Internal Revenue Bulletin 2008-50 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 200
8-50
December 15, 200
8
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
T.D. 9433, page 1263.
Final regulations under section 7701 of the Code add an entity
to the list of foreign business entities that are always classified
as corporations. This entity is not eligible to check the box to
change its classification.
Notice 2008–107, page 1265.
This notice provides adjusted limitations on housing expenses
for tax year 2008 for purposes of section 911 of the Code.
Notice 2008–109, page 1282.
This notice provides guidance with respect to state volume lim-
its under section 1400N that are applicable to (1) allocations
of the low-income housing tax credit in the Midwestern and Hur-
ricane Ike disaster areas, (2) the issuance of tax-exempt bonds
for the Midwestern and Hurricane Ike disaster areas, and (3)
the issuance of tax credit bonds for the Midwestern disaster
areas. TheseprovisionswereenactedaspartoftheTaxEx-
tenders and Alternative Minimum Tax Relief Act of 2008. The
notice provides a list of the counties that qualify as Midwest-
ern or Hurricane Ike disaster areas and provides the portion of
the state population located in the disaster or other relevant
areas for purposes of determining the volume limits applicable
to each of these provisions. The notice also provides instruc-
tions for reporting the issuance of Midwestern and Hurricane
Ike tax-exempt and tax credit bonds.
Rev. Proc. 2008–72, page 1286.
2009 optional standard mileage rates.This procedure an-
nounces 55 cents as the optional rate for deducting or account-
ing for expenses for business use of an automobile, 14 cents
as the optional rate for use of an automobile as a charitable
contribution, and 24 cents as the optional rate for use of an
automobile as a medical or moving expense for 2009. The
procedure also provides rules for substantiating the deductible
expenses of using an automobile for business, moving, med-
ical, or charitable purposes. Rev. Proc. 2007–70 and An-
nouncement 2008–63 superseded.
EMPLOYEE PLANS
Notice 2008–108, page 1275.
Retirement plans; qualification, list of changes.This no-
tice sets forth a list of changes referred to in Rev. Proc.
2007–44, 2007–2 C.B. 54, pertaining to the statutory, reg-
ulatory, and guidance changes needed for certain requests to
the Service for opinion, advisory, and determination letters for
the 12-month period beginning February 1, 2009.
EXEMPT ORGANIZATIONS
Announcement 2008–120, page 1295.
A list is provided of organizations now classified as private foun-
dations.
ADMINISTRATIVE
T.D. 9433, page 1263.
Final regulations under section 7701 of the Code add an entity
to the list of foreign business entities that are always classified
as corporations. This entity is not eligible to check the box to
change its classification.
(Continued on the next page)
Finding Lists begin on page ii.

Announcement 2008–119, page 1295.
This announcement contains clarification to filing procedures
in Publication 1187 for Form 1042-S,Foreign Person’s
U.S. Source Income Subject to Withholding, filed electroni-
cally. These changes are effective immediately. Rev. Proc.
2008–44 clarified.
Announcement 2008–121, page 1296.
This document provides notice of a public hearing on proposed
regulations (REG–106251–08, 2008–39 I.R.B. 774) relating to
options granted under an employee stock purchase plan as de-
fined in section 423 of the Code. These proposed regulations
affect certain taxpayers who participate in the transfer of stock
pursuant to the exercise of options granted under an employee
stock purchase plan. The public hearing is scheduled for Jan-
uary 15, 2009.
December 15, 20082008–50 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d 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 Secre-
tary (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.
2008–50 I.R.B.December 15, 2008

December 15, 20082008–50 I.R.B.
Place missing child here.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Se
ction 7701.—Definitions
26 CFR 301.7701–2: Business entities; definitions.
T.D. 9433
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 301
Classification of Certain
Foreign Entities
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations and removal
of temporary regulations.
SUMMARY: This document contains fi-
nal regulations relating to certain business
entities included on the list of foreign busi-
ness entities that are always classified as
corporations for Federal tax purposes. The
regulations are neededto make the Federal
tax classification of the Bulgarian public
limited liability company (aktsionerno
druzhestvo) consistent with the Federal
tax classification of public limited liability
companies organizedin other countries of
the European Economic Area. The regula-
tions will affect persons owning an interest
in a Bulgarian aktsionerno druzhestvo on
or after January 1, 2007.
DATES:Effective Date:These regulations
are effective on November 28, 2008.
Applicability Date:For the dates of
applicability of these regulations, see
§301.7701–2(e)(7).
FOR FURTHER INFORMATION
CONTACT: S. James Hawes, (202)
622–3860 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
On March 21, 2008, the IRS and
Treasury Department published in the
Federal Registertemporary regula-
tions (T.D. 9388, 2008–17 I.R.B. 832
[73 FR 15064]) and a notice of proposed
rulemaking (REG–143468–07, 2008–17
I.
R.B. 848 [73 FR 15107]) under section
7
701 of the Internal Revenue Code
(
Code). The regulations added the
B
ulgarian aktsionerno druzhestvo to the
l
ist of entities in §301.7701–2(b)(8) (the
p
er secorporation list). For further
background, see T.D. 9388 and Notice
2007–10, 2007–4 I.R.B. 354.
On October 8, 2001, the Council of the
European Union adopted Council Regu-
lation 2157/2001 (2001 Official Journal
of the European Communities, L 294/1)
(the EU Regulation) permitting the organ-
ization of a new public limited liability
company, the Societas Europaea (SE).
The EU Regulation entered into force
on October 8, 2004. The general rules
for the formation and operation of an SE
provided by the EU Regulation are sup-
plemented by the laws of the member
country in which the SE has its registered
office. On December 16, 2005, the IRS
and Treasury Department published final
regulations in theFederal Register(T.D.
9235, 2006–1 C.B. 338) adding the SE
to theper secorporation list. The pre-
amble to T.D. 9388 stated incorrectly that
the aktsionerno druzhestvo is Bulgaria’s
SE. In fact, the aktsionerno druzhestvo
is a public limited liability company
organized in Bulgaria. The IRS and
Treasury Department continue to study
issuesrelatedtotheresidenceofanSE
for application of relevant Federal income
tax provisions, such as the same-country
exception under section 954(c)(3) of the
Code. Comments are requested.
Explanation of Provisions
No written comments were received
from the public or the Small Business
Administration on the temporary or pro-
posed regulations. No public hearing was
requested or held. Accordingly, these
regulations finalize the proposed regula-
tions without modification and remove the
text of the temporary regulations from the
Code of Federal Regulations.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12
866. Therefore, a regulatory assess-
m
ent is not required. It has also been
d
etermined that section 553(b) of the
A
dministrative Procedure Act (5 U.S.C.
C
hapter 5) does not apply to these reg-
u
lations. Because the regulations do
not impose a collection of information
requirement on small entities, the Regula-
tory Flexibility Act (5 U.S.C. Chapter 6)
does not apply either. Pursuant to section
7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking preceding
this regulation was submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
Drafting Information
The principal author of these regula-
tions is S. James Hawes of the Office of
Associate Chief Counsel (International);
however, other personnel from the IRS and
the Treasury Department participated in
their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 301 is
amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part 301 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 301.7701–2 is amended
by:
1. Adding an entry in alphabetical order
to paragraph (b)(8)(i).
2. Removing paragraph (b)(8)(vi).
3. Revising paragraph (e)(7).
The revisions and addition read as fol-
lows:
§301.7701–2 Business entities;
definitions.
*****
(b) * * *
(8) * * *
(i) * * *
2008–50 I.R.B.1263December 15, 2008

Bulgaria, Aktsionerno Druzhestvo.
*****
(e) * * *
(7) The reference to the Bulgarian en-
tity in paragraph (b)(8)(i) of this section
appliestosuchentitiesformedonoraf-
ter January 1, 2007, and to any such en-
tity formed before such date from the date
that, in the aggregate, a 50 percent or more
interest in such entity is owned by any per-
son or persons who were not owners of the
entity as of January 1, 2007. For purposes
of the preceding sentence, the terminterest
means—
(i) In the case of a partnership, a capital
or profits interest; and
(ii) In the case of a corporation, an eq-
uity interest measured by vote or value.
§301.7701–2T [Removed]
Par. 3. Section 301.7701–2T is re-
moved.
LindaE.Stiff,
Deputy Commissioner for
Services and Enforcement.
Approved October 31, 2008.
Eric Solomon,
Assistant Secretary of
theTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on November 26,
2008, 8:45 a.m., and published in the issue of the Federal
Register for November 28, 2008, 73 F.R. 72345)
December 15, 200812642008–50 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Determination of Housing Cost
Amounts Eligible for Exclusion
or Deduction for 2008
Notice 2008–107
SECTION 1. PURPOSE
This notice provides adjustments to the
limitation on housing expenses for pur-
poses of section 911 of the Internal Rev-
enue Code (Code) for specific locations for
2008. These adjustments are made on the
basis of geographic differences in housing
costs relative to housing costs in the United
States.
SECTION 2. BACKGROUND
Section 911(a) of the Code allows a
qualified individual to elect to exclude
from gross income the foreign earned in-
come and housing cost amount of such
individual. Section 911(c)(1) defines the
term “housing cost amount” as an amount
equal to the excess of (A) the housing
expenses of an individual for the taxable
year to the extent such expenses do not
exceed the amount determined under sec-
tion 911(c)(2), over (B) 16 percent of the
exclusion amount (computed on a daily
basis) in effect under section 911(b)(2)(D)
for the calendar year in which such taxable
year begins ($239.34 per day for 2008, or
$87,600 for the full year), multiplied by
the number of days of that taxable year
within the applicable period described in
section 911(d)(1). The applicable period
is the period during which the individual
meets the tax home requirement of section
911(d)(1) and either thebona fideresi-
dence requirement of section 911(d)(1)(A)
or the physical presence requirement of
section 911(d)(1)(B). Assuming that the
entire taxable year ofa qualified individ-
ual is within the applicable period, the
section 911(c)(1)(B) amount for 2008 is
$14,016 ($87,600 x .16).
Section 911(c)(2)(A) of the Code lim-
its the housing expenses taken into account
in section 911(c)(1)(A) to an amount equal
to (i) 30 percent (adjusted as may be pro-
vided under the Secretary’s authority un-
der section 911(c)(2)(B)) of the amount in
effect under section 911(b)(2)(D) for the
calendar year in which the taxable year of
the individual begins, multiplied by (ii) the
number of days of that taxable year within
the applicable period described in section
911(d)(1). Thus, under this general limi-
tation, a qualified individual whose entire
taxable year is within the applicable period
is limited to maximum housing expenses
of $26,280 ($87,600 x .30) in 2008.
Section 911(c)(2)(B) of the Code au-
thorizes the Secretary to issue regulations
or other guidance to adjust the percentage
under section 911(c)(2)(A)(i) based on ge-
ographic differences in housing costs rela-
tive to housing costs in the United States.
Pursuant to this authority, the Internal
Revenue Service (IRS) and the Treasury
Department published Notice 2006–87,
2006–2 C.B. 766, and Notice 2007–25,
2007–12 I.R.B. 760, for 2006, and Notice
2007–77, 2007–40 I.R.B. 735, for 2007,
to provide adjustments to the limitation on
housing expenses for qualified individuals
incurring housing expenses in countries
with high housing costs relative to housing
costs in the United States.
SECTION 3. TABLE OF ADJUSTED
LIMITATIONS FOR 2008
The following table provides adjusted
limitations on housing expenses (in lieu
of the otherwise applicable limitation of
$26,280) for 2008.
CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
ArgentinaBuenos Aires
125.96
46,100
AustraliaBrisbane81.4229,800
AustraliaCanberra
76.50
28,000
AustraliaGold Coast81.4229,800
AustraliaMelbourne78.9628,900
AustraliaOakey81.4229,800
AustraliaPerth
118.8543,500
AustraliaToowoomba81.4229,800
AustriaVienna96.72
35,400
Bahamas, TheNassau
135.79
49,700
BahrainBahrain120.2244,000
BarbadosBarbados103.0137,700
BelgiumAntwerp116.6742,700
BelgiumBrussels
157.6557,700
BelgiumGosselies110.1140,300
2008–50 I.R.B.1265December 15, 2008

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
BelgiumHoogbuul116.6742,700
BelgiumMons110.1140,300
BelgiumSHAPE/Chievres110.1140,300
BermudaBermuda
245.90
90,000
Bosnia-HerzegovinaSarajevo89.8932,900
BrazilBrasilia121.3144,400
BrazilRio de Janeiro
95.9035,100
BrazilSao Paulo
127.0546,500
CanadaCalgary110.9340,600
CanadaDartmouth
95.6335,000
CanadaEdmonton100.8236,900
CanadaHalifax
95.6335,000
CanadaLondon, Ontario81.4229,800
CanadaMontreal
158.2057,900
CanadaOttawa130.8747,900
CanadaToronto129.78
47,500
CanadaVancouver
125.68
46,000
CanadaVictoria
95.08
34,800
CanadaWinnipeg
82.51
30,200
Cayman IslandsGrand Cayman
131.15
48,000
ChileSantiago124.32
45,500
ChinaBeijing
134.25
49,137
ChinaHong Kong312.30114,300
ChinaShanghai
155.7457,001
ColombiaBogota147.81
54,100
ColombiaAll cities other than Bogota and
Barranquilla.
122.6844,900
DenmarkCopenhagen119.4143,704
Dominican RepublicSanto Domingo124.32
45,500
EcuadorGuayaquil
84.15
30,800
EcuadorQuito83.33
30,500
EgyptCairo74.4327,240
EstoniaTallinn127.3246,600
FranceGarches
273.50
100,100
FranceLe Havre
114.75
42,000
FranceLyon
155.4656,900
FranceMarseille143.17
52,400
FranceMontpellier126.7846,400
FranceParis
273.50
100,100
December 15, 200812662008–50 I.R.B.

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
FranceSevres
273.50
100,100
FranceSuresnes
273.50
100,100
FranceVersailles
273.50
100,100
GermanyBabenhausen
134.15
49,100
GermanyBad Aibling114.4841,900
GermanyBad Nauheim107.1039,200
GermanyBaumholder121.8644,600
GermanyBerlin163.9360,000
GermanyBirkenfeld121.8644,600
GermanyBoeblingen
145.9053,400
GermanyButzbach104.9238,400
GermanyDarmstadt
134.15
49,100
GermanyErlangen84.9731,100
GermanyFrankfurt am Main139.89
51,200
GermanyFriedberg107.1039,200
GermanyFuerth84.9731,100
GermanyGarmisch-Partenkirchen
115.85
42,400
GermanyGeilenkirchen
92.35
33,800
GermanyGelnhausen
145.0853,100
GermanyGermersheim101.9137,300
GermanyGiebelstadt116.3942,600
GermanyGiessen104.9238,400
GermanyGrafenwoehr114.4841,900
GermanyHanau
145.0853,100
GermanyHannover100.0036,600
GermanyHeidelberg133.8849,000
GermanyIdar-Oberstein121.8644,600
GermanyIngolstadt169.4062,000
GermanyKaiserslautern, Landkreis149.18
54,600
GermanyKitzingen116.3942,600
GermanyLeimen133.8849,000
GermanyLudwigsburg
145.9053,400
GermanyMainz164.4860,200
GermanyMannheim133.8849,000
GermanyMunich169.4062,000
GermanyNellingen
145.9053,400
GermanyNeubruecke121.8644,600
GermanyNuernberg84.9731,100
GermanyOber Ramstadt
134.15
49,100
2008–50 I.R.B.1267December 15, 2008

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
GermanyOberammergau
115.85
42,400
GermanyPirmasens149.18
54,600
GermanyRheinau133.8849,000
GermanySchwabach84.9731,100
GermanySchwetzingen133.8849,000
GermanySeckenheim133.8849,000
GermanySembach149.18
54,600
GermanyStuttgart
145.9053,400
GermanyWertheim116.3942,600
GermanyWiesbaden164.4860,200
GermanyWuerzburg116.3942,600
GermanyZimdorf84.9731,100
GermanyZweibrueken149.18
54,600
GermanyAll cities other than Augsburg,
Babenhausen, Bad Aibling,
Bad Kreuznach, Bad Nauheim,
Baumholder, Berchtesgaden,
Berlin, Birkenfeld, Boeblingen,
Bonn, Bremen, Bremerhaven,
Butzbach, Cologne,
Darmstadt, Delmenhorst,
Duesseldorf, Erlangen,
Flensburg, Frankfurt am Main,
Friedberg, Fuerth, Garlstedt,
Garmisch-Partenkirchen,
Geilenkirchen, Gelnhausen,
Germersheim, Giebelstadt,
Giessen, Grafenwoehr, Grefrath,
Greven, Gruenstadt, Hamburg,
Hanau, Handorf, Hannover,
Heidelberg, Heilbronn,
Herongen, Idar-Oberstein,
Ingolstadt, Kaiserslautern,
Landkreis, Kalkar, Karlsruhe,
Kerpen, Kitzingen, Koblenz,
Leimen, Leipzig, Ludwigsburg,
Mainz, Mannheim, Mayen,
Moenchen-Gladbach, Muenster,
Munich, Nellingen, Neubruecke,
Noervenich, Nuernberg, Ober
Ramstadt, Oberammergau,
Osterholz-Scharmbeck,
Pirmasens, Rheinau, Rheinberg,
Schwabach, Schwetzingen,
Seckenheim, Sembach, Stuttgart,
Twisteden, Wahn, Wertheim,
Wiesbaden, Worms, Wuerzburg,
Zimdorf and Zweibrueken.
125.4145,900
December 15, 200812682008–50 I.R.B.

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
GreeceArgyroupolis104.6438,300
GreeceAthens107.92
39,500
GreeceElefsis107.92
39,500
GreeceEllinikon107.92
39,500
GreeceMt. Hortiatis104.6438,300
GreeceMt. Parnis107.92
39,500
GreeceMt. Pateras107.92
39,500
GreeceNea Makri107.92
39,500
GreecePerivolaki104.6438,300
GreecePiraeus107.92
39,500
GreeceSouda Bay (Crete)83.6130,600
GreeceTanagra107.92
39,500
GreeceThessaloniki104.6438,300
GuatemalaGuatemala City102.7337,600
Holy See, TheHoly See, The182.2466,700
HungaryBudapest88.80
32,500
IndiaMumbai
185.57
67,920
IndiaNew Delhi82.66
30,252
IndonesiaJakarta103.2137,776
IrelandDublin
158.2057,900
IrelandLimerick89.3432,700
IrelandShannon Area89.3432,700
ItalyCatania
106.56
39,000
ItalyGaeta
77.05
28,200
ItalyGenoa110.3840,400
ItalyGioia Tauro
85.25
31,200
ItalyLa Spezia110.3840,400
ItalyLeghorn114.2141,800
ItalyMilan272.1399,600
ItalyNaples
150.2755,000
ItalyPisa114.2141,800
ItalyPordenone-Aviano
125.68
46,000
ItalyRome182.2466,700
ItalySardinia93.4434,200
ItalySigonella
106.56
39,000
ItalyTurin136.0749,800
ItalyVerona86.8931,800
ItalyVicenza126.7846,400
2008–50 I.R.B.1269December 15, 2008

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
ItalyAll cities other than Avellino,
Brindisi, Catania, Florence,
Gaeta, Genoa, Gioia Tauro,
La Spezia, Leghorn, Milan,
Mount Vergine, Naples, Nettuno,
Pisa, Pordenone-Aviano, Rome,
Sardinia, Sigonella, Turin,
Verona, and Vicenza.
104.6438,300
JamaicaKingston
112.57
41,200
JapanAkashi86.07
31,500
JapanAkizuki
75.68
27,700
JapanAtsugi108.4739,700
JapanCamp Zama108.4739,700
JapanChiba-Ken108.4739,700
JapanFussa108.4739,700
JapanGifu79.7829,200
JapanGotemba81.9730,000
JapanHaneda108.4739,700
JapanKanagawa-Ken108.4739,700
JapanKomaki79.7829,200
JapanMachidi-Shi108.4739,700
JapanMisawa78.9628,900
JapanNagoya103.2437,786
JapanOkinawa Prefecture133.0648,700
JapanOsaka-Kobe144.91
53,036
JapanSagamihara108.4739,700
JapanSaitama-Ken108.4739,700
JapanSasebo81.4229,800
JapanTachikawa108.4739,700
JapanTokyo
257.38
94,200
JapanTokyo-to108.4739,700
JapanYokohama
138.2550,600
JapanYokosuka
118.58
43,400
JapanYokota108.4739,700
KazakhstanAlmaty
131.15
48,000
KoreaCamp Carroll
80.05
29,300
KoreaCamp Colbern178.69
65,400
KoreaCamp Market178.69
65,400
KoreaCamp Mercer178.69
65,400
KoreaChinhae82.7930,300
KoreaChunchon76.7828,100
December 15, 200812702008–50 I.R.B.

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
KoreaK–16178.69
65,400
KoreaKimhae
85.79
31,400
KoreaKimpo Airfield178.69
65,400
KoreaKwangju81.9730,000
KoreaMunsan
75.41
27,600
KoreaOsan AB93.1734,100
KoreaPusan
85.79
31,400
KoreaPyongtaek93.1734,100
KoreaSeoul178.69
65,400
KoreaSuwon178.69
65,400
KoreaTaegu100.0036,600
KoreaTongduchon
75.41
27,600
KoreaUijongbu
106.56
39,000
KoreaWaegwan
80.05
29,300
KoreaAll cities other than Ammo
Depot #9, Camp Carroll, Camp
Colbern, Camp Market, Camp
Mercer, Changwon, Chinhae,
Chunchon, K–16, Kimhae,
Kimpo Airfield, Kunsun,
Kwangju, Munsan, Osan AB,
Pusan, Pyongtaek, Seoul, Suwon,
Taegu, Tongduchon, Uijongbu,
and Waegwan.
87.1631,900
KuwaitKuwait City177.87
65,100
KuwaitAll cities other than Kuwait City.
159.2958,300
LuxembourgLuxembourg
149.4554,700
MacedoniaSkopje96.72
35,400
MalaysiaKuala Lumpur138.80
50,800
MalaysiaAll cities other than Kuala
Lumpur.
92.0833,700
MaltaMalta
122.9545,000
MexicoHermosillo98.3636,000
MexicoMazatlan
88.52
32,400
MexicoMerida
103.55
37,900
MexicoMexico City
125.4145,900
MexicoMonterrey117.2142,900
2008–50 I.R.B.1271December 15, 2008

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
MexicoAll cities other than Ciudad
Juarez, Cuernavaca, Guadalajara,
Hermosillo, Matamoros,
Mazatlan, Merida, Metapa,
Mexico City, Monterrey,
Nogales, Nuevo Laredo,
Tapachula, Tijuana, Tuxtla
Gutierrez, and Veracruz.
107.65
39,400
MicronesiaPohnpei
75.1427,500
NetherlandsAmsterdam
144.5452,900
NetherlandsAruba98.3636,000
NetherlandsBrunssum103.2837,800
NetherlandsEygelshoven103.2837,800
NetherlandsHague, The187.16
68,500
NetherlandsHeerlen103.2837,800
NetherlandsHoensbroek103.2837,800
NetherlandsHulsberg103.2837,800
NetherlandsKerkrade103.2837,800
NetherlandsLandgraaf103.2837,800
NetherlandsMaastricht103.2837,800
NetherlandsPapendrecht130.8747,900
NetherlandsRotterdam130.8747,900
NetherlandsSchaesburg103.2837,800
NetherlandsSchinnen103.2837,800
NetherlandsSchiphol
144.5452,900
NetherlandsYpenburg187.16
68,500
NetherlandsAll cities other than Amsterdam,
Aruba, Brunssum, Coevorden,
Eygelshoven, The Hague,
Heerlen, Hoensbroek, Hulsberg,
Kerkrade, Landgraaf, Maastricht,
Margraten, Papendrecht,
Rotterdam, Schaesburg,
Schinnen, Schiphol, and
Ypenburg.
95.6335,000
Netherlands AntillesCuracao101.9137,300
New ZealandAuckland
97.5435,700
New ZealandWellington
92.35
33,800
NicaraguaManagua86.8931,800
NorwayOslo
159.2958,300
NorwayStavanger108.2039,600
NorwayAll cities other than Oslo and
Stavanger.
103.0137,700
PanamaPanama City96.99
35,500
December 15, 200812722008–50 I.R.B.

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
PeruLima
74.59
27,300
PhillippinesCavite98.3636,000
PhillippinesManila98.3636,000
PhillippinesAll cities other than Cavite and
Manila.
76.2327,900
PolandPoland80.3329,400
PortugalAlverca166.6761,000
PortugalLajes Field82.2430,100
PortugalLisbon166.6761,000
QatarDoha99.0836,264
QatarAll cities other than Doha.
88.52
32,400
RussiaMoscow248.3690,900
RussiaSaint Petersburg119.6743,800
RussiaSakhalin Island
211.7577,500
RussiaVladivostok
211.7577,500
RussiaYekaterinburg
129.51
47,400
RwandaKigali86.07
31,500
Saudi ArabiaJeddah83.7930,667
Saudi ArabiaRiyadh87.4332,000
SingaporeSingapore176.23
64,500
South AfricaPretoria109.8440,200
SpainBarcelona110.9340,600
SpainMadrid
123.5045,200
SpainRota106.0138,800
SpainValencia127.6046,700
SpainAll cities other than Barcelona,
Madrid, Rota and Valencia.
76.2327,900
SwitzerlandBern162.30
59,400
SwitzerlandGeneva229.7884,100
SwitzerlandZurich107.1639,219
SwitzerlandAll cities other than Bern,
Geneva, and Zurich.
89.8932,900
TaiwanTaipei126.2046,188
ThailandBangkok139.62
51,100
TurkeyAnkara88.80
32,500
TurkeyElmadag88.80
32,500
TurkeyIzmir-Cigli86.3431,600
TurkeyManzarali88.80
32,500
TurkeyYamanlar86.3431,600
UkraineKiev196.7272,000
2008–50 I.R.B.1273December 15, 2008

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
United Arab EmiratesAbu Dhabi
135.76
49,687
United Arab EmiratesDubai
156.2157,174
United KingdomBasingstoke112.2941,099
United KingdomBath112.0241,000
United KingdomBracknell169.6762,100
United KingdomBristol
105.74
38,700
United KingdomCambridge117.4943,000
United KingdomCaversham201.6473,800
United KingdomCheltenham127.8746,800
United KingdomChicksands72.40
26,500
United KingdomCroughton117.7643,100
United KingdomFairford112.0241,000
United KingdomFarnborough
149.4554,700
United KingdomFelixstowe
122.9545,000
United KingdomGibraltar121.9044,616
United KingdomHarrogate126.7846,400
United KingdomHigh Wycombe169.6762,100
United KingdomKemble112.0241,000
United KingdomLakenheath
150.5555,100
United KingdomLiverpool106.0138,800
United KingdomLondon
226.50
82,900
United KingdomLoudwater
173.5063,500
United KingdomMenwith Hill126.7846,400
United KingdomMildenhall
150.5555,100
United KingdomOxfordshire117.7643,100
United KingdomPlymouth117.7643,100
United KingdomPortsmouth117.7643,100
United KingdomReading169.6762,100
United KingdomRochester109.0239,900
United KingdomSouthampton120.7744,200
United KingdomSurrey
132.25
48,402
United KingdomWaterbeach
119.95
43,900
United KingdomWest Byfleet72.1326,400
United KingdomWiltshire113.6641,600
December 15, 200812742008–50 I.R.B.

CountryLocation
Limitation on Housing
Expenses (daily)
LimitationonHousing
Expenses (full year)
United KingdomAll cities other than Basingstoke,
Bath,Belfast,Birmingham,
Bracknell, Bristol, Brough,
Bude, Cambridge, Caversham,
Chelmsford, Cheltenham,
Chicksands, Croughton,
Dunstable, Edinburgh,
Edzell, Fairford, Farnborough,
Felixstowe, Ft. Halstead,
Gibraltar, Glenrothes, Greenham
Common,Harrogate,High
Wycombe, Hythe, Kemble,
Lakenheath, Liverpool, London,
Loudwater, Menwith Hill,
Mildenhall, Nottingham,
Oxfordshire, Plymouth,
Portsmouth, Reading,
Rochester, Southampton,
Surrey, Waterbeach, Welford,
West Byfleet, and Wiltshire.
113.9341,700
VenezuelaCaracas
155.7457,000
VietnamHanoi128.2246,800
VietnamHo Chi Minh City
115.07
42,000
EFFECTIVE DATE
This notice is effective for taxable years
beginning on or after January 1, 2008.
DRAFTING INFORMATION
The principal author of this notice is
Paul J. Carlino of the Office of Associate
Chief Counsel (International). For further
information regarding this notice, contact
Mr. Carlino at (202) 622–3840 (not a toll-
free call).
2008 Cumulative List of
Changes in Plan Qualification
Requirements
Notice 2008–108
I. PURPOSE
This notice contains the 2008 Cumu-
lative List of Changes in Plan Qualifi-
cation Requirements (2008 Cumulative
List) described in section 4 of Rev. Proc.
2007–44, 2007–28 I.R.B. 54. The 2008
Cumulative List is to be used primarily
by plan sponsors of individually designed
plans that are in Cycle D. An individually
designed plan is in Cycle D if it is a single
employer plan where the last digit of the
employer identification number of the plan
sponsor is 4 or 9, or it is a multiemployer
plan under § 414(f).
ThelistofchangesinsectionVIof
this notice does not extend the deadline by
which a plan must be amended to com-
ply with any statutory, regulatory, or guid-
ance changes. The general deadline for
timely adoption of an interim or discre-
tionary amendment can be found in section
5.05 of Rev. Proc. 2007–44.
II. BACKGROUND
Rev. Proc. 2007–44 sets forth pro-
cedures for issuing opinion, advisory,
and determination letters and describes
the five-year remedial amendment cycle
for individually designed plans and the
six-year remedial amendment cycle for
pre-approved plans. In addition, section
5.05 of Rev. Proc. 2007–44 provides the
deadline for timely adoption of an interim
amendment or discretionary amendment.
Under section 4 of Rev. Proc. 2007–44,
the Internal Revenue Service intends to
annually publish a Cumulative List to
identify statutory, regulatory and guidance
changes that must be taken into account
in submissions by plan sponsors to the
Service for opinion, advisory and deter-
mination letters whose submission period
begins on February 1st following issuance
of the Cumulative List.
In Notice 2007–94, 2007–51 I.R.B.
1179, the Service published the 2007
Cumulative List of Changes in Plan Qual-
ification Requirements (2007 Cumulative
List).
1
III. APPLICATION OF 2008
CUMULATIVE LIST
This notice is being issued for purposes
of the determination letter program for
plans submitted for determination letters
during the Cycle D submission period. In
Rev. Proc. 2005–66, 2005–2 C.B. 509,
the Service announced the opening of
the initial five-year remedial amendment
cycle. In accordance with Rev. Proc.
2007–44, the Servicewill start accepting
determination letter applications for Cycle
1
See Notice 2007–3, 2007–1 C.B. 255, Notice 2005–101, 2005–2 C.B. 1219, and Notice 2004–84, 2004–2 C.B. 1030, for the 2006, 2005, and 2004 Cumulative Lists respectively.
2008–50 I.R.B.1275December 15, 2008

D plans beginning on February 1, 2009.
The 12-month submission period for Cy-
cle D plans will end January 31, 2010.
The 2008 Cumulative List, set forth
in section VI of this notice, informs
plan sponsors of issues the Service has
specifically identified for review in de-
termining whether a plan filing in Cycle
D has been properly updated. Specifi-
cally, the 2008 Cumulative List reflects
law changes under the Economic Growth
and Tax Relief Reconciliation Act of
2001 (EGTRRA), Pub. L. 107–16 (with
technical corrections made by the Job
Creation and Worker Assistance Act of
2002 (JCWAA)), Pub. L. 104–147, the
Pension Funding Equity Act of 2004
(PFEA), Pub.L. 108–218, the
American Jobs Creation Act of 2004
(AJCA), Pub. L. 108–357, the Katrina
Emergency Tax Relief Act of 2005
(KETRA), Pub. L. 109–73, the Gulf
Opportunity Zone Act of 2005 (GOZA),
Pub. L. 109–135, the Pension Protection
Act of 2006 (PPA ’06), Pub. L. 109–280,
and the U.S. Troop Readiness, Veterans’
Care, Katrina Recovery, and Iraq
Accountability Appropriations Act, 2007,
Pub. L. 110–28.
The Service will not consider in its re-
view of any determination letter applica-
tion, for the submission period that begins
February 1, 2009, any:
(1) guidance issued after October 1,
2008;
(2) statutes enacted after October 1,
2008;
(3) qualification requirements first ef-
fective in 2010 or later; or
(4) statutory provisions that are first ef-
fective in 2009, for which there is no guid-
ance identified in this notice.
The 2008 Cumulative List does not in-
clude any items described in (1) through
(4) above. However, in order to be quali-
fied, a plan must comply with all relevant
qualification requirements, not just those
on the 2008 Cumulative List.
Terminating plans must include all law
changes in effect at the time of termination.
See section 8 of Rev. Proc. 2007–44 re-
garding plan termination.
IV. SPECIAL RULES FOR THE
PENSION PROTECTION ACT OF 2006
Under section 1107 of the PPA ’06,
a plan amendment made pursuant to any
amendment made by PPA ’06 generally
may be retroactively effective, if, in ad-
dition to meeting the other applicable re-
quirements, the amendment is made on or
before the last day of the first plan year be-
ginningonorafterJanuary1,2009(Jan-
uary 1, 2011 in the case of a governmental
plan).
The PPA ’06 provisions formerly ap-
peared separately from the Cumulative
List of Changes in Plan Qualification Re-
quirements section of the 2006 and 2007
Cumulative Lists. The PPA ’06 provisions
are now included in the Cumulative List
of Changes in Plan Qualification Require-
ments(whichissectionVIofthisnotice)
and are identified as “(New).”
Plans submitted in Cycle D must be
amended to include the applicable PPA ’06
provisions listed in section VI of this no-
tice. Thus, all plans submitted in Cycle D
will receive a determination letter which
covers PPA ’06, even if the deadline for
amending under section 1107 of PPA ’06
is after January 31, 2010.
As an alternative to submitting a plan
inCycleD,aplansponsorofaCycleD
plan whose first plan year beginning on or
after January 1, 2009 ends on or after Feb-
ruary 1, 2010, may defer submission of its
plan until Cycle E (February 1, 2010 – Jan-
uary 31, 2011). In order to defer submis-
sion of such a plan until Cycle E, an appli-
cation must be timely filed in Cycle E. In
such a case, the plan will be treated as hav-
ing been filed within the plan’s EGTRRA
remedial amendment period and will be re-
viewed on the basis of the 2009 Cumula-
tive List. However, such a plan will be
treated as a Cycle E plan solely for this ini-
tial cycle, and all subsequent submissions
will be made in Cycle D.
V. SPECIAL RULES FOR THE
HEROES EARNINGS ASSISTANCE
AND RELIEF TAX ACT OF 2008
Under sections 104(d)(2) and 105(c)
of the Heroes Earnings Assistance and
Relief Tax Act of 2008 (HEART Act),
Pub. L. 110–245, a plan amendment made
pursuant to sections 104(a) or 105(b)(1)
of the HEART Act generally may be
retroactively effective, if, in addition to
meeting the other applicable requirements,
the amendment is made on or before the
last day of the first plan year beginning on
or after January 1, 2010 (January 1, 2012
in the case of a governmental plan).
Plans submitted in Cycle D can be
amended, at the option of plan sponsors,
to include the applicable HEART Act pro-
visions listed in section VII of this notice.
However, the Service will not consider
the HEART Act in issuing determination
letters for Cycle D plans, and such letters
cannot be relied on with respect to the
requirements of the HEART Act.
Section 107(a) of the HEART Act
extends the applicability of the quali-
fied reservist distribution to individuals
ordered or called to duty after Decem-
ber 31, 2007. The Service is treating an
amendment made pursuant to section 107
of the HEART Act as if it was included
in the amendments described in section
1107 of PPA ’06. See section VI of this
notice, # 11, footnote 4, with respect to
§ 401(k)(2)(B)(i)(V) qualified reservist
distributions.
VI. 2008 CUMULATIVE LIST OF
CHANGES IN PLAN QUALIFICATION
REQUIREMENTS
The following list consists of statutory
provisions and associated guidance which
reflect changes to plan qualification re-
quirements. Miscellaneous guidance is
also provided. The Service has identi-
fied below plan qualification requirements
which were not on the 2007 or earlier Cu-
mulative Lists as “(New)”. Thus, the 2008
Cumulative List contains those plan qual-
ification requirements listed in the 2004,
2005, 2006, and 2007 Cumulative Lists as
well as additional 2008 plan qualification
requirements.
1.72(p): Section 1.72(p)–1 of the In-
come Tax Regulations relating to
plan loans was published on Decem-
ber 3, 2002 (67 Fed. Reg. 71821).
(2004 C. L.).
2.401(a):
•Final Regulations under § 401(a)
of the Code regarding permissible
normal retirement ages were pub-
lished May 22, 2007 (72 Fed. Reg.
28604). (2006 C. L.).
•Notice 2007–69, 2007–35
I.R.B. 468, provides tempo-
rary relief, for certain pension
December 15, 200812762008–50 I.R.B.

plans under which the defini-
tion of normal retirement age
may be required to be changed
to comply with the regula-
tions, but only until the first
day of the first plan year that
begins after June 30, 2008.
Accordingly, the final regu-
lations will be taken into ac-
count in the Service’s review
of plans submitted for deter-
mination letters during the
Cycle D submission period.
(2007 C. L.).
•Rev. Rul. 2008–40, 2008–30
I.R.B. 166, provides that the trans-
fer of amounts from a trust un-
der a plan qualified under § 401(a)
to a nonqualified foreign trust is
treated as a distribution from the
transferor plan and that transfer of
assets and liabilities from a qual-
ified plan to a plan that satisfies
§ 1165 of the Puerto Rico Code is
also treated as a distribution from
the transferor plan. (New).
•Rev. Rul. 2008–45, 2008–34
I.R.B. 403, provides that the ex-
clusive benefit rule of § 401(a)
is violated if the sponsorship of a
qualified retirement plan is trans-
ferred from an employer to an un-
related taxpayer and the transfer is
not in connection with a transfer of
business assets or operations from
the employer to the unrelated tax-
payer. (New).
3.401(a)(4):
•Amendments to § 1.401(a)(4)–8
of the Regulations relating to new
comparability plans were pub-
lished on June 29, 2001 (66 Fed.
Reg. 34535). (2004 C. L.).
•Rev. Rul. 2001–30, 2001–2 C.B.
46. (2004 C. L.).
•Amendments to § 1.401(a)(4)–9
of the Regulations relating to new
comparability plans were pub-
lished on June 29, 2001 (66 Fed.
Reg. 34535). (2005 C. L.).
•Rev. Rul. 2004–21, 2004–1 C.B.
544. (2005 C. L.).
4.401(a)(5): Section 401(a)(5)(G) of
the Code was amended by PPA ’06
§ 861(a)(1) with respect to govern-
mental plans. (New).
5.401(a)(9):
•Sections 1.401(a)(9)–1 through
–9 of the Regulations were pub-
lished on April 17, 2002 and
June 15, 2004 (67 Fed. Reg.
18988 and 69 Fed. Reg. 33288).
(2004 C. L.).
2
6.401(a)(17): Section 401(a)(17) of the
Code was amended by § 611(c) of
EGTRRA to increase the compensa-
tion limit to $200,000. (2004 C. L.).
•Notice 2001–56, 2001–2 C.B.
277. (2004 C. L.).
7.401(a)(26): Section 401(a)(26)(G) of
the Code was amended by PPA ’06
§ 861(a)(1) with respect to govern-
mental plans. (New).
8.401(a)(31):
•Section 401(a)(31) was amended
by§643(b)ofEGTRRAtoallow
employees’ after-tax contribu-
tions to be rolled over under cer-
tain circumstances. (2004 C. L.).
•Section 401(a)(31)(B) was
amended by § 657(a) of EGTRRA
(asamendedby§411(t)of
JCWAA) to provide for the auto-
matic rollover of certain manda-
tory distributions. The effec-
tive date is March 28, 2005.
(2004 C. L.).
•Notice 2005–5, 2005–1 C.B.
337. (2004 C. L.).
•Sections 641, 642 and 643
of EGTRRA (as amended by
§411(q)ofJCWAA)amended
the definition of eligible retire-
ment plan in § 402 of the Code to
include a § 403(b) annuity con-
tract and eligible governmental
§ 457(b) plan. (2004 C. L.).
•Section 636(b) of EGTRRA mod-
ified the definition of eligible
rollover distribution to exclude
hardship distributions. (2004
C. L.).
9.401(a)(35): PPA ’06 § 901(a)(1)
added § 401(a)(35) requiring that
defined contribution plans provide
employees with the freedom to divest
publicly traded securities.
3
(New).
•Notice 2006–107, 2006–2 C.B.
1114. (New).
•Notice 2008–7, 2008–3 I.R.B.
276, extends certain transitional
guidance and transitional relief
provided to certain defined con-
tribution plans holding publicly
traded employer securities under
Notice 2006–107. (New).
10.401(a)(36): PPA’06§905(b)added
§ 401(a)(36) regarding distributions to
a participant who has attained age 62
and who has not separated from em-
ployment at the time of the distribu-
tion. (New).
11.401(k) & 401(m):
•Section401(k)(2)and
§ 401(k)(10) of the Code were
amended by § 646(a)(1) of
EGTRRA to permit distribu-
tions of elective deferrals from
a § 401(k) plan upon severance
from employment. (2004 C. L.).
•Notice 2002–4, 2002–1 C.B.
298. (2004 C. L.).
•Section 636(a) of EGTRRA di-
rected the Secretary of the Trea-
sury to revise the regulations relat-
ing to safe harbor hardship distri-
butions of elective deferrals from
§ 401(k) plans so that the time the
employee is prohibited from mak-
ing elective and employee contri-
butions is reduced from one year
to six months after a hardship dis-
tribution. (2004 C. L.).
•Notice 2001–56. (2004 C. L.).
•Notice 2002–4. (2004 C. L.).
•Section 401(k)(11) of the Code
wasamendedby§611(f)of
EGTRRA to increase the maxi-
mum amount of qualified salary
reduction contributions that can
be made to SIMPLE 401(k) plans.
(2004 C. L.).
•Section402(g)oftheCodewas
amended by § 611(d) of EGTRRA
2
Proposed regulations under § 401(a)(9) were published July 10, 2008 (73 Fed. Reg. 39630), which permit a governmental plan to comply with the requiredminimum distribution rules of
§ 401(a)(9) by using a reasonable and goodfaith interpretation of the statute.
3
Proposed regulations under § 401(a)(35) were published January 3, 2008 (73 Fed. Reg. 421) and may be relied upon until final regulations are issued.
2008–50 I.R.B.1277December 15, 2008

to increase the applicable dollar
amount. (2004 C. L.).
•Section 401(m)(9) of the Code
was amended by § 666 of
EGTRRA to eliminate the multi-
ple use test. (2004 C. L.).
•Final Regulations under § 401(k)
and§401(m)oftheCode
were published on Decem-
ber 29, 2004 (69 Fed. Reg.
78144). (2004 C. L.).
•Announcement 2007–59, 2007–1
C.B. 1448, provides that a plan
will not fail to satisfy the require-
ments of a § 401(k) safe har-
bor plan because of a mid-year
change to implement a designated
Roth contribution program. (2007
C. L.).
•PPA ’06 § 826 modified the rules
relating to distributions from a
§ 401(k) plan on account of a par-
ticipant’s hardship to permit the
plan to treat a participant’s bene-
ficiary under the plan the same as
the participant’s spouse or depen-
dent. (New).
•Notice 2007–7, 2007–1 C.B.
395, provides guidance re-
garding PPA ’06 § 826.
(New).
•Announcement2007–59,
2007–1 C.B. 1448, provides
that a plan will not fail to
satisfy the requirements of a
§ 401(k) safe harbor plan be-
cause of a mid-year change to
implement the PPA ’06 § 826
hardship withdrawals. (New).
•PPA ’06 § 827 added
§ 401(k)(2)(B)(i)(V) which per-
mits reservists called to active
duty after September 11, 2001
and before 2008 to take in-service
distributions from a § 401(k)
plan.
4
(New).
•PPA ’06 § 861(a)(2) amended
§ 401(k)(3)(G) with respect to
governmental plans. (New).
•PPA ’06 § 902(e)(3) eliminates the
gap period income rule for excess
contributions in § 401(k)(8)(A)(i).
(New).
•PPA’06§902added§401(k)(13)
with respect to qualified auto-
matic contribution arrangements.
5
(New).
•PPA ’06 § 902(e)(3) eliminates
the gap period income rule for
excess aggregate contributions in
§ 401(m)(6)(A). (New).
•PPA ’06 § 902 added § 401(m)(12)
with respect to qualified auto-
matic contribution arrangements.
6
(New).
12.402(c)(2)(A): PPA ’06 § 822(a)
amended § 402(c)(2)(A) to permit
nontaxable distributions from a qual-
ified plan to be directly rolled over
tax-free to either another qualified
plan or a § 403(b) plan if the sepa-
rate accounting requirements are met.
(New).
13.402(c)(11): PPA ’06 § 829(a)(1)
added § 402(c)(11) to allow non-
spouse beneficiaries to directly roll
over distributions from a qualified
plan to an individual retirement plan.
(New).
•Notice 2007–7, 2007–1 C.B.
395, provides guidance regarding
§ 402(c)(11). (New).
14.402(f): PPA ’06 § 1102(a) provides
that notice required to be provided un-
der § 402(f) may be provided as much
as 180 days before the annuity starting
date. (New).
•Notice 2007–7, 2007–1 C.B.
395, provides guidance regarding
PPA ’06 § 1102. (New).
15.402A: Section 402A of the Code was
addedby§617ofEGTRRAtooffer
optional treatment of elective defer-
rals as designated Roth contributions
to defined contribution plans, effec-
tive for taxable years beginning after
December 31, 2005. (2004 C. L.).
•Final Regulations under § 401(k)
and§401(m)oftheCoderelating
to designated Roth contributions
were published on January 3, 2006
(71 Fed. Reg. 6). (2005 C. L.).
•Notice 2006–44, 2006–1
C.B. 889, provides a sample
amendment for Roth § 401(k)
plans. (2006 C. L.).
•Final Regulations under § 402A
of the Code were published on
April 30, 2007 (72 Fed. Reg.
21103). (2006 C. L.).
16.404:
•Section 404(k)(2)(A) of the
Code was amended by § 662(a)
of EGTRRA (as amended by
§411(w)ofJCWAA)toallow
ESOP dividends to be reinvested
without the loss of dividend de-
ductions. (2005 C. L.).
•Notice 2002–2, 2002–1 C.B.
285, provides guidance with
respect to the changes made to
§ 404(k) of the Code and on
theeffectivedateof§409(p)
of the Code. (2005 C. L.).
17.408(q): Section 408(q) of the Code
was added by § 602 of EGTRRA (as
amended by § 411(i) of JCWAA) to al-
low for deemed individual retirement
accounts (IRAs) in an eligible retire-
ment plan. (2004 C. L.).
•Section 1.408(q)–1 of the Reg-
ulations was published on
July 22, 2004 (69 Fed. Reg.
43735). (2004 C. L.).
18.408A(e): PPA ’06 § 824 added
§ 408A(e) which permits rollovers to
Roth IRAs from accounts that are not
designated Roth accounts that are part
of qualified plans, § 403(b) plans, and
§ 457 plans. (New).
•Notice 2008–30, 2008–12 I.R.B.
638, provides guidance regarding
PPA ’06 § 824. (New).
19.409: Section 409(p) of the Code
was added by § 656 of EGTRRA
relating to restrictions on the allo-
cation of employer securities in an
4
Section 107(a) of the HEART Act extends the applicability of the qualified reservist distribution to individuals ordered or called to active duty after December 31, 2007.
5
Proposed regulations under § 401(k) with respect to qualified automatic contribution arrangements were published November 8, 2007 (72 Fed. Reg. 63144) and may be relied upon until
final regulations are issued.
6
Proposed regulations under § 401(m) with respect toqualified automatic contribution arrangements were published November 8, 2007 (72 Fed. Reg. 63144) and may be relied upon until
final regulations are issued.
December 15, 200812782008–50 I.R.B.

ESOP maintained by an S corpora-
tion. (2005 C. L.).
•Section 1.409(p)–1T of the
Regulations was published on
July 21, 2003 (68 Fed. Reg.
42970). (2005 C. L.).
•Section 1.409(p)–1T of the Reg-
ulations was published on De-
cember 17, 2004 (69 Fed. Reg.
75455). (2005 C. L.).
•Rev. Proc. 2003–23, 2003–1
C.B. 599, as modified and super-
seded by Rev. Proc. 2004–14,
2004–1 C.B. 489, allows a di-
rect rollover from an ESOP main-
tained by an S corporation to an
individual retirement plan (IRA).
(2005 C. L.).
•Rev. Rul. 2003–6, 2003–1 C.B.
286, provides guidance with re-
spect to whether an ESOP main-
tained by an S corporation is
eligible for the delayed effective
date of § 409(p) under § 656(d)(2)
ofEGTRRA.(2005C.L.).
•Rev. Rul. 2004–4, 2004–1 C.B.
414, provides guidance relating to
synthetic equity owned by a dis-
qualified person in a nonallocation
year of an ESOP maintained by an
S corporation. (2005 C. L.).
•Final Regulations were published
on December 20, 2006 (71 Fed.
Reg. 76134) that provide guid-
ance concerning requirements un-
der § 409(p) for ESOPs holding
stock of S corporations. (2006
C. L.).
20.410(b): Final Regulations were pub-
lished on July 21, 2006 (71 Fed. Reg.
41357) permitting some employees
of tax-exempt organizations to be ex-
cluded when determining whether a
§ 401(k) plan meets the § 410(b) min-
imum coverage requirements. (2006
C. L.).
21.411(a):
•Section411(a)oftheCodewas
amended by § 633 of EGTRRA
(as amended by § 411(o) of
JCWAA) to provide for faster
vesting of matching contributions.
(2004 C. L.).
•Rev. Rul. 2003–65, 2003–1 C.B.
1035. (2005 C. L.).
•Amendmentsto§1.411(d)–3of
the Final Regulations were pub-
lished on August 9, 2006 (71 Fed.
Reg. 45379) with respect to the
interaction between the anti-cut-
back rules of § 411(d)(6) and the
nonforfeitability requirements of
§ 411(a). (2006 C. L.).
•Section411(a)oftheCodewas
amendedby§904ofPPA’06to
provide for faster vesting of em-
ployer nonelective contributions.
(New).
•Notice 2007–7, 2007–1 C.B.
395, provides guidance re-
garding § 411(a), as amended
by § 904 of PPA ’06. (New).
22.411(a)(11): Section 411(a)(11)(D) of
the Code was added by § 648(a) of
EGTRRA (as amended by § 411(r)
of JCWAA) to allow amounts attrib-
utable to rollover contributions to be
disregarded in determining the value
of an account balance for involuntary
distributions. (2004 C. L.).
•PPA ’06 § 1102(a) provides that
notice required to be provided
under § 411(a)(11) may be pro-
vided as much as 180 days before
the annuity starting date. Section
1102(b) of PPA ’06 provides that
the notice under § 411(a)(11) also
include a description of the conse-
quences of failing to defer receipt
of a distribution. (New).
•Notice 2007–7, 2007–1 C.B.
395, provides guidance re-
gardingPPA’06§1102.
(New).
23.411(a)(13): PPA ’06 § 701(b)(2)
added § 411(a)(13) with respect to
special vesting rules for applicable
defined benefit plans, such as cash
balance plans.
7
(New).
•Notice 2007–6, 2007–1 C.B. 272,
provides guidance regarding cash
balance plans and other hybrid de-
fined benefit plans. (New).
24.411(b)(1):
•Rev. Rul. 2008–7, 2008–7 I.R.B.
419, addresses (1) the application
of the backloading provisions of
§ 411(b)(1)(A), (B), and (C) to de-
fined benefit cash balance plans
and (2) the use of a “greater of”
formula in the instance of a con-
version of a defined benefit pen-
sion plan to a cash balance plan,
including limited § 7805(b) relief.
(New).
25.411(b)(5): PPA ’06 § 701(b)(1) added
§ 411(b)(5) with respect to applica-
ble defined benefit plans, such as cash
balance plans, and special rules relat-
ingtoage.
8
(New).
•Notice 2007–6, 2007–1 C.B. 272,
provides guidanceregarding cash
balance plans and other hybrid de-
fined benefit plans. (New).
26.411(d)(3):
•Rev. Rul. 2007–43, 2007–28
I.R.B. 45, provides guidance re-
garding the partial termination of
a defined contribution plan. (2007
C. L.).
27.411(d)(6):
•Central Laborers’ Pension Fund v.
Heinz, 124 S. Ct. 2230 (2004).
(2005 C. L.).
•Rev. Proc. 2005–23, 2005–1
C.B. 991, as modified by Rev.
Proc. 2005–76, 2005–2 C.B.
1139. (2005 C. L.).
•Amendments to § 1.411(d)–3
of the Final Regulations were
published on August 9, 2006
(71 Fed. Reg. 45379) with
respect to the interaction be-
tween the anti-cutback rules
of § 411(d)(6) and the non-
forfeitability requirements of
§ 411(a). (2006 C. L.).
•Section 645(b)(3) of EGTRRA
directed the Secretary of the Trea-
sury to issue regulations under
§ 411(d)(6)(B). (2005 C. L.).
•Section 1.411(d)–3 of the Reg-
ulations was published on Au-
7
Proposed regulations under § 411(a)(13) were published December 28, 2007 (72 Fed. Reg. 73680) and may be relied upon until final regulations are issued.
8
Proposed regulationsunder § 411(b)(5) were published December 28, 2007 (72 Fed. Reg. 73680) and may be relied upon until final regulations are issued.
2008–50 I.R.B.1279December 15, 2008

gust 12, 2005 (70 Fed. Reg.
47109). (2005 C. L.).
•Amendments to § 1.411(d)–3
of the Final Regulations were
published on August 9, 2006
(71 Fed. Reg. 45379) with
respect to a utilization test.
(2006 C. L.).
•Section411(d)(6)(D) and
§ 411(d)(6)(E) of the Code were
added by § 645 of EGTRRA to
permit the elimination of certain
optional forms of benefit under
certain conditions. (2005 C. L.).
•Section1.411(d)–4,
Q&A–2(e) of the Regu-
lations was published on
January 25, 2005 (70 Fed.
Reg. 3475) to implement
§ 411(d)(6)(E). (2005 C. L.).
28.412:
•Rev. Rul. 2004–20, 2004–1 C.B.
546, provides guidance with re-
spect to whether a qualified pen-
sion plan can be a § 412(i) plan
if the plan holds life insurance
contracts and annuity contracts for
benefits at normal retirement age
in excess of a participant’s bene-
fits at normal retirement age under
the plan. (2005 C. L.).
•Notice 2004–59, 2004–2 C.B.
447, provides guidance with re-
spect to restrictions placed on
plan amendments following an
employer’s election of an alterna-
tive deficit reduction contribution.
(2005 C. L.).
29.414(d): PPA ’06 § 906(a)(1) added
language to the definition of govern-
mental plan in § 414(d) with respect
to Indian tribal governments. (New).
•Notice 2006–89, 2006–2 C.B.
772, provides transition relief for
plans subject to PPA ’06 § 906.
(New).
•Notice 2007–67, 2007–2 C.B.
467, extends the transition re-
lief provided in Notice 2006–89.
(New).
30.414(f)(6): PPA ’06 § 1106(b) added
§ 414(f)(6) with respect to a mul-
tiemployer status election. Sec-
tion 6611(a)(2) and (b)(2) of the
U.S. Troop Readiness, Veterans’
Care, Katrina Recovery, and Iraq
Accountability Appropriations Act,
2007 amends § 414(f)(6). (New).
31.414(v): Section 414(v) of the Code
was added by § 631 of EGTRRA (as
amendedby§411(o)ofJCWAA)
to allow for catch-up contributions
for individuals age 50 or older.
(2004 C. L.).
•Regulations under § 414(v) were
published on July 8, 2003 (68 Fed.
Reg. 40510). (2004 C. L.).
•Notice 2002–4. (2004 C. L.).
32.414(w): PPA ’06 § 902(d)(1) added
§ 414(w) with respect to eligible au-
tomatic contribution arrangements.
9
(New).
33.415:
•Section 415(c) of the Code was
amendedby§§611(b)and632
of EGTRRA (as amended by
§411(p)ofJCWAA)toin-
crease the maximum annual ad-
ditions permitted to the lesser of
$40,000 or 100% of compensa-
tion. (2004 C. L.).
•Rev. Rul. 2001–51, 2001–2
C.B. 427. (2004 C. L.).
•Rev. Rul. 2002–27, 2002–1
C.B. 925, provided that “com-
pensation” within the meaning
of § 415(c) could in certain sit-
uations include “deemed § 125
compensation”. (2004 C. L.).
•Section 415(b) of the Code was
amendedby§611ofEGTRRA
to increase the dollar limit
and change the age when the
limit is reduced or increased.
(2005 C. L.).
•Rev. Rul. 2001–51, 2001–2
C.B. 427. (2004 C. L.).
•Section 415(b)(2)(E)(ii) of the
Code was amended by § 101(b)(4)
of PFEA to fix the percentage at
5.5%. (2005 C. L.).
•Notice 2004–78, 2004–2 C.B.
879, provides the actuarial as-
sumptions that must be used
for distributions with annuity
starting dates occurring during
the plans years beginning in
2004 and 2005. (2005 C. L.).
•Final Regulations under § 415
with respect to pre-PPA ’06 law
were published April 5, 2007
(72 Fed. Reg. 16878). (2006
C. L.).
•Section 415(b)(2)(E)(ii) of the
Code was amended by § 303 of
PPA ’06 regarding the interest rate
assumption for applying benefit
limitations to lump sum distribu-
tions. (New).
•Final Regulations under § 415
were published April 5, 2007
(72 Fed. Reg. 16878), which
provide guidance regarding
§ 415(b)(2)(E)(ii), as amended
by PPA ’06. (New).
•PPA ’06 § 832(a) amended
§ 415(b)(3) to eliminate the active
participant restriction from the
“average compensation for high 3
years” definition. (New).
•PPA ’06 § 906(b)(1)(A) & (B)
modified §§ 415(b)(2)(H) and
415(b)(10), respectively, regard-
ing Indian tribal governments.
(New).
•PPA ’06 § 867(a) removed the
100% of compensation limitation
for a church plan participant if
the participant has never been a
highly compensated employee of
the church in § 415(b)(11). (New).
•Final Regulations under § 415
were published April 5, 2007
(72 Fed. Reg. 16878), which
provide guidance regarding
§ 415(b)(11), as added by
PPA ’06. (New).
34.416:
•Section 416 of the Code was
amendedby§613ofEGTRRA
(as amended by § 411(k) of
JCWAA) to make several
changes to the top-heavy rules.
(2004 C. L.).
•Section 416(g)(4)(H) of the
Code was added by § 613(d)
of EGTRRA to provide certain
safe harbor § 401(k) plans and
9
Proposed regulations under § 414(w) with respect to eligible automatic contribution arrangements were published November 8, 2007 (72 Fed. Reg. 63144) and may be relied upon until
final regulations are issued.
December 15, 200812802008–50 I.R.B.

§ 401(m) plans an exemption from
the top-heavy rules. (2004 C. L.).
•Rev. Rul. 2004–13, 2004–1
C.B. 485. (2004 C. L.).
•Section 416(c)(1)(C) of the
Code was amended by § 613(e)
of EGTRRA (as amended by
§ 411(k)(1) of JCWAA) to provide
when a frozen defined benefit plan
is exempt from the minimum ben-
efit requirements. (2005 C. L.).
•PPA ’06 § 902(c)(1) amended
§ 416(g)(4)(H)(i) by inserting
§ 401(k)(13) of the Code . (New).
•PPA ’06 § 902(c)(2) amended
§ 416(g)(4)(H)(ii) by inserting
§ 401(m)(12) of the Code. (New).
35.417:
•Section 1.417(e)–1 of the Reg-
ulations was published on
July 16, 2003 (68 Fed. Reg.
41906) relating to retroactive an-
nuity starting dates. (2005 C. L.).
•FinalRegulationsunder
§ 417(a)(3) were published on
March 24, 2006 (71 Fed. Reg.
14798) regarding the disclosure
of the relative value of optional
forms of benefit. (2006 C. L.).
•PPA ’06 § 1102(a) provides that
notice required to be provided un-
der § 417 may be provided as
much as 180 days before the an-
nuity starting date. (New).
•Notice 2007–7, 2007–1 C.B.
395, provides guidance re-
gardingPPA’06§1102.
(New).
•PPA ’06 § 302(b) amended the ap-
plicable interest rate and mortal-
ity table to be used for determining
the present value of lump sum dis-
tributions in § 417(e)(3). (New).
•Rev. Rul. 2007–67, 2007–48
I.R.B. 1047, addresses the
mortality tables required by
§ 417(e)(3). (New).
•Notice 2008–30, 2008–12
I.R.B. 638, provides guid-
ance regarding PPA ’06 § 302.
(New).
•PPA ’06 § 1004(a) added the qual-
ified optional survivor annuity
benefit to § 417. (New).
•Notice 2008–30, 2008–12
I.R.B. 638, provides guidance
regarding PPA ’06 § 1004.
(New).
36.420:
•Section6613oftheU.S.Troop
Readiness, Veterans’ Care,
Katrina Recovery, and Iraq
Accountability Appropriations
Act, 2007, amends § 420(c)(3)(A)
regardingminimumcost
requirements for transfers of
excess pension assets to retiree
health accounts. (2007 C. L.).
•PPA ’06 § 114(d)(1) modified
the definition of the term “excess
pension assets” in § 420(e)(2).
Section 6612(b) of the U.S.
Troop Readiness, Veterans’ Care,
Katrina Recovery, and Iraq
Accountability Appropriations
Act, 2007 amends § 420(e)(2)(B).
(2007 C. L.).
37.432(e): PPA ’06 § 212(a) added
§ 432(e) which requires that a reha-
bilitation plan be adopted for multi-
employer plans in critical status and
permits certain reductions and ad-
justable benefits. (New).
38.4975:
•Section 4975 of the Code was
amended by § 612 of EGTRRA
to allow plan loans for Subchap-
ter S shareholder-employees.
(2004 C. L.).
•Section 4975(f) of the Code was
amendedby§240ofAJCAto
allow an S corporation distribu-
tion on allocated shares to pay off
an exempt loan as long as equal
amounts are allocated to partici-
pant accounts. (2005 C. L.).
39.Hurricane Relief:
•Katrina Emergency Tax Relief
Act of 2005, Pub. L. 109–73.
(2005 C. L.).
•Notice 2005–92, 2005–2 C.B.
1165. (2005 C. L.).
•Announcement 2005–70, 2005–2
C.B. 682. (2005 C. L.).
•Gulf Opportunity Zone Act of
2005, Pub. L. 109–135, added
§ 1400M and § 1400Q to the Code
to provide certain tax benefits to
those areas affected by Hurricanes
Katrina, Wilma, and Rita. (2006
C. L.).
40.Miscellaneous:
•Rev. Rul. 2002–42, 2002–2 C.B.
76, provides guidance with re-
spect to a situation where a money
purchase pension plan is merged
or converted into a profit sharing
plan. (2004 C. L.).
•Rev. Proc. 2002–21, 2002–1 C.B.
911, provides guidance with re-
spect to defined contribution re-
tirement plans maintained by pro-
fessional employer organizations.
(2004 C. L.).
•Rev. Proc. 2003–86, 2003–2
C.B. 1211, amplifies Rev. Proc.
2002–21 relating to relief pro-
vided for certain defined contri-
bution plans maintained by pro-
fessional employer organizations.
(2004 C. L.).
•Rev. Rul. 2004–10, 2004–1 C.B.
484, provides guidance with re-
spect to charging administrative
expenses to former and current
employees. (2004 C. L.).
•Rev. Rul. 2004–12, 2004–1 C.B.
478, provides guidance with re-
spect to the distribution restric-
tions applicable to rollover contri-
butions. (2004 C. L.).
•Rev. Rul. 2001–62, 2001–2 C.B.
632, provides guidance with re-
spect to the mortality table un-
der § 415(b)(2)(E)(v) of the Code
and the applicable mortality table
under § 417(e)(3)(A)(ii)(I) of the
Code. (2005 C. L.).
•Rev. Rul. 2003–11, 2003–1 C.B.
285, provides guidance with re-
spect to satisfying the nondiscrim-
ination rules under § 401(a)(4) of
the Code and the minimum cover-
age requirements under § 410(b)
of the Code when applying the in-
creased compensation limit to for-
mer employees. (2005 C. L.).
•Rev. Rul. 2005–55, 2005–2 C.B.
284, provides guidance with re-
spect to medical reimbursement
accounts under a profit sharing
plan. (2005 C. L.).
•Section 1.401(a)–21 of the Final
Regulations were published on
October 20, 2006 (71 Fed. Reg.
2008–50 I.R.B.1281December 15, 2008

61877) setting forth standards for
the use of an electronic medium
to applicable notices to recipients
or to make participant elections.
(2006 C. L.).
•Notice 2008–21, 2008–7 I.R.B.
431, provides transitional guid-
ance for 2008 under § 436 for
small plans with end-of-year val-
uation dates. (New).
•Notice 2008–73, 2008–38 I.R.B.
717, expands transition relief of
Notice 2008–21. (New).
The following guidance contains
sample or model amendments: Notice
2001–57, 2001–2 C.B. 279 (miscella-
neous EGTRRA amendments); Rev. Rul.
2001–62, 2001–2 C.B. 632 (applicable
mortality table); Rev. Proc. 2002–29,
2002–1 C.B. 1176 (required minimum
distribution amendments); Rev. Proc.
2003–13, 2003–1 C.B. 317 (required lan-
guage for deemed IRAs); Notice 2005–5
(automatic rollover); and Notice 2006–44,
2006–1 C.B. 889 (Roth § 401(k) plans).
VII. HEROES EARNINGS
ASSISTANCE AND RELIEF TAX
ACT OF 2008 PROVISIONS
As provided in section V of this no-
tice, plans submitting in Cycle D may be
amended for the HEART Act, but the Ser-
vice will not consider the HEART Act in
issuing determination letters. The HEART
Act provisions are listed below.
1.401(a)(37): Section104(a)ofthe
HEART Act added Code § 401(a)(37)
with respect to benefits payable on
the death of a plan participant while
performing qualified military service.
(New).
2.414(u)(9): Section 104(b) of the
HEART Act amended § 414(u) of the
Code by adding a paragraph regarding
how a plan may provide benefit accru-
als for a person who dies or becomes
disabled while performing qualified
military service. (New).
3.414(u)(12): Section 105(b)(1) of the
HEART Act added § 414(u)(12) with
respect to the treatment of differen-
tial wage payments during the period
a person, while on active duty, is per-
forming service in the uniformed ser-
vices. (New).
DRAFTING INFORMATION
The principal author of this notice is
Angelique Carrington of the Employee
Plans, Tax Exempt and Government En-
tities Division. For further information
regarding this notice, please contact the
Employee Plans taxpayer assistance an-
swering service at 1–877–829–5500 (a
toll-free number) or e-mail Ms. Carrington
atRetirementPlanQuestions@irs.gov.
Midwestern and Hurricane Ike
Disaster Areas and Population
Estimates
Notice 2008–109
This notice informs the States of
Arkansas, Illinois, Indiana, Iowa,
Missouri, Nebraska, and Wisconsin
of those counties that comprise the
Midwestern disaster area for purposes of
certain provisions of the Tax Extenders
and Alternative Minimum Tax Relief
Act of 2008 (Division C of Public
Law 110–343) (Act).In addition,
this notice informs these States of the
portion of their State population that
is located in the Midwestern disaster
area for purposes of determining the
(1) Midwestern disaster housing amount
under § 1400N(c)(1)(B) of the Internal
Revenue Code (Code), as applied and
modified by section 702 of the Act,
(2) maximum aggregate face amount of
qualified Midwestern disaster area bonds
(Midwestern Disaster Bonds) which may
be designated under § 1400N(a)(3)(A)
of the Code, as applied and modified by
section 702 of the Act, and (3) maximum
aggregate face amount of Midwestern
tax credit bonds (Midwestern Tax Credit
Bonds) which may be designated under
§ 1400N(l)(4)(C), as applied and modified
by section 702 of the Act.
This notice also informs the States of
Texas and Louisiana of the counties and
parishes that comprise the Hurricane Ike
disaster area for purposes of certain provi-
sions of the Act. In addition, this notice in-
forms the States of Texas and Louisiana of
their State population portion for purposes
of determining the (1) Hurricane Ike Re-
covery Assistance housing amount under
§ 1400N(c)(1)(B) of the Code, as applied
and modified by section 704(b) of the Act,
and (2) maximum aggregate face amount
of qualified Hurricane Ike disaster area
bonds (Hurricane Ike Bonds) which may
be designated under § 1400N(a)(3)(A), as
applied and modified by section 704(a) of
the Act.
This notice also provides instructions
for the reporting of the issuance of Mid-
western Disaster Bonds, Midwestern Tax
Credit Bonds, and Hurricane Ike Bonds.
BACKGROUND
The Act provides certain tax benefits
for specified counties in certain Midwest-
ern States affected by severe storms, torna-
dos, or flooding, and for specified counties
in Texas and parishes in Louisiana affected
by Hurricane Ike.
Section 702(a) of the Act provides that,
subject to the modifications described in
section 702 of the Act, certain provisions
of or relating to the Code shall apply to
any Midwestern disaster area in addition
to the areas to which such provisions oth-
erwise apply. Section702(a)(1) provides,
in part and with certain modifications, that
§ 1400N(a), § 1400N(c), and § 1400N(l)
of the Code shall apply to the Midwestern
disaster area.
Section 702(b) of the Act defines the
term “Midwestern disaster area” to mean
an area (1) with respect to which a ma-
jor disaster has been declared by the Pres-
ident on or after May 20, 2008, and be-
fore August 1, 2008, under section 401
of the Robert T. Stafford Disaster Relief
and Emergency Assistance Act (Stafford
Act) by reason of severe storms, torna-
dos, or flooding occurring in any of the
States of Arkansas, Illinois, Indiana, Iowa,
Kansas, Michigan, Minnesota, Missouri,
Nebraska, and Wisconsin, and (2) deter-
minedbythePresidenttowarrantindi-
vidual or individual and public assistance
from the Federal government under the
Stafford Act for damages attributable to
the severe storms, tornados, or flooding.
Under section 702(c) of the Act, any
reference in the relevant provisions of
§ 1400N of the Code to the Gulf Oppor-
tunity Zone (GO Zone) is treated as a
reference to any Midwestern disaster area
and any reference to the GO Zone within
December 15, 200812822008–50 I.R.B.

a State is treated as a reference to all Mid-
western disaster areas within the State.
Section 704(a) of the Act provides that,
with certain modifications, § 1400N(a) of
the Code shall apply to any Hurricane Ike
disaster area in addition to any other area
referenced in § 1400N(a). Section 704(b)
of the Act provides, with certain modifica-
tions, that § 1400N(c) shall apply to any
Hurricane Ike disaster area in addition to
any other area referenced in § 1400N(c).
Section 704(c) of the Act defines the
term “Hurricane Ike disaster area” to mean
an area in the State of Texas or Louisiana
(1) with respect to which a major disas-
ter has been declared by the President on
September 13, 2008, under section 401 of
the Stafford Act by reason of Hurricane
Ike, and (2) determined by the President to
warrant individual or individual and pub-
lic assistance from the Federal government
under the Stafford Act for damages attrib-
utable to Hurricane Ike.
MIDWESTERN DISASTER AREA
COUNTIES
The counties located in the Midwestern
disaster area are:
Arkansas—Arkansas, Benton,
Cleburne, Conway, Crittenden, Grant,
Lonoke, Mississippi, Phillips, Pulaski,
Saline, and Van Buren.
Illinois—Adams, Calhoun, Clark,
Coles, Crawford, Cumberland,
Douglas, Edgar, Hancock, Henderson,
Jasper, Jersey, Lake, Lawrence,
Mercer, Rock Island, Whiteside, and
Winnebago.
Indiana—Adams, Bartholomew,
Brown, Clay, Daviess, Dearborn,
Decatur, Gibson, Grant, Greene,
Hamilton, Hancock, Hendricks,
Henry, Huntington, Jackson, Jefferson,
Jennings, Johnson, Knox, Lawrence,
Madison, Marion, Monroe, Morgan,
Owen, Parke, Pike, Posey, Putnam,
Randolph, Ripley, Rush, Shelby,
Sullivan, Tippecanoe, Vermillion, Vigo,
Washington, and Wayne.
Iowa—Adair, Adams, Allamakee,
Appanoose, Audubon, Benton, Black
Hawk, Boone, Bremer, Buchanan,
Butler, Cass, Cedar, Cerro Gordo,
Chickasaw, Clarke, Clayton, Clinton,
Crawford, Dallas, Davis, Decatur,
Delaware, Des Moines, Dubuque,
Fayette, Floyd, Franklin, Fremont,
Greene, Grundy, Guthrie, Hamilton,
Hancock, Hardin, Harrison, Henry,
Howard, Humboldt, Iowa, Jackson,
Jasper, Johnson, Jones, Keokuk,
Kossuth, Lee, Linn, Louisa, Lucas,
Madison, Mahaska, Marion, Marshall,
Mills, Mitchell, Monona, Monroe,
Montgomery, Muscatine, Page, Polk,
Pottawattamie, Poweshiek, Ringgold,
Scott, Story, Tama, Union, Van Buren,
Wapello, Warren, Washington, Webster,
Winnebago, Winneshiek, Worth, and
Wright.
Missouri—Adair, Andrew, Barry,
Callaway, Cass, Chariton, Clark,
Gentry, Greene, Harrison, Holt,
Jasper,Johnson,Lewis,Lincoln,Linn,
Livingston, Macon, Marion, Monroe,
Newton, Nodaway, Pike, Putnam,
Ralls, St. Charles, Stone, Taney,
Vernon, and Webster.
Nebraska—Buffalo, Butler, Colfax,
Custer, Dawson, Douglas, Gage,
Hamilton, Holt, Jefferson, Kearney,
Lancaster, Platte, Richardson, Sarpy,
and Saunders.
Wisconsin—Adams, Calumet,
Columbia, Crawford, Dane, Dodge,
Fond du Lac, Grant, Green, Green Lake,
Iowa,Jefferson,Juneau,Kenosha,
La Crosse, Manitowoc, Marquette,
Milwaukee, Monroe, Ozaukee, Racine,
Richland, Rock, Sauk, Sheboygan,
Vernon, Walworth, Washington,
Waukesha, and Winnebago.
Although section 702(b) of the Act ref-
erences the States of Kansas, Michigan,
and Minnesota as Midwestern States, no
county in these three States has been deter-
mined to warrant individual or individual
and public assistance under the Stafford
Act for damages attributable to severe
storms, tornados, or flooding. Accord-
ingly, this notice does not apply to these
States.
HURRICANE IKE DISASTER AREA
COUNTIES AND PARISHES
The counties and parishes located in the
Hurricane Ike disaster area are:
Louisiana—Acadia, Allen,
Beauregard, Calcasieu, Cameron,
Iberia, Jefferson, Jefferson Davis,
Lafourche, Livingston, Orleans,
Plaquemines, Sabine, St. Martin,
St. Mary, St. Tammany, Tangipahoa,
Terrebonne, Vermilion, and Vernon.
Texas—Angelina, Austin,
Brazoria, Chambers, Cherokee,
Fort Bend, Galveston, Gregg,
Grimes, Hardin, Harris, Harrison,
Houston, Jasper, Jefferson, Liberty,
Madison, Matagorda, Montgomery,
Nacogdoches, Newton, Orange,
Polk, Rusk, Sabine, San Augustine,
San Jacinto, Shelby, Smith, Trinity,
Tyler, Walker, Waller, and Washington.
LOW-INCOME HOUSING TAX
CREDIT: ADDITIONAL HOUSING
CREDIT AMOUNT
A.Midwestern disaster area.
Section 702(d)(2) of the Act provides,
in part, that § 1400N(c) of the Code
shall apply [to the Midwestern disaster
area] with certain modifications. Sec-
tion 702(d)(2)(A) of the Act provides that
the modifications only apply to calen-
dar years 2008, 2009, and 2010. Sec-
tion 702(d)(2)(B) of the Act substitutes
“Disaster Recovery Assistance housing
amount” for “the Gulf Opportunity hous-
ing amount” each place it appears in
§ 1400N(c). As a result, § 1400N(c)(1), as
applied and modified by section 702 of the
Act, provides that, for purposes of § 42, in
the case of calendar years 2008, 2009, and
2010, the State housing credit ceiling of
each State, any portion of which is located
in the Midwestern disaster area, shall be
increased by the lesser of—
(i) the aggregate housing credit dollar
amount allocated by the State housing
credit agency of such State to buildings
located in the Midwestern disaster area for
such calendar year, or
(ii) the Disaster Recovery Assistance
housing amount for such State for such cal-
endar year.
2008–50 I.R.B.1283December 15, 2008

Section 702(d)(2)(C) of the Act modi-
fies § 1400N(c)(1)(B) of the Code by sub-
stituting “$8” for “$18” and by substitut-
ing “before the earliest applicable disaster
date for Midwestern disaster areas within
the State” for “before August 28, 2005.”
As a result, § 1400N(c)(1)(B), as applied
and modified by section 702 of the Act,
provides that the term “Disaster Recovery
Assistance housing amount” means, for
any calendar year, the amount equal to the
product of $8 multiplied by the portion of
the State population that is in the Midwest-
ern disaster area (as determined on the ba-
sis of the most recent census estimate of
resident population released by the Bureau
of the Census before the earliest applicable
disaster date for Midwestern disaster areas
within the State).
B.Hurricane Ike disaster area.
Section 704(b) of the Act provides, in
part, that § 1400N(c) of the Code shall
apply to any Hurricane Ike disaster area,
but with certain modifications. Section
704(b)(1) of the Act provides that the
modifications only apply to calendar years
2008, 2009, and 2010. Section 704(b)(2)
of the Act substitutes “Hurricane Ike dis-
aster area” for “the Gulf Opportunity
Zone” each place it appears in § 1400N(c)
and section 704(b)(3)of the Act substi-
tutes “Hurricane Ike Recovery Assistance
housing amount” for “Gulf Opportunity
housing amount” each place it appears in
§ 1400N(c). As a result, § 1400N(c)(1),
as applied and modified by 704(b) of the
Act, provides that, for purposes of § 42, in
the case of calendar years 2008, 2009, and
2010, the State housing credit ceiling of
each State, any portion of which is located
in the Hurricane Ike disaster area, shall be
increased by the lesser of—
(i) the aggregate housing credit dollar
amount allocated by the State housing
credit agency of such State to buildings
located in the Hurricane Ike disaster area
for such calendar year, or
(ii) the Hurricane Ike Recovery Assis-
tance housing amount for such State for
such calendar year.
Section 704(b)(4) of the Act modifies
§ 1400N(c)(1)(B) of the Code to provide
that for purposes of § 1400N(c)(1)(A), the
term “Hurricane Ike housing amount” [i.e.,
Hurricane Ike Recovery Assistance hous-
ing amount] means, for any calendar year,
the amount equal to the product of $16
multiplied by the portion of the State pop-
ulation that is in (1) the Texas counties of
Brazoria, Chambers, Galveston, Jefferson,
and Orange, and (2) the Louisiana parishes
of Calcasieu and Cameron. These popula-
tion amounts are determined on the basis
of the most recent census estimate of resi-
dent population released by the Bureau of
Census before September 13, 2008.
TAX-EXEMPT BONDS AND TAX
CREDIT BONDS
A.Midwestern disaster area.
Midwestern Disaster Bonds. Section
702(d)(1) of the Act provides, in part,
that § 1400N(a) of the Code shall ap-
ply to a qualified Midwestern Disaster
Bond with certain modifications as de-
scribed therein. Section 702(d)(1)(B) of
the Act substitutes “any State in which
a Midwestern disaster area is located”
for “the State of Alabama, Louisiana, or
Mississippi” in § 1400N(a)(2)(B). Section
702(d)(1)(C) of the Act substitutes “desig-
nated for purposes of this section (on the
basis of providing assistance to areas in
the order in which such assistance is most
needed)” for “designated for purposes of
this section” in § 1400N(a)(2)(C). Sec-
tion 702(d)(1)(D) of the Act substitutes
“January 1, 2013” for “January 1, 2011”
where it appears in § 1400N(a)(2)(D). As
a result, § 1400N(a), as applied and mod-
ified by section 702 of the Act, provides
generally for the designation and issuance
of Midwestern Disaster Bonds with re-
spect to any State in which a Midwestern
disaster area is located subject to certain
limitations including a requirement that
such Midwestern Disaster Bonds be issued
after the date of enactment and before
January 1, 2013.
Section 702(d)(1)(E) of the Act pro-
vides the limitation on the amount of Mid-
western Disaster Bonds that can be desig-
nated for issuance. Section 702(d)(1)(E)
substitutes “$1,000” for “$2,500” and “be-
fore the earliest applicable disaster date
for Midwestern disaster areas within the
State” for “before August 28, 2005” where
it appears in § 1400N(a)(3)(A) of the Code.
As a result, § 1400N(a)(3)(A), as applied
andmodifiedbysection702(d)(1)(E)of
the Act, provides that the maximum aggre-
gate face amount of bonds that may be des-
ignated for any State shall not exceed the
product of $1,000 multiplied by the portion
of the State population which is in the Mid-
western disaster area (as determined on the
basis of the most recent census estimate
of resident population released by the Bu-
reau of Census before the earliest applica-
ble disaster date for Midwestern disaster
areas within the State).
Midwestern Tax Credit Bonds. Sec-
tion 702(d)(7) of the Act provides, in
part, that § 1400N(l) of the Code shall
apply to tax credit bonds issued in con-
nection with Midwestern disaster areas,
with certain modifications as described
therein. Section 702(d)(7)(A) provides
that § 1400N(l) shall apply by substi-
tuting “Midwestern tax credit bond” for
“Gulf tax credit bond” each place it ap-
pears. Section 702(d)(7)(B) provides that
§ 1400N(l)(4)(A)(i) shall be applied by
substituting “any State in which a Mid-
western disaster area is located or any
instrumentality of the State” for “the
State of Alabama, Louisiana, or Missis-
sippi.” Section 702(d)(7)(C) substitutes
“after December 31, 2008 and before
January 1, 2010” for “after December
31, 2005, and before January 1, 2007”
in § 1400N(l)(4)(A)(vi). As a result,
§ 1400N(l), as applied and modified by
section 702 of the Act, provides generally
for the designation and issuance of Mid-
western Tax Credit Bonds with respect to
any State in which a Midwestern disaster
area is located subject to certain limita-
tions including a requirement that such
Midwestern Tax Credit Bonds be issued
after December 31, 2008, and before Jan-
uary 1, 2010.
Section 702(d)(7)(D) of the Act pro-
vides the limitation on the amount of Mid-
western Tax Credit Bonds that can be des-
ignated for issuance. Section 702(d)(7)(D)
provides that § 1400N(l)(4)(C) shall be
applied by substituting “shall not exceed
$100,000,000 for any State with an aggre-
gate population located in all Midwestern
disaster areas within the State of at least
2,000,000, $50,000,000 for any State with
an aggregate population located in all Mid-
western disaster areas within the State of
at least 1,000,000 but less than 2,000,000,
and zero for any other State. The popu-
lation of a State within any area shall be
determined on the basis of the most re-
cent census estimate of resident popula-
tion released by the Bureau of Census be-
December 15, 200812842008–50 I.R.B.

fore the earliest applicable disaster date
for Midwestern disaster areas within the
State” for “shall not exceed” and all that
follows in § 1400N(l)(4)(C). As a result,
§ 1400N(l)(4)(C), as applied and modified
by section 702 of the Act, provides that the
maximum aggregate face amount of bonds
that may be designated shall not exceed
$100,000,000 for any State with an aggre-
gate population located in all Midwestern
disaster areas within the State of at least
2,000,000, $50,000,000 for any State with
an aggregate population located in all Mid-
western disaster areas within the State of
at least 1,000,000 but less than 2,000,000,
and zero for all other States. For purposes
of applying the limitation on the amount
of Midwestern Tax Credit Bonds to be is-
sued, the population of a State within any
area shall be determined on the basis of
the most recent census estimate of resident
population released by the Bureau of Cen-
sus before the earliest applicable disaster
date for Midwestern disaster areas within
the State.
B.Hurricane Ike disaster area.
Hurricane Ike Bonds.Section
704(a)(1) of the Act provides that
§ 1400N(a) of the Code shall apply to
any Hurricane Ike disaster area in ad-
dition to any other areas referenced in
§ 1400N(a), with certain modifications as
described therein. Section 704(a)(2) of
the Act substitutes “any State in which
any Hurricane Ike disaster area is located”
for “the State of Alabama, Louisiana, or
Mississippi” in § 1400N(a)(2)(B). Section
704(a)(3) of the Act substitutes “desig-
nated for purposes of this section (on the
basis of providing assistance to areas in
the order in which such assistance is most
needed)” for “designated for purposes of
this section” in § 1400N(a)(2)(C). Section
704(a)(4) of the Act substitutes “January
1, 2013” for “January 1, 2011” where it
appears in § 1400N(a)(2)(D). As a result,
§ 1400N(a)(2)(D), as applied and modi-
fied by section 704 of the Act, provides
generally for the designation and issuance
of Hurricane Ike Bonds with respect to
any State in which a Hurricane Ike disaster
area is located subject to certain limita-
tions including a requirement that such
Hurricane Ike Bonds be issued after the
date of enactment and before January 1,
2013.
Section 704(a)(5) of the Act provides
the limitation on the amount of Hurricane
Ike Bonds that can be designated for is-
suance. As a result, § 1400N(a)(3)(A),
as applied and modified by section 704
of the Act, provides that the maximum
aggregate face amount of bonds that may
be designated under § 1400N(a)(3)(A)
for any State shall not exceed the product
of $2,000 multiplied by the portion of
the State population which is in (1) the
Texas counties of Brazoria, Chambers,
Galveston, Jefferson, and Orange, and (2)
the Louisiana parishes of Calcasieu and
Cameron (as determined on the basis of
the most recent census estimate of resi-
dent population released by the Bureau of
Census before September 13, 2008).
APPLICABLE CENSUS POPULATION
AMOUNTS
The most recent census estimate of the
resident population released by the U.S.
Census Bureau that reflects the portion of
State population that is in (1) the Midwest-
ern disaster area, or (2) the Texas coun-
ties of Brazoria, Chambers, Galveston,
Jefferson, and Orange, and the Louisiana
parishes of Calcasieu and Cameron, is
the July 1, 2007, Annual Estimates of the
Population for Counties released by the
U.S. Census Bureau on March 20, 2008,
in Press Release CB08–47.
A.Midwestern Disaster Areas.
The portion of each State’s population
that is in the Midwestern disaster area is
determined by adding together the pop-
ulation estimates provided by Press Re-
lease CB08–47 for each county located
in the Midwestern disaster areas for that
State. These results should be used to de-
termine each State’s Midwestern disaster
housing amount under § 1400N(c)(1)(B)
of the Code (as applied by section 702
of the Act), the maximum aggregate face
amount of Midwestern Disaster Bonds that
can be designated under § 1400N(a)(3) (as
applied by section 702 of the Act), and the
maximum aggregate face amount of Mid-
western Tax Credit Bonds that can be des-
ignated under § 1400N(l)(4)(C) (as applied
by section 702 of the Act).
Based on the foregoing, the portion of
each State’s population that is in a Mid-
western disaster area is provided below:
Arkansas
957,100
Illinois
1,515,271
Indiana3,098,222
Iowa
2,615,995
Missouri1,414,492
Nebraska1,136,088
Wisconsin3,830,112
B.Hurricane Ike Disaster Areas.
The portion of the each State’s pop-
ulation that is used in calculating the
Hurricane Ike Recovery Assistance hous-
ing amount and the aggregate amount
of Hurricane Ike Bonds that can be is-
sued is determined by adding together
the population estimates provided by
Press Release CB08–47 for (in the case
of Texas) the counties of Brazoria,
Chambers, Galveston, Jefferson, and
Orange, and (in the case of Louisiana)
the parishes of Calcasieu and Cameron.
These results should be used to determine
the Hurricane Ike Recovery Assistance
housing amount for Texas and Louisiana
under § 1400N(c)(1)(B) (as applied
by section 704(b) of the Act) and
the maximum aggregate face amount
of Hurricane Ike Bonds that may be
designated under § 1400N(a)(3) (as
applied by section 704(a) of the Act).
Based on the foregoing, the portion of
each State’s population to be used for these
purposes is provided below:
Louisiana191,926
Texas
931,635
REPORTING REQUIREMENTS FOR
TAX-EXEMPT BONDS AND TAX
CREDIT BONDS
Pending further guidance from the In-
ternal Revenue Service (IRS) regarding
the applicable forms to be used for infor-
mation reporting, issuers of Midwestern
Disaster Bonds, Midwestern Tax Credit
Bonds and Hurricane Ike Bonds should
report the issuance on IRS Form 8038,In-
formation Return for Tax-Exempt Private
2008–50 I.R.B.1285December 15, 2008

Activity Bond Issues, with modifications
as described below:
Midwestern Disaster Bonds. Issuers of
Midwestern Disaster Bonds should report
the issuance of bonds as follows:
1. Report the issuance of mortgage rev-
enue bonds on Line 20c of IRS Form
8038 and enter “Midwestern Disas-
ter Mortgage Bonds” on the line pro-
vided.
2. Report the issuance of Midwestern
Disaster Bonds that are not mortgage
revenue bonds on Line 11q of IRS
Form 8038 and enter “Midwestern
Disaster Exempt Facility Bonds” on
the line provided.
Midwestern Tax Credit Bonds. Issuers
of Midwestern Tax Credit Bonds should
report the issuance on Line 20c of IRS
Form 8038 and enter “Midwestern Disas-
ter Tax Credit Bonds” on the line provided.
Hurricane Ike Bonds. Issuers of Hurri-
cane Ike Bonds should report the issuance
of bonds as follows:
1. Report the issuance of mortgage rev-
enue bonds on Line 20c of IRS Form
8038 and enter “Hurricane Ike Mort-
gage Bonds” on the line provided.
2. Report the issuance of Hurricane Ike
Bonds that are not mortgage revenue
bonds on Line 11q of IRS Form 8038
and enter “Hurricane Ike Exempt Fa-
cility Bonds” on the line provided.
DRAFTING INFORMATION
The principal authors of this notice are
Christopher J. Wilson, Office of the As-
sociate Chief Counsel (Passthroughs and
Special Industries) and Carla Young, Of-
fice of the Associate Chief Counsel (Fi-
nancial Institutions and Products). For fur-
ther information regarding the low-income
housing tax credit, contact Mr. Wilson at
(202) 622–3040. For further information
regarding tax-exempt or tax credit bonds,
contact Ms. Young at (202) 622–3980 (not
toll-free calls).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part I, §§ 62, 162, 170, 213, 217, 274, 1016;
1.62–2, 1.162–17, 1.170A–1, 1.213–1, 1.217–2,
1.274–5, 1.1016–3.)
Rev. Proc. 2008–72
SECTION 1. PURPOSE
This revenue procedure updates Rev.
Proc. 2007–70, 2007–50 I.R.B. 1162,
and Announcement 2008–63, 2008–28
I.R.B. 114, and provides optional standard
mileage rates for employees, self-em-
ployed individuals, or other taxpayers
to use in computing the deductible costs
of operating an automobile for business,
charitable, medical, or moving expense
purposes. This revenue procedure also
provides rules under which the amount of
ordinary and necessary expenses of local
travel or transportation away from home
that are paid or incurred by an employee
are deemed substantiated under § 1.274–5
of the Income Tax Regulations if a payor
(the employer, its agent, or a third party)
provides a mileage allowance under a re-
imbursement or other expense allowance
arrangement to pay for the expenses. Use
of a method of substantiation described in
this revenue procedure is not mandatory
and a taxpayer may use actual allowable
expenses if the taxpayer maintains ade-
quate records or other sufficient evidence
for proper substantiation. The Internal
Revenue Service prospectively adjusts the
business and medical and moving stan-
dard mileage rates annually (to the extent
warranted).
SECTION 2. SUMMARY OF
STANDARD MILEAGE RATES
.01Standard mileage rates
(1) Business (section 5 below)55 cents per mile
(2) Charitable contribution (section 7 below)14 cents per mile
(3) Medical and moving (section 7 below)24 cents per mile
.02Determination of standard mileage
rates. The business and medical and mov-
ing standard mileage rates reflected in this
revenue procedure are based on an annual
study of the fixed and variable costs of op-
erating an automobile conducted on behalf
of the Service by an independent contrac-
tor. The charitable contribution standard
mileage rate is provided in § 170(i) of the
Internal Revenue Code.
SECTION 3. BACKGROUND AND
CHANGES
.01 Section 162(a) allows a deduction
for all the ordinary and necessary expenses
paid or incurred during the taxable year
in carrying on any trade or business. Un-
der that provision, an employee or self-em-
ployed individual may deduct the cost of
operating an automobile to the extent that
it is used in a trade or business. However,
under § 262, no portion of the cost of op-
erating an automobile that is attributable to
personal use is deductible.
.02 Section 274(d) provides, in part,
that no deduction is allowed under § 162
with respect to any listed property (as de-
fined in § 280F(d)(4) to include passen-
ger automobiles and any other property
used as a means of transportation) unless
the taxpayer complies with certain sub-
stantiation requirements. Section 274(d)
further provides that regulations may pre-
scribe that some or all of the substantiation
requirements do not apply to an expense
that does not exceed an amount prescribed
by the regulations.
.03 Section 1.274–5(j), in part, grants
the Commissioner of Internal Revenue
the authority to establish a method under
which a taxpayer may use mileage rates
to substantiate, for purposes of § 274(d),
the amount of the ordinary and necessary
expenses of using a vehicle for local trans-
portation and transportation to, from, and
at the destination while traveling away
from home.
.04 Section 1.274–5(g), in part, grants
the Commissioner the authority to pre-
scribe rules relating to mileage allowances
for ordinary and necessary expenses of
using a vehicle for local transportation
and transportation to, from, and at the
destination while traveling away from
home. Pursuant to this grant of authority,
the Commissioner may prescribe rules
December 15, 200812862008–50 I.R.B.

under which the allowances, if in accor-
dance with reasonable business practice,
will be regarded as (1) equivalent to sub-
stantiation, by adequate records or other
sufficient evidence, of the amount of the
travel and transportation expenses for pur-
poses of § 1.274–5(c), and (2) satisfying
the requirements of an adequate account-
ing to the employer of the amount of the
expenses for purposes of § 1.274–5(f).
.05 Section 62(a)(2)(A) allows an em-
ployee, in determining adjusted gross in-
come, a deduction for the expenses al-
lowedbyPartVI(§161andfollowing),
subchapter B, chapter 1 of the Code, paid
or incurred by the employee in connection
with the performance of services as an em-
ployee under a reimbursement or other ex-
pense allowance arrangement with a payor.
.06 Section 62(c) provides that an ar-
rangement will not be treated as a reim-
bursement or other expense allowance ar-
rangement for purposes of § 62(a)(2)(A) if
it—
(1) does not require the employee to
substantiate the expenses covered by the
arrangement to the payor, or
(2) provides the employee with the right
to retain any amount in excess of the sub-
stantiated expenses covered under the ar-
rangement.
Section 62(c) further provides that the sub-
stantiation requirements described therein
do not apply to any expense to the extent
that, under the grant of regulatory author-
ity in § 274(d), the Commissioner has pro-
vided that substantiation is not required for
the expense.
.07 Under § 1.62–2(c), a reimburse-
ment or other expense allowance arrange-
ment satisfies the requirements of § 62(c)
if it meets the requirements of business
connection, substantiation, and returning
amounts in excess of expenses as specified
in the regulations. If an arrangement meets
these requirements, all amounts paid under
the arrangement are treated as paid un-
der an accountable plan and are excluded
from income and wages. If an arrange-
ment does not meet these requirements,
all amounts paid under the arrangement
are treated as paid under a nonaccountable
plan and are included in the employee’s
gross income, must be reported as wages
or compensation on the employee’s Form
W–2, and are subject to the withholding
and payment of employment taxes. Sec-
tion 1.62–2(e)(2) specifically provides
that substantiation of certain business ex-
penses in accordance with rules prescribed
under the authority of § 1.274–5(g) will
be treated as substantiation of the amount
of the expenses for purposes of § 1.62–2.
Under § 1.62–2(f)(2), the Commissioner
may prescribe rules under which an ar-
rangement providing mileage allowances
is treated as satisfying the requirement of
returning amounts in excess of expenses,
even though the arrangement does not
require the employee to return the por-
tion of the allowance that relates to miles
of travel substantiated and that exceeds
the amount of the employee’s expenses
deemed substantiated pursuant to rules
prescribed under § 274(d), provided the
allowance is reasonably calculated not
to exceed the amount ofthe employee’s
expenses or anticipated expenses and the
employee is required to return any portion
of the allowance that relates to miles of
travel not substantiated.
.08 Section 1.62–2(h)(2)(i)(B) provides
that if a payor pays a mileage allowance
under an arrangement that meets the re-
quirements of § 1.62–2(c)(1), the portion,
if any, of the allowance that relates to
miles of travel substantiated in accordance
with § 1.62–2(e), that exceeds the amount
of the employee’s expenses deemed
substantiated for the travel pursuant to
rules prescribed under § 274(d) and
§ 1.274–5(g), and that the employee is not
required to return, is subject to withhold-
ing and payment of employment taxes.
See§§ 31.3121(a)–3, 31.3231(e)–1(a)(5),
31.3306(b)–2, and 31.3401(a)–4 of the
Employment Tax Regulations. Because
the employee is not required to return this
excess portion, the reasonable period of
time provisions of § 1.62–2(g) (relating to
the return of excess amounts) do not apply
to this excess portion.
.09 Under § 1.62–2(h)(2)(i)(B)(4), the
Commissioner may provide special rules
regarding the timing of withholding and
payment of employment taxes on mileage
allowances.
.10 Under §1.62–2(k), if a payor’s re-
imbursement or other expense allowance
arrangement, such as a mileage allowance,
evidences a pattern of abuse of the rules of
§ 62(c) and §1.62–2, all payments under
the arrangement will be treated as made
under a nonaccountable plan.SeeRev.
Rul. 2006–56, 2006–2 C.B. 874, for an ex-
ample of one type of abuse of § 62(c) and
§1.62–2.
SECTION 4. DEFINITIONS
.01Standard mileage rate.Theterm
“standard mileage rate” means the applica-
ble amount provided by the Service for op-
tional use by employees or self-employed
individuals in computing the deductible
costs of operating automobiles (including
vans, pickups, or panel trucks) they own or
lease for business purposes, or by taxpay-
ers in computing the deductible costs of
operating automobiles for charitable, med-
ical, or moving expense purposes.
.02Transportation expenses.Theterm
“transportation expenses” means the ex-
penses of operating an automobile for local
travel or transportation away from home.
.03Mileage allowance.Theterm
“mileage allowance” means a payment
under a reimbursement or other expense
allowance arrangement that is:
(1) paid with respect to the ordinary and
necessary business expenses incurred, or
that the payor reasonably anticipates will
be incurred, by an employee for transporta-
tion expenses in connection with the per-
formance of services as an employee of the
employer,
(2) reasonably calculated not to exceed
the amount of the expenses or the antici-
pated expenses, and
(3) paid at the applicable standard
mileage rate, a flat rate or stated schedule,
or in accordance with any other Ser-
vice-specified rate or schedule.
.04Flat rate or stated schedule.A
mileage allowance is paid at a flat rate or
stated schedule if it is provided on a uni-
form and objective basis with respect to the
expensesdescribedinsection4.03ofthis
revenue procedure. The allowance may
be paid periodically at a fixed rate, at a
cents-per-mile rate, at a variable rate based
on a stated schedule, at a rate that com-
bines any of these rates, or on any other
basis that is consistently applied and in ac-
cordance with reasonable business prac-
tice. Thus, for example, a periodic pay-
ment at a fixed rate to cover the fixed
costs (including depreciation (or lease pay-
ments), insurance, registration and license
fees, and personal property taxes) of driv-
ing an automobile in connection with the
performance of services as an employee of
the employer, coupled with a periodic pay-
2008–50 I.R.B.1287December 15, 2008

ment at a cents-per-mile rate to cover the
variable costs (including gasoline and all
taxes thereon, oil, tires, and routine main-
tenance and repairs) of using an automo-
bile for those purposes, is an allowance
paid at a flat rate or stated schedule. Like-
wise, a periodic payment at a variable rate
based on a stated schedule for different lo-
cales to cover the costs of driving an auto-
mobile in connection with the performance
of services as an employee is an allowance
paid at a flat rate or stated schedule.
SECTION 5. BUSINESS STANDARD
MILEAGE RATE
.01In general. The standard mileage
rate for transportation expenses is 55 cents
per mile for all miles of use for business
purposes.
.02Use of the business standard
mileage rate. A taxpayer may use the busi-
ness standard mileage rate with respect
to an automobile that is either owned or
leased by the taxpayer. A taxpayer gener-
ally may deduct an amount equal to either
the business standard mileage rate times
the number of business miles traveled or
the actual costs (both fixed and variable)
paid or incurred by the taxpayer that are
allocable to traveling those business miles.
.03Business standard mileage rate in
lieu of fixed and variable costs. A deduc-
tion using the business standard mileage
rate is computed on a yearly basis and is
in lieu of all fixed and variable costs of the
automobile allocable to business purposes
(except as provided in section 9.06 of this
revenue procedure). Items such as depre-
ciation (or lease payments), maintenance
and repairs, tires, gasoline (including all
taxes thereon), oil, insurance, and license
and registration fees are included in fixed
and variable costs for this purpose.
.04Parking fees, tolls, interest, and
taxes. Parking fees and tolls attributable
to use of the automobile for business pur-
poses may be deducted as separate items.
Likewise, interest relating to the purchase
of the automobile as well as state and local
personal property taxes may be deducted
as separate items, but only to the extent
allowable under § 163 or § 164, respec-
tively. Section 163(h)(2)(A) expressly
provides that interest is nondeductible
personal interest if it is paid or accrued
on indebtedness properly allocable to the
trade or business of performing services as
an employee. Section 164 expressly pro-
vides that state and local taxes that are paid
or accrued by a taxpayer in connection
with an acquisition or disposition of prop-
erty are treated as part of the cost of the
acquired property or as a reduction in the
amount realized on the disposition of the
property. If the automobile is operated less
than 100 percent for business purposes,
an allocation is required to determine the
business and nonbusiness portion of the
taxes and interest deduction allowable.
.05Depreciation. For owned automo-
biles placed in service for business pur-
poses, and for which the business standard
mileage rate has been used for any year,
depreciation is considered to have been al-
lowed at the rate of 16 cents per mile for
2003 and 2004, 17 cents per mile for 2005
and 2006, 19 cents per mile for 2007, and
21 cents per mile for 2008 and 2009, for
those years in which the business standard
mileage rate was used. If actual costs were
used for one or more of those years, these
rates do not apply to any year in which ac-
tual costs were used. The depreciation de-
scribed above reduces the basis of the au-
tomobile (but not below zero) in determin-
ing adjusted basis as required by § 1016.
.06Limitations.
(1) The business standard mileage rate
may not be used to compute the deductible
expenses of (a) automobiles used for hire,
such as taxicabs, or (b) five or more auto-
mobiles owned or leased by a taxpayer and
used simultaneously (such as in fleet oper-
ations).
(2) The business standard mileage rate
may not be used to compute the deductible
business expenses of an automobile leased
by a taxpayer unless the taxpayer uses ei-
ther the business standard mileage rate or
a fixed and variable rate allowance (FAVR
allowance) (as provided in section 8 of
this revenue procedure) to compute the de-
ductible business expenses of the automo-
bile for the entire lease period (including
renewals). For a lease commencing on
or before December 31, 1997, the “en-
tire lease period” means the portion of the
lease period (including renewals) remain-
ing after that date.
(3) The business standard mileage rate
may not be used to compute the deductible
expenses of an automobile for which the
taxpayer has (a) claimed depreciation us-
ing a method other than straight-line for its
estimated useful life, (b) claimed a § 179
deduction, (c) claimed the special depre-
ciation allowance under § 168(k), or (d)
used the Accelerated Cost Recovery Sys-
tem (ACRS) under former § 168 or the
Modified Accelerated Cost Recovery Sys-
tem (MACRS) under current § 168. By us-
ing the business standard mileage rate, the
taxpayer has elected to exclude the auto-
mobile (if owned) from MACRS pursuant
to § 168(f)(1). If, after using the busi-
ness standard mileage rate, the taxpayer
uses actual costs, the taxpayer must use
straight-line depreciation for the automo-
bile’s remaining estimated useful life (sub-
ject to the applicabledepreciation deduc-
tion limitations under § 280F).
(4) The business standard mileage rate
and this revenue procedure may not be
used to compute the amount of the de-
ductible automobile expenses of an em-
ployee of the United States Postal Service
incurred in performing services involving
the collection and delivery of mail on a ru-
ral route if the employee receives qualified
reimbursements (as defined in § 162(o))
for the expenses.See§ 162(o) for the
rules that apply to these qualified reim-
bursements.
SECTION 6. RESERVED
SECTION 7. CHARITABLE AND
MEDICAL AND MOVING STANDARD
MILEAGE RATES
.01Charitable. Section 170(i) provides
a standard mileage rate of 14 cents per mile
for purposes of computing the charitable
contribution deduction for use of an auto-
mobile in connection with rendering gratu-
itous services to a charitable organization
under § 170.
.02Medical and moving. The standard
mileage rate is 24 cents per mile for use of
an automobile (1) to obtain medical care
described in § 213, or (2) as part of a move
for which the expenses are deductible un-
der § 217.
.03Charitable or medical and moving
standard mileage rates in lieu of variable
expenses. A deduction computed using the
applicable standard mileage rate for chari-
table, medical, or moving expense miles is
in lieu of all variable expenses (including
gasoline and oil) of the automobile alloca-
ble to those purposes. Costs for items such
as depreciation (or lease payments), insur-
ance, and license and registration fees are
December 15, 200812882008–50 I.R.B.

not deductible, and are not included in the
charitable or medical and moving standard
mileage rates.
.04Parking fees, tolls, interest, and
taxes. Parking fees and tolls attributable
to the use of the automobile for charitable,
medical, or moving expense purposes may
be deducted as separate items. Interest
relating to the purchase of the automobile
and state and local personal property taxes
are not deductible as charitable, medical,
or moving expenses, but they may be
deducted as separate items to the extent
allowable under § 163 or § 164, respec-
tively.
SECTION8.FIXEDANDVARIABLE
RATE ALLOWANCE
.01In general.
(1) The ordinary and necessary ex-
penses paid or incurred by an employee
in driving an automobile owned or leased
by the employee in connection with the
performance of services as an employee
of the employer are deemed substantiated
(in an amount determined under section 9
of this revenue procedure) when a payor
reimburses those expenses with a mileage
allowance using a flat rate or stated sched-
ule that combines periodic fixed and
variable rate payments that meet all the
requirements of section 8 of this revenue
procedure (a FAVR allowance).
(2) The amount of a FAVR allowance
must be based on data that (a) is derived
from the base locality,(b) reflects retail
prices paid by consumers, and (c) is rea-
sonable and statistically defensible in ap-
proximating the actual expenses employ-
ees receiving the allowance would incur as
owners of the standard automobile.
.02Computation of FAVR allowance.
(1)FAVR allowance.AFAVRal-
lowance includes periodic fixed payments
and periodic variable payments. A payor
may maintain more than one FAVR al-
lowance. A FAVR allowance that uses the
same payor, standard automobile (or an
automobile of the same make and model
that is comparably equipped), retention
period, and business use percentage is con-
sidered one FAVR allowance, even though
other features of the allowance may vary.
A FAVR allowance also includes any op-
tional high mileage payments; however,
optional high mileage payments are in-
cluded in the employee’s gross income,
are reported as wages or other compen-
sation on the employee’s Form W–2, and
are subject to withholding and payment
of employment taxes when paid.Seesec-
tion 9.05 of this revenue procedure. An
optional high mileage payment covers
the additional depreciation for a standard
automobile attributable to business miles
driven and substantiated by the employee
for a calendar year in excess of the annual
business mileage for that year. If an em-
ployee is covered by the FAVR allowance
for less than the entire calendar year, the
annual business mileage may be prorated
on a monthly basis for purposes of the
preceding sentence.
(2)Periodic fixed payment. A periodic
fixed payment covers the projected fixed
costs (including depreciation (or lease pay-
ments), insurance, registration and license
fees, and personal property taxes) of driv-
ing the standard automobile in connection
with the performance of services as an em-
ployee of the employer in a base locality,
and must be paid at least quarterly. A pe-
riodic fixed payment may be computed by
(a) dividing the total projected fixed costs
of the standard automobile for all years
of the retention period, determined at the
beginning of the retention period, by the
number of periodic fixed payments in the
retention period, and (b) multiplying the
resulting amount by the business use per-
centage.
(3)Periodic variable payment.Aperi-
odic variable payment covers the projected
variable costs (including gasoline and all
taxes thereon, oil, tires, and routine main-
tenance and repairs) of driving a standard
automobile in connection with the perfor-
mance of services as an employee of the
employer in a base locality, and must be
paid at least quarterly. The rate of a pe-
riodic variable payment for a computation
periodmaybecomputedbydividingthe
total projected variable costs for the stan-
dard automobile for the computation pe-
riod, determined at the beginning of the
computation period, by the computation
period mileage. A computation period can
be any period of a year or less. Compu-
tation period mileage is the total mileage
(business and personal) a payor reason-
ably projects a standard automobile will
be driven during a computation period and
equals the retention mileage divided by the
number of computation periods in the re-
tention period. For each business mile sub-
stantiated by the employee for the com-
putation period, the periodic variable pay-
ment must be paid at a rate that does not ex-
ceed the rate for that computation period.
(4)Base locality. A base locality is
the particular geographic locality or re-
gion of the United States in which the
costs of driving an automobile in connec-
tion with the performance of services as
an employee of the employer are generally
paid or incurred by the employee. Thus,
for purposes of determining the amount
of fixed costs, the base locality is gen-
erally the geographic locality or region
in which the employee resides. For pur-
poses of determining the amount of vari-
able costs, the base locality is generally the
geographic locality or region in which the
employee drives the automobile in connec-
tion with the performance of services as an
employee of the employer.
(5)Standard automobile.Astandard
automobile is the automobile selected by
the payor on which a specific FAVR al-
lowance is based.
(6)Standard automobile cost.Thestan-
dard automobile cost for a calendar year
may not exceed 95 percent of the sum of
(a) the retail dealer invoice cost of the stan-
dard automobile in the base locality, and
(b) state and local sales or use taxes appli-
cable on the purchase of the automobile.
Further, the standard automobile cost may
not exceed $27,200.
(7)Annual mileage. Annual mileage is
the total mileage (business and personal)
a payor reasonably projects a standard au-
tomobile will be driven during a calendar
year. Annual mileage equals the annual
business mileage divided by the business
use percentage.
(8)Annual business mileage. Annual
business mileage is the mileage a payor
reasonably projects a standard automobile
will be driven by an employee in connec-
tion with the performance of services as an
employee of the employer during the cal-
endar year, but may not be less than 6,250
miles for a calendar year. Annual business
mileage equals the annual mileage multi-
plied by the business use percentage.
(9)Business use percentage. A busi-
ness use percentage is determined by
dividing the annual business mileage by
the annual mileage. The business use
percentage may not exceed 75 percent.
In lieu of demonstrating the reasonable-
ness of the business use percentage based
2008–50 I.R.B.1289December 15, 2008

on records of total mileage and business
mileage driven by the employees annually,
a payor may use a business use percentage
that is less than or equal to the following
percentages for a FAVR allowance that
is paid for the following annual business
mileage:
Annual business mileageBusiness use percentage
6,250 or more but less than 10,00045 percent
10,000 or more but less than 15,00055 percent
15,000 or more but less than 20,00065 percent
20,000 or more
75 percent
(10)Retention period. A retention pe-
riod is the period in calendar years selected
by the payor during which the payor ex-
pectsanemployeetodriveastandardauto-
mobile in connection with the performance
of services as an employee of the employer
before the automobile is replaced. The
period may not be less than two calendar
years.
(11)Retention mileage. Retention
mileage is the annual mileage multiplied
by the number of calendar years in the
retention period.
(12)Residual value. The residual value
of a standard automobile is the projected
amount for which it could be sold at the
end of the retention period after being
driven the retention mileage. The Ser-
vice will accept the following safe harbor
residual values for a standard automobile
computed as a percentage of the standard
automobile cost:
Retention periodResidual value
2-year70 percent
3-year60 percent
4-year
50 pe
rcent
.03FAVR allowance in lieu of fixed and
variable costs.
(1) A reimbursement computed using
a FAVR allowance is in lieu of the em-
ployee’s deduction of all the fixed and
variable costs paid or incurred by an em-
ployee in driving the automobile in con-
nection with the performance of services
as an employee of the employer, except
as provided in section 9.06 of this rev-
enue procedure. Items such as deprecia-
tion (or lease payments), maintenance and
repairs, tires, gasoline (including all taxes
thereon), oil, insurance, license and reg-
istration fees, and personal property taxes
are included in fixed and variable costs for
this purpose.
(2) Parking fees and tolls attributable to
an employee driving the standard automo-
bile in connection with the performance of
services as an employee of the employer
are not included in fixed and variable costs
and may be deducted as separate items.
Similarly, interest relating to the purchase
of the standard automobile may be de-
ducted as a separate item, but only to the
extent that the interest is an allowable de-
duction under § 163.
.04Depreciation.
(1) A FAVR allowance may not be paid
with respect to an automobile for which the
employee has (a) claimed depreciation us-
ing a method other than straight-line for its
estimated useful life, (b) claimed a § 179
deduction, (c) claimed the special depreci-
ation allowance under § 168(k), or (d) used
ACRS under former § 168 or MACRS un-
der current § 168. If an employee uses
actual costs for an owned automobile that
has been covered by a FAVR allowance,
the employee must use straight-line depre-
ciation for the automobile’s remaining es-
timated useful life (subject to the applica-
ble depreciation deduction limitations un-
der § 280F).
(2) Except as provided in section
8.04(3) of this revenue procedure, the total
amount of the depreciation component for
the retention period taken into account in
computing the periodic fixed payments
for that retention period may not exceed
the excess of the standard automobile cost
over the residual value of the standard
automobile. In addition, the total amount
of the depreciation component may not
exceed the sum of the annual § 280F lim-
itations on depreciation (in effect at the
beginning of the retention period) that ap-
ply to the standard automobile during the
retention period.
(3) If the depreciation component of pe-
riodic fixed payments exceeds the limi-
tations in section 8.04(2) of this revenue
procedure, that section will be treated as
satisfied in any year during which the to-
tal annual amount of the periodic fixed
payments and the periodic variable pay-
ments made to an employee driving 80 per-
cent of the annual business mileage of the
standard automobile does not exceed the
amount obtained by multiplying 80 per-
cent of the annual business mileage of the
standard automobile by the business stan-
dard mileage rate for that year (under sec-
tion 5.01 of the applicable revenue proce-
dure).
(4) The depreciation included in each
periodic fixed payment portion of a FAVR
allowance paid with respect to an automo-
bile reduces the basis of the automobile
(but not below zero) in determining ad-
justedbasisasrequiredby§1016.See
section 8.07(2) of this revenue procedure
for the requirement that the employer re-
port the depreciation component of a peri-
odic fixed payment to the employee.
.05FAVR allowance limitations.
(1) A FAVR allowance may be paid
only to an employee who substantiates to
the payor for a calendar year at least 5,000
miles driven in connection with the perfor-
mance of services as an employee of the
employer or, if greater, 80 percent of the
December 15, 200812902008–50 I.R.B.

annual business mileage of that FAVR al-
lowance. If the employee is covered by
the FAVR allowance for less than the en-
tire calendar year, these limits may be pro-
ratedonamonthlybasis.
(2) A FAVR allowance may not be
paid to a control employee (as defined
in § 1.61–21(f)(5) and (6), excluding
the $100,000 limitation in paragraph
(f)(5)(iii)).
(3) An employer may not pay a FAVR
allowance if at any time during a calendar
year a majority of the employees covered
by the FAVR allowance are management
employees.
(4) An employer may not pay a FAVR
allowance to any employee unless at all
times during a calendar year at least five
employees in total are covered by FAVR
allowances provided by the employer.
(5) A FAVR allowance may be paid
only with respect to an automobile (a)
owned or leased by the employee receiv-
ing the payment, (b) the cost of which, as
a new vehicle (whether or not purchased
new by the employee), was at least 90 per-
cent of the standard automobile cost taken
into account for purposes of determining
the FAVR allowance for the first calendar
year the employee receives the allowance
with respect to that automobile, and (c) the
model year of which does not differ from
the current calendar year by more than the
number of years in the retention period.
(6) A FAVR allowance may not be paid
with respect to an automobile leased by
an employee for which the employee has
used actual expenses to compute the de-
ductible business expenses of the automo-
bile for any year during the entire lease pe-
riod. For a lease commencing on or before
December 31, 1997, the “entire lease pe-
riod” means the portion of the lease period
(including renewals) remaining after that
date.
(7) The insurance cost component of
a FAVR allowance must be based on the
rates charged in the base locality for in-
surance coverage on the standard automo-
bile during the current calendar year with-
out taking into account rate-increasing fac-
tors such as poor driving records or young
drivers.
(8) A FAVR allowance may be paid
only to an employee whose insurance cov-
erage limits on the automobile with respect
to which the FAVR allowance is paid are at
least equal to the insurance coverage lim-
its used to compute the periodic fixed pay-
ment under that FAVR allowance.
.06Employee reporting. Within 30
days after an employee’s automobile is
initially covered by a FAVR allowance,
or is again covered by a FAVR allowance
if coverage has lapsed, the employee by
written declaration must provide the payor
with the following information: (1) the
make, model, and year of the employee’s
automobile, (2) written proof of the insur-
ance coverage limits on the automobile,
(3) the odometer reading of the automo-
bile, (4) if owned, the purchase price of
the automobile or, if leased, the price at
which the automobile is ordinarily sold by
retailers (the gross capitalized cost of the
automobile), and (5) if owned, whether
the employee has claimed depreciation
with respect to the automobile using any
of the depreciation methods prohibited by
section 8.04(1) of this revenue procedure
or, if leased, whether the employee has
computed deductible business expenses
with respect to the automobile using actual
expenses. The information described in
(1), (2), and (3) of the preceding sentence
also must be supplied by the employee
to the payor within 30 days after the be-
ginning of each calendar year that the
employee’s automobile is covered by a
FAVR allowance.
.07Payor recordkeeping and reporting.
(1) The payor or its agent must main-
tain written records setting forth (a) the sta-
tistical data and projections on which the
FAVR allowance payments are based, and
(b) the information provided by the em-
ployees pursuant to section 8.06 of this
revenue procedure.
(2) Within 30 days of the end of each
calendar year, the employer must pro-
vide each employee covered by a FAVR
allowance during that year with a state-
ment that, for automobile owners, lists
the amount of depreciation included in
each periodic fixed payment portion of the
FAVR allowance paid during that calen-
dar year and explains that by receiving a
FAVR allowance the employee has elected
to exclude the automobile from the Mod-
ified Accelerated Cost Recovery System
pursuant to § 168(f)(1). For automobile
lessees, the statement must explain that
by receiving the FAVR allowance the em-
ployee may not compute the deductible
business expenses of the automobile using
actual expenses for the entire lease period
(including renewals). For a lease com-
mencing on or before December 31, 1997,
the “entire lease period” means the portion
of the lease period (including renewals)
remaining after that date.
.08Failure to meet section 8 require-
ments. If an employee receives a mileage
allowance that fails to meet one or more
of the requirements of section 8 of this
revenue procedure, the employee may not
be treated as covered by any FAVR al-
lowance of the payor during the period of
the failure. Nevertheless, the expenses to
which that mileage allowance relates may
be deemed substantiated using the method
described in sections 5, 9.01(1), and 9.02
of this revenue procedure to the extent the
requirements of those sections are met.
SECTION 9. APPLICATION
.01 If a payor pays a mileage allowance
in lieu of reimbursing actual transportation
expenses incurred or to be incurred by an
employee, the amount of the expenses that
is deemed substantiated to the payor is ei-
ther:
(1) for any mileage allowance other
than a FAVR allowance, the lesser of the
amount paid under the mileage allowance
or the applicable standard mileage rate
in section 5.01 of this revenue procedure
multiplied by the number of business miles
substantiated by the employee; or
(2) for a FAVR allowance, the amount
paid under the FAVR allowance less the
sum of (a) any periodic variable rate pay-
ment that relates to miles in excess of the
business miles substantiated by the em-
ployee and that the employee fails to re-
turn to the payor although required to do
so, (b) any portion of a periodic fixed pay-
ment that relates to a period during which
the employee is treated as not covered by
the FAVR allowance and that the employee
fails to return to the payor although re-
quired to do so, and (c) any optional high
mileage payments.
.02 If the amount of transportation ex-
penses is deemed substantiated under the
rulesprovidedinsection9.01ofthisrev-
enue procedure, and the employee actually
substantiates to the payor the elements of
time, place (or use), and business purpose
of the transportation expenses in accor-
dance with paragraphs (b)(2) (travel away
from home) and (b)(6) (listed property,
which includes passenger automobiles and
2008–50 I.R.B.1291December 15, 2008

any other property used as a means of
transportation) of § 1.274–5T, and para-
graph (c) of § 1.274–5, the employee is
deemed to satisfy the adequate account-
ing requirements of § 1.274–5(f) as well
as the requirement to substantiate by ade-
quate records or other sufficient evidence
for purposes of § 1.274–5(c).See also
§ 1.62–2(e)(1) for the rule that, in order to
satisfy the substantiation requirement of an
accountable plan, an arrangement must re-
quire business expenses to be substantiated
to the payor within a reasonable period of
time.
.03 An arrangement providing mileage
allowances will be treated as satisfying the
requirement of § 1.62–2(f)(2) with respect
to returning amounts in excess of expenses
as follows:
(1) For a mileage allowance (other
than a FAVR allowance) paid only at a
cents-per-mile rate,the requirement to
return excess amounts is treated as satis-
fied if the employee is required to return
within a reasonable period of time (as de-
fined in § 1.62–2(g)) any portion of the
allowance that relates to miles of travel
not substantiated by the employee, even
though the arrangement does not require
the employee to return the portion of the
allowance that relates to the miles of travel
substantiated and that exceeds the amount
of the employee’s expenses deemed sub-
stantiated. For example, assume a payor
provides an employee an advance mileage
allowance of $120.00 based on an antic-
ipated 200 business miles at 60 cents per
mile (at a time when the business standard
mileage rate is 55 cents per mile), and
the employee substantiates 120 business
miles. The requirement to return excess
amounts is treated as satisfied if the em-
ployee is required to return the portion
of the allowance that relates to the 80
unsubstantiated business miles ($48.00)
even though the employee is not required
to return the portion of the allowance
($6.00) that exceeds the amount of the em-
ployee’s expenses deemed substantiated
under section 9.01 of this revenue pro-
cedure ($66.00) for the 120 substantiated
business miles. However, the $6.00 excess
portion of the allowance is treated as paid
under a nonaccountable plan as discussed
in section 9.05.
(2) For a mileage allowance (other than
a FAVR allowance) paid other than only
at a cents-per-mile rate, the requirement
to return excess amounts is treated as sat-
isfied if the employee is required to re-
turn within a reasonable period of time
(as defined in § 1.62–2(g)) any portion
of the allowance that exceeds the prod-
uct of the standard mileage rate and the
number of miles of travel substantiated by
the employee. For example, assume a
payor provides an employee an advance
mileage allowance of $400 per month plus
20 cents per mile based on an anticipated
2000 miles for a total of $800 (at a time
when the business standard mileage rate
is 55 cents per mile), and the employee
substantiates 1000 business miles. The
requirement to return excess amounts is
treated as satisfied if the employee is re-
quired to return $250, the portion of the
allowance that exceeds the product of the
standard mileage rate and the miles sub-
stantiated ($550).
(3) For a FAVR allowance, the require-
ment to return excess amounts is treated
as satisfied if the employee is required to
return, within a reasonable period of time
(as defined in § 1.62–2(g)), (a) the portion
(if any) of the periodic variable payment
received that relates to miles in excess of
the business miles substantiated by the em-
ployee, and (b) the portion (if any) of a pe-
riodic fixed payment that relates to a pe-
riod during which the employee was not
covered by the FAVR allowance.
.04Anemployeeisnotrequiredto
include in gross income the portion of a
mileage allowance received from a payor
that is less than or equal to the amount
deemed substantiated under section 9.01
of this revenue procedure, provided the
employee substantiates in accordance with
section 9.02.See§ 1.274–5T(f)(2)(i).
Assuming that the remaining require-
ments for an accountable plan provided
in § 1.62–2 are satisfied, that portion of
the allowance is treated as paid under an
accountable plan, is not reported as wages
or other compensation on the employee’s
Form W–2, and is exempt from withhold-
ing and payment of employment taxes.
See§1.62–2(c)(2)and(c)(4).
.05 An employee is required to include
in gross income the portion of a mileage
allowance received from a payor that ex-
ceeds the amount deemed substantiated
under section 9.01 of this revenue proce-
dure, provided the employee substantiates
in accordance with section 9.02 of this rev-
enue procedure.See§ 1.274–5T(f)(2)(ii).
In addition, the excess portion of the
allowance is treated as paid under a nonac-
countable plan, is reported as wages or
other compensation on the employee’s
Form W–2, and is subject to withholding
and payment of employment taxes.See
§ 1.62–2(c)(3)(ii), (c)(5), and (h)(2)(i)(B).
.06 If an employee’s substantiated ex-
penses are less than the employee’s actual
expenses, the following rules apply:
(1) Except as otherwise provided in
section 9.06(2) of this revenue procedure
with respect to leased automobiles, if the
amount of the expenses deemed substan-
tiated under the rules provided in section
9.01 of this revenue procedure is less than
the amount of the employee’s business
transportation expenses, the employee
may claim an itemized deduction for the
amount by which the business transporta-
tion expenses exceed the amount that is
deemed substantiated, provided the em-
ployee substantiates all the business trans-
portation expenses (not just the excess
over the business standard mileage rate),
includes on Form 2106,Employee Busi-
ness Expenses, the deemed substantiated
portion of the mileage allowance received
from the payor, and includes in gross in-
come the portion (if any) of the mileage
allowance received from the payor that
exceeds the amount deemed substantiated.
See§ 1.274–5T(f)(2)(iii). However, for
purposes of claiming this itemized deduc-
tion, substantiation of the amount of the
expenses is not required if the employee
is claiming a deduction that is equal to or
less than the applicable standard mileage
rate multiplied by the number of business
miles substantiated by the employee minus
the amount deemed substantiated under
section 9.01 of this revenue procedure.
The itemized deduction is subject to the
2-percent floor on miscellaneous itemized
deductions provided in § 67.
(2) An employee whose business trans-
portation expenses with respect to a leased
automobile are deemed substantiated un-
der section 9.01(1) of this revenue proce-
dure (relating to an allowance other than a
FAVR allowance) may not claim a deduc-
tion based on actual expenses under sec-
tion 9.06(1) unless the employee does so
consistently beginning with the first busi-
ness use of the automobile after December
31, 1997. An employee whose business
transportation expenses with respect to a
leased automobile are deemed substanti-
December 15, 200812922008–50 I.R.B.

ated under section 9.01(2) of this revenue
procedure (relating to a FAVR allowance)
may not claim a deduction based on actual
expenses.
.07 An employee may deduct an
amount computed pursuant to section 5.01
of this revenue procedure only as an item-
ized deduction. This itemized deduction
is subject to the 2-percent floor on miscel-
laneous itemized deductions provided in
§ 67.
.08 A self-employed individual may
deduct an amount computed pursuant to
section 5.01 of this revenue procedure in
determining adjusted gross income under
§ 62(a)(1).
.09 If a payor’s reimbursement or
other expense allowance arrangement ev-
idences a pattern of abuse of the rules of
§ 62(c) and the regulations thereunder,
all payments under the arrangement will
be treated as made under a nonaccount-
able plan.See§ 1.62–2(k) and Rev. Rul.
2006–56. Thus, the payments are included
in the employee’s gross income, are re-
ported as wages or other compensation on
the employee’s Form W–2, and are subject
to withholding and payment of employ-
ment taxes.See§ 1.62–2(c)(3), (c)(5), and
(h)(2), and section 10.03 of this revenue
procedure.
SECTION 10. WITHHOLDING AND
PAYMENT OF EMPLOYMENT TAXES
.01 The portion of a mileage allowance
(other than a FAVR allowance), if any,
that relates to the miles of business travel
substantiated and that exceeds the amount
deemed substantiated for those miles un-
der section 9.01(1) of this revenue pro-
cedure is treated as paid under a nonac-
countable plan and is subject to withhold-
ing and payment of employment taxes.See
§ 1.62–2(h)(2)(i)(B).
(1) In the case of a mileage allowance
paid as a reimbursement, the excess de-
scribed in section 10.01 of this revenue
procedure is subject to withholding and
payment of employment taxes in the pay-
roll period in which the payor reimburses
the expenses for the business miles sub-
stantiated.See§ 1.62–2(h)(2)(i)(B)(2).
(2) In the case of a mileage allowance
paid as an advance, the excess described in
section 10.01 of this revenue procedure is
subject to withholding and payment of em-
ployment taxes no later than the first pay-
roll period following the payroll period in
which the business miles with respect to
which the advance was paid are substanti-
ated.See§ 1.62–2(h)(2)(i)(B)(3). If some
or all of the business miles with respect
to which the advance was paid are not
substantiated within a reasonable period
of time and the employee does not return
the portion of the allowance that relates to
those miles within a reasonable period of
time, the portion of the allowance that re-
lates to those miles is subject to withhold-
ing and payment of employment taxes no
later than the first payroll period follow-
ing the end of the reasonable period.See
§ 1.62–2(h)(2)(i)(A).
(3) In the case of a mileage allowance
that is not computed on the basis of a
fixed amount per mile of travel (for ex-
ample, a mileage allowance that combines
periodic fixed and variable rate payments,
but that does not satisfy the requirements
of section 8 of this revenue procedure),
the payor must compute periodically (no
less frequently than quarterly) the amount,
if any, that exceeds the amount deemed
substantiated under section 9.01(1) of this
revenue procedure by comparing the total
mileage allowance paid for the period to
the standard mileage rate in section 5.01
of this revenue procedure multiplied by the
number of business miles substantiated by
the employee for the period. Any excess
is subject to withholding and payment of
employment taxes no later than the first
payroll period following the payroll pe-
riod in which the excess is computed.See
§ 1.62–2(h)(2)(i)(B)(4).
(4) For example, assume an employer
pays its employees a mileage allowance
under an arrangement that otherwise meets
the requirements of an accountable plan at
a rate of 60 cents per mile (when the busi-
ness standard mileage rate is 55 cents per
mile). The employer does not require the
return of the portion of the allowance that
exceeds the business standard mileage rate
for the business miles substantiated (5.0
cents). In June, the employer advances an
employee $300.00 for 500 miles to be trav-
eled during the month. In July, the em-
ployee substantiates to the employer 400
businessmilestraveledinJuneandre-
turns $60.00 to the employer for the 100
business miles not traveled. The amount
deemed substantiated for the 400 miles
traveled is $220.00 and the employee is
not required to return $20.00. No later
than the first payroll period following the
payroll period in which the 400 business
miles traveled are substantiated, the em-
ployer must withhold and pay employment
taxes on $20.00.
.02 The portion of a FAVR allowance,
if any, that exceeds the amount deemed
substantiated for those miles under section
9.01(2) of this revenue procedure is sub-
ject to withholding and payment of em-
ployment taxes.See§ 1.62–2(h)(2)(i)(B).
(1) Any periodic variable rate payment
that relates to miles in excess of the busi-
ness miles substantiated by the employee
and that the employee fails to return within
a reasonable period, or any portion of a pe-
riodic fixed payment that relates to a pe-
riod during which the employee is treated
as not covered by the FAVR allowance and
that the employee fails to return within a
reasonable period, is subject to withhold-
ing and payment of employment taxes no
later than the first payroll period follow-
ing the end of the reasonable period.See
§ 1.62–2(h)(2)(i)(A).
(2) Any optional high mileage payment
is subject to withholding and payment of
employment taxes when paid.
.03 If a mileage allowance arrange-
ment has no mechanism or process to
determine when an allowance exceeds the
amount that may be deemed substantiated
and the arrangement routinely pays al-
lowances in excess of the amount that may
be deemed substantiated without requiring
actual substantiation of all the expenses
or repayment of the excess amount, the
failure of the arrangement to treat the ex-
cess allowances as wages for employment
tax purposes causes all payments made
under the arrangement to be treated as
made under a nonaccountable plan un-
der §1.62–2(k). Therefore, all payments
made under the arrangement are subject to
withholding and payment of employment
taxes.SeeRev. Rul. 2006–56 and § 9.09
of this revenue procedure.
SECTION 11. EFFECTIVE DATE
This revenue procedure is effective
for (1) deductible transportation expenses
paid or incurred on or after January 1,
2009, and (2) mileage allowances or re-
imbursements paid to an employee or
to a charitable volunteer (a) on or after
January 1, 2009, and (b) with respect to
transportation expenses paid or incurred
2008–50 I.R.B.1293December 15, 2008

by the employee or charitable volunteer
on or after January 1, 2009.
SECTION 12. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2007–70 and Announce-
ment 2008–63 are superseded.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Bernard P. Harvey of the Of-
fice of Associate Chief Counsel (Income
Tax and Accounting). For further infor-
mation regarding this revenue procedure,
contact Mr. Harvey at (202) 622–4930
(not a toll-free call).
December 15, 200812942008–50 I.R.B.

Part IV. Items o
fGeneralInterest
Instructions
in Publication
1187, Specifi
cations for Filing
of Form 1042–S
,Foreign
Person’s U.S
. Source Income
Subject to Wi
thholding,
Electronic
ally,Clarified
Announcement 2008–119
This announcement clarifies instruc-
tions in Publication 1187,Specifications
for Filing of Form 1042–S, Foreign Per-
son’s U.S. Source Income Subject to With-
holding, Electronically.Forall‘City’ad-
dress fields in the Transmitter ‘T’ Record,
the Withholding Agent ‘W’ Record, and
the Recipient ‘Q’ Record, only enter alpha
characters and those special characters
identified within the instructions. Donot
input any numeric or foreign characters
in these fields. Entering numeric or for-
eign characters in ‘City’ address fields
will cause your file to be rejected. Use
this announcement in conjunction with
Publication 1187, revised August 2008
and Announcement 2008–95, 2008–42
I.R.B. 964, to format your Form 1042–S
information for Tax Year 2008.
If you have questions concerning the
filing of Form 1042–S,Foreign Per-
son’s U.S. Source Income Subject to
Withholding, please contact the Inter-
nal Revenue Service ECC-MTB toll-free
at 866–455–7438 within the U.S. or
304–263–8700 outside the U.S.
Foundations Status of Certain
Organizations
Announcement 2008–120
The following o
rganizations have failed
to establish or
have been unable to main-
tain their stat
us as public charities or as op-
erating founda
tions. Accordingly, grantors
and contribut
ors may not, after this date,
rely on previo
us rulings or designations
in the Cumulat
ive List of Organizations
(Publication
78), or on the presumption
arising from t
he filing of notices under sec-
tion 508(b) o
f the Code. This listing does
notindicate
that the organizations have lost
their status a
s organizations described in
section 501(c
)(3), eligible to receive de-
ductible cont
ributions.
Former Public
Charities. The follow-
ing organizat
ions (which have been treated
as organizati
ons that are not private foun-
dations descr
ibed in section 509(a) of the
Code) are now
classified as private foun-
dations:
3D Athletics
, Inc., Denison, TX
After School
Community Learning
Center, Wing
ate, NC
Alpha and Ome
ga Fraternity, Inc.,
Goose Creek,
SC
Arkansas Com
mittee on Occupational
Safety & Heal
th, Little Rock, AR
Asociacion M
ision Latina, Galand, TX
BJ Connectiv
e Concepts, Inc.,
Cincinnati,
OH
Center for Ed
ucator Renewal Through the
Arts, Housto
n, TX
Center for th
e Advancement of Health
and Bioscien
ces, Menlo Park, CA
Change Your W
orld, Inc., Ridgeland, MS
Changing Fac
es, Detroit, MI
Charis Corpo
ration, Inc., Jacksonville, FL
Concert Amer
ica for the Children, Inc.,
Norwood, NC
Confidence L
earning Center,
Florissant,
MO
Covenant Lif
e Ministries International,
Inc., Hampto
n, GA
Creative Hou
sing Coalition,
Lacanada, CA
Crescent Cit
y Case Management, Inc.,
Richmond, TX
DNA Economic
Development
Corporation
, Inc., Washington, DC
Edna Herbert
Phillips Endowment, Inc.,
Schulenburg
,TX
Enterprise f
or Enterprenerrial Education,
Hickory, NC
Exile Altern
ative Diversion Program
a California
Nonprofit Public Bene,
Richmond, C
A
Family Buil
ding Institute, Inc., Sussex, WI
Family Supp
ort Circle, McDonough, GA
First Commun
ity Outreach Center, Inc.,
Kansas City
,KS
God Cares Min
istries, Denver, CO
Happy Tails A
nimal Care Center,
Monticello
,IN
Hogar Amparo
, Inc., San Juan, PR
Julian Youth C
enter, Memphis, TN
Just Us, Inc., D
allas, TX
Life Long Indiv
idual and Family
Enrichment Cen
ter, Inc., Hampton, GA
Lighthouse Com
munity Information and
Referral, Inc.
, Harrisburg, PA
MCPBA Foundati
on, Inc., Miami, FL
New Life Instit
ute Hopecenter, Inc.,
Haslett, MI
Peoples Advoca
cy Group,
Washington, D
C
Phi Iota Iota Fo
undation, LaPlace, LA
Plano Institut
e, Richmond Heights, OH
Positive Image
Program, Chicago, IL
Project H.O.M.
E., Inc., Bronx, NY
Rainbow Women W
ellness & Resource
Center, Grants
,NM
Renaissance Ou
treach Services,
Raleigh, NC
Sailing Aboard
Recovery Foundation,
Inc., Catonsvi
lle, MD
Shekinah Glory
Helping Hand Services
Corp., Miami, F
L
Sierras Center
, LTD, Danielsville, GA
South Shore Lin
e Heritage Foundation,
Gary, IN
Stratford Comm
unity Alliance Network,
Dallas, TX
Village Group P
artner’s Inc.,
Bradenton, FL
Whole Village,
Inc.,Amite,LA
Worldview Inst
itute, Coral Gables, FL
Young Athletes
for Tomorrow, Detroit, MI
Youth Challeng
e, Inc., Columbus, MS
Yuma Tennis, In
c., Yuma, AZ
If an organizat
ion listed above submits
information th
at warrants the renewal of
its classifica
tion as a public charity or as
a private oper
ating foundation, the Inter-
nal Revenue Se
rvicewillissuearulingor
determinatio
nletterwiththerevisedclas-
sification as
to foundation status. Grantors
and contribut
ors may thereafter rely upon
such ruling or
determination letter as pro-
vided in sect
ion 1.509(a)–7 of the Income
Tax Regulati
ons. It is not the practice of
the Service t
o announce such revised clas-
sification o
f foundation status in the Inter-
nal Revenue
Bulletin.
2008–50 I.R.B.1295December 15, 2008

Employee Stock Purchase
Plans Under Internal Revenue
Code Section 423; Hearing
Announcement 2008–121
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on pro-
posed rulemaking.
SUMMARY: This document provides
notice of a public hearing on proposed
regulations (REG–106251–08, 2008–39
I.R.B. 774) relating to options granted
under an employee stock purchase plan as
defined in section 423 of the Internal Rev-
enue Code. These proposed regulations
affect certain taxpayers who participate in
the transfer of stock pursuant to the exer-
cise of options granted under an employee
stock purchase plan.
DATES: The public hearing is being
held on Thursday, January 15, 2009, at
10:00 a.m. The IRS must receive outlines
of the topics to be discussed at the public
hearing by Thursday, December 18, 2008.
ADDRESSES: The public hearing is being
held in the IRS Auditorium, Internal Rev-
enue Service Building, 1111 Constitution
Avenue, NW, Washington, DC 20224.
Send Submissions to CC:PA:LPD:PR
(REG–106251–08), room 5205, Internal
Revenue Service, P.O. Box 7604, Ben
Franklin Station, Washington, DC 20044.
Submissions may be hand-delivered Mon-
day through Friday to CC:PA:LPD:PR
(REG–106251–08), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitu-
tion Avenue, NW, Washington, DC, or
sent electronically via the Federal eRule-
making Portal atwww.regulations.gov
(IRS-REG–106251–08).
FOR FURTHER INFORMATION
CONTACT: Concerning the regulations,
Thomas Scholz (202) 622–6030; concern-
ing submissions of comments, the hearing
and/or to be placed on the building access
list to attend the hearing Funmi Taylor at
(202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
The subject of the public hearing
is the notice of proposed rulemaking
(REG–106251–08) that was published in
theFederal Registeron Tuesday, July 29,
2008 (73 FR 43875).
The rules of 26 CFR 601.601(a)(3) ap-
ply to the hearing. Persons who wish to
present oral comments at the hearing that
submitted written comments by October
27, 2008, must submit an outline of the
topics to be addressed and the amount of
time to be denoted to each topic (Signed
original and eight (8) copies)
A period of 10 minutes is allotted to
each person for presenting oral comments.
After the deadline for receiving out-
lines has passed, the IRS will prepare an
agenda containing the schedule of speak-
ers. Copies of the agenda will be made
available, free of charge, at the hearing or
in the Freedom of Information Reading
Room (FOIA RR) (Room 1621) which
is located at the 11
th
and Pennsylvania
Avenue, NW, entrance, 1111 Constitution
Avenue, NW, Washington, DC.
Because of access restrictions, the IRS
will not admit visitors beyond the imme-
diateentranceareamorethan30minutes
before the hearing starts. For informa-
tion about having your name placed on
the building access list to attend the hear-
ing, see the “FOR FURTHER INFORMA-
TION CONTACT” section of this docu-
ment.
LaNita Van Dyke,
Chief, Publications and
Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on November 21,
2008, 8:45 a.m., and published in the issue of the Federal
Register for November 24, 2008, 73 F.R. 70929)
December 15, 200812962008–50 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 rulings
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.
2008–50 I.R.B.iDecember 15, 2008

Numerical Finding List
1
Bulletins 2008–27 through 2008–50
Announcements:
2008-62, 2008-27 I.R.B.74
2008-63, 2008-28 I.R.B.114
2008-64, 2008-28 I.R.B.114
2008-65, 2008-31 I.R.B.279
2008-66, 2008-29 I.R.B.164
2008-67, 2008-29 I.R.B.164
2008-68, 2008-30 I.R.B.244
2008-69, 2008-32 I.R.B.318
2008-70, 2008-32 I.R.B.318
2008-71, 2008-32 I.R.B.321
2008-72, 2008-32 I.R.B.321
2008-73, 2008-33 I.R.B.391
2008-74, 2008-33 I.R.B.392
2008-75, 2008-33 I.R.B.392
2008-76, 2008-33 I.R.B.393
2008-77, 2008-33 I.R.B.394
2008-78, 2008-34 I.R.B.453
2008-79, 2008-35 I.R.B.568
2008-80, 2008-37 I.R.B.706
2008-81, 2008-37 I.R.B.706
2008-82, 2008-37 I.R.B.708
2008-83, 2008-37 I.R.B.709
2008-84, 2008-38 I.R.B.748
2008-85, 2008-38 I.R.B.749
2008-86, 2008-40 I.R.B.843
2008-87, 2008-40 I.R.B.843
2008-88, 2008-40 I.R.B.843
2008-89, 2008-40 I.R.B.844
2008-90, 2008-41 I.R.B.896
2008-91, 2008-42 I.R.B.963
2008-92, 2008-42 I.R.B.963
2008-93, 2008-41 I.R.B.896
2008-94, 2008-42 I.R.B.964
2008-95, 2008-42 I.R.B.964
2008-96, 2008-43 I.R.B.1010
2008-97, 2008-43 I.R.B.1010
2008-98, 2008-44 I.R.B.1087
2008-99, 2008-44 I.R.B.1089
2008-100, 2008-44 I.R.B.1090
2008-101, 2008-44 I.R.B.1090
2008-102, 2008-43 I.R.B.1011
2008-103, 2008-46 I.R.B.1161
2008-104, 2008-45 I.R.B.1136
2008-105, 2008-48 I.R.B.1219
2008-106, 2008-45 I.R.B.1137
2008-107, 2008-46 I.R.B.1162
2008-108, 2008-46 I.R.B.1165
2008-109, 2008-46 I.R.B.1166
2008-110, 2008-48 I.R.B.1224
2008-111, 2008-48 I.R.B.1224
2008-112, 2008-47 I.R.B.
1199
2008-113, 2008-47 I.R.B.1199
Announcements— Continued:
2008-114, 2008-48 I.R.B.1226
2008-115, 2008-48 I.R.B.1228
2008-116, 2008-48 I.R.B.1230
2008-117, 2008-49 I.R.B.1258
2008-118, 2008-49 I.R.B.1258
2008-119, 2008-50 I.R.B.1295
2008-120, 2008-50 I.R.B.1295
2008-121, 2008-50 I.R.B.1296
Court Decisions:
2087, 2008-41 I.R.B.845
Notices:
2008-55, 2008-27 I.R.B.11
2008-56, 2008-28 I.R.B.79
2008-57, 2008-28 I.R.B.80
2008-58, 2008-28 I.R.B.81
2008-59, 2008-29 I.R.B.123
2008-60, 2008-30 I.R.B.178
2008-61, 2008-30 I.R.B.180
2008-62, 2008-29 I.R.B.130
2008-63, 2008-31 I.R.B.261
2008-64, 2008-31 I.R.B.268
2008-65, 2008-30 I.R.B.182
2008-66, 2008-31 I.R.B.270
2008-67, 2008-32 I.R.B.307
2008-68, 2008-34 I.R.B.418
2008-69, 2008-34 I.R.B.419
2008-70, 2008-36 I.R.B.575
2008-71, 2008-35 I.R.B.462
2008-72, 2008-43 I.R.B.998
2008-73, 2008-38 I.R.B.717
2008-74, 2008-38 I.R.B.718
2008-75, 2008-38 I.R.B.719
2008-76, 2008-39 I.R.B.768
2008-77, 2008-40 I.R.B.814
2008-78, 2008-41 I.R.B.851
2008-79, 2008-40 I.R.B.815
2008-80, 2008-40 I.R.B.820
2008-81, 2008-41 I.R.B.852
2008-82, 2008-41 I.R.B.853
2008-83, 2008-42 I.R.B.905
2008-84, 2008-41 I.R.B.855
2008-85, 2008-42 I.R.B.905
2008-86, 2008-42 I.R.B.925
2008-87, 2008-42 I.R.B.930
2008-88, 2008-42 I.R.B.933
2008-89, 2008-43 I.R.B.999
2008-90, 2008-43 I.R.B.1000
2008-91, 2008-43 I.R.B.1001
2008-92, 2008-43 I.R.B.1001
2008-93, 2008-43 I.R.B.1002
2008-94, 2008-44 I.R.B.1070
2008-95, 2008-44 I.R.B.1076
2008-96, 2008-44 I.R.B.1077
Notices— Continued:
2008-97, 2008-44 I.R.B.1080
2008-98, 2008-44 I.R.B.1080
2008-99, 2008-47 I.R.B.1194
2008-100, 2008-44 I.R.B.1081
2008-101, 2008-44 I.R.B.1082
2008-102, 2008-45 I.R.B.1106
2008-103, 2008-46 I.R.B.1156
2008-105, 2008-48 I.R.B.1208
2008-106, 2008-49 I.R.B.1239
2008-107, 2008-50 I.R.B.1265
2008-108, 2008-50 I.R.B.1275
2008-109, 2008-50 I.R.B.1282
Proposed Regulations:
REG-209006-89, 2008-41 I.R.B.867
REG-157711-02, 2008-44 I.R.B.1087
REG-143544-04, 2008-42 I.R.B.947
REG-160868-04, 2008-45 I.R.B.1115
REG-161695-04, 2008-37 I.R.B.699
REG-164965-04, 2008-34 I.R.B.450
REG-142339-05, 2008-45 I.R.B.1116
REG-143453-05, 2008-32 I.R.B.310
REG-146895-05, 2008-37 I.R.B.700
REG-155087-05, 2008-38 I.R.B.726
REG-164370-05, 2008-46 I.R.B.1157
REG-142680-06, 2008-35 I.R.B.565
REG-156779-06, 2008-46 I.R.B.1160
REG-120476-07, 2008-36 I.R.B.679
REG-120844-07, 2008-39 I.R.B.770
REG-128841-07, 2008-45 I.R.B.1124
REG-129243-07, 2008-27 I.R.B.32
REG-138355-07, 2008-32 I.R.B.311
REG-140029-07, 2008-40 I.R.B.828
REG-142040-07, 2008-34 I.R.B.451
REG-142333-07, 2008-43 I.R.B.1008
REG-149404-07, 2008-40 I.R.B.839
REG-149405-07, 2008-27 I.R.B.73
REG-100464-08, 2008-32 I.R.B.313
REG-101258-08, 2008-28 I.R.B.111
REG-102122-08, 2008-31 I.R.B.278
REG-102822-08, 2008-38 I.R.B.744
REG-103146-08, 2008-37 I.R.B.701
REG-106251-08, 2008-39 I.R.B.774
REG-107318-08, 2008-45 I.R.B.1131
REG-115457-08, 2008-33 I.R.B.390
REG-118327-08, 2008-48 I.R.B.1218
REG-121698-08, 2008-29 I.R.B.163
Revenue Procedures:
2008-32, 2008-28 I.R.B.82
2008-33, 2008-28 I.R.B.93
2008-34, 2008-27 I.R.B.13
2008-35, 2008-29 I.R.B.132
2008-36, 2008-33 I.R.B.340
2008-37, 2008-29 I.R.B.137
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2008–1 through 2008–26 is in Internal Revenue Bulletin
2008–26, dated June 30, 2008.
December 15, 2008ii2008–50 I.R.B.

Revenue Procedures— Continued:
2008-38, 2008-29 I.R.B.139
2008-39, 2008-29 I.R.B.143
2008-40, 2008-29 I.R.B.151
2008-41, 2008-29 I.R.B.155
2008-42, 2008-29 I.R.B.160
2008-43, 2008-30 I.R.B.186
2008-44, 2008-30 I.R.B.187
2008-45, 2008-30 I.R.B.224
2008-46, 2008-30 I.R.B.238
2008-47, 2008-31 I.R.B.272
2008-48, 2008-36 I.R.B.586
2008-49, 2008-34 I.R.B.423
2008-50, 2008-35 I.R.B.464
2008-51, 2008-35 I.R.B.562
2008-52, 2008-36 I.R.B.587
2008-53, 2008-36 I.R.B.678
2008-54, 2008-38 I.R.B.722
2008-55, 2008-39 I.R.B.768
2008-56, 2008-40 I.R.B.826
2008-57, 2008-41 I.R.B.855
2008-58, 2008-41 I.R.B.856
2008-59, 2008-41 I.R.B.857
2008-60, 2008-43 I.R.B.1006
2008-61, 2008-42 I.R.B.934
2008-62, 2008-42 I.R.B.935
2008-63, 2008-42 I.R.B.946
2008-64, 2008-47 I.R.B.1195
2008-65, 2008-44 I.R.B.1082
2008-66, 2008-45 I.R.B.1107
2008-67, 2008-48 I.R.B.1211
2008-69, 2008-48 I.R.B.1217
2008-70, 2008-49 I.R.B.1240
2008-71, 2008-49 I.R.B.1251
2008-72, 2008-50 I.R.B.1286
Revenue Rulings:
2008-32, 2008-27 I.R.B.6
2008-33, 2008-27 I.R.B.8
2008-34, 2008-28 I.R.B.76
2008-35, 2008-29 I.R.B.116
2008-36, 2008-30 I.R.B.165
2008-37, 2008-28 I.R.B.77
2008-38, 2008-31 I.R.B.249
2008-39, 2008-31 I.R.B.252
2008-40, 2008-30 I.R.B.166
2008-41, 2008-30 I.R.B.170
2008-42, 2008-30 I.R.B.175
2008-43, 2008-31 I.R.B.258
2008-44, 2008-32 I.R.B.292
2008-45, 2008-34 I.R.B.403
2008-46, 2008-36 I.R.B.572
2008-47, 2008-39 I.R.B.760
2008-48, 2008-38 I.R.B.713
2008-49, 2008-40 I.R.B.811
2008-50, 2008-45 I.R.B.1098
2008-51, 2008-47 I.R.B.1171
2008-52, 2008-49 I.R.B.1233
Revenue Rulings— Continued:
2008-53, 2008-49 I.R.B.1231
Social Security Contribution and Benefit
Base; Domestic Employee Coverage
Threshold:
2008-103, 2008-46 I.R.B.1156
Treasury Decisions:
9401, 2008-27 I.R.B.1
9402, 2008-31 I.R.B.254
9403, 2008-32 I.R.B.285
9404, 2008-32 I.R.B.280
9405, 2008-32 I.R.B.293
9406, 2008-32 I.R.B.287
9407, 2008-33 I.R.B.330
9408, 2008-33 I.R.B.323
9409, 2008-29 I.R.B.118
9410, 2008-34 I.R.B.414
9411, 2008-34 I.R.B.398
9412, 2008-37 I.R.B.687
9413, 2008-34 I.R.B.404
9414, 2008-35 I.R.B.454
9415, 2008-36 I.R.B.570
9416, 2008-46 I.R.B.1142
9417, 2008-37 I.R.B.693
9418, 2008-38 I.R.B.713
9419, 2008-40 I.R.B.790
9420, 2008-39 I.R.B.750
9421, 2008-39 I.R.B.755
9422, 2008-42 I.R.B.898
9423, 2008-43 I.R.B.966
9424, 2008-44 I.R.B.1012
9425, 2008-45 I.R.B.1100
9426, 2008-46 I.R.B.1153
9427, 2008-47 I.R.B.1179
9428, 2008-47 I.R.B.1174
9429, 2008-47 I.R.B.1167
9430, 2008-48 I.R.B.1205
9431, 2008-49 I.R.B.1235
9432, 2008-49 I.R.B.1236
9433, 2008-50 I.R.B.1263
2008–50 I.R.B.iiiDecember 15, 2008

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2008–27 through 2008–50
Announcements:
2008-19
Superseded by
Ann. 2008-95, 2008-42 I.R.B.964
2008-63
Superseded by
Rev. Proc. 2008-72, 2008-50 I.R.B.1286
2008-64
Corrected by
Ann. 2008-71, 2008-32 I.R.B.321
2008-72
Corrected by
Ann. 2008-78, 2008-34 I.R.B.453
Notices:
88-80
Modified by
Notice 2008-79, 2008-40 I.R.B.815
99-48
Superseded by
Rev. Proc. 2008-40, 2008-29 I.R.B.151
2000-9
Obsoleted by
Rev. Proc. 2008-41, 2008-29 I.R.B.155
2004-2
Amplified by
Notice 2008-59, 2008-29 I.R.B.123
2004-50
Amplified by
Notice 2008-59, 2008-29 I.R.B.123
2005-11
Superseded by
T.D. 9425, 2008-45 I.R.B.1100
2005-91
Obsoleted by
T.D. 9422, 2008-42 I.R.B.898
2006-88
Modified and superseded by
Notice 2008-60, 2008-30 I.R.B.178
2007-22
Amplified by
Notice 2008-59, 2008-29 I.R.B.123
2007-36
Clarified, modified, and amplified by
Rev. Proc. 2008-54, 2008-38 I.R.B.722
2007-52
Updated and amplified by
Notice 2008-96, 2008-44 I.R.B.1077
Notices— Continued:
2007-53
Updated by
Notice 2008-97, 2008-44 I.R.B.1080
2008-41
Amended and supplemented by
Notice 2008-88, 2008-42 I.R.B.933
Proposed Regulations:
REG-161695-04
Corrected by
Ann. 2008-92, 2008-42 I.R.B.963
REG-143453-05
Hearing cancelled by
Ann. 2008-96, 2008-43 I.R.B.1010
REG-155087-05
Hearing scheduled by
Ann. 2008-117, 2008-49 I.R.B.1258
REG-129243-07
Corrected by
Ann. 2008-75, 2008-33 I.R.B.392
REG-151135-07
Hearing scheduled by
Ann. 2008-64, 2008-28 I.R.B.114
REG-101258-08
Corrected by
Ann. 2008-73, 2008-33 I.R.B.391
REG-102822-08
Hearing cancelled by
Ann. 2008-116, 2008-48 I.R.B.1230
REG-103146-08
Hearing scheduled by
Ann. 2008-102, 2008-43 I.R.B.1011
REG-106251-08
Hearing scheduled by
Ann. 2008-121, 2008-50 I.R.B.1296
REG-115457-08
Hearing scheduled by
Ann. 2008-108, 2008-46 I.R.B.1165
Revenue Procedures:
92-25
Superseded by
Rev. Proc. 2008-41, 2008-29 I.R.B.155
92-83
Obsoleted by
Rev. Proc. 2008-37, 2008-29 I.R.B.137
2001-10
Section 6.02(1)(a) modified and amplified by
Rev. Proc. 2008-52, 2008-36 I.R.B.587
Revenue Procedures— Continued:
2001-42
Superseded by
Rev. Proc. 2008-39, 2008-29 I.R.B.143
2002-9
Clarified, modified, amplified, and superseded by
Rev. Proc. 2008-52, 2008-36 I.R.B.587
Modified and amplified by
Rev. Proc. 2008-43, 2008-30 I.R.B.186
2002-28
Section 7.02(1)(a) modified and amplified by
Rev. Proc. 2008-52, 2008-36 I.R.B.587
2002-44
Modified by
Ann. 2008-111, 2008-48 I.R.B.1224
2002-64
Superseded by
Rev. Proc. 2008-55, 2008-39 I.R.B.768
2004-44
Superseded by
Rev. Proc. 2008-67, 2008-48 I.R.B.1211
2005-29
Superseded by
Rev. Proc. 2008-49, 2008-34 I.R.B.423
2006-27
Modified and superseded by
Rev. Proc. 2008-50, 2008-35 I.R.B.464
2006-29
Superseded by
Rev. Proc. 2008-34, 2008-27 I.R.B.13
2006-34
Superseded by
Rev. Proc. 2008-44, 2008-30 I.R.B.187
2006-44
Modified by
Ann. 2008-111, 2008-48 I.R.B.1224
2007-9
Modified by
Rev. Proc. 2008-70, 2008-49 I.R.B.1240
2007-14
Superseded by
Rev. Proc. 2008-52, 2008-36 I.R.B.587
2007-19
Superseded by
Rev. Proc. 2008-39, 2008-29 I.R.B.143
2007-37
Updated by
Rev. Proc. 2008-62, 2008-42 I.R.B.935
2007-42
Superseded by
Rev. Proc. 2008-32, 2008-28 I.R.B.82
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2008–1 through 2008–26 is in Internal Revenue Bulletin 2008–26, dated June 30, 2008.
December 15, 2008iv2008–50 I.R.B.

Revenue Procedures— Continued:
2007-43
Superseded by
Rev. Proc. 2008-33, 2008-28 I.R.B.93
2007-44
Modified by
Rev. Proc. 2008-56, 2008-40 I.R.B.826
2007-49
Section 3 modified and superseded by
Rev. Proc. 2008-50, 2008-35 I.R.B.464
2007-50
Superseded by
Rev. Proc. 2008-36, 2008-33 I.R.B.340
2007-63
Superseded by
Rev. Proc. 2008-59, 2008-41 I.R.B.857
2007-66
Modified and superseded by
Rev. Proc. 2008-54, 2008-38 I.R.B.722
2007-70
Superseded by
Rev. Proc. 2008-72, 2008-50 I.R.B.1286
Modified by
Ann. 2008-63, 2008-28 I.R.B.114
2007-72
Amplified and superseded by
Rev. Proc. 2008-47, 2008-31 I.R.B.272
2008-3
Modified and amplified by
Rev. Proc. 2008-61, 2008-42 I.R.B.934
2008-4
Modified by
Rev. Proc. 2008-67, 2008-48 I.R.B.1211
2008-10
Modified by
Rev. Proc. 2008-70, 2008-49 I.R.B.1240
2008-12
Modified and superseded by
Rev. Proc. 2008-35, 2008-29 I.R.B.132
2008-43
Modified by
Rev. Proc. 2008-52, 2008-36 I.R.B.587
2008-44
Clarified by
Ann. 2008-119, 2008-50 I.R.B.1295
2008-52
Modified by
Ann. 2008-84, 2008-38 I.R.B.748
Revenue Rulings:
67-213
Amplified by
Rev. Rul. 2008-40, 2008-30 I.R.B.166
Revenue Rulings— Continued:
71-234
Modified by
Rev. Proc. 2008-43, 2008-30 I.R.B.186
76-273
Obsoleted by
T.D. 9414, 2008-35 I.R.B.454
77-480
Modified by
Rev. Proc. 2008-43, 2008-30 I.R.B.186
82-105
Obsoleted by
T.D. 9414, 2008-35 I.R.B.454
91-17
Amplified by
Rev. Proc. 2008-41, 2008-29 I.R.B.155
Rev. Proc. 2008-42, 2008-29 I.R.B.160
Superseded in part by
Rev. Proc. 2008-40, 2008-29 I.R.B.151
2005-6
Amplified by
Rev. Proc. 2008-38, 2008-29 I.R.B.139
2006-57
Modified by
Notice 2008-74, 2008-38 I.R.B.718
2008-3
Supplemented and superseded by
Rev. Rul. 2008-52, 2008-49 I.R.B.1233
2008-12
Amplified by
Rev. Rul. 2008-38, 2008-31 I.R.B.249
Clarified by
Ann. 2008-65, 2008-31 I.R.B.279
Treasury Decisions:
8073
Corrected by
Ann. 2008-99, 2008-44 I.R.B.1089
9391
Corrected by
Ann. 2008-74, 2008-33 I.R.B.392
9417
Corrected by
Ann. 2008-91, 2008-42 I.R.B.963
9424
Corrected by
Ann. 2008-114, 2008-48 I.R.B.1226
2008–50 I.R.B.vDecember 15, 2008

December 15, 20082008–50 I.R.B.

2008–50 I.R.B.December 15, 2008

December 15, 20082008–50 I.R.B.

INTERNAL REVENUE BULLETIN
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