Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Rules and Regulations 64147
Authority: 49 U.S.C. 106(g), 40103, 40113, DEPARTMENT OF THE TREASURY temporary regulation but are discussed
40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– in this preamble. Substantive and
1963 Comp., p. 389. Internal Revenue Service administrative rules related to
termination, loss of exempt status, and
§ 71.1 [Amended] 26 CFR Part 1 reinstatement will be considered in
■ 2. The incorporation by reference in [TD 9366] separate guidance and other
14 CFR part 71.1 of the Federal Aviation publications.
RIN 1545–BG38 Prior to the PPA 2006, either by
Administration Order 7400.9R, Airspace
operation of law or through
Designations and Reporting Points, Notification Requirement for Tax- discretionary exceptions, certain
signed August 15, 2007, and effective Exempt Entities Not Currently organizations were not required to file
September 15, 2007, is amended as Required to File an information return (for example,
follows:
AGENCY: Internal Revenue Service (IRS),
Form 990, ‘‘Return of Organization
Paragraph 6005. Class E airspace areas Treasury.
Exempt From Income Tax’’). Section
extending upward from 700 feet or more 6033(a)(3)(A)(ii) provided a mandatory
ACTION: Temporary regulations.
above the surface of the earth. exception from filing by certain
* * * * * SUMMARY: This document contains organizations (other than private
temporary regulations describing the foundations) described in section
ANM MT E5 Helena, MT [Modified] time and manner in which certain tax- 6033(a)(3)(C), whose annual gross
Helena Regional Airport, MT exempt organizations not currently receipts were normally not more than
(Lat. 46°36′25″ N., long. 111°58′58″ W.) required to file an annual information $5,000. Section 6033(a)(3)(B) provided a
Helena VORTAC return under section 6033(a)(1) are discretionary exception under which
(Lat. 46°36′25″ N., long. 111°57′13″ W.) required to submit an annual electronic the Secretary relieved certain other
That airspace extending upward from 700 notice including certain information organizations from filing. Exercising this
feet above the surface within a 10.5-mile required by section 6033(i)(1)(A) discretionary authority, the IRS
radius of the Helena VORTAC, and within through (F). The text of the temporary published Announcement 82–88 (1982–
5.3 miles northwest and 3.5 miles southeast regulations also serves as the text of the 25 IRB 23 (June 21, 1982)), which
of the Helena VORTAC 104° radial extending proposed regulations set forth in the provided an exception for organizations
from the 10.5-mile radius to 18.3 miles notice of proposed rulemaking on this whose annual gross receipts were not
southeast of the Helena VORTAC, and within subject in the Proposed Rules section in normally in excess of $25,000 from
4.0 miles either side of Helena VORTAC 282° this issue of the Federal Register. filing Form 990 for tax years ending on
radial extending from the 10.5-mile radius to or after December 31, 1982. The new
DATES: Effective Date: These regulations
25 miles west of the Helena VORTAC; that electronic notice provision of section
are effective on November 15, 2007.
airspace extending upward from 1,200 feet 6033(i)(1) applies to organizations
Applicability Date: These regulations
above the surface within a 20.9-mile radius whose gross receipts are low enough
are applicable to taxable years beginning
of the Helena VORTAC, and within 5.3 miles that they are not required to file
after December 31, 2006.
south and 10 miles north of the Helena information returns under sections
FOR FURTHER INFORMATION CONTACT: (a)(3)(A)(ii) or (a)(3)(B). The substance of
VORTAC 272° radial extending from the
Monice Rosenbaum at (202) 622–6070 this electronic notice is discussed below
20.9-mile radius to 39.2 miles west of the
(not a toll-free number). in this preamble. See
VORTAC, and within 13.5 miles west and
parallel to the Helena VORTAC 352° radial SUPPLEMENTARY INFORMATION: § 601.601(d)(2)(ii)(b).
extending from the 20.9-mile radius to 27 Background Section 6033(i)(2) provides that
miles north of the VORTAC, and within 4.3 organizations required to submit annual
miles east and 7.9 miles west of the Helena
This document contains amendments electronic notification are also required
VORTAC 023° radial extending from the to the Income Tax Regulations (26 CFR to provide notice of termination upon
20.9-mile radius to 31.4 miles northeast of part 1) under section 6033(i)(1) relating the termination of the existence of the
the VORTAC, and within 5.3 miles south and to the notification requirement for organization. The time and manner of
8.3 miles north of the Helena VORTAC 102° entities not currently required to file an the notice of termination is not specified
radial extending from the 20.9-mile radius to annual information return under section in the statute.
24.8 miles east of the VORTAC. 6033(a)(1). Section 6033(i)(1) was added Section 6033(j), added by section
by section 1223(a) of the Pension 1223(b) of the PPA 2006, provides that
* * * * * Protection Act of 2006, Public Law 109– if an organization required to file an
Issued in Seattle, Washington, on October 208 (120 Stat. 1090 (2006)) (PPA 2006), annual information return under section
18, 2007. effective for annual periods beginning 6033(a)(1) or submit an electronic notice
Clark Desing, after 2006. Section 6033(i)(1) requires under section 6033(i) fails to provide
Manager, System Support Group, Western the Treasury Secretary to promulgate the required return or notice for three
Service Center. regulations that describe the time and consecutive years, the organization’s
[FR Doc. E7–22205 Filed 11–14–07; 8:45 am] manner in which certain tax-exempt tax-exempt status is revoked. The
organizations not currently required to revocation is effective from the date the
BILLING CODE 4910–13–P
file an annual information return are to Secretary determines was the last day
submit an annual electronic notice the organization could have timely filed
including information set forth in the third required information return or
section 6033(i)(1)(A) through (F). submitted the notice. Any organization
Section 1223 of the PPA 2006 also whose tax-exempt status is revoked
contains new rules for termination, loss under section 6033(j)(1) must apply in
of exempt status, and reinstatement. order to obtain reinstatement of that
These new rules do not require status regardless of whether such
regulations for implementation and are organization was originally required to
therefore not addressed in this make an application for tax-exempt
64148 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Rules and Regulations
status. If, upon application for will direct all mailings to this address. or determine tax-exempt status.
reinstatement of tax-exempt status, an See § 601.601(d)(2)(ii)(b). Moreover, the electronic notification
organization can show to the By submitting the annual electronic does not purport to be a return. The
satisfaction of the Secretary evidence of notification described in this paragraph, electronic notification simply identifies
reasonable cause for the failure to file an organization acknowledges that it is an organization and indicates the basis
the information return or submit the not required to file a return under for it not having to file an information
notice, the organization’s tax-exempt section 6033(a) because its gross return under section 6033(a)(1). Because
status may, in the discretion of the receipts are not normally in excess of the electronic notification is not a tax or
Secretary, be reinstated retroactive to $25,000. In order to make this information return, submission of the
the date of revocation. determination, the organization must notification does not trigger the period
Section 7428(b), regarding limitations keep records that enable it to calculate of limitations for assessment under
on declaratory judgments relating to its gross receipts. All organizations are section 6501(g)(2). However, the filing
status and classification of certain tax- required to maintain records under of a complete Form 990 or Form 990–
exempt organizations, was amended by section 6001. These records will provide EZ, as noted in this preamble, will start
section 1223(c) of the PPA 2006 and evidence of the continuing basis for the the period of limitations for assessment
provides that no action may be brought organization’s exemption from the filing under section 6501(g)(2). Furthermore,
under section 7428 with respect to any requirements under section 6033(a)(1). there is no monetary penalty for failure
The temporary regulations restate that to file under section 6033(i). To further
revocation of tax-exempt status
an organization, even though relieved distinguish the electronic notification
described in section 6033(j)(1), for
from filing a return under section from a tax or information return, the
failure to provide the required return
6033(a), is still required under § 1.6033– temporary regulations provide that the
under section 6033(a)(1) or notice under 2(i) and (j) to inform the IRS in writing
section 6033(i) for three consecutive electronic notification is submitted to
of any changes in the organization’s the IRS, rather than filed or furnished,
years. character, operation, or purpose; the terms used in connection with tax
Section 6652(c)(1)(E), added by provide additional information; and file and information returns.
section 1233(d) of the PPA 2006, other returns of information and The notifications required by section
provides that there is no monetary unrelated business tax returns. 6033(i) are subject to public disclosure
penalty for failure to submit any notice Organizations are also reminded that if and inspection. See section 6104
required under section 6033(i). the organization is required to file an (generally applicable to Form 990
Explanation of Provisions unrelated business tax return, Form information returns). Further, this
990–T, ‘‘Exempt Organization Business provision does not affect any other
Annual Electronic Notice Requirements Income Tax Return,’’ the filing of the obligations an organization may have to
and Other General Requirements Form 990–T does not relieve the file other required information and or
Related to Maintaining Tax-Exempt organization from the requirement of tax returns, or penalties for failure to file
Status submitting the annual electronic such returns.
Section 6033(i)(1) provides that the notification under section 6033(i).
The statute requires that the annual Form 990–N, Electronic Notification (e-
annual notification, in electronic form, Postcard) For Tax-Exempt
notification be submitted electronically.
shall set forth: (A) The legal name of the Organizations Not Required to File
There is no provision in the temporary
organization, (B) any name under which Form 990 or 990–EZ
regulations for any paper notification.
the organization operates or does Form 990–N, ‘‘Electronic Notification
However, if an organization that is
business, (C) the organization’s mailing (e-Postcard) for Tax-Exempt
required to submit an annual electronic
address and Internet Web site address (if Organizations Not Required To File
notification files a complete Form 990
any), (D) the organization’s taxpayer Form 990 or 990–EZ,’’ has been
or Form 990EZ, ‘‘Short Form Return of
identification number, (E) the name and developed to satisfy the requirements of
Organization Exempt From Income
address of a principal officer, and (F) section 6033(i)(1). The IRS plans to
Tax,’’ the annual notification
evidence of the continuing basis for the deliver a simple, Internet based process
requirement of section 6033(i) shall be
organization’s exemption from the filing for submitting the e-Postcard, Form
deemed satisfied. The annual
requirements under section 6033(a)(1). 990–N. It is anticipated that
notification requirement is not satisfied
The temporary regulations also provide organizations that do not have access to
if the Form 990 or Form 990–EZ
that additional information necessary to a computer can use their local public
contains only those items of information
process the notification may be library to file the e-Postcard. Because
that would have been required by
required. For example, an organization the system will be Internet based,
submitting the notification in electronic
will be required to state the tax period organizations should not need to
form.
for which it is submitting the electronic The notification shall be submitted on purchase software to file the e-Postcard.
notification. or before the 15th day of the fifth The temporary regulations provide that
The mailing address required by calendar month following the close of the annual electronic notification shall
section 6033(i)(1)(C) and submitted in the period for which the notification is be submitted in accordance with
the annual electronic notification shall required to be submitted. Thus, an instructions and publications, including
be the organization’s last known address organization with an accounting period those provided at the IRS Web site for
as provided by § 301.6212–2(a) of the ending December 31, 2007, is required exempt organizations.
Regulations on Procedure and to submit the annual notification by
Administration. This last known Organizations Required To File Returns
May 15, 2008.
address may be updated as provided or Submit Electronic Notice
under § 301.6212–2 or by clear and Annual Electronic Notification Is Not a In general, every organization exempt
concise notification as described in Rev. Return from taxation under section 501(a) that
Proc. 2001–18 (2001–1 CB 708). The IRS The electronic notification is not a is not required to file a return described
will use this last known address as the return because it does not contain in § 1.6033–2(a)(2), other than an
organization’s address of record and sufficient data to calculate tax liability organization described in section 401(a)
Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Rules and Regulations 64149
(qualified pension, profit-sharing, and not required to file Form 990–BL but is under section 501(a) that is not required
stock bonus plans) or section 501(d) required to submit an electronic to file a return described in § 1.6033–
(religious and apostolic organizations), notification. A section 509(a)(3) 2(a)(2), other than an organization
is required to submit an annual supporting organization of a religious described in section 401(a) or 501(d),
electronic notice under section 6033(i). organization that normally has gross shall submit annually, in electronic
However, a organization that is required receipts of $5,000 or less is not required form, a notification setting forth the
to file or files an annual information to file Form 990 or Form 990–EZ but is items described in paragraph (b) of this
return under section 6033(a)(1) should required to submit an electronic section and such other information as
not submit an annual electronic notification. may be prescribed in the instructions
notification under section 6033(i). This and publications issued with respect to
includes any organization included in a Special Analyses
the notification.
group return as provided in § 1.6033–2 It has been determined that this (b) Organizations not required to
for that year; all private foundations Treasury decision is not a significant submit annual notification. (1) An
required to file Form 990–PF, ‘‘Return of regulatory action as defined in organization exempt from taxation
Private Foundation or Section 4947(a)(1) Executive Order 12866. Therefore, a under section 501(a) that is required to
Nonexempt Charitable Trust Treated as regulatory assessment is not required. It file or files an annual information return
a Private Foundation’’; section 509(a)(3) also has been determined that section under section 6033(a)(1) shall not
supporting organizations required to file 553(b) of the Administrative Procedure submit an annual notification under
Form 990 or Form 990–EZ; a section Act (5 U.S.C. chapter 5) does not apply section 6033(i). This includes the
501(c)(21) black lung trust required to to these regulations. For the following types of organizations:
file Form 990–BL, ‘‘Information and applicability of the Regulatory (i) Any organization included in a
Initial Excise Tax Return for Black Lung Flexibility Act, please refer to the cross- group return for that year under
Benefit Trusts and Certain Related reference notice of proposed rulemaking § 1.6033–2(d).
Person’’; and any organization that is published elsewhere in this issue of the (ii) All private foundations required to
required to file or files an annual Federal Register. Pursuant to section file under § 1.6033–2(a)(2)(i) Form 990–
information return under section 7805(f) of the Internal Revenue Code, PF, ‘‘Return of Private Foundation or
6033(a)(1) on any other form prescribed these regulations have been submitted Section 4947(a)(1) Nonexempt
by the IRS for that purpose. to the Chief Counsel for Advocacy of the Charitable Trust Treated as a Private
Neither annual information returns Small Business Administration for Foundation.’’
under section 6033(a)(1) nor annual comment on their impact on small (iii) Section 509(a)(3) supporting
electronic notices under section 6033(i) business. organizations required to file under
are required to be filed or submitted by § 1.6033–2(a)(2)(i) Form 990, ‘‘Return of
an organization exemption from Drafting Information Organization Exempt From Income
taxation under section 501(a) that is a The principal author of these Tax,’’ or Form 990–EZ, ‘‘Short Form
church, an interchurch organization of regulations is Monice Rosenbaum, of the Return or Organization Exempt From
local units of a church, a convention or Office of Division Counsel/Associate Income Tax.’’
association of churches, or an integrated Chief Counsel (Tax Exempt and (iv) A section 501(c)(21) black lung
auxiliary of a church (as defined in Government Entities). However, other trust required to file under § 1.6033–
§ 1.6033–2(h)); an exclusively religious personnel from the IRS and the Treasury 2(a)(2)(i) Form 990–BL.
activity of any religious order; a mission Department participated in their (v) Any organization that is required
society sponsored by or affiliated with development. to file or files an annual information
one or more churches or church return under section 6033(a)(1) on any
denominations, more than half of the List of Subjects 26 CFR Part 1 other form prescribed by the Internal
activities of which society are Income taxes, Reporting and Revenue Service for that purpose.
conducted in, or directed at persons in, recordkeeping requirements. (2) An organization exempt from
foreign countries; an educational taxation under section 501(a) that is not
organization (below college level) that is Amendments to the Regulations required to file a return under section
described in section 170(b)(1)(A)(ii), ■Accordingly, 26 CFR part 1 is 6033(a)(1) is also not required to submit
that has a program of a general academic amended as follows: an annual notification under section
nature, and that is affiliated (within the 6033(i). This includes the following
meaning of § 1.6033–2(h)(2)) with a PART 1—INCOME TAXES types of organizations:
church or operated by a religious order; (i) A church, an interchurch
a State institution, the income of which ■ Paragraph 1. The authority citation organization of local units of a church,
is excluded from gross income under for part 1 is amended by adding an entry a convention or association of churches,
section 115(a); an organization in numerical order to read as follows: or an integrated auxiliary of a church (as
described in section 501(c)(1); or an Authority: 26 U.S.C. 7805 * * * defined in § 1.6033–2(h)).
organization that is a governmental unit Section 1.6033–6 also issued under 26 (ii) An exclusively religious activity of
or an affiliate of a governmental unit U.S.C. 6033(i)(1). * * * any religious order.
exempt from Federal income tax under (iii) A mission society sponsored by
■ Par. 2. Section 1.6033–6T is added to
section 501(a) as described in Rev. Proc. or affiliated with one or more churches
read as follows:
95–48 (1995–2 CB 418). See or church denominations, more than
§ 601.601(d)(2)(ii)(b). § 1.6033–6T Notification requirement for one-half of the activities of which
If an organization exempt from entities not required to file an annual society are conducted in, or directed at
taxation under section 501(a) is not information return under section 6033(a)(1) persons in, foreign countries.
exempted in either of the two preceding (taxable years beginning after December 31, (iv) An educational organization
paragraphs, the organization must 2006). (below college level) described in
submit an annual electronic notice. (a) In general. Except as otherwise section 170(b)(1)(A)(ii), that has a
Thus, a black lung trust that normally provided in this paragraph, every program of a general academic nature,
has gross receipts of $25,000 or less is organization exempt from taxation and that is affiliated (within the
64150 Federal Register / Vol. 72, No. 220 / Thursday, November 15, 2007 / Rules and Regulations
meaning of § 1.6033–2(h)(2)) with a under section 6033(a) because its annual at the Internal Revenue Service Web site
church or operated by a religious order. gross receipts are not normally in excess for exempt organizations.
(v) A State institution, the income of of $25,000. In order to make this (g) Effective/applicability date. These
which is excluded from gross income determination, the organization must regulations are applicable to annual
under section 115(a); keep records that enable it to calculate periods beginning after 2006.
(vi) An organization described in its gross receipts. All organizations are (h) Expiration date. These regulations
section 501(c)(1). required to maintain records under expire November 15, 2010.
(vii) An organization that is a section 6001. These records will provide Linda E. Stiff,
governmental unit or an affiliate of a evidence of the continuing basis for the
governmental unit exempt from Federal Deputy Commissioner for Services and
organization’s exemption from the filing Enforcement.
income tax under section 501(a). requirements under section 6033(a)(1).
(3) If an organization exempt from (4) If an organization that is required Approved: November 6, 2007.
taxation under section 501(a) is not to submit an annual electronic Eric Solomon,
described in paragraph (b)(1) or (2) of notification files a complete Form 990 Assistant Secretary of the Treasury (Tax
this section, the organization must or Form 990–EZ the annual notification Policy).
submit an annual notification. Thus, a requirement shall be deemed satisfied. [FR Doc. E7–22299 Filed 11–14–07; 8:45 am]
black lung trust that normally has gross The annual notification requirement is BILLING CODE 4830–01–P
receipts of $25,000 or less is not not satisfied if the Form 990 or Form
required to file Form 990–BL but is 990–EZ contains only those items of
required to submit electronic information that would have been PENSION BENEFIT GUARANTY
notification. A section 509(a)(3) required by submitting the notification CORPORATION
supporting organization of a religious in electronic form. Also, the filing of a
organization that normally has gross complete Form 990 or Form 990–EZ, 29 CFR Parts 4022 and 4044
receipts of $5,000 or less is not required rather than the submission of an annual
to file Form 990 or Form 990–EZ but is electronic notification, is the filing of a Benefits Payable in Terminated Single-
required to submit electronic return that starts the period of Employer Plans; Allocation of Assets
notification. limitations for assessment under section in Single-Employer Plans; Interest
(c) Additional notification 6501(g)(2). Assumptions for Valuing and Paying
requirements—(1) In general. Any (d) No effect on other filing Benefits
organization described in paragraph requirements. An organization that is AGENCY: Pension Benefit Guaranty
(a)(1) of this section shall submit an relieved from filing an information Corporation.
annual notification described in section return under section 6033(a) is still
ACTION: Final rule.
6033(i)(1). The annual notification subject to the requirements of § 1.6033–
shall— 2(i) and (j), concerning notice regarding SUMMARY: The Pension Benefit Guaranty
(i) Be in electronic form; and changes in character, operations, or Corporation’s regulations on Benefits
(ii) Set forth— purpose; providing additional Payable in Terminated Single-Employer
(A) The legal name of the information; duty to file other returns of Plans and Allocation of Assets in
organization; information; and duty to file unrelated Single-Employer Plans prescribe interest
(B) Any name under which the business tax returns. If an organization assumptions for valuing and paying
organization operates or does business; is required to file an unrelated business benefits under terminating single-
(C) The organization’s mailing address tax return, Form 990–T, ‘‘Exempt employer plans. This final rule amends
and Internet Web site address (if any); Organization Business Income Tax the regulations to adopt interest
(D) The organization’s taxpayer Return,’’ the filing of that return does assumptions for plans with valuation
identification number; not relieve the organization from the dates in December 2007. Interest
(E) The name and address of a requirement of submitting notification assumptions are also published on the
principal officer; under section 6033(i). PBGC’s Web site (http://www.pbgc.gov).
(F) Evidence of the continuing basis (e) Accounting period for submitting
DATES: Effective December 1, 2007.
for the organization’s exemption from electronic notification. An annual
the filing requirements under section notification required by this section FOR FURTHER INFORMATION CONTACT:
6033(a)(1); and shall be on the basis of the established Catherine B. Klion, Manager, Regulatory
(G) Additional information necessary annual accounting period of the and Policy Division, Legislative and
to process the notification. organization. If the organization has no Regulatory Department, Pension Benefit
(2) The mailing address required by established accounting period, annual Guaranty Corporation, 1200 K Street,
section 6033(i)(1)(C) and submitted in notification shall be on the basis of the NW., Washington, DC 20005, 202–326–
the annual notification shall be the calendar year. 4024. (TTY/TDD users may call the
organization’s last known address as (f) Time and place for submitting Federal relay service toll-free at 1–800–
provided by § 301.6212–2(a) of this electronic notification. The annual 877–8339 and ask to be connected to
chapter. This last known address may notification required by this section 202–326–4024.)
be updated as provided under shall be submitted on or before the 15th SUPPLEMENTARY INFORMATION: The
§ 301.6212–2 of this chapter, or by clear day of the fifth calendar month PBGC’s regulations prescribe actuarial
and concise notification. The Internal following the close of the period for assumptions—including interest
Revenue Service will use this last which the notification is required to be assumptions—for valuing and paying
known address as the organization’s submitted. Thus, an organization with plan benefits of terminating single-
address of record and will direct all an accounting period ending December employer plans covered by title IV of
mailings to this address. 31, 2007, is required to submit annual the Employee Retirement Income
(3) By submitting the annual notification by May 15, 2008. The Security Act of 1974. The interest
notification described in this paragraph notification shall be submitted in assumptions are intended to reflect
(c)(1), an organization acknowledges accordance with instructions and current conditions in the financial and
that it is not required to file a return publications, including those provided annuity markets.