also states that until further guidance is promul-
gated,
private foundations should compute the distributable
amount
under section 4942(d) without regard to regulations
sectio
n 53.4942(a)–2(b)(2). Accordingly, income distributions
recei
ved from section 4947(a)(2) trusts are not included in a
priva
te foundation’s distributable amount for purposes of sec-
tion 4
942. The notice also includes instructions for filling out
the pr
ivate foundation’s applicable information and excise tax
retur
ns and how to claim a refund pursuant to this notice.
(Continued on the next page)
Fi
nding Lists begin on page ii.

Announcement 2004–34, page 895.
A list is provided of organizations now classified as private foun-
dations.
ADMINISTRATIVE
Rev. Proc. 2004–26, page 890.
This procedure provides guidance for representatives of cer-
tain military or civilian employees of the United States who die
as a result of injuries incurred in a terrorist or military action.
It provides guidance for having tax forgiven or for claiming re-
funds of tax under section 692(c) of the Code, as amended
by the Victims of Terrorism Tax Relief Act of 2001, Pub. L.
No. 107–134. It also provides procedures by which the Sec-
retary will determine whether a terrorist or military action has
occurred. Rev. Proc. 85–35 obsoleted.
May 10, 20042004-19 I.R.B.

The IRS Mission
Provide America’s taxpayers top quality service by helping
them understand and meet their tax responsibilities and by
applying the tax law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, 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 compiled 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, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement 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 published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Sec-
retary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last 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 last Bulletin of each semiannual period.
The c
ontents 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.
2004-19 I.R.B.May 10, 2004

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 42.—Low-Income
Housing Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term rates
aresetforthforthemonthofMay2004. SeeRev.
Rul. 2004-44, page 885.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of May 2004. See Rev. Rul.
2004-44, page 885.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
Federal short-term, mid-term, and long-term rates
aresetforthforthemonthofMay2004. SeeRev.
Rul. 2004-44, page 885.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term rates
are set forth for the month of May 2004. See Rev.
Rul. 2004-44, page 885.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 861.—Income
From Sources Within the
United States
26 CFR 1.861–9: Allocation and apportionment of
interest expense.
T.D. 9120
DEPARTMENT OF
THE TREASURY
Internal Revenue Service
26 CFR Part 1
Allocation and Apportionment
of Expenses; Alternative
Method for Determining Tax
Book Value of Assets
AGENCY: Internal R
evenue Service
(IRS), Treasury.
ACTION: Final and temporary regulation.
SUMMARY: This document contains tem-
porary regulations providing an alternative
method of valuing assets for purposes of
apportioning expenses under the tax book
value method of §1.861–9T. The alter-
native tax book value method, which is
elective, allows taxpayers to determine,
for purposes of apportioning expenses,
the tax book value of all tangible property
that is subject to a depreciation deduction
under section 168 by using the straight
line method, conventions, and recovery
periods of the alternative depreciation
system under section 168(g)(2). The alter-
native method provided in the temporary
regulations is intended to minimize basis
disparities between foreign and domestic
assets of taxpayers that may arise when
taxpayers use adjusted tax basis to value
assets under the tax book value method
of expense apportionment. The text of
these temporary regulations also serves
as the text of the proposed regulations
(REG–129447–01) set forth in this issue
of the Bulletin.
DATES:Effective Date: These regulations
are effective on March 26, 2004.
Applicability Date: For dates of ap-
plicability, see §§1.861–9(h)(5)(iii) and
1.861–9T(i)(3).
FOR FURTHER INFORMATION
CONTACT: Margaret A. Hogan, (202)
622–3850 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments
to regulations under section 864(e) of the
Internal Revenue Code (Code). Section
864(e) was enacted by the Tax Reform
Act of 1986 (Public Law 99–514, 100
Stat. 2121) to address concerns regarding
the allocation and apportionment of inter-
est expense. On September 14, 1988, the
IRS published temporary regulations (T.D.
8228, 1988–2 C.B. 136 [53 FR 35467]) un-
der §1.861 implementing section 864(e) of
the Code. The temporary regulations con-
tained in this document amend §1.861–9T
and make conforming amendments to
§§1.861–9 and 1.861–9T(g)(1)(ii).
Section 864(e)(2) of the Code pro-
vides that allocations and apportionments
2004-19 I.R.B.881May 10, 2004

of interest expense shall be made on the
basis of assets rather than gross income.
For this purpose, the regulations per-
mit a taxpayer to choose to compute the
value of its assets under either the tax
book value method or the fair market
value method. Sections 1.861–8T(c)(2)
and 1.861–9T(g)(1)(ii). Taxpayers using
the tax book value method may elect to
change to the fair market value method at
any time. Rev. Proc. 2003–37, 2003–1
C.B. 950 (May 27, 2003). Taxpayers
that elect to use the fair market value
method must continue to use that method
unless expressly authorized by the Com-
missioner to change methods. Section
1.861–8T(c)(2). Section 1.861–8T(c)(2)
also permits taxpayers to apportion certain
other expenses based on the comparative
value of assets provided that such appor-
tionment is made in accordance with the
rules of §1.861–9T(g).
The use of adjusted tax basis for pur-
poses of apportioning expenses under the
taxbookvaluemethodmayresultindis-
parities between the bases of domestic and
foreign assets of a taxpayer because of the
differences in depreciation methods appli-
cable to those assets. For example, the
tax book value of tangible property used
in the United States generally reflects de-
preciation of that property pursuant to the
modified accelerated cost recovery system
(MACRS) under section 168. MACRS
generally permits a taxpayer to depreci-
ate tangible property (other than real prop-
erty) under the 200-percent declining bal-
ance method, or the 150-percent declining
balance method in the case of certain prop-
erty. Section 168(b). MACRS also per-
mits taxpayers to depreciate property over
shorter recovery periods than a property’s
class life.
In contrast, tangible property used pre-
dominantly outside the United States gen-
erally must be depreciated pursuant to the
alternative depreciation system (ADS) un-
der section 168(g). Section 168(g)(1)(A).
ADS requires a taxpayer to depreciate
tangible property using the straight line
method of depreciation. Additionally,
ADS generally requires taxpayers to use
recovery periods equal to the property’s
class life and therefore longer periods than
those used under MACRS.
As a result of accelerated depreciation
under MACRS as compared to slower de-
preciation under ADS, an asset used in the
United States generally will have a lower
adjusted tax basis (i.e., tax book value)
than if the same asset were used predom-
inantly outside of the United States. The
relatively higher tax book value for as-
sets used predominantly outside the United
States results in an increased apportion-
ment of interest expense to foreign source
income and a corresponding reduction in
the taxpayer’s foreign tax credit limitation.
A disparity in the apportionment of
expenses between domestic and foreign
assets also may result when a U.S. corpo-
ration owns a 10-percent or greater interest
in a foreign subsidiary that holds tangi-
ble property. Section 864(e)(4) provides
that for purposes of allocating and appor-
tioning expenses on the basis of assets,
the tax basis of stock in a nonaffiliated
10-percent owned corporation will be ad-
justed to reflect the earnings and profits
of the corporation that are attributable
to the stock held by the taxpayer. See
also §1.861–12T(c)(2). Accordingly, the
adjusted tax basis of stock in a foreign
corporation for purposes of apportion-
ing expenses generally will reflect the
foreign corporation’s earnings and prof-
its, the computation of which reflects the
depreciation of tangible property. Under
section 312(k), tangible property generally
is depreciated under ADS for purposes of
determining earnings and profits. Accord-
ingly, a taxpayer that owns a 10-percent
or greater interest in a foreign corporation
that holds tangible property may be sub-
ject to a disparity similar to the one that
arises where the taxpayer holds foreign
assets directly.
Explanation of Provisions
The temporary regulations provide an
alternative method of determining the tax
book value of assets (the “alternative tax
book value method”). The alternative tax
book value method allows a taxpayer to
elect to determine the tax book value of
its tangible property that is subject to de-
preciation under section 168 as though all
such property had been depreciated using
ADS under section 168(g)(2) during the
entire period in which it has been in ser-
vice. The temporary regulations further
provide that tax book value will be deter-
minedwithoutregardtotheelectiontoex-
pense certain depreciable assets under sec-
tion 179. Because tax book value will be
computed under ADS, the rules permitting
a special allowance for property acquired
after September 10, 2001, and before Jan-
uary 1, 2005, will not apply. See sec-
tion 168(k)(2)(C)(ii). Application of sec-
tion 168(g)(2) as prescribed by these tem-
porary regulations applies solely for deter-
mining an asset’s tax book value for pur-
poses of apportioning expenses (includ-
ing the calculation of the alternative min-
imum tax foreign tax credit pursuant to
section 59(a)) under the asset method de-
scribed in §1.861–9T(g). Application of
section 168(g)(2) pursuant to these regu-
lations does not otherwise affect the result
under other provisions of the Code, includ-
ing the amount of any deduction claimed
under sections 167, 168, 169, 263(a), 617,
or any other capital cost recovery provi-
sion.
The elective alternative to the existing
tax book valuation method provides tax-
payers with the option of determining the
adjusted bases of both foreign and domes-
tic assets under one consistent depreciation
method for purposes of apportioning ex-
penses under the asset method described
in §1.861–9T(g). A uniform depreciation
methodology will help reduce the basis
disparity between foreign and domestic as-
sets that can occur under the existing tax
book value method.
The temporary regulations generally
provide that, for a taxpayer that elects the
alternative tax book value method, the tax
book value of tangible property that is de-
preciated under section 168 is determined
as though such property were subject to
the alternative depreciation system under
section 168(g) for the entire period that
such property has been in service. Thus, if
a taxpayer elects the alternative tax book
value method effective for the 2005 tax-
able year, the tax book value of tangible
property placed in service in 2006 is deter-
mined each year using the rules of section
168(g) that apply to property placed in
service in 2006. However, in the case of
tangible property placed in service in a
taxable year prior to the first taxable year
to which the election to use the alternative
method applies, the tax book value of such
property is determined using the alterna-
tive depreciation system rules that apply
to property placed in service in the taxable
year to which the election first applies.
Thus, if a taxpayer elects the alternative
tax book value method effective for the
May 10, 20048822004-19 I.R.B.

2005 taxable year, the tax book value of
tangible property placed in service in 2004
and prior years is determined each year
using the rules of section 168(g) that apply
to property placed in service in 2005. A
special rule also applies in determining
tax book value in cases where a taxpayer
makes an election to use the alternative tax
book value method after recently (within
three years) revoking a prior election to
use that method.
The temporary regulations do not mod-
ify the rules for determining when prop-
erty is placed in service for purposes of
section 168. If a taxpayer acquires prop-
erty with a carryover or substituted basis,
the determination of the tax book value
of that property using the alternative tax
book value method will reflect that carry-
over or substituted basis, determined us-
ing the general rule for property placed in
service during or after the year of elec-
tion and using the special rule for prop-
erty placed in service before the year of
election. The Treasury Department and the
IRS recognize that acquisitions, mergers,
and similar transactions involving taxpay-
ers that use different methods of interest
expense apportionment may raise partic-
ular issues in applying these rules. The
Treasury Department and the IRS request
comments regarding the use of the alterna-
tive tax book value method with respect to
tangible property acquired pursuant to an
acquisition, merger, or similar transaction
and placed in service in a taxable year prior
to such transaction.
The temporary regulations set forth
rules for electing thealternative tax book
value method. Generally, taxpayers may
elect to value their assets using the al-
ternative tax book value method with
respect to any taxable year beginning on
or after March 26, 2004. Once made, the
election applies to all members of an af-
filiated group of corporations (as defined
in §§1.861–11(d) and 1.861–11T(d)).
Taxpayers electing the alternative tax
book value method may change from that
method to the fair market value method at
any time for any open year. However, tax-
payers using the fair market value method
must obtain the consent of the Commis-
sioner to change methods, including a
change to the alternative tax book value
method.
In conjunction with the issuance of
these regulations, the Treasury Depart-
ment and the IRS intend to issue a revenue
procedure to provide temporary rules
granting taxpayers automatic consent to
change from the fair market value method
to the alternative tax book value method.
It is anticipated that the revenue procedure
willapplytochangesinmethodofappor-
tionment made during a two-year period
after March 26, 2004, with the automatic
consent applying to taxable years that be-
gin on or after March 26, 2004, and for
which the taxpayer has not filed its in-
come tax return. Comments are requested
concerning such an automatic consent pro-
cedure, including theappropriateness of a
two-year period of time for these purposes.
The Treasury Department and the IRS
are aware that application of the existing
tax book value method may result in other
similar disparities between the valuation
of domestic and foreign assets. Accord-
ingly, comments are requested regarding
whether additional modifications to the tax
book value method may be appropriate to
address potential disparities arising from
other cost recovery provisions, such as the
treatment of intangible drilling costs, that
distinguish between assets based on place
of use.
These temporary regulations are in-
tended to improve the operation of the
rules relating to the allocation and appor-
tionment of interest expense. The Treasury
Department and the IRS also are consid-
ering additional guidance with respect
to interest expense allocation and appor-
tionment for purposes of §1.861–9T(h).
In particular, to prevent overvaluation of
tangible assets under the fair market value
method, the Treasury Department and the
IRS intend to address situations in which
a taxpayer that uses the fair market value
method of apportionment takes the posi-
tion that the value of its tangible assets
pursuant to §1.861–9T(h)(1)(ii) exceeds
the aggregate value of its assets pursuant
to §1.861–9T(h)(1)(i). Comments are
requested regarding modifications to the
current regulationsto address this situa-
tion.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It has also been deter-
mined that section 553(b) of the Admin-
istrative Procedure Act (5 U.S.C. chapter
5) does not apply to these regulations. For
the applicability of the Regulatory Flexi-
bility Act (5 U.S.C. chapter 6), refer to the
Special Analyses section of the preamble
to the cross-reference notice of proposed
rulemaking published in this issue of the
Bulletin. Pursuant to section 7805(f) of the
Internal Revenue Code, these regulations
will be submitted to the Chief Counsel of
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
businesses.
Drafting Information
The principal author of these regula-
tions is Margaret A. Hogan, Office of
Associate Chief Counsel (International).
However, other personnel from the IRS
and Treasury Department participated in
their development.
*****
Amendments to the Regulations
Accordingly, 26 CFR Part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
§1.861–9 is amended by adding entries in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805.
Sections 1.861–9 and 1.861–9T also is-
sued under 26 U.S.C. 863(a), 26 U.S.C.
864(e), 26 U.S.C. 865(i), and 26 U.S.C.
7701(f). * * *
Par. 2. Section 1.861–9 is amended by:
1. Revising paragraphs (a) through
(g)(1)(i).
2. Adding paragraphs (g)(1)(ii) through
(h)(4), (h)(6), (i), and (j).
The revisions and additions read as fol-
lows:
§1.861–9 Allocation and apportionment
of interest expense.
(a) through (g)(1)(i) [Reserved].
For further guidance, see §1.861–9T(a)
through (g)(1)(i).
(g)(1)(ii) [Reserved]. For further
guidance, see the second sentence in
§1.861–9T(g)(1)(ii).
2004-19 I.R.B.883May 10, 2004

(g)(1)(iii) through (h)(4) [Re-
served]. For further guidance, see
§1.861–9T(g)(1)(iii) through (h)(4).
(h)(5) * * *
(h)(6) through (j) [Reserved]. For
further guidance, see §1.861–9T(h)(6)
through (j).
Par. 3. Section 1.861–9T is amended
by:
1. Revising the section heading.
2. Adding a new sentence after the first
sentence in paragraph (g)(1)(ii) introduc-
tory text.
3. Adding paragraph (i).
The revisions and addition read as fol-
lows:
§1.861–9T Allocation and apportionment
of interest expense (temporary).
*****
(g)***(1)***(i)***
(ii)***Forrulesconcerningtheappli-
cation of an alternative method of valuing
assets for purposes of the tax book value
method, see paragraph (i) of this section.
***
*****
(i)Alternative tax book value
method—(1)Alternative value for cer-
tain tangible property. A taxpayer may
elect to determine the tax book value of
its tangible property that is depreciated
under section 168 (section 168 property)
using the rules provided in this paragraph
(the alternative tax book value method).
The alternative tax book value method ap-
plies solely for purposes of apportioning
expenses (including the calculation of the
alternative minimum tax foreign tax credit
pursuant to section 59(a)) under the asset
method described in paragraph (g) of this
section.
(i) The tax book value of section 168
property placed in service during or after
the first taxable year to which the elec-
tion to use the alternative tax book value
method applies shall be determined as
though such property were subject to the
alternative depreciation system under sec-
tion 168(g) for the entire period that such
property has been in service.
(ii) In the case of section 168 property
placed in service prior to the first taxable
year to which the election to use the alter-
native tax book value method applies, the
tax book value of such property shall be
determined under the depreciation method,
convention, and recovery period provided
for under section 168(g) for the first tax-
able year to which the election applies.
(iii) If a taxpayer revokes an election to
use the alternative tax book value method
(“the prior election”) and later makes an-
other election to use the alternative tax
book value method (the “subsequent elec-
tion”) that is effective for a taxable year
that begins within 3 years of the end of the
last taxable year to which the prior election
applied, the taxpayer shall determine the
tax book value of its section 168 property
as though the prior election has remained
in effect.
(iv) The tax book value of section 168
property shall be determined without re-
gard to the election to expense certain de-
preciable assets under section 179.
(v)Examples. The provisions of this
paragraph (i)(1) are illustrated in the fol-
lowing examples:
Example 1. In 2000, a taxpayer purchases and
places in service section 168 property used solely in
the United States. In 2005, the taxpayer elects to use
the alternative tax book value method, effective for
the current taxable year. For purposes of determin-
ing the tax book value of its section 168 property, the
taxpayer’s depreciation deduction is determined by
applying the method, convention, and recovery pe-
riod rules of the alternative depreciation system un-
der section 168(g)(2) as in effect in 2005 to the tax-
payer’s original cost basis in such property. In 2006,
the taxpayer acquires and places in service in the
United States new section 168 property. The tax book
value of this section 168 property is determined under
the rules of section 168(g)(2) applicable to property
placed in service in 2006.
Example 2. Assume the same facts as inExample
1, except that the taxpayer revokes the alternative tax
book value method election effective for taxable year
2010. Additionally, in 2011, the taxpayer acquires
new section 168 property and places it in service in
the United States. If the taxpayer elects to use the
alternative tax book value method effective for tax-
able year 2012, the taxpayer must determine the tax
book value of its section 168 property as though the
prior election still applied. Thus, the tax book value
of property placed in service prior to 2005 would be
determined by applying the method, convention, and
recovery period rules of the alternative depreciation
system under section 168(g)(2) applicable to prop-
erty placed in service in 2005. The tax book value
of section 168 property placed in service during any
taxable year after 2004 would be determined by ap-
plying the method, convention, and recovery period
rules of the alternative depreciation system under sec-
tion 168(g)(2) applicable to property placed in service
in such taxable year.
(2)Timing and scope of election.(i)Ex-
cept as provided in this paragraph (i)(2),
a taxpayer may elect to use the alterna-
tive tax book value method with respect
to any taxable year beginning on or af-
ter March 26, 2004. However, pursuant
to §1.861–8T(c)(2), a taxpayer that has
elected the fair market value method must
obtain the consent of the Commissioner
prior to electing the alternative tax book
value method. Any election made pur-
suant to this paragraph (i)(2) shall apply
to all members of an affiliated group of
corporations as defined in §§1.861–11(d)
and 1.861–11T(d). Any election made pur-
suant to this paragraph (i)(2) shall apply
to all subsequent taxable years of the tax-
payer unless revoked by the taxpayer. Re-
vocation of such an election, other than in
conjunctionwithanelectiontousethefair
market value method, for a taxable year
prior to the sixth taxable year for which the
election applies requires the consent of the
Commissioner.
(ii)Example. The provisions of this
paragraph (i)(2) are illustrated in the fol-
lowing example:
Example. Corporation X, a calendar year tax-
payer, elects on its original, timely filed tax return
for the taxable year ending December 31, 2007, to
use the alternative tax book value method for its 2007
year. The alternative tax book value method applies
to X’s 2007 year and all subsequent taxable years. X
may not, without the consent of the Commissioner,
revoke its election and determine tax book value us-
ing a method other than the alternative tax book value
method with respect to any taxable year beginning be-
fore January 1, 2012. However, X may automatically
elect to change from the alternative tax book value
method to the fair market value method for any open
year.
(3)Effective date. (i) Paragraph (i) of
this section applies to taxable years begin-
ning on or after March 26, 2004.
(ii) The applicability of this paragraph
(i) expires on or before March 26, 2007.
*****
Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.
Approved March 16, 2004.
Gregory Jenner,
Assistant Secretary of the Treasury.
(Filed by the Office of the Federal Register on March 25,
2004, 8:45 a.m., and published in the issue of the Federal
Register for March 26, 2004, 69 F.R. 15673)
May 10, 20048842004-19 I.R.B.

Section 1274.—Determi-
nation of Issue Price in the
Case of Certain Debt Instru-
ments Issued for Property
(Also sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates;
adjusted federal long-term rate and the
long-term exempt rate.For purposes of
sections 382, 642, 1274, 1288, and other
sections of the Code, tables set forth the
rates for May 2004.
Rev. Rul. 2004–44
This revenue ruling provides vari-
ous prescribed rates for federal income
tax purposes for May 2004 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month
for purposes of section 1274(d) of the
Internal Revenue Code. Table 2 contains
the short-term, mid-term, and long-term
adjusted applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(2) for buildings placed in
service during the current month. Finally,
Table 5 contains the federal rate for de-
termining the present value of annuity, an
interest for life or for a term of years, or
a remainder or a reversionary interest for
purposes of section 7520.
REV. RUL. 2004–44 TABLE 1
Applicable Federal Rates (AFR) for May 2004
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-Term
AFR1.50%1.49%1.49%1.49%
110% AFR1.65%1.64%1.64%1.63%
120% AFR1.80%1.79%1.79%1.78%
130% AFR1.95%1.94%1.94%1.93%
Mid-Term
AFR3.16%3.14%3.13%3.12%
110% AFR3.48%3.45%3.44%3.43%
120% AFR3.81%3.77%3.75%3.74%
130% AFR4.12%4.08%4.06%4.05%
150% AFR4.77%4.71%4.68%4.66%
175% AFR5.58%5.50%5.46%5.44%
Long-Term
AFR4.65%4.60%4.57%4.56%
110% AFR5.12%5.06%5.03%5.01%
120% AFR5.60%5.52%5.48%5.46%
130% AFR6.07%5.98%5.94%5.91%
REV. RUL. 2004–44 TABLE 2
Rates Under Section 382 for May 2004
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted
AFR
1.28%1.28%1.28%1.28%
Mid-term adjusted AFR2.52%2.50%2.49%2.49%
Long-term adjusted
AFR
4.19%4.15%4.13%4.11%
2004-19 I.R.B.885May 10, 2004

REV. RUL. 2004–44 TABLE 3
Rates Under Section 382 for May 2004
Adjusted federal long-term rate for the current month4.19%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted
federal long-term rates for the current month and the prior two months.)4.19%
REV. RUL. 2004–44 TABLE 4
Appropriate Percentages Under Section 42(b)(2) for May 2004
Appropriate percentage for the 70% present value low-income housing credit7.91%
Appropriate percentage for the 30% present value low-income housing credit3.39%
REV. RUL. 2004–44 TABLE 5
Rate Under Section 7520 for May 2004
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest3.8%
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 1502.—Regulations
26 CFR 1.1502–31: Stock basis after a group struc-
ture change.
T.D. 9122
DEPARTMENT OF
THE TREASURY
Internal Revenue Service
26 CFR Part 1
Guidance Under Section
1502; Stock Basis After a
Group Structure Change
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulation.
SUMMARY: This document contains final
regulations under section 1502 providing
guidance regarding the determination of
basis in the stock of the former common
parent following a group structure change.
These final regulations affect corporations
filing consolidated returns.
DATES: These regulations are effective
April 26, 2004.
FOR FURTHER INFORMATION
CONTACT: Ross Poulsen, (202)
622–7770 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to
the Income Tax Regulations (26 CFR part
1) under section 1502 of the Internal Rev-
enue Code of 1986 (Code), specifically
§1.1502–31, relating to the determination
of the basis of stock in the former common
parent after a group structure change. Sec-
tion 1.1502–31 applies if one corporation
(P) succeeds another corporation (T) un-
der the principles of §1.1502–75(d)(2) or
(3) as the common parent of a consolidated
group in a group structure change. Sec-
tion 1.1502–31 provides that if a corpora-
tion acquires stock of the former common
parent in a group structure change, the ba-
sis of the members in the former common
parent’s stock immediately after the group
structure change is generally redetermined
to reflect the former common parent’s net
asset basis.
Because of a concern that the applica-
tion of the net asset basis rule may produce
inappropriate results on the disposition of
stock acquired in a transaction in which,
under generally applicable rules, the basis
of the acquired stock would otherwise be
determined by reference to the acquirer’s
cost, the IRS and Treasury Department
issued regulations proposing to except
from the application of the net asset ba-
sis rule stock acquired in a transaction
in which gain or loss was recognized
in whole. Those regulations were in-
cluded in a notice of proposed rulemaking
(REG–130262–03, 2003–37 I.R.B. 553
[68 FR 40579]) published in theFederal
Register[technical correction published
in 68 FR 52545]) on July 8, 2003.
No public hearing was requested or held
regarding the proposed regulations. One
written comment, however, was received.
That comment urged the expeditious pro-
mulgation of the proposed regulations as
final regulations.
This Treasury decision adopts the pro-
posed regulations without substantive
changes as final regulations. The fi-
nal regulations apply to group structure
changes that occur after April 26, 2004.
With respect to group structure changes
that occur on or before April 26, 2004, and
in a consolidated return year beginning on
May 10, 20048862004-19 I.R.B.

or after January 1, 1995, these regulations
apply at the election of the group.
Special Analyses
It has been determined that these regu-
lations are not a significant regulatory ac-
tion as defined in Executive Order 12866.
Therefore, a regulatory assessment is not
required. It is herebycertified that these
regulations do not have a significant im-
pact on a substantial number of small enti-
ties. This certification is based on the fact
that these regulations primarily will affect
affiliated groups of corporations, which
tend to be larger businesses. Moreover,
the number of taxpayers affected is mini-
mal and the regulations will simplify basis
determinations. 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 Code, the proposedregulations preced-
ing these regulations were submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
their impact.
Drafting Information
The principal author of this regulation
is Ross Poulsen, Office of Associate Chief
Counsel (Corporate). However, other per-
sonnel from the IRS and Treasury Depart-
ment participated in their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read, in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1502–31 is amended
by revising paragraphs (b)(2), (d)(2)(ii),
(g), and (h) to read as follows:
§1.1502–31 Stock basis after a group
structure change.
*****
(b) * * *
(2)Stock acquisitions. If a corpora-
tion acquires stock of the former com-
mon parent in a group structure change,
the basis of the members in the former
common parent’s stock immediately af-
ter the group structure change (including
any stock of the former common parent
owned before the group structure change)
that is, or would otherwise be, transferred
basis property is redetermined in accor-
dance with the results for an asset acqui-
sition described in paragraph (b)(1) of this
section. For example, if all of T’s stock
is contributed to P in a group structure
change to which section 351 applies, P’s
basis in T’s stock is T’s net asset basis,
rather than the amount determined under
section 362. Similarly, if S merges into
T in a group structure change described in
section 368(a)(2)(E) and P acquires all of
the T stock, P’s basis in T’s stock is the
basis that P would have in S’s stock un-
der paragraph (b)(1) of this section if T had
merged into S in a group structure change
described in section 368(a)(2)(D).
*****
(d) * * *
(2) * * *
(ii)Stock acquisitions.Iflessthanallof
the former common parent’ stock is sub-
ject to the redetermination described in
paragraph (b)(2) of this section, the per-
centage of the former common parent’s
net asset basis taken into account in the
redetermination equals the percentage (by
fair market value) of the former common
parent’s stock subject to the redetermina-
tion. For example, if P owns less than all
of the former common parent’s stock im-
mediately after the group structure change
and such stock would otherwise be trans-
ferred basis property, only an allocable part
of the basis determined under this section
is reflected in the shares owned by P (and
the amount allocable to shares owned by
nonmembers has no effect on the basis of
their shares). Alternatively, if P acquired
10 percent of the former common parent’s
stock in a transaction in which the stock
basis was determined by P’s cost, and P
later acquires the remaining 90 percent of
the former common parent’s stock in a sep-
arate transaction that is described in para-
graph (b)(2) of this section, P retains its
cost basis in its original stock and the ba-
sis of P’s newly acquired shares reflects
only an allocable part of the former com-
mon parent’s net asset basis.
*****
(g)Examples. For purposes of the ex-
amples in this section, unless otherwise
stated, all corporations have only one class
of stock outstanding, the tax year of all
persons is the calendar year, all persons
use the accrual method of accounting, the
facts set forth the only corporate activity,
all transactions are between unrelated per-
sons, and tax liabilities are disregarded.
The principles of this section are illustrated
by the following examples:
Example 1.Forward triangular merger.(i)Facts.
P is the common parent of one group and T is the com-
mon parent of another. T has assets with an aggregate
basis of $60 and fair market value of $100 and no li-
abilities. T’s shareholders have an aggregate basis of
$50 in T’s stock. In Year 1, pursuant to a plan, P
forms S and T merges into S with the T sharehold-
ers receiving $100 of P stock in exchange for their T
stock. The transaction is a reorganization described
in section 368(a)(2)(D). The transaction is also a re-
verse acquisition under §1.1502–75(d)(3) because the
T shareholders, as a result of owning T’s stock, own
more than 50% of the value of P’s stock immedi-
ately after the transaction. Thus, the transaction is a
group structure change under §1.1502–33(f)(1), and
P’s earnings and profits are adjusted to reflect T’s
earnings and profits immediately before T ceases to
be the common parent of the T group.
(ii)Analysis. Under paragraph (b)(1) of this sec-
tion, P’s basis in S’s stock is adjusted to reflect T’s
net asset basis. Under paragraph (c) of this section,
T’s net asset basis is $60, the basis T would have in
the stock of a subsidiary under section 358 if T had
transferred all of its assets and liabilities to the sub-
sidiary in a transaction to which section 351 applies.
Thus, P has a $60 basis in S’s stock.
(iii)Pre-existing S.Thefactsarethesameasin
paragraph (i) of thisExample 1, except that P has
owned the stock of S for several years and P has a $50
basis in the S stock before the merger with T. Under
paragraph (b)(1) of this section, P’s $50 basis in S’s
stock is adjusted to reflect T’s net asset basis. Thus,
P’s basis in S’s stock is $110 ($50 plus $60).
(iv)Excess loss account included in former com-
mon parent’s net asset basis. The facts are the same
as in paragraph (i) of thisExample 1, except that T has
two assets, an operating asset with an $80 basis and
$90 fair market value, and stock of a subsidiary with
a $20 excess loss account and $10 fair market value.
Under paragraph (c) of this section, T’s net asset ba-
sis is $60 ($80 minus $20). See sections 351 and 358,
and §1.1502–19. Consequently, P has a $60 basis in
S’s stock. Under section 362 and §1.1502–19, S has
an $80 basis in the operating asset and a $20 excess
loss account in the stock of the subsidiary.
(v)Liabilities in excess of basis. The facts are the
same as in paragraph (i) of thisExample 1, except
that T’s assets have a fair market value of $170 (and
$60 basis) and are subject to $70 of liabilities. Un-
der paragraph (c) of this section, T’s net asset basis is
negative $10 ($60 minus $70). See sections 351 and
358, and §§1.1502–19 and 1.1502–80(d). Thus, P has
a $10 excess loss account in S’s stock. Under section
362, S has a $60 basis in its assets (which are subject
to $70 of liabilities). (Under paragraph (a)(2) of this
section, because the liabilities are taken into account
2004-19 I.R.B.887May 10, 2004

in determining net asset basis under paragraph (c) of
this section, the liabilities are not also taken into ac-
count as consideration not provided by P under para-
graph (d)(1) of this section.)
(vi)Consideration provided by S. The facts are the
same as in paragraph (i) of thisExample 1, except that
P forms S with a $100 contribution at the beginning
of Year 1, and during Year 6, pursuant to a plan, S
purchases $100 of P stock and T merges into S with
the T shareholders receiving P stock in exchange for
their T stock. Under paragraph (b)(1) of this section,
P’s $100 basis in S’s stock is increased by $60 to
reflect T’s net asset basis. Under paragraph (d)(1)
of this section, P’s basis in S’s stock is decreased by
$100 (the fair market value of the P stock) because the
P stock purchased by S and used in the transaction is
consideration not provided by P.
(vii)AppreciatedassetprovidedbyS. The facts
are the same as in paragraph (i) of thisExample 1,
except that P has owned the stock of S for several
years, and the shareholders of T receive $60 of P stock
and an asset of S with a $30 adjusted basis and $40
fair market value. S recognizes a $10 gain from the
asset under section 1001. Under paragraph (b)(1) of
this section, P’s basis in S’s stock is increased by $60
to reflect T’s net asset basis. Under paragraph (d)(1)
of this section, P’s basis in S’s stock is decreased by
$40 (the fair market value of the asset provided by S).
In addition, P’s basis in S’s stock is increased under
§1.1502–32(b) by S’s $10 gain.
(viii)Depreciated asset provided by S. The facts
are the same as in paragraph (i) of thisExample 1,
except that P has owned the stock of S for several
years, and the shareholders of T receive $60 of P stock
and an asset of S with a $50 adjusted basis and $40
fair market value. S recognizes a $10 loss from the
asset under section 1001. Under paragraph (b)(1) of
this section, P’s basis in S’s stock is increased by $60
to reflect T’s net asset basis. Under paragraph (d)(1)
of this section, P’s basis in S’s stock is decreased by
$40 (the fair market value of the asset provided by S).
In addition, S’s $10 loss is taken into account under
§1.1502–32(b) in determining P’s basis adjustments
under that section.
Example 2.Stock acquisition.(i)Facts. P is the
common parent of one group and T is the common
parent of another. T has assets with an aggregate basis
of $60 and fair market value of $100 and no liabilities.
T’s shareholders have an aggregate basis of $50 in T’s
stock. Pursuant to a plan, P forms S and S acquires all
of T’s stock in exchange for P stock in a transaction
described in section 368(a)(1)(B). The transaction is
also a reverse acquisition under §1.1502–75(d)(3).
Thus, the transaction is a group structure change un-
der §1.1502–33(f)(1), and the earnings and profits of
P and S are adjusted to reflect T’s earnings and profits
immediately before T ceases to be the common par-
ent of the T group.
(ii)Analysis. Under paragraph (d)(4) of this sec-
tion, although S is not the new common parent of the
T group, adjustments must be made to S’s basis in T’s
stock in accordance with the principles of this section.
Although S’s basis in T’s stock would ordinarily be
determined under section 362 by reference to the ba-
sis of T’s shareholders in T’s stock immediately be-
fore the group structure change, under the principles
of paragraph (b)(2) of this section, S’s basis in T’s
stock is determined by reference to T’s net asset ba-
sis. Thus, S’s basis in T’s stock is $60.
(iii)Higher-tier adjustments. Under paragraph
(d)(4) of this section, P’s basis in S’s stock is in-
creased by $60 (to be consistent with the adjustment
to S’s basis in T’s stock).
(iv)Cross ownership. The facts are the same as in
paragraph (i) of thisExample 2, except S purchased
10% of T’s stock from an unrelated person for cash.
In an unrelated transaction, S acquires the remaining
90% of T’s stock in exchange for P stock. S’s basis in
the initial 10% of T’s stock is not redetermined under
this section. However, S’s basis in the additional 90%
of T’s stock is redetermined under this section. S’s
basis in that stock is adjusted to $54 (90% of T’s net
asset basis).
(v)Allocable share. The facts are the same as in
paragraph (i) of thisExample 2, except that P owns
only 90% of S’s stock immediately after the group
structure change. S’s basis in T’s stock is the same
as in paragraph (ii) of thisExample 2. Under para-
graph (d)(2) of this section, P’s basis in its S stock is
increased by $54 (90% of S’s $60 adjustment).
Example 3.Taxable stock acquisition.(i)Facts.
P is the common parent of one group and T is the com-
mon parent of another. T has assets with an aggregate
basis of $60 and fair market value of $100 and no li-
abilities. T’s shareholders have an aggregate basis of
$50 in T’s stock. Pursuant to a plan, P acquires all of
T’s stock in exchange for $70 of P’s stock and $30
in a transaction that is a group structure change under
§1.1502–33(f)(1). P’s acquired T stock is not trans-
ferred basis property. (Because of P’s use of cash,
the acquisition is not a transaction described in sec-
tion 368(a)(1)(B).)
(ii)Analysis. The rules of this section do not ap-
ply to determine P’s basis in T’s stock. Therefore, P’s
basis in T’s stock is $100.
(h)Effective dates—(1)General rule.
This section applies to group structure
changes that occur after April 26, 2004.
However, a group may apply this section
to group structure changes that occurred
on or before April 26, 2004, and in consol-
idated return years beginning on or after
January 1, 1995.
(2)Prior law. For group structure
changes that occur on or before April 26,
2004, and in consolidated return years be-
ginning on or after January 1, 1995, with
respect to which the group does not elect
to apply the provisionsof this section, see
§1.1502–31 as contained in the 26 CFR
part 1 edition revised as of April 1, 2003.
For group structure changes that occur in
consolidated returnyears beginning be-
fore January 1, 1995, see §1.1502–31T
as contained in the 26 CFR part 1 edition
revised as of April 1, 1994.
Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.
Approved April 14, 2004.
Gregory F. Jenner,
Acting Assistant Secretary of the Treasury.
(Filed by the Office of the Federal Register on April 23, 2004,
8:45 a.m., and published in the issue of the Federal Register
for April 26, 2004, 69 F.R. 22399)
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
Section 7872.—Treatment
of Loans With Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of May 2004. See Rev. Rul. 2004-44, page 885.
May 10, 20048882004-19 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Distributions to Private
Foundations From Trusts
or Estates: Net Investment
Income
Notice 2004–35
PURPOSE
This notice announces that the Internal
Revenue Service intends to propose reg-
ulations modifying the regulations under
section 4940 of the Internal Revenue Code
of 1986, as amended, with respect to dis-
tributions received by private foundations
from trusts and estates.
BACKGROUND
Section 4940 imposes a tax on private
foundations based on the foundation’s net
investment income. Net investment in-
come is defined in section 4940(c)(1) as
the amount by which the sum of the gross
investment income and the capital gain net
income exceeds certain deductions. Net
investment income is to be determined un-
der the principles of subtitle A except to
the extent inconsistent with the principles
of section 4940.
Treas. Reg. § 53.4940–1(d)(2) states
that a distribution from a trust described in
section 4947(a)(1) or (2) or from an estate
does not retain its character in the hands of
the distributee private foundation. Thus,
these distributions are not included in net
investment income for purposes of section
4940. Treas. Reg. § 53.4940–1(d)(2)
also states that a distribution from a sec-
tion 4947(a)(2) trust that is attributable to
transfers in trust after May 26, 1969, re-
tains its character in the hands of the dis-
tributee private foundation unless the in-
come is taken into account as a result of
the application of section 671. The regu-
lation is silent on the treatment of distribu-
tions from trusts other than trusts described
in section 4947.
Because distributions of income re-
ceived by a private foundation from some
types of trusts, but not other types of
trusts or estates, are included in the pri-
vate foundation’s net investment income
for purposes of section 4940, Treas. Reg.
§ 53.4940–1(d)(2) leads to inconsistent
results. For example, a distribution of
income made during the administration
of an estate for which a deduction is
claimed under section 642(c) does not
retain its character in the hands of the dis-
tributee private foundation. However, a
distribution of income from a non-grantor
charitable lead trust described in section
4947(a)(2) for which the trust claims a
section 642(c) deduction does retain its
character in the hands of the distributee
private foundation, if the income is attrib-
utable to amounts placed in trust after May
26, 1969.
After studying the application
of section 4940 and Treas.Reg.
§ 53.4940–1(d)(2) to distributions from
various types of trusts and estates, the
Treasury Department and the Internal
Revenue Service have concluded that the
disparate treatmentof distributions under
section 4940 is no longer appropriate.
PROPOSED ACTION
The Treasury Department and the In-
ternal Revenue Service intend to pro-
pose regulations modifying Treas. Reg.
§ 53.4940–1(d)(2) to provide that a pri-
vate foundation’s net investment income
for purposes of section 4940 does not in-
clude distributions from trusts and estates.
Until further guidance is promulgated, in-
come distributions from trusts and estates
will not retain their character in the hands
of a distributee private foundation for pur-
poses of determining the foundation’s net
investment income under section 4940(c).
CURRENT RETURN PROCESSING
For current tax returns, any private
foundation to which this notice applies
should mark, “Filed pursuant to Notice
2004–35” on the front page of its Form
990–PF,Return of Private Foundation or
Section 4947(a)(1) Nonexempt Charitable
Trust Treated as a Private Foundation.Re-
turns should be completed in accordance
with this notice pending corresponding
changes to Form 990–PF and the accom-
panying instructions.
REFUND PROCESSING
For years in which the statute of lim-
itations has not expired and for which
a refund of section 4940 taxes paid is
sought, the private foundation must file
an amended Form 990–PF. The private
foundation should mark the front page
of the amended return (or returns) “Filed
pursuant to Notice 2004–35.”
COMMENTS
The Service welcomes comments and
suggestions relating to the amendment
of the regulations on distributions from
trusts and estates to private foundations.
Written comments should be submitted
by August 9, 2004, to CC:PA:LPD:RU
(Notice 2004–35), Room 5203, Internal
Revenue Service, POB 7604, Ben Franklin
Station, Washington, D.C. 20044. Com-
ments may be hand delivered between
the hours of 8 a.m. and 5 p.m., Mon-
day through Friday to CC:PA:LPD:RU
(Notice 2004–35), Courier’s Desk, Inter-
nal Revenue Service, 1111 Constitution
Ave., NW, Washington D.C. Alternatively,
comments may be submitted electroni-
cally via e-mail to the following address:
Notice.Comments@irscounsel.treas.gov.
All comments will be available for public
inspection.
DRAFTING INFORMATION
The principal author of this notice is
Ronald B. Weinstock of the Office of Di-
vision Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities).
For further information regarding this
notice, contact Mr. Weinstock at (202)
622–3094 or contact Oksana O. Xenos of
the Office of the Commissioner (Tax
Exempt and Government Entities) at
202–283–9469 (not a toll-free number).
Split-Interest Trust
Distributions to Private
Foundations: Distributable
Amount
Notice 2004–36
PURPOSE
This notice provides guidance to pri-
vate foundations on the treatment of cer-
tain distributions received from split-inter-
est trusts described in section 4947(a)(2)
2004-19 I.R.B.889May 10, 2004

of the Internal Revenue Code of 1986, as
amended, in light of the courts’ decisions
inAnn Jackson Family Foundation v. Com-
missioner, 97 T.C. 534 (1991),aff’d,15
F.3d 917 (9
th
Cir. 1994).
BACKGROUND
Section 4942(a) imposes a tax on the
amount of undistributed income of a pri-
vate foundation for any taxable year that
is not distributed by the first day of the
second taxable year following such tax-
able year. Section 4942(c) defines undis-
tributed income as the amount by which
the distributable amount for the taxable
year exceeds the qualifying distributions
made out of the distributable amount. Sec-
tion 4942(d) defines distributable amount
as the minimum investment return (plus
certain refunds of amounts previously
taken into account as qualifying distri-
butions), reduced by the taxes imposed
on the private foundation under subti-
tle A and section 4940. Treas. Reg.
§ 53.4942(a)–2(b)(2), provides that the
distributable amount of a private foun-
dation shall be increased by the income
portion of distributions from trusts de-
scribed in section 4947(a)(2) with respect
to amounts placed into trust after March
26, 1969. InAnn Jackson Family Founda-
tion, the Tax Court held that Treas. Reg.
§ 53.4942(a)–2(b)(2) was invalid to the
extent the regulation requires including
in the private foundation’s distributable
amount for the year the full amount of
the income portion of distributions from
split-interest trusts. The court determined
that the language of section 4942 did not
support this interpretative regulation.
PROPOSED ACTION
The Treasury Department and the In-
ternal Revenue Service intend to propose
regulations modifying the regulations un-
der section 4942 in a manner consistent
with the holdings of the Tax Court and
the Ninth Circuit inAnn Jackson Family
Foundation. Until further guidance is pro-
mulgated, private foundations should com-
pute the distributable amount under sec-
tion 4942(d) without regard to Treas. Reg.
§ 53.4942(a)–2(b)(2).
CURRENT RETURN PROCESSING
For current tax returns, any private
foundation to which this notice applies
should mark “Filed pursuant to Notice
2004–36” on the front page of its Form
990–PF,Return of Private Foundation or
Section 4947(a)(1) Nonexempt Charitable
Trust Treated as a Private Foundation.If
a Form 4720,Return of Certain Excise
Taxes on Charities and Other Persons
Under Chapters 41 and 42 of the Internal
Revenue Code, is filed, Schedule B (Initial
Tax on Undistributed Income) should be
computed disregarding distributions re-
ceived from section 4947(a)(2) trusts. Re-
turns should be completed in accordance
with this notice pending corresponding
changes to Form 990–PF and Form 4720
and the accompanying instructions.
Form 990–PF requires information with
respect to not only the current tax year, but
also prior tax years, particularly Parts XI
and XIII. Private foundations may wish to
complete these Parts as if prior year returns
had been completed in accordance with
this Notice rather than the Form instruc-
tions. Private foundations may include a
schedule to show how the information pro-
vided on such return varies from prior year
returns as filed. It is not necessary for a pri-
vate foundation to file amended returns for
prior years, but it will be expected to retain
the supporting information and computa-
tions for the changes that would have been
reflected had amended returns been filed.
REFUND PROCESSING
For years in which the statute of lim-
itations has not expired and for which
a refund of section 4942 taxes paid is
sought, the private foundation must file an
amended Form 990–PF and an amended
Form 4720 for that year with a schedule
showing the corrected amount of section
4942 liability pursuant to this Notice. The
private foundation should mark the front
page of the amended return (or returns)
“Filed pursuant to Notice 2004–36.”
COMMENTS
The Service welcomes comments and
suggestions relating to the amendment
of the regulations on distributions from
split-interest trusts to private foundations.
Written comments should be submitted
by August 9, 2004, to CC:PA:LPD:RU
(Notice 2004–36), Room 5203, Internal
Revenue Service, POB 7604, Ben Franklin
Station, Washington, D.C. 20044. Com-
ments may be hand delivered between
the hours of 8 a.m. and 5 p.m., Mon-
day through Friday to CC:PA:LPD:RU
(Notice 2004–36), Courier’s Desk, Inter-
nal Revenue Service, 1111 Constitution
Ave., NW, Washington D.C. Alternatively,
comments may be submitted electroni-
cally via e-mail to the following address:
Notice.Comments@irscounsel.treas.gov.
All comments will be available for public
inspection.
DRAFTING INFORMATION:
The principal author of this notice is
Ronald B. Weinstock of the Office of Di-
vision Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities).
For further information regarding this
notice, contact Mr. Weinstock at (202)
622–3094 or contact Oksana O. Xenos of
the Office of the Commissioner (Tax
Exempt and Government Entities) at
202–283–9469 (not a toll-free number).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also, Part I, Sections 692, 7508A; 1.692–1,
1.7508A–1.)
Rev. Proc. 2004–26
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance for representatives of certain military
or civilian employees of the United States
who die as a result of injuries incurred
in a terrorist or military action. It pro-
vides guidance for having tax forgiven or
for claiming refunds of tax under section
692(c) of the Internal Revenue Code, as
amended by the Victims of Terrorism Tax
Relief Act of 2001, Pub. L. No. 107–134.
It also provides procedures by which the
Secretary will determine whether a terror-
ist or military action has occurred.
SECTION 2. BACKGROUND
.01 Prior to amendment by the Vic-
tims of Terrorism Tax Relief Act of 2001,
Pub. L. No. 107–134 (the Act), section
692(c)(1) provided that, in the case of any
May 10, 20048902004-19 I.R.B.

individual military or civilian employee of
the United States who died as a result of
wounds or injury incurred in a terrorist or
military action outside the United States
while the individual was a military or civil-
ian employee of the United States, any tax
imposed by subtitle A of the Code (income
tax) did not apply with respect to the tax-
able year in which fell the date of death and
with respect to any prior taxable year in the
period beginning with the last taxable year
ending before the taxable year in which the
wounds or injury were incurred.
.02 Section 113(b) of the Act amended
section 692(c) to remove the requirement
thattheemployeemusthaveincurred
the wounds or injuries outside the United
States. This amendment applies to tax
years ending on or after September 11,
2001. Section 692(c)(1), as amended, pro-
vides that, in the case of any individual
military or civilian employee of the United
States who dies as a result of wounds or
injury incurred in a terrorist or military
action while the individual was a military
or civilian employee of the United States,
any tax imposed by subtitle A of the Code
(income tax) shall not apply with respect
to the taxable year in which falls the date
of death and with respect to any prior tax-
able year in the period beginning with the
last taxable year ending before the taxable
year in which the wounds or injury were
incurred.
.03 Section 692(c)(2) defines “terroris-
tic or military action” as any terrorist activ-
ity which a preponderance of the evidence
indicates was directed against the United
States or any of its allies and any military
action involving the Armed Forces of the
United States and resulting from violence
or aggression against the United States or
any of its allies (or threat thereof). Terror-
ist activity includes criminal offenses in-
tended to coerce, intimidate, or retaliate
against the government or civilian popula-
tion. See,e.g., Homeland Security Act of
2002, Pub. L. No. 107–296, sec. 2(15),
116 Stat. 2135, 2141, 6 U.S.C. § 101(15).
.04 Section 111 of the Act added section
139 to the Code. Section 139 provides that
gross income shall not include any amount
received by an individual as a qualified
disaster relief payment. A qualified disas-
ter includes a disaster which results from
a terrorist or military action, as defined in
section 692(c)(2). I.R.C. § 139(c)(1).
.05 Section 112(a) of the Act grants the
Secretary authority under section 7508A to
disregard a period of time (up to one year)
for determining: (a) the timeliness of acts
under section 7508(a)(1), (b) the amount of
any addition to tax, and (c) the amount of
any credit or refund, in the event of a ter-
rorist or military action, as defined in sec-
tion 692(c)(2). Section 112(c) of the Act
amends the Employee Retirement Income
Security Act, 29 U.S.C. § 1148 and 29
U.S.C. § 1302(i) (ERISA), to authorize the
Secretary of Labor to disregard a period of
up to one year for determining the timeli-
ness of actions required under ERISA, in
the event of a terrorist or military action,
as defined by section 692(c)(2).
.06 Section 113 of the Act amends sec-
tion 104(a)(5) of the Code to include com-
pensation received for injuries or sickness
as a result of a terrorist or military action,
as defined by section 692(c)(2).
SECTION 3. SCOPE
.01 A determination under this revenue
procedure that an act qualifies as a terrorist
or military action within the meaning of
section 692(c)(2) will apply with respect to
the following provisions of the Code:
(1) section 104(a)(5) — which excludes
from gross income amounts received by an
individual as disability income attributable
to injuries incurred as a direct result of a
terrorist or military action;
(2) section 139(c) — which defines
qualified disasters to include disasters
which result from a terrorist or military
action;
(3) section 692(c)(1) — which provides
tax relief for certain military or civilian
employees of the United States dying as a
result of injuries incurred in a terrorist or
military action; and
(4) section 7508A — which authorizes
the Secretary to postpone certain deadlines
by reason of Presidentially declared disas-
ters or terrorist or military actions.
SECTION 4. PROCEDURE
.01 Making a determination that a ter-
rorist or military action has occurred under
section 692(c)(2) —
(1) Prior to publishing a determination
that an event that occurred outside the
United States constituted a terrorist action
within the meaning of section 692(c)(2),
the Secretary will ascertain, allowing a
reasonable time under the circumstances
for response, from the Department of State
and the Department of Justice whether
those Departments believe that a prepon-
derance of the evidence indicates that
the event resulted from terrorist activity
directed against the United States or its
allies. The Secretary will follow the same
procedures if an event that occurred within
the United States has an international di-
mension, or if the perpetrators or cause of
the event are unknown. An event within
the United States hasan “international
dimension” if a preponderance of the ev-
idence indicates that it involves: (a) an
attack by a foreign perpetrator, or by a do-
mestic perpetrator with links to a foreign
principal (e.g., a foreign terrorist group,
sponsor or financier); (b) an attack on a
foreign national, family members in the
United States of a foreign national, or a
United States entity held by foreign own-
ers; (c) an attack on a foreign diplomatic
mission or on an international organiza-
tion (including attacks on foreign diplo-
mats and other internationally-protected
persons in the United States); or (d) an
attack on, or with its impact in, the United
States, launched from across the border
of the United States.See,generally,22
U.S.C. § 2656f(d); 18 U.S.C. § 2331(1).
(2) Prior to publishing a determina-
tion that an event that occurred within
the United States that does not have an
international dimension constituted a ter-
rorist action within the meaning of section
692(c)(2), the Secretary will ascertain,
allowing a reasonable time under the cir-
cumstances for response, from the Depart-
ment of Justice whether that Department
believes that a preponderance of the ev-
idence indicates that the event resulted
from terrorist activity directed against the
United States.
(3) Prior to publishing a determination
that an event constituted a military action
within the meaning of section 692(c)(2),
the Secretary will consult the Department
of Defense with respect to whether the
event was a military action involving the
Armed Forces of the United States result-
ing from violence or aggression against the
United States or its allies.
(4) After determining that a terrorist or
military action has occurred, the Secretary
may exercise the authority under section
7508A to disregard a period of up to one
2004-19 I.R.B.891May 10, 2004

year for determining: (a) the timeliness
of acts under section 7508(a)(1); (b) the
amount of any addition to tax; and (c) the
amount of any credit or refund.
(5) Taxpayers may rely on the published
guidance to establish that particular events
were terrorist or military actions for pur-
poses of sections 104(a)(5), 139(c), and
692(c).
.02 Filing claims for credit or refund
under section 692(c) —
(1) Representatives of employees who
qualify for the benefits of section 692(c),
and for whom no Form 1040,U.S. In-
dividual Income Tax Return, has been
filed, may claim those benefits, or claim
a refund of withholding or estimated tax
payments, by filing a Form 1040. The
representatives should file those forms at
the address provided in Publication 3920,
Tax Relief for Victims of Terrorist Attacks.
(Also see Publication 3920 for more de-
tailed procedures for claiming a refund.)
On joint returns reporting taxable income
of the surviving spouse, taxpayers must
make an allocation of the tax liability be-
tween spouses.Seesection 1.692–1(b) of
the Income Tax Regulations. If the surviv-
ing spouse or other person filing the joint
return cannot determine the proper alloca-
tion, he or she should attach a statement
of all income and deductions allocable to
each spouse and the IRS will make the
proper allocation. The representative must
attach the employee’s Form W-2,Wage
and Tax Statement.
(2) In the case of any employee for
whom a Form 1040 already has been filed,
claims for refund should be made by filing
Form 1040X,Amended U.S. Individual
Income Tax Return, with IRS at the ad-
dress provided in Publication 3920. (Also
see Publication 3920 for more detailed
procedures for claiming a refund.) In
cases where the previously filed return
was a joint return that reported taxable
income of the surviving spouse, the claim
for refund must make an allocation of the
tax liability between spouses.Seesection
1.692–1(b) of the Income Tax Regula-
tions. If the surviving spouse or other
person filing the claim for refund cannot
determine the proper allocation, he or she
should attach a statement of all income and
deductions allocable to each spouse, and
the IRS will make the proper allocation.
(3) All returns and claims for refund
filed pursuant to this revenue procedure
should be identified by writing “KITA” (or
other designation as set forth in Publica-
tion 3920 or other guidance the Service is-
sues) in bold letters on the top of page 1 of
the return or claim for refund.
(4) Returns and claims for refunds must
be accompanied by the following docu-
ments:
(a) Form 1310,Statement of Person
Claiming Refund Due a Deceased Tax-
payer, unless: (i) the surviving spouse is
filing an original or amended joint return,
or (ii) the decedent’s personal represen-
tative is filing an original Form 1040, in
which case the personal representative
must attach a copy of the court certificate
showing his or her appointment, and;
(b)(i) For military and civilian employ-
ees of the Department of Defense — A cer-
tification made by the Department of De-
fense on DD Form 1300 that includes the
name and social security number of the
individual, the date of injury, the date of
death, and a statement that the individual
died as the result of a military or terrorist
action and was an employee of the United
States on the date of injury and on the date
of death.
(ii) For United States government em-
ployees killed in the United States (who
are not employees of the Department of
Defense) —
(A) A death certificate stating the nature
of the injury causing death or, if the cause
of death is not apparent from the death cer-
tificate, a letter from the treating physician,
medical examiner, or hospital stating the
cause of death, and
(B) A certification from the federal em-
ployer that includes the name and social
security number of the decedent, the date
of injury, the date of death, a statement
that the decedent was an employee of the
United States on the date of injury and
the date of death and, if the death was as-
sociated with an event that the Secretary
has identified as a military action or terror-
ist activity in published guidance, a state-
ment identifying the action or activity as-
sociated with the death. This certificate
maybeaformorletterfromtheemploy-
ing agency’s personnel department to the
decedent’s representative.
(iii) For United States government
employees killed overseas (who are not
employees of the Department of Defense)
— A certification from the Department of
State that the death was the result of ter-
rorist or military action outside the United
States. The certification must be made in
the form of a letter signed by the Director
General of the Foreign Service, Depart-
ment of State, or his or her delegate. The
certification must include the name and
social security number of the individual,
the date of injury, the date of death, and a
statement that the individual died as the re-
sult of a military or terrorist action outside
the United States and was an employee of
the United States on the date of injury and
on the date of death.
(5) In a case in which a representative
of a decedent who died as the result of
terrorist or military action does not have
enough tax information to file a timely
claim for refund, the representative may
stop the running of the period of limita-
tions for making such a claim by filing
Form 1040X with the IRS at the address
provided in Publication 3920, attaching
Form 1310, any other available documen-
tation required by this revenue procedure,
and a statement that an amended claim will
be filed as soon as the additional requisite
information is ascertained.
(6) If an event occurs in the United
States that the representative of a dece-
dent who was not an employee of the De-
partment of Defense at the time of injury
and death believes was a terrorist or mili-
tary action, and the Secretary has not pub-
lished a determination that the event was
a terrorist or military action, the represen-
tative may submit a request for a determi-
nation with the return or claim for refund
of the decedent’s estate and any other doc-
umentation required by this revenue pro-
cedure. Taxpayers should submit the fol-
lowing information with their determina-
tion requests:
(a) Date and location of incident,
(b) Type of incident (terrorist or mili-
tary),
(c) Number of taxpayers thought to be
affected,
(d) A description of the facts on which
the representative bases the claim that a
terrorist or military action has occurred, in-
cluding the facts relating to any alleged in-
ternational dimension of a terrorist action
as set forth in section 4.01(2) of this rev-
enue procedure, and
May 10, 20048922004-19 I.R.B.

(e) A completed Form 8821,Tax In-
formation Authorization, that will permit
the IRS to disclose to the Department of
Justice (for terrorist attacks), the Depart-
ment of State (for terrorist attacks with
an alleged international dimension), or the
Department of Defense (for military ac-
tions) return information relating to the re-
turn or claim for refund. Taxpayers should
complete the form as instructed, listing the
Department of Justice as the appointee if
the request relates to an alleged terrorist at-
tack, the Department of State if the request
relates to an alleged terrorist attack with
an international dimension, or the Depart-
ment of Defense if the request relates to an
alleged military action. The appointee’s
address is not required in this instance.
Taxpayers should check the box on the line
of Form 8821 that indicates that the tax
information authorization is for a specific
use and not recorded on the Centralized
Authorization File (CAF).
SECTION 5. EFFECT ON OTHER
DOCUMENTS
This revenue procedure obsoletes Rev.
Proc. 85–35, 1985–2 C.B. 433.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective as
of the date of publication of this revenue
procedure in the Internal Revenue Bul-
letin, May 10, 2004.
SECTION 7. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Emly B. Berndt of the Asso-
ciate Chief Counsel (Procedure and Ad-
ministration), Administrative Provisions
and Judicial Practice. For further infor-
mation regarding this revenue procedure,
contact Emly Berndt at (202) 622–4940
(not a toll-free call).
2004-19 I.R.B.893May 10, 2004

Part IV. Items of General Interest
Notice of Proposed
Rulemaking by
Cross-Reference to
Temporary Regulations
and Notice of Public Hearing
Allocation and Apportionment
of Expenses; Alternative
Method for Determining Tax
Book Value of Assets
REG–129447–01
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking
by cross-reference to temporary regula-
tions and notice of public hearing.
SUMMARY: In this issue of the Bul-
letin, the IRS is issuing temporary regula-
tions (T.D. 9120) providing an alternative
method of valuing assets for purposes of
apportioning expenses under the tax book
value method of §1.861–9T. The alter-
native tax book value method, which is
elective, allows taxpayers to determine,
for purposes of apportioning expenses,
the tax book value of all tangible property
that is subject to a depreciation deduction
under section 168 by using the straight
line method, conventions, and recovery
periods of the alternative depreciation
system under section 168(g)(2). The alter-
native method provided in the temporary
regulations is intended to minimize basis
disparities between foreign and domestic
assets of taxpayers that may arise when
taxpayers use adjusted tax basis to value
assets under the tax book value method of
expense apportionment. The text of those
temporary regulations also serves as the
text of these proposed regulations. This
document also provides a notice of public
hearing on these proposed regulations.
DATES: Written or electronic comments
must be received by June 24, 2004. Out-
lines of topics to be discussed at the public
hearing scheduled for July 19, 2004, at 10
a.m. must be received by June 28, 2004.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR(REG–129447–01),
Room 5203, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may
be hand-delivered between the hours of
8a.m. and4p.m. toCC:PA:LPD:PR
(REG–129447–01), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitution
Avenue, NW, Washington, DC, or sent
electronically, via the IRS internet site at
www.irs.gov/regs. The public hearing will
be held in the IRS Auditorium, Internal
Revenue Building, 1111 Constitution Av-
enue, NW, Washington, DC.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Margaret A. Hogan, (202)
622–3850; concerning submissions of
comments, the hearing, and/or to be placed
on the building access list to attend the
hearing, Robin Jones, (202) 622–7180
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provisions
The temporary regulations in this is-
sue of the Bulletin amend 26 CFR Part
1. The temporary regulations provide an
alternative method of valuing assets for
purposes of apportioning expenses under
the tax book value method of §1.861–9T.
The text of the temporary regulations also
serves as the text of these regulations. The
preamble of the temporary regulations ex-
plains the temporary regulations and these
proposed regulations.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866. Therefore, a regulatory as-
sessment is not required. It has also been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. chap-
ter 5) does not apply to these regulations,
and because the regulations do not im-
pose a collection of information on small
entities, the Regulatory Flexibility Act (5
U.S.C. chapter 6) does not apply. Pursuant
to section 7805(f) of the Internal Revenue
Code, this notice of proposed rulemaking
will be submitted to the Chief Counsel of
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
businesses.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any written (a signed origi-
nal and eight (8) copies)orelectroniccom-
ments that are submitted timely to the IRS.
The IRS and the Treasury Department re-
quest comments on the clarity of the pro-
posed rule and how it can be made easier
to understand. All comments will be avail-
able for public inspection and copying.
A public hearing has been scheduled for
July 19, 2004, beginning at 10 a.m. in
the IRS Auditorium of the Internal Rev-
enue Building, 1111 Constitution Avenue,
NW, Washington, DC. Due to building se-
curity procedures, visitors must enter at the
Constitution Avenue entrance. In addition,
all visitors must present photo identifica-
tion to enter the building. Because of ac-
cess restrictions, visitors will not be ad-
mitted beyond the immediate entrance area
more than 30 minutes before the hearing
starts. For more information about hav-
ing your name placed on the building ac-
cess list to attend the hearing, see the “FOR
FURTHER INFORMATION CONTACT”
section of this preamble.
The rules of 26 CFR 601.601(a)(3) ap-
ply to the hearing. Persons who wish to
present oral comments at the hearing must
submit electronic or written comments by
June 24, 2004, and an outline of the topics
to be discussed and the time to be devoted
to each topic (signed original and eight (8)
copies) by June 28, 2004. A period of 10
minutes will be allotted to each person for
making comments. An agenda showing
the scheduling of the speakers will be pre-
pared after the deadline for receiving out-
lines has passed. Copies of the agenda will
be available free of charge at the hearing.
Drafting Information
The principal author of these proposed
regulations is Margaret A. Hogan, Office
of Associate Chief Counsel (Interna-
tional). However, other personnel from
the IRS and Treasury Department partici-
pated in their development.
May 10, 20048942004-19 I.R.B.

*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR Part 1 is proposed
to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
§1.861–9 is amended by adding entries in
numerical order to read in part as follows:
Authority: 26 U.S.C. 7805.
Sections 1.861–9 and 1.861–9T also is-
sued under 26 U.S.C. 863(a), 26 U.S.C.
864(e), 26 U.S.C. 865(i), and 26 U.S.C.
7701(f). * * *
Par. 2. Section 1.861–9 is amended by
revising paragraph (g)(1)(ii) introductory
text, and adding paragraphs (h)(6), (i) and
(j) to read as follows:
§1.861–9 Allocation and apportionment
of interest expense.
*****
(g)***(1)***(i)***
(ii)***[Thetextoftheproposedre-
vision of §1.861–9(g)(1)(ii) is the same as
the second sentence of §1.861–9T(g)(1)(ii)
published elsewhere in this issue of the
Bulletin.] * * *
*****
(h)(6) [Reserved]. For further guidance
see, §1.861–9T(h)(6).
(i) [The text of the proposed addition of
§1.861–9(i) is the same as §1.861–9T(i)(1)
through (i)(3)(i) published elsewhere in
this issue of the Bulletin.]
(j) [Reserved]. For further guidance,
see §1.861–9T(j).
Mark E. Matthews,
Deputy Commissioner for
Services and Enforcement.
(Filed by the Office of the Federal Register on March 25,
2004, 8:45 a.m., and published in the issue of the Federal
Register for March 26, 2004, 69 F.R. 15753)
Foundations Status of Certain
Organizations
Announcement 2004–34
The following organizations have failed
to establish or have been unable to main-
tain their status as public charities or as op-
erating foundations. Accordingly, grantors
and contributors may not, after this date,
rely on previous rulings or designations
in the Cumulative List of Organizations
(Publication 78), or on the presumption
arising from the filing of notices under sec-
tion 508(b) of the Code. This listing does
notindicate that the organizations have lost
their status as organizations described in
section 501(c)(3), eligible to receive de-
ductible contributions.
Former Public Charities.The follow-
ing organizations (which have been treated
as organizations thatare not private foun-
dations described in section 509(a) of the
Code) are now classified as private foun-
dations:
1st Chance Productions, Inc., Sylmar, CA
7–H Foundation, Los Angeles, CA
70 Plus, Valley Village, CA
73rd Ave. Community Awareness
Program, Oakland, CA
77th Street Boosters, Inc.,
Los Angeles, CA
A One Kids, West Palm Beach, FL
Accesscare, Morrisville, NC
Acts of Compassion, Inc., Deadwood, OR
Advocates for Technological Opportunity,
Larkspur, CA
Afterschool Educational Enrichment
Foundation, Beverly Hills, CA
Africa-USA, New York, NY
AFWA IBOM State Association of
Nigeria USA, Inc., Los Angeles,
Los Angeles, CA
Ahepa Hellenic Heritage Foundation,
Pasadena, CA
Alameda Naval Air & Western Aerospace
Museum, Oakland, CA
Alaska Tradeswomen Network,
Anchorage, AK
Albany Rescue Mission Association,
Albany, OR
Alethos Foundation, Calabasas, CA
Alliance for Animal Hope of Louisiana,
Inc., New Orleans, LA
Alpha and Omega Project, Inc.,
Inglewood, CA
Altemus, Inc.,
Gravenhurst, Ontario Canada
America Theological Seminary,
Los Angeles, CA
American Anglican Council–Los Angeles,
Los Angeles, CA
American Center for Political
Communities of Meaning, Portland, OR
American Humanitarian Landmine
Disposal Foundation, Santa Monica, CA
American Museum of Beat Art,
Pasadena, CA
American Safety Training Foundation,
Santa Clarita, CA
Anew Birth Christian Ministries,
Los Angeles, CA
Anfall, Inc., Bell Gardens, CA
Angels Plight, Inc., New York, NY
Antelope Valley Child Abuse Prevention
Council, Inc., Lancaster, CA
Antelope Valley Chinese Educational
Center, Inc., Palmdale, CA
Antelope Valley Team Sheriff Racing,
Lancaster, CA
Antioch Baptist Church Community
Development Corporation, Douglas, NE
Apartment A, Venice, CA
APR Southern California Construction
Career Project, Los Angeles, CA
Arabic Christian Medical Association,
Inc., Downey, CA
Arikat Charitable Association,
San Francisco, CA
Arts Broadcasting L A, Santa Monica, CA
Asian Pacific Counseling & Consultant
Group, Los Angeles, CA
Asifa-Hollywood Animation Aid
Foundation, Burbank, CA
Asociacion Esfuerzo Unido Por Piedra
Blanca Bonao, Inc., Bronx, NY
Aspiring Communities Institute,
St. Louis, MO
Assemblies in Motion, Sherman Oaks, CA
Association of Betterers Intervention
Programs, Encino, CA
Association of Korean Adoptees,
Los Angeles, CA
Atlas Foundation, Los Angeles, CA
Aua Fisheries Development Projects, Inc.,
Pago Pago, AS
Baby DJ Childrens Charities a Nonprofit
Corporation, Seattle, WA
Baker-Conway Foundation,
Shoreline, WA
Bay Area Dragon Boat Foundation,
Redwood City, CA
Bayanihan Senior Citizens Association,
Inc., Los Angeles, CA
Beach Cities Hockey Foundation, Inc.,
Rancho Santa Margari, CA
Beat Eddie Brown Center for the Arts,
Berkeley, CA
Because Its Right, Inc., Memphis, TN
Benchwear Athletic Consulting,
Pasadena, CA
2004-19 I.R.B.895May 10, 2004

Benton County Water Conservancy
Board, Patersen, WA
Bicycle Friendly Berkeley Coalition, Inc.,
Berkeley, CA
Boys-to-Men Club, Los Angeles, CA
Brain Injury Association of Alaska,
Anchorage, AK
Brexton Renaissance, Inc., Laurel, MD
Bridge A NonProfit Corporation,
Seattle, WA
Bridgeport Buyers Association,
Bridgeport, TX
Brighter Future, Carson, CA
Bristol Bay Elders Action Group,
Naknek, AK
Bromont Housing Corporation,
Studio City, CA
Building Community Links,
San Francisco, CA
Bulgarian Americans United,
Sacramento, CA
Bunn Community Outreach, Bunn, NC
Business Boutique, Inc., Huntington, NY
Buying With Vision, San Francisco, CA
Cadet Youth Foundation, Burbank, CA
California Association of Batterers
Intervention Programs, Encino, CA
California Cowboy Benefit, Dublin, CA
California Cruisers, Tustin, CA
Camoes Players, Honolulu, HI
Capistrano Cornerstone, Inc.,
Costa Mesa, CA
Caring Heart Foster Family Agency, Inc.,
Los Angeles, CA
Carter G. Woodson Alumni Association,
Normangee, TX
Casa Nicaragua & Educational Project for
Central American, S. Gate, CA
Casa Rivas, San Fernando, CA
Cascadia Weekend, Wilsonville, OR
Catchum Young Foundation,
Los Angeles, CA
Celebrazione Italiana Festival
Association, Oakdale, MN
Center for Entrepreneurial Development
for the Pacific, Kailua, HI
Center for New Americans, Portland, OR
Center for Sustainable Urban Design at
Playa Vista, Playa Vista, CA
Center for the Arts of the African
Diaspora, Inc., Los Angeles, CA
Chameleon Theatre Group, Inc.,
Walden, NY
Champaign Rottweiller Rescue,
Champaign, IL
Chance to Begin, Inc., Richmond, CA
Chapman Child and Family Foundation,
Santa Monica, CA
Charities, Inc., Newark, DE
Chico Dharma Study Group, Chico, CA
Children First, Oakland, CA
Childrens at Risk in Developing
Countries, Inc., St. Louis Park, MN
Childrens Funeral Assistance,
Los Angeles, CA
Childrens Prime Time Sports Club, Inc.,
Inglewood, CA
Chinatown Community Housing
Corporation, Honolulu, HI
Chinese Church Music Institute of
Northern California, San Francisco, CA
Chinese Lantern Cultural Foundation,
Belmont, CA
Chris Catering Institute, Los Angeles, CA
City Streets Foundation,
Walnut Creek, CA
Claire Lilienthal Learning Academy,
San Francisco, CA
Classic Aircraft Aviation Museum, Inc.,
Portland, OR
Clean & Sober, Portland, OR
Clean Belmont Project, Inc., Portland, OR
Clinicalcircle, Inc., Los Angeles, CA
Coalition for Fire Rescue Technology,
Inc., Anchorage, AK
Coastal Public Benefit Corporation,
El Granada, CA
Community Alliances of Interdependent
Agriculture, Amherst, MA
Community Home Neighborhood
Maintenance & Development,
Spring Valley, CA
Community Life, Springfield, OR
Community Outreachand Education
Center, Walnut, CA
Compassionate Heart Ministries, Inc.,
Inglewood, CA
Connecting, Incorporated,
Washington, DC
Conservation Alliance of Palm Beach
County, Inc., West Palm Beach, FL
Construction Systems Scholarship Fund,
Inc., Houston, TX
Consumer Credit Center, Los Angeles, CA
Cook Inlet Wrestling Club,
Anchorage, AK
Cory Jill Rovin Memorial Foundation,
Island Park, NY
Council of KPC of Northern California,
San Francisco, CA
Cowgirl Way Equestrian Drill Team,
Norco, CA
Creative Technical Science Study
Foundation, San Francisco, CA
Cultural Restoration Tourism Project,
Pacifica, CA
Daniel Dru Native American Traditional
Organization, Incorporated, Miami, OK
Deafwax, Los Angeles, CA
Denali Institute, Anchorage, AK
Dennis Spaight Choreography Trust,
Portland, OR
Dolphin Odyssey Foundation, Kapaa, HI
Don Lavy Dance Company,
Sherman Oaks, CA
Donny Cowgill Memorial Scholarship
Fund, Highland Park, IL
Dream Industries, Los Angeles, CA
Dreams Can Come True Foundation, Inc.,
Roseville, CA
Earth Angels Foundation, New York, NY
Earth Studies, Inc., Palm Desert, CA
Earthman Project, Inc., Davie, FL
East Fishkill Challenge
Softball Association, Inc.,
Hopewell Junction, NY
Eastlake Child Development Center,
Oakland, CA
Easy English Times, Inc., Napa, CA
Ecuadorian Association for Muscular
FilialFEOM,Houston,TX
Education and Literacy Resource
Connection, Inc., Sacramento, CA
El Ritmo Flamenco Dance Troop,
Columbus, OH
Emerald Chariot Foundation,
Marina Del Rey, CA
Emerald Regiment Drill Team,
Mountlake Terrace, WA
Emeryville Performing Arts, Inc.,
Emeryville, CA
English Opera Seattle, Seattle, WA
Enrichment Plus North, Inc., Oakland, CA
Environmental Education Resources,
Portola Valley, CA
Envisage, Seattle, WA
Epiphany Theatre Co., Los Angeles, CA
Excellent House Services, Inc.,
West Palm Beach, FL
Eyapaha Institute, Marina Del Rey, CA
Faith & Hope Ministries, Emerado, ND
Families of Hope, Stanwood, WA
Family Unity Network, Inc., Oakland, CA
Fathers Project, Berkeley, CA
Federal Way High School Choral Booster
Club, Federal Way, WA
Fil-Am Center for Community Health and
Development, Inc., San Pablo, CA
Financial Pacific C A P, Auburn, WA
First Star Scholarship Foundation,
S. Gate, CA
Flint Cuts Glass Music, Ltd.,
Oregon City, OR
May 10, 20048962004-19 I.R.B.

Florida College Booster Club of Southern
California, Inc., Winnetka, CA
Food for Thought Productions,
Toluca Lake, CA
For a Better Future Foundation,
Costa Mesa, CA
Foundation for Advancement in Music
Education, Hollywood, CA
Foundation for African Arts & Culture,
Oakdale, CA
Foundation for Honduran Development,
Los Angeles, CA
Free Speech Movement Archives,
Palo Alto, CA
Fresh Start, Seattle, WA
Friends of Fleet Park, Montesano, WA
Friends of Marie Reed School and
Recreation Center,Silver Spring, MD
Friends of Our Lady of Hope,
San Francisco, CA
Friends of the Lockport Public Library,
Inc., Lockport, NY
Friends of VGH & UBC Hospital
Foundation, Canada
Frontier Ice Alliance, Inc., Palmer, AK
Full Circle Community Counseling
and Support Services, Inc.,
San Francisco, CA
Full Gospel Business Women Fellowship
International, Inglewood, CA
Fund of the Immaculate Heart,
Beverly Hills, CA
Fundaninas Foundation, Inc., Miami, FL
G & L Connection, Lancaster, CA
G. T. Brinson School in Lieu,
Federal Way, WA
Galt Area Swim Program, Galt, CA
Generations and Partnerships,
E. Wenatchee, WA
Giant Steps of America, Novato, CA
Girdwood Volunteer Fire and Rescue,
Inc., Girdwood, AK
Global Business Educational Institute,
Inc., Warrensville, OH
Global Charity Organization, Inc.,
San Leandro, CA
Global Education & Cultural
Opportunities, Inc., New Smyrna, FL
Go and Tell Ministries, Inc., Dallas, TX
Gods Image, Norwalk, CA
Golden Carrot, Aguanga, CA
Good Neighbors Old Fashioned
Community Chest, Inc., Nashville, TN
Goodnews River Lodge Educational
Fund, Inc., Eagle River, AK
Granite Regional Park Foundation,
Sacramento, CA
Great Basin Tree Foundation,
Klamath Falls, OR
Great Beginnings Childrens Fund, Inc.,
Kamuela, HI
Great Mission, Los Angeles, CA
Greater Community Outreach Service,
Inc., Muskegon Heights, MI
Greater Harvest Family Life Center,
Baltimore, MD
Greater Long Beach Youth Activities
League, Los Angeles, CA
GTB SEWA Mission, Inc., Union City, CA
Guardian Community Services, Inc.,
Los Angeles, CA
Guns Arent Fun, Portland, OR
Halau Haloa the National Academy
of Hawaiian Performing Arts,
Pearl City, HI
Hampton Roads Mexican American Club,
Portsmouth, VA
Handong International Foundation,
Los Angeles, CA
Hands-On Curriculum Concepts,
Gardena, CA
Hankook Korean American Senior
Citizens Association, Los Angeles, CA
Hans Einstein Community Medical
Scholarship, Berkeley, CA
Hanuri Korean Gay Community Network,
Los Angeles, CA
Harold Haughton Community
Development Corporation,
New Orleans, LA
Harvest Outreach Hawaii, Haleiwa, HI
Hawaii Academy of Audiology
Foundation, Honolulu, HI
Hawaii Museum of Flying, Honolulu, HI
Hawaii Rhythmic Gymnastic Association,
Haleiwa, HI
Hawaii State Junior Golf Association,
Inc., Honolulu, HI
Hawaii Wushu Center, Cotati, CA
Hawaiian Inter-Club Council of Southern
California Health & Ed Fund,
Los Angeles, CA
Hayward Police Officers Benevolent
Foundation, Hayward, CA
Healthy Kids International, Seattle, WA
Heart Healers, Inc., a Non-for-Profit
Corp., Woodland Hills, CA
Hecel Oyakapi, Inc., Studio City, CA
HeirtotheThrone,Tacoma,WA
Help Heal Our Streets, Inc.,
San Fernando, CA
Help Us Help You, Sacramento, CA
Helping Hands for the Sorrowful, Inc.,
Palm Beach, FL
Hemophilia Network, Incorporated,
Los Angeles, CA
Heritage Begins Within, Beverly Hills, CA
Heritage Cemetary Group, Inc.,
Tigard, OR
Heritage Society of Ethnic Arts,
San Francisco, CA
Hillsboro Soccer Club, Hillsboro, OR
Hineni Ministries a Non Profit Montana
Corporation, Seattle, WA
HIV Complimentary Therapies of Sonoma
County, Santa Rosa, CA
Hollywood Access Program for Natives,
Inc., Tarzana, CA
Hollywood Air Corps Charitable
Foundation, Santa Monica, CA
Hollywood Renainnance Film Festival,
Hayward, CA
Hoop Dreams, Inc., Rodeo, CA
Hope & Lite Foundation, Inc.,
Salt Lake City, UT
Hope Life, Inc., Euless, TX
Hope Through Opportunity, Inc.,
Oakland, CA
Hopedale Youth Basketball League, Inc.,
Hopedale, MA
Hopes Nest Limited, Los Angeles, CA
Hospice Services in America Foundation,
Culver City, CA
Hospital Presbiteriano De Mainero, Inc.,
Houston, TX
House of Change, Portland, OR
House of Concern, Los Angeles, CA
H R A, Inc., Kailua-Kona, HI
Hui O Hilo, Inc., Hilo, HI
Hungarian Christian Assembly,
Stockton, CA
IKF Booster Club, Grants Pass, OR
Imagine Washington, Inc.,
Washington, DC
Immunocytochemistry Research
Institute-Seattle, Seattle, WA
Inglewood Educational Foundation,
Inglewood, CA
Inland Empire AIDS Center, Inc.,
San Bernardino, CA
Inland Empire Talent Production,
Fontana, CA
Instrumental Music Boosters, Inc.,
Alta Loma, CA
Integrated Arts a Home for Creative
Expression, Berkeley, CA
International Christian Foundation, Inc.,
Gresham, OR
International Health Medical Group, Inc.,
Los Angeles, CA
2004-19 I.R.B.897May 10, 2004

International Medical Advocacy Group
for Greater Health Care Information and
Edu, Walpole, MA
Internet Security Foundation International,
La Honda, CA
Iron Sharpening Iron Training Center,
Altadena, CA
J. D. Henderson Ministries, Inc.,
Portland, OR
Jacobs Ladder, Inc., Oakland, CA
Jesus Video Project Northwest, Salem, OR
Jewish Association for All,
Los Angeles, CA
Joans Second Chance Home,
North Hollywood, CA
Joeys Feline Friends a Rescue Foundation,
Kaneohe, HI
Jonathans Christian Outreach, Inc.,
Chico, CA
Joshuas House, Troutdale, OR
Jump Strait, Houston, TX
Junction City Soccer Club 01–01–98,
Junction City, OR
JWW Counseling Service, Compton, CA
Ka Pa Hula O Leilehua, Mililani Oahu, HI
Kidn Around of Eastern Oregon, Inc.,
Redmond, OR
Kids Are Important in North Dakota,
Grand Forks, ND
Kids Campaign, Van Nuys, CA
Kids Korner Preschool, Inc., Arleta, CA
Kids Learning Center of South Florida,
Inc., Miami, FL
Kidz Eyes Foundation, Los Angeles, CA
Kim Eung Hwa & Korean Dance
Academy, Los Angeles, CA
K L O 8240th Army Veterans Association
U S A, Los Angeles, CA
Korean-American Alliance for the
Mentally Ill CA, Inc., Walnut, CA
Korean American Christian Broadcasting,
Los Angeles, CA
Korean American Coalition Hawaii
Chapter, Honolulu, HI
Kyo-Youth Foundation, Everett, WA
LA Diversified Theater Group,
Venice, CA
L A Evangelism College, Los Angeles, CA
L A Jesus Love Mission Center,
La Mirada, CA
Lanakila Hockey Club, Ewa Beach, HI
Laulima Kuhao, Lanai City, HI
Lavender Alliance for Civic Action,
Sacramento, CA
League of Sacramento Theatres,
Sacramento, CA
Learning Tools for Kids, Inc.,
Portland, OR
Life Training a California Nonprofit
Public Benefit Corporation,
Calabasas, CA
Lifestyle & Education Institute,
Los Angeles, CA
Lighthouse of the Lord, Inc., Freeport, FL
Lomita Womens Club, Lomita, CA
Lorenz-Smeenge Foundation, Inc.,
Jacksonville, FL
Los Angeles Chapter of the National Black
MBA Association, Los Angeles, CA
Los Angeles Fire Department Historical
Society, Los Angeles, CA
Los Angeles Korean Festival Committee,
Los Angeles, CA
Macedonia Community Development
Corporation, Trenton, NJ
Manthano Project, Inc., Antelope, OR
Mapintee, San Francisco, CA
Mariculture Research Institute,
Cleveland, TN
Maryland Society for Obesity Prevention,
Inc., Rockville, MD
Mayors Hunger and Homelessness Relief
Program, Oakland, CA
Medical International Rapid Response,
Redmond, WA
Melita, Inc., Vallejo, CA
Merced Symphony Association,
Merced, CA
Mere Tuiasosopo Betham Financial Aid
and Scholarship Fund, Pago Pago, AS
Mid-Valley Girls Fastpitch Softball
League, Inc., Encino, CA
Mid-Wilshire Human Services,
Los Angeles, CA
Midway Village Resident Association,
Inc., Daly City, CA
Minnesota Entrepreneurs, Inc.,
Minneapolis, MN
Mission TLC, Inc., of Northeast Florida,
Ponte Verde Beach, FL
Moores Meamorphosis, Inc.,
San Leandro, CA
Mt. Everest Ministries,
Newport Beach, CA
Mukunghwa Korean School, Oakland, CA
Music International Connection,
N. Hollywood, CA
Music Mission, Monroe, WA
Muslim Community and Human
Development Corporation, Portland, OR
My Friends House, Inc., Bend, OR
Na Koa Opio, Waianae, HI
Nac Foundation, Oakland, CA
Naja, Inc., American Cyn, CA
Naranjo Family Homes, Inc.,
Inglewood, CA
National Association of Collegiate
Women Athletic Administrators,
Wilmington, NC
National Cervical Cancer Coalition,
Van Nuys, CA
National Council on Business Strategy,
Inc., Washington, DC
National High School Sports Foundation,
La Mirada, CA
National Paralegal Defense League Corp.
a Nevada Corporation, Los Angeles, CA
Nativity Club, Inc., Burbank, CA
Near-National Endowment for Animal
Rights, Los Angeles, CA
Nedra Thurlow Horn Educational Tr.,
Seattle, WA
Nehemiah Project-Oakland, Oakland, CA
Nevada County Food & Toy Run,
Nevada City, CA
New Life in Christ Ministries,
Landover Hills, MD
New Mexico Sandplay Society,
Albuquerque, NM
New World Mission Center,
Los Angeles, CA
Newton Educational Center,
Los Angeles, CA
Nexus Dance Company, Portland, OR
Nigerian Talking Drum Ensemble
Foundation, Inc., Los Angeles, CA
Nika Gallery, Inc., San Francisco, CA
North Coast Symphony Orchestra,
Wheeler, OR
North Florida Screaming Eagles, Inc.,
MacClenny, FL
North San Fernando Valley Community
Foundation, Inc., Granada Hills, CA
Northern California Earth Institute,
Oakland, CA
Northwest Classical Theatre Company,
Portland, OR
Northwest Sculling Association,
Seattle, WA
Northwest Tidal Waves, Marysville, WA
Oakland Young Peoples Theatre,
Oakland, CA
Oasis Transitional Housing Program,
Los Angeles, CA
O C B Community Service, Inc.,
Los Angeles, CA
October Sunday Festival, Inc.,
St. Thomas, VI
Ohana Foundation, Cupertino, CA
Olive Tree Literature Society, Tigard, OR
One Voice Foundation, Los Angeles, CA
One Way Mission, Redwood City, CA
One World One Vision, Inc.,
Jersey City, NJ
May 10, 20048982004-19 I.R.B.

Onesimus Jail Ministry, Bellflower, CA
Operation Ezekiel, Inc., Irvine, CA
Oregon Premier Fastpitch Softball,
Portland, OR
Pacific Northwest Foundation, Canada
Pacifica Ocean Discovery Center,
Pacifica, CA
Paramedics and EMTS Abroad, Inc.,
Silverton, OR
Parker County Childrens Advocacy
Center, Weatherford, TX
Partnership for Children, Everett, WA
Paul and Adell Lee Community Center,
Inc., Oak Park, MI
PAVE,Cranberry,PA
Peaceful Streets, San Francisco, CA
Peggy Cole Ministries International,
Paso Robles, CA
People Achieving Recreation &
Community Services, Malibu, CA
Peoples Helping Hands, Beatyville, KY
Persian Cat Rescue of Northern California,
Castro Valley, CA
Personal Financial Management Services,
Citrus Heights, CA
Peter John Mission, Los Angeles, CA
Phoenix and U Partners Homeownership,
Van Nuys, CA
Phoenix Resurrection Foundation,
Seward, AK
Pine Creek Assisted Living, Inc.,
Anchorage, AK
P L A C E Educational Corporation,
McMinnville, OR
Playwrights Group and LA Writers
Workshop, Inc., Los Angeles, CA
Point Pleasant Foundation for Excellence
in Education, Inc., Pt. Pleasant, NJ
Polk District Renaissance,
San Francisco, CA
Portland-Tallinn Friendship City
Association, Beaverton, OR
Potential Unlimited, Inc.,
Burtonsville, MD
Preserve Our Water Environment and
Resources, Inc., Rome, GA
Preserving Social Graces a Calif.
Nonprofit Public Benefit Corp.,
Los Angeles, CA
Professional Women of Colors,
Oakland, CA
Project Baby Love, Inc., Wenatchee, WA
Project Restore, Inc., Gary, IN
Protecting Americas Children, Inc.,
Lake Oswego, OR
PSU Educational Foundation, Inc.,
Nanuet, NY
Pulaski County Wrestling Club,
Roanoke, VA
Quest for Hearing, Lakewood, WA
Rahus Institute, Pleasant Hill, CA
Rainbow Atelier, Mercedes, TX
Regional Organization of Oaxaca,
Los Angeles, CA
Revival Fire Ministries, Amarillo, TX
Rinconada Ventures Foundation,
San Francisco, CA
Robin Hood Society a Humanitarian
Foundation, Thousand Oaks, CA
Rosalie Silva Poway Thunder Baseball,
Poway, CA
Rural Georgia Childrens League, Inc.,
Buena Vista, GA
San Angeles Potbelly Pig Association,
Wilmington, DE
San Diego Blues Society, Inc.,
San Diego, CA
San Francisco Black Chamber Community
Alliance, San Francisco, CA
Save Orcas Bay, Orcas, WA
Save Our Brazilian Children,
Grosse Pointe, MI
Save Our Future, Shreveport, LA
S E A Housing Corporation,
Los Angeles, CA
Seattle International Youth Soccer Club,
Seattle, WA
Second Mount Zion Community
Development Corporation, Detroit, MI
Servicio Educacional Caribe, Inc.,
New York, NY
Seva International, Cerritos, CA
Sheriff Boosters Palmdale, Inc.,
Palmdale, CA
Shield of Faith Christian Center,
Pomona, CA
Shiloh Baptist Community Development
Corporation, Port Norris, NJ
Shortest Distance Foundation,
Burbank, CA
Sisu Foundation for the Arts, Inc.,
Honolulu, HI
Soar Business Institute, San Francisco, CA
Soaring Eagle Education Foundation,
Pasadena, CA
Soaring Solo, Issaquah, WA
Sociedad Benefica Hondurena,
Los Angeles, CA
South Central Nursing Homes of Orlando,
Inc., Orlando, FL
South Central World Championship
Entertainment & Association,
Los Angeles, CA
South Fulton Multi-Purpose Community
Center of Hope, Inc., Union City, GA
South Side OKC Boxing Club, Inc.,
Oklahoma City, OK
Southern California Chevra Kadisha, Inc.,
N. Hollywood, CA
Southern California Sanctuary for
Children, Monrovia, CA
Special Events for the Disabled, Inc.,
Findlay, OH
St. Gregorys A and M Hovespian
Child Care Center, Incorporated,
Pasadena, CA
Still People Limited, Oregon City, OR
Stitches Technology Sewn Products
Training Center, Inc., Los Angeles, CA
Straight to God Ministries, Inc.,
Corvallis, OR
Student Voices, Inc., Beaverton, OR
Sustainable North Bay, Novato, CA
Sustainable Policies Institute,
Los Angeles, CA
Swedish American Music Foundation,
Minneapolis, MN
T Rails Foundation, Seattle, WA
Tacoma Guild for Independent Film,
Tacoma, WA
Te Mano O Te Ra, Walnut Creek, CA
Teach Another Generation, Incorporated,
Oakland, CA
Teams to the Nations, Hudson, OH
Techiah Foundation, San Francisco, CA
Technology Math & Science for Our
Youth, Inc., Marietta, GA
Tee-Bros, Torrance, CA
Teenage Pregnancy Prevention, Inc.,
Los Angeles, CA
Teens Advocating Non Violence T A N,
Los Angeles, CA
Term Limits Leadership Foundation,
West Redding, CT
Texas Publishers Education and Art
Institute, Inc., Dallas, TX
Threatened Species Recovery Network,
Corte Madera, CA
Tibet Aid Foundation, Everett, WA
Tinaa Services Association, Juneau, AK
Tour of Unity, University Pl, WA
Transcend International, Inc., Waianae, HI
Triple HHH, Portland, OR
TSC Strategic Ministries, Inc.,
Bakersfield, CA
Ujima, Inc., San Bernardino, CA
United Hmong Development, Inc.,
Sacramento, CA
United Lebanese Christians, Palmdale, CA
United Parents for Runaway and
Homeless Youth, Eugene, OR
UnitedWithPride,Inc.,
San Francisco, CA
2004-19 I.R.B.899May 10, 2004

Universal Football Conference, Inc.,
Inglewood, CA
Up With Eagles, Altadena, CA
Uplift Foundation, Pasadena, CA
Urban Bankers and Financial Services
Alliance, Inc., Foster City, CA
Urban Focus Music Foundation,
Hollywood, CA
Urban Portland Interfaith Volunteer
Caregivers Program, Portland, OR
Utopa Pharmacutical Corp.,
Redwood City, CA
Valley Bulldogs, Woodland Hills, CA
Veritas Christian Research Ministries,
Applegate, CA
Victory Enterprises and Ministries,
Reseda, CA
Vietnamese Professional Womens Assoc.,
Portland, OR
Villemin Dresser Music Foundation,
Malibu, CA
Visual Arts Hall of Fame, Shreveport, LA
Voltaire Theatre, Chicago, IL
W. J. Burns Childrens Preschool,
Berkeley, CA
Walnut Creek Library Foundation,
Walnut Creek, CA
Wave Community Development
Corporation, Los Angeles, CA
WCFA Survivors, Inc.,
Baileys Harbor, WI
We Create Miracles, Durham, NC
Wee Care Play & Learn Daycare, Inc.,
Ogallala, NE
West Hollywood Retirement Assistance
Center, Los Angeles, CA
West Los Angeles Jeopardy Program,
Los Angeles, CA
Western Addition Drillettes and
Majorettes, Inc., San Francisco, CA
Western Instituer for Research
and Medical Education, Inc.,
Bakersfield, CA
Wheatfields, Inc., Columbus, IN
White City Youth Boxing Foundation,
White City, OR
Whitestone Foundation, Bothell, WA
Whittier Early Learning Center,
Whittier, CA
Wholistic Health & Healing Association,
Roseville, CA
Windward Friends for Adult Education,
Kailua, HI
Wings That Soar, Seattle, WA
WL-Central Asia Business Education
Partners, San Leandro, CA
W M F, Inc., Kamuela, HI
Women of the Cross, Pacoima, CA
World Blessing Foundation,
Claremont, CA
WTL Communications, Merlin, OR
Wyland Institute for Civic Education,
Del Mar, CA
Youth & Elderly Together Making a
Difference, Inc., Lakeland, FL
Youth for Understanding,
San Francisco, CA
Youth in Arts Achievement Program, Inc.,
Portland, OR
Youth-Musician Actor Singer and
Stage Performers Foundation, Inc.,
New Bedford, MA
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 Inter-
nalRevenueServicewillissuearulingor
determinationletterwiththerevisedclas-
sification as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
videdinsection1.509(a)–7oftheIncome
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.
May 10, 20049002004-19 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis 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 applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes 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 rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis 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 rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations
to show that the previous published rul-
ings 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 fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
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—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2004-19 I.R.B.iMay 10, 2004

Numerical Finding List
1
Bulletins 2004–1 through 2004–19
Announcements:
2004-1, 2004-1 I.R.B.254
2004-2, 2004-3 I.R.B.322
2004-3, 2004-2 I.R.B.294
2004-4, 2004-4 I.R.B.357
2004-5, 2004-4 I.R.B.362
2004-6, 2004-3 I.R.B.322
2004-7, 2004-4 I.R.B.365
2004-8, 2004-6 I.R.B.441
2004-9, 2004-6 I.R.B.441
2004-10, 2004-7 I.R.B.501
2004-11, 2004-10 I.R.B.581
2004-12, 2004-9 I.R.B.541
2004-13, 2004-9 I.R.B.543
2004-14, 2004-10 I.R.B.582
2004-15, 2004-11 I.R.B.612
2004-16, 2004-13 I.R.B.668
2004-17, 2004-12 I.R.B.635
2004-18, 2004-12 I.R.B.639
2004-19, 2004-13 I.R.B.668
2004-20, 2004-13 I.R.B.673
2004-21, 2004-13 I.R.B.673
2004-22, 2004-14 I.R.B.709
2004-23, 2004-13 I.R.B.673
2004-24, 2004-14 I.R.B.714
2004-25, 2004-15 I.R.B.737
2004-26, 2004-15 I.R.B.743
2004-27, 2004-14 I.R.B.714
2004-28, 2004-16 I.R.B.818
2004-29, 2004-15 I.R.B.772
2004-30, 2004-17 I.R.B.833
2004-31, 2004-18 I.R.B.854
2004-32, 2004-18 I.R.B.860
2004-33, 2004-18 I.R.B.862
2004-34, 2004-19 I.R.B.895
2004-35, 2004-17 I.R.B.839
2004-37, 2004-17 I.R.B.839
2004-38, 2004-18 I.R.B.878
2004-39, 2004-17 I.R.B.840
2004-40, 2004-17 I.R.B.840
2004-41, 2004-18 I.R.B.879
2004-42, 2004-17 I.R.B.840
Court Decisions:
2078, 2004-16 I.R.B.773
Notices:
2004-1, 2004-2 I.R.B.268
2004-2, 2004-2 I.R.B.269
2004-3, 2004-5 I.R.B.391
2004-4, 2004-2 I.R.B.273
2004-5, 2004-7 I.R.B.489
Notices— Continued:
2004-6, 2004-3 I.R.B.308
2004-7, 2004-3 I.R.B.310
2004-8, 2004-4 I.R.B.333
2004-9, 2004-4 I.R.B.334
2004-10, 2004-6 I.R.B.433
2004-11, 2004-6 I.R.B.434
2004-12, 2004-10 I.R.B.556
2004-13, 2004-12 I.R.B.631
2004-14, 2004-9 I.R.B.526
2004-15, 2004-9 I.R.B.526
2004-16, 2004-9 I.R.B.527
2004-17, 2004-11 I.R.B.605
2004-18, 2004-11 I.R.B.605
2004-19, 2004-11 I.R.B.606
2004-20, 2004-11 I.R.B.608
2004-21, 2004-11 I.R.B.609
2004-22, 2004-12 I.R.B.632
2004-23, 2004-15 I.R.B.725
2004-24, 2004-13 I.R.B.642
2004-25, 2004-15 I.R.B.727
2004-26, 2004-16 I.R.B.782
2004-27, 2004-16 I.R.B.782
2004-28, 2004-16 I.R.B.783
2004-29, 2004-17 I.R.B.828
2004-30, 2004-17 I.R.B.828
2004-31, 2004-17 I.R.B.830
2004-32, 2004-18 I.R.B.847
2004-33, 2004-18 I.R.B.847
2004-34, 2004-18 I.R.B.848
2004-35, 2004-19 I.R.B.889
2004-36, 2004-19 I.R.B.889
Proposed Regulations:
REG-106590-00, 2004-14 I.R.B.704
REG-116664-01, 2004-3 I.R.B.319
REG-129447-01, 2004-19 I.R.B.894
REG-106681-02, 2004-18 I.R.B.852
REG-122379-02, 2004-5 I.R.B.392
REG-139845-02, 2004-5 I.R.B.397
REG-165579-02, 2004-13 I.R.B.651
REG-166012-02, 2004-13 I.R.B.655
REG-115471-03, 2004-14 I.R.B.706
REG-121475-03, 2004-16 I.R.B.793
REG-126459-03, 2004-6 I.R.B.437
REG-126967-03, 2004-10 I.R.B.566
REG-128309-03, 2004-16 I.R.B.800
REG-149752-03, 2004-14 I.R.B.707
REG-153172-03, 2004-15 I.R.B.729
REG-156232-03, 2004-5 I.R.B.399
REG-156421-03, 2004-10 I.R.B.571
REG-167217-03, 2004-9 I.R.B.540
REG-167265-03, 2004-15 I.R.B.730
Revenue Procedures:
2004-1, 2004-1 I.R.B.1
Revenue Procedures— Continued:
2004-2, 2004-1 I.R.B.83
2004-3, 2004-1 I.R.B.114
2004-4, 2004-1 I.R.B.125
2004-5, 2004-1 I.R.B.167
2004-6, 2004-1 I.R.B.197
2004-7, 2004-1 I.R.B.237
2004-8, 2004-1 I.R.B.240
2004-9, 2004-2 I.R.B.275
2004-10, 2004-2 I.R.B.288
2004-11, 2004-3 I.R.B.311
2004-12, 2004-9 I.R.B.528
2004-13, 2004-4 I.R.B.335
2004-14, 2004-7 I.R.B.489
2004-15, 2004-7 I.R.B.490
2004-16, 2004-10 I.R.B.559
2004-17, 2004-10 I.R.B.562
2004-18, 2004-9 I.R.B.529
2004-19, 2004-10 I.R.B.563
2004-20, 2004-13 I.R.B.642
2004-21, 2004-14 I.R.B.702
2004-22, 2004-15 I.R.B.727
2004-23, 2004-16 I.R.B.785
2004-24, 2004-16 I.R.B.790
2004-25, 2004-16 I.R.B.791
2004-26, 2004-19 I.R.B.890
2004-27, 2004-17 I.R.B.831
Revenue Rulings:
2004-1, 2004-4 I.R.B.325
2004-2, 2004-2 I.R.B.265
2004-3, 2004-7 I.R.B.486
2004-4, 2004-6 I.R.B.414
2004-5, 2004-3 I.R.B.295
2004-6, 2004-4 I.R.B.328
2004-7, 2004-4 I.R.B.327
2004-8, 2004-10 I.R.B.544
2004-9, 2004-6 I.R.B.428
2004-10, 2004-7 I.R.B.484
2004-11, 2004-7 I.R.B.480
2004-12, 2004-7 I.R.B.478
2004-13, 2004-7 I.R.B.485
2004-14, 2004-8 I.R.B.511
2004-15, 2004-8 I.R.B.515
2004-16, 2004-8 I.R.B.503
2004-17, 2004-8 I.R.B.516
2004-18, 2004-8 I.R.B.509
2004-19, 2004-8 I.R.B.510
2004-20, 2004-10 I.R.B.546
2004-21, 2004-10 I.R.B.544
2004-22, 2004-10 I.R.B.553
2004-23, 2004-11 I.R.B.585
2004-24, 2004-10 I.R.B.550
2004-25, 2004-11 I.R.B.587
2004-26, 2004-11 I.R.B.598
2004-27, 2004-12 I.R.B.625
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2003–27 through 2003–52 is in Internal Revenue Bulletin
2003–52, dated December 29, 2003.
May 10, 2004ii2004-19 I.R.B.

Revenue Rulings— Continued:
2004-28, 2004-12 I.R.B.624
2004-29, 2004-12 I.R.B.627
2004-30, 2004-12 I.R.B.622
2004-31, 2004-12 I.R.B.617
2004-32, 2004-12 I.R.B.621
2004-33, 2004-12 I.R.B.628
2004-34, 2004-12 I.R.B.619
2004-35, 2004-13 I.R.B.640
2004-36, 2004-12 I.R.B.620
2004-37, 2004-11 I.R.B.583
2004-38, 2004-15 I.R.B.717
2004-39, 2004-14 I.R.B.700
2004-40, 2004-15 I.R.B.716
2004-41, 2004-18 I.R.B.845
2004-42, 2004-17 I.R.B.824
2004-43, 2004-18 I.R.B.842
2004-44, 2004-19 I.R.B.885
Tax Conventions:
2004-3, 2004-7 I.R.B.486
Treasury Decisions:
9099, 2004-2 I.R.B.255
9100, 2004-3 I.R.B.297
9101, 2004-5 I.R.B.376
9102, 2004-5 I.R.B.366
9103, 2004-3 I.R.B.306
9104, 2004-6 I.R.B.406
9105, 2004-6 I.R.B.419
9106, 2004-5 I.R.B.384
9107, 2004-7 I.R.B.447
9108, 2004-6 I.R.B.429
9109, 2004-8 I.R.B.519
9110, 2004-8 I.R.B.504
9111, 2004-8 I.R.B.518
9112, 2004-9 I.R.B.523
9113, 2004-9 I.R.B.524
9114, 2004-11 I.R.B.589
9115, 2004-14 I.R.B.680
9116, 2004-14 I.R.B.674
9117, 2004-15 I.R.B.721
9118, 2004-15 I.R.B.718
9119, 2004-17 I.R.B.825
9120, 2004-19 I.R.B.881
9122, 2004-19 I.R.B.886
2004-19 I.R.B.iiiMay 10, 2004

Findings List of Current Actions on
Previously Published Items
1
Bulletins 2004–1 through 2004–19
Announcements:
93-60
Obsoleted by
Rev. Proc. 2004-23, 2004-16 I.R.B.785
2003-56
Modified by
Ann. 2004-11, 2004-10 I.R.B.581
Notices:
98-5
Withdrawn by
Notice 2004-19, 2004-11 I.R.B.606
2000-4
Obsoleted by
T.D. 9115, 2004-14 I.R.B.680
2003-76
Modified by
Notice 2004-19, 2004-11 I.R.B.606
2004–2
Modified by
Notice 2004–25, 2004–15 I.R.B.727
Proposed Regulations:
REG-110896-98
Corrected by
Ann. 2004-14, 2004-10 I.R.B.582
REG-115037-00
Corrected by
Ann. 2004-7, 2004-4 I.R.B.365
REG-138499-02
Partially withdrawn by
REG-106590-00, 2004-14 I.R.B.704
REG-143321-02
Withdrawn by
REG-156232-03, 2004-5 I.R.B.399
REG-146893-02
Corrected by
Ann. 2004-7, 2004-4 I.R.B.365
REG-163974-02
Corrected by
Ann. 2004-13, 2004-9 I.R.B.543
REG-166012-02
Corrected by
Ann. 2004-40, 2004-17 I.R.B.840
Revenue Procedures:
85-35
Obsoleted by
Rev. Proc. 2004-26, 2004-19 I.R.B.890
87-19
Obsoleted in part by
Rev. Proc. 2004-18, 2004-9 I.R.B.529
93-15
Obsoleted in part by
Rev. Proc. 2004-18, 2004-9 I.R.B.529
94-41
Superseded by
Rev. Proc. 2004-15, 2004-7 I.R.B.490
94-55
Obsoleted in part by
Rev. Proc. 2004-18, 2004-9 I.R.B.529
98-16
Suspended by
Notice 2004-12, 2004-10 I.R.B.556
2000-38
Modified by
Rev. Proc. 2004-11, 2004-3 I.R.B.311
2000-50
Modified by
Rev. Proc. 2004-11, 2004-3 I.R.B.311
2001-10
Modified by
Ann. 2004-16, 2004-13 I.R.B.668
2001-23
Modified by
Ann. 2004-16, 2004-13 I.R.B.668
2002-9
Modified and amplified by
Rev. Rul. 2004-18, 2004-8 I.R.B.509
Rev. Proc. 2004-23, 2004-16 I.R.B.785
Modified by
Rev. Proc. 2004-11, 2004-3 I.R.B.311
Ann. 2004-16, 2004-13 I.R.B.668
2002-28
Modified by
Ann. 2004-16, 2004-13 I.R.B.668
2002-71
Superseded by
Rev. Proc. 2004-13, 2004-4 I.R.B.335
2003-1
Superseded by
Rev. Proc. 2004-1, 2004-1 I.R.B.1
2003-2
Superseded by
Rev. Proc. 2004-2, 2004-1 I.R.B.83
Revenue Procedures— Continued:
2003-3
As amplified by Rev. Proc. 2003-14, and as
modified by Rev. Proc. 2003-48 superseded by
Rev. Proc. 2004-3, 2004-1 I.R.B.114
2003-4
Superseded by
Rev. Proc. 2004-4, 2004-1 I.R.B.125
2003-5
Superseded by
Rev. Proc. 2004-5, 2004-1 I.R.B.167
2003-6
Superseded by
Rev. Proc. 2004-6, 2004-1 I.R.B.197
2003-7
Superseded by
Rev. Proc. 2004-7, 2004-1 I.R.B.237
2003-8
Superseded by
Rev. Proc. 2004-8, 2004-1 I.R.B.240
2003-23
Modified and superseded by
Rev. Proc. 2004-14, 2004-7 I.R.B.489
2003-26
Supplemented by
Rev. Proc. 2004-17, 2004-10 I.R.B.562
2003-29
Obsoleted, except as provided in section 5.02, by
Rev. Proc. 2004-24, 2004-16 I.R.B.790
2003-64
Modified by
Rev. Proc. 2004-21, 2004-14 I.R.B.702
2004-1
Corrected by
Ann. 2004-8, 2004-6 I.R.B.441
2004-4
Modified by
Rev. Proc. 2004-15, 2004-7 I.R.B.490
2004-5
Modified by
Rev. Proc. 2004-15, 2004-7 I.R.B.490
2004-6
Modified by
Rev. Proc. 2004-15, 2004-7 I.R.B.490
Revenue Rulings:
55-748
Modified and superseded by
Rev. Rul. 2004-20, 2004-10 I.R.B.546
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2003–27 through 2003–52 is in Internal Revenue Bulletin 2003–52, dated December 29,
2003.
May 10, 2004iv2004-19 I.R.B.

Revenue Rulings— Continued:
92-19
Supplemented in part by
Rev. Rul. 2004-14, 2004-8 I.R.B.511
94-38
Clarified by
Rev. Rul. 2004-18, 2004-8 I.R.B.509
98-25
Clarified by
Rev. Rul. 2004-18, 2004-8 I.R.B.509
2004-38
Modified by
Rev. Proc. 2004-22, 2004-15 I.R.B.727
Treasury Decisions:
9088
Corrected by
Ann. 2004-39, 2004-17 I.R.B.840
2004-19 I.R.B.vMay 10, 2004
*U.S. Government Printing Office: 2004—304–778/60134