rp-05-70.pdf

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing.

This collection currently includes the publisher’s available advance-release directory. Historical bulletin renditions are discovered separately; an advance-release record alone does not certify the collection archive complete.

Part III

Administrative, Procedural, and Miscellaneous

26 CFR 601.602. Tax forms and instructions.
(Also Part I, §§ 1, 23, 24, 25A, 32, 42, 59, 62, 63, 68, 132, 135, 137, 146, 148, 151, 170,
179, 213, 220, 221, 223, 512, 513, 685, 877, 2032A, 2503, 2523, 4161, 4261, 6033,
6039F, 6323, 6334, 6601, 7430, 7702B; 1.148-5)

Rev. Proc. 2005-70

Table of Contents
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. 2006 ADJUSTED ITEMS
Code Section

.01 Tax Rate Tables 1(a)-(e)
.02 Unearned Income of Minor Children Taxed as if Parent’s 1(g)
Income ("Kiddie Tax")
.03 Adoption Credit 23
.04 Child Tax Credit 24
.05 Hope and Lifetime Learning Credits 25A
.06 Earned Income Credit 32
.07 Low-Income Housing Credit 42(h)

- 2 -

.08 Alternative Minimum Tax Exemption for a Child Subject to the 59(j)
“Kiddie Tax”
.09 Transportation Mainline Pipeline Construction Industry Optional 62(c)
Expense Substantiation Rules for Payments to Employees under
Accountable Plans
.10 Standard Deduction 63
.11 Overall Limitation on Itemized Deductions 68
.12 Qualified Transportation Fringe 132(f)
.13 Income from United States Savings Bonds for Taxpayers Who 135
Pay Qualified Higher Education Expenses
.14 Adoption Assistance Programs 137
.15 Private Activity Bonds Volume Cap 146(d)
.16 Safe Harbor Rules for Broker Commissions on Guaranteed 148
Investment Contracts or Investments Purchased for a Yield
Restricted Defeasance Escrow
.17 Personal Exemption 151
.18 Election to Expense Certain Depreciable Assets 179
.19 Eligible Long-Term Care Premiums 213(d)(10)
.20 Medical Savings Accounts 220
.21 Interest on Education Loans 221
.22 Health Savings Accounts 223
.23 Treatment of Dues Paid to Agricultural or Horticultural 512(d)
Organizations
.24 Insubstantial Benefit Limitations for Contributions Associated 513(h)
with Charitable Fund-Raising Campaigns
.25 Funeral Trusts 685

- 3 -

.26 Expatriation to Avoid Tax 877
.27 Valuation of Qualified Real Property in Decedent's Gross Estate 2032A
.28 Annual Exclusion for Gifts 2503 & 2523
.29 Tax on Arrow Shafts 4161
.30 Passenger Air Transportation Excise Tax 4261
.31 Reporting Exception for Certain Exempt Organizations with 6033(e)(3)
Nondeductible Lobbying Expenditures
.32 Notice of Large Gifts Received from Foreign Persons 6039F
.33 Persons Against Which a Federal Tax Lien Is Not Valid 6323
.34 Property Exempt from Levy 6334
.35 Interest on a Certain Portion of the Estate Tax Payable 6601(j)
in Installments
.36 Attorney Fee Awards 7430
.37 Periodic Payments Received under Qualified Long-Term Care 7702B(d)
Insurance Contracts or under Certain Life Insurance Contracts
SECTION 4. EFFECTIVE DATE
SECTION 5. DRAFTING INFORMATION

SECTION 1. PURPOSE
This revenue procedure sets forth inflation adjusted items for 2006.
SECTION 2. CHANGES
.01 The amount of tax imposed by § 4161(b)(2)(A) on the first sale by the
manufacturer, producer, or importer of any shaft of a type used in the manufacture of
certain arrows is adjusted for inflation. (Section 3.29).

- 4 -

SECTION 3. 2006 ADJUSTED ITEMS
.01 Tax Rate Tables
. For taxable years beginning in 2006, the tax rate tables under
§ 1 are as follows:
TABLE 1 - Section 1(a). - Married Individuals Filing Joint Returns and Surviving
Spouses
If Taxable Income Is
: The Tax Is:
Not over $15,100 10% of the taxable income
Over $15,100 but $1,510 plus 15% of
not over $61,300 the excess over $15,100
Over $61,300 but $8,440 plus 25% of
not over $123,700 the excess over $61,300
Over $123,700 but $24,040 plus 28% of
not over $188,450 the excess over $123,700
Over $188,450 but $42,170 plus 33% of
not over $336,550 the excess over $188,450
Over $336,550 $91,043 plus 35% of
the excess over $336,550
TABLE 2 - Section 1(b). – Heads of Households
If Taxable Income Is
: The Tax Is:
Not over $10,750 10% of the taxable income
Over $10,750 but $1,075 plus 15% of
not over $41,050 the excess over $10,750
Over $41,050 but $5,620 plus 25% of
not over $106,000 the excess over $41,050
Over $106,000 but $21,857.50 plus 28% of
not over $171,650 the excess over $106,000
Over $171,650 but $40,239.50 plus 33% of

- 5 -

not over $336,550 the excess over $171,650
Over $336,550 $94,656.50 plus 35% of
the excess over $336,550
TABLE 3 - Section 1(c). – Unmarried Individuals (other than Surviving Spouse and
Heads of Households).
If Taxable Income Is
: The Tax Is:
Not over $7,550 10% of the taxable income
Over $7,550 but $755 plus 15% of
not over $30,650 the excess over $7,550
Over $30,650 but $4,220 plus 25% of
not over $74,200 the excess over $30,650
Over $74,200 but $15,107.50 plus 28% of
not over $154,800 the excess over $74,200
Over $154,800 but $37,675.50 plus 33% of
not over $336,550 the excess over $154,800
Over $336,550 $97,653 plus 35% of
the excess over $336,550
TABLE 4 - Section 1(d). – Married Individuals Filing Separate Returns
If Taxable Income Is
: The Tax Is:
Not over $7,550 10% of the taxable income
Over $7,550 but $755 plus 15% of
not over $30,650 the excess over $7,550
Over $30,650 but $4,220 plus 25% of
not over $61,850 the excess over $30,650
Over $61,850 but $12,020 plus 28% of
not over $94,225 the excess over $61,850
Over $94,225 but $21,085 plus 33% of
not over $168,275 the excess over $94,225

- 6 -

Over $168,275 $45,521.50 plus 35% of
the excess over $168,275
TABLE 5 - Section 1(e). – Estates and Trusts
If Taxable Income Is
: The Tax Is:
Not over $2,050 15% of the taxable income
Over $2,050 but $307.50 plus 25% of
not over $4,850 the excess over $2,050
Over $4,850 but $1,007.50 plus 28% of
not over $7,400 the excess over $4,850
Over $7,400 but $1,721.50 plus 33% of
not over $10,050 the excess over $7,400
Over $10,050 $2,596 plus 35% of
the excess over $10,050
.02 Unearned Income of Minor Children Taxed as if Parent's Income (the "Kiddie
Tax"). For taxable years beginning in 2006, the amount in § 1(g)(4)(A)(ii)(I), which is
used to reduce the net unearned income reported on the child's return that is subject to
the "kiddie tax," is $850. (This amount is the same as the $850 standard deduction
amount provided in section 3.10(2) of this revenue procedure.) The same $850 amount
is used for purposes of § 1(g)(7) (that is, in determining whether a parent may elect to
include a child's gross income in the parent's gross income and for calculating the
"kiddie tax"). For example, one of the requirements for the parental election is that a
child's gross income is more than the amount referenced in § 1(g)(4)(A)(ii)(I) but less
than 10 times such amount; thus, a child's gross income for 2006 must be more than
$850 but less than $8,500 to satisfy that requirement.
.03 Adoption Credit
. For taxable years beginning in 2006, under § 23(a)(3) the

- 7 -

maximum credit allowed for an adoption of a child with special needs is $10,960. For
taxable years beginning in 2006, under § 23(b)(1) the maximum credit allowed with
regard to other adoptions is the amount of qualified adoption expenses up to $10,960.
The available adoption credit begins to phase out under § 23(b)(2)(A) for taxpayers with
modified adjusted gross income in excess of $164,410 and is completely phased out for
taxpayers with modified adjusted gross income of $204,410. (See section 3.14 of this
revenue procedure for the adjusted items relating to adoption assistance programs.)
.04 Child Tax Credit
. For taxable years beginning in 2006, the value used in
§ 24(d)(1)(B)(i) in determining the amount of credit under § 24 that may be refundable is
$11,300.
.05 Hope and Lifetime Learning Credits
.
(1) For taxable years beginning in 2006, 100 percent of qualified tuition and related
expenses not in excess of $1,100 and 50 percent of such expenses in excess of $1,100
are taken into account in determining the amount of the Hope Scholarship Credit under
§ 25A(b)(1).
(2) For taxable years beginning in 2006, a taxpayer's modified adjusted gross
income in excess of $45,000 ($90,000 for a joint return) is taken into account in
determining the reduction under § 25A(d)(2)(A)(ii) in the amount of the Hope
Scholarship and Lifetime Learning Credits otherwise allowable under § 25A(a).
.06 Earned Income Credit
.
(1) In general
. For taxable years beginning in 2006, the following amounts are used
to determine the earned income credit under § 32(b). The "earned income amount" is

- 8 -

the amount of earned income at or above which the maximum amount of the earned
income credit is allowed. The "threshold phaseout amount" is the amount of adjusted
gross income (or, if greater, earned income) above which the maximum amount of the
credit begins to phase out. The "completed phaseout amount" is the amount of
adjusted gross income (or if greater, earned income) at or above which no credit is
allowed.
Number of Qualifying Children

Item One Two or More None
Earned Income Amount $ 8,080 $11,340 $ 5,380
Maximum Amount of Credit $ 2,747 $ 4,536 $ 412
Threshold Phaseout Amount $14,810 $14,810 $ 6,740
(Single, Surviving Spouse, or
Head of Household)
Completed Phaseout Amount $32,001 $36,348 $12,120
(Single, Surviving Spouse, or
Head of Household)
Threshold Phaseout Amount $16,810 $16,810 $ 8,740
(Married Filing Jointly)
Completed Phaseout Amount $34,001 $38,348 $14,120
(Married Filing Jointly)
The instructions for the Form 1040 series provide tables showing the amount of the
earned income credit for each type of taxpayer.
(2) Excessive investment income
. For taxable years beginning in 2006, the earned
income tax credit is denied under § 32(i) if the aggregate amount of certain investment
income exceeds $2,800.

- 9 -

.07 Low-Income Housing Credit
. For calendar year 2006, the amounts used under
§ 42(h)(3)(C)(ii) to calculate the State housing credit ceiling for the low-income housing
credit is the greater of (i) $1.90 multiplied by the State population, or (ii) $2,190,000.
.08 Alternative Minimum Tax Exemption for a Child Subject to the "Kiddie Tax
." For
taxable years beginning in 2006, for a child to whom the § 1(g) "kiddie tax" applies, the
exemption amount under §§ 55 and 59(j) for purposes of the alternative minimum tax
under § 55 may not exceed the sum of (i) such child's earned income for the taxable
year, plus (ii) $6,050.
.09 Transportation Mainline Pipeline Construction Industry Optional Expense
Substantiation Rules for Payments to Employees under Accountable Plans. For
calendar year 2006, an eligible employer may pay certain welders and heavy equipment
mechanics an amount of up to $14 per hour for rig-related expenses that is deemed
substantiated under an accountable plan when paid in accordance with Rev. Proc.
2002-41, 2002-1 C.B. 1098. If the employer provides fuel or otherwise reimburses fuel
expenses, up to $8 per hour is deemed substantiated when paid under Rev. Proc.
2002-41.
.10 Standard Deduction
.
(1) In general
. For taxable years beginning in 2006, the standard deduction
amounts under § 63(c)(2) are as follows:
Filing Status
Standard Deduction
Married Individuals Filing Joint Returns $10,300
and Surviving Spouses (§ 1(a))
Heads of Households (§ 1(b)) $7,550

- 10 -

Unmarried Individuals (other than Surviving Spouses $5,150
and Heads of Households) (§ 1(c))
Married Individuals Filing Separate $5,150
Returns (§ 1(d))
(2) Dependent
. For taxable years beginning in 2006, the standard deduction
amount under § 63(c)(5) for an individual who may be claimed as a dependent by
another taxpayer may not exceed the greater of (i) $850, or (ii) the sum of $300 and the
individual's earned income.
(3) Aged and blind
. For taxable years beginning in 2006, the additional standard
deduction amounts under § 63(f) for the aged and for the blind are $1,000 for each.
These amounts are increased to $1,250 if the individual is also unmarried and not a
surviving spouse.
.11 Overall Limitation on Itemized Deductions
. For taxable years beginning in 2006,
the "applicable amount" of adjusted gross income under § 68(b), above which the
amount of otherwise allowable itemized deductions is reduced under § 68, is $150,500
(or $75,250 for a separate return filed by a married individual).
.12 Qualified Transportation Fringe
. For taxable years beginning in 2006, the monthly
limitation under § 132(f)(2)(A) (regarding the aggregate fringe benefit exclusion amount
for transportation in a commuter highway vehicle and any transit pass) is $105. The
monthly limitation under § 132(f)(2)(B) (regarding the fringe benefit exclusion amount for
qualified parking) is $205.
.13 Income from United States Savings Bonds for Taxpayers Who Pay Qualified
Higher Education Expenses. For taxable years beginning in 2006, the exclusion under

- 11 -

§ 135 (regarding income from United States savings bonds for taxpayers who pay
qualified higher education expenses) begins to phase out for modified adjusted gross
income above $94,700 for joint returns and $63,100 for other returns. This exclusion
completely phases out for modified adjusted gross income of $124,700 or more for joint
returns and $78,100 or more for other returns.
.14 Adoption Assistance Programs
. For taxable years beginning in 2006, under
§ 137(a)(2) the maximum amount that can be excluded from an employee’s gross
income in connection with the adoption by the employee of a child with special needs is
$10,960. For taxable years beginning in 2006, under § 137(b)(1) the maximum amount
that can be excluded from an employee’s gross income for the amounts paid or
expenses incurred by the employer for qualified adoption expenses furnished pursuant
to an adoption assistance program in connection with other adoptions by the employee
is $10,960. The amount excludable from an employee’s gross income begins to phase
out under § 137(b)(2)(A) for taxpayers with modified adjusted gross income in excess of
$164,410 and is completely phased out for taxpayers with modified adjusted gross
income of $204,410. (See section 3.03 of this revenue procedure for the adjusted items
relating to the adoption credit.)
.15 Private Activity Bonds Volume Cap
. For calendar year 2006, the amounts used
under § 146(d)(1) to calculate the State ceiling for the volume cap for private activity
bonds is the greater of (i) $80 multiplied by the State population, or (ii) $246,610,000.
.16 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts
or Investments Purchased for a Yield Restricted Defeasance Escrow. For calendar

- 12 -

year 2006, under § 1.148-5(e)(2)(iii)(B)(1), a broker’s commission or similar fee with
respect to the acquisition of a guaranteed investment contract or investments
purchased for a yield restricted defeasance escrow is reasonable to the extent that
(i) the amount of the fee that the issuer treats as a qualified administrative cost does not
exceed the lesser of (A) $32,000, or (B) 0.2 percent of the computational base (as
defined in § 1.148-5(e)(2)(iii)(B)(2)) or, if more, $3,000; and (ii) the issuer does not treat
more than $90,000 in brokers’ commissions or similar fees as qualified administrative
costs with respect to all guaranteed investment contracts and investments for yield
restricted defeasance escrows purchased with gross proceeds of the issue.
.17 Personal Exemption
.
(1) Exemption amount
. For taxable years beginning in 2006, the personal
exemption amount under § 151(d) is $3,300.
(2) Phase out
. For taxable years beginning in 2006, the personal exemption amount
begins to phase out at, and is completely phased out after, the following adjusted gross
income amounts:
AGI – Beginning
AGI – Exemption
Filing Status
of Phaseout Fully Phased Out
Married Individuals Filing Joint Returns and $225,750 $348,250
Surviving Spouses (§ 1(a))
Heads of Households (§ 1(b)) $188,150 $310,650
Unmarried Individuals (other than Surviving $150,500 $273,000
Spouses and Heads of Households) (§ 1(c))
Married Individuals Filing Separate $112,875 $174,125
Returns (§ 1(d))

- 13 -

.18 Election to Expense Certain Depreciable Assets
. For taxable years beginning in
2006, under § 179(b)(1) the aggregate cost of any § 179 property a taxpayer may elect
to treat as an expense shall not exceed $108,000. Under § 179(b)(2) the $108,000
limitation shall be reduced (but not below zero) by the amount by which the cost of
§ 179 property placed in service during the 2006 taxable year exceeds $430,000.
.19 Eligible Long-Term Care Premiums
. For taxable years beginning in 2006, the
limitations under § 213(d)(10) (regarding eligible long-term care premiums includible in
the term "medical care") are as follows:
Attained Age Before the Close of the Taxable Year
Limitation on Premiums
40 or less $ 280
More than 40 but not more than 50 $ 530
More than 50 but not more than 60 $1,060
More than 60 but not more than 70 $2,830
More than 70 $3,530
.20 Medical Savings Accounts
.
(1) Self-only coverage
. For taxable years beginning in 2006, the term "high
deductible health plan" as defined in § 220(c)(2)(A) means, for self-only coverage, a
health plan that has an annual deductible that is not less than $1,800 and not more than
$2,700, and under which the annual out-of-pocket expenses required to be paid (other
than for premiums) for covered benefits does not exceed $3,650.
(2) Family coverage
. For taxable years beginning in 2006, the term "high deductible
health plan" means, for family coverage, a health plan that has an annual deductible

- 14 -

that is not less than $3,650 and not more than $5,450, and under which the annual out-
of-pocket expenses required to be paid (other than for premiums) for covered benefits
does not exceed $6,650.
.21 Interest on Education Loans
. For taxable years beginning in 2006, the $2,500
maximum deduction for interest paid on qualified education loans under § 221 is
reduced under § 221(b)(2)(B) when modified adjusted gross income exceeds $50,000
($105,000 for joint returns), and is completely eliminated when modified adjusted gross
income is $65,000 ($135,000 for joint returns).
.22 Health Savings Accounts
.
(1) Monthly contribution limitation. For calendar year 2006, the monthly limitation on
deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high
deductible plan as of the first day of such month is 1/12 of the lesser of (i) the annual
deductible, or (ii) $2,700. For calendar year 2006, the monthly limitation on deductions
under § 223(b)(2)(B) for an individual with family coverage under a high deductible plan
as of the first day of such month is 1/12 of the lesser of (i) the annual deductible, or
(ii) $5,450.
(2) High deductible health plan
. For calendar year 2006, a high deductible health
plan is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is
not less than $1,050 for self-only coverage or $2,100 for family coverage, and the
annual out-of pocket expenses (deductibles, co-payments, and other amounts, but not
premiums) do not exceed $5,250 for self-only coverage or $10,500 for family coverage.
.23 Treatment of Dues Paid to Agricultural or Horticultural Organizations
. For taxable

- 15 -

years beginning in 2006, the limitation under § 512(d)(1) (regarding the exemption of
annual dues required to be paid by a member to an agricultural or horticultural
organization) is $131.
.24 Insubstantial Benefit Limitations for Contributions Associated with Charitable
Fund-Raising Campaigns.
(1) Low cost article. For taxable years beginning in 2006, the unrelated business
income of certain exempt organizations under § 513(h)(2) does not include a "low cost
article" of $8.60 or less.
(2) Other insubstantial benefits
. For taxable years beginning in 2006, the $5, $25,
and $50 guidelines in section 3 of Rev. Proc. 90-12, 1990-1 C.B. 471 (as amplified and
modified), for disregarding the value of insubstantial benefits received by a donor in
return for a fully deductible charitable contribution under § 170, are $8.60, $43, and $86,
respectively.
.25 Funeral Trusts
. For a contract entered into during calendar year 2006 for a
"qualified funeral trust," as defined in § 685, the trust may not accept aggregate
contributions by or for the benefit of an individual in excess of $8,500.
.26 Expatriation to Avoid Tax
. For calendar year 2006, an individual with “average
annual net income tax” of more than $131,000 for the 5 taxable years ending before the
date of the loss of United States citizenship under § 877(a)(2)(A) is subject to tax under
§ 877(b).
.27 Valuation of Qualified Real Property in Decedent's Gross Estate
. For an estate of
a decedent dying in calendar year 2006, if the executor elects to use the special use

- 16 -

valuation method under § 2032A for qualified real property, the aggregate decrease in
the value of qualified real property resulting from electing to use § 2032A that is taken
into account for purposes of the estate tax may not exceed $900,000.
.28 Annual Exclusion for Gifts
.
(1) For calendar year 2006, the first $12,000 of gifts to any person (other than gifts
of future interests in property) are not included in the total amount of taxable gifts under
§ 2503 made during that year.
(2) For calendar year 2006, the first $120,000 of gifts to a spouse who is not a
citizen of the United States (other than gifts of future interests in property) are not
included in the total amount of taxable gifts under §§ 2503 and 2523(i)(2) made during
that year.
.29 Tax on Arrow Shafts
. For calendar year 2006, the tax imposed under
§ 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft
of a type used in the manufacture of certain arrows is $0.40 per shaft.
.30 Passenger Air Transportation Excise Tax
. For calendar year 2006, the tax under
§ 4261(b) on the amount paid for each domestic segment of taxable transportation by
air is $3.30. For calendar year 2006, the tax under § 4261(c) on any amount paid
(whether within or without the United States) for any transportation of any person by air,
if such transportation begins or ends in the United States, generally is $14.50.
However, for a domestic segment beginning or ending in Alaska or Hawaii as described
in § 4261(c)(3), the tax only applies to departures and is at the rate of $7.30.
.31 Reporting Exception for Certain Exempt Organizations with Nondeductible

- 17 -

Lobbying Expenditures
. For taxable years beginning in 2006, the annual per person,
family, or entity dues limitation to qualify for the reporting exception under § 6033(e)(3)
(and section 5.05 of Rev. Proc. 98-19, 1998-1 C.B. 547), regarding certain exempt
organizations with nondeductible lobbying expenditures, is $91 or less.
.32 Notice of Large Gifts Received from Foreign Persons
. For taxable years
beginning in 2006, recipients of gifts from certain foreign persons may be required to
report these gifts under § 6039F if the aggregate value of gifts received in a taxable
year exceeds $12,760.
.33 Persons Against Which a Federal Tax Lien Is Not Valid
. For calendar year 2006,
a federal tax lien is not valid against (i) certain purchasers under § 6323(b)(4) who
purchased personal property in a casual sale for less than $1,240, or (ii) a mechanic's
lienor under § 6323(b)(7) that repaired or improved certain residential property if the
contract price with the owner is not more than $6,210.
.34 Property Exempt from Levy
. For calendar year 2006, the value of property
exempt from levy under § 6334(a)(2) (fuel, provisions, furniture, and other household
personal effects, as well as arms for personal use, livestock, and poultry) may not
exceed $7,430. The value of property exempt from levy under § 6334(a)(3) (books and
tools necessary for the trade, business, or profession of the taxpayer) may not exceed
$3,710.
.35 Interest on a Certain Portion of the Estate Tax Payable in Installments
. For an
estate of a decedent dying in calendar year 2006, the dollar amount used to determine
the "2-percent portion" (for purposes of calculating interest under § 6601(j)) of the estate

- 18 -

tax extended as provided in § 6166 is $1,200,000.
.36 Attorney Fee Awards
. For fees incurred in calendar year 2006, the attorney fee
award limitation under § 7430(c)(1)(B)(iii) is $160 per hour.
.37 Periodic Payments Received under Qualified Long-Term Care Insurance
Contracts or under Certain Life Insurance Contracts. For calendar year 2006, the
stated dollar amount of the per diem limitation under § 7702B(d)(4) (regarding periodic
payments received under a qualified long-term care insurance contract or periodic
payments received under a life insurance contract that are treated as paid by reason of
the death of a chronically ill individual) is $250.
SECTION 4. EFFECTIVE DATE
.01 General Rule
. Except as provided in section 4.02, this revenue procedure applies
to taxable years beginning in 2006.
.02 Calendar Year Rule
. This revenue procedure applies to transactions or events
occurring in calendar year 2006 for purposes of sections 3.07 (low-income housing
credit), 3.09 (pipeline construction industry optional expense substantiation rules), 3.15
(private activity bond volume cap), 3.16 (safe harbor rules for broker commissions on
guaranteed investment contracts or investments purchased for a yield restricted
defeasance escrow), 3.22 (health savings accounts), 3.25 (funeral trusts), 3.26
(expatriation to avoid tax), 3.27 (valuation of qualified real property in decedent's gross
estate), 3.28 (annual exclusion for gifts), 3.29 (tax on arrow shafts), 3.30 (passenger air
transportation excise tax), 3.33 (persons against which a federal tax lien is not valid),
3.34 (property exempt from levy), 3.35 (interest on a certain portion of the estate tax

- 19 -

payable in installments), 3.36 (attorney fee awards), and 3.37 (periodic payments
received under qualified long-term care insurance contracts or under certain life
insurance contracts).
SECTION 5. DRAFTING INFORMATION
The principal author of this revenue procedure is Marnette M. Myers of the Office of
Associate Chief Counsel (Income Tax & Accounting). For further information regarding
this revenue procedure, contact Ms. Myers on (202) 622-4920 (not a toll-free call).