Internal Revenue Bulletin 2005-21 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 200
5-21
May 23, 2005
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2005–29, page 1080.
Insurance companies; interest rate tables.Prevailing
state assumed interest rates are provided for the determina-
tion of reserves under section 807 of the Code for contracts
issued in 2004 and 2005. Rev. Rul. 92–19 supplemented in
part.
Rev. Rul. 2
005–31, page 1084.
Designati
on of dividends; regulated investment com-
pany (RIC)
.This ruling provides guidance that allows a RIC, in
making th
e dividend designations permitted by sections 852,
854, and 8
71 of the Code, to designate the maximum amount
permitte
d under each provision even if the total amount so
designat
ed exceeds the total amount of the RIC’s dividend
distribu
tions. It also allows individual shareholders of the RIC
who are U
.S. persons to apply designations to the dividends
they rec
eive from the RIC that differ from designations applied
by share
holders who are nonresident aliens.
Notice 2005–35, page 1087.
Issuers of life insurance contracts that request to enter into a
closing agreement with the Internal Revenue Service under Al-
ternative B or C of Rev. Rul. 2005–6 may, in lieu of a paper
submission, provide a CD-ROM diskette in read-only format list-
ing the contracts that are the subject of the closing agreement.
Rev. Proc. 2005–28, page 1093.
This procedure provides the mechanism by which taxpayers
may choose to forgo the normally required private letter rul-
ing for switching from the fair market value method to the al-
ternative tax book value method, within a certain limited time
period. Section 864(e)(2) requires that interest expense be ap-
portioned on the basis of assets for purposes of computing
foreign source taxable income. Taxpayers may elect to com-
pute the value of assets on the basis of fair market value or tax
book value. In March 2004, Treasury and the IRS issued tem-
porary and proposed regulationsthat contained a third method
for determining the value of assets, the “alternative tax book
value method.”
Announcement 2005–35, page 1095.
This document contains corrections to temporary regulations
(T.D. 9170, 2005–4 I.R.B. 363) that provide guidance concern-
ing the applicability of section 1374 to S corporations that ac-
quireassetsincarryoverbasistransactionsfromCcorpora-
tions on or after December 27, 1994, and to certain corpora-
tions that terminate S corporation status and later elect again
to become S corporations.
EMPLOYEE PLANS
Notice 2005–39, page 1087.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities.The weighted aver-
age interest rate for May 2005 and the resulting permissible
range of interest rates used to calculate current liability and to
determine the required contribution are set forth.
(Continued on the next page)
Fi
nding Lists begin on page ii.

Notice 2005–40, page 1088.
Election to defer a net experience loss; notice to Pen-
sion Benefit Guaranty Corporation; notice to plan partic-
ipants and beneficiaries; notice to employers; notice to
labor organizations.This notice provides guidance regard-
ing the election that can be made for certain multiemployer
plans to defer charges with respect to certain net experience
losses pursuant to section 412(b)(7)(F) of the Code and sec-
tion 302(b)(7)(F) of the Employee Retirement Income Security
Act of 1974 (ERISA), as well as certification and notification re-
quirements.
Announcement 2005–36, page 1095.
EP opinion letters and advisory letters; GUST.This an-
nouncement is the formal closing of the GUST program for
defined contribution pre-approved plans. The announcement
states that after June 15, 2005, the Service will no longer ac-
cept those submissions. In addition, this announcement states
that October 31, 2005, is the deadline for sponsors and practi-
tioners of mass submitter plans and national sponsor plans for
the initial six-year cycle for defined contribution pre-approved
plans for the EGTRRA program.
Announcement 2005–37, page 1096.
Volume Submitter (VS) practitioners; certain plan
amendments.This announcement explains the steps avail-
able to VS practitioners to make certain plan amendments on
behalf of the adopting employers of their VS specimen plans.
EXEMPT ORGANIZATIONS
Announcement 2005–38, page 1097.
Beacon Ministries of North Carolina, Inc., of Creston, NC;
Haysville Tiger Baseball Foundation of Haysville, KS; and Na-
tional Center for Debt Elimination, Ltd., of North Huntingdon,
PA, no longer qualify as organizations to which contributions
are deductible under section 170 of the Code.
May 23, 20052005–21 I.R.B.

The IRS Mission
Provide America’s taxpayers top quality service by helping
them understand and meet their tax responsibilities and by
applying the tax law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Sec-
retary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2005–21 I.R.B.May 23, 2005

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 807.—Rules for
Certain Reserves
Insurance companies; interest rate
tables.Prevailing state assumed interest
rates are provided for the determination of
reserves under section 807 of the Code for
contracts issued in 2004 and 2005. Rev.
Rul. 92–19 supplemented in part.
Rev. Rul. 2005–29
For purposes of § 807(d)(4) of the In-
ternal Revenue Code, for taxable years be-
ginning after December 31, 2003, this rul-
ing supplements the schedules of prevail-
ing state assumed interest rates set forth
in Rev. Rul. 92–19, 1992–1 C.B. 227.
Thisinformationistobeusedbyinsurance
companies in computing their reserves for
(1) life insurance and supplementary total
and permanent disability benefits, (2) in-
dividual annuities and pure endowments,
and (3) group annuities and pure endow-
ments. As § 807(d)(2)(B) requires that the
interest rate used to compute these reserves
be the greater of (1) the applicable federal
interest rate, or (2) the prevailing state as-
sumed interest rate, the table of applicable
federal interest rates in Rev. Rul. 92–19 is
also supplemented.
Following are supplements to schedules
A, B, C, and D to Part III of Rev. Rul.
92–19, providing prevailing state assumed
interest rates for insurance products with
different features issued in 2004 and 2005,
and a supplement to the table in Part IV of
Rev. Rul. 92–19, providing the applica-
ble federal interest rates under § 807(d) for
2004 and 2005. This ruling does not sup-
plement Parts I and II of Rev. Rul. 92–19.
This is the thirteenth supplement to
the interest rates provided in Rev. Rul.
92–19. Earlier supplements were pub-
lished in Rev. Rul. 93–58, 1993–2 C.B.
241 (interest rates for insurance prod-
ucts issued in 1992 and 1993); Rev. Rul.
94–11, 1994–1 C.B. 196 (1993 and 1994);
Rev. Rul. 95–4, 1995–1 C.B. 141 (1994
and 1995); Rev. Rul. 96–2, 1996–1 C.B.
141 (1995 and 1996); Rev. Rul. 97–2,
1997–1 C.B. 134 (1996 and 1997); Rev.
Rul. 98–2, 1998–1 C.B. 259 (1997 and
1998); Rev. Rul. 99–10, 1999–1 C.B.
671 (1998 and 1999); Rev. Rul. 2000–17,
2000–1 C.B. 842 (1999 and 2000); Rev.
Rul. 2001–11, 2001–1 C.B. 780 (2000 and
2001); Rev. Rul. 2002–12, 2002–1 C.B.
624 (2001 and 2002); Rev. Rul. 2003–24,
2003–1 C.B. 557 (2002 and 2003); and
Rev. Rul. 2004–14, 2004–1 C.B. 511
(2003 and 2004).
Part III. Prevailing State Assumed Interest Rates — Products Issued in Years After 1982.*
Schedule A
STATUTORY VALUATION INTEREST RATES
BASED ON THE 1980 AMENDMENTS TO THE
N
AICSTANDARDVALUATIONLAW
A. Life insurance valuation:
Guarantee Duration
(
years)
Calendar Year of Issue
2
005
10 or fewer5.00**
More than 10
but not more than 204.75**
More than 204.50**
Source: Rates calculated from the monthly averages, ending June 30, 2004, of Moody’s Composite Yield on Seasoned Corporate
Bonds.
* The terms used in the schedules in this ruling and in Part IIIof Rev. Rul. 92–19 are those used in the Standard Valuation
Law; the terms are defined in Rev. Rul. 92–19.
** As these rates exceed the applicable federal interest rate for 2005 of 4.44 percent, the interest rate to be used for this product
under § 807 are those specified in this table.
2005–21 I.R.B.1080May 23, 2005

Part III, Schedule B
STATUTORY VALUATION INTEREST RATES
BASED ON THE 1980 AMENDMENTS TO THE
N
AICSTANDARDVALUATIONLAW
B. Single premium immediate annuities and annuity benefits involving life contingencies arising from other annuities with cash
settlement options and from guaranteed interest contracts with cash settlement options:
C
alendarYearofIssueValuationInterestRate
20045.50*
Source: Rates calculated from the monthly averages, ending June 30, 2004, of Moody’s Composite Yield on Seasoned Corporate
Bonds (formerly known as Moody’s Corporate Bond Yield Average — Monthly Average Corporates). The terms used in this
schedule are those used in the Standard Valuation Law as defined in Rev. Rul. 92–19.
* As this prevailing state assumed interest exceeds the applicable federal interest rate for 2004 of 4.82 percent, the valuation
interest rate of 5.50 percent is to be used for this product under § 807.
May 23, 200510812005–21 I.R.B.

Part III, Schedule C22 — 2004
STATUTORY VALUATION INTEREST RATES
BASED ON NAIC STANDARD VALUATION LAW
FOR2004CALENDAR YEAR BUSINESS
G
OVERNEDBYTHE1980AMENDMENT
C. Valuation interest rates for other annuities and guaranteed interest contracts that are valued on an issue year basis:
Cash
Settlement
O
ptions?
Future
Interest
G
uarantee?
Guarantee Duration
(
years)
Valuation Interest Rate
For Plan Type
ABC
YesYes5 or fewer5.505.004.75*
More than 5, but not
more than 10
5.505.004.75*
More than 10, but not
more than 20
5.004.75*4.50*
More than 204.50*4.25*4.25*
YesNo5orfewer5.755.004.75*
More than 5, but not
more than 10
5.505.004.75*
More than 10, but not
more than 20
5.254.75*4.75*
More than 204.75*4.25*4.25*
NoYes or No5 or fewer5.50
More than 5, but not
more than 10
5.50NOT
APPLICABLE
More than 10, but not
more than 20
5.00
More than 204.50*
Source: Rates calculated from the monthly averages, ending June 30, 2004, of Moody’s Composite Yield on Seasoned Corporate
Bonds.
*As the applicable federal interest rate for 2004 of 4.82 percent exceeds this prevailing state assumed interest rate, the interest
rate to be used for this product under § 807 is 4.82 percent.
2005–21 I.R.B.1082May 23, 2005

Part III, Schedule D22 — 2004
STATUTORY VALUATION INTEREST RATES
BASED ON NAIC STANDARD VALUATION LAW
FOR2004CALENDAR YEAR BUSINESS
G
OVERNEDBYTHE1980AMENDMENT
D. Valuation interest rates for other annuities and guaranteed interest contracts that are contracts with cash settlement options
and that are valued on a change in fund basis:
Cash
Settlement
O
ptions?
Future
Interest
G
uarantee?
Guarantee Duration
(
years)
Valuation Interest Rate
For Plan Type
ABC
YesYes5 or fewer6.005.754.75*
More than 5, but not
more than 10
6.005.754.75*
More than 10, but not
more than 20
5.505.504.75*
More than 205.005.004.25*
YesNo5orfewer6.256.005.00
More than 5, but not
more than 10
6.006.005.00
More than 10, but not
more than 20
5.755.504.75*
More than 205.005.004.50*
Source: Rates calculated from the monthly averages, ending June 30, 2004, of Moody’s Composite Yield on Seasoned Corporate
Bonds.
*As the applicable federal interest rate for 2004 of 4.82 percent is equal to or exceeds this prevailing state assumed interest rate,
the interest rate to be used for this product under § 807 is 4.82 percent.
May 23, 200510832005–21 I.R.B.

Part IV. Applicable Federal Interest Rates
TABLE OF
APPLICABLE FEDERAL INTEREST RATES
F
ORPURPOSESOF§807
YearInterestRate
20044.82
20054.44
Sources: Rev. Rul. 2003–122, 2003–2 C.B. 1179 for the 2004 rate and Rev. Rul. 2004–106, 2004–49 I.R.B. 893.
EFFECT ON OTHER REVENUE
RULINGS
Rev. Rul. 92–19 is supplemented by
the addition to Part III of that ruling of pre-
vailing state assumed interest rates under
§ 807 for certain insurance products issued
in 2003 and 2004 and is further supple-
mented by an addition to the table in Part
IV of Rev. Rul. 92–19 listing applicable
federal interest rates. Parts I and II of Rev.
Rul. 92–19 are not affected by this ruling.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Ann H. Logan of the Office of Asso-
ciate Chief Counsel (Financial Institutions
and Products). For further information re-
garding this revenue ruling, contact her at
(202) 622–3970 (not a toll-free call).
Section 852.—Taxation
of Regulated Investment
Companies and Their
Shareholders
In making the dividend designations permitted by
sections 852(b)(3)(C) and (b)(5)(A) of the Internal
Revenue Code, may a regulated investment company
(“RIC”) designate the maximum amount permitted
under each provision even ifthe aggregate of all of
the amounts so designated exceeds the total amount
of the RIC’s dividend distributions. See Rev. Rul.
2005-31, page 1084.
Section 854.—Limitations
Applicable to Dividends
Received From Regulated
Investment Company
(Also: § 871, § 852.)
Designation of dividends; regulated
investment company (RIC).This ruling
provides guidance that allows a RIC, in
making the dividend designations permit-
ted by sections 852, 854, and 871 of the
Code, to designate the maximum amount
permitted under each provision even if the
total amount so designated exceeds the to-
tal amount of the RIC’s dividend distribu-
tions. It also allows individual sharehold-
ers of the RIC who are U.S. persons to ap-
ply designations to the dividends they re-
ceive from the RIC that differ from des-
ignations applied by shareholders who are
nonresident aliens.
Rev. Rul. 2005–31
ISSUES
(1) In making the dividend desig-
nations permitted by §§ 852(b)(3)(C)
and (b)(5)(A), 854(b)(1) and (2), and
871(k)(1)(C) and (2)(C) of the Internal
Revenue Code, may a regulated invest-
ment company (“RIC”) designate the
maximum amount permitted under each
provision even if the aggregate of all of
the amounts so designated exceeds the
total amount of the RIC’s dividend distri-
butions?
(2) May individual shareholders of the
RIC who are United States persons apply
designations to the dividends they receive
from the RIC that differ from designations
applied by shareholders who are nonresi-
dent alien individuals?
FACTS
R, a domestic corporation, is registered
under the Investment Company Act of
1940, 15 U.S.C. 80a–1et seq., as a man-
agement company and has elected to be
treated as a RIC under subchapter M, part
1, of the Code. Some of the sharehold-
ers ofRare individuals who are United
States persons, and some of the share-
holders are nonresident alien individuals.
For its first taxable year beginning after
December 31, 2004,R’s taxable income
consists of $10,000xof dividend income
(all of which is qualified dividend in-
come within the meaning of § 1(h)(11)),
$10,000xof interest income (all of which
is qualified interest income within the
meaning of § 871(k)(1)), $5,000xof net
short-term capital gain, and $5,000xof net
long-term capital gain.Rhas general and
administrative expenses of $10,000x.R
distributes $20,000xto its shareholders for
the taxable year, of which $20xis received
by shareholderA, an individual who is a
United States person, and $20xis received
by shareholderB, a nonresident alien indi-
vidual who does not have any effectively
connected income as defined in § 864(c).
LAW AND ANALYSIS
Section 854, as amended by the Jobs
and Growth Tax Relief Reconciliation Act
of 2003 (the “JGTRRA”), Pub. L. No.
108–27, 117 Stat. 752, and the Working
Families Tax Relief Act of 2004, Pub. L.
No. 108–311, 118 Stat. 1166, provides
rules for determining the amount dis-
tributed by a RIC to its shareholders that
2005–21 I.R.B.1084May 23, 2005

may be treated by the shareholders as qual-
ified dividend income under § 1(h)(11).
Under § 1(h)(11), qualified dividend in-
come received by an individual, estate, or
trust is subject to a maximum tax rate of
15 percent. Section 854(b)(1)(C) provides
that the aggregate amount that may be
designated by a RIC as qualified dividend
income for purposes of § 1(h)(11) gener-
ally shall not exceed the RIC’s qualified
dividend income for the taxable year. Sec-
tion 854 does not require that this amount
be reduced by expenses.
Section 871(k), as amended by the
American Jobs Creation Act of 2004 (the
“AJCA”), Pub. L. No. 108–357, 118
Stat. 1418, provides rules for determining
the amount distributed by a RIC to its
shareholders that may be treated by the
shareholders as interest-related dividends
or short-term capital gain dividends. Un-
der § 871(k), an interest-related dividend
or a short-term capital gain dividend re-
ceived by a nonresident alien individual
generally is not subject to United States
withholding tax.
Section 871(k)(1)(C) limits the amount
a RIC may designate as an interest-related
dividend to the RIC’s qualified net inter-
est income for the taxable year. Section
871(k)(1)(D) defines qualified net interest
income as a RIC’s qualified interest in-
come reduced by the deductions properly
allocable to such income.
Section 871(k)(2)(C) limits the amount
a RIC may designate as a short-term cap-
ital gain dividend to the RIC’s qualified
short-term gain for the taxable year. Sec-
tion 871(k)(2)(D) defines qualified short-
term gain as the excess of the RIC’s net
short-term capital gain for the year over
the RIC’s net long-term capital loss for
such year, generally determined without
regard to any net capital loss or net short-
term capital loss attributable to transac-
tions after October 31 of such year. Sec-
tion 1222(5) defines net short-term capi-
tal gain as the excess of short-term capital
gains for the taxable year over short-term
capital losses for such year. The State-
ment of Managers in the Conference Re-
port accompanying the AJCA states, “In
computing the amount of short-term cap-
ital gain dividends for the year, no reduc-
tion is made for the amount of expenses of
the RIC allocable to such net gains.” 1 H.R.
Rep. No. 548, 108
th
Cong., 2d Sess. 166
(2004).
Section 852(b)(3) provides rules for de-
termining the amount distributed by a RIC
to its shareholders that may be treated by
the shareholders as a capital gain dividend.
Section 852(b)(3)(C) limits the amount a
RIC may designate as a capital gain divi-
dend to the RIC’s net capital gain for the
taxable year, generally determined with-
out regard to any net capital loss or net
long-term capital loss attributable to trans-
actions after October 31 of such year. Sec-
tion 1222(11) defines net capital gain as
the excess of the net long-term capital gain
for the taxable year over the net short-term
capital loss for such year.
For purposes of determining the tax-
able income of a RIC under subchapter M,
§ 852(b) separates a RIC’s net capital gain
from its other income (identified as “in-
vestment company taxable income”). Sec-
tion 852(b)(3) imposes a tax on the ex-
cess of the RIC’s net capital gain over its
deduction for dividends paid determined
with reference to capital gains dividends
only. A RIC is not allowed any deduction
for expenses against its net capital gain.
A RIC’s investment company taxable in-
come equals its taxable income (exclusive
of net capital gain) reduced by allowable
expenses and its deduction for dividends
paid determined without regard to capital
gains dividends and exempt-interest divi-
dends. Thus, the basic pattern for taxing a
RIC’s income treats its expenses as alloca-
ble only to its investment company taxable
income (exclusive of net capital gain).
In this situation, under § 852(b)(3)(C),
the maximum amountRmay designate as
capital gain dividends is $5,000x,which
is the amount ofR’s net capital gain for
the taxable year ($5,000xof net long-term
capital gain less $0xof net short-term cap-
ital loss). Of the remaining distribution
of $15,000xfor the taxable year,Rap-
plies the rules of §§ 854 and 871 to deter-
mine the maximum amounts it may desig-
nate as qualified dividend income, short-
term capital gain dividends, and interest-
related dividends. Under § 854(b)(1)(C),
the maximum amountRmay designate
as distributions of qualified dividend in-
come is $10,000x, which is the amount of
R’s qualified dividend income for the tax-
able year, unreduced by expenses. Under
§ 871(k)(2)(C), the maximum amountR
may designate as short-term capital gain
dividends is $5,000x, which is the amount
ofR’s net short-term capital gain unre-
duced by expenses allocable to that net
gain. Under § 871(k)(1)(C), the maximum
amountRmay designate as interest-re-
lated dividends is $10,000x(the amount
ofR’s qualified interest income), less the
amount ofR’s expenses properly allocable
to that income. Given the specific provi-
sions of § 852(b)(3) precluding an alloca-
tion of expenses to reduce net capital gain,
and taking into account the statement in
the Conference Report that assumes that
a portion of a RIC’s expenses are allo-
cable to its short-term gains,Rmay rea-
sonably determine that its expenses should
be allocatedpro ratato the components
of its income included in RIC taxable in-
come (qualified dividends, interest, and
short-term gains) and that the amount of
its expenses properly allocable to interest
income is $4,000x. Accordingly, the max-
imum amountRmay designate as inter-
est-related dividends is $6,000x.
The sum ($26,000x)ofthemaxi-
mum amounts computed above of cap-
ital gain dividends ($5,000x), distri-
butions of qualified dividend income
($10,000x), short-term capital gain div-
idends ($5,000x), and interest-related
dividends ($6,000x), exceeds the total
amount distributed byRfor the taxable
year ($20,000x). IfRuses these maximum
amounts in making its dividend designa-
tions for the taxable year, the designations
that are relevant for each ofAandBwill
not exceed their respective dividend dis-
tributions. The reduced tax rate applicable
to distributions of qualified dividend in-
come, and thus the designation as such a
distribution, apply to individual taxpayers
whoareUnitedStatespersonsanddonot
apply to income received by a nonresident
alien individual unless the income is ef-
fectively connectedwith the conduct of a
trade or business within the United States.
In contrast, the exemption from United
States withholding tax for interest-related
dividends and short-term capital gain div-
idends received from a RIC applies only
to dividends that are received by a non-
resident alien individual and that are not
effectively connected with the conduct
of a trade or business within the United
States.
There is no indication that Congress, in
enacting the exemption from United States
withholding tax in the AJCA for inter-
est-related dividends and short-term cap-
ital gain dividends received from a RIC
May 23, 200510852005–21 I.R.B.

by a nonresident alien individual, intended
to reduce the benefits conferred by the
JGTRRA for qualified dividend income
received from the RIC by individuals who
are United States persons. Similarly, there
is no indication that Congress intended that
the benefits conferred by the JGTRRA for
qualified dividend income received from
a RIC would apply to reduce the benefits
conferred by the AJCA for interest-related
dividends and short-term capital gains re-
ceived from the RIC. To achieve the pur-
poses of the provisions of both the AJCA
and the JGTRRA,Rmay designate each
of the maximum amounts described above,
andAandBmay apply different designa-
tions to their distributions.
Therefore, with respect to its dividend
distributions of $20,000xfor the taxable
year,Rmay designate $5,000xas a capital
gain dividend, $10,000xas a distribution
of qualified dividend income, $6,000xas
an interest related dividend, and $5,000xas
a short-term capital gain dividend. These
are, respectively, 25 percent, 50 percent,
30 percent, and 25 percent of the $20,000x
distribution. IfRmakes these designa-
tions and properly advises its sharehold-
ers that these percentages apply to the dis-
tributions that each received, thenAand
Bmay apply the designations as follows.
Of the $20xreceived by A fromR,Amay
treat 25 percent ($5x) as a capital gain div-
idend and 50 percent ($10x) as qualified
dividend income that is subject to a max-
imum tax rate of 15 percent. The remain-
ing $5xis reportable as dividend income
that is not qualified dividend income. Of
the $20xreceived byBfromR,Bmay
treat 25 percent ($5x) as a capital gain div-
idend, 30 percent ($6x) as an interest-re-
lated dividend, and 25 percent ($5x)as
a short-term capital gain dividend. The
remaining $4xis dividend income that is
not qualified dividend income. Assuming
all other necessary conditions are satisfied,
the $5xof capital gain dividends, the $6x
of interest-relateddividends, and $5xof
short-term capital gain dividends are ex-
empt from United States withholding tax.
HOLDINGS
(1) In making the dividend desig-
nations permitted by §§ 852(b)(3)(C)
and (b)(5)(A), 854(b)(1) and (2), and
871(k)(1)(C) and 2(C), a RIC may des-
ignate the maximum amount permitted
under each provision even if the aggre-
gate of all of the amounts so designated
exceeds the total amount of the RIC’s div-
idend distributions.
(2) Individual shareholders of the RIC
whoareUnitedStatespersonsmayapply
designations to the dividends they receive
from the RIC that differ from designations
applied by shareholders who are nonresi-
dent alien individuals.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Sonja Kotlica of the Office of As-
sociate Chief Counsel (Financial Institu-
tions & Products). For further informa-
tion regarding this revenue ruling, con-
tact Ms. Kotlica at (202) 622–3960 (not
a toll-free call).
Section 861.—Income
From Sources Within the
United States
26 CFR 1.861-8T: Computation of taxable income
from sources within the United States and from other
sources and activities (temporary).
26 CFR 1.861–9T: Allocation and apportionment of
interest expense (temporary).
May a taxpayer that uses the fair market value
method of valuing its assets for expense apportion-
ment purposes obtain, by following certain specific
procedures, automatic consent to switch to the alter-
native tax book value method within a certain limited
time period. See Rev. Proc. 2005-28, page 1093.
Section 864.—Definitions
and Special Rules
26 CFR 1.861–8T: Computation of taxable income
from sources within the United States and from other
sources and activities (temporary).
26 CFR 1.861–9T: Allocation and apportionment of
interest expense (temporary).
May a taxpayer that uses the fair market value
method of valuing its assets for expense apportion-
ment purposes obtain, by following certain specific
procedures, automatic consent to switch to the alter-
native tax book value method within a certain limited
time period. See Rev. Proc. 2005-28, page 1093.
Section 871.—Tax
on Nonresident Alien
Individuals
In making the dividend designations permitted
by sections 871(k)(1)(C) and (2)(C) of the Internal
Revenue Code, may a regulated investment company
(“RIC”) designate the maximum amount permitted
under each provision even if the aggregate of all of
the amounts so designated exceeds the total amount
of the RIC’s dividend distributions. See Rev. Rul.
2005-31, page 1084.
2005–21 I.R.B.1086May 23, 2005

Part III. Administrative, Procedural, and Miscellaneous
Electronic Submission of Lists
Identifying Contracts Subject
to Closing Agreements Under
Rev. Rul. 2005–6
Notice 2005–35
This notice provides procedures under
which a list identifying the contracts sub-
ject to a closing agreement under Rev. Rul.
2005–6, 2005–6 I.R.B. 471, may be sub-
mitted to the Internal Revenue Service in
electronic format.
Rev. Rul. 2005–6 provides that for pur-
poses of determining whether a contract
qualifies as a life insurance contract under
§ 7702 of the Internal Revenue Code, and
as a modified endowment contract (MEC)
under § 7702A, charges for qualified ad-
ditional benefits (QABs) must be taken
into account under the expense charge
rule of § 7702(c)(3)(B)(ii). The revenue
ruling provides three alternatives to life
insurance contract issuers whose com-
pliance systems do not currently account
for charges for QABs under the expense
charge rule of § 7702(c)(3)(B)(ii). Under
Alternatives B and C of the ruling an is-
suer may request relief in the form of a
closing agreement under which contracts
will not be treated as having failed the
requirements of § 7702(a) or as MECs
under § 7702A by reason of improperly
accounting for charges for existing QABs.
The issuer’s request for a closing agree-
ment must include a list identifying the
contracts for which relief is requested.
The Internal Revenue Service has
learned that, in some cases, a list iden-
tifying the contracts subject to a closing
agreement may be sufficiently large that
it could be burdensome for issuers to pro-
vide the list on paper. Accordingly, an
issuer may submit the list electronically,
in read-only format, on either a CD-ROM
or diskette. Adobe Portable Document
format is a suitable format. Other formats
may be arranged on a case-by-case ba-
sis. The issuer must provide a total of 3
CD-ROMs or diskettes, one for each of the
three (3) copies of the closing agreement.
The principal author of this notice is
Melissa S. Luxner of the Office of As-
sociate Chief Counsel (Financial Institu-
tions & Products). For further information
regarding this notice, contact Melissa S.
Luxner at (202) 622–3970 (not a toll-free
call).
Weighted Average Interest
Rates Update
Notice 2005–39
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code. In ad-
dition, it provides guidance as to the
interest rate on 30-year Treasury securi-
ties under § 417(e)(3)(A)(ii)(II), and the
weighted average interest rate and permis-
sible ranges of interest rates based on the
30-year Treasury securities rate.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections 412(b)(5)(B)(ii) and 412(l)
(7)(C)(i), as amended by the Pension
Funding Equity Act of 2004, provide that
the interest rates usedto calculate current
liability and to determine the required
contribution under § 412(l) for plan years
beginning in 2004 or 2005 must be within
a permissible range based on the weighted
average of the rates of interest on amounts
invested conservativelyinlongtermin-
vestment grade corporate bonds during the
4-year period ending on the last day before
the beginning of the plan year.
Notice 2004–34, 2004–18 I.R.B. 848,
provides guidelines for determining the
corporate bond weighted average interest
rate and the resulting permissible range
of interest rates used to calculate current
liability. That notice establishes that the
corporate bond weighted average is based
on the monthly composite corporate bond
rate derived from designated corporate
bond indices.
The composite corporate bond rate for
April 2005 is 5.55 percent. Pursuant to No-
tice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond in-
dices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Corporate
Bond90% to 100%
Beginning in:WeightedPermissible
MonthYearAverageRange
May20055.975.38 to 5.97
30-YEAR TREASURY SECURITIES
WEIGHTED AVERAGE INTEREST
RATE
Section 417(e)(3)(A)(ii)(II) defines
the applicable interest rate, which must
be used for purposes of determining the
minimum present value of a participant’s
benefit under § 417(e)(1) and (2), as the
annual rate of interest on 30-year Treasury
securities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
bleinterestrateforamonthistheannual
interest rate on 30-year Treasury securi-
ties as specified by the Commissioner for
that month in revenuerulings, notices or
other guidance published in the Internal
Revenue Bulletin.
Section 404(a)(1) of the Code, as
amended by the Pension Funding Eq-
uity Act of 2004, permits an employer
to elect to disregard subclause (II) of
May 23, 200510872005–21 I.R.B.

§ 412(b)(5)(B)(ii) to determine the max-
imum amount of the deduction allowed
under § 404(a)(1).
The rate of interest on 30-year Treasury
securities for April 2005 is 4.65 percent.
Pursuant to Notice 2002–26, 2002–1 C.B.
743, the Service has determined this rate
as the monthly average of the daily deter-
mination of yield on the 30-year Treasury
bond maturing in February 2031.
The following 30-year Treasury rates
were determined for the plan years begin-
ning in the month shown below.
For Plan Years
30-Year
Treasury90% to 105%90% to 110%
Beginning in:WeightedPermissiblePermissible
MonthYearAverageRangeRange
May20055.034.52 to 5.284.52 to 5.53
Drafting Information
The principal authors of this notice
are Paul Stern and Tony Montanaro of
the Employee Plans, Tax Exempt and
Government Entities Division. For fur-
ther information regarding this notice,
please contact the Employee Plans’ tax-
payer assistance telephone service at
1–877–829–5500 (a toll-free number),
between the hours of 8:00 a.m. and
6:30 p.m. Eastern time, Monday through
Friday. Mr. Stern may be reached at
1–202–283–9703. Mr. Montanaro may
be reached at 1–202–283–9714. The tele-
phone numbers in the preceding sentences
are not toll-free.
Election for Multiemployer
Plan to Defer Net Experience
Loss Charge
Notice 2005–40
I. Purpose and Background
This notice sets forth guidance re-
garding the election that can be made
for certain multiemployer plans to defer
charges with respect to net experience
losses pursuant to § 412(b)(7)(F) of the
Internal Revenue Code (Code) and section
302(b)(7)(F) of the Employee Retirement
Income Security Act of 1974 (ERISA), as
added by section 104 of the Pension Fund-
ing Equity Act of 2004 (PFEA), Pub. L.
108–218.
Section 412 of the Code sets forth min-
imum funding standards that apply to de-
fined benefit plans. The minimum funding
standards are implemented by a series of
charges and credits to a funding standard
account as described in § 412(b). One of
the charges to the funding standard account
specified in § 412(b) pertains to net expe-
rience losses. Section 412(b)(2)(B)(iv) re-
quires that net experience losses for any
plan year be amortized in equal annual in-
stallments. The amortization period for net
experience losses for multiemployer plans
is 15 years.
Section 412(b)(7)(F) provides an elec-
tion for certain multiemployer plans that
permits the deferral of a portion of the
amortization charge arising from the net
experience loss for the first plan year be-
ginning after December 31, 2001 (the 2002
loss). The § 412(b)(7)(F) election to defer
a portion of the amortization charge of the
2002 loss is available for an eligible mul-
tiemployer plan (as that term is described
below) with respect to plan years begin-
ning after June 30, 2003, and before July
1, 2005. Section 412(b)(7)(F)(iii) contains
restrictions on plan amendments that in-
crease benefit liabilities during the period
the § 412(b)(7)(F) deferral election is in ef-
fect.
Section 302 of ERISA contains mini-
mum funding standard requirements that
are parallel to those under § 412 of the
Code, and section 302(b)(7)(F) of ERISA
provides an election that is parallel to the
election under § 412(b)(7)(F) of the Code.
Under section 101 of Reorganization Plan
No. 4 of 1978, 1979–1 C.B. 480, the Sec-
retary of the Treasury has sole interpretive
authority over the subject matter addressed
in this Notice 2005–40. Accordingly, un-
less otherwise specified, all references in
this Notice 2005–40 to § 412 of the Code
also apply to the parallel provisions of sec-
tion 302 of ERISA.
Section 302(b)(7)(F)(vi) of ERISA re-
quires that, if a plan sponsor elects to defer
a net experience loss charge under section
302(b)(7) of ERISA and § 412(b)(7) of the
Code for any plan year, the plan adminis-
trator must provide written notices of the
election to: (1) the participants and bene-
ficiaries under the plan, (2) each labor or-
ganization representing such participants
or beneficiaries, (3) each employer that
has an obligation to contribute under the
plan, and (4) the Pension Benefit Guaranty
Corporation (PBGC). The notices must be
provided within 30 days of the filing of
the election for such year, and the no-
tices of the election must include specified
information. Section 104(a)(2) of PFEA
amended section 502(c)(4) of ERISA to
provide that, if any person fails to provide
any of these notices required under section
302(b)(7)(F)(vi) of ERISA on a timely ba-
sis that person may beliable to the Depart-
ment of Labor (DOL) for a penalty of up
to $1,000 a day from the date of the failure
to provide the proper notice.
Section 1.412(c)(3)–1(d)(1)(i) of the
Income Tax Regulations provides that,
except as otherwise provided by the Com-
missioner, a reasonable funding method
does not anticipate changes in plan bene-
fits that become effective, whether or not
retroactively, in a future plan year or that
become effective after the first day of, but
during, a current plan year.
Rev. Rul. 77–2, 1977–1 C.B. 120,
provides guidance regarding the minimum
funding requirements with respect to a
change in the benefit structure of a qual-
ified pension plan that becomes effective
during a plan year. Section 2.02 of Rev.
Rul. 77–2 provides that, in the case of
a change in the benefit structure that be-
comes effective as of a date during a plan
year (but subsequent to the first day in
such plan year), the charges and credits
to the funding standard account shall not
reflect the change in such benefit structure
for the portion of such plan year prior to
2005–21 I.R.B.1088May 23, 2005

the effective date of such change, and shall
reflect the change in such benefit structure
for the portion of the plan year subsequent
to the effective date of the change. Sec-
tion 3 of Rev. Rul. 77–2 provides that,
in determining the charges and credits for
theplanyear,inlieuofusingtheruleof
section 2.02 of Rev. Rul. 77–2, a plan is
permitted to disregard a change in benefit
structure that is adopted after the valuation
date for the year.
Section 412(c)(8) of the Code provides
that any amendment applying to a plan
year that is adopted after the close of the
plan year but no later than 2
1
/2months af-
ter the close of the plan year and that does
not reduce the accrued benefit of any par-
ticipant determined as of the beginning of
the first plan year to which the amendment
relates is, at the election of the plan admin-
istrator, deemed to have been made on the
first day of such plan year (subject to addi-
tional restrictions onplan amendments that
reduce benefits). Pursuant to Rev. Rul.
79–325, 1979–2 C.B. 190, and Rev. Proc.
94–42, 1994–1 C.B. 717, § 412(c)(8) also
applies to plan amendments adopted dur-
ing the plan year to which the amendment
relates.
II. Questions and Answers
A.Plans That Are Eligible to Defer a Net
Experience Loss Charge
Q–1. Which plans are eligible for the
election to defer a net experience loss
charge under § 412(b)(7)(F) for a plan
year?
A–1. A plan is eligible for the election
to defer a net experience loss charge un-
der § 412(b)(7)(F) for a plan year if it is a
multiemployer plan within the meaning of
§ 414(f) of the Code that is an eligible mul-
tiemployer plan as described in Q&A–2 of
this notice for the plan year.
Q–2. Which plans are eligible multiem-
ployer plans for a plan year?
A–2. A plan is an eligible multiem-
ployer plan for a plan year if it satisfies all
of the following conditions: (1) for the first
plan year beginning after December 31,
2001, the plan had a net investment loss of
at least 10 percent, as determined pursuant
to Q&A–4 of this notice, (2) the plan’s en-
rolled actuary makes a certification in ac-
cordance with Q&A–6 of this notice that
the plan is projected to have an accumu-
lated funding deficiency within the mean-
ing of § 412(a) for any plan year begin-
ning after June 30, 2003, and before July 1,
2006, and (3) the plan is not ineligible for
the election pursuant to § 412(b)(7)(F)(v)
for the plan year, as described in Q&A–3
of this notice.
Q–3. Which plans are ineligible for the
election under § 412(b)(7)(F)(v) for a plan
year?
A–3. For a plan year a plan is ineligi-
ble for an election under § 412(b)(7)(F)(v)
if: (1) for any taxable year beginning dur-
ing the 10-year period preceding the par-
ticular plan year, any employer required to
contribute to the plan failed to timely pay
any excise tax under § 4971 with respect
to that plan; or (2) for any plan year begin-
ning after June 30, 1993, and before the
particular plan year, (a) the average con-
tribution required to be made to the plan
by all employers did not exceed 10 cents
per hour, (b) no employer contributions
were required, (c) a waiver of the min-
imum funding standards under § 412(d)
was granted or (d) an extension of the
amortization period under § 412(e) was
granted.
Q–4. How is it determined whether the
plan had a net investment loss of at least
10 percent for the first plan year beginning
after December 31, 2001?
A–4. A plan had a net investment loss
of at least 10 percent for the first plan year
beginning after December 31, 2001, if the
plan’s net investment return for that plan
year as determined under Q&A–5 of this
notice was less than or equal to negative
10 percent.
Q–5. How is the net investment return
for a plan year determined for purposes of
Q&A–4 of this notice?
A–5. For purposes of determining
whether a plan had a net investment loss
of at least 10 percent for the first plan
year beginning after December 31, 2001,
the net investment return for a plan year
is equal to the amount determined using
the following formula: 2I
(m)
/(A+B-I
(m)
).
Under this formula, A equals the fair mar-
ket value of plan assets at the beginning
of the plan year, B equals the fair market
value of plan assets at the end of the plan
year, and I
(m)
equals B-(A+C-D), where
C equals the total amount of contributions
made during the plan year and D equals
the total amount of benefit distributions
made during that plan year.
Q–6. What rules must the plan’s en-
rolled actuary apply in projecting, for pur-
poses of the certification required under
§ 412(b)(7)(F)(iv)(II), that the plan will
have an accumulated funding deficiency
for a specific plan year?
A–6. In order to certify that a plan will
have an accumulated funding deficiency
for a specific plan year, the plan’s enrolled
actuary must project the charges and cred-
its to the plan’s funding standard account
through the end of that specific plan year
using valuation data and results from the
most recently completed valuation. The
projection of charges and credits is made
using actuarial assumptions that applied
in the actuarial valuation for the last plan
year ending before April 10, 2004. For
example, if a plan has a beginning of the
year valuation date, the enrolled actuary
must assume that the investment return for
a year will equal the product of the mar-
ket value of assets as measured for pur-
poses of the most recently completed val-
uation and the assumed interest rate under
§ 412(b)(5)(A) used for the valuation for
the last plan year ending before April 10,
2004, and must then determine the actu-
arial value of assets under the asset valua-
tion method that is part of the plan’s fund-
ing method. In addition, the enrolled actu-
ary must assume that there will be no new
entrants to the plan and no plan amend-
ments after the most recently completed
valuation (other than new entrants or plan
amendments taken into account under that
valuation) and must disregard the effect of
any election for the current plan year or fu-
ture plan year to defer a net experience loss
charge that is made in accordance with this
notice.
B.Effect of a § 412(b)(7)(F) Deferral
Election
Q–7. What is the effect of an election
for a plan year under § 412(b)(7)(F)?
A–7. The effect of an election for
a plan year under § 412(b)(7)(F) is to
defer up to 80 percent of the otherwise
applicable amortization charge under
§ 412(b)(2)(B)(iv) with respect to the net
experience loss for the first plan year be-
ginning after December 31, 2001. Thus,
the amount that is deferred is not charged
to the funding standard account for the
year of the election, but is instead charged
to the funding standard account for a
May 23, 200510892005–21 I.R.B.

later year. The amount of the amorti-
zation charge that is deferred under the
§ 412(b)(7)(F) election, increased with
interest pursuant to Q&A–9 of this notice,
must be charged to the funding standard
account for either of the two plan years
that immediately succeed the plan year
for which the election is made, as selected
by the plan sponsor. A plan for which
the election is made is subject to the lim-
itations on benefit increases described in
Q&A–19 through Q&A–29 of this notice.
Q–8. For what plan years can an
eligible multiemployer plan make a
§ 412(b)(7)(F) deferral election?
A–8. The § 412(b)(7)(F) deferral elec-
tion is only permitted to be made for plan
years that begin after June 30, 2003, and
before July 1, 2005. A separate election is
permitted for each plan year.
Q–9. What interest rate applies to an
amortization charge that is deferred under
the § 412(b)(7)(F) election?
A–9. The interest rate described in
§ 6621(b) applies to the amount deferred
under a § 412(b)(7)(F) election. This in-
terest rate applies until the valuation date
for the plan year in which the amount de-
ferred is charged.
C.Method of Making a § 412(b)(7)(F)
Deferral Election
Q–10. Who makes the § 412(b)(7)(F)
deferral election for a plan year with re-
spect to a net experience loss charge of an
eligible multiemployer plan?
A–10. The joint board of trustees of an
eligible multiemployer plan (or its autho-
rized delegate) makes the § 412(b)(7)(F)
deferral election for a plan year.
Q–11. How is the § 412(b)(7)(F) defer-
ral election made for a plan year?
A–11. A § 412(b)(7)(F) deferral elec-
tion for a plan year is made by filing the
election with the Service. The election
must include (1) the name of the plan
sponsor, (2) the tax identification number
of the plan sponsor, (3) the name of the
plan, (4) the number of the plan, (5) the
plan year of the election to defer a net
experience loss charge, (6) the amount of
net experience loss charge being deferred,
(7) the plan year to which that net expe-
rience loss charge is being deferred, and
(8) a statement that the notice require-
ments of section 302(b)(7)(F) of ERISA
have been or will be satisfied. In addition,
the election must be accompanied by the
§ 412(b)(7)(F)(iv)(II) certification from
the plan’s enrolled actuary that the plan is
projected to have an accumulated funding
deficiency that is made in accordance with
Q&A–6 of this notice. The § 412(b)(7)(F)
deferral election that is filed for a plan
year is permitted to include a certifica-
tion that an amendment is a fully funded
amendment as described in Q&A–27 of
this notice.
The address for filing elections and cer-
tifications with the Service is as follows:
Internal Revenue Service
Commissioner, Tax Exempt and
Government Entities Division
Attention: SE:T:EP:RA:T
Deferral of Net Experience Loss
Charge Election and/or Amendment
Certification
P.O. Box 27063
McPherson Station
Washington, D.C. 20038
Q–12. When must the § 412(b)(7)(F)
deferral election for a plan year be filed
with the Service?
A–12. In general, a § 412(b)(7)(F) de-
ferral election for a plan year must be filed
with the Service before the end of the plan
year. However, an election made after the
end of the plan year will nonetheless be
treated as timely filed for a plan year if it
is filed with the Service by June 30, 2005.
D.Notification Requirements
Q–13. Who must be provided notice
that a § 412(b)(7)(F) election for a plan
year to defer a net experience loss charge
has been filed with the Service?
A–13. Each participant of the electing
eligible multiemployer plan, each bene-
ficiary receiving benefits under the plan,
each labor organization representing the
participants and beneficiaries under the
plan, each employer that is a party to the
collective bargaining agreement(s) pur-
suant to which the plan is maintained, and
the PBGC must be provided written notice
that a § 412(b)(7)(F) election to defer a
net experience loss charge has been filed
with the Service. The determination of
which participants, beneficiaries, labor or-
ganizations and employers are required to
receive the notice is permitted to be made
as of any one date within the plan year for
which the election is made.
Q–14. How does a plan provide notice
of the § 412(b)(7)(F) deferral election for a
plan year to parties other than the PBGC?
A–14. A plan satisfies the requirement
to provide notice of a § 412(b)(7)(F) defer-
ral election to parties other than the PBGC
for a plan year if the notice is mailed to
the last known address of each participant,
beneficiary, labor organization, and em-
ployer who must be provided notice of the
§ 412(b)(7)(F) deferral election pursuant
to Q&A–13 of this notice.
Q–15. How is notice of a § 412(b)(7)(F)
deferral election for a plan year made to the
PBGC?
A–15. All notifications to the PBGC
must be furnished in a manner consistent
with the requirements of Part 4000 of the
PBGC’s regulations (29 CFR Part 4000).
Q–16. When must the notice be pro-
vided that a § 412(b)(7)(F) election for a
plan year to defer a net experience loss
charge has been filed with the Service?
A–16. Notice of a § 412(b)(7)(F) elec-
tion for a plan year to defer a net experi-
ence loss charge must be provided within
30 days of filing the election with the Ser-
vice.
Q–17. What must be contained in the
notice that a § 412(b)(7)(F) election for
a plan year to defer a net experience loss
charge has been filed with the Service?
A–17. A notice that a § 412(b)(7)(F)
election for a plan year to defer a net ex-
perience loss charge has been filed with
the Service must set forth certain informa-
tion described in section 302(b)(7)(F)(vi)
of ERISA and the context in which the in-
formation is being provided. If the notice
includes the following language with the
appropriate insertions this requirement is
satisfied:
1. As permitted under the Pension Fund-
ing Equity Act of 2004, the Board
of Trustees of [enter name of eligible
multiemployer plan] has made a spe-
cial election that reduces the amount
of contributions that are required to be
made for [enter plan year of election].
The reduction in contributions is [en-
ter amount]. This amount, with inter-
est, will be added to the contribution
required to be made for the [enter plan
year to which the amount deferred is
to be charged] plan year.
2005–21 I.R.B.1090May 23, 2005

2. If a multiemployer plan becomes
insolvent, the following benefit pay-
ments are guaranteed by the PBGC.
[Insert the description of the benefit
payments guaranteed by the PBGC
as contained in the heading under
“Benefit Payments Guaranteed by
the PBGC” in the Appendix to pro-
posed rules issued by the DOL under
§ 2520.101–4 at 70 Fed. Reg. 6306,
6312 (Feb. 4, 2005).]
Q–18. What is the sanction if a plan ad-
ministrator fails to comply with the notice
requirement?
A–18. The DOL may assess a civil
penalty of not more than $1,000 a day for
each violation by any person of the notice
requirements of section 302(b)(7)(F)(vi)
of ERISA.
E.Restrictions on Benefit Increases
Q–19. What are the restrictions on
plan amendments for a plan for which the
§ 412(b)(7)(F) deferral election for a plan
year is made?
A–19. Section 412(b)(7)(F)(iii) of the
Code provides a restriction on benefit
increases in the case of a plan making
a § 412(b)(7)(F) deferral election for
a plan year. If a § 412(b)(7)(F) defer-
ral election for a plan year is in effect,
the § 412(b)(7)(F)(iii) benefit restriction
generally prohibits the adoption of any
plan amendment that increases benefit
liabilities (including a plan amendment
increasing an early retirement benefit or
retirement-type subsidy, changing the ac-
crual of benefits in a manner that results
in increased accruals, or changing the rate
at which benefits become nonforfeitable
in a manner that results in faster vesting).
However, the § 412(b)(7)(F)(iii) benefit
restriction does not apply if (1) the amend-
ment is the result of a collective bargaining
agreement in effect on April 10, 2004, or
(2) the enrolled actuary certifies in accor-
dance with Q&A–27 of this notice that the
amendment is a fully funded amendment
asdescribedinQ&A–21ofthisnotice.
Annual cost-of-living adjustments to
statutory limits that are implemented pur-
suant to plan terms that were adopted
before April 10, 2004, are not treated as
plan amendments that are subject to the
requirements of § 412(b)(7)(F)(iii). Thus,
annual cost-of-living adjustments to the
§ 401(a)(17) limit and the § 415(b)(1)(A)
dollar limit that are automatically put into
effect pursuant to plan terms that were
adopted before April 10, 2004, are not
treated as plan amendments to which the
§ 412(b)(7)(F)(iii) benefit restrictions ap-
ply.
Q–20. For what plan years does the
§ 412(b)(7)(F)(iii) benefit restriction ap-
ply?
A–20. The § 412(b)(7)(F)(iii) benefit
restriction applies to each § 412(b)(7)(F)
deferral election that is made and ap-
plies for the period the deferral is in
effect. Thus, for example, if the plan
sponsor with a calendar plan year makes
the § 412(b)(7)(F) election to defer a net
experience loss charge for the 2004 plan
year (with the amount instead charged in
the 2006 plan year), a plan amendment that
increases benefit liabilities is not permit-
tedin2004unlessitisrequiredpursuant
to a collective bargaining agreement in
effect on April 10, 2004 (regardless of
when a corresponding plan amendment is
made), or it is a fully funded amendment
as described in Q&A–21 of this notice.
Furthermore, the same restriction on plan
amendments increasing benefit liabilities
applies in 2005 regardless whether the
§ 412(b)(7)(F) deferral election is made
for 2005.
For purposes of determining whether
a plan amendment is subject to a
§ 412(b)(7)(F)(iii) benefit restriction, a
plan amendment is considered adopted at
the later of the time it is adopted or made
effective. Thus, a plan amendment with
different benefit increases that become
effective during different plan years is
considered adopted during each plan year
in which each benefit increase becomes
effective (but no earlier than the plan year
for which the amendment is added to the
plan).
Q–21. What is a fully funded amend-
ment that is not prohibited by the benefit
restrictions of § 412(b)(7)(F)(iii)?
A–21. An amendment is a fully funded
amendment if it includes terms that require
that contributionsto the plan will exceed
the § 412(b)(7)(F)(iii) minimum amount
described in Q&A–22 of this notice for the
period described in Q&A–23 of this no-
tice. A plan amendment is permitted to
satisfy this requirement by reflecting the
formula for the § 412(b)(7)(F)(iii) mini-
mum amount set forth in Q&A–22. Al-
ternatively, a plan amendment is permit-
ted to satisfy this requirement by provid-
ing for a dollar amount of contributions
or for some other method of determining
contributions, provided that the amount of
contributions specified in the plan exceeds
the § 412(b)(7)(F)(iii) minimum amount.
For purposes of determining whether an
amendment is a fully funded amendment
and for purposes of an enrolled actuary’s
certification under Q&A–27 of this notice,
the terms of a collective bargaining agree-
ment pursuant to which a plan is main-
tained are deemed to be included in plan
terms.
Q–22. How is the § 412(b)(7)(F)(iii)
minimum amount determined?
A–22. The § 412(b)(7)(F)(iii) mini-
mum amount is equal to the sum of the
minimum required contribution under
§ 412 determined as if the amendment
had not been made (taking into account
the § 412(b)(7)(F) deferral election to
defer a net experience loss charge) plus
the incremental amendment amount. The
incremental amendment amount is equal
to the difference between the required
minimum contribution under § 412 that
would have been due taking into account
the amendment and the required minimum
contribution under § 412 that would have
been due disregarding the amendment.
The determination of the required mini-
mum contribution under § 412 that would
have been due taking into account the
amendment must be computed in accor-
dance with the special rules set forth in
Q&A–24 of this notice.
Q–23. For what years must an amend-
ment provide that the § 412(b)(7)(F)(iii)
minimum amounts are required to be
contributed in order to be a fully funded
amendment?
A–23. In order to be a fully funded
amendment, an amendment must pro-
vide that the § 412(b)(7)(F)(iii) minimum
amount is required to be contributed for
each plan year in the period an election
to defer a net experience loss charge is in
effect. For example, if a plan sponsor with
a calendar plan year made a § 412(b)(7)(F)
deferral election to defer a net experience
loss charge for the 2004 plan year, with
the amount instead charged in the 2006
plan year, and adopted a plan amend-
ment increasing benefit liabilities in 2004,
the amendment is a fully funded plan
amendment only if the § 412(b)(7)(F)(iii)
May 23, 200510912005–21 I.R.B.

minimum amounts are required to be
contributed in 2004 and 2005. For rules
regarding the treatment of a credit balance
generated as a result of contributions made
with respect to the § 412(b)(7)(F)(iii) min-
imum amount for the prior plan year, see
Q&A–26 of this notice.
Q–24. If an amendment is adopted af-
ter the first day of the plan year, what spe-
cial rules apply in determining the required
minimum contribution under § 412 that
would have been due taking into account
the amendment?
A–24. For purposes of determining
the incremental amendment amount, if an
amendment is adopted after the first day
of the plan year, the calculation of the re-
quired minimum contribution under § 412
that would have been due taking into ac-
count the amendment generally is made as
if the amendment had been adopted and
made effective on the first day of the plan
year (i.e., the amendment must be fully
reflected in plan costs for this purpose).
However, if the amendment does not pro-
vide for benefit increases attributable to
service prior to the beginning of the plan
year, and is not effective as of the first
day of the plan year, the determination of
the required minimum contribution under
§ 412 that would have been due taking into
account the amendment is permitted to be
made in accordance with the rules of sec-
tion 2.02 of Rev. Rul. 77–2.
Q–25. How does the § 412(b)(7)(F)(iii)
minimum amount affect the application
of the minimum funding requirements of
§ 412?
A–25. The § 412(b)(7)(F)(iii) mini-
mum amount does not affect the compu-
tation of minimum required contributions
under § 412. If an amount in excess of
minimum required contributions is con-
tributed for a plan year on account of the
§ 412(b)(7)(F)(iii) minimum amount, the
plan’s funding standard account will re-
flect a credit balance on account of the ex-
cess.
Q–26. How does a credit balance gen-
erated as a result of contributions made
with respect to the § 412(b)(7)(F)(iii)
minimum amount for the first plan year
a § 412(b)(7)(F) deferral election is
in effect affect the computation of the
§ 412(b)(7)(F)(iii) minimum amount for
the second plan yeara § 412(b)(7)(F) de-
ferral election is in effect?
A–26. If an amendment was adopted
in a plan year for which the § 412(b)(7)(F)
deferral election was made, the credit
balance resulting from the excess of the
§ 412(b)(7)(F)(iii) minimum amount for
that plan year over the minimum re-
quired contribution for that plan year
must be disregarded in computing the
§ 412(b)(7)(F)(iii) minimum amount for
the second plan year the § 412(b)(7)(F)
deferral election is in effect. Thus, for
example, if a plan sponsor with a cal-
endar plan year made a § 412(b)(7)(F)
deferral election to defer a net experience
loss charge for the 2004 plan year, with
the amount instead charged in the 2006
plan year, and then adopts a plan amend-
ment increasing benefitliabilities in 2004,
the credit balance resulting from the ex-
cess of the § 412(b)(7)(F)(iii) minimum
amount for the 2004 plan year over the
minimum required contribution for the
2004 plan year must be disregarded in
computing the § 412(b)(7)(F)(iii) mini-
mum amount for 2005. However, if the
contributions made for the 2004 plan year
exceed the § 412(b)(7)(F)(iii) minimum
amount for that plan year, the credit bal-
ance attributable to that excess can be
taken into account in determining the
§ 412(b)(7)(F)(iii) minimum amount for
2005.
Q–27. How does the plan’s enrolled
actuary certify that an amendment is a fully
funded amendment?
A–27. The plan’s enrolled actuary cer-
tifies that an amendment is a fully funded
amendment by filing a certification with
the Service that, following the adoption
of the plan amendment, the plan includes
terms to the effect that contributions to
the plan while the net experience loss
charge deferral election is in effect will
exceed the § 412(b)(7)(F)(iii) minimum
amount described in Q&A–22 of this no-
tice. The certification may be based either
on plan terms incorporating the formula
described in Q&A–22 of this notice or on
plan terms providing for either an amount
of contributions or an alternative formula
for contributions under which contribu-
tions for the plan year will exceed the
§ 412(b)(7)(F)(iii) minimum amount. The
certification must also provide the deriva-
tion of the § 412(b)(7)(F)(iii) minimum
amount as well as the amount of contri-
butions required under the terms of the
plan (if determined under an alternative
formula).
If the certification that an amendment
is a fully funded amendment has not been
included with the § 412(b)(7)(F) deferral
election described in Q&A–11 of this no-
tice, a separate certification must be filed
by the due date for the filing of Form 5500
for the plan year (or June 30, 2005, if later).
The certification must be filed at the ad-
dress described in Q&A–11 of this notice.
Q–28. What is the effect of the adop-
tion of an amendment that increases
benefit liabilities in violation of the
§ 412(b)(7)(F)(iii) benefit restrictions?
A–28. The adoption of an amendment
that increases benefit liabilities in viola-
tion of the § 412(b)(7)(F)(iii) benefit re-
strictions will invalidate a § 412(b)(7)(F)
deferral election beginning with the plan
year the amendment is adopted.
Q–29. What are the consequences of
failure to contribute the amount required
under a fully funded amendment?
A–29. If the contributions required
under the terms of a fully funded
amendment are not made on or before
the due date for contributions for the
plan year, the failure to contribute the
§ 412(b)(7)(F)(iii)minimum amount in-
validates the § 412(b)(7)(F) deferral elec-
tion.
III. Paperwork Reduction Act
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–1935.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this
notice is in Q&A–11, Q&A–14, Q&A–15,
Q&A–17, and Q&A–27 of section II. This
information is requiredtoenabledele-
gates of the Commissioner, Tax Exempt
and Government Entities Division of the
Internal Revenue Service to monitor and
make valid determinations with respect to
whether a multiemployer plan may elect
to defer certain charges to the multiem-
ployer plan’s funding standard account.
As a result of such elections, the net ex-
2005–21 I.R.B.1092May 23, 2005

perience loss of a multiemployer plan’s
funding standard account will be deferred
and charges for these multiemployer plans
will be based on amounts specified un-
der § 412(b)(7) of the Code and section
302(b)(7) of ERISA. Such an election
may cause the excise tax for failure to
meet the minimum funding standards not
to be incurred. The likely respondents are
businesses and other for-profit institutions
or nonprofit institutions.
The estimated total annual reporting
and/or recordkeeping burden is 960 hours.
The estimated annual burden per re-
spondent/recordkeeper varies from 60 to
180 hours, depending on individual cir-
cumstances, with an estimated average of
80 hours. The estimated number of re-
spondents and/or recordkeepers is 12.
The estimated frequency of responses is
occasional.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally tax returns and tax return
information are confidential, as required
by 26 U.S.C. § 6103.
Drafting Information
The principal authors of this notice are
Michael Rubin of the Employee Plans,
Tax Exempt and Government Entities Di-
vision and Linda S. F. Marshall of the
Office of the Division Counsel/Associate
Chief Counsel (Tax Exempt and Govern-
ment Entities). Mr. Rubin may be reached
at 202–283–9888 (not a toll-free number).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part I, §§ 864; 1.861–8T; 1.861–9T.)
Rev. Proc. 2005–28
SECTION 1. PURPOSE
This revenue procedure sets forth the
administrative procedure under which a
taxpayerdescribedin§3ofthisrevenue
procedure may obtain automatic consent to
change from the fair market value method
to the alternative tax book value method of
valuing assets for purposes of apportioning
expenses pursuant to § 1.861–9T(g) of the
Temporary Income Tax Regulations. Ac-
cordingly, taxpayers that change from the
fair market value method to the alternative
taxbookvaluemethodpursuanttothisrev-
enue procedure will be treated as expressly
authorized by the Commissioner to change
methods. This automatic consent proce-
dure applies to changes in apportionment
method requested for taxable years begin-
ning on or after March 26, 2004, but before
March 26, 2006, and for which a return has
not previously been filed.
SECTION 2. BACKGROUND
.01 Section 864(e)(2) of the Internal
Revenue Code provides that allocation and
apportionment of interest expense is made
on the basis of assets rather than on the
basis of gross income. For this purpose,
§§ 1.861–8T(c)(2) and 1.861–9T(g)(1)(ii)
of the temporary regulations permit a
taxpayer to elect to compute the value
of its assets under either the tax book
value method or the fair market value
method. A taxpayer using the tax book
value method may elect to change to the
fair market value method at any time.See
Rev. Proc. 2003–37, 2003–1 C.B. 950.
However, § 1.861–8T(c)(2) provides that
a taxpayer electing to use the fair market
value method must continue to use that
method unless expressly authorized by the
Commissioner to change methods.
.02 On March 26, 2004, the Treasury
Department and the Internal Revenue
Service (IRS) published temporary reg-
ulations in the Federal Register (T.D.
9120, 2004–19 C.B. 881 [69 FR 15673]).
These regulations amended §1.861–9T by
adding §1.861–9T(i).Section 1.861–9T(i)
provides an alternative method of deter-
mining the tax book value of assets (the
“alternative tax book value method”).
Prior to the issuance of the temporary
regulations, a taxpayer could value assets
under one of two methods: the fair market
value method and the regular tax book
value method. The alternative tax book
valuemethodsetforthinthetemporary
regulations is a third method which allows
a taxpayer to elect to determine the tax
book value of its tangible property that is
subject to a depreciation deduction under
§ 168 as though all such property had
been depreciated using the straight line
method, conventions, and recovery peri-
ods of the alternative depreciation system
of § 168(g). The alternative tax book value
method therefore provides a taxpayer with
the option of determining the adjusted
bases of both foreign and domestic assets
under one consistent depreciation method
and helps minimize basis disparities that
may arise under the regular tax book value
method. The alternative tax book value
method applies solely for purposes of
apportioning expenses (including the cal-
culation of the alternative minimum tax
foreign tax credit pursuant to § 59(a) of the
Code) under the asset method described in
§ 1.861–9T(g).
.03 Section 1.861–9T(i)(2)(i) generally
allows a taxpayer to elect to value its as-
sets using the alternative tax book value
method with respect to any taxable year
beginning on or after March 26, 2004.
However, under § 1.861–8T(c)(2), a tax-
payer using the fair market value method
must obtain the consent of the Commis-
sioner to change methods, including a
change to the alternative tax book value
method.
.04 The preamble to the temporary reg-
ulations states thatthe Treasury Depart-
mentandtheIRSintendtoissuearev-
enue procedure to provide temporary rules
granting taxpayers automatic consent to
change from the fair market value method
to the alternative tax book value method.
Accordingly, this revenue procedure pro-
vides temporary rules for obtaining au-
tomatic consent to change from the fair
market value method to the alternative tax
book value method of valuing assets pur-
suant to § 1.861–9T(g)(1)(ii). Notwith-
standing these temporary rules for obtain-
ing automatic consent, a taxpayer may re-
quest, under the regular ruling process, the
consent of the Commissioner to change
from the fair market value method to the
regular tax book value method or the alter-
native tax book value method. These tem-
porary rules do not affect the ability of tax-
payers currently valuing assets under the
regular tax book value method to make a
change to the alternative tax book value
method with respect to any taxable year
beginning on or after March 26, 2004.
SECTION 3. SCOPE
.01 This revenue procedure applies to
any taxpayer requesting to change from the
fair market value method to the alterna-
tive tax book value method of asset valua-
May 23, 200510932005–21 I.R.B.

tion for a taxable year beginning on or af-
ter March 26, 2004, but before March 26,
2006, for which no return has previously
been filed.
SECTION 4. APPLICATION
.01 A taxpayer within the scope of this
revenue procedure is granted the consent
of the Commissioner to change to the al-
ternative tax book value method provided
that the other conditions of this § 4 are sat-
isfied.
.02 A corporation described in § 3.01
shall request to change to the alternative
tax book value method on a timely filed
Form 1118 by selecting that asset valua-
tion method on Part II of Schedule H and
attaching to Form 1118 the statement set
forthin§4.04. Inthecaseofsuchtax-
payers electronically filing Form 1118, the
statement must be included in the elec-
tronic version of Form 1118.
.03 A taxpayer, other than a corpora-
tion, described in § 3.01 shall request to
change to the alternative tax book value
method on a timely filed Form 1116 by
attaching to Form 1116 the statement set
forthin§4.04. Inthecaseofsuchtax-
payers electronically filing Form 1116, the
statement must be entered into the Election
Explanation Record ofthe electronic ver-
sion of Form 1040, Form 1041, or other
relevant form.
.04 The statement referred to in §§ 4.02
and 4.03 shall provide as follows: “For
the immediately preceding tax year, [name
of taxpayer] valued assets for expense ap-
portionment purposes using the fair mar-
ket value method. Pursuant to Rev. Proc.
2005–28, [name of taxpayer] is changing
from the fair market value method to the
alternative tax book value method of asset
valuation. This change to the alternative
tax book value method applies prospec-
tively beginning with [name of taxpayer]’s
[XXXX] taxable year.”
.05 Any taxpayer that changes to the al-
ternative tax book value method under this
revenue procedure must maintain all docu-
mentation necessary to establish its change
in valuation methods and its eligibility for
the benefits of this revenue procedure.
SECTION 5. EFFECTIVE DATE
.01 This revenue procedure is effective
for requests to change from the fair market
value method to the alternative tax book
value method for taxable years beginning
on or after March 26, 2004, but before
March 26, 2006, for which no return has
previously been filed.
SECTION 6. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. § 3507) under control number
1545–1944.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
revenue procedure are in § 4. They are
required to enable the IRS to determine
whether the taxpayer is eligible for an au-
tomatic change from the fair market value
method to the alternative tax book value
method. The information will also inform
revenue agents as to the years for which
the alternative tax book value method is
being adopted. The collections of infor-
mation are required in order to obtain the
benefit of the alternative tax book valua-
tion method. The likely respondents are
businesses.
The estimated total annual reporting
and/or recordkeeping burden is 100 hours.
The estimated annual burden per respon-
dent and/or recordkeeper is an estimated
average of .5 hours. The estimated num-
ber of respondents and/or recordkeepers is
200. The estimated frequency of response
is occasional.
Books and records relating to a collec-
tion of information must be retained as
long as their statements may become ma-
terial in the administration of any internal
revenue law. Generally, tax returns and tax
information are confidential, as required
by 26 U.S.C. § 6103.
SECTION 7. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Margaret A. Hogan of the
Office of Associate Chief Counsel (In-
ternational). For further information re-
garding this revenue procedure, contact
Margaret A. Hogan at (202) 622–3850
(not a toll-free call).
2005–21 I.R.B.1094May 23, 2005

Part IV. Items of General Interest
Section 1374 Effective Dates;
Correction
Announcement 2005–35
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendment.
SUMMARY: This document corrects
temporary regulations (T.D. 9170, 2005–4
I.R.B. 363) that were published in theFed-
eral Registeron Wednesday, December
22, 2004 (69 FR 76612). The document
contains temporary regulations providing
guidance concerningthe applicability of
section 1374 to S corporations that acquire
assets in carryover basis transactions from
C corporations on or after December 27,
1994, and to certain corporations that ter-
minate S corporation status and later elect
again to become S corporations.
DATES: This document is effective on De-
cember 22, 2004.
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (T.D. 9170)
that are the subject of this correction are
under section 1374 of the Internal Revenue
Code.
Need for Correction
As published, the temporary regula-
tions (T.D. 9170) contain errors that may
prove to be misleading and are in need of
clarification.
*****
Correction of Publication
Accordingly, 26 CFR Part 1 is cor-
rected by making the following correcting
amendments:
PART 1 — INCOME TAXES
Paragraph 1.The authority citation for
part 1 continues to read in part as follows:
Authority:26 U.S.C. 7805 * * *
Par. 2.The section heading and text of
§1.1374–8T is revised to read as follows:
§1.1374–8T 1374(d)(8) transactions
(temporary).
(a)(1) [Reserved]. For further guid-
ance, see §1.1374–8(a).
(2) Section 1374(d)(8) applies to any
section 1374(d)(8) transaction, as defined
in paragraph (a)(1) of this section, that oc-
curs on or after December 27, 1994, with-
out regard to the date of the corporation’s
election to be an S corporation under sec-
tion 1362.
(b) through (d) [Reserved]. For further
guidance, see §1.1374–8(b) through (d).
Cynthia Grigsby,
Acting Chief,
Publications and Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on May 4, 2005,
8:45 a.m., and published in the issue of the Federal Register
for May 5, 2005, 70 F.R. 23790)
Closing of the GUST Program
for Defined Contribution
Pre-Approved Plans
Announcement 2005–36
The Service announced the opening
of the initial (i.e.,EGTRRA
1
) six-year
amendment/approval cycle for defined
contribution pre-approved (i.e.,master
and prototype (M&P) and volume submit-
ter (VS)) plans in Rev. Proc. 2005–16,
2005–10 I.R.B. 674. Effective on Feb-
ruary 17, 2005, Rev. Proc. 2005–16
modified and superseded Rev. Proc.
2000–20, 2000–1 C.B. 553. Accordingly,
pursuant to this Announcement 2005–36,
the GUST
2
defined contribution pre-ap-
proved program will close as of June 15,
2005.
Applications for:
•New defined contribution pre-ap-
proved non-mass submitter and mass
submitter (i.e., identical adopters and
minor modifiers) plans, and
•New sponsors and practitioners of de-
fined contribution non-mass submitter
and mass submitter (i.e., identical
adopters and minor modifiers) plans
may be submitted through June 15, 2005.
Any application for a defined contribution
pre-approved plan (as described in the pre-
ceding two bullets) postmarked after June
15, 2005, will be returned along with the
user fee. In addition, any application for
a defined contribution pre-approved plan
which previously received a GUST opin-
ion or advisory letter (except for plans de-
scribed in the second bullet) will be re-
turned along with the user fee.
In the case of submissions described in
the preceding two bullets that were previ-
ously returned after Rev. Proc. 2005–16
was issued, the applicants are permitted to
resubmit their pre-approved applications,
but not later than June 15, 2005. M&P
sponsors and VS practitioners should send
their applications to the respective Service
offices which processed previous GUST
applications.
The Service will announce at a later
date the closing of the GUST programs for
defined benefit pre-approved plans and for
individually designed plans.
1
Economic Growth and Tax Relief Reconciliation Act of 2001, Pub. L. 107–16
2
The term “GUST” refers to the following:
•the Uruguay Round Agreements Act, Pub. L. 103–465;
•the Uniformed Services Employment and Reemployment Rights Act of 1994, Pub. L. 103–353;
•the Small Business Job Protection Act of 1996, Pub. L. 104–188;
•the Taxpayer Relief Act of 1997, Pub. L. 105–34;
•the Internal Revenue Service Restructuring and Reform Act of 1998, Pub. L. 105–206; and
•the Community Renewal Tax Relief Act of 2000, Pub. L. 106–554.
The GUST remedial amendment period generally ended on the later of February 28, 2002, or the end of a plan’s 2001 plan year. However, for certain plans eligible for an extended GUST
remedial amendment period under Rev. Proc. 2000–20, 2000–1C.B. 553, the period generally ended on September 30, 2003.
May 23, 200510952005–21 I.R.B.

Submission Deadlines for Initial
Six-Year Cycle for Defined Contribution
Pre-Approved Plans for EGTRRA
Program
In the draft revenue procedure attached
to Announcement 2004–71, 2004–40
I.R.B. 569, the Service proposed October
31, 2005, as the end of the submission
period for sponsors and practitioners of
mass submitter plans and national sponsor
plans. Pursuant to this Announcement
2005–36, the deadline for mass submitter
plan and national sponsor plan applica-
tions is October 31, 2005. Rev. Proc.
2005–16 stated that the end of the submis-
sion period for sponsors and practitioners
of defined contribution pre-approved plans
is January 31, 2006; this later deadline,
however applies only for submissions of
defined contribution non-mass submitter
pre-approved plans.
Authority of Volume Submitter
Practitioner to Amend for
Adopting Employers
Announcement 2005–37
Section 15.05 of Rev. Proc. 2005–16,
2005–10 I.R.B. 674, effective February 17,
2005, permits a Volume Submitter (VS)
plan to include a provision (“implement-
ing amendment”) that authorizes the VS
practitioner to amend the plan on behalf of
adopting employers. This announcement
explains how a VS practitioner adopts the
implementing amendment, describes the
type of amendments that can be made on
behalf of adopting employers, provides
practitioners with interim relief of 60 days
to adopt the implementing amendment in
certain cases, and contains sample lan-
guage for the implementing amendment.
Procedures for adopting implementing
amendment
There are 3 steps to implement these
procedures:
•The VS practitioner must send an au-
thorization form and a copy of the
proposed amendment to each adopt-
ing employer. The authorization form
should inform the employer that if
it does not accept this implementing
amendment or adopt another pre-ap-
proved plan, the employer’s plan will
become an individually designed plan.
The authorization form should also
require the employer to state whether
it accepts or rejects the practitioner’s
authority to amend on its behalf.
•Each employer must return the com-
pleted form to the practitioner, signed
and dated.
•Generally, the VS practitioner should
not adopt the implementing amend-
ment for a plan until it receives re-
sponses from all adopting employers.
However, interim relief for certain
amendments is provided below.
For a defined contribution VS plan, the im-
plementing amendment will be reviewed
as part of the Economic Growth and Tax
Relief Reconciliation Act of 2001, Pub. L.
107–16 (EGTRRA) submission of the
VS plan under Rev. Proc. 2005–16 if
theplanisamendedbythedatetheVS
practitioner submits a timely application
for an advisory letter. (Applications are
due October 31, 2005, for mass submit-
ter and national sponsor applications and
January 31, 2006, for other defined contri-
bution pre-approved plans.) With respect
to a defined benefit VS plan, which has a
later submission date, the implementing
amendment will also be reviewed as part
of the EGTRRA submission if the plan is
amended by the date the VS practitioner
submits a timely application for a defined
benefit plan.
Types of Amendments Made for
Adopting Employers
Section 15.05 of Rev. Proc. 2005–16
provides that the authority to amend on
behalf of employers extends to changes
in the Code, regulations, revenue rulings,
and other statementspublished by the Ser-
vice, including model, sample or other re-
quired good faith amendments, and correc-
tions of prior approved plans. The prac-
titioner must make all required and dis-
cretionary amendments for adopting em-
ployers. Depending on the circumstances,
the employer may also need to sign the
amendments. For example, the employer
would sign a good faith amendment that
requires the adopting employer to choose
some optional provisions. As described
in section 15.05, if the employer makes
certain amendments causing it to be con-
sideredanindividuallydesignedplan,the
practitioner’s authority to amend on behalf
of that particular employer no longer ap-
plies.
Interim Relief for Certain Automatic
Rollover Amendments
Under Notice 2005–5, 2005–3 I.R.B.
337, plan amendments complying with
automatic rollover provisions under
§ 401(a)(31)(B) of the Code must be
adopted by the end of the first plan year
ending on or after March 28, 2005. It is
possible certain practitioners may have
amended VS plans on behalf of employers
to comply with the automatic rollover pro-
visions before amending the VS plan to
include an implementing amendment. If
this was done, the VS practitioner should
comply with the above procedures by
receiving the signed authorization form
from all of the employers and adopting
the implementing amendment giving the
practitioner the general authority to make
amendments for adopting employers (see
sample language below) within 60 cal-
endar days of May 9, 2005. This imple-
menting amendment should be effective
as of the date the practitioner first made
the specific plan amendment on behalf of
employers to comply with the automatic
rollover provisions. For example, a practi-
tioner who, on or after February 17, 2005,
but before May 9, 2005, adopted a plan
amendment on behalf of employers to
reduce the mandatory cash-out amount to
$1000, must comply with the procedures
described above except that for purposes
of this specific amendment reducing the
mandatory cash-out amount, the practi-
tioner will be deemed to have received
timely authorization if the practitioner re-
ceives the signed authorization form from
all of the employers and adopts the imple-
menting amendment within 60 calendar
days of May 9, 2005.
Sample Plan Language —
Implementing Amendment
Practitioners may or may not be able
to adopt this sample language verbatim,
depending on the circumstances.
The practitioner will amend the plan on
behalf of all adopting employers, includ-
ing those employers who have adopted the
2005–21 I.R.B.1096May 23, 2005

plan prior to this amendment, for changes
in the Code, regulations, revenue rulings,
other statements published by the Internal
Revenue Service, including model, sample
or other required good faith amendments,
but only if their adoption will not cause
such plan to be individually designed, and
for corrections of prior approved plans.
These amendments will be applied to all
employers who have adopted the plan.
The practitioner will no longer have the
authority to amend the plan on behalf of
any adopting employer as of either: (1) the
date the Service requires the employer to
file Form 5300 as an individually designed
plan as a result of an employer amendment
to the plan to incorporate a type of plan
not allowable in the Volume Submitter pro-
gram, as described in Rev. Proc. 2005–16,
or (2) as of the date the plan is otherwise
considered an individually designed plan
due to the nature and extent of the amend-
ments. If the employer is required to ob-
tain a determination letter for any reason
in order to maintain reliance on the advi-
sory letter, the practitioner’s authority to
amend the plan on behalf of the adopting
employer is conditioned on the plan receiv-
ing a favorable determination letter.
The VS practitioner will maintain, or
have maintained on its behalf, a record of
the employers that have adopted the plan,
and the VS practitioner will make rea-
sonable and diligent efforts to ensure that
adopting employershave actually received
and are aware of all plan amendments and
that such employers adopt new documents
when necessary. This amendment super-
sedes other provisions of the plan to the ex-
tent those other provisions are inconsistent
with this amendment.
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2005–38
The names of organizations that no
longer qualify as organizations described
in section 170(c)(2) of the Internal Rev-
enue Code of 1986 are listed below.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an or-
ganization ceases to qualify under section
170(c)(2) if the organization has not timely
filed a suit for declaratory judgment under
section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on May 23, 2005, and
would end on the date the court first deter-
mines that the organization is not described
in section 170(c)(2) as more particularly
set forth in section 7428(c)(1). For indi-
vidual contributors, the maximum deduc-
tion protected is $1,000, with a husband
and wife treated as one contributor. This
benefit is not extended to any individual, in
wholeorinpart,fortheactsoromissions
of the organization that were the basis for
revocation.
Beacon Ministries of North Carolina, Inc.
Creston, NC
Haysville Tiger Baseball Foundation
Haysville, KS
National Center for Debt Elimination, Ltd.
North Huntingdon, PA
May 23, 200510972005–21 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2005–21 I.R.B.iMay 23, 2005

Numerical Finding List
1
Bulletins 2005–1 through 2005–21
Announcements:
2005-1, 2005-1 I.R.B.257
2005-2, 2005-2 I.R.B.319
2005-3, 2005-2 I.R.B.270
2005-4, 2005-2 I.R.B.319
2005-5, 2005-3 I.R.B.353
2005-6, 2005-4 I.R.B.377
2005-7, 2005-4 I.R.B.377
2005-8, 2005-4 I.R.B.380
2005-9, 2005-4 I.R.B.380
2005-10, 2005-5 I.R.B.450
2005-11, 2005-5 I.R.B.451
2005-12, 2005-7 I.R.B.555
2005-13, 2005-8 I.R.B.627
2005-14, 2005-9 I.R.B.653
2005-15, 2005-9 I.R.B.654
2005-16, 2005-10 I.R.B.702
2005-17, 2005-10 I.R.B.673
2005-18, 2005-9 I.R.B.660
2005-19, 2005-11 I.R.B.744
2005-20, 2005-12 I.R.B.772
2005-21, 2005-12 I.R.B.776
2005-22, 2005-14 I.R.B.826
2005-23, 2005-14 I.R.B.845
2005-24, 2005-15 I.R.B.889
2005-25, 2005-15 I.R.B.891
2005-26, 2005-17 I.R.B.969
2005-27, 2005-16 I.R.B.918
2005-28, 2005-17 I.R.B.969
2005-29, 2005-17 I.R.B.969
2005-30, 2005-18 I.R.B.988
2005-31, 2005-18 I.R.B.996
2005-32, 2005-19 I.R.B.1012
2005-33, 2005-19 I.R.B.1013
2005-34, 2005-19 I.R.B.1014
2005-35, 2005-21 I.R.B.1095
2005-36, 2005-21 I.R.B.1095
2005-37, 2005-21 I.R.B.1096
2005-38, 2005-21 I.R.B.1097
Court Decisions:
2080, 2005-15 I.R.B.850
Notices:
2005-1, 2005-2 I.R.B.274
2005-2, 2005-3 I.R.B.337
2005-3, 2005-5 I.R.B.447
2005-4, 2005-2 I.R.B.289
2005-5, 2005-3 I.R.B.337
2005-6, 2005-5 I.R.B.448
2005-7, 2005-3 I.R.B.340
2005-8, 2005-4 I.R.B.368
Notices— Continued:
2005-9, 2005-4 I.R.B.369
2005-10, 2005-6 I.R.B.474
2005-11, 2005-7 I.R.B.493
2005-12, 2005-7 I.R.B.494
2005-13, 2005-9 I.R.B.630
2005-14, 2005-7 I.R.B.498
2005-15, 2005-7 I.R.B.527
2005-16, 2005-8 I.R.B.605
2005-17, 2005-8 I.R.B.606
2005-18, 2005-9 I.R.B.634
2005-19, 2005-9 I.R.B.634
2005-20, 2005-9 I.R.B.635
2005-21, 2005-11 I.R.B.727
2005-22, 2005-12 I.R.B.756
2005-23, 2005-11 I.R.B.732
2005-24, 2005-12 I.R.B.757
2005-25, 2005-14 I.R.B.827
2005-26, 2005-12 I.R.B.758
2005-27, 2005-13 I.R.B.795
2005-28, 2005-13 I.R.B.796
2005-29, 2005-13 I.R.B.796
2005-30, 2005-14 I.R.B.827
2005-31, 2005-14 I.R.B.830
2005-32, 2005-16 I.R.B.895
2005-33, 2005-17 I.R.B.960
2005-34, 2005-17 I.R.B.960
2005-35, 2005-21 I.R.B.1087
2005-36, 2005-19 I.R.B.1007
2005-37, 2005-20 I.R.B.1049
2005-39, 2005-21 I.R.B.1087
2005-40, 2005-21 I.R.B.1088
Proposed Regulations:
REG-117969-00, 2005-7 I.R.B.533
REG-125443-01, 2005-16 I.R.B.912
REG-125628-01, 2005-7 I.R.B.536
REG-129709-03, 2005-3 I.R.B.351
REG-148701-03, 2005-13 I.R.B.802
REG-148867-03, 2005-9 I.R.B.646
REG-159243-03, 2005-20 I.R.B.1075
REG-160315-03, 2005-14 I.R.B.833
REG-163314-03, 2005-14 I.R.B.835
REG-122847-04, 2005-13 I.R.B.804
REG-130370-04, 2005-8 I.R.B.608
REG-130671-04, 2005-10 I.R.B.694
REG-131128-04, 2005-11 I.R.B.733
REG-139683-04, 2005-4 I.R.B.371
REG-147195-04, 2005-15 I.R.B.888
REG-148521-04, 2005-18 I.R.B.995
REG-152354-04, 2005-13 I.R.B.805
REG-152914-04, 2005-9 I.R.B.650
REG-152945-04, 2005-6 I.R.B.484
REG-154000-04, 2005-19 I.R.B.1009
REG-159824-04, 2005-4 I.R.B.372
REG-162813-04, 2005-19 I.R.B.1010
Revenue Procedures:
2005-1, 2005-1 I.R.B.1
2005-2, 2005-1 I.R.B.86
2005-3, 2005-1 I.R.B.118
2005-4, 2005-1 I.R.B.128
2005-5, 2005-1 I.R.B.170
2005-6, 2005-1 I.R.B.200
2005-7, 2005-1 I.R.B.240
2005-8, 2005-1 I.R.B.243
2005-9, 2005-2 I.R.B.303
2005-10, 2005-3 I.R.B.341
2005-11, 2005-2 I.R.B.307
2005-12, 2005-2 I.R.B.311
2005-13, 2005-12 I.R.B.759
2005-14, 2005-7 I.R.B.528
2005-15, 2005-9 I.R.B.638
2005-16, 2005-10 I.R.B.674
2005-17, 2005-13 I.R.B.797
2005-18, 2005-13 I.R.B.798
2005-19, 2005-14 I.R.B.832
2005-20, 2005-18 I.R.B.990
2005-21, 2005-16 I.R.B.899
2005-22, 2005-15 I.R.B.886
2005-23, 2005-18 I.R.B.991
2005-24, 2005-16 I.R.B.909
2005-25, 2005-17 I.R.B.962
2005-26, 2005-17 I.R.B.965
2005-27, 2005-20 I.R.B.1050
2005-28, 2005-21 I.R.B.1093
Revenue Rulings:
2005-1, 2005-2 I.R.B.258
2005-2, 2005-2 I.R.B.259
2005-3, 2005-3 I.R.B.334
2005-4, 2005-4 I.R.B.366
2005-5, 2005-5 I.R.B.445
2005-6, 2005-6 I.R.B.471
2005-7, 2005-6 I.R.B.464
2005-8, 2005-6 I.R.B.466
2005-9, 2005-6 I.R.B.470
2005-10, 2005-7 I.R.B.492
2005-11, 2005-14 I.R.B.816
2005-12, 2005-9 I.R.B.628
2005-13, 2005-10 I.R.B.664
2005-14, 2005-12 I.R.B.749
2005-15, 2005-11 I.R.B.720
2005-16, 2005-13 I.R.B.777
2005-17, 2005-14 I.R.B.823
2005-18, 2005-14 I.R.B.817
2005-19, 2005-14 I.R.B.819
2005-20, 2005-14 I.R.B.821
2005-21, 2005-14 I.R.B.822
2005-22, 2005-13 I.R.B.787
2005-23, 2005-15 I.R.B.864
2005-24, 2005-16 I.R.B.892
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2004–27 through 2004–52 is in Internal Revenue Bulletin
2004–52, dated December 27, 2004.
May 23, 2005ii2005–21 I.R.B.

Revenue Rulings— Continued:
2005-25, 2005-18 I.R.B.971
2005-26, 2005-17 I.R.B.957
2005-27, 2005-19 I.R.B.998
2005-28, 2005-19 I.R.B.997
2005-29, 2005-21 I.R.B.1080
2005-30, 2005-20 I.R.B.1015
2005-31, 2005-21 I.R.B.1084
Tax Conventions:
2005-3, 2005-2 I.R.B.270
2005-17, 2005-10 I.R.B.673
2005-22, 2005-14 I.R.B.826
2005-30, 2005-18 I.R.B.988
Treasury Decisions:
9164, 2005-3 I.R.B.320
9165, 2005-4 I.R.B.357
9166, 2005-8 I.R.B.558
9167, 2005-2 I.R.B.261
9168, 2005-4 I.R.B.354
9169, 2005-5 I.R.B.381
9170, 2005-4 I.R.B.363
9171, 2005-6 I.R.B.452
9172, 2005-6 I.R.B.468
9173, 2005-8 I.R.B.557
9174, 2005-9 I.R.B.629
9175, 2005-10 I.R.B.665
9176, 2005-10 I.R.B.661
9177, 2005-10 I.R.B.671
9178, 2005-11 I.R.B.708
9179, 2005-11 I.R.B.707
9180, 2005-11 I.R.B.714
9181, 2005-11 I.R.B.717
9182, 2005-11 I.R.B.713
9183, 2005-12 I.R.B.754
9184, 2005-12 I.R.B.753
9185, 2005-12 I.R.B.749
9186, 2005-13 I.R.B.790
9187, 2005-13 I.R.B.778
9188, 2005-15 I.R.B.883
9189, 2005-13 I.R.B.788
9190, 2005-15 I.R.B.855
9191, 2005-15 I.R.B.854
9192, 2005-15 I.R.B.866
9193, 2005-15 I.R.B.862
9194, 2005-20 I.R.B.1016
9195, 2005-17 I.R.B.958
9196, 2005-19 I.R.B.1000
9197, 2005-18 I.R.B.985
9198, 2005-18 I.R.B.972
9199, 2005-19 I.R.B.1003
2005–21 I.R.B.iiiMay 23, 2005

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2005–1 through 2005–21
Announcements:
2001-77
Modified by
Rev. Proc. 2005-16, 2005-10 I.R.B.674
Notices:
88-30
Obsoleted by
Notice 2005-4, 2005-2 I.R.B.289
88-132
Obsoleted by
Notice 2005-4, 2005-2 I.R.B.289
89-29
Obsoleted by
Notice 2005-4, 2005-2 I.R.B.289
89-38
Obsoleted by
Notice 2005-4, 2005-2 I.R.B.289
97-19
Obsoleted in part by
Notice 2005-36, 2005-19 I.R.B.1007
98-34
Obsoleted in part by
Notice 2005-36, 2005-19 I.R.B.1007
2002-45
Amplified by
Rev. Rul. 2005-24, 2005-16 I.R.B.892
2004-22
Modified and superseded by
Notice 2005-30, 2005-14 I.R.B.827
2004-38
Obsoleted by
T.D. 9186, 2005-13 I.R.B.790
2004-80
Clarified and modified by
Notice 2005-22, 2005-12 I.R.B.756
Updated by
Notice 2005-17, 2005-8 I.R.B.606
2005-4
Modified by
Notice 2005-24, 2005-12 I.R.B.757
2005-17
Clarified and modified by
Notice 2005-22, 2005-12 I.R.B.756
Proposed Regulations:
REG-149519-03
Corrected by
Ann. 2005-11, 2005-5 I.R.B.451
REG-163314-03
Corrected by
Ann. 2005-32, 2005-19 I.R.B.1012
REG-114726-04
Corrected by
Ann. 2005-10, 2005-5 I.R.B.450
REG-152945-04
Corrected by
Ann. 2005-34, 2005-19 I.R.B.1014
Revenue Procedures:
84-58
Superseded by
Rev. Proc. 2005-18, 2005-13 I.R.B.798
98-16
Modified and superseded by
Rev. Proc. 2005-11, 2005-2 I.R.B.307
2000-20
Modified and superseded by
Rev. Proc. 2005-16, 2005-10 I.R.B.674
2001-22
Superseded by
Rev. Proc. 2005-12, 2005-2 I.R.B.311
2002-9
Modified and amplified by
Rev. Proc. 2005-9, 2005-2 I.R.B.303
2003-32
Amplified and superseded by
Rev. Proc. 2005-20, 2005-18 I.R.B.990
2004-1
Superseded by
Rev. Proc. 2005-1, 2005-1 I.R.B.1
2004-2
Superseded by
Rev. Proc. 2005-2, 2005-1 I.R.B.86
2004-3
Superseded by
Rev. Proc. 2005-3, 2005-1 I.R.B.118
2004-4
Superseded by
Rev. Proc. 2005-4, 2005-1 I.R.B.128
2004-5
Superseded by
Rev. Proc. 2005-5, 2005-1 I.R.B.170
2004-6
Superseded by
Rev. Proc. 2005-6, 2005-1 I.R.B.200
Revenue Procedures— Continued:
2004-7
Superseded by
Rev. Proc. 2005-7, 2005-1 I.R.B.240
2004-8
Superseded by
Rev. Proc. 2005-8, 2005-1 I.R.B.243
2004-13
Superseded by
Rev. Proc. 2005-27, 2005-20 I.R.B.1050
2004-16
Modified and superseded by
Rev. Proc. 2005-25, 2005-17 I.R.B.962
2004-18
Obsoleted in part by
Rev. Proc. 2005-15, 2005-9 I.R.B.638
2004-24
Obsoleted by
Rev. Proc. 2005-22, 2005-15 I.R.B.886
2004-35
Corrected by
Ann. 2005-4, 2005-2 I.R.B.319
2004-60
Superseded by
Rev. Proc. 2005-10, 2005-3 I.R.B.341
2005-6
Modified by
Rev. Proc. 2005-16, 2005-10 I.R.B.674
2005-8
Modified by
Rev. Proc. 2005-16, 2005-10 I.R.B.674
2005-9
Modified by
Rev. Proc. 2005-17, 2005-13 I.R.B.797
Revenue Rulings:
69-516
Obsoleted by
T.D. 9182, 2005-11 I.R.B.713
76-96
Suspendedinpartby
Rev. Rul. 2005-28, 2005-19 I.R.B.997
77-415
Obsoleted by
T.D. 9182, 2005-11 I.R.B.713
77-479
Obsoleted by
T.D. 9182, 2005-11 I.R.B.713
79-335
Modified and superseded by
Rev. Rul. 2005-30, 2005-20 I.R.B.1015
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2004–27 through 2004–52 is in Internal Revenue Bulletin 2004–52, dated December 27,
2004.
May 23, 2005iv2005–21 I.R.B.

Revenue Rulings— Continued:
82-34
Obsoleted by
T.D. 9182, 2005-11 I.R.B.713
92-19
Supplemented in part by
Rev. Rul. 2005-29, 2005-21 I.R.B.1080
92-63
Modified and superseded by
Rev. Rul. 2005-3, 2005-3 I.R.B.334
95-63
Modified and superseded by
Rev. Rul. 2005-3, 2005-3 I.R.B.334
2004-43
Revoked by
Rev. Rul. 2005-10, 2005-7 I.R.B.492
2004-103
Superseded by
Rev. Rul. 2005-3, 2005-3 I.R.B.334
Treasury Decisions:
8408
Corrected by
Ann. 2005-28, 2005-17 I.R.B.969
9130
Corrected by
Ann. 2005-29, 2005-17 I.R.B.969
9165
Corrected by
Ann. 2005-31, 2005-18 I.R.B.996
9166
Corrected by
Ann. 2005-33, 2005-19 I.R.B.1013
9170
Corrected by
Ann. 2005-13, 2005-8 I.R.B.627
Ann. 2005-35, 2005-21 I.R.B.1095
9187
Corrected by
Ann. 2005-25, 2005-15 I.R.B.891
2005–21 I.R.B.vMay 23, 2005
*U.S. Government Printing Office: 2005—314–048/20006