Professional Documents
Culture Documents
2007-45
November 5, 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.
EMPLOYEE PLANS
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.
Mid-term
AFR 4.39% 4.34% 4.32% 4.30%
110% AFR 4.83% 4.77% 4.74% 4.72%
120% AFR 5.28% 5.21% 5.18% 5.15%
130% AFR 5.72% 5.64% 5.60% 5.57%
150% AFR 6.62% 6.51% 6.46% 6.42%
175% AFR 7.74% 7.60% 7.53% 7.48%
Long-term
AFR 4.89% 4.83% 4.80% 4.78%
110% AFR 5.38% 5.31% 5.28% 5.25%
120% AFR 5.88% 5.80% 5.76% 5.73%
130% AFR 6.38% 6.28% 6.23% 6.20%
on the first sale by a manufacturer, producer, or im- for personal use, livestock, poultry, and books and
porter of any shaft of a type used in the manufacture tools of a trade, business, or profession) for calendar
Section 1288.—Treatment of certain arrows. See Rev. Proc. 2007-66, page 970. year 2008. See Rev. Proc. 2007-66, page 970.
of Original Issue Discount
on Tax-Exempt Obligations Section 6033.—Returns by Section 6601.—Interest
The adjusted applicable federal short-term, mid- Exempt Organizations on Underpayment,
term, and long-term rates are set forth for the month Nonpayment, or Extensions
The Service provides an inflation adjustment to
of November 2007. See Rev. Rul. 2007-66, page
the amount of dues certain exempt organizations with
of Time for Payment, of Tax
956.
nondeductible lobbying expenditures can charge and The Service provides an inflation adjustment to
still be excepted from reporting requirements for tax- the amount used to determine the amount of interest
Section 2032A.—Valuation able years beginning in 2008. See Rev. Proc. 2007- charged on a certain portion of the estate tax payable
of Certain Farm, etc., 66, page 970. in installments for the estate of a decedent dying in
Real Property calendar year 2008. See Rev. Proc. 2007-66, page
970.
The Service provides an inflation adjustment to the Section 6039F.—Notice of
maximum amount by which the value of certain farm Large Gifts Received From
and other qualified real property included in a dece- Foreign Persons Section 7430.—Awarding
dent’s gross estate may be decreased for purposes of of Costs and Certain Fees
valuing the estate of a decedent dying in calendar year The Service provides an inflation adjustment to the
2008. See Rev. Proc. 2007-66, page 970. amount of gifts received, in a taxable year from for- The Service provides an inflation adjustment to the
eign persons, that triggers a reporting requirement for hourly limit on attorney fees incurred in calendar year
a United States person for taxable years beginning in 2008 that may be awarded in a judgment or settlement
Section 2503.—Taxable 2008. See Rev. Proc. 2007-66, page 970. of an administrative or judicial proceeding concern-
Gifts ing the determination, collection, or refund of tax, in-
terest, or penalty. See Rev. Proc. 2007-66, page 970.
The Service provides an inflation adjustment to the Section 6323.—Validity
amount of gifts that may be made to a person in a
and Priority Against
calendar year without including the amount in taxable
gifts for calendar year 2008. See Rev. Proc. 2007-66, Certain Persons Section 7520.—Valuation
page 970.
Tables
The Service provides inflation adjustments for cal-
endar year 2008 to (1) the maximum amount of a ca- The adjusted applicable federal short-term, mid-
Section 2523.—Gift to sual sale of personal property below which a federal term, and long-term rates are set forth for the month
of November 2007. See Rev. Rul. 2007-66, page
Spouse tax lien will not be valid against a purchaser of the
property and (2) the maximum amount of a contract 956.
The Service provides an inflation adjustment to the for the repair or improvement of certain residential
amount of gifts that may be made in a calendar year property at or below which a federal tax lien will not
to a spouse who is not a citizen of the United States be valid against a mechanic’s lienor. See Rev. Proc. Section 7702B.—Treatment
without including the amount in taxable gifts for cal- 2007-66, page 970. of Qualified Long-Term
endar year 2008. See Rev. Proc. 2007-66, page 970. Care Insurance
Section 6334.—Property The Service provides an inflation adjustment to the
Section 4161.—Imposition Exempt From Levy stated dollar amount for calendar year 2008 of the per
of Tax diem limitation regarding periodic payments received
The Service provides inflation adjustments to the under a qualified long-term care insurance contract
The Service provides an inflation adjustment to the value of certain property exempt from levy (fuel, pro- or periodic payments received under a life insurance
amount of excise tax imposed for calendar year 2008 visions, furniture, household personal effects, arms contract that are treated as paid by reason of the death
1 Limited deductions are allowable under §§ 419 and 419A for additions to certain reserves, including a reserve for claims incurred but unpaid as of the close of a taxable year.
2 For taxable years ending on or after November 5, 2007, the amount under this (4)(c) is zero.
3 Section 6707A applies to returns and statements due after October 22, 2004. See Notice 2005–11, 2005–1 C.B. 493. The amount of the penalty under § 6707A with respect to a listed
transaction is $100,000 in the case of a natural person and $200,000 in any other case.
Developer Investor
Gross Income/Loss Gross Income/Loss
Cash and Section 45 Credits Cash and Section 45 Credits
Period 1 100% 1% 0% 99%
Period 2 0% 1% 100% 99%
Period 3 95% 95% 5% 5%
During Period 1, 99% of LLC’s gross income or be distributed to, Investor; and 95% of LLC’s gross this revenue procedure in the Internal Rev-
loss and the § 45 credits will be allocated to Investor, income or loss and § 45 credits will be allocated to, enue Bulletin, the Service will not chal-
and 100% of LLC’s cash flows will be distributed to and 95% of LLC’s cash flows will be distributed to,
lenge the allocation of § 45 wind energy
Developer. Period 1 will continue until the earlier of Developer. Period 3 will continue for the remaining
(i) such time that Developer has received aggregate life of the Project.
production tax credits by the partnership
cash distributions in an amount equal to the aggregate .02 Example 2. The facts are the same as in Ex- that are in accordance with § 704(b) for
contributions made by Developer (i.e., $15x) and (ii) ample 1, except Investor is initially allocated 99.5% such taxable year(s).
a fixed outside date. Period 1 is expected to last four of LLC’s gross income or loss and § 45 credits. Un-
to six years. When Period 1 ends, Period 2 will begin. der these facts, the wind energy limited liability com- SECTION 7. DRAFTING
During Period 2, 99% of LLC’s gross income pany’s classification as a valid partnership would be INFORMATION
or loss and the § 45 credits will be allocated to, and closely scrutinized by the Service. Likewise, if any
100% of LLC’s cash flows will be distributed to other provision of this safe harbor is not followed for
Investor. Period 2 will continue until Investor has any wind energy partnerships, the Service will closely
The principal authors of this rev-
achieved an agreed after-tax internal rate of return scrutinize the validity of such purported partnerships. enue procedure are Vishal R. Amin and
(the “Flip Point”). Although the Flip Point might Richard T. Probst of the Office of Asso-
occur sooner, it is expected that the Flip Point will SECTION 6. EFFECTIVE DATE ciate Chief Counsel (Passthroughs & Spe-
not occur until after the end of year 10 of the Project,
cial Industries). For further information
at which time § 45 credits will no longer be available
for the production and sale of electricity from the
This revenue procedure is effective for regarding this revenue procedure, contact
Project. Period 2 is expected to last four to six years. transactions entered into on or after the Vishal R. Amin or Richard T. Probst at
When Period 2 ends, Period 3 will begin. Moreover, date of publication in the Internal Revenue (202) 622–3060 (not a toll-free call).
upon the tenth anniversary of Investor’s investment, Bulletin. If a Project Company, Developer
Developer will have the option to purchase Investor’s
and Investor satisfied all the requirements
interest for its then-appraised fair market value. As-
suming that option is not exercised, during Period 3,
of the Safe Harbor provided in section 4 of
5% of LLC’s gross income or loss and § 45 credits this revenue procedure for transactions en-
will be allocated to, and 5% of LLC’s cash flows will tered into before the date of publication of
TABLE OF CONTENTS
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. 2008 ADJUSTED ITEMS
Code Section
.01 Tax Rate Tables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1(a)–(e)
.02 Unearned Income of Minor Children Taxed as if Parent’s Income (“Kiddie Tax”) . . . . . . . . . . . . . . . . 1(g)
.03 Adoption Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
.04 Child Tax Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
.05 Hope and Lifetime Learning Credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25A
.06 Elective Deferrals and IRA Contributions by Certain Individuals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25B
.07 Earned Income Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
.08 Low-Income Housing Credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42(h)
.09 Alternative Minimum Tax Exemption for a Child Subject to the “Kiddie Tax” . . . . . . . . . . . . . . . . . . . 59(j)
.10 Transportation Mainline Pipeline Construction Industry Optional Expense Substantiation Rules for
Payments to Employees under Accountable Plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62(c)
.11 Standard Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63
.12 Overall Limitation on Itemized Deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
.13 Qualified Transportation Fringe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132(f)
.14 Income from United States Savings Bonds for Taxpayers Who Pay Qualified Higher Education
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
.15 Adoption Assistance Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
.16 Private Activity Bonds Volume Cap . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146(d)
.17 General Arbitrage Rebate Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148(f)
.18 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts or Investments
Purchased for a Yield Restricted Defeasance Escrow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 148
.19 Personal Exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151
.20 Election to Expense Certain Depreciable Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 179
.21 Eligible Long-Term Care Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213(d)(10)
.22 Retirement Savings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219
.23 Medical Savings Accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220
.24 Interest on Education Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221
.25 Roth IRAs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 408A
.26 Treatment of Dues Paid to Agricultural or Horticultural Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . 512(d)
.27 Insubstantial Benefit Limitations for Contributions Associated with Charitable Fund-Raising
Campaigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513(h)
SECTION 1. PURPOSE be included in a separate news release and are subject to the rebate requirement, and
related notice with other inflation adjusted on the final maturity date, there can be in-
This revenue procedure sets forth infla- amounts relating to pension and retirement cluded as a payment a computation credit
tion adjusted items for 2008. accounts. For future years, these amounts of $1,400 for any bond year ending in
will not be included in this revenue proce- 2007. For bond years ending after 2007,
SECTION 2. CHANGES dure but will appear only in the separate the $1,400 computation credit will be ad-
news release and related notice. justed for inflation pursuant to proposed
.01 The excise taxes imposed under
.03 For taxable years beginning af- § 1.148–3(d)(4). See section 3.17 of this
§ 4261(b) and (c), as enacted by the
ter 2007, the inflation adjusted items for revenue procedure.
Airport and Airway Trust Fund Tax Re-
health savings accounts under § 223 are
instatement Act of 1997 and extended by SECTION 3. 2008 ADJUSTED ITEMS
published no later than June 1 of the pre-
§ 149(a) of Pub. L. No. 110–92, 121
ceding calendar year. See § 223(g) and
Stat. 989 (2007), apply to transportation .01 Tax Rate Tables. For taxable years
Rev. Proc. 2007–36, 2007–22 I.R.B.
taken through November 16, 2007, and to beginning in 2008, the tax rate tables under
1335. Accordingly, these items are not
amounts paid on or before November 16, § 1 are as follows:
included in this revenue procedure.
2007, for transportation beginning after
.04 Section 1.148–3(d)(1)(iv) of the
that date. Accordingly, the amounts in
proposed Income Tax Regulations pro-
§ 4261(b) and (c) are not included in this
vides that on the last day of each bond
revenue procedure.
year during which there are amounts al-
.02 For 2008, the inflation adjusted
located to gross proceeds of an issue that
items in §§ 25B, 219, and 408A also will
TABLE 1 — Section 1(a). — Married Individuals Filing Joint Returns and Surviving Spouses.
If Taxable Income Is: The Tax Is:
Not over $16,050 10% of the taxable income
Over $16,050 but not over $65,100 $1,605 plus 15% of the excess over $16,050
Over $65,100 but not over $131,450 $8,962.50 plus 25% of the excess over $65,100
Over $131,450 but not over $200,300 $25,550 plus 28% of the excess over $131,450
Over $200,300 but not over $357,700 $44,828 plus 33% of the excess over $200,300
Over $357,700 $96,770 plus 35% of the excess over $357,700
TABLE 3 — Section 1(c). — Unmarried Individuals (other than Surviving Spouses and Heads of Households).
If Taxable Income Is: The Tax Is:
Not over $8,025 10% of the taxable income
Over $8,025 but not over $32,550 $802.50 plus 15% of the excess over $8,025
Over $32,550 but not over $78,850 $4,481.25 plus 25% of the excess over $32,550
Over $78,850 but not over $164,550 $16,056.25 plus 28% of the excess over $78,850
Over $164,550 but not over $357,700 $40,052.25 plus 33% of the excess over $164,550
Over $357,700 $103,791.75 plus 35% of the excess over $357,700
.02 Unearned Income of Minor Chil- on the child’s return that is subject to the (that is, to determine whether a parent may
dren Taxed as if Parent’s Income (the “kiddie tax,” is $900. This amount is elect to include a child’s gross income in
“Kiddie Tax”). For taxable years the same as the $900 standard deduction the parent’s gross income and to calculate
beginning in 2008, the amount in amount provided in section 3.11(2) of the “kiddie tax”). For example, one of the
§ 1(g)(4)(A)(ii)(I), which is used to re- this revenue procedure. The same $900 requirements for the parental election is
duce the net unearned income reported amount is used for purposes of § 1(g)(7) that a child’s gross income is more than the
.07 Earned Income Credit. income at or above which the maximum to phase out. The “completed phaseout
(1) In general. For taxable years be- amount of the earned income credit is al- amount” is the amount of adjusted gross
ginning in 2008, the following amounts lowed. The “threshold phaseout amount” income (or, if greater, earned income) at or
are used to determine the earned income is the amount of adjusted gross income above which no credit is allowed.
credit under § 32(b). The “earned in- (or, if greater, earned income) above which
come amount” is the amount of earned the maximum amount of the credit begins
(2) Dependent. For taxable years be- .14 Income from United States Savings pletely phased out for taxpayers with mod-
ginning in 2008, the standard deduction Bonds for Taxpayers Who Pay Qualified ified adjusted gross income of $214,730 or
amount under § 63(c)(5) for an individual Higher Education Expenses. For taxable more. (See section 3.03 of this revenue
who may be claimed as a dependent by an- years beginning in 2008, the exclusion un- procedure for the adjusted items relating to
other taxpayer cannot exceed the greater of der § 135, regarding income from United the adoption credit.)
(1) $900, or (2) the sum of $300 and the in- States savings bonds for taxpayers who .16 Private Activity Bonds Volume Cap.
dividual’s earned income. pay qualified higher education expenses, For calendar year 2008, the amounts used
(3) Aged or blind. For taxable years begins to phase out for modified adjusted under § 146(d)(1) to calculate the State
beginning in 2008, the additional standard gross income above $100,650 for joint ceiling for the volume cap for private
deduction amount under § 63(f) for the returns and $67,100 for other returns. activity bonds is the greater of (1) $85
aged or the blind is $1,050. These amounts The exclusion is completely phased out multiplied by the State population, or (2)
are increased to $1,350 if the individual is for modified adjusted gross income of $262,095,000.
also unmarried and not a surviving spouse. $130,650 or more for joint returns and .17 General Arbitrage Rebate Rules.
.12 Overall Limitation on Itemized De- $82,100 or more for other returns. For bond years ending in 2008, the amount
ductions. For taxable years beginning in .15 Adoption Assistance Programs. For of the computation credit determined un-
2008, the “applicable amount” of adjusted taxable years beginning in 2008, under der § 1.148–3(d)(4) of the proposed In-
gross income under § 68(b), above which § 137(a)(2) the amount that can be ex- come Tax Regulations is $1,430.
the amount of otherwise allowable item- cluded from an employee’s gross income .18 Safe Harbor Rules for Broker
ized deductions is reduced under § 68, is for the adoption of a child with special Commissions on Guaranteed Invest-
$159,950 (or $79,975 for a separate return needs is $11,650. For taxable years be- ment Contracts or Investments Purchased
filed by a married individual). ginning in 2008, under § 137(b)(1) the for a Yield Restricted Defeasance Es-
.13 Qualified Transportation Fringe. maximum amount that can be excluded crow. For calendar year 2008, under
For taxable years beginning in 2008, the from an employee’s gross income for the § 1.148–5(e)(2)(iii)(B)(1), a broker’s com-
monthly limitation under § 132(f)(2)(A), amounts paid or expenses incurred by an mission or similar fee for the acquisition
regarding the aggregate fringe benefit employer for qualified adoption expenses of a guaranteed investment contract or in-
exclusion amount for transportation in a furnished pursuant to an adoption assis- vestments purchased for a yield restricted
commuter highway vehicle and any tran- tance program for other adoptions by the defeasance escrow is reasonable if (1) the
sit pass, is $115. The monthly limitation employee is $11,650. The amount exclud- amount of the fee that the issuer treats as
under § 132(f)(2)(B), regarding the fringe able from an employee’s gross income be- a qualified administrative cost does not
benefit exclusion amount for qualified gins to phase out under § 137(b)(2)(A) for exceed the lesser of (A) $34,000, and (B)
parking, is $220. taxpayers with modified adjusted gross in- 0.2 percent of the computational base (as
come in excess of $174,730 and is com- defined in § 1.148–5(e)(2)(iii)(B)(2)) or,
.20 Election to Expense Certain Depre- $128,000 limitation is reduced (but not be- the limitations under § 213(d)(10), re-
ciable Assets. For taxable years begin- low zero) by the amount by which the cost garding eligible long-term care premiums
ning in 2008, under § 179(b)(1) the aggre- of § 179 property placed in service during includible in the term “medical care,” are
gate cost of any § 179 property a taxpayer the 2008 taxable year exceeds $510,000. as follows:
may elect to treat as an expense can not .21 Eligible Long-Term Care Premi-
exceed $128,000. Under § 179(b)(2), the ums. For taxable years beginning in 2008,
Attained Age Before the Close of the Taxable Year Limitation on Premiums
40 or less $ 310
More than 40 but not more than 50 $ 580
More than 50 but not more than 60 $1,150
More than 60 but not more than 70 $3,080
More than 70 $3,850
.22 Retirement Savings. deductible that is not less than $1,950 and with modified adjusted gross income of
(1) For taxable years beginning in not more than $2,900, and under which the $70,000 or more ($145,000 or more for
2008, the applicable dollar amount under annual out-of-pocket expenses required to joint returns).
§ 219(g)(3)(B)(i) for taxpayers filing a be paid (other than for premiums) for cov- .25 Roth IRAs.
joint return is $85,000. If the taxpayer’s ered benefits does not exceed $3,850. (1) For taxable years beginning in
spouse is not an active participant, the (2) Family coverage. For taxable years 2008, the applicable dollar amount under
applicable dollar amount for the spouse beginning in 2008, the term “high de- § 408A(c)(3)(C)(ii)(I) for taxpayers filing
under § 219(g)(3)(B)(i) is $159,000 for ductible health plan” means, for family a joint return is $159,000.
taxable years beginning in 2008. coverage, a health plan that has an annual (2) For taxable years beginning in
(2) For taxable years beginning in deductible that is not less than $3,850 and 2008, the applicable dollar amount under
2008, the applicable dollar amount under not more than $5,800, and under which the § 408A(c)(3)(C)(ii)(II) for all other tax-
§ 219(g)(3)(B)(ii) for all other taxpayers annual out-of-pocket expenses required to payers (except for married taxpayers filing
(except for married taxpayers filing sepa- be paid (other than for premiums) for cov- separately) is $101,000.
rately) is $53,000. ered benefits does not exceed $7,050. (3) The applicable dollar amount under
(3) The applicable dollar amount under .24 Interest on Education Loans. For § 408A(c)(3)(C)(ii)(III) for married tax-
§ 219(g)(3)(B)(iii) for married taxpayers taxable years beginning in 2008, the payers filing separately is $0.
filing separately is $0. $2,500 maximum deduction for inter- .26 Treatment of Dues Paid to Agricul-
.23 Medical Savings Accounts. est paid on qualified education loans tural or Horticultural Organizations. For
(1) Self-only coverage. For taxable under § 221 begins to phase out under taxable years beginning in 2008, the limi-
years beginning in 2008, the term “high § 221(b)(2)(B) for taxpayers with mod- tation under § 512(d)(1), regarding the ex-
deductible health plan” as defined in ified adjusted gross income in excess of emption of annual dues required to be paid
§ 220(c)(2)(A) means, for self-only cov- $55,000 ($115,000 for joint returns), and by a member to an agricultural or horticul-
erage, a health plan that has an annual is completely phased out for taxpayers tural organization, is $139.
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.
Bulletins 2007–27 through 2007–45 2007-58, 2007-29 I.R.B. 88 REG-113891-07, 2007-42 I.R.B. 821
2007-59, 2007-30 I.R.B. 135 REG-116215-07, 2007-38 I.R.B. 659
Announcements: 2007-60, 2007-35 I.R.B. 466 REG-118719-07, 2007-37 I.R.B. 593
2007-61, 2007-30 I.R.B. 140 REG-129916-07, 2007-43 I.R.B. 891
2007-61, 2007-28 I.R.B. 84
2007-62, 2007-32 I.R.B. 331 REG-138637-07, 2007-45 I.R.B. 977
2007-62, 2007-29 I.R.B. 115
2007-63, 2007-33 I.R.B. 353
2007-63, 2007-30 I.R.B. 236 Revenue Procedures:
2007-64, 2007-34 I.R.B. 385
2007-64, 2007-29 I.R.B. 125
2007-65, 2007-34 I.R.B. 386 2007-42, 2007-27 I.R.B. 15
2007-65, 2007-30 I.R.B. 236
2007-66, 2007-34 I.R.B. 387 2007-43, 2007-27 I.R.B. 26
2007-66, 2007-31 I.R.B. 296
2007-67, 2007-35 I.R.B. 467 2007-44, 2007-28 I.R.B. 54
2007-67, 2007-32 I.R.B. 345
2007-68, 2007-35 I.R.B. 468 2007-45, 2007-29 I.R.B. 89
2007-68, 2007-32 I.R.B. 348
2007-69, 2007-35 I.R.B. 468 2007-46, 2007-29 I.R.B. 102
2007-69, 2007-33 I.R.B. 371
2007-70, 2007-40 I.R.B. 735 2007-47, 2007-29 I.R.B. 108
2007-70, 2007-33 I.R.B. 371
2007-71, 2007-35 I.R.B. 472 2007-48, 2007-29 I.R.B. 110
2007-71, 2007-33 I.R.B. 372
2007-72, 2007-36 I.R.B. 544 2007-49, 2007-30 I.R.B. 141
2007-72, 2007-33 I.R.B. 373
2007-73, 2007-36 I.R.B. 545 2007-50, 2007-31 I.R.B. 244
2007-73, 2007-34 I.R.B. 435
2007-74, 2007-37 I.R.B. 585 2007-51, 2007-30 I.R.B. 143
2007-74, 2007-35 I.R.B. 483
2007-75, 2007-39 I.R.B. 679 2007-52, 2007-30 I.R.B. 222
2007-75, 2007-36 I.R.B. 540
2007-76, 2007-40 I.R.B. 735 2007-53, 2007-30 I.R.B. 233
2007-76, 2007-36 I.R.B. 560
2007-77, 2007-40 I.R.B. 735 2007-54, 2007-31 I.R.B. 293
2007-77, 2007-38 I.R.B. 662
2007-78, 2007-41 I.R.B. 780 2007-55, 2007-33 I.R.B. 354
2007-78, 2007-38 I.R.B. 663
2007-79, 2007-42 I.R.B. 809 2007-56, 2007-34 I.R.B. 388
2007-79, 2007-40 I.R.B. 749
2007-80, 2007-43 I.R.B. 867 2007-57, 2007-36 I.R.B. 547
2007-80, 2007-38 I.R.B. 667
2007-81, 2007-44 I.R.B. 899 2007-58, 2007-37 I.R.B. 585
2007-81, 2007-38 I.R.B. 667
2007-82, 2007-44 I.R.B. 904 2007-59, 2007-40 I.R.B. 745
2007-82, 2007-40 I.R.B. 749
2007-83, 2007-45 I.R.B. 960 2007-60, 2007-39 I.R.B. 679
2007-83, 2007-40 I.R.B. 752
2007-84, 2007-45 I.R.B. 963 2007-61, 2007-40 I.R.B. 747
2007-84, 2007-41 I.R.B. 797
2007-85, 2007-45 I.R.B. 965 2007-62, 2007-41 I.R.B. 786
2007-85, 2007-39 I.R.B. 719
2007-87, 2007-45 I.R.B. 966 2007-63, 2007-42 I.R.B. 809
2007-86, 2007-39 I.R.B. 719
2007-87, 2007-40 I.R.B. 753 Proposed Regulations: 2007-64, 2007-42 I.R.B. 818
2007-88, 2007-42 I.R.B. 801 2007-65, 2007-45 I.R.B. 967
2007-89, 2007-41 I.R.B. 798 REG-107592-00, 2007-44 I.R.B. 908 2007-66, 2007-45 I.R.B. 970
2007-90, 2007-42 I.R.B. 856 REG-121475-03, 2007-35 I.R.B. 474
Revenue Rulings:
2007-91, 2007-42 I.R.B. 857 REG-128274-03, 2007-33 I.R.B. 356
2007-92, 2007-42 I.R.B. 857 REG-114084-04, 2007-33 I.R.B. 359 2007-42, 2007-28 I.R.B. 44
2007-93, 2007-42 I.R.B. 858 REG-149036-04, 2007-33 I.R.B. 365 2007-43, 2007-28 I.R.B. 45
2007-94, 2007-42 I.R.B. 858 REG-149036-04, 2007-34 I.R.B. 411 2007-44, 2007-28 I.R.B. 47
2007-95, 2007-43 I.R.B. 894 REG-101001-05, 2007-36 I.R.B. 548 2007-45, 2007-28 I.R.B. 49
2007-96, 2007-42 I.R.B. 859 REG-119097-05, 2007-28 I.R.B. 74 2007-46, 2007-30 I.R.B. 126
2007-97, 2007-43 I.R.B. 895 REG-128843-05, 2007-37 I.R.B. 587 2007-47, 2007-30 I.R.B. 127
2007-98, 2007-43 I.R.B. 896 REG-142695-05, 2007-39 I.R.B. 681 2007-48, 2007-30 I.R.B. 129
2007-99, 2007-43 I.R.B. 896 REG-143326-05, 2007-43 I.R.B. 873 2007-49, 2007-31 I.R.B. 237
2007-100, 2007-44 I.R.B. 922 REG-143397-05, 2007-41 I.R.B. 790 2007-50, 2007-32 I.R.B. 311
2007-101, 2007-43 I.R.B. 898 REG-147171-05, 2007-32 I.R.B. 334 2007-51, 2007-37 I.R.B. 573
2007-102, 2007-44 I.R.B. 922 REG-148951-05, 2007-36 I.R.B. 550 2007-52, 2007-37 I.R.B. 575
2007-103, 2007-44 I.R.B. 923 REG-163195-05, 2007-33 I.R.B. 366 2007-53, 2007-37 I.R.B. 577
2007-104, 2007-44 I.R.B. 924 REG-118886-06, 2007-37 I.R.B. 591 2007-54, 2007-38 I.R.B. 604
2007-105, 2007-45 I.R.B. 984 REG-128224-06, 2007-36 I.R.B. 551 2007-55, 2007-38 I.R.B. 604
REG-138707-06, 2007-32 I.R.B. 342 2007-56, 2007-39 I.R.B. 668
Notices: REG-139268-06, 2007-34 I.R.B. 415 2007-57, 2007-36 I.R.B. 531
REG-142039-06, 2007-34 I.R.B. 415 2007-58, 2007-37 I.R.B. 562
2007-54, 2007-27 I.R.B. 12
REG-144540-06, 2007-31 I.R.B. 296 2007-59, 2007-37 I.R.B. 582
2007-55, 2007-27 I.R.B. 13
REG-148393-06, 2007-39 I.R.B. 714 2007-60, 2007-38 I.R.B. 606
2007-56, 2007-27 I.R.B. 15
REG-103842-07, 2007-28 I.R.B. 79 2007-61, 2007-42 I.R.B. 799
2007-57, 2007-29 I.R.B. 87
REG-106143-07, 2007-43 I.R.B. 881 2007-62, 2007-41 I.R.B. 767
1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2007–1 through 2007–26 is in Internal Revenue Bulletin
2007–26, dated June 25, 2007.
Tax Conventions:
Treasury Decisions:
1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2007–1 through 2007–26 is in Internal Revenue Bulletin 2007–26, dated June 25, 2007.
2006-53 94-62
Modified by Supplemented by
Rev. Proc. 2007-60, 2007-39 I.R.B. 679 Rev. Rul. 2007-58, 2007-37 I.R.B. 562
2006-55 2001-48
Superseded by Modified by
Rev. Proc. 2007-43, 2007-27 I.R.B. 26 T.D. 9332, 2007-32 I.R.B. 300
2007-4 2002-41
Modified by Modified by
Notice 2007-69, 2007-35 I.R.B. 468 REG-142695-05, 2007-39 I.R.B. 681
2007-15 2003-102
Superseded by Modified by
Rev. Proc. 2007-50, 2007-31 I.R.B. 244 REG-142695-05, 2007-39 I.R.B. 681
76-278 8073
Obsoleted by Removed by
T.D. 9354, 2007-41 I.R.B. 759 T.D. 9349, 2007-39 I.R.B. 668
76-288 9321
Obsoleted by Corrected by
T.D. 9354, 2007-41 I.R.B. 759 Ann. 2007-68, 2007-32 I.R.B. 348
Ann. 2007-78, 2007-38 I.R.B. 663
76-450
Obsoleted by 9330
T.D. 9347, 2007-38 I.R.B. 624 Corrected by
Ann. 2007-80, 2007-38 I.R.B. 667
78-257
Obsoleted by 9332
T.D. 9347, 2007-38 I.R.B. 624 Corrected by
Ann. 2007-83, 2007-40 I.R.B. 752
78-369
Ann. 2007-84, 2007-41 I.R.B. 797
Revoked by
9334
Rev. Rul. 2007-53, 2007-37 I.R.B. 577
Corrected by
Ann. 2007-93, 2007-42 I.R.B. 858
CUMULATIVE BULLETINS
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