Announcement 2004-38

SECTION 2 3 . EGTRRA

lRESERVED]
SECTION 24. REMEDIAL

AMENDMENT PERIOD

[RESERVED]
SECTION 25. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2000-20 is superseded.
Rev. Proc. 2004-6 is modified.
SEC'TION 26. EFFECTIVE DATE

[RESERVED]
SECTION 27. PAPERWORK
REDUCTION ACT
[RESERVED]

DRAFTING INFORMATION
(RESERVED]

Election of Alternative Deficit
Reduction Contribution
Announcement 2004-38
This announcement sets forth the procedures for electing an alternative defjcit
reduction contribut~onunder 9 4 12(1)(12)
of the Internal Revenue Code {theCode) as

878

2004-1 C.B.

contributions under $ 4 12(11 of the
and section 302(d) of ERISA for the ~ ) l . i r ,
year beg~nningin 29Ca did not apply ((I,.
I. Background
termined without regard to the spec~alI I&
for small plans under 9 412(1)(6) of [ I ! . Section 102 of the Pension Funding EqCode and jection 302(d)(b) of ERIS,\ r
uily Act of 2003 ildded 9 412(1)! 171 to the
Section 41 ?(I)(
12)(8) of the -Code i 1 1 1 r 1
Code and section 302!d)(12t to the Emsection 302(d)(12)(B) n l ERISA C O I ~ I I~ ~ I
ployee Retirement Income Security Act uE
restrictions on rhe plan dmendrnel~ts1h.11
1974 (ERISA). Section 412(1)(12) of the
may bt made during 3 year for which ;III
Code permits certain employers who are
alternative deficit reduction contributio~~
required to make additional con~rihutions
is 2lected.
undcr 6 4 1 2(1) to elect a reduced amount
Section I1 of this announcement XI\
of those contributions ("alternative deficit
for~hthe information thitt must be cot).
r.eduction contributions") for certait~plan
tained in the election and the address to
years. An employer is eligible to make
which the election must be sent. If an emsuch an election if it is ( I ) a comrncrcial
pioyer elects an alternative deficit rsducpassrngcr airline, (2) primariIy engaged in
tiori contribution for any plan year, the emthe PI-oductionor manufaclure at' a steel
ployer must provide wntten notice of thc
mill product or the processing of iron ore
election to the plan's pmicipants and benpellets. or (3) an organization described
eficiaries and to the Pension Benefit Guari n 3 501(c)(5) and which established a
anty Corporation within 30 days of fttitlg
plan on June 30, 1955, to which $ 412
the election.
now applies. Section 302(d)(12) o f ERISA
pcrmits an identical rIection and provides TI. Election of Alternative Deficit
~dcnticalrequirements with respect to the Reduction Contribution
minimum funding standard o f section 302.
The election can be nli~defor any plan
A. As an officer of the employer mainyear beginning after December 27, 2003. taining the plan, I hereby elect an alterand before December 28, 2005. An e k c - native deficit reduction contriburion untiun for a plan of an eligible employer must der 9 412(1)(12) of the Code and section
be rnnilr annually and cannot be made for 30?(d)(12) of ERISA and include the folmore than two plan years for each plan. lowing information:
An election uf an alternative deficit reduction contriburion may only be made with
respect to J plan for which the additional
(Continued on the following page)
addcd by secrion 102 of the Pensim Funding Equity Act of 1004. Pub. L. 1 OX-2 I 8.

( ' ~ 7 ~ 1

f
i-

!.

:
5j.

I
f

i-

1.

The employer is:
(a) a commercial passenger airline,
(tr) primarily engaged in the production or manufacture of a steel mill product or the processing
of iron ore pellets. or
( 2 )an organization described in Q: 501( c ) ( 5 )of the Code and u hich established a plan on June 30,
1955, to which 8 412 now appliel;.

2.

The name and EIN of the employer:

3.

The name and plan number of the plan:

4.

The plan year to which rhe election relates:

5.

Specify [he plan year beginnlug

6.

If any of the information in items ? or 3 was different from the name of the employer or the plan, etc., than
in the plan year for which the election is being made. enter the plan name, plan number, and name and EIN
of the employer for the 2000 plan year:

7.

Signature

111 1000 for

which the additional con~r~hutions
under 9 41 2(1) did not apply:

of employer

Date

-

The election must be signed by an officer of the employel- maintaining the plan. An authorized representative
of the employer, plan administrarur. or enrolled actuary may not sign this election on behalf of the employer.

B . This election must be filcd at [he
following address:

an alternative deficit reduction contribution for certain plans. As a result of such
elections. an employer's deficit reduction
Internal Revenue Service
crmtribution for certain plans will be based
Commissioner, Tax Exempt and
nn iinlOunts specified under 3 4 12(l j( I 2 1
Government Entities Division
of he Code. Such an elcc~iunmay cause
Attmrlcrn: SE:T:EP:RA:T
the euclse tax for failure to meet the miniAlternative DRC Election
mum funding standards nrlt to be incurred.
P.O. Box 27063
The like11 respondents are bi~sinessesor
McPherson Station
other for-profir ~nstitutions.nonprofit inWashington. D.C. 20038
stitutions. and small businesses or orgnnizations.
111. Paperwork Reduction Act
The estimated total annual reporting
and/or
recordkeeping burden is HOO hauts
The collection of~nfurmationcontained
The
estima~edannual burdcn per reIn t h ~ sanrlouncement has been reviewed
spondentlrecordkeeper
varies from 3 to 5
2nd approved by the Office of Managehours.
depending
on
individual
circummcnt and Budget in accordance with the
stances.
xvith
an
estimated
average
of 4
l':~pcrwork Reduction Acr (44 U.S.C.
hour\.
The
cs~imated
numbelof
respon3507) under control number 1545-1883.
A n agenu! ma! nor conduct ur sponsor, dents andlor recordkeepers is 200.
The rstinlated frequency of responses is
;~nd;I person is not required to respond
occasional.
1 1 1 , ;I collec:~on of information unless he
Books or records relating to a collection
r tlllt-clion of information displays ;1 valid
of
information musr be retained as long
,1~1t(roI
number.
as
their
contents may become material In
'l'llecoIlection of informatiun in this an[he
~dministratiotl
of any internal revenue
~ ~ ~ l ~ ~ ~ ~isc uinr nsection
e n t [I. This inforlaw
Ge~crally.
tax
returns and tax rtlkrrn
rri:tllon is required to enable the Commisintornlation
arc
confidentla].
as required
. I ~ * I ~ [Tax
. I . Exempi and Government Entiby
10
Ir
S.C.
6
1
03.
I ) ~ v i \ i u nor the Internal Revenue Scr-. . III ri:anitor and make valid d c t e r n l ~ ~ ~ a ;. +:;. u ith respect to employer:, t h elect
~
+ j f

Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2004-41
The name of an organization that no
longer qualifies as an organization described in section 170(c)(2) of the Internal
Revenue Code of 1986 is listed below.
Generally. thc Service will not disallow
deductions for contributions made to 3
listcd organizat~oncrn 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 cclntribu~ions made after an organization ceases to qualify under section
I 70rcK2 if t he urganization has not t~mely
filed a suit icrr dcclararory judgmen~under
section 7428 arid if he contributor ( 1 1 had
hnowledgc of the revocation of the rulirig
cir determination letter. ( 2 ) was aware that
~uch
revocation was imm~nent,or ( 3 ) was
in part responsible fo~,
ot- was aware of the
activit~csor omissions of the organization
that brnugkt about this revocarion.