SEC. 4. EFFECTIVE DATE. The reporting procedure prescribed herein shall be effective beginning with the monthly report covering transactions occurring during the month of January 1972. SEC. 5. INQUIRIES. Inquiries regarding this Revenue Procedure should refer to its number and be addressed to the office of the appropriate Assistant Regional Commissioner, Alcohol, Tobacco and Firearms. 26 CFR 601.201: Ruling and determination letters. (Also Part I, Sections 501, 6033, 6056, 6104, 6151, 6651, 6652, 6685; 1.501(c)(3)−1, 1.6033-2, 1.6056–1, 301.6104-4, 1.6151–1, 301.6651-1, 301.6652-2, 301.6685–1.) Certain private foundations will be deemed to have reasonable cause for failure to file returns and pay the tax until 90 days after the issuance of final regulations under section 170(b)(1)(A) or 509(a) of the Code, whichever is issued later. Rev. Proc. 71-41 1 SECTION 1. PURPOSE The purpose of this Revenue Procedure is to state the conditions under which certain private foundations will be deemed to have reasonable cause for failure to comply with the requirements of sections 6033, 6056, 6104, and 6151 of the Internal Revenue Code of 1954 for filing of returns and payment of taxes. SEC. 2. BACKGROUND In order for organizations described in section 501(c)(3) of the Code to determine their filing responsibilities under sections 6033, 6056, and 6104 of the Code, it is necessary they know whether they are private foundations under section 509 (a) of the Code. In Revenue Ruling 71-236, C.B. 1971-1, 398, the Internal Revenue Service provided limited relief from the reporting requirements of sections 6033, 6056, and 6104 to organizations that, by the due date for filing Form 990, had either (1) filed a Form 4653, Notification. 1 Also released as Technical Information Release 1117, dated November 12, 1971. Concerning Foundation Status, without admitting to being a private foundation, or (2) submitted a statement in connection with Form 1023, Application for Recognition of Exemption, claiming not to be a private foundation. Such relief was in the form of an extension of time to complete the private foundation requirements of those sections, and this extension of time expires six months from the due date for filing Form 990. Thus for calendar year organizations that have not yet been notified whether they are private foundations, the extension of time expires November 15, 1971, and if such organizations fail, without reasonable cause, to comply with the private foundation reporting requirements, they may be liable for penalties if they are private foundations. The penalties are provided by sections 6651, 6652, and 6685 of the Code. SEC. 3. INSTRUCTIONS Because of the absence of final regulations under sections 509 (a) and 170 (b) (1) (A) of the Code, some organizations that received an extension in Revenue Ruling 71-236 are still awaiting a determination of their status and are unable to determine what returns they are required to file. If these organizations are in fact private foundations, they will be deemed to have reasonable cause for failure to comply with the requirements of sections 6033, 6056, 6104 and 6151 for filing of returns and payment of taxes, and will be granted relief from the penalty provisions of sections 6651, 6652 and 6685 of the Code, if they comply with the requirements in the next paragraph within 90 days after the last of the following dates: (1) The day on which regulations first prescribed under section 509 (a) become final, or (2) The day on which corrective and clarifying regulations under section 170(b)(1)(A) and designated as section 1.170(a)-9 (including the regulations pertaining community trusts) become to final. At that time the organizations must file an amended Form 990, with Part III completed, and pay tax due as of the date Form 990 was due, with in terest as provided by law; and file Form 990-AR, if required, and publish notice of availability thereof as required by section 6104(d) of the Code. They must attach a statement to the returns that cites this Revenue Procedure and shows that they qualified for the extension of time provided in Revenue Ruling 71-236. This statement, together with the late returns, must be submitted to the Philadelphia Service Center, 11601 Roosevelt Boulevard, Philadelphia, Pennsylvania 19155, within the prescribed time period. SEC. 4. EFFECT This Revenue Procedure applies to returns and taxes required for taxable years beginning in 1970. Statement of Organization and Functions This material amends functional statement 1113.8 and adds new functional statement 1113.85 to the statement on organization and functions published at 36 F.R. 849-890. This amendment establishes the Office of Industrial Economics in the Office of the Assistant Commissioner (Planning and Research). RANDOLPH W. THROWER, Commissioner of Internal Revenue. Dated: June 21, 1971. 1113.8 OFFICE OF ASSISTANT COM- The Assistant Commissioner (Planning and Research) acts as the principal assistant to the Commissioner and the Deputy Commissioner in the development and administration of the Program and Financial Plan, related objectives and policies, and in the analysis of all Service programs for the purpose of promoting maximum effectiveness in the administration of the Internal Revenue Code with the most efficient and economical expenditure of resources; and is responsible for research, statistics, and systems development. The Assistant Commissioner (Planning and Research) represents the Commissioner on these matters in relations with the Treasury Depart ment, the Congress, other Government agencies and outside organizations. He discharges these primary responsibilities in cooperation with the appropriate Assistant Commissioners Commissioners (or other principal officials), each of whom exercises related responsibilities within his own functional area. The Assistant Commissioner (Planning and Research) is responsible for and supervises the activities of the Planning and Analysis Division, Research Division, Statistics Division, Systems Development Division, and the Office of Industrial Economics. 1113.85 OFfice of IndusTRIAL ECO NOMICS Provides taxpayers and the Government with timely and up-to-date asset classes, forecasts of useful economic lives for such classes, and current repair allowances as part of the Asset Depreciation Range system by accomplishing the following functions: Collects and analyzes data on various asset classes, periods of use and factors of obsolescence and repair and maintenance practices in accordance with the vintage account procedure under the ADR system. Utilizing a variety of data gathering methods, such as economic reports, econometric models, and statistical sampling, compiles information on industrial experience on utilization of depreciable plant and equipment, salvage value, and replacement practices. Receives data and proposed changes in asset classes, depreciation periods, and repair allowances submitted by taxpayers and other knowledgeable sources. Analyzes and evaluates these data as a basis for recommending changes in the ADR system. Analyses are performed by a specialized staff of economists and engineers and involve rather complex issues, including things such as forecasting new technological developments and modes of operation in the various technological fields in the future. Effective liaison is maintained with the Commerce Department's Bureau of the Census and Office of Business Economics and similar offices in other industrialized nations. Closely monitors the operation of the ADR system in tax administration and recommends changes based on its staff observations, as well as reports from field revenue agents. Recommendations are of an administrative, regulatory, or legislative nature. Analyses of data and resultant recommendations are also made available for other elements of IRS for better and more efficient tax administration. Treasury Department Order No. 107 (Revision No. 14) Authority to Affix Seal of the Treasury Department By virtue of the authority vested in the Secretary of the Treasury, including the authority conferred by 5 U.S.C. 301, and by virtue of the authority delegated to me by Treasury Department Order No. 190 (Revised), it is hereby ordered that: 1. Except as provided in paragraph 2, the following officers are authorized to affix the Seal of the Treasury Department in the authentication of originals and copies of books, records, papers, writings, and documents of the Department, for all purposes, including the purposes authorized by 28 (b) In the Internal Revenue Service: (2) Assistant Commissioner (Compli- (4) Director and Technical Advisor, (5) Assistant Director (Criminal Enforcement), and Technical Advisors, Alcohol, Tobacco and Firearms Division (6) Chief, Firearms and Explosives Branch, Alcohol, Tobacco and Firearms Division (7) Chief, Technical Services Section, Firearms and Explosives (c) In the Bureau of Customs: (1) Commissioner of Customs (4) Assistant Commissioner of Cus- (6) Assistant Commissioner of Customs (Regulations and Rulings) (d) In the Bureau of the Public Debt: (1) Commissioner of the Public Debt (2) Deputy Commissioner in Charge of the Chicago Office (3) Assistant Deputy Commissioner in Charge of the Chicago Office 2. Copies of documents which are to be published in the Federal Register may be certified only by the officers named in paragraph 1(a) of this Order. 3. The Director of Central Services, the Commissioner of Internal Revenue, and the Commissioner of the Public Debt are authorized to procure and maintain custody of the dies of the Treasury Seal. The officers authorized in paragraph 1(c) may make use of such dies. Treasury Department Order No. 107 (Revision No. 13), C.B. 1971-1, 764, is superseded. Dated: July 9, 1971. ERNEST C. BETTS, Jr. for Administration. (Filed by the Office of the Federal Register on July 14, 1971, 8:52 a.m., and published in the issue of Federal Register for July 15, 1971, 36 F.R. 13162) Treasury Department Order No. 150-71 Delegation of Authority to Perform Functions Under the Economic Opportunity Act. The purpose of this order is to formalize the authority of the Commissioner of Internal Revenue with respect to the administration of the Economic Opportunity Act. The authority conferred upon the Secretary of the Treasury in the Economic Opportunity Act Amendments (P.L. 91-177) [C.B. 1969-3, 171], approved December 30, 1969 (and any extension or amendment thereof) relating to the Economic Opportunity Act, is hereby delegated to the Commissioner of Internal Revenue, with the right to redelegate such authority to any officer or employee of the Internal Revenue Service. To the extent that any action heretofore taken by the Commissioner of Internal Revenue or his delegate consistent with the delegation set forth in the preceding paragraph may require ratification, such action is hereby affirmed and ratified. Dated: January 8, 1971. DAVID M. Kennedy, Treasury Department Order Designation of Assistant Commissioner (Technical) to Serve as Acting Commissioner of Internal Reve nue By virtue of the authority vested in me as Secretary of the Treasury, including the authority in Reorganization Plan No. 26 of 1950, Assistant Commissioner (Technical) Harold T. Swartz is designated, effective 12:01 a.m. June 23, 1971, to serve as Acting Commissioner of Internal Revenue, with authority to perform all functions, without limitation, now authorized to be performed by the Commissioner of Internal Revenue. Mr. Swartz will continue to serve in this capacity until a new Commissioner of Internal Revenue has been appointed and assumes the duties of the office. JOHN B. CONNALLY, Dated June 22, 1971. Treasury Department Order Change in Office Designation and By virtue of the authority vested in me by Reorganization Plan No. 26 of 1950: (1) The Office of Assistant Commissioner (Data Processing) is hereby redesignated as the Office of Assistant Commissioner (Accunts, Collection, and Taxpayer Service); and (2) Approval is given to the transfer from the Office of Assistant Commissioner (Compliance) to the Office of Assistant Commissioner (Accounts, Collection, and Taxpayer Service) of the Collection Division, including such. personnel, records, equipment, and funds as are determined by the Com missioner of Internal Revenue and the Assistant Secretary for Administration to be appropriate in connection there with. This order shall become effective Announcement of the Disbarment and Suspension of Attorneys, Under Section 1026, Title 31 of the United States Code (1964 ed.), the Secretary of the Treasury, after due notice and opportunity for hearing, is authorized to suspend or disbar from practice before the Internal Revenue Service any person who has violated the rules and regulations governing the recognition of attorneys, certified public accountants or enrolled agents to practice before the Internal Revenue Service. Attorneys, certified public accountants and enrolled agents are prohibited in any Internal Revenue Service matter from directly or indirectly employing, accepting assistance from, being employed by or sharing fees with, any person disbarred or under suspension from practice before the Internal Revenue Service. To enable attorneys, certified public accountants and enrolled agents to identify such disbarred or suspended persons, the Director of Practice will announce in the Internal Revenue Bulletin the names and addresses of persons who have been disbarred or suspended from such practice, their designation as attorney, certified public accountant or enrolled agent, and the date of disbarment or period of suspension. After due notice and hearing before the Hearing Examiner, the following certified public accountant was disbarred from further practice before the Internal Revenue Service. Clifford E. Peterson...... Grayling, Mich.. Certified Public Sept. 7, 1971 Court decisions: Freed, Donald; Sutherland, Shirley Harris, Roosevelt Hudson; United Evidence, restrictive use of informa- Emergency succession to Commis- Drawback, claims, distilled spirits (TD) Penalties Continued Failure to file return, fraudulent Failure to pay special occupa- tional tax (§ 179.48) 457 Refunds and credits (See also: Exported firearms (§ 179.120) 457 26 CFR 301.7514-1 amended; seals |