Internal Revenue Bulletin 2008-28 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 200
8-28
July 14, 2008
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2008–34, page 76.
Law school loan repayment assistance programs.This
ruling clarifies that a law school loan made under a Loan Re-
payment Assistance Program (LRAP) generally satisfies the re-
quirements of section 108(f)(1) of the Code, and is a “student
loan” within the meaning of section 108(f)(2).
Rev. Rul. 2008–37, page 77.
Life insurance company, statutory reserves.This ruling
provides that, if a life insurance company does business in
several states with different minimum reserve requirements,
the amount of the company’s statutory reserves is the highest
aggregate reserve amount set forth on an annual statement
pursuant to the minimum reserving requirements of any state
in which the company does business.
REG–101258–08, page 111.
Proposed regulations under sections 642 and 643 of the Code
contain amendments providing guidance with regard to the fed-
eral tax consequences of a provision in a trust or estate that
attempts to determine the tax character of amounts paid to a
charitable beneficiary. A public hearing is scheduled for Octo-
ber 8, 2008.
Notice 2008–56, page 79.
This notice provides for the suspension of certain requirements
under section 42 of the Code for low-income housing credit
projects in the United States in order to provide emergency
housing relief needed as a result of the devastation caused
by severe storms and flooding in Indiana beginning on June 6,
2008.
Notice 2008–57, page 80.
This notice designates the China earthquake occurring in May
2008 as a qualified disaster for purposes of section 139 of the
Code. The notice enables employer-sponsored private founda-
tions to assist certain victims in areas affected by the China
earthquake.
Notice 2008–58, page 81.
This notice provides for the suspension of certain requirements
under section 42 of the Code for low-income housing credit
projects in the United States in order to provide emergency
housing relief needed as a result of the devastation caused by
severe storms, tornadoes, and flooding in Iowa beginning on
May 25, 2008.
Rev. Proc. 2008–32, page 82.
Specifications are set forth for the private printing of paper
and laser-printed substitutes for the January 2008 revision of
Form 941,Employer’s QUARTERLY Federal Tax Return,andthe
January 2006 revision of Schedule B (Form 941),Report of Tax
Liability for Semiweekly Schedule Depositors.Thisprocedure
will be reproduced as the next revision of Publication 4436,
General Rules and Specifications for Substitute Form 941 and
Schedule B (Form 941). Rev. Proc. 2007–42 superseded.
Rev. Proc. 2008–33, page 93.
Specifications are set forth for the private printing of paper and
laser-printed substitutes for tax year 2008 Form W-2,Wage
and Tax Statement,andFormW-3,Transmittal of Wage and
Tax Statements. This procedure will be reproduced as the next
revision of Publication 1141,General Rules and Specifications
for Substitute Forms W-2 and W-3. Rev. Proc. 2007–43 su-
perseded.
(Continued on the next page)
Finding Lists begin on page ii.

Announcement 2008–63, page 114.
This announcement informs taxpayers that the Service is revis-
ing, effective July 1, 2008, the optional standard mileage rates
for computing the deductible costs of operating an automobile
for business, medical, or moving expense purposes and for
determining the reimbursed amount of these expenses that is
deemed substantiated. Rev. Proc. 2007–70 modified.
EMPLOYMENT TAX
Rev. Proc. 2008–32, page 82.
Specifications are set forth for the private printing of paper
and laser-printed substitutes for the January 2008 revision of
Form 941,Employer’s QUARTERLY Federal Tax Return, and the
January 2006 revision of Schedule B (Form 941),Report of Tax
Liability for Semiweekly Schedule Depositors. This procedure
will be reproduced as the next revision of Publication 4436,
General Rules and Specifications for Substitute Form 941 and
Schedule B (Form 941). Rev. Proc. 2007–42 superseded.
Rev. Proc. 2008–33, page 93.
Specifications are set forth for the private printing of paper and
laser-printed substitutes for tax year 2008 Form W-2,Wage
and Tax Statement,andFormW-3,Transmittal of Wage and
Tax Statements. This procedure will be reproduced as the next
revision of Publication 1141,General Rules and Specifications
for Substitute Forms W-2 and W-3. Rev. Proc. 2007–43 su-
perseded.
ADMINISTRATIVE
Announcement 2008–64, page 114.
This document provides notice of a public hearing on proposed
regulations (REG–151135–07, 2008–16 I.R.B. 815) providing
additional rules for certain multiemployer defined benefit plans
that are in effect on July 16, 2006. The regulations affect spon-
sors and administrators of, and participants in multiemployer
plans that are in either endangered or critical status. The reg-
ulations are necessary to implement the new rules set forth in
section 432 that are effective for plan years beginning after
2007. The regulations reflect changes made by the Pension
Protection Act of 2006. A public hearing is scheduled for July
31, 2008.
July 14, 20082008–28 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d meet their tax responsibilities and by applying
the tax law with
integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2008–28 I.R.B.July 14, 2008

July 14, 20082008–28 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 108.—
Income From
Discharge of I
ndebtedness
Law school loan repayment assis-
tance programs.This ruling clarifies
that a law school loan made under a Loan
Repayment Assistance Program (LRAP)
generally satisfies the requirements of
section 108(f)(1) of the Code, and is a
“student loan” within the meaning of sec-
tion 108(f)(2).
Rev. Rul. 2008–34
ISSUE
Do the terms of a loan made under
the Loan Repayment Assistance Program
(LRAP) described below satisfy the re-
quirements of § 108(f)(1) of the Internal
Revenue Code, and is the LRAP loan
a “student loan” within the meaning of
§ 108(f)(2)?
FACTS
A,anind
ividual, attended law school
and has s
tudent loan debt. Neither the
loans no
r the underlying loan documents
address
ed whether any of the indebtedness
would b
e forgiven ifAworked in a par-
ticula
r profession for a specified period of
time.
A’s law
school offers a Loan Repay-
ment As
sistance Program (LRAP) to help
reduce
the student loan debt of graduates
who eng
age in public service. The LRAP
is des
igned to encourage graduates to en-
ter in
to public service in occupations or ar-
eas wi
th unmet needs. Under the LRAP,
the la
w school makes loans that refinance
the gr
aduates’ original student loan(s). To
qual
ify for an LRAP loan, a graduate must
work
in a law-related public service posi-
tion
for, or under the direction of, a tax-ex-
empt
charitable organization or a govern-
ment
al unit, including a position in (1) a
pub
lic interest or community service or-
gan
ization, (2) a legal aid office or clinic,
(3)
a prosecutor’s office, (4) a public de-
fen
der’s office, or (5) a state, local, or fed-
era
l government office. The amount of the
LRAP loan is ba
sed on the graduate’s out-
standing stud
ent loan debt and annual in-
come. After th
e graduate works for the re-
quired perio
d in a qualifying position, the
law school wi
ll forgive all or part of the
graduate’s L
RAP loan.
AfterAgradu
ates from law school,A
signs an LRAP
promissory note and ac-
cepts the ter
ms and conditions of the law
school’s LR
AP loan. The LRAP loan pro-
vides that t
he indebtedness will be forgiven
ifAworks fo
r a certain minimum period of
time in a qua
lifying law-related public ser-
vice posit
ion.
LAW
Section 61(
a) provides that gross in-
come means
all income from whatever
source der
ived. Section 61(a)(12) pro-
vides that
gross income includes income
from the di
scharge of indebtedness.
Section 10
8(f)(1) provides that in the
case of an i
ndividual, gross income does
not inclu
de any amount which (but for
§ 108(f))
would be includible in gross in-
come by re
ason of the discharge (in whole
or in part
) of any student loan if such dis-
charge w
as pursuant to a provision of such
loan und
er which all or part of the in-
debtedn
ess of the individual would be dis-
charged
if the individual worked for a cer-
tain per
iod of time in certain professions
for any
of a broad class of employers.
Section
108(f)(2) defines “student
loan” f
or purposes of § 108(f) to include
any loa
ntoanindividualtoassistthe
indivi
dual in attending an educational or-
ganiza
tion described in § 170(b)(1)(A)(ii)
made by
(A) the United States, or an
instr
umentality or agency thereof, (B)
aStat
e, territory, or possession of the
Unite
d States, or the District of Colum-
bia, o
r any political subdivision thereof,
or (C)
certain tax-exempt public benefit
corp
orations. The Taxpayer Relief Act of
1997
(1997 Act), Pub. L. 105–34, added
§108
(f)(2)(D), which amended and ex-
pand
ed the definition of “student loan”
to in
clude loans made by the educational
orga
nizations themselves if the loans were
mad
eeither:
(i) pursuant t
o an agreement with any
entity descri
bed in subparagraph (A), (B),
or (C) under wh
ich the funds from which
the loan was m
ade were provided to such
educational
organization, or
(ii) pursuan
t to a program of such ed-
ucational or
ganization which is designed
to encourage
its students to serve in occu-
pations with
unmet needs or in areas with
unmet needs
and under which the services
provided by
the students (or former stu-
dents) are f
or or under the direction of a
government
al unit or an organization de-
scribed in
section 501(c)(3) and exempt
from tax un
der section 501(a).
The 1997 Ac
t further amended
§ 108(f)(2
) to provide that the term “stu-
dent loan”
includes any loan made by an
education
al organization described in sec-
tion 170(
b)(1)(A)(ii) or by an organization
exempt fr
om tax under section 501(a) “to
refinanc
e a loan to an individual to as-
sist the i
ndividual in attending any such
educatio
nal organization but only if the
refinanc
ingloanispursuanttoaprogram
of the re
financing organization which is
designe
d as described in subparagraph
(D)(ii)
.”
1
The legislative history to the
1997 Act
explains that, in the case of loans
made or
refinanced by educational orga-
nizati
ons (and loans refinanced by certain
tax-ex
empt organizations), the student’s
work mu
st fulfill a “public service require-
ment.”
SeeH.R. Conf. Rep. No. 105–220,
at 375
–76 (1997).
ANALYS
IS
The te
rms ofA’s LRAP loan provide for
loan f
orgiveness only ifAworks for a cer-
tain m
inimum period of time in a quali-
fying
law-related public service position.
This r
equirement is consistent with the re-
quire
ment in §108(f)(1) to work in certain
prof
essions for a certain period of time.
Addi
tionally, the law school’s LRAP is
desi
gned to encourage its students to en-
gage
in public service in occupations or
area
s with unmet needs. All of the posi-
tion
s listed in the LRAP are for, or under
the d
irection of, a governmental unit or a
tax
-exempt charitable organization. Fur-
1
A technical correction clarified that gross income does not include amountsfrom the forgiveness of loans made by educational organizations and certain tax-exempt organizations to refinance
anyexisting student loan (and not just loans made by educational organizations). See Pub. L. 105–206, § 6004(f)(1), and H. R. Rep. No. 356, 105th Cong., 1st Sess. 10 (1997).
2008–28 I.R.B.76July 14, 2008

ther, the LRAP loan was made to refinance
A’s original student loans. Therefore, the
LRAP loan meets the definition of a “stu-
dent loan” in § 108(f)(2).
HOLDING
The terms of the loan made under
the LRAP satisfy the requirements of
§ 108(f)(1), and the LRAP loan is a
“student loan” within the meaning of
§ 108(f)(2).
DRAFTING INFORMATION
The principal author of this revenue
ruling is Craig R. Wojay of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue ruling, contact
Craig R. Wojay at (202) 622–4920 (not a
toll-free call).
Section 807.—Rules for
Certain Reserves
Life insurance company, statutory
reserves.This ruling provides that, if
a life insurance company does business
in several states with different minimum
reserve requirements, the amount of the
company’s statutory reserves is the high-
est aggregate reserve amount set forth on
an annual statement pursuant to the mini-
mum reserving requirements of any state
in which the company does business.
Rev. Rul. 2008–37
ISSUE(S)
What is the amount of a life insurance
company’s statutory reserves within the
meaning of § 807(d)(6) if the company
does business in several States with differ-
ent minimum reserve requirements?
FACTS
Situation 1
IC is a life insurance company as de-
fined in § 816(a) of the Internal Revenue
Code, and is the issuer of ContractA,
which is a “life insurance contract” as
definedin§7702.
ICdoes business in forty-five States.IC
is subject to regulation under the insurance
laws of each State in which it does busi-
ness. Each State has express statutory pro-
visions, or rules and regulations promul-
gated in the exercise of a power conferred
by statute, for determining the minimum
amount of the reserves thatICis required
to set aside to mature or liquidate policy-
holder or beneficiary claims arising from
its insurance and annuity contracts.
To avoid State-by-State variations,IC
actually holds and reports to each State
insurance regulatory authority on its an-
nual statement approved by the National
Association of Insurance Commissioners
(NAIC) the highest aggregate minimum
amount of reserves required for its in-
surance and annuity contracts under the
statutes, regulations, or rules of any State
in whichICtransacts business. The State
insurance regulatory authorities in each
State accept the amount of reserves re-
ported on the annual statement as the
amountIChas set aside to mature or liq-
uidate policyholder or beneficiary claims
arising from its insurance and annuity
contracts.
On its 2007 annual statement,ICre-
ported end-of-year aggregate reserves of
$405,955,000 with regard to items de-
scribed in § 807(c). The $405,955,000
aggregate reserves included $9,992 of life
insurance reserves with respect to Con-
tractA.
HadICreported on its 2007 annual
statement the minimum aggregate reserves
required under the statutes, regulations or
rules of either the State in whichICwas
chartered, or the State in which Contract
Awas issued or delivered,ICwould have
reported only $402,540,000 of end-of-year
aggregate reserves with regard to the items
described in § 807(c). The $402,540,000
aggregate reserves would have included
$9,942 of life insurance reserves with re-
spect to ContractA. The $402,540,000
aggregate reserve amount would not have
satisfied the minimum legal reserve re-
quirements of one or more States in which
ICdoes business.
Situation 2
The facts are the same as in Situation
1, except that on its annual statementIC
reported to each State insurance regula-
tory authority the minimum amount of re-
serves required for its insurance and an-
nuity contracts under the statutes, regula-
tions, or rules of that particular State. As
in Situation 1, however,ICactually holds
the highest aggregate minimum amount of
reserve required for its insurance contracts
under the rules of any State in whichIC
does business.
On its 2007 annual statement filed with
and accepted by the insurance regula-
tory authorities in StateX,whichisthe
State in whichICis chartered,ICreported
$402,540,000 of end-of-year aggregate
reserves with regard to items described in
§ 807(c). This amount ($402,540,000) was
the lowest amount of reserves reported by
ICon the annual statement filed with and
accepted by any State, and would not have
satisfied the minimum legal reserve re-
quirements of one or more States in which
ICdoes business. The $402,540,000 ag-
gregate reserves included $9,942 of life
insurance reserves with respect to Con-
tractA.
On its 2007 annual statement filed
with and accepted by the insurance regu-
latory authorities in StateY,ICreported
$405,955,000 of end-of-year aggregate
reserves with regard to items described
in § 807(c). This amount ($405,955,000)
was the lowest amount of reserves that
satisfied minimum requirements of State
Y, which has the highest minimum reserve
requirements of any of the States in which
ICdoes business. The $405,955,000 ag-
gregate reserves included $9,992 of life
insurance reserves with respect to Con-
tractA.
LAW AND ANALYSIS
In general, a life insurance company
must pay tax on its life insurance com-
pany taxable income, which is defined
in § 801(b) to mean life insurance gross
income less life insurance deductions.
Life insurance gross income is defined in
§ 803(a) to mean the sum of (i) premiums,
(ii) net decreases in certain reserves under
§ 807(a), and (iii) other amounts generally
included by a taxpayer in gross income.
Section 805(a)(2) authorizes a deduction
for the net increase in certain reserves
under § 807(b).
For purposes of determining a life in-
surance company’s income or deduction
from decreases or increases in life insur-
ance reserves, § 807(d)(1) provides that
the amount of the life insurance reserves
for any contract is the greater of— (i) the
July 14, 2008772008–28 I.R.B.

contract’s net surrender value, or (ii) the
contract’s tax reserve determined under
§ 807(d)(2). However, the life insurance
reserves for a contract cannot exceed the
amount that would be taken into account
with respect to the contract in determin-
ing “statutory reserves”, as defined in
§ 807(d)(6). Accordingly, the statutory re-
serves with respect to a contract operate as
a limit on the amount of the contract’s life
insurance reserves that might otherwise
be taken into account in determining a
life insurance company’s taxable income.
Section 807(d)(1) (flush language).
Section 807(d)(6) defines “statutory re-
serves” to mean “the aggregate amount
set forth in the annual statement with re-
spect to items described in § 807(c).”See
§ 807(c)(1) (relating to “life insurance re-
serves” as defined in § 816(b)). Statu-
tory reserves do not include any reserve at-
tributable to deferredand uncollected pre-
mium if the establishment of such reserve
is not permitted under § 811(c).
In Situation 1,ICheld and reported
$405,955,000 of reserves with regard to
items described in § 807(c) on its 2007 an-
nual statement filed in each State in which
ICdoes business. This amount was the
highest aggregate minimum amount of re-
serves required under the statutes, regula-
tions, or rules of any State in whichIC
does business. That the minimum require-
ments of some States in whichICdoes
business would have permittedICto hold
and report a lower aggregate minimum
amount of reserves has no effect on the de-
termination ofIC’s statutory reserves un-
der §807(d)(6). The $405,955,000 of re-
serves was required to be held, was actu-
ally held, and was set forth inIC’s annual
statement, which was filed with and ac-
cepted by the insurance regulatory author-
ity of each State in whichICdoes busi-
ness. The amount ofIC’s “statutory re-
serves” as defined in § 807(d)(6), there-
fore, is $405,955,000.
IC’s $405,955,000 of statutory reserves
under § 807(d)(6) includes $9,992 of life
insurance reserves with respect to Contract
A. Accordingly, $9,992 is the amount taken
into account with respect to ContractAin
applying the statutory reserves limitation
contained in § 807(d)(1).
In Situation 2,ICheld and reported
$405,955,000 of reserves with regard to
items described in § 807(c) on its 2007
annual statement filed with and accepted
by the insurance regulatory authority in
StateY. This amount was the minimum
amount of reserves required under the
statutes, regulations, or rules of StateY.
That $405,955,000 was larger than the
amount of reserves that would have been
required under the rules of StateXhas
no effect on the determination ofIC’s
statutory reserves under § 807(d)(6). The
$405,955,000 of reserves was required to
be held, was actually held, and was set
forth inIC’s annual statement, which was
filed with and accepted by the insurance
regulatory authority in StateY. The amount
ofIC’s “statutory reserves” as defined in
§ 807(d)(6), therefore, is $405,955,000.
Cf. § 1.801–5(a) (permitting an insurance
company to determine “total reserves”
(as defined in § 816(c)) using the highest
aggregate reserve required by any State
or Territory or the District of Columbia
in which the company transacts business,
provided the company actually holds the
reserve).
IC’s $405,955,000 of statutory reserves
under § 807(d)(6) includes $9,992 of life
insurance reserves with respect to Contract
A. Accordingly, $9,992 is the amount taken
into account with respect to ContractAin
applying the statutory reserves limitation
contained in § 807(d)(1).
HOLDING(S)
In both Situation 1 and Situation 2,
the amount ofIC’s 2007 end-of-year
statutory reserves under § 807(d)(6) is
$405,955,000 — the highest aggregate
reserve amount for § 807(c) items actually
held and set forth on the annual state-
ment pursuant to the minimum reserve
requirements of any State in whichIC
does business.
IC’s $405,955,000 of statutory reserves
under § 807(d)(6) includes $9,992 of life
insurance reserves with respect to Con-
tractA. Accordingly, $9,992 is the amount
taken into account with respect to Contract
Ain applying the statutory reserves lim-
itation contained in the flush language of
§ 807(d)(1).
DRAFTING INFORMATION
The principal authors of this revenue
ruling are Linda Boyd and Stephen Hooe
oftheOfficeofAssociateChiefCoun-
sel (Financial Institutions & Products).
For further information regarding this
revenue ruling, contact Linda Boyd at
(202) 622–3970 or Stephen Hooe at (202)
622–3900 (not a toll-free call).
Section 816.—Life
Insurance Company Defined
This revenue ruling provides that, if a life in-
surance company does business in several States
with different minimum reserve requirements, the
amount of the company’s statutory reserves is the
highest aggregate reserve amount set forth on an
annual statement pursuant to the minimum reserving
requirements of any State in which the company does
business. See Rev. Rul. 2008-37, page 77.
2008–28 I.R.B.78July 14, 2008

Part III. Administrative, Procedural, and Miscellaneous
Relief From Certain
Low-Income Housing Credit
Requirements Due to Severe
Storms and Flooding in
Indiana
Notice 2008–56
The Internal Revenue Service is sus-
pending certain requirements under § 42
of the Internal Revenue Code for low-in-
come housing credit projects in the United
States to provide emergency housing relief
needed as a result of the devastation caused
by severe storms and flooding in Indiana
beginning on June 6, 2008. This relief is
being granted pursuant to the Service’s au-
thority under § 42(n) and § 1.42–13(a) of
the Income Tax Regulations.
BACKGROUND
On June 8, 2008, the President de-
clared a major disaster for the State of
Indiana. This declaration was made un-
der the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, 42 U.S.C.
5121–5206 (2000 and Supp. II 2002).
Subsequently, the Federal Emergency
Management Agency (FEMA) designated
jurisdictions for Individual Assistance.
The State of Indiana has requested that
the Service allow owners of low-income
housing credit projects to provide tempo-
rary housing in vacant units to individuals
who resided in jurisdictions designated
for Individual Assistance in Indiana and
who have been displaced because their
residences were destroyed or damaged as
a result of the devastation caused by the
severe storms and flooding. Based upon
this request and because of the widespread
damage to housing caused by the severe
storms and flooding, the Service has de-
termined that the Indiana Housing and
Community Development Authority (Au-
thority) may provide approval to project
owners to provide temporary emergency
housing for displaced individuals in accor-
dance with this notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income projects.
The suspension will apply to low-income
housing projects approved by the Author-
ity, in which vacant units are rented to dis-
placed individuals. The Authority will de-
termine the appropriate period of tempo-
rary housing for each project, not to extend
beyond July 31, 2009 (temporary housing
period).
II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and for
meeting the project’s 20–50 test or 40–60
test as elected by the project owner under
§ 42(g)(1). After the end of the temporary
housing period established by the Author-
ity (not to extend beyond July 31, 2009),
a displaced individual will no longer be
deemed a qualified low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Authority, the status of a
vacant unit (that is, market-rate or low-in-
come for purposes of § 42 or never previ-
ously occupied) after the first year of the
credit period that becomes temporarily oc-
cupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this no-
tice will continue to be treated as a va-
cant low-income or market rate unit. Sim-
ilarly, a unit that was never previously oc-
cupied before the effective date of this no-
tice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable frac-
tion under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60
test of § 42(g)(1). If the income of oc-
cupants in low-income units exceeds 140
percent of the applicable income limita-
tion, the temporary occupancy of a unit by
a displaced individual will not cause ap-
plication of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary
housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Author-
ity in accordance with section I of this
notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Authority. After the end of the
temporary housing period, the appli-
cable income limitations contained in
§ 42(g)(1), the available unit rule un-
der § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
to rent vacant units to low-income individ-
uals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the re-
lief in this notice, the project owner must
additionally meet all of the following re-
quirements:
(1) Major Disaster Area
The displaced individual must have
resided in an Indiana jurisdiction desig-
nated for Individual Assistance by FEMA
as a result of the severe storms and flood-
ing in Indiana beginning on June 6, 2008.
(2) Approval of the Indiana Housing
and Community Development Authority
July 14, 2008792008–28 I.R.B.

The project owner must obtain approval
from the Authority for the relief described
in this notice. The Authority will deter-
mine the appropriate period of temporary
housing for each project, not to extend be-
yond July 31, 2009.
(3) Certificationsand Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required
to maintain and certify certain informa-
tion concerning eachdisplaced individ-
ual temporarily housed in the project,
specifically: name, address of dam-
aged residence, social security number,
and a statement signed under penalties
of perjury by the displaced individual
that, because of damage to the individ-
ual’s residence in an Indiana jurisdiction
designated for Individual Assistance by
FEMA as a result of the severe storms
and flooding beginning on June 6, 2008,
the individual requires temporary hous-
ing. The owner must list the project on
http://www.indianahousingnow.org.
The owner must also certify the date the
displaced individual began temporary oc-
cupancy and the date the project will dis-
continue providing temporary housing as
established by the Authority. The certi-
fications and recordkeeping for displaced
individuals must be maintained as part of
the annual compliance monitoring process
with the Authority.
(4) Rent Restrictions
Rents for the low-income units that
house displaced individuals must not ex-
ceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).
(5) Protection of Existing Tenants
Existing tenants in occupied low-in-
come units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
EFFECTIVE DATE
This notice is effective June 8, 2008
(the date of the President’s major disaster
declarations as a result of the severe storms
and flooding in Indiana beginning on June
6, 2008).
PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2105.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this
notice is in the section titled “OTHER RE-
QUIREMENTS” under “(3) Certifications
and Recordkeeping.” This information is
required to enable the Service to verify
whether individuals are displaced as a re-
sult of the devastation caused by severe
storms and flooding in Indiana begin-
ning on June 6, 2008, and thus warrant
temporary housing in vacant low-income
housing credit units. The collection of
information is required to obtain a benefit.
The likely respondents are individuals and
businesses.
The estimated total annual recordkeep-
ing burden is 125 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
500.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this notice is
David Selig of the Office of the Associate
Chief Counsel (Passthroughs and Special
Industries). For further information re-
garding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll free call).
China Earthquake Occurring
in May 2008 Designated as
a Qualified Disaster Under
§ 139 of the Internal Revenue
Code
Notice 2008–57
This notice designates the China earth-
quake occurring in May 2008 as a qualified
disaster for purposes of § 139 of the Inter-
nal Revenue Code.
EARTHQUAKE DISASTER
On May 12, 2008, a magnitude 7.9
earthquake with hundreds of resulting af-
tershocks affected a large region of China
(“China earthquake”). More than 67,000
people were killed, more than 292,000
were injured, and at least 5,470,000 were
displaced from their homes as a result of
this disaster.USAID China-Earthquake
Fact Sheet No. 4(May 27, 2008);USAID
China-Earthquake Fact Sheet No. 2(May
15, 2008).
This notice enables employer-spon-
sored private foundations to assist certain
victims in areas affected by the China
earthquake and enables recipients of this
assistance to exclude the relief payments
from gross income.
QUALIFIED DISASTER RELIEF
PAYMENTS EXCLUDED FROM
RECIPIENT’S GROSS INCOME
Section 139(a) provides that gross in-
come shall not include any amount re-
ceived by an individual as a qualified dis-
aster relief payment.
Section 139(b) provides that a quali-
fied disaster relief payment includes any
amount paid to or for the benefit of an in-
dividual—
(1) to reimburse or pay reasonable
and necessary personal, family, living,
or funeral expenses (not otherwise com-
pensated for by insurance or otherwise)
incurred as a result of a qualified disaster,
or
(2) to reimburse or pay reasonable and
necessary expenses (not otherwise com-
pensated for by insurance or otherwise) in-
curred for the repair or rehabilitation of
a personal residence or repair or replace-
ment of its contents to the extent that the
need for such repair, rehabilitation, or re-
placement is attributable to a qualified dis-
aster.
Under § 139(c)(3) the term “qualified
disaster” includes a disaster resulting from
an event that is determined by the Secre-
tary to be of a catastrophic nature.
DESIGNATION AS QUALIFIED
DISASTER
The Commissioner of Internal Rev-
enue, pursuant to delegation by the Secre-
tary, has determined that the China earth-
quake occurring in May 2008 is an event
2008–28 I.R.B.80July 14, 2008

of a catastrophic nature under § 139(c)(3).
Therefore, the Chinaearthquake is desig-
nated as a qualified disaster under § 139.
SECTION 501(c)(3) ORGANIZATIONS
Employer-sponsored private founda-
tions may choose to provide disaster relief
to employee victims of the China earth-
quake. Like all organizations described
in § 501(c)(3), private foundations should
exercise due diligence when providing
disaster relief as set forth in Publication
3833,Disaster Relief: Providing Assis-
tance Through Charitable Organizations.
DRAFTING INFORMATION
The principal author of this notice is
Sheldon Iskow of the Office of Associate
Chief Counsel (Income Tax & Account-
ing). For further information regarding
this notice, contact Mr. Iskow at (202)
622–4920 (not a toll-free call).
Relief From Certain
Low-Income Housing Credit
Requirements Due to Severe
Storms, Tornadoes, and
Flooding in Iowa
Notice 2008–58
The Internal Revenue Service is sus-
pending certain requirements unde
r§42
of the Internal Revenue Code for low
-in-
come housing credit projects in the
United
States to provide emergency housin
gre-
lief needed as a result of the devast
ation
caused by severe storms, tornadoe
s, and
flooding in Iowa beginning on May 2
5,
2008. This relief is being grante
dpursuant
to the Service’s authority under
§ 42(n) and
§ 1.42–13(a) of the Income Tax Reg
ula-
tions.
BACKGROUND
On May 27, 2008, the President de-
clared a major disaster for the State of
Iowa. This declaration was made under
the Robert T. Stafford Disaster Relief and
Emergency Assistance Act, 42 U.S.C.
5121–5206 (2000 and Supp. II 2002).
Subsequently, the Federal Emergency
Management Agency (FEMA) designated
jurisdictions for Individual Assistance.
The State of Iowa has requested that the
Service allow owners of low-income hous-
ing credit projects to provide temporary
housing in vacant unitsto individuals who
resided in jurisdictions designated for In-
dividual Assistance in Iowa and who have
been displaced because their residences
were destroyed or damaged as a result
of the devastation caused by the severe
storms, tornadoes, and flooding. Based
upon this request and because of the wide-
spread damage to housing caused by the
severe storms, tornadoes, and flooding,
the Service has determined that the Iowa
Finance Authority (Authority) may pro-
vide approval to project owners to provide
temporary emergency housing for dis-
placed individuals in accordance with this
notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income projects.
The suspension will apply to low-income
housing projects approved by the Author-
ity, in which vacant units are rented to dis-
placed individuals. The Authority will de-
termine the appropriate period of tempo-
rary housing for each project, not to extend
beyond July 31, 2009 (temporary housing
period).
II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and for
meeting the project’s 20–50 test or 40–60
test as elected by the project owner under
§ 42(g)(1). After the end of the temporary
housing period established by the Author-
ity (not to extend beyond July 31, 2009),
a displaced individual will no longer be
deemed a qualified low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Authority, the status of a
vacant unit (that is, market-rate or low-in-
come for purposes of § 42 or never previ-
ously occupied) after the first year of the
credit period that becomes temporarily oc-
cupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this no-
tice will continue to be treated as a va-
cant low-income or market rate unit. Sim-
ilarly, a unit that was never previously oc-
cupied before the effective date of this no-
tice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable frac-
tion under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60
test of § 42(g)(1). If the income of oc-
cupants in low-income units exceeds 140
percent of the applicable income limita-
tion, the temporary occupancy of a unit by
a displaced individual will not cause ap-
plication of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary
housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Author-
ity in accordance with section I of this
notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Authority. After the end of the
temporary housing period, the appli-
cable income limitations contained in
§ 42(g)(1), the available unit rule un-
der § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
July 14, 2008812008–28 I.R.B.

to rent vacant units to low-income individ-
uals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the re-
lief in this notice, the project owner must
additionally meet all of the following re-
quirements:
(1) Major Disaster Area
The displaced individual must have
resided in an Iowa jurisdiction designated
for Individual Assistance by FEMA as a
result of the severe storms, tornadoes, and
flooding in Iowa beginning on May 25,
2008.
(2) Approval of the Iowa Finance Au-
thority
The project owner must obtain approval
from the Authority for the relief described
in this notice. The Authority will deter-
mine the appropriate period of temporary
housing for each project, not to extend be-
yond July 31, 2009.
(3) Certificationsand Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required to
maintain and certify certain information
concerning each displaced individual tem-
porarily housed in the project, specifically:
name, address of damaged residence,
social security number, and a statement
signed under penalties of perjury by the
displaced individual that, because of dam-
age to the individual’s residence in an
Iowa jurisdiction designated for Individ-
ual Assistance by FEMA as a result of
the severe storms, tornadoes, and flooding
beginning on May 25, 2008, the individual
requires temporary housing. The owner
must notify the Authority that vacant units
are available for rent to displaced individ-
uals.
The owner must also certify the date the
displaced individual began temporary oc-
cupancy and the date the project will dis-
continue providing temporary housing as
established by the Authority. The certi-
fications and recordkeeping for displaced
individuals must be maintained as part of
the annual compliance monitoring process
with the Authority.
(4) Rent Restrictions
Rents for the low-income units that
house displaced individuals must not ex-
ceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).
(5) Protection of Existing Tenants
Existing tenants inoccupied low-in-
come units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
EFFECTIVE DATE
This notice is effective May 27, 2008
(the date of the President’s major disas-
ter declarations as a result of the severe
storms, tornadoes, and flooding in Iowa
beginning on May 25, 2008).
PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2106.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this no-
tice is in the section titled “OTHER RE-
QUIREMENTS” under “(3) Certifications
and Recordkeeping.” This information is
requiredtoenabletheServicetoverify
whether individuals are displaced as a re-
sult of the devastation caused by severe
storms, tornadoes, and flooding in Iowa
beginning on May 25, 2008, and thus war-
rant temporary housing in vacant low-in-
come housing credit units. The collection
of information is required to obtain a bene-
fit. The likely respondents are individuals
and businesses.
The estimated total annual recordkeep-
ing burden is 125 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
500.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this notice is
David Selig of the Office of the Associate
Chief Counsel (Passthroughs and Special
Industries). For further information re-
garding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll-free call).
Note.This revenue procedure will be reproduced as the next revision of IRS Publication 4436, General Rules and Specifications for
Substitute Form 941 and Schedule B (Form 941).
Rev. Proc. 2008–32
TABLE OF CONTENTS
SECTION 1 – PURPOSE
............................................................................................. 83
SECTION 2 – WHAT’S NEW......................................................................................... 83
SECTION 3 – GENERAL REQUIREMENTS FOR REPRODUCING IRS OFFICIAL FORM 941 AND
SCHEDULE B (FORM 941)
.............................................................................. 84
2008–28 I.R.B.82July 14, 2008

SECTION 4 – REPRODUCING FORM 941 AND SCHEDULE B (FORM 941) FOR SOFTWARE-GENERATED
PAPER FORMS
......................................................................................... 84
SECTION 5 – OMB REQUIREMENTS FOR SUBSTITUTE FORMS....................................................... 85
SECTION 6 – REPRODUCIBLE COPIES OF FORMS................................................................... 86
SECTION7–EFFECTONOTHERDOCUMENTS..................................................................... 86
SECTION
8 – EXHIBITS
.........................................................................
................... 86
Section 1 – Purpose
.01The purpose of this publication is to provide general rules and specifications from the Internal Revenue Service (IRS) for paper
and computer-generated substitutes for the January 2008 revision of Form 941, Employer’s QUARTERLY Federal Tax Return, and
for the January 2006 revision of Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors.
Note.Substitute territorial forms (941-PR, 941-SS, and Anexo B (Forma 941-PR)) should also conformto the specifications outlined
in this revenue procedure.
.02This publication provides measurementsand printing specifications for substitute Form 941 and Schedule B (Form 941). If
you need more in-depth information on who must complete the forms and how to complete them, see the Instructions for Form 941
and Publication 15 (Circular E), Employer’s Tax Guide, or visit the IRS website atw
ww.irs.gov.
.03Forms should not be submitted to the IRS for specific approval. If you are uncertain of any specification and want clarification,
do the following.
(1) Submit a letter citing the specification.
(2) State your understanding of the specification.
(3) Enclose an example (if appropriate) of how the formwould appear if produced using your understanding.
(4) Use the following address. Be sure to include your name, complete address, phone number, and, if applicable, your email
address with your correspondence.
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP, IR-6526
1111 Constitution Avenue, NW
Washington, DC 20224
Note.Allow at least 30 days for the IRS to respond.
.04However, software developers and form producers should send ablank copy of their substitute Form 941 and Schedule B (Form
941) in pdf format toD
orene.Beard@irs.gov. The purpose is not specifically for approval but to assist the IRS in preparing to scan
these forms. Submitters will only receive comments if a significant problem is discovered through this process. Submitters are not
expected to delay marketing their forms inorder to receive feedback. In no case should submitters include “live” taxpayer data.
.05The six-digit form ID code (beginning 95xxxx) on Form 941 and Schedule B (Form 941) identifies the official substitutepaper
form. The six-digit form ID code (beginning 97xxxx) identifies substitute6x10 gridForm 941 and Schedule B (Form 941). The
six-digit form ID code (beginning 99xxxx) identifies the officialIRS issuedForm 941 and Schedule B (Form 941). The last two
digits of the code identify the calender year. For example, the last two digits of IDcode 970108 identifycalender year 2008.
Section 2 – What’s New
.01There are new 6x10 grid layouts for the 2008 revision of Form 941.
.02The room number in the address of the Substitute Forms Unit has changed to Room 6526.
.03The Substitute Forms Unit email address has changed toS
ubstituteforms@irs.govinstead of*taxforms@irs.gov.
.04There are no changes to the January 2006 revision of Schedule B(Form 941), and therefore, this revision remains useable.
.05We separated the entry space for the third party designee’s name and a telephone number in Part 4 on page 2. In addition, we
moved the text for the “Personal Identification Number” and the fill-in-boxes for the number to the right to line up under “Designee’s
name and phone number.”
July 14, 2008832008–28 I.R.B.

.06We added “(or yours if self-employed)” to the firm’s name space in part 6.
.07We changed the wording of the second line of text for line 12 from“Follow the Instructions for Form 941-V, Payment Voucher”
to “For information on how to pay, see the instructions.”
.08We added “to avoid a penalty” at the beginning of the Form 941-V instructions section “Making Payments With Form 941.”
.09We changed the wording in the “Caution” of the 941-V instructions.
Section 3 – General Requirements for Reproducing IRS Official Form 941 and Schedule B
(Form 941)
.01Donotsubmit substitute Form 941 and Schedule B (Form 941) to the IRS for approval. Substitute Form 941 and Schedule B
(Form 941) thatcompletely conformto the specifications contained in this revenue procedure do not require prior approval from the
IRS.
.02Print the form on paper that is 8.5 inches wide by 11 inches deep.
.03Use white paper that meets generally-accepted weight, color,and quality standards (minimum 20 lb. white bond paper).
Note.Reclaimed fiber in any percentage is permitted provided that the requirements of this standard are met.
.04The IRS prefers printing Form 941 on both sides of a single sheet of paper, but it is acceptable to print on one side of each of
two separate sheets of paper.
.05Make substitute paper forms as identical to the official IRS-printed forms as possible.
.06Print using nonreflective black inks.
.07Use typefaces that are substantially identicalin size and shape to the official forms and use rules and shading that are substan-
tially identical to those on the offical forms.
.08Print the six-digit form ID codes in the upper right-hand corner of each form using nonreflective black, carbon-based, 12-point
(minimum 10-point required) OCR-A font. Use the official paper over-the-counter IRS forms to develop your substitute paper forms.
Print “950108” on page 1 of Form 941, “950208” on page 2 of Form 941, and “950306” on Schedule B (Form 941) of substitute paper
forms. See Section 4 for information on form ID codes for software-generated forms.
Note. Maintain as much white space as possible around the form ID code. Do not allow character strings to print adjacent to the code.
.09Print the OMB number in the same location as on the official forms.
.10Print all entry boxes and checkboxes exactly as shown on the official forms.
.11Print your IRS-issued three-letter substitute form printer source code in the middle at the bottom of page 1 of Form 941.
Note.You can obtain a three-letter substitute form printer source code by requesting it by email atS
ubstituteforms@irs.gov. Please
enter “Substitute Forms” on the subject line.
.12Print “For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher” at the bottom of page 1 of
Form 941.
.13Print “For Paperwork Reduction Act Notice, see separate instructions” at the bottom of Schedule B (Form 941).
.14Do not print the form catalog number (“Cat. No.”) at the bottom of the forms or instructions.
.15Do not print the Government Printing Office (GPO) symbol at the bottom of the forms or instructions.
.16See Exhibits A and B in Section 8.
Section 4 – Reproducing Form 941 and ScheduleB (Form 941) for Software-Generated Paper
Forms
.01You may use the 6x10 grid exhibits (C and D) at the end of this document to develop a software version of Form 941 and
Schedule B (Form 941). Please follow the specifications exactly to develop the fields.
.02If you are developing software using the 6x10 grid in the exhibits, you may make the following modifications. See Exhibits C
and D in Section 8.
•Use “970108” for page 1 of Form 941, “970208” for page 2 of Form 941, and “970306” for Schedule B (Form 941) as the form
ID codes.
Note.Maintain as much white space as possible around the form ID code. Do not allow character strings to print adjacent to the
code.
•Place all boxes and entry spaces in the same field locat
ions as indicated in the 6x10 grid exhibits.
•Use single lines for “Employer Identification Number” (EIN) and other entry areas in the entity section of page 1 of Form 941.
2008–28 I.R.B.84July 14, 2008

•You do not need to use reverse type as shown on the IRS official form.
•You do not need to pre-print decimal points in the data boxes. However, where the amounts are required, the amounts should be
printed with decimal points and place holders for cents.
•Use a single box for “state abbreviation” in line 14 of Form 941.
•Delete the pre-printed formatting in the “date” box for line 16 and in Parts 5 and 6 of Form 941.
•Delete the pre-printed formatting in the “Phone” box in Parts 4, 5, and 6.
•Use a single box for “Personal Identification Number (PIN)” in Part 4 of Form 941.
•You may delete all shading when using the 6x10 grid format.
.03If producing both the form and the data or the form only, print your three-letter IRS-issued form printer source code in Row
63, Columns 49-51 on page 1 of Form 941. See Section 3.11.
.04If producing only the data on the form, print your four-digit software industry form code in Row 4, Columns 58-61 on page 1
of Form 941. See the National Association of Computerized Tax Processors (NACTP) website atw
ww.nactp.orgfor information on
these codes.
.05Print “For Privacy Act and Paperwork Reduction Act Notice,see the Payment Voucher” at the bottom of page 1 of Form 941.
.06Print “For Paperwork Reduction Act Notice, see separate instructions” at the bottom of Schedule B (Form 941).
.07Do not print the form catalog number (“Cat. No.”) at the bottom of the forms or instructions.
.08Do not print the Government Printing Office (GPO) symbol at the bottom of the forms or instructions.
.09To enable accurate scanning and processing, enter data on Form 941 and Schedule B (Form 941) as follows:
•Show name and EIN on all pages and attachments.
•Use 12-point (minimum 10-point) Courier font (if possible).
•Omit dollar signs, but use commas when showing amounts.
•Except for lines 1, 2, and 10, leave blank any data field with a value of zero.
•Enter negative amounts with a minus sign. For example, report “-10.59” instead of “(10.59).”
Note.The IRS prefers that you use a minus sign for negative amounts instead of parentheses or some other means. However, if
your software only allows for parentheses in reporting negative amounts, you may use them.
Section 5 – OMB Requirements for Substitute Forms
.01The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires the following.
•The Office of Management and Budget (OMB) approves all IRS tax forms that are subject to the Act.
•Each IRS form contains the OMB approval number, if assigned.(The official OMB numbers may be found on the official IRS
forms and are also shown on the forms in the exhibits.)
•Each IRS form (or its instructions) states:
(1) Why the IRS needs the information,
(2) How it will be used, and
(3) Whether or not the information is required to be furnished to the IRS.
.02This information must be provided to every user ofofficial or substitute IRS forms or instructions.
.03The OMB requirements for substitute IRS forms are the following.
•Any substitute form or substitute statement to a recipient must show the OMB number as it appears on the official IRS form.
•For Form 941 and Schedule B (Form 941), the OMB number (1545-0029) must appear exactly as shown on the official IRS form.
July 14, 2008852008–28 I.R.B.

•For Form 941 and Schedule B (Form 941), the OMB number must use one of the following formats.
(1) OMB No. 1545-0029 (preferred) or
(2) OMB # 1545-0029 (acceptable).
.04If no instructions are provided to users of your forms, you must furnish to them the exact text of the Privacy Act and Paperwork
Reduction Act Notice.
Section 6 – Reproducible Copies of Forms
.01You can order official IRS forms and information copies of federal tax materials at local IRS offices or by calling the IRS
National Distribution Center at 1-800-829-3676. Otherways to get federal tax material include the following.
•TheIRSwebsiteatwww.irs.gov.
•The IRS’ CD (Publication 1796).
.02The IRS also offers an alternative to downloading electronic files and provides current and prior year access to tax forms and
instructions through its Federal Tax Forms CD. Order Publication 1796, IRS Federal Tax Products CD, by using the IRS website at
w
ww.irs.gov/cdordersor by calling 1-877-CDFORMS (1-877-233-6767).
Section 7 – Effect on Other Documents
.01Revenue Procedure 2007-42, 2007-27 I.R.B. 15 (reproduced as Publication 4436, Rev. 7-2007) is superseded.
Section 8 – Exhibits
.01Please follow the specifications indicatedin the following exhibits to produce substitute Form 941 and Schedule B (Form 941).
.02These forms are subject to review and possible change as required. Therefore, employers are cautioned against overstocking
supplies of privately-printed substitutes.
.03Donotsubmit substitute Form 941 and Schedule B (Form 941) to the IRS for approval. Substitute Form 941 and Schedule B
(Form 941) thatcompletely conformto the specifications contained in this revenue procedure may be privately printed without prior
approval from the IRS.
2008–28 I.R.B.86July 14, 2008

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2008–28 I.R.B.88July 14, 2008

July 14, 2008892008–28 I.R.B.

2008–28 I.R.B.90July 14, 2008

July 14, 2008912008–28 I.R.B.

2008–28 I.R.B.92July 14, 2008

Note.This revenue procedure will be reproduced as the next revision of IRS Publication 1141, General Rules and Specifications for
Substitute Forms W-2 and W-3.
26 CFR 601.602: Tax forms and instructions.
(Also Part I, Sections 6041, 6051, 6071, 6081, 6091; 1.6041–1, 1.6041–2, 31.6051–1, 31.6051–2, 31.6071(a)–1, 31.6081(a)–1, 31.6091–1.)
Rev. Proc. 2008–33
TABLE OF CONTENTS
Part A. General
SECTION 1. PURPOSE............................................................................................. 93
SECTION 2. WHAT’S NEW.......................................................................................... 94
SECTION 3. GENERAL RULES FOR PAPER FORMS W-2 AND W-3..................................................... 95
SECTI
ON 4. GENERAL RULES FOR FILING FORMS W-2 (COPY A) ELECTRONICALLY
..............
................... 96
Part B. Specifications for Substitute Forms W-2 and W-3
SECTION 1A. SPECIFICATIONS FOR RED-INKSUBSTITUTE FORM W-2 (COPY A) AND FORM W-3
FILED WITH THE SSA
.................................................................................. 96
SECTION 1B. SPECIFICATIONS FOR LASER-PRINTED SUBSTITUTE FORM W-2 (COPY A) AND FORM
W-3 FILED WITH THE SSA
.............................................................................. 98
SECTION 2. REQUIREMENTS FOR SUBSTITUTE FORMS FURNISHED TO EMPLOYEES (COPIES B, C,
AND 2 OF FORM W-2)
................................................................................. 100
Part C. Additional Instructions
SECTION 1. ADDITIONAL INSTRUCTIONS FOR FORM PRINTERS................................................... 102
SECTION 2. INSTRUCTIONS FOR EMPLOYERS..................................................................... 102
SECTION 3. OMB REQUIREMENTS FOR BOTH RED-INK AND LASER-PRINTED SUBSTITUTE
FORMS
............................................................................................... 103
SECTION 4. REPRODUCIBLE COPIES OF FORMS................................................................... 103
SECTION 5. EFFECT ON OTHER DOCUMENTS..................................................................... 104
Part A. General
Section 1. Purpose
.01The purpose of this revenue procedure is to state the requirements of the Internal Revenue Service (IRS) and the Social Security
Administration (SSA) regarding the preparation and use of substitute forms for Form W-2, Wage and Tax Statement, and Form W-3,
Transmittal of Wage and Tax Statements, for wages paid during the 2008 calendar year.
.02For purposes of this revenue procedure, substitute Form W-2 (Copy A) and substitute Form W-3 are forms that are not printed
by the IRS. Copy A or any other copies of a substitute Form W-2or a substitute Form W-3 must conform to the specifications in
this revenue procedure to be acceptable to the IRS and the SSA. No IRS office is authorized to allow deviations from this revenue
procedure. Preparers should also refer to the separate 2008 Instructions for Forms W-2 and W-3 for details on how to complete
these forms. See Part C, Section 4, for information on obtaining the official IRS forms and instructions. See Part B, Section 2, for
requirements for the copies of substitute forms furnished to employees.
.03For purposes of this revenue procedure, the official, IRS-printed red dropout ink Forms W-2 (Copy A) and W-3 and their exact
substitutes are referred to as “red-ink.” TheSSA-approved, laser-printed, black-and-white Forms W-2 (Copy A) and W-3 are referred
to as “laser-printed.”
Any questions about the red-ink Form W-2 (Copy A) and Form W-3 and the substitute employee statements should be emailed to
S
ubstituteforms@irs.gov. Please enter “Substitute Forms” on thesubject line. Or send your questions to:
July 14, 2008932008–28 I.R.B.

Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP, IR 6526
1111 Constitution Ave., NW
Washington DC 20224
Any questions about the black-and-white laser-printed Form W-2 (Copy A) and Form W-3 should be emailed to
l
aser.forms@ssa.govor sent to:
Social Security Administration
Data Operations Center
Attn: Laser Forms Approval, Room 235
1150 E. Mountain Drive
Wilkes-Barre PA 18702-7997
Also, see Sections 3.05 and 3.06 of Part A.
Note.You should receive a response within 30 days from either the IRS or the SSA.
.04The IRS received questions concerning whether substitute employee statements containing logos, slogans, or advertising were
valid employee statements. The IRS originally anticipated responding to these questions by revising the regulations. However, it has
been determined that it is not necessary to amend the regulations. Instead, guidance is being provided in this revenue procedure.
In Rev. Proc. 2007-43, 2007-27 I.R.B. 26 (reprinted as Publication 1141, revised 7-2007), and Rev. Proc. 2006-55, 2006-2 C.B.
1151 (reprinted as Publication 1141, revised 12-2006), the IRS solicited comments on the inclusion of logos, slogans, or advertising
on substitute employee statements. The IRS did not receive any comments in response to these solicitations.
Some Forms W-2 that include logos, slogans, and advertisements (including advertisements for tax preparation software) may be
confused with questionable Forms W-2. An employee may not recognize the importance of the employee statement for tax reporting
purposes due to the use of logos, slogans, and advertisements.Thus, with the exception of the electronic tax logo (i.e., the IRS
e-file logo), the IRS has determined thatslogans, advertising, and other logos will not be allowed on Forms W-3, Copy A of
Forms W-2, or any employee statements reporting wages paid during the 2010 calendar year, and thereafter.The IRS e-file
logo on the IRS official employee copies may be included, but it is not required, on any of the substitute form copies.
As indicated in Section 3.07 of Part A, Forms W-2 and W-3 are subject to annual review and possible change. The prohibition
against including slogans, advertising, and other logos on information returns and employee statements reporting wages paid during
the2010calendar year and thereafter is being announced at this time to provide advance notice. This revenue procedure will be revised
to state other requirements of the IRS and the SSA regarding the preparation and use of substitute forms for Form W-2 and Form W-3
for wages paid during the 2010 calendar year, at a future date. If you have comments about the prohibition against including slogans,
advertising, and other logos on information returns and employee statements, send your comments to: Internal Revenue Service, Attn:
Substitute Forms Program, SE:W:CAR:MP:T:T:SP, IR 6526, 1111 Constitution Ave., NW, Washington, DC 20224.
.05The IRS maintains a centralized call site at its Enterprise Computing Center — Martinsburg (ECC)to answer questions related
to information returns (Forms W-2, W-3, 1099 series, 1096, etc.). You can reach the call site at 304-263-8700 (not a toll-free number)
or 1-866-455-7438 (toll-free). The Telecommunication Device for the Deaf (TDD) number is 304-267-3367 (not a toll-free number).
The hours of operation are Monday through Friday from 8:30 a.m. to 4:30 p.m. Eastern time. IRS/ECC does not process Forms
W-2 (Copy A). Forms W-2 (Copy A) prepared on paper and/or electronically must be filed with the SSA. IRS/ECC does, however,
process waiver requests (Form 8508, Requestfor Waiver From Filing Information Returns Electronically) and extension of time to
file requests (Form 8809, Application for Extension of Time To File Information Returns) for Forms W-2 (Copy A) and requests for
an extension of time to furnish the employee copies of Form W-2. See Publication 1220, Specifications for Filing Forms 1098, 1099,
5498, and W-2G Electronically, for information on waivers and extensions of time.
.06The following form instructions and publications provide more detailed filing procedures for certain information returns:
•2008 Instructions for Forms W-2 and W-3,
•Instructions for Forms W-2c and W-3c (Rev. January 2006), and
•Publication 1223, General Rules and Specifications for Substitute Forms W-2c and W-3c.
Section 2. What’s New
.01 New email address.The Substitute Forms Unit email address has changed toSubstituteforms@irs.govinstead of
*
taxforms@irs.gov.
.02 Address change.The room number in the address of the Substitute Forms Unit has changed to Room 6526.
2008–28 I.R.B.94July 14, 2008

.03 Logos, slogans, and advertising.The IRS received questions concerning whether substitute employee statements containing
logos, slogans, or advertising were valid employee statements. TheIRS originally anticipated responding to these questions by re-
vising the regulations. However, it has beendetermined that it is not necessary to amend the regulations. Instead, guidance is being
provided in this revenue procedure. See Section 1.04 of Part A.
.04 Editorial changes.We made editorial changes. Redundancies were eliminated as much as possible.
Section 3. General Rules for Paper Forms W-2 and W-3
.01Employers not filing electronically must file paper FormsW-2(CopyA)alongwithFormW-3withtheSSAbyusingeither
the official IRS form or a substitute form that exactly meets thespecifications shown in Parts B and C of this revenue procedure.
Note.Substitute territorial forms (W-2AS, W-2GU, W-2VI) should alsoconform to the specifications asoutlined in this revenue proce-
dure. These forms require the form designation (“W-2AS,” “W-2GU,” “W-2VI”) on Copy A to be in black ink. If you are an employer
in the Commonwealth of the Northern Mariana Islands, you must contact the Division of Revenue and Taxation, Capitol Hill, Saipan,
MP, 96959, to get Form W-2CM and instructions for completing and filing the form. For information on Forms 499R-2/W-2PR, use
this email address:h
ttp//www.hacienda.gobierno.pr.
Employers who file with the SSA electronically or on paper may design their own statements tofurnish to employees. These
employee statements designed by employers must comply with the requirements shown in Parts B and C.
.02Red-ink substitute forms that completely conform to the specifications contained in this revenue procedure may be privately
printed without prior approval from the IRS or the SSA. Only the black-and-white laser-printed forms need to be submitted to the
SSAforapproval(seeSection1BofPartB).
.03As in the past, Form W-2 (Copy A) and Form W-3 may be generated using a laser-printer by following all guidelines and
specifications (also see Section 1B of Part B). In general, regardless of the method of entering data, using black ink on Forms W-2
and W-3 provides better readability for processing by scanning equipment. Colorsother than black are not easily read by the scanner
and may result in delays or errors in the processing of Forms W-2 (Copy A) and W-3. The printing of the data should be centered
within the boxes. The size of the variable data must be printed in a font no smaller than 10-point.
Note.With the exception of the identifying number, the year, the form number for Form W-3, and the corner register marks, the
preprinted form layout for the red-ink Forms W-2 (Copy A) and W-3, must be in Flint J-6983 red OCR dropout ink or an exact match.
(See Section 1A.03 of Part B.)
.04Substitute forms filed with the SSA and substitute copies furnished to employees that do not conform to these specifications
are unacceptable. Forms W-2 (Copy A) and W-3 filed with the SSA that do not conform may be returned. In addition, penalties may
be assessed for not complying with the form specifications.
.05Substitute red-ink forms should not be submitted to either theIRS or the SSA for specific approval. If you are uncertain of any
specification and want clarification, do the following.
(1)Submit a letter or email citing the specification to the appropriate address in Section 3.06 of Part A.
(2)State your understanding of the specification.
(3)Enclose an example (if appropriate) of how the form would appear if produced using your understanding.
(4)Be sure to include your name, complete address, phone number, and if applicable, your email address with your correspon-
dence.
.06Any questions about the specifications, especially those for the red-ink Form W-2 (Copy A) and Form W-3, should be emailed
toS
ubstituteforms@irs.gov. Please enter “Substitute Forms” on the subject line. Or send your questions to:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP, IR 6526
1111 Constitution Ave., NW
Washington DC 20224
Any questions about the black-and-white laser-printed Form W-2 (Copy A) and Form W-3 should be emailed to
l
aser.forms@ssa.govor sent to:
July 14, 2008952008–28 I.R.B.

Social Security Administration
Data Operations Center
Attn: Laser Forms Approval, Room 235
1150 E. Mountain Drive
Wilkes-Barre PA 18702-7997
Note.You should receive a response within 30 days from either the IRS or the SSA.
.07Forms W-2 and W-3 are subject to annual review and possible change. Therefore, employers arecautioned against overstocking
supplies of privately-printed substitutes.
.08Separate instructions for Forms W-2 and W-3 are provided inthe 2008 Instructions for Forms W-2 and W-3. Form W-3 should
be used only to transmit paper Forms W-2 (Copy A). Form W-3 is a single sheet including only essential filing information. Be sure
to make a copy of your completed Form W-3 for your records. Copies of the current year official IRS Forms W-2 and W-3, and the
instructions for those forms, may be obtained from most IRS offices or by calling 1-800-829-3676. The IRS provides only cutsheet
sets of Forms W-2 and cutsheets of Form W-3. The instructions and information copies of the forms may also be found on the IRS
website atw
ww.irs.gov.
.09Because substitute Forms W-2 (Copy A) and W-3 are machine-imaged and scanned by the SSA, the forms must meet the same
specifications as the official IRS Forms W-2 and W-3 (as shown in the exhibits).
Section 4. General Rules for Filing Forms W-2 (Copy A) Electronically
.01Employers must file Forms W-2 (Copy A) with the SSA electronically if they file 250 or more calendar year 2008 Forms W-2
(Copy A) during a calendar year unless the IRS granted a waiver.For details, get the 2008 Instructions for Forms W-2 and W-3.
The SSA publication EFW2, Specifications for Filing Forms W-2 Electronically, contains specifications and procedures for electronic
filing of Form W-2 information with the SSA. Employers are cautioned to obtain the most recent revision of EFW2 (and supplements)
due to any subsequent changes in specifications and procedures.
.02You may obtain a copy of the EFW2 by:
•Accessing the SSA website at:
w
ww.socialsecurity.gov/employer/pub.htm,
•Writing to:
Social Security Administration
OCO, DES; Attn: Employer Reporting Services Center
300 North Greene Street
Baltimore MD 21290-0300
•Calling your local SSA Employer Services Liaison Officer (ESLO) (the ESLOs’ phone numbers are available at:
w
ww.socialsecurity.gov/employer/empcontacts.htm), or
•Calling the SSA’s Employer Reporting Services staff toll-free at 1-800-772-6270.
.03Electronic filers do not file a paper Form W-3. See the SSA publication EFW2 for guidance on transmitting Form W-2 (Copy A)
information to SSA electronically.
.04Employers with fewer than 250 Forms W-2 are encouraged to electronically file Forms W-2 (Copy A) with the SSA. Doing so
will enhance the timeliness and accuracy of forms processing.
.05Employers who do not comply with the electronic filing requirements for Form W-2 (Copy A) and who are not granted a waiver
by the IRS may be subject to penalties. Employers who file Form W-2 information with the SSA electronically must not send the
same data to the SSA on paper Forms W-2 (Copy A). Any duplicate reporting may subject filers to unnecessary contacts by the SSA
or the IRS.
Part B. Specifications for Substitute Forms W-2 and W-3
Section 1A. Specifications for Red-Ink Substitute Form W-2 (Copy A) and Form W-3 Filed
with the SSA
.01The official IRS-printed red dropout ink Form W-2 (Copy A) and W-3 and their exact substitutes are referred to as red-ink in
this revenue procedure. Employers may file substitute Forms W-2 (Copy A) and W-3 with the SSA. The substitute forms must be
exact replicas of the official IRS forms with respect to layoutand content because they will be read by scanner equipment.
2008–28 I.R.B.96July 14, 2008

.02Paper used for cutsheets and continuous-pinfed forms for substitute Form W-2 (Copy A) and Form W-3 that are to be filed with
the SSA must be white 100% bleached chemical wood, 18-20 pound paper only, optical characterrecognition (OCR) bond produced
in accordance with the following specifications:
•Acidity:Phvalue,average,notlessthan..................................................
4.5
•
Basisweight:17x22inch500cutsheets,pound..........................................
18-20
•Metric equivalent—gm./sq. meter
(atoleranceof+5pct.isallowed) .......................................................68-75
•Stiffness: Average, each direction, not less than—milligrams
Crossdirection........................................................................
50
Machinedirection .....................................................................80
•Tearing strength: Average, eachdirection, not less than—grams.............................40
•Opacity:Average,notlessthan—percent.................................................82
•Reflectivity:Average,notlessthan—percent .............................................68
•Thickness:Average—inch..............................................................0.0038
Metricequivalent—mm................................................................0.097
(a tolerance of +0.0005 inch (0.0127 mm) is allowed) Paper cannot vary more than 0.0004
inch (0.0102 mm) from one edge to the other.
•Porosity:Average,notlessthan—seconds................................................10
•Finish (smoothness): Average, each side—seconds........................................
20-55
(forinformationonly)theSheffieldequivalent—units......................................170-d200
•Dirt: Average, each side, notto exceed—parts per million..................................8
Note.Reclaimed fiber in any percentage is permitted, provided the requirements of this standard are met.
.03All printing of substitute Forms W-2 (Copy A) and W-3 must be in Flint red OCR dropout ink except as specified below. The
following must be printed in nonreflective black ink:
•Identifying number “22222” or “33333” at the top of the forms.
•Tax year at the bottom of the forms.
•The four (4) corner register marks on the forms.
•The form identification number (“W-3”) at the bottom of Form W-3.
•All the instructions below Form W-3 beginning with “Send this entire page....” line to the bottom of Form W-3.
.04The vertical and horizontal spacing for all federal payment and data boxes on Forms W-2 and W-3 must meet specifications.
On Form W-3 and Form W-2 (Copy A), all the perimeter rules must be 1-point (0.014-inch), while all other rules must be one-half
point (0.007-inch). Vertical rules must be parallel to the left edge of the form; horizontal rules parallel to the top edge.
.05The official red-ink Form W-3 and Form W-2 (Copy A) are 7.5inches wide. Employers filing Forms W-2 (Copy A) with the
SSA on paper must also file a Form W-3. Form W-3 must be the same width (7.5 inches) as the Form W-2. One Form W-3 is printed
on a standard-size, 8.5 x 11-inch page. Two official Forms W-2 (Copy A) are contained on a single 8.5 x 11-inch page (exclusive of
any snap-stubs).
.06The top, left, and right margins for the Form W-2 (Copy A) and Form W-3 are .5 inches (
1
/2inch). All margins must be free of
printing except for the words “DO NOT STAPLE” on red-ink Form W-3. The space between the two Forms W-2 (Copy A) is 1.33
inches.
.07The identifying numbers are “22222” for Form W-2 (Copies A (and 1)) and “33333” for Form W-3. No printing should appear
anywhere near the identifying numbers.
Note.The identifying number must be printed in nonreflective black ink in OCR-A font of 10 characters per inch.
July 14, 2008972008–28 I.R.B.

.08The depth of the individual scannable image on a page must be the same as that on the official IRS forms. The depth from the
top line to the bottom line of an individual Form W-2 (Copy A) must be 4.17 inches and the depth from the top line to the bottom line
of Form W-3 must be 4.67 inches. (See Exhibits A and B.)
.09Continuous-pinfed Forms W-2 (Copy A) must be separated into 11-inch deep pages. The pinfed strips must be removed when
Forms W-2 (Copy A) are filed with the SSA. The two Forms W-2 (CopyA) on the 11-inch page must not be separated (only the pages
are to be separated (burst)). The words “Do Not Cut, Fold, or Staple Forms on This Page” must be printed twice between the two
Forms W-2 (Copy A) in Flint red OCR dropout ink. Perforations are required on all other copies (Copies 1, B, C, 2, and D) to enable
the separation of individual forms.
.10Box 12 of Form W-2 (Copy A) contains four entry boxes – 12a, 12b, 12c, and 12d. Do not make more than one entry per box.
Enter your first code in box 12a (for example, enter Code D in box 12a, not 12d, if it is your first entry). If more than four items need
to be reported in box 12, use a second Form W-2 to report the additional items (see “Multiple forms” in the 2008 Instructions for
Forms W-2 and W-3). Do not report the same federal tax data to the SSA on more than one Form W-2 (Copy A). However, repeat
the identifying information (employee’s name, address, and SSN; employer’s name, address, and EIN) on each additional form.
.11The checkboxes in box 13 of Form W-2 (Copy A) must be .14 inches each; the space before the first checkbox is .20 inches;
the spacing on each remaining side of the 3 checkboxes is .36 inches (see Exhibit A). The checkboxes in box b of Form W-3 must
also be .14 inches (see Exhibit B for other dimensions in box b).
Note.More than 50% of an applicable checkboxmustbecoveredbyan“X.”
.12All substitute Forms W-2 (Copy A) and W-3 in the red-ink formatmust have the tax year, form number, and form title printed
on the bottom face of each form using type identical to that of the official IRS form. The red-ink substitute Form W-2 (Copy A) and
Form W-3 must have the form producer’s EIN entered directly to the left of “Department of the Treasury,” in red.
.13The words “For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D.” must be printed in Flint red OCR
dropout ink in the same location as on the official Form W-2 (Copy A). The words “For Privacy Act and Paperwork Reduction Act
Notice, see back of Copy D of Form W-2.” must be printed at the bottom of the page of Form W-3 in black ink.
.14The Office of Management and Budget (OMB) Number must be printed on substitute Forms W-3 and W-2 (on each ply) in the
same location as on the official IRS forms.
.15All substitute Forms W-3 must include the instructions that are printed on the same sheet below the official IRS form.
.16The back of substitute Form W-2 (Copy A) and Form W-3 must be free of all printing.
.17All copies must be clearly legible. Fadingmust be minimized to assure legibility.
.18Chemical transfer paper is permitted for Form W-2 (Copy A) only if the following standards are met:
•Only chemically-backed paper is acceptab
le for Form W-2 (Copy A). Front and back chemically-treated paper cannot be processed
properly by scanning equipment.
•Chemically-transferred images must be black.
•Carbon-coated forms are not permitted.
.19The Government Printing Office (GPO) symbol and the CatalogNumber (Cat. No.) must be deleted from substitute Form W-2
(Copy A) and Form W-3.
Section 1B. Specifications for Laser-Printed Substitute Form W-2 (Copy A) and Form W-3
Filed with the SSA
.01The SSA-approved, laser-printed, black-and-white Forms W-2(Copy A) and W-3 are referred toas laser-printed. Specifica-
tions for the laser-printed (black-and-white) Forms W-2 (Copy A) and W-3 are similar to the red-ink forms (Part B, Section 1A) except
for the items that follow (see Exhibits E and F). Exhibits are samples only and must not be downloaded to meet tax obligations.
(1) Forms must be printed on 8.5 x 11-inch single-sheet paper only, not on continuous-feed using a laser printer. There must be
two Forms W-2 (Copy A) printed on a page. There must be no horizontal perforations between the two Forms W-2 (Copy A) on each
page.
(2) All forms and data must be printed in nonreflective black ink only.
(3) The data and forms must be programmed to print simultaneously. Forms cannot be produced separately from wage data entries.
(4) The forms must not contain corner register marks.
(5) The forms must not contain any shaded areas including those boxes that are entirely shaded on the red-ink forms.
2008–28 I.R.B.98July 14, 2008

(6) Identifying numbers on both Form W-2 (“22222”) and Form W-3 (“33333”) must be preprinted in 14-point Arial bold font or
a close approximation.
(7) The form numbers (“W-2” and “W-3”) must be in 18-point Arial font or a close approximation. The tax year (“2008”) on
Forms W-2 (Copy A) and W-3 must be in 20-point Arial font or a close approximation.
(8) No part of the box titles or the data printed on the forms may touch any of the vertical or horizontal lines, nor should any of
the data intermingle with the box titles. The data should be centered in the boxes.
(9) Do not print any information in the margins of the laser-printed forms (for example, do not print “DO NOT STAPLE” in the
top margin of Form W-3).
(10) The word “Code” must not appear in box 12 on Form W-2 (Copy A).
(11) A 4-digit vendor code preceded by four zeros and a slash (for example, 0000/1234) must appear in 12-point Arial font, or
a close approximation, under the tax year in place of the Cat. No. on Form W-2 (Copy A) and in the bottom right corner of the
“For Official Use Only” box at the bottom of Form W-3. Do not display the form producer’s EIN to the left of “Department of the
Treasury.” The vendor code will be used to identify the form producer.
(12) Do not print Catalog Numbers (Cat. No.) on either Form W-2 (Copy A) or Form W-3.
(13) Do not print the checkboxes in:
•Box (b) of Form W-3. The “X” should be programmed to be printedand centered directly below theapplicable “Kind of Payer.”
•The “Void” box of Form W-2 (Copy A). The “X” should be programmed to be printed to the right of “Void” because of space
limitations.
•Box13ofFormW-2(CopyA).The“X”shouldbeprogrammedtobeprinted and centered directly below the applicable box title.
(14) Do not print dollar signs. If there are no money amounts being reported, the entire field should be left blank.
(15) The space between the two Forms W-2 (Copy A) is 1.33 inches.
.02You must submit samples of your laser-printed substitute forms to the SSA. Only laser-printed, black-and-white substitute
Forms W-2 (Copy A) and W-3 for tax year 2008 will be accepted for approval by the SSA. Questions regarding other forms (that is,
red-ink Forms W-2c, W-3c, 1099 series, 1096, etc.) must be directed to the IRS.
.03You will be required to send one set of blank and one set of dummy-data, laser-printed substitute Forms W-2 (Copy A) and
W-3 for approval. Sample data entries should be filled in to the maximum length for each box entry, preferably using numeric data
or alpha data, depending upon the type required to be entered. Include in your submission the name, telephone number, fax number,
and email address of a contact person who can answer questions regarding your sample forms.
.04To receive approval, you may first contact the SSA atl
aser.forms@ssa.govto obtain a template and further instructions in PDF
or Excel format. You may also send your 2008 sample, laser-printed substitute forms to:
Social Security Administration
Data Operations Center
Attn: Laser Forms Approval, Room 235
1150 E. Mountain Drive
Wilkes-Barre PA 18702-7997
Send your sample forms via private mail carrier or certified mail in order to verify their receipt. You can expect approval (or
disapproval) by the SSA within 30 days of receipt of your sample forms.
.05The 4-digit vendor code preceded by four zeros and a slash (0000/) must be preprinted on the sample, laser-printed substitute
forms. Forms not containing a vendor code will be rejected and will not be submitted for testing or approval. If you do not have a
vendor code, you may contact the National Association of Computerized Tax Processors via email atp
resident@nactp.orgfor infor-
mation on these codes.
.06 If you use forms produced by a vendor and have questions concerning approval,do not send the forms to the SSA for
approval. Instead, you may contact the software vendor to obtain acopy of SSA’s dated approval notice supplied to that vendor.
July 14, 2008992008–28 I.R.B.

Section 2. Requirements for Substitute Forms Furnished to Employees (Copies B, C, and
2ofFormW-2)
Note.Printers are cautioned that therules in Part B, Sect
ion 2 (this section), apply only to employee copies of Form W-2 (Copies
B, C, and 2).Paper filers who send Forms W-2 (Copy A) to the S
SA must follow the requirements in Part B, Sections 1A and/or 1B
above.
.01All employers (including those who file electronical
ly) must furnish employees with at least two copies of Form W-2 (three or
more for employees required to file a state, city, or local
income tax return). The following rulesare guidelines for preparing employee
copies.
The dimensions of these copies (Copies B, C, and 2), but no
t Copy A, may differ from the dimensions of the official IRS form to
allow space for reporting additional information, inc
luding additional entries such as withholding for health insurance, union dues,
bonds, or charity in box 14. The limitation of a maximum o
f four items in box 12 of Form W-2 applies only to Copy A, which is filed
with the SSA.
Note.Payee statements (Copies B, C, and 2 of Form W-2) may be furnished electronically if employees give their consent (as de-
scribed in Treasury Regulations Section 31.6051–1(j)). Seealso Publication 15-A, Employer’s Supplemental Tax Guide.
.02The minimum dimensions for employee copies only (not Copy A) of Form W-2 should be 2.67 inches deep by 4.25 inches
wide. The maximum dimensions should be no more than 6.5 inches deep by no more than 8.5 inches wide.
Note.The maximum and minimum size specifications are for tax year 2008 only and may change in future years.
.03Either horizontal or vertical format is permitted (see Exhibit D).
.04The paper for all copies must be white and printed in black ink. The substitute Copy B, which employees are instructed to
attach to their federal income tax returns, should be at least 9-pound paper (basis 17 x 22-500). Other copies furnished to employees
should also be at least 9-pound paper (basis 17 x 22-500) unless a state, city, or local government provides other specifications.
.05Employee copies of Form W-2 (Copies B, C, and 2), including those that are printed on a single sheet of paper, must be easily
separated. Providing perforations between the individual copies satisfies this requirement, but using scissors to separate Copies B, C,
and 2 does not.
Note.The perforation requirement in this section does not apply to printouts of copies of Forms W-2 that are furnished electronically to
employees (as described in Treasury Regulations Section 31.6051–1(j)). However, these employeesshould be cautioned to carefully
separate the copies of Form W-2. See Publication 15-A, Employer’s Supplemental Tax Guide, for information on electronically
furnishing Forms W-2 to employees.
.06Interleaved carbon and chemical transfer paper employee copies must be clearly legible. Fading must be minimized to assure
legibility.
.07The electronic tax logo on the IRS official employee copies is not required on any of the substitute form copies. To avoid
confusion and questions by employees, employers are encouraged to delete the identifying number (“22222”) from the employee
copies of Form W-2.
.08All substitute employee copies must contain boxes, box numbers, and box titles that match the official IRS Form W-2. Boxes
that do not apply can be deleted. However, certain core boxes must be included. The placement, numbering, and size of this informa-
tion is specified as follows:
•The items and box numbers that constitute the core data are:
Box 1 — Wages, tips, other compensation,
Box 2 — Federal income tax withheld,
Box 3 — Social security wages,
Box 4 — Social security tax withheld,
Box 5 — Medicare wages and tips, and
Box 6 — Medicare tax withheld.
The core boxes must be printed in the exact order shown on the official IRS form.
2008–28 I.R.B.100July 14, 2008

•The core data boxes (1 through 6) must be placed in the upper right of the form. Substitute vertical-format copies may have the
core data across the top of the form (see Exhibit D). In no instance, will boxes or other informationbepermittedtotherightof
thecoredata.
•The form title, number, or copy designation (B, C, or 2) may be at the top of the form. Also, a reversed or blocked-out area to
accommodate a postal permit number or other postalconsiderations is allowed in the upper-right.
•Boxes 1 through 6 must each be a minimum of 1
1
/8inches wide x
1
/4inch deep.
•Other required boxes are:
a) Employee’s social security number,
b) Employer identification number (EIN),
c) Employer’s name, address, and ZIP code,
e) Employee’s name, and
f) Employee’s address and ZIP code.
Identifying items must be present on the form and be in boxes similar to those on the official IRS form. However, they may be
placed in any location other than the top or upper right. You do not need to use the lettering system (a-c, e-f) used on the official IRS
form. The employer identification number (EIN) may be included with the employer’s name and address and not in a separate box.
Note.Box d (“Control number”) is not required.
.09All copies of Form W-2 furnished to employees must clearly showthe form number, the form title, and the tax year prominently
displayed together in one area of the form. The title of Form W-2 is“Wage and Tax Statement.” It is recommended (but not required)
that this be located on the bottom left of substitute Forms W-2. Thereference to the “Department of the Treasury — Internal Revenue
Service” must be on all copies of substitute Forms W-2 furnishedto employees. It is recommended (but not required) that this be
located on the bottom right of Form W-2.
.10If the substitute employee copies are labeled, the forms must contain the applicable description:
•“Copy B, To Be Filed With Employee’s FEDERAL Tax Return.”
•“Copy C, For EMPLOYEE’S RECORDS.”
•“Copy 2, To Be Filed With Employee’s State, City, or Local Income Tax Return.”
It is recommended (but not required) that these be located on the lower left of Fo
rm W-2. If the substitute employee copies are not
labeled as to the disposition of the copies, then written notification using s
imilar wording must be provided to each employee.
.11The tax year (2008) must be clearly printed on all copies of substitute Form W
-2. It is recommended (but not required) that
this information be in the middle at the bottom of the Form W-2. The use of 24-pt.
OCR-A font is recommended (but not required).
.12Boxes 1, 2, and 9 (if applicable) on Copy B must be outlined in bold 2-point rul
e or highlighted in some manner to distinguish
them. If “Allocated tips” are being reported, it is recommended (but not requi
red) that box 8 also be outlined. If reported, “Social
security tips” (box 7) must be shown separately from “Social security wages”
(box 3).
Note.Boxes 8 and 9 may be omitted if not applicable.
.13If employers are required to withhold and report state or local income tax, the applicable boxes are also considered core infor-
mation and must be placed at the bottom of the form. State information is included in:
•Box 15 (State, Employer’s state ID number)
•Box 16 (State wages, tips, etc.)
•Box17(Stateincometax)
Local information is included in:
•Box 18 (Local wages, tips, etc.)
•Box 19 (Local income tax)
•Box 20 (Locality name)
July 14, 20081012008–28 I.R.B.

.14Boxes 7 through 14 may be omitted from substitute employee copies unless the employer must report any of that information to
the employee. For example, if an employee did not have “Social security tips” (box 7), the form could be printed without that box. But
if an employer provided dependent care benefits, the amount must be reported separately, shown in box 10, and labeled “Dependent
care benefits.”
.15Employers may enter more than four codes in box 12 of substitute Copies B, C, and 2 (and 1 and D) of Form W-2, but each
entry must use Codes A-BB (see the 2008 Instructions for Forms W-2 and W-3).
.16If an employer has employees in any of the three categories in box 13, all checkbox headings must be shown and the proper
checkmark made, when applicable.
.17Employers may use box 14 for any other information that they wish to give to their employees. Each item must be labeled.
(See the instructions for box 14 in the 2008 Instructions for Forms W-2 and W-3.)
.18The front of Copy C of a substitute Form W-2 must contain the note “This information is being furnished to the Internal Revenue
Service. If you are required to file a tax return, a negligence penalty or other sanction may be imposed on you if this income is taxable
and you fail to report it.”
.19Instructions similar to those contained on the back of Copies B, C, and 2 of the official IRS Form W-2 must be provided to
each employee. An employer may modify or delete instructions thatdo not apply to its employees. (For example, remove Railroad
Retirement Tier 1 and Tier 2 compensation information for nonrailroad employees orinformation about dependent care benefits that
the employer does not provide.)
.20Employers must notify their employees who have no income tax withheld that theymay be able to claim a tax refund because
of the earned income credit (EIC). They will meet this notification requirement if they furnish a substitute Form W-2 with the EIC
notice on the back of Copy B, IRS Notice 797, Possible FederalTax Refund Due to the Earned Income Credit (EIC), or on their
own statement containing the same wording. They may also change the font on Copies B, C, and 2 so that the EIC notification and
Form W-2 instructions fit differently. For more information about notification requirements, see Notice 1015, Have You Told Your
Employees About the Earned Income Credit (EIC)?
Note.An employer does not have to notify anyemployee who claimed exemption from withholding on Form W-4, Employee’s
Withholding Allowance Certificate, for the calendar year.
Part C. Additional Instructions
Section 1. Additional Instructions for Form Printers
.01If electronic media is not used for filing with the SSA, the substitute copies of Forms W-2 (either red-ink or laser-printed)
should be assembled in the same order as the official IRS Forms W-2. Copy A should be first, followedsequentiallybyperforated
sets (Copies 1, B, C, 2, and D).
.02The substitute form to be filed by the employer with the SSA must carry the designation “Copy A.”
Note.Electronic filers do not submit either red-ink or laser-printed paper Form W-2 (Copy A) or Form W-3 to the SSA.
.03Substitute forms (red-ink or laser-printed) do not require a copy to be retained by employers (Copy D of Form W-2). However,
employers must be prepared to verify or duplicate the information if it is requested by the IRS or the SSA. Paper filers who do not
keep a Form W-2 (Copy D) should be able to generate a facsimile of Form W-2 (Copy A) in case of loss.
.04Except for copies in the official assembly, no additional copies that may be prepared by employers should be placed ahead of
Form W-2 (Copy C) “For EMPLOYEE’S RECORDS.”
.05You must provide instructions similar to those contained on the back of Copies B,C, and 2 of the official IRS Form W-2 to each
employee. You may print them on the back of the substitute Copies B, C, and 2 or provide them to employees on a separate statement.
You do not need to use the back of Copy 2. If you do not use Copy 2, you may include all the information, which is on the back of
the official Copies B, C, and 2, on the back of your substitute Copies B and C only. As an example, you may use the “Note” on the
back of the official Copy C as the dividing point between the text for your substitute Copies B and C. Do not print these instructions
on the back of Copy 1. Any Forms W-2 (Copy A) and W-3 that are filed with the SSA must have no printing on the reverse side.
Section 2. Instructions for Employers
.01Only originals of Form W-2 (Copy A) and Form W-3 may be filedwith the SSA. Carbon copies and photocopies are unaccept-
able.
.02Employers should type or machine-print data entries on the non-laser-generated forms wheneverpossible. Ensure good quality
by using a high-quality type face, inserting data in the middle of blocks that are well separated from other printing and guidelines, and
taking any other measures that willguarantee clear, sharp images. Black ink must be used with no script type, inverted font, italics or
dual-case alpha characters.
Note.12-point Courier font is preferred by the SSA.
2008–28 I.R.B.102July 14, 2008

.03Form W-2 (Copy A) requires decimal entries for wage data. Dollar signs should not be printed with money amounts on the
Forms W-2 (Copy A) and W-3.
.04The employer must provide a machine-scannable Form W-2 (Copy A). The employer must also provide employee copies
(Copies B, C, and 2) that are legible and able to be photocopied (by the employee). Do not print any data in the top margin of the
payee copies of the forms.
.05Any printing in box d (Control number) on Form W-2 or box a on Form W-3 may not touch any vertical or horizontal lines
and should be centered in the box.
.06The filer’s employer identification number (EIN) must be entered in box b of Form W-2 and box e of Form W-3. The EIN
entered on Form(s) W-2 (box b) and Form W-3 (box e) must be the same as on Forms 941, 943, 944, CT-1, Schedule H (Form 1040),
or any other corresponding forms filed withthe IRS. Be sure to use EIN format (00-0000000) rather than SSN format (000-00-0000).
.07The employer’s name, address, and EIN may be preprinted.
.08If available, employers should use the official IRS-preprinted Form W-3 that they received with Publication 393 or Publication
2184 when filing red-ink Forms W-2 (Copy A) with the SSA.
Section 3. OMB Requirements for Both Red-Ink and Laser-Printed Substitute Forms
.01The Paperwork Reduction Act (the Act) of 1995 (Public Law 104-13) requires the following:
•The Office of Management and Budget (OMB) approves all IRS tax forms that are subject to the Act.
•Each IRS form contains (in or near the upper right corner) the OMB approval number, if assigned. (The official OMB numbers
may be found on the official IRS printed forms and are also shown on the forms in Exhibits A, B, C, E, and F.)
•Each IRS form (or its instructions) states:
(1) Why the IRS needs the information,
(2) How it will be used, and
(3) Whether or not the information is required to be furnished to the IRS.
.02This information must be provided to any users of official or substitute IRS forms or instructions.
.03The OMB requirements for substitute IRS Form W-2 (Copy A) and Form W-3 are the following.
•Any substitute form or substitute statement to a recipient must show the OMB number as it appears on the official IRS form.
•The OMB number (1545-0008) must appear exactly as shown on the official IRS form.
•For any copy of Form W-2 other than Copy A, the OMB number must use one of the following formats:
(1) OMB No. 1545-0008 (preferred) or
(2) OMB # 1545-0008 (acceptable).
.04Any substitute Form W-2 (Copy A only) must state “For Privacy Act and Paperwork Reduction Act Notice, see back of Copy
D.” Any substitute Form W-3 must state “For Privacy Act and Paperwork Reduction Act Notice, see back of Copy D of Form W-2.”
If no instructions are provided to users of your forms, you must furnish them with the exact text of the Privacy Act and Paperwork
Reduction Act Notice.
Section 4. Reproducible Copies of Forms
.01You can obtain official IRS forms and information copies of federal tax materials at local IRS offices or by calling the IRS
Distribution Center at 1-800-829-3676. Other ways to get federal tax material include the following.
•TheIRSwebsiteatwww.irs.gov.
•The IRS’ CD (Publication 1796).
Only contact the IRS, not the SSA, for IRS forms.
Note.Many IRS forms are provided on the IRS website and on the Federal Tax Forms CD. But copies of Form W-2 (Copy A) and
Form W-3 cannot be used for filing with the IRS or SSA when obtained by these methods because the forms do not meet the specific
printing specifications as described in this publication. Copies ofForms W-2 and W-3 obtained from these sources are for information
purposes only.
July 14, 20081032008–28 I.R.B.

.02The IRS also offers an alternative to downloading electronic files and provides current and prior-year access to tax forms and
instructions through its FederalTax Forms CD. The CD will be available for the upcoming filing season. Order Publication 1796, IRS
Federal Tax Products CD, by using the IRS website atw
ww.irs.gov/cdordersor by calling 1-877-CDFORMS (1-877-233-6767).
Section5.EffectonOtherDocuments
.01Revenue Procedure 2007-43, 2007-27 I.R.B. 26, dated July 2, 2007 (reprinted as Publication 1141, Revised 7-2007), is super-
seded.
ListofExhibits
Exhibit A — Form W-2 (Copy A) (Red-Ink)
Exhibit B — Form W-3 (Red-Ink)
Exhibit C — Form W-2 (Copy B)
Exhibit D — Form W-2 (Alternative Employee Copies) (Illustrating Horizontal and Vertical Formats)
Exhibit E — Form W-2 (Copy A) (Laser-Printed)
Exhibit F — Form W-3 (Laser-Printed)
2008–28 I.R.B.104July 14, 2008

July 14, 20081052008–28 I.R.B.

2008–28 I.R.B.106July 14, 2008

July 14, 20081072008–28 I.R.B.

2008–28 I.R.B.108July 14, 2008

July 14, 20081092008–28 I.R.B.

2008–28 I.R.B.110July 14, 2008

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking an
dNoticeof
Public Hearin
g
Guidance Unde
rSections642
and 643 (Inco
me Ordering
Rules)
REG–101258–
08
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Noti
ce of proposed rulemaking
and notice o
f public hearing.
SUMMARY: Thi
s document contains pro-
posed amend
ments providing guidance
under Inter
nal Revenue Code (Code) sec-
tion 642(c)
with regard to the Federal tax
consequenc
es of an ordering provision in
atrust,aw
ill, or a provision of local law
that attem
pts to determine the tax char-
acter of th
e amounts paid to a charitable
beneficia
ry of the trust or estate. The
proposed r
egulations also make conform-
ing amend
ments to the regulations under
section 6
43(a)(5). The proposed regula-
tions aff
ect estates, charitable lead trusts
(CLTs) an
d other trusts making payments
or perman
ently setting aside amounts for
acharit
able purpose. This document also
provide
s notice of a public hearing on
these pr
oposed regulations.
DATES: W
ritten or electronic comments
must be r
eceived by September 16, 2008.
Outline
s of topics to be discussed at the
public h
earing scheduled for October 8,
2008, a
t 10 a.m., must be received by
Septem
ber 18, 2008.
ADDRES
SES: Send submissions to:
CC:PA:
LPD:PR(REG–101258–08),
Room 52
03, Internal Revenue Service,
PO Box 7
604, Ben Franklin Station,
Washi
ngton, DC 20044. Submissions may
be han
d delivered Monday through Friday
betwe
en the hours of 8 a.m. and 4 p.m.
to CC:
PA:LPD:PR (REG–101258–08),
Couri
er’s Desk, Internal Revenue
Servi
ce, 1111 Constitution Avenue, NW,
Wash
ington, DC; or sent electronically
viat
heFederaleRulemaking
Port
al atwww.regulations.gov(IRS
REG–101258–0
8). The public hearing
will be held in
the IRS Auditorium,
Internal Reve
nue Building, 1111
Constitution
Avenue, NW, Washington,
DC.
FOR FURTHER IN
FORMATION
CONTACT: Con
cerning the proposed reg-
ulations, Vi
shal Amin, at (202) 622–3060;
concerning s
ubmissions of comments, the
hearing, and
/or to be placed on the building
access list
to attend the hearing, Richard
Hurst, at (2
02) 622–2949 (TDD tele-
phone) (not
toll-free numbers) or e-mail at
Richard.A.
Hurst@irscounsel.treas.gov.
SUPPLEMENT
ARY INFORMATION:
Background
This docume
nt contains proposed
amendment
sto26CFRpart1undersec-
tion 642 of
the Code. Section 642 was
addedtoth
e Code under the Internal
Revenue Co
de of 1954 (68A Stat. 215).
Section 64
2(c) of the Code provides that
an estate
or trust (other than a trust meet-
ing the sp
ecifications of subpart B) shall
be allowe
d a deduction in computing its
taxable i
ncome any amount of the gross in-
come, wi
thout limitation, which pursuant
to the te
rms of the governing instrument is,
during t
he taxable year, paid for a purpose
specifi
ed in section 170(c) (determined
without
regard to section 170(c)(2)(A)).
The regu
lations under §1.642(c)–3 pro-
vide gui
dance concerning adjustments and
other s
pecial rules for computing the char-
itable
contributions deduction. The reg-
ulatio
ns under §1.643(a)–5 provide guid-
ance co
ncerning rules for computing the
amount
of tax-exempt income included in
distr
ibutable net income. These proposed
regul
ations clarify the existing regulations
under
§§1.642(c)–3(b) and 1.643(a)–5(b).
Secti
on 1.642(c)–3(b)(2) provides that, in
deter
mining whether an amount of income
paid
to a charitable beneficiary includes
part
icular items of income not included in
gros
s income (for example, tax exempt in-
come
), provisions in the governing instru-
ment
will control if they specifically pro-
vide
as to the source out of which amounts
are
to be paid to the charitable beneficiary.
In t
he absence of specific provisions in the
gov
erning instrument or in local law, the
amount of inco
me distributed to each char-
itable benefi
ciary is deemed to consist of
the same propo
rtion of each class of the
items of incom
e of the estate or trust as the
total of each c
lass bears to the total of all
classes.
Section 1.643
(a)–5(b) provides rules
for reducing
the amount of tax-exempt
interest inc
ludable in distributable net in-
come when tax
-exempt interest is deemed
to be include
d in income paid, perma-
nently set a
side,ortobeusedforthe
purposes sp
ecified in section 642(c). As
similarly p
rovided in §1.642(c)–3(b),
§1.643(a)–
5(b) provides “[i]f the govern-
ing instru
ment specifically provides as to
the source
out of which amounts are paid,
permanent
ly set aside, or to be used for
such chari
tablepurposes,thespecificpro-
visions co
ntrol. In the absence of specific
provisio
ns in the governing instrument, an
amount to
which section 642(c) applies is
deemed to
consist of the same proportion
of each cl
ass of the items of income of
the esta
te or trust as the total of each class
bears to
the total of all classes.”
The IRS a
nd the Treasury Department
believe
that the current regulations un-
der §§1.
642(c)–3(b) and 1.643(a)–5(b)
require
that such a specific provision in a
governi
ng instrument or in local law that
identi
fies the source(s) of the amounts to
be paid
, permanently set aside, or used
for a pu
rpose specified in section 642(c)
must ha
ve economic effect independent
of inco
me tax consequences in order for
the sp
ecific provision in the governing
instr
ument or in local law to be respected
for Fe
deral tax purposes. This belief is
based
on the structure and provisions of
Subch
apter J as a whole, as well as on an
anal
ysis of the existing regulations with
thei
r interrelated cross-references. Section
1.64
2(c)–3(b) and §1.643(a)–5(b) refer to
exam
ples in §§1.662(b)–2 and 1.662(c)–4
to il
lustrate the rules of §§1.642(c)–3(b)
and
1.643(a)–5(b). Section 1.662(b)–2
pro
vides that, in determining the char-
act
er of amounts distributed to a ben-
efi
ciary when a charitable contribution
is m
ade, “...the principles contained in
§§1
.652(b)–1 and 1.662(b)–1 generally
ap
ply.” Section 1.652(b)–1 provides that
“[
i]n determining the gross income of a
be
neficiary, the amounts includible un-
July 14, 20081112008–28 I.R.B.

der §1.652(a)–1 have the same character
in the hands of the beneficiary as in the
hands of the trust.” Section 1.652(b)–2(a)
elaborates on the general principle in
§1.652(b)–1 by providing that the amount
distributed to a beneficiary and includi-
ble in gross income under §1.652(a)–1
generally consists of the same proportion
of each class of items included in the
trust’s distributable net income (DNI) as
the total of each such class bears to the
total DNI. These principles are repeated in
§1.662(b)–1. In addition, §1.652(b)–2(b)
defines the exception to this rule by pro-
viding that “[t]he terms of the trust are
considered specifically to allocate differ-
ent classes of income to different benefi-
ciaries only to the extent that the allocation
is required in the trust instrument, and only
to the extent that it has economic effect in-
dependent of the income tax consequences
of the allocation.”
Section 1.681(a)–2(b)(2) provides
guidance on the method of allocating gross
income to unrelated business income that
is not deductible under section 642(c).
This regulation provides that “[u]nless the
facts clearly indicate to the contrary...” the
payment to charity consists of the same
ratio of unrelated business income as the
ratio of unrelated business income to all
of the trust’s taxable income. Examples
given in this regulation confirm that a
specific allocation of income items will be
recognized when suchspecific allocation
has economic effect independent of its tax
consequences, such as when the amount
of the charitable distribution will be de-
pendent upon the amount of the class of
income.
Explanation of Provisions
The IRS and the Treasury Depart-
ment believe that the chain of references
discussed above requires that a specific
provision of the governing instrument or
a provision under local law have eco-
nomic effect independent of income tax
consequences in order to be respected
for Federal income tax purposes and that
this principle applies throughout Sub-
chapter J. To make this concept clearer
and easier to understand, the proposed
regulations amend the regulations under
section 642(c) to add the principle of eco-
nomic effect directly into the language
of the regulation itself, rather than being
incorporated by reference to other reg-
ulation provisions. Thus, the proposed
regulations will amend the regulations
under section 642(c) to confirm that a
provision in a governing instrument or in
local law that specifically provides as to
the source out of which amounts are to
be paid, permanently set aside, or used
for a purpose specified in section 642(c)
must have economic effect independent of
income tax consequences in order to be
respected for Federal tax purposes. If such
provision does not have economic effect
independent of income tax consequences,
income distributed for a purpose specified
in section 642(c) will consist of the same
proportion of each class of the items of in-
come as the total of each class bears to the
total of all classes. See §1.642(c)–3(b)(2).
As an example, CLTs pay an annu-
ity or unitrust amount to a charity for
a determinable period, measured by a
term of years or by reference to the life
of one or more individuals. See section
170(f)(2)(B). At the end of the term, the
remainder passes to one or more non-char-
itable beneficiaries. CLTs may earn var-
ious types of income (such as ordinary
income, capital gains, unrelated business
taxable income and tax-exempt income)
in any given taxable year. Some trust in-
struments attempt to source the payments
to charity so as to maximize the tax ben-
efits to the trust and beneficiaries. For
example, the governing documents might
include a provision directing that the char-
ity’s annuity or unitrust payment be made
first out of ordinary income and capital
gains in order to minimize the trust’s tax
liability. Thus, the trust attempts to retain
the unrelated business taxable income and
tax-exempt income (for which no section
642(c) deduction may be claimed or for
which the deduction is limited by section
681). Such a provision in the governing
instrument does not have economic effect
independent of income tax consequences,
because the amount paid to the charita-
ble beneficiary is not dependent upon the
type of income it is allocated. Rather,
such amount is the same regardless of the
source of the income. An annuity payment
is a fixed amount from year to year, and
a unitrust amount is based upon a prede-
termined percentage of the trust’s value.
Thus, the amount of each type of income
the trust earns is irrelevant to the amount
the charity is entitled to receive.
Accordingly, a provision under local
law or in the governing instrument of a
CLT that provides that the payment to
charity (eligible for a deduction under
section 642(c)) is deemed to consist of
particular classes of income, determined
on a non-pro ratabasis, will not be re-
spected because such a provision does
not have economic effect independent of
income tax consequences. Instead, such
a payment to a charity will consist of
the same proportion of each class of the
items of income of the trust as the total of
each class bears to the total of all classes.
See §1.642(c)–3(b)(2). This proposed
amendment to the regulation serves only
to confirm the economic effect require-
ment of the current regulations.
The proposed regulations also simi-
larly clarify the corresponding language in
§1.643(a)–5(b).
Finally, the proposed regulations re-
move §1.642(c)–3(b)(4) because the pro-
visions of section 116 were repealed by
the Tax Reform Act of 1986 (Public Law
99–514).
Proposed Effective/Applicability Date
The regulations, as proposed, apply to
trusts and estates for taxable years begin-
ning after the date final regulations are
published in theFederal Register.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in Exec-
utive Order 12866. Therefore, a regula-
tory assessment is not required. It has also
been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regu-
lations, and because these regulations do
not impose a collection of information on
small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply.
Therefore, a Regulatory Flexibility Anal-
ysis is not required. Pursuant to section
7805(f) of the Code, this notice of pro-
posed rulemaking will be submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
2008–28 I.R.B.112July 14, 2008

Comments and Public Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any written (a signed origi-
nal and eight (8) copies) or electronic com-
ments that are submitted timely to the IRS.
The IRS and the Treasury Department also
request comments on the clarity of the pro-
posed rules and how they can be made eas-
ier to understand. All comments will be
available for public inspection and copy-
ing.
A public hearing has been scheduled for
October 8, 2008, at 10:00 a.m. in the au-
ditorium of the Internal Revenue Service,
1111 Constitution Avenue, NW, Washing-
ton, DC. Due to building security proce-
dures, visitors must enter at the Consti-
tution Avenue entrance. In addition, all
visitors must presentphoto identification
to enter the building. Because of access
restrictions, visitors will not be admitted
beyond the immediate entrance area more
than 30 minutes before the hearing starts.
For information about having your name
placed on the building access list to attend
the hearing, see the “FOR FURTHER IN-
FORMATION CONTACT” section of this
preamble.
The rules of 26 CFR 601.601(a)(3) ap-
ply to the hearing. Persons who wish to
present oral comments at the hearing must
submit electronic or written comments by
September 16, 2008, and an outline of
the topics to be discussed and the time
to be devoted to each topic (signed orig-
inal and eight (8) copies) by September
16, 2008. A period of 10 minutes will be
allotted to each person for making com-
ments. An agenda showing the scheduling
of the speakers will be prepared after the
deadline for receiving outlines has passed.
Copies of the agenda will be available free
of charge at the hearing.
Drafting Information
The principal author of these proposed
regulations is Vishal R. Amin, Office of
the Chief Counsel (Passthroughs and Spe-
cial Industries).
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is proposed
to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.642(c)–3 is amended
by:
1. Revising the paragraph heading of
paragraph (b) and adding a heading for
(b)(1).
2. Revising paragraph (b)(2).
3. Adding a heading to paragraph
(b)(3).
4. Removing paragraph (b)(4).
The revisions and additions read as fol-
lows:
§1.642(c)–3 Adjustments and other
special rules for determining unlimited
charitable contributions deduction.
*****
(b)Determination of amounts de-
ductible under section 642(c) and the
character of such amounts—(1)Reduction
of charitable contributions deduction by
amounts not included in gross income.
***
(2)Determination of the character of an
amount deductible under section 642(c).
In determining whether the amounts of
income so paid, permanently set aside,
or used for a purpose specified in section
642(c)(1), (2), or (3) include particular
items of income of an estate or trust,
whether or not included in gross income,
a provision in the governing instrument
or in local law that specifically provides
the source out of which amounts are to be
paid, permanently set aside, or used for
such a purpose controls for Federal tax
purposes to the extent such provision has
economic effect independent of income
tax consequences. See §1.652(b)–2(b).
In the absence of such specific provisions
in the governing instrument or in local
law, the amount to which section 642(c)
applies is deemed to consist of the same
proportion of each class of the items of
income of the estate or trust as the total of
each class bears to the total of all classes.
See §1.643(a)–5(b) for the method of de-
termining the allocable portion of exempt
income and foreign income. This para-
graph (b)(2) is illustrated by the following
example:
Example. A charitable lead annuity trust has the
calendar year as its taxable year, and is to pay an
annuity of $10,000 annually to an organization de-
scribed in section 170(c). A provision in the trust
governing instrument provides that the $10,000 annu-
ity should be deemed to come first from ordinary in-
come, second from short-term capital gain, third from
fifty percent of the unrelated business taxable income,
fourth from long-term capital gain, fifth from the bal-
ance of unrelated business taxable income, sixth from
tax-exempt income, and seventh from principal. This
provision in the governing instrument does not have
economic effect independent of tax consequences be-
cause the amount to be paid to charity is not depen-
dent upon the type of income from which it is to
be paid. Accordingly, the amount to which section
642(c) applies is deemed to consist of the same pro-
portion of each class of the items of income of the
trust as the total of each class bears to the total of all
classes.
(3)Other examples.***
*****
Par. 3. Section 1.643(a)–5 is amended
by revising the text of paragraph (b) to read
as follows:
§1.643(a)–5 Tax-exempt interest.
*****
(b) If the estate or trust is allowed a
charitable contributions deduction un-
der section 642(c), the amounts speci-
fied in paragraph (a) of this section and
§1.643(a)–6 are reduced by the portion
deemed to be included in income paid,
permanently set aside, or to be used for
the purposes specified in section 642(c).
If the governing instrument or local law
specifically provides as to the source out
of which amounts are paid, permanently
set aside, or to be used for such charitable
purposes, the specific provision controls
for Federal tax purposes to the extent such
provision has economic effect indepen-
dent of income tax consequences. See
§1.652(b)–2(b). In the absence of specific
provisions in the governing instrument, an
amount to which section 642(c) applies is
deemed to consist of the same proportion
of each class of the items of income of
the estate or trust as the total of each class
bears to the total of all classes. For illus-
trations showing the determination of the
character of an amountdeductible under
section 642(c), seeExamples 1and2of
§1.662(b)–2 and §1.662(c)–4(e).
LindaE.Stiff,
Deputy Commissioner for
Services and Enforcement.
(Filed by the Office of the Federal Register on June 17, 2008,
8:45 a.m., and published in the issue of the Federal Register
for June 18, 2008, 73 F.R. 34670)
July 14, 20081132008–28 I.R.B.

Optional Standard Mileage
Rates
Announcement 2008–63
This announcement informs taxpay-
ers that the Internal Revenue Service is
modifying Rev. Proc. 2007–70, 2007–50
I.R.B. 1162, by revising the optional stan-
dard mileage rates for computing the de-
ductible costs of operating an automobile
for business, medical, or moving expense
purposes and for determining the reim-
bursed amount of these expenses that is
deemed substantiated. This modification
results from recent increases in the price
of fuel.
The revised standard mileage rates are:
(1) Business
58.5 cents per mile
(2) Medical and moving27 cents per mile
The mileage rate that applies to the
deduction for charitable contributions is
fixed under § 170(i) of the Internal Rev-
enue Code at 14 cents per mile.
The revised standard mileage rates set
forth in this announcement apply to de-
ductible transportation expenses paid or
incurred for business, medical, or moving
expense purposes on or after July 1, 2008,
and to mileage allowances that are paid
both(1)toanemployeeonorafterJuly1,
2008, and (2) with respect to transportation
expenses paid or incurred by the employee
on or after July 1, 2008.
The standard mileage rates set forth in
Rev. Proc. 2007–70 continue to apply
to deductible transportation expenses paid
or incurred for business, medical, or mov-
ing expense purposes before July 1, 2008,
and to mileage allowances paid (1) to an
employee before July 1, 2008, or (2) with
respect to transportation expenses paid or
incurred by the employee before July 1,
2008. All other provisions of Rev. Proc.
2007–70 remain in effect.
EFFECT ON OTHER DOCUMENTS
Rev. Proc. 2007–70 is modified.
DRAFTING INFORMATION
The principal author of this announce-
ment is Bernard P. Harvey of the Office
of Associate Chief Counsel (Income Tax
and Accounting). For further informa-
tion regarding this announcement, contact
Mr. Harvey at (202) 622–4930 (not a
toll-free call).
Multiemployer Plan Funding
Guidance; Hearing
Announcement 2008–64
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on pro-
posed rulemaking.
SUMMARY: This document provides
notice of public hearing on a notice of
proposed rulemaking (REG–151135–07,
2008–16 I.R.B. 815) providing additional
rules for certain multiemployer defined
benefit plans that are in effect on July 16,
2006. These proposed regulations affect
sponsors and administrators of, and partic-
ipants in multiemployer plans that are in
either endangered or critical status. These
regulations are necessary to implement
the new rules set forth in section 432 that
are effective for plan years beginning after
2007. The proposed regulations reflect
changes made by the Pension Protection
Act of 2006.
DATES: The public hearing is being held
on July 31, 2008, at 10 a.m. The IRS
must receive outlines of the topics to be
discussed at the hearing by July 10, 2008.
ADDRESSES: The public hearing is being
held in the auditorium, Internal Revenue
Building, 1111 Constitution Avenue, NW,
Washington, DC. Send submissions to:
CC:PA:LPD:PR (REG–151135–07), room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washing-
ton, DC 20044. Submissions may be
hand-delivered Monday through Friday
betweenthehoursof8a.m. and4p.m.
to CC:PA:LPD:PR (REG–151135–07),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue, NW, Wash-
ington, DC. Alternatively, taxpayers may
submit electronic outlines of oral com-
ments via the Federal eRulemaking Portal
athttp://www.regulations.gov.
FOR FURTHER INFORMATION
CONTACT: Concerning the regulations,
Bruce Perlin, (202) 622–6090; concerning
submissions of comments, the hearing,
and/or to be placed on the building access
list to attend the hearing, Richard A. Hurst
atRichard.A.Hurst@irscounsel.treas.gov
or (202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
The subject of the public hearing is
the notice of proposed rulemaking
(REG–151135–07) that was published in
theFederal Registeron Tuesday, March
8, 2008 (73 FR 14417).
Persons,whowishtopresentoralcom-
ments at the hearing that submitted writ-
ten comments, must submit an outline of
the topics to be discussed and the amount
of time to be devoted to each topic (signed
original and eight (8) copies) by July 10,
2008.
A period of 10 minutes is allotted to
each person for presenting oral comments.
After the deadline for receiving out-
lines has passed, the IRS will prepare an
agenda containing the schedule of speak-
ers. Copies of the agenda will be made
available, free of charge, at the hearing or
in the Freedom of Information Reading
Room (FOIA RR) (Room 1621) which
is located at the 11
th
and Pennsylvania
Avenue, NW, entrance, 1111 Constitution
Avenue, NW, Washington, DC.
Because of access restrictions, the IRS
will not admit visitors beyond the imme-
diateentranceareamorethan30minutes
before the hearing starts. For informa-
tion about having your name placed on the
building access list to attend the hearing,
see the FOR FURTHER INFORMATION
CONTACT section of this document.
2008–28 I.R.B.114July 14, 2008

LaNita Van Dyke,
Chief, Publications and
Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on June 26, 2008,
8:45 a.m., and published in the issue of the Federal Register
for June 27, 2008, 73 F.R. 36476)
July 14, 20081152008–28 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2008–28 I.R.B.iJuly 14, 2008

Numerical Finding List
1
Bulletins 2008–27 through 2008–28
Announcements:
2008-62, 2008-27 I.R.B.74
2008-63, 2008-28 I.R.B.114
2008-64, 2008-28 I.R.B.114
Notices:
2008-55, 2008-27 I.R.B.11
2008-56, 2008-28 I.R.B.79
2008-57, 2008-28 I.R.B.80
2008-58, 2008-28 I.R.B.81
Proposed Regulations:
REG-129243-07, 2008-27 I.R.B.32
REG-149405-07, 2008-27 I.R.B.73
REG-101258-08, 2008-28 I.R.B.111
Revenue Procedures:
2008-32, 2008-28 I.R.B.82
2008-33, 2008-28 I.R.B.93
2008-34, 2008-27 I.R.B.13
Revenue Rulings:
2008-32, 2008-27 I.R.B.6
2008-33, 2008-27 I.R.B.8
2008-34, 2008-28 I.R.B.76
2008-37, 2008-28 I.R.B.77
Treasury Decisions:
9401, 2008-27 I.R.B.1
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2008–1 through 2008–26 is in Internal Revenue Bulletin
2008–26, dated June 30, 2008.
July 14, 2008ii2008–28 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2008–27 through 2008–28
Proposed Regulations:
REG-151135-07
Hearing scheduled by
Ann. 2008-64, 2008-28 I.R.B.114
Revenue Procedures:
2006-29
Superseded by
Rev. Proc. 2008-34, 2008-27 I.R.B.13
2007-42
Superseded by
Rev. Proc. 2008-32, 2008-28 I.R.B.82
2007-43
Superseded by
Rev. Proc. 2008-33, 2008-28 I.R.B.93
2007-70
Modified by
Ann. 2008-63, 2008-28 I.R.B.114
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2008–1 through 2008–26 is in Internal Revenue Bulletin 2008–26, dated June 30, 2008.
2008–28 I.R.B.iiiJuly 14, 2008

July 14, 20082008–28 I.R.B.

2008–28 I.R.B.July 14, 2008

July 14, 20082008–28 I.R.B.

INTERNAL REVENUE BULLETIN
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