Internal Revenue Bulletin 1997-42 (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.

INCOME TAX
Rev. Rul. 97–43, page 00.
LIFO; price indexes; department stores. The August
1997 Bureau of Labor Statistics price indexes are accepted
for use by department stores employing the retail inventory
and last-in, first-out inventory methods for valuing inventories
for tax years ended on, or with reference to, August 31,
1997.
T.D. 8731, page 00.
Final and temporary regulations under section 42 of the
Code relate to the application of the low-income housing tax
credit to certain federal rental assistance programs.
T.D. 8732, page 00.
Final regulations under section 42 of the Code provide rules
for determining the treatment of low-income housing units.
EXEMPT ORGANIZATIONS
REG–246250–96, page 00.
This proposed regulation relates to the public disclosure
requirements of section 6104(e) of the Code. A public hear-
ing will be held on February 4, 1998.
Announcement 97–104, page 00.
A list is provided of organizations now classified as private
foundations.
Announcement 97–105, page 00.
A list is provided of organizations that no longer qualify as
organizations for which contributions are deductible under
section 170 of the Code.
EXCISE TAX
Rev. Proc. 97–46, page 00.
Rural airports.This procedure contains a list of “rural air-
ports,” as defined in section 4261(e)(1)(B) of the Code, for
purposes of computing the tax on air transportation. The
procedure also provides guidance on how to calculate the
tax where at least one segment of multiple segment domes-
tic transportation does not begin or end at a rural airport.
ADMINISTRATIVE
Rev.Proc. 97–47, page 00.
This procedure sets forth the requirements of the Form 941
Electronic Filing (ELF) Program under which a taxpayer that
is a Reporting Agent may electronically file Form 941,
Employer’s Quarterly Federal Tax Return.
Internal Revenue
bulletin
Bulletin No. 1997–42
October 20, 1997
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Department of the Tr e a s u r y
Internal Revenue Service
Finding Lists begin on page 00.
Announcement of Disbarments and Suspensions begins on page 00.

Mission of the Service
The purpose of the Internal Revenue Service is to collect
the proper amount of tax revenue at the least cost; serv e
the public by continually improving the quality of our prod-
ucts and services; and perf o rm in a manner warr a n t i n g
the highest degree of public confidence in our integrity, eff i-
c i e n c y, and fairn e s s .
2
Statement of Principles
of Internal Revenue
Tax Administration
The function of the Internal Revenue Service is to adm i n i s-
ter the Internal Revenue Code. Tax policy for raising re v e n u e
is determined by Congre s s .
With this in mind, it is the duty of the Service to carry out that
policy by correctly applying the laws enacted by Congress;
to determine the reasonable meaning of various Code provi-
sions in light of the Congressional purpose in enacting them;
and to perform this work in a fair and impartial manner, with
neither a government nor a taxpayer point of view.
At the heart of administration is interpretation of the Code. It
is the responsibility of each person in the Service, charged
with the duty of interpreting the law, to try to find the true
meaning of the statutory provision and not to adopt a
strained construction in the belief that he or she is “protect-
ing the revenue.” The revenue is properly protected only
when we ascertain and apply the true meaning of the statute.
The Service also has the responsibility of applying and
administering the law in a reasonable, practical manner.
Issues should only be raised by examining officers when
they have merit, never arbitrarily or for trading purposes.
At the same time, the examining officer should never hesi-
tate to raise a meritorious issue. It is also important that
c a re be exercised not to raise an issue or to ask a court to
adopt a position inconsistent with an established Serv i c e
p o s i t i o n .
Administration should be both reasonable and vigorous. It
should be conducted with as little delay as possible and
with great courtesy and considerateness. It should never
t ry to overreach, and should be reasonable within the
bounds of law and sound administration. It should, howev-
e r, be vigorous in requiring compliance with law and it
should be relentless in its attack on unreal tax devices and
f r a u d .

The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly and may be obtained
f rom the Superintendent of Documents on a subscription
basis. Bulletin contents of a permanent nature are consoli-
dated semiannually into Cumulative Bulletins, which are sold
on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of in-
ternal management are not published; however, statements
of internal practices and pro c e d u res 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 off i c e s ,
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 Tre a s u ry Department Regulations,
but they may be used as precedents. Unpublished ru l i n g s
will not be relied on, used, or cited as precedents by Service
personnel in the disposition of other cases. In applying pub-
lished rulings and procedures, the effect of subsequent leg-
islation, regulations, court decisions, rulings, and pro c e-
dures must be considered, and Service personnel and oth-
ers concerned are cautioned against reaching the same con-
clusions in other cases unless the facts and circumstances
are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions, and Subpart B, Legislation and Related
Committee Reports.
P a rt III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross re f e rences to
these subjects are contained in the other Parts and Sub-
parts. Also included in this part are Bank Secrecy Act Admin-
istrative Rulings. Bank Secrecy Act Administrative Rulings
are issued by the Department of the Treasury’s Office of the
Assistant Secretary (Enforcement).
Part IV.—Items of General Interest.
With the exception of the Notice of Proposed Rulemaking
and the disbarment and suspension list included in this part,
none of these announcements are consolidated in the Cumu-
lative Bulletins.
The first Bulletin for each month includes a cumulative index
for the matters published during the preceding months.
These monthly indexes are cumulated on a quarterly and
semiannual basis, and are published in the first Bulletin of the
succeeding quarterly and semiannual period, re s p e c t i v e l y.
3
Introduction
The contents of this publication are not copyrighted and may be reprinted freely.Acitation 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.

October 20, 199741997–42 I.R.B.
Section 42.—Low-Income
Housing Credit
26 CFR 1.42–15: Available unit rule.
T.D. 8732
D E PA RTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Available Unit Rule
A G E N C Y: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
S U M M A RY: This document contains
final regulations concerning the treatment
of low-income housing units in a building
that are occupied by individuals whose in-
comes increase above 140 percent of the
income limitation applicable under sec-
tion 42(g)(1). These regulations aff e c t
owners of those buildings who claim the
low-income housing tax credit.
D ATES: These regulations are eff e c t i v e
September 26, 1997.
For dates of applicability of these regu-
lations, see §1.42–15(i).
FOR FURTHER INFORMATION CON-
TACT: David Selig, (202) 622-3040 (not
a toll-free number).
SUPPLEMENTARYINFORMATION:
Background
On May 30, 1996, the IRS published a
notice of proposed rulemaking in the Fed-
eral Register(PS–29–95 at 61 FR 27036
[1997–1 C.B. 862]) proposing amend-
ments to the Income Tax Regulations (26
CFR part 1) under section 42(g)(2)(D) of
the Internal Revenue Code. Ap u b l i c
hearing was scheduled for September 17,
1996, pursuant to a notice of public hear-
ing published simultaneously with the no-
tice of proposed rulemaking. However,
the IRS received no requests to speak at
the public hearing, and no public hearing
was held. Written comments responding
to the notice were received. After consid-
eration of all the comments, the proposed
regulations are adopted as revised by this
Treasury decision.
Explanation of Revisions and Summary
of Comments
The general rule in section 42(g)(2)-
(D)(i) provides that if the income of an
occupant of a low-income unit increases
above the income limitation applicable
under section 42(g)(1), the unit continues
to be treated as a low-income unit. This
general rule only applies if the occupant’s
income initially met the income limitation
and the unit continues to be rent-re-
stricted. Section 42(g)(2)(D)(ii), how-
ever, provides an exception to the general
rule in section 42(g)(2)(D)(i). Under this
exception, the unit ceases being treated as
a low-income unit when two conditions
occur.The first condition is that the occu-
p a n t ’s income increases above 140 per-
cent of the income limitation applicable
under section 42(g)(1), or above 170 per-
cent for a deep rent skewed project de-
scribed in section 142(d)(4)(B) (applica-
ble income limitation). When this occurs,
the unit becomes an over-income unit.
The second condition is that a new occu-
pant, whose income exceeds the applica-
ble income limitation (nonqualified resi-
dent), occupies any residential unit in the
building of a comparable or smaller size
(comparable unit).
Rules and Definitions
One commentator suggested that the
available unit rule under the proposed
regulations did not clearly indicate
whether the aggregate income of all occu-
pants of a unit is taken into account. Ac-
cordingly, the final regulations clarify that
an over-income unit means a low-income
unit in which the aggregate income of the
occupants of the unit increases above 140
percent of the applicable income limita-
tion under section 42(g)(1), or above 170
percent of the applicable income limita-
tion for deep rent skewed projects de-
scribed in section 142(d)(4)(B).
Commentators requested that the final
regulations specify whether a comparable
unit is measured by floor space or number
of bedrooms. The final regulations pro-
vide that a comparable unit must be mea-
sured by the same method the taxpayer
used to determine qualified basis for the
credit year in which the comparable unit
became available.
Some commentators stated that the pro-
vision in the proposed regulations that all
available comparable units (not just the
“next available” unit) must be rented to
qualified residents to continue treating an
over-income unit as a low-income unit is
inconsistent with the title of section
42(g)(2)(D)(ii). Although the title of that
provision uses the term next available
unit, the text of the rule provides that if
any available comparable unit is occupied
by a nonqualified resident, the over- i n-
come unit ceases to be treated as a low-in-
come unit. This means that if a building
has more than one over-income unit, rent-
ing any available comparable unit (a com-
parably sized or smaller unit) to a quali-
fied resident preserves the status of all
o v e r-income units as low-income units.
S i m i l a r l y, if any available comparable
unit is rented to a nonqualified resident,
all over-income units for which the avail-
able unit was a comparable unit lose their
status as low-income units; thus, compa-
rably sized or larger over-income units
would lose their status as low-income
units. In operation, this means that the
owner must continue to rent any available
comparable unit to a qualified resident
until the percentage of low-income units
in a building (excluding the over-income
units) is equal to the percentage of low-in-
come units on which the credit is based.
At that point, failure to maintain the over-
income units as low-income units has no
immediate significance. (However, the
failure to maintain an over-income unit as
a low-income unit may affect the owner’s
decision of whether or not to rent a partic-
ular available unit at market rate at a later
time.) Consequently, the final regulations
provide that all available comparable
units in the building, not only the next
available comparable unit, must be rented
to qualified residents to retain the low-in-
come status of the over-income units.
Application of Rules on a Building by
Building Basis
The proposed regulations provide that
in a project containing more than one
low-income building, the available unit
rule applies separately to each building.
Some commentators suggested that the
regulations should permit residents of
o v e r-income units to move to available
P a rt I. Rulings and Decisions Under the Internal Revenue Code of 1986

units in different buildings within the
same low-income housing project without
violating the available unit rule. How-
ever, because the requirements under sec-
tion 42 must be satisfied on a building by
building basis, the final regulations pro-
vide that the available unit rule only per-
mits a current resident to move to another
unit within the same building of a low-in-
come housing project.
In addition, in response to requests
from several commentators, the final reg-
ulations make clear that when a current
resident moves to a different unit within
the same low-income building, the units
exchange status. (See example 2 of
§1.42–15(g) of the proposed regulations
and §1.42–15(h) of the final regulations.)
Thus, the newly occupied unit adopts the
status of the vacated unit, and the vacated
unit assumes the status the newly occu-
pied unit had immediately prior to its oc-
cupancy by the qualifying residents.
Timing Issues
The methods of committing rental units
to tenants varies in different jurisdictions.
H o w e v e r, it is a common rental practice
to have some form of preliminary reserva-
tion for a unit prior to the date on which a
lease is signed or the unit is occupied.
Thus, several commentators have re-
quested clarification that once a unit is re-
served for a prospective tenant, it is no
longer treated as available for purposes of
the available unit rule. A c c o r d i n g l y, the
final regulations provide that a unit is not
available for purposes of the available
unit rule when the unit is no longer avail-
able for rent due to a reservation that is
binding under local law.
F i n a l l y, financing arrangements using
obligations that purport to be exempt fa-
cility bonds under section 142 must meet
the requirements of sections 103 and 141
through 150 for interest on the obligations
to be excluded from gross income under
section 103(a). The requirements under
section 142(d) may differ from those
under section 42. A c c o r d i n g l y, the final
regulations provide that the rules under
the final regulations are not intended as an
interpretation of the applicable rules
under section 142.
Special Analyses
It has been determined that this Tr e a-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations, and, because
these regulations do not impose on small
entities a collection of information re-
quirement, the Regulatory Flexibility Act
(5 U.S.C. chapter 6) does not apply.
Therefore, a Regulatory Flexibility
Analysis is not required. Pursuant to sec-
tion 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking
preceding these regulations was submit-
ted to the Chief Counsel for Advocacy of
the Small Business Administration for
comment on its impact on small business.
Drafting Information
The principal author of these regulations
is David Selig, Office of the A s s i s t a n t
Chief Counsel (Passthroughs and Special
Industries), IRS. However, other person-
nel from the IRS and Treasury Department
participated in their development.
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.42-15 is also issued under 26
U.S.C. 42(n); * * *
Par. 2. Section 1.42-15 is added to read
as follows:
§1.42–15 Available unit rule.
(a) D e f i n i t i o n s .The following defini-
tions apply to this section:
Applicable income limitationmeans the
limitation applicable under section
42(g)(1) or, for deep rent skewed projects
described in section 142(d)(4)(B), 40 per-
cent of area median gross income.
Available unit ru l emeans the rule in
section 42(g)(2)(D)(ii).
Comparable unitmeans a residential
unit in a low-income building that is com-
parably sized or smaller than an over-in-
come unit or, for deep rent skewed pro-
jects described in section 142(d)(4)(B),
any low-income unit. For purposes of de-
termining whether a residential unit is
comparably sized, a comparable unit must
be measured by the same method used to
determine qualified basis for the credit
year in which the comparable unit became
available.
Current residentmeans a person who is
living in the low-income building.
Low-income unitis defined by section
42(i)(3)(A).
Nonqualified residentmeans a new oc-
cupant or occupants whose aggregate in-
come exceeds the applicable income limi-
tation.
Over-income unitmeans a low-income
unit in which the aggregate income of the
occupants of the unit increases above 140
percent of the applicable income limita-
tion under section 42(g)(1), or above 170
percent of the applicable income limita-
tion for deep rent skewed projects de-
scribed in section 142(d)(4)(B).
Qualified re s i d e n tmeans an occupant
either whose aggregate income (com-
bined with the income of all other occu-
pants of the unit) does not exceed the ap-
plicable income limitation and who is
otherwise a low-income resident under
section 42, or who is a current resident.
(b) General section 42(g)(2)(D)(i) rule.
Except as provided in paragraph (c) of
this section, notwithstanding an increase
in the income of the occupants of a low-
income unit above the applicable income
limitation, if the income of the occupants
initially met the applicable income limita-
tion, and the unit continues to be rent-
restricted—
(1) The unit continues to be treated as a
low-income unit; and
(2) The unit continues to be included in
the numerator and the denominator of the
ratio used to determine whether a project
satisfies the applicable minimum set-
aside requirement of section 42(g)(1).
(c) E x c e p t i o n .Aunit ceases to be
treated as a low-income unit if it becomes
an over-income unit and a nonqualified
resident occupies any comparable unit
that is available or that subsequently be-
comes available in the same low-income
building. In other words, the owner of a
low-income building must rent to quali-
fied residents all comparable units that are
available or that subsequently become
1997–42 I.R.B.5October 20, 1997

available in the same building to continue
treating the over-income unit as a low-in-
come unit. Once the percentage of low-
income units in a building (excluding the
over-income units) equals the percentage
of low-income units on which the credit is
based, failure to maintain the over-income
units as low-income units has no immedi-
ate significance. The failure to maintain
the over-income units as low-income
units, however, may affect the decision of
whether or not to rent a particular avail-
able unit at market rate at a later time. A
unit is not available for purposes of the
available unit rule when the unit is no
longer available for rent due to contrac-
tual arrangements that are binding under
local law (for example, a unit is not avail-
able if it is subject to a preliminary reser-
vation that is binding on the owner under
local law prior to the date a lease is signed
or the unit is occupied).
(d) Effect of current resident moving
within building.When a current resident
moves to a different unit within the build-
ing, the newly occupied unit adopts the
status of the vacated unit. Thus, if a cur-
rent resident, whose income exceeds the
applicable income limitation, moves from
an over-income unit to a vacant unit in the
same building, the newly occupied unit is
treated as an over-income unit. The va-
cated unit assumes the status the newly
occupied unit had immediately before it
was occupied by the current resident.
(e) Available unit rule applies sepa-
rately to each building in a project.In a
project containing more than one low-in-
come building, the available unit rule ap-
plies separately to each building.
(f) Result of noncompliance with avail-
able unit rule.If any comparable unit that
is available or that subsequently becomes
available is rented to a nonqualified resi-
dent, all over-income units for which the
available unit was a comparable unit
within the same building lose their status
as low-income units; thus, comparably
sized or larger over-income units would
lose their status as low-income units.
(g) Relationship to tax-exempt bond
p ro v i s i o n s .Financing arrangements that
purport to be exempt-facility bonds under
section 142 must meet the requirements
of sections 103 and 141 through 150 for
interest on the obligations to be excluded
from gross income under section 103(a).
This section is not intended as an interpre-
tation under section 142.
(h) Examples.The following examples
illustrate this section:
Example 1.This example illustrates noncompli-
ance with the available unit rule in a low-income
building containing three over-income units. On
January 1, 1998, a qualified low-income housing
project, consisting of one building containing ten
identically sized residential units, received a hous-
ing credit dollar amount allocation from a state
housing credit agency for five low-income units.
By the close of 1998, the first year of the credit pe-
riod, the project satisfied the minimum set-aside re-
quirement of section 42(g)(1)(B). Units 1, 2, 3, 4,
and 5 were occupied by individuals whose incomes
did not exceed the income limitation applicable
under section 42(g)(1) and were otherwise low-in-
come residents under section 42. Units 6, 7, 8, and
9 were occupied by market-rate tenants. Unit 10
was vacant. To avoid recapture of credit, the pro-
ject owner must maintain five of the units as low-in-
come units. On November 1, 1999, the certificates
of annual income state that annual incomes of the
individuals in Units 1, 2, and 3 increased above 140
percent of the income limitation applicable under
section 42(g)(1), causing those units to become
o v e r-income units. On November 30, 1999, Units 8
and 9 became vacant. On December 1, 1999, the
project owner rented Units 8 and 9 to qualified resi-
dents who were not current residents at rates meet-
ing the rent restriction requirements of section
42(g)(2). On December 31, 1999, the project owner
rented Unit 10 to a market-rate tenant. Because
Unit 10, an available comparable unit, was leased to
a market-rate tenant, Units 1, 2, and 3 ceased to be
treated as low-income units. On that date, Units 4,
5, 8, and 9 were the only remaining low-income
units. Because the project owner did not maintain
five of the residential units as low-income units, the
qualified basis in the building is reduced, and credit
must be recaptured. If the project owner had rented
Unit 10 to a qualified resident who was not a cur-
rent resident, eight of the units would be low-in-
come units. At that time, Units 1, 2, and 3, the over-
income units, could be rented to market-rate tenants
because the building would still contain five low-in-
come units.
Example 2.This example illustrates the provi-
sions of paragraph (d) of this section. Al o w - i n-
come project consists of one six-floor building.
The residential units in the building are identically
sized. The building contains two over-income units
on the sixth floor and two vacant units on the first
f l o o r. The project owner, desiring to maintain the
o v e r-income units as low-income units, wants to
rent the available units to qualified residents. J, a
resident of one of the over-income units, wishes to
occupy a unit on the first floor. J’s income has re-
cently increased above the applicable income limi-
tation. The project owner permits J to move into
one of the units on the first floor. Despite J’s in-
come exceeding the applicable income limitation, J
is a qualified resident under the available unit rule
because J is a current resident of the building. T h e
unit newly occupied by J becomes an over- i n c o m e
unit under the available unit rule. The unit vacated
by J assumes the status the newly occupied unit had
immediately before J occupied the unit. The over-
income units in the building continue to be treated
as low-income units.
(i) Effective date. This section applies
to leases entered into or renewed on and
after September 26, 1997.
Michael P. Dolan,
Acting Commissioner of
Internal Revenue.
Approved August 28, 1997.
Donald C. Lubick,
Acting Assistant Secretary of
the Treasury.
(Filed by the Office of the Federal Register on Sep-
tember 25, 1997, 8:45 a.m., and published in the
issue of the Federal Register for September 26,
1997, 62 F.R. 50503)
26 CFR 1.42–16: Eligible basis reduced by federal
grants.
T.D. 8731
D E PA RTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
Section 42(d)(5) Federal Grants
A G E N C Y: Internal Revenue Service
(IRS), Treasury.
ACTION: Final and temporary regula-
tions.
S U M M A RY: This document contains
final regulations with respect to the low-
income housing tax credit relating to the
application of section 42(d)(5) to certain
rental assistance programs under section
42(g)(2)(B)(i). The regulations clarify
that certain types of federal rental assis-
tance payments do not result in a reduc-
tion in the eligible basis of a low-income
housing building. DATES: These regula-
tions are effective September 26, 1997.
For date of applicability for these regu-
lations, see §1.42–16(d).
FOR FURTHER INFORMATION CON-
TACT: Christopher J. Wilson, (202) 622-
3040 (not a toll-free call).
SUPPLEMENTARYINFORMATION:
Background
Temporary regulations (TD 8713
[1997–14 I.R.B. 4]) and a notice of pro-
posed rulemaking cross-referencing the
October 20, 199761997–42 I.R.B.

temporary regulations were published in
the Federal Registerfor January 27,
1997 (62 FR 3792, 3848 [REG–254394–
96 I.R.B. 14]). Those regulations provide
that certain federal rental assistance pay-
ments made to the owner of a building on
behalf of low-income tenants are not fed-
eral grants with respect to a building or its
operation that require a reduction in the
b u i l d i n g ’s eligible basis under section
42(d)(5) of the Internal Revenue Code
(Code). These payments include rental
assistance payments made under section 8
of the United States Housing Act of 1937
(Act) (42 U.S.C. 1437f), certain payments
made under section 9 of the Act, and pay-
ments made under such other programs or
methods of rental assistance as may be
designated in the Federal Registeror the
Internal Revenue Bulletin. The notice of
proposed rulemaking indicated that com-
ments would be considered on those areas
addressed in the temporary regulations.
Written comments responding to the no-
tice of proposed rulemaking were re-
ceived. There was no request for a public
hearing, and no public hearing was held.
After consideration of all the written com-
ments, the proposed regulations have
been adopted, without change, by this
Treasury decision.
Summary of Comments
One commenter suggested that the final
regulations provide additional guidance
for state agencies to use in determining
whether similar programs beyond those
described in the regulations should be
considered grants that cause a reduction
in a building’s eligible basis under section
42(d)(5) of the Code. The final regula-
tions do not adopt this suggestion. T h e
scope of this regulation is limited to spec-
ified rental assistance payments that are
not grants requiring a reduction in a build-
i n g ’s eligible basis and any additional
payments the Secretary may designate in
the future.
Another commenter suggested that
§1.42–16(c)(3) should be deleted if it is
intended to impose conditions beyond the
restrictions under section 9 of the Act, be-
cause the IRS is improperly infringing
upon the Department of Housing and
Urban Development’s (HUD) authority to
provide subsidies under section 9. T h e
final regulations do not adopt this sugges-
tion. Section 1.42–16 does not interpret
H U D ’s authority for paying subsidies
under section 9; it describes the extent to
which section 9 payments may be made
without a reduction in a building’s eligible
basis under section 42(d)(5) of the Code.
The conditions imposed on section 9 pay-
ments in §1.42–16(c)(3) serve to diff e r e n-
tiate section 9 assistance for operating ex-
penses that function in a manner similar to
rental assistance payments under section 8
of the Act from section 9 assistance that is
applied to uses more closely associated
with operational expenses requiring a re-
duction in a building’s eligible basis under
section 42(d)(5).
This commenter also suggested that if
§1.42–16(c)(3) were to be retained, it
should be clarified to provide that actual
operating costs be determined by HUD
and/or the appropriate public housing
a g e n c y. The commenter reasons that
HUD is already making this determination
in the context of deciding the proper
amount of assistance to make under sec-
tion 9 of the Act, and that precedent al-
ready exists for allowing HUD to make
certain interpretations relating to the sec-
tion 42 program. The final regulations do
not adopt this suggestion. The IRS and
Treasury believe they should retain the
ability to determine what costs are appro-
priately characterized as operating costs
that require a reduction in a building’s eli-
gible basis under section 42(d)(5) of the
C o d e .
Special Analyses
It has been determined that this Tr e a-
sury decision is not a significant regula-
tory action as defined in EO 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations and, because
these regulations do not impose on small
entities a collection of information re-
quirement, the Regulatory Flexibility Act
(5 U.S.C. chapter 6) does not apply.
Therefore, a Regulatory Flexibility
Analysis is not required. Pursuant to sec-
tion 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking
preceding these regulations was submit-
ted to the Chief Counsel for Advocacy of
the Small Business Administration for
comment on its impact on small business.
Drafting Information
The principal author of these regulations
is Christopher J. Wilson, Office of A s s i s t-
ant Chief Counsel (Passthroughs and Spe-
cial Industries). However, other personnel
from the IRS and Treasury Department
participated in their development.
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by removing the entry
for §1.42–16Tand adding an entry in nu-
merical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.42–16 also issued under 26
U.S.C. 42(n); * * *
P a r. 2. Section 1.42–16 is added to
read as follows:
§1.42–16 Eligible basis reduced by
federal grants.
(a) In general.If, during any taxable
year of the compliance period (described
in section 42(i)(1)), a grant is made with
respect to any building or the operation
thereof and any portion of the grant is
funded with federal funds (whether or not
includible in gross income), the eligible
basis of the building for the taxable year
and all succeeding taxable years is re-
duced by the portion of the grant that is so
funded.
(b) Grants do not include certain rental
assistance payments.Afederal rental as-
sistance payment made to a building
owner on behalf or in respect of a tenant
is not a grant made with respect to a
building or its operation if the payment is
made pursuant to—
(1) Section 8 of the United States
Housing Act of 1937;
(2) Aqualifying program of rental as-
sistance administered under section 9 of
the United States Housing Act of 1937; or
(3) Aprogram or method of rental as-
sistance as the Secretary may designate
by publication in the Federal Registeror
in the Internal Revenue Bulletin (see
§601.601(d)(2) of this chapter).
(c) Qualifying rental assistance pro-
1997–42 I.R.B.7October 20, 1997

g r a m .For purposes of paragraph (b)(2)
of this section, payments are made pur-
suant to a qualifying rental assistance pro-
gram administered under section 9 of the
United States Housing Act of 1937 to the
extent that the payments—
(1) Are made to a building owner pur-
suant to a contract with a public housing
authority with respect to units the owner
has agreed to maintain as public housing
units (PH-units) in the building;
(2) Are made with respect to units oc-
cupied by public housing tenants, pro-
vided that, for this purpose, units may be
considered occupied during periods of
short term vacancy (not to exceed 60
days); and
(3) Do not exceed the difference be-
tween the rents received from a building’s
PH-unit tenants and a pro rata portion of
the building’s actual operating costs that
are reasonably allocable to the PH-units
(based on square footage, number of bed-
rooms, or similar objective criteria), and
provided that, for this purpose, operating
costs do not include any development
costs of a building (including developer’s
fees) or the principal or interest of any
debt incurred with respect to any part of
the building.
(d) Effective date.This section is effec-
tive September 26, 1997.
§1.42–16T [Removed]
Par. 3. Section 1.42–16Tis removed.
Michael P. Dolan,
Acting Commissioner of
Internal Revenue.
Approved August 26, 1997.
Donald C. Lubick,
Acting Assistant Secretary of
the Treasury.
(Filed by the Office of the Federal Register on Sep-
tember 25, 1997, 8:45 a.m., and published in the
issue of the Federal Register for September 26,
1997, 62 F.R. 50502)
Section 472.—Last-in, First-out
Inventories
26 CFR 1.472-1: Last-in, first-out inventories.
LIFO; price indexes; depart m e n t
stores.The August 1997 Bureau of Labor
Statistics price indexes are accepted for
use by department stores employing the
retail inventory and last-in, first-out in-
ventory methods for valuing inventories
for tax years ended on, or with reference
to, August 31, 1997.
Rev. Rul. 97–43
The following Department Store Inven-
tory Price Indexes for August 1997 were
issued by the Bureau of Labor Statistics
on September 16, 1997. The indexes are
accepted by the Internal Revenue Service,
under § 1.472-1(k) of the Income Ta x
Regulations and Rev. Proc. 86-46, 1986-2
C.B. 739, for appropriate application to
inventories of department stores employ-
ing the retail inventory and last-in, first-
out inventory methods for tax years ended
on, or with reference to, August 31, 1997.
The Department Store Inventory
Price Indexes are prepared on a national
basis and include (a) 23 major groups of
departments, (b) three special combina-
tions of the major groups - soft goods,
durable goods, and miscellaneous goods,
and (c) a store total, which covers all de-
partments, including some not listed sepa-
r a t e l y, except for the following: candy,
foods, liquor, tobacco, and contract de-
partments.
October 20, 199781997–42 I.R.B.
BUREAU OF LABOR STATISTICS, DEPARTMENTSTORE
INVENTORYPRICE INDEXES BYDEPARTMENTGROUPS
(January 1941 = 100, unless otherwise noted)
Percent Change
GroupsAug.Aug.from Aug. 1996
19961997to Aug. 1997
1
1. Piece Goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .524.3509.3–2.9
2. Domestics and Draperies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .642.6652.81.6
3. Women’s and Children’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . .640.3644.10.6
4. Men’s Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .895.9895.60.0
5. Infants’Wear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .610.3621.21.8
6. Women’s Underwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .525.8548.84.4
7. Women’s Hosiery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .287.5301.64.9
8. Women’s and Girls’Accessories . . . . . . . . . . . . . . . . . . . . . . . .546.2539.7–1.2
9. Women’s Outerwear and Girls’Wear . . . . . . . . . . . . . . . . . . . . .381.2397.44.2
10. Men’s Clothing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .611.7621.21.6
11. Men’s Furnishings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .567.9584.83.0
12. Boys’Clothing and Furnishings . . . . . . . . . . . . . . . . . . . . . . . . .485.4492.21.4
13. Jewelry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1023.81008.6–1.5
14. Notions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .770.0793.83.1
15. Toilet Articles and Drugs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .885.1904.72.2
16. Furniture and Bedding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .669.2661.0–1.2
17. Floor Coverings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .588.7598.81.7
18. Housewares . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .810.6806.1–0.6
19. Major Appliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .244.8242.8–0.8
20. Radio and Television . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78.875.4–4.3

DRAFTING INFORMATION
The principal author of this revenue
ruling is Stan Michaels of the Office of
Assistant Chief Counsel (Income Tax and
Accounting). For further information re-
garding this revenue ruling, contact Mr.
Michaels on (202) 622-4970 (not a toll-
free call).
Section 3504.—Acts To Be
Performed by Agents
26 CFR 31.3504–1: Acts to be performed by agents.
Requirements of the Form 941 Electronic Filing
(ELF) Program are provided. See Rev. Proc. 97–47,
page 00.
Section 4261.—Imposition of
Tax
26 CFR 49.4261–1: Imposition of Tax; in general.
This revenue procedure provides a list of “rural
airports” as that term is defined in § 4261(e)(1)(B)
of the Internal Revenue Code, for purposes of com-
puting the tax on air transportation. The revenue
procedure also provides guidance on how to calcu-
late the tax where at least one segment of multiple
segment domestic transportation does not begin or
end at a rural airport. See Rev. Proc. 97–46, page 00.
Section 6011.—General
Requirements of Return,
Statement, or List
26 CFR 31.6011(a)–7: Execution of returns.
Requirements of the Form 941 Electronic Filing
(ELF) Program are provided. See Rev. Proc. 97–47,
page 00.
Section 6061.—Signing of
Returns and Other Documents
26 CFR 31.6061–1: Signing of returns.
Requirements of the Form 941 Electronic Filing
(ELF) Program are provided. See Rev. Proc. 97–47,
page 00.
26 CFR 301.6061–1: Signing of returns and other
documents.
Requirements of the Form 941 Electronic Filing
(ELF) Program are provided. See Rev. Proc. 97–47,
page 00.
Section 6071.—Time for Filing
Returns and Other Documents
26 CFR 31.6071(a)(1): Time for filing returns and
other documents.
Requirements of the Form 941 Electronic Filing
(ELF) Program are provided. See Rev. Proc. 97–47,
page 00.
1997–42 I.R.B.9October 20, 1997
BUREAU OF LABOR STATISTICS, DEPARTMENTSTORE
INVENTORYPRICE INDEXES BYDEPARTMENTGROUPS—Continued
(January 1941 = 100, unless otherwise noted)
Percent Change
GroupsAug.Aug.from Aug. 1996
19961997to Aug. 1997
1
21. Recreation and Education
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .112.1110.1–1.822.
Home Improvements
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125.9132.35.1
23. Auto Accessories
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107.2108.41.1
Groups 1 – 15: Soft Goods- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .582.9594.52.0
Groups 16 – 20: Durable Goods . . . . . . . . . . . . . . . . . . . . . . . . . . .469.2463.1–1.3
Groups 21 – 23: Misc. Goods
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .113.1112.6–0.4
Store Total
3
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .544.0549.31.0
1
Absence of a minus sign before percentage change in this column signifies price increase.
2
Indexes on a January 1986=100 base.
3
The store total index covers all departments, including some not listed separately, except for the following: candy, foods, liquor, to-
bacco, and contract departments.

CODELOCATION*AIRPORT NAMECOUNTRY
YACCATLAKE, ONTARIOCATLAKECANADA
YAGFORTFRANCES, ONTARIO FORTFRANCES MUNICANADA
YAMSAULTSTE. MARIE, ONTARIO SAULTSTE MARIECANADA
YAZTOFINO, B.C. TOFINOCANADA
YBCBAIE COMEAU, QUEBEC BAIE COMEAUCANADA
YBGSAGUENAY, QUEBEC BAGOTVILLECANADA
YBLCAMPBELLRIVER, B.C. CAMPBELLRIVERCANADA
YBRBRAN WN, MANITOBABRANDONCANADA
YBVBERENS RIVER MANITOBABERENS RIVERCANADA
YCFCORTES BAY, B.C. CORTES BAYCANADA
YCGCASTLEGAR/NELSON/TRAIL,B.C.CASTLEGARCANADA
YCLCHARLO, NEWBRUNSWICK CHARLOCANADA
YDNDAUPHIN, MANITOBADAUPHINCANADA
YDSDESOLATION SOUND, B.C.DESOLATION SOUNDCANADA
YELELLIOTLAKE, ONTARIOELLIOTLAKE MUNICANADA
YFCFREDERICTON, NEWBRUNSWICKFREDERICTONCANADA
YGEGORGE HARBOR, B.C.GORGE HARBORCANADA
YGKKINGSTON, ONTARIOKINGSTONCANADA
YGNGREENWAYSOUND, B.C.GREENWAYSOUNDCANADA
YGPGASPE, QUEBECGASPECANADA
YGQGERALDTON, ONTARIOGERALDTONCANADA
YHDDRYDEN, ONTARIODRYDEN MUNICIPALCANADA
YHHCAMPBELLRIVER, B.C.HARBOR SPBCANADA
YHNHORNEPAYNE, ONTARIOHORNEPAYNECANADA
October 20, 1997101997–42 I.R.B.
26 CFR 601.102: Classification of taxes col-
l ect ed b y th e In te rn al Re venu e Se rv i c e .
(Also Part I, §4261.)
Rev. Proc. 97–46
SECTION 1. PURPOSE
This revenue procedure provides a list
of “rural airports” as that term is defined
in § 4261(e)(1)(B) of the Internal Rev-
enue Code, for purposes of computing the
tax on air transportation. The revenue
procedure also provides guidance on how
to calculate the tax in certain circum-
stances.
SECTION 2. BACKGROUND
Section 1031 of the Taxpayer Relief
Act of 1997, Pub. L. No. 105–34, (the
Act) extends and modifies the tax im-
posed by § 4261 on amounts paid for the
transportation of persons by air.The new
rules relating to domestic air transporta-
tion apply to amounts paid after Septem-
ber 30, 1997, for transportation beginning
after that date. The Act generally pro-
vides a tax rate of 7.5 percent of the
amount paid for taxable transportation.
H o w e v e r, the rate is 9 percent for trans-
portation beginning after September 30,
1997, and before October 1, 1998, and 8
percent for transportation beginning after
September 30, 1998, and before October
1, 1999. The 7.5 percent rate is effective
for transportation beginning after Septem-
ber 30, 1999.
In addition, the Act subjects each do-
mestic segment of taxable transportation
to a segment tax. The initial tax rate is
$1.00 per domestic segment for segments
beginning after September 30, 1997, and
before October 1, 1998. The segment tax
increases to a fully phased in rate of $3.00
per domestic segment for segments begin-
ning during calendar year 2002. A f t e r
calendar year 2002, the $3.00 segment tax
will be indexed for inflation.
Transportation segments beginning or
ending at a rural airport are not subject to
the temporary 9 percent and 8 percent
rates and are exempt from the segment
tax. Thus, transportation segments begin-
ning or ending at a rural airport are sub-
ject only to a 7.5 percent rate on the
amount paid for the transportation seg-
ments.
An airport is a rural airport, as defined
in § 4261(e)(1)(B), for a calendar year if -
(i) fewer than 100,000 commercial pas-
sengers departed by air during the second
preceding calendar year from that airport,
and
(ii) the airport is either (A) not located
within 75 miles of another airport from
which 100,000 or more commercial pas-
sengers departed during the second pre-
ceding calendar year, or (B) receiving es-
sential air service subsidies as of August
5, 1997.
SECTION 3. SCOPE
This revenue procedure lists, based on
information supplied by the Office of A i r-
line Information at the Department of
Transportation, airports that will be treated
as rural airports for calendar year 1997. A
subsequent revenue procedure will provide
a similar list of rural airports for calendar
year 1998. For calendar year 1997, the list
in this revenue procedure may be relied
upon unless and until modified or super-
seded by a subsequent revenue procedure.
In addition, any airport not listed in this
revenue procedure is, nevertheless, a rural
airport if it meets the requirements of §
4261(e)(1)(B) set forth above.
SECTION 4. PROCEDURE
.01 The following airports will be
treated as rural airports for calendar year
1997:
Part III. Administrative, Procedural, and Miscellaneous

1997–42 I.R.B.11October 20, 1997
YIBATIKOKAN, ONTARIOATIKOKAN MUNICIPALCANADA
YIGBIG BAYMARINA, B.C.BIG BAYMARINACANADA
YKXKIRKLAND LAKE, ONTARIOKIRKLAND LAKECANADA
YLDCHAPLEAU, ONTARIOCHAPLEAUCANADA
YMLMURRAYBAY, QUEBECCHARLEVOIXCANADA
YMPPORTMCNEIL, B.C.PORTMCNEILCANADA
YNKNOOTKASOUND, B.C.NOOTKASOUNDCANADA
YPLPICKLE LAKE, ONTARIOPICKLE LAKECANADA
YQIYARMOUTH, NOVASCOTIAYARMOUTHCANADA
YQKKENORA, ONTARIOKENORACANADA
YQLLETHBRIDGE, ALBERTALETHBRIDGECANADA
YQQCOMOX, B.C.COMOXCANADA
YQVYORKTON, SASK. YORKTONCANADA
YRLRED LAKE, ONTARIORED LAKECANADA
YSBSUDBURY, ONTARIOSUDBURYCANADA
YSCSHERBROOKE, QUEBECSHEREBROOKECANADA
YSJST. JOHN, N.B.SAINTJOHNCANADA
YSPMARATHON, ONTARIOMARATHONCANADA
YSZSQUIRRELCOVE, B.C.SQUIRRELCOVECANADA
YTAPEMBROKE ONTARIOPEMBROKECANADA
YTJTERRACE BAY, ONTARIOTERRACE BAYCANADA
YTPTOFINO, B.C.TOFINO SPBCANADA
YTSTIMMINS, ONTARIOTIMMINSCANADA
YVBBONAVENTURE, QUEBEC BONAVENTURECANADA
YWLWILLIAMS LAKE, B.C. WILLIAMS LAKECANADA
YWRWHITE RIVER, ONTARIOWHITE RIVERCANADA
YXCCRANBROOK, B.C.CRANBROOKCANADA
YXHMEDICINE HAT, ALBERTAMEDICINE HATCANADA
YXLSIOUX LOOKOUT, ONTARIOSIOUX LOOKOUTCANADA
YXREARLTON, ONTARIOEARLTONCANADA
YXZWAWA, ONTARIOWAWACANADA
YYBNORTH BAY, ONTARIONORTH BAYCANADA
YYGCHARLOTTETOWN, P.E.I.CHARLOTTETOWNCANADA
YYUKAPUSKASING, ONTARIO KAPUSKASINGCANADA
YYYMONTJOLI, QUEBECMONTJOLICANADA
YZTPORTHARDY, B.C.PORTHARDYCANADA
YZVSEVEN ISLANDS, QUEBECSEPT-ILESCANADA
BHLBAHIAANGELESMEXICO
CVMCIUDAD VICTORIA, TAMAULIPASMEXICO
PDSPIEDRAS NEGRAS, COAHUILAMEXICO
SFHSAN FELIPEMEXICO
SNQSAN QUINTINMEXICO
ABIABILENE, TEXASABILENE MUNICIPALUNITED STATES
ABLAMBLER, ALASKAAMBLER RIVERUNITED STATES
ABRABERDEEN, SOUTH DAKOTAABERDEEN REGIONALUNITED STATES
ABYALBANY, GEORGIADOUGHERTYCOUNTYUNITED STATES
ACTWACO, TEXASWACO MUNICIPALUNITED STATES
ACVEUREKA/ARCATA, CALIFORNIAARCATAUNITED STATES
ADKADAK ISLAND, ALASKAADAK ISLAND NSUNITED STATES
ADQKODIAK, ALASKAMETROPOLITAN AREAUNITED STATES
AETALLAKAKET, ALASKAALLAKAKETUNITED STATES
AEXALEXANDRIA, LOUISIANAENGLAND AFBUNITED STATES
AFKANDREAFSKI, ALASKAANDREAFSKIUNITED STATES
AIAALLIANCE, NEBRASKAALLIANCE MUNICIPALUNITED STATES
AINWAINWRIGHT, ALASKAWAINWRIGHTUNITED STATES
AKBATKA, ALASKAATKAUNITED STATES
AKKAKHIOK, ALASKAAKHIOK SPBUNITED STATES
AKNKING SALMON, ALASKAKING SALMONUNITED STATES

AKOAKRON, COLORADOWASHINGTON COUNTYUNITED STATES
AKPANAKTUVIK PASS, ALASKAANAKTUVUK PASSUNITED STATES
ALEALPINE, TEXASALPINE CASPARIS MUNIUNITED STATES
ALMALAMOGORDO, NEWMEXICOALAMOGORDO MUNICIPALUNITED STATES
ALSALAMOSA, COLORADOALAMOSAMUNICIPALUNITED STATES
ALZALITAK, ALASKAALITAK SPBUNITED STATES
ANBANNISTON, ALABAMAANNISTON COUNTYUNITED STATES
ANIANIAK, ALASKAANIAKUNITED STATES
ANVANVIK, ALASKAANVIKUNITED STATES
AOOALTOONA, PENNSYLVANIABLAIR COUNTYUNITED STATES
AOSAMOOK BAY, ALASKAAMOOKUNITED STATES
APNALPENA, MICHIGANALPENACOUNTYREGLUNITED STATES
ARCARCTIC VILLAGE, ALASKAARCTIC VILLAGEUNITED STATES
ARTWATERTOWN, NEWYORKWATERTOWN MUNICIPALUNITED STATES
ATKATQASUK, ALASKAATQASUKUNITED STATES
ATYWATERTOWN, SOUTH DAKOTAWATERTOWN MUNICIPALUNITED STATES
AUGAUGUSTA, MAINEAUGUSTASTATEUNITED STATES
AUKALAKANUK, ALASKAALAKANUKUNITED STATES
BARBAKER ISLAND, ALASKABAKER AAFUNITED STATES
BCEBRYCE CANYON, UTAHBRYCE CANYON UNITED STATES
BFFSCOTTSBLUFF, NEBRASKASCOTTS BLUFF COUNTYUNITED STATES
BHBBAR HARBOR, MAINEBAR HARBORUNITED STATES
BICBIG CREEK, ALASKABIG CREEKUNITED STATES
BIGBIG DELTA, ALASKABIG DELTAINTERMEDUNITED STATES
BJIBEMIDJI, MINNESOTABEMIDJI-BELTRAMI CO.UNITED STATES
BKCBUCKLAND, ALASKABUCKLANDUNITED STATES
BKWBECKLEY, WESTVIRGINIARALEIGH COUNTYMEMLUNITED STATES
BKXBROOKINGS, SOUTH DAKOTAUNITED STATES
BLFPRINCETON/BLUEFIELD, WVMERCER COUNTYUNITED STATES
BNFBARANOF, ALASKAWARM SPRING BAYSPBUNITED STATES
BRDBRAINERD, MINNESOTACROWWING COUNTYUNITED STATES
BRWBARROW, ALASKABARROWWBASUNITED STATES
BSZBARTLETTS, ALASKABARTLETTSUNITED STATES
BTIBARTER ISLAND, ALASKABARTER ISLANDUNITED STATES
BTTBETTLES, ALASKABETTLESUNITED STATES
BVDBEAVER INLET, ALASKABEAVER INLETSEWPORTUNITED STATES
BWDBROWNWOOD, TEXASBROWNWOOD MUNICIPALUNITED STATES
BYABOUNDARY, ALASKABOUNDARYUNITED STATES
CBECUMBERLAND, MARYLANDWILEYFORDUNITED STATES
CDBCOLD BAY, ALASKACOLD BAYUNITED STATES
CDCCEDAR CITY, UTAHCEDAR CITYMUNICIPALUNITED STATES
CDLCANDLE, ALASKACANDLEUNITED STATES
CDRCHADRON, NEBRASKACHADRON MUNICIPALUNITED STATES
CDVCORDOVA, ALASKAMILE 13 FIELDUNITED STATES
CECCRESCENTCITY, CALIFORNIAJACK MC NAMARAFIELDUNITED STATES
CEMCENTRAL, ALASKACENTRALUNITED STATES
CEZCORTEZ, COLORADOMONTEZUMACOUNTYUNITED STATES
CFACOFFEE POINT, ALASKACOFFEE POINTUNITED STATES
CGICAPE GIRARDEAU, MISSOURICAPE GIRARDEAU MUNIUNITED STATES
CHPCIRCLE HOTSPRINGS, ALASKACIRCLE HOTSPRINGS UNITED STATES
CHUCHUATHBALUK, ALASKACHUATHBALUKUNITED STATES
CICCHICO, CALIFORNIACHICO MUNIUNITED STATES
CIKCHALKYITSIK, ALASKACHALKYITSIKUNITED STATES
CILCOUNCIL, ALASKAMELSING CREEKUNITED STATES
CIUSAULTSTE MARIE, MICHIGANCHIPPEWACOUNTYUNITED STATES
CJICRAFTON ISLAND, ALASKACRAFTON ISLAND SPBUNITED STATES
CKBCLARKSBURG, WESTVIRGINIABENEDUMUNITED STATES
CKDCROOKED CREEK, ALASKACROOKED CREEKUNITED STATES
October 20, 1997121997–42 I.R.B.

1997–42 I.R.B.13October 20, 1997
CKXCHICKEN, ALASKACHICKENUNITED STATES
CLPCLARKS POINT, ALASKACLARKS POINTUNITED STATES
CMXHANCOCK/HOUGHTON, MICHIGANHOUGHTON COUNTYMEMLUNITED STATES
CNMCARLSBAD, NEWMEXICOCAVERN CITYAIR TERMUNITED STATES
CNYMOAB, UTAHCANYONLANDS FIELDUNITED STATES
CODLOVELL/CODY, WYOMINGYELLOWSTONE REGIONALUNITED STATES
COUCOLUMBIA, MISSOURICOLUMBIAREGIONALUNITED STATES
CPRCASPER, WYOMING CASPERUNITED STATES
CSGCOLUMBUS, GEORGIAMETROPOLITAN AREAUNITED STATES
CVNCLOVIS, NEWMEXICO CLOVIS MUNICIPALUNITED STATES
CVSCLOVIS, NEWMEXICO CANNON AFBUNITED STATES
CXCCHITINA, ALASKACHITINAUNITED STATES
CXFCOLDFOOT, ALASKACOLDFOOTUNITED STATES
CYFCHEFORNAK, ALASKACRYSTALLAKEUNITED STATES
CYMCHATHAM, ALASKAUNITED STATES
CYSCHEYENNE, WYOMING CHEYENNE MUNICIPALUNITED STATES
CYTCAPE YAKATAGA, ALASKAYAKATAGAINTERMEDIATUNITED STATES
CZFCAPE ROMANZOF, ALASKACAPE ROMANZOF AFSUNITED STATES
CZNCHISANA, ALASKACHISANAFIELDUNITED STATES
DDCDODGE CITY, KANSASDODGE CITYMUNICIPALUNITED STATES
DGBDANGER BAY, ALASKADANGER BAYUNITED STATES
DHNDOTHAN, ALABAMADOTHANUNITED STATES
DIKDICKINSON, NORTH DAKOTADICKINSONUNITED STATES
DIODIOMEDE ISLAND, ALASKALITTLE DIOMEDEUNITED STATES
DLGDILLINGHAM, ALASKADILLINGHAM MUNIUNITED STATES
DRGDEERING, ALASKADEERINGUNITED STATES
DRODURANGO, COLORADOLAPLATAUNITED STATES
DRTDELRIO, TEXASDELRIO INTLUNITED STATES
DUJDU BOIS, PENNSYLVANIAJEFFERSON COUNTYUNITED STATES
DUTDUTCH HARBOR, ALASKAEMERGENCYFIELDUNITED STATES
DVLDEVILS LAKE, NORTH DAKOTADEVILS LAKE MUNIUNITED STATES
DYSABILENE, TEXAS DYESS AFBUNITED STATES
EAAEAGLE, ALASKAEAGLE MUNICIPALUNITED STATES
EARKEARNEY, NEBRASKAKEARNEYMUNIUNITED STATES
EATWENATCHEE, WASHINGTON PANGBORN FIELDUNITED STATES
EDAEDNABAY, ALASKAEDNABAYUNITED STATES
EENKEENE, NEWHAMPSHIREUNITED STATES
EGXEGEGIK, ALASKAEGEGIKUNITED STATES
EHMCAPE NEWENHAM, ALASKACAPE NEWENHAM AFSUNITED STATES
ELDELDORADO/CAMDEN, ARKANSASGOODWIN FIELDUNITED STATES
ELIELIM, ALASKAELIMUNITED STATES
ELYELY, NEVADAYELLANDUNITED STATES
EMKEMMONAK, ALASKAEMMONAKUNITED STATES
ENVWENDOVER, UTAH WENDOVERUNITED STATES
ESCESCANABA, MICHIGANDELTACOUNTYUNITED STATES
ESFALEXANDRIA, LOUISIANAESLER FIELDUNITED STATES
FFMFERGUS FALLS, MINNESOTAFERGUS FALLS MUNIUNITED STATES
FKLOILCITY/FRANKLIN, PENNSYLVANIAUNITED STATES
FLTFLAT, ALASKAFLATUNITED STATES
FMCFIVE MILE CAMP, ALASKAFIVE MILEUNITED STATES
FMNFARMINGTON, NEWMEXICO FARMINGTON MUNICIPALUNITED STATES
FNRFUNTER BAY, ALASKAUNITED STATES
FODFT. DODGE, IOWAFORTDODGE MUNICIPALUNITED STATES
FOETOPEKA, KANSAS FORBES AFBUNITED STATES
FRMFAIRMONT, MINNESOTAFAIRMONTMUNICIPALUNITED STATES
FYUFT. YUKON, ALASKAFORTYUKON MUNICIPALUNITED STATES
GALGALENA, ALASKAGALENAUNITED STATES
GAMGAMBELL, ALASKAGAMBELLMUNICIPALUNITED STATES

GBDGREATBEND, KANSASGREATBEND MUNICIPALUNITED STATES
GBHGALBRAITH LAKE, ALASKAGALBRAITH LAKEUNITED STATES
GCCGILLETTE, WYOMINGCAMPBELLCOUNTYUNITED STATES
GCKGARDEN CITY, KANSASGARDEN CITYMUNIUNITED STATES
GDVGLENDIVE, MONTANADAWSON COMMUNITYUNITED STATES
GFBTOGIAK FISH, ALASKATOGIAK FISHUNITED STATES
GGWGLASGOW, MONTANAGLASGOWINTLUNITED STATES
GKNGULKANA, ALASKAGULKANAUNITED STATES
GLDGOODLAND, KANSAS RENNER FIELDUNITED STATES
GLHGREENVILLE, MISSISSIPPIGREENVILLE MUNICIPALUNITED STATES
GLVGOLOVIN, ALASKAGOLOVINUNITED STATES
GMTGRANITE MOUNTAIN, ALASKAGRANITE MOUNTAINUNITED STATES
GNUGOODNEWS BAY, ALASKAGOODNEWS BAYUNITED STATES
GRIGRAND ISLAND, NEBRASKAGRAND ISLAND AIR PKUNITED STATES
GSTGUSTAVUS, ALASKAGUSTAVUSUNITED STATES
GTRCOLUMBUS, MISSISSIPPIGOLDEN TRIANGLE REGLUNITED STATES
GUPGALLUP, NEWMEXICOSENATOR CLARKE FIELDUNITED STATES
HAYHAYCOCK, ALASKAHAYCOCKUNITED STATES
HBHHOBARTBAY, ALASKAHOBARTBAYUNITED STATES
HCRHOLYCROSS, ALASKAHOLYCROSSUNITED STATES
HDNSTEAMBOATSPRINGS, COLORADOYAMPAVALLEYUNITED STATES
HGZHOGATZA, ALASKAHOGATZAUNITED STATES
HIILAKE HAVASU CITY, ARIZONALAKE HAVASU CTYMUNIUNITED STATES
HKBHEALYLAKE, ALASKAHEALYLAKEUNITED STATES
HOBHOBBS, NEWMEXICO LEACOUNTYUNITED STATES
HONHURON, SOUTH DAKOTAWWHOWES MUNICIPALUNITED STATES
HOTHOTSPRINGS, ARKANSASUNITED STATES
HPBHOOPER BAY, ALASKAHOOPER BAYUNITED STATES
HROHARRISON, ARKANSASBOONE COUNTYUNITED STATES
HSIHASTINGS, NEBRASKAHASTINGS MUNICIPALUNITED STATES
HSLHUSLIA, ALASKAHUSLIAUNITED STATES
HUSHUGHES, ALASKAHUGHES MUNICIPALUNITED STATES
HVRHAVRE, MONTANAHAVRE CITY-COUNTYUNITED STATES
HYSHAYS, KANSASHAYS MUNICIPALUNITED STATES
IANKIANA, ALASKABOB BARKER MEMORIALUNITED STATES
ICYICYBAY, ALASKAICYBAYUNITED STATES
IGGIGIUGIG, ALASKAIGIUGIGUNITED STATES
IGMKINGMAN, ARIZONAKINGMAN MUNICIPALUNITED STATES
IKONIKOLSKI, ALASKANIKOLSKI AFSUNITED STATES
ILIILIAMNA, ALASKAILIAMNAUNITED STATES
IMTIRON MOUNTAIN/KINGSFD, MICHIGANFORDUNITED STATES
INLINTERNATIONALFALLS, MINNESOTAFALLS INTERNATIONALUNITED STATES
IPLELCENTRO, CALIFORNIAIMPERIALCOUNTYUNITED STATES
IRCCIRCLE, ALASKACIRCLE CITYUNITED STATES
IRKKIRKSVILLE, MISSOURIKIRKSVILLE MUNICIPALUNITED STATES
ISLISABELPASS, ALASKAISABELPASSUNITED STATES
ISNWILLISTON, NORTH DAKOTASLOULIN FIELD INTLUNITED STATES
IWDIRONWOOD, MICHIGANGOGEBIC COUNTYUNITED STATES
JBRJONESBORO, ARKANSASUNITED STATES
JMSJAMESTOWN, NORTH DAKOTAJAMESTOWN MUNICIPALUNITED STATES
KAEKAKE, ALASKAKAKEUNITED STATES
KALKALTAG, ALASKAKALTAGUNITED STATES
KBCBIRCH CREEK, ALASKABIRCH CREEKUNITED STATES
KCGCHIGNIK FISHERIES, ALASKACHIGNIK FISHERIESUNITED STATES
KCLCHIGNIK LAGOON, ALASKACHIGNIK LAGOONUNITED STATES
KCNCHERNOFSKI, ALASKACHERNOFSKI HARBORUNITED STATES
KCQCHIGNIK, ALASKACHIGNIKUNITED STATES
KEKEKWOK, ALASKAEKWOKUNITED STATES
October 20, 1997141997–42 I.R.B.

1997–42 I.R.B.15October 20, 1997
KFPFALSE PASS, ALASKAFALSE PASSUNITED STATES
KGKKOLIGANEK, ALASKANEWKOLIGANEKUNITED STATES
KGXGRAYLING, ALASKAGRAYLINGUNITED STATES
KIBIVANOFF BAY, ALASKAIVANOF BAYSPBUNITED STATES
KKAKOYUK, ALASKAKOYUKUNITED STATES
KKBKITOI BAY, ALASKAKITOI BAYSPBUNITED STATES
KKUEKUK, ALASKAEKUKUNITED STATES
KLLLEVELOCK, ALASKALEVELOCKUNITED STATES
KLNLARSEN BAY, ALASKALARSEN BAYSPBUNITED STATES
KMOMANOKOTAK, ALASKAMANOKOTAK SPBUNITED STATES
KMYMOSER BAY, ALASKAMOSER BAYUNITED STATES
KNKKAKHONAK, ALASKAKAKHONAKUNITED STATES
KNWNEWSTUYAHOK, ALASKANEWSTUYAHOKUNITED STATES
KOTKOTLIK, ALASKAKOTLIKUNITED STATES
KOYOLGABAY, ALASKAOLGABAYSPBUNITED STATES
KOZOUZINKIE, ALASKAOUZINKIE SPBUNITED STATES
KPBPOINTBAKER, ALASKAPOINTBAKER SPBUNITED STATES
KPCPORTCLARENCE, ALASKAPORTCLARENCE CGSUNITED STATES
KPKPARKS, ALASKAPARKS SPBUNITED STATES
KPNKIPNUK, ALASKAKIPNUK SPBUNITED STATES
KPRPORTWILLIAMS, ALASKAPORTWILLIAMS SPBUNITED STATES
KPVPERRYVILLE, ALASKAPERRYVILLE SPBUNITED STATES
KPYPORTBAILEY, ALASKAPORTBAILEYSPBUNITED STATES
KQAAKUTAN, ALASKAAKUTANUNITED STATES
KSMST. MARY’S, ALASKASAINTMARYSUNITED STATES
KTSBREVIG MISSION, ALASKABREVIG MISSIONUNITED STATES
KVCKING COVE, ALASKAKING COVEUNITED STATES
KVLKIVALINA, ALASKAKIVALINAUNITED STATES
KWKKWIGILLINGOK, ALASKAKWIGILLINGOKUNITED STATES
KWPWESTPOINT, ALASKAWESTPOINTVILLAGE UNITED STATES
KYKKARLUK, ALASKAKARLUKUNITED STATES
KYUKOYUKUK, ALASKAKOYUKUKUNITED STATES
KZBZACHAR BAY, ALASKAZACHAR BAYSPBUNITED STATES
LAALAMAR, COLORADO LAMAR FIELDUNITED STATES
LARLARAMIE, WYOMINGGENERALBREES FIELD UNITED STATES
LBFNORTH PLATTE, NEBRASKALEE BIRD FIELDUNITED STATES
LBLLIBERAL, KANSASLIBERALMUNICIPALUNITED STATES
LMAMINCHUMINA, ALASKAMINCHUMINAUNITED STATES
LPWLITTLE PORTWALTER, ALASKALITTLE PORTWALTERUNITED STATES
LRDLAREDO, TEXASLAREDO INTLUNITED STATES
LURCAPE LISBURNE, ALASKACAPE LISBURNE AFSUNITED STATES
LVDLIME VILLAGE, ALASKALIME VILLAGEUNITED STATES
LWSLEWISTON, IDAHO NEZ PERCE COUNTYUNITED STATES
LWTLEWISTOWN, MONTANALEWISTOWN MUNICIPALUNITED STATES
MBLMANISTEE, MICHIGANUNITED STATES
MCEMERCED, CALIFORNIAMERCED MUNICIPALUNITED STATES
MCGMCGRATH, ALASKAMCGRATHUNITED STATES
MCKMC COOK, NEBRASKAMC COOK MUNICIPALUNITED STATES
MCNMACON, GEORGIALEWIS B WILSONUNITED STATES
MDHCARBONDALE, ILLINOISSOUTHERN ILLINOISUNITED STATES
MEIMERIDIAN, MISSISSIPPIKEYFIELDUNITED STATES
MHKMANHATTAN/JCT.CTY/FT.RILEY, KANSASMANHATTAN MUNICIPALUNITED STATES
MHMMINCHUMINA, ALASKAMINCHUMINAUNITED STATES
MKTMANKATO, MINNESOTAUNITED STATES
MLCMC ALESTER, OKLAHOMAMC ALESTER MUNICIPALUNITED STATES
MLSMILES CITY, MONTANAMILES CITYMUNICIPALUNITED STATES
MLYMANLEYHOTSPRINGS, ALASKAMANLEYHOTSPRINGS UNITED STATES
MMHMAMMOTH LAKES, CALIFORNIAMAMMOTH LAKESUNITED STATES

MOTMINOT, NORTH DAKOTAMINOTINTERNATIONALUNITED STATES
MOUMOUNTAIN VILLAGE, ALASKAMOUNTAIN VILLAGEUNITED STATES
MQTMARQUETTE, MICHIGANMARQUETTE COUNTYUNITED STATES
MSSMASSENA, NEWYORKRICHARDS FIELDUNITED STATES
MTOMATTOON, ILLINOISUNITED STATES
MUEKAMUELA, HAWAIIUNITED STATES
MVMKAYENTA, ARIZONAMONUMENTVALLEYUNITED STATES
MVNMT. VERNON, ILLINOISUNITED STATES
MWAMARION, ILLINOISWILLIAMSON COUNTYUNITED STATES
MWHEPHRATA/MOSES LAKE, WASHINGTONUNITED STATES
MXYMCCARTHY, ALASKAMCCARTHYUNITED STATES
MYKMAYCREEK, ALASKAUNITED STATES
MYUMEKORYUK, ALASKAELLIS FIELDUNITED STATES
NIBNIKOLAI, ALASKANIKOLAIUNITED STATES
NLGNELSON LAGOON, ALASKANELSON LAGOONUNITED STATES
NMENIGHTMUTE, ALASKANIGHTMUTEUNITED STATES
NNKNAKNEK, ALASKANAKNEKUNITED STATES
NNLNONDALTON, ALASKANONDALTONUNITED STATES
NUINUIQSUT, ALASKANUIQSUTUNITED STATES
NULNULATO, ALASKANULATOUNITED STATES
OBUKOBUK, ALASKAKOBUKUNITED STATES
OFKNORFOLK, NEBRASKAUNITED STATES
OGSOGDENSBURG, NEWYORKOGDENSBURG MUNICIPALUNITED STATES
OLFWOLF POINT, MONTANAWOLF POINTINTLUNITED STATES
OLHOLD HARBOR, ALASKAOLD HARBOR SPBUNITED STATES
OMENOME, ALASKANOMEUNITED STATES
OOKTOKSOOK, ALASKATOKSOOK BAYUNITED STATES
ORHWORCESTER, MASSACHUSETTSWORCESTER MUNICIPALUNITED STATES
ORIPORTLIONS, ALASKAPORTLIONS SPBUNITED STATES
ORTNORTHWAY, ALASKANORTHWAYUNITED STATES
ORVNOORVIK, ALASKAROBERTCURTIS MEMLUNITED STATES
OTMOTTUMWA, IOWAUNITED STATES
OTZKOTZEBUE, ALASKARALPH WIEN MEMORIALUNITED STATES
PAHPADUCAH, KENTUCKYBARKLEYREGIONALUNITED STATES
PCAPORTAGE CREEK, ALASKAPORTAGE CREEKUNITED STATES
PCEPAINTER CREEK, ALASKAPAINTER CREEKUNITED STATES
PDBPEDRO BAY, ALASKAPEDRO BAYUNITED STATES
PFAPAF WARREN, ALASKAPAF WARRENUNITED STATES
PGAPAGE, ARIZONAPAGEUNITED STATES
PGVGREENVILLE, NORTH CAROLINAPITT-GREENVILLEUNITED STATES
PHOPOINTHOPE, ALASKAPOINTHOPE MUNICIPALUNITED STATES
PIPPILOTPOINT, ALASKAPILOTPOINTUNITED STATES
PIRPIERRE, SOUTH DAKOTAPIERRE MUNICIPALUNITED STATES
PIZPOINTLAY, ALASKAPOINTLAYDEWSTNUNITED STATES
PMLPORTMOLLER, ALASKAPORTMOLLER AFSUNITED STATES
PNCPONCACITY, OKLAHOMAPONCACITYMUNICIPALUNITED STATES
PNFPETERSON’S POINT, ALASKAPETERSON’S POINTUNITED STATES
PPCPROSPECTCREEK, ALASKAPROSPECTCREEKUNITED STATES
PPVPORTPROTECTION, ALASKAPORTPROTECTIONUNITED STATES
PQIPRESQUE ISLE, MAINEPRESQUE ISLE MUNIUNITED STATES
PQSPILOTSTATION, ALASKAPILOTSTATIONUNITED STATES
PRCPRESCOTT, ARIZONAPRESCOTTMUNUNITED STATES
PSGPETERSBURG, ALASKAPETERSBURG MUNICIPALUNITED STATES
PTAPORTALSWORTH, ALASKAPORTALSWORTHUNITED STATES
PTDPORTALEXANDER, ALASKAPORTALEXANDERUNITED STATES
PTHPORTHEIDEN, ALASKAPORTHEIDENUNITED STATES
PTLPORTARMSTRONG, ALASKAPORTARMSTRONGUNITED STATES
PTUPLATINUM, ALASKAPLATINUMUNITED STATES
October 20, 1997161997–42 I.R.B.

RBHBROOKS LODGE, ALASKABROOKS LODGEUNITED STATES
RBYRUBY, ALASKARUBYUNITED STATES
RDBRED DOG, ALASKARED DOG MINEUNITED STATES
RDDREDDING, CALIFORNIAREDDING MUNICIPALUNITED STATES
RDMREDMOND, OREGONROBERTS FIELDUNITED STATES
RDVRED DEVIL, ALASKARED DEVILUNITED STATES
RIWRIVERTON, WYOMINGRIVERTON MUNICIPALUNITED STATES
RKDROCKLAND, MAINEKNOX COUNTYREGIONALUNITED STATES
RKSROCK SPRINGS, WYOMINGSWEETWATER COUNTYUNITED STATES
RMPRAMPART, ALASKARAMPARTUNITED STATES
ROWROSWELL, NEWMEXICOROSWELLINDUSTRIALUNITED STATES
RQINIXON FORK MINE, ALASKANIXON FORK MINEUNITED STATES
RTNRATON, NEWMEXICOCREWS FIELDUNITED STATES
RUIRUIDOSO, NEWMEXICORUIDOSO MUNICIPALUNITED STATES
RUTRUTLAND, VERMONTRUTLAND STATEUNITED STATES
RWBROWAN BAY, ALASKAROWAN BAYUNITED STATES
SBYSALISBURY, MARYLANDWICOMICO COUNTYUNITED STATES
SCCDEADHORSE, ALASKADEADHORSEUNITED STATES
SCMSCAMMON BAY, ALASKASCAMMON BAYSPBUNITED STATES
SDPSAND POINT, ALASKASAND POINTMUNICIPALUNITED STATES
SDXSEDONA, ARIZONASEDONAUNITED STATES
SDYSIDNEY, MONTANARICHARD MUNICIPALUNITED STATES
SGUST. GEORGE, UTAHST. GEORGE MUNICIPALUNITED STATES
SGYSKAGWAY, ALASKASKAGWAYMUNICIPALUNITED STATES
SHDSTAUNTON, VIRGINIASHENANDOAH VALLEYUNITED STATES
SHGSHUNGNAK, ALASKASHUNGNAKUNITED STATES
SHHSHISHMAREF, ALASKASHISHMAREFUNITED STATES
SHRSHERIDAN, WYOMINGSHERIDAN COUNTYUNITED STATES
SHXSHAGELUK, ALASKASHAGELUKUNITED STATES
SITSITKA, ALASKASITKAUNITED STATES
SJTSAN ANGELO, TEXASMATHIS FIELDUNITED STATES
SKKSHAKTOOLIK, ALASKASHAKTOOLIKUNITED STATES
SLNSALINA, KANSASSALINAMUNICIPALUNITED STATES
SLQSLEETMUTE, ALASKASLEETMUTEUNITED STATES
SMKST. MICHAEL, ALASKAST. MICHAELUNITED STATES
SMUSHEEPMOUNTAIN, ALASKASHEEPMOUNTAINUNITED STATES
SNPST. PAULISLAND, ALASKASAINTPAULISLANDUNITED STATES
SOWSHOWLOW, ARIZONASHOWLOWUNITED STATES
SPSWICHITAFALLS, TEXASSHEPPARD AFBUNITED STATES
SPWSPENCER, IOWASPENCER MUNICIPALUNITED STATES
SQISTERLING/ROCK FALLS, ILLINOISUNITED STATES
SRVSTONYRIVER, ALASKASTONYRIVER SKYPARK UNITED STATES
STGST. GEORGE, ALASKAST. GEORGE ISLANDUNITED STATES
SUNSUN VALLEY, IDAHOFRIEDMAN MEMORIALUNITED STATES
SVASAVOONGA, ALASKASAVOONGAUNITED STATES
SVCSILVER CITY, NEWMEXICOGRANTCOUNTYUNITED STATES
SVSSTEVENS VILLAGE, ALASKASTEVENS VILLAGEUNITED STATES
SVWSPARREVOHN, ALASKASPARREVOHN AFSUNITED STATES
SWDSEWARD, ALASKAUNITED STATES
SXPSHELDON POINT, ALASKASHELDON POINTSPBUNITED STATES
SYASHEMYAISLAND, ALASKASHEMYAAFBUNITED STATES
SYBSEALBAY, ALASKASEALBAYUNITED STATES
SYDSIDNEY, MONTANAUNITED STATES
TALTANANA, ALASKARALPH M CALHOUN MEMLUNITED STATES
TBNFT. LEONARD WOOD, MISSOURIFORNEYAAFUNITED STATES
TCLTUSCALOOSA, ALABAMAVAN DE GRAAFUNITED STATES
TCTTAKOTNA, ALASKATAKOTNAUNITED STATES
TEHTETLIN, ALASKATETLINUNITED STATES
1997–42 I.R.B.17October 20, 1997

TEXTELLURIDE, COLORADOTELLURIDE REGIONALUNITED STATES
TKITOKEEN, ALASKATOKEENUNITED STATES
TKJTOK, ALASKATOKUNITED STATES
TLATELLER, ALASKATELLERUNITED STATES
TLFTELIDA, ALASKATELIDAUNITED STATES
TLJTATALINE, ALASKATATALINAAFSUNITED STATES
TNCTIN CITY, ALASKATIN CITYAFSUNITED STATES
TNKTUNUNAK, ALASKATUNUNAKUNITED STATES
TOGTOGIAK, ALASKATOGIAK VILLAGEUNITED STATES
TUPTUPELO, MISSISSIPPIC D LEMONS MUNICIPALUNITED STATES
TVFTHIEF RIVER FALLS, MINNESOTATHIEF RIVER FALLSUNITED STATES
TWATWIN HILLS, ALASKATWIN HILLSUNITED STATES
TWFTWIN FALLS, IDAHOCITYCOUNTYUNITED STATES
TYRTYLER, TEXASPOUNDS FIELDUNITED STATES
UGBPILOTPOINT, ALASKAUGASHIK BAYUNITED STATES
UGIUGANIK, ALASKAUGANIKUNITED STATES
UINQUINCY, ILLINOISBALDWIN FIELDUNITED STATES
UMTUMIAT, ALASKAUMIATUNITED STATES
UNKUNALAKLEET, ALASKAUNALAKLEETUNITED STATES
UTOUTOPIA, ALASKAINDIAN MOUNTAIN AFS UNITED STATES
UUKKUPARUK, ALASKAKUPARUKUNITED STATES
UXRMONUMENTVALLEY, UTAHMONUMENTVALLEYUNITED STATES
VAKCHEVAK, ALASKACHEVAKUNITED STATES
VCTVICTORIA, TEXAS COUNTY-FOSTERUNITED STATES
VDZVALDEZ, ALASKAVALDEZ MUNICIPALUNITED STATES
VEEVENETIE, ALASKAVENETIEUNITED STATES
VELVERNAL, UTAHVERNALUNITED STATES
VISVISALIA, CALIFORNIAVISALIAMUNICIPALUNITED STATES
VZMJENSENS STRIP, ALASKAJENSENS STRIPUNITED STATES
VZNWILDMAN CREEK, ALASKAWILDMAN CREEKUNITED STATES
VZRKATMAI BAY, ALASKAKATMAI BAYUNITED STATES
VZYKATMAI LODGE, ALASKAKATMAI LODGEUNITED STATES
WAAWALES, ALASKAWALESUNITED STATES
WBBSTEBBINS, ALASKASTEBBINSUNITED STATES
WBQBEAVER, ALASKABEAVERUNITED STATES
WCRCHANDALAR, ALASKACHANDALAR LAKEUNITED STATES
WDGENID, OKLAHOMAENID WOODRING MUNI UNITED STATES
WFKFRENCHVILLE, MAINEFRENCHVILLEUNITED STATES
WKKALEKNAGIK, ALASKAALEKNAGIKUNITED STATES
WLBLABOUCHERE BAY, ALASKALABOUCHERE BAYUNITED STATES
WLKSELAWIK, ALASKASELAWIKUNITED STATES
WMHMOUNTAIN HOME, ARKANSASMOUNTAIN HOME MUNI UNITED STATES
WMOWHITE MOUNTAIN, ALASKAWHITE MOUNTAINUNITED STATES
WRGWRANGELL, ALASKAWRANGELLSPBUNITED STATES
WRLWORLAND, WYOMINGWORLAND MUNICIPALUNITED STATES
WSNSOUTH NAKNEK, ALASKASOUTH NAKNEKUNITED STATES
WTKNOATAK, ALASKANOATAKUNITED STATES
WWPWHALE PASS, ALASKAWHALE PASSUNITED STATES
WWTNEWTOK, ALASKANEWTOKUNITED STATES
WYSWESTYELLOWSTONE, MONTANAYELLOWSTONEUNITED STATES
YAKYAKUTAT, ALASKAYAKUTATUNITED STATES
YKNYANKTON, SOUTH DAKOTACHAN GURNEYMUNIUNITED STATES
YUMYUMA, ARIZONAYUMAINTERNATIONALUNITED STATES
ZXFILLINOIS CREEK, ALASKAILLINOIS CREEKUNITED STATES
ZXOELCAPITAN, ALASKAELCAPITAN PEAKUNITED STATES
*Rev. Proc. 97–46, which was “dropped” on September 30, 1997, includes Mitchell, South Dakota,as one of the listed rural airports for calendar year 1997. That
revenue procedure is incorrect. Mitchell, South Dakota has been deletedfrom the corrected version of rev. Proc. 97–46 that appears in this Bulletin.
October 20, 1997181997–42 I.R.B.

.02 Where transportation involves two
or more segments, at least one of which
begins or ends at a rural airport and at
least one of which does not, the 7.5 per-
cent rate is applied to the rural portion of
the transportation and the nonrural rate is
applied to the nonrural portion. The rural
portion is determined by calculating the
number of great circle miles in those seg-
ments beginning or ending at rural air-
ports and the total number of great circle
miles in all segments of the transporta-
tion. The fraction formed by using the
great circle miles of the rural portion as
the numerator and the total great circle
miles as the denominator is multiplied by
the amount paid for the transportation.
The result is the portion of the total
amount paid that is subject to the 7.5 per-
cent rate. The remaining portion of the
total amount paid is subject to the non-
rural rate. In addition, all segments not
beginning or ending at rural airports are
subject to the segment tax.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective for
amounts paid after September 30, 1997,
for transportation beginning after Septem-
ber 30, 1997.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Patrick S. Kirwan of the Of-
fice of Assistant Chief Counsel (Pass-
throughs and Special Industries). For fur-
ther information regarding this revenue
procedure contact Mr. Kirwan at 202-
622-3130 (not a toll-free call).
26 C.F.R. 601.602: Tax forms and instructions.
(Also Part I, Sections 3504, 6011, 6061, 6071;
31.3504–1, 31.6011(a)–7, 31.6061– , 301.6061–1,
31.6071(a)–1.)
Rev. Proc. 97–47
Table of Contents
SECTION 1.PURPOSE
SECTION 2.BACKGROUND A N D
CHANGES
SECTION 3.SCOPE
SECTION 4.DEFINITIONS
SECTION 5.A P P L I C ATION FOR
THE FORM 941 ELF
PROGRAM
SECTION 6.A C C E P TANCE IN T H E
FORM 941 ELF PRO-
GRAM
SECTION 7.ADDING AND DELET-
ING TA X PAYERS ON
THE REPORT I N G
AGENT’SL I S T
SECTION 8.ELECTRONIC FILING
OF FORM 941
SECTION 9.ADJUSTMENTS TO
FORM 941
SECTION 10.RESPONSIBILITIES OF
AN ELECTRONIC FILER
SECTION 11.A LT E R N ATIVE FILING
PROCEDURES
SECTION 12.REVISION OF COM-
PUTER SPECIFICA-
TIONS BYTHE SER-
VICE
SECTION 13.A D V E RTISING STA N-
DARDS
SECTION 14.REASONS FOR SUS-
PENSION
SECTION 15.A D M I N I S T R ATIVE RE-
V I E WPROCESS FOR
PROPOSED SUSPEN-
SION
SECTION 16.E F F E C TOF SUSPEN-
SION
SECTION 17.A P P E A LOF SUSPEN-
SION
SECTION 18.P E N A LT YFOR FA I L-
URE TO T I M E LYF I L E
ARETURN
SECTION 19.FILING FORMS W- 4
WITH THE INTERNAL
REVENUE SERVICE
SECTION 20.FILING FORMS W – 2
( C O P YA) WITH T H E
S O C I A LS E C U R I T Y
ADMINISTRATION
SECTION 21.I N T E R N A LR E V E N U E
SERVICE CONTACT
SECTION 22.E F F E C TON OTHER
DOCUMENTS
SECTION 23.EFFECTIVE DATE
SECTION 24.PA P E RWORK REDUC-
TION ACT
SECTION 1. PURPOSE
This revenue procedure sets forth the
requirements of the Form 941 ELF Pro-
gram under which a taxpayer that is a Re-
porting Agent (“Agent” as defined in sec-
tion 4.07 of this revenue procedure) may
electronically file Form 941, Employer’s
Quarterly Federal Tax Return. The tech-
nical specifications for filing Form 941
electronically are published separately in
Publication 1855, Technical Specifica-
tions Guide for the Electronic Filing Sys-
tem of Form 941, Employer’s Quarterly
Federal Tax Return. For further informa-
tion, see Publication 1264, File Specicifi-
cations, Process Criteria, and Record Lay-
outs for Magnetic Tape Filing of Form
941, Employer’s Quarterly Federal Ta x
Return. This revenue procedure ampli-
fies, clarifies, modifies, and supersedes
Rev. Proc. 96–19, 1996–1 C.B. 644.
SECTION 2. BACKGROUND
.01 Section 6011(a) of the Internal Rev-
enue Code provides that any person liable
for any tax imposed by this title, or for the
collection thereof, must make a return or
statement according to the forms and regu-
lations prescribed by the Secretary. Every
person required to make a return or state-
ment must include therein the information
required by such forms or regulations.
.02 Section 31.6011(a)–4 of the Em-
ployment Tax Regulations provides in
general that every person required to
make a return of income tax withheld
from wages pursuant to § 3402 must
make a return for the first calendar quarter
in which the person is required to deduct
and withhold such tax and for each subse-
quent calendar quarter until the person
has filed a final return. Except as other-
wise provided, Form 941 is the form pre-
scribed for making the return.
.03 Section 31.6011(a)–7 provides that
each return, together with any prescribed
copies or supporting data, must be filled
in and disposed of in accordance with the
forms, instructions, and regulations ap-
plicable thereto. The return may be made
by an agent in the name of the person re-
quired to make the return if an acceptable
power of attorney is filed with the Internal
Revenue Service office with which such
person is required to file returns and if
such a return includes all taxes required to
be reported by such person on such re-
turn. Form 8655, Reporting Agent Autho-
rization for Magnetic Tape/Electronic Fil-
ers, is an acceptable power of attorney, if
prepared in accordance with the require-
ments set forth in Rev. Proc. 96–17,
1996–1 C.B. 633, as modified by section
22.02 of this revenue procedure.
.04 Section 31.6061–1 provides that the
return may be signed for the taxpayer by
an agent that is fully authorized in accor-
dance with § 31.6011(a)–7 to make such
return. An Agent may sign the Form 941
on behalf of a taxpayer that has a valid
Form 8655 on file with the Service.
1997–42 I.R.B.19October 20, 1997

.05 Section 301.6061–1 of the Regula-
tions on Procedure and A d m i n i s t r a t i o n
provides that the Secretary may prescribe
in forms, instructions, or other appropri-
ate guidance the method for signing any
return, statement, or other document re-
quired to be made under any provision of
the internal revenue laws or regulations.
The Service has prescribed in the elec-
tronic filing instructions to Form 941 that
an electronically filed Form 941 is signed
by the entry of the Electronic Filer’s Per-
sonal Identification Number (“PIN”).
.06 Section 31.6071(a)–1 generally
provides that each return required to be
made under § 31.6011(a)–1 for taxes im-
posed by the Federal Insurance Contribu-
tions Act, or required to be made under
§ 31.6011(a)–4 for withheld income
taxes, must be filed on or before the last
day of the first calendar month following
the period for which it is made. However,
under § 31.6071(a)–1 a return may be
filed on or before the 10th day of the sec-
ond calendar month following such pe-
riod if timely deposits under § 6302(c)
and the regulations thereunder have been
made in full payment of such taxes due
for the period.
.07 Procedures for the magnetic filing
of Form 941 are in Rev. Proc. 96–18,
1996–1 C.B. 637, and the specifications
are in Publication 1264.
.08 The submission of federal tax de-
posit (“FTD”) information on magnetic
tape is addressed in Rev. Proc. 89–48,
1989–2 C.B. 599. For taxpayers that are
required to make FTDs by electronic
funds transfer pursuant to § 6302(h), the
submission of the FTD information along
with the transfer of funds is addressed in
Rev. Proc. 97–33, 1997–30 I.R.B. 10.
.09 This revenue procedure updates
R e v. Proc. 96–19. The updates include
changes in the 941 ELF Program, clarifi-
cations of prior Form 941 ELF Program
statements, and additional guidance de-
rived from other Service documents that
relate to the Form 941 ELF Program.
Some of the updates are:
(1) the signature provisions for an
electronically filed Form 941 have been
modified, amplified, and clarified to re-
quire use of a PIN instead of filing a Form
4996, Electronic/Magnetic Media Filing
Transmittal for Wage and Wi t h h o l d i n g
Tax Returns (sections 2.05, 4.05, 5.02,
6.06, 8.02, 10.02, 10.03, and 10.04);
(2) the definition of an Electronic
Filer:
(a) is prospectively limited to Re-
porting Agents whose applications (re-
ceived after the effective date of this rev-
enue procedure) include an A g e n t ’s List
containing 10 or more taxpayers (sections
4.02, 5.03, and 23.02); and
(b) has been expanded to include
Software Developers (sections 4.02, 5.02,
5.04, 6.04, 6.05, and 10.05); and
(3) a Reporting Agent is not required
to replace a previously submitted Autho-
rization under certain circumstances (sec-
tion 5.05).
SECTION 3. SCOPE
.01 The Form 941 ELF Program ac-
cepts electronically filed Forms 941 in
Electronic Data Interchange (“EDI”) for-
mat developed by the American National
Standards Institute that meets the require-
ments of this revenue procedure and Pub-
lication 1855.
.02 An Electronic Filer in the Form 941
ELF Program must use asynchronous
communications protocols to transmit
electronic returns. See Publication 1855
for further information regarding commu-
nications and formatting requirements.
.03 The Form 941 ELF Program ac-
cepts timely current returns that are zero
balance, refund, or limited balance due re-
turns. For the current limitations on bal-
ance due returns, refer to Publication
1855. For the due dates of returns under
the Form 941 ELF Program, see section
8.01 of this revenue procedure. The Form
941 ELF Program will not accept the
electronic filing of the following returns:
(1) amended returns;
(2) corrected returns;
(3) returns containing attachments;
or
(4) untimely returns.
Aviolation of any of these restrictions
will cause a Processing Interruption (as
defined in section 4.06 of this revenue
procedure).
SECTION 4. DEFINITIONS
.01 Authorized Signatory.The “Autho-
rized Signatory” is the person who is au-
thorized to use the PIN for returns filed by
an Electronic Filer under the Form 941
ELF Program or during software develop-
ment testing.
.02 Electronic Filer.After acceptance
in the Form 941 ELF Program, as de-
scribed in section 6 of this revenue proce-
dure, a participant is referred to as an
“Electronic Filer.” An Electronic Filer
may be:
(1) an Agent that files Forms 941
electronically; or
(2) a “Software Developer” that de-
velops software for the purposes of (a)
formatting returns according to the Ser-
v i c e ’s electronic return specifications in
Publication 1855; and/or (b) transmitting
electronic returns directly to the Service.
ASoftware Developer may also sell its
software.
.03 Electronic Filing Help Desk.The
Electronic Filing Help Desk (“ELF Help
Desk”) is responsible for the administra-
tion of the Form 941 ELF Program. See
section 21 of this revenue procedure for
the address and telephone number of the
ELF Help Desk.
.04 Error Rate.The “Error Rate” is the
percentage of the total volume of tax data
records that are identified by the Service’s
computer program as containing errors
(as defined in Publication 1855).
.05 Personal Identification Number.A
Personal Identification Number (“PIN”)
is a number assigned by the Service to the
Authorized Signatory of an Electronic
Filer for purposes of signing an electroni-
cally filed Form 941.
.06 P rocessing Interru p t i o n .A“ P r o-
cessing Interruption” is an abnormal ter-
mination of a program run caused by the
electronic data submitted by an Electronic
Filer.
.07 R e p o rting Agent. AR e p o r t i n g
Agent (“Agent”) is an accounting service,
f r a n c h i s e r, bank, or other person that
complies with Rev. Proc. 96–17, as modi-
fied by section 22.02 of this revenue pro-
cedure, and is authorized to prepare and
electronically file a Form 941 for a tax-
payer.
.08 Reporting Agent Authorization.A
Reporting Agent Authorization (“Autho-
rization”) allows a taxpayer to designate
an Agent. The Authorization may be sub-
mitted on Form 8655, or any other instru-
ment that complies with Rev. Proc. 96–
17, as modified by section 22.02 of this
revenue procedure. An A u t h o r i z a t i o n
must be submitted for each taxpayer on
the Reporting Agent’s List.
.09 R e p o rting A g e n t ’s List. For pur-
poses of the Form 941 ELF Program, a
October 20, 1997201997–42 I.R.B.

Reporting A g e n t ’s List (“Agent’s List”)
identifies all taxpayers for whom an A g e n t
will file Forms 941 electronically. As e p a-
rate Authorization must be submitted for
each taxpayer on the A g e n t ’s List. T h e
A g e n t ’s List must contain each taxpayer’s
employer identification number (“EIN”).
.10 User identification/password.The
user identification/password (“userid/
password”) consists of an identification
number (userid) issued by the Service and
a confidential set of characters (password)
that, when used in conjunction with each
other, permit an Electronic Filer access to
the Form 941 ELF Program.
. 11 Validated Reporting A g e n t ’s List. A
Validated Reporting A g e n t ’s List (“Va l i-
dated A g e n t ’s List”) is the source of the
EIN and name control to be used as an
identification of each taxpayer by an Elec-
tronic Filer that is an Agent. AVa l i d a t e d
A g e n t ’s List is a list of taxpayers and their
EINs prepared by an Agent that is con-
firmed and assigned name controls by the
Service. Once the Service returns a Va l i-
dated A g e n t ’s List, the Agent must use it to
fill in certain required fields (for example,
the name control field) of the electronic
transmission. See Publication 1855.
SECTION 5. APPLICATION FOR THE
FORM 941 ELF PROGRAM
.01 Aprospective Electronic Filer
(“Applicant”) must first submit a Letter of
Application (“Application”) to participate
in the Form 941 ELF Program.
.02 All Applications must contain the
following:
(1) the name, address, and EIN of the
Applicant;
(2) the name, title, and telephone
number of the person to contact regarding
the Application;
(3) the first tax period for which the
Applicant plans to file Forms 941 elec-
tronically or to have Form 941 software
available to the public;
(4) a representation that the A p p l i-
cant will comply with section 10 of this
revenue procedure regarding responsibili-
ties of an Electronic Filer;
(5) a listing of any suspension from
any of the Service’s magnetic tape or
electronic filing programs;
(6) the name and title of the Autho-
rized Signatory; and
(7) the signature of the A p p l i c a n t ’s
Authorized Signatory for electronically
filing Forms 941 or for software develop-
ment testing.
.03 An Application of an Agent must
also contain the following:
(1) the estimated volume of returns the
Applicant plans to file under the Form
941 ELF Program;
(2) the brand name of the software
translation package and the EDI version
to be used;
(3) a statement that the Applicant will
keep a copy of all the Authorizations on
file at the A p p l i c a n t ’s principal place of
business for examination by the Service
upon request;
(4) a representation that the Applicant
will comply with section 3.03 of this rev-
enue procedure regarding the types of re-
turns accepted under the Form 941 ELF
Program;
(5) an A g e n t ’s List containing the
names of 10 or more taxpayers (except as
provided in the grandfather rule in section
23.02 of this revenue procedure); and
(6) except as provided in section 5.05
of this revenue procedure, an A u t h o r i z a-
tion made on Form 8655 with a revision
date of October 1995 or later (or its equiv-
alent) for each taxpayer included on the
A g e n t ’s List. See Rev. Proc. 96-17, as
modified by section 22.02 of this revenue
procedure, for general instructions on
preparing Form 8655.
See Exhibit 1 in the APPENDIX of this
revenue procedure for a sample Applica-
tion to Participate in the Form 941 ELF
Program as an Agent.
.04 An Application of a Software De-
veloper must also contain the following:
(1) the brand name of the software
translation package, or the development
name if no brand name exists, and the
EDI version to be used; and
(2) whether the software is stand-
alone or interfaces with a named payroll
package.
See Exhibit 2 in the APPENDIX of this
revenue procedure for a sample Applica-
tion to Participate in the Form 941 ELF
Program as a Software Developer.
.05 Arevised Authorization is not re-
quired to replace an Authorization made
on Form 8655 with a revision date before
October 1995 (or its equivalent) that was
previously submitted to the Service by an
Agent, provided that Authorization places
no restriction on the medium for filing
Form 941, and the Agent:
(1) advises its client that its Forms
941 may be filed electronically, and pro-
vides the client with the option of reject-
ing electronic filing as the medium for fil-
ing its Forms 941. An Agent may use the
most efficient and timely method of
clearly providing this notification to a
client. Ac l i e n t ’s rejection of electronic
filing for its Forms 941 must be submitted
in writing to the Agent; and
(2) immediately removes any client
from its electronic filing client base that
rejects having its Forms 941 filed elec-
tronically.
.06 To allow sufficient time for the ap-
proval process, the Applicant should sub-
mit its Application by the Application due
dates preceding the quarter ending dates,
as follows:
Application Due For Quarter
DateEnding
December 15 (prior year)March 31
March 15June 30
June 15September 30
September 15December 31
.07 The Application must be submitted
to the Service at the address provided in
section 21 of this revenue procedure.
.08 An Application may notinclude a
request to file Forms 941, 940, and 945 on
magnetic tape or make FTD payments
and submit FTD information to the Ser-
vice on magnetic tape or electronically.
An Applicant interested in participating in
these programs should submit an Applica-
tion in accordance with the following rev-
enue procedures: Rev. Proc. 96–18 (mag-
netic tape filing of Forms 941, 940, and
945); Rev. Proc. 97–33 (electronic trans-
mission of FTDs); and Rev. Proc. 89–48
(magnetic tape filing of FTD informa-
tion).
SECTION 6. ACCEPTANCE IN THE
FORM 941 ELF PROGRAM
.01 In the case of an Applicant that is
an Agent, the Applicant will receive a
Validated Agent’s List within 45 days of
the Service receiving the Agent’sApplica-
tion. Failure to use the names and EINs
provided on the Validated A g e n t ’s List
may delay processing.
.02 An Applicant must contact the ELF
Help Desk, at the number listed in section
21 of this revenue procedure (unless in-
structed to use a different number), to no-
tify the Service that the Applicant is ready
1997–42 I.R.B.21October 20, 1997

to begin the testing process. In the case of
an Applicant that is an Agent, the Agent
must contact the ELF Help Desk after re-
ceiving the Validated Agent’s List.
.03 An Applicant must transmit an ini-
tial test electronic transmission of Form
941 (“test file”) by the test file due dates
preceding the corresponding quarter due
dates, as follows:
Initial Test File For Quart e r
Due DateEnding
April 10March 31
July 10June 30
October 10September 30
January 10December 31
To transmit subsequent test files, contact
the ELF Help Desk. Transmission of a
test file does not constitute the filing of a
tax return. See Publication 1855 for spe-
cific testing procedures.
.04 After evaluating the test file, the
Service will notify an Applicant in writing
of approval or denial of electronic filing
privileges. An approval remains in effect
unless the Electronic Filer:
(1) that is an Agent fails to comply
with the Authorization requirements of
sections 5.03(6) and 5.05 of this revenue
procedure;
(2) that is a Software Developer fails
to comply with the requirements of sec-
tion 10.05 of this revenue procedure; or
(3) is suspended from the Form 941
ELF Program. See section 16 of this rev-
enue procedure for the effect of a suspen-
sion.
.05 The acceptance by the Service of a
Software Developer as an Electronic
Filer:
(1) establishes only that the test elec-
tronic transmission(s) are formatted prop-
erly and may be processed by the Service;
(2) is not an endorsement by the Ser-
vice of the software or the quality of ser-
vices provided by the Software Devel-
oper; and
(3) does not entitle the Software De-
veloper to electronically file Forms 941
unless the Software Developer is also ac-
cepted in the Form 941 ELF Program as
an Agent.
.06 If an Application is approved, the
Service will send the Electronic Filer the
following two documents:
(1) a notification of approval that
will contain the userid/password, and in-
formation and procedures regarding sign-
ing onto the system for filing electronic
Forms 941; and
(2) a PIN that may be used only by
the Electronic Filer’s Authorized Signa-
tory named in the Application.
.07 Upon receipt of each document ref-
erenced in section 6.06 of this revenue
procedure, the Electronic Filer must return
the following documents to the Service:
(1) an acknowledgement signed by
each employee recipient of the
userid/password indicating possession of,
and responsibility for, the userid/pass-
word; and
(2) an acknowledgement signed by
the Electronic Filer’s Authorized Signa-
tory indicating possession of, and respon-
sibility for, the proper use of the PIN for
signing tax returns (pursuant to
§ 301.6061–1) filed in the Form 941 ELF
Program.
See Exhibit 3 in the APPENDIX of this
revenue procedure for a sample userid/
password and PIN receipt.
.08 The Service will activate the
userid/password and the PIN upon receiv-
ing the Electronic Filer’s acknowledge-
ments of the receipt of the two documents
referenced in section 6.06 of this revenue
procedure.
.09 If an A p p l i c a n t ’s test file fails to
meet the evaluation criteria, the Applicant
must, within 15 days of the Service’s noti-
fication of the failure, transmit a new test
file or contact the ELF Help Desk to make
other arrangements.
.10 If an Applicant that is an Agent is
denied, or does not receive, approval for
participating in the Form 941 ELF Pro-
gram before the end of the tax quarter for
which the Forms 941 will be filed, the
Applicant should file the returns on paper
Forms 941 (or on magnetic tape if the Ap-
plicant meets the requirements of Rev.
Proc. 96–18).
.11 If an Applicant is denied acceptance
into the Form 941 ELF Program, the Ap-
plicant may reapply for a subsequent tax
quarter by resubmitting an A p p l i c a t i o n
and test file in accordance with sections 5
and 6 of this revenue procedure.
SECTION 7. ADDING AND
DELETING TAXPAYERS BYA
REPORTING AGENT
.01 After an Electronic Filer that is an
Agent is notified that the application for
electronic filing of Forms 941 has been
approved, the Agent may want to add and
delete taxpayers from the Form 941 ELF
Program.
.02 To add taxpayers, the Agent must
submit the added names and EINs (Add
List) and an Authorization, in accordance
with sections 5.03(6) and 5.05 of this rev-
enue procedure, for each taxpayer added
to the Form 941 ELF Program. The Ser-
vice must validate the Add List and return
it to the Agent before the Agent can elec-
tronically file returns for these taxpayers.
The Service will generally validate and
mail the Add List to the Agent within 10
business days of receiving the Add List.
.03 To delete taxpayers, the Agent must
submit a list of those taxpayers to be
deleted (Delete List) and, if known, a
short statement indicating which taxpay-
ers will not remain in business.
SECTION 8. ELECTRONIC FILING OF
FORM 941
.01 An Electronic Filer that is an Agent
must ensure that an electronic Form 941
is filed on or before the due date of the re-
turn. The due dates prescribed for filing
paper Forms 941 with the Service also
apply to returns filed under the Form 941
ELF Program. Forms 941 are due on or
before the last day of the first calendar
month following the period for which the
return is made. However, a return for
which all tax deposits were made when
due for the quarter may be filed by the
10th day of the month following the due
date. In no case may one electronic trans-
mission include returns with more than
one due date.
.02 An electronically filed Form 941 is
not considered filed until it has been ac-
knowledged as accepted for processing by
the Service. If an electronically filed
Form 941 is transmitted on or before the
due date, the return will be deemed timely
filed. If an electronically filed Form 941
is initially transmitted on or shortly before
the return due date and is ultimately re-
jected, but the Electronic Filer complies
with section 8.03 of this revenue proce-
dure, the return will be deemed timely
filed.
.03 An electronic transmission that
causes a Processing Interruption or that
has an Error Rate exceeding 5 percent
may not be accepted, and the Electronic
Filer will be asked to resubmit the re-
turn(s). If the electronic transmission is
October 20, 1997221997–42 I.R.B.

acknowledged as rejected by the Service,
the Electronic Filer should correct the
error(s) and retransmit the return(s) on the
same calendar day. If the Electronic Filer
chooses not to have the previously re-
jected return retransmitted, or if the return
still cannot be accepted for processing, a
paper Form 941 (or a Form 941 on mag-
netic tape if the Electronic Filer meets the
requirements of Rev. Proc. 96–18) must
be filed by the later of: (1) the due date of
the return; or (2) within five calendar days
of the rejection or notice that the return
cannot be retransmitted, with an explana-
tion of why the return is being filed after
the due date. For the penalty for failure to
file a timely return, see section 18 of this
revenue procedure.
SECTION 9. ADJUSTMENTS TO
FORM 941
Forms 941 filed under the Form 941
ELF Program must not contain adjust-
ments other than adjustments resulting
from rounding fractions of cents or from
third-party sick pay for which an em-
ployer is not responsible. Returns with
other adjustments must be filed on mag-
netic tape or on paper.
SECTION 10. RESPONSIBILITIES OF
AN ELECTRONIC FILER
.01 To ensure that complete returns are
accurately and efficiently filed, an Elec-
tronic Filer must comply with Publication
1855.
.02 The Electronic Filer that is an
Agent must retain the following material
for 4 years after the due date of the return,
unless otherwise notified by the Service:
(1) a complete copy of the electroni-
cally filed Form 941;
(2) a copy of the Service’s acknowl-
edgement of receipt of the return; and
(3) a copy of each Authorization.
.03 An Electronic Filer that is an Agent
must:
(1) provide the taxpayer with a copy
of the taxpayer’s electronically filed Form
941. This information may be provided
on a replica of an official form or on an
unofficial form. However, data entries on
an unofficial form must refer to the line
numbers on an official form;
(2) advise the taxpayer to retain a
copy of the return and any supporting ma-
terial;
(3) inform the taxpayer of the service
center that processes the taxpayer’s re-
turns;
(4) advise the taxpayer that an
amended return, if needed, must be filed
as a paper return and mailed to the service
center identified in accordance with sec-
tion 10.03(3) of this revenue procedure.
See section 9 of this revenue procedure
for adjustments to Forms 941; and
(5) provide the taxpayer, upon re-
quest, with the date the return was trans-
mitted to the Service and the date the Ser-
vice acknowledged receipt of the
taxpayer’s return.
.04 An Electronic Filer must comply
with the following userid/password and
PIN requirements:
(1) each authorized employee of the
Electronic Filer must submit a signed re-
ceipt acknowledging receipt of the
userid/password, and accepting the asso-
ciated responsibilities. See Exhibit 3 in
the APPENDIX of this revenue procedure
for a sample userid/password receipt;
(2) the Authorized Signatory for the
Electronic Filer must submit a signed re-
ceipt acknowledging possession, and ac-
cepting responsibility for proper use, of
the PIN for signing and filing tax returns
(or for software development testing) in
the Form 941 ELF Program. See Exhibit
3 in the APPENDIX of this revenue pro-
cedure for a sample PIN receipt;
(3) the Electronic Filer is responsible
for ensuring that the PIN remains the con-
fidential information of the Electronic
Filer’sAuthorized Signatory. If the Elec-
tronic Filer suspects that the confidential-
ity of the PIN and/or userid/password has
been compromised, the Electronic Filer
must contact the ELF Help Desk within
24 hours for instructions on how to pro-
ceed. See section 21 of this revenue pro-
cedure for Service contact information;
(4) if the Authorized Signatory for an
Electronic Filer changes, the Electronic
Filer must notify the Service of the name
and title of the new Authorized Signatory
for the electronically filed Form 941 and
apply for a new PIN no later than 15 days
before the filing of another return. After
this notification, the Service will deacti-
vate the current PIN and issue a new PIN
to the new Authorized Signatory. T h e
new Authorized Signatory must submit a
PIN receipt as specified in section
10.04(2) of this revenue procedure in
order to activate the PIN; and
(5) the Authorized Signatory for the
Electronic Filer must manually enter the
PIN signature for each transmission of
electronically filed Forms 941.
.05 An Electronic Filer that is a Soft-
ware Developer must:
(1) promptly correct any software
error that may cause, or causes, an elec-
tronic return to be rejected;
(2) promptly distribute any such
software correction;
(3) ensure that any software package
that will be used to transmit returns from
multiple Electronic Filers that are Agents
has the capability of combining these re-
turns into one Service transmission file;
and
(4) not incorporate into its software a
Service assigned PIN.
SECTION 11. ALTERNATIVE FILING
PROCEDURES
.01 Procedures for the filing of Form
941 on magnetic tape are in Rev. Proc.
96-18 and the specifications are in Publi-
cation 1264.
.02 An Electronic Filer that is an Agent
may use a Form 941 ELF Program Autho-
rization to file a paper Form 941 under the
Form 941 ELF Program under the follow-
ing circumstances:
(1) the late receipt of payroll infor-
mation from a taxpayer that would jeopar-
dize the timely submission of the tax-
payer’s return;
(2) the amendment of returns filed
under the Form 941 ELF Program;
(3) the rejection of an electronic
transmission that would jeopardize the
timely submission of the taxpayer’s re-
turn;
(4) an authorization by the Service
for an Electronic Filer to file paper Forms
941 instead of electronically filed Forms
941; or
(5) the suspension of an Agent from
the Form 941 ELF Program as provided
in section 16.02(3) of this revenue proce-
dure.
.03 An Agent may prepare a paper
Form 941 for the taxpayer’s signature. A
t a x p a y e r’s authorized representative that
is not an Agent participating in the Form
941 ELF Program (including a suspended
Agent) must have a valid power of attor-
ney (usually a Form 2848, Power of At-
torney and Declaration of Representative)
that authorizes the representative to sign
1997–42 I.R.B.23October 20, 1997

and file a paper Form 941 on behalf of a
taxpayer.
.04 Each paper Form 941 must be
signed by the taxpayer, the taxpayer’s au-
thorized representative, or a participating
Agent to the extent permitted under sec-
tion 11.02 of this revenue procedure.
SECTION 12. REVISION OF
COMPUTER SPECIFICATIONS
BYTHE SERVICE
.01 If Publication 1855 is revised, the
Service, if necessary, will advise all cur-
rent Electronic Filers to submit test files
prior to filing under the new specifica-
tions. Failure to submit a test file may
later result in a Processing Interruption or
an Error Rate exceeding 5 percent on re-
turns filed electronically for which an
Electronic Filer may receive a notice of
suspension. See section 14 of this revenue
procedure concerning the reasons for sus-
pension of electronic filing privileges.
.02 If an Electronic Filer is unable to
comply with the changes in specifica-
tions, the Electronic Filer must contact
the ELF Help Desk for further instruc-
tions. See section 21 of this revenue pro-
cedure.
SECTION 13. ADVERTISING
STANDARDS
.01 An Electronic Filer must:
(1) comply with the advertising and
solicitation provisions of 31 C.F.R. Part
10 (Treasury Department Circular No.
230). This circular prohibits the use or
participation in the use of any form of
public communication containing a false,
fraudulent, misleading, deceptive, unduly
influencing, coercive, or unfair statement
or claim. In addition, advertising must
not imply a special relationship with the
Service, Financial Management Service
(“FMS”), or the Treasury Department;
(2) adhere to all relevant federal,
state, and local consumer protection laws;
(3) not use the Service’s name, “In-
ternal Revenue Service” or “IRS”, within
a firm’s name;
(4) not use improper or misleading
advertising in relation to the Form 941
ELF Program;
(5) not carry the Service, FMS, or
other Treasury Seals on its advertising
material;
(6) clearly state the names of all co-
operating parties if advertising for a coop-
erative electronic return filing project
(public/private sector);
(7) pre-record any radio or television
advertisement and keep a copy of this ad-
vertisement for a period of at least 36
months from the date of the last transmis-
sion or use; and
(8) retain a copy of any actual direct
mailing or fax communications, along
with a list or other description of persons
to whom the communication was mailed,
faxed, or otherwise distributed for a pe-
riod of at least 36 months from the date of
the last mailing, fax, or distribution.
.02 Acceptance to participate in the
Form 941 ELF Program does not imply
endorsement by the Service, FMS, or the
Treasury Department of the software or
quality of services provided.
SECTION 14. REASONS FOR
SUSPENSION
.01 The Service reserves the right to
suspend an Electronic Filer from the
Form 941 ELF Program for the following
reasons (this list is not all-inclusive):
(1) submitting tax returns for which
the Service did not receive A u t h o r i z a-
tions;
(2) repeatedly submitting tax returns
that have an Error Rate exceeding 5 per-
cent or that cause a Processing Interrup-
tion;
(3) submitting tax returns that have
an Error Rate exceeding 5 percent or that
cause a Processing Interruption after fail-
ing to submit the test file required by sec-
tion 12 of this revenue procedure;
(4) failing to comply with the re-
sponsibilities of an Electronic Filer set
forth in section 10 of this revenue proce-
dure;
(5) failing to abide by the advertising
standards in section 13 of this revenue
procedure; or
(6) significant complaints about an
Electronic Filer’s performance in the
Form 941 ELF Program.
.02 If the Electronic Filing Coordinator
(“ELF Coordinator”) informs an Elec-
tronic Filer that a certain action is a rea-
son for suspension and the action contin-
ues, the service center director may send
the Electronic Filer a notice proposing
suspension of the Electronic Filer. How-
ever, a notice proposing suspension may
be sent without a warning if the Elec-
tronic Filer’s action indicates an inten-
tional disregard of rules. Anotice propos-
ing suspension will describe the reason(s)
for the proposed suspension, and indicate
the length of the suspension and the con-
ditions that need to be met before the sus-
pension will terminate.
.03 An Electronic Filer that is an Agent
has an obligation to notify taxpayers fil-
ing through the Agent if and when that
Agent is suspended from filing under the
Form 941 ELF Program as provided in
section 16.02(4) of this revenue proce-
dure. The Service reserves the right to
extend the period of suspension of any
Agent that fails to comply with this re-
quirement.
SECTION 15. ADMINISTRATIVE
REVIEWPROCESS FOR PROPOSED
SUSPENSION
.01 An Electronic Filer that receives a
notice proposing suspension may request
an administrative review prior to the pro-
posed suspension taking effect.
.02 The request for an administrative
review must be in writing and contain de-
tailed reasons, with supporting documen-
tation, for withdrawal of the proposed
suspension.
.03 The written request for an adminis-
trative review and a copy of the notice
proposing suspension must be delivered
to the ELF Coordinator within 30 calen-
dar days of the date on the notice propos-
ing suspension. The ELF Coordinator
will forward the written request to the Na-
tional Program Analyst for Electronic Fil-
ing of Business Returns (“National Coor-
dinator”) if the service center director
continues to believe that suspension is
warranted.
.04 After consideration of the written
request for an administrative review, the
National Coordinator will either issue a
suspension letter or notify the Electronic
Filer in writing that the proposed suspen-
sion is withdrawn.
.05 If an Electronic Filer receives a sus-
pension letter, the ELF Coordinator’s sub-
sequent determination of whether a rea-
son for suspension has been corrected is
not subject to review or appeal.
.06 If an Electronic Filer does not
timely submit a written request for an ad-
ministrative review, the service center di-
rector will issue a suspension letter.
.07 Failure to submit a written request
for an administrative review within the
October 20, 1997241997–42 I.R.B.

30-day period described in section 15.03
of this revenue procedure irrevocably ter-
minates the Electronic Filer’s right to an
administrative review of the proposed
suspension.
SECTION 16. EFFECTOF
SUSPENSION
.01 An Electronic Filer’s suspension
will continue for the length of time speci-
fied in the suspension letter, or until the
conditions for terminating the suspension
have been met, whichever is later.
.02 In the case of an Electronic Filer
that is an Agent, the following additional
rules apply:
(1) if a Form 941 is due (without re-
gard to extensions) within 60 days from
the date on the suspension letter, the
Agent may file the Form 941 under the
Form 941 ELF Program;
(2) if a Form 941 is due (without re-
gard to extensions) more than 60 days
from the date on the suspension letter, the
Agent may not file the Form 941 under
the Form 941 ELF Program;
(3) if a suspended Agent has a power
of attorney from a taxpayer that autho-
rizes the Agent to sign and file Form 941,
the suspended Agent will be able to sign
and file a paper Form 941 for the tax-
payer. See section 11.03 of this revenue
procedure. Form 8655 does not authorize
the filing of paper Forms 941 outside of
the Form 941 ELF Program; and
(4) an Agent must provide written
notification of a suspension to a taxpayer
at least 45 days before the due date of the
taxpayer’s first return affected by the sus-
pension. This notification must be pro-
vided even though the Agent may believe
that the Agent will be able to meet the
conditions for terminating the suspension
before the due date.
.03 An Electronic Filer will be able to
participate in the Form 941 ELF Program
from which the Electronic Filer was sus-
pended, without reapplying to the Form
941 ELF Program, after:
(1) the stated suspension period ex-
pires; and
(2) the reason(s) for suspension are
corrected.
SECTION 17. APPEALOF
SUSPENSION
.01 If an Electronic Filer receives a sus-
pension letter from the National Coordi-
nator, the Electronic Filer is entitled to ap-
peal, by written protest, to the National
Director of Appeals. The written protest
must be sent to the National Coordinator,
who will forward it to the National Direc-
tor of Appeals. During the appeals
process, the suspension remains in effect.
.02 The written protest must be re-
ceived by the National Coordinator within
30 calendar days of the date of the sus-
pension letter. The written protest must
contain detailed reasons, with supporting
documentation, for termination of the sus-
pension.
.03 Within 15 calendar days of receipt
of a written protest, the National Coordi-
nator will forward the file on the Elec-
tronic Filer and the material described in
section 17.02 of this revenue procedure to
the National Director of Appeals.
.04 Failure to appeal within the 30-day
period described in section 17.02 of this
revenue procedure irrevocably terminates
the Electronic Filer’s right to appeal the
suspension.
SECTION 18. PENALTYFOR A
FAILURE TO TIMELYFILE A
RETURN
Section 6651(a)(1) provides that for
each month (or part thereof) a return is
not filed when required (determined with
regard to any extensions of time for fil-
ing), there is a penalty of 5 percent of the
unpaid tax not to exceed 25 percent, ab-
sent reasonable cause. Ataxpayer does
not establish reasonable cause simply by
engaging a competent Agent to file the
taxpayer’s return. However, if the Agent
has reasonable cause under § 6651(a) for
failing to timely file the taxpayer’s return,
the taxpayer will also have reasonable
cause for that failure, and the failure-to-
file penalty will be abated.
SECTION 19. FILING FORMS W–4
WITH THE INTERNALREVENUE
SERVICE
.01 An employer is required to send to
the Service by the due date of the quar-
terly return copies of all Forms W–4, Em-
p l o y e e ’s Withholding Allowance Certifi-
cates, received during the quarter from
any employee still employed at the end of
the quarter who claims:
(1) more than 10 withholding ex-
emptions; or
(2) exemption from withholding and
is expected to earn more than $200 per
week.
Employers should not send other Forms
W–4 unless notified by the Service in
writing to do so.
.02 If an employer’s Form 941 is filed
under the Form 941 ELF Program, copies
of required paper Forms W-4 along with a
cover letter providing the employer’s
name, address, EIN, and the number of
Forms W–4 included must be sent to the
service center that would have received
the employer’s paper Form 941. See Pub-
lication 15, Circular E, Employer’s Ta x
Guide, for more information on sending
Forms W–4 to the Service.
.03 Required Forms W–4 information
may also be filed on magnetic media (5
1/4 inch diskettes, 3 1/2 inch diskettes, or
magnetic tape). See Publication 1245,
Specifications for Filing Form W–4, Em-
p l o y e e ’s Withholding Allowance Certifi-
cate, on Magnetic Tape, and 5 1/4- and 3
1/2-Inch Magnetic Diskettes, for more in-
formation concerning magnetic media fil-
ing of Forms W–4.
SECTION 20. FILING FORMS W–2
(COPYA) WITH THE SOCIAL
SECURITYADMINISTRATION
Forms W–2, Wage and Tax Statements,
must be filed directly with the Social Se-
curity Administration on magnetic media
or paper. For information on magnetic
media reporting of Form W–2, contact the
Social Security Administration’s Regional
Magnetic Media Coordinators.
SECTION 21. INTERNALREVENUE
SERVICE CONTACT
Unless otherwise instructed, all ques-
tions regarding this revenue procedure
should be directed to the following ad-
dress and telephone number:
Internal Revenue Service
Memphis Service Center
Electronic Filing Help Desk
P.O. Box 30309 AMF
Memphis, TN 38130
Attention: ELF Unit Stop 26
The telephone number of this office is
(901) 546-2690 (not a toll-free number).
SECTION 22. EFFECTON OTHER
DOCUMENTS
.01 Rev. Proc. 96–9 is amplified, clari-
fied, modified, and superseded.
1997–42 I.R.B.25October 20, 1997

APPENDIX
Exhibit 1
Letter of Application to Participate in the Form 941 ELF Program as an Agent
AAAPayroll, Inc.
111 Main St.
Columbus, NY11111
EIN XX-XXXXXXX
[Date]
Internal Revenue Service
Memphis Service Center
Electronic Filing Help Desk
P.O. Box 30309 AMF
Memphis, TN 38130
Attention: ELF Unit Stop 26
To whom it may concern:
This letter is an application to participate in the electronic filing program for Forms 941 (“Form 941 ELF Program”).
I understand and agree to the following which are prerequisites for participation in the Form 941 ELF Program:
1. I will keep copies of the Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic Filers (or its equivalent) on
file at my principal place of business for a period no less than required under the period of limitation for assessment for the last re-
turn filed under its authority. I will provide these Authorizations for examination by the Service upon request.
2. I will abide by the recordkeeping requirements set forth in section 10.02 of Rev. Proc. 97–47.
.02 Section 6.05 of Rev. Proc. 96–17,
1996–1 C.B. 633, is modified to provide
the same relief as set forth in section 5.05
of this revenue procedure (regarding an
Agent not having to replace a previously
submitted Authorization under certain cir-
cumstances).
SECTION 23. EFFECTIVE DATE
.01 In general.This revenue procedure
is effective for returns due after October
20, 1997 (without regard to extensions).
.02 Grandfather rule.Ataxpayer or an
Agent that has filed an application for ac-
ceptance in the Form 941 ELF Program
on or before the effective date of this rev-
enue procedure, may be treated as an
Electronic Filer that is an Agent for pur-
poses of this revenue procedure. The tax-
payer or Agent must have been eligible to
apply for acceptance in the Form 941 ELF
Program under Rev. Proc. 96–19, and
must comply with all the applicable pro-
visions of this revenue procedure other
than the section 5.03(5) requirement of an
A g e n t ’s List containing the names of 10
or more taxpayers.
SECTION 24. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Of-
fice of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under control number
1545–1557.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless the col-
lection of information displays a valid
control number.
The collections of information in this
revenue procedure are in sections 5, 6, 7,
8, 10, 12, and 13. This information is re-
quired by the Service to implement the
Form 941 ELF Program and to enable
taxpayers to file their Forms 941 electron-
i c a l l y. The information will be used to
ensure that taxpayers receive accurate and
essential information regarding the filing
of their electronic returns and to identify
persons involved in the filing of elec-
tronic returns. The collections of infor
mation are required to retain the benefit of
participating in the Form 941 ELF Pro-
gram. The likely respondents are busi-
ness or other for-profit institutions, fed-
eral, state or local governments, nonprofit
institutions, and small businesses or orga-
nizations.
The estimated total annual reporting
and recordkeeping burden is 9,305 hours.
The estimated annual burden per re-
spondent/recordkeeper varies from 9
hours to 47 hours, depending on individ-
ual circumstances, with an estimated av-
erage of 46.53 hours. The estimated num-
ber of respondents and recordkeepers is
200.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
October 20, 1997261997–42 I.R.B.

1997–42 I.R.B.27October 20, 1997
3. I will provide my clients documentation of filed returns as set forth in section 10.03 of Rev. Proc. 97–47.
4. I will comply with all electronic security restrictions set forth in section 10.04 of Rev. Proc. 97–47 and Publication 1855, Tech-
nical Specifications Guide for the Electronic Filing System of Form 941, Employer’s Quarterly Federal Tax Return.
5. I agree to submit returns that meet the eligibility requirements set forth in section 3.03 of Rev. Proc. 97–47.
[Name, title] of [firm name] is the individual to contact concerning the userid/password. [Name] can be reached at [telephone
number]. [Name] has read and understands the rules that apply to the use of the userid/password.
[Name, title] of [firm name and address] is the designated recipient of the Personal Identification Number (PIN). [Name] is au-
thorized to administer and use the PIN as the signature of [firm name] to sign and file tax returns in the Form 941 ELF Program.
I will begin submitting returns using the Form 941 ELF Program for returns due XX quarter 19XX. I estimate that I will be sub-
mitting XXX number of returns (no fewer than 10 returns).
I expect to use [software brand name] translation software and EDI release version [number] for electronic transmissions.
I have included with this application a Reporting Agent’s List and an Authorization for each taxpayer on my Reporting Agent’s
List.
Please contact [name, title & telephone number] to discuss this letter of application.
[Signature of Electronic
Filer’s Authorized Signatory]
Attachments:
(1) Agent’s List
(2) Authorizations for taxpayers on the Agent’s List

Exhibit 2
Letter of Application to Participate in the Form 941 ELF Program as a Software Developer
AAAPay Developers
111 Main St.
Columbus, NY11111
EIN XX–XXXXXXX
[Date]
Internal Revenue Service
Memphis Service Center
Electronic Filing Help Desk
P.O. Box 30309 AMF
Memphis, TN 38130
Attention: ELF Unit Stop 26
To whom it may concern:
This letter is an application to participate in the electronic filing program for Forms 941 (“Form 941 ELF Program”).
I understand and agree to the following which is a prerequisite for participation in the Form 941 ELF Program as a software de-
veloper:
I will comply with all electronic security restrictions set forth in section 10.04 of Rev. Proc. 97–47 and
Publication 1855, Technical Specifications Guide for the Electronic Filing System of Form 941, Employer’s Quarterly Federal
Tax Return.
[Name, title] of [firm name] is the individual to contact concerning the userid/password. [Name] can be reached at [telephone
number]. [Name] has read and understands the rules that apply to the use of the userid/password.
[Name, title] of [firm name and address] is the designated recipient of the Personal Identification Number (PIN). [Name] is au-
thorized to administer and use the PIN as the signature of [firm name] to test software for use in filing tax returns in the Form 941
ELF Program.
I will provide software to begin submitting returns using the Form 941 ELF Program for returns due XX quarter 19XX.
I will use [name of software brand or development name] translation software and EDI release version [number] for electronic
transmissions. The software package will be marketed to [reporting agents filing more than XXX returns (no fewer than 10 re-
turns)]. The software is a [standalone or payroll package interface].
Please contact [name, title & telephone number] to discuss this letter of application.
[Signature of Software
Developer’s Authorized Signatory]
October 20, 1997281997–42 I.R.B.

Exhibit 3
PIN/Userid/Password Receipt
I, [i n s e rt “name of Authorized Signatory, title, Electronic Filer’s name and addre s s ”] acknowledge receipt of the [i n s e rt
“userid/password” or “PIN” as appropriate] for the Form 941 ELF Program.
I understand that I am bound by the requirements and responsibilities regarding [insert userid/password, or “PIN” as appropri-
ate] as set forth in Rev. Proc. 97–47, and Publication 1855.
[Note: the following paragraph only applies to the PIN receipt] I accept and adopt the PIN as my signature for signing tax returns
filed for [insert “Electronic Filer’s name”] in the Form 941 ELF Program. I also understand that by entering the PIN, I will be de-
claring, under penalties of perjury, that to the best of my knowledge and belief, the tax returns being submitted electronically are
true, correct, and complete.
For userid/password: [Signature of employee recipient]
For PIN: [Signature of Electronic Filer’s Authorized Signatory]
NOTE: Separate receipts are required for a user identification/password and a PIN.
1997–42 I.R.B.29October 20, 1997

October 20, 1997301997–42 I.R.B.
Notice of Proposed Rulemaking
and Notice of Public Hearing
Public Disclosure of Material
Relating to Tax-Exempt
Organizations
REG–246250–96
A G E N C Y: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing and notice of public hearing.
S U M M A RY: This document contains
proposed regulations relating to the public
disclosure requirements of section
6104(e) of the Internal Revenue Code.
The proposed regulations provide guid-
ance for a tax-exempt organization re-
quired to make its application for tax ex-
emption and annual information return
available for public inspection. The pro-
posed regulations also provide guidance
for a tax-exempt organization required to
comply with requests made in writing or
in person from individuals who seek a
copy of those documents. The proposed
regulations describe how a tax-exempt or-
ganization can make those documents
widely available and, therefore, not be re-
quired to provide copies in response to in-
dividual requests. The proposed regula-
tions address the standards that apply in
determining whether a tax-exempt organi-
zation is the subject of a harassment cam-
paign and guidance on the applicable pro-
cedures to obtain relief. This document
also provides notice of a public hearing.
DATES: Written comments and requests
to speak (with outlines of oral comments)
at the public hearing scheduled for Febru-
ary 4, 1998, beginning at 10 a.m. must be
submitted by December 26, 1997.
ADDRESSES: Send submissions to:
CC:DOM:CORP:R (REG–246250–96),
room 5226, Internal Revenue Service,
POB 7604, Ben Franklin Station, Wa s h-
ington DC 20044. Submissions may be
hand-delivered between the hours of 8
a.m. and 5 p.m. to: CC:DOM:CORP:R
(REG–246250–96), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitution
Avenue NW., Washington DC. A l t e r n a-
t i v e l y, taxpayers may submit comments
electronically via the Internet by selecting
the “Tax Regs” option on the IRS Home
Page, or by submitting comments directly
to the IRS Internet site at http://www.irs.
u s t r e a s . g o v / p r o d / t a x _ r e g s / c o m m e n t s . h t m l .
The public hearing will be held in the IRS
Auditorium, Internal Revenue Service
Building, 1111 Constitution Avenue, NW.,
Washington, DC.
FOR FURTHER INFORMATION CON-
TA C T: Concerning the regulations,
Michael B. Blumenfeld, (202) 622-6070;
concerning submissions and the hearing,
Michael Slaughter, (202) 622-7190 (not
toll-free numbers).
SUPPLEMENTARYINFORMATION:
Paperwork Reduction Act
The collections of information con-
tained in this notice of proposed rulemak-
ing have been submitted to the Office of
Management and Budget for review in ac-
cordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)). Com-
ments on the collections of information
should be sent to the Office of Manage-
ment and Budget,Attn: Desk Officer for
the Department of the Treasury, Office of
Information and Regulatory A ff a i r s ,
Washington, DC 20503, with copies to
the Internal Revenue Service,Attn: IRS
Reports Clearance Off i c e r, T: F P, Wa s h-
ington, DC 20224. Comments on the col-
lections of information should be received
by November 25, 1997. Comments are
specifically requested concerning:
Whether the proposed collections of in-
formation are necessary for the proper
performance of the functions of the Inter-
nal Revenue Service,including whether
the information will have practical utility;
The accuracy of the estimated burden
associated with the proposed collections
of information;
How the quality, utility, and clarity of
the information to be collected may be en-
hanced;
How the burden of complying with the
proposed collections of information may
be minimized, including through the ap-
plication of automated collection tech-
niques or other forms of information tech-
nology; and
Estimates of capital or start-up costs
and costs of operation, maintenance, and
purchase of services to provide informa-
tion.
The collections of information in these
proposed regulations are in §§301.6104-
(e)–1, 301.6104(e)–2, and 301.6104(e)–3.
This information is required to enable a
tax-exempt organization to comply with
section 6104(e) of the Internal Revenue
Code. Under section 6104(e), a tax-ex-
empt organization is required to make its
application for tax exemption and its an-
nual information returns available for
public inspection. In addition, a tax-ex-
empt organization is required to comply
with requests made in writing or in person
from individuals who seek a copy of those
documents or, in the alternative, to make
its documents widely available. The re-
quirement that a tax-exempt organization
make its application for tax exemption
and annual information returns available
for public inspection and comply with re-
quests made in writing or in person from
individuals who seek a copy of those doc-
uments or, in the alternative, make the
documents widely available, will enable
the public to obtain information about the
tax-exempt organization. Under section
6104(e), a tax-exempt organization is per-
mitted to file an application for relief
from the requirement to provide copies if
the organization reasonably believes it is
the subject of a harassment campaign.
The information a tax-exempt org a n i z a-
tion provides when filing an application
for a determination that it is subject to a
harassment campaign will be used by the
IRS to make such determination. T h e
collection of information is required to
obtain relief from the requirement to com-
ply with requests for copies if such re-
quests are part of the harassment cam-
paign. The likely respondents and/or
recordkeepers are tax-exempt org a n i z a-
tions. The burden for recordkeeping and
for reporting is reflected below.
Estimated total annual recordkeeping
burden: 551,000 hours.
Estimated average annual burden per
recordkeeper: 30 minutes.
Estimated number of recordkeepers:
1,100,000.
Estimated total annual reporting bur-
den: 500 hours.
Part IV. Items of General Interest

1997–42 I.R.B.31October 20, 1997
Estimated average annual reporting
burden per respondent: 29 minutes.
Estimated number of respondents:
1050.
Estimated annual frequency of re-
sponses: on occasion.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
the Office of Management and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mater-
ial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
This document contains proposed
amendments to the Income Tax Regula-
tions (26 CFR part 301) relating to the
section 6104(e) disclosure requirements
affecting tax-exempt organizations (orga-
nizations described in sections 501(c) or
(d) and exempt from taxation under sec-
tion 501(a)). Section 10702 of the Om-
nibus Budget Reconciliation Act of 1987
(OBRA‘87) added subsection (e) to sec-
tion 6104 of the Internal Revenue Code
(Code). Section 6104(e) requires each
tax-exempt organization, including one
that is a private foundation, to allow pub-
lic inspection of the organization’s appli-
cation for recognition of tax exemption.
Section 6104(e) also requires each tax-ex-
empt organization, other than one that is a
private foundation, to allow public in-
spection at the organization’s principal of-
fice (and certain regional or district of-
fices) of its three most recent annual
information returns. Each return must be
made available for a 3-year period begin-
ning on the date the return is required to
be filed or is actually filed, whichever is
l a t e r. Notice 88–20 (1988–2 C.B. 454),
provided tax-exempt organizations with
guidance for complying with the section
6104(e) public inspection requirements.
The Taxpayer Bill of Rights 2
(TBOR2), enacted on July 30, 1996,
amended section 6104(e) by adding addi-
tional requirements. As amended, section
6104(e) requires each tax-exempt organi-
zation, including one that is a private
foundation, to comply with requests,
made either in writing or in person, for
copies of the org a n i z a t i o n ’s application
for recognition of tax-exempt status. Sec-
tion 6104(e) also requires each tax-ex-
empt organization, other than one that is a
private foundation, to comply with re-
quests, made either in writing or in per-
son, for copies of the organization’s three
most recent annual information returns.
The organization must fulfill these re-
quests without charge, other than a rea-
sonable fee for reproduction and mailing
costs. If the request for copies is made in
person, the organization must provide the
requested copies immediately. If the re-
quest for copies is made in writing, the or-
ganization must provide the copies within
30 days. Section 6104(e) also provides
that an organization is relieved of its
obligation to provide copies upon request
if, in accordance with regulations to be
promulgated by the Secretary of the Trea-
sury, (1) the organization has made the re-
quested documents widely available or
(2) the Secretary of the Treasury deter-
mines, upon application by the organiza-
tion, that the organization is subject to a
harassment campaign such that a waiver
of the obligation to provide copies would
be in the public interest.
In Notice 96–48 (1996–39 I.R.B. 8),
the IRS invited comments on the changes
made by TBOR2. Twenty-two comments
were received and considered in the draft-
ing of this notice of proposed rulemaking.
The comments addressed a range of is-
sues, although they made several sugges-
tions in common. Several commentators
requested that the guidance on the new
disclosure requirements follow the exist-
ing guidance on the public inspection re-
quirements provided in Notice 88–120.
Several commentators also recommended
that the fee charged by the IRS for copies
of organization documents be used to es-
tablish a reasonable fee for an org a n i z a-
tion to charge when fulfilling requests for
copies of the documents. Anumber of
comments were received concerning the
Internet. Most, but not all, of these com-
ments urged that posting an org a n i z a-
t i o n ’s documents on the Internet be
treated as making those documents
widely available. Finally, several com-
mentators asked for guidance in determin-
ing when an organization is subject to a
harassment campaign, how to apply for a
harassment determination, what kind of
relief is available while such an applica-
tion is pending and the effect of a deter-
mination that the organization is the sub-
ject of a harassment campaign.
Explanation of Provisions
Overview
The proposed regulations provide guid-
ance concerning the application and re-
turns a tax-exempt organization must
make available for public inspection and
must supply in response to requests for
copies. The proposed regulations also
provide guidance on (1) the place and
time for making these documents avail-
able for public inspection, (2) conditions
that may be placed on requests for copies
of documents, and (3) the amount, form
and time of payment of any fees that may
be charged. The regulations also pre-
scribe how an organization can make its
application for tax exemption and annual
information returns widely available. Fi-
n a l l y, the proposed regulations provide
guidance on the standards that apply in
determining whether an organization is
the subject of a harassment campaign and
on the applicable procedures for obtaining
relief.
Material Required to be Made Available
for Public Inspection and Supplied in
Response to a Request for Copies
The proposed regulations specify the
documents that a tax-exempt organization
must make available for public inspection
or supply in response to a request for
copies. Atax-exempt organization, in-
cluding one that is a private foundation,
must make its application for tax exemp-
tion available. An application for tax ex-
emption includes the application form
(such as Form 1023 or Form 1024) and
any supporting documents filed by the or-
ganization in support of its application. It
also includes any letter or document is-
sued by the IRS in connection with the
application. Consistent with the guidance
provided in Notice 88–120, if an organi-
zation filed its application before July 15,
1987, the proposed regulations provide
that the organization is required to make
available a copy of its application only if
it had a copy of the application on July
15, 1987.
Atax-exempt organization, other than
one that is a private foundation, must
make its three most recent annual infor-

mation returns available. Generally, an
annual information return includes Forms
990, 990–EZ, 990–BL, and Form 1065. It
also includes all schedules and attach-
ments filed with the IRS. An organization
is not required, however, to disclose the
parts of the return that identify names and
addresses of contributors to the organiza-
tion, nor is it required to disclose Form
990–T.The proposed regulations provide
rules concerning the documents that must
be made available by an organization that
is recognized as tax-exempt under a group
exemption letter or that files a group re-
turn pursuant to §1.6033–2(d) and Rev.
Proc. 80–27, 1980–1 C.B. 677 (or any
successor provision). Finally, the pro-
posed regulations provide guidance to an
individual denied inspection, or a copy, of
an application or a return. In such a case,
the individual may provide the IRS with a
statement that describes the reason why
the individual believes the denial was in
violation of legal requirements.
Place and Time Documents Must Be
Available for Public Inspection
The proposed regulations provide that a
tax-exempt organization must make the
specified documents available for public
inspection at its principal, regional and
district offices. The specified documents
generally must be available for inspection
on the day of the request during the of-
fice’s normal business hours. Consistent
with section 6104(e) and Notice 88–120,
the proposed regulations provide that an
o ffice of an organization will be consid-
ered a regional or district office only if it
has three or more paid full-time employ-
ees (or paid employees, whether part-time
or full-time, whose aggregate number of
paid hours per week is at least 120). The
rules exclude certain sites where the orga-
n i z a t i o n ’s employees perform solely ex-
empt function activities from being
treated as a regional or district office. In
addition, the proposed regulations pre-
scribe how an organization that does not
maintain a permanent office or whose of-
fice has very limited hours during certain
times of the year can comply with the
public inspection requirements. The pro-
posed regulations also provide rules con-
cerning the conditions the org a n i z a t i o n
may impose on public inspections that are
consistent with Notice 88–120.
Requirement to Furnish Copy to a
Requester
The proposed regulations require that a
tax-exempt organization accept requests
for copies made in person at the same
place and time that the information must
be available for public inspection. They
also generally require an organization to
provide the copies on the day of the re-
quest. In unusual circumstances, an orga-
nization will be permitted to provide the
requested copies on the next business day.
When a request is made in writing, the
proposed regulations require that a tax-
exempt organization furnish the copies
within 30 days from the date it receives
the request. If an organization, however,
requires advance payment of a reasonable
fee for copying and mailing, it may pro-
vide the copies within 30 days from the
date it receives payment, rather than from
the date of the initial request.
The proposed regulations provide guid-
ance as to what constitutes a request,
when a request is considered received,
and when copies are considered provided.
The proposed regulations provide that, in-
stead of requesting a copy of an entire ap-
plication for tax exemption or annual in-
formation return, individuals may request
a specific part of either document. Fi-
n a l l y, the proposed regulations permit a
principal, regional, or district office of an
organization to use an agent to process re-
quests for copies.
Reasonable Fee for Providing Copies
The proposed regulations provide that
the reasonable fee a tax-exempt organiza-
tion is permitted to charge for copies may
be no more than the fees charged by the
IRS for copies of tax-exempt organization
tax returns and related documents (cur-
rently $1.00 for the first page and $.15 for
each subsequent page), plus actual
postage costs. The proposed regulations
permit an organization to collect payment
in advance of providing the requested
copies. If an organization receives a writ-
ten request for copies with no payment
enclosed, and the organization requires
payment in advance, the org a n i z a t i o n
must request payment within 7 days from
the date it receives the request. Payment
will be deemed to occur on the day an or-
ganization receives the cash, check (pro-
vided the check subsequently clears) or
money order. The proposed regulations
require an organization to accept payment
made by cash or money order, and when
the request is made in writing, also accept
payment made by personal check. An or-
ganization is permitted, though not re-
quired, to accept other forms of payment.
To protect requesters from unexpected
fees where a tax-exempt org a n i z a t i o n
does not require prepayment and where a
requester does not enclose prepayment
with a request, an organization must re-
ceive consent from a requester before pro-
viding copies for which the fee charg e d
for copying and postage is in excess of
$20.
Making Applications and Information
Returns Widely Available
The proposed regulations provide that a
tax-exempt organization is not required to
comply with requests for copies if the or-
ganization has made the requested docu-
ments widely available. The proposed
regulations specify that an org a n i z a t i o n
can make its application for tax exemp-
tion and/or an annual information return
widely available by posting the applicable
document on the org a n i z a t i o n ’s Wo r l d
Wide Web page on the Internet or by hav-
ing the applicable document posted on an-
other org a n i z a t i o n ’s page as part of a
database of similar materials. In addition,
the proposed regulations provide that the
Commissioner may prescribe, by revenue
procedure or other guidance, other meth-
ods that an organization can use to make
its application and/or its return widely
available. An organization that makes its
application and/or its return widely avail-
able must inform individuals who request
copies how and where to obtain the re-
quested document. The Treasury and the
IRS are interested in comments on addi-
tional methods by which applications and
returns could be made widely available,
including the use of a clearinghouse that
maintains a large inventory of documents
from many organizations.
Harassment Campaigns
The proposed regulations provide guid-
ance in determining whether a tax-exempt
o rganization is the subject of a harass-
ment campaign. Generally, a harassment
campaign exists where an organization re-
ceives a group of requests, and the rele-
vant facts and circumstances show that
October 20, 1997321997–42 I.R.B.

the purpose of the group of requests was
to disrupt the operations of the tax-ex-
empt organization rather than to obtain in-
formation. The proposed regulations also
contain examples that evaluate whether
particular situations constitute a harass-
ment campaign and whether an organiza-
tion has a reasonable basis for believing
that a request is part of the harassment
campaign. For example, the IRS will not
allow organizations to suspend compli-
ance with a request for copies from a rep-
resentative of the news media even
though the organization believes that re-
quest is part of a harassment campaign.
The proposed regulations also permit an
o rganization to disregard requests in ex-
cess of two per month or four per year
made by a single individual or sent from a
single address. Finally, the proposed reg-
ulations provide procedures for request-
ing a determination that an organization is
subject to a harassment campaign, the
treatment of requests for copies while a
request for a determination is pending,
and the effect of such a determination.
Proposed Effective Date
These regulations are proposed to be
effective beginning 60 days after publica-
tion of these regulations as final regula-
tions.
Special Analyses
Pursuant to sections 603(a) and 605(b)
of the Regulatory Flexibility Act, it is cer-
tified that the collection of information
referenced in this notice of proposed rule-
making will not have a significant eco-
nomic impact on a substantial number of
small entities. Although a substantial
number of small entities will be subject to
the collection of information require-
ments in these regulations, the require-
ments will not have a significant eco-
nomic impact on these entities. T h e
average time required to maintain and dis-
close the information required under these
regulations is estimated to be 30 minutes
for each tax-exempt organization. T h i s
estimate is based on the assumption that,
on average, a tax-exempt org a n i z a t i o n
will receive one request per year to in-
spect or provide copies of its application
for tax exemption and its annual informa-
tion returns. Less than 0.001 percent of
the tax-exempt organizations affected by
these regulations will be subject to the re-
porting requirements contained in the reg-
ulations. It is estimated that annually, ap-
proximately 1,000 tax-exempt org a n i z a-
tions will make its documents widely
available by posting them on the Internet.
In addition, it is estimated that annually,
approximately 50 tax-exempt org a n i z a-
tions will file an application for a determi-
nation that they are the subject of a ha-
rassment campaign such that a waiver of
the obligation to provide copies of their
applications for tax exemption and their
annual information returns is in the public
interest. The average time required to
complete, assemble and file an applica-
tion describing a harassment campaign is
expected to be 5 hours. Because applica-
tions for a harassment campaign determi-
nation will be filed so infrequently, they
will have no effect on the average time
needed to comply with the requirements
in these regulations. In addition, a tax-ex-
empt organization is allowed in these reg-
ulations to charge a reasonable fee for
providing copies to requesters. T h e r e-
fore, it is estimated that on average it will
cost tax-exempt organizations less than
$10 per year to comply with these regula-
tions, which is not a significant economic
impact.
Pursuant to section 7805(f) of the Inter-
nal Revenue Code, this notice of pro-
posed rulemaking will be submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, considera-
tion will be given to any written com-
ments (a signed original and eight (8)
copies) that are submitted timely to the
IRS. All comments will be available for
public inspection and copying.
Apublic hearing has been scheduled
for February 4, 1998, beginning at 10 a.m.
in the IRS Auditorium, Internal Revenue
Building, 1111 Constitution Avenue, NW.,
Washington, DC. Because of access re-
strictions, visitors will not be admitted be-
yond the Internal Revenue Service Build-
ing lobby more than 15 minutes before
the hearing starts.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing.
Persons that wish to present oral com-
ments at the hearing must submit written
comments and an outline of the topics to
be discussed and the time devoted to each
topic (signed original and eight (8)
copies) by December 26, 1997.
Aperiod of 10 minutes will be allotted
to each person for making comments.
An agenda showing the schedule of
speakers will be prepared after the dead-
line for receiving outlines has passed.
Copies of the agenda will be available
free of charge at the hearing.
Drafting Information
The principal author of these regula-
tions is Michael B. Blumenfeld, Office of
Associate Chief Counsel (Employee Ben-
efits and Exempt Organizations), IRS.
Other personnel from the IRS and Tr e a-
sury Department also participated in their
development.
* * * * *
Proposed Amendments to the Regulations
A c c o r d i n g l y, 26 CFR Part 301 is pro-
posed to be amended as follows:
PART301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
26 CFR part 301 is amended by adding
entries in numerical order to read as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6104(e)–2 also issued
under 26 U.S.C. 6104(e)(3);
Section 301.6104(e)–3 also issued
under 26 U.S.C. 6104(e)(3); * * *
P a r. 2. Sections 301.6104(e)–0,
301.6104(e)–1, 301.6104(e)–2, and
301.6104(e)–3 are added to read as follows:
§301.6104(e)–0 Table of contents.
This section lists captions contained in
§§301.6104(e)–1, 301.6104(e)–2, and
301.6104(e)-3.
§301.6104(e)–1 Public inspection and
distribution of annual information returns
of tax-exempt organizations (other than
private foundations) and applications for
tax exemption.
(a)In general.
(b)Definitions.
(1)Tax-exempt organization.
(2)Private foundation.
(3)Application for tax exemption.
(i)In general.
1997–42 I.R.B.33October 20, 1997

(ii)No prescribed application form.
(iii)Exceptions.
(4)Annual information return.
(i)In general.
(ii)Returns more than 3 years old.
(5)Regional or district offices.
(i)In general.
(ii)Site not considered a regional or dis-
trict office.
(c)Special rules relating to public in-
spection.
(1)Permissible conditions on public in-
spection.
(2)O rganizations that do not maintain
permanent offices.
(d)Special rules relating to copies.
(1)Time and place for providing copies
in response to requests made in per-
son.
(i)In general.
(ii)Unusual circumstances.
(iii)Agents for providing copies.
(2)Request for copies in writing.
(i)In general.
(ii)Time and manner of fulfilling written
requests.
(A)In general.
(B)Agents for providing copies.
(3)Request for a copy of parts of docu-
ment.
(4)Fees for copies.
(i)In general.
(ii)Form of payment.
(A)Request made in person.
(B)Request made in writing.
(iii)Avoidance of unexpected fees.
(iv)Responding to inquiries of fees
charged.
(e)Rules relating to documents to be
provided by regional and district of-
fices, and local and subordinate orga-
nizations.
(1)Documents to be provided by re-
gional and district offices.
(2)Documents to be provided by local
and subordinate organizations.
(f)Failure to comply with public inspec-
tion or copying requirements.
(g)Effective date.
§301.6104(e)-2 Making applications and
returns widely available.
(a)In general.
(b)Widely available.
(1)In general.
(2)Internet posting.
(3)Notice requirement.
(c)Effective date.
§301.6104(e)–3 Tax-exempt organization
subject to harassment campaign.
(a)In general.
(b)Harassment.
(c)Special rule for multiple requests
from a single individual or address.
(d)Harassment determination procedure.
(e)Effect of a harassment determination.
(f)Examples.
(g)Effective date.
§301.6104(e)–1 Public inspection and
distribution of annual information returns
of tax-exempt organizations (other than
private foundations) and applications for
tax exemption.
(a) In general.Except as otherwise
provided in this section, a tax-exempt or-
ganization, including one that is a private
foundation, shall make its application for
tax exemption (as defined in paragraph
(b)(3) of this section) available for public
inspection without charge at its principal,
regional and district offices during regular
business hours. Atax-exempt org a n i z a-
tion, other than a private foundation, shall
make its annual information returns (as
defined in paragraph (b)(4) of this sec-
tion) available for public inspection with-
out charge in the same offices during reg-
ular business hours. Each annual
information return shall be made avail-
able for a period of three years beginning
on the date the return is required to be
filed (determined with regard to any ex-
tension of time for filing) or is actually
filed, whichever is later. In addition, ex-
cept as provided in §301.6104(e)–2 and
§301.6104(e)–3, an organization shall
provide a copy without charge, other than
a reasonable fee for reproduction and ac-
tual postage costs, of all or any part of any
application or return required to be made
available for public inspection under this
paragraph to any individual who makes a
request for such copy in person or in writ-
ing. See paragraph (d)(4) of this section
for rules relating to fees for copies.
(b) D e f i n i t i o n s .For purposes of sec-
tion 6104(e) and the regulations thereun-
der, the following definitions apply:
(1) Tax-exempt organization.The term
tax-exempt organizationmeans any orga-
nization that is described in section 501(c)
or section 501(d) and is exempt from tax-
ation under section 501(a).
(2) Private foundation. The term pri-
vate foundation means a private founda-
tion as defined in section 509(a).
(3) Application for tax exemption— ( i )
In general.The term application for tax
exemptionincludes any prescribed appli-
cation form (such as Form 1023 or Form
1024), all documents and statements the
Internal Revenue Service requires an ap-
plicant to file with the form, any state-
ment or other supporting document sub-
mitted by an organization in support of its
application, and any letter or other docu-
ment issued by the Internal Revenue Ser-
vice concerning the application (such as a
favorable determination letter or a list of
questions from the Internal Revenue Ser-
vice about the application). For example,
a legal brief supporting an application, or
a response to questions from the Internal
Revenue Service during the application
process, is a supporting document.
(ii) No prescribed application form.If
no form is prescribed for an org a n i z a-
t i o n ’s application for tax exemption, the
application for tax exemption includes—
(A) The application letter and copy of
the articles of incorporation, declaration
of trust, or other similar instrument that
sets forth the permitted powers or activi-
ties of the organization;
(B) The organization’s bylaws or other
code of regulations;
(C) The org a n i z a t i o n ’s latest financial
statements, as of the date the application
is submitted, showing assets, liabilities,
receipts and disbursements;
(D) Statements describing the character
of the organization, the purpose for which
it was organized, and its actual activities;
(E) Statements showing the sources of
the org a n i z a t i o n ’s income and receipts
and their disposition; and
(F) Any other statements or documents
the Internal Revenue Service required the
organization to file with, or that the orga-
nization submitted in support of, the ap-
plication letter.
(iii)Exceptions.The term application
for tax exemption does not include—
(A) Any application for tax exemption
filed by an organization that has not yet
been recognized, on the basis of the appli-
cation, by the Internal Revenue Service as
exempt from taxation for any taxable year;
(B) Any application for tax exemption
filed before July 15, 1987 unless the orga-
nization filing the application had a copy
of the application on July 15, 1987; or
October 20, 1997341997–42 I.R.B.

(C) Any material, including the mater-
ial listed in §301.6104(a)–1(i) and infor-
mation that the Secretary would be re-
quired to withhold from public
inspection, that is not available for public
inspection under section 6104.
(4) Annual information re t u r n—(i) I n
general.The term annual information re-
turnincludes an exact copy of any return
filed by a tax-exempt organization pur-
suant to section 6033. It also includes any
amended return filed with the Internal
Revenue Service after the date the origi-
nal return is filed. The copy must include
all information furnished to the Internal
Revenue Service on Form 990, Return of
O rganization Exempt From Income Ta x ,
or any version of Form 990 (such as
Forms 990–EZ or 990–BLexcept Form
990–T) and Form 1065, as well as all
schedules, attachments and supporting
documents, except for the name or ad-
dress of any contributor to the org a n i z a-
tion. For example, the annual information
return includes Schedule Aof Form 990
containing supplementary information on
section 501(c)(3) organizations, and those
parts of the return that show compensa-
tion paid to specific persons (Part VI of
Form 990 and Parts I and II of Schedule A
of Form 990). The term annual informa-
tion returndoes not include Schedule Aof
Form 990–BL, Form 990–T, Exempt Or-
ganization Business Income Tax Return
or Form 1120–POL, U.S. Income Tax Re-
turn For Certain Political Org a n i z a t i o n s .
For purposes of this section and the regu-
lations thereunder, an annual information
return does not include the return of a pri-
vate foundation. See §301.6104(d)–1 for
requirements relating to public disclosure
of private foundation annual returns.
(ii) Returns more than 3 years old. The
term annual informationreturn does not
include any return after the expiration of 3
years from the date the return is required
to be filed (including any extension of
time that has been granted for filing such
return) or is actually filed, whichever is
l a t e r. If an organization has filed an
amended return, however, the amended
return must be made available for a period
of 3 years beginning on the date it is filed
with the Internal Revenue Service.
(5) Regional or district offices—(i) I n
general. Aregional or district office is
any office of a tax-exempt org a n i z a t i o n ,
other than its principal office, that has—
(A) 3 or more paid full-time employ-
ees; or
(B) Paid employees, whether part-time
or full-time, whose aggregate number of
paid hours a week are normally at least
120.
(ii) Site not considered a regional or
district office.Asite is not considered a
regional or district office, however, if—
(A) The only services provided at the
site further exempt purposes (such as day
care, health care or scientific or medical
research); and
(B) The site does not serve as an office
for management staff, other than man-
agers involved solely in managing the ex-
empt function activities at the site.
(c) Special rules relating to public in-
s p e c t i o n—(1) Permissible conditions on
public inspection.Atax-exempt org a n i-
zation may have an employee present in
the room during an inspection. The orga-
nization, however, must allow the indi-
vidual conducting the inspection to take
notes freely during the inspection, and to
photocopy the document at no charge, if
the individual provides the photocopying
equipment at the place of inspection.
(2) Organizations that do not maintain
permanent offices.If a tax-exempt orga-
nization does not maintain a permanent
office, the organization shall comply with
the public inspection requirements of
paragraph (a) of this section by making its
application for tax exemption and its an-
nual information returns, as applicable,
available for inspection at a reasonable lo-
cation of its choice. Such an organization
shall permit public inspection within a
reasonable amount of time after receiving
a request for inspection (normally not
more than 2 weeks) and at a reasonable
time of day.At the organization’s option,
it may mail, within 2 weeks of receiving
the request, a copy of its application for
tax exemption and annual information re-
turns to the requester in lieu of allowing
an inspection. The organization may
charge the requester for copying and ac-
tual postage costs only if the requester
consents to the charge. An org a n i z a t i o n
that has a permanent office, but has no of-
fice hours or has very limited hours dur-
ing certain times of the year, shall make
its documents available during those peri-
ods when office hours are limited or not
available as though it were an org a n i z a-
tion without a permanent office.
(d) Special rules relating to copies—
(1) Time and place for providing copies in
response to requests made in-person—(i)
In general.Atax-exempt org a n i z a t i o n
shall provide copies of the documents it is
required to provide under section 6104(e)
in response to a request made in person at
the time and place that it makes its docu-
ments available for inspection under para-
graph (a) of this section. Except as pro-
vided in paragraph (d)(1)(ii) of this
section, an organization shall provide
such copies to a requester on the day the
request is made.
(ii) Unusual circumstances. Where un-
usual circumstances exist such that fulfill-
ing a request on the same business day
places an unreasonable burden on the tax-
exempt organization, the org a n i z a t i o n
may provide the copies in response to a
request made in person on the next busi-
ness day following the day of the request.
Unusual circumstances may include, but
are not limited to, receipt of a volume of
requests that exceeds the org a n i z a t i o n ’s
daily capacity to make copies; requests
received shortly before the end of regular
business hours that require an extensive
amount of copying; or requests received
on a day when the organization’s manage-
rial staff is conducting special duties, such
as student registration, rather than its reg-
ular administrative duties.
(iii) Agents for providing copies.A
principal, regional or district office of a
tax-exempt organization subject to the re-
quirements of this section may retain a
local agent, within reasonable proximity
of the applicable office, to process in per-
son requests for copies of its documents.
An agent that receives a request for copies
must provide the copies within the time
and under the conditions that apply to the
organization itself. For example, an agent
must provide a copy to a requester on the
day the agent receives the request. How-
ever, an office using such an agent that re-
ceives an in-person request for a copy
must immediately provide the name, ad-
dress and telephone number of the local
agent to the requester. An org a n i z a t i o n
that notifies an in-person requester of
such an agent is not required to respond
further to the requester. However, the
penalty provisions of sections 6652(c)(1)-
(C), 6652(c)(1)(D), and 6685 continue to
apply to the tax-exempt organization if
the org a n i z a t i o n ’s agent fails to provide
1997–42 I.R.B.35October 20, 1997

the documents as required under section
6104(e).
(2) Request for copies in writing— ( i )
In general. Atax-exempt org a n i z a t i o n
must honor a written request for a copy of
documents that the organization is re-
quired to provide under section 6104(e) if
the request—
(A) Is addressed to, and delivered by
mail, electronic mail, facsimile, a private
delivery service as defined in section
7502(f), or in person, to the principal, re-
gional or district office of the org a n i z a-
tion; and
(B) Sets forth the address to which the
copy of the documents should be sent.
(ii) Time and manner of fulfilling writ-
ten re q u e s t s—(A) In general.At a x - e x-
empt organization receiving a written re-
quest for a copy shall mail the copy of the
requested documents (or the requested
parts of documents) within 30 days from
the date it receives the request. If a tax-
exempt organization requires payment in
advance, it shall provide the copies within
30 days from the date it receives payment.
If an organization requiring payment in
advance receives a written request with-
out payment or an insufficient payment,
the organization must, within 7 days from
the date it receives the request, notify the
requester of its prepayment policy and the
amount due. Arequest or payment that is
mailed shall be deemed (in the absence of
evidence to the contrary) to be received
by an organization 7 days after the date of
the postmark. Requests transmitted to the
organization by electronic mail or facsim-
ile shall be deemed received the day the
request is transmitted successfully.
Copies are deemed provided on the date
of the postmark or private delivery mark
(or if sent by certified or registered mail,
the date of registration or the date of the
postmark on the sender’s receipt). If an
individual making a request consents, a
tax-exempt organization may provide a
copy of the requested document exclu-
sively by electronic mail. In such case,
the material is provided on the date the or-
ganization successfully transmits the elec-
tronic mail.
(B) Agents for providing copies.Atax-
exempt organization subject to the re-
quirements of this section may retain an
agent to process written requests for
copies of its documents. The agent shall
provide the copies within the time and
under the conditions that apply to the or-
ganization itself. For example, if the or-
ganization received the request first (e.g.
before the agent), the deadline for provid-
ing a copy in response to a request shall
be determined in reference to when the
o rganization received the request, not
when the agent received the request. An
organization that transfers a request for a
copy to such an agent is not required to
respond further to the request. However,
if the organization’s agent fails to provide
the documents as required under section
6104(e), the penalty provisions of sec-
tions 6652(c)(1)(C), 6652(c)(1)(D), and
6685 continue to apply to the tax-exempt
organization.
(3) Request for a copy of parts of docu-
ment. Atax-exempt organization must
fulfill a request for a copy of the organiza-
tion’s entire application for tax exemption
or annual information return or any iden-
tifiable part, attachment or supporting
paper of its application or return. Ar e-
quest for a copy of less than its entire ap-
plication or less than its entire return must
describe the information desired in suffi-
cient detail to enable the organization to
identify the desired part of the applicable
document without placing an unreason-
able burden upon the organization. For
example, a request may be limited to
those parts of an organization’s annual in-
formation return that relates to the com-
pensation of the org a n i z a t i o n ’s off i c e r s
and managers.
(4) Fees for copies—(i) In general.A
tax-exempt organization charges a reason-
able fee for providing copies only if it
charges no more than the per-page copy-
ing charge stated in §601.702(f)(5)(iv)(B)
of this chapter (fee charged by the Inter-
nal Revenue Service for providing copies
to a requester), plus no more than the ac-
tual postage costs incurred by the organi-
zation to provide the copies. An organi-
zation may require that an individual
requesting copies of documents pay the
fee before the documents are provided. If
the organization has provided an individ-
ual making a request with notice of the
fee, and the individual has not paid the fee
within 30 days, or if the individual pays
the fee by check and the check does not
clear when deposited, the org a n i z a t i o n
may disregard the request.
(ii) Form of payment—(A) R e q u e s t
made in person.If a tax-exempt organi-
zation charges a fee for copying as per-
mitted under paragraph (d)(4)(i) of this
section, it shall accept payment by cash
and money order for requests made in
person. The organization may accept
other forms of payment, such as personal
checks or credit cards.
(B) Request made in writing.If a tax-
exempt organization charges a fee for
copying and postage as permitted under
paragraph (d)(4)(i) of this section, it shall
accept payment by certified check, per-
sonal check and money order for requests
made in writing. The organization may
accept other forms of payment, such as
credit cards.
(iii) Avoidance of unexpected fees.
Where a tax-exempt organization does
not require prepayment and a requester
does not enclose prepayment with a re-
quest, an organization must receive con-
sent from a requester before providing
copies for which the fee charged for copy-
ing and postage under paragraph (d)(4)(i)
of this section is in excess of $20.
(iv) Responding to inquiries of fees
c h a rg e d .In order to facilitate a re-
q u e s t e r’s ability to receive copies
promptly, a tax-exempt organization shall
respond to any questions from potential
requesters concerning its fees for copying
and postage. For example, the organiza-
tion shall inform the requester of its
charge for copying and mailing its appli-
cation for exemption and each annual in-
formation return, with and without attach-
ments, so that a requester may include
payment with the request for copies.
(e) Rules relating to documents to be
provided by regional and district offices,
and local and subordinate org a n i z a-
t i o n s—(1) Documents to be provided by
regional and district offices.Ar e g i o n a l
or district office of a tax-exempt organi-
zation must satisfy the same rules as the
principal office with respect to public in-
spection and providing copies of its appli-
cation for tax exemption and annual infor-
mation returns. However, a regional or
district office is not required to make its
annual information return available for in-
spection or for providing copies until 30
days after the date the return is required to
be filed (including any extension of time
that is granted for filing such return) or is
actually filed, whichever is later.
(2) Documents to be provided by local
and subordinate organizations. Al o c a l
October 20, 1997361997–42 I.R.B.

organization that does not file its own an-
nual information return (because it is af-
filiated with a central organization that
files a group return pursuant to §1.6033-
2(d)) must make available the applicable
annual information returns filed by the
central organization. However, a local or-
ganization is not required to make its an-
nual information return available for in-
spection or for providing copies until 30
days after the date the return is required to
be filed (including any extension of time
that is granted for filing such return) or is
actually filed by the central organization,
whichever is later. If a subordinate orga-
nization is covered by a group exemption
l e t t e r, the application for tax exemption
the subordinate organization must make
available for public inspection and furnish
in response to requests for copies is the
application submitted to the Internal Rev-
enue Service by its parent or supervisory
o rganization to obtain the group exemp-
tion letter, as well as any additional docu-
ments submitted in order to cover the sub-
ordinate organization under the group
exemption letter.
(f) F a i l u re to comply with public in-
spection or copying re q u i re m e n t s .If a
tax-exempt organization denies an indi-
v i d u a l ’s request for inspection or a copy
of an application for tax exemption or an
annual information return as required
under section 6104(e) and this section,
and the individual wants to alert the Inter-
nal Revenue Service to the possible need
for enforcement action, the individual
may provide a statement to the Director,
Exempt Organizations Division,
CP:E:EO, Internal Revenue Service, 1111
Constitution Avenue, NW., Wa s h i n g t o n ,
D.C. 20224 that describes the reason why
the individual believes the denial was in
violation of the requirements of section
6104(e).
(g) Effective date.This section is effec-
tive beginning 60 days after its publica-
tion as a final regulation in the F e d e r a l
Register.
§301.6104(e)–2 Making applications
and returns widely available.
(a) In general.Atax-exempt organiza-
tion is not required to comply with a re-
quest for a copy of its application for tax
exemption or an annual information re-
turn pursuant to §301.6104(e)–1(a) if the
o rganization has made the requested ap-
plication or return widely available in ac-
cordance with paragraph (b) of this sec-
tion. An organization that makes its
application or return widely available
must nevertheless make the application or
return available for public inspection as
required under §301.6104(d)–1 or
§301.6104(e)–1, as applicable.
(b) Widely available—(1) In general.
Atax-exempt organization makes its ap-
plication for tax exemption and/or an an-
nual information return widely available
if the organization uses a method speci-
fied in paragraph (b)(2) of this section or
in a revenue procedure or other form of
guidance issued by the Commissioner,
and if the organization satisfies the re-
quirements of paragraph (b)(3) of this
section.
(2) Internet posting. Atax-exempt or-
ganization can make its application for
tax exemption and/or an annual informa-
tion return widely available by posting the
application or return on a World Wi d e
Web page that the tax-exempt org a n i z a-
tion establishes and maintains or by hav-
ing the application or return posted, as
part of a database of similar documents of
other tax-exempt organizations, on a
World Wide Web page established and
maintained by another entity. In order for
the application or return to be widely
available through an Internet posting, the
entity maintaining the World Wide We b
page must have procedures for ensuring
the reliability and accuracy of the applica-
tion or return that it posts on the page and
must take reasonable precautions to pre-
vent alteration, destruction or accidental
loss of the application or return posted on
its page. Furthermore, the application or
return will be considered widely available
only if—
(i) it is posted in the same format used
by the Internal Revenue Service to post
forms and publications on the Internal
Revenue Service World Wide Web page;
(ii) the World Wide Web page through
which it is available clearly informs read-
ers that the document is available and pro-
vides instructions for downloading it;
(iii) when downloaded and printed in
hard copy, the application or return is in
substantially the same form as the original
application or return, and contains the
same information provided in the original
application or return filed with the Inter-
nal Revenue Service (except information
withheld pursuant to §301.6104(e)–
1(b)(4)(i)(the names and addresses of
contributors listed on the annual informa-
tion), Schedule Aof Form 990–BLand in-
formation on the application for tax ex-
emption required to be withheld under
section 6104(a)(1)(D) and §301.6104(e)–
1(b)(3)(trade secrets and similar informa-
tion)); and
(iv) a person can access and download
the application or return without payment
of a fee to the organization maintaining
the World Wide Web page.
(3) Notice requirement.If a tax-exempt
organization has made its application for
tax exemption and/or an annual informa-
tion return otherwise widely available it
must tell any individual requesting a copy
where the documents are available (in-
cluding the address on the World Wi d e
Web, if applicable). If the request is made
in person, the organization shall provide
such notice to the individual immediately.
If the request is made in writing, the no-
tice shall be provided within 7 days of re-
ceiving the request.
(c) Effective date.This section is effec-
tive beginning 60 days after its publica-
tion as a final regulation in the F e d e r a l
Register.
§301.6104(e)-3 Tax-exempt organization
subject to harassment campaign.
(a) In general.If the key district direc-
tor for the district where the org a n i z a-
t i o n ’s principal office is located deter-
mines that the organization is the subject
of a harassment campaign and compli-
ance with the requests that are part of the
harassment campaign would not be in the
public interest, a tax-exempt organization
is not required to fulfill a request (as oth-
erwise required by §301.6104(e)–1(a))
for a copy that it reasonably believes is
part of the campaign.
(b) H a r a s s m e n t .Agroup of requests
for an org a n i z a t i o n ’s application for tax
exemption or annual information returns
is indicative of a harassment campaign if
the requests are part of a single coordi-
nated effort to disrupt the operations of a
tax-exempt organization rather than to
collect information about the org a n i z a-
tion. Whether a group of requests consti-
tutes a harassment campaign depends on
the relevant facts and circumstances.
Facts and circumstances that indicate the
o rganization is the subject of a harass-
1997–42 I.R.B.37October 20, 1997

ment campaign include: a sudden increase
in the number of requests; an extraordi-
nary number of requests made through
form letters or similarly worded corre-
spondence; evidence of a purpose to deter
significantly the org a n i z a t i o n ’s employ-
ees or volunteers from pursuing the orga-
n i z a t i o n ’s exempt purpose; requests that
contain language hostile to the organiza-
tion; direct evidence of bad faith by orga-
nizers of the purported harassment cam-
paign; evidence that the organization has
already provided the requested documents
to a member of the purported harassing
group; and a demonstration by the tax-ex-
empt organization that it routinely pro-
vides copies of its documents upon re-
quest.
(c) Special rule for multiple re q u e s t s
f rom a single individual or address. A
tax-exempt organization may disregard
any request for copies of all or part of any
document beyond the first two received
within any 30-day-period or the first four
received within any one-year-period from
the same individual or the same address,
regardless of whether the key district di-
rector has determined that the org a n i z a-
tion is subject to a harassment campaign.
(d) Harassment determination pro c e-
d u re .Atax-exempt organization may
apply for a determination that it is the
subject of a harassment campaign by sub-
mitting a signed application to the key
district director for the key district where
the org a n i z a t i o n ’s principal office is lo-
cated. The application shall consist of a
written statement giving the org a n i z a-
tion’s name, address, employer identifica-
tion number, and the name, address and
telephone number of the person to contact
regarding the application, and describing
in detail the facts and circumstances that
the organization believes support a deter-
mination that the organization is subject
to a harassment campaign. The organiza-
tion may suspend compliance with re-
spect to any request for a copy of its docu-
ments based on its reasonable belief that
such request is part of a harassment cam-
paign, provided that the organization files
an application for a determination within
5 days from the day the organization first
suspends compliance with respect to a re-
quest that is part of the alleged campaign.
In addition, the organization may suspend
compliance with any request it reasonably
believes to be part of a harassment cam-
paign until it receives a response to its ap-
plication for a harassment campaign de-
termination.
(e) Effect of a harassment determina-
tion. If the appropriate key district direc-
tor determines that a tax-exempt org a n i-
zation is the subject of a harassment
campaign, such organization is not re-
quired to comply with any request for
copies that it reasonably believes is part
of the campaign. This determination may
be subject to other terms and conditions
set forth by the key district director. A
person (as defined in section 6652(c)-
4)(C)) shall not be liable for any penalty
under sections 6652(c)(1)(C), (D) or 6685
for failing to timely provide a copy of
documents in response to a request cov-
ered in a request for a harassment deter-
mination if the organization fulfills the re-
quest within 30 days of receiving a
determination from the key district direc-
tor that the organization is not subject to a
harassment campaign. Notwithstanding
the preceding sentence, if the key district
director further determines that the orga-
nization did not have a reasonable basis
for requesting a determination that it was
subject to a harassment campaign or rea-
sonable belief that a request was part of
the campaign, the person (as defined in
section 6652(c)(4)(C)) remains liable for
any penalties that result from not provid-
ing the copies in a timely fashion.
(f) E x a m p l e s .The provisions of this
section may be further illustrated by the
following examples.
Example 1.V, a tax-exempt organization, re-
ceives an average of 25 requests per month for
copies of its three most recent information returns.
In the last week of May,Vis mentioned in a national
news magazine story that discusses information con-
tained in V’s 1996 information return. From June 1
through June 30, 1997 Vreceives 200 requests for a
copy of its documents. Other than the sudden in-
crease in the number of requests for copies, there is
no other evidence to suggest that the requests are
part of an organized campaign to disrupt V’s opera-
tions. Although fulfilling the requests will place a
burden on V, the facts and circumstances do not
show that Vis subject to a harassment campaign.
Therefore, Vmust respond timely to each of the 200
requests it receives in June.
Example 2.Yis a tax-exempt organization that
receives an average of 10 requests a month for
copies of its annual information returns. From
March 1, 1997 to March 31, 1997, Yreceives 25 re-
quests for copies of its documents. Fifteen of the re-
quests come from individuals Yknows to be active
members of the board of organization X. In the past
X has opposed most of the positions and policies
that Yadvocates. None of the requesters have asked
for copies of documents from Yduring the past year.
Yhas no other information about the requesters. Al-
though the facts and circumstances show that some
of the individuals making requests are hostile to Y,
they do not show that the individuals have organized
a campaign that will place enough of a burden on Y
to disrupt its activities. Therefore, Ymust respond
to each of the 25 requests it receives in March.
Example 3.The facts are the same as in Example
2,except that during March 1997, Yreceives 100 re-
quests. In addition to the fifteen requests from
members of organization X’s board, 75 of the re-
quests are similarly worded form letters. Ydiscov-
ers that several individuals associated with X have
urged the X’s members and supporters, via the Inter-
net, to submit as many requests for a copy of Y’s an-
nual information returns as they can. The message
circulated on the Internet provides a form letter that
can be used to make the request. Both the appeal via
the Internet and the requests for copies received by
Ycontain hostile language. During the same year
but before the 100 requests were received, Yp r o-
vided copies of its annual information returns to the
headquarters of X. The facts and circumstances
show that the 75 form letter requests are coordinated
for the purpose of disrupting Y’s operations, and not
to collect information that has already been provided
to an association representing the requesters’inter-
ests. Thus, the fact and circumstances show that Yis
the subject of an organized harassment campaign.
To confirm that it may disregard the 90 requests that
constitute the harassment campaign, Ymust apply to
the district director for a determination. Ymay dis-
regard the 90 requests while the application is pend-
ing and after the determination is received. How-
e v e r, it must respond within the applicable time
limits to the 10 requests it received in March that
were not part of the harassment campaign.
Example 4.The facts are the same as in Example
3,except that Yreceives 5 additional requests from
representatives of the news media. In the past, some
of these representatives have published articles criti-
cizing Y. Some of these articles were hostile to Y.
N o r m a l l y, the Internal Revenue Service will not
consider a tax-exempt organization to be reasonable
under paragraph (d) of this section if it disregards re-
quests from members of the news media. There are
no additional facts that demonstrate that Ycould rea-
sonably believe the requests from the news media to
be part of X’s harassment campaign. Thus, although
Yis the subject of a harassment campaign, it must
respond within the applicable time limits to the 5 re-
quests that it received from representatives of the
news media.
(g) Effective date.This section is effec-
tive beginning 60 days after its publica-
tion as a final regulation in the Federal
Register.
Michael P. Dolan,
Acting Commissioner of
Internal Revenue.
(Filed by the Office of the Federal Register on Sep-
tember 25, 1997, 8:45 a.m., and published in the
issue of the Federal Register for September 26,
1997, 62 F.R. 50533)
October 20, 1997381997–42 I.R.B.

Foundations Status of Certain
Organizations
Announcement 97–104
The following organizations have
failed to establish or have been unable to
maintain their status as public charities or
as operating foundations. A c c o r d i n g l y,
grantors and contributors may not, after
this date, rely on previous rulings or des-
ignations in the Cumulative List of Orga-
nizations (Publication 78), or on the pre-
sumption arising from the filing of notices
under section 508(b) of the Code. T h i s
listing does notindicate that the organiza-
tions have lost their status as org a n i z a-
tions described in section 501(c)(3), eligi-
ble to receive deductible contributions.
Former Public Charities.The following
o rganizations (which have been treated as
o rganizations that are not private founda-
tions described in section 509(a) of the
Code) are now classified as private foun-
d a t i o n s :
Casella Houses Housing Development
Fund Corporation, Bronx, NY
Center for Community Harmony, Inc.,
North Ferrisburg, VT
Center for Cultural Diversity, Inc., New
York, NY
Center for Minority Professional
Development, Inc., New York, NY
Children First, Inc., Bristol, VT
Children’s Development Services, Inc.,
Leonia, NJ
Children’s Friends for Life Foundation,
Inc., Great Neck, NY
Children’s Museum of the Berkshires,
Inc., Pittsfield, MA
Childs Chance, Inc., East Freetown, MA
Friends of Hem Sheela Model School
Corporation, Springfield, MO
Medical Education Institute Inc.,
Madison, WI
Pacific Basin Research Institute,
Rockville, MD
Paul Hall Contemporary Dance Theatre,
Inc., New Haven, CT
Pearl M. Goodwin Charitable Trust,
Westbury, NY
Penfield Community Drug & Alcohol
Awareness Committee, Penfield, NY
The Penobscot Center for Marine
Studies, Inc., Rockland, ME
Penobscot Compact, Inc., Rockport, ME
People for People, Greenport, NY
Peruvian American Cultural Association
of Connecticut, Inc., East Hartford, CT
PHDF Corp Community Management
Program, Bronx, NY
Pious House of the Oratory of St. Philip
Neri, Inc., Plainville, CT
Planning and Visual Education
Partnership, Inc., New York, NY
Pragati, Cambridge, MA
Pride on the Hill Foundation, Inc.,
Medford, MA
Prime Community Development Corp.,
Springfield, MA
Professional Nursing Network, Kingston,
NY
Project for Global Harmony, Manchester,
NH
Project 40, Brooklyn, NY
Protestant Free Burial Society, Inc.,
Brooklyn, NY
Public Access to Sports Foundation, Inc.,
New York, NY
Puerto Rican Empowerment Partnership,
Inc., New York, NY
P.U.M.A., Pawtucket, RI
Putnam Childrens Discovery Center, Inc.,
Carmel, NY
Rachel’s Tears Community Improvement
and Service Corp., Bronx, NY
Rainbow Recycling, Inc., Brookline, MA
Rainforest Eagle Protection Project,
Incorporated, Goshen, NY
Ravena-Coeymans Youth Club, Inc.,
Ravena, NY
Recovering Child Foundation, Inc.,
Buffalo, NY
Reform Kibbutz Fund, Great Neck, NY
Refuah Health Center, Inc., Spring
Valley, NY
Reveneh Cultural and Educational Fund,
Inc., New York, NY
Revict Foundation for Lipid Biomedical
Research, Inc., Forest Hills, NY
RGATeam Fund, Inc., Reading, MA
Rhode Island Lesbian and Gay Pride
Committee, Inc., Providence, RI
Ride to Freedom, Inc., New York, NY
Rochester Friends for Fun, Inc.,
Rochester, MA
Ronald W. Dion Memorial Foundation,
Inc., Agawam, MA
Roosevelt Island Coalition, Inc., New
York, NY
The Route to Roots Corporation, New
York, NY
Rozmarin, New York, NY
Russian-American Performing Arts
Center, Inc., Boston, MA
Salem Lutheran Child Development Cen-
ter, Inc., Bridgeport, CT
Science & Technology Advisory Council
NYFoundation, Inc., New York, NY
Science Technology and Teaching, Inc.,
New York, NY
Seacoast Networking Support Group,
Inc., Portsmouth, NH
Shakespeare Hartford, Inc., Glastonbury,
CT
Shining Light Health Center, Inc.,
Providence, RI
Shorinji Kempo Association, Inc., New
York, NY
Sikh Volunteers of North America,
Pittsford, NY
Sindhi Association of North America,
Inc., Floral Park, NY
Sisters of Color, Inc., Albany, NY
Solid Ground Inc., Clinton Twsp, MI
Solutions to Overpopulation of Pets, Inc.,
Concord, NH
Sports in Schools Foundation, Inc., Long
Island City, NY
Staten Island Debs AA, Staten Island, NY
Sterling Charties, Worcester, MA
Stillwater Players Among Others, Inc.,
Stillwater, NY
Summer Youth Festival, Inc., Cos Cob,
CT
Summit Music Festival, Inc., Mount
Vernon, NY
Supporting Health Services, Inc.,
Lawrence, MA
Supporting People in Need, New York,
NY
Talented Seniors and Youth on the Move,
Inc., New York, NY
Theatricows, Inc., Hinesburg, VT
Thurman Thomas Foundation,
Cheektown, NY
The Training Trust, Inc., Coventry,
England
Tri-Community Widowed Persons
Services, Inc., Southbridge, MA
Trumball United Soccer Club, Inc.,
Trumbull, CT
Turkish Broadcasting Organization, Inc.,
White Plains, NY
Tuttle House, Inc., Dorchester, MA
Union Bridge Films, Inc., New York, NY
United Parents of Buffalo, Buffalo, NY
Urban Logic, Inc., New York, NY
U.S. Brownsville II HDFC, Brooklyn,
NY
Vatican Museums Foundation, New York,
NY
Veterans Park Restoration Committee,
Inc., South Boston, MA
Victory Lake Nursing Center, Inc., Hyde
1997–42 I.R.B.39October 20, 1997

Park, NY
Voices, Inc., Plainville, MA
Walworth Food Pantry, Walworth, NY
Warriors, Inc., New York, NY
Washington Library Association,
Washington, ME
Waterbury Community Access
Television, Inc., Waterbury, CT
Watermark Theater, Inc., Broomall, PA
Weare Youth Organization, Weare, NH
West Broadway Homeowners
Association, Providence, RI
Westerly Youth Soccer Association, Inc.,
Westerly, RI
Western New York Consortium, Buffalo,
NY
Weston Community Center Foundation,
Inc., Weston, CT
Where Do I Go From Here, Orange, MA
Williamstown Public Library Foundation,
Inc., Williamstown, MA
Woodchuck Theatre Company, Inc.,
Waterbury, VT
Woodstock Actors Theater, Inc.,
Kingston, NY
World Joint Federation Cadet Corps of
America, Inc., Bronx, NY
Zane Foundation, Inc., Branford, CT
Zichron Yehuda Foundation, Inc.,
Brooklyn, NY
If an organization listed above submits
information that warrants the renewal of its
classification as a public charity or as a pri-
vate operating foundation, the Internal
Revenue Service will issue a ruling or de-
termination letter with the revised classifi-
cation as to foundation status. Grantors and
contributors may thereafter rely upon such
ruling or determination letter as provided
in section 1.509(a)–7 of the Income Ta x
Regulations. It is not the practice of the
Service to announce such revised classifi-
cation of foundation status in the Internal
Revenue Bulletin.
Deletions From Cumulative List
of Organizations Contributions
to Which Are Deductible Under
Section 170 of the Code
Announcement 97–105
The names of organizations that no
longer qualify as organizations described
in section 170(c)(2) of the Internal Rev-
enue Code of 1986 are listed below.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an orga-
nization ceases to qualify under section
170(c)(2) if the organization has not
timely filed a suit for declaratory judg-
ment under section 7428 and if the con-
tributor (1) had knowledge of the revoca-
tion of the ruling or determination letter,
(2) was aware that such revocation was
imminent, or (3) was in part responsible
for or was aware of the activities or omis-
sions of the organization that brought
about this revocation.
If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on October 20,
1997, and would end on the date the court
first determines that the organization is
not described in section 170(c)(2) as more
particularly set forth in section 7428(c)-
(1). For individual contributors, the maxi-
mum deduction protected is $1,000, with
a husband and wife treated as one contrib-
utor.This benefit is not extended to any
individual who was responsible, in whole
or in part, for the acts or omissions of the
organization that were the basis for revo-
cation.
Tri-City American Legion Post 513
New Brighton, MN
Wesleyan Foundation of South Dakota
Rapid City, SD
October 20, 1997401997–42 I.R.B.

1997–42 I.R.B.41October 20, 1997
Under title 31 of the Code of Federal
Regulations, section 10.76, the Director
of Practice is authorized to immediately
suspend from practice before the Internal
Revenue Service any practitioner who,
within five years, from the date the expe-
dited proceeding is instituted, (1) has had
a license to practice as an attorney, certi-
fied public accountant, or actuary sus-
pended or revoked for cause; or (2) has
been convicted of any crime under title 26
of the United States Code or, of a felony
under title 18 of the United States Code
involving dishonesty or breach of trust.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or suspended from practice
before the Internal Revenue Service.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled ac-
tuaries to identify practitioners under expe-
dited suspension from practice before the
Internal Revenue Service, the Director of
Practice will announce in the Internal Rev-
enue Bulletin the names and addresses of
practitioners who have been suspended
from such practice, their designation as at-
t o r n e y, certified public accountant, en-
rolled agent, or enrolled actuary, and date
or period of suspension. This announce-
ment will appear in the weekly Bulletin at
the earliest practicable date after such ac-
tion and will continue to appear in the
weekly Bulletins for five successive weeks
or for as many weeks as is practicable for
each attorney, certified public accountant,
enrolled agent, or enrolled actuary so sus-
pended and will be consolidated and pub-
lished in the Cumulative Bulletin.
The following individuals have been
placed under suspension from practice be-
fore the Internal Revenue Service by virtue
of the expedited proceeding provisions of
the applicable regulations:
Announcement of the Expedited Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
B e f o re the Internal Revenue Serv i c e
NameAddressDesignationDate of Suspension
Booker,William G.Winston-Salem, NCCPAIndefinite from June 12, 1997
Acevado, GustavoLaredo, TXAttorneyIndefinite from July 23, 1997
Piotti, Wayne H.Homer, NYCPAIndefinite from July 23, 1997
Burley, Franklin R.Monroe, LACPAIndefinite from July 23, 1997
Kent, William F.Winston-Salem, NCCPAIndefinite from July 23, 1997
Levine, JackPhoenix, AZAttorneyIndefinite from July 23, 1997
Kapral, Stephen M.Richmond, VAAttorneyIndefinite from July 23, 1997
Bell, Abraham E.St. Louis, MOCPAIndefinite from July 30, 1997
Jackson, PaulBurley, IDCPAIndefinite from September 11, 1997
Clay, HenryNew York, NYAttorneyIndefinite from September 11, 1997
Cooley, DonaldSpringfield, MOAttorneyIndefinite from September 11, 1997
Duke, Charla R.Oakland, CAAttorneyIndefinite from September 11, 1997
Devins, GeorgeMunsey Park, NYCPAIndefinite from September 11, 1997
Williams, Ronald A.Doylestown, PAEnrolled AgentIndefinite from September 11, 1997
Under 31 Code of Federal Regulations,
Part 10, an attorney, certified public ac-
countant, enrolled agent, or enrolled ac-
t u a r y, in order to avoid the institution or
conclusion of a proceeding for his disbar-
ment or suspension from practice before
the Internal Revenue Service, may off e r
his consent to suspension from such prac-
tice. The Director of Practice, in his dis-
cretion, may suspend an attorney, certi-
fied public accountant, enrolled agent, or
enrolled actuary in accordance with the
consent off e r e d .
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Ser-
vice matter from directly or indirectly em-
ploying, accepting assistance from, being
employed by, or sharing fees with, any
practitioner disbarred or suspended from
practice before the Internal Revenue Ser-
vice.
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled
actuaries to identify practitioners under
consent suspension from practice before the
Internal Revenue Service, the Director
of Practice will announce in the Internal
Revenue Bulletin the names and ad-
dresses of practitioners who have been
Announcement of the Consent Vo l u n t a ry Suspension of Attorn e y s ,
C e rtified Public Accountants, Enrolled Agents, and Enrolled Actuaries
F rom Practice Before the Internal Revenue Serv i c e

October 20, 1997421997–42 I.R.B.
NameAddressDesignationDate of Suspension
Weksler, Mark R.Arlington Heights, ILCPAJune 16, 1997 to June 15, 2000
Womble, Bill R. Dallas, TXAttorneyIndefinite from June 19, 1997
Robinson II, VaughnMidland, TXCPAIndefinite from June 19, 1997
Kim, Kwang W.Schaumburg, ILCPAJune 30, 1997 to December 29, 1997
Tymas, George M.Russellton, PACPAJuly 1, 1997 to February 28, 1999
Rattet, Robert L.New Rochelle, NYAttorneyJuly 26, 1997 to June 25, 1998
Noles, R. LeonN. Little Rock, ARCPAJuly 30, 1997 to October 29, 1997
Harbin, Glenn E.Bakersfield, CACPAJuly 31, 1997 to December 30, 1998
Harms, John G.Lemont, PACPAAugust 1, 1997 to November 30, 1997
Lewis, Craig S.Savannah, GACPAAugust 1, 1997 to July 31, 1998
Terranova, Michael P.Lake Charles, LACPAAugust 7, 1997 to May 6, 1998
Frantz, Barbara A. Pontiac, ILAttorneyAugust 8, 1997 to July 31, 1999
Smith, Glen L.Edina, MNAttorneyAugust 9, 1997 to November 8, 1997
Bayus Sr., Gerald A.Hubbard, OHCPAAugust 11, 1997 to July 10, 1998
Winton, D. MichaelClovis, NMEnrolled AgentAugust 15, 1997 to November 14, 1997
McNabb, GeraldWhite Bear, MNAttorneyAugust 22, 1997 to January 21, 2000
Ness, Stanley L.Minneapolis, MNCPAAugust 25, 1997 to February 24, 1998
Culmer,Thomas A.Devils Lake, NDCPASeptember 1, 1997 to November 30, 1997
Ziskind, ShermanDunlevy, PACPASeptember 1, 1997 to February 28, 1999
Huston, James L.Kingman, AZCPASeptember 1, 1997 to December 31, 1997
Fulthorpe, Douglas R.St. Petersburg, FLCPASeptember 1, 1997 to August 30, 1998
Suszko, Richard J.La Mesa, CAEnrolled AgentSeptember 1, 1997 to August 31, 1999
Bromagen, Kent E.Dayton, OHCPASeptember 1, 1997 to February 28, 2000
Shawhan, David W.Xenia, OHCPASeptember 1, 1997 to August 31, 1999
Kennedy Jr., JosephSanta Barbara, CAEnrolled AgentSeptember 1, 1997 to May 31, 1998
Brummet, Richard E.Hinsdale, ILCPASeptember 3, 1997 to January 2, 1998
Pollard, E. DwainIdabell, OKCPASeptember 4, 1997 to August 3, 1999
Tamminga, Roland R.Belmont, NHAttorneySeptember 5, 1997 to December 4, 1997
Ayala, SimonOxnard, CAEnrolled AgentIndefinite from September 19, 1997
Balmer,Alan J.Fairfield, IACPASeptember 30, 1997 to August 29, 1999
Fox, EugeneRockville Centre, NYCPAOctober 1, 1997 to March 31, 1998
Sanford, Paul L.Avon, CTCPANovember 1, 1997 to July 31, 1997
Glemann, Richard P.Jacksonville Beach, FLCPANovember 1, 1997 to October 31, 1999
Rubey, Patrick J.Chicago, ILCPANovember 1, 1997 to January 31, 1999
Coverdale Jr., AlphonsoPhiladelphia, PAEnrolled AgentDecember 1, 1997 to November 30, 2000
suspended from such practice, their desig-
nation as attorney, certified public ac-
countant, enrolled agent, or enrolled actu-
ary, and date or period of suspension. This
announcement will appear in the weekly
Bulletin at the earliest practicable date
after such action and will continue to ap-
pear in the weekly Bulletins for five suc-
cessive weeks or for as many weeks as is
practicable for each attorney, certified
public accountant, enrolled agent, or en-
rolled actuary so suspended and will be
consolidated and published in the Cumu-
lative Bulletin.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue Ser-
v i c e :

1997–42 I.R.B.43October 20, 1997
Under Section 330, Title 31 of the United
States Code, the Secretary of the Tr e a s u r y,
after due notice and opportunity for hearing,
is authorized to suspend or disbar from prac-
tice before the Internal Revenue Service any
person who has violated the rules and regu-
lations governing the recognition of attor-
neys, certified public accountants, enrolled
agents, or enrolled actuaries to practice be-
fore the Internal Revenue Service.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or under suspension from
practice before the Internal Revenue Ser-
v i c e .
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled ac-
tuaries to identify such disbarred or sus-
pended practitioners, the Director of
Practice will announce in the Internal Rev-
enue Bulletin the names and addresses of
practitioners who have been disbarred or
suspended from such practice, their desig-
nation as attorney, certified public accoun-
tant, enrolled agent, or enrolled actuary, and
date of disbarment or period of suspension.
This announcement will appear in the
weekly Bulletin for five successive weeks
or for as many weeks as is practicable for
each attorney, certified public accountant,
enrolled agent, or enrolled actuary so sus-
pended and will be consolidated and pub-
lished in the Cumulative Bulletin.
After due notice and opportunity for
hearing before an administrative law judge,
the following individuals have been sus-
pended from further practice before the In-
ternal Revenue Service:
Announcement of the Suspension of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
B e f o re the Internal Revenue Serv i c e
NameAddressDesignationDate of Suspension
Makos, DeborahGreen Bay,WIEnrolled AgentJune 20, 1997 to May 19, 2000
Friberg, John P.Milwaukee, WICPAJuly 20, 1997 to June 19, 2001
Under Section 330, Title 31 of the United
States Code, the Secretary of the Tr e a s u r y,
after due notice and opportunity for hearing,
is authorized to suspend or disbar from prac-
tice before the Internal Revenue Service any
person who has violated the rules and regu-
lations governing the recognition of attor-
neys, certified public accountants, enrolled
agents, or enrolled actuaries to practice be-
fore the Internal Revenue Service.
Attorneys, certified public accountants,
enrolled agents, and enrolled actuaries are
prohibited in any Internal Revenue Service
matter from directly or indirectly employ-
ing, accepting assistance from, being em-
ployed by, or sharing fees with, any practi-
tioner disbarred or under suspension from
practice before the Internal Revenue Ser-
v i c e .
To enable attorneys, certified public ac-
countants, enrolled agents, and enrolled ac-
tuaries to identify such disbarred or sus-
pended practitioners, the Director of
Practice will announce in the Internal Rev-
enue Bulletin the names and addresses of
practitioners who have been disbarred or
suspended from such practice, their desig-
nation as attorney, certified public accoun-
tant, enrolled agent, or enrolled actuary, and
the date of disbarment or period of suspen-
sion. This announcement will appear in the
weekly Bulletin for five successive weeks
or for as many weeks as is practicable for
each attorney, certified public accountant,
enrolled agent, or enrolled actuary so sus-
pended and will be consolidated and pub-
lished in the Cumulative Bulletin.
After due notice and opportunity for
hearing before an administrative law judge,
the following individuals have been dis-
barred from further practice before the In-
ternal Revenue Service:
Announcement of the Disbarment of Attorneys, Certified Public
Accountants, Enrolled Agents, and Enrolled Actuaries From Practice
B e f o re the Internal Revenue Serv i c e
NameAddressDesignationEffective Date
Hoyt III, Walter J.Burns, OREnrolled AgentJuly 13, 1997
Lu, John S.New York, NYEnrolled AgentJuly 21, 1997
McCue, William T.Glen Rock, NJAttorneyJuly 21, 1997
Foster, Dennis S.Pittsburgh, PACPASeptember 8, 1997

October 20, 1997441997–42 I.R.B.
Revenue rulings and revenue pro c e d u re s
( h e reinafter re f e rred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
e f f e c t :
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. T h u s ,
if an earlier ruling held that a principle
applied to A, and the new ruling holds
that the same principle also applies to B,
the earlier ruling is amplified. (Compare
with m o d i f i e d, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
D i s t i n g u i s h e ddescribes a situation
where a ruling mentions a previously
published ruling and points out an essen-
tial difference between them.
Modified is used where the substance
of a previously published position is
being changed. Thus, if a prior ruling
held that a principle applied to Abut not
to B, and the new ruling holds that it ap-
plies to both Aand B, the prior ruling is
modified because it corrects a published
position. (Compare with amplified a n d
c l a r i f i e d, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used
in a ruling that lists previously published
rulings that are obsoleted because of
changes in law or regulations. Ar u l i n g
may also be obsoleted because the sub-
stance has been included in regulations
subsequently adopted.
Revoked describes situations where the
position in the previously published rul-
ing is not correct and the correct position
is being stated in the new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the
new ruling does more than restate the
substance of a prior ruling, a combination
of terms is used. For example, m o d i f i e d
and superseded describes a situation
where the substance of a previously pub-
lished ruling is being changed in part and
is continued without change in part and it
is desired to restate the valid portion of
the previously published ruling in a new
ruling that is self contained. In this case
the previously published ruling is first
modified and then, as modified, is super-
s e d e d .
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and
that list is expanded by adding further
names in subsequent rulings. After the
original ruling has been supplemented
several times, a new ruling may be pub-
lished that includes the list in the original
ruling and the additions, and supersedes
all prior rulings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current use and for-
merly used will appear in material published in the
Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C.—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contribution Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign Corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statements of Procedral Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Definition of Terms

1997–42 I.R.B.45October 20, 1997
Numerical Finding List
1
Bulletins 1997–27 through 1997–41
Announcements:
97–61, 1997–29 I.R.B. 13
97–67, 1997–27 I.R.B. 37
97–68, 1997–28 I.R.B. 13
97–69, 1997–28 I.R.B. 13
97–70, 1997–29 I.R.B. 14
97–71, 1997–29 I.R.B. 15
97–72, 1997–29 I.R.B. 15
97–73, 1997–30 I.R.B. 86
97–74, 1997–31 I.R.B.16
97–75, 1997–32 I.R.B. 28
97–76, 1997–32 I.R.B. 28
97–77, 1997–33 I.R.B. 58
97–78, 1997–34 I.R.B. 11
97–79, 1997–35 I.R.B. 8
97–80, 1997–34 I.R.B. 12
97–81, 1997–34 I.R.B. 12
97–82, 1997–34 I.R.B. 12
97–83, 1997–34 I.R.B. 13
97–84, 1997–34 I.R.B. 13
97–85, 1997–35 I.R.B. 8
97–86, 1997–35 I.R.B. 9
97–87, 1997–35 I.R.B. 9
97–88, 1997–35 I.R.B. 9
97–89, 1997–36 I.R.B. 10
97–90, 1997–36 I.R.B. 10
97–91, 1997–37 I.R.B. 25
97–92, 1997–37 I.R.B. 26
97–93, 1997–36 I.R.B. 11
97–94, 1997–36 I.R.B. 12
97–95, 1997–36 I.R.B. 12
97–96, 1997–39 I.R.B.15
97–97, 1997–38 I.R.B. 22
97–98, 1997–39 I.R.B. 15
97–99, 1997–40 I.R.B. 7
97–100, 1997–40 I.R.B. 8
97–101, 1997–41 I.R.B. 13
97–102, 1997–41 I.R.B. 15
97–103, 1997–41 I.R.B. 16
Court Decisions:
2061, 1997–31 I.R.B. 5
2062, 1997–32 I.R.B. 8
Delegation Orders:
97 (Rev. 34), 1997–41 I.R.B. 14
172 (Rev. 5), 1997–28 I.R.B. 6
Notices:
97–37, 1997–27 I.R.B. 4
97–38, 1997–27 I.R.B. 8
97–39, 1997–27 I.R.B. 8
97–40, 1997–28 I.R.B. 6
97–41, 1997–28 I.R.B. 6
97–42, 1997–29 I.R.B. 12
97–43, 1997–30 I.R.B. 9
97–44, 1997–31 I.R.B. 15
97–45, 1997–33 I.R.B. 7
97–46, 1997–34 I.R.B. 10
97–47, 1997–35 I.R.B. 5
97–48, 1997–35 I.R.B. 5
97–49, 1997–36 I.R.B. 8
97–50, 1997–37 I.R.B. 21
97–51, 1997–38 I.R.B. 20
97–52, 1997–38 I.R.B. 20
97–53, 1997–40 I.R.B. 6
Notices–Continued
97–54, 1997–41 I.R.B. 7
97–55, 1997–40 I.R.B. 6
Railroad Retirement Quarterly Rate:
1997–28 I.R.B. 5
Proposed Regulations:
REG–104893–97, 1997–29 I.R.B. 13
REG–105160–97, 1997–37 I.R.B. 22
REG–106043–97, 1997–37 I.R.B. 24
REG–107644–97, 1997–32 I.R.B. 24
REG–208151–91, 1997–38 I.R.B. 21
Revenue Procedures:
97–32, 1997–27 I.R.B. 9
97–32A, 1997–34 I.R.B. 10
97–33, 1997–30 I.R.B. 10
97–34, 1997–30 I.R.B.14
97–35, 1997–33 I.R.B. 11
97–36, 1997–33 I.R.B. 14
97–37, 1997–33 I.R.B. 18
97–38, 1997–33 I.R.B. 43
97–39, 1997–33 I.R.B. 48
97–40, 1997–33 I.R.B. 50
97–41, 1997–33 I.R.B. 5
97–42, 1997–33 I.R.B. 57
97–43, 1997–39 I.R.B. 12
97–44, 1997–41 I.R.B. 8
97–45, 1997–41 I.R.B. 10
Revenue Rulings:
97–27, 1997–27 I.R.B. 4
97–28, 1997–28 I.R.B. 4
97–29, 1997–28 I.R.B. 4
97–30, 1997–31 I.R.B.12
97–31, 1997–32 I.R.B.4
97–32, 1997–33 I.R.B. 4
97–33, 1997–34 I.R.B. 4
97–34, 1997–34 I.R.B. 14
97–35, 1997–35 I.R.B. 4
97–36, 1997–36 I.R.B. 5
97–37, 1997–37 I.R.B.15
97–38, 1997–38 I.R.B.14
97–39, 1997–39 I.R.B. 4
97–40, 1997–39 I.R.B. 8
97–41, 1997–40 I.R.B. 4
97–42, 1997–41 I.R.B. 4
Treasury Decisions:
8722, 1997–29 I.R.B. 4
8723, 1997–30 I.R.B. 4
8724, 1997–36 I.R.B. 4
8725, 1997–37 I.R.B. 16
8726, 1997–34 I.R.B. 7
8727, 1997–34 I.R.B. 5
8728, 1997–37 I.R.B. 4
8729, 1997–38 I.R.B. 4
8730, 1997–38 I.R.B. 16
1
Acumulative list of all revenue rulings, revenue
procedures, Treasury decisions, etc., published in
Internal Revenue Bulletins 1997–1 through 1997–26
will be found in Internal Revenue Bulletin 1997–27,
dated July 7, 1997.

October 20, 1997461997–42 I.R.B.
Finding List of Current Action on
Previously Published Items
1
Bulletins 1997–27 through 1997–41
*Denotes entry since last publication
Revenue Procedures:
96–36
Superseded by
97–34, 1997–30 I.R.B. 14
96–42
Superseded by
97–27, 1997–27 I.R.B. 9
97–32
Modified and amplified by
97–32A, 1997–34 I.R.B. 10
Revenue Rulings:
89–42
Supplemented by
97–31, 1997–32 I.R.B. 4
93–76
Clarified, modified, partially
obsoleted, and superceded by
97–39, 1997–39 I.R.B 4
94–7
Clarified, modified, partially
obsoleted, and superceded by
97–39, 1997–39 I.R.B 4
1
Acumulative finding list for previously published
items mentioned in Internal Revenue Bulletins
1997–1 through 1997–26 will be found in Internal
Revenue Bulletin 1997–27, dated July 7, 1997.

1997–42 I.R.B.47October 20, 1997

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW,Washington, DC
20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Superintendent of Documents
U.S. Government Printing Office
Washington, DC 20402
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
GPO
Permit No. G–26

INTERNAL REVENUE BULLETIN
The Introduction on page 3 describes the purpose and content of this publication. The weekly Internal Revenue Bulletin is sold
on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superintendent of
Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis and are not included as part of the subscription to the Internal Revenue Bulletin. Subscribers to the week-
ly Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, U.S. Government Printing Office, Washington, DC 20402. Please
allow two to six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE
INTERNAL REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.ustreas.gov) or write to the IRS Bulletin Unit, T:FP:F:CD, Room 5560, 1111 Constitution Avenue NW,Washington, DC
20224. You can also leave a recorded message 24 hours a day, 7 days a week at 1–800–829–9043.
Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
First Class Mail
Postage and Fees Paid
IRS
Permit No. G–48