Source: https://www.irs.gov/irb/2009-14_IRB
Timestamp: 2020-02-22 11:49:04
Document Index: 159612686

Matched Legal Cases: ['§ 412', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 436', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 1', '§ 430', '§ 430', '§ 430', '§ 430', '§ 436', '§ 430', '§ 430', '§ 436', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 430', '§ 1211', '§ 172', '§ 172', '§ 172', '§ 172', '§ 172', '§ 172', '§172', '§ 172', '§ 301', '§ 172', '§ 172', '§ 172', '§ 172', '§ 172', '§ 172', '§ 172', '§ 6411', '§ 172', '§ 172', '§ 172', '§ 172', '§ 448', '§ 172', '§ 52', '§ 448', '§ 172', '§ 172', '§ 7701', '§ 1', '§ 6511']

Internal Revenue Bulletin: 2009-14 | Internal Revenue Service
Rev. Rul. 2009-10
Notice 2009-22
Rev. Proc. 2009-19
Announcement 2009-25
Announcement 2009-26
Announcement 2009-27
Announcement 2009-29
Rev. Rul. 2009-9 Rev. Rul. 2009-9
Rev. Rul. 2009-10 Rev. Rul. 2009-10
Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for April 2009.
Rev. Proc. 2009-19 Rev. Proc. 2009-19
This procedure provides guidance to taxpayers on electing the 3, 4, or 5-year carryback of net operating losses of small businesses under section 1211 of the American Recovery and Reinvestment Tax Act of 2009.
Rev. Proc. 2009-20 Rev. Proc. 2009-20
This procedure provides an optional safe harbor method for eligible taxpayers to deduct theft losses from criminally fraudulent investment arrangements that take the form of “Ponzi” schemes.
Notice 2009-22 Notice 2009-22
Asset valuation under section 430(g)(3)(B) as amended by WRERA. This notice provides interim rules regarding asset valuation methods that are permitted to be used by single employer defined benefit pension plans for minimum funding purposes pursuant to changes made by the Worker, Retiree, and Employer Recovery Act of 2008, Public Law 110-458 (WRERA). This notice also provides automatic approval for a change in asset valuation method for plan years beginning during 2009 to adopt any permissible asset valuation method.
Announcement 2009-25 Announcement 2009-25
This announcement invites public comments on how to improve the Internal Revenue Service's Exempt Organizations website (www.irs.gov/eo).
Announcement 2009-26 Announcement 2009-26
This announcement invites public comments on the implementation and content of the Exempt Organization Academic Institution Initiative.
Announcement 2009-27 Announcement 2009-27
The IRS has revoked it determination that Rocky Mountain Big Horn Sheep Foundation of Red River, MN; Skippers Learning Center of Lake City, SC; Reliable Cash Management Association of Buffalo Grove, IL; Pecan Park Learning Center of Jackson, MS; Brucker Charitable Foundation of Mountain Home, TX; N. U. Yoga Ashrama in America of Winter, WI; Housing Development Group of Denver, CO; National Business Fellowship Foundation of Raeford, NC; GIK Foundation of Bellevue, WA; Debt Free Foundation, Inc., of Provo, UT; Urban Light Community Development of Houston, TX; Sweet Life Program of Las Vegas, NV; Ladoras Family Services, Inc., of Compton, CA; Robert and Donna Herbolich Charitable Supporting of Hudson, OH; Three Point Volunteer Fire Department, Inc., of Williamsburg, KY; Advance Practice Foundation, Inc., of Basking Ridge, NJ; Goodwill Industries of Greater Cleveland, Inc., of Cleveland, OH; World Project, Inc., of Temecula, CA; Sandton Lifestyles of Los Angeles, CA; Dunn-Mason Foundation of Farmington Hills, MI; and Walter E & Romell A King Foundation of Gary, IN; qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.
Announcement 2009-29 Announcement 2009-29
This announcement provides notice of a public hearing on proposed regulations (REG-158747-06, 2009-4 I.R.B. 362) relating to withholding under section 3402(t) of the Code. The regulations reflect changes in the law made by the Tax Increase Prevention and Reconciliation Act of 2005 that require Federal, State, and local government entities to withhold income tax when making payments to persons providing property or services. The regulations provide guidance to assist the government entities in complying with section 3402(t). The regulations also provide certain guidance to persons receiving payments for property or services from government entities. The public hearing is scheduled for April 16, 2009.
This revenue ruling provides various prescribed rates for federal income tax purposes for April 2009 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in service during the current month. However, under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, and before December 31, 2013, shall not be less than 9%. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.
REV. RUL. 2009-10 TABLE 1
Applicable Federal Rates (AFR) for April 2009
AFR .83% .83% .83% .83%
110% AFR .91% .91% .91% .91%
120% AFR 1.00% 1.00% 1.00% 1.00%
130% AFR 1.08% 1.08% 1.08% 1.08%
AFR 2.15% 2.14% 2.13% 2.13%
110% AFR 2.36% 2.35% 2.34% 2.34%
120% AFR 2.59% 2.57% 2.56% 2.56%
130% AFR 2.80% 2.78% 2.77% 2.76%
150% AFR 3.24% 3.21% 3.20% 3.19%
175% AFR 3.79% 3.75% 3.73% 3.72%
AFR 3.67% 3.64% 3.62% 3.61%
110% AFR 4.04% 4.00% 3.98% 3.97%
120% AFR 4.42% 4.37% 4.35% 4.33%
130% AFR 4.79% 4.73% 4.70% 4.68%
REV. RUL. 2009-10 TABLE 2
Adjusted AFR for April 2009
Long-term adjusted AFR 4.61% 4.56% 4.53% 4.52%
REV. RUL. 2009-10 TABLE 3
Rates Under Section 382 for April 2009
Adjusted federal long-term rate for the current month 4.61%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 5.27%
REV. RUL. 2009-10 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for April 2009
Appropriate percentage for the 70% present value low-income housing credit 7.67%
REV. RUL. 2009-10 TABLE 5
Rate Under Section 7520 for April 2009
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 2.6%
Asset Valuation under Section 430(g)(3)(B) as amended by WRERA
This notice provides interim rules regarding asset valuation methods that are permitted to be used by single employer defined benefit pension plans for minimum funding purposes pursuant to changes made by the Worker, Retiree, and Employer Recovery Act of 2008, Public Law 110-458 (WRERA). This notice also provides automatic approval for a change in asset valuation method for plan years beginning during 2009 to adopt any permissible asset valuation method.
Section 412 of the Internal Revenue Code (the Code) provides minimum funding requirements that generally apply for defined benefit pension plans. Section 412(d)(1) provides that any change in funding method is permitted to take effect only if it is approved by the Secretary. A change in the plan’s funding method includes a change in the method for determining the value of the plan’s assets, a change in the method for determining the plan’s liabilities, or a change in the plan’s valuation date.
Section 430, which was added by the Pension Protection Act of 2006, Public Law 109-280 (PPA ’06), provides rules for the determination of the minimum required contribution applicable to single employer pension plans (including multiple employer plans) pursuant to § 412. Section 430 is generally effective for plan years beginning on or after January 1, 2008.
Section 430(g)(1) provides that all determinations made under § 430 for a plan year must be made as of the plan’s valuation date. Section 430(g)(2) provides that the valuation date for a plan year must be the first day of the plan year, except in the case of a plan with 100 or fewer participants (determined as provided in § 430(g)(2)(B) and (C)).
Section 430(g)(3) provides rules regarding the determination of the value of plan assets for purposes of § 430. Under § 430(g)(3)(A), except as provided in § 430(g)(3)(B), the fair market value of plan assets must be used for this purpose. As an alternative to the use of fair market value, § 430(g)(3)(B) permits the use of an actuarial value of assets based on the average of fair market values, but only if such method is permitted under regulations prescribed by the Secretary, does not provide for averaging of such values over more than the period beginning on the last day of the 25th month preceding the month in which the valuation date occurs and ending on the valuation date (or a similar period in the case of a valuation date that is not the 1st day of a month), and does not result in a determination of the actuarial value of plan assets that, at any time, is lower than 90 percent or greater than 110 percent of the fair market value of plan assets as of the valuation date.
Section 436 provides certain limitations on a defined benefit plan that are based on the funded status of the plan. For this purpose, the funding status of the plan is based on the adjusted funding target attainment percentage, which in turn is based in part on the value of plan assets as determined under § 430.
Prior to amendment by WRERA, the last sentence of § 430(g)(3)(B) provided that any averaging under § 430(g)(3)(B) must be adjusted for contributions and distributions (as provided by the Secretary). Section 121(b) of WRERA amended the last sentence of § 430(g)(3)(B) to provide that any averaging under § 430(g)(3)(B) must be adjusted for contributions, distributions, and expected earnings (as determined by the plan’s actuary on the basis of an assumed earnings rate specified by the actuary, but not in excess of the third segment rate applicable under § 430(h)(2)(C)(iii)), as specified by the Secretary. This WRERA change is effective for the same periods as the PPA ’06 provision that it amends.
On December 31, 2007, proposed regulations under §§ 430(d), 430(g), 430(h), and 430(i) were published in the Federal Register (REG-139236-07, 2008-9 I.R.B. 491 [72 FR 74215]) (the proposed regulations). Section 1.430(g)-1(c)(2) of the proposed regulations provides rules for a permissible asset valuation method based on the average of fair market values of plan assets, in accordance with § 430(g)(3)(B), prior to amendment by WRERA. Under this asset valuation method, the actuarial value of assets is the average of the fair market value of assets on the valuation date and the adjusted fair market value of assets determined as of one or more earlier determination dates. The adjusted fair market value of assets as of a determination date is the fair market value of plan assets on that date, increased for contributions included in the plan’s asset balance on the valuation date that were not included in the plan’s asset balance on the determination date, and decreased for benefits and administrative expenses paid from plan assets between that determination date and the valuation date. Because the proposed regulations were issued prior to the enactment of WRERA, the proposed regulations do not provide for an adjustment for expected earnings in determining the adjusted fair market value as of an earlier determination date. Section 1.430(g)-1(f)(4) of the proposed regulations provides that any change in a plan’s valuation date or asset valuation method that is made for the first plan year for which § 430 applies to the plan and that is not inconsistent with the requirements of § 430 is treated as having been approved by the Commissioner and does not require the Commissioner’s specific prior approval.
The proposed regulations are proposed to be effective for plan years beginning on or after January 1, 2009. The preamble of the proposed regulations provides that plans may rely on the proposed regulations for plan years beginning during 2008. Notice 2008-21, 2008-7 I.R.B. 431, states generally that the Service will not challenge a reasonable interpretation of an applicable statutory provision under § 430 or § 436 for plan years beginning during 2008, but noted that the use of averaging methods in determining the value of plan assets under § 430(g)(3)(B) is permitted only in accordance with a method prescribed in regulations.
Part III of this notice describes the rules expected to be incorporated in future regulations for adjusting asset values for expected earnings, pursuant to § 430(g)(3)(B), as amended by WRERA, using an assumed rate of return. Taxpayers may rely on the rules described in Part III of this notice for plan years beginning during 2008 and 2009.
The rules in Part III of this notice modify the determination of the adjusted fair market value of plan assets for a prior determination date that is used in determining the average of fair market values under § 430(g)(3)(B) as provided in the proposed regulations. The other rules for the asset valuation method under § 430(g)(3)(B) set forth in the proposed regulations continue to apply. For example, the period of time between each of the determination dates (treating the valuation date as a determination date) must be equal and the method of determining the value of plan assets (including the selection of the determination dates) is part of the plan’s funding method.
The guidance provided in this notice with respect to § 430(g)(3)(B) of the Code also applies for purposes of the parallel provision in section 303(g)(3)(B) of the Employee Retirement Income Security Act of 1974, as amended (ERISA). (Under section 101 of the Reorganization Plan No. 4 of 1978 (43 FR 47713), the Secretary of the Treasury has interpretive authority over the subject matter addressed in this notice for purposes of ERISA, as well as the Code.)
III. INTERIM RULES FOR APPLICATION OF NEW ASSET VALUATION METHOD
A. Adjustment for expected earnings.
The adjustment for expected earnings that is made to the fair market value of plan assets for a determination date is the sum of the expected earnings separately determined for each period between the determination date and the valuation date. The expected earnings for a period that is 12 months in length is equal to the product of the assumed rate of return for the 12 months and the fair market value of assets as of the determination date that is the beginning of the period, adjusted to reflect any contributions, benefits, and administrative expenses paid during the period (other than contributions for a plan year that ends with or prior to the determination date). If the period for which expected earnings is being determined is less than 12 months, then the expected earnings must be reduced to reflect the length of the shorter period. The fair market value of assets as of a determination date includes any contribution for a plan year that ends with or prior to the determination date that is receivable as of the determination date (provided that the contribution is actually made within 81/2 months after the end of the applicable plan year). If the contribution that is receivable as of a determination date is for a plan year beginning on or after January 1, 2008, then only the present value as of that determination date (determined using the effective interest rate for the plan year for which the contribution is made) is included in the fair market value of assets. The adjustment to the calculation of expected earnings for a period to reflect any other contributions, and to reflect benefits and administrative expenses paid during the period must take into account the timing of those contributions, benefits, and expenses.
The assumed rate of return for a period must be the actuary’s best estimate of the anticipated annual rate of return on plan assets from the valuation date until all benefits are expected to be paid, limited so that the assumed rate of return does not exceed the interest rate limitation determined under section III.B or III.C of this notice, as applicable for the plan year that contains the period. If the period between one determination date and the next includes portions of more than one plan year, then the limitation on the assumed rate of return is the lower of the applicable limitations for those plan years.
B. Determination of the limitation on the assumed rate of return for periods within plan years for which either the funding target or the target normal cost is determined using the three segment interest rates under § 430(h)(2)(C).
If either the funding target or target normal cost for a plan year is determined (either for purposes of determining minimum required contributions under § 430 or for purposes of the disclosure requirement under section 101(f) of ERISA) using the three segment interest rates described in § 430(h)(2)(C) (determined with or without the application of the transition rule under § 430(h)(2)(G)), then the assumed rate of return applicable for periods within the plan year must be limited so that it does not exceed the third segment interest rate used in that determination. This rule does not apply when the full yield curve is used to determine the funding target and target normal cost, but the rule does apply in most other cases with respect to periods in plan years beginning on or after January 1, 2008.
C. Determination of the limitation on the assumed rate of return for periods within plan years for which neither the funding target nor the target normal cost is determined using the three segment interest rates under § 430(h)(2)(C).
If neither the funding target nor the target normal cost for a plan year is determined using the three segment interest rates described in § 430(h)(2)(C) (determined with or without the application of the transition rule under § 430(h)(2)(G)), then the limitation on the assumed rate of return applicable for periods within the plan year cannot be determined using the rules described in section III.B of this notice. This is the case, for example, when: (1) the plan year which contains the period for which expected earnings are being determined begins before January 1, 2008; (2) the funding target and target normal cost are determined using the full yield curve described in § 430(h)(2)(D)(ii); or (3) in the case of a plan with respect to which an election has been made under section 402(a)(1) of PPA ’06 (which is generally available only for the pension plan of a commercial passenger airline under which accruals are frozen), the minimum required contribution is determined under section 402(e) of PPA ’06.
If the limitation on the assumed rate of return applicable for periods within the plan year cannot be determined using the rules described in section III.B of this notice, then the assumed rate of return for periods within the plan year generally must be limited so that it does not exceed the average of the third segment rates for the 24-month period ending with the month preceding the month that contains the valuation date for the plan year. However, if the Service has not published the 24-month average of the third segment rate for the month preceding the month that contains the valuation date for the plan year (i.e., the 24-month period ends before August 2007), then the spot third segment rate for the month preceding the month that contains the valuation date is used as the limitation on the assumed rate of return for the plan year.
D. Application of the 90 to 110 percent corridor.
The rules for accounting for contribution receipts under § 430(g)(4) are applied prior to the application of the 90 to 110 percent corridor under § 430(g)(3)(B)(iii). Thus, for example, in the case of a plan with a calendar plan year, a contribution receivable for the 2008 plan year which is made in 2009 will increase the upper end of the 90 to 110 percent corridor by 110% of the present value, determined as of January 1, 2009, of that contribution receivable.
E. Special rule for plan years beginning during 2008.
The actuarial value of plan assets for a plan year that begins during 2008 is permitted to be determined using an asset averaging method that complies with the rules described in § 1.430(g)-1(f)(4) of the proposed regulations (notwithstanding that this determination results in a lower value of plan assets than under § 430(g)(3)(B) as amended by WRERA). Accordingly, no adjustment for expected earnings is required to be applied for purposes of determining the actuarial value of assets under § 430(g)(3)(B) for a plan year that begins during 2008. Thus, for a plan year that begins in 2008, no retroactive changes to the actuarial value of assets need be made to comply with the amendments to § 430(g)(3)(B) made by WRERA in the case of a plan that has complied with applicable requirements for that plan year (such as quarterly contribution requirements under § 430(j) and benefit restrictions under § 436) based on the asset averaging method permitted before the enactment of WRERA.
For a plan year that begins in 2008, a plan for which the actuarial value of plan assets for purposes of §§ 430 and 436 was determined based on the proposed regulations is permitted to have the actuarial value of plan assets redetermined pursuant to § 430(g)(3)(B), as amended by WRERA. However, plans should take into account the risk that any such redetermination may result in plan operations for the plan year having been inconsistent with the requirements of section 206(g) of ERISA (the provision that parallels § 436 of the Code).
F. Examples.
The following examples illustrate the application of this section III:
Example 1 — Actuarial value of assets calculated as of January 1, 2009, using the average of the value on the valuation date and the two prior valuation dates
All assets of Plan A are invested in a trust fund, the plan year is the calendar year, and the valuation date is January 1. The actuarial value of assets is determined by averaging the fair market value as of the valuation date and the adjusted fair market values as of the preceding two valuation dates. Benefit payments and administrative expenses are paid evenly throughout the year, and accordingly are assumed to be made mid-year. The plan is not required to make quarterly contributions, and contributions for a plan year are made on September 15 following each plan year.
The fair market value of assets in trust and the contribution amounts are summarized below:
Fair market value Jan. 1:
Assets in trust as of Jan. 1 $135,500 $176,000 $162,000
Contribution for prior plan year paid Sept. 15 $61,000 $62,000 $68,781
Effective interest rate for prior plan year N/A N/A 6.00%
Discounted prior plan year contribution receivable as of Jan. 1 $61,000 $62,000 $66,000
Fair market value as of Jan. 1 including contrib. receivable $196,500 $238,000 $228,000
An actuarial valuation is performed as of January 1, 2009. The fair market value of assets, plan contributions, benefit payments, and other relevant items for January 1, 2007 through January 1, 2009 are as follows:
Fair market value January 1 including contributions receivable $196,500 $238,000
Contributions for current year $62,000 $66,000*
Benefit payments $(24,000) $(25,000)
Expenses $(7,000) $(7,500)
Interest and dividends $7,500 $7,000
Net realized gains (losses) $6,000 $(8,500)
Balancing item $(3,000) $(42,000)
Fair market value: Dec. 31 $238,000 $228,000
*Present value as of January 1, 2009
Computation of expected earnings
The plan sponsor elects to determine present values and other computations under § 430 using the 24-month average of segment rates for the fourth month preceding the month that contains the valuation date, without applying the transition rules in § 430(h)(2)(G). The actuary’s best estimate of the anticipated rate of return on plan assets is 6.25% for 2007 and is 6.25% for 2008. However, the assumed rate of return used for determining expected earnings for each of these plan years is equal to the lesser of the anticipated rate of return on assets for the plan year and the applicable limitation for the plan year.
The January 1, 2007 valuation was performed based on the funding rules in effect prior to PPA ’06, and therefore did not use the segment rates. Accordingly, the limitation on the assumed rate of return for 2007 is determined under section III.C of this notice. Furthermore, the Service did not publish the 24-month average of the third segment rates for the 24-month period that ended with the month prior to the valuation date (December 2006). Therefore, in accordance with section III.C of this notice, the assumed rate of return applicable for periods in 2007 is limited so that it does not exceed the spot third segment rate for the month prior to the valuation date (December 2006), or 6.09% (per Table II of Notice 2007-81, 2007-2 C.B. 899). Because this rate is lower than the actuary’s best estimate of the anticipated rate of return on plan assets for 2007, the assumed rate of return for 2007 is limited to 6.09%.
For 2008, the third segment rate used to limit the assumed rate of return is the rate used for the January 1, 2008 valuation. Because the plan sponsor has elected to use the segment rates for the fourth month preceding the valuation date (September 2007) without transition, the third segment rate is 6.38%. Because this rate is higher than the actuary’s best estimate of the anticipated rate of return on plan assets for 2008, the assumed rate of return for 2008 is equal to 6.25% (the actuary’s best estimate of the anticipated rate of return on plan assets).
Expected earnings are calculated as follows for each year:
2007: ($196,500 x .0609) + [$62,000 x (1.06090 - 1)] - [($24,000 + $7,000) x (1.0609(1/2) -1)] = $11,037
2008: ($238,000 x .0625) + [$66,000 x (1.06250 - 1)] - [($25,000 + $7,500) x (1.0625(1/2) -1)] = $13,875
Computation of adjusted fair market value of assets
The adjusted fair market values of assets for the January 1, 2007 and January 1, 2008 determination dates are computed as follows:
Adjusted values 2007 2008
Fair market value January 1: $196,500 $238,000
Contributions for 2007 $62,000 n/a
Contributions for 2008 $66,000* $66,000*
Benefit payments for 2007 $(24,000) n/a
Benefit payments for 2008 $(25,000) $(25,000)
Expenses for 2007 $(7,000) n/a
Expenses for 2008 $(7,500) $(7,500)
Expected earnings for 2007 $11,037 n/a
Expected earnings for 2008 $13,875 $13,875
Adjusted fair market value $285,912 $285,375
Computation of actuarial value of assets
Average of adjusted fair market value at earlier determination dates and fair market value at valuation date:
($285,912 + $285,375 + $228,000) ÷ 3 = $266,429
This preliminary average as of January 1, 2009 must be limited so that it satisfies the 90-110 percent corridor rules under § 430(g)(3)(B)(iii). Because 110% of $228,000 equals $250,800, the actuarial value of assets for Plan A must be limited to $250,800 (rather than $266,429). Thus, the actuarial value of assets as of January 1, 2009 is $250,800.
Algebraically equivalent determination of actuarial value of assets
Note that the above calculation of the preliminary average as of January 1, 2009 is algebraically equivalent to the method under Approval 15 of Rev. Proc. 2000-40, 2000-2 C.B. 357, using the assumed rate of return for each year as described above and a smoothing period of three years. This equivalency is demonstrated as follows:
Total actual earnings $10,500 $(43,500)
Expected earnings $11,037 $13,875
Gain (loss) equal to actual earnings minus expected earnings $(537) $(57,375)
Preliminary actuarial value of assets as of January 1, 2009 equals: $228,000 + one-third of the 2007 loss (1/3 x $537) + two-thirds of the 2008 loss (2/3 x $57,375) = $266,429
As noted above, this preliminary actuarial value of assets must be limited so that the actuarial value of assets as of January 1, 2009 satisfies the 90-110 percent corridor rules under § 430(g)(3)(B)(iii). Because the preliminary actuarial value of assets exceeds 110% of the fair market value of plan assets as of the valuation date, the actuarial value of assets as of January 1, 2009 is $250,800.
Example 2 — Actuarial value of assets calculated as of January 1, 2010, using the average of the value on the valuation date and four earlier quarterly determination dates
The facts are the same as in Example 1, except that the actuarial value of assets is calculated by averaging the fair market value as of the current valuation date and adjusted fair market values as of the beginning of the four preceding calendar quarters. Two contributions are made for the 2009 plan year—a contribution of $10,000 made on May 1, 2009, and a contribution of $60,000 made on September 15, 2010. The effective interest rate for the 2009 plan year is 6.10%. Benefits are paid on the 15th day of each month, and so benefits for the quarter are assumed to be made at the midpoint of each quarter. During 2009, administrative expenses are paid at the beginning of each quarter.
An actuarial valuation is performed as of January 1, 2010. For each determination date for which the contribution of $68,781 paid on September 15, 2009 is a contribution receivable for the 2008 plan year, the contribution receivable is discounted to the determination date using the 2008 effective interest rate of 6.00%. The contribution of $60,000 paid on September 15, 2010 for the 2009 plan year is reflected in the fair market value of assets as of January 1, 2010, discounted to that date using the 2009 effective interest rate of 6.1% ($60,000 ÷ 1.061(8.5/12) = $57,536), as illustrated in the table below:
Quarter beginning 1/1/2009 4/1/2009 7/1/2009 10/1/2009 1/1/2010
Assets in trust at beginning of quarter $162,000 $143,232 $153,649 $215,300 $216,900
Contributions receivable for prior plan year $68,781 $68,781 $68,781 $0 $60,000
Effective interest rate for prior plan year 6.00% 6.00% 6.00% 6.00% 6.10%
Discounted prior plan year contributions receivable at beginning of quarter $66,000 $66,968 $67,951 $0 $57,536
Total fair market value at beginning of quarter, including contributions receivable $228,000 $210,200 $221,600 $215,300 $274,436
The fair market value of assets, plan contributions, benefit payments, and other relevant items for the four quarters of 2009 are shown in the table below:
Quarter beginning 1/1/2009 4/1/2009 7/1/2009 10/1/2009
Total fair market value at beginning of quarter, including contributions receivable $228,000 $210,200 $221,600 $215,300
Contributions $0 $10,000 $0 $57,536**
Benefit payments $(6,000) $(6,500) $(6,300) $(6,400)
Expenses $(2,100) $(1,900) $(2,300) $(1,800)
Interest and dividends $2,300 $1,800 $2,000 $2,800
Net realized gains (losses) $3,000 $3,000 $3,000 $3,000
Balancing item* $(15,000) $5,000 $(2,700) $4,000
Fair market value at end of quarter, including contributions receivable $210,200 $221,600 $215,300 $274,436
* Includes the change in discounted value of the contribution receivable.
** Discounted value of contribution receivable for the 2009 plan year, paid after the end of the 2009 plan year. This discounted amount is treated as if it is paid on December 31, 2009, for the purpose of calculating the fair market value and the average value of assets.
The plan sponsor elects to determine present values and other computations under § 430 using the 24-month segment rates for the fourth month preceding the month that contains the valuation, without applying the transition rules in § 430(h)(2)(G). The actuary’s best estimate of the anticipated rate of return on plan assets is 6.25% for 2009. This rate is compared with the third segment rate for the 2009 plan year of 6.56% (based on the rates published for September 2008); because the third segment rate is higher than the actuary’s best estimate of the anticipated rate of return on plan assets, the actuary’s assumed rate of return is not restricted.
Expected earnings are calculated for each quarter, taking into account the timing of contributions, benefit payments, and administrative expenses during each quarter, as follows:
Quarter beginning 1/1/2009: [$228,000 x (1.0625(3/12) -1)] - [$6,000 x (1.0625(1.5/12) -1)] - [$2,100 x (1.0625(3/12) -1)] = $3,404
Quarter beginning 4/1/2009: [$210,200 x (1.0625(3/12) -1)] + [$10,000 x (1.0625(2/12) -1)] - [$6,500 x (1.0625(1.5/12) -1)] - [$1,900 x (1.0625(3/12) -1)] = $3,233
Quarter beginning 7/1/2009: [$221,600 x (1.0625(3/12) -1)] - [$6,300 x (1.0625(1.5/12) -1)] - [$2,300 x (1.0625(3/12) -1)] = $3,301
Quarter beginning 10/1/2009: [$215,300 x (1.0625(3/12) -1)] + [$57,536 x (1.06250 -1)] - [$6,400 x (1.0625(1.5/12) -1)] - [$1,800 x (1.0625(3/12) -1)] = $3,212
Computation of average value of assets
The average value of assets as of January 1, 2010, is computed as follows:
Determination date 1/1/2009 4/1/2009 7/1/2009 10/1/2009
Net adjustments*
Contributions $67,536 $67,536 $57,536 $57,536*
Benefit payments $(25,200) $(19,200) $(12,700) $(6,400)
Expenses $(8,100) $(6,000) $(4,100) $(1,800)
1/1/2009 - 3/31/2009 $3,404 N/A N/A N/A
4/1/2009 - 6/30/2009 $3,233 $3,233 N/A N/A
7/1/2009 - 9/30/2009 $3,301 $3,301 $3,301 N/A
10/2009 - 12/31/2009 $3,212 $3,212 $3,212 $3,212
Adjusted fair market value $275,386 $262,282 $268,849 $267,848
* Entries reflect the sum of the amounts for the current and later quarters, as illustrated for expected earnings.
Average of adjusted fair market value of assets at earlier determination dates and fair market value at valuation date:($275,386 + $262,282 + $268,849 + $267,848 + $274,436) ÷ 5 = $269,760
This average must be limited so that the actuarial value of assets as of January 1, 2010 satisfies the 90-110 percent corridor rules under § 430(g)(3)(B)(iii). Because the average of adjusted fair market values of $269,760 falls between 90% and 110% of $274,436, the actuarial value of assets as of January 1, 2010 is $269,760.
IV. AUTOMATIC APPROVAL FOR CHANGE IN ASSET VALUATION METHOD
This notice provides approval by the Commissioner for a change in a plan’s asset valuation method to adopt an asset valuation method that is permitted under § 430(g)(3), as amended by WRERA, that is made for a plan year that begins during 2009. In addition, the approval that would apply under the proposed regulations for a change in funding method for a plan year that begins during 2008 will apply to a change in a plan’s asset valuation method made to adopt the asset valuation method permitted by § 430(g)(3)(B), as amended by WRERA, that is made for such a plan year.
The principal authors of this notice are Carolyn Zimmerman of the Employee Plans, Tax Exempt and Government Entities Division, and Michael P. Brewer and Linda S. F. Marshall of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). For further information regarding this notice, please contact the Employee Plans taxpayer assistance answering service at 1-877-829-5500 (a toll-free number), Mr. Brewer or Ms. Marshall at (202) 622-6090 (not a toll-free number), or e-mail Ms. Zimmerman, at RetirementPlanQuestions@irs.gov.
.01 This revenue procedure provides guidance under § 1211 of the American Recovery and Reinvestment Tax Act of 2009, Div. B of Pub. L. No. 111-5, 123 Stat. 115 (February 17, 2009) (the Act). Section 1211 of the Act amends § 172(b)(1)(H) of the Internal Revenue Code to allow any taxpayer that is an eligible small business (ESB) to elect a 3, 4, or 5-year net operating loss (NOL) carryback for a taxable year ending after 2007.
.02 Specifically, this revenue procedure provides guidance to taxpayers as to the time and manner for making an election under § 172(b)(1)(H), including the election of a 3, 4, or 5-year carryback period and an election to apply § 172(b)(1)(H) to an NOL for a taxable year beginning in 2008, instead of an NOL for a taxable year ending in 2008. This revenue procedure provides guidance on when and how to elect § 172(b)(1)(H) if the taxpayer previously filed an election under § 172(b)(3) to forgo the NOL carryback period.
.03 This revenue procedure also provides guidance on how a taxpayer makes the election if the taxpayer is a partner of an ESB that is a partnership, a shareholder of an ESB that is an S corporation, or a sole proprietor.
.02 Section 6411(a) provides that a taxpayer may file an application for a tentative carryback adjustment of the tax for the prior taxable year affected by an NOL carryback from any taxable year. Section 6411(a) also provides that the application must be filed on or after the date of filing for the return for the taxable year of the NOL from which the carryback results and within a period of 12 months after that taxable year or, with respect to any portion of a business credit carryback attributable to an NOL from a subsequent taxable year, within a period of 12 months from the end of the subsequent taxable year. Section 6411(b) provides a 90-day period during which the Internal Revenue Service will make a limited examination of the application to discover omissions and errors of computation and determine the amount of the decrease in tax attributable to the carryback. The Service may disallow, without further action, any application that contains errors of computation that cannot be corrected within the 90-day period or that contains material omissions. The decrease in tax attributable to the carryback will be applied against unpaid amounts of tax. Any remainder of the decrease will, within the 90-day period, be credited or refunded.
.01 Eligible small businesses that have not filed a return for the applicable 2008 NOL taxable year.
(1) A taxpayer within the scope of this revenue procedure that has not filed a return for the taxable year in which the applicable 2008 NOL arises makes the election under § 172(b)(1)(H) by attaching a statement to the taxpayer’s federal income tax return for the taxable year in which the applicable 2008 NOL arises. The statement must—
(a) Clearly state that the taxpayer is electing to apply §172(b)(1)(H);
(b) Describe the length of the NOL carryback period elected by the taxpayer (3, 4, or 5 years); and
(c) If applicable, state that the taxpayer is electing to apply § 172(b)(1)(H) to the taxpayer’s taxable year that begins in 2008.
(2) The taxpayer’s return must be filed by the due date (including extensions of time) for filing the taxpayer’s return for the taxable year of the applicable 2008 NOL. In the case of a late election, relief may be available under § 301.9100-2(b) of the Procedure and Administration Regulations. Notwithstanding this due date, an election to apply § 172(b)(1)(H) to an applicable 2008 NOL for a taxable year ending before February 17, 2009, will be treated as timely if the election is filed on or before April 17, 2009.
.02 Eligible small businesses that have filed a return for the applicable 2008 NOL taxable year and did not elect to forgo the NOL carryback period.
(1) A taxpayer within the scope of this revenue procedure that previously filed a return for the applicable 2008 NOL taxable year and did not elect to forgo the NOL carryback period under § 172(b)(3) makes the election under § 172(b)(1)(H) as follows:
(a) What to file .
(i) The taxpayer must file the appropriate form including a statement of the carryback period the taxpayer elects (3, 4, or 5 years). The appropriate form is—
(A) For corporations, Form 1139, Corporation Application for Tentative Refund, or Form 1120X, Amended U.S. Corporation Income Tax Return;
(B) For individuals, Form 1045, Application for Tentative Refund, or Form 1040X, Amended U.S. Individual Income Tax Return; and
(C) For estates or trusts, Form 1045, or amended Form 1041, U.S. Income Tax Return for Estates and Trusts.
(ii) A taxpayer that makes the election by filing an amended return must file the return for the earliest taxable year to which the taxpayer is carrying back the applicable 2008 NOL. The taxpayer should not file an amended return for the applicable 2008 NOL taxable year.
(b) Labels. The taxpayer should type or print across the top of the appropriate form “2008 NOL Carryback Election Pursuant to Rev. Proc. 2009-19.” If the taxpayer previously filed an application for a tentative carryback adjustment or an amended return applying an NOL carryback period that did not qualify for the election under § 172(b)(1)(H), the taxpayer also should type or print across the top of the appropriate form “Amended NOL Carryback Election Pursuant to Rev. Proc. 2009-19.” In addition to the labels listed above, a taxpayer that elects pursuant to § 172(b)(1)(H)(ii)(II) to treat its NOL arising in a taxable year beginning in 2008 as the applicable 2008 NOL, must include a statement that the taxpayer is electing to apply § 172(b)(1)(H) to a taxable year that begins in 2008.
(c) When to file. The taxpayer must file the appropriate form by the later of the date that is 6 months after the due date (excluding extensions) for filing the taxpayer’s return for the taxable year of the applicable 2008 NOL, or on or before April 17, 2009.
(2) If a taxpayer makes the election under § 172(b)(1)(H) by filing an applicable form that amends a prior refund claim, the amendment also will apply to a carryback of any alternative tax NOL for the same taxable year. In the case of an amended application for a tentative carryback adjustment, the 90-day period described in § 6411(b) will begin on the date the amended application is filed.
.03 Eligible small businesses that elected to forgo the NOL carryback period under § 172(b)(3). A taxpayer within the scope of this revenue procedure that previously elected under § 172(b)(3) to forgo the carryback period for an applicable 2008 NOL for a taxable year ending before February 17, 2009, may revoke that election and make the election under § 172(b)(1)(H). Any revocation of the election to forgo the NOL carryback period also will apply to a carryback of any alternative tax NOL for the same taxable year. The taxpayer makes the revocation and election by following the procedures of section 4.02 of this revenue procedure. However, instead of the label required in section 4.02(1)(b) of this revenue procedure, the taxpayer should type or print across the top of the appropriate form “2008 NOL Carryback Election and Revocation of NOL Carryback Waiver Pursuant to Rev. Proc. 2009-19.” The taxpayer must file the revocation and new election under § 172(b)(1)(H) on or before April 17, 2009.
.04 Partnerships, S corporations, and sole proprietorships.
(a) Example 1. Partnerships A, B, and C have average annual gross receipts of $10 million, $12 million, and $14 million, respectively. Partner T owns a 40% interest in each partnership. None of the partnerships is required to be aggregated with any other entity for purposes of the aggregation rules of § 448(c)(2). Subject to the limitations in section 4.04(5) of this revenue procedure, Partner T may apply its election under § 172(b)(1)(H) to the portion of its applicable 2008 NOL attributable to its distributive share of the income, gain, loss, and deduction of each of Partnerships A, B, and C.
(b) Example 2. The facts are the same as in Example 1, except that Partnerships A and B are under common control within the meaning of § 52(b)(1). Accordingly, Partnerships A and B are treated as one person under the aggregation rules of § 448(c)(2). Because the aggregated average annual gross receipts of Partnerships A and B exceed $15 million, Partnerships A and B do not qualify as ESBs. Partner T may not apply its election under § 172(b)(1)(H) to the portion of its applicable 2008 NOL attributable to its distributive share of the income, gain, loss, and deduction of Partnerships A and B. However, subject to the limitations in section 4.04(5) of this revenue procedure, Partner T may apply its election under § 172(b)(1)(H) to the portion of its applicable 2008 NOL attributable to its distributive share of income, gain, loss, and deduction of Partnership C.
The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under the following control numbers: 1545-0074 Form 1040 (U.S. Individual Income Tax Return) and Form 1040X (Amended U.S. Individual Income Tax Return); 1545-0123 Form 1120 (U.S. Corporation Income Tax Return); 1545-0132 Form 1120X (Amended U.S. Corporation Income Tax Return); 1545-0092 Form 1041 (U.S. Income Tax Return for Estates and Trusts); 1545-0098 Form 1045 (Application for Tentative Refund); 1545-0582 Form 1139 (Corporation Application for Tentative Refund). For further information, please refer to the Paperwork Reduction Act statements accompanying these forms.
.01 The Service and Treasury Department are aware of investment arrangements that have been discovered to be fraudulent, resulting in significant losses to taxpayers. These arrangements often take the form of so-called “Ponzi” schemes, in which the party perpetrating the fraud receives cash or property from investors, purports to earn income for the investors, and reports to the investors income amounts that are wholly or partially fictitious. Payments, if any, of purported income or principal to investors are made from cash or property that other investors invested in the fraudulent arrangement. The party perpetrating the fraud criminally appropriates some or all of the investors’ cash or property.
.02 Rev. Rul. 2009-9, 2009-14 I.R.B. 735 (April 6, 2009), describes the proper income tax treatment for losses resulting from these Ponzi schemes.
.01 Specified fraudulent arrangement. A specified fraudulent arrangement is an arrangement in which a party (the lead figure) receives cash or property from investors; purports to earn income for the investors; reports income amounts to the investors that are partially or wholly fictitious; makes payments, if any, of purported income or principal to some investors from amounts that other investors invested in the fraudulent arrangement; and appropriates some or all of the investors’ cash or property. For example, the fraudulent investment arrangement described in Rev. Rul. 2009-9 is a specified fraudulent arrangement.
.02 Qualified loss. A qualified loss is a loss resulting from a specified fraudulent arrangement in which, as a result of the conduct that caused the loss—
.03 Qualified investor. A qualified investor means a United States person, as defined in § 7701(a)(30) —
.04 Discovery year. A qualified investor’s discovery year is the taxable year of the investor in which the indictment, information, or complaint described in section 4.02 of this revenue procedure is filed.
.05 Responsible group. Responsible group means, for any specified fraudulent arrangement, one or more of the following:
.06 Qualified investment.
.07 Actual recovery. Actual recovery means any amount a qualified investor actually receives in the discovery year from any source as reimbursement or recovery for the qualified loss.
.08 Potential insurance/SIPC recovery. Potential insurance/SIPC recovery means the sum of the amounts of all actual or potential claims for reimbursement for a qualified loss that, as of the last day of the discovery year, are attributable to—
.09 Potential direct recovery. Potential direct recovery means the amount of all actual or potential claims for recovery for a qualified loss, as of the last day of the discovery year, against the responsible group.
.10 Potential third-party recovery. Potential third-party recovery means the amount of all actual or potential claims for recovery for a qualified loss, as of the last day of the discovery year, that are not described in section 4.08 or 4.09 of this revenue procedure.
.01 In general. If a qualified investor follows the procedures described in section 6 of this revenue procedure, the Service will not challenge the following treatment by the qualified investor of a qualified loss—
.02 Amount to be deducted. The amount specified in this section 5.02 is calculated as follows—
.03 Future recoveries. The qualified investor may have income or an additional deduction in a year subsequent to the discovery year depending on the actual amount of the loss that is eventually recovered. See § 1.165-1(d); Rev. Rul. 2009-9.
.01 A qualified investor that uses the safe harbor treatment described in section 5 of this revenue procedure must—
(1) Mark “Revenue Procedure 2009-20” at the top of the Form 4684, Casualties and Thefts, for the federal income tax return for the discovery year. The taxpayer must enter the “deductible theft loss” amount from line 10 in Part II of Appendix A of this revenue procedure on line 34, section B, Part I, of the Form 4684 and should not complete the remainder of section B, Part I, of the Form 4684;
.02 By executing the statement provided in Appendix A of this revenue procedure, the taxpayer agrees—
.02 A taxpayer that chooses not to apply the safe harbor treatment of this revenue procedure to a claimed theft loss and that files or amends federal income tax returns for years prior to the discovery year to exclude amounts reported as income to the taxpayer from the investment arrangement must establish that the amounts sought to be excluded in fact were not income that was actually or constructively received by the taxpayer (or accrued by the taxpayer, in the case of a taxpayer using an accrual method of accounting). However, provided a taxpayer can establish the amount of net income from the investment arrangement that was reported and included in the taxpayer’s gross income consistent with information received from the specified fraudulent arrangement in taxable years for which the period of limitation on filing a claim for refund under § 6511 has expired, the Service will not challenge the taxpayer’s inclusion of that amount in basis for determining the amount of any allowable theft loss, whether or not the income was genuine.
The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under the following control numbers: 1545-0074 Form 1040 (Individual Income Tax Return) and Form 1040X (Amended U.S. Individual Income Tax Return); 1545-0123 Form 1120 (U.S. Corporation Income Tax Return); 1545-0132 Form 1120X (Amended U.S. Corporation Income Tax Return); 1545-0092 Form 1041 (U.S. Income Tax Return for Estates and Trusts); 1545-0099 Form 1065 (U.S. Return of Partnership Income); 1545-0130 Form 1120S (U.S. Income Tax Return for an S Corporation). Please refer to the Paperwork Reduction Act statements accompanying these forms for further information.
4 Less: Withdrawals ()
6 Percentage of qualified investment (95% of line 5 for investors with no potential third-party recovery; 75% of line 5 for investors with potential third-party recovery)
9 Total recoveries (add lines 7 and 8) ()
Your signature here Date signed:
Entity Name S-corporation, Partnership, Limited Liability Company, Trust
Entity Officer’s signature
Request for Public Comments Regarding Exempt Organizations Division Web Site
This Announcement invites public comments on how to improve the Internal Revenue Service’s Exempt Organizations Division Web site (www.irs.gov/eo).
The Customer Education and Outreach (CE&O) function of the Exempt Organizations Division (EO), Internal Revenue Service (IRS), is responsible for managing the EO Web site (www.irs.gov/eo). CE&O has found that, as the site has grown, displaying information in a logical and easy-to-use format has become challenging.
In an effort to improve the Web site, the IRS is seeking comments from the public in two specific areas:
Reorganizing existing information to make it easier to find.
Adding content that serve the needs of tax-exempt organizations.
The public should consider the following questions when making comments:
How do you access the irs.gov web site?
Type in irs.gov as the URL
Through a bookmark, favorites, or history view to reach a specific page
Do you have another preferred site entry page? If so, what is it?
How do you find material on the site?
Do you use the irs.gov search engine?
Do you go directly to the Charities and Non-Profits page to browse?
Do you use the Frequently Asked Questions for Exempt Organizations?
Do you use any of our Life Cycle pages?
Do you use the More Topics page?
Do you use the Charities & Non-Profits Topics listed on the navigation bar at the left side of the page? If not, are there other topics that should be substituted?
What types of audience or role would be the most helpful to you for organizing information?
Level of sophistication (i.e., new organizations and established organizations)
What do you come to the irs.gov website to do?
Find general information on staying tax-exempt
Find a specific publication or brochure
Find step-by-step filing instructions
What topics or type of content should be available to suit your needs?
Do you subscribe to the EO Update electronic newsletter? If not, why? If so:
How can we expand our readership?
What other content should be included?
Members of the public may submit comments by electronic message, by mail, or by hand delivery. All comments should refer to Announcement 2009-25, and may be mailed to:
Attn: Amelia Henchey
CE&O, T:EO:CEO (3B6)
Hand-delivered items may be delivered Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. to:
EO.Web.Comments@irs.gov. Please include Announcement 2009-25 in the subject line of any electronic communications.
All comments will be available for public inspection and copying in their entirety. Consideration will be given to any written public comments that are received by May 25, 2009. EO regrets that it will be unable to respond individually to comments or drafts.
The principal author of this announcement is Amelia Henchey of Exempt Organizations. For further information regarding this announcement, contact Amelia Henchey at 202-283-8856 (not a toll-free call).
Request for Public Comments on New Academic Institution Initiative
The Customer Education and Outreach (CE&O) function of the Exempt Organization division of the Internal Revenue Service (IRS) was established in 2000 to develop the strategic direction of the nationwide education and outreach programs for exempt organizations. Specifically, this office develops and delivers programs and products designed to assist exempt organizations to better understand their tax responsibilities that are required by the Internal Revenue Code.
Many academic institutions offer degree programs that develop, cultivate, and promote professionals who shape the exempt organization sector. The student populations of these academic institutions may one day be the leaders and managers of the exempt organizations that makeup the nonprofit sector. Hence, CE&O believes that the students of these academic institutions are an important audience to reach with education and outreach programs.
Therefore, CE&O is in the process of developing a new academic program initiative that will reach out directly to academic institutions that offer degrees related to the non-profit sector. Through the use of our existing tools and the possible development of additional resources, CE&O proposes to collaborate with these institutions to promote the education of exempt organization tax law.
The IRS invites comments and suggestions for the implementation and content of the proposed initiative. First, the IRS is requesting general responses to this initiative. Second, the IRS is seeking individuals and/or institution volunteers willing to provide more extensive input into and feedback on the proposed initiative. While the IRS might not be able to accommodate all volunteers, it will take steps to ensure that a diverse range of viewpoints are represented.
The IRS invites interested members of the public to submit written suggestions to help shape this initiative. All submissions will be available for public inspection and copying in their entirety. Members of the public may submit suggestions or drafts by email, mail, or hand-delivery. All comments should refer to Announcement 2009-26, and may be mailed to:
Attn: Pilar Oberwetter
CE&O, T:EO:CEO (3D1)
Hand delivered items may be delivered Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m., to:
Comments may be submitted electronically to: academic.initiative@irs.gov. Please include Announcement 2009-26 in the subject line of any electronic communications.
Exempt Organizations regrets that it will be unable to respond individually to suggestions or drafts. All comments should be received by June 6, 2009.
The principal author of this announcement is Pilar Oberwetter of Exempt Organizations. For further information regarding this announcement, contact Pilar Oberwetter at (202) 283-8946 (not a toll-free call).
If on the other hand a suit for declaratory judgment has been timely filed, contributions from individuals and organizations described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on April 6, 2009, and would end on the date the court first determines that the organization is not described in section 170(c)(2) as more particularly set forth in section 7428(c)(1). For individual contributors, the maximum deduction protected is $1,000, with a husband and wife treated as one contributor. This benefit is not extended to any individual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation.
Rocky Mountain Big Horn Sheep Foundation Red River MN
Skippers Learning Center Lake City SC
Reliable Cash Management Association Buffalo Grove IL
Pecan Park Learning Center Jackson MS
Brucker Charitable Foundation Mountain Home TX
N. U. Yoga Ashrama in America Winter WI
Housing Development Group Denver CO
National Business Fellowship Foundation Raeford NC
GIK Foundation Bellevue WA
Debt Free Foundation, Inc. Provo UT
Urban Light Community Development Houston TX
Sweet Life Program Las Vegas NV
Ladoras Family Services Inc Compton CA
Robert and Donna Herbolich Charitable Supporting Hudson OH
Three Point Volunteer Fire Department, Inc. Williamsburg KY
Advance Practice Foundation, Inc. Basking Ridge NJ
Goodwill Industries of Greater Cleveland, Inc. Cleveland OH
World Project Inc. Temecula CA
Sandton Lifestyles Los Angeles CA
Dunn-Mason Foundation Farmington Hills MI
Walter E & Romell A King Foundation Gary IN
This document provides notice of public hearing on a notice of proposed rulemaking (REG-158747-06, 2009-4 I.R.B. 362) relating to withholding under section 3402(t) of the Internal Revenue Code. The proposed regulations reflect changes in the law made by the Tax Increase Prevention and Reconciliation Act of 2005 that require Federal, State, and local government entities to withhold income tax when making payments to persons providing property or services. These proposed regulations provide guidance to assist the government entities in complying with section 3402(t). The regulations also provide certain guidance to persons receiving payments for property or services from government entities.
The public hearing is being held on April 16, 2009, at 10 a.m. The IRS must receive outlines of the topics to be discussed at the hearing by March 25, 2009.
The public hearing is being held in the auditorium, Internal Revenue Building, 1111 Constitution Avenue, NW, Washington, DC. Send submissions to: CC:PA:LPD:PR (REG-158747-06), room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-158747-06), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, taxpayers may submit electronic outlines of oral comments via the Federal eRulemaking Portal at http://www.regulations.gov.
Concerning these proposed regulations, Jean Casey, (202) 622-6040; concerning submissions of comments, the hearing, and/or to be placed on the building access list to attend the hearing, Richard A. Hurst at Richard.A.Hurst@irscounsel.treas.gov or (202) 622-7180 (not toll-free numbers).
The subject of the public hearing is the notice of proposed rulemaking (REG-158747-06) that was published in the Federal Register on Friday, December 5, 2008 (73 FR 74082).
Persons, who wish to present oral comments at the hearing that submitted written comments, must submit an outline of the topics to be discussed and the amount of time to be devoted to each topic (signed original and eight (8) copies) by March 25, 2009.
(Filed by the Office of the Federal Register on March 18, 2009, 8:45 a.m., and published in the issue of the Federal Register for March 19, 2009, 74 F.R. 11699)
Bulletins 2009-1 through 2009-14
2009-25 2009-14 I.R.B. 2009-14
2009-26 2009-14 I.R.B. 2009-14
2009-27 2009-14 I.R.B. 2009-14
2009-29 2009-14 I.R.B. 2009-14
2009-22 2009-14 I.R.B. 2009-14
2009-19 2009-14 I.R.B. 2009-14
2009-20 2009-14 I.R.B. 2009-14
2009-9 2009-14 I.R.B. 2009-14
2009-10 2009-14 I.R.B. 2009-14
158747-06 Hearing scheduled by Ann. 2009-29 2009-14 I.R.B. 2009-14
71-381 Obsoleted in part by Rev. Rul. 2009-9 2009-14 I.R.B. 2009-14