Source: https://www.irs.gov/irb/2008-50_IRB
Timestamp: 2019-11-22 00:59:57
Document Index: 194282621

Matched Legal Cases: ['§301', '§301', 'art 145', '§ 414', '§ 401', '§ 401', '§ 401', '§ 1165', '§ 401', '§ 1', '§ 1', '§ 861', '§ 611', '§ 861', '§ 643', '§ 657', '§ 411', '§ 411', '§ 402', '§ 403', '§ 457', '§ 901', '§ 401', '§ 905', '§ 401', '§ 401', '§ 646', '§ 401', '§ 401', '§ 611', '§ 611', '§ 666', '§ 401', '§ 401', '§ 401', '§ 826', '§ 401', '§ 826', '§ 401', '§ 826', '§ 827', '§ 401', '§ 401', '§ 861', '§ 401', '§ 902', '§ 401', '§ 902', '§ 401', '§ 902', '§ 401', '§ 902', '§ 401', '§ 822', '§ 402', '§ 403', '§ 829', '§ 402', '§ 402', '§ 1102', '§ 402', '§ 1102', '§ 617', '§ 401', '§ 401', '§ 401', '§ 402', '§ 662', '§ 411', '§ 404', '§ 409', '§ 602', '§ 411', '§ 824', '§ 408', '§ 403', '§ 457', '§ 824', '§ 656', '§ 409', '§ 656', '§ 409', '§ 401', '§ 410', '§ 633', '§ 411', '§ 1', '§ 411', '§ 411', '§ 904', '§ 411', '§ 904', '§ 648', '§ 411', '§ 1102', '§ 411', '§ 411', '§ 701', '§ 411', '§ 411', '§ 7805', '§ 701', '§ 411', '§ 411', '§ 1', '§ 411', '§ 645', '§ 411', '§ 412', '§ 906', '§ 414', '§ 906', '§ 1106', '§ 414', '§ 414', '§ 631', '§ 411', '§ 414', '§ 902', '§ 414', '§ 611', '§ 411', '§ 415', '§ 125', '§ 611', '§ 101', '§ 415', '§ 303', '§ 415', '§ 415', '§ 832', '§ 415', '§ 906', '§ 415', '§ 867', '§ 415', '§ 415', '§ 415', '§ 613', '§ 411', '§ 613', '§ 401', '§ 401', '§ 613', '§ 411', '§ 902', '§ 416', '§ 401', '§ 902', '§ 416', '§ 401', '§ 417', '§ 1102', '§ 417', '§ 302', '§ 417', '§ 417', '§ 302', '§ 1004', '§ 417', '§ 1004', '§ 420', '§ 114', '§ 420', '§ 420', '§ 212', '§ 432', '§ 612', '§ 240', '§ 1400', '§ 1400', '§ 415', '§ 417', '§ 401', '§ 410', '§ 436', '§ 401', '§ 401', '§ 414', '§ 414', '§ 401', '§ 401', '§ 401', '§ 401', '§ 401', '§ 411', '§ 411', '§ 414', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 42', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 42', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400', '§ 1400']

Internal Revenue Bulletin: 2008-50
T.D. 9433
Notice 2008-107
Notice 2008-108
Notice 2008-109
Announcement 2008-119
Announcement 2008-120
Announcement 2008-121
T.D. 9433 T.D. 9433
Final regulations under section 7701 of the Code add an entity to the list of foreign business entities that are always classified as corporations. This entity is not eligible to check the box to change its classification.
Notice 2008-107 Notice 2008-107
This notice provides adjusted limitations on housing expenses for tax year 2008 for purposes of section 911 of the Code.
Notice 2008-109 Notice 2008-109
This notice provides guidance with respect to state volume limits under section 1400N that are applicable to (1) allocations of the low-income housing tax credit in the Midwestern and Hurricane Ike disaster areas, (2) the issuance of tax-exempt bonds for the Midwestern and Hurricane Ike disaster areas, and (3) the issuance of tax credit bonds for the Midwestern disaster areas. These provisions were enacted as part of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008. The notice provides a list of the counties that qualify as Midwestern or Hurricane Ike disaster areas and provides the portion of the state population located in the disaster or other relevant areas for purposes of determining the volume limits applicable to each of these provisions. The notice also provides instructions for reporting the issuance of Midwestern and Hurricane Ike tax-exempt and tax credit bonds.
Rev. Proc. 2008-72 Rev. Proc. 2008-72
2009 optional standard mileage rates. This procedure announces 55 cents as the optional rate for deducting or accounting for expenses for business use of an automobile, 14 cents as the optional rate for use of an automobile as a charitable contribution, and 24 cents as the optional rate for use of an automobile as a medical or moving expense for 2009. The procedure also provides rules for substantiating the deductible expenses of using an automobile for business, moving, medical, or charitable purposes. Rev. Proc. 2007-70 and Announcement 2008-63 superseded.
Notice 2008-108 Notice 2008-108
Retirement plans; qualification, list of changes. This notice sets forth a list of changes referred to in Rev. Proc. 2007-44, 2007-2 C.B. 54, pertaining to the statutory, regulatory, and guidance changes needed for certain requests to the Service for opinion, advisory, and determination letters for the 12-month period beginning February 1, 2009.
Announcement 2008-120 Announcement 2008-120
Announcement 2008-119 Announcement 2008-119
This announcement contains clarification to filing procedures in Publication 1187 for Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, filed electronically. These changes are effective immediately. Rev. Proc. 2008-44 clarified.
Announcement 2008-121 Announcement 2008-121
This document provides notice of a public hearing on proposed regulations (REG-106251-08, 2008-39 I.R.B. 774) relating to options granted under an employee stock purchase plan as defined in section 423 of the Code. These proposed regulations affect certain taxpayers who participate in the transfer of stock pursuant to the exercise of options granted under an employee stock purchase plan. The public hearing is scheduled for January 15, 2009.
Effective Date: These regulations are effective on November 28, 2008.
Applicability Date: For the dates of applicability of these regulations, see §301.7701-2(e)(7).
On March 21, 2008, the IRS and Treasury Department published in the Federal Register temporary regulations (T.D. 9388, 2008-17 I.R.B. 832 [73 FR 15064]) and a notice of proposed rulemaking (REG-143468-07, 2008-17 I.R.B. 848 [73 FR 15107]) under section 7701 of the Internal Revenue Code (Code). The regulations added the Bulgarian aktsionerno druzhestvo to the list of entities in §301.7701-2(b)(8) (the per se corporation list). For further background, see T.D. 9388 and Notice 2007-10, 2007-4 I.R.B. 354.
On October 8, 2001, the Council of the European Union adopted Council Regulation 2157/2001 (2001 Official Journal of the European Communities, L 294/1) (the EU Regulation) permitting the organization of a new public limited liability company, the Societas Europaea (SE). The EU Regulation entered into force on October 8, 2004. The general rules for the formation and operation of an SE provided by the EU Regulation are supplemented by the laws of the member country in which the SE has its registered office. On December 16, 2005, the IRS and Treasury Department published final regulations in the Federal Register (T.D. 9235, 2006-1 C.B. 338) adding the SE to the per se corporation list. The preamble to T.D. 9388 stated incorrectly that the aktsionerno druzhestvo is Bulgaria’s SE. In fact, the aktsionerno druzhestvo is a public limited liability company organized in Bulgaria. The IRS and Treasury Department continue to study issues related to the residence of an SE for application of relevant Federal income tax provisions, such as the same-country exception under section 954(c)(3) of the Code. Comments are requested.
No written comments were received from the public or the Small Business Administration on the temporary or proposed regulations. No public hearing was requested or held. Accordingly, these regulations finalize the proposed regulations without modification and remove the text of the temporary regulations from the Code of Federal Regulations.
It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. Chapter 5) does not apply to these regulations. Because the regulations do not impose a collection of information requirement on small entities, the Regulatory Flexibility Act (5 U.S.C. Chapter 6) does not apply either. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding this regulation was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.
1. Adding an entry in alphabetical order to paragraph (b)(8)(i).
3. Revising paragraph (e)(7).
(7) The reference to the Bulgarian entity in paragraph (b)(8)(i) of this section applies to such entities formed on or after January 1, 2007, and to any such entity formed before such date from the date that, in the aggregate, a 50 percent or more interest in such entity is owned by any person or persons who were not owners of the entity as of January 1, 2007. For purposes of the preceding sentence, the term interest means—
Par. 3. Section 301.7701-2T is removed.
Approved October 31, 2008.
(Filed by the Office of the Federal Register on November 26, 2008, 8:45 a.m., and published in the issue of the Federal Register for November 28, 2008, 73 F.R. 72345)
The principal author of these regulations is S. James Hawes of the Office of Associate Chief Counsel (International); however, other personnel from the IRS and the Treasury Department participated in their development.
Determination of Housing Cost Amounts Eligible for Exclusion or Deduction for 2008
This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code (Code) for specific locations for 2008. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.
Section 911(a) of the Code allows a qualified individual to elect to exclude from gross income the foreign earned income and housing cost amount of such individual. Section 911(c)(1) defines the term “housing cost amount” as an amount equal to the excess of (A) the housing expenses of an individual for the taxable year to the extent such expenses do not exceed the amount determined under section 911(c)(2), over (B) 16 percent of the exclusion amount (computed on a daily basis) in effect under section 911(b)(2)(D) for the calendar year in which such taxable year begins ($239.34 per day for 2008, or $87,600 for the full year), multiplied by the number of days of that taxable year within the applicable period described in section 911(d)(1). The applicable period is the period during which the individual meets the tax home requirement of section 911(d)(1) and either the bona fide residence requirement of section 911(d)(1)(A) or the physical presence requirement of section 911(d)(1)(B). Assuming that the entire taxable year of a qualified individual is within the applicable period, the section 911(c)(1)(B) amount for 2008 is $14,016 ($87,600 x .16).
Section 911(c)(2)(A) of the Code limits the housing expenses taken into account in section 911(c)(1)(A) to an amount equal to (i) 30 percent (adjusted as may be provided under the Secretary’s authority under section 911(c)(2)(B)) of the amount in effect under section 911(b)(2)(D) for the calendar year in which the taxable year of the individual begins, multiplied by (ii) the number of days of that taxable year within the applicable period described in section 911(d)(1). Thus, under this general limitation, a qualified individual whose entire taxable year is within the applicable period is limited to maximum housing expenses of $26,280 ($87,600 x .30) in 2008.
Section 911(c)(2)(B) of the Code authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Internal Revenue Service (IRS) and the Treasury Department published Notice 2006-87, 2006-2 C.B. 766, and Notice 2007-25, 2007-12 I.R.B. 760, for 2006, and Notice 2007-77, 2007-40 I.R.B. 735, for 2007, to provide adjustments to the limitation on housing expenses for qualified individuals incurring housing expenses in countries with high housing costs relative to housing costs in the United States.
SECTION 3. TABLE OF ADJUSTED LIMITATIONS FOR 2008
The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $26,280) for 2008.
Argentina Buenos Aires 125.96 46,100
Australia Brisbane 81.42 29,800
Australia Canberra 76.50 28,000
Australia Gold Coast 81.42 29,800
Australia Melbourne 78.96 28,900
Australia Oakey 81.42 29,800
Australia Perth 118.85 43,500
Australia Toowoomba 81.42 29,800
Belgium Antwerp 116.67 42,700
Belgium Brussels 157.65 57,700
Belgium Gosselies 110.11 40,300
Belgium Hoogbuul 116.67 42,700
Belgium Mons 110.11 40,300
Belgium SHAPE/Chievres 110.11 40,300
Bosnia-Herzegovina Sarajevo 89.89 32,900
Brazil Brasilia 121.31 44,400
Brazil Sao Paulo 127.05 46,500
Canada Calgary 110.93 40,600
Canada Dartmouth 95.63 35,000
Canada Edmonton 100.82 36,900
Canada Halifax 95.63 35,000
Canada London, Ontario 81.42 29,800
Canada Montreal 158.20 57,900
Canada Ottawa 130.87 47,900
Canada Toronto 129.78 47,500
Canada Vancouver 125.68 46,000
Canada Victoria 95.08 34,800
Canada Winnipeg 82.51 30,200
Chile Santiago 124.32 45,500
China Beijing 134.25 49,137
Colombia All cities other than Bogota and Barranquilla. 122.68 44,900
Ecuador Quito 83.33 30,500
Egypt Cairo 74.43 27,240
France Garches 273.50 100,100
France Le Havre 114.75 42,000
France Lyon 155.46 56,900
France Marseille 143.17 52,400
France Montpellier 126.78 46,400
France Paris 273.50 100,100
France Sevres 273.50 100,100
France Suresnes 273.50 100,100
France Versailles 273.50 100,100
Germany Babenhausen 134.15 49,100
Germany Bad Aibling 114.48 41,900
Germany Bad Nauheim 107.10 39,200
Germany Baumholder 121.86 44,600
Germany Berlin 163.93 60,000
Germany Birkenfeld 121.86 44,600
Germany Boeblingen 145.90 53,400
Germany Butzbach 104.92 38,400
Germany Darmstadt 134.15 49,100
Germany Erlangen 84.97 31,100
Germany Frankfurt am Main 139.89 51,200
Germany Friedberg 107.10 39,200
Germany Fuerth 84.97 31,100
Germany Garmisch-Partenkirchen 115.85 42,400
Germany Geilenkirchen 92.35 33,800
Germany Gelnhausen 145.08 53,100
Germany Germersheim 101.91 37,300
Germany Giebelstadt 116.39 42,600
Germany Giessen 104.92 38,400
Germany Grafenwoehr 114.48 41,900
Germany Hanau 145.08 53,100
Germany Hannover 100.00 36,600
Germany Heidelberg 133.88 49,000
Germany Idar-Oberstein 121.86 44,600
Germany Ingolstadt 169.40 62,000
Germany Kaiserslautern, Landkreis 149.18 54,600
Germany Kitzingen 116.39 42,600
Germany Leimen 133.88 49,000
Germany Ludwigsburg 145.90 53,400
Germany Mainz 164.48 60,200
Germany Mannheim 133.88 49,000
Germany Munich 169.40 62,000
Germany Nellingen 145.90 53,400
Germany Neubruecke 121.86 44,600
Germany Nuernberg 84.97 31,100
Germany Ober Ramstadt 134.15 49,100
Germany Oberammergau 115.85 42,400
Germany Pirmasens 149.18 54,600
Germany Rheinau 133.88 49,000
Germany Schwabach 84.97 31,100
Germany Schwetzingen 133.88 49,000
Germany Seckenheim 133.88 49,000
Germany Sembach 149.18 54,600
Germany Stuttgart 145.90 53,400
Germany Wertheim 116.39 42,600
Germany Wiesbaden 164.48 60,200
Germany Wuerzburg 116.39 42,600
Germany Zimdorf 84.97 31,100
Germany Zweibrueken 149.18 54,600
Germany All cities other than Augsburg, Babenhausen, Bad Aibling, Bad Kreuznach, Bad Nauheim, Baumholder, Berchtesgaden, Berlin, Birkenfeld, Boeblingen, Bonn, Bremen, Bremerhaven, Butzbach, Cologne, Darmstadt, Delmenhorst, Duesseldorf, Erlangen, Flensburg, Frankfurt am Main, Friedberg, Fuerth, Garlstedt, Garmisch-Partenkirchen, Geilenkirchen, Gelnhausen, Germersheim, Giebelstadt, Giessen, Grafenwoehr, Grefrath, Greven, Gruenstadt, Hamburg, Hanau, Handorf, Hannover, Heidelberg, Heilbronn, Herongen, Idar-Oberstein, Ingolstadt, Kaiserslautern, Landkreis, Kalkar, Karlsruhe, Kerpen, Kitzingen, Koblenz, Leimen, Leipzig, Ludwigsburg, Mainz, Mannheim, Mayen, Moenchen-Gladbach, Muenster, Munich, Nellingen, Neubruecke, Noervenich, Nuernberg, Ober Ramstadt, Oberammergau, Osterholz-Scharmbeck, Pirmasens, Rheinau, Rheinberg, Schwabach, Schwetzingen, Seckenheim, Sembach, Stuttgart, Twisteden, Wahn, Wertheim, Wiesbaden, Worms, Wuerzburg, Zimdorf and Zweibrueken. 125.41 45,900
Greece Argyroupolis 104.64 38,300
Greece Athens 107.92 39,500
Greece Elefsis 107.92 39,500
Greece Ellinikon 107.92 39,500
Greece Mt. Hortiatis 104.64 38,300
Greece Mt. Parnis 107.92 39,500
Greece Mt. Pateras 107.92 39,500
Greece Nea Makri 107.92 39,500
Greece Perivolaki 104.64 38,300
Greece Piraeus 107.92 39,500
Greece Souda Bay (Crete) 83.61 30,600
Greece Tanagra 107.92 39,500
Greece Thessaloniki 104.64 38,300
Guatemala Guatemala City 102.73 37,600
Holy See, The Holy See, The 182.24 66,700
Ireland Dublin 158.20 57,900
Ireland Limerick 89.34 32,700
Ireland Shannon Area 89.34 32,700
Italy Catania 106.56 39,000
Italy Gaeta 77.05 28,200
Italy Genoa 110.38 40,400
Italy Leghorn 114.21 41,800
Italy Milan 272.13 99,600
Italy Naples 150.27 55,000
Italy Pisa 114.21 41,800
Italy Pordenone-Aviano 125.68 46,000
Italy Rome 182.24 66,700
Italy Sardinia 93.44 34,200
Italy Sigonella 106.56 39,000
Italy Turin 136.07 49,800
Italy Verona 86.89 31,800
Italy Vicenza 126.78 46,400
Italy All cities other than Avellino, Brindisi, Catania, Florence, Gaeta, Genoa, Gioia Tauro, La Spezia, Leghorn, Milan, Mount Vergine, Naples, Nettuno, Pisa, Pordenone-Aviano, Rome, Sardinia, Sigonella, Turin, Verona, and Vicenza. 104.64 38,300
Japan Akashi 86.07 31,500
Japan Akizuki 75.68 27,700
Japan Atsugi 108.47 39,700
Japan Camp Zama 108.47 39,700
Japan Chiba-Ken 108.47 39,700
Japan Fussa 108.47 39,700
Japan Gifu 79.78 29,200
Japan Gotemba 81.97 30,000
Japan Haneda 108.47 39,700
Japan Kanagawa-Ken 108.47 39,700
Japan Komaki 79.78 29,200
Japan Machidi-Shi 108.47 39,700
Japan Misawa 78.96 28,900
Japan Nagoya 103.24 37,786
Japan Okinawa Prefecture 133.06 48,700
Japan Osaka-Kobe 144.91 53,036
Japan Sagamihara 108.47 39,700
Japan Saitama-Ken 108.47 39,700
Japan Sasebo 81.42 29,800
Japan Tachikawa 108.47 39,700
Japan Tokyo 257.38 94,200
Japan Tokyo-to 108.47 39,700
Japan Yokohama 138.25 50,600
Japan Yokosuka 118.58 43,400
Japan Yokota 108.47 39,700
Korea Camp Carroll 80.05 29,300
Korea Camp Colbern 178.69 65,400
Korea Camp Market 178.69 65,400
Korea Camp Mercer 178.69 65,400
Korea Chinhae 82.79 30,300
Korea Chunchon 76.78 28,100
Korea K-16 178.69 65,400
Korea Kimhae 85.79 31,400
Korea Kimpo Airfield 178.69 65,400
Korea Kwangju 81.97 30,000
Korea Munsan 75.41 27,600
Korea Osan AB 93.17 34,100
Korea Pusan 85.79 31,400
Korea Pyongtaek 93.17 34,100
Korea Seoul 178.69 65,400
Korea Suwon 178.69 65,400
Korea Taegu 100.00 36,600
Korea Tongduchon 75.41 27,600
Korea Uijongbu 106.56 39,000
Korea Waegwan 80.05 29,300
Korea All cities other than Ammo Depot #9, Camp Carroll, Camp Colbern, Camp Market, Camp Mercer, Changwon, Chinhae, Chunchon, K-16, Kimhae, Kimpo Airfield, Kunsun, Kwangju, Munsan, Osan AB, Pusan, Pyongtaek, Seoul, Suwon, Taegu, Tongduchon, Uijongbu, and Waegwan. 87.16 31,900
Kuwait Kuwait City 177.87 65,100
Kuwait All cities other than Kuwait City. 159.29 58,300
Luxembourg Luxembourg 149.45 54,700
Malaysia Kuala Lumpur 138.80 50,800
Malaysia All cities other than Kuala Lumpur. 92.08 33,700
Malta Malta 122.95 45,000
Mexico Hermosillo 98.36 36,000
Mexico Mazatlan 88.52 32,400
Mexico Mexico City 125.41 45,900
Mexico Monterrey 117.21 42,900
Mexico All cities other than Ciudad Juarez, Cuernavaca, Guadalajara, Hermosillo, Matamoros, Mazatlan, Merida, Metapa, Mexico City, Monterrey, Nogales, Nuevo Laredo, Tapachula, Tijuana, Tuxtla Gutierrez, and Veracruz. 107.65 39,400
Micronesia Pohnpei 75.14 27,500
Netherlands Brunssum 103.28 37,800
Netherlands Eygelshoven 103.28 37,800
Netherlands Hague, The 187.16 68,500
Netherlands Heerlen 103.28 37,800
Netherlands Hoensbroek 103.28 37,800
Netherlands Hulsberg 103.28 37,800
Netherlands Kerkrade 103.28 37,800
Netherlands Landgraaf 103.28 37,800
Netherlands Maastricht 103.28 37,800
Netherlands Papendrecht 130.87 47,900
Netherlands Rotterdam 130.87 47,900
Netherlands Schaesburg 103.28 37,800
Netherlands Schinnen 103.28 37,800
Netherlands Ypenburg 187.16 68,500
Netherlands All cities other than Amsterdam, Aruba, Brunssum, Coevorden, Eygelshoven, The Hague, Heerlen, Hoensbroek, Hulsberg, Kerkrade, Landgraaf, Maastricht, Margraten, Papendrecht, Rotterdam, Schaesburg, Schinnen, Schiphol, and Ypenburg. 95.63 35,000
Netherlands Antilles Curacao 101.91 37,300
Norway Oslo 159.29 58,300
Norway Stavanger 108.20 39,600
Peru Lima 74.59 27,300
Phillippines Cavite 98.36 36,000
Phillippines Manila 98.36 36,000
Phillippines All cities other than Cavite and Manila. 76.23 27,900
Portugal Alverca 166.67 61,000
Portugal Lajes Field 82.24 30,100
Portugal Lisbon 166.67 61,000
Qatar All cities other than Doha. 88.52 32,400
Russia Moscow 248.36 90,900
Russia Saint Petersburg 119.67 43,800
Saudi Arabia Riyadh 87.43 32,000
Singapore Singapore 176.23 64,500
South Africa Pretoria 109.84 40,200
Spain Madrid 123.50 45,200
Spain Rota 106.01 38,800
Spain Valencia 127.60 46,700
Spain All cities other than Barcelona, Madrid, Rota and Valencia. 76.23 27,900
Switzerland Bern 162.30 59,400
Switzerland Geneva 229.78 84,100
Switzerland All cities other than Bern, Geneva, and Zurich. 89.89 32,900
Thailand Bangkok 139.62 51,100
Turkey Ankara 88.80 32,500
Turkey Elmadag 88.80 32,500
Turkey Manzarali 88.80 32,500
United Kingdom Cheltenham 127.87 46,800
United Kingdom Chicksands 72.40 26,500
United Kingdom Croughton 117.76 43,100
United Kingdom Fairford 112.02 41,000
United Kingdom Felixstowe 122.95 45,000
United Kingdom Harrogate 126.78 46,400
United Kingdom Kemble 112.02 41,000
United Kingdom Lakenheath 150.55 55,100
United Kingdom London 226.50 82,900
United Kingdom Menwith Hill 126.78 46,400
United Kingdom Mildenhall 150.55 55,100
United Kingdom Oxfordshire 117.76 43,100
United Kingdom Plymouth 117.76 43,100
United Kingdom Portsmouth 117.76 43,100
United Kingdom Rochester 109.02 39,900
United Kingdom Waterbeach 119.95 43,900
United Kingdom West Byfleet 72.13 26,400
United Kingdom All cities other than Basingstoke, Bath, Belfast, Birmingham, Bracknell, Bristol, Brough, Bude, Cambridge, Caversham, Chelmsford, Cheltenham, Chicksands, Croughton, Dunstable, Edinburgh, Edzell, Fairford, Farnborough, Felixstowe, Ft. Halstead, Gibraltar, Glenrothes, Greenham Common, Harrogate, High Wycombe, Hythe, Kemble, Lakenheath, Liverpool, London, Loudwater, Menwith Hill, Mildenhall, Nottingham, Oxfordshire, Plymouth, Portsmouth, Reading, Rochester, Southampton, Surrey, Waterbeach, Welford, West Byfleet, and Wiltshire. 113.93 41,700
This notice is effective for taxable years beginning on or after January 1, 2008.
The principal author of this notice is Paul J. Carlino of the Office of Associate Chief Counsel (International). For further information regarding this notice, contact Mr. Carlino at (202) 622-3840 (not a toll-free call).
2008 Cumulative List of Changes in Plan Qualification Requirements
This notice contains the 2008 Cumulative List of Changes in Plan Qualification Requirements (2008 Cumulative List) described in section 4 of Rev. Proc. 2007-44, 2007-28 I.R.B. 54. The 2008 Cumulative List is to be used primarily by plan sponsors of individually designed plans that are in Cycle D. An individually designed plan is in Cycle D if it is a single employer plan where the last digit of the employer identification number of the plan sponsor is 4 or 9, or it is a multiemployer plan under § 414(f).
The list of changes in section VI of this notice does not extend the deadline by which a plan must be amended to comply with any statutory, regulatory, or guidance changes. The general deadline for timely adoption of an interim or discretionary amendment can be found in section 5.05 of Rev. Proc. 2007-44.
Under section 4 of Rev. Proc. 2007-44, the Internal Revenue Service intends to annually publish a Cumulative List to identify statutory, regulatory and guidance changes that must be taken into account in submissions by plan sponsors to the Service for opinion, advisory and determination letters whose submission period begins on February 1st following issuance of the Cumulative List.
In Notice 2007-94, 2007-51 I.R.B. 1179, the Service published the 2007 Cumulative List of Changes in Plan Qualification Requirements (2007 Cumulative List).[1]
III. APPLICATION OF 2008 CUMULATIVE LIST
This notice is being issued for purposes of the determination letter program for plans submitted for determination letters during the Cycle D submission period. In Rev. Proc. 2005-66, 2005-2 C.B. 509, the Service announced the opening of the initial five-year remedial amendment cycle. In accordance with Rev. Proc. 2007-44, the Service will start accepting determination letter applications for Cycle D plans beginning on February 1, 2009. The 12-month submission period for Cycle D plans will end January 31, 2010.
The 2008 Cumulative List, set forth in section VI of this notice, informs plan sponsors of issues the Service has specifically identified for review in determining whether a plan filing in Cycle D has been properly updated. Specifically, the 2008 Cumulative List reflects law changes under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), Pub. L. 107-16 (with technical corrections made by the Job Creation and Worker Assistance Act of 2002 (JCWAA)), Pub. L. 104-147, the Pension Funding Equity Act of 2004 (PFEA), Pub. L. 108-218, the American Jobs Creation Act of 2004 (AJCA), Pub. L. 108-357, the Katrina Emergency Tax Relief Act of 2005 (KETRA), Pub. L. 109-73, the Gulf Opportunity Zone Act of 2005 (GOZA), Pub. L. 109-135, the Pension Protection Act of 2006 (PPA ’06), Pub. L. 109-280, and the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, Pub. L. 110-28.
The Service will not consider in its review of any determination letter application, for the submission period that begins February 1, 2009, any:
(1) guidance issued after October 1, 2008;
(4) statutory provisions that are first effective in 2009, for which there is no guidance identified in this notice.
The 2008 Cumulative List does not include any items described in (1) through (4) above. However, in order to be qualified, a plan must comply with all relevant qualification requirements, not just those on the 2008 Cumulative List.
Terminating plans must include all law changes in effect at the time of termination. See section 8 of Rev. Proc. 2007-44 regarding plan termination.
IV. SPECIAL RULES FOR THE PENSION PROTECTION ACT OF 2006
Under section 1107 of the PPA ’06, a plan amendment made pursuant to any amendment made by PPA ’06 generally may be retroactively effective, if, in addition to meeting the other applicable requirements, the amendment is made on or before the last day of the first plan year beginning on or after January 1, 2009 (January 1, 2011 in the case of a governmental plan).
The PPA ’06 provisions formerly appeared separately from the Cumulative List of Changes in Plan Qualification Requirements section of the 2006 and 2007 Cumulative Lists. The PPA ’06 provisions are now included in the Cumulative List of Changes in Plan Qualification Requirements (which is section VI of this notice) and are identified as “(New).”
Plans submitted in Cycle D must be amended to include the applicable PPA ’06 provisions listed in section VI of this notice. Thus, all plans submitted in Cycle D will receive a determination letter which covers PPA ’06, even if the deadline for amending under section 1107 of PPA ’06 is after January 31, 2010.
As an alternative to submitting a plan in Cycle D, a plan sponsor of a Cycle D plan whose first plan year beginning on or after January 1, 2009 ends on or after February 1, 2010, may defer submission of its plan until Cycle E (February 1, 2010 - January 31, 2011). In order to defer submission of such a plan until Cycle E, an application must be timely filed in Cycle E. In such a case, the plan will be treated as having been filed within the plan’s EGTRRA remedial amendment period and will be reviewed on the basis of the 2009 Cumulative List. However, such a plan will be treated as a Cycle E plan solely for this initial cycle, and all subsequent submissions will be made in Cycle D.
V. SPECIAL RULES FOR THE HEROES EARNINGS ASSISTANCE AND RELIEF TAX ACT OF 2008
Under sections 104(d)(2) and 105(c) of the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act), Pub. L. 110-245, a plan amendment made pursuant to sections 104(a) or 105(b)(1) of the HEART Act generally may be retroactively effective, if, in addition to meeting the other applicable requirements, the amendment is made on or before the last day of the first plan year beginning on or after January 1, 2010 (January 1, 2012 in the case of a governmental plan).
Plans submitted in Cycle D can be amended, at the option of plan sponsors, to include the applicable HEART Act provisions listed in section VII of this notice. However, the Service will not consider the HEART Act in issuing determination letters for Cycle D plans, and such letters cannot be relied on with respect to the requirements of the HEART Act.
Section 107(a) of the HEART Act extends the applicability of the qualified reservist distribution to individuals ordered or called to duty after December 31, 2007. The Service is treating an amendment made pursuant to section 107 of the HEART Act as if it was included in the amendments described in section 1107 of PPA ’06. See section VI of this notice, # 11, footnote 4, with respect to § 401(k)(2)(B)(i)(V) qualified reservist distributions.
VI. 2008 CUMULATIVE LIST OF CHANGES IN PLAN QUALIFICATION REQUIREMENTS
The following list consists of statutory provisions and associated guidance which reflect changes to plan qualification requirements. Miscellaneous guidance is also provided. The Service has identified below plan qualification requirements which were not on the 2007 or earlier Cumulative Lists as “(New)”. Thus, the 2008 Cumulative List contains those plan qualification requirements listed in the 2004, 2005, 2006, and 2007 Cumulative Lists as well as additional 2008 plan qualification requirements.
72(p): Section 1.72(p)-1 of the Income Tax Regulations relating to plan loans was published on December 3, 2002 (67 Fed. Reg. 71821). (2004 C. L.).
Final Regulations under § 401(a) of the Code regarding permissible normal retirement ages were published May 22, 2007 (72 Fed. Reg. 28604). (2006 C. L.).
Notice 2007-69, 2007-35 I.R.B. 468, provides temporary relief, for certain pension plans under which the definition of normal retirement age may be required to be changed to comply with the regulations, but only until the first day of the first plan year that begins after June 30, 2008. Accordingly, the final regulations will be taken into account in the Service’s review of plans submitted for determination letters during the Cycle D submission period. (2007 C. L.).
Rev. Rul. 2008-40, 2008-30 I.R.B. 166, provides that the transfer of amounts from a trust under a plan qualified under § 401(a) to a nonqualified foreign trust is treated as a distribution from the transferor plan and that transfer of assets and liabilities from a qualified plan to a plan that satisfies § 1165 of the Puerto Rico Code is also treated as a distribution from the transferor plan. (New).
Rev. Rul. 2008-45, 2008-34 I.R.B. 403, provides that the exclusive benefit rule of § 401(a) is violated if the sponsorship of a qualified retirement plan is transferred from an employer to an unrelated taxpayer and the transfer is not in connection with a transfer of business assets or operations from the employer to the unrelated taxpayer. (New).
401(a)(4):
Amendments to § 1.401(a)(4)-8 of the Regulations relating to new comparability plans were published on June 29, 2001 (66 Fed. Reg. 34535). (2004 C. L.).
Rev. Rul. 2001-30, 2001-2 C.B. 46. (2004 C. L.).
Amendments to § 1.401(a)(4)-9 of the Regulations relating to new comparability plans were published on June 29, 2001 (66 Fed. Reg. 34535). (2005 C. L.).
Rev. Rul. 2004-21, 2004-1 C.B. 544. (2005 C. L.).
401(a)(5): Section 401(a)(5)(G) of the Code was amended by PPA ’06 § 861(a)(1) with respect to governmental plans. (New).
Sections 1.401(a)(9)-1 through -9 of the Regulations were published on April 17, 2002 and June 15, 2004 (67 Fed. Reg. 18988 and 69 Fed. Reg. 33288). (2004 C. L.).[2]
401(a)(17): Section 401(a)(17) of the Code was amended by § 611(c) of EGTRRA to increase the compensation limit to $200,000. (2004 C. L.).
Notice 2001-56, 2001-2 C.B. 277. (2004 C. L.).
401(a)(26): Section 401(a)(26)(G) of the Code was amended by PPA ’06 § 861(a)(1) with respect to governmental plans. (New).
Section 401(a)(31) was amended by § 643(b) of EGTRRA to allow employees’ after-tax contributions to be rolled over under certain circumstances. (2004 C. L.).
Section 401(a)(31)(B) was amended by § 657(a) of EGTRRA (as amended by § 411(t) of JCWAA) to provide for the automatic rollover of certain mandatory distributions. The effective date is March 28, 2005. (2004 C. L.).
Notice 2005-5, 2005-1 C.B. 337. (2004 C. L.).
Sections 641, 642 and 643 of EGTRRA (as amended by § 411(q) of JCWAA) amended the definition of eligible retirement plan in § 402 of the Code to include a § 403(b) annuity contract and eligible governmental § 457(b) plan. (2004 C. L.).
Section 636(b) of EGTRRA modified the definition of eligible rollover distribution to exclude hardship distributions. (2004 C. L.).
401(a)(35): PPA ’06 § 901(a)(1) added § 401(a)(35) requiring that defined contribution plans provide employees with the freedom to divest publicly traded securities.[3] (New).
Notice 2006-107, 2006-2 C.B. 1114. (New).
Notice 2008-7, 2008-3 I.R.B. 276, extends certain transitional guidance and transitional relief provided to certain defined contribution plans holding publicly traded employer securities under Notice 2006-107. (New).
401(a)(36): PPA ’06 § 905(b) added § 401(a)(36) regarding distributions to a participant who has attained age 62 and who has not separated from employment at the time of the distribution. (New).
401(k) & 401(m):
Section 401(k)(2) and § 401(k)(10) of the Code were amended by § 646(a)(1) of EGTRRA to permit distributions of elective deferrals from a § 401(k) plan upon severance from employment. (2004 C. L.).
Notice 2002-4, 2002-1 C.B. 298. (2004 C. L.).
Section 636(a) of EGTRRA directed the Secretary of the Treasury to revise the regulations relating to safe harbor hardship distributions of elective deferrals from § 401(k) plans so that the time the employee is prohibited from making elective and employee contributions is reduced from one year to six months after a hardship distribution. (2004 C. L.).
Notice 2001-56. (2004 C. L.).
Notice 2002-4. (2004 C. L.).
Section 401(k)(11) of the Code was amended by § 611(f) of EGTRRA to increase the maximum amount of qualified salary reduction contributions that can be made to SIMPLE 401(k) plans. (2004 C. L.).
Section 402(g) of the Code was amended by § 611(d) of EGTRRA to increase the applicable dollar amount. (2004 C. L.).
Section 401(m)(9) of the Code was amended by § 666 of EGTRRA to eliminate the multiple use test. (2004 C. L.).
Final Regulations under § 401(k) and § 401(m) of the Code were published on December 29, 2004 (69 Fed. Reg. 78144). (2004 C. L.).
Announcement 2007-59, 2007-1 C.B. 1448, provides that a plan will not fail to satisfy the requirements of a § 401(k) safe harbor plan because of a mid-year change to implement a designated Roth contribution program. (2007 C. L.).
PPA ’06 § 826 modified the rules relating to distributions from a § 401(k) plan on account of a participant’s hardship to permit the plan to treat a participant’s beneficiary under the plan the same as the participant’s spouse or dependent. (New).
Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding PPA ’06 § 826. (New).
Announcement 2007-59, 2007-1 C.B. 1448, provides that a plan will not fail to satisfy the requirements of a § 401(k) safe harbor plan because of a mid-year change to implement the PPA ’06 § 826 hardship withdrawals. (New).
PPA ’06 § 827 added § 401(k)(2)(B)(i)(V) which permits reservists called to active duty after September 11, 2001 and before 2008 to take in-service distributions from a § 401(k) plan.[4] (New).
PPA ’06 § 861(a)(2) amended § 401(k)(3)(G) with respect to governmental plans. (New).
PPA ’06 § 902(e)(3) eliminates the gap period income rule for excess contributions in § 401(k)(8)(A)(i). (New).
PPA ’06 § 902 added § 401(k)(13) with respect to qualified automatic contribution arrangements.[5] (New).
PPA ’06 § 902(e)(3) eliminates the gap period income rule for excess aggregate contributions in § 401(m)(6)(A). (New).
PPA ’06 § 902 added § 401(m)(12) with respect to qualified automatic contribution arrangements.[6] (New).
402(c)(2)(A): PPA ’06 § 822(a) amended § 402(c)(2)(A) to permit nontaxable distributions from a qualified plan to be directly rolled over tax-free to either another qualified plan or a § 403(b) plan if the separate accounting requirements are met. (New).
402(c)(11): PPA ’06 § 829(a)(1) added § 402(c)(11) to allow nonspouse beneficiaries to directly roll over distributions from a qualified plan to an individual retirement plan. (New).
Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding § 402(c)(11). (New).
402(f): PPA ’06 § 1102(a) provides that notice required to be provided under § 402(f) may be provided as much as 180 days before the annuity starting date. (New).
Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding PPA ’06 § 1102. (New).
402A: Section 402A of the Code was added by § 617 of EGTRRA to offer optional treatment of elective deferrals as designated Roth contributions to defined contribution plans, effective for taxable years beginning after December 31, 2005. (2004 C. L.).
Final Regulations under § 401(k) and § 401(m) of the Code relating to designated Roth contributions were published on January 3, 2006 (71 Fed. Reg. 6). (2005 C. L.).
Notice 2006-44, 2006-1 C.B. 889, provides a sample amendment for Roth § 401(k) plans. (2006 C. L.).
Final Regulations under § 402A of the Code were published on April 30, 2007 (72 Fed. Reg. 21103). (2006 C. L.).
Section 404(k)(2)(A) of the Code was amended by § 662(a) of EGTRRA (as amended by § 411(w) of JCWAA) to allow ESOP dividends to be reinvested without the loss of dividend deductions. (2005 C. L.).
Notice 2002-2, 2002-1 C.B. 285, provides guidance with respect to the changes made to § 404(k) of the Code and on the effective date of § 409(p) of the Code. (2005 C. L.).
408(q): Section 408(q) of the Code was added by § 602 of EGTRRA (as amended by § 411(i) of JCWAA) to allow for deemed individual retirement accounts (IRAs) in an eligible retirement plan. (2004 C. L.).
Section 1.408(q)-1 of the Regulations was published on July 22, 2004 (69 Fed. Reg. 43735). (2004 C. L.).
408A(e): PPA ’06 § 824 added § 408A(e) which permits rollovers to Roth IRAs from accounts that are not designated Roth accounts that are part of qualified plans, § 403(b) plans, and § 457 plans. (New).
Notice 2008-30, 2008-12 I.R.B. 638, provides guidance regarding PPA ’06 § 824. (New).
409: Section 409(p) of the Code was added by § 656 of EGTRRA relating to restrictions on the allocation of employer securities in an ESOP maintained by an S corporation. (2005 C. L.).
Section 1.409(p)-1T of the Regulations was published on July 21, 2003 (68 Fed. Reg. 42970). (2005 C. L.).
Section 1.409(p)-1T of the Regulations was published on December 17, 2004 (69 Fed. Reg. 75455). (2005 C. L.).
Rev. Proc. 2003-23, 2003-1 C.B. 599, as modified and superseded by Rev. Proc. 2004-14, 2004-1 C.B. 489, allows a direct rollover from an ESOP maintained by an S corporation to an individual retirement plan (IRA). (2005 C. L.).
Rev. Rul. 2003-6, 2003-1 C.B. 286, provides guidance with respect to whether an ESOP maintained by an S corporation is eligible for the delayed effective date of § 409(p) under § 656(d)(2) of EGTRRA. (2005 C. L.).
Rev. Rul. 2004-4, 2004-1 C.B. 414, provides guidance relating to synthetic equity owned by a disqualified person in a nonallocation year of an ESOP maintained by an S corporation. (2005 C. L.).
Final Regulations were published on December 20, 2006 (71 Fed. Reg. 76134) that provide guidance concerning requirements under § 409(p) for ESOPs holding stock of S corporations. (2006 C. L.).
410(b): Final Regulations were published on July 21, 2006 (71 Fed. Reg. 41357) permitting some employees of tax-exempt organizations to be excluded when determining whether a § 401(k) plan meets the § 410(b) minimum coverage requirements. (2006 C. L.).
411(a):
Section 411(a) of the Code was amended by § 633 of EGTRRA (as amended by § 411(o) of JCWAA) to provide for faster vesting of matching contributions. (2004 C. L.).
Rev. Rul. 2003-65, 2003-1 C.B. 1035. (2005 C. L.).
Amendments to § 1.411(d)-3 of the Final Regulations were published on August 9, 2006 (71 Fed. Reg. 45379) with respect to the interaction between the anti-cutback rules of § 411(d)(6) and the nonforfeitability requirements of § 411(a). (2006 C. L.).
Section 411(a) of the Code was amended by § 904 of PPA ’06 to provide for faster vesting of employer nonelective contributions. (New).
Notice 2007-7, 2007-1 C.B. 395, provides guidance regarding § 411(a), as amended by § 904 of PPA ’06. (New).
411(a)(11): Section 411(a)(11)(D) of the Code was added by § 648(a) of EGTRRA (as amended by § 411(r) of JCWAA) to allow amounts attributable to rollover contributions to be disregarded in determining the value of an account balance for involuntary distributions. (2004 C. L.).
PPA ’06 § 1102(a) provides that notice required to be provided under § 411(a)(11) may be provided as much as 180 days before the annuity starting date. Section 1102(b) of PPA ’06 provides that the notice under § 411(a)(11) also include a description of the consequences of failing to defer receipt of a distribution. (New).
411(a)(13): PPA ’06 § 701(b)(2) added § 411(a)(13) with respect to special vesting rules for applicable defined benefit plans, such as cash balance plans.[7] (New).
Notice 2007-6, 2007-1 C.B. 272, provides guidance regarding cash balance plans and other hybrid defined benefit plans. (New).
411(b)(1):
Rev. Rul. 2008-7, 2008-7 I.R.B. 419, addresses (1) the application of the backloading provisions of § 411(b)(1)(A), (B), and (C) to defined benefit cash balance plans and (2) the use of a “greater of” formula in the instance of a conversion of a defined benefit pension plan to a cash balance plan, including limited § 7805(b) relief. (New).
411(b)(5): PPA ’06 § 701(b)(1) added § 411(b)(5) with respect to applicable defined benefit plans, such as cash balance plans, and special rules relating to age.[8] (New).
411(d)(3):
Rev. Rul. 2007-43, 2007-28 I.R.B. 45, provides guidance regarding the partial termination of a defined contribution plan. (2007 C. L.).
411(d)(6):
Central Laborers’ Pension Fund v. Heinz, 124 S. Ct. 2230 (2004). (2005 C. L.).
Rev. Proc. 2005-23, 2005-1 C.B. 991, as modified by Rev. Proc. 2005-76, 2005-2 C.B. 1139. (2005 C. L.).
Section 645(b)(3) of EGTRRA directed the Secretary of the Treasury to issue regulations under § 411(d)(6)(B). (2005 C. L.).
Section 1.411(d)-3 of the Regulations was published on August 12, 2005 (70 Fed. Reg. 47109). (2005 C. L.).
Amendments to § 1.411(d)-3 of the Final Regulations were published on August 9, 2006 (71 Fed. Reg. 45379) with respect to a utilization test. (2006 C. L.).
Section 411(d)(6)(D) and § 411(d)(6)(E) of the Code were added by § 645 of EGTRRA to permit the elimination of certain optional forms of benefit under certain conditions. (2005 C. L.).
Section 1.411(d)-4, Q&A-2(e) of the Regulations was published on January 25, 2005 (70 Fed. Reg. 3475) to implement § 411(d)(6)(E). (2005 C. L.).
Rev. Rul. 2004-20, 2004-1 C.B. 546, provides guidance with respect to whether a qualified pension plan can be a § 412(i) plan if the plan holds life insurance contracts and annuity contracts for benefits at normal retirement age in excess of a participant’s benefits at normal retirement age under the plan. (2005 C. L.).
Notice 2004-59, 2004-2 C.B. 447, provides guidance with respect to restrictions placed on plan amendments following an employer’s election of an alternative deficit reduction contribution. (2005 C. L.).
414(d): PPA ’06 § 906(a)(1) added language to the definition of governmental plan in § 414(d) with respect to Indian tribal governments. (New).
Notice 2006-89, 2006-2 C.B. 772, provides transition relief for plans subject to PPA ’06 § 906. (New).
Notice 2007-67, 2007-2 C.B. 467, extends the transition relief provided in Notice 2006-89. (New).
414(f)(6): PPA ’06 § 1106(b) added § 414(f)(6) with respect to a multiemployer status election. Section 6611(a)(2) and (b)(2) of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 amends § 414(f)(6). (New).
414(v): Section 414(v) of the Code was added by § 631 of EGTRRA (as amended by § 411(o) of JCWAA) to allow for catch-up contributions for individuals age 50 or older. (2004 C. L.).
Regulations under § 414(v) were published on July 8, 2003 (68 Fed. Reg. 40510). (2004 C. L.).
414(w): PPA ’06 § 902(d)(1) added § 414(w) with respect to eligible automatic contribution arrangements.[9] (New).
Section 415(c) of the Code was amended by §§ 611(b) and 632 of EGTRRA (as amended by § 411(p) of JCWAA) to increase the maximum annual additions permitted to the lesser of $40,000 or 100% of compensation. (2004 C. L.).
Rev. Rul. 2001-51, 2001-2 C.B. 427. (2004 C. L.).
Rev. Rul. 2002-27, 2002-1 C.B. 925, provided that “compensation” within the meaning of § 415(c) could in certain situations include “deemed § 125 compensation”. (2004 C. L.).
Section 415(b) of the Code was amended by § 611 of EGTRRA to increase the dollar limit and change the age when the limit is reduced or increased. (2005 C. L.).
Section 415(b)(2)(E)(ii) of the Code was amended by § 101(b)(4) of PFEA to fix the percentage at 5.5%. (2005 C. L.).
Notice 2004-78, 2004-2 C.B. 879, provides the actuarial assumptions that must be used for distributions with annuity starting dates occurring during the plans years beginning in 2004 and 2005. (2005 C. L.).
Final Regulations under § 415 with respect to pre-PPA ’06 law were published April 5, 2007 (72 Fed. Reg. 16878). (2006 C. L.).
Section 415(b)(2)(E)(ii) of the Code was amended by § 303 of PPA ’06 regarding the interest rate assumption for applying benefit limitations to lump sum distributions. (New).
Final Regulations under § 415 were published April 5, 2007 (72 Fed. Reg. 16878), which provide guidance regarding § 415(b)(2)(E)(ii), as amended by PPA ’06. (New).
PPA ’06 § 832(a) amended § 415(b)(3) to eliminate the active participant restriction from the “average compensation for high 3 years” definition. (New).
PPA ’06 § 906(b)(1)(A) & (B) modified §§ 415(b)(2)(H) and 415(b)(10), respectively, regarding Indian tribal governments. (New).
PPA ’06 § 867(a) removed the 100% of compensation limitation for a church plan participant if the participant has never been a highly compensated employee of the church in § 415(b)(11). (New).
Final Regulations under § 415 were published April 5, 2007 (72 Fed. Reg. 16878), which provide guidance regarding § 415(b)(11), as added by PPA ’06. (New).
Section 416 of the Code was amended by § 613 of EGTRRA (as amended by § 411(k) of JCWAA) to make several changes to the top-heavy rules. (2004 C. L.).
Section 416(g)(4)(H) of the Code was added by § 613(d) of EGTRRA to provide certain safe harbor § 401(k) plans and § 401(m) plans an exemption from the top-heavy rules. (2004 C. L.).
Rev. Rul. 2004-13, 2004-1 C.B. 485. (2004 C. L.).
Section 416(c)(1)(C) of the Code was amended by § 613(e) of EGTRRA (as amended by § 411(k)(1) of JCWAA) to provide when a frozen defined benefit plan is exempt from the minimum benefit requirements. (2005 C. L.).
PPA ’06 § 902(c)(1) amended § 416(g)(4)(H)(i) by inserting § 401(k)(13) of the Code . (New).
PPA ’06 § 902(c)(2) amended § 416(g)(4)(H)(ii) by inserting § 401(m)(12) of the Code. (New).
Section 1.417(e)-1 of the Regulations was published on July 16, 2003 (68 Fed. Reg. 41906) relating to retroactive annuity starting dates. (2005 C. L.).
Final Regulations under § 417(a)(3) were published on March 24, 2006 (71 Fed. Reg. 14798) regarding the disclosure of the relative value of optional forms of benefit. (2006 C. L.).
PPA ’06 § 1102(a) provides that notice required to be provided under § 417 may be provided as much as 180 days before the annuity starting date. (New).
PPA ’06 § 302(b) amended the applicable interest rate and mortality table to be used for determining the present value of lump sum distributions in § 417(e)(3). (New).
Rev. Rul. 2007-67, 2007-48 I.R.B. 1047, addresses the mortality tables required by § 417(e)(3). (New).
Notice 2008-30, 2008-12 I.R.B. 638, provides guidance regarding PPA ’06 § 302. (New).
PPA ’06 § 1004(a) added the qualified optional survivor annuity benefit to § 417. (New).
Notice 2008-30, 2008-12 I.R.B. 638, provides guidance regarding PPA ’06 § 1004. (New).
Section 6613 of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007, amends § 420(c)(3)(A) regarding minimum cost requirements for transfers of excess pension assets to retiree health accounts. (2007 C. L.).
PPA ’06 § 114(d)(1) modified the definition of the term “excess pension assets” in § 420(e)(2). Section 6612(b) of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 amends § 420(e)(2)(B). (2007 C. L.).
432(e): PPA ’06 § 212(a) added § 432(e) which requires that a rehabilitation plan be adopted for multiemployer plans in critical status and permits certain reductions and adjustable benefits. (New).
Section 4975 of the Code was amended by § 612 of EGTRRA to allow plan loans for Subchapter S shareholder-employees. (2004 C. L.).
Section 4975(f) of the Code was amended by § 240 of AJCA to allow an S corporation distribution on allocated shares to pay off an exempt loan as long as equal amounts are allocated to participant accounts. (2005 C. L.).
Katrina Emergency Tax Relief Act of 2005, Pub. L. 109-73. (2005 C. L.).
Notice 2005-92, 2005-2 C.B. 1165. (2005 C. L.).
Announcement 2005-70, 2005-2 C.B. 682. (2005 C. L.).
Gulf Opportunity Zone Act of 2005, Pub. L. 109-135, added § 1400M and § 1400Q to the Code to provide certain tax benefits to those areas affected by Hurricanes Katrina, Wilma, and Rita. (2006 C. L.).
Rev. Rul. 2002-42, 2002-2 C.B. 76, provides guidance with respect to a situation where a money purchase pension plan is merged or converted into a profit sharing plan. (2004 C. L.).
Rev. Proc. 2002-21, 2002-1 C.B. 911, provides guidance with respect to defined contribution retirement plans maintained by professional employer organizations. (2004 C. L.).
Rev. Proc. 2003-86, 2003-2 C.B. 1211, amplifies Rev. Proc. 2002-21 relating to relief provided for certain defined contribution plans maintained by professional employer organizations. (2004 C. L.).
Rev. Rul. 2004-10, 2004-1 C.B. 484, provides guidance with respect to charging administrative expenses to former and current employees. (2004 C. L.).
Rev. Rul. 2004-12, 2004-1 C.B. 478, provides guidance with respect to the distribution restrictions applicable to rollover contributions. (2004 C. L.).
Rev. Rul. 2001-62, 2001-2 C.B. 632, provides guidance with respect to the mortality table under § 415(b)(2)(E)(v) of the Code and the applicable mortality table under § 417(e)(3)(A)(ii)(I) of the Code. (2005 C. L.).
Rev. Rul. 2003-11, 2003-1 C.B. 285, provides guidance with respect to satisfying the nondiscrimination rules under § 401(a)(4) of the Code and the minimum coverage requirements under § 410(b) of the Code when applying the increased compensation limit to former employees. (2005 C. L.).
Rev. Rul. 2005-55, 2005-2 C.B. 284, provides guidance with respect to medical reimbursement accounts under a profit sharing plan. (2005 C. L.).
Section 1.401(a)-21 of the Final Regulations were published on October 20, 2006 (71 Fed. Reg. 61877) setting forth standards for the use of an electronic medium to applicable notices to recipients or to make participant elections. (2006 C. L.).
Notice 2008-21, 2008-7 I.R.B. 431, provides transitional guidance for 2008 under § 436 for small plans with end-of-year valuation dates. (New).
Notice 2008-73, 2008-38 I.R.B. 717, expands transition relief of Notice 2008-21. (New).
The following guidance contains sample or model amendments: Notice 2001-57, 2001-2 C.B. 279 (miscellaneous EGTRRA amendments); Rev. Rul. 2001-62, 2001-2 C.B. 632 (applicable mortality table); Rev. Proc. 2002-29, 2002-1 C.B. 1176 (required minimum distribution amendments); Rev. Proc. 2003-13, 2003-1 C.B. 317 (required language for deemed IRAs); Notice 2005-5 (automatic rollover); and Notice 2006-44, 2006-1 C.B. 889 (Roth § 401(k) plans).
VII. HEROES EARNINGS ASSISTANCE AND RELIEF TAX ACT OF 2008 PROVISIONS
As provided in section V of this notice, plans submitting in Cycle D may be amended for the HEART Act, but the Service will not consider the HEART Act in issuing determination letters. The HEART Act provisions are listed below.
401(a)(37): Section 104(a) of the HEART Act added Code § 401(a)(37) with respect to benefits payable on the death of a plan participant while performing qualified military service. (New).
414(u)(9): Section 104(b) of the HEART Act amended § 414(u) of the Code by adding a paragraph regarding how a plan may provide benefit accruals for a person who dies or becomes disabled while performing qualified military service. (New).
414(u)(12): Section 105(b)(1) of the HEART Act added § 414(u)(12) with respect to the treatment of differential wage payments during the period a person, while on active duty, is performing service in the uniformed services. (New).
[1] See Notice 2007-3, 2007-1 C.B. 255, Notice 2005-101, 2005-2 C.B. 1219, and Notice 2004-84, 2004-2 C.B. 1030, for the 2006, 2005, and 2004 Cumulative Lists respectively.
[2] Proposed regulations under § 401(a)(9) were published July 10, 2008 (73 Fed. Reg. 39630), which permit a governmental plan to comply with the required minimum distribution rules of § 401(a)(9) by using a reasonable and good faith interpretation of the statute.
[3] Proposed regulations under § 401(a)(35) were published January 3, 2008 (73 Fed. Reg. 421) and may be relied upon until final regulations are issued.
[4] Section 107(a) of the HEART Act extends the applicability of the qualified reservist distribution to individuals ordered or called to active duty after December 31, 2007.
[5] Proposed regulations under § 401(k) with respect to qualified automatic contribution arrangements were published November 8, 2007 (72 Fed. Reg. 63144) and may be relied upon until final regulations are issued.
[6] Proposed regulations under § 401(m) with respect to qualified automatic contribution arrangements were published November 8, 2007 (72 Fed. Reg. 63144) and may be relied upon until final regulations are issued.
[7] Proposed regulations under § 411(a)(13) were published December 28, 2007 (72 Fed. Reg. 73680) and may be relied upon until final regulations are issued.
[8] Proposed regulations under § 411(b)(5) were published December 28, 2007 (72 Fed. Reg. 73680) and may be relied upon until final regulations are issued.
[9] Proposed regulations under § 414(w) with respect to eligible automatic contribution arrangements were published November 8, 2007 (72 Fed. Reg. 63144) and may be relied upon until final regulations are issued.
Midwestern and Hurricane Ike Disaster Areas and Population Estimates
This notice informs the States of Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin of those counties that comprise the Midwestern disaster area for purposes of certain provisions of the Tax Extenders and Alternative Minimum Tax Relief Act of 2008 (Division C of Public Law 110-343) (Act). In addition, this notice informs these States of the portion of their State population that is located in the Midwestern disaster area for purposes of determining the (1) Midwestern disaster housing amount under § 1400N(c)(1)(B) of the Internal Revenue Code (Code), as applied and modified by section 702 of the Act, (2) maximum aggregate face amount of qualified Midwestern disaster area bonds (Midwestern Disaster Bonds) which may be designated under § 1400N(a)(3)(A) of the Code, as applied and modified by section 702 of the Act, and (3) maximum aggregate face amount of Midwestern tax credit bonds (Midwestern Tax Credit Bonds) which may be designated under § 1400N(l)(4)(C), as applied and modified by section 702 of the Act.
This notice also informs the States of Texas and Louisiana of the counties and parishes that comprise the Hurricane Ike disaster area for purposes of certain provisions of the Act. In addition, this notice informs the States of Texas and Louisiana of their State population portion for purposes of determining the (1) Hurricane Ike Recovery Assistance housing amount under § 1400N(c)(1)(B) of the Code, as applied and modified by section 704(b) of the Act, and (2) maximum aggregate face amount of qualified Hurricane Ike disaster area bonds (Hurricane Ike Bonds) which may be designated under § 1400N(a)(3)(A), as applied and modified by section 704(a) of the Act.
This notice also provides instructions for the reporting of the issuance of Midwestern Disaster Bonds, Midwestern Tax Credit Bonds, and Hurricane Ike Bonds.
The Act provides certain tax benefits for specified counties in certain Midwestern States affected by severe storms, tornados, or flooding, and for specified counties in Texas and parishes in Louisiana affected by Hurricane Ike.
Section 702(a) of the Act provides that, subject to the modifications described in section 702 of the Act, certain provisions of or relating to the Code shall apply to any Midwestern disaster area in addition to the areas to which such provisions otherwise apply. Section 702(a)(1) provides, in part and with certain modifications, that § 1400N(a), § 1400N(c), and § 1400N(l) of the Code shall apply to the Midwestern disaster area.
Section 702(b) of the Act defines the term “Midwestern disaster area” to mean an area (1) with respect to which a major disaster has been declared by the President on or after May 20, 2008, and before August 1, 2008, under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (Stafford Act) by reason of severe storms, tornados, or flooding occurring in any of the States of Arkansas, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, and Wisconsin, and (2) determined by the President to warrant individual or individual and public assistance from the Federal government under the Stafford Act for damages attributable to the severe storms, tornados, or flooding.
Under section 702(c) of the Act, any reference in the relevant provisions of § 1400N of the Code to the Gulf Opportunity Zone (GO Zone) is treated as a reference to any Midwestern disaster area and any reference to the GO Zone within a State is treated as a reference to all Midwestern disaster areas within the State.
Section 704(a) of the Act provides that, with certain modifications, § 1400N(a) of the Code shall apply to any Hurricane Ike disaster area in addition to any other area referenced in § 1400N(a). Section 704(b) of the Act provides, with certain modifications, that § 1400N(c) shall apply to any Hurricane Ike disaster area in addition to any other area referenced in § 1400N(c).
Section 704(c) of the Act defines the term “Hurricane Ike disaster area” to mean an area in the State of Texas or Louisiana (1) with respect to which a major disaster has been declared by the President on September 13, 2008, under section 401 of the Stafford Act by reason of Hurricane Ike, and (2) determined by the President to warrant individual or individual and public assistance from the Federal government under the Stafford Act for damages attributable to Hurricane Ike.
MIDWESTERN DISASTER AREA COUNTIES
The counties located in the Midwestern disaster area are:
Arkansas— Arkansas, Benton, Cleburne, Conway, Crittenden, Grant, Lonoke, Mississippi, Phillips, Pulaski, Saline, and Van Buren.
Illinois— Adams, Calhoun, Clark, Coles, Crawford, Cumberland, Douglas, Edgar, Hancock, Henderson, Jasper, Jersey, Lake, Lawrence, Mercer, Rock Island, Whiteside, and Winnebago.
Indiana— Adams, Bartholomew, Brown, Clay, Daviess, Dearborn, Decatur, Gibson, Grant, Greene, Hamilton, Hancock, Hendricks, Henry, Huntington, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Madison, Marion, Monroe, Morgan, Owen, Parke, Pike, Posey, Putnam, Randolph, Ripley, Rush, Shelby, Sullivan, Tippecanoe, Vermillion, Vigo, Washington, and Wayne.
Iowa— Adair, Adams, Allamakee, Appanoose, Audubon, Benton, Black Hawk, Boone, Bremer, Buchanan, Butler, Cass, Cedar, Cerro Gordo, Chickasaw, Clarke, Clayton, Clinton, Crawford, Dallas, Davis, Decatur, Delaware, Des Moines, Dubuque, Fayette, Floyd, Franklin, Fremont, Greene, Grundy, Guthrie, Hamilton, Hancock, Hardin, Harrison, Henry, Howard, Humboldt, Iowa, Jackson, Jasper, Johnson, Jones, Keokuk, Kossuth, Lee, Linn, Louisa, Lucas, Madison, Mahaska, Marion, Marshall, Mills, Mitchell, Monona, Monroe, Montgomery, Muscatine, Page, Polk, Pottawattamie, Poweshiek, Ringgold, Scott, Story, Tama, Union, Van Buren, Wapello, Warren, Washington, Webster, Winnebago, Winneshiek, Worth, and Wright.
Missouri— Adair, Andrew, Barry, Callaway, Cass, Chariton, Clark, Gentry, Greene, Harrison, Holt, Jasper, Johnson, Lewis, Lincoln, Linn, Livingston, Macon, Marion, Monroe, Newton, Nodaway, Pike, Putnam, Ralls, St. Charles, Stone, Taney, Vernon, and Webster.
Nebraska— Buffalo, Butler, Colfax, Custer, Dawson, Douglas, Gage, Hamilton, Holt, Jefferson, Kearney, Lancaster, Platte, Richardson, Sarpy, and Saunders.
Wisconsin— Adams, Calumet, Columbia, Crawford, Dane, Dodge, Fond du Lac, Grant, Green, Green Lake, Iowa, Jefferson, Juneau, Kenosha, La Crosse, Manitowoc, Marquette, Milwaukee, Monroe, Ozaukee, Racine, Richland, Rock, Sauk, Sheboygan, Vernon, Walworth, Washington, Waukesha, and Winnebago.
Although section 702(b) of the Act references the States of Kansas, Michigan, and Minnesota as Midwestern States, no county in these three States has been determined to warrant individual or individual and public assistance under the Stafford Act for damages attributable to severe storms, tornados, or flooding. Accordingly, this notice does not apply to these States.
HURRICANE IKE DISASTER AREA COUNTIES AND PARISHES
The counties and parishes located in the Hurricane Ike disaster area are:
Louisiana— Acadia, Allen, Beauregard, Calcasieu, Cameron, Iberia, Jefferson, Jefferson Davis, Lafourche, Livingston, Orleans, Plaquemines, Sabine, St. Martin, St. Mary, St. Tammany, Tangipahoa, Terrebonne, Vermilion, and Vernon.
Texas— Angelina, Austin, Brazoria, Chambers, Cherokee, Fort Bend, Galveston, Gregg, Grimes, Hardin, Harris, Harrison, Houston, Jasper, Jefferson, Liberty, Madison, Matagorda, Montgomery, Nacogdoches, Newton, Orange, Polk, Rusk, Sabine, San Augustine, San Jacinto, Shelby, Smith, Trinity, Tyler, Walker, Waller, and Washington.
LOW-INCOME HOUSING TAX CREDIT: ADDITIONAL HOUSING CREDIT AMOUNT
A. Midwestern disaster area.
Section 702(d)(2) of the Act provides, in part, that § 1400N(c) of the Code shall apply [to the Midwestern disaster area] with certain modifications. Section 702(d)(2)(A) of the Act provides that the modifications only apply to calendar years 2008, 2009, and 2010. Section 702(d)(2)(B) of the Act substitutes “Disaster Recovery Assistance housing amount” for “the Gulf Opportunity housing amount” each place it appears in § 1400N(c). As a result, § 1400N(c)(1), as applied and modified by section 702 of the Act, provides that, for purposes of § 42, in the case of calendar years 2008, 2009, and 2010, the State housing credit ceiling of each State, any portion of which is located in the Midwestern disaster area, shall be increased by the lesser of—
(i) the aggregate housing credit dollar amount allocated by the State housing credit agency of such State to buildings located in the Midwestern disaster area for such calendar year, or
(ii) the Disaster Recovery Assistance housing amount for such State for such calendar year.
Section 702(d)(2)(C) of the Act modifies § 1400N(c)(1)(B) of the Code by substituting “$8” for “$18” and by substituting “before the earliest applicable disaster date for Midwestern disaster areas within the State” for “before August 28, 2005.” As a result, § 1400N(c)(1)(B), as applied and modified by section 702 of the Act, provides that the term “Disaster Recovery Assistance housing amount” means, for any calendar year, the amount equal to the product of $8 multiplied by the portion of the State population that is in the Midwestern disaster area (as determined on the basis of the most recent census estimate of resident population released by the Bureau of the Census before the earliest applicable disaster date for Midwestern disaster areas within the State).
B. Hurricane Ike disaster area.
Section 704(b) of the Act provides, in part, that § 1400N(c) of the Code shall apply to any Hurricane Ike disaster area, but with certain modifications. Section 704(b)(1) of the Act provides that the modifications only apply to calendar years 2008, 2009, and 2010. Section 704(b)(2) of the Act substitutes “Hurricane Ike disaster area” for “the Gulf Opportunity Zone” each place it appears in § 1400N(c) and section 704(b)(3) of the Act substitutes “Hurricane Ike Recovery Assistance housing amount” for “Gulf Opportunity housing amount” each place it appears in § 1400N(c). As a result, § 1400N(c)(1), as applied and modified by 704(b) of the Act, provides that, for purposes of § 42, in the case of calendar years 2008, 2009, and 2010, the State housing credit ceiling of each State, any portion of which is located in the Hurricane Ike disaster area, shall be increased by the lesser of—
(i) the aggregate housing credit dollar amount allocated by the State housing credit agency of such State to buildings located in the Hurricane Ike disaster area for such calendar year, or
(ii) the Hurricane Ike Recovery Assistance housing amount for such State for such calendar year.
Section 704(b)(4) of the Act modifies § 1400N(c)(1)(B) of the Code to provide that for purposes of § 1400N(c)(1)(A), the term “Hurricane Ike housing amount” [i.e., Hurricane Ike Recovery Assistance housing amount] means, for any calendar year, the amount equal to the product of $16 multiplied by the portion of the State population that is in (1) the Texas counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and (2) the Louisiana parishes of Calcasieu and Cameron. These population amounts are determined on the basis of the most recent census estimate of resident population released by the Bureau of Census before September 13, 2008.
TAX-EXEMPT BONDS AND TAX CREDIT BONDS
Midwestern Disaster Bonds. Section 702(d)(1) of the Act provides, in part, that § 1400N(a) of the Code shall apply to a qualified Midwestern Disaster Bond with certain modifications as described therein. Section 702(d)(1)(B) of the Act substitutes “any State in which a Midwestern disaster area is located” for “the State of Alabama, Louisiana, or Mississippi” in § 1400N(a)(2)(B). Section 702(d)(1)(C) of the Act substitutes “designated for purposes of this section (on the basis of providing assistance to areas in the order in which such assistance is most needed)” for “designated for purposes of this section” in § 1400N(a)(2)(C). Section 702(d)(1)(D) of the Act substitutes “January 1, 2013” for “January 1, 2011” where it appears in § 1400N(a)(2)(D). As a result, § 1400N(a), as applied and modified by section 702 of the Act, provides generally for the designation and issuance of Midwestern Disaster Bonds with respect to any State in which a Midwestern disaster area is located subject to certain limitations including a requirement that such Midwestern Disaster Bonds be issued after the date of enactment and before January 1, 2013.
Section 702(d)(1)(E) of the Act provides the limitation on the amount of Midwestern Disaster Bonds that can be designated for issuance. Section 702(d)(1)(E) substitutes “$1,000” for “$2,500” and “before the earliest applicable disaster date for Midwestern disaster areas within the State” for “before August 28, 2005” where it appears in § 1400N(a)(3)(A) of the Code. As a result, § 1400N(a)(3)(A), as applied and modified by section 702(d)(1)(E) of the Act, provides that the maximum aggregate face amount of bonds that may be designated for any State shall not exceed the product of $1,000 multiplied by the portion of the State population which is in the Midwestern disaster area (as determined on the basis of the most recent census estimate of resident population released by the Bureau of Census before the earliest applicable disaster date for Midwestern disaster areas within the State).
Midwestern Tax Credit Bonds. Section 702(d)(7) of the Act provides, in part, that § 1400N(l) of the Code shall apply to tax credit bonds issued in connection with Midwestern disaster areas, with certain modifications as described therein. Section 702(d)(7)(A) provides that § 1400N(l) shall apply by substituting “Midwestern tax credit bond” for “Gulf tax credit bond” each place it appears. Section 702(d)(7)(B) provides that § 1400N(l)(4)(A)(i) shall be applied by substituting “any State in which a Midwestern disaster area is located or any instrumentality of the State” for “the State of Alabama, Louisiana, or Mississippi.” Section 702(d)(7)(C) substitutes “after December 31, 2008 and before January 1, 2010” for “after December 31, 2005, and before January 1, 2007” in § 1400N(l)(4)(A)(vi). As a result, § 1400N(l), as applied and modified by section 702 of the Act, provides generally for the designation and issuance of Midwestern Tax Credit Bonds with respect to any State in which a Midwestern disaster area is located subject to certain limitations including a requirement that such Midwestern Tax Credit Bonds be issued after December 31, 2008, and before January 1, 2010.
Section 702(d)(7)(D) of the Act provides the limitation on the amount of Midwestern Tax Credit Bonds that can be designated for issuance. Section 702(d)(7)(D) provides that § 1400N(l)(4)(C) shall be applied by substituting “shall not exceed $100,000,000 for any State with an aggregate population located in all Midwestern disaster areas within the State of at least 2,000,000, $50,000,000 for any State with an aggregate population located in all Midwestern disaster areas within the State of at least 1,000,000 but less than 2,000,000, and zero for any other State. The population of a State within any area shall be determined on the basis of the most recent census estimate of resident population released by the Bureau of Census before the earliest applicable disaster date for Midwestern disaster areas within the State” for “shall not exceed” and all that follows in § 1400N(l)(4)(C). As a result, § 1400N(l)(4)(C), as applied and modified by section 702 of the Act, provides that the maximum aggregate face amount of bonds that may be designated shall not exceed $100,000,000 for any State with an aggregate population located in all Midwestern disaster areas within the State of at least 2,000,000, $50,000,000 for any State with an aggregate population located in all Midwestern disaster areas within the State of at least 1,000,000 but less than 2,000,000, and zero for all other States. For purposes of applying the limitation on the amount of Midwestern Tax Credit Bonds to be issued, the population of a State within any area shall be determined on the basis of the most recent census estimate of resident population released by the Bureau of Census before the earliest applicable disaster date for Midwestern disaster areas within the State.
Hurricane Ike Bonds. Section 704(a)(1) of the Act provides that § 1400N(a) of the Code shall apply to any Hurricane Ike disaster area in addition to any other areas referenced in § 1400N(a), with certain modifications as described therein. Section 704(a)(2) of the Act substitutes “any State in which any Hurricane Ike disaster area is located” for “the State of Alabama, Louisiana, or Mississippi” in § 1400N(a)(2)(B). Section 704(a)(3) of the Act substitutes “designated for purposes of this section (on the basis of providing assistance to areas in the order in which such assistance is most needed)” for “designated for purposes of this section” in § 1400N(a)(2)(C). Section 704(a)(4) of the Act substitutes “January 1, 2013” for “January 1, 2011” where it appears in § 1400N(a)(2)(D). As a result, § 1400N(a)(2)(D), as applied and modified by section 704 of the Act, provides generally for the designation and issuance of Hurricane Ike Bonds with respect to any State in which a Hurricane Ike disaster area is located subject to certain limitations including a requirement that such Hurricane Ike Bonds be issued after the date of enactment and before January 1, 2013.
Section 704(a)(5) of the Act provides the limitation on the amount of Hurricane Ike Bonds that can be designated for issuance. As a result, § 1400N(a)(3)(A), as applied and modified by section 704 of the Act, provides that the maximum aggregate face amount of bonds that may be designated under § 1400N(a)(3)(A) for any State shall not exceed the product of $2,000 multiplied by the portion of the State population which is in (1) the Texas counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and (2) the Louisiana parishes of Calcasieu and Cameron (as determined on the basis of the most recent census estimate of resident population released by the Bureau of Census before September 13, 2008).
APPLICABLE CENSUS POPULATION AMOUNTS
The most recent census estimate of the resident population released by the U.S. Census Bureau that reflects the portion of State population that is in (1) the Midwestern disaster area, or (2) the Texas counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and the Louisiana parishes of Calcasieu and Cameron, is the July 1, 2007, Annual Estimates of the Population for Counties released by the U.S. Census Bureau on March 20, 2008, in Press Release CB08-47.
A. Midwestern Disaster Areas.
The portion of each State’s population that is in the Midwestern disaster area is determined by adding together the population estimates provided by Press Release CB08-47 for each county located in the Midwestern disaster areas for that State. These results should be used to determine each State’s Midwestern disaster housing amount under § 1400N(c)(1)(B) of the Code (as applied by section 702 of the Act), the maximum aggregate face amount of Midwestern Disaster Bonds that can be designated under § 1400N(a)(3) (as applied by section 702 of the Act), and the maximum aggregate face amount of Midwestern Tax Credit Bonds that can be designated under § 1400N(l)(4)(C) (as applied by section 702 of the Act).
Based on the foregoing, the portion of each State’s population that is in a Midwestern disaster area is provided below:
Arkansas 957,100
Illinois 1,515,271
Indiana 3,098,222
Iowa 2,615,995
Missouri 1,414,492
Nebraska 1,136,088
Wisconsin 3,830,112
B. Hurricane Ike Disaster Areas.
The portion of the each State’s population that is used in calculating the Hurricane Ike Recovery Assistance housing amount and the aggregate amount of Hurricane Ike Bonds that can be issued is determined by adding together the population estimates provided by Press Release CB08-47 for (in the case of Texas) the counties of Brazoria, Chambers, Galveston, Jefferson, and Orange, and (in the case of Louisiana) the parishes of Calcasieu and Cameron. These results should be used to determine the Hurricane Ike Recovery Assistance housing amount for Texas and Louisiana under § 1400N(c)(1)(B) (as applied by section 704(b) of the Act) and the maximum aggregate face amount of Hurricane Ike Bonds that may be designated under § 1400N(a)(3) (as applied by section 704(a) of the Act).
Based on the foregoing, the portion of each State’s population to be used for these purposes is provided below:
Louisiana 191,926
Texas 931,635
REPORTING REQUIREMENTS FOR TAX-EXEMPT BONDS AND TAX CREDIT BONDS
Pending further guidance from the Internal Revenue Service (IRS) regarding the applicable forms to be used for information reporting, issuers of Midwestern Disaster Bonds, Midwestern Tax Credit Bonds and Hurricane Ike Bonds should report the issuance on IRS Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues, with modifications as described below:
Midwestern Disaster Bonds. Issuers of Midwestern Disaster Bonds should report the issuance of bonds as follows:
Report the issuance of mortgage revenue bonds on Line 20c of IRS Form 8038 and enter “Midwestern Disaster Mortgage Bonds” on the line provided.
Report the issuance of Midwestern Disaster Bonds that are not mortgage revenue bonds on Line 11q of IRS Form 8038 and enter “Midwestern Disaster Exempt Facility Bonds” on the line provided.
Midwestern Tax Credit Bonds. Issuers of Midwestern Tax Credit Bonds should report the issuance on Line 20c of IRS Form 8038 and enter “Midwestern Disaster Tax Credit Bonds” on the line provided.
Hurricane Ike Bonds. Issuers of Hurricane Ike Bonds should report the issuance of bonds as follows:
Report the issuance of mortgage revenue bonds on Line 20c of IRS Form 8038 and enter “Hurricane Ike Mortgage Bonds” on the line provided.
Report the issuance of Hurricane Ike Bonds that are not mortgage revenue bonds on Line 11q of IRS Form 8038 and enter “Hurricane Ike Exempt Facility Bonds” on the line provided.
The principal authors of this notice are Christopher J. Wilson, Office of the Associate Chief Counsel (Passthroughs and Special Industries) and Carla Young, Office of the Associate Chief Counsel (Financial Institutions and Products). For further information regarding the low-income housing tax credit, contact Mr. Wilson at (202) 622-3040. For further information regarding tax-exempt or tax credit bonds, contact Ms. Young at (202) 622-3980 (not toll-free calls).
Instructions in Publication 1187, Specifications for Filing of Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, Electronically, Clarified
This announcement clarifies instructions in Publication 1187, Specifications for Filing of Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, Electronically. For all ‘City’ address fields in the Transmitter ‘T’ Record, the Withholding Agent ‘W’ Record, and the Recipient ‘Q’ Record, only enter alpha characters and those special characters identified within the instructions. Do not input any numeric or foreign characters in these fields. Entering numeric or foreign characters in ‘City’ address fields will cause your file to be rejected. Use this announcement in conjunction with Publication 1187, revised August 2008 and Announcement 2008-95, 2008-42 I.R.B. 964, to format your Form 1042-S information for Tax Year 2008.
If you have questions concerning the filing of Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, please contact the Internal Revenue Service ECC-MTB toll-free at 866-455-7438 within the U.S. or 304-263-8700 outside the U.S.
3D Athletics, Inc., Denison TX
After School Community Learning Center, Wingate NC
Alpha and Omega Fraternity, Inc., Goose Creek SC
Arkansas Committee on Occupational Safety & Health, Little Rock AR
Asociacion Mision Latina, Galand TX
BJ Connective Concepts, Inc., Cincinnati OH
Center for Educator Renewal Through the Arts, Houston TX
Center for the Advancement of Health and Biosciences, Menlo Park CA
Change Your World, Inc., Ridgeland MS
Changing Faces, Detroit MI
Charis Corporation, Inc., Jacksonville FL
Concert America for the Children, Inc., Norwood NC
Confidence Learning Center, Florissant MO
Covenant Life Ministries International, Inc., Hampton GA
Creative Housing Coalition, Lacanada CA
Crescent City Case Management, Inc., Richmond TX
DNA Economic Development Corporation, Inc., Washington DC
Edna Herbert Phillips Endowment, Inc., Schulenburg TX
Enterprise for Enterprenerrial Education, Hickory NC
Exile Alternative Diversion Program a California Nonprofit Public Bene, Richmond CA
Family Building Institute, Inc., Sussex WI
Family Support Circle, McDonough GA
First Community Outreach Center, Inc., Kansas City KS
God Cares Ministries, Denver CO
Happy Tails Animal Care Center, Monticello IN
Hogar Amparo, Inc., San Juan PR
Julian Youth Center, Memphis TN
Just Us, Inc., Dallas TX
Life Long Individual and Family Enrichment Center, Inc., Hampton GA
Lighthouse Community Information and Referral, Inc., Harrisburg PA
MCPBA Foundation, Inc., Miami FL
New Life Institute Hopecenter, Inc., Haslett MI
Peoples Advocacy Group, Washington DC
Phi Iota Iota Foundation, LaPlace LA
Plano Institute, Richmond Heights OH
Positive Image Program, Chicago IL
Project H.O.M.E., Inc., Bronx NY
Rainbow Women Wellness & Resource Center, Grants NM
Renaissance Outreach Services, Raleigh NC
Sailing Aboard Recovery Foundation, Inc., Catonsville MD
Shekinah Glory Helping Hand Services Corp., Miami FL
Sierras Center, LTD, Danielsville GA
South Shore Line Heritage Foundation, Gary IN
Stratford Community Alliance Network, Dallas TX
Village Group Partner’s Inc., Bradenton FL
Whole Village, Inc., Amite LA
Worldview Institute, Coral Gables FL
Young Athletes for Tomorrow, Detroit MI
Youth Challenge, Inc., Columbus MS
Yuma Tennis, Inc., Yuma AZ
This document provides notice of a public hearing on proposed regulations (REG-106251-08, 2008-39 I.R.B. 774) relating to options granted under an employee stock purchase plan as defined in section 423 of the Internal Revenue Code. These proposed regulations affect certain taxpayers who participate in the transfer of stock pursuant to the exercise of options granted under an employee stock purchase plan.
The public hearing is being held on Thursday, January 15, 2009, at 10:00 a.m. The IRS must receive outlines of the topics to be discussed at the public hearing by Thursday, December 18, 2008.
Send Submissions to CC:PA:LPD:PR (REG-106251-08), room 5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday to CC:PA:LPD:PR (REG-106251-08), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC, or sent electronically via the Federal eRulemaking Portal at www.regulations.gov (IRS-REG-106251-08).
(Filed by the Office of the Federal Register on November 21, 2008, 8:45 a.m., and published in the issue of the Federal Register for November 24, 2008, 73 F.R. 70929)
Bulletins 2008-27 through 2008-50
2008-117 2008-49 I.R.B. 2008-49 1258
2008-118 2008-49 I.R.B. 2008-49 1258
2008-119 2008-50 I.R.B. 2008-50
2008-120 2008-50 I.R.B. 2008-50
2008-121 2008-50 I.R.B. 2008-50
2008-106 2008-49 I.R.B. 2008-49 1239
2008-107 2008-50 I.R.B. 2008-50
2008-108 2008-50 I.R.B. 2008-50
2008-109 2008-50 I.R.B. 2008-50
2008-70 2008-49 I.R.B. 2008-49 1240
2008-71 2008-49 I.R.B. 2008-49 1251
2008-72 2008-50 I.R.B. 2008-50
2008-52 2008-49 I.R.B. 2008-49 1233
2008-53 2008-49 I.R.B. 2008-49 1231
9431 2008-49 I.R.B. 2008-49 1235
9432 2008-49 I.R.B. 2008-49 1236
9433 2008-50 I.R.B. 2008-50
2008-63 Superseded by Rev. Proc. 2008-72 2008-50 I.R.B. 2008-50
155087-05 Hearing scheduled by Ann. 2008-117 2008-49 I.R.B. 2008-49 1258
106251-08 Hearing scheduled by Ann. 2008-121 2008-50 I.R.B. 2008-50
2007-9 Modified by Rev. Proc. 2008-70 2008-49 I.R.B. 2008-49 1240
2007-70 Superseded by Rev. Proc. 2008-72 2008-50 I.R.B. 2008-50
2008-10 Modified by Rev. Proc. 2008-70 2008-49 I.R.B. 2008-49 1240
2008-44 Clarified by Ann. 2008-119 2008-50 I.R.B. 2008-50
2008-3 Supplemented and superseded by Rev. Rul. 2008-52 2008-49 I.R.B. 2008-49 1233