Internal Revenue Bulletin 2009-29 (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
9-29
July 20, 2009
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. Proc. 2009–33, page 150.
Section 168(k)(4) extension property guidance.This pro-
cedure provides guidance with respect to section 168(k)(4) of
the Code, which was extended by section 1201(b) of the Amer-
ican Recovery and Reinvestment Tax Act of 2009 (the Act) to
allow corporations to elect not to claim the 50–percent addi-
tional first year depreciation deduction by section 168(k)(1) for
certain property placed in service generally before January 1,
2010, and instead to increase their business credit limitation
under section 38(c) and alternative minimum tax (AMT) credit
limitation under section 53(c). This procedure provides guid-
ance to corporations regarding the property eligible for this
election, the time and manner for making the elections provided
by new section 168(k)(4)(H), and the computation of the amount
by which the business credit limitation and the AMT credit lim-
itation may be increased if the elections provided by section
168(k)(4)(H) are or are not made. Rev. Procs. 2008–65 and
2009–16 modified.
EMPLOYEE PLANS
Notice 2009–57, page 147.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in July 2009;
the 24–month average segment rates; the funding transitional
segment rates applicable for July 2009; and the minimum
present value transitional rates for June 2009.
EXEMPT ORGANIZATIONS
Announcement 2009–58, page 158.
A list is provided of organizations now classified as private foun-
dations.
ESTATE TAX
Announcement 2009–57, page 158.
The due date for reporting, filing, and payment of tax imposed
under section 2801 of the Code for covered gifts and bequests
from certain expatriates will be announced in future guidance.
GIFT TAX
Announcement 2009–57, page 158.
The due date for reporting, filing, and payment of tax imposed
under section 2801 of the Code for covered gifts and bequests
from certain expatriates will be announced in future guidance.
Announcements of Disbarments and Suspensions begin on page 158.
Finding Lists begin on page ii.

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.
July 20, 20092009–29 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2009–57
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the corpo-
rate bond monthly yield curve (and the
corresponding spot segment rates), the
24-month average segment rates, and
the funding transitional segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i), as amended by the Pen-
sion Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to cal-
culate current liability and to determine
the required contribution under § 412(l)
for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conser-
vatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
June 2009 is 6.64 percent. Pursuant to No-
tice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond in-
dices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
July20096.47
5.83
6.47
YIELD CURVE AND SEGMENT
RATES
Generally for plan years beginning
after 2007 (except for delayed effective
dates for certain plans under sections 104,
105, and 106 of PPA), § 430 of the Code
specifies the minimum funding require-
ments that apply to single employer plans
pursuant to § 412. Section 430(h)(2) spec-
ifies the interest rates that must be used
to determine a plan’s target normal cost
and funding target. Under this provision,
present value is generally determined us-
ing three 24-month average interest rates
(“segment rates”), each of which applies
to cash flows during specified periods.
However, an election may be made under
§ 430(h)(2)(D)(ii) to use the monthly yield
curve in place of the segment rates. For
plan years beginning in 2008 and 2009, a
transitional rule under § 430(h)(2)(G) pro-
vides that the segment rates are blended
with the corporate bond weighted average
as specified above. An election may be
made under § 430(h)(2)(G)(iv) to use the
segment rates without applying the transi-
tional rule.
Notice 2007–81, 2007–44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, the
24-month average corporate bond segment
rates, and the funding transitional segment
rates used to compute the target normal
cost and the funding target. Pursuant to
Notice 2007–81, the monthly corporate
bond yield curve derived from June 2009
data is in Table I at the end of this notice.
The spot first, second, and third segment
rates for the month of June 2009 are, re-
spectively, 3.89, 6.59, and 6.55. The three
24-month average corporate bond seg-
ment rates applicable for July 2009 under
the election of § 430(h)(2)(G)(iv) are as
follows:
First
Segment
Second
Segment
Third
Segment
5.21
6.746.84
2009–29 I.R.B.147July 20, 2009

The transitional segment rates under
§ 430(h)(2)(G) applicable for July 2009,
taking into account the corporate bond
weighted average of 6.47 stated above, are
as follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
2008
6.056.566.59
2009
5.636.65
6.72
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
ble interest rate for a month is the annual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Treasury
securities for June 2009 is 4.52 percent.
The Service has determined this rate as the
monthly average of the daily determina-
tion of yield on the 30-year Treasury bond
maturing in May 2039.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B)specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est rate used to calculate current liability
for this purpose must be no more than 5
percent above and no more than 10 percent
below the weighted average of the rates of
interest on 30-year Treasury securities dur-
ing the four-year period ending on the last
day before the beginning of the plan year.
Notice 88–73, 1988–2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The following rates
were determined for plan years beginning
in the month shown below.
For Plan Years
Beginning inPermissible Range
MonthYear
30-Year
Treasury
Weighted
Average
90%to
105%
July20094.413.974.63
MINIMUM PRESENT VALUE
SEGMENT RATES
Generally for plan years beginning af-
ter December 31, 2007, the applicable in-
terest rates under § 417(e)(3)(D) are seg-
ment rates computed without regard to a
24-month average. For plan years begin-
ning in 2008 through 2011, the applica-
ble interest rate is the monthly spot seg-
ment rate blended with the applicable rate
under § 417(e)(3)(A)(ii)(II) as in effect
for plan years beginning in 2007. Notice
2007–81 provides guidelines for determin-
ing the minimum present value segment
rates. Pursuant to that notice, the min-
imum present value transitional segment
rates determined for June 2009, taking into
account the June 2009 30-year Treasury
rate of 4.52 stated above, are as follows:
For Plan Y
ears
Beginning
in
First
Segment
Second
Segment
Third
Segment
20084.394.934.93
20094.27
5.355.33
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities Di-
vision. Mr. Montanaro may be e-mailed at
RetirementPlanQuestions@irs.gov.
July 20, 20091482009–29 I.R.B.

Table I
Monthly Yield Cu
rve for June 2009*
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.5
2.11
20.5
6.76
40.56.5360.5
6.46
80.5
6.43
1.02.5921.06.7441.0
6.52
61.06.4681.06.43
1.5
3.04
21.5
6.73
41.56.5261.5
6.46
81.5
6.43
2.03.4622.06.7242.0
6.52
62.06.4682.06.42
2.53.8522.5
6.71
42.56.5262.5
6.46
82.5
6.42
3.04.2023.06.7043.06.5163.06.4583.06.42
3.54.5123.5
6.69
43.56.5163.56.4583.5
6.42
4.04.8024.06.6844.0
6.51
64.0
6.45
84.06.42
4.55.0624.5
6.67
44.56.5164.56.4584.5
6.42
5.05.3025.0
6.66
45.06.5165.06.4585.0
6.42
5.55.5125.56.6545.56.5065.56.4585.5
6.42
6.05.7026.06.6446.06.5066.06.4586.06.42
6.55.8726.5
6.63
46.56.5066.56.4586.5
6.42
7.06.0227.06.6347.0
6.50
67.0
6.45
87.06.42
7.56.1527.5
6.62
47.56.5067.56.4587.5
6.42
8.06.2728.06.6248.0
6.49
68.06.4488.06.42
8.5
6.38
28.5
6.61
48.5
6.49
68.5
6.44
88.5
6.42
9.0
6.47
29.0
6.61
49.06.4969.0
6.44
89.0
6.42
9.5
6.55
29.56.6049.56.4969.56.4489.56.42
10.06.6230.06.60
50.0
6.49
70.06.44
90.0
6.42
10.5
6.68
30.5
6.59
50.5
6.49
70.5
6.4490.56.42
11.06.7231.06.59
51.0
6.4871.06.44
91.0
6.41
11.5
6.77
31.56.5851.5
6.48
71.5
6.4491.56.41
12.06.8032.06.5852.06.4872.06.44
92.0
6.41
12.5
6.82
32.56.5852.5
6.48
72.5
6.4492.56.41
13.06.8433.0
6.5753.0
6.4873.06.44
93.0
6.41
13.5
6.86
33.56.5753.5
6.48
73.5
6.4493.56.41
14.06.8634.0
6.5654.0
6.4874.06.44
94.0
6.41
14.5
6.87
34.56.5654.5
6.47
74.5
6.4394.56.41
15.06.8735.06.5655.06.4775.06.4395.06.41
15.5
6.86
35.56.5555.5
6.47
75.5
6.4395.56.41
16.06.8636.0
6.5556.0
6.4776.06.43
96.0
6.41
16.56.8536.56.5556.5
6.47
76.5
6.4396.56.41
17.06.8437.0
6.5457.0
6.4777.06.43
97.0
6.41
17.5
6.83
37.56.5457.5
6.47
77.5
6.4397.56.41
18.06.8238.06.5458.06.4778.06.43
98.0
6.41
18.5
6.81
38.56.5458.5
6.46
78.5
6.4398.56.41
19.06.7939.0
6.53
59.06.46
79.0
6.43
99.0
6.41
19.56.7839.5
6.53
59.56.4679.56.4399.56.41
20.06.7740.0
6.53
60.06.4680.06.43100.06.41
* This spot monthly yield curve repre-
sents data from June 2009 only, and under
the proposed regulations for § 430(h)(2),
this table is for use by § 430(h)(2)(D)(ii)
electing plans with valuation dates in
July 2009. Until final regulations are
effective, a reasonable interpretation of
§ 430(h)(2)(D)(ii) would permit plan spon-
sors to use this table in conjunction with
2009–29 I.R.B.149July 20, 2009

applicable month rules of § 430(h)(2)(E).
In such a case, this table could also be
used for a valuation as of a date in June,
August, September, or October of 2009.
26 CFR 1.168(k)–1: Additional first year deprecia-
tion deduction.
(Also: §§ 38, 41, 52, 53, 168, 1502, 1563, 6211,
6401.)
Rev. Proc. 2009–33
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance under § 1201(b) of the American
Recovery and Reinvestment Tax Act of
2009, Div. B of Pub. L. No. 111–5,
123 Stat. 115 (February 17, 2009) (the
Act). Section 1201(b) of the Act amends
§ 168(k)(4) of the Internal Revenue Code
to allow corporations to elect not to claim
the 50-percent additional first year depre-
ciation deduction provided by § 168(k)(1)
for certain property placed in service gen-
erally before January 1, 2010, and instead
to increase their business credit limitation
under § 38(c) and alternative minimum
tax (AMT) credit limitation under § 53(c).
Specifically, this revenue procedure pro-
vides guidance to corporations regarding
the property eligible for this election, the
time and manner for making the elections
provided by new § 168(k)(4)(H), and the
computation of the amount by which the
business credit limitation and AMT credit
limitation may be increased if the elections
provided by § 168(k)(4)(H) are or are not
made.
SECTION 2. BACKGROUND
.01 Prior to amendment by the Act,
§ 168(k)(1) allowed a 50-percent addi-
tional first year depreciation deduction
(Stimulus additionalfirst year deprecia-
tion deduction) for certain new property
acquired by a taxpayer after 2007 and
placed in service before 2009 (before
2010 in the case of property described in
§ 168(k)(2)(B) or (C)). Section 1201(a)(1)
of the Act amends § 168(k)(2) by extend-
ing the placed in service date to before
2010 (before 2011 in the case of property
described in § 168(k)(2)(B) or (C)).
.02 Section 168(k)(4) allows a corpo-
ration to elect (the § 168(k)(4) election)
not to claim the Stimulus additional first
year depreciation deduction for eligible
qualified property and instead increase its
business credit limitation under § 38(c)
and the AMT credit limitation under
§ 53(c). With the exception of revised
dates, eligible qualified property for pur-
poses of § 168(k)(4) is property eligible
for the Stimulus additional first year de-
preciation deduction. See section 3 of Rev.
Proc. 2008–65, 2008–44 I.R.B. 1082, for
additional guidanceon the definition of
eligible qualified property for purposes of
§ 168(k)(4).
.03 With the extension of the Stimulus
additional first yeardepreciation deduc-
tion by § 1201(a)(1) of the Act, § 168(k)(4)
correspondingly is extended to apply to
eligible qualified property that is exten-
sion property (extension property). Sec-
tion 1201(b)(1)(B) of the Act amended
§ 168(k)(4) by adding § 168(k)(4)(H) to
the Code. Section 168(k)(4)(H)(iii) de-
fines “extension property” as property that
is eligible qualified property solely by rea-
son of the extension of § 168(k)(2) by
the Act. This revenue procedure clarifies
which eligible qualified property is exten-
sion property and which is not extension
property (see section 3 of this revenue pro-
cedure).
.04 Under § 168(k)(4)(A), a § 168(k)(4)
election applies to a corporation’s first tax-
able year ending after March 31, 2008, and
to any subsequent taxable year. However,
under § 168(k)(4)(H)(i)(I), a corporation
that made the § 168(k)(4) election for its
first taxable year ending after March 31,
2008, may elect not to have the § 168(k)(4)
election apply to extension property. This
revenue procedure provides guidance re-
garding the time and manner for making
the election not to apply § 168(k)(4) to ex-
tension property (see section 4 of this rev-
enue procedure).
.05 In general, the amount by which
the § 168(k)(4) election increases the busi-
ness credit limitation under § 38(c) and
the AMT credit limitation under § 53(c)
is the bonus depreciation amount.See
§ 168(k)(4)(A)(iii). Except as provided
below, the bonus depreciation amount
generally is equal to 20 percent of the
excess of the aggregate amount of de-
preciation that would be allowable for
eligible qualified property if the Stimulus
additional first yeardepreciation deduc-
tion applied to all such property, over
the aggregate amount of depreciation that
would be allowable for all such property
if the Stimulus additional first year de-
preciation deduction did not apply.See
§ 168(k)(4)(C)(i). However, the bonus
depreciation amount for any taxable year
must not exceed the maximum increase
amount reduced by the sum of the bonus
depreciation amounts determined for all
prior taxable years.See§ 168(k)(4)(C)(ii).
In general, the maximum increase amount
is equal to the lesser of $30 million or 6
percent of the sum of the unexpired and
unused pre-2006 business credit carryfor-
wards allocable to the research credit and
AMT credit carryforwards to the current
taxable year.See§ 168(k)(4)(C)(iii). For
any taxable year, the bonus depreciation
amount allocated to either the business
credit limitation or AMT credit limitation
must not exceed the amount of unexpired
and unused pre-2006 (1) business credit
carryforwards allocable to the research
credit or (2) AMT credit carryforwards,
less bonus depreciation amounts allocated
to each limitation, respectively, for all
prior taxable years.See§ 168(k)(4)(E)(ii).
To the extent that the business credit or
AMT credit allowable to a taxpayer is
due to an increase in the business credit
limitation or AMT credit limitation that
results from the § 168(k)(4) election,
such amount(s) are treated as overpay-
ments within the meaning of § 6401(b)
that are refundable to the taxpayer.See
§ 168(k)(4)(F). See section 5 of Rev. Proc.
2008–65 and sections 4, 5, and 6 of Rev.
Proc. 2009–16, 2009–6 I.R.B. 449, for
additional guidance regarding the compu-
tation of the bonus depreciation amount
and the allocation of the bonus deprecia-
tion amount between the business credit
and AMT credit limitations under §§ 38(c)
and 53(c), respectively.
.06 Section 168(k)(4)(H)(i)(II) pro-
vides that, if a corporation has made the
§ 168(k)(4) election and the corporation
does not make the election not to apply
§ 168(k)(4) to extension property, separate
bonus depreciation amounts, maximum
amounts, and maximum increase amounts
are computed for eligible qualified prop-
erty that is not extension property and
for extension property. This revenue pro-
cedure provides guidance regarding the
computation of the bonus depreciation
amount for extension property (see section
5 of this revenue procedure).
July 20, 20091502009–29 I.R.B.

.07 Section 168(k)(4)(H)(ii)(I) pro-
vides that, if a corporation did not make
the § 168(k)(4) election for its first tax-
able year ending after March 31, 2008,
the corporation may elect (the § 168(k)(4)
extension property election) not to claim
the Stimulus additional first year depre-
ciation deduction for extension property
and instead increase its business credit
limitation under § 38(c) and the AMT
credit limitation under § 53(c). Section
168(k)(4)(H)(ii)(II) provides that, if a
corporation makesthe § 168(k)(4) ex-
tension property election, such election
applies only to extension property. This
revenue procedure provides guidance re-
garding the time and manner for making
the § 168(k)(4) extension property election
(see section 6 of this revenue procedure).
.08 Section 3081(b) of the Housing
and Economic Recovery Act of 2008,
Pub. L. No. 110–289, 122 Stat. 2654
(July 30, 2008) (Housing Act), allows
an applicable partnership (as defined in
§ 3081(b)(4)(A) of the Housing Act)
to elect to be treated as having made a
deemed payment of income tax in a certain
amount. If an applicable partnership
makes this election, the applicable
partnership determines the depreciation
deduction for any eligible qualified
property (as defined in § 3081(b)(4)(C)
of the Housing Act and in section 3 of
Rev. Proc. 2008–65) placed in service
by the partnership during the taxable year
by using the straight line method and by
not claiming the Stimulus additional first
year depreciation deduction, and reduces
the amount of its research credit for the
taxable year by the amount of the deemed
payment for the taxable year. The election
to apply § 3081(b) of the Housing Act
(the § 3081(b) Housing Act election) must
be made for the applicable partnership’s
first taxable year ending after March 31,
2008, and applies to any taxable year
during which eligible qualified property
is placed in service by the applicable
partnership. The Act does not extend or
amend the § 3081(b) Housing Act election.
Therefore, if an applicable partnership
made the § 3081(b) Housing Act election
for its first taxable year ending after
March 31, 2008, this election continues to
apply only to eligible qualified property
as defined in section 3 of Rev. Proc.
2008–65 (as modified by section 7.01 of
this revenue procedure). An applicable
partnership may not make an election to
apply § 3081(b) of the Housing Act to
extension property.
.09 Section 1201(a)(3)(A)(iii) of the
Act amends § 168(k)(4)(D) by adding a
new clause (ii) which provides that, for
purposes of applying § 168(k)(2) to de-
termine whether depreciable property is
eligible qualified property for purposes
of § 168(k)(4), “April 1, 2008” shall
be substituted for “January 1, 2008” in
§ 168(k)(2)(A)(iii)(I). This amendment
relates to the qualification of property ac-
quired by a taxpayer pursuant to a written
binding contract as eligible qualified prop-
erty for purposes of § 168(k)(4). Section
3.02(2) of Rev. Proc. 2008–65 is modified
to reflect this amendment (see section 7 of
this revenue procedure).
.10 Section 168(k)(4)(E)(iv) defines the
term “AMT credit increase amount” as
meaning the portion of the minimum tax
credit under § 53(b) for the first taxable
year ending after March 31, 2008, deter-
mined by taking into account only the ad-
justed minimum tax for taxable years be-
ginning before January 1, 2006. This rev-
enue procedure modifies section 5.06 of
Rev. Proc. 2008–65 to clarify that “ad-
justed minimum tax” means “adjusted net
minimum tax” (see section 7 of this rev-
enue procedure).
.11 Section 3.02(1)(a)(ii) of Rev. Proc.
2009–16 provides that, if a taxpayer’s
first taxable year ending after March 31,
2008, ends before December 31, 2008,
the taxpayer must file an amended federal
income tax return on or before the due date
(without regard to extensions) of the tax-
payer’s original federal income tax return
for the succeeding taxable year in order
to claim the refundable credit resulting
from a § 168(k)(4) election. Some tax-
payers have expressed concern about how
to comply with this requirement when a
taxpayer’s succeeding taxable year is a
short taxable year. This revenue procedure
modifies section 3.02(1)(a)(ii) of Rev.
Proc. 2009–16 to address this concern
(see section 8 of this revenue procedure).
SECTION 3. EXTENSION PROPERTY
AND ELIGIBLE QUALIFIED
PROPERTY THAT IS NOT EXTENSION
PROPERTY
.01In General.Under
§ 168(k)(4)(H)(iii), extension property
means property that is eligible qualified
property solely by reason of the extension
of § 168(k)(2) by the Act. Pursuant
to § 168(k)(4)(D), as amended by the
Act, the term “eligible qualified prop-
erty” means qualified property under
§ 168(k)(2), except that in applying
§ 168(k)(2), (1) “March 31, 2008” is
substituted for “December 31, 2007” each
place it appears in § 168(k)(2)(A) and
§ 168(k)(2)(E)(i) and (ii), (2) “April 1,
2008” is substituted for “January 1, 2008”
in § 168(k)(2)(A)(iii)(I), and (3) only
adjusted basis attributable to manufacture,
construction or production after March 31,
2008, and before January 1, 2010, is taken
into account under §168(k)(2)(B)(ii).
However, the binding contract require-
ment in § 168(k)(2)(A)(iii)(I) does not
apply for determining whether a passenger
aircraft is eligible qualified property. Sec-
tion 168(k)(4)(G)(iii). For the definition
of eligible qualified property prior to the
amendment by the Act, see section 3 of
Rev. Proc. 2008–65 (as modified by
section 7.01 of this revenue procedure).
.02Eligible Qualified Property That Is
Not Extension Property. Eligible qualified
property (as defined in § 168(k)(4)(D), as
amended by the Act) is not extension prop-
erty if:
(1) The eligible qualified property is
acquired by the taxpayer after March 31,
2008, and placed in service by the taxpayer
before January 1, 2009;
(2) The eligible qualified property
meets the requirements of § 168(k)(2)(B)
(long production period property or trans-
portation property), is acquired by the
taxpayer after March 31, 2008, and is
placed in service by the taxpayer before
January 1, 2010; or
(3) The eligible qualified property
meets the requirements of § 168(k)(2)(C)
(certain aircraft), is acquired by the tax-
payer after March 31, 2008, and is placed
in service by the taxpayer before January
1, 2010.
.03Extension Property.Extension
property is eligible qualified property (as
defined in § 168(k)(4)(D), as amended by
the Act) that:
(1) Is acquired by the taxpayer after
March 31, 2008, is placed in service by the
taxpayer after December 31, 2008, and be-
fore January 1, 2010, and is not described
in section 3.02(2) or (3) of this revenue
procedure;
2009–29 I.R.B.151July 20, 2009

(2) Meets the requirements of
§ 168(k)(2)(B) (long production period
property or transportation property), is
acquired by the taxpayer after March 31,
2008, and is placed in service by the tax-
payer after December 31, 2009, and before
January 1, 2011; or
(3) Meets the requirements of
§ 168(k)(2)(C) (certain aircraft), is ac-
quired by the taxpayer after March 31,
2008, and is placed in service by the tax-
payer after December 31, 2009, and before
January 1, 2011.
SECTION 4. ELECTION NOT TO
APPLY § 168(k)(4) TO EXTENSION
PROPERTY
.01In General. If a corporate taxpayer
has made the § 168(k)(4) election as pro-
vided in section 3 of Rev. Proc. 2009–16
(as modified by section 8 of this revenue
procedure) for its first taxable year end-
ing after March 31, 2008, the taxpayer may
make an election not to apply § 168(k)(4)
to extension property placed in service by
the taxpayer in its first taxable year end-
ing after December 31, 2008, and in any
subsequent taxable year. The taxpayer’s
§ 168(k)(4) election continues to apply to
eligible qualified property that is not ex-
tension property. Even if the taxpayer does
not place in service any extension property
in its first taxable year ending after Decem-
ber 31, 2008, the taxpayer must make the
election not to apply § 168(k)(4) to exten-
sion property for that taxable year if the
taxpayer wishes to apply such election to
extension property placed in service in a
subsequent taxable year. Failure to comply
with all of the requirements of section 4.02
of this revenue procedure or, if applicable,
section 4.03 of this revenue procedure, will
nullify a taxpayer’s attempted election not
to apply § 168(k)(4) to extension property.
.02Time and Manner for Making the
Election Not to Apply § 168(k)(4) to Ex-
tension Property.
(1)Time for making election. Except
as provided in section 4.04 of this revenue
procedure, a corporate taxpayer must make
the election not to apply § 168(k)(4) to ex-
tension property by the due date (includ-
ing extensions) of the federal income tax
return for the taxpayer’s first taxable year
ending after December 31, 2008. If the
taxpayer has filed such federal income tax
return and did not make the election not
to apply § 168(k)(4) to extension property
but wants to do so, see section 4.04 of this
revenue procedure for how to make a late
election.
(2)Manner of making election. Except
as provided in section 4.03 of this revenue
procedure, a corporate taxpayer makes the
election not to apply § 168(k)(4) to exten-
sion property by:
(a) Attaching a statement to the tax-
payer’s timely-filed federal income tax re-
turn for its first taxable year ending af-
ter December 31, 2008, indicating that the
taxpayer is making the election not to ap-
ply § 168(k)(4) to extension property; and
(b) Providing written notification to any
partnership in which the taxpayer is a part-
ner that the taxpayer is making the election
not to apply § 168(k)(4) to extension prop-
erty. This notification must be made on or
before the due date (including extensions)
of the taxpayer’s federal income tax return
for its first taxable year ending after De-
cember 31, 2008. If the taxpayer makes
a late election not to apply § 168(k)(4) to
extension property in accordance with sec-
tion 4.04 of this revenue procedure, the no-
tificationtothepartnershipmustbemade
no later than the date the taxpayer files its
federal income tax return containing the
late election.
.03Controlled Groups.
(1)In general. The Act does not modify
the rules under § 168(k)(4)(C)(iv) for treat-
ing members of a controlled group of cor-
porations (as defined in § 168(k)(4)(C)(iv)
and in section 2.05 of Rev. Proc. 2009–16)
as one taxpayer for purposes of § 168(k)(4)
(hereinafter such group of corporations
is referred to as a “controlled group”).
Therefore, if any member of a controlled
group makes the election not to apply
§ 168(k)(4) to extension property, such
election is binding on all other members of
the controlled group. For purposes of this
section 4.03, the rules provided in section
3.05(1) of Rev. Proc. 2009–16 (relating
to the determination of the members of a
controlled group) and section 3.05(2)(d)
of Rev. Proc. 2009–16 (relating to the
effect of a § 168(k)(4) election to members
entering and leaving acontrolled group)
apply.
(2)Time and manner of making the
election not to apply § 168(k)(4) to exten-
sion property.
(a)All members of a controlled group
constitute a single consolidated group.
If all members of a controlled group are
membersofanaffiliatedgroupofcor-
porations that file a consolidated return
(hereinafter, a “consolidated group”), the
common parent (within the meaning of
§ 1.1502–77(a)(1)(i) of the Income Tax
Regulations) of the consolidated group
makes the election not to apply § 168(k)(4)
to extension property on behalf of all
members of the consolidated group. The
common parent makes this election within
the time and in the manner provided in
section 4.02 of this revenue procedure.
(b)All members of a controlled group
do not constitute a single consolidated
group. This section 4.03(2)(b) applies
when separate federal income tax returns
are filed by some or all members of a
controlled group. If a controlled group
includes, but is not limited to, members
of a consolidated group, the consolidated
group is treated as a single member of
the controlled group. For purposes of
this section 4.03(2)(b), the election not to
apply § 168(k)(4) to extension property
of a consolidated group that is a mem-
ber of a controlled group is made by the
common parent (within the meaning of
§ 1.1502–77(a)(1)(i)) on behalf of the
consolidated group. A member of the
controlled group makes the election not
to apply § 168(k)(4) to extension property
by:
(i) Following the procedures in section
4.02 of this revenue procedure; and
(ii) Notifying all other members of the
controlled group that the election not to ap-
ply § 168(k)(4) to extension property will
be made. This notification must be made
before the due date (excludingextensions)
of the electing member’s federal income
tax return for its first taxable year ending
after December 31, 2008. If the electing
member makes a late election not to ap-
ply § 168(k)(4) to extension property in
accordance with section 4.04 of this rev-
enue procedure, the electing member must
notify the other members no later than the
date the electing member files its federal
income tax return containing the late elec-
tion.
.04Limited Relief for Late Elections.
(1)Automatic 6-month extension.Pur-
suant to § 301.9100–2(b) of the Procedure
and Administration Regulations, an auto-
matic extension of 6 months from the due
date of the federal income tax return (ex-
cludingextensions) for the taxpayer’s first
July 20, 20091522009–29 I.R.B.

taxable year ending after December 31,
2008, is granted to make the election not
to apply § 168(k)(4) to extension property,
provided the taxpayer timely filed the tax-
payer’s federal income tax return for the
taxpayer’s first taxable year ending after
December 31, 2008, and the taxpayer sat-
isfies the requirements in § 301.9100–2(c)
and (d).
(2)Other extensions. A taxpayer that
fails to make the election not to apply
§ 168(k)(4) to extension property for the
taxpayer’s first taxable year ending after
December 31, 2008, as provided in section
4.02, 4.03, or 4.04(1) of this revenue pro-
cedurebutwantstodosomustfileare-
quest for an extension of time to make the
election under the rules in § 301.9100–3.
SECTION 5. BONUS DEPRECIATION
AMOUNT FOR EXTENSION
PROPERTY
.01In General.Under
§ 168(k)(4)(H)(i)(II), if a taxpayer has
made the § 168(k)(4) election for its first
taxable year ending after March 31, 2008,
and does not make the election not to
apply § 168(k)(4) to extension property,
separate bonus depreciation amounts,
maximum amounts, and maximum in-
crease amounts are computed and applied
to eligible qualified property that is not
extension property and to extension prop-
erty. Such a taxpayer computes its bonus
depreciation amount for eligible qualified
property that is not extension property in
the manner described in section 5 of Rev.
Proc. 2008–65 (as modified by section
7.02 of this revenue procedure).
.02Computation of Extension Property
Bonus Depreciation Amount.
(1)In general. Except as provided in
section 5.02(2) of this revenue procedure,
a taxpayer described in section 5.01 of
this revenue procedure computes its bonus
depreciation amount for extension prop-
erty (extension property bonus deprecia-
tion amount) in the manner described in
section 5 of Rev. Proc. 2008–65 (as modi-
fied by section 7.02 of this revenue proce-
dure), with the following additional modi-
fications:
(a)Bonus depreciation amount.
The bonus depreciation amount under
§ 168(k)(4)(C)(i) is computed only with
regard to extension property; and
(b)Maximum amount. The maximum
amount under § 168(k)(4)(C)(ii) equals the
maximum increase amount (as computed
under section 5.04 of Rev. Proc. 2008–65)
less the sum of the extension property
bonus depreciation amounts determined
under § 168(k)(4)(C) for all preceding
years. Therefore, a taxpayer described in
section 5.01 of this revenue procedure may
claim a maximum of $30 million of re-
fundable credits relating to its § 168(k)(4)
election applicable to eligible qualified
property that is not extension property, and
a maximum of $30 million of refundable
credits relating to its§ 168(k)(4) election
applicable to extension property.
(2)Controlled groups.Ifataxpayerde-
scribedinsection5.01ofthisrevenuepro-
cedure is a member of a controlled group
(as determined under section 3.05(1) of
Rev. Proc. 2009–16), the taxpayer must
compute the controlled group’s bonus de-
preciation amount for extension property
(group extension property bonus deprecia-
tion amount). The group extension prop-
erty bonus depreciation amount is com-
puted in the same manner as described in
section 4.02(2) or 4.02(3)(b)(ii) of Rev.
Proc. 2009–16, as applicable, but taking
into account the modifications described in
section 5.02(1) of this revenue procedure.
.03Allocation of Extension Property
Bonus Depreciation Amount.
(1)In general. A taxpayer described
in section 5.01 of this revenue procedure
allocates its extension property bonus dep-
recation amount (computed under section
5.02 of this revenue procedure) between
the business credit limitation under § 38(c)
and the AMT credit limitation under
§ 53(c) in the same manner as provided in
section 4 of Rev. Proc. 2009–16. There-
fore, an allocation under this section 5.03
is reported with the taxpayer’s timely filed
original federal income tax return for the
taxable year.
(2)Controlled groups. The group
extension property bonus depreciation
amount (computed under section 5.02(2)
of this revenue procedure) that is alloca-
ble to a member of a controlled group (as
determined under section 3.05(1) of Rev.
Proc. 2009–16) is determined by arriving
at each member’s proportionate share of
the group extension property bonus depre-
ciation amount, unless all members of the
group agree to an alternative allocation
under section 4.02(3)(c) of Rev. Proc.
2009–16. Each member’s proportionate
share of the group extension property
bonus depreciation amount is determined
in accordance with the method described
in section 4.02(2) or 4.02(3)(b)(iii) of Rev.
Proc. 2009–16, as applicable. In lieu of
the method described in section 4.02(3)(b)
of Rev. Proc. 2009–16, the controlled
group may allocate the group extension
property bonus depreciation amount pur-
suant to an allocation agreement (which
may differ from the allocation agreement
applicable to eligible qualified property
that is not extension property) described in
section 4.02(3)(c) of Rev. Proc. 2009–16.
.04Examples.
(1)Example 1. On August 1, 2008, B, a corpo-
ration with a taxable year ending on December 31st,
purchases and places in service property described in
both § 168(k)(2)(A) and (k)(4)(D) (Property X). In
addition, on September 1, 2008, B begins produc-
tion of property described in both § 168(k)(2)(B)(i)
and (k)(4)(D) (Property Y). On March 15, 2009, B
files its original federal income tax return for the tax-
able year ending December 31, 2008, and makes the
§ 168(k)(4) election in accordance with section 3.04
of Rev. Proc. 2009–16.
On August 1, 2009, B purchases and places in ser-
vice property described in both § 168(k)(2)(A) and
(k)(4)(D) (Property Z). On October 1, 2009, B com-
pletes production of Property Y and places Property
Y in service. On March 15, 2010, B files its original
federal income tax return for the taxable year ending
December 31, 2009, and does not make the election
not to apply § 168(k)(4) to extension property.
(a) For B’s taxable year ending December 31,
2008, Property X is eligible qualified property under
§ 168(k)(4)(D) and (k)(2)(A) and, as a result of B’s
§ 168(k)(4) election, is taken into account in com-
puting the bonus depreciation amount for this taxable
year.
(b) For B’s taxable year ending December 31,
2009, Property Y is eligible qualified property that
is not extension property under § 168(k)(4)(D),
(k)(4)(H), and (k)(2)(B) and, as a result of B’s
§ 168(k)(4) election, is taken into account in comput-
ing the bonus depreciation amount for this taxable
year. Further, under § 168(k)(4)(H)(iii), Property
Z is extension property that is taken into account
in computing the separate extension property bonus
depreciation amount for this taxable year.
(2)Example 2. ThefactsarethesameasinEx-
ample 1. Assume that (1) Property X costs $50 mil-
lion and is 5-year property under § 168(e), (2) the
progress expenditures (within the meaning of section
5.02(5) of Rev. Proc. 2008–65 (as modified by sec-
tion 7.02 of this revenue procedure)) as of October
1, 2009, with respect to Property Y are $100 million
and that Property Y is 5-year property under § 168(e),
and (3) Property Z costs $50 million and is 5-year
property under § 168(e). Further assume that B de-
preciates its 5-year property using the optional de-
preciation table that corresponds to the general de-
preciation system, the 200-percent declining balance
method, a 5-year recovery period, and the half-year
convention. For each of Property X and Property Z,
2009–29 I.R.B.153July 20, 2009

the difference between the aggregate amount of de-
preciation that would be allowable for the property if
the Stimulus additional first year depreciation deduc-
tion applied over the aggregate amount of deprecia-
tion that would be allowable for the property if the
Stimulus additional first year depreciation deduction
did not apply is $20 million. That amount for Prop-
erty Y is $40 million. As of December 31, 2008, B
has $300 million of unexpired and unused pre-2006
research and AMT credit carryforwards.
(a) Under section 5 of Rev. Proc. 2008–65 (as
modified by section 7.02 of this revenue procedure),
B’s bonus depreciation amount for its taxable year
ending December 31, 2008, is 20 percent of $20 mil-
lion, or $4 million (Property X). Because $4 million is
less than (i) $30 million and (ii) 6 percent of B’s unex-
pired and unused pre-2006research and AMT credit
carryforwards (.06 X $300 million, or $18 million),
B is not limited by the maximum increase amount.
Therefore, B claims $4 million of refundable credits
for its taxable year ending December 31, 2008.
(b) Under section 5 of Rev. Proc. 2008–65 (as
modified by section 7.02 of this revenue procedure),
B’s bonus depreciation amount for its taxable year
ending December 31, 2009, is 20 percent of $40 mil-
lion, or $8 million (Property Y). Under section 5.04 of
Rev. Proc. 2008–65, B’s maximum increase amount
is $18 million (the lesser of (i) $30 million and (ii)
6 percent of B’s unexpired and unused pre-2006 re-
search and AMT credit carryforwards (.06 X $300
million, or $18 million)). Under section 5.03 of Rev.
Proc. 2008–65, B’s maximum amount is $14 million
($18 million less the $4 million of bonus deprecia-
tion amounts determined for eligible qualified prop-
erty that is not extension property for B’s taxable year
ending December 31, 2008). Therefore, because $8
million is less than $14 million, B may claim $8 mil-
lion of refundable credits attributable to eligible qual-
ified property that is not extension property for its tax-
able year ending December 31, 2009.
(c) Under section 5.02(1)(a) of this revenue
procedure, B’s extension property bonus depreci-
ation amount is 20 percent of $20 million, or $4
million (Property Z). Under section 5.04 of Rev.
Proc. 2008–65, B’s maximum increase amount is
$18 million (the lesser of (i) $30 million and (ii)
6 percent of B’s unexpired and unused pre-2006
research and AMT credit carryforwards (.06 X $300
million, or $18 million)). Under section 5.02(1)(b)
of this revenue procedure, B’s maximum amount is
$18 million. Therefore, because $4 million is less
than $18 million, B may claim $4 million of refund-
able credits attributable to extension property for its
taxable year ending December 31, 2009.
SECTION 6. § 168(k)(4) EXTENSION
PROPERTY ELECTION
.01In General. If a corporate tax-
payer did not make the § 168(k)(4) elec-
tion for its first taxable year ending after
March 31, 2008, the taxpayer may make
the § 168(k)(4) extension property elec-
tion. If the § 168(k)(4) extension property
election is made, the election applies to
all extension property placed in service by
the taxpayer in the taxpayer’s first taxable
year ending after December 31, 2008, and
in any subsequent taxable year. Even if
the taxpayer does not place in service any
extension property in its first taxable year
ending after December 31, 2008, the tax-
payer must make the § 168(k)(4) extension
property election for that taxable year if the
taxpayer wishes to apply the election to ex-
tension property placed in service in a sub-
sequent taxable year. Sections 6.02, 6.03,
and 6.04 of this revenue procedure pro-
vide the time and manner for making the
§ 168(k)(4) extension property election.
Failure to comply with all of the require-
ments of section 6.02, 6.03, or 6.04 of this
revenue procedure, as applicable, will nul-
lify a taxpayer’s attempted § 168(k)(4) ex-
tension property election. Section 6.05 of
this revenue procedure provides the effects
of making the § 168(k)(4) extension prop-
erty election and section 6.06 of this rev-
enue procedure provides the procedures
for making a late § 168(k)(4) extension
property election.
.02Time and Manner for Making the
§ 168(k)(4) Extension Property Election.
(1)Time for making election. Except
as provided in section 6.06 of this revenue
procedure, a corporate taxpayer must make
the § 168(k)(4) extension property election
by the due date (including extensions) of
the federal income tax return for the tax-
payer’s first taxable year ending after De-
cember 31, 2008. If the taxpayer has filed
such federal income tax return and did not
make the § 168(k)(4) extension property
election but wants to do so, see section
6.06 of this revenue procedure for how to
makealateelection.
(2)Manner of making election. Except
as provided in sections 6.03 and 6.04 of
this revenue procedure:
(a)C corporations. A C corporation
makes the § 168(k)(4) extension property
election by:
(i) Claiming the refundable credit on the
appropriate line of the Form 1120,U.S.
Corporation Income Tax Return,forthe
taxpayer’s first taxable year ending after
December 31, 2008 (for example, Line 32g
of the 2008 Form 1120);
(ii) Filing, with the Form 1120, the
Form 3800,General Business Credit, or
Form 8827, Credit for Prior Year Min-
imum Tax—Corporations,orboth,as
applicable, for the taxpayer’s first taxable
year ending after December 31, 2008;
(iii) Filing, with the Form 1120, the
Form 4562,Depreciation and Amorti-
zation (Including Information on Listed
Property), for the taxpayer’s first taxable
year ending after December 31, 2008, in-
dicating that the taxpayer used the straight
line method and did not claim the Stimulus
additional first year depreciation deduc-
tion for all extension property; and
(iv) Providing written notification to
any partnership in which the taxpayer is
a partner that the taxpayer is making the
§ 168(k)(4) extension property election.
This notification must be made on or be-
fore the due date (including extensions) of
the taxpayer’s federal income tax return
for its first taxable year ending after De-
cember 31, 2008. If the taxpayer makes a
late § 168(k)(4) extension property elec-
tion in accordance with section 6.06 of this
revenue procedure, the notification to the
partnership must be made no later than the
date the taxpayer files its federal income
tax return containing the late election.
(b)S corporations. An S corporation
makes the § 168(k)(4) extension property
election by:
(i) Making appropriate adjustments to
the appropriate line of the Form 1120S,
U.S. Income Tax Return for an S Corpo-
ration, for the taxpayer’s first taxable year
ending after December 31, 2008, to reflect
the results described in section 6.05(3) of
this revenue procedure from making the
§ 168(k)(4) extension property election
(for example, Line 22b of the 2008 Form
1120S);
(ii) Attaching to the Form 1120S for
the taxpayer’s first taxable year ending
after December 31, 2008, a statement in-
dicating that the taxpayer is making the
§ 168(k)(4) extension property election
and a statement showing the computation
of the increases to the business credit and
AMT credit limitations under, respec-
tively, §§ 38(c) and 53(c) resulting from
making the § 168(k)(4) extension property
election;
(iii) Filing, with the Form 1120S, the
Form 4562 for the taxpayer’s first taxable
year ending after December 31, 2008, in-
dicating that the taxpayer used the straight
line method and did not claim the Stim-
ulus additional first year depreciation de-
duction for all extension property; and
(iv) Providing written notification to
any partnership in which the taxpayer is
a partner that the taxpayer is making the
July 20, 20091542009–29 I.R.B.

§ 168(k)(4) extension property election.
This notification must be made on or be-
fore the due date (including extensions) of
the taxpayer’s federal income tax return
for its first taxable year ending after De-
cember 31, 2008. If the taxpayer makes a
late § 168(k)(4) extension property elec-
tion in accordance with section 6.06 of this
revenue procedure, the notification to the
partnership must be made no later than the
date the taxpayer files its federal income
tax return containing the late election.
.03No Extension Property Placed In
Service During First Taxable Year End-
ing After December 31, 2008.Ifacorpo-
rate taxpayer did not make the § 168(k)(4)
election for its first taxable year ending
after March 31, 2008, and the taxpayer
does not place in service any extension
property during the taxpayer’s first taxable
year ending after December 31, 2008, the
taxpayer makes the § 168(k)(4) extension
property election by attaching a statement
to its timely-filed original federal income
taxreturnforitsfirst taxable year ending
after December 31, 2008, indicating that
the taxpayer is making the § 168(k)(4) ex-
tension property election and by following
the procedures in section 6.02(2)(a)(iv) of
this revenue procedure.
.04Controlled Groups.
(1)Determination of Controlled Group
Members. This section 6.04(1) provides
rules for the determination of membership
in a controlled group (as defined in section
2.05 of Rev. Proc. 2009–16) for purposes
of the § 168(k)(4) extension property elec-
tion.
(a)First taxable year ending after De-
cember 31, 2008. For the first taxable
year ending after December 31, 2008,
§168(k)(4)(C)(iv)isappliedtodeter-
mine the members of a controlled group
(as defined in section 2.05 of Rev. Proc.
2009–16) on December31, 2009, and all
such members on that date are treated as
a controlled group and as one taxpayer.
However, if the first taxable year ending
after December 31, 2008, ends on the same
date for all members of a controlled group
(as defined in section 2.05 of Rev. Proc.
2009–16), all members on such ending
date are treated as a controlled group and
as one taxpayer for purposes of applying
§ 168(k)(4) and this revenue procedure for
the first taxable year ending after Decem-
ber 31, 2008.
(b)Subsequent taxable years.Forany
taxable year subsequent to a taxpayer’s
first taxable year ending after December
31, 2008, § 168(k)(4)(C)(iv) is applied
to determine the members of a controlled
group(asdefinedinsection2.05ofRev.
Proc. 2009–16) on December 31. How-
ever, if a taxable year subsequent to the
first taxable year ending after December
31, 2008, ends on the same date for all
members of a controlled group (as defined
in section 2.05 of Rev. Proc. 2009–16), all
members on such ending date are treated
as a controlled group and as one taxpayer
for purposes of applying § 168(k)(4) and
this revenue procedure for that subsequent
taxable year.
(2)Time and manner of making the
§ 168(k)(4) extension property election.
(a)In general. If any member of a
controlled group (as determined under
section 6.04(1)(a) of this revenue proce-
dure) makes the § 168(k)(4) extension
property election, such election is binding
on all other members of the controlled
group for the members’ first taxable year
ending after December 31, 2008. If in
a subsequent taxable year, a controlled
group determined under section 6.04(1)(b)
of this revenue procedure (the second con-
trolled group) includes 2 or more members
of a controlled group determined under
6.04(1)(a) of this revenue procedure (the
first controlled group), all members of
the second controlled group that were
members of the first controlled group are
deemed to have made (or not made, as the
case may be) the § 168(k)(4) extension
property election of the first controlled
group. For purposes of this section 6.04,
the rules provided in section 3.05(2)(d) of
Rev. Proc. 2009–16 (relating to the ef-
fect of a § 168(k)(4) election to members
entering and leaving acontrolled group)
apply. Accordingly, whether members of
the second controlled group that were not
members of the first controlled group are
bound by a § 168(k)(4) extension property
election made by the first controlled group
(or bound by the first controlled group’s
lack of a § 168(k)(4) extension property
election) is determined under the rules of
section 3.05(2)(d) of Rev. Proc. 2009–16.
(b)All members of a controlled group
constitute a single consolidated group.
If all members of a controlled group are
members of a consolidated group, the
common parent (within the meaning of
§ 1.1502–77(a)(1)(i)) of the consolidated
group makes the § 168(k)(4) extension
property election on behalf of all members
of the consolidated group. The common
parent makes this election within the time
and in the manner provided in section
6.02 or 6.03 of this revenue procedure, as
applicable.
(c)All members of a controlled group
do not constitute a single consolidated
group. This section 6.04(2)(c) applies
when separate federal income tax returns
are filed by some or all members of a
controlled group. If a controlled group
includes, but is not limited to, members
of a consolidated group, the consolidated
group is treated as a single member of the
controlled group. For purposes of this sec-
tion 6.04(2)(c), the § 168(k)(4) extension
property election of aconsolidated group
that is a member of a controlled group
is made by the common parent (within
the meaning of § 1.1502–77(a)(1)(i))
on behalf of the consolidated group. A
member of a controlled group makes the
§ 168(k)(4) extension property election
by:
(i) Following the procedures in section
6.02 or 6.03 of this revenue procedure, as
applicable;
(ii) Attaching to the member’s federal
income tax return a statement describing
the computation of the group extension
property bonus depreciation amount (as
provided in section 6.05(2) of this revenue
procedure);
(iii) Attaching to the member’s fed-
eral income tax return Schedule O (Form
1120)andindicatingincolumn(f)ofPart
IV that the controlled group has made the
§ 168(k)(4) extension property election
and the portion of the group extension
property bonus depreciation amount al-
located to the member (as provided in
section 5.03(2) of thisrevenue procedure);
and
(iv) Notifying all other members of
the controlled group that the § 168(k)(4)
extension property election will be made.
This notification must be made before
the due date (excludingextensions) of the
electing member’s federal income tax re-
turn for the first taxable year ending after
December 31, 2008.
.05Effects of Making § 168(k)(4) Ex-
tension Property Election.
(1)In general. If a taxpayer makes the
§ 168(k)(4) extension property election,
2009–29 I.R.B.155July 20, 2009

the taxpayer’s extension property bonus
depreciation amount is computed in the
mannerdescribedinsection5.02ofthis
revenue procedure, and the taxpayer’s al-
location of the extension property bonus
depreciation amount between the business
credit limitation and AMT credit limitation
under §§ 38(c) and 53(c), respectively, is
made in the manner described in section
5.03 of this revenue procedure. If the tax-
payer makes a late § 168(k)(4) extension
property election in accordance with sec-
tion 6.06 of this revenue procedure, the al-
location under section 5.03 of this revenue
procedure is reported with the taxpayer’s
federal income tax return containing the
late election.
(2)Controlled groups.Ifamemberof
a controlled group (as determined under
section 6.04(1) of this revenue procedure)
makes the § 168(k)(4) extension property
election, the group extension property
bonus depreciation amount is computed in
the manner described in section 5.02(2) of
this revenue procedure and each member’s
proportionate share of the group exten-
sion property bonus depreciation amount
is determined in the manner described in
section 5.03(2) of this revenue procedure.
(3)S corporations. An S corporation
is allowed to make the § 168(k)(4) exten-
sion property electioninthetimeandman-
ner described in section 6.02 or 6.03 of this
revenue procedure, as applicable. The ef-
fects of the § 168(k)(4) extension property
election on an electing S corporation and
itsshareholdersarethesameasthosede-
scribed in section 6.01 and section 6.02 of
Rev. Proc. 2009–16 (relating to the effects
ofthe§168(k)(4)electiononanelecting
S corporation and its shareholders).
(4)Partnerships with corporate part-
ners that make the § 168(k)(4) extension
property election. If a corporation makes
the § 168(k)(4) extension property election
and is a partner in a partnership (elect-
ing corporate partner), the partnership
must provide the electing corporate part-
ner with sufficient information to apply
§ 168(k)(4)(G)(ii) in determining its dis-
tributive share of partnership items under
§ 702 relating to any extension prop-
erty placed in service by the partnership
during the taxable year. This informa-
tion must be provided in the time and
manner required under § 6031(b) and
§ 1.6031(b)–1T(a)(3)(ii) and (b). If the
partnership has filed its federal tax return
for its first taxable year ending after De-
cember 31, 2008, on or before July 20,
2009, and did not provide the electing cor-
porate partner with sufficient information
to apply § 168(k)(4)(G)(ii) with respect to
extension property, the partnership must
provide such information to the electing
corporate partner by the later of October
20, 2009, or 90 calendar days after receiv-
ing the corporate partner’s notification as
required by section 6.02 of this revenue
procedure. The determination of the elect-
ing corporate partner’s distributive share
of items relating to extension property is
made in the manner described in section
5.01(2) of Rev. Proc. 2009–16.
.06Limited Relief for Late § 168(k)(4)
Extension Property Election.
(1)Automatic 6-Month Extension.Pur-
suant to § 301.9100–2(b), an automatic ex-
tension of 6 months from the due date of
the federal income tax return (excluding
extensions) for the taxpayer’s first taxable
year ending after December 31, 2008, is
granted to make the § 168(k)(4) extension
property election, provided the taxpayer
timely filed the taxpayer’s federal income
tax return for the taxpayer’s first taxable
year ending after December 31, 2008, and
the taxpayer satisfies the requirements in
§ 301.9100–2(c) and (d).
(2)Other Extensions. A taxpayer that
fails to make the § 168(k)(4) extension
property election forthe taxpayer’s first
taxable year ending after December 31,
2008, as provided in section 6.02, 6.03,
6.04, or 6.06(1) of this revenue procedure
but wants to do so must file a request for
an extension of time to make the election
under the rules in § 301.9100–3.
SECTION 7. MODIFICATION OF REV.
PROC. 2008–65
To reflect the statutory changes made
to§168(k)(4)(D)by§§1201(a)(3)and
1201(b)(1)(A) of the Act and to clarify the
definition of AMT credit increase amount
in § 168(k)(4)(E)(iv):
.01 Section 3.02(2) of Rev. Proc.
2008–65 is modified to read as follows:
(2) The property (a) is acquired by the
taxpayer after March 31, 2008, and be-
fore January 1, 2009, but only if no writ-
ten binding contract for the acquisition was
in effect before April 1, 2008, or (b) is ac-
quired by the taxpayer pursuant to a writ-
ten binding contract which was entered
into after March 31, 2008, and before Jan-
uary 1, 2009. Section 168(k)(4)(D)(ii) and
(k)(2)(A)(iii). However, see section 3.03
of this revenue procedure for an exception
to this rule;
.02 Section 5.02(5) of Rev. Proc.
2008–65 is modified to read as follows:
(5) With respect to long production pe-
riod property, only the adjusted basis of
such property attributable to manufacture,
construction, or production after March
31, 2008, and before January 1, 2010, is
taken into account in determining the ag-
gregate depreciation amounts under sec-
tions 5.01(1) and (2) of this revenue pro-
cedure. Section 168(k)(4)(D)(iii). The
amounts of adjusted basis of the property
attributable to manufacture, construction,
or production after March 31, 2008, and
before January 1, 2010, are referred to
as “progress expenditures.” For purposes
of determining progress expenditures un-
der this section 5.02(5), rules similar to
the rules in section 4.02(1)(b) of Notice
2007–36, 2007–1 C.B. 1000, 1001 (relat-
ing to progress expenditures for GO Zone
extension real property), apply.
.03 Section 5.06 of Rev. Proc. 2008–65
is modified to read as follows:
.06AMT Credit Increase Amount.The
AMT credit increase amount means the
portion of the minimum tax credit under
§ 53(b) for the first taxable year end-
ing after March 31, 2008, determined
by taking into account only the adjusted
net minimum tax for taxable years be-
ginning before January 1, 2006.See
§ 168(k)(4)(E)(iv). For purposes of this
section 5.06, minimum tax credits shall be
treated as allowed on a first-in, first-out
basis. Section 168(k)(4)(E)(iv).
SECTION 8. MODIFICATION OF REV.
PROC. 2009–16
To address how a taxpayer whose first
taxable year ending after March 31, 2008,
ends before December 31, 2008, makes a
§ 168(k)(4) election when the taxpayer’s
succeeding taxable year is a short taxable
year:
.01 Section 3.02(1)(a)(ii) of Rev. Proc.
2009–16 is modified to read as follows:
(ii) Except as provided in section
3.03(3) of this revenue procedure, by fil-
ing an amended federal income tax return
for such taxable year in the manner de-
scribed in section 3.02(2) of this revenue
July 20, 20091562009–29 I.R.B.

procedure on or before the due date (with-
out regard to extensions) of the taxpayer’s
federal income tax return for the succeed-
ing taxable year; and
.02 Section 3.03 of Rev. Proc. 2009–16
is modified by adding paragraph (3) to read
as follows:
(3) If, under section 3.02(1)(a)(ii) of
this revenue procedure, a taxpayer is re-
quired to file an amended federal income
taxreturnforitsfirst taxable year ending
after March 31, 2008, and the taxpayer’s
succeeding taxable year is a short period
(within the meaning of § 443(a)), then the
taxpayer files the amended federal income
taxreturnforitsfirst taxable year ending
after March 31, 2008, in the manner de-
scribed in section 3.02(2) of this revenue
procedure on or before the earlier of:
(a) 30 calendar days after the due date
(with regard to extensions) of the tax-
payer’s federal income tax return for its
first taxable year ending after March 31,
2008; or
(b) 180 calendar days after the due date
(without regard to extensions) of the tax-
payer’s federal income tax return for the
succeeding taxable year.
SECTION 9. EFFECT ON OTHER
DOCUMENTS
.01 Sections 3.02(2), 5.02(5), and 5.06
of Rev. Proc. 2008–65 are modified and,
as modified, are superseded.
.02 Section 3.02(1)(a)(ii) of Rev. Proc.
2009–16 is modified and, as modified, is
superseded.
.03 Section 3.03 of Rev. Proc. 2009–16
is modified as provided in section 8.02 of
this revenue procedure.
SECTION 10. PAPERWORK
REDUCTION ACT
The collections of information con-
tained in this revenue procedure have
been reviewed and approved by the Office
of Management and Budget in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under control number
1545-2133. An agency may not conduct
or sponsor, and a person is not required to
respond to, a collection of information un-
less the collection of information displays
a valid OMB control number.
The collections of information in this
revenue procedure are in sections 4, 5,
and 6. This information is necessary and
will be used to determine whether the tax-
payer is eligible to make the election not
to apply § 168(k)(4) to extension prop-
erty and the § 168(k)(4) extension prop-
erty election, and the amount by which
the § 168(k)(4) extension property election
increases the taxpayer’s applicable credit
limitations. The collections of information
are required for the taxpayer to make the
election not to apply § 168(k)(4) to exten-
sion property and the § 168(k)(4) exten-
sion property election. The likely respon-
dents are the following: business and other
for-profit institutions.
The estimated total annual reporting
and/or recordkeeping burden is 2,700
hours.
The estimated annual burden per re-
spondent/recordkeeper varies from 0.25
hours to 1 hour, depending on individual
circumstances, with an estimated average
of 0.5 hours. The estimated number of re-
spondents is 5,400. The estimated annual
frequency of responses is on occasion.
SECTION 11. EFFECTIVE DATE
This revenue procedure is effective
June 30, 2009.
SECTION 12. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Jeffrey T. Rodrick of the Of-
fice of Associate Chief Counsel (Income
Tax & Accounting). For further infor-
mation regarding this revenue procedure,
contact Mr. Rodrick at (202) 622–4930
(not a toll-free call).
2009–29 I.R.B.157July 20, 2009

Part IV. Items o
fGeneralInterest
Guidance on Gifts and
Bequests From Certain
Expatriates
Announcement 2009–57
The Heroes Earnings Assistance and
Relief Tax Act of 2008, Pub. L. 110–245,
122 Stat. 1624 (the “Act”), enacted on
June 17, 2008, amended Subtitle B of the
Internal Revenue Code (relating to estate
and gift taxes) by inserting a new Chapter
15 and adding section 2801.
Section 2801 imposes a tax on each
U.S. citizen or resident who receives a
“covered gift or bequest” on or after June
17, 2008, from a “covered expatriate”
whose expatriation date was on or after
that same date. The term “covered expa-
triate” is described in section 877A(g)(1),
which was also added to the Code by the
Act. A “covered gift” is defined as any
property acquired directly or indirectly
from an individual who, at the time of
such acquisition, is a covered expatriate.
A “covered bequest” is defined as any
property acquired directly or indirectly by
reason of the death of an individual who,
immediately before death, was a covered
expatriate.
The Internal Revenue Service intends
to issue guidance under section 2801, as
well as a new Form 708 on which to re-
port the receipt of gifts and bequests sub-
ject to section 2801. The due date for re-
porting, and for paying any tax imposed
on, the receipt of such gifts or bequests has
not yet been determined. The due date will
be contained in the guidance, and the guid-
ance will provide a reasonable period of
timebetweenthedateofissuanceofthe
guidance and the date prescribed for the
filing of the return and the payment of the
tax.
Foundations Status of Certain
Organizations
Announcement 2009–58
The following organizations have failed
to establish or have been unable to main-
tain their status as public charities or as op-
erating foundations. Accordingly, grantors
and contributors may not, after this date,
rely on previous rulings or designations
in the Cumulative List of Organizations
(Publication 78), or on the presumption
arising from the filing of notices under sec-
tion 508(b) of the Code. This listing does
notindicate that the organizations have lost
their status as organizations described in
section 501(c)(3), eligible to receive de-
ductible contributions.
Former Public Charities. The follow-
ing organizations (which have been treated
as organizations thatare not private foun-
dations described in section 509(a) of the
Code) are now classified as private foun-
dations:
Care4Hope, Salt Lake City, UT
Eddie “Rochester” Anderson Foundation,
Inc., Los Angeles, CA
Ensley Community Redevelopment
Corporation, Birmingham, AL
Fountain Youth Ministries, Inc.,
Tucson, AZ
Global Plan Initiative, Alexandria, VA
Grassroots Educational Multimedia,
Hayward, WI
Great Adventure Ministries, Inc.,
Otsego, MN
HHCA, Inc., Los Angeles, CA
Houstons Center Stage Theater,
Tomball, TX
Intact Crime Consultants, Tallahassee, FL
National Coalition for Dually Eligible
People, New Orleans, LA
NewYorkPovertyLawCenter,
New York, NY
North Carolina Council on Problem
Gambling, Inc., Westfield, NY
NorthParkInterfaithHousing
Corporation, Lemon Grove, CA
Pocahontas Family Tree, Marlinton, WV
Power Ministries International, Inc.,
Milltown, NJ
Praise Inc., Louisville, KY
Re-New London Council, Inc.,
New London, CT
River of Fire Ministries International Inc.,
Battle Ground, WA
Special Ed Advocate, Inc.,
Pembroke Pines, FL
Sports for Life, Inc., North Canton, OH
Staples Host Lions Club, Staples, MN
Vital Signs Economic Stability Training,
Inc., Buford, GA
Volunteer Mounted Patrol, Inc.,
Freeland, MD
Word Way Community Development
Nonprofit Housing Corporation,
Detroit, MI
Wichita-Sedgwick County Domestic
Violence Coalition, Wichita, KS
Yolanda Diamond Ministries,
Houston, TX
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as
a private operating foundation, the Inter-
nalRevenueServicewillissuearulingor
determinationletterwiththerevisedclas-
sification as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
videdinsection1.509(a)–7oftheIncome
Tax Regulations. It is not the practice of
the Service to announce such revised clas-
sification of foundation status in the Inter-
nal Revenue Bulletin.
Announcement of Disciplinary Sanctions From the Office
of Professional Responsibility
Announcement 2009-59
TheOfficeofProfessionalResponsi-
bility (OPR) announcesrecent disciplinary
sanctions involving attorneys, certified
public accountants, enrolled agents, en-
rolled actuaries, enrolled retirement plan
agents, and appraisers. These individuals
are subject to the regulations governing
practice before the Internal Revenue Ser-
vice (IRS), which are set out in Title 31,
July 20, 20091582009–29 I.R.B.

Code of Federal Regulations, Part 10, and
which are published in pamphlet form as
Treasury Department Circular No. 230.
The regulations prescribe the duties and
restrictions relating to such practice and
prescribe the disciplinary sanctions for
violating the regulations.
The disciplinary sanctions to be im-
posed for violation of the regulations are:
Disbarred from practice before the
IRS—An individual who is disbarred is
not eligible to represent taxpayers before
the IRS.
Suspended from practice before the
IRS—An individual who is suspended is
not eligible to represent taxpayers before
the IRS during the term of the suspension.
Censured in practice before the
IRS—Censure is a public reprimand. Un-
like disbarment or suspension, censure
does not affect an individual’s eligibility
to represent taxpayers before the IRS, but
OPR may subject the individual’s future
representations to conditions designed to
promote high standards of conduct.
Monetary penalty—A monetary
penalty may be imposed on an individual
who engages in conduct subject to sanc-
tion or on an employer, firm, or entity
if the individual was acting on its behalf
and if it knew, or reasonably should have
known, of the individual’s conduct.
Disqualification of appraiser—An
appraiser who is disqualified is barred
from presenting evidence or testimony in
any administrative proceeding before the
Department of the Treasury or the IRS.
Under the regulations, attorneys, cer-
tified public accountants, enrolled agents,
enrolled actuaries, and enrolled retirement
plan agents may not assist, or accept assis-
tance from, individuals who are suspended
or disbarred with respect to matters consti-
tuting practice (i.e., representation) before
the IRS, and they may not aid or abet sus-
pended or disbarred individuals to practice
before the IRS.
Disciplinary sanctions are described in
these terms:
Disbarred by decision after hearing,
Suspended by decision after hearing,
Censured by decision after hearing,
Monetary penalty imposed after hear-
ing, and Disqualified after hearing—An
administrative law judge (ALJ) conducted
an evidentiary hearing upon OPR’s com-
plaint alleging violation of the regulations
and issued a decision imposing one of
these sanctions. After 30 days from the
issuance of the decision, in the absence of
an appeal, the ALJ’s decision became the
final agency decision.
Disbarred by default decision, Sus-
pended by default decision, Censured by
default decision, Monetary penalty im-
posed by default decision, and Disqual-
ified by default decision—An ALJ, after
findingthatnoanswertoOPR’scomplaint
had been filed, granted OPR’s motion for a
default judgment and issued a decision im-
posing one of these sanctions.
Disbarment by decision on appeal,
Suspended by decision on appeal, Cen-
sured by decision on appeal, Monetary
penalty imposed by decision on ap-
peal, and Disqualified by decision on
appeal—The decision of the ALJ was
appealed to the agency appeal authority,
acting as the delegate of the Secretary
of the Treasury, and the appeal authority
issued a decision imposing one of these
sanctions.
Disbarred by consent, Suspended by
consent, Censured by consent, Mone-
tary penalty imposed by consent, and
Disqualified by consent—In lieu of a
disciplinary proceeding being instituted
or continued, an individual offered a con-
sent to one of these sanctions and OPR
accepted the offer. Typically, an offer
of consent will provide for: suspension
for an indefinite term; conditions that the
individual must observe during the sus-
pension; and the individual’s opportunity,
after a stated number of months, to file
with OPR a petition for reinstatement af-
firming compliance with the terms of the
consent and affirming current eligibility
to practice (i.e., an active professional
license or active enrollment status). An
enrolled agent or an enrolled retirement
plan agent may also offer to resign in order
to avoid a disciplinary proceeding.
Suspended by decision in expedited
proceeding, Suspended by default de-
cision in expedited proceeding, Sus-
pended by consent in expedited pro-
ceeding—OPR instituted an expedited
proceeding for suspension (based on cer-
tain limited grounds, including loss of a
professional license and criminal convic-
tions).
OPR has authority to disclose the
grounds for disciplinary sanctions in these
situations: (1) an ALJ or the Secretary’s
delegate on appeal has issued a decision
on or after September 26, 2007, which was
theeffectivedateofamendmentstothe
regulations that permit making such deci-
sions publicly available; (2) the individual
has settled a disciplinary case by signing
OPR’s “consent to sanction” form, which
requires consenting individuals to admit to
one or more violations of the regulations
and to consent to the disclosure of the in-
dividual’s own return information related
to the admitted violations (for example,
failure to file Federal income tax returns);
or (3) OPR has issued a decision in an
expedited proceeding for suspension.
Announcements of disciplinary sanc-
tions appear in the Internal Revenue Bul-
letin at the earliest practicable date. The
sanctions announced below are alphabet-
ized first by the names of states and sec-
ond by the last names of individuals. Un-
less otherwise indicated, section numbers
(e.g., § 10.51) refer to the regulations.
2009–29 I.R.B.159July 20, 2009

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Arkansas
Little RockJewell, Barry J.AttorneySuspended by decision
in expedited proceeding
under § 10.82 (conviction
under 26 U.S.C. § 7201
and18U.S.C.§2,tax
evasion)
Indefinite from
June 12, 2009
Idaho
Saint MariesCrowley, Tammy L.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
June 25, 2009
Missouri
Lees SummitGenova, Leslie A.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(attorney disbarment)
Indefinite from
June 25, 2009
Maryland HeightsBusch Hunt, Jacquelyn AttorneyCensured by consent for
admitted violations of
§ 10.51 (failure to timely
deposit and pay Federal
employment taxes)
Indefinite from
April 29, 2009
New Jersey
BogotaWurdemann, William L. CPASuspended by consent
for admitted violation of
§ 10.51 (willfully failed to
timely file several Federal
tax returns)
Indefinite from
June 8, 2009
North Carolina
Winston-SalemBlunt, Jerome L.CPASuspended by consent
for admitted violation of
§10.51(failedtotimely
file several Federal tax
returns, and employer’s
quarterly Federal tax
return)
Indefinite from
June 9, 2009
Texas
DallasBarnes, James H.CPASuspended by consent
for admitted violation of
§ 10.51 (failure to file,
and failure to timely file,
Forms 1040)
Indefinite from
June 15, 2009
July 20, 20091602009–29 I.R.B.

City & StateNameProfessionalDisciplinary SanctionEffective Date(s)
Designation
Wisconsin
Fond Du LacGuenther, Arik J.AttorneySuspended by default
decision in expedited
proceeding under § 10.82
(suspension of attorney
license)
Indefinite from
June 19, 2009
2009–29 I.R.B.161July 20, 2009

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.
July 20, 2009i2009–29 I.R.B.

Numerical Finding List
1
Bulletins 2009–27 through 2009–29
Announcements:
2009-56, 2009-28 I.R.B.145
2009-57, 2009-29 I.R.B.158
2009-58, 2009-29 I.R.B.158
2009-59, 2009-29 I.R.B.158
Notices:
2009-51, 2009-28 I.R.B.128
2009-57, 2009-29 I.R.B.147
Proposed Regulations:
REG-112994-06, 2009-28 I.R.B.144
Revenue Procedures:
2009-30, 2009-27 I.R.B.27
2009-31, 2009-27 I.R.B.107
2009-32, 2009-28 I.R.B.142
2009-33, 2009-29 I.R.B.150
Revenue Rulings:
2009-18, 2009-27 I.R.B.1
2009-19, 2009-28 I.R.B.111
2009-20, 2009-28 I.R.B.112
Treasury Decisions:
9452, 2009-27 I.R.B.1
9453, 2009-28 I.R.B.114
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2009–1 through 2009–26 is in Internal Revenue Bulletin
2009–26, dated June 29, 2009.
2009–29 I.R.B.iiJuly 20, 2009

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2009–27 through 2009–29
Notices:
2006-70
Obsoleted by
T.D. 9453, 2009-28 I.R.B.114
2006-109
Superseded in part by
Rev. Proc. 2009-32, 2009-28 I.R.B.142
Revenue Procedures:
97-49
Modified and superseded by
Rev. Proc. 2009-31, 2009-27 I.R.B.107
2008-38
Superseded by
Rev. Proc. 2009-30, 2009-27 I.R.B.27
2008-65
Modified by
Rev. Proc. 2009-33, 2009-29 I.R.B.150
2009-16
Modified by
Rev. Proc. 2009-33, 2009-29 I.R.B.150
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2009–1 through 2009–26 is in Internal Revenue Bulletin 2009–26, dated June 29, 2009.
July 20, 2009iii2009–29 I.R.B.

2009–29 I.R.B.July 20, 2009

July 20, 20092009–29 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. Select Businesses. Under Businesses 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 email 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