Bulletin No. 2007-25
June 18, 2007
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 eral, covered employees are the principal executive officer and
those officers whose total compensation for that taxable year
is required to be reported to shareholders under the Securities
Rev. Rul. 2007–38, page 1420. Exchange Act by reason of such employee being among the 3
Insurance companies; aggregation of multiple modified highest compensated officers for the taxable year (other than
endowment contracts (MECs). This ruling holds that if a the principal executive officer or the principal financial officer).
taxpayer that owns multiple modified endowment contracts is-
sued by the same insurance company in the same calendar Notice 2007–50, page 1430.
year exchanges some of those MECs for new MECs issued by This notice provides guidance relating to the percentage limita-
a second insurance company, the new contracts are not ag- tions imposed by section 170(b)(1)(E) of the Code on qualified
gregated with the remaining contracts. conservation contributions made by individuals.
Rev. Rul. 2007–40, page 1426. Rev. Proc. 2007–39, page 1446.
Partnership property; transfer. This ruling concludes that Addition of section 102(a) to the no-rule rev. proc. This
a transfer of partnership property to a partner in satisfaction procedure announces that the Service will not issue letter rul-
of a guaranteed payment under section 707(c) of the Code is ings or determination letters on whether a transfer is a gift
a sale or exchange under section 1001, and not a distribution within the meaning of section 102(a) of the Code. Rev. Proc.
under section 731. 2007–3 amplified.
Notice 2007–48, page 1428.
This notice announces that the IRS and Treasury intend to issue
regulations under section 367(b) of the Code to address cer-
EMPLOYEE PLANS
tain triangular reorganizations involving foreign corporations.
The regulations will apply to triangular reorganizations where Rev. Proc. 2007–37, page 1433.
either the parent corporation or its subsidiary are foreign and Funding; substitute mortality tables; non-multiemployer
where the subsidiary acquires from shareholders of the parent, defined benefit plans. This procedure provides guidelines for
in exchange for property, parent stock that is used to acquire requesting letter rulings for substitute mortality tables for cer-
the stock or assets of a target corporation. The regulations tain defined benefit plans as a result of sections 112 and 102
make adjustments to the parent and the subsidiary corpora- of the Pension Protection Act of 2006, i.e., section 430(h)(3)(C)
tions that have the effect of a distribution from the subsidiary of the Code and section 303(h)(3)(C) of the Employee Retire-
to its parent of that amount of property that the subsidiary uses ment Income Security Act of 1974.
to acquire stock of its parent. Notice 2006–85 amplified.
Notice 2007–49, page 1429.
This notice provides guidance on identifying covered employ-
ees for purposes of section 162(m)(3) of the Code. In gen-
(Continued on the next page)
Finding Lists begin on page ii.
Announcement 2007–59, page 1448.
Section 401(k) safe harbor plan; qualified Roth contri-
bution program. This announcement provides that a plan
will not fail to satisfy the requirements to be a section 401(k)
safe harbor plan merely because of mid-year changes to im-
plement a qualified Roth contribution program (as defined in
section 402A) or the hardship withdrawals described in Part III
of Notice 2007–7.
EXEMPT ORGANIZATIONS
Rev. Rul. 2007–41, page 1421.
Exempt organizations; political campaigns. This ruling
provides 21 examples illustrating the application of the facts
and circumstances to be considered to determine whether an
organization exempt from income tax under section 501(a) of
the Code as an organization described in section 501(c)(3) has
participated in, or intervened in (including the publishing or dis-
tributing of statements), any political campaign on behalf of (or
in opposition to) any candidate for public office.
EMPLOYMENT TAX
Rev. Proc. 2007–38, page 1442.
This procedure provides the requirements for completing and
submitting Form 8655, Reporting Agent Authorization. Rev.
Proc. 2003–69 modified and superseded.
ADMINISTRATIVE
Rev. Proc. 2007–39, page 1446.
Addition of section 102(a) to the no-rule rev. proc. This
procedure announces that the Service will not issue letter rul-
ings or determination letters on whether a transfer is a gift
within the meaning of section 102(a) of the Code. Rev. Proc.
2007–3 amplified.
Announcement 2007–58, page 1448.
This document contains corrections to final regulations
(T.D. 9319, 2007–18 I.R.B. 1041) regarding the limitations of
section 415 of the Code, including updates to the regulations
for numerous statutory changes since comprehensive final
regulations were last published under section 415.
June 18, 2007 2007–25 I.R.B.
The IRS Mission
Provide America’s taxpayers top quality service by helping applying the tax law with integrity and fairness to all.
them understand and meet their tax responsibilities and by
Introduction
The Internal Revenue Bulletin is the authoritative instrument of court decisions, rulings, and procedures must be considered,
the Commissioner of Internal Revenue for announcing official and Service personnel and others concerned are cautioned
rulings and procedures of the Internal Revenue Service and for against reaching the same conclusions in other cases unless
publishing Treasury Decisions, Executive Orders, Tax Conven- the facts and circumstances are substantially the same.
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
The Bulletin is divided into four parts as follows:
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis. Part I.—1986 Code.
This part includes rulings and decisions based on provisions of
It is the policy of the Service to publish in the Bulletin all sub- the Internal Revenue Code of 1986.
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod- Part II.—Treaties and Tax Legislation.
ify, or amend any of those previously published in the Bulletin. This part is divided into two subparts as follows: Subpart A,
All published rulings apply retroactively unless otherwise indi- Tax Conventions and Other Related Items, and Subpart B, Leg-
cated. Procedures relating solely to matters of internal man- islation and Related Committee Reports.
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published. 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
Revenue rulings represent the conclusions of the Service on the included in this part are Bank Secrecy Act Administrative Rul-
application of the law to the pivotal facts stated in the revenue ings. Bank Secrecy Act Administrative Rulings are issued by
ruling. In those based on positions taken in rulings to taxpayers the Department of the Treasury’s Office of the Assistant Sec-
or technical advice to Service field offices, identifying details retary (Enforcement).
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements. Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
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 The last Bulletin for each month includes a cumulative index
relied on, used, or cited as precedents by Service personnel in for the matters published during the preceding months. These
the disposition of other cases. In applying published rulings and monthly indexes are cumulated on a semiannual basis, and are
procedures, the effect of subsequent legislation, regulations, published in the last Bulletin of each semiannual period.
The contents 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.
2007–25 I.R.B. June 18, 2007
Place missing child here.
June 18, 2007 2007–25 I.R.B.
Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 72.—Annuities; (New Company) in an exchange that qual- In order to stop the marketing of se-
Certain Proceeds of ified for nonrecognition of gain or loss un- rial contracts that are designed to avoid
Endowment and Life der § 1035. The new contracts were also the rules applicable to modified endow-
Insurance Contracts MECs within the meaning of § 7702A. ment contracts, the conference agree-
Taxpayer received no consideration in the ment provides that all modified endow-
26 CFR 1.72 –1: Introduction. exchange. ment contracts issued by the same in-
(Also: § 7702A.)
surer (or affiliates) to the same poli-
Insurance companies; aggregation of LAW AND ANALYSIS cyholder during any 12-month period
multiple modified endowment contracts are to be aggregated for purposes of
(MECs). This ruling holds that if a tax- Section 1035 provides that no gain or determining the amount of any distri-
payer that owns multiple modified endow- loss is recognized on the exchange of a life bution that is includible in gross in-
ment contracts issued by the same insur- insurance contract for another life insur- come. In addition, all annuity contracts
ance company in the same calendar year ance contract, or for an endowment or an- issued by the same insurer (or affiliates)
exchanges some of those MECs for new nuity contract. Under § 1.1035–1 of the In- to the same policyholder during any
MECs issued by a second insurance com- come Tax Regulations, nonrecognition of 12-month period are to be aggregated
pany, the new contracts are not aggregated gain or loss on the exchange of life insur- for purposes of determining the amount
with the remaining contracts. ance contracts is limited to cases where the of any distribution that is includible in
policies exchanged relate to the same in- gross income. Finally, the Treasury De-
sured. partment is provided regulatory author-
Rev. Rul. 2007–38
Section 7702A defines a modified en- ity to prevent the avoidance of the rules
ISSUE dowment contract (MEC) as a contract that contained in section 72(e) through the
meets the requirement of § 7702 but fails serial purchase of contacts or otherwise.
If a taxpayer that owns multiple modi- to meet the 7-pay test of § 7702A(b), or H.R. Conf. Rep. No. 1104, 100th
fied endowment contracts (MECs) issued that is received in exchange for a contract Cong., 2d Sess. II–103 (1988), 1988–3
by the same insurance company in the that is a MEC. Under § 7702A(b), a con- C.B. 593. The provision was subse-
same calendar year exchanges some of tract fails to meet the 7-pay test if the ac- quently amended by the Omnibus Budget
those MECs for new MECs issued by a cumulated amount paid under the contract Reconciliation Act of 1989 (OBRA),
second insurance company, are the new at any time during the first seven contract Pub. L. No. 101–239, § 7815(a)(5),
contracts required to be aggregated with years exceeds the sum of the net level pre- 103 Stat. 2414 (1989), to strike the term
the remaining original contracts under miums that would have been paid on or be- “12-month period” and in its place insert
§ 72(e)(12) of the Internal Revenue Code? fore that time if the contract provided for “calendar year.” The OBRA conference
paid-up future benefits after the payment report reiterates that the provision applies
FACTS of seven level annual premiums. to contracts “that are issued by the same
Section 72(e)(10) provides that a MEC insurer (or affiliates.)” H. Conf. Rep. No.
In Year 1, Original Company, an insur- is subject to the rules of § 72(e)(2)(B) 386, 101st Cong., 1st Sess. 665 (1989).
ance company subject to tax under Part (which taxes non-annuity distribu- In the present case, the Original Con-
1 of subchapter L, issued to Taxpayer tions on an income-out-first basis) and tracts were issued to Taxpayer by the same
multiple life insurance contracts (Original § 72(e)(4)(A) (which generally treats company in the same calendar year and
Contracts) that were modified endowment loans, assignments, or pledges of any por- were, accordingly, aggregated in accor-
contracts (MECs) within the meaning of tion of the value of a MEC as non-annuity dance with § 72(e)(12). After the ex-
§ 7702A. The Original Contracts covered distributions). Further, under § 72(v), an change of some of the Original Contracts
the lives of employees, officers and direc- amount received under a MEC may be for New Contracts, the remaining Original
tors who were employed by Taxpayer at subject to a 10% additional tax. Contracts were still issued to Taxpayer by
the time the contracts were issued. Tax- Section 72(e)(12)(A)(i) provides that, the same company (Original Company) in
payer appropriately treated the Original for purposes of determining the amount the same calendar year (Year 1) and, ac-
Contracts as a single MEC under the au- that is includible in gross income under cordingly, are still treated as a single MEC.
thority of § 72(e)(11) (redesignated as § 72(e), all MECs issued by the same com- Likewise, the New Contracts received in
§ 72(e)(12) by the Pension Protection Act pany to the same policyholder during a cal- the exchange were issued to Taxpayer by
of 2006, Pub. L. No. 109–280, § 844(a), endar year are treated as a single MEC. the same company (New Company) in the
120 Stat. 780). Section 72(e)(12) was added to the Code same calendar year (Year 4) and, accord-
In Year 4, Taxpayer exchanged some by the Technical and Miscellaneous Rev- ingly, are also treated as a single MEC.
of the Original Contracts for new life in- enue Act of 1988 (TAMRA), § 5012(d)(2), The remaining Original Contracts and the
surance contracts (New Contracts) issued 1988–3 C.B. 324. The legislative history New Contracts are not aggregated with
by an unrelated life insurance company stated: each other, however, because they were
2007–25 I.R.B. 1420 June 18, 2007
not issued to Taxpayer by the same com- income tax under section 501(a) of the an elective public office, whether such of-
pany in the same calendar year. The result Code as an organization described in sec- fice be national, State, or local. The reg-
in this case would be the same if, instead tion 501(c)(3) has participated in, or inter- ulations further provide that activities that
of individually issued MECs, the Origi- vened in (including the publishing or dis- constitute participation or intervention in a
nal Contracts and New Contracts were evi- tributing of statements), any political cam- political campaign on behalf of or in op-
denced by certificates that were issued un- paign on behalf of (or in opposition to) any position to a candidate include, but are not
der a group contract or master contract and candidate for public office. limited to, the publication or distribution
that were treated as separate contracts for of written statements or the making of oral
purposes of §§ 817(h), 7702, and 7702A. Rev. Rul. 2007–41 statements on behalf of or in opposition to
such a candidate.
HOLDING Organizations that are exempt from in- Whether an organization is participat-
come tax under section 501(a) of the In- ing or intervening, directly or indirectly,
If a taxpayer that owns multiple modi- ternal Revenue Code as organizations de- in any political campaign on behalf of or
fied endowment contracts (MECs) issued scribed in section 501(c)(3) may not par- in opposition to any candidate for public
by the same insurance company in the ticipate in, or intervene in (including the office depends upon all of the facts and
same calendar year exchanges some of publishing or distributing of statements), circumstances of each case. For exam-
those MECs for new MECs issued by a any political campaign on behalf of (or in ple, certain “voter education” activities, in-
second insurance company, the new con- opposition to) any candidate for public of- cluding preparation and distribution of cer-
tracts are not required to be aggregated fice. tain voter guides, conducted in a non-par-
with the remaining original contracts un- tisan manner may not constitute prohibited
der § 72(e)(12). ISSUE political activities under section 501(c)(3)
of the Code. Other so-called “voter ed-
DRAFTING INFORMATION In each of the 21 situations described ucation” activities may be proscribed by
below, has the organization participated or the statute. Rev. Rul. 78–248, 1978–1
The principal author of this revenue rul- intervened in a political campaign on be- C.B. 154, contrasts several situations il-
ing is Melissa S. Luxner of the Office of half of (or in opposition to) any candidate lustrating when an organization that pub-
Associate Chief Counsel (Financial Insti- for public office within the meaning of sec- lishes a compilation of candidate positions
tutions & Products). For further infor- tion 501(c)(3)? or voting records has or has not engaged
mation regarding this revenue ruling, con- in prohibited political activities based on
tact Ms. Luxner at (202) 622–3970 (not a LAW whether the questionnaire used to solicit
toll-free call). candidate positions or the voters guide it-
Section 501(c)(3) provides for the ex- self shows a bias or preference in con-
emption from federal income tax of organi- tent or structure with respect to the views
Section 430.—Minimum zations organized and operated exclusively of a particular candidate. See also Rev.
Funding Standards for for charitable or educational purposes, no Rul. 80–282, 1980–2 C.B. 178, amplify-
Single-Employer Defined substantial part of the activities of which ing Rev. Rul. 78–248 regarding the timing
Benefit Pension Plans is carrying on propaganda, or otherwise at- and distribution of voter education materi-
tempting to influence legislation (except as als.
Procedures with respect to applications for re- otherwise provided in section 501(h)), and The presentation of public forums or
quests for letter rulings on substitute mortality tables
which does not participate in, or intervene debates is a recognized method of edu-
under section 430(h)(3)(C) of the Code and section
303(h)(3)(C) of the Employee Retirement Income in (including the publishing or distributing cating the public. See Rev. Rul. 66–256,
Security Act of 1974 are set forth. See Rev. Proc. of statements), any political campaign on 1966–2 C.B. 210 (nonprofit organization
2007-37, page 1433. behalf of (or in opposition to) any candi- formed to conduct public forums at which
date for public office. lectures and debates on social, political,
Section 1.501(c)(3)–1(c)(3)(i) of the In- and international matters are presented
Section 501.—Exemption come Tax Regulations states that an organ- qualifies for exemption from federal in-
From Tax on Corporations, ization is not operated exclusively for one come tax under section 501(c)(3)). Pro-
Certain Trusts, etc. or more exempt purposes if it is an “action” viding a forum for candidates is not, in
organization. and of itself, prohibited political activity.
26 CFR 1.501(c)(3)–1: Organizations organized and Section 1.501(c)(3)–1(c)(3)(iii) of the See Rev. Rul. 74–574, 1974–2 C.B. 160
operated for religious, charitable, scientific, testing
for public safety, literary or educational purposes, or regulations defines an “action” organiza- (organization operating a broadcast station
for the prevention of cruelty to children or animals. tion as an organization that participates or is not participating in political campaigns
intervenes, directly or indirectly, in any po- on behalf of public candidates by pro-
Exempt organizations; political cam- litical campaign on behalf of or in opposi- viding reasonable amounts of air time
paigns. This ruling provides 21 examples tion to any candidate for public office. The equally available to all legally qualified
illustrating the application of the facts and term “candidate for public office” is de- candidates for election to public office
circumstances to be considered to deter- fined as an individual who offers himself, in compliance with the reasonable access
mine whether an organization exempt from or is proposed by others, as a contestant for provisions of the Communications Act of
June 18, 2007 1421 2007–25 I.R.B.
1934). However, a forum for candidates Situation 1. B, a section 501(c)(3) or- 501(c)(3) organization, and is well known
could be operated in a manner that would ganization that promotes community in- in the community. With the permission
show a bias or preference for or against a volvement, sets up a booth at the state fair of five prominent healthcare industry lead-
particular candidate. This could be done, where citizens can register to vote. The ers, including President A, who have per-
for example, through biased questioning signs and banners in and around the booth sonally endorsed Candidate T, Candidate T
procedures. On the other hand, a forum give only the name of the organization, the publishes a full page ad in the local news-
held for the purpose of educating and in- date of the next upcoming statewide elec- paper listing the names of the five lead-
forming the voters, which provides fair tion, and notice of the opportunity to regis- ers. President A is identified in the ad as
and impartial treatment of candidates, ter. No reference to any candidate or politi- the CEO of Hospital J. The ad states, “Ti-
and which does not promote or advance cal party is made by the volunteers staffing tles and affiliations of each individual are
one candidate over another, would not the booth or in the materials available at provided for identification purposes only.”
constitute participation or intervention in the booth, other than the official voter reg- The ad is paid for by Candidate T’s cam-
any political campaign on behalf of or istration forms which allow registrants to paign committee. Because the ad was not
in opposition to any candidate for public select a party affiliation. B is not engaged paid for by Hospital J, the ad is not oth-
office. See Rev. Rul. 86–95, 1986–2 C.B. in political campaign intervention when it erwise in an official publication of Hos-
73 (organization that proposes to educate operates this voter registration booth. pital J, and the endorsement is made by
voters by conducting a series of public Situation 2. C is a section 501(c)(3) or- President A in a personal capacity, the ad
forums in congressional districts during ganization that educates the public on en- does not constitute campaign intervention
congressional election campaigns is not vironmental issues. Candidate G is run- by Hospital J.
participating in a political campaign on ning for the state legislature and an impor- Situation 4. President B is the presi-
behalf of any candidate due to the neutral tant element of her platform is challenging dent of University K, a section 501(c)(3)
form and content of its proposed forums). the environmental policies of the incum- organization. University K publishes a
bent. Shortly before the election, C sets up monthly alumni newsletter that is dis-
ANALYSIS OF FACTUAL a telephone bank to call registered voters in tributed to all alumni of the university.
SITUATIONS the district in which Candidate G is seek- In each issue, President B has a column
ing election. In the phone conversations, titled “My Views.” The month before the
The 21 factual situations appear be-
C’s representative tells the voter about the election, President B states in the “My
low under specific subheadings relating to
importance of environmental issues and Views” column, “It is my personal opin-
types of activities. In each of the factual
asks questions about the voter’s views on ion that Candidate U should be reelected.”
situations, all the facts and circumstances
these issues. If the voter appears to agree For that one issue, President B pays from
are considered in determining whether an
with the incumbent’s position, C’s repre- his personal funds the portion of the cost
organization’s activities result in political
sentative thanks the voter and ends the call. of the newsletter attributable to the “My
campaign intervention. Note that each of
If the voter appears to agree with Candi- Views” column. Even though he paid part
these situations involves only one type of
date G’s position, C’s representative re- of the cost of the newsletter, the newsletter
activity. In the case of an organization that
minds the voter about the upcoming elec- is an official publication of the univer-
combines one or more types of activity,
tion, stresses the importance of voting in sity. Because the endorsement appeared
the interaction among the activities may
the election and offers to provide trans- in an official publication of University K,
affect the determination of whether or not
portation to the polls. C is engaged in po- it constitutes campaign intervention by
the organization is engaged in political
litical campaign intervention when it con- University K.
campaign intervention.
ducts this get-out-the-vote drive. Situation 5. Minister C is the minis-
Voter Education, Voter Registration and ter of Church L, a section 501(c)(3) organ-
Get Out the Vote Drives Individual Activity by Organization ization and Minister C is well known in
Leaders the community. Three weeks before the
Section 501(c)(3) organizations are election, he attends a press conference at
permitted to conduct certain voter educa- The political campaign intervention Candidate V’s campaign headquarters and
tion activities (including the presentation prohibition is not intended to restrict free states that Candidate V should be reelected.
of public forums and the publication of expression on political matters by leaders Minister C does not say he is speaking on
voter education guides) if they are car- of organizations speaking for themselves, behalf of Church L. His endorsement is re-
ried out in a non-partisan manner. In as individuals. Nor are leaders prohib- ported on the front page of the local news-
addition, section 501(c)(3) organizations ited from speaking about important issues paper and he is identified in the article as
may encourage people to participate in the of public policy. However, for their or- the minister of Church L. Because Minister
electoral process through voter registration ganizations to remain tax exempt under C did not make the endorsement at an offi-
and get-out-the-vote drives, conducted in section 501(c)(3), leaders cannot make cial church function, in an official church
a non-partisan manner. On the other hand, partisan comments in official organization publication or otherwise use the church’s
voter education or registration activities publications or at official functions of the assets, and did not state that he was speak-
conducted in a biased manner that favors organization. ing as a representative of Church L, his ac-
(or opposes) one or more candidates is Situation 3. President A is the Chief tions do not constitute campaign interven-
prohibited. Executive Officer of Hospital J, a section tion by Church L.
2007–25 I.R.B. 1422 June 18, 2007
Situation 6. Chairman D is the chair- manner of presentation for both speakers is his opening remarks at each of the meet-
man of the Board of Directors of M, a sec- otherwise neutral. ings where one of the candidates is speak-
tion 501(c)(3) organization that educates When an organization invites several ing. Society N’s actions do not constitute
the public on conservation issues. Dur- candidates for the same office to speak political campaign intervention.
ing a regular meeting of M shortly before at a public forum, factors in determining Situation 9. Minister F is the minister
the election, Chairman D spoke on a num- whether the forum results in political cam- of Church O, a section 501(c)(3) organi-
ber of issues, including the importance of paign intervention include the following: zation. The Sunday before the November
voting in the upcoming election, and con- election, Minister F invites Senate Candi-
cluded by stating, “It is important that you • Whether questions for the candidates date X to preach to her congregation dur-
all do your duty in the election and vote are prepared and presented by an inde- ing worship services. During his remarks,
for Candidate W.” Because Chairman D’s pendent nonpartisan panel, Candidate X states, “I am asking not only
remarks indicating support for Candidate • Whether the topics discussed by the for your votes, but for your enthusiasm and
W were made during an official organiza- candidates cover a broad range of is- dedication, for your willingness to go the
tion meeting, they constitute political cam- sues that the candidates would address extra mile to get a very large turnout on
paign intervention by M. if elected to the office sought and are Tuesday.” Minister F invites no other can-
of interest to the public, didate to address her congregation during
Candidate Appearances • Whether each candidate is given an the Senatorial campaign. Because these
equal opportunity to present his or her activities take place during official church
Depending on the facts and circum- view on each of the issues discussed, services, they are attributed to Church O.
stances, an organization may invite po- • Whether the candidates are asked to By selectively providing church facilities
litical candidates to speak at its events agree or disagree with positions, agen- to allow Candidate X to speak in support
without jeopardizing its tax-exempt sta- das, platforms or statements of the or- of his campaign, Church O’s actions con-
tus. Political candidates may be invited ganization, and stitute political campaign intervention.
in their capacity as candidates, or in their • Whether a moderator comments on
individual capacity (not as a candidate). the questions or otherwise implies Candidate Appearances Where Speaking
Candidates may also appear without an approval or disapproval of the candi- or Participating as a Non-Candidate
invitation at organization events that are dates.
Candidates may also appear or speak
open to the public.
at organization events in a non-candidate
When a candidate is invited to speak at Situation 7. President E is the presi-
capacity. For instance, a political candi-
an organization event in his or her capac- dent of Society N, a historical society that
date may be a public figure who is invited
ity as a political candidate, factors in de- is a section 501(c)(3) organization. In the
to speak because he or she: (a) currently
termining whether the organization partici- month prior to the election, President E
holds, or formerly held, public office; (b)
pated or intervened in a political campaign invites the three Congressional candidates
is considered an expert in a non political
include the following: for the district in which Society N is lo-
field; or (c) is a celebrity or has led a dis-
cated to address the members, one each at
tinguished military, legal, or public service
• Whether the organization provides an a regular meeting held on three successive
career. A candidate may choose to attend
equal opportunity to participate to po- weeks. Each candidate is given an equal
an event that is open to the public, such
litical candidates seeking the same of- opportunity to address and field questions
as a lecture, concert or worship service.
fice; on a wide variety of topics from the mem-
The candidate’s presence at an organiza-
• Whether the organization indicates any bers. Society N’s publicity announcing the
tion-sponsored event does not, by itself,
support for or opposition to the can- dates for each of the candidate’s speeches
cause the organization to be engaged in po-
didate (including candidate introduc- and President E’s introduction of each can-
litical campaign intervention. However, if
tions and communications concerning didate include no comments on their qual-
the candidate is publicly recognized by the
the candidate’s attendance); and ifications or any indication of a preference
organization, or if the candidate is invited
• Whether any political fundraising oc- for any candidate. Society N’s actions do
to speak, factors in determining whether
curs. not constitute political campaign interven-
the candidate’s appearance results in polit-
tion.
ical campaign intervention include the fol-
In determining whether candidates are Situation 8. The facts are the same as in
lowing:
given an equal opportunity to participate, Situation 7 except that there are four can-
the nature of the event to which each can- didates in the race rather than three, and
didate is invited will be considered, in ad- one of the candidates declines the invita-
• Whether the individual is chosen to
speak solely for reasons other than can-
dition to the manner of presentation. For tion to speak. In the publicity announc-
didacy for public office;
example, an organization that invites one ing the dates for each of the candidate’s
candidate to speak at its well attended an- speeches, Society N includes a statement
• Whether the individual speaks only in
a non-candidate capacity;
nual banquet, but invites the opposing can- that the order of the speakers was deter-
didate to speak at a sparsely attended gen- mined at random and the fourth candidate
• Whether either the individual or any
representative of the organization
eral meeting, will likely have violated the declined the Society’s invitation to speak.
political campaign prohibition, even if the President E makes the same statement in
June 18, 2007 1423 2007–25 I.R.B.
makes any mention of his or her can- X prints the following: “Alumnus Q, class • Whether the statement identifies one
didacy or the election; of ‘XX is running for mayor of Metropo- or more candidates for a given public
• Whether any campaign activity occurs lis.” The newsletter does not contain any office;
in connection with the candidate’s at- reference to this election or to Alumnus • Whether the statement expresses ap-
tendance; Q’s candidacy other than this statement of proval or disapproval for one or more
• Whether the organization maintains fact. University X has not intervened in a candidates’ positions and/or actions;
a nonpartisan atmosphere on the political campaign. • Whether the statement is delivered
premises or at the event where the Situation 13. Mayor G attends a con- close in time to the election;
candidate is present; and cert performed by Symphony S, a section • Whether the statement makes refer-
• Whether the organization clearly indi- 501(c)(3) organization, in City Park. The ence to voting or an election;
cates the capacity in which the candi- concert is free and open to the public. • Whether the issue addressed in the
date is appearing and does not mention Mayor G is a candidate for reelection, and communication has been raised as an
the individual’s political candidacy or the concert takes place after the primary issue distinguishing candidates for a
the upcoming election in the communi- and before the general election. During given office;
cations announcing the candidate’s at- the concert, the chairman of S’s board ad- • Whether the communication is part of
tendance at the event. dresses the crowd and says, “I am pleased an ongoing series of communications
to see Mayor G here tonight. Without his by the organization on the same issue
Situation 10. Historical society P is a support, these free concerts in City Park that are made independent of the tim-
section 501(c)(3) organization. Society P would not be possible. We will need his ing of any election; and
is located in the state capital. President G help if we want these concerts to continue • Whether the timing of the communi-
is the president of Society P and custom- next year so please support Mayor G in cation and identification of the candi-
arily acknowledges the presence of any November as he has supported us.” As a date are related to a non-electoral event
public officials present during meetings. result of these remarks, Symphony S has such as a scheduled vote on specific
During the state gubernatorial race, Lieu- engaged in political campaign interven- legislation by an officeholder who also
tenant Governor Y, a candidate, attends a tion. happens to be a candidate for public of-
meeting of the historical society. Presi- fice.
dent G acknowledges the Lieutenant Gov- Issue Advocacy vs. Political Campaign
ernor’s presence in his customary manner, Intervention A communication is particularly at risk
saying, “We are happy to have joining us of political campaign intervention when it
Section 501(c)(3) organizations may
this evening Lieutenant Governor Y.” Pres- makes reference to candidates or voting in
take positions on public policy issues,
ident G makes no reference in his welcome a specific upcoming election. Neverthe-
including issues that divide candidates
to the Lieutenant Governor’s candidacy or less, the communication must still be con-
in an election for public office. How-
the election. Society P has not engaged in sidered in context before arriving at any
ever, section 501(c)(3) organizations must
political campaign intervention as a result conclusions.
avoid any issue advocacy that functions
of President G’s actions. Situation 14. University O, a section
as political campaign intervention. Even
Situation 11. Chairman H is the chair- 501(c)(3) organization, prepares and fi-
if a statement does not expressly tell an
man of the Board of Hospital Q, a sec- nances a full page newspaper advertise-
audience to vote for or against a specific
tion 501(c)(3) organization. Hospital Q is ment that is published in several large cir-
candidate, an organization delivering the
building a new wing. Chairman H invites culation newspapers in State V shortly be-
statement is at risk of violating the polit-
Congressman Z, the representative for the fore an election in which Senator C is a
ical campaign intervention prohibition if
district containing Hospital Q, to attend candidate for nomination in a party pri-
there is any message favoring or opposing
the groundbreaking ceremony for the new mary. Senator C represents State V in
a candidate. A statement can identify a
wing. Congressman Z is running for re- the United States Senate. The advertise-
candidate not only by stating the candi-
election at the time. Chairman H makes no ment states that S. 24, a pending bill in the
date’s name but also by other means such
reference in her introduction to Congress- United States Senate, would provide addi-
as showing a picture of the candidate,
man Z’s candidacy or the election. Con- tional opportunities for State V residents
referring to political party affiliations, or
gressman Z also makes no reference to his to attend college, but Senator C has op-
other distinctive features of a candidate’s
candidacy or the election and does not do posed similar measures in the past. The ad-
platform or biography. All the facts and
any political campaign fundraising while vertisement ends with the statement “Call
circumstances need to be considered to
at Hospital Q. Hospital Q has not inter- or write Senator C to tell him to vote for
determine if the advocacy is political cam-
vened in a political campaign. S. 24.” Educational issues have not been
paign intervention.
Situation 12. University X is a sec- raised as an issue distinguishing Senator C
Key factors in determining whether a
tion 501(c)(3) organization. X publishes an from any opponent. S. 24 is scheduled for
communication results in political cam-
alumni newsletter on a regular basis. In- a vote in the United States Senate before
paign intervention include the following:
dividual alumni are invited to send in up- the election, soon after the date that the
dates about themselves which are printed advertisement is published in the newspa-
in each edition of the newsletter. After re- pers. Even though the advertisement ap-
ceiving an update letter from Alumnus Q, pears shortly before the election and iden-
2007–25 I.R.B. 1424 June 18, 2007
tifies Senator C’s position on the issue as coincide with a non election event such as
contrary to O’s position, University O has a legislative vote or other major legislative • Whether the good, service or facility
not violated the political campaign inter- action on that issue, and takes a position is available to candidates in the same
vention prohibition because the advertise- on an issue that the opponent has used to election on an equal basis,
ment does not mention the election or the distinguish himself from Governor E. • Whether the good, service, or facility
candidacy of Senator C, education issues Situation 16. Candidate A and Candi- is available only to candidates and not
have not been raised as distinguishing Sen- date B are candidates for the state senate to the general public,
ator C from any opponent, and the tim- in District W of State X. The issue of State • Whether the fees charged to candidates
ing of the advertisement and the identifi- X funding for a new mass transit project in are at the organization’s customary and
cation of Senator C are directly related to District W is a prominent issue in the cam- usual rates, and
the specifically identified legislation Uni- paign. Both candidates have spoken out on • Whether the activity is an ongoing ac-
versity O is supporting and appears imme- the issue. Candidate A supports funding tivity of the organization or whether it
diately before the United States Senate is the new mass transit project. Candidate is conducted only for a particular can-
scheduled to vote on that particular legis- B opposes the project and supports State didate.
lation. The candidate identified, Senator X funding for highway improvements in-
C, is an officeholder who is in a position stead. P is the executive director of C, Situation 17. Museum K is a section
to vote on the legislation. a section 501(c)(3) organization that pro- 501(c)(3) organization. It owns an historic
Situation 15. Organization R, a section motes community development in District building that has a large hall suitable for
501(c)(3) organization that educates the W. At C’s annual fundraising dinner in hosting dinners and receptions. For sev-
public about the need for improved public District W, which takes place in the month eral years, Museum K has made the hall
education, prepares and finances a radio before the election in State X, P gives a available for rent to members of the pub-
advertisement urging an increase in state lengthy speech about community develop- lic. Standard fees are set for renting the
funding for public education in State X, ment issues including the transportation is- hall based on the number of people in at-
which requires a legislative appropriation. sues. P does not mention the name of any tendance, and a number of different orga-
Governor E is the governor of State X. The candidate or any political party. However, nizations have rented the hall. Museum K
radio advertisement is first broadcast on at the conclusion of the speech, P makes rents the hall on a first come, first served
several radio stations in State X beginning the following statement, “For those of you basis. Candidate P rents Museum K’s so-
shortly before an election in which Gov- who care about quality of life in District W cial hall for a fundraising dinner. Candi-
ernor E is a candidate for re-election. The and the growing traffic congestion, there date P’s campaign pays the standard fee
advertisement is not part of an ongoing is a very important choice coming up next for the dinner. Museum K is not involved
series of substantially similar advocacy month. We need new mass transit. More in political campaign intervention as a re-
communications by Organization R on highway funding will not make a differ- sult of renting the hall to Candidate P for
the same issue. The advertisement cites ence. You have the power to relieve the use as the site of a campaign fundraising
numerous statistics indicating that pub- congestion and improve your quality of dinner.
lic education in State X is under funded. life in District W. Use that power when Situation 18. Theater L is a section
While the advertisement does not say you go to the polls and cast your vote in 501(c)(3) organization. It maintains a
anything about Governor E’s position on the election for your state senator.” C has mailing list of all of its subscribers and
funding for public education, it ends with violated the political campaign interven- contributors. Theater L has never rented
“Tell Governor E what you think about our tion as a result of P’s remarks at C’s offi- its mailing list to a third party. Theater L
under-funded schools.” In public appear- cial function shortly before the election, in is approached by the campaign committee
ances and campaign literature, Governor which P referred to the upcoming election of Candidate Q, who supports increased
E’s opponent has made funding of pub- after stating a position on an issue that is a funding for the arts. Candidate Q’s cam-
lic education an issue in the campaign prominent issue in a campaign that distin- paign committee offers to rent Theater L’s
by focusing on Governor E’s veto of an guishes the candidates. mailing list for a fee that is comparable
income tax increase the previous year to to fees charged by other similar organi-
increase funding of public education. At Business Activity zations. Theater L rents its mailing list
the time the advertisement is broadcast, to Candidate Q’s campaign committee.
no legislative vote or other major legisla- The question of whether an activity Theater L declines similar requests from
tive activity is scheduled in the State X constitutes participation or intervention campaign committees of other candidates.
legislature on state funding of public ed- in a political campaign may also arise in Theater L has intervened in a political
ucation. Organization R has violated the the context of a business activity of the campaign.
political campaign prohibition because the organization, such as selling or renting of
advertisement identifies Governor E, ap- mailing lists, the leasing of office space, or Web Sites
pears shortly before an election in which the acceptance of paid political advertis-
Governor E is a candidate, is not part of ing. In this context, some of the factors to The Internet has become a widely used
an ongoing series of substantially similar be considered in determining whether the communications tool. Section 501(c)(3)
advocacy communications by Organiza- organization has engaged in political cam- organizations use their own web sites to
tion R on the same issue, is not timed to paign intervention include the following: disseminate statements and information.
June 18, 2007 1425 2007–25 I.R.B.
They also routinely link their web sites to includes all candidates for a particular of- HOLDINGS
web sites maintained by other organiza- fice.
tions as a way of providing additional in- Situation 20. Hospital N, a section In situations 2, 4, 6, 9, 13, 15, 16, 18
formation that the organizations believe is 501(c)(3) organization, maintains a web and 21, the organization intervened in a
useful or relevant to the public. site that includes such information as political campaign within the meaning of
A web site is a form of communication. medical staff listings, directions to Hos- section 501(c)(3). In situations 1, 3, 5,
If an organization posts something on its pital N, and descriptions of its specialty 7, 8, 10, 11, 12, 14, 17, 19 and 20, the
web site that favors or opposes a candidate health programs, major research projects, organization did not intervene in a political
for public office, the organization will be and other community outreach programs. campaign within the meaning of section
treated the same as if it distributed printed On one page of the web site, Hospital 501(c)(3)
material, oral statements or broadcasts that N describes its treatment program for a
favored or opposed a candidate. particular disease. At the end of the page, DRAFTING INFORMATION
An organization has control over it includes a section of links to other web
whether it establishes a link to another sites titled “More Information.” These The principal author of this revenue
site. When an organization establishes links include links to other hospitals that ruling is Judith Kindell of Exempt Orga-
a link to another web site, the organiza- have treatment programs for this disease, nizations, Tax Exempt and Government
tion is responsible for the consequences research organizations seeking cures for Entities Division. For further informa-
of establishing and maintaining that link, that disease, and articles about treatment tion regarding this revenue ruling, contact
even if the organization does not have programs. This section includes a link to Ms. Kindell at (202) 283–8964 (not a
control over the content of the linked site. an article on the web site of O, a major toll-free call).
Because the linked content may change national newspaper, praising Hospital N’s
over time, an organization may reduce the treatment program for the disease. The
risk of political campaign intervention by page containing the article on O’s web site Section 707.—Transactions
monitoring the linked content and adjust- contains no reference to any candidate or Between Partner and
ing the links accordingly. election and has no direct links to candi- Partnership
Links to candidate-related material, by date or election information. Elsewhere
26 CFR 1.707–1: Transactions between partner and
themselves, do not necessarily constitute on O’s web site, there is a page displaying partnership.
political campaign intervention. All the editorials that O has published. Several
facts and circumstances must be taken into of the editorials endorse candidates in an Partnership property; transfer. This
account when assessing whether a link election that has not yet occurred. Hos- ruling concludes that a transfer of partner-
produces that result. The facts and cir- pital N has not intervened in a political ship property to a partner in satisfaction of
cumstances to be considered include, but campaign by maintaining the link to the a guaranteed payment under section 707(c)
are not limited to, the context for the link article on O’s web site because the link of the Code is a sale or exchange under sec-
on the organization’s web site, whether is provided for the exempt purpose of tion 1001, and not a distribution under sec-
all candidates are represented, any exempt educating the public about Hospital N’s tion 731.
purpose served by offering the link, and programs and neither the context for the
the directness of the links between the link, nor the relationship between Hospital Rev. Rul. 2007–40
organization’s web site and the web page N and O nor the arrangement of the links
that contains material favoring or oppos- going from Hospital N’s web site to the ISSUE
ing a candidate for public office. endorsement on O’s web site indicate that
Situation 19. M, a section 501(c)(3) or- Hospital N was favoring or opposing any Is a transfer of partnership property to
ganization, maintains a web site and posts candidate. a partner in satisfaction of a guaranteed
an unbiased, nonpartisan voter guide that Situation 21. Church P, a section payment under section 707(c) a sale or ex-
is prepared consistent with the principles 501(c)(3) organization, maintains a web change under section 1001, or a distribu-
discussed in Rev. Rul. 78–248. For each site that includes such information as tion under section 731?
candidate covered in the voter guide, M biographies of its ministers, times of
includes a link to that candidate’s official services, details of community outreach FACTS
campaign web site. The links to the can- programs, and activities of members of
didate web sites are presented on a consis- its congregation. B, a member of the con- Partnership purchased Blackacre for
tent neutral basis for each candidate, with gregation of Church P, is running for a $500x. A, a partner in Partnership, is
text saying “For more information on Can- seat on the town council. Shortly before entitled to a guaranteed payment under
didate X, you may consult [URL].” M has the election, Church P posts the follow- section 707(c) of $800x. Subsequently,
not intervened in a political campaign be- ing message on its web site, “Lend your when the fair market value of Blackacre is
cause the links are provided for the exempt support to B, your fellow parishioner, $800x and Partnership’s adjusted basis in
purpose of educating voters and are pre- in Tuesday’s election for town council.” Blackacre is $500x, Partnership transfers
sented in a neutral, unbiased manner that Church P has intervened in a political Blackacre to A in satisfaction of the guar-
campaign on behalf of B. anteed payment to A.
2007–25 I.R.B. 1426 June 18, 2007
LAW AND ANALYSIS sale or other disposition of property shall payment to A, the difference between the
be the sum of any money received plus the adjusted basis of the property ($500x) to
Section 731(b) provides that no gain or fair market value of the property (other the partnership and the property’s fair mar-
loss shall be recognized to a partnership than money) received. ket value ($800x).
on a distribution to a partner of property, A taxpayer that conveys appreciated or
including money. depreciated property in satisfaction of an HOLDING
Section 707(c) provides that, to the ex- obligation, or in exchange for the perfor-
A transfer of partnership property to a
tent determined without regard to the in- mance of services, recognizes gain or loss
partner in satisfaction of a guaranteed pay-
come of the partnership, payments to a equal to the difference between the basis in
ment under section 707(c) is a sale or ex-
partner for services or for the use of capital the distributed property and the property’s
change under section 1001, and not a dis-
are considered as made to one who is not a fair market value. See, e.g., International
tribution under section 731.
member of the partnership, but only for the Freighting Corp., Inc. v. Commissioner,
purposes of § 61(a) (relating to gross in- 135 F.2d 310 (2d Cir. 1943), United States DRAFTING INFORMATION
come) and, subject to § 263, for purposes v. General Shoe Corp., 282 F.2d 9 (6th Cir.
of § 162(a) (relating to trade or business 1960). The principal author of this revenue rul-
expenses). A transfer of partnership property in ing is Jason T. Smyczek of the Office of the
Section 61(a)(3) provides the general satisfaction of a partnership’s obligation to Associate Chief Counsel (Passthroughs
rule that gross income includes gains de- make a guaranteed payment under section and Special Industries). For further in-
rived from dealings in property. In addi- 707(c) is a sale or exchange under sec- formation regarding this revenue ruling,
tion, section 1001(a) provides that the gain tion 1001. Because the transfer is a sale contact Mr. Smyczek at (202) 622–3050
from the sale or other disposition of prop- or exchange under section 1001, it is not (not a toll-free call).
erty shall be the excess of the amount re- a distribution within the meaning of sec-
alized over the adjusted basis provided in tion 731. Accordingly, the nonrecognition
section 1011 for determining gain, and the rule in section 731(b) does not apply to the
loss shall be the excess of the adjusted ba- transfer.
sis over the amount realized. Partnership realizes a $300x gain when
Section 1001(b) further provides, in Partnership transfers Blackacre in satis-
part, that the amount realized from the faction of its section 707(c) guaranteed
June 18, 2007 1427 2007–25 I.R.B.
Part III. Administrative, Procedural, and Miscellaneous
Treatment Under Section regulations under section 367(b) will make after May 31, 2007. The regulations de-
367(b) of Property Used adjustments with respect to P and S that scribed in this notice will not, however, ap-
to Purchase Parent Stock will have the effect of a distribution of ply to a transaction that was completed on
property from S to P under section 301(c). or after May 31, 2007, if the reorganiza-
From Parent Shareholders The amount of the distribution shall equal tion was entered into pursuant to a written
in Certain Triangular the amount of money plus the fair market agreement that was (subject to customary
Reorganizations value of other property transferred from S conditions) binding before May 31, 2007
to P’s shareholders in exchange for the P and all times thereafter, but only to the ex-
Notice 2007–48 stock used to acquire the stock or assets of tent that: (1) S acquired the P stock to be
T. Therefore, the regulations will require, used in the reorganization prior to May 31,
SECTION 1. OVERVIEW as appropriate, an inclusion in P’s gross in- 2007, or (2) S had a commitment to ac-
come as a dividend, a reduction in P’s basis quire the P stock to be used in the reorga-
On September 22, 2006, the Internal in its S stock (or, as appropriate, T stock), nization from an unrelated party pursuant
Revenue Service (IRS) and the Trea- and the recognition of gain by P from the to a written agreement that was (subject to
sury Department (Treasury) issued Notice sale or exchange of property. customary conditions) binding before May
2006–85, 2006–41 I.R.B. 677, to address The adjustments also will provide, as 31, 2007 and at all times thereafter, or pur-
certain transactions involving foreign cor- appropriate, that the amount of property suant to a tender offer announced prior to
porations where a subsidiary acquires deemed distributed to P is considered May 31, 2007 that is subject to section
stock of its parent from its parent for use to be contributed by P to S immedi- 14(d) of the Securities and Exchange Act
in a triangular reorganization. Comments ately thereafter and therefore increases of 1934 [15 U.S.C. 78n(d)(1)] and Regu-
were requested in section 7 of that notice P’s basis in S. See, e.g., Treas. Reg. lation 14(D) (17 CFR 240.14d–1 through
regarding similar transactions, including § 1.367(b)–2(e)(3)(ii). 240.14d–101) or that is subject to compa-
transactions where a subsidiary acquires Finally, the regulations will provide for rable foreign laws.
stock of its parent from a person unrelated appropriate corresponding adjustments to No inference is intended as to the treat-
to its parent (such as from the public on be made, such as a reduction of S’s earn- ment of transactions described herein un-
the open market). ings and profits as a result of the distribu- der current law.
For reasons similar to those discussed in tion (consistent with the principles of sec-
section 2 of Notice 2006–85, the IRS and tion 312). SECTION 4. COMMENTS
Treasury believe that taxpayers’ character- The section 367(b) adjustments de-
ization of these transactions, as well as The IRS and Treasury request com-
scribed above shall be made prior to the
other transactions involving acquisitions ments on the regulations to be issued
application of other provisions. For ex-
from related parties, raises significant pol- under this notice and continue to request
ample, after giving effect to the 367(b)
icy concerns. Accordingly, this notice am- comments on those issues discussed in
adjustments, S’s purchase and transfer of
plifies Notice 2006–85 by announcing that section 7 of Notice 2006–85, including,
P stock will then be taken into account un-
the IRS and Treasury will issue regula- for example, any issues regarding the
der generally applicable rules, including
tions under section 367(b) of the Internal source and timing of the adjustments to be
sections 304, 358, and 368.
Revenue Code to address these and simi- made with respect to P and S.
The regulations will address similar
lar transactions. transactions in which S acquires the P SECTION 5. EFFECT ON OTHER
stock used in the reorganization from a DOCUMENTS
SECTION 2. REGULATIONS TO BE related party that purchased the P stock
ISSUED UNDER SECTION 367(b) in a related transaction. The regulations Notice 2006–85 is amplified.
also will include a rule that takes into
The definitions provided in section 1 of SECTION 6. DRAFTING
account the earnings and profits of other
Notice 2006–85 also apply for purposes of INFORMATION
corporations, as appropriate, if one of the
this notice.
principal purposes of creating, organizing,
The regulations will apply to triangu- The principal author of this notice
or funding S is to avoid the adjustments
lar reorganizations where P or S (or both) is Daniel McCall of the Office of As-
described in this notice or Notice 2006–85.
is foreign and, pursuant to the reorganiza- sociate Chief Counsel (International).
See, e.g., Treas. Reg. §§ 1.304–4T and
tion, S acquires from one or more P share- However, other personnel from the IRS
1.956–1T(b)(4).
holders, in exchange for property, all or a and Treasury participated in its develop-
portion of the P stock that is used to ac- SECTION 3. EFFECTIVE DATE ment. For further information regarding
quire the stock or assets of T (T could be this notice, contact Mr. McCall at (202)
either related or unrelated to P and S be- The regulations described in this notice 622–3860 (not a toll-free call).
fore the transaction). In such a case, the will apply to transactions occurring on or
2007–25 I.R.B. 1428 June 18, 2007
Covered Employees Under amended disclosure rules altered the com- position and four officers based on their
Section 162(m)(3) position of the group of executives that level of compensation.
are covered by the disclosure rules. Like Under § 162(m)(3) and § 1.162–27(c)
Notice 2007–49 the pre-amendment disclosure rules (“old (2)(ii), covered employees are determined
disclosure rules”), the amended disclosure by looking to the Exchange Act. Thus,
PURPOSE rules refer to these executives as “named guidance clarifying the meaning of cov-
executive officers.” Companies must com- ered employees is necessary because the
This notice provides guidance on iden- ply with the amended disclosure rules for definition in § 162(m)(3) does not track
tifying covered employees for purposes of fiscal years ending on or after December the definition of named executive officers
§ 162(m)(3) of the Internal Revenue Code. 15, 2006. in the amended disclosure rules. In par-
BACKGROUND Under the amended disclosure rules, ticular, guidance is necessary because the
named executive officers consist of, in amended disclosure rules (1) require dis-
Section 162(a)(1) allows as a deduction relevant part, (i) all individuals serving as closure for the principal executive offi-
all of the ordinary and necessary expenses the registrant’s principal executive offi- cer, while the definition of covered em-
paid or incurred during the taxable year in cer or acting in a similar capacity during ployee in § 162(m)(3)(A) uses the term
carrying on any trade or business, includ- the last completed fiscal year (“PEO”), chief executive officer; (2) require disclo-
ing a reasonable allowance for salaries or regardless of compensation level; (ii) all sure based on compensation level for three
other compensation for personal services individuals serving as the registrant’s prin- executive officers, while the definition of
actually rendered. cipal financial officer or acting in a similar covered employee in § 162(m)(3)(B) ap-
Section 162(m)(1) provides, in general, capacity during the last completed fiscal plies the deduction limitation by reason of
that in the case of any publicly held corpo- year (“PFO”), regardless of compensation compensation level to four officers; and
ration, no deduction shall be allowed for level; and (iii) the registrant’s three most (3) require disclosure with respect to the
applicable employee remuneration with highly compensated executive officers principal financial officer by reason of that
respect to any covered employee to the ex- other than the PEO and PFO who were officer’s position (and not by reason of
tent that the amount of such remuneration serving as executive officers at the end such officer being among the taxpayer’s
for the taxable year with respect to such of the last completed fiscal year. Under highest compensated officers), while the
employee exceeds $1,000,000. the old disclosure rules, named executive only officer within the scope of § 162(m)
Section 162(m)(3) defines a “covered officers consisted of, in relevant part, (i) based on a specific position is the chief ex-
employee” as any employee of the tax- all individuals serving as the registrant’s ecutive officer.
payer if, (A) as of the close of the tax- chief executive officer or acting in a sim- Accordingly, based upon the statutory
able year, such employee is the chief ex- ilar capacity during the last completed language of § 162(m)(3), which has not
ecutive officer of the taxpayer or is an in- fiscal year (“CEO”), regardless of com- been amended since the amended disclo-
dividual acting in such a capacity, or (B) pensation level; and (ii) the registrant’s sure rules were promulgated, the following
the total compensation of such employee four most highly compensated executive guidance is provided. The IRS will inter-
for the taxable year is required to be re- officers other than the CEO who were pret the term “covered employee” for pur-
ported to shareholders under the Securi- serving as executive officers at the end of poses of § 162(m) to mean any employee
ties Exchange Act of 1934 by reason of the last completed fiscal year. of the taxpayer if, as of the close of the
such employee being among the 4 highest The definition of covered employee taxable year, such employee is the prin-
compensated officers for the taxable year in § 162(m)(3) mirrored the definition of cipal executive officer (within the mean-
(other than the chief executive officer). named executive officers under the old ing of the amended disclosure rules) of the
Section 1.162–27(c)(2)(ii) of the In- disclosure rules, but it is not the same as taxpayer or an individual acting in such a
come Tax Regulations provides that that definition under the amended disclo- capacity, or if the total compensation of
whether an individual is the chief ex- sure rules. This is because the amended such employee for that taxable year is re-
ecutive officer or among the four highest disclosure rules increase the number of quired to be reported to shareholders under
compensated officers (other than the chief executives who are named executive offi- the Exchange Act by reason of such em-
executive officer) is determined pursuant cers by virtue of their position from one to ployee being among the 3 highest compen-
to the executive compensation disclosure two, and reduce the number of executives sated officers for the taxable year (other
rules under the Exchange Act. who are named executive officers based than the principal executive officer or the
The Securities and Exchange Commis- on their compensation level from four to principal financial officer). Accordingly,
sion’s (“SEC”) rules relating to executive three. Thus, while the amended disclosure the term covered employee for purposes of
compensation disclosure under the Ex- rules continue to require disclosure for § 162(m) does not include those individ-
change Act are contained in Item 402 of five executive officers, two executives are uals for whom disclosure is required un-
Regulation S-K, 17 CFR 229.402. A final now covered by the rules based on their der the Exchange Act on account of the in-
rule amending the SEC executive com- positions, and three are covered by the dividual being the taxpayer’s principal fi-
pensation disclosure rules was published rules based on their level of compensa- nancial officer (within the meaning of the
in the Federal Register on September 8, tion. In contrast, a covered employee for amended disclosure rules) or an individual
2006 (71 FR 53158) (“amended disclo- purposes of § 162(m)(3) consists of only acting in such a capacity.
sure rules”). Among other things, the one executive officer based on his or her
June 18, 2007 1429 2007–25 I.R.B.
The principal author of this notice The applicable percentage of an in- B. Changes to § 170(b)(1) made by
is Jean Casey of the Office of Division dividual’s contribution base varies, de- § 1206(a)(1) of the PPA, applicable to
Counsel/Associate Chief Counsel (Tax pending on the donee organization and the qualified conservation contributions made
Exempt & Government Entities). For property contributed. For example, for in taxable years beginning after December
further information regarding this notice, cash contributions made to organizations 31, 2005, and before January 1, 2008
contact Jean Casey at (202) 622–6030 (not described in § 170(b)(1)(A), the applica-
a toll-free call). ble percentage is 50 percent. For cash I. General rule: 50 percent limitation
contributions to organizations described
in § 170(b)(1)(B), and contributions of Section 1206(a)(1) of the PPA added
capital gain property to organizations de- § 170(b)(1)(E) to the Code to increase the
Guidance Regarding scribed in § 170(b)(1)(A), the applicable percentage limitations and carryover pe-
Deductions by Individuals percentage is generally 30 percent. The riod applicable to qualified conservation
for Qualified Conservation term “capital gain property” is defined contributions made in taxable years begin-
Contributions in § 170(b)(1)(C)(iv) as any capital asset ning after December 31, 2005, and before
or property which is property used in the January 1, 2008. Under § 170(b)(1)(E)(i),
Notice 2007–50 trade or business (as defined in § 1231(b)) an individual may be allowed a deduc-
the sale of which at its fair market value tion for any qualified conservation con-
PURPOSE at the time of the contribution would have tribution to an organization described in
resulted in gain which would have been § 170(b)(1)(A) to the extent the aggregate
This notice provides guidance relating long-term capital gain. of such contributions does not exceed the
to the percentage limitations imposed by Under § 170(b)(1) and (d)(1), any chari- excess of 50 percent of the individual’s
§ 170(b)(1)(E) of the Internal Revenue table contribution made during the taxable contribution base over the amount of all
Code (Code) on “qualified conservation year in excess of the applicable contribu- other charitable contributions allowed un-
contributions” made by individuals. Sec- tion base generally is carried forward for der § 170(b)(1) (the 50 percent limitation).
tion 170(b)(1)(E) was added to the Code up to 5 succeeding taxable years (after the Thus, the 30 percent limitation applica-
by section 1206(a)(1) of the Pension Pro- contribution year) in order of time. ble to contributions of capital gain prop-
tection Act of 2006, Pub. L. No. 109–280, The total of all charitable contributions erty under § 170(b)(1)(C) does not apply
120 Stat. 780 (2006) (PPA), and is ef- deducted in a taxable year may not exceed to qualified conservation contributions. If
fective for contributions made in taxable 50 percent of the individual’s contribution the aggregate amount of qualified conser-
years beginning after December 31, 2005, base. The contributions that are deducted vation contributions exceeds the 50 per-
and before January 1, 2008. against the contribution base must follow cent limitation, § 170(b)(1)(E)(ii) provides
the order of priority set forth in § 170(b)(1) that the excess will be treated (consistent
BACKGROUND and (d)(1). For example, if during a tax- with § 170(d)(1)) as a charitable contribu-
able year an individual makes a cash con- tion to which § 170(b)(1)(E)(i) applies in
A. Percentage limitations and carryover tribution and a capital gain property con- each of the 15 succeeding years in order of
rules under § 170(b)(1) and § 170(d)(1) tribution to one or more organizations de- time.
of the Code: General rules scribed in § 170(b)(1)(A), generally the
cash contribution is taken into account be- II. 100 percent limitation applicable
Section 170(a) of the Code generally al- fore the capital gain property contribution to certain qualified conservation
lows a deduction, subject to certain limi- in determining the allowable deduction for contributions taken into account by
tations, for any charitable contribution (as the year and any carryovers to future years. individuals who are qualified farmers or
defined in § 170(c)), payment of which If the cash contribution equals 50 percent ranchers
is made during the taxable year. Section of the contribution base, the entire amount
1.170A–1(c)(1) of the Income Tax Regu- of the capital gain property contribution Section 170(b)(1)(E)(iv) provides a
lations provides that the amount of a con- is carried forward for up to 5 succeeding special rule for a qualified conserva-
tribution of property is generally the fair taxable years (after the contribution year) tion contribution taken into account by
market value of the property at the time of in order of time. Furthermore, the capi- an individual who in the taxable year
the contribution, subject to certain limita- tal gain property contribution carryover re- of the contribution is a qualified farmer
tions in § 170(e). tains its character in the carryover years or rancher, defined in § 170(b)(1)(E)(v)
The amount of charitable contributions as a capital gain property contribution to as a taxpayer whose gross income from
that an individual may deduct in a taxable which the 30 percent limitation applies. the trade or business of farming (within
year is limited to the applicable percentage For additional details about the percent- the meaning of § 2032A(e)(5)) is greater
of the individual’s contribution base, pur- age limitations and carryover rules, see than 50 percent of the taxpayer’s gross
suant to § 170(b)(1). Section 170(b)(1)(G) § 1.170A–8 and § 1.170A–10. income for the taxable year. For such
provides that the term “contribution base” Different percentage limitations and an individual, § 170(b)(1)(E)(iv)(I) pro-
means the individual’s adjusted gross in- carryover rules, which are not rele- vides a general rule that the 50 percent
come, computed without regard to any net vant here, apply to C corporations. See limitation described above is increased to
operating loss carryback. § 170(b)(2) and (d)(2). 100 percent (the 100 percent limitation).
2007–25 I.R.B. 1430 June 18, 2007
However, for any contribution of prop- For example, in taxable year 2007 in- property. Consequently, a contribution of
erty made after August 17, 2006, that is dividual B, a calendar year taxpayer who the taxpayer’s entire interest in real prop-
used or available for use in agriculture is not a qualified farmer or rancher in erty does not qualify for the 50 and 100
or livestock production, the 100 percent 2007, has a contribution base of $100. percent limitations under § 170(b)(1)(E).
limitation applies only if the contribution During 2007 B makes $60 of cash con- For purposes of determining whether an
is subject to a restriction that the property tributions to organizations described in entire interest in real property has been
remain available for agriculture or live- § 170(b)(1)(A) (that is, contributions contributed, the retention of an insubstan-
stock production. If the contribution is not to which the 50 percent limitation of tial right or interest in the real property is
subject to such a restriction, the 50 percent § 170(b)(1)(A) applies), and a qualified disregarded. See § 1.170A–7(b)(1)(i); see
limitation applies. conservation contribution of capital gain also, e.g., Rev. Rul. 75–66, 1975–1 C.B.
property under § 170(b)(1)(C)(iv) with 85.
III. Effect of qualified conservation a fair market value of $80. Assuming Q–4. How may an individual determine
contributions on the computation of all other requirements of § 170 are met, whether the individual is a qualified farmer
charitable contribution deductions and in 2007 B may deduct $50 of the cash or rancher for the taxable year of the con-
carryovers contributions. The unused $10 of cash tribution (and thus may be eligible for the
contributions is carried forward for up to 5 100 percent limitation)?
i) In general years. No current deduction is allowed for A–4. An individual is a qualified
the qualified conservation contribution, farmer or rancher if the individual’s gross
Qualified conservation contributions but the entire $80 qualified conservation income from the trade or business of farm-
are not taken into account in determining contribution deduction is carried forward ing (as defined in § 2032A(e)(5)) in the
the amount of other allowable charitable for up to 15 years. taxable year of the contribution is greater
contributions. Therefore, for purposes of Q–2. How do the percentage limita- than 50 percent of the individual’s total
applying § 170(b)(1)(E) and (d)(1), qual- tions and the carryover rules apply if the gross income for the taxable year of the
ified conservation contributions are not individual is a qualified farmer or rancher contribution.
treated as described in § 170(b)(1)(A), (B), for the taxable year in which the contribu- Gross income includes all income from
(C), or (D). Moreover, § 170(b)(1)(A), (B), tion is made? whatever source derived, except as other-
(C), and (D) apply without regard to con- A–2. Using the example in A–1 of this wise provided. Section 61(a); § 1.61–3.
tributions described in § 170(b)(1)(E)(i). notice, if in 2007 B is a qualified farmer or Gross income from the trade or business of
rancher eligible for the 100 percent limi- farming is the gross income from activities
ii) Qualified conservation contributions tation in § 170(b)(1)(E)(iv), B may deduct described in § 2032A(e)(5). Such activi-
taken into account by qualified farmers $50 for the qualified conservation contri- ties include cultivating the soil; raising or
and ranchers bution in addition to the $50 deduction for harvesting any agricultural or horticultural
cash contributions. As in A–1, the unused commodity; raising, shearing, feeding,
Section 170(b)(1)(E)(iv)(II) provides $10 of cash contributions is carried for- caring for, training, and management of
that the percentage limitations applicable ward for up to 5 years. The unused $30 animals; handling, drying, packing, grad-
to qualified conservation contributions of the qualified conservation contribution ing, or storing on a farm any agricultural or
taken into account by a qualified farmer or is carried forward for up to 15 years. horticultural commodity in its unmanufac-
rancher are applied in the following order: Q–3. Do the 50 percent and 100 percent tured state but only if the owner, operator,
First, contributions of property to which limitations in § 170(b)(1)(E)(i) and (iv) ap- or tenant of the farm regularly produces
the 50 percent limitation applies are taken ply to all contributions of real property in- more than one-half of the commodity; and
into account; then contributions of prop- terests? the planting, cultivating, caring for, or
erty to which the 100 percent limitation A–3. No. The 50 and 100 percent lim- cutting of trees, or the preparation (other
applies are taken into account. itations in § 170(b)(1)(E) apply only to than milling) of trees for market.
qualified conservation contributions, de- Q–5. If a qualified conservation con-
QUESTIONS AND ANSWERS fined in § 170(h)(1) as a contribution of a tribution is made by a pass-through entity
qualified real property interest to a quali- such as a partnership or S corporation, is
Q–1. How do the percentage limita- fied organization, exclusively for conser- the determination made at the entity level
tions and the carryover rules apply in a tax- vation purposes. A qualified real property as to whether an individual who is a part-
able year in which an individual has made interest is defined in § 170(h)(2) as any of ner or shareholder is a qualified farmer or
a qualified conservation contribution and the following interests: A) the entire inter- rancher for the taxable year of the contri-
one or more contributions subject to the est of the taxpayer other than a qualified bution?
limitations in § 170(b)(1)(A), (B), (C), or mineral interest; B) a remainder interest; A–5. No. Section 170(b)(1)(E)(iv)(I)
(D)? and C) a restriction (granted in perpetuity) indicates that a qualified farmer or rancher
A–1. The qualified conservation contri- on the use which may be made of the real must be an individual. Therefore, the de-
bution may be taken into account only af- property. termination is made at the partner or share-
ter taking into account contributions sub- For example, a qualified real property holder level as to whether an individual
ject to the limitations in § 170(b)(1)(A), interest, as defined in § 170(h)(2), does not who is a partner or shareholder is a qual-
(B), (C), and (D). include the taxpayer’s entire interest in real
June 18, 2007 1431 2007–25 I.R.B.
ified farmer or rancher for the taxable year of this notice for an example illustrating this notice are located) remain available
of the contribution. the application of § 170(b)(1)(E)(iv). for such production?
Q–6. Is income from a sale (including Q–10. If a qualified farmer or rancher A–12. The qualified conservation con-
a bargain sale) of a conservation easement makes a qualified conservation contribu- tribution must include a restriction that the
included in the individual’s gross income tion of property used or available for use in property remain available for agriculture
from the trade or business of farming? agriculture or livestock production, must or livestock production, and must ensure
A–6. No. A sale (including a bargain the contribution be subject to a restriction that the property is protected from any
sale) of a conservation easement is not that the property remain available for such use that would interfere with agriculture
an activity described in § 2032A(e)(5). use in order to qualify for the 100 percent or livestock production. For example,
Therefore, income derived from such a limitation? a qualified conservation contribution of
sale is not included in the individual’s A–10. The answer depends on the date property used or available for use in agri-
gross income from the trade or business of of the contribution. If the contribution was culture or livestock production might
farming. However, the income from such made after August 17, 2006, the contribu- include in the document of conveyance
a sale is included in the individual’s gross tion must be subject to such a restriction prohibitions against construction or place-
income. in order to qualify for the 100 percent lim- ment of buildings (except those used for
Q–7. Is income from the sale of timber itation. The contribution may qualify for agriculture or livestock production pur-
included in the individual’s gross income the 50 percent limitation if the contribution poses, or dwellings used for family living
from the trade or business of farming? lacks such a restriction. If the contribution by the qualified farmer or rancher, a lessee
A–7. Yes. The planting, cultivat- was made on or before August 17, 2006, that operates the property, or their em-
ing, caring for, or cutting of trees, or no such restriction is required in order to ployees); removal of mineral substances
the preparation (other than milling) of qualify for the 100 percent limitation. in any manner that adversely affects the
trees for market are activities described in Q–11. Does property used or avail- property’s agriculture or livestock produc-
§ 2032A(e)(5). Therefore, income from able for use in agriculture or livestock pro- tion potential; and other uses detrimental
the sale of timber is included in the indi- duction include the portions of the prop- to retention of the property for use in agri-
vidual’s gross income from the trade or erty upon which the following types of im- culture or livestock production. See, e.g.,
business of farming, and is also included provements are located: Dwellings used § 1.170A–14(f), Example 5.
in the individual’s gross income. for family living by the farmer or rancher, Q–13. Individual B, a calendar year
Q–8. Is income from fees to permit a lessee that operates the property, or their taxpayer who is a qualified farmer or
hunting and fishing on the property in- employees; other types of buildings used rancher for 2007, makes qualified con-
cluded in an individual’s gross income for agriculture or livestock purposes; and servation contributions during that year
from the trade or business of farming? roads throughout the property? with respect to B’s 1,000 acre property.
A–8. No. Hunting and fishing ac- A–11. Yes. The portions of the prop- Of B’s 1,000 acres, 950 acres are used (or
tivities are not activities described in erty upon which such improvements are available for use) in agriculture or live-
§ 2032A(e)(5). Therefore, income derived located are treated as property used or stock production, and 50 acres are used
from permitting such activities is not in- available for use in agriculture or livestock as a game preserve that is unavailable for
cluded in the individual’s gross income production. See, e.g., § 1.170A–14(f), Ex- use in agriculture or livestock production.
from the trade or business of farming. ample 5. To qualify for the 100 percent B contributes a qualified conservation
However, the income is included in the limitation, a qualified conservation contri- contribution with respect to the 950 acre
individual’s gross income. bution of the property made after August property, and a separate qualified con-
Q–9. Must a qualified conservation 17, 2006, by a qualified farmer or rancher servation contribution with respect to the
contribution be of property used or avail- must include a restriction that the en- 50 acre property. The contribution with
able for use in agriculture or livestock pro- tire property, including the portions upon respect to the 950 acre property includes a
duction in order for a qualified farmer or which the improvements are located, re- restriction that the property remain avail-
rancher to qualify for the 100 percent lim- main available for agriculture or livestock able for use in agriculture or livestock
itation under § 170(b)(1)(E)(iv)(I)? production. If the contribution is not sub- production. Provided B meets all require-
A–9. No. Section 170(b)(1)(E)(iv)(I) ject to such a restriction over the entire ments of § 170, do both contributions
requires that an individual be a qualified property, the contribution will not qualify qualify for the 100 percent limitation un-
farmer or rancher to qualify for the 100 for the 100 percent limitation, but may der § 170(b)(1)(E)(iv)?
percent limitation. It does not require qualify for the 50 percent limitation. A–13. Yes.
that the qualified conservation contribu- Q–12. How may a qualified farmer
tion be of property used or available for or rancher comply with the requirement DRAFTING INFORMATION
use in agriculture or livestock produc- that a qualified conservation contribution
tion. However, if the property is used or of property used or available for use in The principal authors of this notice
available for use in agriculture or live- agriculture or livestock production be sub- are Amy S. Wei and Patricia M. Zweibel
stock production, the restriction described ject to a restriction that the property (in- of the Office of Associate Chief Counsel
in § 170(b)(1)(E)(iv)(II) may apply. See cluding the portions of the property upon (Income Tax & Accounting). For further
Q–10 and A–10 of this notice. See Q–13 which improvements described in Q–11 of information regarding this notice, con-
2007–25 I.R.B. 1432 June 18, 2007
tact Ms. Wei or Ms. Zweibel at (202) mortality tables for any plan unless sub- a 2, 3, or 4-consecutive year period, the last
622–7900 (not a toll-free call). stitute mortality tables are established and day of which must be less than 3 years be-
used for each other plan subject to § 430 fore the first day of the first plan year for
of the Code that is maintained by the plan which the substitute mortality tables are to
26 CFR 601.201: Rulings and determination letters. sponsor and the plan sponsor’s controlled apply.
(Also Part I, § 430.) group. Development of a substitute mortal-
.02 Proposed regulation § 1.430(h) ity table under the proposed regulations
Rev. Proc. 2007–37 (3)–1, which sets forth proposed rules requires creation of a base table (Base
regarding the use of generally applicable Table) and identification of a base year
mortality tables for purposes of § 430, (Base Year), which are then used to de-
SECTION 1. PURPOSE and proposed regulation § 1.430(h)(3)–2, termine generational substitute mortality
which sets forth proposed rules for the tables. The Base Table must be developed
The purpose of this revenue procedure use of substitute mortality tables under from a study of the mortality experi-
is to set forth the procedure by which the § 430(h)(3)(C) (referred to elsewhere in ence of the plan using amounts-weighted
sponsor of a defined benefit plan, other this revenue procedure as the “proposed data. The proposed regulations also set
than a multiemployer plan, may request regulations”), were published in the Fed- forth rules regarding development of
and obtain approval for the use of plan- eral Register on May 29, 2007, at 72 FR amounts-weighted mortality rates for an
specific substitute mortality tables in ac- 29456. Under the proposed regulations age and the determination of the Base
cordance with § 430(h)(3)(C) of the In- (REG–143601–06, 2007–24 I.R.B. 1398), Year. The proposed regulations provide
ternal Revenue Code (Code) and section substitute mortality tables must reflect the that amounts-weighted mortality rates
303(h)(3)(C) of the Employee Retirement actual mortality experience of the pension may be derived from amounts-weighted
Income Security Act of 1974, as amended plan maintained by the plan sponsor for mortality rates for age groups.
(ERISA). which the tables are to be used and that The proposed regulations provide
mortality experience must be credible. that Base Tables may be constructed
SECTION 2. BACKGROUND Separate mortality tables must be estab- either directly through graduation of
INFORMATION lished for each gender under the plan, and amounts-weighted mortality rates or indi-
a substitute mortality table is permitted to rectly by applying a level percentage to
.01 Section 412 of the Code provides be established for a gender only if the plan tables prescribed by § 430(h)(3)(A), pro-
minimum funding requirements for de- has credible mortality experience with vided that the resulting tables sufficiently
fined benefit pension plans. Section 430, respect to that gender. If the mortality ex- reflect the plan’s mortality experience.
which was added by the Pension Protec- perience for one gender is credible but the The Service may permit the construction
tion Act of 2006, Pub. L. No. 109–280, mortality experience for the other gender of Base Tables through application of a
120 Stat. 780, specifies the minimum is not credible, then the substitute mor- level percentage to other recognized mor-
funding requirements for defined benefit tality tables are used for the gender that tality tables, applying similar standards to
plans other than multiemployer plans pur- has credible mortality experience, and the ensure that the resulting tables are suffi-
suant to § 412 and is generally effective mortality tables under proposed regulation ciently reflective of the plan’s mortality
for plan years beginning on or after Jan- § 1.430(h)(3)–1 are used for the gender experience.
uary 1, 2008. Section 430(h)(3)(A) sets that does not have credible mortality expe- As noted above, except as provided by
forth rules regarding the use of generally rience. If separate mortality tables under the Secretary, a plan sponsor cannot use
applicable mortality tables for purposes of § 430(h)(3)(D) are used for certain dis- substitute mortality tables for any plan un-
§ 430. Section 430(h)(3)(C) and section abled individuals under a plan, then those less substitute mortality tables are estab-
303(h)(3)(C) of ERISA provide that the individuals are disregarded for all pur- lished and used for each other plan sub-
Secretary of the Treasury may approve poses with respect to substitute mortality ject to § 430 that is maintained by the plan
substitute mortality tables to be used in tables under § 430(h)(3)(C). Thus, if the sponsor and the plan sponsor’s controlled
determining any present value or making mortality tables under § 430(h)(3)(D) are group. Under the proposed regulations, the
any computation under those sections for used for certain disabled individuals under use of substitute mortality tables for one
a period not to exceed ten years. Mortality a plan, mortality experience with respect plan would not be prohibited merely be-
tables meet the requirements for substitute to those individuals must be excluded in cause another plan maintained by the plan
mortality tables if the pension plan has determining mortality rates for substitute sponsor (or by a member of the plan spon-
a sufficient number of plan participants mortality tables with respect to a plan. sor’s controlled group) cannot use substi-
and the plan has been maintained for a Under the proposed regulations, a sub- tute mortality tables because neither the
sufficient period of time in order to have stitute mortality table is based on credible males nor the females under that other plan
credible mortality experience, and such mortality experience for a gender within a have credible mortality experience for a
tables reflect the actual experience of the plan if and only if the mortality experience plan year. Thus, if a sponsor’s controlled
plan and projected trends in general mor- is based on at least 1,000 deaths within that group maintains two pension plans subject
tality experience of participants in pension gender over the period covered by the ex- to § 430, each of which has credible mor-
plans. Except as provided by the Secre- perience study. The experience study must tality experience for at least one gender,
tary, a plan sponsor cannot use substitute be based on mortality experience data over then either both plans must obtain approval
June 18, 2007 1433 2007–25 I.R.B.
from the Service to use substitute mortal- penalties of perjury, I declare that I have absent mutual agreement of the Service
ity tables or neither plan may use substitute examined this request, or this modifica- and the applicant to extend the 180-day pe-
mortality tables. By contrast, if, for one tion to the request, including accompa- riod specified under § 430(h)(3)(C)(v)(II).
of those plans, neither males nor females nying documents, and, to the best of my Except as provided in section 5.06 of this
have credible mortality experience, then knowledge and belief, the request or the revenue procedure, the applicant should
the plan without credible mortality expe- modification contains all the relevant facts not assume that the Service will agree to
rience will not interfere with the ability of relating to the request, and such facts are extend the 180-day period for a request
the plan with credible mortality experience true, correct, and complete.” This dec- that does not include substantially all of
to use substitute mortality tables. laration must be signed by the applicant the applicable information specified in
(e.g., an authorized officer of a corpora- sections 5 through 13 of this revenue pro-
SECTION 3. GENERAL tion). The signature of an individual with cedure.
ADMINISTRATIVE PROCEDURES a power of attorney will not suffice for the
declaration. See section 9.02(13) of Rev. SECTION 5. GENERAL RULES
.01 Compliance with Regulations. Un- Proc. 2007–4.
til final regulations under § 430(h)(3)(C) (3) Because a request for the use of .01 The Service will deny a request if
are issued, requests for the use of sub- substitute mortality tables constitutes a re- the request fails to meet the requirements
stitute mortality tables must satisfy the quest for a ruling, compliance with § 6110 of this revenue procedure or if the Service
requirements of proposed regulation of the Code is also required. Section determines that a substitute mortality table
§ 1.430(h)(3)–2. After those final reg- 601.201 of the Statement of Procedural does not sufficiently reflect the mortality
ulations are issued, requests must satisfy Rules sets forth the requirements applica- experience of the applicable plan popula-
the requirements of the final regulations. ble to requests for rulings and determina- tion.
.02 Submission. Requests for the use of tion letters which are subject to § 6110. .02 If separate mortality tables are
substitute mortality tables must be submit- Section 601.201(e) furnishes specific in- used for disabled individuals pursuant to
ted to: structions to applicants. § 430(h)(3)(D), then those individuals are
The applicant must provide with the disregarded for all purposes under this
Internal Revenue Service
request either a statement of proposed revenue procedure.
Attention: EP Letter Rulings
deletions and the statutory basis for each .03 A separate request must be made
P.O. Box 27063
proposed deletion, or a statement that no with respect to each plan (the “Plan”), or
McPherson Station
information other than names, addresses, group of plans that are permissively aggre-
Washington, D.C. 20038
and taxpayer identifying numbers need be gated (the “Permissive Group”), for which
The user fee required by section deleted. the use of a substitute mortality table or
6.01(10) (All other letter rulings) of Rev. .04 Checklist. A checklist has been tables is requested. The request must in-
Proc. 2007–8, 2007–1 I.R.B. 230, or its provided in Appendix A for the conve- clude a complete copy of the Base Tables
successors, must be sent with such re- nience of the applicant submitting the re- that will form the basis for the substitute
quests. quest. This checklist should be signed, by mortality tables that will be used. The re-
.03 Necessary Procedural Documents. the applicant or authorized representative, quest must state the first day of the first
A request will not be considered unless it and dated and placed on top of the request. plan year for which the substitute mortality
complies with (1) through (3) below. tables are to be applicable (the “Requested
(1) The request (and any subsequently SECTION 4. DEADLINE FOR Effective Plan Year”) and must state the
provided additional information) must be REQUESTING THE USE OF term of years (not more than 10) that the
signed by the employer maintaining the SUBSTITUTE MORTALITY TABLES tables are requested to be used. Each re-
plan(s) (the “applicant”) or an authorized quest also must identify the Base Year of
representative of the applicant who must .01 In General. A request for the use of the Base Tables.
be identified in (a), (b), (c), (d) or (e) of substitute mortality tables generally must .04 The request must include a descrip-
section 9.02(11) of Rev. Proc. 2007–4, be submitted at least 7 months prior to the tion of the populations within the Plan (or
2007–1 I.R.B. 118, or its successors. first day of the first plan year for which the Permissive Group) for which the use of
Where an authorized representative signs the substitute mortality tables are to apply. substitute mortality tables is requested and
the request or will appear before the Ser- Thus, for example, if the first plan year to a description of the populations, if any, for
vice in connection with the request, a which substitute mortality tables are to ap- which the use of substitute mortality tables
properly signed and dated Form 2848, ply is the plan year that begins January 1, is not requested.
Power of Attorney and Declaration of 2009, then the deadline is June 1, 2008. For example, if the use of substitute
Representative, must be submitted with Notwithstanding the generally applicable mortality tables is requested for nondis-
the request. An individual is not an au- deadline, a request to use substitute mor- abled female individuals (but for no other
thorized representative of the applicant tality tables is timely if it is submitted on individuals) where separate mortality ta-
merely on account of being the adminis- or before October 1, 2007. bles are used for disabled individuals pur-
trator or trustee of the plan. .02 Incomplete Requests. Generally, an suant to § 430(h)(3)(D), then the popula-
(2) The request also must contain a incomplete request for the use of substitute tion for whom the use of substitute mortal-
declaration in the following form: “Under mortality tables will be summarily denied ity tables is requested would be described
2007–25 I.R.B. 1434 June 18, 2007
as “Nondisabled Females” and the popu- mortality tables on the grounds that all members of the applicant’s controlled
lation for whom the use of substitute mor- plans with credible mortality experience group, for which the use of substitute mor-
tality tables is not requested would be de- maintained by the applicant would not be tality tables is not requested:
scribed as “Nondisabled Males.” using substitute mortality tables. (1) Plan name;
Similarly, if the use of substitute mor- Example. Employer E maintains Plans A and B, (2) Plan number;
tality tables is requested for male annui- both of which are calendar year plans that have each (3) Plan year (i.e., calendar, or if fiscal,
had over 2,500 deaths in each of the last five years.
tants (but not male non-annuitants) and for Employer E submits a request for the use of substi-
the first and last day);
females on a combined annuitant/nonan- tute mortality tables for Plan A for the 2009 plan year (4) Employer identification number;
nuitant basis, in each case including dis- that is received on February 15, 2008 (the “A Re- (5) Date of plan establishment;
abled individuals, then the populations for quest”). To avoid denial of the A Request on the (6) If the plan is newly acquired, the
whom the use of substitute mortality tables grounds that all plans with credible mortality experi- date of the merger, acquisition, or similar
ence maintained by the applicant would not be using
is requested would be described as “Male substitute mortality tables, Employer E requests that
transaction described in § 1.410(b)–2(f) of
Annuitants” and “Females”, and the popu- the 180-day review period of the A Request not begin the regulations, and the date described in
lation for whom the use of substitute mor- until the receipt of a separate request for the 2009 plan § 410(b)(6)(C)(ii)(II); and
tality tables is not requested would be de- year from Employer E for the use of substitute mor- (7) The Lack of Credible Mortality Ex-
scribed as “Male Nonannuitants.” tality tables by Plan B. The Service agrees to defer perience Demonstration Period, or, if the
commencement of the 180-day period, but will sum-
.05 The request must include the plan marily deny the application unless Employer E sub-
plan is not required to identify such a pe-
identification information described in mits a separate request for the use of substitute mor- riod, the applicable exception. (See sec-
Section 6, the credible mortality experi- tality tables for Plan B no later than May 15, 2008. tion 9 of this revenue procedure.)
ence demonstrations described in Section .07 If two or more plans are permis- .03 The following additional informa-
7, the stability demonstrations described sively aggregated for the purpose of con- tion must be provided with respect to each
in Section 8, the lack of credible mortality structing substitute mortality tables, then plan that is subject to § 430 that is main-
experience demonstrations described in such plans are treated as a single plan for tained by the applicant, or member of the
Section 9, the unadjusted mortality expe- all purposes of this revenue procedure. applicant’s controlled group, that was spun
rience described in Section 10, the Base Accordingly, if two or more plans are per- off from another plan that is maintained by
Table construction methods as set forth in missively aggregated, then all populations the applicant within the five-year period
Section 11 or 12, and the demonstrations within the plans must be so aggregated. preceding the date of the request:
with respect to the Base Tables described Example. Employer F maintains Plans C, D, and (1) The plan name and the plan number
in Section 13. E, each of which had 500 male deaths and 100 female of the spun off plan, and the plan name and
deaths in each of the last five years. Employer F may
.06 If there are other plans subject to request to use one substitute male mortality table and
number of the plan from which the spinoff
§ 430 maintained by the applicant, or one substitute female mortality table for the aggrega- occurred;
members of the applicant’s controlled tion of Plans C, D, and E. However, Employer F may (2) The employer identification number
group, that have credible mortality ex- not aggregate Plans C, D, and E and request to use of the employer maintaining the spun off
perience for which the use of substitute one substitute female mortality table for Plans C, D, plan and the employer identification num-
and E, and three separate substitute male mortality ta-
mortality tables will be requested in a bles for Plans C, D, and E.
ber of the employer maintaining the plan
separate request, then the Service will not from which the spinoff occurred;
summarily deny the request for the use of SECTION 6. IDENTIFICATION OF (3) The date of the spinoff;
substitute mortality tables on the grounds PLANS (4) The approximate number of individ-
that all plans with credible mortality expe- uals covered by the spun off plan as of
rience maintained by the applicant would .01 The following plan information the date of the spinoff and the approximate
not be using substitute mortality tables, must be provided for the Plan (or for each number of individuals covered by the plan
but only if the applicant requests that the plan within the Permissive Group) for from which the spinoff occurred, prior to
180-day review period provided under which the use of substitute mortality ta- the spinoff; and
§ 430(h)(3)(C)(v)(II) not begin for the ini- bles is requested: (5) The reason for the spinoff.
tial request and any such separate request (1) Plan name;
until the date all such separate requests (2) Plan number; SECTION 7. DEMONSTRATIONS
have been received, and only if those (3) Plan year (i.e., calendar, or if fiscal, OF CREDIBLE MORTALITY
separate requests are submitted within 90 the first and last day); EXPERIENCE
days after the receipt of the initial request (4) Employer identification number;
(and no later than the deadline that applies (5) Date of plan establishment; and .01 The applicant’s request must iden-
to each such separate request under sec- (6) Copies of the actuarial valuation re- tify the period of time covered by the
tion 4 of this revenue procedure). In the ports for each plan year which begins or mortality experience study (the “Experi-
absence of such a request for a delay in the ends during the Experience Study Period ence Study Period”) used to develop the
start of the 180-day review period, or if as defined in section 7.01 of this revenue Base Table(s) and must identify the Base
all such separate requests are not submit- procedure. Year. Different Experience Study Periods
ted within 90 days after the receipt of the .02 The following information must for different populations within a plan
initial request, the Service will summarily be provided for each plan that is subject are not permitted. Except as provided in
deny the request for the use of substitute to § 430 maintained by the applicant, or subsection .02 of this section, different
June 18, 2007 1435 2007–25 I.R.B.
Experience Study Periods for different A reasonable estimate of the number a Lack of Credible Mortality Experience
plans within the Permissive Group are not of plan individuals, such as the estimated Demonstration Period less than 4 years in
permitted. Thus, a plan that does not have number of participants and beneficiaries length. For such plans, the Lack of Cred-
mortality experience for the entire Expe- used for purposes of PBGC Form 1–ES, ible Mortality Experience Demonstration
rience Study Period may not be included may be used to provide the information re- Period must begin no later than the date of
in the Permissive Group. Similarly, a quested in subsection .01(1) of this section. acquisition of the plan and end not more
plan that was acquired subsequent to the .02 If the difference between (1) and (2) than one year and one day before the first
first day of the Experience Study Period of subsection .01 of this section within any day of the plan year for which the use of
may be included in the Permissive Group population, for any plan year, reflects a dif- substitute mortality tables is requested.
only if the applicant includes mortality ference of 20 percent or more, then an anal- .04 Demonstrations of Plan-Wide Lack
experience for the full Experience Study ysis that shows that the mortality experi- of Credible Mortality Experience. The fol-
Period. Thus, in such cases, the mortality ence during the Experience Study Period lowing information must be provided in
experience study must include mortality is still accurately predictive of the future tabular form for each plan that is not within
experience that occurred before the date mortality of the population must be sub- the Permissive Group and which does not
of acquisition. mitted. fall within one of the exceptions provided
.02 A plan that came into existence by in subsection .02 of this section:
reason of a spinoff from the Plan (or from SECTION 9. DEMONSTRATIONS OF (1) The number of male deaths during
a plan within the Permissive Group) dur- LACK OF CREDIBLE MORTALITY the Lack of Credible Mortality Experience
ing the Experience Study Period may be EXPERIENCE Demonstration Period; and
included in the Permissive Group. In such (2) The number of female deaths during
a case, the period of time covered by the .01 General Rule. For all plans main- the Lack of Credible Mortality Experience
mortality experience study with respect to tained by the applicant, except as described Demonstration Period.
the spun off plan will begin as of the date in subsections .02 and .03 of this section, .05 Demonstrations of Lack of Credible
of the spinoff. However, the mortality ex- the 4-year period of time used to demon- Mortality Experience for Certain Popula-
perience of the individuals covered by the strate a lack of credible mortality experi- tions. The number of deaths for the popu-
spun off plan from the first day of the Ex- ence must be identified (the “Lack of Cred- lation during the Lack of Credible Mortal-
perience Study Period to the date of the ible Mortality Experience Demonstration ity Experience Demonstration Period must
spinoff would be included as part of the Period”). be provided in tabular form for each rele-
experience of the single plan that existed .02 General Exception. Plans described vant population within the Plan (or plans
before the spinoff. in paragraphs (1), (2), or (3) are not re- within the Permissive Group) for which
.03 In order to demonstrate credible quired to identify a Lack of Credible Mor- the use of substitute mortality tables is not
mortality experience, the number of deaths tality Experience Demonstration Period. requested.
during each year of the Experience Study (1) Plans for which the use of substi- The relevant populations for this pur-
Period (and, in total, for the entire Experi- tute mortality tables is requested for all pose would, for example, be nondisabled
ence Study Period) within each population populations (other than disabled popula- females if the request was to use a substi-
for which the use of substitute mortality tions for whom the tables prescribed under tute mortality table for nondisabled males
tables is requested must be provided in § 430(h)(3)(D) are used); (but for no other individuals) where sepa-
tabular form. (2) Plans for which the use of substi- rate mortality tables were used for disabled
tute mortality tables has previously been individuals pursuant to § 430(h)(3)(D).
SECTION 8. DEMONSTRATION OF approved by the Service and the term of Similarly, the relevant populations would
STABILITY years of such approval ends subsequent to be male non-annuitants and females, in
the last day of the Requested Effective Plan each case including disabled individuals,
.01 The following information must be Year; and if the request was to use a substitute mor-
provided in tabular form for each popula- (3) Newly acquired plans for which tality table for male annuitants (but not
tion within the Plan (or plans within the the last day of the period described in for male non-annuitants) where separate
Permissive Group) for which the use of a § 410(b)(6)(C) is a date on or after the first mortality tables were not used for disabled
substitute mortality table is requested, ag- day of the plan year for which the use of individuals pursuant to § 430(h)(3)(D).
gregating all plans that have the same plan substitute mortality tables is requested.
year: .03 Exception for Certain Newly Ac- SECTION 10. UNADJUSTED
(1) The average number of individuals quired Plans. Newly acquired plans (as MORTALITY EXPERIENCE
within the population during the Experi- defined in § 1.430(h)(3)–2) for which
ence Study Period; and the last day of the period described in .01 In General. The following informa-
(2) The number of individuals within § 410(b)(6)(C) is a date prior to the first tion must be provided in tabular form for
the population as of the last day of the plan day of the plan year for which the use of all individuals within each population for
year immediately preceding the plan year substitute mortality tables is requested, whom the use of a separate mortality table
during which the use of substitute mortal- and for which the applicant has elected is requested, for each year of the Experi-
ity tables is requested. not to include mortality experience prior ence Study Period, and for the Experience
to the date of the acquisition, may identify Study Period in its entirety, for all ages be-
2007–25 I.R.B. 1436 June 18, 2007
tween 18 and 100 (except as provided in an age group consisting of all ages 25 and method (and the rationale for the method)
subsection .03 of this section): lower would not be permissible. used for the extension must be described.
(1) The sum of the accrued benefits (or .04 Unadjusted Base Tables. An Unad- .06 Standard Mortality Tables. For pur-
payable benefits, in the case of individuals justed Base Table for each population for poses of this revenue procedure, the fol-
in pay status) of all individuals at that age which the use of substitute mortality ta- lowing are the Standard Mortality Tables:
at the beginning of the year, other than bles is requested shall, for all ages or all (1) The Male Base Non-Annuitant Mor-
individuals who left the population during groups of ages, consist of the quotients de- tality Table (Year 2000) as set forth in
the year for reasons other than death; termined in paragraph (4) of subsection .01 § 1.430(h)(3)–1;
(2) The sum of the accrued (or payable) of this section for the Experience Study Pe- (2) The Male Base Annuitant Mor-
benefits of all individuals at that age at the riod in its entirety. The request must in- tality Table (Year 2000) as set forth in
beginning of the year who left the popula- clude a complete copy of each such Unad- § 1.430(h)(3)–1;
tion during the year for reasons other than justed Base Table. (3) The Female Base Non-Annuitant
death, adjusted to reflect exposure periods Mortality Table (Year 2000) as set forth in
of less than one year; SECTION 11. BASE TABLE § 1.430(h)(3)–1;
(3) The sum of the accrued (or payable) CONSTRUCTION – GENERAL (4) The Female Base Annuitant Mor-
benefits of all individuals at that age at the METHOD tality Table (Year 2000) as set forth in
beginning of the year who died during the § 1.430(h)(3)–1;
year; .01 In General. Except as otherwise (5) The Male Base Combined Mortal-
(4) The quotient determined by dividing provided in Section 12 of this revenue pro- ity Table (Year 2000) determined in accor-
the sum of the accrued (or payable) bene- cedure, a Base Table for a population must dance with subsection .07 of this section;
fits of all individuals at that age who died be created from the Unadjusted Base Ta- and
during the year by the sum of the accrued ble for the population through the applica- (6) The Female Base Combined Mortal-
(or payable) benefits for all individuals at tion of a graduation method generally used ity Table (Year 2000) determined in accor-
that age adjusted for individuals at that age by the actuarial profession in the United dance with subsection .07 of this section.
who left the population for reasons other States (e.g., Whittaker-Henderson Type B, .07 Gender-Specific Base (Year 2000)
than death (i.e., the amount determined in Karup-King). Section 12 of this revenue Mortality Combined Tables. For purposes
paragraph (3), divided by the total of the procedure provides for an alternate method of this revenue procedure, the Male Base
amounts determined in paragraphs (1) and of constructing a Base Table through the Combined Mortality Table (Year 2000)
(2); application of a fixed percentage to the is the table determined through applica-
(5) The total number of individuals at mortality rates of a Standard Mortality Ta- tion of the male Weighting Factors for
that age at the beginning of the year; ble, projected to the Base Year. Small Plans (the “Weights”) to the Male
(6) The total number of individuals at .02 Information Regarding Graduation Base Non-Annuitant and Annuitant Mor-
that age at the beginning of the year who Methods. The graduation method must tality Tables (Year 2000) as set forth in
left the population for reasons other than be identified and the parameters of the § 1.430(h)(3)–1. Similarly, the Female
death; graduation method used must be specified Base Combined Mortality Table (Year
(7) The total number of individuals at (e.g., for Whittaker-Henderson Type B, the 2000) is the table determined through
that age at the beginning of the year who number of differences and the “h” value application of the female Weights to the
died during the year; and must be specified). If more than one grad- Female Base Non-Annuitant and Annui-
(8) The average accrued benefit of all uation is performed, then the parameters tant Mortality Tables (Year 2000) as set
individuals at that age at the beginning of must be specified for each such graduation. forth in § 1.430(h)(3)–1.
the year. .03 Intermediate Values. If more than
.02 Adjustment for Exposure Periods of one graduation is performed in the process SECTION 12. BASE TABLE
Less than One Year. The request must in- of adjusting an Unadjusted Base Table to a CONSTRUCTION – ALTERNATE
clude a description of the method(s) used Base Table, then a copy of each intermedi- METHOD
to adjust the accrued benefits of individ- ate table so created must be provided.
uals who left for reasons other than death .04 Rationale. The rationale for the .01 General Rule. A Base Table for a
to reflect exposure periods of less than one selection of each particular graduation population may be created by applying a
year. method used must be provided along with fixed percentage (the “Fixed Percentage”)
.03 Grouping of Ages. The information the rationale for the selection of the partic- to the mortality rates in the Projected Ap-
requested in subsection .01 of this section ular parameters used as part of the method. plicable Standard Mortality Table, only if
may be presented in five-year age groups. .05 Extension to Extreme Ages. At ex- the requirements of subsections .02 and .03
In such cases, the groups at the extreme treme ages for which insufficient data ex- of this section are satisfied and the Ser-
ages may include more than five ages pro- ists, the Base Tables must be extended to vice determines that the resulting Base Ta-
vided such groups either do not include blend into the applicable Standard Mortal- ble sufficiently reflects the mortality ex-
ages greater than age 24 or do not include ity Table, provided in subsection .06 of this perience of the applicable plan population.
ages less than age 95. Thus, for exam- section, projected to the Base Year using For this purpose the Projected Applicable
ple, an age group consisting of all ages 24 Projection Scale AA, as set forth in the Standard Mortality Table is the applicable
and lower would be permissible whereas proposed regulations. In such cases, the Standard Mortality Table, projected to the
June 18, 2007 1437 2007–25 I.R.B.
Base Year using Projection Scale AA, as Standard Mortality Table of each of the Standard Mortality Table of each of the
set forth in § 1.430(h)(3)–1. See subsec- five-year age groups from the 35–39 age five-year age groups from the 45–49 age
tion .05 of this section with regard to the group to the 60–64 age group, inclusive, group to the 80–84 age group, inclusive,
possible use of other mortality tables for unless the applicant can demonstrate that a unless the applicant can demonstrate that a
this purpose. different set of five-year age groups (con- different set of five-year age groups (con-
Under this section 12, the Unadjusted sisting of no less than six such groups) is sisting of no less than eight such groups) is
Base Mortality Tables must be constructed more appropriate for this purpose. more appropriate for this purpose.
using five-year age groups. For each (2) If the applicable Standard Mortal- .03 Consistency Requirement. The con-
Base Table constructed using the alter- ity Table for a population is the table pro- sistency requirement of this subsection .03
nate method described in this section, the vided in either section 11.06(2) or sec- is satisfied only if each of the applicable ra-
Fixed Percentage and the mortality table tion 11.06(4) of this revenue procedure, tios described in subsection .02 of this sec-
to which such percentage is to be applied then the Fixed Percentage must be within tion is within 10 percentage points of the
must be identified. In addition, for each so two percentage points of the arithmetic av- Fixed Percentage.
constructed Base Table, the ratios of the erage of the ratios of the mortality rates .04 Terminal Age. Notwithstanding
mortality rates from the Unadjusted Base from the Unadjusted Base Mortality Table subsection .01 of this section, the mortal-
Mortality Table for the population to the for the population to the central age mor- ity rate for the terminal age in any Base
central age mortality rates (i.e., the mortal- tality rates from the Projected Applicable Table created by applying a Level Percent-
ity rates for the ages that are the midpoints Standard Mortality Table of each of the age to a Standard Mortality Table shall be
of the age ranges) from the Projected Ap- five-year age groups from the 55–59 age 1.000.
plicable Standard Mortality Table must be group to the 80–84 age group, inclusive, .05 Other Mortality Tables. The Ser-
provided, in tabular form, for all five-year unless the applicant can demonstrate that a vice will consider requests for the ap-
age groups for which mortality experience different set of five-year age groups (con- proval of Base Tables constructed through
is available. sisting of no less than six such groups) is the application of a fixed percentage to
.02 Selection of the Fixed Percentage. more appropriate for this purpose. the mortality rates of other published gen-
(1) If the applicable Standard Mortal- (3) If the applicable Standard Mortal- erally accepted mortality tables (e.g., the
ity Table for a population is the table pro- ity Table for a population is the table pro- 1983 Group Annuity Mortality Table) us-
vided in either section 11.06(1) or sec- vided in either section 11.06(5) or sec- ing standards similar to those provided in
tion 11.06(3) of this revenue procedure, tion 11.06(6) of this revenue procedure, subsections .01 through .04 of this section.
then the Fixed Percentage must be within then the Fixed Percentage must be within .06 Example. The age group rates from the Male
two percentage points of the arithmetic av- two percentage points of the arithmetic av- Unadjusted Base Table (determined in accordance
with section 10 of this revenue procedure), the central
erage of the ratios of the mortality rates erage of the ratios of the mortality rates age rates from the Male Base Combined Mortality
from the Unadjusted Base Mortality Table from the Unadjusted Base Mortality Table Table (Year 2000), projected to the Base Year, and
for the population to the central age mor- for the population to the central age mor- the ratios of such rates are as follows:
tality rates from the Projected Applicable tality rates from the Projected Applicable
A B C
Base Combined Ratio of Mortality
Mortality Table Rate from
(Year 2000), Unadjusted Mortality
Mortality Rate from Projected to the Base Table to Base
Age Unadjusted Base Year, Age Group Mortality Rate
Group Mortality Table Mortality Rate (Year 2000)
45 to 49 0.00163 0.00165 98.79%
50 to 54 0.00211 0.00241 87.55%
55 to 59 0.00376 0.00431 87.24%
60 to 64 0.00765 0.00812 94.21%
65 to 69 0.01569 0.01506 104.18%
70 to 74 0.02439 0.02502 97.48%
75 to 79 0.03768 0.04387 85.89%
80 to 84 0.07948 0.07732 102.79%
Arithmetic Average Percentage 94.77%
2007–25 I.R.B. 1438 June 18, 2007
In accordance with subsection .02 of this section, the regulations, and, for comparison, what SECTION 14. EFFECTIVE DATE
the Fixed Percentage to be applied to the Male Base the Current Liability would have been if
Mortality Table (Year 2000), projected to the Base the substitute mortality table(s) had been This revenue procedure is effective for
Year, must be between 92.77% and 96.77%. How-
ever, a Fixed Percentage that is less than 94.18%
used to determine Current Liability, in all requests for the use of plan-specific
would fail to satisfy the requirements of subsection each case holding all other assumptions substitute mortality tables in accordance
.03 of this section because the ratio for the 65–69 constant. with § 430(h)(3)(C) of the Code and sec-
Age Group (i.e., 104.18%) would then not be within (2) For Comparison Years beginning in tion 303(h)(3)(C) of ERISA.
10 percentage points of a Fixed Percentage less than 2007, the liability to be reported is the Cur-
94.18%. Similarly, a Fixed Percentage that is greater SECTION 15. PAPERWORK
than 95.89% would fail the requirements of subsec-
rent Liability and, for comparison, what
tion .03 because the ratio for the 75–79 Age Group the Current Liability would have been if REDUCTION ACT
(i.e., 85.89%) would then not be within 10 percent- the substitute mortality table(s) had been
age points of a Fixed Percentage greater than 95.89%. used to determine Current Liability, hold- The collection of information con-
Accordingly, under the facts in this example, if the ap- ing all other assumptions constant. tained in this revenue procedure has been
plicant were to request the use of a Base Table con- reviewed and approved by the Office of
structed through the application of a percentage to the
(3) For Comparison Years beginning af-
ter 2007, the liability to be reported is Management and Budget in accordance
Male Base Mortality Table (Year 2000) that is a fixed
integer, the applicant would be limited to a Fixed Per- the Funding Target, determined without re- with the Paperwork Reduction Act (44
centage of 95%. gard to at-risk assumptions under § 430(i), U.S.C. section 3507) under control num-
and, for comparison, what the Funding ber 1545–2073.
SECTION 13. DEMONSTRATIONS An agency may not conduct or sponsor,
Target would have been if the substitute
WITH RESPECT TO BASE TABLES and a person is not required to respond
mortality table(s) had been used to deter-
mine the Funding Target, holding all other to, a collection of information unless the
The following information must be pro- collection of information displays a valid
assumptions constant.
vided with respect to each population for OMB control number.
.03 Annuity Factors. The following an-
which the use of substitute mortality tables The collection of information in this
nuity factors based on generational mor-
is requested: revenue procedure is in sections 3 through
tality tables for individuals whose year of
.01 Generational Mortality Tables. 13. This collection of information is re-
birth is 1950, determined using interest
Sample generational mortality tables, as quired to evaluate, process and obtain
and mortality assumptions consistent with
of the Requested Effective Plan Year, for approval of the request for the use of
those used under subsection .02 of this sec-
individuals whose years of birth are 1940, substitute mortality tables. This infor-
tion.
1950, and 1960, constructed from the Base mation will be used to make determina-
(1) For all Base Tables with the excep-
Tables using methodology in accordance tions under § 430(h)(3) of the Code. The
tion of annuitant Base Tables:
with § 1.430(h)(3)–1 (except that the pro- likely respondents are businesses or other
(a) Deferred to age 55 factors at quin-
jection period used to determine each for-profit institutions and nonprofit insti-
quennial ages from 20 to 50; and
particular mortality improvement factor tutions.
(b) Deferred to age 65 factors at quin-
is the number of years between the Base The estimated total annual report-
quennial ages from 20 to 60.
Year and the year for which the probability ing/recordkeeping burden is 25,400 hours.
(2) For all Base Tables with the excep-
of death is determined). The estimated annual burden per re-
tion of nonannuitant Base Tables, imme-
.02 Funding Target Comparisons. The spondent/recordkeeper varies from 335
diate annuity factors at quinquennial ages
liability of the plan(s) for which the use of to 681 hours, depending on individual
from 50 to 90.
substitute mortality tables is requested as circumstances, with an estimated average
.04 Graphical Displays. A comparison
of the valuation date for a plan year ending burden of 508 hours. The estimated an-
in the form of graphs with the X-axis rep-
no earlier than one year and one day before nual number of respondents/recordkeepers
resenting age and the Y-axis representing
the first plan year to which the substitute is 50.
the mortality rate, for each of the following
mortality tables will apply (the “Compari- The estimated annual frequency of re-
pairs of mortality rates, for each population
son Year”). The liability is to be measured sponses is once every 10 years.
for which the use of substitute mortality ta-
using generational mortality tables deter- Books or records relating to a collection
bles is requested:
mined in accordance with the methodol- of information must be retained as long
(1) The mortality rates from the Base
ogy described in subsection .01 of this sec- as their contents may become material in
Unadjusted Mortality Table and the mor-
tion. The liability is to be provided sep- the administration of any internal revenue
tality rates from the proposed Base Table;
arately for active participants, terminated law. Generally, tax returns and tax return
and
vested participants, and retirees and bene- information are confidential, as required
(2) The mortality rates from the pro-
ficiaries in pay status, and is to be deter- by 26 U.S.C. section 6103.
posed Base Table and from the applicable
mined as follows:
Standard Mortality Table (as described in
(1) For Comparison Years beginning in DRAFTING INFORMATION
section 11.06 of this revenue procedure),
2006, the liability to be reported is the Cur-
projected to the Base Year.
rent Liability recalculated using the mor- The principal author of this revenue
tality tables published in § 1.412(l)(7)–1 of procedure is Lawrence E. Isaacs of the
June 18, 2007 1439 2007–25 I.R.B.
Employee Plans, Tax Exempt and Gov- Assistance Service between the hours of his telephone number is (202) 283–9710
ernment Entities Division. For further 9 a.m. and 4:30 p.m. Eastern time, Mon- (not a toll-free call).
information regarding how this revenue day through Friday at 1–877–829–5500 (a
procedure applies to employee plans mat- toll-free call). Mr. Isaacs may be reached
ters, contact the Employee Plans Customer at retirementplanquestions@irs.gov and
Appendix A
REQUEST FOR THE USE OF SUBSTITUTE MORTALITY TABLES CHECKLIST
IS YOUR SUBMISSION COMPLETE?
Instructions
The Service will be able to respond more quickly to your request for the use of substitute mortality tables if it is carefully prepared
and complete. To ensure your request is in order, use this checklist. Answer each question in the checklist by indicating Y for
yes, N for no, or N/A for not applicable. Explanations must be provided for N or N/A responses. Sign and date the checklist
(as taxpayer or authorized representative) and place it on top of your request.
You must submit a completed copy of this checklist with your request. If a completed checklist is not submitted with your request
or if explanations are not provided for N and N/A responses, then your submission will be considered incomplete for purposes of
determining the first day of the 180-day period described in § 430(h)(3)(C)(v)(II) of the Code.
1. If you want to designate an authorized representative, have you included a properly executed Form 2848 (Power of
Attorney and Declaration of Representative)?
2. Have you satisfied all the requirements of Rev. Proc. 2007–4 or its successors (especially concerning signatures and
penalties of perjury statement)? (See sections 3.03(1) and (2))
3. Have you included statement of proposed deletions? (See section 3.03(3))
4. Have you included the user fee required under Rev. Proc. 2007–8 or its successors? (See section 3.02)
5. Have you included a copy of the Base Tables which will form the basis for the substitute mortality tables whose use
is requested? (See section 5.03)
6. Have you identified the first day of the first plan year for which the use of substitute mortality tables is requested?
(See section 5.03)
7. Have you stated the number of years for which the use of substitute mortality tables is requested? (See section 5.03)
8. Have you identified the Base Year of the Base Tables? (See section 5.03)
9. Have you included a description of the populations for which the use of substitute mortality tables is requested? (See
section 5.04)
10. Have you included a description of the populations for which the use of substitute mortality tables is not requested?
(See section 5.04)
11. Have you requested that the 180-day review period not begin until a separate request is received for another plan(s)
maintained by the applicant is received? (See section 5.06)
12. Have you identified all plans subject to § 430 maintained by the applicant, or members of the applicant’s controlled group,
including the additional information required for spun-off plans under section 6.03? (See section 6)
13. Have you identified the Experience Study Period? (See section 7.01)
14. Have you included a table showing the number of deaths, for each applicable population within the Plan (or within the
Permissive Group), for each year (and in total) of the Experience Study Period? (See section 7.03)
15. Have you included a table showing the average number of individuals during the Experience Study Period and the number
of individuals within the population as of the last day of the plan year immediately preceding the plan year during which
the use of substitute mortality tables is requested for each population within the Plan (or plans within the Permissive
Group) for which the use of a substitute mortality table is requested? (See section 8)
16. Have you included a table for each plan that is not within the Permissive Group showing the number of male and female
deaths during the plan’s Lack of Credible Mortality Experience Demonstration Period, including identification of the
Lack of Credible Mortality Experience Demonstration Period? (See sections 9.01 and 9.04)
2007–25 I.R.B. 1440 June 18, 2007
17. Have you included a table for each population within the Plan (or plans within the Permissive Group) for which the use of
substitute mortality tables is not requested, showing the number of deaths within the population? (See section 9.05)
18. Have you included a table showing the accrued benefits, counts of individuals covered under the plan, and other
information for all ages (or groups of ages) for each year (and in total) of the Experience Study Period? (See section 10.01)
19. Have you included a description of the method(s) used to adjust the accrued benefits of individuals who left for reasons
other than death? (See section 10.02)
20. Have you included complete copies of each Unadjusted Base Table? (See section 10.04)
21. Have you identified the graduation method(s) used to create the Base Table(s) from the Unadjusted Base Table(s), along
with any intermediate tables resulting from applying the graduation method(s)? (See sections 11.02 and 11.03)
22. Have you provided the rationale(s) for use of the particular graduation method(s) selected? (See section 11.04)
23. Have you described the method used to extend the Base Tables to extreme ages? (See section 11.05)
24. Have you identified a Fixed Percentage and a mortality table associated with all Base Tables constructed using the
alternate method provided in section 12? (See section 12.01)
25. Have you included a table showing the ratios of the mortality rates from the Unadjusted Base Mortality Table to the
central age mortality rates from the Projected Applicable Standard Mortality Table for each Base Table constructed using
the alternate method of section 12? (See section 12.01)
26. Have you included (three) sample generational mortality tables as of the Requested Effective Plan Year? (See section
13.01)
27. Have you included a comparison of hypothetical funding targets determined using standard mortality tables and
generational tables developed from the proposed Base Tables? (See section 13.02)
28. Have you included annuity factors based on generational mortality tables for individuals whose year of birth is 1950 for
each population for which the use of substitute mortality factors is requested? (See section 13.03)
29. Have you included graphical displays of the rates from the Base Unadjusted Mortality Tables, the proposed Base Tables,
and the applicable Standard Mortality Tables? (See section 13.04)
June 18, 2007 1441 2007–25 I.R.B.
26 CFR 601.602: Tax forms and instructions.
(Also Part 1, §§ 3504, 6011, 6061, 6302; 31.3504–1, 31.6011(a)–7, 31.6061–1, 31.6302–1.)
Rev. Proc. 2007–38
TABLE OF CONTENTS
SECTION 1. PURPOSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1442
SECTION 2. BACKGROUND . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1442
SECTION 3. SIGNIFICANT CHANGES TO REV. PROC. 2003–69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1443
SECTION 4. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1443
SECTION 5. SCOPE OF REPORTING AGENT AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1443
SECTION 6. COMPLETING A REPORTING AGENT AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445
SECTION 7. SUBMITTING A REPORTING AGENT AUTHORIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445
SECTION 8. SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445
SECTION 9. ADMINISTRATIVE REVIEW PROCESS FOR PROPOSED SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1445
SECTION 10. EFFECT OF SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 11. APPEAL OF SUSPENSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 12. INTERNAL REVENUE SERVICE CONTACTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 13. OTHER RELATED DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 14. EFFECT ON OTHER DOCUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 15. EFFECTIVE DATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 16. DRAFTING INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1446
SECTION 1. PURPOSE submit FTD information and FTP informa- SECTION 2. BACKGROUND
tion electronically as described in section
.01 This revenue procedure provides 4.02(3) of this revenue procedure. .01 Section 1.6011–1 of the Income
the requirements for completing and sub- (4) Receive duplicate copies of official Tax Regulations and § 31.6011(a)–7 of
mitting Form 8655, Reporting Agent Au- notices, correspondence, deposit require- the Employment Taxes and Collection of
thorization (Authorization). An Autho- ments, transcripts, or other information as Income Tax at Source Regulations (Em-
rization allows a taxpayer to designate a described in section 4.02(4) of this revenue ployment Tax Regulations) provide that
Reporting Agent to perform the following procedure. each return required under the regulations,
acts on behalf of a taxpayer: (5) Receive duplicate copies of offi- together with any prescribed copies or
(1) Sign and electronically file Form cial notices, correspondence, deposit re- supporting data, must be filled in and dis-
940, Employer’s Annual Federal Unem- quirements, transcripts, or other informa- posed of in accordance with applicable
ployment (FUTA) Tax Return; Form 941, tion with respect to FTDs and FTPs as de- forms, instructions, and regulations. Sec-
Employer’s QUARTERLY Federal Tax scribed in section 4.02(5) of this revenue tion 31.6011(a)–7 provides that the return
Return; Form 944, Employer’s ANNUAL procedure. may be made by an agent authorized by
Federal Tax Return; and those forms set .02 The technical specifications for the person required to make the return.
forth in section 4.02(1) of this revenue filing Authorization information are pub- .02 Section 31.6061–1 of the Employ-
procedure. lished separately in Publication 1474, ment Tax Regulations provides that a re-
(2) Sign and file on paper the tax returns Technical Specifications Guide For Re- turn may be signed for the taxpayer by an
set forth in section 4.02(2) of this revenue porting Agent Authorization and Federal agent duly authorized in accordance with
procedure. Tax Depositors. § 31.6011(a)–7 to make the return. Sec-
(3) Make federal tax deposits (FTDs) tion 1.6061–1 of the Income Tax Regula-
and other federal tax payments (FTPs) and tions provides that a return may be signed
2007–25 I.R.B. 1442 June 18, 2007
by an agent who is duly authorized under and Form 1099 Series information returns eral ANUAL de Impuestos del Patrono o
§ 1.6012–1(a)(5) or (b) to make the return. filed by the Reporting Agent on behalf of Empleador; Form 944–SS, Employer’s
.03 Section 31.6302–1 of the Employ- the taxpayer. Annual Federal Tax Return (American
ment Tax Regulations provides the rules (2) Section 5.09 has been added to pro- Samoa, Guam, the Commonwealth of the
for depositing employment taxes. Sec- vide that a Reporting Agent must provide Northern Mariana Islands, and the U.S.
tion 31.6302–1(h) implements section the taxpayer with a complete copy of any Virgin Islands); Form 945, Annual Return
6302(h) of the Internal Revenue Code, return filed by the Reporting Agent. of Withheld Federal Income Tax; Form
which requires the use of an electronic (3) Section 6.01 has been revised to pro- 1042, Annual Withholding Tax Return
fund transfer system for the collection of vide that an Authorization must be made for U.S. Source Income of Foreign Per-
federal depository taxes. The Electronic on a Form 8655 with a revision date of sons; and Form CT–1, Employer’s Annual
Federal Tax Payment System (EFTPS) is May 2005 or later, or on an approved sub- Railroad Retirement Tax Return, and any
the electronic fund transfer system devel- stitute form. amended and successor forms.
oped to collect these taxes. Rev. Proc. (4) Section 6.02 has been revised to pro- (3) Make FTDs and FTPs and submit
97–33, 1997–2 C.B. 371, provides gen- vide that an Authorization may be signed FTD information and FTP information
eral information about EFTPS, and Rev. and submitted electronically under proce- electronically for the taxes deposited and
Proc. 98–32, 1998–1 C.B. 935, provides dures promulgated by the Service. payments reported on applicable returns
information about EFTPS programs for (5) Sections 8 through 11 set forth rea- set forth on Form 8655.
Reporting Agents making FTDs and FTPs sons for suspending a Reporting Agent (4) Receive duplicate copies of offi-
on behalf of multiple taxpayers. from the Reporting Agent program, the ad- cial notices, correspondence, deposit re-
.04 The Service has prescribed Form ministrative review process for proposed quirements, transcripts, or other informa-
8655 as the appropriate authorization form suspensions, the effect of a suspension, tion with respect to the tax returns de-
for a taxpayer to use to designate a Report- and the procedures for administratively ap- scribed in section 4.01(1) or (2) of this rev-
ing Agent to perform the actions set forth pealing a suspension. enue procedure.
in section 4.02 of this revenue procedure. (6) Section 13 (former section 9) up- (5) Receive duplicate copies of offi-
.05 All references in this revenue proce- dates the list of other related documents. cial notices, correspondence, deposit re-
dure to forms and publications include all quirements, transcripts, or other informa-
future revisions and successor forms and SECTION 4. DEFINITIONS tion with respect to FTDs and FTPs.
publications. .03 Reporting Agent’s List. A Report-
.01 Reporting Agent. A Reporting ing Agent’s List (Agent’s List) identifies
SECTION 3. SIGNIFICANT CHANGES Agent is an accounting service, franchiser, all taxpayers for whom a Reporting Agent
TO REV. PROC. 2003–69 bank, service bureau, or other entity au- will file tax returns, make FTDs and FTPs,
thorized to perform on behalf of a taxpayer or submit FTD information and FTP infor-
.01 This revenue procedure modifies one or more of the acts described in this mation electronically. A separate Autho-
and supersedes Rev. Proc. 2003–69, revenue procedure. rization must be submitted for each tax-
2003–2 C.B. 403, by making the follow- .02 Authorization. An Authorization al- payer on the Agent’s List.
ing changes to Rev. Proc. 2003–69. lows a taxpayer to designate a Reporting
(1) Form 8655 may now be used to au- Agent to: SECTION 5. SCOPE OF REPORTING
thorize Reporting Agents to: (1) Sign and file electronically Form AGENT AUTHORIZATION
(a) Sign and file Form 944, Employer’s 940, Form 941, Form 944; and those forms
ANNUAL Federal Tax Return; Forma set forth on Form 8655, and amended and .01 The scope of an Authorization for
944–PR, Planilla Para La Declaración any successor forms. the filing of returns listed on Form 8655 is
ANUAL Del Patrono; Forma 944(SP), (2) Sign and file on paper Form as follows:
Declaración Federal ANUAL de Im- 944, Forma 940–PR, Planilla Para La (1) A taxpayer may authorize a Re-
puestos del Patrono o Empleador; Form Declaración ANUAL Del Patrono—La porting Agent to sign and file on the tax-
944–SS, Employer’s Annual Federal Tax Contribución Federal Para El Desempleo payer’s behalf any or all of the returns
Return (American Samoa, Guam, the (FUTA); Forma 941–PR, Planilla Para listed on Form 8655 and any amended and
Commonwealth of the Northern Mariana La Declaración Federal Trimestral Del successor forms. A Form 8655 that autho-
Islands, and the U.S. Virgin Islands); ad- Patrono—La Contribución Federal Al Se- rizes a Reporting Agent to sign and file a
ditional forms set forth on Form 8655; and guro Social Y Al Seguro Medicare; Form Form 941, Form 941–SS, Forma 941–PR,
amended forms and any successor forms 941–SS, Employer’s QUARTERLY Fed- Form 944, Form 944–SS, Forma 944(SP),
that replace those listed. eral Tax Return; Form 943, Employer’s or Forma 944–PR also authorizes the Re-
(b) Make FTDs and FTPs and submit Annual Federal Tax Return for Agricul- porting Agent to sign any other form in the
FTD and FTP information electronically tural Employees; Forma 943–PR, Planilla Form 941 or 944 series of returns.
for the tax deposits and payments reported Para La Declaración Anual De La Con- (2) A taxpayer may authorize a Report-
on Form 944. tribución Federal Del Patrono De Emplea- ing Agent to receive duplicate copies of
(c) Receive confidential taxpayer infor- dos Agrícolas; Forma 944–PR, Planilla notices, correspondence, deposit require-
mation from the Service to assist in re- Para La Declaración ANUAL Del Pa- ments, transcripts, or other information
sponding to notices relating to Form W–2 trono; Forma 944(SP), Declaración Fed-
June 18, 2007 1443 2007–25 I.R.B.
with respect to the returns filed by the and FTPs on Form 1120–C, U.S. Income (1) The Service must accept the Autho-
Reporting Agent. Tax Return for Cooperative Associations. rization and Agent’s List before the Re-
(3) A taxpayer may authorize a Report- (2) A taxpayer may authorize a Report- porting Agent may file a return on behalf
ing Agent to receive confidential taxpayer ing Agent to receive duplicate copies of of a taxpayer.
information from the Service to assist in notices and correspondence for FTDs and (2) The Reporting Agent must com-
responding to notices relating to the Form FTPs made by the Reporting Agent for the ply with the requirements of Rev. Proc.
W–2 or Form 1099 series of information taxpayer. 98–32, 1998–1 C.B. 935, before the Re-
returns. (3) Regardless of the method desig- porting Agent may make electronic FTDs
(4) An Authorization that permits a Re- nated by the taxpayer, a Reporting Agent or FTPs on behalf of a taxpayer or submit
porting Agent to make returns also per- must make FTDs and submit FTD infor- FTD information or FTP information elec-
mits a Reporting Agent to request informa- mation through the EFTPS for a taxpayer tronically.
tion from the Service or submit informa- that is required to make FTDs and submit (3) See section 13 of this revenue proce-
tion to the Service about the returns filed FTD information through the EFTPS pur- dure for a list of other applicable guidance.
by the Reporting Agent. This authority ex- suant to section 6302(h). .04 A new Authorization must be sub-
tends to any information concerning penal- (4) An Authorization that permits a mitted to the Service for any increase or
ties that may arise from the returns, includ- Reporting Agent to make FTDs and FTPs decrease in the scope of the authority of
ing information that may assist the Ser- also permits the Reporting Agent to re- a Reporting Agent to act on behalf of the
vice in determining whether it would be quest information from the Service or taxpayer, or if the taxpayer appoints a new
appropriate to grant relief from any penal- submit information to the Service on the Reporting Agent. Receipt by the Service
ties arising from the returns. This author- FTDs and FTPs submitted by the Re- of an Authorization designating a new Re-
ity continues regardless of a change in fil- porting Agent. It further permits the porting Agent terminates the authority of
ing requirements. For instance, if a Re- Reporting Agent to submit any informa- the prior Reporting Agent for all purposes
porting Agent, pursuant to an Authoriza- tion concerning penalties that may arise for tax periods beginning on or after the ef-
tion, made and filed a Form 941 on behalf from the returns, including information fective date of the new Authorization. An
of a taxpayer prior to the Service notifying that may assist the Service in determin- Authorization designating a new Report-
the taxpayer that the taxpayer’s filing re- ing whether it would be appropriate to ing Agent also terminates the authority of
quirements was changed from Form 941 to grant relief from penalties. This author- the prior Reporting Agent to receive du-
Form 944, the Reporting Agent has author- ity continues regardless of a change in plicate copies of notices. For the tax peri-
ity to continue to request information from forms. For instance, if a Reporting Agent ods beginning before the effective date of
the Service or submit information to the had authority to make FTDs and FTPs in the new Authorization, the prior Reporting
Service about the previously-filed Form connection with Form 990–C and did so, Agent retains the authority specified in the
941, assuming the Reporting Agent’s au- and the Service later replaces Form 990–C prior Authorization unless the taxpayer ex-
thorization remains in effect. with Form 1120–C, absent a change to plicitly revokes the prior Authorization.
(5) An Authorization, however, does the Authorization, the Reporting Agent .05 An Authorization does not relieve
not permit the Reporting Agent to request has authority to make FTDs and FTPs on the taxpayer of the responsibility (or from
the abatement of any penalties that may behalf of the taxpayer in connection with liability for failing) to ensure that all tax
arise from the returns filed by the Re- Form 1120–C. The Reporting Agent also returns are filed timely and that all FTDs
porting Agent or to perform in any other retains authority to request information and FTPs are made timely.
way any acts that constitute representa- from the Service or submit information .06 A Reporting Agent may use an Au-
tion of the taxpayer within the meaning of to the Service about the FTDs and FTPs thorization to file paper returns listed on
§ 601.501(b)(13) of the Statement of Pro- relating to Form 990–C. Form 8655 on behalf of a taxpayer only if:
cedural Rules. (5) An Authorization does not per- (1) The late receipt of payroll informa-
.02 The scope of an Authorization for mit the Reporting Agent to request the tion from a taxpayer has jeopardized the
making FTDs and FTPs and submitting abatement of any penalties that may arise timely electronic filing of the taxpayer’s
FTD information and FTP information from the FTDs or FTPs made by the Re- return;
electronically is as follows: porting Agent or to perform in any other (2) The paper return amends Form 940
(1) A taxpayer may authorize a Report- way any acts that constitute representa- filed under the magnetic tape or electronic
ing Agent to make FTDs and FTPs for any tion of the taxpayer within the meaning filing programs referenced in section 13 of
taxes reported on any of the returns listed of § 601.501(b)(13) of the Statement of this revenue procedure;
on Form 8655 and to submit FTD infor- Procedural Rules. (3) The Service’s rejection of an elec-
mation and FTP information electronically .03 An Authorization becomes effective tronic filing has jeopardized the timely fil-
on the taxpayer’s behalf. A Form 8655 for the tax period(s) designated by the Re- ing of the taxpayer’s return;
that authorizes a Reporting Agent to pre- porting Agent and taxpayer and remains in (4) The returns are listed in section
pare and make FTDs and FTPs on Form effect for subsequent periods until revoked 4.02(2) of this revenue procedure; or
990–C, Farmers’ Cooperative Association by the taxpayer or terminated by the Re- (5) The electronic filing coordinator for
Income Tax Return, also authorizes a Re- porting Agent or the Service, subject to the a Reporting Agent participating in an elec-
porting Agent to prepare and make FTDs following: tronic filing program referenced in section
2007–25 I.R.B. 1444 June 18, 2007
13 of this revenue procedure has requested defined in section 6103(b)(2)) of the tax- cally, as appropriate, but if the number of
paper returns. payer. The Authorization may be signed taxpayers/clients exceeds 100, the Agent’s
.07 A Reporting Agent authorized by and submitted electronically under proce- List must be filed electronically. For spe-
Form 8655 may prepare a paper tax return dures promulgated by the Service. cific information concerning the require-
for the taxpayer’s signature. .03 Except to the extent provided in sec- ments for filing and updating Agent’s
.08 Each paper tax return must be tion 6.04 of this revenue procedure, an Au- Lists, see Publication 1474 and the docu-
signed by the taxpayer, by the taxpayer’s thorization will remain in effect until the ments listed in section 13 of this revenue
authorized representative, or by a Report- Service receives a revocation of the Au- procedure. The Service contacts listed in
ing Agent permitted in section 5.06 of this thorization or a new Authorization or a Re- section 13 of this revenue procedure may
revenue procedure to file paper returns on porting Agent is suspended. also be contacted for this information.
behalf of the taxpayer. .04 A new Authorization is not required
.09 The Reporting Agent must provide to replace an Authorization made on Form SECTION 8. SUSPENSION
the taxpayer with a complete copy of any 8655 with a revision date before Octo-
returns filed by the Reporting Agent. This ber 1995 (or made on an equivalent sub- .01 The Service reserves the right to
information may be provided on a replica stitute) that was previously submitted to suspend a Reporting Agent from the Re-
of an official form or in any other format the Service by a Reporting Agent if the porting Agent program for the following
that provides all of the return information Authorization places no restriction on the reasons (this list is not all inclusive):
and references the line numbers of the of- medium for filing Forms 940 or 941 and (1) Failing to perform the acts described
ficial form. the Reporting Agent advises the taxpayer in section 4.02 of this revenue procedure or
.10 A Reporting Agent must keep a that its Forms 940 and 941 may be filed Publication 1474.
copy of each Authorization designating electronically and that the taxpayer has the (2) Submitting payment information on
that Reporting Agent as an agent for a tax- option to reject electronic filing. A Re- behalf of taxpayers for which the Report-
payer at the Reporting Agent’s principal porting Agent may use whatever method ing Agent did not receive Authorizations.
place of business and make it available the Reporting Agent deems the most effi- (3) Failing to comply with the require-
for examination by the Service until the cient and timely method to convey the ad- ments of any regulation, revenue proce-
period of limitations for assessment of vice. A taxpayer’s rejection of electronic dure, or other published guidance applica-
tax for the last return filed pursuant to the filing of Forms 940 or 941 must be sub- ble to Reporting Agents.
Authorization expires. mitted in writing to the Reporting Agent, (4) Failing to cooperate with the Ser-
and upon receipt the Reporting Agent must vice’s efforts to monitor Reporting Agents
SECTION 6. COMPLETING AN immediately remove the taxpayer from the and investigate abuse in the Reporting
AUTHORIZATION Agent’s List or database of taxpayers for Agent program.
which the Reporting Agent files returns (5) Receiving significant complaints
.01 An Authorization must be submit- electronically. about the Reporting Agent’s performance
ted on Form 8655 with a revision date in the Reporting Agent program.
of May 2005 or later or on an approved SECTION 7. SUBMITTING .02 If the Service informs a Report-
substitute form as described in Publica- A REPORTING AGENT ing Agent that a certain action is a reason
tion 1167, General Rules and Specifica- AUTHORIZATION for suspension and the action continues,
tions for Substitute Forms and Schedules. the Service may send the Reporting Agent
When completing Form 8655, a taxpayer .01 A Reporting Agent that intends to a notice proposing suspension of the Re-
may strike out any non-applicable portions use an Authorization to electronically file porting Agent from the Reporting Agent
of the form. Once completed, a Report- Forms 940, Forms 941, or Forms 944, program. A notice proposing suspension,
ing Agent may fax the Authorization to the or make FTDs or FTPs (and submit re- however, may be sent without a warning if
Service. lated information) electronically must for- the Reporting Agent’s actions indicate an
.02 An Authorization must be signed mally apply to the Service for these privi- intentional disregard of the rules. A no-
by the taxpayer or an authorized repre- leges. The application process for permis- tice proposing suspension will describe the
sentative holding a power of attorney that sion to electronically file Forms 940, 941, reasons for the proposed suspension, the
specifically authorizes the representative and 944 and for participation in EFTPS is length of the suspension, and the condi-
to sign returns on behalf of the taxpayer. contained in the documents (or their suc- tions that need to be met before the sus-
If the Authorization provides that the Re- cessors) listed in section 13 of this rev- pension will terminate.
porting Agent is authorized to receive tax enue procedure. Applications must be ac-
return notices, correspondence, deposit re- companied by individual Authorizations, SECTION 9. ADMINISTRATIVE
quirements, and transcripts from the Ser- signed as provided in section 6.02 of this REVIEW PROCESS FOR PROPOSED
vice, or discuss taxpayer account infor- revenue procedure, and an Agent’s List (if SUSPENSION
mation with Service representatives and is required by the applicable guidance docu-
signed by a person other than the taxpayer, ment). .01 A Reporting Agent that receives
the authorized representative must be au- .02 An Agent’s List must contain each a notice proposing suspension from the
thorized both to receive, and to designate taxpayer’s employer identification num- Reporting Agent program, as described
others to receive, tax return information (as ber. Agent’s Lists may be filed electroni- in section 8.02 of this revenue procedure,
June 18, 2007 1445 2007–25 I.R.B.
may request an administrative review prior .04 A Reporting Agent will be able to (2) For electronic filing of Form 940
to the suspension taking effect. perform the acts described in section 4.02 and 941, see Rev. Proc. 2005–60, 2005–2
.02 The request for an administrative re- of this revenue procedure without re-reg- C.B. 449.
view must be in writing and contain de- istering in the Reporting Agent program (3) For participation in EFTPS, see Rev.
tailed reasons, with supporting documen- after the stated suspension period expires; Proc. 98–32, 1998–1 C.B. 935.
tation, for withdrawal of the proposed sus- and the reason(s) for suspension are cor- (4) For the Service’s e-file program
pension. rected. generally, see Publication 3112, IRS e-file
.03 The written request for an admin- Application and Participation.
istrative review and a copy of the notice SECTION 11. APPEAL OF A
proposing suspension must be delivered to SUSPENSION SECTION 14. EFFECT ON OTHER
the address designated in the notice within DOCUMENTS
30 days of the effective date on the notice. .01 If a Reporting Agent receives a sus-
.04 If a written request for administra- pension letter from the Service, the Report- This revenue procedure modifies and
tive review is timely submitted, the Service ing Agent is entitled to appeal, by writ- supersedes Rev. Proc. 2003–69, 2003–2
will, after consideration of the request, ei- ten protest, to the Service. The written C.B. 403.
ther issue a suspension letter or notify the protest must be delivered to the address
SECTION 15. EFFECTIVE DATE
Reporting Agent in writing that the pro- designated on the suspension letter. Dur-
posed suspension is withdrawn. ing the appeals process, the suspension re-
This revenue procedure is effective
.05 Failure to submit a timely written mains in effect.
June 18, 2007.
request for an administrative review irre- .02 The written protest must be received
vocably terminates the Reporting Agent’s by the Service within 30 days of the effec- SECTION 16. DRAFTING
right to an administrative review of the tive date on the suspension letter. The writ- INFORMATION
proposed suspension, and the Service will ten protest must contain detailed reasons,
issue a suspension letter. with supporting documentation, for with- The principal author of this revenue
drawal of the suspension. procedure is Michael Hara of the Office of
SECTION 10. EFFECT OF .03 Failure to appeal within the 30-day Associate Chief Counsel (Procedure and
SUSPENSION period described in section 11.02 of this Administration). Mr. Hara may be con-
revenue procedure irrevocably terminates tacted at (202) 622–4910 (not a toll-free
.01 The Reporting Agent’s suspension the Reporting Agent’s right to appeal the number).
will continue for the length of time spec- suspension under section 11.01.
ified in the suspension letter, or until the
conditions for terminating the suspension SECTION 12. INTERNAL REVENUE 26 CFR 601.201: Rulings and determination letters.
have been met, whichever is later. If a Re- (Also Part I, § 102.)
SERVICE CONTACTS
porting Agent is suspended, the Service’s
subsequent determination of whether a Publication 1474 and Publication 1167
Rev. Proc. 2007–39
reason for suspension has been corrected may be obtained electronically via the
is not subject to administrative review or Service’s website at http://www.irs.gov. SECTION 1. PURPOSE
appeal. In addition, requests for Publication 1474
.02 After suspension, a Reporting and questions regarding this revenue pro- This revenue procedure amplifies Rev.
Agent may not perform the acts described cedure may be addressed to the Service at: Proc. 2007–3, 2007–1 I.R.B. 108, which
in this revenue procedure. As an excep- sets forth areas of the Internal Revenue
tion, a Reporting Agent may submit an Internal Revenue Service Code in which the Internal Revenue Ser-
FTD if the FTD is due not more than 30 Accounts Management Service Center vice will not issue letter rulings or deter-
days after the effective date on the suspen- MS 6748 RAF Team mination letters.
sion letter. A Reporting Agent, however, 1973 N Rulon White Blvd
cannot submit FTPs during the suspension Ogden, UT 84201 SECTION 2. BACKGROUND
period.
.03 A Reporting Agent must provide SECTION 13. OTHER RELATED Section 3 of Rev. Proc. 2007–3 sets
written notification of a suspension from DOCUMENTS forth a list of those areas of the Internal
the Reporting Agent program to each tax- Revenue Code under the jurisdiction of
payer in the program within 10 days from These documents describe programs the Associate Chief Counsel (Corporate),
the date on the suspension letter. This that require an Authorization as a prereq- the Associate Chief Counsel (Financial In-
notification must be provided irrespective uisite to participation: stitutions and Products), the Associate
of the length of the suspension or how (1) For rules regarding Form 944, see Chief Counsel (Income Tax and Ac-
quickly the Reporting Agent believes it §§ 31.6011(a)–1T, 31.6011(a)–4T, and counting), the Associate Chief Counsel
may meet the conditions for terminating 31.6302–1T of the Employment Tax Reg- (Passthroughs and Special Industries),
the suspension. ulations. the Associate Chief Counsel (Procedure
2007–25 I.R.B. 1446 June 18, 2007
and Administration), and the Division a transfer is a gift within the meaning of SECTION 6. DRAFTING
Counsel/Associate Chief Counsel (Tax § 102(a). INFORMATION
Exempt and Government Entities) relating
to issues on which the Internal Revenue SECTION 4. EFFECT ON OTHER The principal author of this revenue
Service will not issue letter rulings or de- DOCUMENTS procedure is Amy Pfalzgraf of the Office
termination letters. of Associate Chief Counsel (Income Tax
Rev. Proc. 2007–3 is amplified. and Accounting). For further information
SECTION 3. PROCEDURE regarding this revenue procedure, contact
SECTION 5. EFFECTIVE DATE
Ms. Pfalzgraf at (202) 622–4960 (not a
Rev. Proc. 2007–3 is amplified by toll-free call).
adding the following to section 3.01: Sec- This revenue procedure applies to all
tion 102. Gifts and Inheritances. Whether ruling requests pending or received in the
National Office on or after June 1, 2007.
June 18, 2007 1447 2007–25 I.R.B.
Part IV. Items of General Interest
Limitations on Benefits and On page 16883, column 2, in the pream- Comments are requested as to whether
Contributions Under Qualified ble, under the paragraph heading “C. De- additional guidance is needed with respect
Plans; Correction termination of High-3 Average Compen- to mid-year changes to a § 401(k) safe
sation”, first line from the bottom of the harbor plan (other than changes described
Announcement 2007–58 last paragraph of that heading, the lan- in this announcement or in § 1.401(k)–3(f)
guage “participant in rehired.” is corrected of the Income Tax Regulations (relating
AGENCY: Internal Revenue Service to read “participant is rehired.” to mid-year amendments to become a
(IRS), Treasury. safe harbor plan using nonelective con-
LaNita Van Dyke, tributions) and § 1.401(k)–3(g) (relat-
ACTION: Correction to final regulations. Chief, Publications and ing to mid-year amendments to suspend
Regulations Branch, or reduce safe harbor matching contri-
SUMMARY: This document contains a Legal Processing Division, butions)). Written comments should
correction to final regulations (T.D. 9319, Associate Chief Counsel be submitted by September 17, 2007.
2007–18 I.R.B. 1041) that were published (Procedure and Administration). Send submissions to CC:PA:LPD:DRU
in the Federal Register on Thursday, (Announcement 2007–59), Room 5203,
(Filed by the Office of the Federal Register on May 22, 2007,
April 5, 2007 (72 FR 16878) regarding 8:45 a.m., and published in the issue of the Federal Register Internal Revenue Service, POB 7604,
the limitations of section 415, including for May 23, 2007, 72 F.R. 28854)
Ben Franklin Station, Washington, D.C.
updates to the regulations for numerous 20044. Comments may be hand delivered
statutory changes since comprehensive to CC:PA:LPD:DRU (Announcement
final regulations were last published under Guidance for Employers 2007–59), Room 5203, Internal Revenue
section 415. Concerned About Certain Service, 1111 Constitution Avenue, NW,
DATES: This correction is effective May Mid-Year Changes to a Washington, DC. Alternatively, com-
23, 2007. Section 401(k) Safe Harbor ments may be submitted via the Internet
at notice.comments@irscounsel.treas.gov
Plan (Announcement 2007–59). All comments
FOR FURTHER INFORMATION
CONTACT: Vernon S. Carter at (202) will be available for public inspection.
Announcement 2007–59
622–6060 or Linda S. F. Marshall at (202)
622–6090 (not toll-free numbers). Drafting Information
The Internal Revenue Service has
learned that some employers have con- The principal authors of this announce-
SUPPLEMENTARY INFORMATION:
cerns about adding provisions during a ment are Roger Kuehnle of the Employee
Background plan year to their § 401(k) safe harbor Plans, Tax Exempt and Government
plans (described in § 401(k)(12) of the Entities Division and Cathy Vohs and
The correction notice that is the subject Internal Revenue Code) in order to take Bill Gibbs of the Office of the Divi-
of this document is under sections 401(a), advantage of recently effective changes sion Counsel/Associate Chief Counsel
401(a)(4), 401(a)(9), 401(k), 402, 414(s), to the rules for § 401(k) plans, such as (Tax Exempt and Government Enti-
415, 416, 457, and 924 of the Internal Rev- a qualified Roth contribution program ties). For further information regarding
enue Code. (as defined in § 402A) or hardship with- this announcement, please contact the
drawals described in part III of Notice Employee Plans taxpayer assistance
Need for Correction 2007–7, 2007–5 I.R.B. 395, when the answering service between 8:30 a.m.
pre-year safe harbor notice required by and 4:30 p.m., Eastern time, Monday
As published, final regulations (T.D.
§ 401(k)(12)(D) does not include informa- through Friday at 1–877–829–5500
9319) contain an error that may prove to
tion about the added provisions. (a toll-free call) or Mr. Kuehnle at
be misleading and is in need of clarifica-
This announcement provides that a plan retirementplanquestions@irs.gov.
tion.
will not fail to satisfy the requirements to Ms. Vohs may be reached at
Correction of Publication be a § 401(k) safe harbor plan merely be- 202–622–6090 and Mr. Gibbs may
cause of mid-year changes to implement be reached at 202–622–6060 (not toll-free
Accordingly, the publication of the fi- a qualified Roth contribution program (as calls).
nal regulations (T.D. 9319), which was the defined in § 402A) or the hardship with-
subject of FR Doc. E7–5750, is corrected drawals described in part III of Notice
as follows: 2007–7.
2007–25 I.R.B. 1448 June 18, 2007
Definition of Terms
Revenue rulings and revenue procedures and B, the prior ruling is modified because of a prior ruling, a combination of terms
(hereinafter referred to as “rulings”) that it corrects a published position. (Compare is used. For example, modified and su-
have an effect on previous rulings use the with amplified and clarified, above). perseded describes a situation where the
following defined terms to describe the ef- Obsoleted describes a previously pub- substance of a previously published ruling
fect: lished ruling that is not considered deter- is being changed in part and is continued
Amplified describes a situation where minative with respect to future transac- without change in part and it is desired to
no change is being made in a prior pub- tions. This term is most commonly used in restate the valid portion of the previously
lished position, but the prior position is be- a ruling that lists previously published rul- published ruling in a new ruling that is self
ing extended to apply to a variation of the ings that are obsoleted because of changes contained. In this case, the previously pub-
fact situation set forth therein. Thus, if in laws or regulations. A ruling may also lished ruling is first modified and then, as
an earlier ruling held that a principle ap- be obsoleted because the substance has modified, is superseded.
plied to A, and the new ruling holds that the been included in regulations subsequently Supplemented is used in situations in
same principle also applies to B, the earlier adopted. which a list, such as a list of the names of
ruling is amplified. (Compare with modi- Revoked describes situations where the countries, is published in a ruling and that
fied, below). position in the previously published ruling list is expanded by adding further names in
Clarified is used in those instances is not correct and the correct position is subsequent rulings. After the original rul-
where the language in a prior ruling is be- being stated in a new ruling. ing has been supplemented several times, a
ing made clear because the language has Superseded describes a situation where new ruling may be published that includes
caused, or may cause, some confusion. the new ruling does nothing more than re- the list in the original ruling and the ad-
It is not used where a position in a prior state the substance and situation of a previ- ditions, and supersedes all prior rulings in
ruling is being changed. ously published ruling (or rulings). Thus, the series.
Distinguished describes a situation the term is used to republish under the Suspended is used in rare situations
where a ruling mentions a previously pub- 1986 Code and regulations the same po- to show that the previous published rul-
lished ruling and points out an essential sition published under the 1939 Code and ings will not be applied pending some
difference between them. regulations. The term is also used when future action such as the issuance of new
Modified is used where the substance it is desired to republish in a single rul- or amended regulations, the outcome of
of a previously published position is being ing a series of situations, names, etc., that cases in litigation, or the outcome of a
changed. Thus, if a prior ruling held that a were previously published over a period of Service study.
principle applied to A but not to B, and the time in separate rulings. If the new rul-
new ruling holds that it applies to both A ing does more than restate the substance
Abbreviations
The following abbreviations in current use ER—Employer. PRS—Partnership.
and formerly used will appear in material ERISA—Employee Retirement Income Security Act. PTE—Prohibited Transaction Exemption.
EX—Executor. Pub. L.—Public Law.
published in the Bulletin.
F—Fiduciary. REIT—Real Estate Investment Trust.
FC—Foreign Country. Rev. Proc.—Revenue Procedure.
A—Individual.
FICA—Federal Insurance Contributions Act. Rev. Rul.—Revenue Ruling.
Acq.—Acquiescence.
B—Individual. FISC—Foreign International Sales Company. S—Subsidiary.
FPH—Foreign Personal Holding Company. S.P.R.—Statement of Procedural Rules.
BE—Beneficiary.
F.R.—Federal Register. Stat.—Statutes at Large.
BK—Bank.
B.T.A.—Board of Tax Appeals. FUTA—Federal Unemployment Tax Act. T—Target Corporation.
FX—Foreign corporation. T.C.—Tax Court.
C—Individual.
G.C.M.—Chief Counsel’s Memorandum. T.D. —Treasury Decision.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations. GE—Grantee. TFE—Transferee.
GP—General Partner. TFR—Transferor.
CI—City.
GR—Grantor. T.I.R.—Technical Information Release.
COOP—Cooperative.
Ct.D.—Court Decision. IC—Insurance Company. TP—Taxpayer.
I.R.B.—Internal Revenue Bulletin. TR—Trust.
CY—County.
LE—Lessee. TT—Trustee.
D—Decedent.
DC—Dummy Corporation. LP—Limited Partner. U.S.C.—United States Code.
LR—Lessor. X—Corporation.
DE—Donee.
M—Minor. Y—Corporation.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation. Nonacq.—Nonacquiescence. Z —Corporation.
O—Organization.
DR—Donor.
P—Parent Corporation.
E—Estate.
PHC—Personal Holding Company.
EE—Employee.
PO—Possession of the U.S.
E.O.—Executive Order.
PR—Partner.
June 18, 2007 i 2007–25 I.R.B.
Numerical Finding List1 Announcements— Continued: Notices— Continued:
2007-53, 2007-23 I.R.B. 1383 2007-47, 2007-24 I.R.B. 1393
Bulletins 2007–1 through 2007–25
2007-54, 2007-23 I.R.B. 1383 2007-48, 2007-25 I.R.B. 1428
Announcements: 2007-55, 2007-23 I.R.B. 1384 2007-49, 2007-25 I.R.B. 1429
2007-56, 2007-23 I.R.B. 1384 2007-50, 2007-25 I.R.B. 1430
2007-1, 2007-1 I.R.B. 243
2007-57, 2007-24 I.R.B. 1418
2007-2, 2007-2 I.R.B. 263 Proposed Regulations:
2007-58, 2007-25 I.R.B. 1448
2007-3, 2007-4 I.R.B. 376
2007-59, 2007-25 I.R.B. 1448 REG-100841-97, 2007-12 I.R.B. 763
2007-4, 2007-7 I.R.B. 518
Notices: REG-153037-01, 2007-15 I.R.B. 942
2007-5, 2007-4 I.R.B. 376
REG-157711-02, 2007-8 I.R.B. 537
2007-6, 2007-4 I.R.B. 376
2007-1, 2007-2 I.R.B. 254 REG-123365-03, 2007-23 I.R.B. 1357
2007-7, 2007-4 I.R.B. 377
2007-2, 2007-2 I.R.B. 254 REG-143316-03, 2007-21 I.R.B. 1292
2007-8, 2007-5 I.R.B. 416
2007-3, 2007-2 I.R.B. 255 REG-149856-03, 2007-24 I.R.B. 1394
2007-9, 2007-5 I.R.B. 417
2007-4, 2007-2 I.R.B. 260 REG-144859-04, 2007-20 I.R.B. 1245
2007-10, 2007-6 I.R.B. 464
2007-5, 2007-3 I.R.B. 269 REG-159444-04, 2007-9 I.R.B. 618
2007-11, 2007-6 I.R.B. 464
2007-6, 2007-3 I.R.B. 272 REG-115403-05, 2007-12 I.R.B. 767
2007-12, 2007-6 I.R.B. 465
2007-7, 2007-5 I.R.B. 395 REG-152043-05, 2007-2 I.R.B. 263
2007-13, 2007-7 I.R.B. 519
2007-8, 2007-3 I.R.B. 276 REG-158677-05, 2007-16 I.R.B. 975
2007-14, 2007-7 I.R.B. 519
2007-9, 2007-5 I.R.B. 401 REG-161919-05, 2007-6 I.R.B. 463
2007-15, 2007-8 I.R.B. 596
2007-10, 2007-4 I.R.B. 354 REG-125632-06, 2007-5 I.R.B. 415
2007-16, 2007-8 I.R.B. 597
2007-11, 2007-5 I.R.B. 405 REG-143601-06, 2007-24 I.R.B. 1398
2007-17, 2007-8 I.R.B. 597
2007-12, 2007-5 I.R.B. 409 REG-146247-06, 2007-16 I.R.B. 977
2007-18, 2007-9 I.R.B. 625
2007-13, 2007-5 I.R.B. 410 REG-147144-06, 2007-10 I.R.B. 680
2007-19, 2007-7 I.R.B. 521
2007-14, 2007-7 I.R.B. 501 REG-156420-06, 2007-18 I.R.B. 1110
2007-20, 2007-8 I.R.B. 599
2007-15, 2007-7 I.R.B. 503 REG-156779-06, 2007-17 I.R.B. 1015
2007-21, 2007-9 I.R.B. 630
2007-16, 2007-8 I.R.B. 536 REG-157834-06, 2007-13 I.R.B. 840
2007-22, 2007-9 I.R.B. 631
2007-17, 2007-12 I.R.B. 748
2007-23, 2007-10 I.R.B. 665 Revenue Procedures:
2007-18, 2007-9 I.R.B. 608
2007-24, 2007-10 I.R.B. 681
2007-19, 2007-11 I.R.B. 689 2007-1, 2007-1 I.R.B. 1
2007-25, 2007-10 I.R.B. 682
2007-20, 2007-9 I.R.B. 610 2007-2, 2007-1 I.R.B. 88
2007-26, 2007-10 I.R.B. 682
2007-21, 2007-9 I.R.B. 611 2007-3, 2007-1 I.R.B. 108
2007-27, 2007-11 I.R.B. 733
2007-22, 2007-10 I.R.B. 670 2007-4, 2007-1 I.R.B. 118
2007-28, 2007-10 I.R.B. 683
2007-23, 2007-11 I.R.B. 690 2007-5, 2007-1 I.R.B. 161
2007-29, 2007-11 I.R.B. 733
2007-24, 2007-12 I.R.B. 750 2007-6, 2007-1 I.R.B. 189
2007-30, 2007-11 I.R.B. 734
2007-25, 2007-12 I.R.B. 760 2007-7, 2007-1 I.R.B. 227
2007-31, 2007-12 I.R.B. 769
2007-26, 2007-14 I.R.B. 870 2007-8, 2007-1 I.R.B. 230
2007-32, 2007-11 I.R.B. 734
2007-27, 2007-13 I.R.B. 814 2007-9, 2007-3 I.R.B. 278
2007-33, 2007-13 I.R.B. 841
2007-28, 2007-14 I.R.B. 880 2007-10, 2007-3 I.R.B. 289
2007-34, 2007-13 I.R.B. 842
2007-29, 2007-14 I.R.B. 881 2007-11, 2007-2 I.R.B. 261
2007-35, 2007-15 I.R.B. 949
2007-30, 2007-14 I.R.B. 883 2007-12, 2007-4 I.R.B. 354
2007-36, 2007-15 I.R.B. 953
2007-31, 2007-16 I.R.B. 971 2007-13, 2007-3 I.R.B. 295
2007-37, 2007-15 I.R.B. 954
2007-32, 2007-17 I.R.B. 996 2007-14, 2007-4 I.R.B. 357
2007-38, 2007-15 I.R.B. 954
2007-33, 2007-21 I.R.B. 1284 2007-15, 2007-3 I.R.B. 300
2007-39, 2007-15 I.R.B. 954
2007-34, 2007-17 I.R.B. 996 2007-16, 2007-4 I.R.B. 358
2007-40, 2007-16 I.R.B. 978
2007-35, 2007-15 I.R.B. 940 2007-17, 2007-4 I.R.B. 368
2007-41, 2007-16 I.R.B. 978
2007-36, 2007-17 I.R.B. 1000 2007-18, 2007-5 I.R.B. 413
2007-42, 2007-17 I.R.B. 1037
2007-37, 2007-17 I.R.B. 1002 2007-19, 2007-7 I.R.B. 515
2007-43, 2007-17 I.R.B. 1038
2007-38, 2007-18 I.R.B. 1103 2007-20, 2007-7 I.R.B. 517
2007-44, 2007-19 I.R.B. 1238
2007-39, 2007-20 I.R.B. 1243 2007-21, 2007-9 I.R.B. 613
2007-45, 2007-18 I.R.B. 1122
2007-40, 2007-21 I.R.B. 1284 2007-22, 2007-10 I.R.B. 675
2007-46, 2007-19 I.R.B. 1239
2007-41, 2007-21 I.R.B. 1287 2007-23, 2007-10 I.R.B. 675
2007-47, 2007-20 I.R.B. 1260
2007-42, 2007-21 I.R.B. 1288 2007-24, 2007-11 I.R.B. 692
2007-48, 2007-20 I.R.B. 1274
2007-43, 2007-22 I.R.B. 1318 2007-25, 2007-12 I.R.B. 761
2007-49, 2007-21 I.R.B. 1300
2007-44, 2007-22 I.R.B. 1320 2007-26, 2007-13 I.R.B. 814
2007-50, 2007-22 I.R.B. 1337
2007-45, 2007-22 I.R.B. 1320 2007-27, 2007-14 I.R.B. 887
2007-51, 2007-22 I.R.B. 1337
2007-46, 2007-23 I.R.B. 1342 2007-28, 2007-16 I.R.B. 974
2007-52, 2007-22 I.R.B. 1337
1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2006–27 through 2006–52 is in Internal Revenue Bulletin
2006–52, dated December 26, 2006.
2007–25 I.R.B. ii June 18, 2007
Revenue Procedures— Continued: Treasury Decisions:
2007-29, 2007-17 I.R.B. 1004
9298, 2007-6 I.R.B. 434
2007-30, 2007-18 I.R.B. 1104
9299, 2007-6 I.R.B. 460
2007-31, 2007-19 I.R.B. 1225
9300, 2007-2 I.R.B. 246
2007-32, 2007-22 I.R.B. 1322
9301, 2007-2 I.R.B. 244
2007-33, 2007-21 I.R.B. 1289
9302, 2007-5 I.R.B. 382
2007-34, 2007-23 I.R.B. 1345
9303, 2007-5 I.R.B. 379
2007-35, 2007-23 I.R.B. 1349
9304, 2007-6 I.R.B. 423
2007-36, 2007-22 I.R.B. 1335
9305, 2007-7 I.R.B. 479
2007-37, 2007-25 I.R.B. 1433
9306, 2007-6 I.R.B. 420
2007-38, 2007-25 I.R.B. 1442
9307, 2007-7 I.R.B. 470
2007-39, 2007-25 I.R.B. 1446
9308, 2007-8 I.R.B. 523
Revenue Rulings: 9309, 2007-7 I.R.B. 497
9310, 2007-9 I.R.B. 601
2007-1, 2007-3 I.R.B. 265
9311, 2007-10 I.R.B. 635
2007-2, 2007-3 I.R.B. 266
9312, 2007-12 I.R.B. 736
2007-3, 2007-4 I.R.B. 350
9313, 2007-13 I.R.B. 805
2007-4, 2007-4 I.R.B. 351
9314, 2007-14 I.R.B. 845
2007-5, 2007-5 I.R.B. 378
9315, 2007-15 I.R.B. 891
2007-6, 2007-5 I.R.B. 393
9316, 2007-16 I.R.B. 962
2007-7, 2007-7 I.R.B. 468
9317, 2007-16 I.R.B. 957
2007-8, 2007-7 I.R.B. 469
9318, 2007-17 I.R.B. 990
2007-9, 2007-6 I.R.B. 422
9319, 2007-18 I.R.B. 1041
2007-10, 2007-10 I.R.B. 660
9320, 2007-17 I.R.B. 994
2007-11, 2007-9 I.R.B. 606
9321, 2007-19 I.R.B. 1123
2007-12, 2007-11 I.R.B. 685
9322, 2007-18 I.R.B. 1100
2007-13, 2007-11 I.R.B. 684
9323, 2007-20 I.R.B. 1240
2007-14, 2007-12 I.R.B. 747
9324, 2007-22 I.R.B. 1302
2007-15, 2007-11 I.R.B. 687
9325, 2007-24 I.R.B. 1386
2007-16, 2007-13 I.R.B. 807
2007-17, 2007-13 I.R.B. 805
2007-18, 2007-13 I.R.B. 806
2007-19, 2007-14 I.R.B. 843
2007-20, 2007-14 I.R.B. 863
2007-21, 2007-14 I.R.B. 865
2007-22, 2007-14 I.R.B. 866
2007-23, 2007-15 I.R.B. 889
2007-24, 2007-21 I.R.B. 1282
2007-25, 2007-16 I.R.B. 956
2007-26, 2007-16 I.R.B. 970
2007-27, 2007-18 I.R.B. 1099
2007-28, 2007-18 I.R.B. 1039
2007-29, 2007-19 I.R.B. 1223
2007-30, 2007-21 I.R.B. 1277
2007-31, 2007-21 I.R.B. 1275
2007-32, 2007-21 I.R.B. 1278
2007-33, 2007-21 I.R.B. 1281
2007-34, 2007-22 I.R.B. 1316
2007-35, 2007-22 I.R.B. 1317
2007-36, 2007-23 I.R.B. 1339
2007-37, 2007-24 I.R.B. 1390
2007-38, 2007-25 I.R.B. 1420
2007-40, 2007-25 I.R.B. 1426
2007-41, 2007-25 I.R.B. 1421
Tax Conventions:
2007-23, 2007-10 I.R.B. 665
June 18, 2007 iii 2007–25 I.R.B.
Finding List of Current Actions on Notices— Continued: Revenue Procedures— Continued:
Previously Published Items1 2007-19 2000-42
Amended and supplemented by Obsoleted in part by
Bulletins 2007–1 through 2007–25
Notice 2007-31, 2007-16 I.R.B. 971 T.D. 9315, 2007-15 I.R.B. 891
Announcements:
Proposed Regulations: 2000-50
2006-45 Modified by
REG-208270-86 Rev. Proc. 2007-16, 2007-4 I.R.B. 358
Updated and superseded by
Corrected by
Ann. 2007-47, 2007-20 I.R.B. 1260 2001-31
Ann. 2007-4, 2007-7 I.R.B. 518
Notices: Superseded by
REG-121509-00 Rev. Proc. 2007-29, 2007-17 I.R.B. 1004
2002-45 Corrected by
2001-42
Modified by Ann. 2007-17, 2007-8 I.R.B. 597
Modified and amplified by
Notice 2007-22, 2007-10 I.R.B. 670 REG-139059-02 Rev. Proc. 2007-19, 2007-7 I.R.B. 515
2005-1 Corrected by
2002-9
Obsoleted in part by Ann. 2007-36, 2007-15 I.R.B. 953
Ann. 2007-37, 2007-15 I.R.B. 954 Modified and amplified by
T.D. 9321, 2007-19 I.R.B. 1123
Rev. Proc. 2007-14, 2007-4 I.R.B. 357
2005-29 REG-144859-04 Rev. Proc. 2007-33, 2007-21 I.R.B. 1289
Modified and superseded by Corrected by Modified by
Notice 2007-4, 2007-2 I.R.B. 260 Ann. 2007-54, 2007-23 I.R.B. 1383 Rev. Proc. 2007-16, 2007-4 I.R.B. 358
2005-86 REG-141901-05 2003-35
Modified by Corrected by Superseded by
Notice 2007-22, 2007-10 I.R.B. 670 Ann. 2007-7, 2007-4 I.R.B. 377 Rev. Proc. 2007-32, 2007-22 I.R.B. 1322
2005-98 REG-142270-05 2003-69
Modified and superseded by Corrected by Modified and superseded by
Notice 2007-26, 2007-14 I.R.B. 870 Ann. 2007-2, 2007-2 I.R.B. 263 Rev. Proc. 2007-38, 2007-25 I.R.B. 1442
2006-2 REG-125632-06 2004-11
Modified and superseded by Corrected by Superseded by
Notice 2007-4, 2007-2 I.R.B. 260 Ann. 2007-26, 2007-10 I.R.B. 682 Rev. Proc. 2007-16, 2007-4 I.R.B. 358
2006-4 REG-127819-06 2004-65
Superseded in part by Corrected by Modified and superseded by
T.D. 9321, 2007-19 I.R.B. 1123 Ann. 2007-5, 2007-4 I.R.B. 376 Rev. Proc. 2007-20, 2007-7 I.R.B. 517
2006-13 REG-136806-06 2005-12
Obsoleted by Corrected by Superseded by
T.D. 9315, 2007-15 I.R.B. 891 Ann. 2007-6, 2007-4 I.R.B. 376 Rev. Proc. 2007-17, 2007-4 I.R.B. 368
Hearing cancelled by
2006-50 2005-51
Ann. 2007-19, 2007-7 I.R.B. 521
Amplified, clarified, and modified by Amplified by
REG-156779-06 Rev. Proc. 2007-25, 2007-12 I.R.B. 761
Notice 2007-11, 2007-5 I.R.B. 405
Corrected by
2006-64 2005-69
Ann. 2007-53, 2007-23 I.R.B. 1383
Superseded for taxable years on or after January 1, Superseded by
2008 by Revenue Procedures: Rev. Proc. 2007-15, 2007-3 I.R.B. 300
T.D. 9321, 2007-19 I.R.B. 1123 2005-74
86-46
2006-77 Modified by Superseded by
Clarified, modified, and amplified by Notice 2007-44, 2007-22 I.R.B. 1320 Rev. Proc. 2007-24, 2007-11 I.R.B. 692
Notice 2007-36, 2007-17 I.R.B. 1000 2006-1
98-20
2006-85 Superseded by Superseded by
Amplified by Rev. Proc. 2007-12, 2007-4 I.R.B. 354 Rev. Proc. 2007-1, 2007-1 I.R.B. 1
Notice 2007-48, 2007-25 I.R.B. 1428 2006-2
2000-38
2006-87 Modified by Superseded by
Modified and supplemented by Rev. Proc. 2007-16, 2007-4 I.R.B. 358 Rev. Proc. 2007-2, 2007-1 I.R.B. 88
Notice 2007-25, 2007-12 I.R.B. 760
1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2006–27 through 2006–52 is in Internal Revenue Bulletin 2006–52, dated December 26,
2006.
2007–25 I.R.B. iv June 18, 2007
Revenue Procedures— Continued: Revenue Rulings— Continued: Revenue Rulings— Continued:
2006-3 58-370 2003-92
Superseded by Obsoleted by Clarified and amplified by
Rev. Proc. 2007-3, 2007-1 I.R.B. 108 Rev. Rul. 2007-14, 2007-12 I.R.B. 747 Rev. Rul. 2007-7, 2007-7 I.R.B. 468
2006-4 58-500 2003-102
Superseded by Obsoleted by Modified by
Rev. Proc. 2007-4, 2007-1 I.R.B. 118 Rev. Rul. 2007-14, 2007-12 I.R.B. 747 Notice 2007-22, 2007-10 I.R.B. 670
2006-5 69-141 2003-109
Superseded by Modified by Superseded by
Rev. Proc. 2007-5, 2007-1 I.R.B. 161 Notice 2007-22, 2007-10 I.R.B. 670 Rev. Rul. 2007–28, 2007-18 I.R.B. 1039
2006-6 69-212 2005-24
Superseded by Obsoleted by Modified by
Rev. Proc. 2007-6, 2007-1 I.R.B. 189 Rev. Rul. 2007-14, 2007-12 I.R.B. 747 Notice 2007-22, 2007-10 I.R.B. 670
2006-7 69-587 2005-76
Superseded by Revoked by Supplemented and superseded by
Rev. Proc. 2007-7, 2007-1 I.R.B. 227 Rev. Rul. 2007-12, 2007-11 I.R.B. 685 Rev. Rul. 2007-4, 2007-4 I.R.B. 351
2006-8 71-477 2006-36
Superseded by Obsoleted by Modified by
Rev. Proc. 2007-8, 2007-1 I.R.B. 230 Rev. Rul. 2007-14, 2007-12 I.R.B. 747 Notice 2007-22, 2007-10 I.R.B. 670
2006-17 74-245 Treasury Decisions:
Obsoleted in part by Obsoleted by
Rev. Proc. 2007-26, 2007-13 I.R.B. 814 Rev. Rul. 2007-35, 2007-22 I.R.B. 1317 9263
Corrected by
2006-20 75-161
Ann. 2007-22, 2007-9 I.R.B. 631
Obsoleted in part by Obsoleted by
Rev. Proc. 2007-31, 2007-19 I.R.B. 1225 Rev. Rul. 2007-8, 2007-7 I.R.B. 469 9276
Corrected by
2006-35 76-188
Ann. 2007-20, 2007-8 I.R.B. 599
Modified by Obsoleted by Ann. 2007-21, 2007-9 I.R.B. 630
Rev. Proc. 2007-22, 2007-10 I.R.B. 675 Rev. Rul. 2007-8, 2007-7 I.R.B. 469
9278
2006-53 78-330 Corrected by
Section 3.24(1) modified and superseded by Modified by Ann. 2007-9, 2007-5 I.R.B. 417
Rev. Proc. 2007-36, 2007-22 I.R.B. 1335 Rev. Rul. 2007-8, 2007-7 I.R.B. 469 Ann. 2007-10, 2007-6 I.R.B. 464
2007-3 81-18 9286
Amplified by Distinguished by Corrected by
Rev. Proc. 2007-39, 2007-25 I.R.B. 1446 Rev. Rul. 2007-32, 2007-21 I.R.B. 1278 Ann. 2007-8, 2007-5 I.R.B. 416
Revenue Rulings: 81-225 9298
Clarified and amplified by Corrected by
54-19 Rev. Rul. 2007-7, 2007-7 I.R.B. 468 Ann. 2007-32, 2007-11 I.R.B. 734
Obsoleted in part by
82-45 9303
Rev. Rul. 2007-14, 2007-12 I.R.B. 747
Obsoleted by Corrected by
55-132 Rev. Rul. 2007-35, 2007-22 I.R.B. 1317 Ann. 2007-25, 2007-10 I.R.B. 682
Obsoleted by
92-19 9313
Rev. Rul. 2007-14, 2007-12 I.R.B. 747
Supplemented in part by Corrected by
56-462 Rev. Rul. 2007-10, 2007-10 I.R.B. 660 Ann. 2007-48, 2007-20 I.R.B. 1274
Obsoleted by
96-51 9315
Rev. Rul. 2007-14, 2007-12 I.R.B. 747
Amplified by Corrected by
56-518 Rev. Rul. 2007-12, 2007-11 I.R.B. 685 Ann. 2007-49, 2007-21 I.R.B. 1300
Obsoleted by
2002-41 9319
Rev. Rul. 2007-14, 2007-12 I.R.B. 747
Modified by Corrected by
57-505 Notice 2007-22, 2007-10 I.R.B. 670 Ann. 2007-57, 2007-24 I.R.B. 1418
Obsoleted by Ann. 2007-58, 2007-25 I.R.B. 1448
2003-43
Rev. Rul. 2007-14, 2007-12 I.R.B. 747
Modified by 9322
Notice 2007-2, 2007-2 I.R.B. 254 Corrected by
Ann. 2007-50, 2007-22 I.R.B. 1337
June 18, 2007 v 2007–25 I.R.B.
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