Proposed IRS Regulations

     [||82cf6adb-9e61-49ac-a646-adfa3dc08ebd||] 6992 

subject In its entirety to public inspec- 

tion and copying in accordance with the 

game procedures as arc prescribed in 26 

CFR 601.702(d) (9) for public inspection 

and copying of written comments rc- 

ceived in response to a notice of proposed 

rulemaking. 

DonraLp C. ALEXANDER, 

Commissioner of 

Internal Revenue. 

REVENUE PROCEDURE 

SECTION 1. Purpose. This Revenue Pro- 

cedure sets forth guidelines and record- 

keeping requirements for determining 

whether private schools that are apply- 

ing for recognition of exemption under 

sections 501(a) and 501¢c) (3) of the 

Internal Revenue Code of 1954, or are 

presently exemnt from tax, have racially 

nondiscriminatory policies as to students. 

See. 2. Background 01 Definition. A 

school that does not have a racially non- 

discriminatory policy as to students does 

not qualify as an organization exempt 

from Federal income tax. See Rev. Rul. 

71-447, 1971-2 C.B. 230, which defines a 

racially nondiscriminatory policy as 

meaning that: 

the school admits the students of any ace 

to all the rights, privileges, programs, and 

activities generally accorded or made avail- 

able to students at that school and that the 

school does not discriminate on the basis of 

race in administration ot its educational 

policies, admissions poticies, scholarship and 

loan Programs, and athletic and other school- 

administered programs. 

~ 02. Organization and operation. A 

school must show affirmatively both that 

it has adopted a racially nondiscrimina-. 

tory policy as to students that is made 

known to the general public and { it 

has operated continuously in accordance 

with such racially nondiscriminatory
 pol- 

icy. The existence of a racially discrim- 

inatory policy with respect to faculty and 

administrative staff is evidence of a ra- 

cially discriminatory policy as to stu- 

dents. 

03 Necessity for specific guidelines. 

Service experience with private school 

operations has shown a need for more 

specific guidelines to insure a uniform 

approach to the determination whether 

a private school has a racially nondis= 

criminatory policy as to students. 

Sec. 3. Guidelines 01 Organizational 

requirements. A school must establish 

that it has a racially pondiscriminatory 

policy as to students by providing in its 

charter, bylaws, resolution of its govern- 

ing body, or other governing instrument 

that it will not discriminate against ap- 

plicants and students ¢n the basis of race. 

02. Publication requirements. The 

.school may use any method to publicize 

initially its raciaily nondiseriminatory 

policy so long as it cffcctively accom= 

plishes the end of making the policy 

known to all racial segments of the gen- 

eral community served by the school. A 

school cannot limit the scope of its pro- 

motional activities to a specific geograph- 

jcal area if such & limitation precludes 

any racial segment of the general com- 

munity in which the school is located 

+3 + i+ { 3 1 
Lila Lv dv 

FEDERAL REGISTER, VOL. 

from being made aware of the avail- 

ability of the school. Following are ex- 

amples of methods that the Service will 

consider as meeting this requirement. 

1. Where the student body is drawn 

substantially from a single locality, the 

school may publish a notice of its ra- 

cially nondiscriminatory policy in~ & 

newspaper of general circulation that 

serves all racial segments of the locality. 

Where no single newspaper of general 

circulation serves all racial segments, 

the school may publish ifs notice in those 

newspaners that are reasonably likely to 

be read by all racial segments in the lo- 

cality. In the case of a school whose stu- 

dent body is not drawn substantially 

from a single locality, the school may 

publish the notices of its racially nondis- 

criminatory policy in a newspaper or 

other publication reasonably likely to 

reach the localities served and be read 

by all races. The notice may be either an 

advertisement or an article, but it must 

appear in & prominent position, be suffi- 

ciently large, and he captioned in such 

a way as to call attention to both the no- 

tice and to its nature as a notice of a 

racially nondiscriminatory policy &s5 to 

students. ) z 

2 If a school custo arily draws a sub- 

stantial percentage of its students na- 

tionwide or from a large geographic sec 

tion or sections of the United States, and 

is able to show from consistent past prac- 

tice that it follows & racially nondis- 

criminatory policy as to students, the 

NOTICES 

publication requirement may Le satisfied - 

by including & reference to its nondis- 

criminatory policy in whatever means of 

publicity it customarily utilizes. Sce also 

section 3.03 for required statement in 

school brochures and catalogues. 

3. The school may use the broadcast 

media to publicize its racially nondis- 

criminatory policy if the use makes such 

nondiscriminatory policy known to all 

segments of the general community the 

school serves. If this method is chosen, 

the school must provide docu nentation 

. that the policy has been fully and effec- 

tively communicated to all segments of 

the general community. In this case, ap- 

propriate doeumentation would include 

copies of the tapes Or script used and 

records showing that there was an ade- 

quate number of announcements, that 

they were made during hours when the 

announcements were most likely to he 

communicated to all segments of the gen- 

eral community, that they were of sufil- 

cient duration to convey the message 

clearly, and that they were broadcast on 

radio and/or television stations likely 

to be listened to by substantial numbers 

of members of all racial minoritics in 

the general community. 
: 

4. The school may advise leaders of ra- 

cial minorities of thie nondiscriminatory 

policy sO that they in turn will make this 

policy known to other members of their 

race. If this method is used, the school 

must provide documentation that its ra= 

cially pondiscriminatory policy has been 

fully and effectively communicated by 

he minority leaders to their groups. Ad- 

equate evidence of this would be state- 

ments signed by the minority group 

leaders. ; : 

03 Annual notification and 

tion. In order to assure 

dezrce of continuing publicity in every 

instance, each private school must pub- 

licize its policy in accordance with sec- 

tion 3.02 at least once annually, during 

the period of the school’s solicitation for 

students, or in the absence of a solicita- 

tion program, during the school’s regis- 

tration period. Further, each school must 

also include a clear reference to its ra- 

cially nondiscriminatory policy in all its 

brochures, catalogues, and other printed 

advertising which it uses as a means of 

informing prospective students of its 

programs. : 5 Sg 

All schools that claim to ‘he racially 

nondiscriminatory as: to students must 

also certify annually, on an 

Revenue Service form to be issued, that 

they have not made statements and 

have not taken any actions qualifying 

2 i dfs ” norii Bore 
CETLLLCU 

appropriate 

      

   

   or ating their published statements 

of a racially nondiscriminatory policy 

- as to students. 

04 Facilities and programs. A school 

must be able to show that none of its 

facilities and Programs permit or en- 

courage racial discrimination. In this 

regard, a. school cannot operate class 

rooms, cafeterias, oY extra-curricular 

activities in a racially discriminatory 

manner. iy ! 

05 Scholarship and loan programs. 

As a general rule, 211 scholarships Or 

other comparable benefits procurable 

for use at any given school must be 

offered on equal terms to the members 

of all. races. Their availability on this 

basis must be known throughout the 

general community being served by the 

school in order for that school to be con- 

sidered racially nondiscriminatory as 

to students and should be referred to 

in the publicity required by this section. 

No scholarship, loan Or other financial 

assistance program may favor one racial 

group at a particular school without ad- 

versely affecting its exempt status unless 

the cumulative effect of all of the finan- 

cial assistance programs’ does not sig- 

nificantly derogate from its racially non- 

discriminatory policies. 

06 Failure to comply with guidelines. 

Failure to comply with the guidelines 

will ordinarily result in the termination 

of the exempt status of the school. 

Sec. 4. Applications for tax exempt 

status. Every ‘school filing an initial ap- 

plication for recognition of a tax ex-. 

empt status must supply the Service 

with the following information. 

. Racial composition, as of the pend- 

ng academic year, and projected so far 

as may be feasible for thie subsequent 

academic year, of — 

(pn) Studentbody, . 

(b) Applicants for admission, 

(¢) Facility and administrative staff. 

2. Amount of scholarship and loan 

funds, if any, awarded to students €n- 

rolled or secking adnidssion, and racial 

composition of students who have ré- 

ceived such awards. 

40, NO. 33—TUESDAY, FEBRUARY 18, 1975 

Internal 

A
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$5 

3 (a) A listing of (I) incorporators, 

founders, and board members; (ii) do- 

nors of land or buildings, whether in- 

dividuals or organizatic hy 0 1d 
(b) A statement as to whether any 

of the foregoing organiza Mii are n 

mitted to or have as a primary objective 
the maintenance of segregated school 

education, and whether any of the fore- 

going Individuals have an announced 

identifica tion as officers or active mem- 

pers of any such organization. 
SEC. 5. Publis comnnay of racial dis- 

crimination. Whenever a citizen has e 

dence that an ey De school is 
not operating under a racially nondis- 
criminatory policy as to students, any 
communication he may initiate should 
be sent either to his local District Di- 
rector of the Internal Revenue or to the 
Director, Exempt Organizations Divi- 
gion, 1111 Constitution Avenue, Wash- 

. ington, D.C. 20224. Similarly, any judi 
cial or administrative Gemma 
that a school does no Wp a racially 
nondiscriminatory poli ahi he com 
municated to the Di hi t Director or 
the Director, Exempt Organizations Divi- 

sion, for appropriate investigation. 
SEC. 6. Recordkeeping requirements .01 

Specific records. Each exempt private 
school must meintain, for a minimum 
period of threc years, the following rec- 

ords and information for the use of fhe 

Internal Revenue Service: 
1. All applications for general admis- 

sion. Any rejected applications must be 
annotated to show the reasons for 

rejection. 
2. All reque i for scholarships or other 

forms of financial aid, and a list of the 
amounts a warded or the reasons for re- 
jection, toget er with copies of all cor- 
respondence a comparable re-~ 
quests to other parties insofar as 
school has at any time been a party to 

such correspondence. 
3. All applications for employment. 

Any rejected applications must be an- 
notated to show the reasons for rejection. 

‘4, Copies of all catalogues, brochures, 
announcements, and other printed 

advertising. 
5. Copies of all 

solicit contributions, and all contribu- 
tions received. 

02 Failure to maintair 
to maintain or to produce the required 
records and information will warrant the 
presumption that the organization has 
failed to comply with the guidelines. Such 

presumption may be rebulted on ily by 
clear and convincing evidence to the 
contrary, 

Sec. 17. dg So other docume? ut 
672-2 C.B. 

2’ {- 

Ss. Rev. 

Customs 

{'T.D. 256] 

YEN EG 
4 HL 08 § oR CURF 

ification of Rates 

February 5, 1975. 

hid eserve Bank of New 

to section 522(c), Tarif 

po the dates listed, whenever 

the - 

materials used to 

1 records. Failure 

WOTIC 

Act of 1930, as amended (31 U.S.C. 372 
(c)), has certified the following rates 
of exchange which varied by 5 pcr 
centum or more from the quarterly rate 

published in Treasury Decision 75-24 for 
the following countries. Therefore, as to 
ntries covering merchandise exported 

it is neces- 

sary for Customs to convert 
such currency into currency of th 

United States, ceuversicn shall be at the 

following daily rates: 

Austria schilling: January 28, 1975-. $0. 0612 

Germany deutsche mark: January 

27. 19715 
Norway krone: January 27, 1975... 
Switzerland franc: January 27, 1675. 

R. N. MARRA, 
Director, 

Duty Assessment Division, 

75-4278 Filed 2-14-75;8:45 am] 

/~ 

purposes 

[SE AL] 

[FR Doc. 

FROM 

iling Rut oy 

cf ¢ July 16, 
s published 

Proceedings” in which the Com 
of Customs announced that in 
had been received pursuant to ig ro- 
visions of § 159.4%7(b) of the of 
Regulations (19 CFR 152.47(h)) which 
raised a question as fo whether cei 
payments, bestowals, rebates, or refun: ds 
granted by the a of Argentina 
upon the manufacture, production, or 
exportation of nonrubber footwear cou- 
stituted the payment or bestowal of 
boultly or grant, directly or bi Mh 
within the meaning of sec tion 303 of the 
Tariff Act of 15 2 I U.S 1303) (rve- 
ferred to in this notice a “the Achy, 
upon thc Dr production, or 
exportation of the merchandise to which 

or re- 
n 

bestowals, rebates, 
applied. In accordance with the 

provisions of the above mentioned no- 
tice, a time period of 30 days was pro=- 
vided from the date of the notice for the 
receipt of relevant data, views, or argu- 
ments with respect to the existence or 

the payments, 
funds 

nonexistence, and the net amount, of 
any bounty or grant within the meaning 
of section 303 of the Act. 

On the basis of an investigation con- 
ducted pursuant to § 153.47(¢), Customs 
Regulations (19 CFR 159.4 700), it has 
been determined that payments were 

made by the Government of Argentina 

upon the exportation of non-rubber foot- 
wear which would have constituted a 
bounty or grant of approximately 25 
percent of the dutiable va me gr! the 

wear. The Government of 

taken action, eficetive 

1974, to abolish for 

the program under wi 

were made. 

Accordingly, it h 

nl aim iinarily that 

in ho meaning o 

? haslowsd dire 

anufacture 

wear producers 

ch such payments 

een determined 

ty or grant 

he i is being 

ndirectly, 

A110 
RAO LC PP 

6993 

porwation of non-rubber footwear from, 
Argeniing, 

Before a fins 

the operation of a 

loan program of OA {« 
wear industry wii > observ 

certain it is not operated so as to result 
in the payment or bestowal he's a bounty 
or grant. Consideration will be given to 
any relevant data, views, or arguments 
submitted in writing with respect to the 
preliminary determination. Submissions 
should be addressed to the Commissioner 
o Customs, 2100 K Street NW., Wash- 

gton, D.C. 20229, in time to be ‘received 
Wi his office no later than March 290, 

1073, 3 : 

This preliminary determination is pub- 
lished purs iant to section 2h of the 
Tariff Act of 1930 (19 U.S.C. 1303(a)). 

[sear] VERNON D. ACREL, 
Commissioner of Customs. 

” Approval: February 12, 1975. 

Davip R. MACDONALD, 
Assistant Secretary of 

Treasury. 

[FR Doc.75-4365 Filed 2-14~ 

the 

75:81:45 am] 

Office of the Secretary Ed 
v 

ircular, Public Debt Series, No. 6-7 

= 5 tn ry 
IY NOTES OF SERIES F=1S77 

3 

ghruary 28, | 

FERRUARY 

I. INVITATION F 

Treasury, 
of the Second 

Secretary of 
nt to the authority 

erty Bond Act, as amended, invites 
tenders on a yield basis for $1,500,000,- 
000, or thereabouts, of notes of the United 
States, designated Treasury Notes of 
Series F-19877. The interest rate for the 
notes will be determined as set fort: in 
Section III, paragraph 3, hereof. Addi- 
tional amounts of these. notes may be 
issued at the average price of accepted 
tenders to Government accounts and to 
Federal Reserve Banks for themselves 
and as agents of foreign and interna- 
tional monetary authorities. Tenders will 
be received up to 1:30 p.m. Eastern 
Standard time, Wednesday, February 19, 
1975, under competitive and noncompe tl 

tive bidding, as set forth in Section IIL 

hereof. 

II. DESCRIPTION OF NOTES 

1. The notes will be dated March 3, 
1975, and will bear interest from that 
date, payable on a semiannualbasis on 

August 31, 1975, February 28, 1976, a 
gust 31, 1876, and February 28, 1977. They 
will mature February 28, 1977, ry will 
not be subject to call for redemption 
prior to maturity. 

The income Gerived from the . not 
to all taxes imposed und im 

enue Code of 1954. The Sm 
0 estate, inheritance, gift or 
taxes, Federal or 

Dub Samp from all taxation 

now or hereafter imposed on the prin- 

cipal or interest thereof by any State, or 

any of the possessions of the United: 

who ther 

are [||82cf6adb-9e61-49ac-a646-adfa3dc08ebd||]