Internal Revenue Bulletin 2008-52 (PDF rendition): IRS Revenue Procedures

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

Bulletin No. 200
8-52
December 29, 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
Rev. Rul. 2008–54, page 1352.
Interest rates; underpayments and overpayments.The
rates of interest determined under section 6621 of the Code
for the calendar quarter beginning January 1, 2009, will be 5
percent for overpayments (4 percent in the case of a corpo-
ration), 5 percent for underpayments, and 7 percent for large
corporate underpayments. The rate of interest paid on the por-
tion of a corporate overpayment exceeding $10,000 will be 2.5
percent.
Notice 2008–115, page 1367.
This notice provides guidance to employers and payers on their
reporting and wage withholding requirements for calendar year
2008 with respect to deferrals of compensation and amounts
includible in gross income under section 409A of the Code. In
addition, this notice provides guidance to service providers on
their income tax reporting and tax payment requirements with
respect to amounts includible in gross income under section
409A. Notice 2005–1 modified.
Notice 2008–116, page 1372.
This notice extends to taxable years that begin before January
1, 2009, the interim guidance provided in Notice 2008–32,
2008–11 I.R.B. 593, on the treatment under section 67 of the
Code of investment advisory costs and other costs subject to
the 2-percent floor under section 67(a) that are integrated as
part of one commission or fee paid to the trustee or executor
and are incurred by a trust other than a grantor trust or an
estate. Notice 2008–32 modified and superseded.
Rev. Proc. 2008–68, page 1373.
Section 305.This procedure provides temporary guidance
regarding section 305 treatment of a stock distribution by a
publicly traded real estate investment (REIT) trust in which the
shareholders have an election to receive money or stock, sub-
ject to an aggregate limitation on the amount of money to be
distributed.
EXEMPT ORGANIZATIONS
Announcement 2008–126, page 1375.
The IRS has revoked its determination that Peterson Family
Foundation of Salt Lake City, UT; A1 Credit Counseling, Inc.,
of Ft. Smith, AR; Nat Turner Legal Defense Fund of Garland,
TX; SOFLO Ballet, Inc., of Miramar, FL; Family Health Services,
Inc., of Bellefonte, PA; Hometown Heroes Memorial Organi-
zation, Inc., of Landrum, SC; ClearADebt, Inc., of Dania, FL;
Rapid Hope International of Hurst, TX; Spanish Community of
Yonkers, NY; All Terrier Rescue Hunters Crossing of Aloha,
OR; Women Helping Women of Houston, TX; Safe Haven
Homes, Inc., of Hartland, MI; AJH Housing of St. Louis, MO;
Restoration & Reconciliation Outreach, Inc., of Miami, FL;
Williams Peurifoy Personal Care Home, Inc., of Philadelphia,
PA; and Capital Gymnastics Booster Club, Inc., of Springfield,
GA, qualify as organizations described in sections 501(c)(3)
and 170(c)(2) of the Code.
TAX CONVENTIONS
Announcement 2008–124, page 1359.
This document provides a copy of the Memorandum of Under-
standing Between the Competent Authorities of the Federal Re-
public of Germany and the United States of America regarding
the arbitration process set forth in the United States-Germany
Income Tax Convention.
(Continued on the next page)
Fi
nding Lists begin on page ii.
Index for July through December begins on page vi.

Announcement 2008–125, page 1363.
This document provides guidelines regarding the arbitration
process set forth in the United States-Germany Income Tax
Convention as amended by the Protocol signed on June 1,
2006. These guidelines relate to the Memorandum of Under-
standing Between the Competent Authorities of the Federal Re-
public of Germany and the United States of America signed on
December 8, 2008.
ADMINISTRATIVE
Announcement 2008–127, page 1375.
This document contains a correction to final and temporary reg-
ulations (T.D. 9430, 2008–48 I.R.B. 1205) relating to informa-
tion returns for cancellation of indebtedness by certain entities.
The regulations will avoid premature information reporting from
certain businesses that are currently required to report and will
reduce the number of information returns required to be filed.
The regulations will impact certain lenders who are currently re-
quired to file information returns under the existing regulations.
Announcement 2008–128, page 1376.
This document contains a correction to temporary regulations
(T.D. 7964, 1984–2 C.B. 263) relating to tax shelter registra-
tion. Changes to the applicable tax law were made by the Tax
Reform Act of 1984. The regulations affect organizers, sell-
ers, investors, and certain other persons associated with in-
vestments that are considered tax shelters.
December 29, 20082008–52 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.
2008–52 I.R.B.December 29, 2008

December 29, 20082008–52 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 6621.
—Determina-
tion of Rate of
Interest
26 CFR 301.662
1–1: Interest rate.
Interest rate
s; underpayments and
overpayments
.The rates of interest deter-
mined under se
ction 6621 of the Code for
the calendar
quarter beginning January 1,
2009, will be
5 percent for overpayments
(4 percent in
the case of a corporation), 5
percent for u
nderpayments, and 7 percent
for large co
rporate underpayments. The
rate of inte
rest paid on the portion of a
corporate o
verpayment exceeding $10,000
will be 2.5 p
ercent.
Rev. Rul. 20
08–54
Section 66
21 of the Internal Revenue
Code estab
lishes the rates for interest
on tax over
payments and tax underpay-
ments. Und
er section 6621(a)(1), the
overpayme
nt rate is the sum of the federal
short-te
rm rate plus 3 percentage points
(2 percen
tage points in the case of a cor-
poration
), except the rate for the portion
of a corpo
rate overpayment of tax exceed-
ing $10,0
00 for a taxable period is the
sum of th
e federal short-term rate plus
0.5 of a p
ercentage point. Under section
6621(a)
(2), the underpayment rate is the
sum of th
e federal short-term rate plus 3
percent
age points.
Section
6621(c) provides that for pur-
poses of
interest payable under section
6601 on
any large corporate underpay-
ment, t
he underpayment rate under section
6621(a
)(2) is determined by substituting
“5 perc
entage points” for “3 percentage
points
.” See section 6621(c) and section
301.6
621–3 of the Regulations on Proce-
dure a
nd Administration for the definition
of a la
rge corporate underpayment and
for the rules f
or determining the appli-
cable date. Se
ction 6621(c) and section
301.6621–3 ar
e generally effective for
periods afte
r December 31, 1990.
Section 6621(
b)(1) provides that the
Secretary wi
ll determine the federal
short-term r
ate for the first month in each
calendar qua
rter.
Section 6621
(b)(2)(A) provides that the
federal shor
t-term rate determined under
section 6621
(b)(1) for any month applies
during the f
irst calendar quarter beginning
after that m
onth. Section 6621(b)(2)(B)
provides th
at in determining the addition to
tax under se
ction6654forfailuretopayes-
timated ta
x for any taxable year, the federal
short-ter
m rate that applies during the third
month foll
owing the taxable year also ap-
plies duri
ng the first 15 days of the fourth
month fol
lowing the taxable year. Sec-
tion 6621
(b)(3) provides that the federal
short-te
rm rate for any month is the fed-
eral shor
t-term rate determined during that
monthbyt
he Secretary in accordance with
section 1
274(d), rounded to the nearest full
percent
(or, if a multiple of
1
/2of 1 percent,
the rate
is increased to the next highest full
percent
).
Notice 8
8–59, 1988–1 C.B. 546, an-
nounced
that, in determining the quarterly
interes
t rates to be used for overpayments
and und
erpayments of tax under section
6621, t
he Internal Revenue Service will
use the
federal short-term rate based on
daily c
ompounding because that rate is
most co
nsistent with section 6621 which,
pursu
ant to section 6622, is subject to daily
compo
unding.
The fe
deral short-term rate determined
in acc
ordance with section 1274(d) dur-
ing Oc
tober 2008 is the rate published in
Reven
ue Ruling 2008–50 to take effect
begin
ning November 1, 2008. The fed-
eral short-te
rm rate, rounded to the near-
est full perce
nt, based on daily compound-
ing determine
dduringthemonthofOc-
tober 2008 is
2 percent. Accordingly, an
overpayment
rate of 5 percent (4 percent
in the case of
a corporation) and an under-
payment rate
of 5 percent are established
for the cale
ndar quarter beginning January
1, 2009. The
overpayment rate for the por-
tion of a cor
porate overpayment exceeding
$10,000 for
the calendar quarter beginning
January 1, 2
009, is 2.5 percent. The un-
derpaymen
trateforlargecorporateunder-
payments f
or the calendar quarter begin-
ning Janua
ry 1, 2009, is 7 percent. These
rates appl
y to amounts bearing interest dur-
ing that c
alendar quarter.
Under sect
ion 6621(b)(2)(B), the 5 per-
cent rate
also applies to estimated tax un-
derpayme
nts for the first calendar quarter
in 2009 an
d for the first 15 days in April
2009.
Interest
factors for daily compound in-
terest fo
r annual rates of 2.5 percent, 4 per-
cent, 5 pe
rcent, and 7 percent are published
in Table
s 10, 13, 15, and 19 of Rev. Proc.
95–17, 1
995–1 C.B. 556, 564, 567, 569,
and 573.
Annual i
nterest rates to be compounded
daily pu
rsuant to section 6622 that apply
for prio
r periods are set forth in the tables
accomp
anying this revenue ruling.
DRAFTI
NG INFORMATION
The pri
ncipal author of this revenue rul-
ing is D
eborah Colbert-James of the Of-
fice of
Associate Chief Counsel (Proce-
dure & A
dministration). For further infor-
mation
regarding this revenue ruling, con-
tact M
s. Colbert-James at (202) 622–8143
(not a
toll-free call).
2008–52 I.R.B.1352December 29, 2008

TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATE
In 1995–1 C.B.
DAILY RATE TABLE
Before Jul. 1, 1975
6%
Table 2, pg. 557
Jul. 1, 1975—Jan. 31, 1976
9%
Table 4, pg. 559
Feb. 1, 1976—Jan. 31, 19787%
Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 19806%
Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 198212%
Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 198220%
Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 198316%
Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 198311%
Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 198411%
Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 198411%
Table 75, pg. 629
Jan. 1, 1985—Jun. 30, 1985
13%
Table 31, pg. 585
Jul. 1, 1985—Dec. 31, 1985
11%
Table 27, pg. 581
Jan. 1, 1986—Jun. 30, 198610%
Table 25, pg. 579
Jul. 1, 1986—Dec. 31, 19869%
Table 23, pg. 577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1987—Mar. 31, 19878%21
575
9%23
577
Apr. 1, 1987
—Jun. 30, 1987
8%21
575
9%23
577
Jul. 1, 1987—Sep. 30, 19878%21
575
9%23
577
Oct. 1, 1987—Dec. 31, 19879%23
577
10%
25579
Jan. 1, 198
8—Mar. 31, 1988
10%7362711%
75
629
Apr. 1, 1988—Jun. 30, 19889%71
625
10%73627
Jul. 1, 1988—Sep. 30, 19889%71
625
10%73627
Oct. 1, 19
88—Dec. 31, 1988
10%7362711%
75
629
Jan. 1, 1989—Mar. 31, 198910%
25579
11%27
581
Apr. 1, 1989—Jun. 30, 198911%27
581
12%29
583
Jul. 1, 1
989—Sep. 30, 1989
11%27
581
12%29
583
Oct. 1, 1989—Dec. 31, 198910%
25579
11%27
581
Jan. 1, 1990—Mar. 31, 199010%
25579
11%27
581
Apr. 1,
1990—Jun. 30, 1990
10%
25579
11%27
581
Jul. 1, 1990—Sep. 30, 199010%
25579
11%27
581
Oct. 1, 1990—Dec. 31, 199010%
25579
11%27
581
Jan. 1,
1991—Mar. 31, 1991
10%
25579
11%27
581
Apr. 1, 1991—Jun. 30, 19919%23
577
10%
25579
Jul. 1, 1991—Sep. 30, 19919%23
577
10%
25579
Oct. 1
, 1991—Dec. 31, 1991
9%23
577
10%
25579
Jan. 1, 1992—Mar. 31, 19928%696239%71
625
Apr. 1, 1992—Jun. 30, 19927%676218%69623
Jul.
1, 1992—Sep. 30, 1992
7%676218%69623
Oct. 1, 1992—Dec. 31, 19926%
65
6197%67621
Jan. 1, 1993—Mar. 31, 19936%17
571
7%19
573
Apr
. 1, 1993—Jun. 30, 1993
6%17
571
7%19
573
Jul. 1, 1993—Sep. 30, 19936%17
571
7%19
573
Oct. 1, 1993—Dec. 31, 19936%17
571
7%19
573
Ja
n. 1, 1994—Mar. 31, 1994
6%17
571
7%19
573
Apr. 1, 1994—Jun. 30, 19946%17
571
7%19
573
Jul. 1, 1994—Sep. 30, 19947%19
57
3
8%21
57
5
December 29, 200813532008–52 I.R.B.

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998 – Continued
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Oct. 1, 1994—Dec. 31, 19948%21
575
9%23
577
Jan. 1, 1995—Ma
r. 31, 1995
8%21
575
9%23
577
Apr. 1, 1995—Jun. 30, 1995
9%23
577
10%
25579
Jul. 1, 1995—Sep. 30, 1995
8%21
575
9%23
577
Oct. 1, 1995—D
ec. 31, 1995
8%21
575
9%23
577
Jan. 1, 1996—M
ar. 31, 1996
8%696239%71
625
Apr. 1, 1996—Jun. 30, 19967%676218%69623
Jul. 1, 1996—Sep. 30, 19968%696239%71
625
Oct. 1, 1996—
Dec. 31, 1996
8%696239%71
625
Jan. 1, 1997—Mar. 31, 19978%21
575
9%23
577
Apr. 1, 1997—Jun. 30, 19978%21
575
9%23
577
Jul. 1, 1997
—Sep. 30, 1997
8%21
575
9%23
577
Oct. 1, 1997—Dec. 31, 19978%21
575
9%23
577
Jan. 1, 1998—Mar. 31, 19988%21
575
9%23
577
Apr. 1, 1998
—Jun. 30, 1998
7%19
573
8%21
575
Jul. 1, 1998—Sep. 30, 19987%19
573
8%21
575
Oct. 1, 1998—Dec. 31, 19987%19
573
8%21
575
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B
.
RATETABLEPAGE
Jan. 1, 199
9—Mar. 31, 1999
7%19
573
Apr. 1, 1999—Jun. 30, 19998%21
575
Jul. 1, 1999—Sep. 30, 19998%21
575
Oct. 1, 19
99—Dec. 31, 1999
8%21
575
Jan. 1, 2000—Mar. 31, 20008%69623
Apr. 1, 2000—Jun. 30, 20009%71
625
Jul. 1, 2
000—Sep. 30, 2000
9%71
625
Oct. 1, 2000—Dec. 31, 20009%71
625
Jan. 1, 2001—Mar. 31, 20019%23
577
Apr. 1, 2
001—Jun. 30, 2001
8%21
575
Jul. 1, 2001—Sep. 30, 20017%19
573
Oct. 1, 2001—Dec. 31, 20017%19
573
Jan. 1,
2002—Mar. 31, 2002
6%17
571
Apr. 1, 2002—Jun. 30, 20026%17
571
Jul. 1, 2002—Sep. 30, 20026%17
571
Oct. 1
, 2002—Dec. 31, 2002
6%17
571
Jan. 1, 2003—Mar. 31, 2003
5%15569
Apr. 1, 2003—Jun. 30, 2003
5%15569
Jul.
1, 2003—Sep. 30, 2003
5%15569
Oct. 1, 2003—Dec. 31, 20034%13
567
Jan. 1, 2004—Mar. 31, 20044%61
615
Apr
. 1, 2004—Jun. 30, 2004
5%
63617
Jul. 1, 2004—Sep. 30, 20044%61
615
Oct. 1, 2004—Dec. 31, 2004
5%
63617
Jan. 1, 2005—Mar. 31, 20055%15569
Apr. 1, 2005—Jun. 30, 2005
6%17
571
Ju
l. 1, 2005—Sep. 30, 2005
6%17
57
1
Oct. 1, 2005—Dec. 31, 2005
7%19
573
Jan. 1, 2006—Mar. 31, 20067%19
573
2008–52 I.R.B.1354December 29, 2008

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT – Continued
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPAGE
Apr. 1, 2006—Jun. 30, 20067%19
573
Jul. 1, 2006—Sep. 30, 20068%21
575
Oct. 1, 2006—Dec. 31, 20068%21
575
Jan. 1, 2007—Mar. 31, 20078%21
575
Apr. 1, 2007—Jun. 30, 20078%21
575
Jul. 1, 2007—Sep. 30, 20078%21
575
Oct. 1, 2007—Dec. 31, 20078%21
575
Jan. 1, 2008—Mar. 31, 20087%67621
Apr. 1, 2008—Jun. 30, 20086%
65
619
Jul. 1, 2008—Sep. 30, 2008
5%
63617
Oct. 1, 2008—Dec. 31, 20086%
65
619
Jan. 1, 2009—Mar. 31, 2009
5%15569
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1999—Mar. 31, 19996%17
571
7%19
573
Apr. 1, 1999—Jun. 30, 19997%19
573
8%21
575
Jul. 1, 1999
—Sep. 30, 1999
7%19
573
8%21
575
Oct. 1, 1999—Dec. 31, 19997%19
573
8%21
575
Jan. 1, 2000—Mar. 31, 20007%676218%69623
Apr. 1, 200
0—Jun. 30, 2000
8%696239%71
625
Jul. 1, 2000—Sep. 30, 20008%696239%71
625
Oct. 1, 2000—Dec. 31, 20008%696239%71
625
Jan. 1, 20
01—Mar. 31, 2001
8%21
575
9%23
577
Apr. 1, 2001—Jun. 30, 20017%19
573
8%21
575
Jul. 1, 2001—Sep. 30, 20016%17
571
7%19
573
Oct. 1, 2
001—Dec. 31, 2001
6%17
571
7%19
573
Jan. 1, 2002—Mar. 31, 2002
5%15569
6%17
571
Apr. 1, 2002—Jun. 30, 2002
5%15569
6%17
571
Jul. 1, 2
002—Sep. 30, 2002
5%15569
6%17
571
Oct. 1, 2002—Dec. 31, 2002
5%15569
6%17
571
Jan. 1, 2003—Mar. 31, 20034%13
5675%15569
Apr. 1,
2003—Jun. 30, 2003
4%13
5675%15569
Jul. 1, 2003—Sep. 30, 20034%13
5675%15569
Oct. 1, 2003—Dec. 31, 20033%11
565
4%13
567
Jan. 1
, 2004—Mar. 31, 2004
3%
59
6134%61
615
Apr. 1, 2004—Jun. 30, 20044%61
6155%
63617
Jul. 1, 2004—Sep. 30, 20043%
59
6134%61
615
Oct.
1, 2004—Dec. 31, 2004
4%61
6155%
63617
Jan. 1, 2005—Mar. 31, 2005
4%13
5675%15569
Apr
. 1, 2005—Jun. 30, 2005
5%15569
6%17
571
Jul. 1, 2005—Sep. 30, 20055%15569
6%17
571
Oct. 1, 2005—Dec. 31, 2005
6%17
571
7%19
573
Jan. 1, 2006—Mar. 31, 20066%17
571
7%19
573
Apr
. 1, 2006—Jun. 30, 2006
6%17
571
7%19
573
Jul. 1, 2006—Sep. 30, 20067%19
573
8%21
575
Oct. 1, 2006—Dec. 31, 20067%19
57
3
8%21
57
5
December 29, 200813552008–52 I.R.B.

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT – Continued
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 2007—Mar. 31, 20077%19
573
8%21
575
Apr. 1, 2007—Jun. 30, 20077%19
573
8%21
575
Jul. 1, 2007—Se
p. 30, 2007
7%19
573
8%21
575
Oct. 1, 2007—Dec. 31, 20077%19
573
8%21
575
Jan. 1, 2008—Mar. 31, 20086%
65
6197%67621
Apr. 1, 2008—J
un. 30, 2008
5%
636176%
65
619
Jul. 1, 2008—Sep. 30, 20084%61
6155%
63617
Oct. 1, 2008—Dec. 31, 2008
5%
636176%
65
619
Jan. 1, 2009—
Mar. 31, 2009
4%13
5675%15569
TABLE OF INTE
REST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1991—Mar. 31, 199113%31
585
Apr. 1, 1991—
Jun. 30, 1991
12%29
583
Jul. 1, 1991—Sep. 30, 199112%29
583
Oct. 1, 1991—Dec. 31, 199112%29
583
Jan. 1, 1992
—Mar. 31, 1992
11%
75
629
Apr. 1, 1992—Jun. 30, 199210%73627
Jul. 1, 1992—Sep. 30, 199210%73627
Oct. 1, 199
2—Dec. 31, 1992
9%71
625
Jan. 1, 1993—Mar. 31, 19939%23
577
Apr. 1, 1993—Jun. 30, 19939%23
577
Jul. 1, 19
93—Sep. 30, 1993
9%23
577
Oct. 1, 1993—Dec. 31, 19939%23
577
Jan. 1, 1994—Mar. 31, 19949%23
577
Apr. 1, 1
994—Jun. 30, 1994
9%23
577
Jul. 1, 1994—Sep. 30, 199410%
25579
Oct. 1, 1994—Dec. 31, 199411%27
581
Jan. 1, 1995—Mar. 31, 1995
11%27
581
Apr. 1, 1995—Jun. 30, 1995
12%29
583
Jul. 1,
1995—Sep. 30, 1995
11%27
581
Oct. 1, 1995—Dec. 31, 1995
11%27
581
Jan. 1, 1996—Mar. 31, 199611%
75
629
Apr. 1, 1996—Jun. 30, 199610%73627
Jul. 1
, 1996—Sep. 30, 1996
11%
75
629
Oct. 1, 1996—Dec. 31, 199611%
75
629
Jan. 1, 1997—Mar. 31, 199711%27
581
Apr.
1, 1997—Jun. 30, 1997
11%27
581
Jul. 1, 1997—Sep. 30, 199711%27
581
Oct. 1, 1997—Dec. 31, 199711%27
581
Jan
. 1, 1998—Mar. 31, 1998
11%27
581
Apr. 1, 1998—Jun. 30, 199810%
25579
Jul. 1, 1998—Sep. 30, 199810%
25579
Oct
. 1, 1998—Dec. 31, 1998
10%
25579
Jan. 1, 1999—Mar. 31, 19999%23
577
Apr. 1, 1999—Jun. 30, 199910%
2557
9
Ju
l. 1, 1999—Sep. 30, 1999
10%
25579
Oct. 1, 1999—Dec. 31, 199910%
25579
2008–52 I.R.B.1356December 29, 2008

TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT – Continued
1995–1 C.B.
RATETABLEPG
Jan. 1, 2000—Mar. 31, 200010%73627
Apr. 1, 2000—Jun. 30, 200011%
75
629
Jul. 1, 2000—Sep. 30, 200011%
75
629
Oct. 1, 2000—Dec. 31, 200011%
75
629
Jan. 1, 2001—Mar. 31, 200111%27
581
Apr. 1, 2001—Jun. 30, 200110%
25579
Jul. 1, 2001—Sep. 30, 20019%23
577
Oct. 1, 2001—Dec. 31, 20019%23
577
Jan. 1, 2002—Mar. 31, 20028%21
575
Apr. 1, 2002—Jun. 30, 20028%21
575
Jul. 1, 2002—Sep. 30, 20028%21
575
Oct. 1, 2002—Dec. 30, 20028%21
575
Jan. 1, 2003—Mar. 31, 20037%19
573
Apr. 1, 2003—Jun. 30, 20037%19
573
Jul. 1, 2003—Sep. 30, 20037%19
573
Oct. 1, 2003—Dec. 31, 20036%17
571
Jan. 1, 2004—Mar. 31, 20046%
65
619
Apr. 1, 2004—Jun. 30, 20047%67621
Jul. 1, 2004—Sep. 30, 20046%
65
619
Oct. 1, 2004—Dec. 31, 20047%67621
Jan. 1, 2005—Mar. 31, 2005
7%19
573
Apr. 1, 2005—Jun. 30, 2005
8%21
575
Jul. 1, 2005—Sep. 30, 2005
8%21
575
Oct. 1, 2005—Dec. 31, 2005
9%23
577
Jan. 1, 2006—Mar. 31, 20069%23
577
Apr. 1, 2006—Jun. 30, 20069%23
577
Jul. 1, 2006—Sep. 30, 200610%
25579
Oct. 1, 2006—Dec. 31, 200610%
25579
Jan. 1, 2007—Mar. 31, 200710%
25579
Apr. 1, 2007—Jun. 30, 200710%
25579
Jul. 1, 2007—Sep. 30, 200710%
25579
Oct. 1, 2007—Dec. 31, 200710%
25579
Jan. 1, 2008—Mar. 31, 20089%71
625
Apr. 1, 2008—Jun. 30, 20088%69623
Jul. 1, 2008—Sep. 30, 20087%67621
Oct. 1, 2008—Dec. 31, 20088%69623
Jan. 1, 2009—Mar. 31, 20097%19
573
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FR
OM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1995—Mar. 31, 19956.5%
18
572
Apr. 1, 1995—Jun. 30, 19957.5%
20
574
Jul. 1, 1995—Sep. 30, 19956.5%
18
572
Oct. 1, 1995—Dec. 31, 19956.5%
18
572
Jan. 1, 1996—Mar. 31, 1996
6.5%
66620
Apr. 1, 1996—Jun. 30, 1996
5.5%
64618
Jul. 1, 1996—Sep. 30, 1996
6.5%
66620
Oct. 1, 1996—Dec. 31, 1996
6.5%
66620
Jan. 1, 1997—Mar. 31, 1997
6.5%
18
572
December 29, 200813572008–52 I.R.B.

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS E
XCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT – Continued
1995–1 C.B.
RATETABLEPG
Apr. 1, 1997—Jun. 30, 1997
6.5%
18
572
Jul. 1, 1997—Sep. 30, 1997
6.5%
18
572
Oct. 1, 1997—Dec. 31, 1997
6.5%
18
572
Jan. 1, 1998—Mar. 31, 1998
6.5%
18
572
Apr. 1, 1998—Jun. 30, 1998
5.5%
16
570
Jul. 1, 1998—Sep. 30, 1998
5.5%
16
570
Oct. 1, 1998—Dec. 31, 1998
5.5%
16
570
Jan. 1, 1999—Mar. 31, 1999
4.5%
14
568
Apr. 1, 1999—Jun. 30, 1999
5.5%
16
570
Jul. 1, 1999—Sep. 30, 1999
5.5%
16
570
Oct. 1, 1999—Dec. 31, 1999
5.5%
16
570
Jan. 1, 2000—Mar. 31, 2000
5.5%
64618
Apr. 1, 2000—Jun. 30, 2000
6.5%
66620
Jul. 1, 2000—Sep. 30, 2000
6.5%
66620
Oct. 1, 2000—Dec. 31, 2000
6.5%
66620
Jan. 1, 2001—Mar. 31, 2001
6.5%
18
572
Apr. 1, 2001—Jun. 30, 2001
5.5%
16
570
Jul. 1, 2001—Sep. 30, 2001
4.5%
14
568
Oct. 1, 2001—Dec. 31, 2001
4.5%
14
568
Jan. 1, 2002—Mar. 31, 2002
3.5%
12
566
Apr. 1, 2002—Jun. 30, 2002
3.5%
12
566
Jul. 1, 2002—Sep. 30, 2002
3.5%
12
566
Oct. 1, 2002—Dec. 31, 2002
3.5%
12
566
Jan. 1, 2003—Mar. 31, 2003
2.5%
10
564
Apr. 1, 2003—Jun. 30, 2003
2.5%
10
564
Jul. 1, 2003—Sep. 30, 2003
2.5%
10
564
Oct. 1, 2003—Dec. 31, 2003
1.5%
8
562
Jan. 1, 2004—Mar. 31, 2004
1.5%56
610
Apr. 1, 2004—Jun. 30, 2004
2.5%58
612
Jul. 1, 2004—Sep. 30, 2004
1.5%56
610
Oct. 1, 2004—Dec. 31, 2004
2.5%58
612
Jan. 1, 2005—Mar. 31, 20052.5%
10
564
Apr. 1, 2005—Jun. 30, 20053.5%
12
566
Jul. 1, 2005—Sep. 30, 20053.5%
12
566
Oct. 1, 2005—Dec. 31, 20054.5%
14
568
Jan. 1, 2006—Mar. 31, 2006
4.5%
14
568
Apr. 1, 2006—Jun. 30, 2006
4.5%
14
568
Jul. 1, 2006—Sep. 30, 2006
5.5%
16
570
Oct. 1, 2006—Dec. 31, 2006
5.5%
16
570
Jan. 1, 2007—Mar. 31, 2007
5.5%
16
570
Apr. 1, 2007—Jun. 30, 2007
5.5%
16
570
Jul. 1, 2007—Sep. 30, 2007
5.5%
16
570
Oct. 1, 2007—Dec. 31, 2007
5.5%
16
570
Jan. 1, 2008—Mar. 31, 2008
4.5%
62616
Apr. 1, 2008—Jun. 30, 2008
3.5%
60614
Jul. 1, 2008—Sep. 30, 2008
2.5%58
612
Oct. 1, 2008—Dec. 31, 2008
3.5%
60614
Jan. 1, 2009—Mar. 31, 2009
2.5%
10
564
2008–52 I.R.B.1358December 29, 2008

Part II. Treaties and Tax Legislation
Subpart A.—Tax Conventions and Other Related Items
German Arbitration
Memorandum of
Understanding Announcement
Announcement 2008–124
On December 8, 2008, the Competent
Authorities of the United States and Ger-
many entered into a Memorandum of Un-
derstanding (MOU) regarding the arbitra-
tion process set forth in the United States
— Germany Income Tax Convention as
amended by the Protocol signed on June
1, 2006. The MOU establishes principles
and guidelines for the arbitration process.
Memorandum of Understanding
Between The Competent Authorities of
The Federal Republic of Germany And
The United States of America
Introduction
The competent authorities of the Fed-
eral Republic of Germany and of the
United States of America hereby enter
into the following agreement (“the Agree-
ment”) regarding the application of the
arbitration procedure under paragraph 5
and 6 of Article 25 (Mutual Agreement
Procedure) of the Convention Between
the Federal Republic of Germany and the
United States of America for the Avoid-
ance of Double Taxation and the Pre-
vention of Fiscal Evasion with respect to
Taxes on Income and Capital and to certain
other Taxes signed on 29 August 1989 as
amended by the Protocol signed on 1 June
2006 (“the Convention”). The Agreement
is entered into under paragraph 22(q) of
the Protocol to the Convention (“the Pro-
tocol”). The purpose of this Agreement
is to provide guidance under which the
U.S.-German arbitration procedure will
operate.
1. Competent Authority Assistance in
General
a. A request for competent author-
ity assistance must comply with
the requirements as set out for the
United States in Revenue Pro-
cedures 2006–54 and 2006–9,
or subsequent guidance, and for
Germany in the Ministry of Fi-
nance circular of 13 July 2006
(IV B 6 — S 1300 — 340/06), or
subsequent guidance.
b. Taxpayers shall submit their re-
quests for competent authority as-
sistance to the Contracting State
of which the person is a resident.
In situations involving allocation
of income or deductions between
related persons, each person will
send its request to the Contracting
State of which it is a resident.
2. Cases eligible for arbitration
a. According to paragraph 5 of Ar-
ticle 25 of the Convention, arbi-
tration is available in respect of
any case where the competent au-
thorities have endeavored but are
unable to reach an agreement un-
der Article 25 regarding the ap-
plication of those Articles of the
Convention that are specified un-
der paragraph 22 sentence 1 of the
Protocol.
b. An unresolved competent author-
ity request which originated with
a bilateral advance pricing agree-
ment (APA) request is eligible
for arbitration procedures. For
procedures regarding APAs, see
paragraph20below.
c. Once a case is accepted into the
mutual agreement procedure,
neither competent authority will
cease unilaterally to consider
a case, except for the circum-
stances described in paragraph 3.
3. Cases ineligible for arbitration
a. Arbitration is not available for
cases which a competent author-
ity has not accepted, or in which
a competent authority ceases to
provide assistance, in accordance
with the Convention, the Protocol
or published guidance.
i. The German competent au-
thority will generally not
accept a request for com-
petent authority assistance
or will generally cease pro-
viding assistance to a tax-
payer, and thus not provide
for arbitration if the taxpayer
does not comply with the
requirements or under cir-
cumstances as described in
the Federal Ministry of Fi-
nance’s circular of 13 July
2006 – IV B 6 – S 1300 —
340/06 — (or any applica-
ble subsequent guidance).
Such requirements and cir-
cumstances are described in
particular in circumstances
described in sections 3.2.1.,
3.3.1 and 5 of the circular.
ii. The U.S. competent author-
ity generally will not ac-
cept a request for competent
authority assistance or will
cease providing assistance to
a taxpayer, and thus not pro-
vide for arbitration in the cir-
cumstances described in sec-
tion 12.02 (Denial of As-
sistance) of Revenue Proce-
dure 2006–54 (or any appli-
cable subsequent guidance).
In addition, the U.S. compe-
tent authority will not pro-
vide for arbitration for a case
in which the taxpayer has
reached a settlement on the
issue with IRS Appeals (in-
cluding an Appeals settle-
ment through the Appeals
arbitration process) or with
Chief Counsel pursuant to an
executed closing agreement
or other written agreement
such as Form 870–AD.
b. Arbitration is not available for
cases that have been accepted for
competent authority considera-
tion, but for which the competent
authorities agree that the par-
ticular case is not suitable for
determination by arbitration pur-
suant to paragraph 5(b)(aa)(B)
of Article 25 of the Convention.
This agreement may, depending
on the circumstances of the par-
ticular case, be either a final deci-
sion, or a temporary deferral as is
contemplated in paragraph 5.a.i
below. The competent authorities
will consider suchagreement, for
December 29, 200813592008–52 I.R.B.

instance, in the following scenar-
ios:
i. There is an inordinate and/or
repeated delay in the re-
sponse of a taxpayer to a
request for information; or
ii. In the event the taxpayer
dockets the case for which it
requested competent author-
ity assistance for litigation,
the case will be considered as
not suitable for arbitration if
the court does not allow for
suspension of the litigation
proceedings until such a time
as a competent authority res-
olution has been reached.
iii. A temporary deferral of arbi-
tration proceedings may also
be considered in the case of
an administrative appeal if
the appeals proceedings have
not been suspended.
4. Commencement Date
a. Within 45 days of receipt of a
MAP request for assistance each
competent authority will review
the request and verify whether
it contains the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment, pursuant to paragraph 6(b)
of Article 25 of the Convention
and paragraph 22(p) of the Proto-
col.
b. If a competent authority deter-
mines that the request for as-
sistance is not complete, that
competent authority will inform
the taxpayer in writing within
45 days of receipt of the re-
quest, what information is neces-
sary consistent with Rev. Proc.
2006–54 (or subsequent guid-
ance) or the information required
under the section 2.3.3 and 11.3.2
of the Federal Ministry of Fi-
nance circular of 13 July 2006 (or
subsequent guidance).
c. Once complete information is
provided, pursuant to paragraph
22(p) of the Protocol, each com-
petent authority will inform the
other competent authority of the
date it received the information
necessary to undertake substan-
tive consideration for a mutual
agreement. The latter of these
dates will be the Commencement
Date. (See paragraph 6(b) of Ar-
ticle 25 of the Convention.)
d. Simultaneously, the competent
authorities will confirm with each
other that each has received the
same information.
e. When the Commencement Date
is established,
i. the competent authorities
will exchange correspon-
dence with each other con-
firming the Commencement
Date and the date the arbitra-
tion proceedings potentially
shall begin for any subse-
quently necessary arbitra-
tion, and
ii. each competent authority
will inform the concerned
persons resident in its terri-
tory in writing of the Com-
mencement Date and the
date the arbitration proceed-
ings potentially shall begin
for any subsequently neces-
sary arbitration.
5. Date Arbitration Proceedings Begin
a. Arbitration proceedings in a case
shall begin on the later of:
i. Two years after the Com-
mencement Date of that case,
unless both competent au-
thorities have agreed prior to
the date arbitration proceed-
ings begin to a different date,
and
ii. The earliest date upon which
the nondisclosure agree-
ments have been received by
both competent authorities.
(See paragraph 6 of Article
25 of the Convention.)
b. If the competent authorities agree
to begin arbitration proceedings
on a date different from that gen-
erally required, then the compe-
tent authorities will confirm that
date in writing to each other and
to the concerned persons resident
in their territory.
6. Board member appointment
a. Each competent authority will ap-
point a member to the arbitration
board by sending a written com-
munication indicating their ap-
pointment to the other competent
authority within 60 days of the
date on which the arbitration pro-
ceedings begin. (See paragraph
22(e) of the Protocol.)
b. If either competent authority
fails to appoint a member, the
appointed board member shall
contact the competent authority
that appointed him or her. That
competent authority shall contact
the highest-ranking member of
the Secretariat at the Centre for
Tax Policy and Administration of
the Organization for Economic
Co-operation and Development
(OECD) who is not a citizen of
either Germany or the United
States, who shall appoint a board
member by written notice to both
countries within 60 days of the
date of such failure. (See para-
graph 22(e) of the Protocol.)
c. If the board members appointed
by the competent authorities fail
toagreeuponthethirdmember,
the appointed board member(s)
will contact their appointing com-
petent authority(ies) and the nec-
essary appointments will be made
by the highest-ranking member
of the Secretariat at the Centre
for Tax Policy and Administra-
tion of the Organization for Eco-
nomic Co-operation and Devel-
opment (OECD) who is not a cit-
izen of either Germany or the
United States, by written notice
to both countries within 60 days
of the date of such failure. (See
paragraph 22(e) of the Protocol.)
d. The competent authorities will
not appoint current government
employees, or former govern-
ment employees, within two
years of their last employment in
the government.
e. The competent authorities will
appoint members who have sig-
nificant international tax experi-
ence. They need not, however,
have experience as either a judge
or arbitrator. Every member of
an arbitration board shall be im-
partial and independent of the
contracting states and the Con-
cerned Persons at the time of ac-
cepting an appointment to serve,
and shall remain so during the
2008–52 I.R.B.1360December 29, 2008

entire arbitration proceeding and
for a reasonable time thereafter.
f. If a board member is unable to
fulfill his or her duties the chair
will notify the competent authori-
ties. The competent authority that
selected the board member who
is unable to fulfill his or her du-
ties will select a substitute board
member within 14 days.
g. If any board member is unable to
fulfill his or her duties the com-
petent authorities will consult
with the remaining board mem-
bers to determine whether a new
timetable is necessary.
7. Nondisclosure Issues
a. Each concerned person and their
authorized representatives or
agents must agree prior to the
beginning of arbitration proceed-
ings not to disclose to any other
person any information received
during the course of the arbitra-
tion proceeding from either com-
petent authority or the arbitration
board, other than the determina-
tion of the board. (See paragraph
22(d) of the Protocol.)
8. List of Chairs
a. The competent authorities will
identify and jointly agree to 5 —
10 persons who are qualified and
willing to serve as a Chair for an
arbitration board.
b. The competent authorities will re-
view or revise this list every third
year.
c. Persons to be identified for this
list will have significant inter-
national tax experience. They
need not, however, have experi-
ence as either a judge or arbitra-
tor. Consistent with paragraph
6(e), the Chair shall be impartial
and independent of the contract-
ing states and the Concerned Per-
sons at the time of accepting an
appointment to serve, and shall
remain so during the entire arbi-
tration proceeding and for a rea-
sonable time thereafter.
9. Proposed Resolution, Position Papers
and Reply Submissions
a. Each competent authority will be
permitted to submit, within 90
days of the appointment of the
Chair of the arbitration board, a
Proposed Resolution paper, not
to exceed five pages, describing
the proposed disposition of the
specific monetary amounts of in-
come, expense or taxation at is-
sue in the case, and a supporting
Position Paper, not to exceed 30
pages, plus annexes, for consid-
eration by the arbitration board.
(See paragraph 22(g) of the Pro-
tocol.)
b. The Proposed Resolution should
be drafted in a form that pro-
vides a resolution for each spe-
cific amount of income, expense
or tax at issue in the case. The
Proposed Resolution may also
address any related issues iden-
tified by a taxpayer’s request for
competent authority assistance,
that are required to be resolved to
determine the specific amount of
income, expense or tax, for ex-
ample, the threshold existence of
a permanent establishment (see
paragraph13below). Thus,as
may be appropriate in a particular
case, the competent authorities
may agree that a Proposed Res-
olution (or portion thereof) need
not be “an amount of income,
expense or tax”.
c. In the event that only one com-
petent authority submits a Pro-
posed Resolution within the allot-
ted time, then that Proposed Res-
olution shall be deemed to be the
determination of the board in that
case and the Proceeding shall be
terminated. (See paragraph 22(g)
of the Protocol.)
d. Each competent authority may, if
it so desires, submit a Reply Sub-
mission, not to exceed 10 pages,
to the board within 180 days of
the appointment of the Chair,
to address any points raised by
the Proposed Resolution or Posi-
tion Paper submitted by the other
competent authority. (See para-
graph 22(g) of the Protocol.)
e. In a particular case, the com-
petent authorities may agree on
different page limitations for the
Proposed Resolutions, Position
Papers or Reply Submissions.
f. Any annex to a Position Paper
must be a document previously
made available for the competent
authorities to use in negotiation.
g. The competent authorities will
send to the Chair four copies
of each document submitted to
the board, for distribution to the
board members and other com-
petent authority.
10. Requests for Additional Information
a. Additional information may be
submittedtotheboardonlyatits
request, and copies of the board’s
request and the competent author-
ity’s response shall be provided to
the other competent authority on
the date on which the request or
the response is submitted. (See
paragraph 22(g) of the Protocol.)
b. The board may request additional
information that consists only of
existing documents and may not
request new or additional analy-
ses.
c. The board may establish a dead-
line for responding to the request.
11. Multiple Issues
a. A case may consist of multiple
issues. The existence of multiple
issues in a case will ordinarily be
identified by the assertion of mul-
tiple discrete proposed adjust-
ments arising from an audit (or if
there is no adjustment, multiple
discrete denied credits or claims).
The Proposed Resolution and Po-
sition Paper should address each
issue separately. However, in an
appropriate case, the competent
authorities may agree to a dif-
ferent presentation of issues to
the board, for example, where in-
terrelated adjustments have been
proposed.
b. The board will make a determi-
nation on each issue separately.
Thus, the final decision of the
board may be comprised of por-
tions of each of the Proposed Res-
olutions submitted by the compe-
tent authorities.
12. Permanent Establishment Cases
a. Each competent authority is al-
lowed to submit a Proposed Res-
olution and Position Paper that
takes alternative positions. Thus,
a competent authority may take
the position that no permanent es-
tablishment exists. However, the
December 29, 200813612008–52 I.R.B.

competent authority may propose
an amount of income to be al-
located to a permanent establish-
ment, if the board determines that
a permanent establishment exists.
13. Competent Authority Initiating the
Mutual Agreement Procedure
a. For requests for competent au-
thority assistance concerning an
adjustment raised in either Ger-
many or the United States, the
competent authority of the coun-
try that proposed the adjustment
(or in the case where there is no
adjustment, denied the credit or
claim) is considered the compe-
tent authority initiating the Mu-
tual Agreement Procedure.
b. Meeting facilities, related re-
sources, financial management,
other logistical support, and gen-
eral administrative coordination
of the Proceeding will be pro-
vided, at its own cost, by the
competent authority that initiated
the Mutual Agreement Proce-
dure. (See paragraph 22(l) of the
Protocol.)
14. Nondisclosure
a. Pursuant to paragraph 22(n) of
the Protocol, upon confirmation
of appointment of the arbitration
board, each board member must
agree in a statement to abide by
and be subject to the confidential-
ity and nondisclosure provisions
of Article 26 of the Convention
and the applicable domestic laws
of the Contracting States, as well
as to this Agreement and the Ar-
bitration Board Operation Guide-
lines.
15. Communication between the Board
and the Competent Authorities
a. Before the chair is appointed, the
competent authorities will send
any correspondence concurrently
to both board members.
b. After the chair is appointed, the
competent authorities will send
any correspondence to the chair.
Similarly, the chair will send any
correspondence concurrently to
the competent authorities.
c. No competent authority will have
anyex partecommunications, ex-
cept for administrative or logisti-
cal matters, with a board member.
d. All communication, except for
logistical matters, between the
competent authorities and the
board must be in writing. Writ-
ten communication by fax or
email is allowed, however, no
information that may identify the
taxpayer(s) may be included in
an email. Express mail or air
mail shall be used for all corre-
spondence other than that sent
via facsimile or email.
16. Fees and Expenses
a. The fees and expenses will be
borne equally by the competent
authorities. (See paragraph 22(o)
of the Protocol.)
b. Neither competent authority will
charge a taxpayer for costs asso-
ciated with arbitration.
c. The fees of members of the ar-
bitration board will be set at the
fixed amount of $2000 (two thou-
sand United States dollars) or
the equivalent in euro per day,
subject to modification by the
competent authorities. (See para-
graph 22(o) of the Protocol.)
d. In general, each board member
will be compensated for no more
than three days of preparation,
two meeting days and for travel
days.
e. In general, the expenses of mem-
bers of the arbitration board will
be set in accordance with the In-
ternational Centre for Settlement
of Investment Disputes Schedule
of Fees for arbitrators. (See para-
graph 22(o) of the Protocol.)
17. Board Determination
a. The determination of the board
shall constitute a resolution by
mutual agreement under Article
25 (Mutual Agreement Proce-
dure) of the Convention and shall
be binding on both competent au-
thorities with respect to that case.
b. Within 30 days of receiving the
determination each concerned
person(s) must accept the deter-
mination in writing sent to the
competent authority of the Con-
tracting State of which the con-
cerned person is a resident. If the
concerned persons fail to accept
the determination within 30 days,
the determination is considered
rejected.
c. If any concerned person fails to
advise the competent authority
within that period of time, the
determination will be considered
not to have been accepted and the
case will be closed.
d. The treatment of any interest or
penalties will be determined by
applicable domestic law of Ger-
many or the United States.
18. Terminating Proceedings
a. If a taxpayer terminates an arbi-
tration proceeding by withdraw-
ing its request for assistance, then
the competent authorities will ex-
change letters to close the case.
b. If a taxpayer terminates an arbi-
tration proceeding by withdraw-
ing its request for assistance, the
Taxpayer will not ordinarily be
allowed access to the competent
authority procedures for the same
matter and same years.
19. Arbitration and requests for Advance
Pricing Agreements (APAs)
a. Where the competent authorities
have endeavored but are unable to
reach an agreement in a case ini-
tially submitted to the competent
authorities as a bilateral advance
pricing agreement (APA) request
this case is eligible for arbitration
procedures, but only to the ex-
tent tax returns have been filed
with respect to all taxable years
at issue, including any years for
which the taxpayer has requested
a rollback, provided that the tax
returns for the APA years (not in-
cluding any rollback years) have
been filed in accordance with the
APA request.
b. For purposes of establishing a
Commencement Date for a case
initially submitted as a request
for an APA, paragraph 22(p) of
the Protocol provides that the in-
formation necessary to undertake
substantive consideration for a
mutual agreement in the United
States is the information required
to be submitted to the Internal
Revenue Service under Revenue
Procedure 2006–9, section 4 (or
any applicable subsequent guid-
ance). In Germany, the infor-
2008–52 I.R.B.1362December 29, 2008

mation is that which would be
required under the Ministry of
Financecircularof5October
2006–IV B 4–S 1341–38/06–in
connection with the 13 July 2006
circular (or any applicable subse-
quent guidance).
c. Once complete information is
provided, the Commencement
Date of the case, for purposes of
any subsequently necessary ar-
bitration, will be the earlier of i)
the date on which the competent
authorities have exchanged po-
sition papers setting forth their
initial negotiating positions, or ii)
two years from the earliest date
on which the information nec-
essary to undertake substantive
consideration for a mutual agree-
ment has been received by both
competent authorities. However,
the arbitration proceedings will
in no event commence before one
year after the submission of the
tax return for the later of the cor-
responding tax years covered by
the APA request (including any
amendments) has elapsed.
d. For requests originally submitted
as an APA, the competent author-
ity of the country in which the
parent company is located is con-
sidered the competent authority
initiating the Mutual Agreement
Procedure. If the parent com-
pany is a resident of a 3
rd
state,
the competent authorities will de-
termine the competent authority
serving as the one initiating the
MAP.
e. The provisions of paragraphs 1
through 18 apply as appropriate.
Agreed:
For the Federal Republic of GermanyFor the United States of America
Jörg Kraeusel
Deputy Director (International)
Barry B. Shott
Deputy Commissioner (International)
Large and Mid-sizedBusiness Division
Date:Date:
The principal author of this announce-
ment is Ana C. Guzman of the Office of
Associate Chief Counsel (International).
For further information regarding this an-
nouncement, contactMs. Guzman at (202)
622–3880 (not a toll-free call).
German Arbitration Guidelines
Announcement
Announcement 2008–125
The Deputy Commissioner (Interna-
tional), LMSB has developed guidelines
regarding the arbitration process set forth
in the United States — Germany Income
Tax Convention as amended by the Pro-
tocol signed on June 1, 2006. These
guidelines relate to the Memorandum of
Understanding Between the Competent
Authorities of the Federal Republic of
Germany and the United States of Amer-
ica signed on December 8th, 2008 (See
Ann. 2008–124, 2008–52 I.R.B. 1359).
The guidelines apply to the arbitration
process and, specifically, to the operations
of the arbitration board.
Arbitration Board Operating
Guidelines
1. Chair appointment
a. Within 5 business days after the
appointment of the second board
member by a competent author-
ity, the board members shall con-
tact each other to discuss appoint-
ment of a third board member,
who will serve as chair.
b. Within 60 calendar days after the
appointment of the second board
member by a competent author-
ity, the two board members shall
appoint a third member, who will
serve as a chair. (See paragraph
22(e) of the Protocol.)
c. The competent authorities will
provide to their appointed board
members a list of persons who
the competent authorities have
agreed may potentially serve as
chair of the board. The com-
petent authorities encourage the
board members to select a person
from the list, particularly because
of issues regarding governmental
contracting.
d. The two board members selected
by the competent authorities may
select as a chair a person not on
the list, however, the board mem-
bers should inform the competent
authorities, in writing, prior to
making the appointment. If they
select a person not on the list, the
person need not have arbitration
experience; however, he or she
should have significant familiar-
ity with international tax issues.
2. Non-disclosure
Pursuant to paragraph 22(n) of the
Protocol, upon confirmation of ap-
pointment of the arbitration board,
each board member must agree in a
statement to abide by and be subject
to the confidentiality and nondisclo-
sure provisions of Article 26 of the
Convention and the applicable do-
mestic laws of the Contracting States,
as well as to the Memorandum of Un-
derstanding and these guidelines.
3. Installation of Board
a. When the chair accepts his or her
appointment, the chair shall write
to both competent authorities to
inform them of his or her accep-
tance, providing the non-disclo-
sure agreements, and indicating
the date of appointment and pro-
vide the chair’s contact informa-
tion.
December 29, 200813632008–52 I.R.B.

4. Operating Procedures
a. To the extent needed, the board
may adopt any additional proce-
dures necessary for the conduct
of its business, provided that the
procedures are not inconsistent
with any provision of Article 25
of the Convention, the Protocol,
or any other related agreement
between Germany and the U.S.
b. If the board adopts any additional
procedures, the chair shall pro-
vide a written copy of them to the
competent authorities.
5. Communication with the CAs
a. Before the chair is appointed, the
competent authorities will send
any correspondence concurrently
to both board members.
b. After the chair is appointed, the
competent authorities will send
any correspondence to the chair.
Similarly, the chair will send any
correspondence concurrently to
the competent authorities.
c. No board member will have any
ex partecommunications, except
for administrative or logistical
matters, with one competent au-
thority.
d. All communication, except for
logistical matters, between the
board and the competent author-
ities must be in writing. Written
communication by fax or email
is allowed, however, no infor-
mation that may identify the tax-
payer(s) may be included in an
email. Express mail or air mail
shall be used for all correspon-
dence other than that sent via
facsimile or email.
e. The board members may commu-
nicate by telephone, videoconfer-
ence, fax or face-to-face meet-
ings. Board members may com-
municate by email; however, they
must not include any taxpayer in-
formation in the email.
f. All three board members must
be present during substantive dis-
cussions.
g. No board member shall have
communications regarding the
issues or matters before the board
with the taxpayers involved in
the case or their representatives
during or subsequent to the arbi-
tration process.
6. Position papers and supporting papers
a. Within 90 days of the appoint-
ment of the chair, each competent
authority shall submit four copies
of the following documents to the
board:
i. A proposed resolution paper
not to exceed 5 pages, and
ii. A supporting position paper
not to exceed 30 pages, plus
annexes.
b. The chair will send a copy of
each competent authority’s pro-
posed resolution and supporting
position papers to the other com-
petent authority within 5 days of
receipt of the later submission by
the board.
c. In the event that only one com-
petent authority submits a Pro-
posed Resolution and supporting
Position Paper within the allotted
time, then that Proposed Resolu-
tion shall be deemed to be the de-
terminationoftheboardinthat
case and the Proceeding shall be
terminated.
7. Reply Submissions
a. Within 180 days of the appoint-
ment of the chair, each compe-
tent authority may submit four
copies of a reply submission not
to exceed 10 pages, to address
any points raised by the proposed
resolution or position paper sub-
mitted by the other competent au-
thority.
b. The chair will send a copy of each
competent authority’s reply sub-
mission paper to the other com-
petent authority within 5 days of
receipt of the later reply by the
board.
8. Requesting additional information
a. The competent authorities may
not submit to the board any ad-
ditional information, unless the
board so requests. (See paragraph
22(g) of the Protocol.)
b. The board may request addi-
tional information only from ei-
ther competent authority. Such
a request shall be in writing and
include a response deadline. On
the date the board issues the re-
quest, the board shall send a copy
of the request to the other com-
petent authority.
c. The board shall send a copy of a
competent authority’s response to
the other competent authority.
9. Board meetings
a. The competent authorities en-
courage the members to use tele-
and videoconferencing. If a
face-to-face meeting is necessary,
the chair will contact the compe-
tent authority of the country that
initiated the mutual agreement
proceeding and ask it to arrange
facilities for the meeting.
i. For requests for competent
authority assistance concern-
inganadjustmentraisedin
either Germany or the United
States, the competent author-
ity of the country that pro-
posed the adjustment (or in
the case where there is no
adjustment, denied the credit
or claim) is considered the
competent authority initiat-
ing the Mutual Agreement
Procedure.
ii. For requests originally sub-
mitted as an APA, the com-
petent authority of the coun-
try in which the parent com-
pany is located is consid-
ered the competent authority
initiating the Mutual Agree-
ment Procedure. If the par-
ent company is a resident of
a3
rd
state, the competent au-
thorities will determine the
competent authority serving
as the one initiating the MAP.
b. The competent authority will ar-
range meeting facilities in a lo-
cation that minimizes the board’s
travel time and expenses. Each
competent authority may arrange
a meeting in the other’s meeting
facilities, as needed.
10. A board member’s use of staff
a. The competent authorities antici-
pate that board members will be
able to perform their duties with-
out the use of additional staff.
b. If a board member uses staff, that
staff person must sign a non-dis-
closure agreement before per-
forming any work on the matter.
2008–52 I.R.B.1364December 29, 2008

c. The board member must send the
non-disclosure agreement to the
competent authorities.
d. The staff person must be subject
to the same conflict of interest
rules as the board member.
e. The competent authorities will
not compensate the staff member.
11. Payment of board members
a. The expenses of members of the
board shall be set in accordance
with the International Centre for
Settlement of Investment Dis-
putes (ICSID) Schedule of Fees
for arbitrators, as in effect on the
date on which the arbitration pro-
ceedings begin. (See paragraph
22(o) of the Protocol.). This ap-
plies in particular for hotel, meals
and incidental costs. With re-
gard to travel expenses, board
members will be reimbursed for
economy class travel.
b. With respect to fees, each board
member will be compensated for
no more than three days of prepa-
ration, for two meeting days and
for travel days.
c. If the board members feel they re-
quire additional time to properly
consider the case, the Chair will
contact the competent authorities
to request additional time.
12. Inability of a board member to fulfill
duties
a. If the chair is unable to fulfill his
or her duties, the remaining two
board members will jointly in-
form both competent authorities
and select a new chair within 14
days.
b. If one of the other board members
is unable to fulfill his or her du-
ties, the chair will notify the com-
petent authorities. The competent
authority that selected the board
member who is unable to fulfill
his or her duties will select a sub-
stitute board member within 14
days.
c. If any board member is unable to
fulfill his or her duties the compe-
tent authorities will consult with
the remaining board members to
determine a new timetable, if nec-
essary.
d. Should it come to light that a
board member has a conflict of
interest which would have pre-
vented that member’s original
appointment, the board member
must recuse himself or herself
from consideration of the case
and inform the competent author-
ities.
13. Process for board’s determination
a. The board must make a determi-
nation by adopting one of the pro-
posed resolutions submitted by
the competent authorities.
b. For each issue, each board mem-
ber must choose one of the pro-
posed resolutions.
c. A majority vote shall determine
the decisions of the board in a
case.
14. Multiple issue cases
a. If a case contains more than one
issue (for example, the case in-
volves the transfer of tangible
goods, the transfer of intangible
goods and the performance of
services) the board will make a
determination on each issue indi-
vidually.
15. Permanent establishment cases
a. If the competent authorities have
not reached an agreement on the
existence of a permanent estab-
lishment, the board members
must first determine whether a
permanent establishment exists.
b. Once it is determined that a per-
manent establishment exists, the
board members must then deter-
mine the amount of profits attrib-
utable to that permanent estab-
lishment. Accordingly, the com-
petent authorities may submit a
position paper and supporting
paper that take alternative posi-
tions. For example, a competent
authority may take the position
that a permanent establishment
does not exist. That competent
authority may also take the posi-
tion that if the board determines
that a permanent establishment
exists, a certain amount of in-
come should be allocated to that
permanent establishment.
16. Board’s Determination
a. Within 9 months of the appoint-
ment of the chair, the chair shall
provide the written determination
concurrently to each competent
authority. (See paragraph 22(h)
of the Protocol.)
b. The written determination shall
include only one of the two pro-
posed resolutions for the issue(s)
presented to the Board except
for in circumstances described in
paragraph 11 of the Memoran-
dum of Understanding.
c. The board will not determine the
treatment of any associated inter-
est or penalties; rather that treat-
ment will be determined by appli-
cable domestic law of Germany
and the United States, as the case
may be. (See paragraph 22(m) of
the Protocol.)
d. The written determination shall
not include any rationale or anal-
ysis. (See paragraph 22(j) of the
Protocol.)
e. The determination of the board
will have no precedential value.
(See paragraph 22(j) of the Pro-
tocol.)
f. No information relating to
the Proceeding (including the
board’s determination) may be
disclosed by the members of the
arbitration board or their staffs
or by either competent authority,
except as permitted by the Con-
vention and the domestic laws of
Germany or the United States.
(See paragraph 22(n) of the Pro-
tocol.)
17. Terminating a Proceeding
a. A Proceeding may be terminated
by the board’s determination in
the matter, by the competent au-
thorities reaching a mutual agree-
ment, or by a taxpayer’s with-
drawal of its competent authority
request.
b. If a taxpayer withdraws its com-
petent authority request, the com-
petent authorities will notify the
board that the taxpayer has with-
drawn its request and the arbitra-
tion process is terminated.
c. If the competent authorities wish
to terminate a proceeding (for ex-
ample, because they have reached
an agreement on the treatment of
the case), the competent authori-
ties will notify the board that they
have reached a mutual agreement
December 29, 200813652008–52 I.R.B.

and the arbitration process is ter-
minated.
d. At the termination of any pro-
ceeding each board member must
immediately destroy all docu-
ments or other information re-
ceived from either competent
authority, or otherwise reflect-
ing the considerations or discus-
sions of the arbitration board, and
delete all information that may be
stored on any computer, personal
data assistant or other electronic
device or media.
The principal author of this announce-
ment is Ana C. Guzman of the Office of
Associate Chief Counsel (International).
For further information regarding this an-
nouncement, contact Ana C. Guzman at
(202) 622–3880 (not a toll-free call).
2008–52 I.R.B.1366December 29, 2008

Part III. Administrative, Procedural, and Miscellaneous
Reporting and Wage
Withholding Under Internal
Revenue Code § 409A
Notice 2008–115
I. PURPOSE
This notice provides interim guidance
to employers and payers on their reporting
and wage withholdingrequirements with
respect to amounts includible in gross
income under § 409A of the Internal Rev-
enue Code. This notice also provides
interim guidance to employers and pay-
ers on their reporting requirements with
respect to all deferrals of compensation
under § 409A. This notice does not af-
fect the application of § 3121(v)(2) or an
employer’s reporting obligations under
§ 31.3121(v)(2)–1 of the Employment
Tax Regulations. In addition, this notice
provides guidance to service providers on
their income tax reporting and tax payment
requirements with respect to amounts in-
cludible in gross income under § 409A.
Generally, these requirements reflect an
extension of the guidance provided in
Notice 2006–100 and Notice 2007–89 ap-
plicable to calendar years 2005, 2006, and
2007.
This interim guidance is effective for
calendar year 2008 and will remain in
effect for subsequent calendar years un-
til the Treasury Department and the IRS
issue further guidance. The Treasury
Department and the IRS do not antici-
pate that further guidance will be issued
until the recently proposed regulations
under § 409A addressing the calculation
of the amount includible in income un-
der § 409A(a) and the calculation of the
additional taxes under § 409A(a) are fi-
nalized. See REG–148326–05, 2008–51
I.R.B. 1325 [73 Fed. Reg. 74380] (Dec.
8, 2008). The Treasury Department and
the IRS further anticipate that with respect
to annual deferral reporting (Form W–2,
box 12, code Y and Form 1099–MISC,
box 15a), such guidance will not be made
effective before the calendar year begin-
ning after such regulations are finalized.
II. BACKGROUND
A. The American Jobs Creation Act of
2004
Section 885 of the American Jobs Cre-
ation Act of 2004, Pub. Law No. 108–357,
118 Stat. 1418 (the Act), added § 409A,
which provides,inter alia, that all amounts
deferred under a nonqualified deferred
compensation plan forall taxable years
are currently includible in gross income
to the extent not subject to a substantial
risk of forfeiture and not previously in-
cluded in gross income, unless certain
requirements are met. Section 885(b) of
the Act amended the Code to impose the
following reporting and wage withhold-
ing requirements with respect to deferrals
of compensation within the meaning of
§ 409A.
•The Act amended §§ 6041 and 6051
to require that an employer or payer
report all deferrals for the year under
a nonqualified deferred compensation
plan on a Form W–2 (Wage and Tax
Statement) or a Form 1099–MISC
(Miscellaneous Income), regardless of
whether such deferred compensation
is includible in gross income under
§ 409A(a).
•The Act amended § 3401(a) to pro-
vide that the term “wages” includes
any amount includible in the gross in-
come of an employee under § 409A.
•The Act amended § 6041 to require
that a payer report amounts includible
in gross income under § 409A that are
not treated as wages under § 3401(a).
B. Notice 2005–1
On December 20, 2004, the IRS issued
Notice 2005–1, 2005–1 C.B. 274, which
provides guidance with respect to the ap-
plication of § 409A. Additionally, in ac-
cordance with the amendments made by
§ 885(b) of the Act, Notice 2005–1 pro-
vides the following with respect to report-
ing and wage withholding requirements
for deferred amounts:
•An employer reports to an employee
the total amount of deferrals for the
year under a nonqualified deferred
compensation plan in box 12 of Form
W–2 using code Y. See Q&A–29.
•An employer reports amounts includi-
ble in gross income under § 409A and
in wages under § 3401(a) in box 1
of Form W–2 as wages paid to the
employee during the year and subject
to income tax withholding. An em-
ployer also reports such amounts in
box 12 of Form W–2 using code Z. See
Q&A–33.
•A payer reports to a nonemployee the
total amount of deferrals for the year
under a nonqualified deferred com-
pensationplaninbox15aofForm
1099–MISC. See Q&A–30.
•A payer reports amounts includible in
gross income under § 409A and not
treated as wages under § 3401(a) as
nonemployee compensation in box 7
of Form 1099–MISC. A payer also re-
ports such amounts in box 15b of Form
1099–MISC. See Q&A–35.
C. Final Regulations
On April 10, 2007, the IRS issued final
regulations regarding the application of
§ 409A, applicable for taxable years be-
ginning on or after January 1, 2009. See
T.D. 9321, 2007–1 C.B. 1123 [72 Fed.
Reg. 19234] (April 17, 2007) and Notice
2007–86, 2007–46 I.R.B. 990 (October
22, 2007). The regulations generally in-
corporate and expand on the guidance
provided in Notice 2005–1. Under No-
tice 2007–86, taxpayers generally are not
required to comply with the final regula-
tions until January 1, 2009, but taxpayers
may rely on the final regulations for pe-
riods before January 1, 2009. The final
regulations generally supersede Notice
2005–1 for periods beginning after 2008.
However, the regulations do not address
reporting and withholding requirements,
and accordingly do not supersede No-
tice 2005–1, Q&A–24 through Q&A–38,
which address those issues. See Preamble
to the Final Regulations, Effect on Other
Documents, 72 Fed. Reg. 19275.
D. Notice 2007–89
On October 23, 2007, the IRS issued
Notice 2007–89, 2007–46 I.R.B. 998,
December 29, 200813672008–52 I.R.B.

which provided guidance to employers and
payers on their reporting and withholding
obligations with respect to deferrals of
compensation and amounts includible in
gross income under § 409A during cal-
endar year 2007. The notice permanently
waived employers’ and payers’ reporting
requirements under §§ 6041 and 6051 for
calendar year 2007 with respect to an-
nual deferrals of compensation within the
meaning of § 409A (Form W–2, box 12,
code Y and Form 1099–MISC, box 15a).
The notice also provided guidance regard-
ing the calculation of amounts includible
in income under § 409A, and the applica-
tion of the employer and payer reporting
and withholding requirements for such
amounts under § 409A (Form W–2, box
12, code Z and Form 1099–MISC, box
15b).
E. Notice 2008–113 and Notice 2007–100
On December 3, 2007, the IRS issued
Notice 2007–100, 2007–52 I.R.B. 1243,
which provided transition relief and guid-
ance on the correction of certain failures
of a nonqualified deferred compensation
plan to comply with § 409A(a) in oper-
ation. On December 5, 2008, the IRS
issued Notice 2008–113, 2008–51 I.R.B.
1305 (Dec. 22, 2008), which clarified and
expanded upon Notice 2007–100. Notice
2008–113 obsoletes Notice 2007–100 for
taxable years beginning on or after Jan-
uary 1, 2009, though taxpayers may rely
on either notice for taxable years begin-
ning before January 1, 2009. For employ-
ers, payers, and service providers entitled
to the transition relief, the notices modi-
fied Notice 2006–100 and Notice 2007–89
with respect to (i) the amount that is re-
quired to be included in income by a ser-
vice provider under § 409A(a), and (ii) the
amount that is required to be reported by
the employer or payer as an amount in-
cludible in income under § 409A(a). Noth-
ing in this notice is intended to limit or
modify any relief available under Notice
2008–113 or Notice 2007–100.
III. INTERIM EMPLOYER AND
PAYER REPORTING AND WAGE
WITHHOLDING PROVISIONS
This section provides interim guidance
on employers’ and payers’ reporting and
wage withholding requirements.
A. Annual Deferrals – Amounts
Reportable on Form W–2 or Form
1099–MISC
Until the Treasury Department and
the IRS issue further guidance, an em-
ployer is not required to report amounts
deferred during the year under a nonquali-
fied deferred compensation plan subject to
§ 409A in box 12 of Form W–2 using code
Y. In addition, until the Treasury Depart-
ment and the IRS issue further guidance,
a payer is not required to report amounts
deferred during the year under a nonquali-
fied deferred compensation plan subject to
§ 409A in box 15a of Form 1099–MISC.
B. Reporting and Withholding –
Amounts Includible in Gross Income
under § 409A
Section 3401(a) provides that for in-
come tax withholding purposes the term
“wages” includes any amount includible
in gross income of an employee under
§ 409A, and payment of such amount is
treated as having been made in the taxable
year in which the amount is includible in
gross income. Thus, an employer must
treat amounts includible in gross income
under § 409A as wages for income tax
withholding purposes. An employer is
required to report such amounts as wages
paid on line 2 of Form 941,Employer’s
QUARTERLY Federal Tax Return,andin
box 1 of Form W–2. An employer must
also report such amounts as § 409A in-
comeinbox12ofFormW–2usingcode
Z. Amounts includible in gross income
under § 409A are supplemental wages
for purposes of determining the amount
of income tax required to be deducted
and withheld under § 3402(a), regard-
less of whether the employer has paid the
employee any regular wages during the
calendar year of the payment.SeePubli-
cation 15,(Circular E), Employer’s Tax
Guide, for the withholding rules with re-
spect to supplemental wages. The amount
required to be withheld is not increased
on account of the additional income taxes
imposed under § 409A(a)(1)(B). To the
extent future guidance requires additional
withholding, that guidance will only be
prospective. Employees should thus be
aware that estimated tax payments may be
required to avoid penalties under § 6654.
For nonemployees, § 6041(g)(2) re-
quires a payer to report to a nonemployee
any amount that is includible in gross in-
come under § 409A that is not treated as
wages under § 3401(a). Thus, a payer must
report amounts includible in gross income
under § 409A and not treated as wages
under § 3401(a) as nonemployee com-
pensation in box 7 of Form 1099–MISC.
A payer must also report such amounts
as § 409A income in box 15b of Form
1099–MISC. Nonemployees should be
aware that estimated tax payments may be
required to avoid penalties under § 6654.
1. Calculation of Amounts Includible in
Income under § 409A(a) – In General
Section 409A(a)(1)(A)(i) provides that
if at any time during a taxable year a non-
qualified deferred compensation plan fails
to meet the requirements of § 409A(a)(2),
(3) or (4), all compensation deferred un-
der the plan for the taxable year and all
preceding taxable years shall be includible
in gross income for the taxable year to the
extent not subject to a substantial risk of
forfeiture and not previously included in
gross income. Accordingly, for purposes
of this notice, the amount includible in
gross income under § 409A(a) and re-
quired to be reported by the employer
or payer equals the portion of the total
amount deferred under the plan (meaning
the aggregated plan as defined for pur-
poses of § 409A) that, as of December 31
of the applicable calendar year, is not sub-
ject to a substantial risk of forfeiture (as
defined for purposes of § 409A), and has
not been included in income in a previous
year, plus any amounts of deferred com-
pensation paid or made available to the
service provider under the plan during the
applicable calendar year. For purposes of
this paragraph, an employer or payer may
treat an amount as previously included in
income if properly reported by the em-
ployer or payer on a Form W–2, Form
1099–MISC, or Form W–2c or corrected
Form 1099–MISC for a prior calendar
year. Thus, amounts properly reported on a
Form W–2 or Form 1099–MISC, or Form
W–2c or corrected Form 1099–MISC for
a prior calendar year should not be re-
ported again on a Form W–2 or Form
1099–MISC for a subsequent calendar
year.
2008–52 I.R.B.1368December 29, 2008

Amounts includible in gross income un-
der § 409A(a) include only amounts de-
ferred that are subject to § 409A. Accord-
ingly, for purposes of this section III.B.1.,
references to amounts deferred under a
plan, including references to account bal-
ances, refer solely to amounts deferred that
are subject to § 409A and not, for exam-
ple, to amounts deferred that were earned
and vested prior to January 1, 2005, and
that are not otherwise subject to § 409A
due to the application of the effective date
provisions. For rules regarding the appli-
cation of the effective date provisions of
§ 409A to nonqualified deferred compen-
sation plans, see § 1.409A–6.
The provisions of this notice addressing
the calculation of the amounts includible in
income are intended as interim guidance
only. The Treasury Department and the
IRS have proposed regulations addressing
(i) the calculation of the amount includi-
ble in income under § 409A(a), and (ii)
the calculation of theadditional taxes un-
der § 409A(a). When the regulations are
finalized and become effective, the final
regulations will obsolete this notice with
respect to those topics. Accordingly, com-
ments with respect to those topics should
be submitted in accordance with the AD-
DRESSES section of the preamble to the
proposed regulations. See 73 Fed. Reg.
74380 (Dec. 8, 2008). For the submission
of comments with respect to other topics
not addressed by the proposed regulations,
see Section V. of this notice.
2. Wage Payment Date of Amounts
Includible in Income under § 409A(a)
Amounts includible in gross income un-
der § 409A(a) that are either actually or
constructively received (disregarding the
application of § 409A) by an employee
are considered a payment of wages by the
employer when received by the employee
for purposes of withholding, depositing,
and reporting the income tax at source on
wages under § 3401(a).
Amounts includible in gross income
under § 409A(a) that are neither actually
nor constructively received (disregard-
ing the application of § 409A) by the
employee during the applicable calendar
year, are treated as a payment of wages
on December 31 of that calendar year
for purposes of withholding, depositing,
and reporting the income tax at source
on wages under § 3401(a). If as of De-
cember 31 of the applicable calendar year,
the employer does not withhold income
tax from the employee on such wages, or
withholds less than the amount of income
taxes required to be withheld under § 3402
from the employee, the employee will
receive credit under § 31 for that calendar
year if the employer follows one of two
possible options. Under the first option,
notwithstanding § 31.6205–1(c)(4), the
employer withholds or recovers from the
employee the amount of the undercollec-
tion after December 31 of the applicable
calendar year and before February 1 of the
subsequent calendar year, and reports as
wages for the quarter ending December
31 of the applicable calendar year, such
amounts that were neither actually nor
constructively received but are includible
in income under § 409A on Form 941 for
that quarter and in box 1 of the employee’s
Form W–2 for 2008. Under the second
option, the employer pays the income
tax withholding liability on behalf of the
employee (without deduction from the
employee’s wages or other reimbursement
by the employee), and reports the gross
amount of wages and the income tax with-
holding liability for the quarter ending
December 31 of the applicable calendar
year, as including such amounts that were
neither actually nor constructively re-
ceived but are includible in income under
§ 409A, as well as the Federal Insurance
Contributions Act, Federal Unemploy-
ment Tax Act, and income tax withholding
wages resulting from paying the income
tax on the employee’s behalf, on Form 941
and Form 940,Employer’s Annual Federal
Unemployment (FUTA) Tax Return,and
in box 1 of the employee’s Form W–2 for
that initial calendar year. See Rev. Rul.
58–113, 1958–1 C.B. 362, and Rev. Rul.
86–14, 1986–1 C.B. 304, for methods of
computing gross wages when paying in-
come tax on behalf of an employee. In
addition, for purposes of the deposit re-
quirements associated with such wages, if
the income tax withholding liability with
respect to such wages is paid to the IRS
by the due date of the Form 941 for the
quarter ending December 31 of the appli-
cable calendar year, on which the wages
are reported, then the amount of income
tax withholding liability will be consid-
ered to have been deposited in accordance
with the rules of § 31.6302–1(c). Thus,
penalties for failure to deposit taxes under
§ 6656 will not be imposed with respect to
such amount.
3. Amounts Includible in Income under
§409A(a)
The following sections provide guid-
ance for calculating the total amount de-
ferred under the plan, for purposes of de-
termining the amount required to be in-
cluded in gross income under § 409A(a) in
accordance with the rules described in sec-
tion III.B.1 of this notice.
a. Account Balance Plans
For a plan that is an account balance
plan as defined in § 1.409A–1(c)(2)(i)(A)
or (B), the amount deferred as of De-
cember 31 of a calendar year equals the
amount that would be treated as an amount
deferred under § 31.3121(v)(2)–1(c)(1)
on December 31 of that calendar year
if the entire account balance under such
plan (including all principal amounts, ad-
justed for income, gain or loss credited
to the service provider’s account) as of
December 31 of that calendar year were
treated as a principal amount credited
to the service provider’s account on De-
cember 31 of that calendar year. These
same calculation rules apply for purposes
of determining the amount reported on
Form 1099–MISC for a calendar year
with respect to a nonemployee partici-
pating in an account balance plan. For
purposes of this section, a plan described
in § 1.409A–1(c)(2)(i)(A) (elective ac-
count balance plan) is not aggregated with
a plan described in § 1.409A–1(c)(2)(i)(B)
(nonelective account balance plan).
b. Nonaccount Balance Plans —
Amounts that are Reasonably
Ascertainable
For a plan that is a nonaccount balance
plan as defined in § 1.409A–1(c)(2)(i)(C),
where the amount deferred is reason-
ably ascertainable within the meaning
of § 31.3121(v)(2)–1(e)(4), the amount
deferred as of December 31 of a cal-
endar year equals the present value of
all future payments to which the service
provider has obtained a legally binding
right as of December 31 of that calen-
dar year, calculated in accordance with
§ 31.3121(v)(2)–1(c)(2) as if the service
December 29, 200813692008–52 I.R.B.

provider had obtained all of such rights on
December 31 of that calendar year. Sec-
tion 31.3121(v)(2)–1(e)(4)(i)(B) provides
that an amount deferred is considered rea-
sonably ascertainable on the first date on
which the amount, form, and commence-
ment date of the benefit payments attrib-
utable to the amount deferred are known,
and the only actuarial or other assumptions
regarding future events or circumstances
needed to determine the amount deferred
are interest and mortality. An amount does
not fail to be reasonably ascertainable if
alternative forms or commencement dates
are available that provide an actuarially
equivalent benefit to the normal benefit
commencing at the normal commence-
ment date. In addition, an amount deferred
does not fail to be reasonably ascertainable
on a date merely because the exact amount
of the benefit payable cannot readily be
calculated on that date or merely because
the exact amount of the benefit payable
depends on future changes in the cost of
living. If the exact amount of the benefit
payable depends on future changes in the
cost of living, the amount deferred must be
determined using a reasonable assumption
as to the future changes in the cost of liv-
ing. These same rules apply for purposes
of determining the amount reported on
Form 1099–MISC for a calendar year with
respect to a nonemployee participating in
a nonaccount balance plan.
c. Amounts Deferred Under Stock
Rights Covered by § 409A
For a plan that provides stock rights
as defined in § 1.409A–1(c)(2)(i)(H), the
amount deferred as of December 31 of a
calendar year equals the amount that the
service provider would be required to in-
clude in income if the stock rights were
immediately exercisable and exercised on
December 31 of that calendar year. In gen-
eral, this will mean that with respect to
a stock right outstanding as of December
31 of a calendar year, the amount deferred
as of December 31 of that calendar year
equals the fair market value of the under-
lying stock less the sum of the exercise
priceandanyamountpaidbytheservice
provider for the stock right.
d. Other Deferred Amounts
For all deferred amounts not addressed
in section III.B.2.a, b, or c of this notice,
the amount deferred as of December 31 of
a calendar year must be determined under a
reasonable, good faith application of a rea-
sonable, good faith method. For this pur-
pose, a reasonable, good faith application
of a reasonable, good faith method gener-
ally must reflect reasonable, good faith as-
sumptions with respect to any contingen-
cies as to the timing or amount of any pay-
ment. Generally, the use of an assumption
with respect to a contingency that results in
the amount deferred being the lowest po-
tential value of the future payment will be
presumed not to be a reasonable, good faith
assumption unless clear and convincing
evidence demonstratesthat the assumption
is reasonable. For example, where a pay-
mentmaybemadeinmorethanoneform,
the assumption that the payment will be
made in the least valuable form will be
presumed not to be a reasonable, good
faith assumption unless clear and convinc-
ing evidence demonstrates otherwise. For
the ability to rely on the assumptions con-
cerning time and form of payment set forth
in the proposed regulations, see section
V of this notice. If a portion of a de-
ferred amount can be calculated under sec-
tion III.B.2.a, b, or c of this notice, a rea-
sonable, good faith method of calculation
will in fact be a combination of two meth-
ods. The method applicable under section
III.B.2.a, b, or c of this notice must be ap-
plied to the portion, and the balance of the
deferred amount must be determined under
a reasonable good faith method.
4. Amounts Includible in Income under
§ 409A(b)
Section 409A(b)(1) provides generally
that in the case of assets set aside (directly
or indirectly) in a trust (or other arrange-
ment determined by the Secretary) for pur-
poses of paying deferred compensation un-
der a nonqualified deferred compensation
plan, such assets shall be treated as prop-
erty transferred in connection with the per-
formance of services for purposes of § 83
whether or not such assets are available to
satisfy claims of general creditors at the
time set aside if such assets (or such trust
or other arrangement) are located outside
of the United States, or at the time trans-
ferred if such assets (or such trust or other
arrangement) are subsequently transferred
outside of the United States.
Section 409A(b)(2) provides that in the
case of compensation deferred under a
nonqualified deferred compensation plan,
there is a transfer ofproperty within the
meaning of § 83 with respect to such com-
pensation as of the earlier of the date on
which the plan first provides that assets
will become restricted to the provision
of benefits under the plan in connection
with a change in the employer’s financial
health, or the date on which assets are
so restricted, whether or not such assets
are available to satisfy claims of general
creditors.
Section 409A(b)(3) provides that if,
during a restricted period with respect to
a single-employer defined benefit pension
plan, assets are set aside or reserved in, or
transferred to, a trust or other arrangement
for purposes of paying deferred compen-
sation for an applicable covered employee
under a nonqualified deferred compensa-
tion plan of the plan sponsor or a member
of its controlled group, or a nonqualified
deferred compensation plan of the plan
sponsor or a member of its controlled
group provides that assets will become
restricted to the provision of benefits, or
assets are so restricted, in connection with
such restricted period (or similar financial
measure determined by the Secretary), the
assets are treated as a transfer of property
forpurposesof§83whetherornotsuch
assets are available to satisfy claims of
general creditors.
Section 409A(b)(4) provides that for
each taxable year that assets treated as
transferred under § 409A(b) remain set
aside in a trust or other arrangement sub-
ject to § 409A(b)(1) or (2), any increase
in value in, or earnings with respect to,
such assets shall be treated as an additional
transfer of property under this subsection
(to the extent not previously included in in-
come).
Notice 2006–33, 2006–1 C.B. 754,
provides transition guidance related to
the application of § 409A(b) to certain
arrangements outstanding as of March 21,
2006. Under that relief, amounts trans-
ferred to trusts under the arrangement on
or before March 21, 2006, that triggered
the income inclusion and additional taxes
under § 409A(b), or arrangements that oth-
erwise triggered the income inclusion and
additional taxes under § 409A(b) on or be-
fore March 21, 2006, generally are treated
as not having triggered the inclusion or
2008–52 I.R.B.1370December 29, 2008

additional tax provisions of § 409A(b),
provided that the arrangements become
compliant with § 409A(b) by January 1,
2008. Section VI of Notice 2007–78,
2007–41 I.R.B. 780, and Notice 2007–86
provide that such relief is not extended be-
yond December 31, 2007, and nothing in
this notice is intended to modify or extend
that relief.
However, where amounts have been
transferred to a trust under an arrange-
ment that triggers the income inclusion
and additional taxes under § 409A(b), or
the arrangement otherwise triggers the in-
come inclusion and additional taxes under
§ 409A(b), and the transfer is not eligible
for the relief in Notice 2006–33 (for ex-
ample because the transfer occurred after
March 21, 2006, or the arrangement is
not made compliant with § 409A(b) by
January 1, 2008), employers and payers
must make a reasonable, good faith appli-
cation of a reasonable, good faith method
to determine the amount includible in
income for purposes of reporting. In addi-
tion, employers must treat the amount as
wages for purposes of § 3401. Amounts
includible in income under § 409A(b) that
are not eligible for the relief in Notice
2006–33 are treated as wages paid on the
date the deemed transfer of property under
§83describedin§409A(b)wouldbe
required to be included in income under
the rules of § 83, for purposes of withhold-
ing, depositing and reporting the income
tax at source on wages under § 3401(a).
For amounts includible in income un-
der § 409A(b) that were eligible for the
relief in Notice 2006–33 (“grace period
assets”) but are includible in income un-
der § 409A(b) because the arrangement is
not made compliant with § 409A(b) on or
before December 31, 2007, Section VI of
Notice 2007–78 provides that the date of
the deemed transfer of property is January
1, 2008.
C. Protection from Future Additional
Reporting or Withholding
An employer or payer who complies
with the rules of this notice regarding the
calculation of the amounts includible in
gross income under § 409A and withhold-
ing and reporting for a calendar year will
not be liable for additional income tax
withholding or penalties, or be required
to file a subsequentcorrected informa-
tion return or furnish a corrected payee
statement, as a result of future published
guidance with respect to the calculation of
amounts includible in gross income under
§ 409A. If it is subsequently determined
that the employer did not apply the rules
of this notice in determining amounts in-
cludible in gross income under § 409A and
in wages under § 3401(a) for a calendar
year, any recalculation of these amounts
will result in additional liability for in-
cometaxwithholdingunder§3403for
these years, plus any applicable penalties
(e.g., §§ 6721 and 6722). In addition, an
employer or payer who does not apply the
rules of this notice in determining amounts
includible in gross income under § 409A
and in wages under §3401(a) for a calen-
dar year will be required to file an original
or a corrected information return and
furnish an original or a corrected payee
statement. For purposes of determining
any amount includible in income under
§ 409A in a subsequent year, an amount
will not be treated as previously included
in income unless the amount has been
reported appropriately on an information
return and payee statement, or has been
included in income bythe service provider
in a previous year.
IV. SERVICE PROVIDER
REQUIREMENTS WITH RESPECT
TO AMOUNTS INCLUDIBLE IN
GROSS INCOME UNDER § 409A
This section provides guidance on ser-
vice providers’ income tax reporting and
tax payment requirements for a calendar
year with respect to deferrals of compen-
sation that are includible in gross income
under § 409A.
A. Amounts Required to be Included
in Income
A service provider must report as in-
come and pay any taxes due relating to
amounts includible in gross income under
§ 409A for a calendar year. For purposes
of determining the amount required to be
included in income under § 409A, the same
standards apply to a service provider as ap-
ply to an employer or payer when calcu-
lating the amount required to be reported
as income under § 409A, provided that an
amount is treated as previously included
in income only if the amount has been in-
cluded in the service provider’s income
in a previous taxable year (regardless of
whether reported on a Form W–2 or Form
1099–MISC). Accordingly, an employee
or other service provider must calculate the
amounts required to be included in gross
income under the same methods and stan-
dards as set forth in section III. Whether
a service provider has complied with the
requirements of this notice is determined
independently of whether the employer or
payer has complied with the requirements
of this notice. Thus, if the service provider
includes in income the same amount re-
ported by the employer or payer, the ser-
vice provider has not necessarily complied
with the terms of this notice.
If the service provider does not report
and pay taxes due with respect to amounts
includible in gross income under § 409A
in accordance with theguidance contained
in this notice, the IRS may assert addi-
tional income taxes and penalties under
§§ 6651(a)(1) and (2), 6654, and 6662 if
it is determined that the amount of taxes
reported and paid for calendar year 2008
was underreported or underpaid. Interest
imposed under Chapter 67 of the Code will
apply to any underpayments of tax result-
ing from a service provider’s failure to in-
clude amounts includible in gross income
under § 409A. For purposes of determin-
ing the amount includible in income un-
der § 409A in a subsequent year, the ser-
vice provider may treat an amount as pre-
viously included in income only if the ser-
vice provider has actually and properly in-
cluded the amount in gross income in a
previous year.
B. Calculation of Additional Tax under
§ 409A(a)(1)(B)(i)(I)
Section 409A(a)(1)(B)(i)(I) pro-
vides that if compensation is required
to be included in gross income under
§ 409A(a)(1)(A), the tax imposed on
such income is increased by the sum
of two additional taxes equal to the
amount of interest determined under
§ 409A(a)(1)(B)(ii) plus an amount equal
to 20% of the compensation which is re-
quired to be included in gross income.
Section 409A(a)(1)(B)(ii) provides that
the amount of interest is the amount of
interest at the underpayment rate plus 1
percentage point on the underpayments
that would have occurred had the deferred
compensation been includible in gross
December 29, 200813712008–52 I.R.B.

income for the taxable year in which first
deferred or, if later, the first taxable year in
which such deferred compensation is not
subject to a substantial risk of forfeiture.
Section 885(d)(1) of the Act provides
that § 409A generally applies to amounts
deferred after December 31, 2004. Sec-
tion 885(d)(2)(B) of the Act provides that
amounts deferred in taxable years be-
ginning before January 1, 2005, shall be
treated as amounts deferred in a taxable
year beginning on or after such date if
the plan under which the deferral is made
is materially modified after October 3,
2004. Accordingly, for purposes of the
calculation of the additional tax under
§ 409A(a)(1)(B)(ii), taxpayers may treat
amounts deferred under a plan that were
originally deferred on or before January 1,
2005, but became subject to § 409A due to
the material modification of the plan after
October 3, 2004, as deferred on January 1,
2005.
V. RELIANCE ON THE PROPOSED
REGULATIONS
The Treasury Department and the IRS
recently proposed regulations addressing
the topics addressed by this notice with
respect to (i) the calculation of the amount
includible in income under § 409A(a) (in-
cluding the identification and treatment of
deferred amounts subject to a substantial
risk of forfeiture and deferred amounts
previously included in income), and (ii)
the calculation of theadditional taxes un-
der § 409A(a). See 73 Fed. Reg. 74380
(Dec. 8, 2008). For example, the proposed
regulations would require that certain as-
sumptions be used if a deferred amount
may be payable at alternative times and
forms of payment. Until the Treasury
Department and the IRS issue further
guidance, compliance with the provisions
of the proposed regulations with respect
to the calculation of the amount includi-
ble in income under § 409A(a) and the
calculation of the additional taxes under
§ 409A will be treated as compliance with
the requirements of this notice, provided
that the taxpayer complies with all the
provisions of the proposed regulations.
VI. REQUEST FOR COMMENTS
The provisions of this notice are in-
tended as interim guidance only. The
Treasury Department and the IRS have
proposed regulations addressing (i) the
calculation of the amount includible in
income under § 409A(a) and (ii) the cal-
culation of the additional taxes under
§ 409A(a). When the regulations are fi-
nalized and become effective, the final
regulations will obsolete this notice with
respect to those topics. Accordingly, com-
ments with respect to those topics should
be submitted in accordance with the AD-
DRESSES section of the preamble to the
proposed regulations. See 73 Fed. Reg.
74380 (Dec. 8, 2008). Comments with
respect to other topics not addressed by
the proposed regulations, such as the cal-
culation of amounts includible in income
under § 409A(b), should be submitted in
accordance withthis section.
Comments must be submitted by March
29, 2009. All materials submitted will be
available for public inspection and copy-
ing. Comments may be submitted to In-
ternal Revenue Service, CC:PA:LPD:RU
(Notice 2008–115), Room 5203, PO Box
7604, Ben Franklin Station, Washing-
ton, DC 20044. Submissions may also
be hand-delivered Monday through Fri-
day between the hours of 8 a.m. and
4 p.m. to the Courier’s Desk at 1111
Constitution Avenue, NW, Washington,
DC 20224, Attn: CC:PA:LPD:RU (Notice
2008–115), Room 5203. Submissions
may also be sent electronically via the
internet to the following email address:
Notice.comments@irscounsel.treas.gov.
Include the notice number (Notice
2008–115) in the subject line.
VII. EFFECT ON OTHER
DOCUMENTS
Notice 2005–1 is modified. No-
tice 2006–100, Notice 2007–89, Notice
2007–100, and Notice 2008–113 are not
affected by this notice.
VIII. EFFECTIVE DATE
This notice is effective with respect
to employers’ and payers’ reporting and
wage withholding requirements and with
respect to service providers’ filing re-
quirements and tax payment obligations
relating to amounts includible in gross
income under § 409A for service provider
taxable years beginning on or after Jan-
uary 1, 2008.
IX. DRAFTING INFORMATION
The principal author of this notice is
Don M. Parkinson of the Office of Di-
vision Counsel/Associate Chief Counsel
(Tax Exempt and Governments Entities),
although other Treasury and IRS offi-
cials participated in its development. For
further information on the provisions of
this notice addressing the calculation of
the amount includible in income under
§ 409A, contact Stephen Tackney at (202)
927–9639; for further information on
other provisions of this notice, including
the reporting and withholding provisions,
contact Mr. Parkinson at (202) 622–6040
(not toll-free numbers).
Extension of Interim Guidance
on Section 67 Limitations on
Estates or Trusts
Notice 2008–116
PURPOSE
This notice extends to taxable years that
begin before January 1, 2009, the interim
guidance provided in Notice 2008–32,
2008–11 I.R.B. 593, on the treatment un-
der § 67 of the Internal Revenue Code
of investment advisory costs and other
costs subject to the 2–percent floor under
§ 67(a) that are integrated as part of one
commission or fee paid to the trustee or
executor (“BundledFiduciary Fee”) and
are incurred by a trust other than a grantor
trust (nongrantor trust) or an estate. Notice
2008–32 is modified and superseded.
BACKGROUND
On January 16, 2008, the Supreme
Court of the United States issued its de-
cision inMichael J. Knight, Trustee of
William L. Rudkin Testamentary Trust v.
Commissioner, 552 U.S. ___, 128 S. Ct.
782 (2008), holding that costs paid to
an investment advisor by a nongrantor
trust or estate generally are subject to
the 2–percent floor for miscellaneous
itemized deductions under § 67(a). The
IRS and the Treasury Department expect
to issue regulations under § 1.67–4 of the
Income Tax Regulations consistent with
the Supreme Court’s holding inKnight.
The regulations also will address the issue
raised when a nongrantor trust or estate
2008–52 I.R.B.1372December 29, 2008

pays a Bundled Fiduciary Fee for costs
incurred in-house by the fiduciary, some
of which are subject to the 2–percent floor
and some of which are fully deductible
without regard to the 2–percent floor. The
regulations, however, will not be issued in
time to be applicable to the 2008 taxable
year.
Notice 2008–32 provides interim guid-
ance that specifically addresses the treat-
ment of a Bundled Fiduciary Fee. In short,
Notice 2008–32 provides that taxpayers
will not be required to determine the por-
tion of a Bundled Fiduciary Fee that is sub-
ject to the 2–percent floor under § 67 for
any taxable year beginning before January
1, 2008.
EXTENSION OF INTERIM GUIDANCE
Taxpayers will not be required to deter-
mine the portion of a Bundled Fiduciary
Fee that is subject to the 2–percent floor
under § 67 for any taxable year beginning
before January 1, 2009. Instead, for each
such taxable year, taxpayers may deduct
the full amount of the Bundled Fiduciary
Fee without regard to the 2–percent floor.
Payments by the fiduciary to third par-
ties for expenses subject to the 2–percent
floor are readily identifiable and must be
treated separately from the otherwise Bun-
dled Fiduciary Fee.
EFFECT ON OTHER DOCUMENTS
Notice 2008–32 is modified and super-
seded.
CONTACT INFORMATION
The principal author of this notice
isJenniferN.KeeneyoftheOfficeof
Associate Chief Counsel (Passthroughs
& Special Industries). For further in-
formation regarding this notice, contact
Jennifer N. Keeney at (202) 622–3060
(not a toll-free call).
26 CFR 601.601: Rules and regulations.
(Also: Part I, §§ 301, 305.)
Rev. Proc. 2008–68
SECTION 1. PURPOSE
This revenue procedure provides tem-
porary guidance regarding certain stock
distributions by real estate investment
trusts (REITs).
SECTION 2. BACKGROUND
.01 Section 305(a) of the Internal Rev-
enue Code (“Code”) provides that, except
as otherwise provided in section 305, gross
income does not include the amount of any
distribution of the stock of a corporation
made by such corporation to its sharehold-
ers with respect to its stock.
.02 Section 305(b)(1) provides that sec-
tion 305(a) shall not apply to a distribution
by a corporation of its stock, and the distri-
bution shall be treated as a distribution of
property to which section 301 applies, if
the distribution is, at the election of any of
the shareholders (whether exercised before
or after the declaration thereof), payable
either in its stock or in property.
.03 Section 305(b)(2) provides that sec-
tion 305(a) shall not apply to a distribution
by a corporation of its stock, and the distri-
bution shall be treated as a distribution of
property to which section 301 applies, if
the distribution (or a series of distributions
of which such distribution is one) has the
result of the receipt of property by some
shareholders, and an increase in the pro-
portionate interests of other shareholders
in the assets or earnings and profits of the
corporation.
.04 Section 1.305–2 of the Income Tax
Regulations provides that under section
305(b)(1), if any shareholder has the right
to an election or option with respect to
whether a distribution shall be made either
in money or any other property, or in stock
or rights to acquire stock of the distribut-
ing corporation, then, with respect to all
shareholders, the distribution of stock or
rights to acquire stock is treated as a dis-
tributionofpropertytowhichsection301
applies regardless of—
(1) Whether the distribution is actually
made in whole or in part in stock or in stock
rights;
(2) Whether the election or option is
exercised or exercisable before or after the
declaration of the distribution;
(3) Whether the declaration of the dis-
tribution provides that the distribution will
be made in one medium unless the share-
holder specifically requests payment in the
other;
(4) Whether the election governing the
nature of the distribution is provided in the
declaration of the distribution or in the cor-
porate charter or arises from the circum-
stances of the distribution; or
(5) Whether all or part of the sharehold-
ers have the election.
.05 Section 1.305–1(b)(2) provides that
where a corporation which regularly dis-
tributes its earnings and profits, such as a
regulated investment company, declares
a dividend pursuant to which the share-
holders may elect to receive either money
or stock of the distributing corporation
of equivalent value, the amount of the
distribution of the stock received by any
shareholder electing to receive stock will
be considered to equal the amount of the
money which could have been received
instead.
SECTION 3. SCOPE AND
APPLICATION
The Internal RevenueService will treat
a distribution of stock by a corporation that
qualifies as a REIT under part II of sub-
chapter M of the Code as a distribution of
property to which section 301 applies by
reason of section 305(b), and the amount
of such distribution of stock will be con-
sidered to equal the amount of the money
which could have been received instead,
if —
(1) The distribution is made by the cor-
poration to its shareholders with respect to
its stock;
(2) Stock of the corporation is publicly
traded on an established securities market
in the United States;
(3) The distributionis declared with re-
spect to a taxable year ending on or before
December 31, 2009;
(4) Pursuant to such declaration each
shareholder may elect to receive its entire
entitlement under the declaration in either
money or stock of the distributing corpo-
ration of equivalent value subject to a lim-
itation on the amount of money to be dis-
tributed in the aggregate to all shareholders
(the “Cash Limitation”), provided that—
(a) such Cash Limitation is not less than
10% of the aggregate declared distribution,
and
(b) if too many shareholders elect to
receive money, each shareholder electing
to receive money will receive apro rata
amount of money corresponding to their
respective entitlement under the declara-
tion, but in no event will any shareholder
December 29, 200813732008–52 I.R.B.

electing to receive money receive less than
10% of their entire entitlement under the
declaration in money;
(5) The calculation of the number of
shares to be received by any shareholder
will be determined, as close as practicable
to the payment date, based upon a formula
utilizing market prices that is designed to
equate in value the number of shares to be
received with the amount of money that
could be received instead. For purposes
of applying subsection (4) of this Section
3, the value of the shares to be distributed
shall be determined by using the formula
described in the preceding sentence; and
(6) With respect to any shareholder par-
ticipating in a dividend reinvestment plan
(“DRIP”), the DRIP applies only to the ex-
tent that, in the absence of the DRIP, the
shareholder would have received the dis-
tribution in money under subsection (4) of
this Section 3.
SECTION 4. EFFECTIVE DATE
This revenue procedure is effective
with respect to distributions declared on
or after January 1, 2008.
SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is T. Ian Russell of the Office of
Associate Chief Counsel (Corporate). For
further information regarding this revenue
procedure, contact T. Ian Russell at (202)
622–7550 (not a toll-free call).
2008–52 I.R.B.1374December 29, 2008

Part IV. Items o
fGeneralInterest
Deletions Fro
m Cumulative
List of Organi
zations
Contribution
stoWhich
are Deductib
le Under Section
170 of the Cod
e
Announceme
nt 2008–126
The Interna
l Revenue Service has re-
voked its de
termination that the organi-
zations lis
ted below qualify as organiza-
tions descr
ibed in sections 501(c)(3) and
170(c)(2) o
f the Internal Revenue Code of
1986.
Generally
, the Service will not disallow
deduction
s for contributions made to a
listed org
anization on or before the date
of announc
ement in the Internal Revenue
Bulletin t
hat an organization no longer
qualifie
s. However, the Service is not
preclude
d from disallowing a deduction
for any co
ntributions made after an or-
ganizati
on ceases to qualify under section
170(c)(
2) if the organization has not timely
filed a s
uit for declaratory judgment under
section
7428 and if the contributor (1) had
knowled
ge of the revocation of the ruling
or deter
mination letter, (2) was aware that
such re
vocation was imminent, or (3) was
in part
responsible for or was aware of the
activi
ties or omissions of the organization
that br
ought about this revocation.
If on th
e other hand a suit for declara-
tory ju
dgment has been timely filed,
contri
butions from individuals and orga-
nizat
ions described in section 170(c)(2)
that a
re otherwise allowable will continue
to be d
eductible. Protection under section
7428(
c) would begin on December 29,
2008,
and would end on the date the court
firs
t determines that the organization is
not d
escribed in section 170(c)(2) as more
part
icularly set forth in section 7428(c)(1).
For i
ndividual contributors, the maximum
dedu
ction protected is $1,000, with a hus-
ban
d and wife treated as one contributor.
Thi
s benefit is not extended to any indi-
vid
ual, in whole or in part, for the acts or
omi
ssions of the organization that were
the
basis for revocation.
Pet
erson Family Foundation
Sal
t Lake City, UT
A1 C
redit Counseling, Inc.
Ft.
Smith, AR
Nat Turner Leg
al Defense Fund
Garland, TX
SOFLO Ballet,
Inc.
Miramar, FL
Family Health
Services, Inc.
Bellefonte, P
A
Hometown Hero
es Memorial
Organization
,Inc.
Landrum, SC
ClearADebt, I
nc.
Dania, FL
Rapid Hope Int
ernational
Hurst, TX
Spanish Commu
nity
Yonkers, NY
All Terrier Re
scue Hunters Crossing
Aloha, OR
Women Helping
Women
Houston, TX
Safe Haven Hom
es, Inc.
Hartland, MI
AJH Housing
St. Louis, MO
Restoration
& Reconciliation
Outreach, In
c.
Miami, FL
Williams Peu
rifoy Personal Care
Home, Inc.
Philadelphi
a, PA
Capital Gymn
astics Booster Club, Inc.
Springfield
,GA
Information Reporting for
Discharges of Indebtedness;
Correction
Announcement 2008–127
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendment.
SUMM
ARY: This document contains a
cor
rection to final and temporary reg-
ula
tions (T.D. 9430, 2008–48 I.R.B.
120
5) that were published in theFed-
era
lRegisteron Monday, Novem-
ber
10, 2008 (73 FR 66539) relating
to
information returns for cancellation
of
indebtedness by certain entities.
Th
e temporary regulations will avoid
pr
emature information reporting from
ce
rtain businesses that are currently
requiredtore
port and will reduce the
number of info
rmation returns required to
be filed. The t
emporary regulations will
impact certai
n lenders who are currently
requiredtofi
le information returns under
the existing
regulations.
EFFECTIVE DATE: This correction is ef-
fective December 11, 2008, and is applica-
ble on November 10, 2008.
FOR FURTHER INFORMATION
CONTACT: Barbara Pettoni, (202)
622–4910 (not a toll-free number).
SUPPLEMEN
TARY INFORMATION:
Background
The final and temporary regulations
that are the subject of this document are
under section 6050P of the Internal Rev-
enue Code.
Need for
Correction
As published, final and temporary reg-
ulations (T.D. 9430) contains an error that
may prove to be misleading and is in need
of clarification.
*****
Corre
ction of Publication
Accordingly, 26 CFR part 1 is cor-
rected by making the following correcting
amendment:
PART 1—INCOME TAXES
Para
graph 1. The authority citation for
par
t 1 continues to read, in part, as follows:
Auth
ority: 26 U.S.C. 7805 * * *
Par.
2. Section 1.6050P–1T is amended
by re
vising an entry for (a) through
(b)
(2)(i)(G) [Reserved] as follows:
§ 1.6050P–1T Information reporting for
discharges of indebtedness by certain
entities (temporary).
(a) through (b)(2)(i)(G) [Reserved].
For further guidance, see § 1.6050P–1(a)
through (b)(2)(i)(G).
*
****
December 29, 200813752008–52 I.R.B.

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 December 10,
2008, 8:45 a.m., and published in the issue of the Federal
Register for December 11, 2008, 73 F.R. 75326)
Procedure and Administration;
Tax Shelter Registration;
Correction
Announcement 2008–128
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendment.
SUMMARY: This document contains
a correction to temporary regulations
(T.D. 7964, 1982–2 C.B. 263) that were
published in theFederal Registeron
Wednesday, August 15, 1984 (49 FR
32712) relating to tax shelter registration.
In addition, the text of the temporary reg-
ulations set forth in this document also
serves as the text of the proposed regu-
lations cross-referenced in the Notice of
Proposed Rulemaking in the Proposed
Rules section of that issue of theFederal
Register. Changes to the applicable tax
law were made by the Tax Reform Act of
1984. The regulations affect organizers,
sellers, investors and certain other persons
associated with investments that are con-
sidered tax shelters.
DATES: This correction is effective De-
cember 2, 2008, and is applicable after Au-
gust 31, 1984.
FOR FURTHER INFORMATION
CONTACT: Charles D. Wien, (202)
622–3070 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations that are the
subject of this document are under sec-
tions 6707 and 6111 of the Internal Rev-
enue Code prior to The American Jobs
Creation Act of 2004, Public Law 108–357
(118 Stat. 1418), which was enacted on
October 22, 2004.
Need for Correction
As published, temporary regulations
(T.D. 7964) contain an error that may
prove to be misleading and is in need of
clarification.
*****
Correction of Publication
Accordingly, 26 CFR part 301 is cor-
rected by making the following correcting
amendment:
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 301.6111–1T A–30 is
amended by revising the first sentence to
read as follows:
§ 301.6111–1T Questions and answers
relating to tax shelter registration.
*****
A–30. No. The performance of an act
described in A–27 through A–29 of this
section will not constitute participation in
the organization or management of a tax
shelter unless the person performing the
act is related to the tax shelter (or any prin-
cipal organizer of the tax shelter) or the
person participates inthe entrepreneurial
risks or benefits of the tax shelter. * * *
*****
Guy Traynor,
Acting Chief, Publications
and Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on December 1,
2008, 8:45 a.m., and published in the issue of the Federal
Register for December 2, 2008, 73 F.R. 73180)
2008–52 I.R.B.1376December 29, 2008

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.
December 29, 2008i2008–52 I.R.B.

Numerical Finding List
1
Bulletins 2008–27 through 2008–52
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
2008-122, 2008-51 I.R.B.1351
2008-123, 2008-51 I.R.B.1351
2008-124, 2008-52 I.R.B.1359
2008-125, 2008-52 I.R.B.1363
2008-126, 2008-52 I.R.B.1375
2008-127, 2008-52 I.R.B.1375
2008-128, 2008-52 I.R.B.1376
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
Notices— Continued:
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
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
2008-104, 2008-51 I.R.B.1298
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
2008-110, 2008-51 I.R.B.1298
2008-111, 2008-51 I.R.B.1299
2008-112, 2008-51 I.R.B.1301
2008-113, 2008-51 I.R.B.1305
2008-114, 2008-51 I.R.B.1322
2008-115, 2008-52 I.R.B.1367
2008-116, 2008-52 I.R.B.1372
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-148326-05, 2008-51 I.R.B.1325
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.680
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
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.
2008–52 I.R.B.iiDecember 29, 2008

Proposed Regulations— Continued:
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
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
2008-68, 2008-52 I.R.B.1373
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
Revenue Rulings— Continued:
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
2008-53, 2008-49 I.R.B.1231
2008-54, 2008-52 I.R.B.1352
Social Security Contribution and Benefit
Base; Domestic Employee Coverage
Threshold:
2008-103, 2008-46 I.R.B.1156
Tax Conventions:
2008-124, 2008-52 I.R.B.1359
2008-125, 2008-52 I.R.B.1363
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
Treasury Decisions— Continued:
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
December 29, 2008iii2008–52 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2008–27 through 2008–52
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
2001-16
Clarified by
Notice 2008-111, 2008-51 I.R.B.1299
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
2005-1
Modified by
Notice 2008-115, 2008-52 I.R.B.1367
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
2006-100
Modified by
Notice 2008-113, 2008-51 I.R.B.1305
Notices— Continued:
2007-2
Modified by
Notice 2008-104, 2008-51 I.R.B.1298
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
2007-53
Updated by
Notice 2008-97, 2008-44 I.R.B.1080
2007-89
Modified by
Notice 2008-113, 2008-51 I.R.B.1305
2007-100
Obsoleted by
Notice 2008-113, 2008-51 I.R.B.1305
2008-20
Superseded by
Notice 2008-111, 2008-51 I.R.B.1299
2008-32
Modified and superseded by
Notice 2008-116, 2008-52 I.R.B.1372
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-140029-07
Hearing scheduled by
Ann. 2008-122, 2008-51 I.R.B.1351
REG-151135-07
Hearing scheduled by
Ann. 2008-64, 2008-28 I.R.B.114
Proposed Regulations— Continued:
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
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
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.
2008–52 I.R.B.ivDecember 29, 2008

Revenue Procedures— Continued:
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
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
Revenue Procedures— Continued:
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
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
Revenue Rulings— Continued:
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:
7964
Corrected by
Ann. 2008-128, 2008-52 I.R.B.1376
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
9430
Corrected by
Ann. 2008-127, 2008-52 I.R.B.1375
December 29, 2008v2008–52 I.R.B.

INDEX
Internal Revenue Bulletins 2008–27 through
2008–52
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Accrual rule for defined benefit plans under section 411(b)(1)(B),
application (REG–100464–08) 32,313
Amortization period, extension (RP 67) 48,1211
Application of section 457(f) tocertain arrangements regarding
part-year compensation (Notice 62) 29,130
Calculation of amount includible in income under section 409A
(REG–148326–05) 51,1325
Closing agreements, Employee Plans Compliance Resolution
System (EPCRS) (RP 50) 35,464
Contributions, limitations on benefits and contributions, cost-of-
living adjustments (Notice 102) 45,1106
Corrections of failures to comply with the requirements of sec-
tion 409A (Notice 113) 51,1305
Definition of “outside director” (RR 32) 27,6
Determination letters, staggered remedial amendment period (RP
56) 40,826
Disaster relief, Hurricane Ike (Notice 87) 42,930
Employee stock purchase plans, rules (REG–106251–08) 39,
774; hearing scheduled (Ann 121) 50,1296
Executive compensation, guidance for sections 162(m)(5) and
280G(e) (Notice 94) 44,1070
Fast Track Settlement (FTS):
For SB/SE taxpayers, expedite case resolution (Ann 110) 48,
1224
For TE/GE taxpayers, early and timely settlements (Ann 105)
48,1219
Full funding limitations, weighted average interest rates, seg-
ment rates for:
July 2008 (Notice 65) 30,182
August 2008 (Notice 69) 34,419
September 2008 (Notice 75) 38,719
October 2008 (Notice 93) 43,1002
EMPLOYEE PLANS—Cont.
November 2008 (Notice 105) 48,1208
December 2008 (Notice 112) 51,1301
Individual Retirement Accounts (IRAs), converting amounts to
Roth IRAs (TD 9418) 38,713
Letter rulings, nonqualified deferred compensation, no-rule areas
(RP 61) 42,934
Minimum hospital length-of-stay for mothers and newborns (TD
9427) 47,1179
Mortality tables:
Determining present value (TD 9419) 40,790
Procedures for obtaining approval to use plan-specific substi-
tute mortality tables (RP 62) 42,935
Updated static mortality tables for the years 2009 through
2013 (Notice 85) 42,905
Multiemployer plan funding guidance, hearing scheduled for
REG–151135–07 (Ann 64) 28,114;correction(Ann71)32,
321
Prohibition against discrimination under group health plan based
on genetic information, request for comments (Ann 107) 46,
1162
Proposed Regulations:
26 CFR 1.401(a)(9)–1, –6, amended; 1.403(b)–6,
amended; reasonable good faith interpretation of re-
quired minimum distribution rules by governmental plans
(REG–142040–07) 34,451
26 CFR 1.401(a)–13, –20, amended; 1.402(f)–1, amended;
1.411(a)–11, amended; 1.417(e)–1, amended; notice to par-
ticipants of consequences of failing to defer receipt of qual-
ified retirement plan distributions, expansion of applicable
election period and period for notices (REG–107318–08)
45,1131
26 CFR 1.409A–0, amended; 1.409A–4, added; further guid-
ance on the application of section 409A to nonqualified de-
ferred compensation plans (REG–148326–05) 51,1325
26 CFR 1.411(b)–1, amended; accrual rules for defined ben-
efit plans (REG–100464–08) 32,313
26 CFR 1.421–1, amended; 1.422–2, –5, amended; 1.423–1,
–2, revised; employee stock purchase plans under section
423 (REG–106251–08) 39,774; hearing scheduled (Ann
121) 50,1296
26 CFR 1.432; multiemployer plan funding guidance, hearing
scheduled for REG–151135–07 (Ann 64) 28,114; correc-
tion (Ann 71) 32,321
26 CFR 1.6039–1, revised; 1.6039–2, added; infor-
mation reporting requirements under section 6039
(REG–103146–08) 37,701; hearing scheduled (Ann 102)
43,1011
26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2,
amended; 1.6694–0, –1, –2, revised; 1.6694–3, –4,
amended; 1.6695–1, revised; 1.6695–2, amended;
1.6696–1, revised; 301.7701–15, amended; tax re-
turn preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
Qualified retirement plans:
Distributions for governmental plans, normal retirement age
(Notice 98) 44,1080
2008–52 I.R.B.viDecember 29, 2008

EMPLOYEE PLANS—Cont.
Notice to participants of consequences of failing to defer re-
ceipt of distributions (REG–107318–08) 45,1131
Qualification, plan sponsorship (RR 45) 34,403
Remedial amendment period (Notice 108) 50,1275
Reasonable good faith interpretation of required minimum dis-
tribution rules by governmental plans (REG–142040–07) 34,
451
Regulations:
26 CFR 1.408A–4, amended; 1.408–4T, removed; converting
an IRA annuity to a Roth IRA (TD 9418) 38,713
26 CFR 1.430(h)(3)–1, –2, added; 1.431(c)(6)–1, added; mor-
tality tables for determining present value (TD 9419) 40,
790
26 CFR 54.9801–1, –2, amended; 54.9811–1, added;
54.9811–1T, removed; 54.9831–1, amended; final rules for
group health plans and health insurance issuers under the
Newborns’ and Mothers’ Health Protection Act (TD 9427)
47,1179
Stocks, information reporting requirements for statutory stock
options (REG–103146–08) 37,701; hearing scheduled (Ann
102) 43,1011
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
Transition relief, funding, expanding availability (Notice 73) 38,
717
Trusts, qualification, Puerto Rico (RR 40) 30,166
EMPLOYMENT TAX
Delinquent tax, levy on wages, salary, and other income, wage
levy, exempt amount tables (Notice 114) 51,1322
Fast Track Settlement (FTS):
For SB/SE taxpayers, expedite case resolution (Ann 110) 48,
1224
For TE/GE taxpayers, early and timely settlements (Ann 105)
48,1219
Interest-free adjustments and claims for refund of employment
taxes (TD 9405) 32,293
Proposed Regulations:
26 CFR 31.6060–1, added; 31.6107–1, added; 31.6109–2,
added; 31.6694–1 thru –4, added; 31.6695–1, added;
31.6696–1, added; 31.7701–1, added; tax return preparer
penalties under sections 6694 and 6695 (REG–129243–07)
27,32
Publications:
1141, General Rules and Specifications for Substitute Forms
W-2 and W-3, revised (RP 33) 28,93
4436, General Rules and Specifications for Substitute Form
941 and Schedule B (Form 941), revised (RP 32) 28,82
Regulations:
26 CFR 31.6011(a)–1, –4, –5, amended; 31.6205–1,
amended; 31.6302–0, –1, amended; 31.6402(a)–1,
–2, amended; 31.6413(a)–1, –2, amended; 31.6414–1,
amended; 602.101, amended; employment tax adjustments
(TD 9405) 32,293
EMPLOYMENT TAX—Cont.
Social security contribution andbenefit base; domestic employee
coverage threshold, 2009 (Notice 103) 46,1156
Substitute forms:
W-2 and W-3, general rules and specifications (RP 33) 28,93
941 and Schedule B (Form 941), general rules and specifica-
tions (RP 32) 28,82
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
ESTATE TAX
Annuities, effective dates and other issues under employee ben-
efit provisions of Tax Reform Act of 1984, correction to TD
8073 (Ann 99) 44,1089
Charitable lead unitrust (CLUT):
Inter vivos, sample forms (RP 45) 30,224
Testamentary, sample form (RP 46) 30,238
Cost-of-living adjustments for inflation for 2009 (RP 66) 45,
1107
Interest rates for 2008, farm real property, special use value (RR
44) 32,292
Proposed Regulations:
26 CFR 20.6060–1, added; 20.6107–1, added; 20.6109–1,
added; 20.6694–1 thru –4, added; 20.6695–1, added;
20.6696–1, added; 20.7701–1, added; tax return preparer
penalties under sections 6694 and 6695 (REG–129243–07)
27,32
Regulations:
26 CFR 1.512(a)–5T, amended; effective dates and other is-
sues arising under the employee benefit provisions of the
Tax Reform Act of 1984; correction to TD 8073 (Ann 99)
44,1089
26 CFR 20.2036–1, amended; 20.2039–1, amended; grantor
retained interest trusts, application of sections 2036 and
2039 (TD 9414) 35,454
26 CFR 26.2600–1, amended; 26.2642–6, amended;
26.2654–1, amended; severance of a trust for genera-
tion-skipping transfer (GST) tax purposes (TD 9421) 39,
755
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
Transfer tax valuation of interest in a restricted management ac-
count (RMA) (RR 35) 29,116
Trusts:
Grantor retained interest trusts, application of sections 2036
and 2039 (TD 9414) 35,454
Private trust company (Notice 63) 31,261
Severance of a trust for GST tax purposes (TD 9421) 39,755
EXCISE TAX
Annuities, effective dates and other issues under employee ben-
efit provisions of Tax Reform Act of 1984, correction to TD
8073 (Ann 99) 44,1089
December 29, 2008vii2008–52 I.R.B.

EXCISE TAX—Cont.
Charitable remainder trusts (CRTs), division into two or more
separate and equal CRTs (RR 41) 30,170
Cost-of-living adjustments for inflation for 2009 (RP 66) 45,
1107
Credits:
Alcohol fuel, biodiesel, alternative fuel (REG–155087–05)
38,726; hearing scheduled (Ann 117) 49,1258
Biodiesel tax incentives, changes, cellulosic biofuel credit
(Notice 110) 51,1298
Exported coal tax refund (Ann 103) 46,1161
Fast Track Settlement (FTS):
For SB/SE taxpayers, expedite case resolution (Ann 110) 48,
1224
For TE/GE taxpayers, early and timely settlements (Ann 105)
48,1219
Health Savings Accounts (HSAs), employer comparable contri-
butions to HSAs under section 4980G and excise tax under sec-
tions 4980B, 4980D, 4980E, and 4980G (REG–120476–07)
36,680
Minimum hospital length-of-stay for mothers and newborns (TD
9427) 47,1179
Prohibition against discrimination under group health plan based
on genetic information, request for comments (Ann 107) 46,
1162
Proposed Regulations:
26 CFR 1.40–1, revised; 1.40–2, added; 1.40A–1,
added; 40.0–1, amended; 40.6302(c)–1, amended;
48.0–1, amended; 48.0–4, added; 48.4041–0, amended;
48.4041–18, –20, removed and reserved; 48.4041–19,
revised; 48.4081–1, –2, –3, amended; 48.4081–6, re-
moved and reserved; 48.4082–4, amended; 48.4101–1,
amended; 48.6426–1 thru –7, added; 48.6427–8, amended;
48.6427–12, added; alcohol fuel and biodiesel, renewable
diesel, alternative fuel, diesel-water fuel emulsion, taxable
fuel definitions, excise tax returns (REG–155087–05) 38,
726; hearing scheduled (Ann 117) 49,1258
26 CFR 40.6060–1, added; 40.6107–1, added; 40.6109–1,
added; 40.6694–1 thru –4, added; 40.6695–1, added;
40.6696–1, added; 40.7701–1, added; 41.6060–1, added;
41.6107–1, added; 41.6109–2, added; 41.6694–1 thru –4,
added; 41.6695–1, added; 41.6696–1, added; 41.7701–1,
added; 44.6060–1, added; 44.6107–1, added; 44.6109–1,
added; 44.6694–1 thru –4, added; 44.6695–1, added;
44.6696–1, added; 44.7701–1, added; 53.6060–1, added;
53.6107–1, added; 53.6109–1, added; 53.6694–1 thru –4,
added; 53.6695–1, added; 53.6696–1, added; 53.7701–1,
added; 54.6060–1, added; 54.6107–1, added; 54.6109–1,
added; 54.6694–1 thru –4, added; 54.6695–1, added;
54.6696–1, added; 54.7701–1, added; 55.6060–1, added;
55.6107–1, added; 55.6109–1, added; 55.6694–1 thru –4,
added; 55.6695–1, added; 55.6696–1, added; 55.7701–1,
added; 56.6060–1, added; 56.6107–1, added; 56.6109–1,
added; 56.6694–1 thru –4, added; 56.6695–1, added;
56.6696–1, added; 56.7701–1, added; 156.6060–1, added;
156.6107–1, added; 156.6109–1, added; 156.6694–1
thru –4, added; 156.6695–1, added; 156.6696–1, added;
EXCISE TAX—Cont.
156.7701–1, added; 157.6060–1, added; 157.6107–1,
added; 157.6109–1, added; 157.6694–1 thru –4, added;
157.6695–1, added; 157.6696–1, added; 157.7701–1,
added; 301.7701–15, amended; tax return preparer penal-
ties under sections 6694 and 6695 (REG–129243–07) 27,
32
26 CFR 54.4980B–0, B–2, G–1, G–3, G–4, amended;
54.4980D–1, E–1, G–6, G–7, added; employer com-
parable contributions to health savings accounts under
section 4980G, and requirement of return for filing the
excise tax under section 4980B, 4980D, 4980E or 4980G
(REG–120476–07) 36,680
Regulations:
26 CFR 1.512(a)–5T, amended; effective dates and other is-
sues arising under the employee benefit provisions of the
Tax Reform Act of 1984; correction to TD 8073 (Ann 99)
44,1089
26 CFR 54.9801–1, –2, amended; 54.9811–1, added;
54.9811–1T, removed; 54.9831–1, amended; final rules for
group health plans and health insurance issuers under the
Newborns’ and Mothers’ Health Protection Act (TD 9427)
47,1179
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
EXEMPT ORGANIZATIONS
Declaratory judgment suits (Ann 67)29, 164;(Ann72)32,321;
correction (Ann 78) 34,453; (Ann 82) 37,708; (Ann 85) 38,
749; (Ann 89) 40,844; (Ann 93) 41,896; (Ann 109) 46,1166;
(Ann 112) 47,1199; (Ann 123) 51,1351
Fast Track Settlement (FTS):
For SB/SE taxpayers, expeditecase resolution (Ann 110) 48,
1224
For TE/GE taxpayers, early and timely settlements (Ann 105)
48,1219
Form 990, implementation of redesigned form (TD 9423) 43,
966; (REG–142333–07) 43,1008
Indian tribal governments treated as states (RP 55) 39,768
List of organizations classifiedas private foundations (Ann 70)
32,318; (Ann 81) 37,706; (Ann 104) 45,1136;(Ann120)50,
1295
Proposed Regulations:
26 CFR 1.170A–9, amended; 1.507–2, revised; 1.509(a)–3,
amended; 1.6033–2, amended; 1.6043–3, amended; imple-
mentation of redesigned Form 990 (REG–142333–07) 43,
1008
26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2,
amended; 1.6694–0, –1, –2, revised; 1.6694–3, –4,
amended; 1.6695–1, revised; 1.6695–2, amended;
1.6696–1, revised; 301.7701–15, amended; tax re-
turn preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
2008–52 I.R.B.viiiDecember 29, 2008

EXEMPT ORGANIZATIONS—Cont.
Regulations
26 CFR 1.170A–9, amended; 1.170A–9T, added; 1.507–2,
amended; 1.507–2T, added; 1.509(a)–3, amended;
1.509(a)–3T, added; 1.6033–2, amended; 1.6033–2T,
added; 1.6043–3, amended; 1.6043–3T, added; 602.101,
amended; implementation of redesigned Form 990 (TD
9423) 43,966
26 CFR 1.664–1, amended; 602.101, amended; guidance un-
der section 664 regarding the effect of unrelated business
taxable income on charitable remainder trusts (TD 9403)
32,285
Revocations (Ann 62) 27,74; (Ann 66) 29,164; (Ann 69) 32,
318; (Ann 76) 33,393;(Ann79)35,568;(Ann80)37,706;
(Ann 86) 40,843; (Ann 88) 40,843; (Ann 90) 41,896;(Ann
97) 43,1010; (Ann 100) 44,1090; (Ann 126) 52,1375
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
Trusts:
Charitable remainder trusts (CRTs):
Calculation of excise tax on unrelated business taxable in-
come (UBTI) (TD 9403) 32,285
Division into two or more separate and equal CRTs (RR
41) 30,170
GIFT TAX
Annuities, effective dates and other issues under employee ben-
efit provisions of Tax Reform Act of 1984, correction to TD
8073 (Ann 99) 44,1089
Charitable lead unitrust (CLUT),inter vivos, sample forms (RP
45) 30,224
Cost-of-living adjustments for inflation for 2009 (RP 66) 45,
1107
Proposed Regulations:
26 CFR 25.6060–1, added; 25.6107–1, added; 25.6109–1,
added; 25.6694–1 thru –4, added; 25.6695–1, added;
25.6696–1, added; 25.7701–1, added; 26.6060–1, added;
26.6107–1, added; 26.6109–1, added; 26.6694–1 thru –4,
added; 26.6695–1, added; 26.6696–1, added; 26.7701–1,
added; tax return preparer penalties under sections 6694
and 6695 (REG–129243–07) 27,32
Regulations:
26 CFR 1.512(a)–5T, amended; effective dates and other is-
sues arising under the employee benefit provisions of the
Tax Reform Act of 1984; correction to TD 8073 (Ann 99)
44,1089
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32
Transfer tax valuation of interest in a restricted management ac-
count (RMA) (RR 35) 29,116
Trust, private trust company (Notice 63) 31,261
INCOME TAX
Accounting methods:
Automatic changes in methods of accounting (RP 52) 36,587
Consent procedures, changesin method of accounting (Ann
84) 38,748
Rolling average inventory (RP 43) 30,186
Acquisitions, application of section 382 in the case of certain ac-
quisitions made pursuant to the Housing and Economic Recov-
ery Act of 2008 (Notice 76) 39,768
Annuities, effective dates and other issues under employee ben-
efit provisions of Tax Reform Act of 1984, correction to TD
8073 (Ann 99) 44,1089
Applicable percentage under section 3002(a)(1) of the Housing
Assistance Tax Act of 2008 (Notice 106) 49,1239
Balanced system for measuring organizational and employee
performance (TD 9426) 46,1153
Base period T-Bill rate, 2008 (RR 51) 47,1171
Bonds:
Election involving repeal of bonding requirement under sec-
tion 42(j)(6) (RP 60) 43,1006
Expanded temporary rule allowing governmental issuers to
purchase their own tax-exempt bonds (Notice 88) 42,933
Midwestern and Hurricane Ike disaster areas (Notice 109) 50,
1282
Procedures for requesting a refund of arbitrage rebate and sim-
ilar payments on tax-exempt bonds (RP 37) 29,137
Solicitation of applications from qualified issuers for alloca-
tion of qualified forestry conservation bonds (QFCBs) lim-
itation and application requirements (Notice 70) 36,575
Tax-exempt bonds:
Federal guarantee, money market funds (Notice 81) 41,
852
Volume cap, mortgage creditcertificates (Notice 79) 40,
815
Bonus depreciation for the Kansas disaster area (Notice 67) 32,
307
Capital costs incurred to comply with EPA sulfur regulations (TD
9404) 32,280; (REG–143453–05) 32,310; hearing cancelled
(Ann 96) 43,1010
Certain financing commitments and applicable high yield dis-
count obligations (RP 51) 35,562
Change to office to which notices of nonjudicial sale and re-
quests for return of wrongfully levied property must be sent
(TD 9410) 34,414
Charitable contributions:
Cash and noncash, substantiation and reporting requirements
under section 170 (REG–140029–07) 40,828; hearing
scheduled (Ann 122) 51,1351
Computation of deduction for inventory contributions (Notice
90) 43,1000
Charitable lead unitrust (CLUT):
Inter vivos, sample forms (RP 45) 30,224
Testamentary, sample form (RP 46) 30,238
Charitable remainder trusts (CRTs), division into two or more
separate and equal CRTs (RR 41) 30,170
Child of parents who are divorced, separated or living apart as
the dependent of both parents (RP 48) 36,586
December 29, 2008ix2008–52 I.R.B.

INCOME TAX—Cont.
Consumer Price Index (CPI) adjustments, certain loans under
section 1274A for 2009 (RR 52) 49,1233
Corporations:
Accumulated adjustments account (AAA) and key-man life
insurance (RR 42) 30,175
Enabling elections for certaintransactions under section
336(e) (REG–143544–04) 42,947
Entity classification, classification of foreign entities, per se
corporations (TD 9433) 50,1263
S corporation rules, updates (TD 9422) 42,898
Section 108 reduction of tax attributes for S corporations
(REG–102822–08) 38,744; hearing cancelled (Ann 116)
48,1230
Section 1367 regarding open account debt (TD 9428) 47,1174
Transfers by domestic corporations to foreign corporations
under section 361(a) or (b) (REG–209006–89) 41,867
Cost-of-living adjustments for inflation for 2009 (RP 66) 45,
1107
Credits:
Alcohol fuel, biodiesel, alternative fuel (REG–155087–05)
38,726; hearing scheduled (Ann 117) 49,1258
Allocation under:
Qualifying advanced coal project program for 2008-09
(Notice 96) 44,1077
Qualifying gasification project program (Notice 97) 44,
1080
Amendments to new markets tax credit regulations
(REG–149404–07) 40,839
Electricity produced from certain renewable resources, sec-
tion 45 tax credit (Notice 60) 30,178
Enhanced oil recovery credit, 2008 inflation adjustment (No-
tice 72) 43,998
Foreign tax credit, determining the amount of taxes
paid for purposes of section 901 (TD 9416) 46,1142;
(REG–156779–06) 46,1160
Increasing research activities (TD 9401) 27,1;
(REG–149405–07) 27,73
Low-income housing credit:
Carryovers to qualified states, 2008 National Pool (RP 57)
41,855
Emergency housing relief, Wisconsin severe storms, tor-
nadoes, and flooding (Notice 61) 30,180
Indiana severe storms and flooding (Notice 56) 28,79
Iowa severe storms, tornadoes, and flooding (Notice 58)
28,81
Missouri severe storms and flooding, disaster relief (Notice
66) 31,270
Satisfactory bond, “bond factor” amounts for the period:
January through September 2008 (RR 36) 30,165
Tax-exempt bonds, tax credit bonds, Midwestern and Hur-
ricane Ike disaster areas and population estimates (No-
tice 109) 50,1282
Utility allowance, new options for estimating (TD 9420)
39,750
New markets tax credit, targeted populations
(REG–142339–05) 45,1116
INCOME TAX—Cont.
Section 48 tax credit for qualifying fuel cell property and qual-
ifying microturbine property (Notice 68) 34,418
Declaratory judgment suits (Ann 67)29, 164;(Ann72)32,321;
correction (Ann 78) 34,453; (Ann 82) 37,708; (Ann 85) 38,
749; (Ann 89) 40,844; (Ann 93) 41,896; (Ann 109) 46,1166;
(Ann 112) 47,1199; (Ann 123) 51,1351
Definition of “outside director” (RR 32) 27,6
Dependent child of divorced or separated parents or parents who
live apart (TD 9408) 33,323
Depreciation, election to forgo additional first year depreciation
deduction (RP 65) 44,1082
Disaster relief, China earthquake, qualified disaster (Notice 57)
28,80
Disciplinary actionsinvolving attorneys,certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 68) 30,244;
(Ann 77) 33,394; (Ann 83) 37,709; (Ann 101) 44,1090;(Ann
113) 47,1199; (Ann 118) 49,1258
Disclosure of taxpayer groupings for purposes of the passive ac-
tivity loss provisions under section 469 (Notice 64) 31,268
Disclosure or use of information by preparers of returns (TD
9409) 29,118; (REG–121698–08) 29,163
Disposition of investment in United States real property, advance
notice of proposed rulemaking (REG–130342–08) (Ann 115)
48,1228
Economic Stimulus Act of 2008, bonus depreciation, section 179
expensing (RP 54) 38,722
E-file, request for applicationsfor participation in the 2009 IRS
Individual e-file Partnership Program (Ann 106) 45,1137
Election to expense certain refineries (TD 9412) 37,687;
(REG–146895–05) 37,700
Employee stock purchase plans, rules (REG–106251–08) 39,
774; hearing scheduled (Ann 121) 50,1296
Entity classification, classification of foreign entities, per se cor-
porations (TD 9433) 50,1263
Escrow accounts used in like-kind exchanges (TD 9413) 34,404
Executive compensation, guidance for sections 162(m)(5) and
280G(e) (Notice 94) 44,1070
Expenses:
Elections regarding start-up expenditures, corporation orga-
nizational expenditures, and partnership organizational ex-
penses (TD 9411) 34,398; (REG–164965–04) 34,450
Housing cost amount eligible for exclusion or deduction (No-
tice 107) 50,1265
Optional standard mileage rates:
For 2009 (RP 72) 50,1286
Update (Ann 63) 28,114
Extension of replacement period for livestock sold on account of
drought in specified counties (Notice 86) 42,925
Extension of time for filing returns (TD 9407) 33,330;
(REG–115457–08) 33,390; hearing scheduled (Ann 108) 46,
1165
Farmer and fisherman income averaging (TD 9417) 37,693;cor-
rection(Ann91)42,963; (REG–161695–04) 37,699; correc-
tion (Ann 92) 42,963
2008–52 I.R.B.xDecember 29, 2008

INCOME TAX—Cont.
Fast Track Settlement (FTS):
For SB/SE taxpayers, expedite case resolution (Ann 110) 48,
1224
For TE/GE taxpayers, early and timely settlements (Ann 105)
48,1219
Forms:
1042-S, Foreign Person’s U.S. Source Income Subject to
Withholding, specifications for filing electronically (RP
44) 30,187; update of Publication 1187 (Ann 95) 42,964;
clarification of Publication 1187 (Ann 119) 50,1295
1096, 1098, 1099, 5498, W-2G, and 1042-S, substitute form
specifications (RP 36) 33,340
8027, Employer’s Annual Information Return of Tip Income
and Allocated Tips, specifications for filing electronically
(RP 34) 27,13
8596, Information Return for Federal Contracts, specifica-
tions for filing electronically (RP 49) 34,423
Guidance to tax return preparers:
Consents to disclose and consents to use tax return in-
formation in the Form 1040 series (TD 9409) 29,118;
(REG–121698–08) 29,163
Consents to disclose and consents to use tax return informa-
tion in the Form 1040 series, update to Rev. Proc. 2008-12
(RP 35) 29,132
Guidance under section 956 for determining the basis of property
acquired in certain nonrecognition transactions (TD 9402) 31,
254; (REG–102122–08) 31,278
Guidance with respect to issues arising from section 6707A
penalty (TD 9425) 45,1100; (REG–160868–04) 45,1115
Health Flexible Spending Arrangement (FSA), distributions of
unused amounts to reservists called up to active duty (Notice
82) 41,853
Health Savings Accounts (HSAs), additional guidance (Notice
59) 29,123
Information reporting for discharges of indebtedness (TD 9430)
48,1205; correction (Ann 127) 52,1375; (REG–118327–08)
48,1218
Insurance companies:
Effectively connected income (RP 53) 36,678
Life insurance contracts:
Automatic waiver (RP 42) 29,160
Closing agreement (RP 40) 29,151
Modified endowment contracts (MECs), closing agree-
ments (RP 39) 29,143
Qualified additional benefits (QABs), closing agreement
(RP 38) 29,139
Required information reporting on employer-owned life
insurance contracts (TD 9431) 49,1235
Variable contracts, closing agreement (RP 41) 29,155
Loss payment patterns and discount factors for the 2008 acci-
dent year (RP 70) 49,1240
Salvage discount factors forthe 2008 accident year (RP 71)
49,1251
Segregated asset accounts, diversification (Notice 92) 43,
1001
INCOME TAX—Cont.
Interest:
Characterization of management fees paid by an upper tier
investment partnership and lower tier trader partnerships
(RR 39) 31,252
Investment:
Federal short-term, mid-term, and long-term rates for:
July 2008 (RR 33) 27,8
August 2008 (RR 43) 31,258
September 2008 (RR 46) 36,572
October 2008 (RR 49) 40,811
November 2008 (RR 50) 45,1098
December 2008 (RR 53) 49,1231
Of earnings in United States property (Notice 91) 43,1001
Rates:
Underpayments and overpayments, quarter beginning:
October 1, 2008 (RR 47) 39,760
January 1, 2009 (RR 54) 52,1352
Treatment of interest expense attributable to indebtedness al-
locable to property held for investment described in section
163(d)(5)(A)(ii):
Investment interest deduction (RR 38) 31,249
Trader partnership (Ann 65) 31,279
Law school Loan Repayment Assistance Program (LRAP), ex-
clusion from gross income (RR 34) 28,76
Legislative Cumulative Bulletins, discontinuation of publication
(Ann 87) 40,843
Letter rulings, nonqualified deferred compensation, no-rule areas
(RP 61) 42,934
Liens, return of wrongfully levied property and discharge of
liens, special rules (TD 9410) 34,414
Life insurance:
Premiums by S corporation, effect on accumulated adjust-
ments account (AAA) (RR 42) 30,175
Statutory reserves, meaning formulti-state taxpayers (RR 37)
28,77
Losses, hurricane-related casualty losses and subsequent grants
(Notice 95) 44,1076
Marginal production rates, 2008 (Notice 89) 43,999
Offer in Compromise (OIC) and Trust Fund Recovery Penalty
(TFRP) cases in Appeals, test procedures for mediation and
arbitration (Ann 111) 48,1224
Partnerships:
Discharge of indebtedness income for transfers of partner-
ship interest in satisfaction of partnership indebtedness
(REG–164370–05) 46,1157
Election that enables partners of tax-exempt bond partnership
to take into account monthly the inclusions required under
sections 702 and 707(c) (Notice 80) 40,820
EESA section 301 application to partners in partnerships (RP
64) 47,1195
Penalties, failure to register a tax shelter, correction to TD 7964
(Ann 128) 52,1376
Per diem allowances (RP 59) 41,857
Presidential Primary Matching Payment Account, timing of pay-
ments (TD 9432) 49,1236
December 29, 2008xi2008–52 I.R.B.

INCOME TAX—Cont.
Presidentially declared disaster or terroristic or military
actions, postponement of certain tax-related deadlines
(REG–142680–06) 35,565
Private foundations, organizations now classified as (Ann 70) 32,
318; (Ann 81) 37,706; (Ann 104) 45,1136; (Ann 120) 50,
1295
Proposed Regulations:
26 CFR 1.40–1, revised; 1.40–2, added; 1.40A–1,
added; 40.0–1, amended; 40.6302(c)–1, amended;
48.0–1, amended; 48.0–4, added; 48.4041–0, amended;
48.4041–18, –20, removed and reserved; 48.4041–19,
revised; 48.4081–1, –2, –3, amended; 48.4081–6, re-
moved and reserved; 48.4082–4, amended; 48.4101–1,
amended; 48.6426–1 thru –7, added; 48.6427–8, amended;
48.6427–12, added; alcohol fuel and biodiesel, renewable
diesel, alternative fuel, diesel-water fuel emulsion, taxable
fuel definitions, excise tax returns (REG–155087–05) 38,
726; hearing scheduled (Ann 117) 49,1258
26 CFR 1.41–6, –8, amended; 1.41–9, added; alternative sim-
plified credit under section 41(c)(5) (REG–149405–07) 27,
73
26 CFR 1.45D–1, amended; amendments to new markets tax
credit regulations (REG–149404–07) 40,839
26 CFR 1.45D–1, amended; targeted populations under sec-
tion 45D(e)(2) (REG–142339–05) 45,1116
26 CFR 1.108–7, amended; section 108 reduction of tax
attributes for S corporations (REG–102822–08) 38,744;
hearing cancelled (Ann 116) 48,1230
26 CFR 1.108–8, added; 1.721–1, amended; section 108(e)(8)
application to partnerships (REG–164370–05) 46,1157
26 CFR 1.147(f)–1; public approval guidance for tax-exempt
bonds (REG–128841–07) 45,1124
26 CFR 1.170–0, –2, removed; 1.170A–13, amended;
1.170A–15 thru –18, added; substantiation and reporting
requirements for cash and noncash charitable contribution
deductions (REG–140029–07) 40,828; hearing scheduled
(Ann 122) 51,1351
26 CFR 1.179B–1, added; capital costs incurred to comply
with EPA sulfur regulations (REG–143453–05) 32,310;
hearing cancelled (Ann 96) 43,1010
26 CFR 1.179C–1, added; election to expense certain refiner-
ies (REG–146895–05) 37,700
26 CFR 1.195–1, revised; 1.248–1, amended; 1.709–1,
amended; elections regarding start-up expenditures, cor-
poration organizational expenditures, and partnership
organizational expenses (REG–164965–04) 34,450
26 CFR 1.336–0 thru –5, added; 1.338–0, –1, –5, amended;
regulations enabling elections for certain transactions under
section 336(e) (REG–143544–04) 42,947
26 CFR 1.358–6, amended; 1.367(a)–1T, (a)–3, (b)–4, (b)–6,
amended; 1.367(a)–7, added; 1.1248–1, –6, –8, amended;
1.1248(f)–1, –2, –3, added; 1.6038B–1, amended; trans-
fers by domestic corporationsthat are subject to section
367(a)(5), distributions by domestic corporations that are
subject to section 1248(f) (REG–209006–89) 41,867
INCOME TAX—Cont.
26 CFR 1.367(a)–2, –4, –5, added; 1.954–2(c), revised;
1.956–2(b), –2(e), revised, modifications to subpart
F treatment of aircraft and vessel leasing income
(REG–138355–07) 32,311
26 CFR 1.401(a)–13, –20, amended; 1.402(f)–1, amended;
1.411(a)–11, amended; 1.417(e)–1, amended; notice to par-
ticipants of consequences of failing to defer receipt of qual-
ified retirement plan distributions, expansion of applicable
election period and period for notices (REG–107318–08)
45,1131
26 CFR 1.401(a)(9)–1, –6, amended; 1.403(b)–6,
amended; reasonable good faith interpretation of re-
quired minimum distribution rules by governmental plans
(REG–142040–07) 34,451
26 CFR 1.421–1, amended; 1.422–2, –5, amended; 1.423–1,
–2, revised; employee stock purchase plans under section
423 (REG–106251–08) 39,774; hearing scheduled (Ann
121) 50,1296
26 CFR 1.460–3 thru –6, amended; rules for home construc-
tion contracts (REG–120844–07) 39,770
26 CFR 1.642(c)–3, amended; 1.643(a)–5, amended; guid-
ance under sections 642 and 643 (income ordering rules)
(REG–101258–08) 28,111; correction (Ann 73) 33,391
26 CFR 1.901–1, –2, amended; determining the amount of
taxes paid for purposes of section 901 (REG–156779–06)
46,1160
26 CFR 1.956–1, amended; guidance under section 956 for
determining the basis of property acquired in certain non-
recognition transactions (REG–102122–08) 31,278
26 CFR 1.1301–1, amended; farmer and fisherman income
averaging (REG–161695–04) 37,699; correction (Ann 92)
42,963
26 CFR 1.1502–13(e)(4), withdrawn; 1.1502–32(c)(1)(ii),
withdrawn; unified rule for loss on subsidiary stock
(REG–157711–02) 44,1087
26 CFR 1.6039–1, revised; 1.6039–2, added; infor-
mation reporting requirements under section 6039
(REG–103146–08) 37,701; hearing scheduled (Ann 102)
43,1011
26 CFR 1.6050P–0, –1, amended; information reporting for
discharges of indebtness (REG–118327–08) 48,1218
26 CFR 1.6060–1, amended; 1.6107–1, revised; 1.6109–2,
amended; 1.6694–0, –1, –2, revised; 1.6694–3, –4,
amended; 1.6695–1, revised; 1.6695–2, amended;
1.6696–1, revised; 301.7701–15, amended; tax re-
turn preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32; corrections (Ann 75) 33,392
26 CFR 1.6081–2, –6, added; 54.6081–1, added; extension of
time for filing returns (REG–115457–08) 33,390; hearing
scheduled (Ann 108) 46,1165
26 CFR 301.6707A–1, added; section 6707A and the failure
to include on any return or statement any information re-
quired to be disclosed under section 6011 with respect to a
reportable transaction (REG–160868–04) 45,1115
26 CFR 301.7216–3, amended; disclosure or use of informa-
tion by preparers of returns (REG–121698–08) 29,163
2008–52 I.R.B.xiiDecember 29, 2008

INCOME TAX—Cont.
26 CFR 301.7508A–1, amended; postponement of certain
tax-related deadlines by reasonof Presidentially declared
disaster or terroristic or military actions (REG–142680–06)
35,565
Public approval guidance for tax-exempt bonds
(REG–128841–07) 45,1124
Publications:
1141, General Rules and Specifications for Substitute Forms
W-2 and W-3, revised (RP 33) 28,93
1179, General Rules and Specifications for Substitute Forms
1096, 1098, 1099, 5498, W-2G, and 1042-S, update (RP
36) 33,340
1187, Specifications for Filing Form 1042-S, Foreign Per-
son’s U.S. Source Income Subject to Withholding, Elec-
tronically, revised (RP 44) 30,187; update (Ann 95) 42,
964; clarification (Ann 119) 50,1295
1239, Specifications for Filing Form 8027, Employer’s An-
nual Information Return of Tip Income and Allocated Tips,
Electronically (RP 34) 27,13
1516, Specifications for Filing Form 8596, Information Re-
turn for Federal Contracts,Electronically (RP 49) 34,423
4436, General Rules and Specifications for Substitute Form
941 and Schedule B (Form 941), revised (RP 32) 28,82
Qualified intermediaries (QIs), amendments to QI agreement and
QI audit guidance for external auditors of QIs (Ann 98) 44,
1087
Qualified retirement plans,notice to participants of con-
sequences of failing to defer receipt of distributions
(REG–107318–08) 45,1131
Real Estate Investment Trust (REIT), prohibited transactions safe
harbor (RP 69) 48,1217
Real Estate Mortgage Investment Conduit (REMIC), allocation
of income to foreign persons by certain entites (TD 9415) 36,
570
Reasonable good faith interpretation of required minimum dis-
tribution rules by governmental plans (REG–142040–07) 34,
451
Refund of taxes unlawfully assessed, administrative claim (CD
2087) 41,845
Regulations:
26 CFR 1.41–0, –1, –6, –8, amended; 1.41–0T, –6T, –8T,
–9, –9T added; alternative simplified credit under section
41(c)(5) (TD 9401) 27,1
26 CFR 1.42–10, –12, amended; section 42 utility allowance
regulations update (TD 9420) 39,750
26 CFR 1.141–0, –4, –15, amended; treatment of payments in
lieu of taxes under section 141 (TD 9429) 47,1167
26 CFR 1.152–4, revised; 1.152–4T, removed; dependent
child of divorced or separated parents or parents who live
apart (TD 9408) 33,323
26 CFR 1.179B–1T, added; 602.101, amended; capital costs
incurred to comply with EPA sulfur regulations (TD 9404)
32,280
26 CFR 1.179C–1T, added; 602.101, amended; election to
expense certain refineries (TD 9412) 37,687
INCOME TAX—Cont.
26 CFR 1.195–1, revised; 1.195–1T, added; 1.248–1,
amended; 1.248–1T, added; 1.709–1, amended; 1.709–1T,
added; elections regarding start-up expenditures, cor-
poration organizational expenditures, and partnership
organizational expenses (TD 9411) 34,398
26 CFR 1.337(d)–1, –2, amended; 1.358–6, amended;
1.362–4, added; 1.1502–13, –19, –21, –30, thru –33,
–35, –75, –80, –91, –95, –96, –99, amended; 1.1502–20,
–20T, –32T, –35T, removed; 1.1502–36, added; 602.101,
amended; unified rule for loss on subsidiary stock (TD
9424) 44,1012; corrections (Ann 114) 48,1226
26 CFR 1.367(a)–2T, –4T, –5T, amended; 1.954–2, amended;
1.954–2T, added; 1.956–2, –2T, amended; modifications to
subpart F treatment of aircraft and vessel leasing income
(TD 9406) 32,287
26 CFR 1.468B–0, amended; 1.468B–6, added; 1.1031(k)–1,
amended; 1.7872–5, –16, added; escrow accounts, trusts,
and other funds used during deferred exchanges of like-kind
property (TD 9413) 34,404
26 CFR 1.512(a)–5T, amended; effective dates and other is-
sues arising under the employee benefit provisions of the
Tax Reform Act of 1984; correction to TD 8073 (Ann 99)
44,1089
26 CFR 1.664–1, amended; 602.101, amended; guidance un-
der section 664 regarding the effect of unrelated business
taxable income on charitable remainder trusts (TD 9403)
32,285
26 CFR 1.860A–0, –1, amended; 1.860A–1T, removed;
1.860G–3, amended; 1.860G–3T, removed; 1.863–0, –1,
amended; 1.863–1T, removed; 1.1441–0, –2, amended;
1.1441–2T, removed; REMIC residual interests–ac-
counting for REMIC net income (including any excess
inclusions) (foreign holders) (TD 9415) 36,570
26 CFR 1.881–5T, removed; correction to TD 9391 (Ann 74)
33,392
26 CFR 1.901–1, –2, amended; 1.901–1T, –2T, added; deter-
mining the amount of taxes paid for purposes of section 901
(TD 9416) 46,1142
26 CFR 1.911–7, amended; 1.6081–1, –3, –5, amended;
1.6081–2T, –6T, revised; 1.6081–3T, –4T, –5T, –7T,
–10T, –11T, removed; 1.6081–4, –7, –10, –11, added;
25.6081–1, added; 25.6081–1T, removed; 26.6081–1,
added; 26.6081–1T, removed; 53.6081–1, added;
53.6081–1T, removed; 55.6081–1, added; 55.6081–1T,
removed; 156.6081–1, added; 156.6081–1T, removed;
157.6081–1, added; 157.6081–1T, removed; 301.6081–2,
added; 301.6081–2T, removed; extension of time for filing
returns (TD 9407) 33,330
26 CFR 1.956–1, –1T, amended; guidance under section 956
for determining the basis ofproperty acquired in certain
nonrecognition transactions (TD 9402) 31,254
26 CFR 1.1301–1, amended; 1.1301–1T, added; farmer and
fisherman income averaging (TD 9417) 37,693; correction
(Ann 91) 42,963
December 29, 2008xiii2008–52 I.R.B.

INCOME TAX—Cont.
26 CFR 1.1361–0, –1, –4, –6, amended; 1.1362–0, –4,
amended; 1.1366–0, –2, –5, amended; 602.101, amended;
S corporation guidance under AJCA of 2004 and GOZA of
2005 (TD 9422) 42,898
26 CFR 1.1367–2, amended; 1.1367–3, revised; section 1367
regarding open account debt (TD 9428) 47,1174
26 CFR 1.6039I–1, added; 1.6039I–1T, removed; information
reporting on employer-owned life insurance contracts (TD
9431) 49,1235
26 CFR 1.6050P–0, –1, amended; 1.6050P–1T, added; infor-
mation reporting for discharges of indebtedness (TD 9430)
48,1205; correction (Ann 127) 52,1375
26 CFR 301.6111–1T, revised; tax shelter registration, correc-
tion to TD 7964 (Ann 128) 52,1376
26 CFR 301.6343–2, amended; 301.6343–2T, removed;
301.7425–3, amended; 301.7425–3T, removed; change to
office to which notices of nonjudicial sale and requests
for return of wrongfully levied property must be sent (TD
9410) 34,414
26 CFR 301.6707A–1T, added; section 6707A and the failure
to include on any return or statement any information re-
quired to be disclosed under section 6011 with respect to a
reportable transaction (TD 9425) 45,1100
26 CFR 301.7216–3, amended; 301.7216–3T, added; disclo-
sure or use of information by preparers of returns (TD 9409)
29,118
26 CFR 301.7701–2, amended; 301.7701–2T, removed; clas-
sification of certain foreign entities (TD 9433) 50,1263
26 CFR 702.9037–1, –2, revised; 702.9037–1T, –2T, re-
moved; payments from the Presidential Primary Matching
Payment Account (TD 9432) 49,1236
26 CFR 801.1 thru .7, removed; 801.1T thru .8T, redesignated
as 801.1 thru .8; 801.1(a), 801.2, .3, .7, .8, amended; bal-
anced system for measuring organizational and employee
performance within the Internal Revenue Service (TD
9426) 46,1153
Reporting and withholding under section 409A, calendar year
2008 (Notice 115) 52,1367
Revocations, exempt organizations (Ann 62) 27,74;(Ann66)
29,164;(Ann69)32,318; (Ann 76) 33,393;(Ann79)35,
568; (Ann 80) 37,706;(Ann86)40,843;(Ann88)40,843;
(Ann 90) 41,896;(Ann97)43,1010; (Ann 100) 44,1090;
(Ann 126) 52,1375
Rules for certain long-term construction contracts
(REG–120844–07) 39,770
Section 67 limitations on estates or trusts, extension of interim
guidance (Notice 116) 52,1372
Section 382 limitation:
Application of section 382(h) to banks, ownership changes,
pre-change losses (Notice 83) 42,905
Capital contributions, ownership changes, pre-change losses
(Notice 78) 41,851
Capital Purchase Program (CPP), ownership changes, pre-
change losses (Notice 100) 44,1081
Ownership changes, pre-change losses (Notice 84) 41,855
INCOME TAX—Cont.
Securities loans and bankruptcy of borrower (RP 63) 42,946
Settlement offers, auction rate securities (RP 58) 41,856
Smartcards, debit cards, etc., used to provide qualified trans-
portation fringes under section 132(f), delayed effective date
of Rev. Rul. 2006–57 (Notice 74) 38,718
Standard Industry Fare Level (SIFL) formula (RR 48) 38,713
Stocks:
Auction rate preferred stock, regulated investment companies
RICs), debt instruments (Notice 55) 27,11
Information reporting requirements for statutory stock options
(REG–103146–08) 37,701; hearing scheduled (Ann 102)
43,1011
Partial withdrawal of proposedregulations on unified rule for
loss on subsidiary stock (REG–157711–02) 44,1087
Section 305 REIT distributions of stock (RP 68) 52,1373
Unified rule for loss on subsidiary stock (TD 9424) 44,1012;
corrections (Ann 114) 48,1226
Subprime mortgage loans, modifications held by certain securi-
tization vehicles (RP 47) 31,272
Substitute forms:
W-2 and W-3, general rules and specifications (RP 33) 28,93
941 and Schedule B (Form 941), general rules and specifica-
tions (RP 32) 28,82
1096, 1098, 1099, 5498, W-2G, and 1042-S, rules and speci-
fications (RP 36) 33,340
Targeted populations under section 45D(e)(2), low-income com-
munity business (REG–142339–05) 45,1116
Tax conventions:
Arbitration under the United States-Germany Income Tax
Treaty (Ann 125) 52,1363
Memorandum of Understanding Between the Competent Au-
thorities of the Federal Republic of Germany and the United
States of America (Ann 124) 52,1359
Tax return preparer penalties under sections 6694 and 6695
(REG–129243–07) 27,32; corrections (Ann 75) 33,392
Tax shelter, listed transactions (Notice 111) 51,1299
Transition relief, debit cards, medical expense reimbursements
(Notice 104) 51,1298
Treatment of aircraft and vessel leasing income (TD 9406) 32,
287; (REG–138355–07) 32,311
Treatment of payments in lieu of taxes under section 141 (TD
9429) 47,1167
Troubled Asset Relief Program (TARP) and federal financial as-
sistance (Notice 101) 44,1082
Trusts:
Charitable remainder trust, calculation of excise tax on unre-
lated business taxable income (UBTI) (TD 9403) 32,285
Guidance regarding reportingfor widely held fixed invest-
ment trusts (WHFITs) (Notice 77) 40,814
Ordering of distributions from charitable lead trusts
(REG–101258–08) 28,111; correction (Ann 73) 33,391
Private trust company (Notice 63) 31,261
Transaction of interest, sale orother disposition of charitable
remainder trust interests (Notice 99) 47,1194
2008–52 I.R.B.xivDecember 29, 2008

INCOME TAX—Cont.
U.S. territories, American Samoa, Guam, The Northern Mariana
Islands, Puerto Rico, U.S. Virgin Islands, source of income,
filing requirements; correction to TD 9391 (Ann 74) 33,392
Valuation safe harbor under section 475 (Notice 71) 35,462
December 29, 2008xv2008–52 I.R.B.

2008–52 I.R.B.December 29, 2008

December 29, 20082008–52 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superin-
tendent of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis andare notincluded as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly
Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET
You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Under information for: select Businesses. Under
related topics, select More Topics. Then select Internal Revenue Bulletins.
INTERNAL REVENUE BULLETINS ON CD-ROM
Internal Revenue Bulletins are available annually as part ofPublication 1796 (Tax Products CD-ROM). The CD-ROM can be
purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders)
or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, P.O. Box 371954, Pittsburgh PA, 15250–7954. Please allow two to
six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE INTERNAL
REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it,
we would be pleased to hear from you. You can e-mail us your suggestions or comments through the IRS Internet Home Page
(www.irs.gov) or write to the IRS Bulletin Unit, SE:W:CAR:MP:T:T:SP, Washington, DC 20224
Internal Revenue Service
W
ashington,DC20224
Official Business
Penalty for Private Use, $300