us-irs-revenue-procedures-irb-2008-33-pdf•Internal Revenue Bulletin 2008-33 (PDF rendition): IRS Revenue Procedures
Internal Revenue Bulletin 2008-33 (PDF rendition): IRS Revenue Procedures
us-irs-revenue-procedures-irb-2008-33-pdfInternal Revenue Bulletin 2008-33 (PDF rendition): IRS Revenue ProceduresGuidance
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Bulletin No. 200 8-33 August 18, 2008 HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. INCOME TAX T.D. 9408, page 323. Final regulations under section 152 of the Code provide rules relating to a claim that a child is a dependent by parents who are divorced, legally separated under a decree of separate maintenance, separated under a written separation agreement, or who live apart at all times during the last 6 months of the calendar year. EXEMPT ORGANIZATIONS Announcement 2008–76, page 393. The IRS has revoked its determination that Family Housing Re- vitalization Program of Atlanta, GA; Educational Solutions, Inc., of Jacksonville, FL; Western Pacific University of Moreno Valley, CA; Maine Medical Partners of S. Portland, ME; PEP Transporta- tion, Inc., of Decatur, AL; TLAPALCALLI, Inc., of Brownsville, TX; Missing Children Project, Inc., of Monroe, MI; Adair County Rescue Squad, Inc., of Columbia, KY; Credit Counseling Cen- ters of Ohio, Inc., of Las Vegas, NV; and Fishermen’s Hospital, Inc., of Marathon, FL, qualify as organizations described in sec- tions 501(c)(3) and 170(c)(2) of the Code. ADMINISTRATIVE T.D. 9407, page 330. REG–115457–08, page 390. Final, temporary, and proposed regulations under section 6081 of the Code relate to the simplification of procedures for obtain- ing automatic extensions of time to file certain returns. The regulations affect taxpayers who are required to file certain re- turns and need an extension of time to file. Rev. Proc. 2008–36, page 340. General rules and specifications for private printing of substitute forms. This procedure provides requirements for reproducing paper substitutes and for furnishing substitute re- cipient statements for Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S. It will be reproduced as the next revision of Publi- cation 1179. Rev. Proc. 2007–50 superseded. Announcement 2008–73, page 391. This document contains corrections to proposed regulations (REG–101258–08, 2008–28 I.R.B. 111) providing guidance under section 642(c) of the Code with regard to the federal tax consequences of an ordering provision in a trust, a will, or a provision of local law that attempts to determine the tax character of the amounts paid to a charitable beneficiary of the trust or estate. The regulations also make conforming amendments to the regulations under section 643(a)(5). Announcement 2008–74, page 392. This document contains a correction to final regulations (T.D. 9391, 2008–20 I.R.B. 945) providing rules under section 937(b) of the Code for determining whether income is derived from sources within a U.S. possession or territory specified in section 937(a)(1) (generally referred to in this preamble as a “territory”) and whether income is effectively connected with the conduct of a trade or business within a territory. Announcement 2008–75, page 392. This document contains corrections to proposed regulations (REG–129243–07, 2008–27 I.R.B. 32) implementing amend- ments to the tax return preparer penalties under sections 6694 and 6695 of the Code and related provisions under sections 6060, 6107, 6109, 6696 and 7701(a)(36) reflecting amend- ments to the Code made by the Small Business and Work Op- portunity Tax Act of 2007. Announcements of Disbarments and Suspensions begin on page 394. 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. August 18, 20082008–33 I.R.B. Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 152.— Dependent Defined 26 CFR 1.152–4: Special rule for a child of divorced or separated parents or parents who live apart. T.D. 9408 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR part 1 Dependent Child of Divorced or Separated Parents or Parents Who Live Apart AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final regulations. SUMMARY: This document contains fi- nal regulations relating to a claim that a child is a dependent by parents who are di- vorced, legally separated under a decree of separate maintenance, or separated under a written separation agreement, or who live apart at all times during the last 6 months of the calendar year. The regulations re- flect amendments under the Working Fam- ilies Tax Relief Act of 2004 (WFTRA) and the Gulf Opportunity Zone Act of 2005. DATES:Effective Date:These regulations are effective July 2, 2008. Applicability Date:For date of applica- bility, see §1.152–4(h). FOR FURTHER INFORMATION CONTACT: Victoria Driscoll (202) 622–4920 (not a toll-free number). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collection of information con- tai ned in these final regulations has bee n reviewed and approved by the Off ice of Management and Budget in acc ordance with the Paperwork Re- du ction Act (44 U.S.C. 3507(d)) in connection wi th OMB Control Number 1545–0074. Th is control number is assigned to al l information collections associated w ith individual tax returns (series 1040 and associated forms and schedule s, and related regulatory information collections). Information collection s associated with control number 1545–0074 a re subject to annual public comment and approval by OMB in accordance with the Paperwork Reduction Act. The collect ion of information in these final regu lations is in §1.152–4(e). The in- formation will help the IRS determine if a taxpayer m ay claim a child as a dependent when the pa rents of the child are divorced or separat ed or live apart at all times during the last s ix months of a calendar year. The collecti on of information is required to ob- tain a ben efit. An agency may not conduct or sponso r, and a person is not required to respond t o, a collection of information un- less the collection of information displays avalidc ontrol number assigned by the Of- fice of M anagement and Budget. The info rmation will be reported on IRS Form 833 2,Release of Claim to Exemption for Chil d of Divorced or Separated Par- ents,o r successor form. The time needed to comp lete and file this form will vary de- pendin g on individual circumstances. The estima ted burden for individual taxpayers filing this form is included in the estimates shown in the instructions for their individ- ual in come tax return. Comme nts concerning the accuracy of thi s burden estimate and sugges- tions for reducing this burden should be sent t otheInternal Revenue Service, Attn: IRS Reports Clearance Officer, SE:W :CAR:MP:T:T:SP, Washington, DC 2022 4,andtotheOffice of Manage- ment and Budget, Attn: Desk Officer for the D epartment of the Treasury, Office of In formation and Regulatory Affairs, Wash ington, DC 20503. Book s or records relating to a collection of in formation must be retained as long as t heir contents may become material in the administration of any internal revenue law . Generally, tax returns and return in- for mation are confidential, as required by 26 U .S.C. 6103. Background This document contains final amend- ments to the In come Tax Regulations, 26 CFR part 1, relating to section 152(e) and th e entitlement of divorced or separated parents or parents who live apart at all t imes during the last 6 months of the calen dar year to claim a child as a dependent. On May 2, 200 7,anoticeofproposed rulemaking (REG–149856–03, 2007–24 I.R.B. 1394 ) was published in theFederal Register(7 2 FR 24192). Written and elec- tronic com ments responding to the notice of propose d rulemaking were received. Apubliche aring was requested and held on April 3, 2008, however, the hearing was adjou rned after no speakers appeared. After con sideration of all the comments, the propo sed regulations are adopted as amended b y this Treasury decision. The comments and revisions are discussed in the pream ble. Explana tion of Revisions and Summary of Comme nts 1.Scope of Section 152(e) a.Custo dial parent’s failure to release exempt ion For tax able years beginning before Jan- uary 1, 2005, section 152(e)(1) provided that a c ustodial parent generally was enti- tled to claim the dependency exemption. Thus, if (1) parents of a child were di- vorce d, legally separated, or lived apart durin g the last 6 months of the calendar year, (2) the child was in the custody of one or both parents for more than one-half of th e calendar year, and (3) the child re- ceiv ed over one-half of the child’s sup- port during the calendar year from one or both parents, the child was treated as re- ceiv ing over one-half of the child’s support from the custodial parent unless an excep- tio n applied. Section 152(e)(2) provided an e xception treating the child as receiving ove r one-half of the child’s support from the noncustodial parent if the custodial par- ent released the claim to the exemption. In c ontrast, as amended by WFTRA (Pu blic Law No. 108–311, 118 Stat. 1166) 2008–33 I.R.B.323August 18, 2008 for taxable years beginning after Decem- ber 31, 2004, section 152(e) includes no general rule allowing the custodial parent to claim an exemption for a child. It pro- vides that a child is treated as the qual- ifying child or qualifying relative of the noncustodial parent if (1) the parents are divorced, legally separated, or live apart during the last 6 months of the calendar year, (2) the child receives over one-half of the child’s support during the calendar year from one or both parents, (3) the child is in the custody of one or both parents for more than one-half of the calendar year, and (4) the custodial parent releases the claim to the exemption. Thus, under current section 152(e), the custodial parent’s release of the claim is not an exception to a general rule, but is a condition precedent to the applica- tion of section 152(e). The proposed regu- lations include an example illustrating that section 152(e) does not apply if the custo- dial parent does not release the claim, in which case entitlement to the exemption is determined under section 152(c) or (d). Commentators suggested that the final regulations should reverse the conclusion of this example. The commentators opined that the final regulations should interpret section 152(e) as if it included the pre- WFTRA general rule and provide that the custodial parent is entitled to the exemption if the custodial parent does not release the claim. The final regulations do not adopt this suggestion because it is inconsistent with the language of section 152(e) as amended by WFTRA. b.Definition of custody Section 152(e) includes two provisions relating to the concept of “custody:” (1) section 152(e) applies only if a child is in the custody of one or both parents for over one-half of the calendar year; and (2) in the absence of a qualified pre-1985 agree- ment, the noncustodial parent may claim the exemption only if the custodial parent (defined as the parent having custody for the greater portion of the calendar year) re- leases the claim to the exemption. The pro- posed regulations do not define the term custody. The lack of a definition of the termcus- todyin the proposed regulations may cre- ate ambiguity in determining whether sec- tion 152(e) applies. For example, a com- mentator suggested that the final regula- tions clarify whether a child who has at- tained the age of majority and is emanci- pated under state law is in the custody of one or both parents. The final regulations provide that a child is in the custody of one or both parents for more than one-half of the calendar year if one or both parents have the right under state law to physical custody of the child for more than one-half of the calendar year. However, a child is not in the custody of either parent for pur- poses of section 152(e), for example, when the child reaches the age of majority under state law.See Boltinghouse v. Commis- sioner,T.C.M. 2007–324. The final regu- lations include an example that illustrates that a child is not in the custody of a parent after the child attains the age of majority and is emancipated under state law. c.Application of section 152(e) to child residing with third party Section 152(e)(1) provides that, if spec- ified conditions are met, section 152(e) ap- plies notwithstanding the principal place of abode test of section 152(c)(1)(B) and the tiebreaker rule of section 152(c)(4) for a qualifying child, or the support test of section 152(d)(1)(C) for a qualifying rel- ative. A commentator requested that the final regulations clarify whether section 152(c), rather than section 152(e), applies when a child resides with someone other than a parent for more than one-half of the year because of a parent’s lengthy ab- sence. The final regulations include addi- tional examples illustrating when section 152(e) applies to determine the right to claim a child as a dependent, and how the nights during which the child resides with a third party may be allocated to a parent. d.Coordination of section 152(e) and other provisions The proposed regulations provide that a child who is treated as the qualifying child or qualifying relative of a noncusto- dial parent under section 152(e) is treated as a dependent of both parents for pur- poses of sections 105(b), 132(h)(2)(B), and 213(d)(5). Consistent with the statu- tory language of those provisions, the final regulations clarify that, if section 152(e) does not apply, then this rule treating the child as a dependent of both parents does not apply. Thus, if a custodial parent does not release the claim to the exemption, only the taxpayer who is entitled to claim the child as a dependent under section 152(c) or (d) may treat the child as a de- pendent for purposes of sections 105(b), 132(h)(2)(B), and 213(d)(5). 2.Definition of Custodial Parent The proposed regulations definecusto- dial parentas the parent with whom the child resides for the greater number of nights during the calendar year (the count- ing nights rule) and include rules for allo- cating nights when the child resides with neither parent. a.Counting nights rule A commentator requested that the fi- nal regulations clarify that the counting nights rule applies to determine where a child resides under the tiebreaker rule of section 152(c)(4)(B) as well as to identify the custodial parent for purposes of sec- tion 152(e). The tiebreaker rule of section 152(c)(4)(B) is outside the scope of these regulations and therefore is not addressed. Commentators requested clarification of the termnightfor purposes of the count- ing nights rule. A commentator noted that the rule does not address how the child’s residence for a night is determined (for example, by the child’s physical location at a given time such as midnight, or by where the child sleeps) and for which year the night of December 31 to January 1 is counted. In response to this comment, the final regulations provide that, for purposes of section 152(e), a child resides for a night with a parent if the child sleeps (1) at the parent’s residence (whether or not the par- ent is present), or (2) in the company of the parent when the child does not sleep at a parent’s residence (for example, if the parent and child are on vacation). Under this rule, the time that a child goes to sleep is irrelevant. The final regulations provide that a night that extends over two taxable years is allocated to the taxable year when the night begins. Thus, the night that be- gins on December 31, 2008, is counted for taxable year 2008. Commentators suggested that the counting nights rule may be inequitable in certain situations, for example if a parent works nights and cares for the child during the day, and the other parent works days and cares for the child at night. Under August 18, 20083242008–33 I.R.B. the counting nights rule, the parent who cares for the child at night is the custo- dial parent although the other parent may spend more time with the child. A com- mentator opined that the counting nights rule should create only a rebuttable pre- sumption regarding which parent is the custodial parent. Defining custodial parent by means of a rebuttable presumption would add com- plexity and uncertainty and increase the potential for controversy. As a “bright- line” test, the counting nights rule is easy to understand and apply. The statute and regulations provide flexibility by allowing the custodial parent to release the claim to the exemption. Nonetheless, the final regulations allow an exception for cases in which a child resides for a greater number of days but not nights with a parent who works at night. b.Allocation of nights The proposed regulations provide that a child who resides with neither parent for a night is treated as residing with the parent with whom the child would have resided for the night but for the absence. However, if a child would not have resided with ei- ther parent (for example, because a court awarded custody of the child to a third party for the period of absence), the child is treated as not residing with either parent for the night of the absence. A commentator suggested that the final regulations omit the language “for exam- ple” and provide that an award of custody to a third party is the exclusive circum- stance in which a night is not allocated to either parent. The final regulations do not incorporate this suggestion, as other situ- ations may occur in which a child would not have resided with either parent for a night. However, the final regulations omit the parenthetical andillustrate this situa- tion in the examples. Other commentators noted additional circumstances in which it would be difficult to determine the par- ent with whom a child would have resided for the night. Therefore, the final regula- tions provide that a night is not counted for either parent if the child would not have resided with either parent for the night or it cannot be determined with which parent the child would have resided for the night. Commentators requested that the final regulations address how nights are allo- cated in additional situations involving a child’s absence. The final regulations pro- vide additional examples in response to these comments. A commentator asked how a night is allocated in situations involving the ab- sence of a parent, for example, if a child spends the night in a parent’s residence in the care of a third party, but the parent is absent. Another commentator requested clarification on how a night is allocated if a child is scheduled to reside with one parent but, because of unexpected circumstances (such as that parent’s unplanned absence) the child resides with the other parent for that night. These comments are addressed by the addition in the final regulations of the rule, discussed earlier in this pream- ble, that a child resides with a parent for a night if the child sleeps (1) at the residence of the parent (whether or not the parent is present), or (2) in the company of the par- ent, when the child does not sleep at a par- ent’s residence. 3.Release of Exemption and Revocation of Release a.Release of claim to exemption Section 152(e)(2) provides that a custo- dial parent may release a claim to an ex- emption for a child by signing a written declaration that he or she will not claim the child as a dependent. The proposed regulations provide that the written decla- ration may be made on Form 8332,Re- lease of Claim to Exemption for Child of Divorced or Separted Parents, or succes- sor form, and any declaration not on Form 8332 must conform to the substance of that form. The proposed regulations also pro- vide that a court order or decree may not serve as the written declaration. A commentator asserted that the final regulations should allow a noncustodial parent to claim a child as a dependent if a divorce decree allocates the exemption to that parent, whether or not the custodial parent releases the right to claim the child. Another commentator suggested that pre- sumptions in favor of the custodial parent in the proposed regulations unfairly bur- den the noncustodial parent. A state court may not allocate an ex- emption because sections 151 and 152, not state law, determine who may claim an ex- emption for a child for Federal income tax purposes. Section 152(e) provides for the unilateral release of an exemption by a cus- todial parent. Therefore, the final regula- tions do not adopt these comments. Commentators suggested that the final regulations should specify that a written separation agreement may not serve as the written declaration. One commentator rec- ommended that the final regulations pro- vide that the release must be on Form 8332 or that the release may be on either Form 8332 or a document that is executed for the sole purpose of releasing the claim. Other commentators opined, however, that the fi- nal regulations should provide specifically that a separation agreement that includes an unconditional release or a divorce de- cree may serve as a written declaration. A commentator suggested that a divorce set- tlement agreed to by both parents should determine the right to claim a child as a de- pendent without regard to which parent is the custodial parent and without requiring a separate written declaration. Divorce decrees, separation agree- ments, and similar instruments are com- plex documents that may be subject to differing interpretations governed by state law. Allowing these documents to serve as a written declaration creates complex- ity and uncertainty. Therefore, the final regulations retain the rule that a written declaration not on Form 8332 (or succes- sor form) must conform to the substance of Form 8332, and further provide that a release not on a Form 8332 must be a document executed for the sole purpose of releasing the claim. The final regulations provide specifically that a court order or decree or a separation agreement may not serve as the written declaration. These rules will improve tax administration and reduce controversy. The proposed regulations provide that if a release of a claim to a child is for more than one year, the noncustodial par- ent must attach the original written decla- ration to the parent’s return for the first tax- able year for which the release is effective and a copy of the written declaration for later years. A commentator requested that the final regulations allow a taxpayer to at- tach a copy of a declaration (rather than the original) to a tax return in the first year the release is effective as well as subse- quent years. The final regulations adopt this comment. 2008–33 I.R.B.325August 18, 2008 b.Revocation of release of exemption Under the proposed regulations, Form 8332 or a substitute document may be ex- ecuted for multiple years. Further, to pro- vide flexibility to parents whose circum- stances change, the proposed regulations allow a custodial parent to revoke a re- lease, but the revocation may be effective no earlier than the taxable year that begins in the first calendar year after the calendar year in which the parent revoking the re- lease provides notice of the revocation to the other parent. Commentators objected to the custodial parent’s broad discretion to revoke a release under the proposed reg- ulations. A commentator recommended that the final regulations provide that a tax- payer may revoke a release only if both parents agree. Section 152(e) provides for the unilateral release of an exemption by a custodial parent. The final regulations re- tain the rule allowing unilateral revocation by the custodial parent as consistent with the statute. A commentator suggested that a revo- cation should take effect in the taxable year that the parent signs the revocation. The fi- nal regulations do not adopt this comment, which could result in insufficient notice of the revocation to the noncustodial parent and increase controversies. The proposed regulations also provide that the taxpayer revoking the release must attach the original or a copy of the revoca- tion to the taxpayer’s tax return for any tax- able year the taxpayer claims the exemp- tion as a result of the revocation, and keep a copy of the revocation and evidence of delivery of written notice of revocation to the noncustodial parent. A commentator recommended that the final regulations re- quire the custodial parent to send a copy of the written revocation to the noncusto- dial parent at the last known address or at an address reasonably calculated to en- sure receipt. The commentator opined that proof of mailing by certified mail or other tracked delivery should suffice as evidence of notification. Another commentator ex- pressed concern that a parent whose loca- tion is unknown maynot receive notice of a revocation. To retain flexibility but increase the likelihood that a noncustodial parent will receive notice of a revocation, the final regulations require that the parent revok- ing the release notify, or make reasonable attempts to notify, in writing, the other parent of the revocation. What is a reason- able attempt is determined under the facts and circumstances, but mailing a copy of the written revocation to the noncustodial parent at the last known address or at an address reasonably calculated to ensure receipt satisfies this requirement. A commentator recommended that the final regulations provide that a release may be revoked only on a Form 8332. Consis- tent with the requirements for a release, the final regulations provide that (1) a revoca- tion may be made on Form 8332, or suc- cessor form designated by the IRS, (2) a re- vocation not on the designated form must conform to the substance of the form and be in a document executed for the sole pur- pose of revoking a release, and (3) a tax- payer revoking a release may attach a copy rather than an original to the taxpayer’s re- turn for the first taxable year the revocation is effective, as well as for later years. c.Releases predating applicability date The proposed regulations do not ad- dress whether the rules for releasing a claim to an exemption and for revoking a release apply to a written declaration that is effective for multiple years and that was executed before the applicability date of the regulations. The final regulations apply prospectively, but clarify that a mul- tiple year written declaration executed in a taxable year beginning on or before July 2, 2008,that satisfies the requirements for the form of a written declaration in effect at the time the written declaration is executed is treated as satisfying the requirements for the form of a release under the final regulations. However, the final regulations provide that the rules for revoking a release of a claim to an ex- emption apply without regard to whether a custodial parent executed the release in a taxable year beginning on or before July 2, 2008. Thus, a release executed in a taxable year beginning on or before July 2, 2008, may be revoked. 5.Effective/Applicability Date These final regulations apply to taxable years beginning after July 2, 2008. Special Analyses This Treasury decision is not a signif- icant regulatory action as defined in Ex- ecutive Order 12866. Therefore, a reg- ulatory assessment is not required. Sec- tion 553(b) of the Administrative Proce- dure Act (5 U.S.C. chapter 5) does not ap- ply to these regulations and, because the regulations do not impose a collection of information on small entities, the Regula- tory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Code, the notice of proposed rule- making that preceded these final regula- tions was submitted to the Chief Counsel for Advocacy of the Small Business Ad- ministration for comment on its impact on small business. Drafting Information The principal author of these regula- tions is Victoria J. Driscoll of the Office of Associate Chief Counsel (Income Tax and Accounting). However, other person- nel from the IRS and Treasury Department participated in their development. *****. Amendment to the Regulations Accordingly, 26 CFR part 1 is amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 is amended by adding an entry to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 1.152–4 also issued under 26 U.S.C. 152(e) * * * Par. 2. Section 1.152–4 is revised to read as follows: §1.152–4 Special rule for a child of divorced or separated parents or parents who live apart. (a)In general. A taxpayer may claim a dependency deduction for a child (as de- finedinsection152(f)(1))onlyifthechild is the qualifying child of the taxpayer un- der section 152(c) or the qualifying rela- tive of the taxpayer under section 152(d). Section 152(c)(4)(B) provides that a child who is claimed as a qualifying child by parents who do not file a joint return to- gether is treated as the qualifying child of August 18, 20083262008–33 I.R.B. the parent with whom the child resides for a longer period of time during the taxable year or, if the child resides with both par- ents for an equal period of time, of the par- ent with the higher adjusted gross income. However, a child is treated as the qualify- ing child or qualifying relative of the non- custodial parent if the custodial parent re- leases a claim to the exemption under sec- tion 152(e) and this section. (b)Release of claim by custodial parent—(1)In general. Under sec- tion 152(e)(1), notwithstanding section 152(c)(1)(B), (c)(4), or (d)(1)(C), a child is treated as the qualifying child or qualify- ing relative of the noncustodial parent (as defined in paragraph (d) of this section) if the requirements of paragraphs (b)(2) and (b)(3) of this section are met. (2)Support, custody, and parental sta- tus—(i)In general. The requirements of this paragraph (b)(2) are met if the parents of the child provide over one-half of the child’s support for the calendar year, the child is in the custody of one or both par- ents for more than one-half of the calendar year, and the parents— (A) Are divorced or legally separated under a decree of divorce or separate main- tenance; (B) Are separated under a written sepa- ration agreement; or (C) Live apart at all times during the last 6 months of the calendar year whether or not they are or were married. (ii)Multiple support agreement.The requirements of this paragraph (b)(2) are not met if over one-half of the support of the child is treated as having been received from a taxpayer under section 152(d)(3). (3)Release of claim to child.There- quirements of this paragraph (b)(3) are met for a calendar year if— (i) The custodial parent signs a writ- ten declaration that the custodial parent will not claim the child as a dependent for any taxable year beginning in that calendar year and the noncustodial parent attaches the declaration to the noncustodial parent’s return for the taxable year; or (ii) A qualified pre-1985 instrument, as defined in section 152(e)(3)(B), applicable to the taxable year beginning in that cal- endar year, provides that the noncustodial parent is entitled to the dependency ex- emption for the child and the noncustodial parent provides at least $600 for the sup- port of the child during the calendar year. (c)Custody.Achildisinthecustodyof one or both parents for more than one-half of the calendar year if one or both parents have the right under state law to physical custody of the child for more than one-half of the calendar year. (d)Custodial parent—(1)In general. Thecustodial parentis the parent with whom the child resides for the greater number of nights during the calendar year, and thenoncustodial parentis the parent who is not the custodial parent. A child is treated as residing with neither parent if the child is emancipated under state law. For purposes of this section, a child re- sides with a parent for a night if the child sleeps— (i) At the residence of that parent (whether or not the parent is present); or (ii) In the company of the parent, when the child does not sleep at a parent’s res- idence (for example, the parent and child are on vacation together). (2)Night straddling taxable years.A night that extends over two taxable years is allocated to the taxable year in which the night begins. (3)Absences. (i) Except as provided in paragraph (d)(3)(ii) of this section, for pur- poses of this paragraph (d), a child who does not reside (within the meaning of paragraph (d)(1) of this section) with a par- ent for a night is treated as residing with the parent with whom the child would have resided for the night but for the absence. (ii) A child who does not reside (within the meaning of paragraph (d)(1) of this section) with a parent for a night is treated as not residing with either parent for that night if it cannot be determined with which parent the child would have resided or if the child would not have resided with ei- ther parent for the night. (4)Special rule for equal number of nights. If a child is in the custody of one or both parents for more than one-half of the calendar year and the child resides with each parent for an equal number of nights during the calendar year, the parent with the higher adjusted gross income for the calendar year is treated as the custodial parent. (5)Exception for a parent who works at night. If, in a calendar year, due to a par- ent’s nighttime work schedule, a child re- sides for a greater number of days but not nights with the parent who works at night, that parent is treated as the custodial par- ent. On a school day, the child is treated as residing at the primary residence regis- teredwiththeschool. (e)Written declaration—(1)Form of declaration—(i)In general. The written declaration under paragraph (b)(3)(i) of this section must be an unconditional re- lease of the custodial parent’s claim to the child as a dependent for the year or years for which the declaration is effec- tive. A declaration is not unconditional if the custodial parent’s release of the right to claim the child as a dependent requires the satisfaction of any condition, including the noncustodial parent’s meeting of an obligation such as the payment of support. A written declaration must name the non- custodial parent to whom the exemption is released. A written declaration must specify the year or years for which it is effective. A written declaration that speci- fies all future years is treated as specifying the first taxable year after the taxable year of execution and all subsequent taxable years. (ii)Form designated by IRS. A written declaration may be made on Form 8332, Release of Claim to Exemption for Child of Divorced or Separated Parents,orsuc- cessor form designated by the IRS. A writ- ten declaration not on the form designated by the IRS must conform to the substance of that form and must be a document ex- ecuted for the sole purpose of serving as a written declarationunder this section. A court order or decree or a separation agree- ment may not serve as a written declara- tion. (2)Attachment to return . A noncusto- dial parent must attach a copy of the writ- ten declaration to the parent’s return for each taxable year in which the child is claimed as a dependent. (3)Revocation of written declara- tion—(i)In general. A parent may revoke a written declaration described in para- graph (e)(1) of this section by providing written notice of the revocation to the other parent. The parent revoking the written declaration must make reasonable efforts to provide actual notice to the other parent. The revocation may be effective no earlier than the taxable year that begins in the first calendar year after the calendar year in which the parent revoking the written declaration provides, or makes reasonable efforts to provide, the written notice. 2008–33 I.R.B.327August 18, 2008 (ii)Form of revocation. The revocation may be made on Form 8332,Release of ClaimtoExemptionfor Child of Divorced or Separated Parents,orsuccessorform designated by the IRS whether or not the written declaration was made on a form designated by the IRS. A revocation not on that form must conform to the substance of the form and must be a document executed for the sole purpose of serving as a revo- cation under this section. The revocation must specify the year or years for which the revocation is effective. A revocation that specifies all future years is treated as specifying the first taxable year after the taxable year the revocation is executed and all subsequent taxable years. (iii)Attachment to return. The parent revoking the writtendeclaration must at- tach a copy of the revocation to the parent’s return for each taxable year for which the parent claims a child as a dependent as a re- sult of the revocation. The parent revoking the written declaration must keep a copy of the revocation and evidence of delivery of the notice to the other parent, or of the rea- sonable efforts to provide actual notice. (4)Ineffective declaration or revoca- tion. A written declaration or revocation that fails to satisfy the requirements of this paragraph (e) has no effect. (5)Written declaration executed in a taxable year beginning on or before July 2, 2008. A written declaration executed in a taxable year beginning on or before July 2, 2008,that satisfies the requirements for the form of a written declaration in effect at the time the written declaration is ex- ecuted, will be treated as meeting the re- quirements of paragraph (e)(1) of this sec- tion. Paragraph (e)(3) of this section ap- plies without regard to whether a custodial parent executed the written declaration in a taxable year beginning on or before July 2, 2008. (f)Coordination with other sections.If section 152(e) and this section apply, a child is treated as the dependent of both parents for purposes of sections 105(b), 132(h)(2)(B), and 213(d)(5). (g)Examples. The provisions of this section are illustrated by the following ex- amples that assume, unless otherwise pro- vided, that each taxpayer’s taxable year is the calendar year, one or both of the child’s parents provide over one-half of the child’s support for the calendar year, one or both parents have the right under state law to physical custody of the child for more than one-half of the calendar year, and the child otherwise meets the requirements of a qualifying child under section 152(c) or a qualifying relative under section 152(d). In addition, in each of the examples, no qualified pre-1985 instrument or multiple support agreement is in effect. The exam- ples are as follows: Example 1. (i) B and C are the divorced parents of Child. In 2009, Child resides with B for 210 nights and with C for 155 nights. B executes a Form 8332 for 2009 releasing B’s right to claim Child as a de- pendent for that year, which C attaches to C’s 2009 return. (ii) Under paragraph (d) of this section, B is the custodial parent of Child in 2009 because B is the par- ent with whom Child resides for the greater number of nights in 2009. Because the requirements of para- graphs (b)(2) and (3) of this section are met, C may claim Child as a dependent. Example 2. The facts are the same as inExample 1except that B does not execute a Form 8332 or sim- ilar declaration for 2009. Therefore, section 152(e) and this section do not apply. Whether Child is the qualifying child or qualifying relative of B or C is de- termined under section 152(c) or (d). Example 3. (i) D and E are the divorced parents of Child. Under a custody decree, Grandmother has the right under state law to physical custody of Child from January 1 to July 31, 2009. (ii) Because D and E do not have the right un- der state law to physical custody of Child for over one-half of the 2009 calendar year, under paragraph (c) of this section, Child is not in the custody of one or both parents for over one-half of the calendar year. Therefore, section 152(e) and this section do not ap- ply, and whether Child is the qualifying child or qual- ifying relative of D, E, or Grandmother is determined under section 152(c) or (d). Example 4. (i)ThefactsarethesameasinEx- ample 3, except that Grandmother has the right to physical custody of Child from January 1 to March 31, 2009, and, as a result, Child resides with Grand- mother during this period. D and E jointly have the right to physical custody of Child from April 1 to De- cember 31, 2009. During this period, Child resides with D for 180 nights and with E for 95 nights. D executes a Form 8332 for 2009 releasing D’s right to claim Child as a dependent for that year, which E at- taches to E’s 2009 return. (ii) Under paragraph (c) of this section, Child is in the custody of D and E for over one-half of the calendar year, because D and E have the right under state law to physical custody of Child for over one- half of the calendar year. (iii) Under paragraph (d)(3)(ii) of this section, the nights that Child resides with Grandmother are not allocated to either parent. Child resides with D for a greater number of nights than with E during the cal- endar year and, under paragraph (d)(1) of this section, D is the custodial parent. (iv) Because the requirements of paragraphs (b)(2) and (3) of this section are met, section 152(e) and this section apply, and E may claim Child as a dependent. Example 5. (i) The facts are the same as inEx- ample 4, except that D is away on military service from April 10 to June 15, 2009, and September 6 to October 20, 2009. During these periods Child re- sides with Grandmother in Grandmother’s residence. Child would have resided with D if D had not been away on military service. Grandmother claims Child as a dependent on Grandmother’s 2009 return. (ii) Under paragraph (d)(3)(i) of this section, Child is treated as residing with D for the nights that D is away on military service. Because the require- ments of paragraphs (b)(2) and (3) of this section are met, section 152(e) and this section apply, and E, not Grandmother, may claim Child as a dependent. Example 6. F and G are the divorced parents of Child. In May of 2009, Child turns age 18 and is emancipated under the law of the state where Child resides. Therefore, in 2009 and later years, F and G do not have the right under state law to physical custodyofChildforoverone-halfofthecalendar year, and Child is not in the custody of F and G for over one-half of the calendar year. Section 152(e) and this section do not apply, and whether Child is the qualifying child or qualifying relative of F or G is determined under section 152(c) or (d). Example 7. (i) The facts are the same as inExam- ple 6, except that Child turns age 18 and is emanci- pated under state law on August 1, 2009, resides with F from January 1, 2009, through May 31, 2009, and resides with G from June 1, 2009, through December 31, 2009. F executes a Form 8332 releasing F’s right to claim Child as a dependent for 2009, which G at- taches to G’s 2009 return. (ii) Under paragraph (c) of this section, Child is in the custody of F and G for over one-half of the calendar year. (iii) Under paragraph (d)(1) of this section, Child is treated as not residing with either parent after Child’s emancipation. Therefore, Child resides with F for 151 nights and with G for 61 nights. Because the requirements of paragraphs (b)(2) and (3) of this section are met, section 152(e) and this section apply, and G may claim Child as a dependent. Example 8. H and J are the divorced parents of Child. Child generally resides with H during the week and with J every other weekend. Child re- sides with J in H’s residence for 10 consecutive nights while H is hospitalized. Under paragraph (d)(1)(i) of this section, Child resides with H for the 10 nights. Example 9 . K and L, who are separated under a written separation agreement, are the parents of Child. In August 2009, K and Child spend 10 nights together in a hotel while on vacation. Under para- graph (d)(1)(ii) of this section, Child resides with K for the 10 nights that K and Child are on vacation. Example 10. M and N are the divorced parents of Child. On December 31, 2009, Child attends a party at M’s residence. After midnight on January 1, 2010, Child travels to N’s residence, where Child sleeps. Under paragraph (d)(1) of this section, Child resides with N for the night of December 31, 2009, to Jan- uary 1, 2010, because Child sleeps at N’s residence that night. However, under paragraph (d)(2) of this section, the night of December 31, 2009, to January 1, 2010, is allocated to taxable year 2009 for purposes of determining whether Child resides with M or N for a greater number of nights in 2009. Example 11. O and P, who never married, are the parents of Child. In 2009, Child spends alter- August 18, 20083282008–33 I.R.B. nate weeks residing with O and P. During a week that Child is residing with O, O gives Child permission to spend a night at the home of a friend. Under para- graph (d)(3)(i) of this section, the night Child spends at the friend’s home is treated as a night that Child resides with O. Example 12. The facts are the same as inExample 11, except that Child also resides at summer camp for 6 weeks. Because Child resides with each parent for alternate weeks, Child would have resided with O for 3 weeks and with P for 3 weeks of the period that Child is at camp. Under paragraph (d)(3)(i) of this section, Child is treated as residing with O for 3 weeks and with P for 3 weeks. Example 13. The facts are the same as inExample 12, except that Child does not spend alternate weeks residing with O and P, and it cannot be determined whether Child would have resided with O or P for the period that Child is at camp. Under paragraph (d)(3)(ii) of this section, Child is treated as residing with neither parent for the 6 weeks. Example 14. (i) Q and R are the divorced par- ents of Child. Q works from 11 PM to 7 AM Sun- day through Thursday nights. Because of Q’s night- time work schedule, Child resides with R Sunday through Thursday nights and with Q Friday and Sat- urday nights. Therefore, in 2009, Child resides with R for 261 nights and with Q for 104 nights. Child spends all daytime hours when Child is not in school with Q and Q’s address is registered with Child’s school as Child’s primary residence. Q executes a Form 8332 for 2009 releasing Q’s right to claim Child as a dependent for that year, which R attaches to R’s 2009 return. (ii) Under paragraph (d) of this section, Q is the custodial parent of Child in 2009. Child resides with R for a greater number of nights than with Q due to Q’s nighttime work schedule, and Child spends a greater number of days with Q. Therefore, paragraph (d)(5) of this section applies rather than paragraph (d)(1) of this section. Because the requirements of paragraphs (b)(2) and (3) of this section are met, R may claim Child as a dependent. Example 15. (i) In 2009, S and T, the parents of Child, execute a written separation agreement. The agreement provides that Child will live with S and that T will make monthly child support payments to S. In 2009, Child resides with S for 335 nights and with T for 30 nights. S executes a letter declaring that S will not claim Child as a dependent in 2009 and in subsequent alternate years. The letter contains all the information requested on Form 8332, does not require the satisfaction of any condition such as T’s payment of support, and has no purpose other than to serve as a written declaration under section 152(e) and this section. T attaches the letter to T’s return for 2009 and 2011. (ii) In 2010, T fails to provide support for Child, and S executes a Form 8332 revoking the release of S’s right to claim Child as a dependent for 2011. S delivers a copy of the Form 8332 to T, attaches a copy of the Form 8332 to S’s tax return for 2011, and keeps a copy of the Form 8332 and evidence of delivery of the written notice to T. (iii) T may claim Child as a dependent for 2009 because S releases the rightto claim Child as a depen- dent under paragraph (b)(3) of this section by execut- ing the letter, which conforms to the requirements of paragraph (e)(1) of this section, and T attaches the let- ter to T’s return in accordance with paragraph (e)(2) of this section. In 2010, S revokes the release of the claim in accordance with paragraph (e)(3) of this sec- tion, and the revocation takes effect in 2011, the tax- able year that begins in the first calendar year after S provides written notice of the revocation to T. There- fore, in 2011, section 152(e) and this section do not apply, and whether Child is the qualifying child or qualifying relative of S or T is determined under sec- tion 152(c) or (d). Example 16. The facts are the same asExample 15, except that the letter expressly states that S re- leases the right to claim Child as a dependent only if T is current in the payment of support for Child at the end of the calendar year. The letter does not qualify as a written declaration under paragraph (b)(3) of this section because S’s agreement not to claim Child as a dependent is conditioned on T’s payment of sup- port and, under paragraph (e)(1)(i) of this section, a written declaration must be unconditional. There- fore, section 152(e) and this section do not apply, and whether Child is the qualifying child or qualifying relative of S or T for 2009 as well as 2011 is deter- mined under section 152(c) or (d). Example 17. (i) U and V are the divorced parents of Child. Child resides with U for more nights than with V in 2009 through 2011. In 2009, U provides a written statement to V declaring that U will not claim Child as a dependent, but the statement does not spec- ify the year or years it is effective. V attaches the statement to V’s returns for 2009 through 2011. (ii) Because the written statement does not spec- ify a year or years, under paragraph (e)(1) of this sec- tion, it is not a written declaration that conforms to the substance of Form 8332. Under paragraph (e)(4) of this section, the statement has no effect. Section 152(e) and this section do not apply, and whether Child is the qualifying child or qualifying relative of U or V is determined under section 152(c) or (d). Example 18. (i) W and X are the divorced parents of Child. In 2009, Child resides solely with W. The divorce decree requires X to pay child support to W and requires W to execute a Form 8332 releasing W’s right to claim Child as a dependent. W fails to sign a Form 8332 for 2009, and X attaches an unsigned Form 8332 to X’s return for 2009. (ii) The order in the divorce decree requiring W to execute a Form 8332 is ineffective to allocate the right to claim Child as a dependent to X. Furthermore, under paragraph (e)(1) of this section, the unsigned Form 8332 does not conform to the substance of Form 8332, and under paragraph (e)(4) of this section, the Form 8332 has no effect. Therefore, section 152(e) and this section do not apply, and whether Child is the qualifying child or qualifying relative of W or X is determined under section 152(c) or (d). (iii) If, however, W executes a Form 8332 for 2009, and X attaches the Form 8332 to X’s return, then X may claim Child as a dependent in 2009. Example 19. (i) Y and Z are the divorced par- ents of Child. In 2003, Y and Z enter into a separa- tion agreement, which is incorporated into a divorce decree, under which Y, the custodial parent, releases Y’s right to claim Child as a dependent for all future years. The separation agreement satisfies the require- ments for the form of a written declaration in effect at the time it is executed. Z attaches a copy of the separation agreement to Z’s returns for 2003 through 2009. (ii) Under paragraph (e)(1)(ii) of this section, a separation agreement may not serve as a written dec- laration. However, under paragraph (e)(5) of this sec- tion, a written declaration executed in a taxable year beginning on or before July 2, 2008,that satisfies the requirements for the form of a written declaration in effect at the time the written declaration is executed, will be treated as meeting the requirements of para- graph (e)(1) of this section.Therefore, the separation agreement may serve as the written declaration re- quired by paragraph (b)(3)(i) of this section for 2009, and Z may claim Child as a dependent in 2009 and later years. Example 20. (i) The facts are the same as inEx- ample 19, except that in 2009 Y executes a Form 8332 revoking the release of Y’s right to claim Child as a dependent for 2010. Y complies with all the require- ments of paragraph (e)(3) of this section. (ii) Although Y executes the separation agree- ment releasing Y’s right to claim Child as a dependent in a taxable year beginning on or before July 2, 2008, under paragraph (e)(5) of this section, Y’s execution of the Form 8332 in 2009 is effective to revoke the release. Therefore, section 152(e) and this section do not apply in 2010, and whether Child is the qualify- ing child or qualifying relative of Y or Z is determined under section 152(c) or (d). (h)Effective/applicability date.This section applies to taxable years beginning after July 2, 2008. §1.152–4T [Removed] Par. 3. Section 1.152–4T is removed. LindaE.Stiff, Deputy Commissioner for Services and Enforcement. Approved June 23, 2008. Eric Solomon, Assistant Secretary of theTreasury(TaxPolicy). (Filed by the Office of the Federal Register on July 1, 2008, 8:45 a.m., and published in the issue of the Federal Register for July 2, 2008, 73 F.R. 37797) 2008–33 I.R.B.329August 18, 2008 Section 6081.—Extension of Time for Filing Returns 26 CFR 1.6081–1: Extension of time for filing re- turns. T.D. 9407 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 1, 25, 26, 53, 55, 156, 157, and 301 Extension of Time for Filing Returns AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final and temporary regulations and removal of temporary regulations. SUMMARY: This document contains final and temporary regulations relating to the simplification of procedures for obtaining automatic extensions of time to file certain returns. For these returns, the final and temporary regulations also remove the re- quirements for a signature and an explana- tion of the need for an extension of time to file. The final and temporary regulations affect taxpayers who are required to file certain returns and need an extension of time to file. The text of the temporary reg- ulations also serves as the text of the pro- posed regulations (REG–115457–08) set forth in the notice of proposed rulemaking on this subject in this issue of the Bulletin. DATES:Effective Date:These regulations are effective on July 1, 2008. Applicability Date: For dates of applicability of these regulations, see §§1.6081–1(c),1.6081–2T(i), 1.6081–3(e), 1.6081–4(f), 1.6081–5(f), 1.6081–6T(h), 1.6081–7(g), 1.6081–10(f), 1.6081–11(e), 25.6081–1(f), 26.6081– 1(f),53.6081–1(f),55.6081–1(f), 156.6081–1(f), 157.6081–1(f), and 301.6081–2(e). FOR FURTHER INFORMATION CONTACT: Matthew P. Howard, (202) 622–4910 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background This document contains amendments to 26 CFR parts 1, 25, 26, 53, 55, 156, 157, and 301 under section 6081 of the Internal Revenue Code (Code). On November 8, 2005, a temporary regulation (T.D. 9229, 2005–2 C.B. 1051) relating to the sim- plification of procedures for obtaining automatic extensions of time to file cer- tain returns was published in theFederal Register(70 FR 67356). A notice of proposed rulemaking (REG–144898–04, 2005–2 C.B. 1062) cross-referencing the temporary regulations was published in theFederal Registerfor the same day (70 FR 67397). No public hearing was requested or held. Written or electronic comments responding to the notice of proposed rulemaking were received. Af- ter consideration of all the comments, the proposed regulations are adopted as revisedbythisTreasury decision contain- ing both final and temporary regulations. The revisions are discussed in this pre- amble. A notice of proposed rulemaking (REG–115457–08) cross-referencing the temporary regulations appears in this issue of the Bulletin. Summary of Comments and Explanation of Revisions These final and temporary regulations simplify the extension process by allowing certain taxpayers to file a single request for an automatic extension of time to file cer- tain returns. Because the extension is auto- matic, these taxpayers do not need to sign the extension request or provide an expla- nation of the reasons for requesting an ex- tension. Simplifying, consolidating, and standardizing extension forms will reduce taxpayer burden. This simplification will also lower processing costs and facilitate increased efficiency for the IRS. Individual Income Taxpayers The proposed regulations provided an automatic six-month extension to taxpay- ers who must file an individual income taxreturniftheysubmitatimely,com- pleted application for extension on Form 4868“Application for Automatic Exten- sion of Time To File U.S. Individual In- come Tax Return.”This new procedure, adopted in the final regulations, replaces the process where an individual could ob- tain an initial automatic four-month exten- sion by filing Form 4868 and apply for an additional two-month discretionary exten- sion by filing Form 2688,“Application for Additional Extension of Time To File U.S. Individual Income Tax Return.”In connec- tion with the new procedure, the IRS elim- inated Form 2688. One commentator noted that individ- uals who are abroad may qualify for an extension beyond six months and pre- viously applied for this extension using Form 2688. The commentator suggests that the elimination of this form places an added administrative burden on these individual taxpayers who are abroad. The commentator notes that without Form 2688, the alternative for requesting an additional extension beyond six months is to write a letter in accordance with Treas. Reg. §1.6081–1(b). Thus, the commen- tator requests that Form 2688 be retained for use by taxpayers who are abroad and require more than a six-month extension of time to file. The primary goal for these regulatory revisions is to reduce taxpayer burden by simplifying the extension process through the elimination of unnecessary forms and required information. The elimination of Form 2688 is among those measures aimed at streamlining the extension process. Al- though previously used by some taxpayers who are abroad to apply for an additional extension beyond six months, the Trea- sury Department and the IRS have deter- mined that retention of this form for such a limited purpose and small class of tax- payers would not be efficient. The Trea- sury Department and the IRS have also de- termined that due to the discretionary na- ture of any additional extension for taxpay- ers who are abroad, requiring a letter ex- plaining the need for the extension is the most appropriate procedure. There is no additional administrative burden from this decision as in both situations the taxpayer must file a document containing substan- tially the same information and the IRS must process it. Thus, the comment is not adopted and the final regulations eliminate all references to the obsoleted Form 2688. Individual taxpayers who are abroad seeking guidance on applying for an ad- ditional extension of time to file beyond six months should refer to IRS Publica- August 18, 20083302008–33 I.R.B. tion 54,Tax Guide for U.S. Citizens and Resident Aliens Abroad,or the IRS Inter- net site athttp://www.irs.gov/formspubs/ article/0,,id=154856,00.html. Corporate Income Taxpayers The proposed regulations did not change the rules regarding filing exten- sions for corporations but merely changed the appearance andtitle of Form 7004, now titled“Application for Automatic Ex- tension of Time To File Certain Business Income Tax, Information, and Other Re- turns.” While not specifically addressed by the proposed regulations, one comment was received regarding extensions for affiliated groups ofcorporations filing a consolidated return. The commenta- tor suggests that the requirement under §1.6081–3(a)(4) to include a statement listing the name and address of each mem- ber of the affiliated group if the affiliated group will file a consolidated return is inconsistent with §1.1502–75(a). Section 1.1502–75(a) allows a group which did not file a consolidated return for the im- mediately preceding taxable year to file a consolidated return, provided that each member of the group that is eligible to do so files a Form 1122,“Authorization and Consent of Subsidiary Corporation To Be Included in a Consolidated Income Tax Return,”not later than the last day prescribed by law (including extensions of time) for the filing of the common par- ent’s return. The commentator contends that §1.6081–3 suggests that in order to have a valid extension all members of the affiliated group must be listed with the ex- tension request eventhough the affiliated group may not have decided at the time the extension is filed if a consolidated re- turn will be elected. Although, §1.6081–3 requires a listing of subsidiaries with the extension request, the commentator sug- gests that, because §1.1502–75(a) does not require the members of an affiliated group to elect to file a consolidated return until the common parent’s extended due date, the failure to include the name and address of a member of the affiliated group that will be filed as part of the consolidated return should not invalidate a request for an automatic extension of time to file. The IRS and Treasury Department find no inconsistency between these regula- tions. If, at the time the extension request is due, the affiliated entities have not de- cided whether to file a consolidated return, the various affiliated entities must either file separate returns or individually request an extension of time to file. The failure to do either will result in a late return. Additionally, by including a list of affili- ated members with the extension request, each member is deemed to be applying for an extension of time to file. In the event that a subsidiary does not file as part of a consolidated return, that entity will have a valid extension to file its own return. Therefore, the final regulations retain the requirement to list the name and address of each member of the affiliated group with the extension request. To address the commentator’s concern, the final regula- tions explicitly state that the attached list will grant an extension for each member’s separate return in the event that the mem- ber does not file as part of the consolidated group. Partnership, Trust, and Estate Taxpayers The proposed regulations provided for an automatic six-month extension of time to file returns for certain entities not taxed at the entity level (pass-through entities). Recognizing the potential that some tax- payers may not receive timely information returns from pass-through entities (for ex- ample, Schedule K–1s from partnerships) needed to complete their own income tax returns, the proposed regulations specif- ically requested comments on whether a shorter extension of time to file for pass- through entities might reduce overall tax- payer burden. Several comments address- ing this issue were received. Four com- mentators suggested that the filing date for pass-through entities should be moved back to March 15 th instead of April 15 th . This would allow these entities to receive six-month extensions of time to file (un- til September 15 th ) but still allow individ- ual taxpayers with ownership interests in the pass-through entities to receive infor- mation needed to file a timely and com- plete income tax return by the October 15 th extended due date. The filing dates for these pass-through entity returns are gov- erned by statute. See for example, sections 6012(a), and 6072. Accordingly, with- out legislative action, the Treasury Depart- ment and the IRS are unable to change the filing due dates for these pass-through en- tities. The remaining comments on this topic suggested that an extension period for pass-through entities of five months or less would benefit individual taxpayers with ownership interests in pass-through enti- ties in preparation of their own individual income tax returns. Three commentators suggested that the proposed regulations would actually increase taxpayer burden by making it easier for pass-through enti- ties to delay the filing of their returns. Two commentators also pointed out that the five-month extension period would not al- leviate the burden on corporate taxpayers with ownership interests in pass-through entities. These commentators expressed a concern that even a five-month extension period for pass-through entities would, in most cases, simply align the extended due date for pass-through entities with the extended due date for corporate returns, re- sulting in the same delay of information to corporate owners of pass-through entities. This delay, the commentators contend, would greatly increase the need for filing amended returns. These commentators suggested shortening the automatic exten- sion for pass-through entities to a period of less than five months, which would ul- timately reduce burden on both taxpayers and the IRS. In response to these comments, the Treasury Department and IRS have adopted temporary regulations which will provide for a five-month automatic exten- sion period with no additional extension for certain pass-through entities. These entities are partnerships filing Form 1065, “U.S. Return of Partnership Income,”or Form 8804,“Annual Return for Partner- ship Withholding Tax (Section 1446),”and estates and trusts filing Form 1041, “U.S. Income Tax Return for Estates and Trusts.” While some commentators suggested adopting an extension period shorter than five months, the Treasury Department and the IRS believe a five-month automatic extension period for certain partnerships, trusts, and estates, strikes a reasonable balance and reduces the overall burden on taxpayers. The Treasury Department and IRS believe the five-month extension period allows pass-through entities, in- cluding complex and tiered entities, an ad- equate time for preparation of the required pass-through return and also ensures the 2008–33 I.R.B.331August 18, 2008 timely and accurate dissemination of in- formation to a large number of taxpayers who require that information for com- pletion of their own income tax returns. It is recognized that some corporations with ownership interests in pass-through entities may continueto experience de- layed receipt of information needed to complete their own corporate returns and some pass-through entities may find it dif- ficult to complete their returns. Thus the Treasury Department and the IRS request comments on whether the five-month au- tomatic extension of time to file for these pass-through entities increases or reduces overall taxpayer burden. Please follow the instructions in the “Comments and Public Hearing” section in the notice of proposed rulemaking accompanying these temporary regulations in this issue of the Bulletin. Transitional Rule For Pass-Through Entities The temporary regulations allowing certain pass-through entities to obtain an automatic five-month extension apply to applications by these entities for an au- tomatic extension of time to file certain returns due on or after January 1, 2009. These entities will be allowed to obtain an automatic six-month extension of time to file the applicable returns, which are re- quired to be filed before January 1, 2009. Special Analyses It has been determined that this Trea- sury decision is not a significant regula- tory action as defined in Executive Or- der 12866. Therefore, a regulatory assess- ment is not required. It also has been de- termined that section 553(b) of the Ad- ministrative Procedure Act (5 U.S.C. chap- ter 5) does not apply to these regulations. Although these final regulations reference forms that are approved under the Paper- work Reduction Act (44 U.S.C. chapter 35), the regulations themselves do not im- pose a collection of information on small entities. Therefore the Regulatory Flexi- bility Act (5 U.S.C. chapter 6) does not ap- ply. For the applicability of the Regulatory Flexibility Act to the temporary regula- tions, refer to the Special Analyses section of the preamble to the cross-reference no- tice of proposed rulemaking published in this issue of the Bulletin. Pursuant to sec- tion 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preced- ing these regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small businesses. Pursuant to the same provision, the temporary regu- lations contained in this Treasury Decision will be submitted for comment on their im- pact on small businesses. Drafting Information The principal author of these regula- tions is Matthew P. Howard of the Office of the Associate ChiefCounsel (Procedure and Administration). ***** Adoption of Amendments to the Regulations Accordingly, 26 CFR parts 1, 25, 26, 53, 55, 156, 157, and 301 are amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 is amended by removing the entries for §§1.6081–4T, 1.6081–7T, 1.6081–10T, and 1.6081–11T and adding entries in nu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section1.6081–1alsoissuedunder 26 U.S.C. 6081. Section1.6081–3alsoissuedunder 26 U.S.C. 6081. Section1.6081–4alsoissuedunder 26 U.S.C. 6081. Section1.6081–5alsoissuedunder 26 U.S.C. 6081. Section1.6081–7alsoissuedunder 26 U.S.C. 6081. Section 1.6081–10 also issued under 26 U.S.C. 6081. Section 1.6081–11 also issued under 26 U.S.C. 6081. * * * Par. 2. Section 1.911–7 is amended by revising paragraph (c)(2) and adding paragraph (e) to read as follows: §1.911–7 Procedural rules. ***** (c) * * * (2)Extensions. An individual desir- ing an extension of time (in addition to the automatic extension of time granted by §1.6081–4) for filing a return until af- ter the completion of the qualifying period described in paragraph (c)(1) of this sec- tion for claiming any exclusion or deduc- tion under section 911 may apply for an extension. An individual whose moving expense deduction is attributable to ser- vices performed in two years may apply for an extension of time for filing a re- turn until after the end of the second year. The individual may make such application on Form 2350,“Application for Extension of Time To File U.S. Income Tax Return” or in any other manner prescribed by the Commissioner. The application must be filed in accordance with the instructions to the form or as prescribed by the Commis- sioner. The application must set forth the factsreliedontojustifytheextensionof time requested and must include a state- ment as to the earliest date the individual expects to become entitled to any exclu- sion or deduction by reason of completion of the qualifying period. ***** (e)Effective/applicability date.This section applies to applications for exten- sion of time to file returns filed after July 1, 2008. Par. 3. Section 1.6081–1 is amended by revising paragraph (b) and adding para- graph (c) to read as follows: §1.6081–1 Extension of time for filing returns. ***** (b)Application for extension of time—(1)In general. Under other sec- tions in this chapter, certain taxpayers may request an automatic extension of time to file certain returns. Except in undue hardship cases, no extension of time to file a return will be allowed under this section until an automatic extension of time to file the return has been allowed under the applicable section.No extension of time to file a return will be granted under this section for a period of time greater than that provided for by automatic extension. A taxpayer desiring an extension of the time for filing a return, statement, or other document shall submit an application for extension on or before the due date of such return, statement, or other document. If a form exists for the application for an extension, the taxpayer should use the form; however, taxpayers may apply for August 18, 20083322008–33 I.R.B. an extension in a letter that includes the information required by this paragraph. Except as provided in §301.6091–1(b) of this chapter (relating to hand-carried documents), the taxpayer should make the application for extensiontotheInternal Revenue Service office where such return, statement, or other document is required to be filed. Except for requests for automatic extensions of time to file certain returns provided for elsewhere in this chapter, the application must be in writing, signed by the taxpayer or his duly authorized agent, and must clearly set forth— (i) The particular tax return, infor- mation return, statement, or other docu- ment, including the taxable year or period thereof, for which the taxpayer requests an extension; and (ii) An explanation of the reasons for requesting the extension to aid the internal revenue officer in determining whether to grant the request. (2)Taxpayer unable to sign. In any case in which a taxpayer is unable, by reason of illness, absence, or other good cause, to sign a request for an extension, any person standing in close personal or business re- lationship to the taxpayer may sign the re- quest on his behalf, and shall be considered as a duly authorized agent for this purpose, provided the request sets forth the reasons for a signature other than the taxpayer’s and the relationship existing between the taxpayer and the signer. (c)Effective/applicability dates.This section applies to requests for extension of time filed after July 1, 2008. Par. 4. Section 1.6081–2T is revised to read as follows: §1.6081–2T Automatic extension of time to file certain returns filed by partnerships (temporary). (a)In general. (1) Except as provided in paragraph (h) of this section, a partnership required to file Form 1065,“U.S. Return of Partnership Income,”or Form 8804,“An- nual Return for Partnership Withholding Tax (Section 1446),”for any taxable year will be allowed an automatic 5-month ex- tension of time to file the return after the date prescribed for filing the return if the partnership files an application under this section in accordance with paragraph (b) of this section. No additional extension will be allowed pursuant to §1.6081–1(b) beyond the automatic 5-month extension provided by this section. In the case of a partnership described in §1.6081–5(a)(1), the automatic extension of time to file al- lowed under this section runs concurrently with an extension of time to file granted pursuant to §1.6081–5. (2) An electing large partnership (ELP) required to file Form 1065–B,“U.S. Re- turn of Income for Electing Large Partner- ships,”for any taxable year will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the partnership files an application under this section in accor- dance with paragraph (b) of this section. (b)Requirements. To satisfy this para- graph (b), the partnership must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the later of— (i) The date prescribed for filing the re- turn of the partnership; or (ii) The expiration of any extension of time to file granted under §1.6081–5(a); and (3) File the application with the Internal Revenue Service office designated in the application’s instructions. (c)Payment of section 7519 amount. An automatic extension of time for fil- ing a partnership return of income granted under paragraph (a) of this section does not extend the time for payment of any amount due under section 7519, relating to required payments for entities electing not to have a required taxable year. (d)Section 444 election.Anautomatic extension of time for filing a partnership return of income will run concurrently with any extension of time for filing a return allowed because of section 444, relating to the election of a taxable year other than a required taxable year. (e)Effect of extension on partner.An automatic extension of time for filing a partnership return of income under this section does not extend the time for filing a partner’s income tax return or the time for the payment of any tax due on a partner’s income tax return. (f)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the partnership a notice of termination at least 10 days prior to the termination date designated in such notice. The Com- missioner must mail the notice of termi- nation to the address shown on the Form 7004 or to the partnership’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (g)Penalties. See section 6698 for fail- ure to file a partnership return. (h)Special rule for applications for extensions of time to file returns due on or after July 1, 2008 and before January 1, 2009. A partnership required to file Form 1065,“U.S. Return of Partnership Income,” or Form 8804,“Annual Return for Partnership Withholding Tax (Section 1446),”on or after July 1, 2008 and before January 1, 2009, will be allowed an auto- matic 6-month extension of time to file the return after the date prescribed for filing the return if the partnership files an ap- plication under this section in accordance with paragraph (b) of this section. (i)Effective/applicability dates.This section applies to applications for an auto- matic extension of time to file the partner- ship returns listed in paragraph (a) of this section filed on or after July 1, 2008. (j) Expiration date. The applicability of this section expires on or before June 30, 2011. Par. 5. Section 1.6081–3 is amended by revising paragraphs (a)(1) and (4) and (e) to read as follows: §1.6081–3 Automatic extension of time for filing corporation income tax returns. (a) * * * (1) An application must be submitted on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner. ***** (4) The application must include a state- ment listing the name and address of each member of the affiliated group if the af- filiated group will file a consolidated re- turn. Upon the timely filing of Form 7004, the 6-month extension of time to file shall be considered as granted to the affiliated group for the filing of its consolidated re- 2008–33 I.R.B.333August 18, 2008 turn or for the filing of each member’s sep- arate return. ***** (e)Effective/applicability dates.This section applies to requests for extension of time to file corporation income tax returns filed after July 1, 2008. §1.6081–3T [Removed] Par. 6. Section 1.6081–3T is removed. Par. 7. Section 1.6081–4 is added to read as follows: §1.6081–4 Automatic extension of time for filing individual income tax return. (a)In general. An individual who is re- quired to file an individual income tax re- turn will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the individual files an application under this section in accordance with paragraph (b) of this section. In the case of an individ- ual described in §1.6081–5(a)(5) or (6), the automatic 6-month extension will run con- currently with the extension of time to file granted pursuant to §1.6081–5. (b)Requirements. To satisfy this para- graph (b), an individual must— (1) Submit a complete application on Form 4868,“Application for Automatic Extension of Time To File U.S. Individual Income Tax Return,”or in any other man- ner prescribed by the Commissioner; (2) File the application on or before the later of— (i) The date prescribed for filing the re- turn; or (ii) The expiration of any extension of time to file granted pursuant to §1.6081–5; (3) File the application with the Internal Revenue Service office designated in the application’s instructions; and (4) Show the full amount properly esti- mated as tax for the taxable year. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the individual a notice of termination at least 10 days prior to the termination date designated in such notice. The Commis- sioner must mail the notice of termination to the address shown on the Form 4868 or to the individual’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- uretofileanindividualincometaxre- turn or failure to pay the amount shown astaxonthereturn. Inparticular,see §301.6651–1(c)(3) of this chapter (relat- ing to a presumption of reasonable cause in certain circumstances involving an au- tomatic extension of time for filing an in- dividual income tax return). (f)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file an indi- vidual income tax return filed after July 1, 2008. §1.6081–4T [Removed] Par. 8. Section 1.6081–4T is removed. Par. 9. Section 1.6081–5 is amended by revising paragraphs (a), (b), and (f) to read as follows: §1.6081–5 Extensions of time in the case of certain partnerships, corporations, and U.S. citizens and residents. (a) An extension of time for filing re- turns of income and for paying any tax shown on the return is hereby granted to and including the fifteenth day of the sixth month following the close of the taxable year in the case of— (1) Partnerships which are required un- der section 6072(a) to file returns on the fifteenth day of the fourth month follow- ing the close of the taxable year of the part- nership, and which keep their records and books of account outside the United States andPuertoRico; (2) Domestic corporations which trans- act their business and keep their records and books of account outside the United States and Puerto Rico; (3) Foreign corporations which main- tain an office or place of business within the United States; (4) Domestic corporations whose prin- cipal income is from sources within the possessions of the United States; (5) United States citizens or residents whose tax homes and abodes, in a real and substantial sense, are outside the United States and Puerto Rico; and (6) United States citizens and residents in military or naval service on duty, includ- ing non-permanent or short term duty, out- side the United States and Puerto Rico. (b) In order to qualify for the extension under this section— (1) A statement must be attached to the return showing that the person for whom the return is made is a person described in paragraph (a) of this section; or (2) If a person described in paragraph (a) of this section requests additional time to file, the person must request the exten- sion on or before the fifteenth day of the sixth month following the close of the tax- able year and check the appropriate box on Form 4868,“Application for Automatic Extension of Time To File U.S. Individual Income Tax Return,”or Form 7004,“Ap- plication for Automatic Extension of Time To File Certain Business Income Tax, In- formation, and Other Returns,”whichever is applicable, or in any other manner pre- scribed by the Commissioner. ***** (f)Effective/applicability date.This section is applicable for returns of income due after July 1, 2008. §1.6081–5T [Removed] Par. 10. Section 1.6081–5T is removed. Par. 11. Section 1.6081–6T is revised to read as follows: §1.6081–6T Automatic extension of time to file estate or trust income tax return (temporary). (a)In general. (1) Except as provided in paragraph (g) of this section, an estate or trustrequiredtofileanincometaxreturn on Form 1041,“U.S. Income Tax Return for Estates and Trusts,”will be allowed an automatic 5-month extension of time to file the return after the date prescribed for filing the return if the estate or trust files an application under this section in accor- dance with paragraph (b) of this section. No additional extension will be allowed pursuant to §1.6081–1(b) beyond the auto- matic 5-month extension provided by this section. (2) An estate or trust required to file an income tax return on Form 1041–N, “U.S. Income Tax Return for Electing Alaska Native Settlement Trusts,”or Form 1041–QFT,“U.S. Income Tax Return for August 18, 20083342008–33 I.R.B. Qualified Funeral Trusts,”for any taxable year will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the estate or trust files an application under this section in accordance with paragraph (b) of this section. (b)Requirements. To satisfy this para- graph (b), an estate or trust must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Show the amount properly esti- mated as tax for the estate or trust for the taxable year. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Effect of extension on beneficiary. An automatic extension of time to file an estate or trust income tax return under this section will not extend the time for filing the income tax return of a beneficiary of theestateortrustorthetimeforthepay- ment of any tax due on the beneficiary’s income tax return. (e)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing totheestateortrustanoticeoftermina- tion at least 10 days prior to the termina- tion date designated in such notice. The Commissioner must mail the notice of ter- mination to the address shown on the Form 7004 or to the estate or trust’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (f)Penalties. See section 6651 for fail- ure to file an estate or trust income tax re- turn or failure to pay the amount shown as taxonthereturn. (g)Special rule for applications for ex- tensions of time to file returns due on or after July 1, 2008 and before January 1, 2009. An estate or trust required to file an income tax return on Form 1041, “U.S. In- come Tax Return for Estates and Trusts,” on or after July 1, 2008 and before Jan- uary 1, 2009, will be allowed an automatic 6-month extension of time to file the re- turn after the date prescribed for filing the return if the estate or trust files an applica- tion under this section in accordance with paragraph (b) of this section. (h)Effective/applicability dates.This section applies to applications for an au- tomatic extension of time to file an estate or trust income tax return filed on or after July 1, 2008. (i)Expiration date. The applicability of this section expires on or before June 30, 2011. Par. 12. Section 1.6081–7 is added to read as follows: §1.6081–7 Automatic extension of time to file Real Estate Mortgage Investment Conduit (REMIC) income tax return. (a)In general. A Real Estate Mortgage Investment Conduit (REMIC) required to file an income tax return on Form 1066, “U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return,” or Form 8831,“Excise Taxes on Excess Inclusions of REMIC Residual Interests,” for any taxable year will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the REMIC files an ap- plication under this section in accordance with paragraph (b) of this section. (b)Requirements. To satisfy this para- graph (b), a REMIC must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Show the full amount properly esti- mated as tax for the REMIC for the taxable year. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Effect of extension on residual or regular interest holders. An automatic ex- tension of time to file a REMIC income tax return under this section will not extend thetimeforfilingtheincometaxreturnof a residual or regular interest holder of the REMIC or the time for the payment of any tax due on the residual or regular interest holder’s income tax return. An automatic extension will also not extend the time for payment of any excise tax on excess inclu- sions of REMIC residual interests. (e)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing totheREMICanoticeofterminationat least 10 days prior to the termination date designated in such notice. The Commis- sioner must mail the notice of termination to the address shown on the Form 7004 or to the REMIC’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (f)Penalties. See sections 6698 and 6651 for failure to file a REMIC income tax return or failure to pay an amount shown as tax on the return. (g)Effective/applicability dates.This section applies to applications for an auto- matic extension of time to file REMIC in- come and excise tax returns listed in para- graph (a) of this section filed after July 1, 2008. §1.6081–7T [Removed] Par. 13. Section 1.6081–7T is removed. Par. 14. Section 1.6081–10 is added to read as follows: §1.6081–10 Automatic extension of time to file withholding tax return for U.S. source income of foreign persons. (a)In general. A withholding agent or intermediary required to file a return on Form 1042,“Annual Withholding Tax Return for U.S. Source Income of Foreign Persons,”for any taxable year will be al- lowed an automatic 6-month extension of time to file the return after the date pre- scribed for filing the return if the withhold- ing agent or intermediary files an applica- tion under this section in accordance with paragraph (b) of this section. (b)Requirements. To satisfy this para- graph (b), a withholding agent or interme- diary must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business 2008–33 I.R.B.335August 18, 2008 Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before the date prescribed for payment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the withholding agent or intermediary a notice of termination at least 10 days prior to the termination date designated in such notice. The Commissioner must mail the notice of termination to the address shown on the Form 7004 or to the with- holding agent or intermediary’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- uretofileareturnorfailuretopayan amount shown as tax on the return. (f)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file the withholding tax return for U.S. source in- come of foreign persons return filed after July 1, 2008. §1.6081–10T [Removed] Par. 15. Section 1.6081–10T is re- moved. Par. 16. Section 1.6081–11 is added to read as follows: §1.6081–11 Automatic extension of time for filing certain employee plan returns. (a)In general. An administrator or sponsor of an employee benefit plan re- quired to file a return under the provisions of chapter 61 or the regulations under that chapter on Form 5500 (series),“Annual Return/ReportofEmployeeBenefitPlan,” will be allowed an automatic extension of time to file the return until the 15th day of the third month following the date pre- scribed for filing the return if the adminis- trator or sponsor files an application under this section in accordance with paragraph (b)ofthissection. (b)Requirements. To satisfy this para- graph (b), an administrator or sponsor must— (1) Submit a complete application on Form 5558,“Application for Extension of Time To File Certain Employee Plan Re- turns,”or in any other manner as may be prescribed by the Commissioner; and (2) File the application with the Internal Revenue Service office designated in the application’s instructions on or before the date prescribed for filing the information return. (c)Termination of automatic extension. The Commissioner may terminate an auto- matic extension at any time by mailing to the administrator or sponsor a notice of ter- mination at least 10 days prior to the termi- nation date designated in such notice. The Commissioner must mail the notice of ter- mination to the address shown on the Form 5558 or to the administrator or sponsor’s last known address. For further guidance regarding the definition of last known ad- dress, see §301.6212–2 of this chapter. (d)Penalties. See sections 6652, 6692, and the Employee Retirement Income Se- curity Act of 1974 for penalties for failure to file a timely and complete Form 5500. (e)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file Forms 5500 for plan years ending after July 1, 2008. §1.6081–11T [Removed] Par. 17. Section 1.6081–11T is re- moved. PART 25—GIFT TAX; GIFTS MADE AFTER DECEMBER 31, 1954 Par. 18. The authority citation for part 25 is amended by removing the entry for §25.6081–1T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 25.6081–1 also issued under the authority of 26 U.S.C. 6081(a). Par. 19. Section 25.6081–1 is added to read as follows: §25.6081–1 Automatic extension of time for filing gift tax returns. (a)In general.Under section 6075(b)(2), an automatic six-month exten- sion of time granted to a donor to file the donor’s return of income under §1.6081–4 of this chapter shall be deemed also to be a six-month extension of time granted to fileareturnonForm709,“United States Gift (and Generation-Skipping Transfer) Tax Return.”If a donor does not obtain an extension of time to file the donor’s return of income under §1.6081–4 of this chapter, the donor will be allowed an au- tomatic 6-month extension of time to file Form 709 after the date prescribed for fil- ing if the donor files an application under this section in accordance with paragraph (b) of this section. In the case of an in- dividual described in §1.6081–5(a)(5) or (6) of this chapter, the automatic 6-month extension of time to file Form 709 will run concurrently with the extension of time to file granted pursuant to §1.6081–5 of this chapter. (b)Requirements. To satisfy this para- graph (b), a donor must— (1) Submit a complete application on Form 8892,“Application for Auto- matic Extension of Time To File Form 709 and/or Payment of Gift/Generation-Skip- ping Transfer Tax,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the later of— (i) The date prescribed for filing the re- turn; or (ii) The expiration of any extension of time to file granted pursuant to §1.6081–5 of this chapter; and (3) File the application with the Internal Revenue Service office designated in the application’s instructions. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an ex- tension at any time by mailing to the donor a notice of termination at least 10 days prior to the termination date designated in such notice. The Commissioner must mail the notice of termination to the address shown on the Form 8892, or to the donor’s last known address. For further guidance August 18, 20083362008–33 I.R.B. regarding the definition of last known ad- dress, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- uretofileagifttaxreturnorfailuretopay the amount shown as tax on the return. (f)Effective/applicability dates.This section is applicable for applications for an extension of time to file Form 709 filed after July 1, 2008. §25.6081–1T [Removed] Par. 20. Section 25.6081–1T is re- moved. PART 26—GENERATION-SKIPPING TRANSFER TAX REGULATIONS UNDER THE TAX REFORM ACT OF 1986 Par. 21. The authority citation for part 26isamendedbyremovingtheentryfor §26.6081–1T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 and 26U.S.C.2663*** Section 26.6081–1 also issued under the authority of 26 U.S.C. 6081(a). *** Par. 22. Section 26.6081–1 is added to read as follows: §26.6081–1 Automatic extension of time for filing generation-skipping transfer tax returns. (a)In general. A skip person dis- tributee required to file a return on Form 706–GS(D),“Generation-Skipping Trans- fer Tax Return For Distributions,”or a trusteerequiredtofileareturnonForm 706–GS(T), “Generation-Skipping Trans- fer Tax Return For Terminations,” will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing if the skip person distributee or trustee files an application under this section in accordance with para- graph (b) of this section. (b)Requirements. To satisfy this para- graph (b), a skip person distributee or trustee must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before thedateprescribedforpayment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the skip person distributee or trustee a notice of termination at least 10 days prior to the termination date designated in such notice. The Commissioner must mail the notice of termination to the address shown on the Form 7004 or to the skip person distributee or trustee’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- ure to file a generation-skipping transfer tax return or failure to pay the amount shown as tax on the return. (f)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file a gener- ation-skipping transfer tax return filed af- ter July 1, 2008. §26.6081–1T [Removed] Par. 23. Section 26.6081–1T is re- moved. PART 53—FOUNDATION AND SIMILAR EXCISE TAXES Par. 24. The authority citation for part 53 is amended by removing the entry for §53.6081–1T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 53.6081–1 also issued under 26 U.S.C. 6081(a). * * * Par. 25. Section 53.6081–1 is added to read as follows: §53.6081–1 Automatic extension of time for filing the return to report taxes due under section 4951 for self-dealing with a nuclear decommissioning fund. (a)In general. A “disqualified per- son” for purposes of section 4951(e)(4) who engaged in self-dealing with a Nu- clear Decommissioning Fund, and must report tax due under section 4951 on Form 1120–ND,“Return for Nuclear Decom- missioning Funds and Certain Related Persons,”will be allowed an automatic 6-month extension of time to file the re- turn after the date prescribed for filing the return if the disqualified person files an application under this section in accor- dance with paragraph (b) of this section. For guidance on requesting an extension of time to file Form 1120–ND for pur- poses of reporting contributions received, income earned, administrative expenses of operating the fund, and the tax on mod- ified gross income, see §1.6081–3 of this chapter. (b)Requirements. To satisfy this para- graph (b), a disqualified person must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before the date prescribed for payment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the disqualified person a notice of ter- mination at least 10 days prior to the ter- mination date designated in such notice. The Commissioner must mail the notice of termination to the address shown on the Form 7004 or to the disqualified person’s last known address. For further guidance regarding the definition of last known ad- dress, see §301.6212–2 of this chapter. 2008–33 I.R.B.337August 18, 2008 (e)Penalties. See section 6651 for fail- ure to file or failure to pay the amount shown as tax on the return. (f)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file a re- turn to report taxes due under section 4951 for self-dealing with a Nuclear Decommis- sioning Fund filed after July 1, 2008. §53.6081–1T [Removed] Par. 26. Section 53.6081–1T is re- moved. PART 55—EXCISE TAX ON REAL ESTATE INVESTMENT TRUSTS AND REGULATED INVESTMENT COMPANIES Par. 27. The authority citation is amended by removing the entry for §55.6081–1T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 6001, 6011, 6071, 6091,and7805*** Section 55.6081–1 also issued under 26 U.S.C. 6081(a). * * * Par. 28. Section 55.6081–1 is added to read as follows: §55.6081–1 Automatic extension of time for filing a return due under Chapter 44. (a)In general. A Real Estate Invest- ment Trust (REIT) required to file a return on Form 8612,“Return of Excise Tax on Undistributed Income of Real Estate In- vestment Trusts,”or a Regulated Invest- mentCompany(RIC)requiredtofileare- turn on Form 8613,“Return of Excise Tax on Undistributed Income of Regulated In- vestment Companies,”will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the REIT or RIC files an application under this section in accor- dance with paragraph (b) of this section. (b)Requirements. To satisfy this para- graph (b), a REIT or RIC must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before thedateprescribedforpayment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the REIT or RIC a notice of termina- tion at least 10 days prior to the termina- tion date designated in such notice. The Commissioner must mail the notice of ter- mination to the address shown on the Form 7004 or to the REIT or RIC’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- ure to file or failure to pay the amount shown as tax on the return. (f)Effective/applicable dates. This sec- tion is applicable for applications for an automatic extension of time to file a re- turn due under chapter 44, filed after July 1, 2008. §55.6081–1T [Removed] Par. 29. Section 55.6081–1T is re- moved. PART 156—EXCISE TAX ON GREENMAIL Par. 30. The authority citation is amended by removing the entry for §156.6081–1T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 6001, 6011, 6061, 6071, 6091, 6161, and 7805 * * * Section 156.6081–1 also issued under 26 U.S.C. 6081(a). * * * Par. 31. Section 156.6081–1 is added to read as follows: §156.6081–1 Automatic extension of time for filing a return due under chapter 54. (a)In general. A taxpayer required to file a return on Form 8725,“Excise Tax on Greenmail,”will be allowed an automatic 6-month extension of time to file the re- turn after the date prescribed for filing the return if the taxpayer files an application under this section in accordance with para- graph (b) of this section. (b)Requirements . To satisfy this para- graph (b), a taxpayer must— (1) Submit a complete application on Form 7004, “Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,” or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before thedateprescribedforpayment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the taxpayer a notice of termination at least 10 days prior to the termination date designated in such notice. The Commis- sioner must mail the notice of termination to the address shown on the Form 7004 or to the taxpayer’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- ure to file or failure to pay the amount shown as tax on the return. (f)Effective/applicable dates. This sec- tion is applicable for applications for an automatic extension of time to file a re- turn due under chapter 54, filed after July 1, 2008. §156.6081–1T [Removed] Par. 32. Section 156.6081–1T is re- moved. PART 157— EXCISE TAX ON STRUCTURED SETTLEMENT FACTORING TRANSACTIONS Par. 33. The authority citation is amended by removing the entry for §157.6081–1T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * August 18, 20083382008–33 I.R.B. Section 157.6081–1 also issued under 26 U.S.C. 6081(a). * * * Par. 34. Section 157.6081–1 is added to read as follows: §157.6081–1 Automatic extension of time for filing a return due under chapter 55. (a)In general. A taxpayer required to file a return on Form 8876,“Excise Tax on Structured Settlement Factoring Transactions,”will be allowed an auto- matic 6-month extension of time to file the return after the date prescribed for filing the return if the taxpayer files an applica- tion under this section in accordance with paragraph (b) of this section. (b)Requirements. To satisfy this para- graph (b), the taxpayer must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before the date prescribed for payment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the taxpayer a notice of termination at least 10 days prior to the termination date designated in such notice. The Commis- sioner must mail the notice of termination to the address shown on the Form 7004 or to the taxpayer’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- ure to file or failure to pay the amount shown as tax on the return. (f)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file a return due under chapter 55, filed after July 1, 2008. §157.6081–1T [Removed] Par. 35. Section 157.6081–1T is re- moved. PART 301—PROCEDURE AND ADMINISTRATION Par. 36. The authority citation is amended by removing the entry for §301.6081–2T and adding an entry in nu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 301.6081–2 also issued under 26 U.S.C. 6081(a). * * * Par. 37. Section 301.6081–2 is added to read as follows: §301.6081–2 Automatic extension of time for filing an information return with respect to certain foreign trusts. (a)In general.Atrustrequiredtofile a return on Form 3520–A,“Annual In- formation Return of Foreign Trust With a U.S. Owner,”will be allowed an automatic 6-month extension of time to file the re- turn after the date prescribed for filing the return if the trust files an application under this section in accordance with paragraph (b)ofthissection. (b)Requirements. To satisfy this para- graph (b), a trust must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; and (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions. (c)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing to the trust a notice of termination at least 10 days prior to the termination date des- ignated in such notice. The Commissioner must mail the notice of termination to the address shown on the Form 7004 or to the trust’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (d)Penalties. See section 6677 for fail- ure to file information returns with respect to certain foreign trusts. (e)Effective/applicability dates.This section is applicable for applications for an automatic extension of time to file an information return with respect to certain foreign trusts listed in paragraph (a) of this section filed after July 1, 2008. §301.6081–2T [Removed] Par. 38. Section 301.6081–2T is re- moved. LindaE.Stiff, Deputy Commissioner for Services and Enforcement. Approved June 24, 2008. Eric Solomon, Assistant Secretary of theTreasury(TaxPolicy). (Filed by the Office of the Federal Register on June 30, 2008, 8:45 a.m., and published in the issue of the Federal Register for July 1, 2008, 73 F.R. 37362) 2008–33 I.R.B.339August 18, 2008 Part III. Administrative, Procedural, and Miscellaneous Note.This revenue procedure will be reproduced as the next revision of IRS Publication 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S. 26 CFR 601.602: Forms and instructions. (Also Part 1, Sections 220, 408, 408A, 529, 530(h), 1441, 6041, 6041A, 6042,6043, 6044, 6045, 6047, 6049, 6050A, 6050B, 6050D, 6050E, 6050H, 6050J, 6050N, 6050P, 6050Q, 6050R, 6050S, 1.408–5, 1.408–7, 1.408A–7, 1.1441–1 through 1.1441–5, 1.6041–1, 7.6041–1, 1.6042–2, 1.6042–4, 1.6044–2, 1.6044–5,1.6045–1, 5f.6045–1, 1.6045–2, 1.6045–4, 1.6047–1, 1.6049–4, 1.6049–6, 1.6049–7, 1.6050A–1, 1.6050B–1, 1.6050D–1, 1.6050E–1, 1.6050H–1, 1.6050H–2, 1.6050J–1T, 1.6050N–1, 1.6050P–1.) Rev. Proc. 2008–36 TABLE OF CONTENTS Part 1 General Information SECTION 1.1 — OVERVIEW OF REVENUE PROCEDURE 2008-36...................................................... 341 SECTION 1.2 — DEFINITIONS..................................................................................... 343 SECTION 1.3 — GENERAL REQUIREMENTS FOR ACCEPTABLE SUBSTITUTE FORMS 1096, 1098, 1099, 5498, W-2G, AND 1042-S ........................................................................... 344 Part 2 Specifications for SubstituteForms 1096 and Copies A of Forms 1098, 1099, and 5498 (All Filed with the IRS) SECTION 2.1 — SPECIFICATIONS.................................................................................. 346 SECTION 2.2 — INSTRUCTIONS FOR PREPARINGPAPER FORMS THAT WILL BE FILED WITH THE IRS .................................................................................................. 349 Part 3 Specifications for Substitute Form W-2G (Filed with the IRS) SECTION 3.1 — GENERAL......................................................................................... 351 SECTION 3.2 — SPECIFICATIONS FOR COPY A OF FORM W-2G..................................................... 351 Part 4 Substitute Statements to Form Recipients and Form Recipient Copies SECTION 4.1 — SPECIFICATIONS.................................................................................. 352 SECTION 4.2 — COMPOSITE STATEMENTS........................................................................ 354 SECTION 4.3 — REQUIRED LEGENDS.............................................................................. 355 SECTION 4.4 — MISCELLANEOUS INSTRUCTIONS FOR COPIES B, C, D, 1, AND 2..................................... 357 SECTION 4.5 — ELECTRONIC DELIVERY OF FORM 1099 AND FORM 5498 PAYEE STATEMENTS....................... 358 Part 5 Additional Instructions for Substitute F orms 1098, 1099, 5498, W-2G, and 1042-S SECTION 5.1 — PAPER SUBSTITUTES FOR FORM 1042-S............................................................ 359 SECTION 5.2 — OMB REQUIREMENTS FOR ALL FORMS IN THIS REVENUE PROCEDURE............................ 361 SECTION 5.3 — REPRODUCIBLE COPIES OF FORMS............................................................... 362 SECTION 5.4 — EFFECT ON OTHER REVENUE PROCEDURES....................................................... 362 Part 6 Exhibits SECTION 6.1 — EXHIBITS OF FORMS IN THE REVENUE PROCEDURE............................................... 362 August 18, 20083402008–33 I.R.B. Part 1 General Information Section 1.1 — Overview of Revenue Procedure 2008-36 1.1.1 PurposeThe purpose of this revenue procedure is to set forth the 2008 requirements for: •Using official Internal Revenue Service (IRS) forms to file information returns with the IRS, •Preparing acceptable substitutes of the official IRS forms to file information returns with the IRS, and •Using official or acceptable substitute forms to furnish information to recipients. 1.1.2 Which Forms Are Covered?This revenue procedure contains specifications for these information returns: FormTitle 1096Annual Summary and Transmittal of U.S. Information Returns 1098Mortgage Interest Statement 1098-CContributions of Motor Vehicles, Boats, and Airplanes 1098-EStudent Loan Interest Statement 1098-TTuition Statement 1099-AAcquisition or Abandonment of Secured Property 1099-BProceeds From Broker and Barter Exchange Transactions 1099-CCancellation of Debt 1099-CAPChanges in Corporate Control and Capital Structure 1099-DIVDividends and Distributions 1099-GCertain Government Payments 1099-HHealth Coverage Tax Credit (HCTC) Advance Payments 1099-INTInterest Income 1099-LTCLong-Term Care and Accelerated Death Benefits 1099-MISCMiscellaneous Income 1099-OIDOriginal Issue Discount 1099-PATRTaxable Distributions Received From Cooperatives 1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) 1099-RDistributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. 1099-SProceeds From Real Estate Transactions 1099-SADistributions From an HSA, Archer MSA, or Medicare Advantage MSA 2008–33 I.R.B.341August 18, 2008 FormTitle 5498 IRA Contribution Information 5498-ESA Coverdell ESA Contribution Information 5498-SA HSA, Archer MSA, or Medicare Advantage MSA Information W-2GCertain Gambling Winnings 1042-SForeign Person’s U.S. Source Income Subject to Withholding 1.1.3 ScopeFor purposes of this revenue procedure, a substitute form or statement is one that is not printed by the IRS. For a substitute form orstatement to be acceptable to the IRS, it must conform to the official form orthe specifications outlined in this revenue procedure. Do not submit any substitute forms or statements listed above to the IRS for approval. Privately printed forms may not state, “This is an IRS approved form.” Filers making payments to certain recipientsduring a calendar year are required by the In- ternal Revenue Code (the Code) to file information returns with the IRS for these payments. These filers must also provide this information to their recipients. In some cases, this also applies to payments received. SeePart 4for specifications that apply to recipient statements (generally Copy B). In general, section 6011 of the Code contains requirements for filers of information returns. A filer must file information returns electronically or on paper. A filer who is required to file 250 or more information returns of any one type during a calendar year must file those returns electronically. Although not required, small volume filers (fewer than 250 returns during a calendar year) may file the forms electronically. See the legal requirements for filing information returns (and providing a copy to a payee) in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G and the 2008 Instructions for Form 1042-S. In addition, see the most recent revision of Publication 1220,Specifications for Filing Forms 1098, 1099, 5498, and W-2G Electronically. 1.1.4 For More InformationThe IRS prints and provides the forms on which various payments must be reported. Alter- natively, filers may prepare substitute copies of these IRS forms and use such forms to report payments to the IRS. •For copies of the official forms and instructions, call our toll-free number at 1-800-TAX- FORM (1-800-829-3676). •The IRS operates a central call site to answerquestions related to information returns, penalties, and backup withholding. The hours of operation are Monday through Friday from 8:30 a.m. to 4:30 p.m., Eastern time. For your convenience, you may call the toll-free number, 1-866-455-7438. You may still use the original telephone number, 304-263-8700 (not toll-free). For TTY/TDD equipment, call 304-267-3367 (not toll-free). •For other tax information related to business returns or accounts, call 1-800-829-4933. If you have access to TTY/TDD equipment, call 1-800-829-4059 to ask tax account questions or to order forms and publications. 1.1.5 What’s NewThe following changes have been madeto this year’s Revenue Procedure: •New email address.The Substitute Forms Unit email address has changed to S ubstituteforms@irs.govinstead of*taxforms@irs.gov. •Address change.The room number in the address of the Substitute Forms Unit has changed to Room 6526. •Sections reversed.OldSections 1.2 and 1.3of Part 1 have been reversed to show a more logical sequence. August 18, 20083422008–33 I.R.B. •Logos, slogans, and advertising.The IRS received questions concerning whether substitute payee statements containing logos, slogans,or advertising were valid payee statements. The IRS originally anticipated responding to these questions by revising the regulations. However, it has been determined that it is not necessary to amend the regulations. Instead, guidance is being provided in this revenue procedure. See newSection 1.3.2of Part 1. •Where to file.AllinformationreturnsfiledonpaperwillbefiledwithonlytwoInternal Revenue Service Centers: Austin, TX, and Kansas City, MO. Do not file Form 1098-C at the Internal Revenue Service Center at Ogden, UT, after December 31, 2007. See Part D, page 4, of the General Instructions for Forms 1099, 1098, 5498, and W-2G and Form 1096, Annual Summary and Transmittal of U.S. Information Returns. •Magnetic media filing no longer acceptable.All references to magnetic media have been removed from Publication 1179 and from all forms to which the publication refer. Enter- prise Computing Center–Martinsburg (ECC-MTB) will no longer accept tape cartridges for returns filed after December 1, 2008. After that date, electronic filing will be the only acceptable method for filing returns with ECC-MTB. See Part F, page 5, of the General Instructions for Forms 1099, 1098, 5498, and W-2G. •OCR Specifications.Additional OCR specifications were added toSection 2.1.5of Part 2. •Form 1099-CAP.We have removed the box 6 checkbox from Form 1099-CAP. Under Reg- ulations section 1.367(a)-3, nonrecognition of losses is required for all reportable transac- tions from corporate inversions, making the checkbox unnecessary. •Form 1099-DIV.Box 7 may be blank as RICs no longer have to report this information to recipients. •Form 1099-R.These changes were made to the Guide to Distribution Codes. 1) For Distri- bution Code 1, reference to the qualified reservist distribution under section 72(t)(2)(G) has been deleted due to expiration of the provision. 2) An exception was added to Distribution Code 2 for distributions that are permissible withdrawals under an eligible automatic con- tribution arrangement under section 414(w). 3) New Distribution Code H, Direct rollover of a designated Roth account distribution to aRoth IRA, has been added. 4) Distribution Codes B and D are a valid combination for 2008. •Form 1042-S.The boxes on Form 1042-S have been changed and reconfigured for 2008. The major changes are to 1) Boxes 7 through 9. These boxes are used to show the amount withheld, the amount withheld by other withholding agents, and the total amount of tax withheld. 2) Box 15. This box is used to show the recipient’s foreign tax identifying num- ber, if any. 3) Box 22. This box is used to show the recipient’s account number (optional). •Editorial changes.We made editorial changes. Redundancies were eliminated as much as possible. Section 1.2 — Definitions 1.2.1 Form RecipientForm recipient means the person to whom you are required by law to furnish a copy of the official form or information statement. The form recipient may be referred to by different names on various Forms 1099 and related forms (“payer,” “borrower,” “student,” “debtor,” “policyholder,” “insured,” “transferor,” “recipient,” “participant,” “donor,” or, in the case of Form W-2G, the “winner”). SeeSection 1.3.4. 1.2.2 FilerFiler means the person or organization required by law to file a form listed inSection 1.1.2 with the IRS. As outlined earlier, a filer may be a payer, creditor, recipient of mortgage or stu- dent loan interest payments, educational institution, broker, barter exchange, person reporting real estate transactions, trustee or issuer of any individual retirement arrangement or medical savings account, lender who acquires an interest in secured property or who has reason to know that the property has been abandoned, or certain donees of motor vehicles, boats, and airplanes. 2008–33 I.R.B.343August 18, 2008 1.2.3 Substitute FormSubstitute form means a paper substitute of Copy A of an official form listed inSection 1.1.2that totally conforms to the provisions in this revenue procedure. 1.2.4 Substitute Form Recipient Statement Substitute form recipient statement means a paper statement of the information reported on a form listed inSection 1.1.2. This statement must be furnished to a person (form recipient), as defined under the applicable provisions of the Code and the applicable regulations. 1.2.5 Composite Substitute Statement Composite substitute statement means one in which two or more required statements (for example, Forms 1099-INT and 1099-DIV) are furnished to the recipient on one document. However, each statement must be designated separately and must contain all the requisite Form 1099 information except as provided underSection 4.2. A composite statement may not be filed with the IRS. Section 1.3 — General Requirements for Acceptable Substitute Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S 1.3.1 IntroductionPaper substitutes for Form 1096 and Copy A of Forms 1098, 1099, 5498, W-2G, and 1042-S that totally conform to the specifications listed in this revenue procedure may be privately printed and filed as returns with the IRS. The reference to the Department of the Treasury — Internal Revenue Service should be included on all such forms. If you are uncertain of any specification and want it clarified, you may submit a letter cit- ing the specification, stating your understanding and interpretation of the specification, and enclosing an example of the form (if appropriate) to: Internal Revenue Service Attn: Substitute Forms Program SE:W:CAR:MP:T:T:SP 1111 Constitution Ave., NW Room 6526 Washington DC 20224 Note.Allow at least 30 days for the IRS to respond. You may also contact the Substitute Forms Program via e-mail atS ubstituteforms@i rs.gov. Please enter “Substitute Forms” on the Subject Line. Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S are subject to annual review and possi- ble change. Therefore, filers are cautioned against overstocking supplies of privately printed substitutes. The specificationscontained in this revenue procedure apply to 2008 forms only. 1.3.2 Logos, Slogans, and Advertisements The IRS received questions concerning whether substitute payee statements containing lo- gos, slogans, or advertising were valid payee statements. The IRS originally anticipated re- sponding to these questions by revising the regulations. However, it has been determined that it is not necessary to amend the regulations. Instead, guidance is being provided in this revenue procedure. In Rev. Proc. 2007-50, 2007-31 I.R.B. 244 (reprinted as Publication 1179, revised 7-2007), the IRS solicited comments on the inclusion of logos, slogans, or advertising on substitute payee statements. The IRS did not receive any comments in response to these solicitations. Some Forms 1098, 1099, 5498, W-2G, and 1042-S that include logos, slogans, and ad- vertisements (including advertisements for tax preparation software) may be confused with August 18, 20083442008–33 I.R.B. questionable forms. A payee may not recognize the importance of the payee statement for tax reporting purposes due to the use of logos, slogans, and advertisements.Thus, with the ex- ception of the electronic tax logo (i.e.,the IRSe-filelogo), the IRS has determined that slogans, advertising, and other logos will not be allowed on Forms 1096, 1098, 1099, 5498, W-2G, 1042-S, or any payee statements reporting amounts paid during the 2010 calendar year, and thereafter.The IRSe-filelogo on the IRS official payee copies may be included, but it is not required, on any of the substitute form copies. As indicated inSections 1.3.1 and 5.1.3,of this revenue procedure, Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S are subject to annual review and possible change. The prohibition against including slogans, advertising, and other logos on information returns and payee state- ments reporting amounts paid during the2010calendar year and thereafter is being announced at this time to provide advance notice. This revenue procedure will be revised to state other requirements of the IRS regarding the preparation and use of substitute forms for Forms 1096, 1098, 1099, 5498, W-2G, and 1042-S for amounts paid during the 2010 calendar year, at a fu- ture date. If you have comments about the prohibition against includingslogans, advertising, and other logos on information returns and payee statements, send your comments to: Inter- nal Revenue Service, Attn: Substitute Forms Program, SE:W:CAR:MP:T:T:SP, IR 6526, 1111 Constitution Ave., NW, Washington, DC 20224. 1.3.3 Copy A SpecificationsProposed substitutes of Copy A must be an exact replica of the official IRS form with respect to layout and content. Proposed substitutes forCopy A that do not conform to the specifications in this revenue procedure are not acceptable. Further, if you file such forms with the IRS, you may be subject to a penalty for failure to file a correct information return under section 6721 of the Code. Generally, the penalty is $50 foreach return where such failure occurs (up to $250,000). No IRS office is authorized to allow deviations from this revenue procedure. Caution:Overuse of proportional fonts may cause you to be subject to penalties a nd delays in processing. 1.3.4 Copy B and Copy C Specifications Copy B and Copy C of the following forms must contain the information inPart 4to be considered a “statement” or “official form” under the applicable provisions of the Code. The format of this information is at the discretion of the filer with the exception of the location of the tax year, form number, form name, and the information for composite Form 1099 statements as outlined underSection 4.2. Copy B, of the forms below, are for the following recipients. FormRecipient 1098For Payer 1098-CFor Donor 1098-E; 1099-AFor Borrower 1098-TFor Student 1099-CFor Debtor 1099-CAPFor Shareholder 1099-LTCFor Policyholder 1099-R; W-2GIndicates that these forms may require Copy B to be attached to the federal income tax return. 1099-SFor Transferor All other Forms 1099; 1042-S For Recipient 5498; 5498-SA For Participant 5498-ESA For Beneficiary 2008–33 I.R.B.345August 18, 2008 Copy C of the following forms are: FormRecipient 1098-CFor Donor’s Records 1099-CAPFor Corporation 1099-LTCFor Insured 1099-RFor Recipient’s Records All other Forms 1099SeeSection 4.4.2 5498-ESA For Trustee W-2GFor Winner’s Records Note.On Copy C, Form 1099-LTC, you may reverse the locations of the policyholder’s and the insured’s name, street address, city, state, and ZIP code for easier mailing. Part 2 Specifications for Substitute Forms 1096 and Copies A of Forms 1098, 1099, and 5498 (All Filed with the IRS) Section 2.1 — Specifications 2.1.1 General RequirementsForm identifying numbers (for example, 9191 for Form 1099-DIV) must be printed in non- reflective black carbon-basedink in print positions 15 through 19 using an OCR A font. The check boxes to the right of the form identifying numbers must be 10-point boxes. The “VOID” checkbox is in print position 25. The “CORRECTED” check box is in position 33. Measure- ments are from the left edge of the paper,not including the perforated strip. SeeExhibits E and N. The substitute form must be an exact replica of the official IRS form with respect to layout and content. To determine the correct form measurements, seeExhibits A through Zat the end of this publication. Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply. Use of chemical transfer paper for Copy A is acceptable. The Government Printing Office (GPO) symbol must be deleted. 2.1.2 Color and Paper QualityColor and paper quality for Copy A (cut sheets and continuous pinfeed forms) as specified by JCP Code 0–25, dated November 29, 1978, must be white 100% bleached chemical wood, optical character recognition (OCR) bond produced in accordancewith the following specifi- cations. Note.Reclaimed fiber in any percentage is permitted provided the requirements of this standard are met. • Acidity:Phvalue,average,notlessthan............................. 4.5 • BasisWeight:17x22-500cutsheets ............................... 18-20 • Metric equivalent–g/m 2 ........................................... 75 A tolerance of ±5 pct. is allowed. August 18, 20083462008–33 I.R.B. • Stiffness: Average, each direction, not less than-milligrams............ 50 • Tearing strength: Average, eachdirection, not less than-grams.........40 • Opacity:Average,notlessthan-percent .............................82 • Thickness:Average-inch .......................................... 0.0038 • Metricequivalent-mm.............................................0.097 A tolerance of +0.0005 inch (0.0127 mm) is allowed. Paper cannot vary more than 0.0004 inch (0.0102 mm) from one edge to the other. • Porosity:Average,notlessthan-seconds ............................10 • Finish (smoothness): Average, each side-seconds..................... 20-55 • Forinformationonly,theSheffieldequivalent-units................... 170-100 • Dirt: Average, each side, not to exceed-parts per million...............8 2.1.3 Chemical Transfer PaperChemical transfer paper is permitted for Copy A only if the following standards are met: •Only chemically backed paper is acceptable for Copy A. Front and back chemically treated paper cannot be processed properly by machine. •Carbon-coated forms are not permitted. •Chemically transferred images must be black. All copies must be clearly legible. Fading must be minimized to assure legibility. 2.1.4 PrintingAll print on Copy A of Forms 1098, 1099, 5498, and the print on Form 1096 above the statement, “Return this entire page to the Internal Revenue Service. Photocopies are not ac- ceptable.” must be in Flint J-6983 red OCR dropout ink or an exact match. However, the four-digit form identifying number must be in nonreflective carbon-based black ink in OCR A font. The shaded areas of any substitute form should generally correspond to the format of the official form. The printing for the Form 1096 statement and the following text may be in any shade or tone of black ink. Black ink should only appear on the lower part of the reverse side of Form 1096, where it will not bleed through and interfere with scanning. Note.The instructions on the front and back of Form 1096, which include filing addresses, must be printed. Separation between fields must be 0.1 inch. Except for Form 1099-R and 1099-MISC, the numbered captions are printed as solid with no shaded background. Other printing requirements are discussed below. 2.1.5 OCR SpecificationsThe contractor must initiate or have a qualitycontrol program to assure OCR ink density. Readings will be made when printed on approved 20 lb. white OCR bond with a reflectance of not less than 80%. Black ink must not have a reflectance greater than 15%. These readings are based on requirements of the “Scan-Optics Series 9000” Optical Scanner using Flint J-6983 red OCR dropout ink or an exact match. The following testers and ranges are acceptable: 2008–33 I.R.B.347August 18, 2008 Important information:The forms produced under these specifications must be guaran- teed to function properly when processed through High Speed Scan-Optics 9000mm scanners. Forms require precision spacing, printing, and trimming. Density readings on the solid J-6983 (red) must be between the ranges of 0.95 to 0.90. The optimal scanning range is 0.93. Density readings on the solid black must be between the ranges of 112 to 108. The optimal scanning range is 110. Note.The readings were taken using an Ex-Rite 500 series densitometer, in Status T with Obsolute or – paper setting under an Illuminate 5000 Calvin Watt Light. The printing con- tractor must maintain print contrast specification of ink and densitometer reflectivity reading throughout entire production run. •MacBeth PCM-II. The tested Print Contrast Signal (PCS) values when using the MacBeth PCM-II tester on the “C” scale must range from .01 minimum to .06 maximum. •Kidder 082A. The tested PCS values when using the Kidder 082A tester on the Infra Red (IR) scale must range from .12 minimum to .21 maximum. White calibration disc must be 100%. Sensitivity must be set at one (1). •Alternative testers. Alternative testers must be approved by the government so that tested PCS values can be established. You may obtain approval by writing to the following ad- dress: Commissioner of Int ernal Revenue Attn: SE:W:CAR:MP: P:B:T Business Publishin g–TaxProducts 1111 Constitution A ve., NW Washington DC 20224 2.1.6 Typography Type must be substantially identical in size and shape to the official form. All rules are either 1 /2-point or 3 /4-point. Rules must be identical to those on the official IRS form. Note.The form identifying number must be nonreflective carbon-based black ink in OCR A font. 2.1.7 DimensionsGenerally, three Forms 1098, 1099, or 5498 (Copy A) are contained on a single page, 8 inches wide (without any snap-stubs and/or pinfeed holes) by 11 inches deep. Exceptions.Forms 1099-B, 1099-DIV, 1099-MISC, 1099-R, and 1042-S contain two doc- uments per page. Form 1098-C is a single page document. There is a .33 inch top margin from the top of the corrected box, and a .25 inch right margin. There is a 1 /32(0.0313) inch tolerance for the right margin. If the right and top margins are properly aligned, the left margin for all forms will be correct. All margins must be free of print. SeeExhibits A through Zin this publication for the correct form measurements. These measurements are constant for certainForms 1098, 1099, and 5498. These measure- ments are shown only once in this publication, on Form 1098(Exhibit B). Exceptions to these measurements are shown onthe rest of the exhibits. The depth of the individual trimsize of each form on a page must be 3 2 /3inches, the sam e depth as the official form. Exceptions.The depth of Forms 1099-B, 1099-DIV, 1099-MISC, 1099-R, and 1042-S is 5 1 /2inches. 2.1.8 PerforationCopy A (three per page; two per page for Forms 1099-B, 1099-DIV, 1099-MISC, 1099-R, and 1042-S) of privately printed continuous substitute forms must be perforated at each 11”’ August 18, 20083482008–33 I.R.B. page depth. No perforations are allowed between the 3 2 /3”forms(5 1 /2” for Forms 1099-B, 1099-DIV, 1099-MISC, or 1099-R) on a single copy page of Copy A. The words “Do Not Cut or Separate Forms on This Page” must be printed in red dropout ink (as required by form specifications) between the threeforms (two for Forms 1099-B, 1099-DIV, 1099-MISC, or 1099-R). Note.Perforations are required between all theother individual copies (Copies B and C, and Copies 1 and 2 for Forms 1099-R and 1099-MISC, and Copy D for Forms 1099-LTC and 1099-R) in the set. 2.1.9 What To IncludeYou must include the OMB Number on Copies A and Form 1096 in the same location as on the official form. The words “For Privacy Act and Paperwork Reduction Act Notice, see the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G” must be printed on Copy A; “For more information and the Privacy Act and Paperwork Reduction Act Notice, see the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G” must be printed on Form 1096. A postal indicia may be used if it meets the following criteria: •It is printed in the OCR ink color prescribed for the form, and •No part of the indicia is within one print position of the scannable area. The printer’s symbol (GPO) must not be printed on substitute Copy A. Instead, the employer identification number (EIN) of the forms printer must be entered in the bottom margin on the face of each individual form of Copy A, or on the bottom margin on the back of each Form 1096. The Catalog Number (Cat. No.) shown on the 2008 forms is used for IRS distribution purposes and need not be printed on any substitute forms. The form must not contain the statement “IRS approved” or any similar statement. Section 2.2 — Instructions for Preparing Paper Forms That Will Be Filed with the IRS 2.2. 1 Recipient Information The f orm recipient’s name, streetaddress, city, state, ZIP code, and telephone number (if requ ired) should be typed or machine printed inblackinkinthesameformatasshownonthe offi cial IRS form. The city, state, and ZIP code must be on the same line. The following rules apply to theform recipient’s name(s): •The name of the appropriate form recipient must be shown on the first or second name line in the area provided for the form recipient’s name. •No descriptive information or other name may precede the form recipient’s name. •Only one form recipient’s name may appear on the first name line of the form. •If the multiple recipients’ names are required on the form, enter on the first name line the recipient name that corresponds to the recipient taxpayer identification number (TIN) shown on the form. Place the other form recipients’ names on the second name line (only 2 name lines are allowable). Because certain states require that trust accounts be provided in a different format, generally filers should provide information returns reflecting payments to trust accounts with the: •Trust’s employer identification number (EIN) in the recipient’s TIN area, •Trust’s name on the recipient’s first name line, and •Name of the trustee on the recipient’s second name line. 2008–33 I.R.B.349August 18, 2008 Although handwritten forms will be accepted,the IRS prefers that filers type or machine print data entries. Also, filers should insertdata in the middle of blocks well separated from other printing and guidelines, and take measuresto guarantee clear, dark black, sharp images. Carbon copies and photocopies are not acceptable. 2.2.2 Account Number BoxUse the account number box on all Forms 1098, 1099, 5498, and W-2G for an account number designation when required by the official IRS form. The account number is required if you have multiple accounts for a recipient for whom you are filing more than one information return of the same type. Additionally, the IRS encourages you to include the recipients’ account number on paper forms if your system of records uses the account number rather than the name or TIN for identification purposes. Also, the IRS will include the account number in future notices to you about backup withholding. If you use window envelopes and a reduced rate to mail statements to recipients, be sure theaccount number does not appear in the window. Otherwise, the Postal Service may not accept them for mailing. Exception.Form 1098-T can have third party provider information. 2.2.3 Specifications and Restrictions Machine-printed forms should be printed using a 6 lines/inch option, and should be printed in 10 pitch pica (10 print positions per inch) or12 pitch elite (12 print positions per inch). Proportional spaced fonts are unacceptable. Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single sheet before they are filed with the IRS. The size specified does not include pin feed holes. Pin feed holes must not be present on forms filed with the IRS. Do not: •Use a felt tip marker. The machine used to “read” paper forms generally cannot read this ink type. •Use dollar signs ($), ampersands (&), asterisks (*), commas (,), or other special characters in the numbered money boxes. Exception.Use decimal points to indicate dollars and cents (for example, 2000.00 is acceptable). •Use apostrophes (’), asteriks (*), or otherspecial characters on the payee name line. •Fold Forms 1098, 1099, or 5498 mailed to the IRS. Mail these forms flat in an appropriately sized envelope or box. Folded documents cannot be readily moved through the machine used in IRS processing. •Staple Forms 1096 to the transmitted returns. Any staple holes near the return code number may impair the IRS’s ability to machine scan the type of documents. •Type other information on Copy A. •Cut or separate the individual forms on the sheet of forms of Copy A (except Forms W-2G). 2.2.4 Where To FileMail completed paper forms to the IRS service center shown in the Instructions for Form 1096 and in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G. Specific information needed to complete the forms mentioned in this revenue procedure are given in the specific form instructions. A chart is included in the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G giving a quick guide to which form must be filed to report a particular payment. August 18, 20083502008–33 I.R.B. Part 3 Specifications for Substitute Form W-2G (Filed with the IRS) Section 3.1 — General 3.1.1 PurposeThe following specifications give the format requirements for substitute Form W-2G (Copy A only), which is filed with the IRS. A filer may use a substitute Form W-2G to file with the IRS (referred to as “substitute Copy A”). The substitute form must be an exact replica of the official form with respect to layout and content. Section 3.2 — Specifications for Copy A of Form W-2G 3.2.1 Substitute Form W-2G (Copy A) You must follow these specifications when printing substitute Copy A of the Form W-2G. ItemSubstitute Form W-2G (Copy A) Paper Color and Quality Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22-500), plus or minus 5 percent. The paper must consist substantially of bleached chemical wood pulp. It must be free from unbleached or ground wood pulp or post-consumer recycled paper. It also must be suitably sized to accept ink without feathering. Ink Color and Quality All printing must be in a high quality non gloss black ink. TypographyThe type must be substantially identical in size and shape to the official form. All rules on the document are either 1 /2point (.007 inch), 1 point (0.015 inch), or 3 point (0.045). Vertical rules must be parallel to the left edge of the document, horizontal rules to the top edge. DimensionsThe official form is 8 inches wide x 3 2 /3inches deep, exclusive of a 2 /3inch snap stub on the left side of the form. Any substitute Copy A must be the same dimensions. The snap feature is not required on substitutes. All margins must be free of print. The top and right margins must be 1 /4inch plus or minus .0313. If the top and right margins are properly aligned, the left margin for all forms will be correct. If the substitute forms are in continuous or strip form, they must be burst and stripped to conform to the size specified for a single form. Hot Wax and Cold Carbon Spots Hot wax and cold carbon spots are not permitted on any of the internal form plies. These spots are permitted on the back of a mailer top envelope ply. Printer’s SymbolThe Government Printing Office (GPO) symbol must not be printed on substitute Forms W-2G. Instead, the employer identification number (EIN) of the forms printer must be printed in the bottom margin on the face of each individual Copy A on a sheet. The form must not contain the statement “IRS approved” or any similar statement. CatalogNumberTheCatalogNumber(Cat.No.)shownonFormW-2Gisusedfor IRS distribution purposes and need not be printed on any substitute forms. 2008–33 I.R.B.351August 18, 2008 Part 4 Substitute Statements to Form Recipients and Form Recipient Copies Section 4.1 — Specifications 4.1.1 IntroductionIf you do not use the official IRS form to furnishstatements to recipients, you must furnish an acceptable substitute statement. To be acceptable, your substitute statement must comply with the rules in this section. If you are furnishing a substitute form, see Regulations sections 1.6042-4, 1.6044-5, 1.6049-6, and 1.6050N-1 to determine how the following statements must be provided to recipients for most Forms 1099-DIV and 1099-INT, all Forms 1099-OID and 1099-PATR, and Form 1099-MISC or 1099-S for royalties. Generally, information returns may be furnished electronically with the consent of the recipient. See Section 4.5.1. Note.A trustee of a grantor-type trust may choose to file Forms 1099 and furnish a state- ment to the grantor under Regulations sections 1.671-4(b)(2)(iii) and (b)(3)(ii). The statement required by those regulations is not subjectto the requirements outlined in this section. 4.1.2 Substitute Statements to Recipients for Certain Forms 1099-INT and 1099-DIV, and for Forms 1099-OID and 1099-PATR The rules in this section apply to Form 1099-INT(except for interest reportable under sec- tion 6041), 1099-DIV (except for section 404(k) dividends), 1099-OID, and 1099-PATR only. You may furnish form recipients with Copy B of the official Form 1099 or a substitute Form 1099 (form recipient statement) if it contains the same language as the official IRS form (such as aggregate amounts paid to the form recipient, any backup withholding, the name, address, and TIN of the person making the return, and any other information required by the official form). Except for state income tax withholding information, information not required by the official form should not be included on the substitute form. You may enter a total of the individual accounts listed on the form only if they have been paid by the same payer. For example, if you are listing interest paid on several accounts by one financial institution on Form 1099-INT, you may also enter the total interest amount. You may also enter a date next to the corrected box if that box is checked. A substitute form recipient statement for Forms 1099-INT, 1099-DIV, 1099-OID, or 1099-PATR must comply with the following requirements: (1) Box captions and numbers that are applicable must be clearly identified, using the same wordingandnumberingasontheofficialform. Note.For Form 1099-INT, if box 3 is not on your substitute form, you may drop “not included in box 3” from the box 1 caption. (2) The form recipient statement (Copy B) must contain all applicable form recipient in- structions provided on the front and back of the official IRS form. You may provide those instructions on a separate sheet of paper. (3) The form recipient statement must contain the following in bold and conspicuous type: This is important tax information and is being furnished to the Internal Revenue Ser- vice. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported. (4) The box caption“Federal income tax withheld”must be in boldface type on the form recipient statement. (5) The form recipient statement must contain the Office of Management and Budget (OMB) number as shown on the official IRS form. SeePart 5. (6) The form recipient statement must contain the tax year (for example, 2008), form num- ber (for example, Form 1099-INT), and form name (for example, Interest Income) of the offi- cial IRS Form 1099. This information must be displayed prominently together in one area of the statement. For example, the tax year, form number, and form name could be shown in the upper right part of the statement. Each copy must be appropriately labeled (such as Copy B, For Recipient). SeeSection 4.4for applicable labels and arrangement of assembly of forms. August 18, 20083522008–33 I.R.B. Note.Do not include the words “Substitute for” or “In lieu of” on the form recipient statement. (7) Layout and format of the form is at the discretion of the filer. However, the IRS en- courages the use of boxes so that the statement has the appearance of a form and can be easily distinguished from other non-tax statements. (8) Each recipient statement of Forms 1099-DIV, 1099-INT, 1099-OID, and 1099-PATR must include the direct access telephone number of an individual who can answer questions about the statement. Include that telephone number conspicuously anywhere on the recipient statement. (9) A mutual fund family may state separately on one document (for example, one piece of paper) the dividend income earned by a recipient from each fund within the family of funds as required by Form 1099-DIV. However, each fundand its earnings must be stated separately. The form must contain an instruction to the recipient that eachfund’s dividends and name, not the name of the mutual fund family, must be reported on the recipient’s tax return. The form cannot contain an aggregate total of all funds. In addition, a mutual fund family may furnish a single statement (as a single filer) for Forms 1099-INT, 1099-DIV, and 1099-OID information. Each fund and its earnings must be stated separately. The form must contain an instruction to the recipient that each fund’s earnings and name, not the name of the mutual fund family, must be reported on the recipient’s tax return. The form cannot contain an aggregate total of all funds. 4.1.3 Substitute Statements to Recipients for Certain Forms 1098, 1099, 5498, and W-2G Statements to form recipients for Forms 1098, 1098-C, 1098-E, 1098-T, 1099-A, 1099-B, 1099-C, 1099-CAP, 1099-G, 1099-H, 1099-LTC, 1099-MISC, 1099-Q, 1099-R, 1099-S, 1099-SA, 5498, 5498-ESA, 5498-SA, W-2G, 1099-DIV (only for section 404(k) dividends reportable under section 6047), and 1099-INT (only for interest of $600 or more made in the course of a trade or business reportable under section 6041) can be copies of the official forms or an acceptable substitute. Caution.The IRS does not require a donee to use Form 1098-C as the written acknowledg- ment for contributions of motor vehicles, boats, and airplanes. However, if you choose to use copies of Form 1098-C or an acceptable substitute as the written acknowledgment, then you must follow the requirements of this section 4.1.3. To be acceptable, a substitute form recipient statement must meet the following require- ments. (1) The tax year, form number, and form name must be the same as the official form and must be displayed prominently together in onearea on the statement. For example, they may be shown in the upper right part of the statement. (2) The filer’s and the form recipient’s identifying information required on the official IRS form must be included. (3) Each substitute recipient statement for Forms W-2G, 1098, 1098-C, 1098-E, 1098-T, 1099-A, 1099-B, 1099-CAP, 1099-DIV, 1099-G (excluding state and local income tax refunds), 1099-H, 1099-INT, 1099-LTC, 1099-MISC (excluding fishing boat proceeds), 1099-OID, 1099-PATR, 1099-Q, and 1099-S must includethe direct access telephone number of an individual who can answer questions about the statement. Include the telephone number conspicuously anywhere on the recipient statement. Although not required, payers reporting on Forms 1099-C, 1099-R, 1099-SA, 5498, 5498-ESA, and 5498-SA are encouraged to furnish telephone numbers. (4) All applicable money amounts and information, including box numbers, required to be reported to the form recipient must be titled on the form recipient statement in substantially the same manner as those on the official IRS form.The box caption “Federal income tax withheld” must be in boldface type on the form recipient statement. Exception.If you are reporting a payment as “Other income” in box 3 of Form 1099-MISC, you may substitute appropriate language for the box title. For example, for payments of ac- crued wages and leave to a beneficiary of a deceased employee, you might change the title of box 3 to “Beneficiary payments” or something similar. Note.You cannot make this change on Copy A. 2008–33 I.R.B.353August 18, 2008 Note.If federal income tax is withheld and shown on Form 1099-R or W-2G, Copy B and Copy C must be furnished to the recipient. If federal income tax is not withheld, only Copy C of Form 1099-R and W-2G must be furnished. However, for Form 1099-R, instructions similar to those on the back of the official Copy B and Copy C of Form 1099-R must be furnished to the recipient. For convenience, you may choose to provide both Copies B and C of Form 1099-R to the recipient. (5) You must provide appropriate instructionsto the form recipient similar to those on the official IRS form, to aid in the proper reportingon the form recipient’s income tax return. For payments reported on Forms 1099-B, and 1099-CAP, the requirement to include instructions substantially similar to those on the official IRS form may be satisfied by providing form recip- ients with a single set of instructions for all Forms 1099-B and 1099-CAP statements required to be furnished in a calendar year. (6) If you use carbonless sets to produce recipient statements, the quality of each copy in the set must meet the following standards: •All copies must be clearly legible, •All copies must be able to be photocopied, and •Fading must not diminish legibility and the ability to photocopy. In general, black chemical transfer inks are preferred, but other colors are permitted if the above standards are met. Hot wax and cold carbon spots are not permitted on any of the internal form plies. The back of a mailer top envelope ply may contain these spots. (7) A mutual fund family may state separately on one document (for example, one piece of paper) the Form 1099-B information for a recipient from each fund as required by Form 1099-B. However, the gross proceeds, etc., from each transaction within a fund must be stated separately. The form must contain an instruction to the recipient that each fund’s (not the mutual fund family’s) name and amount must bereported on the recipient’s tax return. The form cannot contain an aggregate total of all funds. (8) You may use a Uniform Settlement Statement (under the Real Estate Settlement Proce- dures Act of 1974 (RESPA)) for Form 1099-S. The Uniform Settlement Statement is acceptable as the written statement to the transferorif you include the legend for Form 1099-S inSection 4.3.2and indicate which information on the Uniform Settlement Statement is being reported to the IRS on Form 1099-S. (9) For reporting state income tax withholding and state payments, you may add an addi- tional box(es) to recipient copies as appropriate. Note.You cannot make this change on Copy A. (10) On Copy C of Form 1099-LTC, you may reverse the location of the policyholder’s and the insured’s name, street address, city, state, and ZIP code for easier mailing. (11) If an institution insurer uses a third party service provider to file Form 1098-T, then in addition to the institution or insurers name, address, and telephone number, the same informa- tion may be included for the third party service provider in the space provided on the form. Section 4.2 — Composite Statements 4.2.1 Composite Substitute Statements for Certain Forms 1099-INT, 1099-DIV, 1099-MISC, and 1099-S, and for Forms 1099-OID and 1099-PATR A composite form recipient statement is permitted for reportable payments of interest, div- idends, original issue discount, patronage dividends, and royalties (Forms 1099-INT (except for interest reportable under section 6041), 1099-DIV (except for section 404(k) dividends), 1099-MISC or 1099-S (for royalties only),1099-OID, or 1099-PATR) when one payer is re- porting more than one of these payments during a calendar year to the same form recipient. Generally, do not include any other Form 1099 information (for example, 1098 or 1099-A) on a composite statement with the information required on the forms listed in the preceding sentence. Exception.A filer may include Form 1099-B information on a composite form with the forms listed above. August 18, 20083542008–33 I.R.B. Although the composite form recipient statement may be on one sheet, the format of the composite form recipient statement must satisfy the following requirements in addition to the requirements listed earlier inSection 4.1.2. •All information pertaining to a particular type of payment must be located and blocked together on the form and separate from any information covering other types of payments included on the form. For example, if you are reporting interest and dividends, the Form 1099-INT information must be presented separately from the Form 1099-DIV information. •The composite form recipient statement must prominently display the tax year, form num- ber, and form name of the official IRS form together in one area at the beginning of each appropriate block of information. •Any information required by the official IRS forms that would otherwise be repeated in each information block is required to be listed only once in the first information block on the composite form. For example, there is no requirement to report the name of the filer in each information block. This rule does notapply to any money amounts (for example, federal income tax withheld) or to any other information that applies to money amounts. •A composite statement is an acceptable substitute only if the type of payment and the recip- ient’s tax obligation with respect to the payment are as clear as if each required statement were furnished separately on an official form. 4.2.2 Composite Substitute Statements to Recipients for Forms Specified in Section 4.1.3 A composite form recipient statement for the forms specified inSection 4.1.3is permitted when one filer is reporting more than one type of payment during a calendar year to the same form recipient. A composite statement is not allowed for a combination of forms listed in Section 4.1.3and forms listed inSection 4.1.2. Exceptions: •Substitute payments in lieu of dividends reported in Box 8 of Form 1099-MISC may be reported on a composite substitute statement with Form 1099-DIV. •Form 1099-B information may be reported on a composite form with the forms specified inSection 4.1.2as described inSection 4.2.1. •Forms 1099-A and 1099-C transactions, if related, may be combined on Form 1099-C. •Royalties reported on Form 1099-MISC or 1099-S may be reported on a composite form only with the forms specified in Section 4.1.2. Although the composite form recipient statement may be on one sheet, the format of the composite form recipient statement must satisfy the requirements listed inSection 4.2.1as well as the requirements inSection 4.1.3. A composite statement of Forms 1098 and 1099-INT (for interest reportable under section 6049) is not allowed. Section 4.3 — Required Legends 4.3.1 Required Legends for Forms 1098 Form 1098 recipient statements (Copy B) must contain the following legends: •Form 1098— (1) “The information in boxes 1, 2, 3, and 4 is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points or because you did not report this refund of interest on your return.” (2) “Caution.The amount shown may not be fully deductible by you. Limits based on the loan amount and the cost and value of the secured property may apply. Also, you may only deduct interest to the extent it was incurred by you, actually paid by you, and not reimbursed by another person.” 2008–33 I.R.B.355August 18, 2008 •Form 1098-C: Copy B — “In order to take a deduction of more than $500 for this contribution, you must attach this copy to your federal tax return.” Copy C — “This information is being furnished to the Internal Revenue Service unless box 7 is checked.” •Form 1098-E — “This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for student loan interest.” •Form 1098-T — “This is important tax information and is being furnished to the Internal Revenue Service.” 4.3.2 Required Legends for Forms 1099 and W-2G •Forms 1099-A, 1099-C, and 1099-CAP: Copy B — “This is important tax information and is being furnished to the Internal Rev- enue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if taxable income results from this transaction and the IRS determines that it has not been reported.” •Forms 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR, and 1099-Q: Copy B — “This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.” •Forms 1099-H: Copy B — “This is important tax information and is being furnished to the Internal Revenue Service.” •Form 1099-LTC: Copy B — “This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.” Copy C — “Copy C is provided to you for information only. Only the policyholder is required to report this information on a tax return.” •Form 1099-R: Copy B — “Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return.” Copy C — “This information is being furnished to the Internal Revenue Service.” •Form 1099-S: Copy B — “This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported.” •Form 1099-SA: Copy B — “This information is being furnished to the Internal Revenue Service.” •Form W-2G: Copy B — “This information is being furnished to the Internal Revenue Service. Report this income on your federal tax return. If this form shows federal income tax withheld in box 2, attach this copy to your return.” Copy C — “This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported.” 4.3.3 Required Legends for Forms 5498 Form 5498 recipient statements (Copy B) must contain the following legends: •Form 5498 — “This information is being furnished to the Internal Revenue Service.” August 18, 20083562008–33 I.R.B. Note.If you do not furnish another statement to the participant because no contributions were made for the year, the statement of the fair market value and any required minimum distribution, of the account must contain this legend and a designation of which information is being furnished to the IRS. •Form 5498-ESA — “The information in boxes 1 and 2 is being furnished to the Internal Revenue Service.” •Form 5498-SA — “The information in boxes 1 through 6 is being furnished to the Internal Revenue Service.” Section 4.4 — Miscellaneous Instructions for Copies B, C, D, 1, and 2 4.4.1 CopiesCopies B, C, and in some cases, D, 1, and 2 are included in the official assembly for the convenience of the filer. You are not legally required to include all these copies with the pri- vately printed substitute forms. Furnishing Copies B and, in some cases, C will satisfy the legal requirement to provide statements of information to form recipients. Note.If an amount of federal income tax withheld is shown on Form 1099-R or W-2G, Copy B (to be attached to the tax return) and Copy C must be furnished to the recipient. Copy D (Forms 1099-R and W-2G) may be used for filer records. Only Copy A should be filed with the IRS. 4.4.2 Arrangement of AssemblyCopy A (“For Internal Revenue Service Center”) of all forms must be on top. The rest of the assembly must be arranged, from top to bottom, as follows. For: •Form 1098 — Copy B “For Payer”; Copy C “For Recipient.” •Form 1098-C — Copy B “For Donor”; Copy C “For Donor’s Records”; Copy D “For Donee.” •Form 1098-E — Copy B “For Borrower”; Copy C “For Recipient.” •Form 1098-T — Copy B “For Student”; Copy C “For Filer.” •Form 1099-A — Copy B “For Borrower”; Copy C “For Lender.” •Forms 1099-B, 1099-DIV, 1099-G, 1099-H,1099-INT, 1099-OID, 1099-PATR, 1099-Q, and 1099-SA — Copy B “For Recipient”; Copy C “For Payer.” •Form 1099-C — Copy B “For Debtor”; Copy C “For Creditor.” •Form 1099-CAP — Copy B “For Shareholder”; Copy C “For Corporation.” •Form 1099-LTC — Copy B “For Policyholder”; Copy C “For Insured”; and Copy D “For Payer.” •Form1099-MISC—Copy1“ForStateTaxDepartment”; Copy B “ForRecipient”; Copy 2 “To be filed with recipient’s state income tax return, when required”; and Copy C “For Payer.” •Form 1099-R — Copy 1 “For State, City, or Local Tax Department”; Copy B “Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return”; Copy C “For Recipient’s Records”; Copy 2 “File this copy with your state, city, or local income tax return, when required”; Copy D “For Payer.” •Form 1099-S — Copy B “For Transferor”; Copy C “For Filer.” •Form 5498 — Copy B “For Participant”; Copy C “For Trustee or Issuer.” •Form 5498-ESA — Copy B “For Beneficiary”; Copy C “For Trustee.” •Form 5498-SA — Copy B “For Participant”; Copy C “For Trustee.” •Form W-2G — Copy 1 “For State Tax Department”; Copy B “Report this income on your federal tax return. If this form shows federal income tax withheld in box 2, attach this copy to your return”; Copy C “For Winner’s Records”; Copy 2 “Attach this copy to your state income tax return, if required.”; Copy D “For Payer.” 2008–33 I.R.B.357August 18, 2008 4.4.3 PerforationsPerforations are required between forms on all copies except Copy A to make separating the forms easier. (Copy A of Form W-2G may be perforated.) Section 4.5 — Electronic Delivery of Form 1099 and Form 5498 Payee Statements 4.5.1 Electronic Recipient Statements If you are required to furnish a written statement (Copy B or an acceptable substitute) to a recipient, then you may furnish the statement electronically instead of on paper. This includes furnishing the statement to recipients of Forms 1098, 1098-E, 1098-T, 1099-A, B, C, CAP, DIV, H, INT, G, LTC, MISC, OID, PATR, Q, R, S, SA, 5498, 5498-ESA, and 5498-SA. It also includes Form W-2G (except for horse and dog racing, jai alai, sweepstakes, wagering pools, and lotteries). Note.Until further g uidance is issued, you can not furnish Form 1098-C electronically. If you meet the requirements listed below, you are treated as furnishing the statement timely. ConsentThe recipient must consent in the affirmative and not have withdrawn the consent before the statement is furnished. The consent by therecipient must be made electronically in a way that shows that he or she can access the statement in the electronic format in which it will be furnished. You must notify the recipient of any hardware or software changes prior to furnishing the statement. A new consent to receive the statement electronically is required after the new hardware or software is put into service. Prior to furnishing the statements electronically, you must provide the recipient a statement with the following statements prominently displayed: •If the recipient does not consent to receive the statement electronically, a paper copy will be provided. •The scope and duration of the consent. For example, whether the consent applies to every year the statement is furnished or only for the January 31 immediately following the date of the consent. •How to obtain a paper copy after giving consent. •How to withdraw the consent. The consent may be withdrawn at any time by furnishing the withdrawal in writing (electronically oron paper) to the person whose name appears on the statement. Confirmation of the withdrawal also will be in writing (electronically or on paper). •Notice of termination. The notice must state under what conditions the statements will no longer be furnished to the recipient. •Procedures to update the recipient’s information. •A description of the hardware and software required to access, print and retain a statement, and a date the statement will no longer be available on the website. Format, Posting, and NotificationAdditionally, you must: •Ensure the electronic format contains all therequired information and complies with the guidelines in this document. •Post, on or before the January 31 due date, theapplicable statement on a website accessible to the recipient through October 15 of that year. •Inform the recipient, electronically or by mail, of the posting and how to access and print the statement. August 18, 20083582008–33 I.R.B. For more information, see Regulations section 31.6051-1. For electronic furnishing of Forms 1098-E and 1098-T, see Regulations section 1.6050S-2. For electronic furnishing of Forms 1099-R, 1099-SA, 1099-Q, 5498, 5498-ESA, and 5498-SA, see Notice 2004-10, 2004-1 C.B. 433. Part 5 Additional Instructions for Substitute Forms 1098, 1099, 5498, W-2G, and 1042-S Section 5.1 — Paper Substitutes for Form 1042-S 5.1.1 Paper SubstitutesPaper substitutes of Copy A for Form 1042-S,Foreign Person’s U.S. Source Income Subject to Withholding, that totally conform to the specifications contained in this procedure may be privately printed without prior approval from the Internal Revenue Service. Proposed substi- tutes not conforming to these specifications must be submitted for consideration. Note.Copies B, C, D, and E of Form 1042-S may contain multiple income entries for the same recipient, that is multiple rows of the top boxes 1-10 of the form. 5.1.2 Time Frame For Submission of Form 1042-S The request should be submitted by November 15 of the year prior to the year the form is to be used. This is to allow the Service adequate time to respond and the submitter adequate time to make any corrections. These requests should contain a copy of the proposed form, the need for the specific deviation(s), and the number of information returns to be printed. 5.1.3 RevisionsForm 1042-S is subject to annual review and possible change. Withholding agents and form suppliers are cautioned against overstocking supplies of the privately printed substitutes. 5.1.4 Obtaining CopiesCopies of the official form for the reporting year may be obtained from most Service offices. The Service provides only cut sheets of these forms. Continuous fan-fold/pin-fed forms are not provided. 5.1.5 Instructions For Withholding Agents Instructions for withholding agents: •Only original copies may be filed with the Service. Carbon copies and reproductions are not acceptable. •The term “Recipient’s U.S. TIN” for an individual means the social security number (SSN) or IRS individual taxpayer identification number (ITIN), consisting of nine digits sepa- rated by hyphens as follows: 000-00-0000. For all other recipients, the term means em- ployer identification number (EIN) or qualified intermediary employer identification num- ber (QI-EIN). The QI-EIN designation includes a withholding foreign partnership employer identification number (WP-EIN) and a withholding foreign trust employer identification number (WT-EIN). The EIN and QI-EIN consist of nine digits separated by a hyphen as follows: 00-0000000. The taxpayer identification number (TIN) must be in one of these formats. •Withholding agents are requested to type or machine print whenever possible, provide qual- ity data entries on the forms (that is, use black ink and insert data in the middle of blocks well separated from other printing and guidelines), and take other measures to guarantee a clear, sharp image. Withholding agents are notrequired, however, to acquire special equip- ment solely for the purpose of preparing these forms. •The “AMENDED” and “PRO-RATA BASIS REPORTING” boxes must be printed at the top center of the form under the title and checked, if applicable. 2008–33 I.R.B.359August 18, 2008 •Substitute forms prepared in continuous or strip form must be burst and stripped to conform to the size specified for a single form beforethey are filed with the Service. The dimen- sions are found below. Computer cards are acceptable provided they meet all requirements regarding layout, content, and size. 5.1.6 Substitute Form 1042-S Format Requirements PropertySubstitute Form 1042-S Format Requirements PrintingPrivately printed substitute Forms 1042-S must be exact replicas of the official forms with respect to layout and content. Only the dimensions of the substitute form may differ. The Government Printing Office (GPO) symbol must be deleted. The exact dimensions are found below. Box EntriesOnly one item of income may be represented on the copy submitted to the Service (Copy A). Multiple income items may be shown on copies provided to recipients or retained by withholding agents. All boxes appearing on the official form must be present on the substitute form, with appropriate captions. Color and Quality of Ink All printing must be in high quality non-gloss black ink. Bar codes should be free from picks and voids. TypographyType must be substantially identical in size and shape to corresponding type on the official form. All rules on the document are either 1 point (0.015”) or 3 point (0.045”). Vertical rules must be parallel to the left edge of the document; horizontal rules must be parallel to the top edge. CarbonsCarbonized forms or “spot carbons” are not permissible. Interleaved carbons, if used, must be of good quality to preclude smudging and should be black. AssemblyIf all five parts are present, theparts of the assembly shall be arranged from top to bottom as follows: Copy A (Original) “for Internal Revenue Service,” Copies B, C, and D “for Recipient,” and Copy E “for Withholding Agent.” • Paper for Copy A must be white chemical wood bond, or equivalent, 20 pound (basis 17 x 22–500), plus or minus 5 percent; or offset book paper, 50 pound (basis 25 x 38–500). No optical brighteners may be added to the pulp or paper during manufacture. The paper must consist of principally bleach chemical wood pulp or recycled printed paper. It also must be suitably sized to accept ink without feathering. Color Quality of Paper • Copies B, C, D (for Recipient), and E (For Withholding Agent) are provided in the official assembly solely for the convenience of the withholding agent. Withholding agents may choose the format, design, color, and quality of the paper used for these copies. August 18, 20083602008–33 I.R.B. PropertySubstitute Form 1042-S Format Requirements • The official form is 8 inches wide x 5 1 /2inches deep, exclusive of a 1 /2inch snap stub on the left side of the form. The snap feature is not required on substitutes. • The width of a substitute Copy A must be a minimum of 7 inches and a maximum of 8 inches, although adherence to the size of the official form is preferred. If the width of substitute Copy A is reduced from that of the official form, the width of each field on the substitute form must be reduced proportionately. The left margin must be 1 /2inch and free of all printing other than that shown on the official form. Dimensions • The depth of a substitute Copy A must be a minimum of 5 1 /6 inches and a maximum of 5 1 /2inches. Other CopiesCopies B, C, and D must be furnished for the convenience of payees who must send a copy of the form with other federal and state returns they file. Copy E may be used as a withholding agent’s record/copy. Section 5.2 — OMB Requirements for All Forms in This Revenue Procedure 5.2.1 OMB RequirementsThe Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires that: •OMB approves all IRS tax forms that are subject to the Act. Each IRS form contains (in or near the upper right corner) the OMB approval number, if any. (The official OMB numbers may be found on the official IRS printed forms and are also shown on the forms in the exhibits inPart 6.) •Each IRS form (or its instructions) states: (1) Why the IRS needs the information, (2) How it will be used, and (3) Whether or not the information is required to be furnished to the IRS. This information must be provided to any users of official or substitute IRS forms or in- structions. 5.2.2 Substitute Form Requirements The OMB requirements for substitute IRS forms are: •Any substitute form or substitute statement to a recipient must show the OMB number as it appears on the official IRS form. •For Copy A, the OMB number must appear exactly as shown on the official IRS form. •For any copy other than Copy A, the OMB number must use one of the following formats. (1) OMB No. XXXX-XXXX (preferred) or (2) OMB # XXXX-XXXX (acceptable). 5.2.3 Required Explanation to Users All substitute forms (Copy A only) must state “For Privacy Act and Paperwork Reduction Act Notice, see the 2008 General Instructions for Forms 1099, 1098, 5498, and W-2G.” (or “For Privacy Act and Paperwork Reduction Act Notice, see separate instructions.” for Copy A of Form 1042-S). If no instructions are provided to users of your forms, you must furnish them with the exact text of the Privacy Act and Paperwork Reduction Act Notice. 2008–33 I.R.B.361August 18, 2008 Section 5.3 — Reproducible Copies of Forms 5.3.1 IntroductionYou can order official IRS forms and publications by calling 1-800-TAX-FORM (1-800- 829-3676). Other ways to get federal tax material include: •The Internet. •CD. •GPO Superintendent of Documents Bookstores. Note.Several IRS forms are provided electronically on the IRS home page and on the IRS Federal Tax Forms CD, Form 1096 and Copy A of 1098 series, 1099 series, and 5498 series cannot be used for filing with the IRS when printed from a conventional printer. These forms contain drop-out ink requirements as described in Part 2 of this publication. 5.3.2 InternetYou can download tax materials from the Internet by visiting the IRS web site at w ww.irs.gov. 5.3.3 IRS Federal Tax Forms CDThe IRS also offers an alternative to downloading electronic files and provides current and prior-year access to tax forms and instructions through itsIRS Federal Tax Forms CD.TheCD, Pub. 1796,IRS Federal Tax Products CD, will be available for the upcoming filing season. You may buy the CD on the Internet atw ww.irs.gov/cdordersor by calling 1-877-CDFORMS (1-877-233-6767). 5.3.4 GPO Supt. of Documents Bookstores The Government Printing Office (GPO) Superintendent of Documents Bookstores also sell individual copies of tax forms, instructions, and publications. Section 5.4 — Effect on Other Revenue Procedures 5.4.1 Other Revenue ProceduresRevenue Procedure 2007-50, 2007-31 I.R.B. 244, dated July 30, 2007, which provides rules and specifications for private printing of 2007 substitute forms and statements to recipients, is superseded. Part 6 Exhibits Section 6.1 — Exhibits of Forms in the Revenue Procedure 6.1.1 PurposeExhibits A through Z illustrate some of the specifications that were discussed earlier in this revenue procedure. The dimensions apply to the actual size forms, but the exhibits have been reduced in size. Generally, the illustrated dimensions apply to all like forms. For example, Exhibit B shows 11.00” from the top edge to the bottom edge of Form 1098 and .85” between the bottom rule of the top form and the top rule of the second form on the page. These dimensions apply to all forms that are printed three to a page. August 18, 20083622008–33 I.R.B. 6.1.2 GuidelinesKeep in mind the following guidelines when printing substitute forms. •Closely follow the specifications to avoid delays in processing the forms. •Always use the specifications as outlined in this revenue procedure and illustrated in the exhibits. •Do not add the text line “Do Not Cut or Separate Forms on This Page” to the bottom form. This will cause inconsistency with the specifications. 2008–33 I.R.B.363August 18, 2008 August 18, 20083642008–33 I.R.B. 2008–33 I.R.B.365August 18, 2008 August 18, 20083662008–33 I.R.B. 2008–33 I.R.B.367August 18, 2008 August 18, 20083682008–33 I.R.B. 2008–33 I.R.B.369August 18, 2008 August 18, 20083702008–33 I.R.B. 2008–33 I.R.B.371August 18, 2008 August 18, 20083722008–33 I.R.B. 2008–33 I.R.B.373August 18, 2008 August 18, 20083742008–33 I.R.B. 2008–33 I.R.B.375August 18, 2008 August 18, 20083762008–33 I.R.B. 2008–33 I.R.B.377August 18, 2008 August 18, 20083782008–33 I.R.B. 2008–33 I.R.B.379August 18, 2008 August 18, 20083802008–33 I.R.B. 2008–33 I.R.B.381August 18, 2008 August 18, 20083822008–33 I.R.B. 2008–33 I.R.B.383August 18, 2008 August 18, 20083842008–33 I.R.B. 2008–33 I.R.B.385August 18, 2008 August 18, 20083862008–33 I.R.B. 2008–33 I.R.B.387August 18, 2008 August 18, 20083882008–33 I.R.B. 2008–33 I.R.B.389August 18, 2008 Part IV. Items o fGeneralInterest Notice of Prop osed Rulemaking by Cross-Refere nce to Temporary Re gulations andNoticeof Proposed Rulemaking Extension o f Time for Filing Returns REG–115457–08 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking by cross-reference to temporary regula- tions and notice of proposed rulemaking. SUMMARY: In this issue of the Bulletin, the IRS is issuing final and temporary regulations relating to the simplification of procedures for automatic extensions of time to file certain returns. These sim- plified procedures are aimed at reducing overall taxpayer burden. The text of the temporary regulations (T.D. 9407) also serves as the text of these proposed regu- lations. DATES: Written or electronic comments and requests for a public hearing must be received by September 29, 2008. ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–115457–08), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washing- ton, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG–115457–08), Courier’s Desk, Internal Revenue Ser- vice, 1111 Constitution Avenue, NW, Washington, DC. Alternatively, tax- payers may submit comments elec- tronically via the Federal eRulemak- ing Portal atwww.regulations.gov(IRS REG–115457–08). FOR F URTHER INFORMATION CONT ACT: Concerning the proposed reg ulations, Matthew P. Howard, (202) 622 –4910; concerning submissions of com ments and requests for a public hearing, Oluw afunmilayo Taylor (202) 622–7180 (not toll-free numbers). SUPPLEMENTAR Y INFORMATION: Background an d Explanation of Provisions Partnerships , Trusts, and Estates Final and temp orary regulations in this issue of the Bu lletin amend 26 CFR part 1 relating to s ection 6081. The text of the temporary re gulations also serves as the text of these proposed regulations. The preamble to t he temporary regulations ex- plains the a mendments. The temporary regulation s allow certain pass-through en- tities (mos t partnerships, estates, and cer- tain trusts )toobtainanautomaticfive- month exten sion of time to file certain returns if an application is submitted on Form 7004, “Application for Automatic Extension of Time To File Certain Business Income Tax , Information, and Other Re- turns.” In a previo us notice of proposed rule- making by cross-reference to tempo- rary regu lations, it was proposed that pass-thr ough entities be allowed to obtain an automa tic six-month extension of time to file. I n response to comments received regardi ng the automatic six-month ex- tension of time to file, and in an attempt to allev iate overall taxpayer burden, the Treasur y Department and IRS have deter- mined th at the automatic extension period for cer tain pass-through entities should be five months. As a result, a majority of taxp ayers with ownership interests in these p ass-through entities will receive, in a tim ely manner, information returns from t he entities that they need in order to com plete their own income tax returns befor e those returns are due. For exam- ple, a n individual income taxpayer with asix- month extension of time to October 15 th to file the Form 1040,“U.S. Individ- ual I ncome Tax Return”will now receive aSch edule K–1,“Partner’s Share of In- come , Deductions, Credits, etc.”from a part nership in which the taxpayer holds an inte rest shortly after the partnership files its Form 1065,“U.S. Return of Partner- shi pIncome”on its extended due date of Sep tember 15 th . Although the T reasury Department and IRS are att empting to alleviate over- all taxpayer b urden, because the au- tomatic exten sion period for certain pass-through entities will now be five months, comm ents are requested on whether a fiv e-month extension of time to file for thes e pass-through entities might increase ove rall taxpayer burden. Please follow the i nstructions in the “Comments and Request s for a Public Hearing” por- tion of this preamble. Pension Excise Taxes This notice of proposed rulemaking also proposes to amend 26 CFR part 54. This amendment would allow filers of Form 8928,“Return of Certain Excise Taxes Under Chapter 43 of the Internal Revenue Code,”to obtain an automatic six-month extension of time to file the return after the date prescribed for filing the return. Special A nalyses It has been determined that this notice of proposed rulemaking is not a signifi- cant regulatory action as defined in Exec- utive Order 12866. Therefore, a regula- tory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regu- lations. Although these regulations refer- ence forms that are approved under the Pa- perwork Reduction Act (44 U.S.C. chapter 35), the regulations themselves do not im- pose a collection of information on small entities. Therefore the Regulatory Flexi- bility Act (5 U.S.C. chapter 6) does not ap- ply. Pursuant to section 7805(f) of the In- ternal Revenue Code, this regulation has been submitted to the Chief Counsel for Advocacy of the Small Business Admin- istration for comment on its impact. Comments and Requests for a Public Hearing Befo re these proposed regulations are adop ted as final regulations, consideration will be given to any written (a signed orig- inal and eight (8) copies) and electronic com ments that are submitted timely to the August 18, 20083902008–33 I.R.B. IRS. The IRS and Treasury Department specifically request comments on the clar- ity of the proposed regulations and how they can be made easier to understand. All comments will be available for public in- spection and copying. A public hearing will be scheduled if requested in writing by any person that timely submits com- ments. If a public hearing is scheduled, no- tice of the date, time, and place for the pub- lic hearing will be published in theFederal Register. Drafting Information The principal author of these regula- tions is Matthew P. Howard of the Office of the Associate Chief Counsel (Procedure and Administration). ***** Proposed Amendments to the Regulations Accordingly, 26 CFR parts 1 and 54, are proposed to be amended to read as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.6081–2 is added to read as follows: §1.6081–2 Automatic extension of time to file certain returns filed by partnerships. [The text of proposed §1.6081–2 is the same as the text of §1.6081–2T(a) through (i) published elsewhere in this issue of the Bulletin]. Par. 3. Section 1.6081–6 is added to read as follows: §1.6081–6 Automatic extension of time to file estate or trust income tax return. [The text of proposed §1.6081–6 is the same as the text of §1.6081–6T(a) through (h) published elsewhere in this issue of the Bulletin]. PART 54—PENSION EXCISE TAXES Par. 4. The authority citation for part 54isamendedbyaddinganentryinnu- merical order to read in part as follows: Authority: 26 U.S.C. 7805 * * * Section 54.6081–1 also issued under authority of 26 U.S.C. 6081(a). Par. 5. Section 54.6081–1 is added to read as follows: §54.6081–1 Automatic extension of time for filing returns for certain excise taxes under Chapter 43. (a)In general. An employer, other per- son or health plan that is required to file a return on Form 8928,“Return of Cer- tain Excise Taxes Under Chapter 43 of the Internal Revenue Code,”will be allowed an automatic 6-month extension of time to file the return after the date prescribed for filing the return if the employer, other per- son or health plan files an application un- der this section in accordance with para- graph (b) of this section. (b)Requirements. To satisfy this para- graph (b), an employer, other person or health plan must— (1) Submit a complete application on Form 7004,“Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Re- turns,”or in any other manner prescribed by the Commissioner; (2) File the application on or before the date prescribed for filing the return with the Internal Revenue Service office desig- nated in the application’s instructions; and (3) Remit the amount of the properly estimated unpaid tax liability on or before thedateprescribedforpayment. (c)No extension of time for the payment of tax. An automatic extension of time for filing a return granted under paragraph (a) of this section will not extend the time for payment of any tax due on such return. (d)Termination of automatic extension. The Commissioner may terminate an au- tomatic extension at any time by mailing totheestateortrustanoticeoftermina- tion at least 10 days prior to the termina- tion date designated in such notice. The Commissioner must mail the notice of ter- mination to the address shown on the Form 7004 or to the estate or trust’s last known address. For further guidance regarding the definition of last known address, see §301.6212–2 of this chapter. (e)Penalties. See section 6651 for fail- ure to file a pension excise tax return or failure to pay the amount shown as tax on the return. (f)Effective/applicability date.This section is applicable for applications for an automatic extension of time to file a return due under chapter 43, filed on or after the date final regulations are published in the Federal Register. LindaE.Stiff, Deputy Commissioner for Services and Enforcement. (Filed by the Office of the Federal Register on June 30, 2008, 8:45 a.m., and published in the issue of the Federal Register for July 1, 2008, 73 F.R. 37389) Guidance Under Sections 642 and643(IncomeOrdering Rules); Correction Announcement 2008–73 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to notice of pro- posed rulemaking. SUMMARY: This document contains cor- rections to a notice of proposed rulemak- ing (REG–101258–08, 2008–28 I.R.B. 111) that was published in theFederal Registeron Wednesday, June 18, 2008 (73 FR 34670) providing guidance under Internal Revenue Code section 642(c) with regard to the Federal tax consequences of an ordering provision in a trust, a will, or a provision of local law that attempts to determine the tax character of the amounts paid to a charitable beneficiary of the trust or estate. The proposed regulations also make conforming amendments to the regulations under section 643(a)(5). The proposed regulations affect estates, char- itable lead trusts (CLTs) and other trusts making payments or permanently setting aside amounts for a charitable purpose. FOR FURTHER INFORMATION CONTACT: Vishal Amin at (202) 622–3060 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The correction notice that is the subject of this document is under sections 642 and 643 of the Internal Revenue Code. 2008–33 I.R.B.391August 18, 2008 Need for Correction As published, the notice of proposed rulemaking (REG–101258–08) contains errors that may proveto be misleading and are in need of clarification. Correction of Publication Accordingly, the publication of the notice of proposed rulemaking (REG–101258–08), which was the subject of FR Doc. E8–13611, is corrected as follows: 1. On page 34671, column 1, in the pre- amble, under the paragraph heading “Ex- planation of Provisions”, first paragraph, line 19, the language “proposed regulation will amend the” is corrected to read “pro- posed regulations will amend the”. 2. On page 34671, column 2, in the pre- amble, under the paragraph heading “Ex- planation of Provisions”, first paragraph of the column, line 3, the language “unrelated business tax income and tax-” is corrected to read “unrelated business taxable income and tax-”. 3. On page 34671, column 2, in the pre- amble, under the paragraph heading “Ex- planation of Provisions”, first paragraph of the column, line 22, the language “inde- pendent of the income tax” is corrected to read “independent of income tax”. §1.642(c)–3 [Corrected] 4.On page 34672, column 1, §1.642(c)–3, paragraph 2., first entry of the amendatory instructions, the language “Revising the paragraph heading of para- graph (b) and add a heading to paragraph (b)(1).” is correctedto read “Revising the paragraph heading of paragraph (b) and adding a heading to paragraph (b)(1).”. 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 July 15, 2008, 8:45 a.m., and published in the issue of the Federal Register for July 16, 2008, 73 F.R. 40793) Source Rules Involving U.S. Possessions and Other Conforming Changes; Correction Announcement 2008–74 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correcting amendment. SUMMARY: This document contains a correction to final regulations (T.D. 9391, 2008–20 I.R.B. 945) that were published in theFederal Registeron Wednesday, April 9, 2008 (73 FR 19350) providing rules under section 937(b) of the Internal Revenue Code for determining whether income is derived from sources within a U.S. possession or territory specified in section 937(a)(1) (generally referred to in this preamble as a “territory”) and whether income is effectively connected with the conduct of a trade or business within a territory. DATES: This correction is effective July 18, 2008, and is applicable on April 9, 2008. FOR FURTHER INFORMATION CONTACT: J. David Varley, (202) 622–7790 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background The final regulations and removal of temporary regulationsthat are the subjects of this document are under sections 1, 170A, 861, 871, 876, 881, 884, 901, 931, 932, 933, 934, 935, 937, 957, 1402, 6012, 6038, 6046, 6688, and 7701 of the Internal Revenue Code. Need for Correction As published, final regulations (T.D. 9391) contain an error that may prove to be misleading and is in need of clarifica- tion. ***** Correction of Publication Accordingly, 26 CFR part 1 is cor- rected by making the following correcting amendment: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read, in part, as follows: Authority: 26 U.S.C. 7805 * * * §1.881–5T [Removed] Par. 2. Section 1.881–5T is removed. 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 July 17, 2008, 8:45 a.m., and published in the issue of the Federal Register for July 18, 2008, 73 F.R. 41259) Tax Return Preparer Penalties Under Sections 6694 and 6695; Correction Announcement 2008–75 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Correction to notice of pro- posed rulemaking. SUMMARY: This document contains cor- rections to a notice of proposed rulemak- ing (REG–129243–07, 2008–27 I.R.B. 32) that was published in theFederal Reg- isteron Tuesday, June 17, 2008 (73 FR 34560) implementing amendments to the tax return preparer penalties under sections 6694 and 6695 of the Internal Revenue Code and related provisions under sections 6060, 6107, 6109, 6696 and 7701(a)(36) reflecting amendments to the Code made by section 8246 of the Small Business and Work Opportunity Tax Act of 2007. The proposed regulations affect tax return pre- parers and provide guidance regarding the amended provisions. FOR FURTHER INFORMATION CONTACT: Michael E. Hara, (202) August 18, 20083922008–33 I.R.B. 622–4910 and Matthew S. Cooper, (202) 622–4940 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background The correction notice that is the subject of this document is under sections 6107, 6694, 6696, and 7701 of the Internal Rev- enue Code. Need for Correction As published, the notice of proposed rulemaking (REG–129243–07) contains errors that may proveto be misleading and are in need of clarification. Correction of Publication Accordingly, the publication of the notice of proposed rulemaking (REG–129243–07), which was the subject of FR Doc. E8–12898, is corrected as follows: 1. On page 34563, column 2, in the pre- amble, under the paragraph heading “Fur- nishing of Copy of the Tax Return”, first paragraph of the column, line 2, the lan- guage “Single Filers and Joint Filers With No” is corrected to read “Single and Joint Filers With No”. 2. On page 34567, column 1, in the pre- amble, under the paragraph heading “Def- inition of Tax Return Preparer”, first para- graph of the column, line 3, the language “under proposed §301.7701–15(b)(2) and” is corrected to read “under proposed §§301.7701–15(b)(2) and”. §1.6694–1 [Corrected] 3.On page 34572, column 1, §1.6694–1(e)(2), line 6, the language “would be sustained on its merits and” is corrected to read “be sustained on its merits and”. §26.6694–1 [Corrected] 4.On page 34583, column 3, §26.6694–1(a), line 5, the language “see §1.66994–1 of this chapter.” is corrected to read “see §1.6694–1 of this chapter.”. §41.6107–1 [Corrected] 5.On page 34586, column 3, §41.6107–1(a), line 3, the language “or claim for refund of excise tax section” is corrected to read “or claim for refund of excise tax under section”. §156.6107–1 [Corrected] 6.On page 34593, column 1, §156.6107–1(a), line 3, the language “or claim for refund of tax under Section” is corrected to read “or claim for refund of tax under section”. 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 July 18, 2008, 8:45 a.m., and published in the issue of the Federal Register for July 21, 2008, 73 F.R. 42294) Deletions From Cumulative List of Organizations Contributions to Which are Deductible Under Section 170 of the Code Announcement 2008–76 The Internal Revenue Service has re- voked its determination that the organi- zations listed below qualify as organiza- tions described in sections 501(c)(3) and 170(c)(2) of the Internal Revenue Code of 1986. Generally, the Service will not disallow deductions for contributions made to a listed organization on or before the date of announcement in the Internal Revenue Bulletin that an organization no longer qualifies. However, the Service is not precluded from disallowing a deduction for any contributions made after an or- ganization ceases to qualify under section 170(c)(2) if the organization has not timely filed a suit for declaratory judgment under section 7428 and if the contributor (1) had knowledge of the revocation of the ruling or determination letter, (2) was aware that such revocation was imminent, or (3) was in part responsible for or was aware of the activities or omissions of the organization that brought about this revocation. If on the other hand a suit for declara- tory judgment has been timely filed, con- tributions from individuals and organiza- tions described in section 170(c)(2) that are otherwise allowable will continue to be deductible. Protection under section 7428(c) would begin on August 11, 2008, and would end on the date the court first determines that the organization is not de- scribed in section 170(c)(2) as more partic- ularly set forth in section 7428(c)(1). For individual contributors, the maximum de- duction protected is $1,000, with a hus- band and wife treated as one contributor. This benefit is not extended to any indi- vidual, in whole or in part, for the acts or omissions of the organization that were the basis for revocation. Family Housing Revitalization Program Atlanta, GA Educational Solutions, Inc. Jacksonville, FL Western Pacific University Moreno Valley, CA Maine Medical Partners S. Portland, ME PEP Transportation, Inc. Decatur, AL TLAPALCALLI, Inc. Brownsville, TX MissingChildrenProject,Inc. Monroe, MI Adair County Rescue Squad, Inc. Columbia, KY Credit Counseling Centers of Ohio, Inc. Las Vegas, NV Fishermen’s Hospital, Inc. Marathon, FL 2008–33 I.R.B.393August 18, 2008 Announcement of Disciplinary Sanctions From the Office of Professional Responsibility Announcement 2008-77 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, 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. August 18, 20083942008–33 I.R.B. City & StateNameProfessionalDisciplinary SanctionEffective Date(s) Designation California Simi ValleyStone, Joseph F.AttorneySuspended by decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 24, 2008 Florida Palm Beach Gardens Abrams, Daniel E.AttorneySuspended by default decision in expedited proceeding under §10.82 (suspension of attorney license in New York) Indefinite from June 27, 2008 Fort LauderdaleGuthrie, Wayne N.CPASuspended by ALJ decision on motion for summary judgment for violation of §10.51 (failure to timely file Federal income tax returns) May 9, 2008 through May 8, 2012 Georgia CummingOwens, Kirk R.AttorneySuspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from July 16, 2008 Idaho EaglePangburn, Bobby E.AttorneySuspended by decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 27, 2008 Illinois Oak ParkInglimo, Michael R.AttorneySuspended by decision in expedited proceeding under §10.82 (suspension of attorney license in Wisconsin) Indefinite from June 27, 2008 ChicagoMatik, Jr., PaulAttorneySuspended by default decision in expedited proceeding under §10.82 (conviction under Illinois law, computer fraud) Indefinite from July 16, 2008 MomenceOlton, Tina M.AttorneySuspended by default decision in expedited proceeding under §10.82 (stricken from attorney license roll) Indefinite from July 16, 2008 2008–33 I.R.B.395August 18, 2008 City & StateNameProfessionalDisciplinary SanctionEffective Date(s) Designation Illinois (Continued) MolineRudd, Robert R.AttorneySuspended by decision in expedited proceeding under §10.82 (stricken from attorney license roll) Indefinite from July 8, 2008 Highland ParkTucker, Gary S.AttorneySuspended by decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from July 14, 2008 Massachusetts LlynnFreedberg, J. MichaelAttorneySuspended by default decision in expedited proceeding under §10.82 (attorney disbarment) Indefinite from June 27, 2008 New Jersey SmithvilleKraemer, Robert L.CPASuspended by default decision in expedited proceeding under §10.82 (conviction under 26 U.S.C. §7201, income tax evasion, 26 U.S.C. §702, and18U.S.C.§2,failure to collect, and account for and pay over payroll taxes) Indefinite from June 27, 2008 New York Abrams, Daniel E., See Florida Brant LakeFarrell, J. BennettAttorneySuspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 27, 2008 LaureltonJones, Daryll B.AttorneySuspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 27, 2008 Floral ParkMazzo, Mark M.CPASuspended by consent for violation of §10.22 (failure to exercise due diligence in preparing tax return) Indefinite from June 27, 2008, but at least 24 months August 18, 20083962008–33 I.R.B. City & StateNameProfessionalDisciplinary SanctionEffective Date(s) Designation North Carolina BooneWyatt, Beverly AyersCPASuspended by default decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from June 27, 2008 Ohio Cox, Patrick J., See Pennsylvania BereaHaque, Abrar U.CPASuspended by decision in expedited proceeding under §10.82 (revocation of CPA license) Indefinite from July 16, 2008 Pennsylvania BadenCox, Patrick J.CPASuspended by decision in expedited proceeding under §10.82 (revocation of CPA license in Ohio) Indefinite from June 27, 2008 LititzMitchell, Gary H.CPASuspended by decision in expedited proceeding under §10.82 (suspension of CPA license) Indefinite from June 27, 2008 South Carolina ColumbiaDePew, Harry C.AttorneySuspended by default decision in expedited proceeding under §10.82 (suspension of attorney license) Indefinite from June 24, 2008 Texas HuntsvilleOhendalski, Richard S. CPASuspended by decision on appeal for violation of §10.51 (failure to timely file Federal income tax returns) Indefinite from June 18, 2008, but at least 48 months Wisconsin Inglimo, Micheal R., See Illinois 2008–33 I.R.B.397August 18, 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. August 18, 2008i2008–33 I.R.B. Numerical Finding List 1 Bulletins 2008–27 through 2008–33 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 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 Proposed Regulations: REG-143453-05, 2008-32 I.R.B.310 REG-129243-07, 2008-27 I.R.B.32 REG-138355-07, 2008-32 I.R.B.311 REG-149405-07, 2008-27 I.R.B.73 REG-100464-08, 2008-32 I.R.B.313 REG-101258-08, 2008-28 I.R.B.111 REG-102122-08, 2008-31 I.R.B.278 REG-115457-08, 2008-33 I.R.B.390 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 Revenue Procedures— Continued: 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 Revenue Rulings: 2008-32, 2008-27 I.R.B.6 2008-33, 2008-27 I.R.B.8 2008-34, 2008-28 I.R.B.76 2008-35, 2008-29 I.R.B.116 2008-36, 2008-30 I.R.B.165 2008-37, 2008-28 I.R.B.77 2008-38, 2008-31 I.R.B.249 2008-39, 2008-31 I.R.B.252 2008-40, 2008-30 I.R.B.166 2008-41, 2008-30 I.R.B.170 2008-42, 2008-30 I.R.B.175 2008-43, 2008-31 I.R.B.258 2008-44, 2008-32 I.R.B.292 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 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. 2008–33 I.R.B.iiAugust 18, 2008 Finding List of Current Actions on Previously Published Items 1 Bulletins 2008–27 through 2008–33 Announcements: 2008-64 Corrected by by Ann. 2008-71, 2008-32 I.R.B.321 Notices: 99-48 Superseded by Rev. Proc. 2008-40, 2008-29 I.R.B.151 2000-9 Obsoleted by Rev. Proc. 2008-41, 2008-29 I.R.B.155 2004-2 Amplified by Notice 2008-59, 2008-29 I.R.B.123 2004-50 Amplified by Notice 2008-59, 2008-29 I.R.B.123 2006-88 Modified and superseded by Notice 2008-60, 2008-30 I.R.B.178 2007-22 Amplified by Notice 2008-59, 2008-29 I.R.B.123 Proposed Regulations: REG-129243-07 Corrected by Ann. 2008-75, 2008-33 I.R.B.392 REG-151135-07 Hearing scheduled by Ann. 2008-64, 2008-28 I.R.B.114 REG-101258-08 Corrected by Ann. 2008-73, 2008-33 I.R.B.391 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 2001-42 Superseded by Rev. Proc. 2008-39, 2008-29 I.R.B.143 2002-9 Modified and amplified by Rev. Proc. 2008-43, 2008-30 I.R.B.186 Revenue Procedures— Continued: 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 2007-19 Superseded by Rev. Proc. 2008-39, 2008-29 I.R.B.143 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 2007-50 Superseded by Rev. Proc. 2008-36, 2008-33 I.R.B.340 2007-70 Modified by Ann. 2008-63, 2008-28 I.R.B.114 2007-72 Amplified and superseded by Rev. Proc. 2008-47, 2008-31 I.R.B.272 2008-12 Modified and superseded by Rev. Proc. 2008-35, 2008-29 I.R.B.132 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 77-480 Modified by Rev. Proc. 2008-43, 2008-30 I.R.B.186 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 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: 9391 Corrected by Ann. 2008-74, 2008-33 I.R.B.392 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. August 18, 2008iii2008–33 I.R.B. 2008–33 I.R.B.August 18, 2008 August 18, 20082008–33 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. 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