Although Service approval is not required for set asides qualifying under the cash distribution test, the foundation must attach to its annual return for any tax year in which amounts are set aside, the following: A statement describing the nature and purposes of the specific project for which amounts are set aside, A statement that the amounts set aside will actually be paid for the specific project within a specified period that ends no more than 60 months after the date of the set-aside, A statement that the project will not be completed before the end of the tax year in which the set-aside is made, A statement showing the distributable amounts for any past tax years in the foundation's start-up and full-payment periods, and A statement showing the total amount of actual payments in cash or its equivalent for exempt purposes during each tax year in the foundation's start-up and full-payment periods. This statement should include a detailed description of any corrective or other payments that are treated, according to the rules discussed earlier, as distributed during a tax year prior to the tax year in which actually made, and should explain the circumstances that justify the application of those rules. The foundation must also attach to its annual return for each of the five tax years following the tax year in which the amount is set aside (and for each tax year in any extended period for paying the amount set aside) the statements described in (4) and (5) above.
