Académique Documents
Professionnel Documents
Culture Documents
2005-52
December 27, 2005
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.
ADMINISTRATIVE
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.
1
Absence of a minus sign before the percentage change in this column signifies a price increase.
2
Indexes on a January 1986 = 100 base.
3The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor,
Corporate
For Plan Years Bond 90% to 110%
Beginning in: Weighted Permissible
Month Year Average Range
December 2005 5.78 5.20 to 5.78
30-YEAR TREASURY SECURITIES Section 1.417(e)–1(d)(3) of the Income imum amount of the deduction allowed
WEIGHTED AVERAGE INTEREST Tax Regulations provides that the applica- under § 404(a)(1).
RATE ble interest rate for a month is the annual The rate of interest on 30-year Treasury
interest rate on 30-year Treasury securi- securities for November 2005 is 4.73 per-
Section 417(e)(3)(A)(ii)(II) defines ties as specified by the Commissioner for cent. Pursuant to Notice 2002–26, 2002–1
the applicable interest rate, which must that month in revenue rulings, notices or C.B. 743, the Service has determined this
be used for purposes of determining the other guidance published in the Internal rate as the monthly average of the daily de-
minimum present value of a participant’s Revenue Bulletin. termination of yield on the 30-year Trea-
benefit under § 417(e)(1) and (2), as the Section 404(a)(1) of the Code, as sury bond maturing in February 2031.
annual rate of interest on 30-year Treasury amended by the Pension Funding Eq- The following 30-year Treasury rates
securities for the month before the date uity Act of 2004, permits an employer were determined for the plan years begin-
of distribution or such other time as the to elect to disregard subclause (II) of ning in the month shown below.
Secretary may by regulations prescribe. § 412(b)(5)(B)(ii) to determine the max-
30-Year
For Plan Years Treasury 90% to 105% 90% to 110%
Beginning in: Weighted Permissible Permissible
Month Year Average Range Range
December 2005 4.87 4.38 to 5.11 4.38 to 5.35
Drafting Information Request for Comments der for taxpayers to request automatic con-
Regarding Procedures sent from the Commissioner to change to
The principal authors of this notice certain methods of accounting. In gen-
are Paul Stern and Tony Montanaro of for Automatic Changes
eral, Rev. Proc. 2002–9 grants consent
the Employee Plans, Tax Exempt and in Methods of Accounting to any taxpayer within the scope of Rev.
Government Entities Division. For fur- Contained in Rev. Proc. Proc. 2002–9 to change the taxpayer’s
ther information regarding this notice, 2002–9 method(s) of accounting as described in
please contact the Employee Plans’ tax- the APPENDIX of Rev. Proc. 2002–9
payer assistance telephone service at Notice 2005–97 if the taxpayer complies with all the ap-
1–877–829–5500 (a toll-free number), plicable provisions of the revenue proce-
between the hours of 8:00 a.m. and The Internal Revenue Service and the dure and implements the change in method
6:30 p.m. Eastern time, Monday through Treasury Department invite public com- of accounting for the requested year of
Friday. Mr. Stern may be reached at ments on possible changes to Rev. Proc. change.
1–202–283–9703. Mr. Montanaro may 2002–9, 2002–1 C.B. 327, as modified Since its publication, the Service has
be reached at 1–202–283–9714. The tele- and clarified by Announcement 2002–17, clarified, modified, and amplified Rev.
phone numbers in the preceding sentences 2002–1 C.B. 561, modified and amplified Proc. 2002–9 in numerous revenue proce-
are not toll-free. by Rev. Proc. 2002–19, 2002–1 C.B. 696, dures, revenue rulings, notices, and other
and amplified, clarified, and modified by guidance. The Service and the Treasury
Rev. Proc. 2002–54, 2002–2 C.B. 432. Department intend to update Rev. Proc.
Rev. Proc. 2002–9 sets forth the pro- 2002–9 with a revised revenue procedure
cedures under § 446 of the Internal Rev- that will consolidate this subsequently is-
enue Code and the regulations thereun- sued guidance.
1. Table for Figuring Amount Exempt From Levy on Wages, Salary, and Other Income
(Forms 668-W(c), 668-W(c)(DO)) and 668-W(ICS) 2006
Publication 1494, shown below, provides tables that show the amount of an individual’s income that is exempt from a notice
of levy used to collect delinquent tax in 2006.
(Amounts are for each pay period.)
2. Table for Figuring Additional Exempt Amount for Taxpayers at Least 65 Years Old and/or Blind
Additional Exempt Amount
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.
EE—Employee. PHC—Personal Holding Company.
PO—Possession of the U.S.
E.O.—Executive Order.
PR—Partner.
1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2005–1 through 2005–26 is in Internal Revenue Bulletin
2005–26, dated June 27, 2005.
Obsoleted by Notice 2005-84, 2005-46 I.R.B. 959 Rev. Proc. 2005-52, 2005-34 I.R.B. 326
1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2005–1 through 2005–26 is in Internal Revenue Bulletin 2005–26, dated June 27, 2005.
SELF-EMPLOYMENT TAX
Collection due process hearings, clarification of the way con-
ducted:
Federal tax lien (REG–150088–02) 43, 774
Levy (REG–150091–02) 43, 780
Disaster relief:
Postponement of deadlines for certain acts under section
7508A performed by IRS, Hurricane Katrina (Notice 66)
40, 620; supplement (Notice 81) 47, 977
Postponement of deadlines for certain acts under section
7508A with respect to taxpayers affected by Hurricane Rita
(Notice 82) 47, 978
Summary and clarification of relief previously granted under
sections 6081, 6161, 6656, and 7508A with respect to tax-
payers affected by Hurricane Katrina (Notice 73) 42, 723
Proposed Regulations:
26 CFR 301.6020–1, added; substitute for return
(REG–131739–03) 36, 494
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(REG–150088–02) 43, 774
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (REG–150091–02) 43, 780