Internal Revenue Bulletin 2006-52 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 200
6-52
December 26, 200
6
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. 2006–62, page 1142.
LIFO; price indexes; department stores.The October
2006 Bureau of Labor Statistics price indexes are accepted
for use by department stores employing the retail inventory and
last-in, first-out inventory methods for valuing inventories for tax
years ended on, or with reference to, October 31, 2006.
Rev. Rul. 2
006–63, page 1143.
Interest r
ates; underpayments and overpayments.The
rate of int
erest determined under section 6621 of the Code for
the calen
dar quarter beginning January 1, 2007, will be 8 per-
cent for o
verpayments (7 percent in the case of a corporation),
8percent
for underpayments, and 10 percent for large corpo-
rate unde
rpayments. The rate of interest paid on the portion of
acorpora
te overpayment exceeding $10,000 will be 5.5 per-
cent.
Rev. Proc. 2006–55, page 1151.
Specifications are set forth for the private printing of paper and
laser-printed substitutes for tax year 2006 Form W–2,Wage
and Tax Statement,andFormW–3,Transmittal of Wage and
Tax Statements. Rev. Proc. 2005–65 superseded.
EMPLOY
EE PLANS
Notice
2006–111, page 1150.
Weight
ed average interest rate update; corporate bond
indice
s; 30-year Treasury securities.The weighted aver-
age int
erest rate for December 2006 and the resulting permis-
sible r
ange of interest rates used to calculate current liability
and to d
etermine the required contribution are set forth.
EXEMPT ORGANIZATIONS
Announcement 2006–101, page 1181.
A list is provided of organizations now classified as private foun-
dations.
EMPLOYMENT TAX
Rev. Proc. 2006–55, page 1151.
Specifications are set forth for the private printing of paper and
laser-printed substitutes for tax year 2006 Form W–2,Wage
and Tax Statement,andFormW–3,Transmittal of Wage and
Tax Statements. Rev. Proc. 2005–65 superseded.
ADMINIST
RATIVE
Rev. Proc
. 2006–56, page 1169.
Nonaccru
al-experience method of accounting.This pro-
cedure pr
ovides the exclusive procedures under which a tax-
payer may
request the consent of the Commissioner to make
certain
changes to, from, or within a nonaccrual-experience
(NAE) me
thod of accounting and to adopt certain NAE meth-
ods. Fin
al regulations on the NAE method of accounting are
effecti
ve August 31, 2006. Rev. Proc. 2002–9 modified and
amplifi
ed.
(Continued on the next page)
A
nnouncements of Disbarments and Suspensions begin on page 1171.
Finding Lists begin on page ii.
Index for July through December begins on page vi.

Announcement 2006–102, page 1184.
This document contains corrections to final regulations
(T.D. 9273, 2006–37 I.R.B. 394) addressing the carryover
of certain tax attributes, such as earnings and profits and
foreign income tax accounts, when two corporations combine
in a corporate reorganization or liquidation that is described in
both sections 367(b) and 381 of the Code.
Announcement 2006–103, page 1185.
This document contains corrections to final and temporary
regulations (T.D. 9293, 2006–48 I.R.B. 957) concerning the
amendments made by the Tax Increase Prevention and Recon-
ciliation Act of 2005 (TIPRA) to section 199 of the Code.
Announcement 2006–104, page 1186.
This document contains corrections to final regulations
(T.D. 9292, 2006–47 I.R.B. 914) regarding the allocation of
creditable foreign tax expenditures by partnerships.
Announcement 2006–105, page 1186.
This document contains corrections to temporary regulations
(T.D. 9286, 2006–43 I.R.B. 750) providing rules for claiming
the railroad track maintenance credit under section 45G of the
Code for qualified railroad track maintenance expenditures paid
or incurred by a Class II or Class III railroad and other eligible
taxpayers during the taxable year.
December 26, 20062006–52 I.R.B.

The IRS Mission
Provide America’s taxpayers top quality service by helping
them understand and 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 Sec-
retary (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.
2006–52 I.R.B.December 26, 2006

Place missing child here.
December 26, 20062006–52 I.R.B.

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 446.—General Rule
for Methods of Accounting
This revenue procedure provides the exclusive
procedures under which a taxpayer may request
the consent of the Commissioner to make certain
changes to, from, or withina nonaccrual-experience
(NAE) method of accounting and to adopt certain
NAE methods. See Rev. Proc. 2006-56, page 1169.
Section 472.—Last-in,
First-out Inventories
26 CFR 1.472–1: Last-in, first-out inventories.
LIFO; price indexes; department
stores.The October 2006 Bureau of La-
bor Statistics price indexes are accepted
for use by department stores employing
the retail inventory and last-in, first-out
inventory methods for valuing inventories
for tax years ended on, or with reference
to, October 31, 2006.
Rev. Rul. 2006–62
The following Department Store Inven-
tory Price Indexes for October 2006 were
issued by the Bureau of Labor Statistics.
The indexes are accepted by the Inter-
nal Revenue Service, under § 1.472–1(k)
of the Income Tax Regulations and Rev.
Proc. 86–46, 1986–2 C.B. 739, for ap-
propriate application to inventories of
department stores employing the retail
inventory and last-in, first-out inventory
methods for tax years ended on, or with
reference to, October 31, 2006.
The Department Store Inventory Price
Indexes are prepared on a national basis
and include (a) 23 major groups of depart-
ments, (b) three special combinations of
the major groups — soft goods, durable
goods, and miscellaneous goods, and (c) a
store total, which covers all departments,
including some not listed separately, ex-
cept for the following: candy, food, liquor,
tobacco, and contract departments.
BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Groups20052006
Percent Ch
ange
from Oct. 2
005
to Oct. 200
6
1
1. PieceGoods .............................................488.1460.3-5.7
2. Domestic
sandDraperies..................................
512.4488.0-4.8
3. Women’sandChildren’sShoes ............................710.9697.7-1.9
4. Men’sShoes.............................................884.9886.70.2
5. Infants’
Wear ............................................
566.9582.12.7
6. Women’sUnderwear......................................542.9551.31.5
7. Women’sHosiery ........................................337.1339.80.8
8. Women’s
andGirls’Accessories ...........................
578.4538.8-6.8
9. Women’sOuterwearandGirls’Wear .......................374.0383.02.4
10. Men’sClothing ..........................................538.4533.9-0.8
11. Men’s F
urnishings........................................
571.2581.11.7
12. Boys’ClothingandFurnishings............................405.4408.40.7
13. Jewelry..................................................873.8907.33.8
14. Notio
ns .................................................
806.3818.31.5
15. ToiletArticlesandDrugs..................................1003.61011.60.8
16. FurnitureandBedding ....................................598.1600.80.5
17. Floo
rCoverings..........................................
606.4612.10.9
18. Housewares..............................................706.7691.8-2.1
19. MajorAppliances.........................................203.7206.71.5
20. Radi
oandTelevision......................................
38.334.9-8.9
21. Recreation and Education
2
.................................77.876.6-1.5
22. Home Improvements
2
.....................................137.3141.02.7
23. Aut
omotive Accessories
2
..................................
116.3121.84.7
Groups1–15:SoftGoods .......................................565.3568.70.6
Gr
oups16–20:DurableGoods...................................
37
7
.437
1
.6-1.5
Groups 21–23: Misc. Goods
2
....................................93.294.00.9
2006–52 I.R.B.1142December 26, 2006

BUREAU OF LABOR STATISTICS, DEPARTMENT STORE
INVENTORY PRICE INDEXES BY DEPARTMENT GROUPS
(January 1941 = 100, unless otherwise noted)
Groups20052006
Percent Change
from Oct. 2005
to Oct. 2006
1
Store Total
3
..............................................498.4499.50.2
1
Absence of a minus sign before the percentage change in this column signifies a price increase.
2
Indexes on a January 1986 = 100 base.
3
The store total index covers all departments, including some not listed separately, except for the following: candy, food, liquor,
tobacco, and contract departments.
DRAFTING INFORMATION
The principal author of this revenue rul-
ingisJohnRomanFaronoftheOffice
of Associate Chief Counsel (Income Tax
and Accounting). For further informa-
tion regarding this revenue ruling, con-
tact Mr. Faron at (202) 622–8142 (not a
toll-free call).
Section 481.—Adjustments
Required by Changes in
Method of Accounting
This revenue procedure provides the exclusive
procedures under which a taxpayer may make certain
changes to, from, or withina nonaccrual-experience
(NAE) method of accounting with an adjustment
under section 481(a) of the Code and changes that
maybemadeusingacut-offmethod.SeeRev.Proc.
2006-56, page 1169.
Section 6621.—Determina-
tion of Rate of Interest
26 CFR 301.6621–1: Interest rate.
Interest rates; underpayments and
overpayments.The rate of interest deter-
mined under section 6621 of the Code for
the calendar quarter beginning January 1,
2007, will be 8 percent for overpayments
(7 percent in the case of a corporation), 8
percent for underpayments, and 10 percent
for large corporate underpayments. The
rate of interest paid on the portion of a
corporate overpayment exceeding $10,000
will be 5.5 percent.
Rev. Rul. 2006–63
Section 6621 of the Internal Revenue
Code establishes the rates for interest
on tax overpayments and tax underpay-
ments. Under section 6621(a)(1), the
overpayment rate is the sum of the federal
short-term rate plus 3 percentage points (2
percentage points in the case of a corpo-
ration), except the rate for the portion of
a corporate overpayment of tax exceeding
$10,000 for a taxable period is the sum of
the federal short-term rate plus 0.5 of a
percentage point for interest computations
made after December 31, 1994. Under
section 6621(a)(2), the underpayment rate
is the sum of the federal short-term rate
plus 3 percentage points.
Section 6621(c) provides that for pur-
poses of interest payable under section
6601 on any large corporate underpay-
ment, the underpayment rate under section
6621(a)(2) is determined by substituting
“5 percentage points” for “3 percentage
points.” See section6621(c) and section
301.6621–3 of the Regulations on Proce-
dure and Administration for the definition
of a large corporate underpayment and
for the rules for determining the appli-
cable date. Section 6621(c) and section
301.6621–3 are generally effective for
periods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal
short-term rate for the first month in each
calendar quarter.
Section 6621(b)(2)(A) provides that the
federal short-term rate determined under
section 6621(b)(1) for any month applies
during the first calendar quarter beginning
after such month.
Section 6621(b)(2)(B) provides that in
determining the addition to tax under sec-
tion 6654 for failure to pay estimated tax
for any taxable year, the federal short-term
rate that applies during the third month fol-
lowing such taxable year also applies dur-
ing the first 15 days of the fourth month
following such taxable year.
Section 6621(b)(3) provides that the
federal short-term rate for any month is
the federal short-term rate determined
during such month by the Secretary in
accordance with § 1274(d), rounded to the
nearest full percent (or, if a multiple of
1
/2
of 1 percent, the rate is increased to the
next highest full percent).
Notice 88–59, 1988–1 C.B. 546, an-
nounced that, in determining the quarterly
interest rates to be used for overpayments
and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,
pursuant to section 6622, is subject to daily
compounding.
Rounded to the nearest full percent, the
federal short-term rate based on daily com-
pounding determined during the month of
October 2006 is 5 percent. Accordingly, an
overpayment rate of 8 percent (7 percent
in the case of a corporation) and an under-
payment rate of 8 percent are established
for the calendar quarter beginning January
1, 2007. The overpayment rate for the por-
tion of a corporate overpayment exceeding
$10,000 for the calendar quarter beginning
January 1, 2007, is 5.5 percent. The un-
derpayment rate for large corporate under-
payments for the calendar quarter begin-
ning January 1, 2007, is 10 percent. These
rates apply to amounts bearing interest dur-
ing that calendar quarter.
The 8 percent rate also applies to esti-
mated tax underpayments for the first cal-
endar quarter in 2007 and for the first 15
days in April 2007.
Interest factors for daily compound in-
terest for annual rates of 5.5 percent, 7 per-
December 26, 200611432006–52 I.R.B.

cent, 8 percent, and 10 percent are pub-
lished in Tables 16, 19, 21, and 25 of Rev.
Proc. 95–17, 1995–1 C.B. 556, 570, 573,
575, and 579.
Annual interest rates to be compounded
daily pursuant to section 6622 that apply
for prior periods are set forth in the tables
accompanying thisrevenue ruling.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Crystal Foster of the Office of Asso-
ciate Chief Counsel (Procedure & Admin-
istration). For further information regard-
ing this revenue ruling, contact Ms. Foster
at (202) 622–7198 (not a toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDI
NG DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATE
In 1995–1 C.B.
DAILY RATE TABLE
Before Jul. 1, 19756%Table 2, pg. 557
Jul. 1, 1975—Jan. 31, 19769%Table 4, pg. 559
Feb. 1, 1976—Jan. 31, 19787%Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 19806%Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 198212%Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 198220%Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 198316%Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 198311%Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 198411%Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 198411%Table 75, pg. 629
Jan. 1, 1985—Jun. 30, 198513%Table 31, pg. 585
Jul. 1, 1985—Dec. 31, 198511%Table 27, pg. 581
Jan. 1, 1986—Jun. 30, 198610%Table 25, pg. 579
Jul. 1, 1986—Dec. 31, 19869%Table 23, pg. 577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1987—Mar. 31, 19878%215759%23577
Apr. 1, 1987—Jun. 30, 19878%215759%23577
Jul.
1, 1987—Sep. 30, 1987
8%215759%23577
Oct. 1, 1987—Dec. 31, 19879%2357710%25579
Jan. 1, 1988—Mar. 31, 198810%7362711%75629
Apr
. 1, 1988—Jun. 30, 1988
9%7162510%73627
Jul. 1, 1988—Sep. 30, 19889%7162510%73627
Oct. 1, 1988—Dec. 31, 198810%7362711%75629
Ja
n. 1, 1989—Mar. 31, 1989
10%2557
9
11%2758
1
Apr. 1, 1989—Jun. 30, 198911%2758112%29583
Jul. 1, 1989—Sep. 30, 198911%2758112%29583
O
ct. 1, 1989—Dec. 31, 1989
1
0
%2
5
5
79
1
1
%2
7
5
81
Jan. 1, 1990—Mar. 31, 199010%2557911%27581
Apr. 1, 1990—Jun. 30, 199010%2557911%27581
Jul. 1, 1990—Sep. 30, 199010%2557911%27581
Oct. 1, 1990—Dec. 31, 199010%2557911%27581
Jan. 1, 1991—Mar. 31, 199110%2557911%27581
Apr. 1, 1991—Jun. 30, 19919%2357710%25579
Jul. 1, 1991—Sep. 30, 19919%2357710%25579
Oct. 1, 1991—Dec. 31, 19919%2357710%25579
Jan. 1, 1992—Mar. 31, 19928%696239%71625
Apr. 1, 1992—Jun. 30, 19927%676218%69623
Jul. 1, 1992—Sep. 30, 19927%676218%69623
2006–52 I.R.B.1144December 26, 2006

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998 – Continued
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Oct. 1, 1992—Dec. 31, 19926%656197%67621
Jan. 1, 1993—
Mar. 31, 1993
6%175717%19573
Apr. 1, 1993—Jun. 30, 19936%175717%19573
Jul. 1, 1993—Sep. 30, 19936%175717%19573
Oct. 1, 1993
—Dec. 31, 1993
6%175717%19573
Jan. 1, 1994—Mar. 31, 19946%175717%19573
Apr. 1, 1994—Jun. 30, 19946%175717%19573
Jul. 1, 199
4—Sep. 30, 1994
7%195738%21575
Oct. 1, 1994—Dec. 31, 19948%215759%23577
Jan. 1, 1995—Mar. 31, 19958%215759%23577
Apr. 1, 19
95—Jun. 30, 1995
9%2357710%25579
Jul. 1, 1995—Sep. 30, 19958%215759%23577
Oct. 1, 1995—Dec. 31, 19958%215759%23577
Jan. 1, 1
996—Mar. 31, 1996
8%696239%71625
Apr. 1, 1996—Jun. 30, 19967%676218%69623
Jul. 1, 1996—Sep. 30, 19968%696239%71625
Oct. 1,
1996—Dec. 31, 1996
8%696239%71625
Jan. 1, 1997—Mar. 31, 19978%215759%23577
Apr. 1, 1997—Jun. 30, 19978%215759%23577
Jul. 1,
1997—Sep. 30, 1997
8%215759%23577
Oct. 1, 1997—Dec. 31, 19978%215759%23577
Jan. 1, 1998—Mar. 31, 19988%215759%23577
Apr. 1
, 1998—Jun. 30, 1998
7%195738%21575
Jul. 1, 1998—Sep. 30, 19987%195738%21575
Oct. 1, 1998—Dec. 31, 19987%195738%21575
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NON
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RA
TE
TA
BLE
PG
Jan. 1, 1999—Mar. 31, 19997%19573
Ap
r. 1, 1999—Jun. 30, 1999
8%2157
5
Jul. 1, 1999—Sep. 30, 19998%21575
Oct. 1, 1999—Dec. 31, 19998%21575
J
an. 1, 2000—Mar. 31, 2000
8
%
6
9
6
23
Apr. 1, 2000—Jun. 30, 20009%71625
Jul. 1, 2000—Sep. 30, 20009%71625
Oct. 1, 2000—Dec. 31, 20009%71625
Jan. 1, 2001—Mar. 31, 20019%23577
Apr. 1, 2001—Jun. 30, 20018%21575
Jul. 1, 2001—Sep. 30, 20017%19573
Oct. 1, 2001—Dec. 31, 20017%19573
Jan. 1, 2002—Mar. 31, 20026%17571
Apr. 1, 2002—Jun. 30, 20026%17571
Jul. 1, 2002—Sep. 30, 20026%17571
Oct. 1, 2002—Dec. 31, 20026%17571
Jan. 1, 2003—Mar. 31, 20035%15569
Apr. 1, 2003—Jun. 30, 20035%15569
Jul. 1, 2003—Sep. 30, 20035%15569
Oct. 1, 2003—Dec. 31, 20034%13567
Jan. 1, 2004—Mar. 31, 20044%61615
December 26, 200611452006–52 I.R.B.

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS – Continued
1995–1 C.B.
RATETABLEPG
Apr. 1, 2004—Jun. 30, 20045%63617
Jul. 1, 2004—Sep. 30, 20044%61615
Oct. 1, 2004—Dec. 31, 20045%63617
Jan. 1, 2005—Mar. 31, 20055%15569
Apr. 1, 2005—Jun. 30, 20056%17571
Jul. 1, 2005—Sep. 30, 20056%17571
Oct. 1, 2005—Dec. 31, 20057%19573
Jan. 1, 2006—Mar. 31, 20067%19573
Apr. 1, 2006—Jun. 30, 20067%19573
Jul. 1, 2006—Sep. 30, 20068%21575
Oct. 1, 2006—Dec. 31, 20068%21575
Jan. 1, 2007—Mar. 31, 20078%21575
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1
, 1999—Mar. 31, 1999
6%175717%19573
Apr. 1, 1999—Jun. 30, 19997%195738%21575
Jul. 1, 1999—Sep. 30, 19997%195738%21575
Oct. 1
, 1999—Dec. 31, 1999
7%195738%21575
Jan. 1, 2000—Mar. 31, 20007%676218%69623
Apr. 1, 2000—Jun. 30, 20008%696239%71625
Jul.
1, 2000—Sep. 30, 2000
8%696239%71625
Oct. 1, 2000—Dec. 31, 20008%696239%71625
Jan. 1, 2001—Mar. 31, 20018%215759%23577
Apr
. 1, 2001—Jun. 30, 2001
7%195738%21575
Jul. 1, 2001—Sep. 30, 20016%175717%19573
Oct. 1, 2001—Dec. 31, 20016%175717%19573
Ja
n. 1, 2002—Mar. 31, 2002
5%1556
9
6%1757
1
Apr. 1, 2002—Jun. 30, 20025%155696%17571
Jul. 1, 2002—Sep. 30, 20025%155696%17571
O
ct. 1, 2002—Dec. 31, 2002
5
%
1
5
5
69
6
%
1
7
5
71
Jan. 1, 2003—Mar. 31, 20034%135675%15569
Apr. 1, 2003—Jun. 30, 20034%135675%15569
J
ul. 1, 2003—Sep. 30, 2003
4
%
1
3
5
67
5
%
1
5
5
69
Oct. 1, 2003—Dec. 31, 20033%115654%13567
Jan. 1, 2004—Mar. 31, 20043%596134%61615
Apr. 1, 2004—Jun. 30, 20044%616155%63617
Jul. 1, 2004—Sep. 30, 20043%596134%61615
Oct. 1, 2004—Dec. 31, 20044%616155%63617
Jan. 1, 2005—Mar. 31, 20054%135675%15569
Apr. 1, 2005—Jun. 30, 20055%155696%17571
Jul. 1, 2005—Sep. 30, 20055%155696%17571
Oct. 1, 2005—Dec. 31, 20056%175717%19573
2006–52 I.R.B.1146December 26, 2006

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS – Continued
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 2006—Mar. 31, 20066%175717%19573
Apr. 1, 2006—
Jun. 30, 2006
6%175717%19573
Jul. 1, 2006—Sep. 30, 20067%195738%21575
Oct. 1, 2006—Dec. 31, 20067%195738%21575
Jan. 1, 2007
—Mar. 31, 2007
7%195738%21575
TABLE OF IN
TEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1991—Mar. 31, 199113%31585
Apr. 1, 1991—Jun. 30, 199112%29583
Jul. 1, 1991—Sep. 30, 199112%29583
Oct. 1, 1991—Dec. 31, 199112%29583
Jan. 1, 1992—Mar. 31, 199211%75629
Apr. 1, 1992—Jun. 30, 199210%73627
Jul. 1, 1992—Sep. 30, 199210%73627
Oct. 1, 1992—Dec. 31, 19929%71625
Jan. 1, 1993—Mar. 31, 19939%23577
Apr. 1, 1993—Jun. 30, 19939%23577
Jul. 1, 1993—Sep. 30, 19939%23577
Oct. 1, 1993—Dec. 31, 19939%23577
Jan. 1, 1994—Mar. 31, 19949%23577
Apr. 1, 1994—Jun. 30, 19949%23577
Jul. 1, 1994—Sep. 30, 199410%25579
Oct. 1, 1994—Dec. 31, 199411%27581
Jan. 1, 1995—Mar. 31, 199511%27581
Apr. 1, 1995—Jun. 30, 199512%29583
Jul. 1, 1995—Sep. 30, 199511%27581
Oct. 1, 1995—Dec. 31, 199511%27581
Jan. 1, 1996—Mar. 31, 199611%75629
Apr. 1, 1996—Jun. 30, 199610%73627
Jul. 1, 1996—Sep. 30, 199611%75629
Oct. 1, 1996—Dec. 31, 199611%75629
Jan. 1, 1997—Mar. 31, 199711%27581
Apr. 1, 1997—Jun. 30, 199711%27581
Jul. 1, 1997—Sep. 30, 199711%27581
Oct. 1, 1997—Dec. 31, 199711%27581
Jan. 1, 1998—Mar. 31, 199811%27581
Apr. 1, 1998—Jun. 30, 199810%25579
Jul. 1, 1998—Sep. 30, 199810%25579
Oct. 1, 1998—Dec. 31, 199810%25579
Jan. 1, 1999—Mar. 31, 19999%23577
Apr. 1, 1999—Jun. 30, 199910%25579
Jul. 1, 1999—Sep. 30, 199910%25579
Oct. 1, 1999—Dec. 31, 199910%25579
Jan. 1, 2000—Mar. 31, 200010%73627
Apr. 1, 2000—Jun. 30, 200011%75629
December 26, 200611472006–52 I.R.B.

TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT – Continued
1995–1 C.B.
RATETABLEPG
Jul. 1, 2000—Sep. 30, 200011%75629
Oct. 1, 2000—Dec. 31, 200011%75629
Jan. 1, 2001—
Mar. 31, 2001
11%27581
Apr. 1, 2001—Jun. 30, 200110%25579
Jul. 1, 2001—Sep. 30, 20019%23577
Oct. 1, 2001
—Dec. 31, 2001
9%23577
Jan. 1, 2002—Mar. 31, 20028%21575
Apr. 1, 2002—Jun. 30, 20028%21575
Jul. 1, 200
2—Sep. 30, 2002
8%21575
Oct. 1, 2002—Dec. 30, 20028%21575
Jan. 1, 2003—Mar. 31, 20037%19573
Apr. 1, 20
03—Jun. 30, 2003
7%19573
Jul. 1, 2003—Sep. 30, 20037%19573
Oct. 1, 2003—Dec. 31, 20036%17571
Jan. 1, 2
004—Mar. 31, 2004
6%65619
Apr. 1, 2004—Jun. 30, 20047%67621
Jul. 1, 2004—Sep. 30, 20046%65619
Oct. 1,
2004—Dec. 31, 2004
7%67621
Jan. 1, 2005—Mar. 31, 20057%19573
Apr. 1, 2005—Jun. 30, 20058%21575
Jul. 1
, 2005—Sep. 30, 2005
8%21575
Oct. 1, 2005—Dec. 31, 20059%23577
Jan. 1, 2006—Mar. 31, 20069%23577
Apr.
1, 2006—Jun. 30, 2006
9%23577
Jul. 1, 2006—Sep. 30, 200610%25579
Oct. 1, 2006—Dec. 31, 200610%25579
Jan
. 1, 2007—Mar. 31, 2007
10%25579
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1995—Mar. 31, 19956.5%18572
Apr. 1, 1995—Jun. 30, 19957.5%20574
Jul. 1, 1995—Sep. 30, 19956.5%18572
Oct. 1, 1995—Dec. 31, 19956.5%18572
Jan. 1, 1996—Mar. 31, 19966.5%66620
Apr. 1, 1996—Jun. 30, 19965.5%64618
Jul. 1, 1996—Sep. 30, 19966.5%66620
Oct. 1, 1996—Dec. 31, 19966.5%66620
Jan. 1, 1997—Mar. 31, 19976.5%18572
Apr. 1, 1997—Jun. 30, 19976.5%18572
Jul. 1, 1997—Sep. 30, 19976.5%18572
Oct. 1, 1997—Dec. 31, 19976.5%18572
Jan. 1, 1998—Mar. 31, 19986.5%18572
Apr. 1, 1998—Jun. 30, 19985.5%16570
Jul. 1, 1998—Sep. 30, 19985.5%16570
Oct. 1, 1998—Dec. 31, 19985.5%16570
Jan. 1, 1999—Mar. 31, 19994.5%14568
Apr. 1, 1999—Jun. 30, 19995.5%16570
Jul. 1, 1999—Sep. 30, 19995.5%16570
2006–52 I.R.B.1148December 26, 2006

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS E
XCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT – Continued
1995–1 C.B.
RATETABLEPG
Oct. 1, 1999—Dec. 31, 19995.5%16570
Jan. 1, 2000—Mar. 31, 20005.5%64618
Apr. 1, 2000—Jun. 30, 20006.5%66620
Jul. 1, 2000—Sep. 30, 20006.5%66620
Oct. 1, 2000—Dec. 31, 20006.5%66620
Jan. 1, 2001—Mar. 31, 20016.5%18572
Apr. 1, 2001—Jun. 30, 20015.5%16570
Jul. 1, 2001—Sep. 30, 20014.5%14568
Oct. 1, 2001—Dec. 31, 20014.5%14568
Jan. 1, 2002—Mar. 31, 20023.5%12566
Apr. 1, 2002—Jun. 30, 20023.5%12566
Jul. 1, 2002—Sep. 30, 20023.5%12566
Oct. 1, 2002—Dec. 31, 20023.5%12566
Jan. 1, 2003—Mar. 31, 20032.5%10564
Apr. 1, 2003—Jun. 30, 20032.5%10564
Jul. 1, 2003—Sep. 30, 20032.5%10564
Oct. 1, 2003—Dec. 31, 20031.5%8562
Jan. 1, 2004—Mar. 31, 20041.5%56610
Apr. 1, 2004—Jun. 30, 20042.5%58612
Jul. 1, 2004—Sep. 30, 20041.5%56610
Oct. 1, 2004—Dec. 31, 20042.5%58612
Jan. 1, 2005—Mar. 31, 20052.5%10564
Apr. 1, 2005—Jun. 30, 20053.5%12566
Jul. 1, 2005—Sep. 30, 20053.5%12566
Oct. 1, 2005—Dec. 31, 20054.5%14568
Jan. 1, 2006—Mar. 31, 20064.5%14568
Apr. 1, 2006—Jun. 30, 20064.5%14568
Jul. 1, 2006—Sep. 30, 20065.5%16570
Oct. 1, 2006—Dec. 31, 20065.5%16570
Jan. 1, 2007—Mar. 31, 20075.5%16570
December 26, 200611492006–52 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Weighted Average Interest
Rates Update
Notice 2006–111
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code. In addi-
tion, it provides guidance as to the interest
rate on 30-year Treasury securities under
§ 417(e)(3)(A)(ii)(II).
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections 412(b)(5)(B)(ii) and 412(l)(7)
(C)(i), as amended by the Pension Funding
EquityActof2004andbythePensionPro-
tection Act of 2006, provide that the inter-
est rates used to calculate current liability
and to determine the required contribution
under § 412(l) for plan years beginning in
2004 through 2007 must be within a per-
missible range based on the weighted av-
erage of the rates of interest on amounts
invested conservatively in long term in-
vestment grade corporate bonds during the
4-year period ending on the last day before
the beginning of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–36 I.R.B. 366.
The composite corporate bond rate for
November 2006 is 5.77 percent. Pursuant
to Notice 2004–34, the Service has de-
termined this rate as the average of the
monthly yields for the included corporate
bond indices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Corporate
Bond90% to 100%
Beginning in:WeightedPermissible
MonthYearAverageRange
December20065.795.21 to 5.79
30-YEAR TREASURY SECURITIES
INTEREST RATE
Section 417(e)(3)(A)(ii)(II) defines
the applicable interest rate, which must
be used for purposes of determining the
minimum present value of a participant’s
benefit under § 417(e)(1) and (2), as the
annual rate of interest on 30-year Treasury
securities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
ble interest rate for a month is the annual
interest rate on 30-year Treasury securi-
ties as specified by the Commissioner for
that month in revenue rulings, notices or
other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Treasury
securities for November 2006 is 4.69 per-
cent. The Service has determined this rate
as the monthly average of the daily deter-
mination of yield on the 30-year Treasury
bond maturing in February 2036.
Drafting Information
The principal authors of this notice are
Paul Stern and Tony Montanaro of the Em-
ployee Plans, Tax Exempt and Govern-
ment Entities Division. For further infor-
mation regarding this notice, please con-
tact the Employee Plans’ taxpayer assis-
tance telephone service at 877–829–5500
(a toll-free number), between the hours of
8:30 a.m. and 4:30 p.m. Eastern time,
Monday through Friday. Mr. Stern may be
reached at 202–283–9703. Mr. Montanaro
may be reached at 202–283–9714. The
telephone numbers in the preceding sen-
tences are not toll-free.
2006–52 I.R.B.1150December 26, 2006

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. 2006–55
TABLE OF CONTENTS
Part A. General
SECTION 1. PURPOSE........................................................................................... 1151
SECTION 2. WHAT’S NEW........................................................................................ 1152
SECTION 3. GENERAL RULES FOR PAPER FORMS W–2 AND W–3.................................................. 1153
SECTION 4. GENERAL RULES FOR FILING FORMS W–2 (COPY A) ELECTRONICALLY............................... 1154
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
................................................................................ 1154
SECTION 1B. SPECIFICATIONS FOR LASER-PRINTED SUBSTITUTE FORM W–2 (COPY A) AND FORM
W–3 FILED WITH THE SSA
........................................................................... 1156
SECTION 2. REQUIREMENTS FOR SUBSTITUTE FORMS FURNISHED TO EMPLOYEES (COPIES B, C,
AND 2 OF FORM W–2)
................................................................................ 1157
Part C. Additional Instructions
SECTION 1. ADDITIONAL INSTRUCTIONS FOR FORM PRINTERS.................................................. 1160
SECTION 2. INSTRUCTIONS FOR EMPLOYERS.................................................................... 1160
SECTION 3. OMB REQUIREMENTS FOR BOTH RED-INK AND LASER-PRINTED SUBSTIT
UTE FORMS
................. 1161
SECTION 4. REPRODUCIBLE COPIES OF FORMS.................................................................. 1161
SECTION 5. EFFECT ON OTHER DOCUMENTS.................................................................... 1162
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 2006 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–2 or 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 2006 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.” The SSA-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
*
taxforms@irs.gov(the asterisk must be included in the address). Please enter “Substitute Forms” on the subject line. Or send your
questions to:
December 26, 200611512006–52 I.R.B.

Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:T:T:SP, IR 6406
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 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 forthe 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. You may also send questions to the
call site via the Internet atm
ccirp@irs.gov. 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, Request for
Waiver From Filing Information Returns Electronically/Magnetically) 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 or
Magnetically, for information on waivers and extensions of time.
.05The following form instructions and publications provide more detailed filing procedures for certain information returns:
•2006 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
.01The SSA will no longer accept magnetic media submissions of wage and tax information. The last year for filing Forms W–2
on tapes and cartridges was tax year 2004 (forms timely filed with the SSA in 2005). The last year for filing Forms W–2 on 3
1
/2inch
diskette was tax year 2005 (forms timely filed with the SSA in 2006).
.02We added a checkbox for Form 944, Employer’s ANNUAL Federal Tax Return, to box b of Form W–3. Form 944 for 2006 is
a newly developed form. References to Form 944 have been included as appropriate.
.03We added a separate entry field to box e (employee’s name) onForm W–2 for employee suffix names such as “Jr.” or “Sr.”
.04We made the employee instructions on the back of Copy C easier to read by increasing their type size and continuing the
instructions on the back of Copy 2. See Section 1.05 of Part C.
.05As a reminder, payee statements (Copies B, C, and 2 of Form W–2) may be furnished electronically if employees give their
consent. See also Publication 15–A, Employer’s Supplemental Tax Guide.
.06We added two new codes (AA and BB) for use in box 12 of Form W–2. See the 2006 Instructions for Forms W–2 and W–3
for details.
.07Form W–3PR is 7.3 inches wide and should be printed on 8.5 by 11-inch paper usinga .5-inch top margin with.6-inch left
and right margins.
.08We are soliciting comments concerning the use of logos and advertising on substitute employeestatements. See Section 3.01
of Part A.
.09We made editorial changes. Redundancies were eliminated as much as possible.
2006–52 I.R.B.1152December 26, 2006

Section 3. General Rules for Paper Forms W–2 and W–3
.01Employers not filing electronically must file paper Forms W–2 (Copy A) along with Form W–3 with the SSA by using either
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 also conform to the s
pecifications as outlinedinthisrevenue
procedure. These forms require the form designation (“W–2AS,” “W–2GU,” “W–2VI”) on C
opy A to be in black ink. If you are an
employer in the Commonwealth of the Northern Mariana Islands, you must contact the Di
vision of Revenue and Taxation, Capitol
Hill, Saipan, MP, 96950, to get Form W–2CM and instructions for completing and filing
the form.
Employers who file with the SSAelectronically or on paper may design their own state
ments to furnish to employees. These
employee statements designed by employers must comply with the requirements shown
in Parts B and C.
The IRS has received questions concerningwhether a logo or an identifying slogan fo
r an employer or other preparer is acceptable
on the substitute employee statements. We were also asked whether an advertisement
for tax preparation software or other marketing
materials are acceptable on, or attached to, the substitute employee statements. T
he IRS is soliciting comments regarding these ques-
tions. The IRS anticipates responding to these questions, after the comments have
been considered, in a future update of this revenue
procedure. Send your comments to the IRS at the address provided in Section 1.03 o
fPartA.
.02Red-ink substitute forms that completely conform to the specifications cont
ained 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-pri
nter by following all guidelines and
specifications (also see Section 1B of Part B). In general, regardless of the met
hodofenteringdata,usingblackinkonFormsW–2
and W–3 provides better readability for processing by scanning equipment. Colo
rs other 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 small
er than 10-point.
Note.With the exception of the identifying number 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.
(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
to*
taxforms@irs.gov(the asterisk must be included in the address). 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 6406
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
December 26, 200611532006–52 I.R.B.

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 are cautioned against overstock-
ing supplies of privately-printed substitutes.
.08Separate instructions for Forms W–2 and W–3 are provided in the 2006 Instructions for Forms W–2 and W–3. Form W–3
shouldbeusedonlytotransmitpaperFormsW–2(CopyA).FormW–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 2006 Forms
W–2 (Copy A) during a calendar year unless the IRS granted a waiver. For details, get the 2006 Instructions for Forms W–2 and
W–3. The SSA publication MMREF–1, Magnetic Media Reporting andElectronic Filing, 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 MMREF–1
(and supplements) due to any subsequent changes in specifications and procedures.
.02You may obtain a copy of the MMREF–1 by:
•Accessing the SSA website atwww.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 atwww.socialsecu-
rity.gov/employer/empcontacts.htm), or
•Calling the SSA’s Employer Reporting Services staff at 1–800–772–6270.
.03Electronic filers do not file a paper Form W–3. See the SSA publication MMREF–1 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 filersto 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.
.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
2006–52 I.R.B.1154December 26, 2006

•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 bein 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 paymentand 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 7.5 inches 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. For both Form W–2 (Copy A) and Form W–3, the combination width of box a (Control
number) and the box containing the identifying number must be 2.5 inches.
Note.The identifying number must be printed in nonreflective black ink in OCR-A font of 10 characters per inch.
.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 into11-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 (Copy A) 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
December 26, 200611552006–52 I.R.B.

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 2006 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 format must 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’sEIN 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 thatare 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. Hot wax and cold carbon spots are not permitted for Form W–2 (Copy A). Interleaved carbon
should be black and must be of good quality to assure legibility onall copies and to avoid smudging. Fading must 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 acceptable 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 Catalog Number (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 to as 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.
(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 (“2006”) on
Forms W–2 (Copy A) and W–3 must be in 20-point Arial font or a close approximation.
2006–52 I.R.B.1156December 26, 2006

(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 the applicable “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”shouldbeprogrammedtobeprintedandcentereddirectlybelowtheapplicableboxtitle.
(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 2006 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 2006 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.org.
.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 a copy of SSA’s dated approval notice supplied to that vendor.
Section 2. Requirements for Substitute Forms Furnished to Employees (Copies B, C, and 2
of Form W–2)
Note.Printers are cautioned that therules in Part B, Section 2 (this section), applyonly to employee copies of Form W–2 (Copies
B, C, and 2).Paper filers who send Forms W–2 (Copy A) to the SSA must follow the requirements in Part B, Sections 1A and/or 1B
above.
.01All employers (including those who file electronically) 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 rules are guidelines for preparing employee
copies.
December 26, 200611572006–52 I.R.B.

The dimensions of these copies (Copies B, C, and 2), but not Copy A, may differ from the dimensions of the official IRS form to
allow space for reporting additional information, including additional entries such as withholding for health insurance, union dues,
bonds, or charity in box 14. The limitation of a maximum of 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 now be furnished electronically, if employees give their consent (as
described in Treasury Regulations Section 31.6051–1(j)). See also 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 2006 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).
.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 employees should 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 transferpaper employee copies must be clearly legible. Hot wax and cold-carbon spots are
not permitted for employee copies. All copies must be able to bephotocopied. Interleaved carbonshouldbeblackandmustbeof
good quality to assure legibility on all copies and to avoid smudging. 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”) and the word “Void”
and its associated checkbox 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.
•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:
2006–52 I.R.B.1158December 26, 2006

b) Employer identification number (EIN),
c) Employer’s name, address, and ZIP code,
d) Employee’s social security number,
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 (b-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 a (“Control number”) is not required.
.09All copies of Form W–2 furnished to employees must clearly show the form nu
mber, 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 Ta
x Statement.” It is recommended (but not required)
that this be located on the bottom left of substitute Forms W–2. The referen
ce to the “Department of the Treasury — Internal Revenue
Service” must be on all copies of substitute Forms W–2 furnished to employe
es. 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 t
he 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 Form W–2. If the substitute employee copies are not
labeled as to the disposition of the copies, then written notification using similar wordingmust be provided to each employee.
.11The tax year (2006) 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).
.12Boxes1,2,and9(ifapplicable)onCopyBmustbeoutlinedinbold 2-point rule or highlighted in some manner to distinguish
them. If “Allocated tips” are being reported, it is recommended (but not required) 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)
.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 2006 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 2006 Instructions for Forms W–2 and W–3.)
December 26, 200611592006–52 I.R.B.

.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 thosecontained 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 any employee 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, followed sequentially by perforated
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 copytoberetainedbyemployers(CopyDofFormW–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 filed with the SSA. Carbon copies and photocopies are unac-
ceptable.
.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.
.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 a (Control number) on Forms W–2 or W–3 may not touch any vertical or horizontal lines and should be
centered in the box.
2006–52 I.R.B.1160December 26, 2006

.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 with the 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-ROM (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-ROM. 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 of Forms W–2 and W–3obtained from these sources are for
information purposes only.
.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-ROM. The CD will be available for the upcoming filing season. Order Publica-
tion 1796, IRS Federal Tax Products CD-ROM, by using the IRS website atw
ww.irs.gov/cdordersor by calling 1–877–CDFORMS
(1–877–233–6767).
December 26, 200611612006–52 I.R.B.

Section5.EffectonOtherDocuments
.01Revenue Procedure 2005–65, 2005–38 I.R.B. 564, dated September 19, 2005 (reprinted as Publication 1141, Revised 10–2005),
is superseded.
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)
2006–52 I.R.B.1162December 26, 2006

December 26, 200611632006–52 I.R.B.

2006–52 I.R.B.1164December 26, 2006

December 26, 200611652006–52 I.R.B.

2006–52 I.R.B.1166December 26, 2006

December 26, 200611672006–52 I.R.B.

2006–52 I.R.B.1168December 26, 2006

26 CFR 601.204: Changes in accounting periods and
in methods of accounting.
(Also Part I, §§ 446, 448, 481.)
Rev. Proc. 2006–56
SECTION 1. PURPOSE
This revenue procedure provides the
exclusive procedures under which a tax-
payer may request the consent of the
Commissioner to make certain changes to,
from, or within a nonaccrual-experience
(NAE) method of accounting and to adopt
certain NAE methods.
SECTION 2. BACKGROUND
.01 Section 448(d)(5) of the Internal
Revenue Code provides a special NAE
method of accounting with respect to
amounts to be received by certain taxpay-
ers for the performance of services.
.02 The NAE method is available only
to a taxpayer using an accrual method of
accounting that either provides services in
a field described in § 448(d)(2)(A) (health,
law, engineering, architecture, accounting,
actuarial science, performing arts, or con-
sulting), or that meets the $5 million an-
nual gross receipts test of § 448(c). The
taxpayer may not charge interest or penal-
ties for failure to timely pay the amount
charged for the performance of services.
.03 On September 6, 2006, the Internal
Revenue Service and Treasury Depart-
ment published final regulations under
§ 1.448–2 of the Income Tax Regulations
(T.D. 9285, 71 FR 52430, 2006–41 I.R.B.
656). The final regulations apply to tax-
able years ending on or after August 31,
2006. The preamble to the final regula-
tions states that the Service and Treasury
Department intend to issue administra-
tive guidance providing procedures for
changes in a NAE method of accounting
and to adopt certain NAE methods of ac-
counting.
.04 Sections 446(e) and 1.446–1(e)(2)
state that, except as otherwise provided,
a taxpayer must secure the consent of the
Commissioner before changing a method
of accounting for federal income tax pur-
poses. Section 1.446–1(e)(3)(ii) autho-
rizes the Commissioner to prescribe ad-
ministrative procedures setting forth the
limitations, terms, and conditions neces-
sary to permit a taxpayer to obtain consent
to change a method of accounting in accor-
dance with § 446(e).
.05 Section 1.446–1(e)(1) states that a
taxpayer filing its first return may adopt
any permissible method of accounting and
that a taxpayer may adopt any permissible
method in connection with each separate
and distinct trade or business, the income
from which is reported for the first time.
.06 Rev. Proc. 2002–9, 2002–1 C.B.
327 (as modified and clarified by An-
nouncement 2002–17, 2002–1 C.B. 561,
modified and amplified by Rev. Proc.
2002–19, 2002–1 C.B. 696, and ampli-
fied, clarified and modified by Rev. Proc.
2002–54, 2002–2 C.B. 432,) provides pro-
cedures for a taxpayerto obtain automatic
consent of the Commissioner to change to
a method of accounting described in the
Appendix of Rev. Proc. 2002–9.
.07 Rev. Proc. 97–27, 1997–1 C.B. 680
(as modified and amplified by Rev. Proc.
2002–19, 2002–1 C.B. 696, and ampli-
fied and clarified by Rev. Proc. 2002–54,
2002–2 C.B. 432), provides procedures for
a taxpayer to obtain advance consent of the
Commissioner to change its method of ac-
counting.
.08 Section 481(a) requires the adjust-
ments necessary to prevent amounts from
being duplicated or omitted when a tax-
payer’s taxable income is determined un-
der a method of accounting different from
the method used to determine taxable in-
come for the preceding taxable year.
SECTION 3. SCOPE
.01 This revenue procedure applies to a
taxpayer that wants to make one or more
of the following changes or adoptions:
(1) Change to a safe harbor NAE
method provided in § 1.448–2(f)(1) (the
revenue-based moving average method),
(f)(2) (the actual experience method),
(f)(3) (the modified Black Motor method),
(f)(4) (the modified moving average
method), or (f)(5) (the alternative nonac-
crual-experience method);
(2) Change to a periodic system (for
further guidance, see, for example, Notice
88–51, 1988–1 C.B. 535);
(3) Change from a NAE method to a
specific charge-off method;
(4) Change from a sub-method of
its current NAE method provided in
§ 1.448–2 regarding applicable periods to
another sub-method regarding applicable
periods that is permitted under § 1.448–2,
other than a change to exclude taxable
years from an applicable period under
§ 1.448–2(d)(6);
(5) Change from a sub-method of
its current NAE method provided in
§ 1.448–2 regarding tracing of recov-
eries to another sub-method regarding
tracing of recoveries permitted under
§ 1.448–2(f)(2)(iii);
(6) Change a sub-method unrelated to
the applicable period or to the tracing of
recoveries for a taxpayer currently using a
NAE method provided in § 1.448–2(f);
(7) Change to a NAE method other
than a safe harbor method provided in
§ 1.448–2(f)(1) through (5); or
(8) Adopt a NAE method other
than a safe harbor method provided in
§ 1.448–2(f)(1) through (5).
.02 This revenue procedure does not ap-
ply to a taxpayer that seeks to adopt one
of the safe harbor NAE methods provided
in § 1.448–2(f)(1) through (f)(5). A tax-
payer that seeks to adopt a safe harbor
NAE method provided in § 1.448–2(f)(1)
through (5) must follow the general rules
for adoption of a method of accounting in
§ 1.446–1(e)(1). Generally, a taxpayer is
not required to request advance consent or
file a Form 3115,Application for Change
in Accounting Method, to adopt a method
of accounting for the first time.
SECTION 4. APPLICATION
.01Automatic change in method of ac-
counting.
(1)In general. A taxpayer seeking to
make a change within the scope of section
3.01(1) through (5) of this revenue proce-
dure, in accordance with section 6.01 of
Rev. Proc. 2002–9, is granted the con-
sent of the Commissioner to change to a
method of accounting provided in the fi-
nal regulations, to a periodic system, or to
a specific charge-off method, as applica-
ble, provided that the taxpayer follows the
automatic change in method of accounting
provisions in Rev. Proc. 2002–9, or its
successor, subject to the following modi-
fications:
(a) The scope limitations in section 4.02
of Rev. Proc. 2002–9 do not apply for
the taxpayer’s first taxable year ending on
or after August 31, 2006. However, if
the taxpayer’s NAE method of account-
ing is an issue under consideration for tax-
December 26, 200611692006–52 I.R.B.

able years under examination, before an
appeals office, or before a federal court,
at the time the Form 3115 is filed with
the national office, the audit protection of
section 7 of Rev. Proc. 2002–9 does not
apply. A taxpayer’s NAE method of ac-
counting is an issue under consideration
for the taxable years under examination
if the taxpayer receives written notifica-
tion (for example, by examination plan, in-
formation document request, or notifica-
tion of proposed adjustments or income tax
examination changes) from the examining
agent(s) specifically citing the treatment of
the NAE method of accounting as an issue
under consideration.
(b) The designated automatic account-
ing method change number for changes in
method of accounting made pursuant to
this revenue procedure is No. 35; and
(c) A change in method of accounting
within section 3.01(1), (2), (3), or (5) of
this revenue procedure results in a § 481(a)
adjustment. A change in method of ac-
counting within section 3.01(4) of this rev-
enue procedure is made on a cut-off basis.
(2)Concurrent change to overall ac-
crual method and a NAE method of ac-
counting.
(a)First § 448 year. A taxpayer that is
within the scope of section 3.01(1) through
(5) of this revenue procedure that wants
to change to a NAE method of accounting
(with or without also changing to a peri-
odic system) and is required to change to
an overall accrual method of accounting
under § 448 and the regulations thereunder
must request to make both changes by fil-
ing one Form 3115, and the taxpayer must
follow the change in method of account-
ing provisions of § 1.448–1(h)(2). The
taxpayer must complete all applicable sec-
tions of Form 3115, including sections that
apply to the change to an overall accrual
method and to the change to the NAE
method, and must enter the automatic ac-
counting method change numbers for both
changes on Form 3115.
(b)Other automatic consent changes to
overall accrual method. A taxpayer that is
within the scope of section 3.01(1) through
(5) of this revenue procedure that wants
to change to a NAE method of account-
ing (with or without also changing to a
periodic system) and is eligible to change
to an overall accrual method of account-
ing under Appendix section 5.01 of Rev.
Proc. 2002–9, or its successor, must re-
quest to make both changes by filing one
Form 3115, and must follow the change
in method of accounting provisions un-
der Rev. Proc. 2002–9, or its successor.
The taxpayer must complete all applicable
sections of Form 3115, including sections
that apply to the change to an overall ac-
crual method and to the change to the NAE
method, and must enter the automatic ac-
counting method change numbers for both
changes on Form 3115.
.02Advance consent change in method
of accounting.
(1)In general. A taxpayer within the
scope of sections 3.01(6) or (7) of this rev-
enue procedure must follow the advance
consent change in method of accounting
procedures in Rev. Proc. 97–27, or its suc-
cessor.
(2)Concurrent change to an overall ac-
crual method of accounting and a NAE
method of accounting. A taxpayer within
the scope of section 3.01(6) or (7) of this
revenue procedure that wants to change
to a NAE method of accounting (with or
without also changing to a periodic sys-
tem) and also wants to change to an over-
all accrual method of accounting or to an
overall accrual method in conjunction with
the recurring item exception for which the
change to the overall accrual method is not
allowed under an automatic consent proce-
dure, must request to make both changes
by filing one Form 3115, and must follow
the change in method of accounting provi-
sions in Rev. Proc. 97–27, or its succes-
sor. Only one user fee is required for these
changes. The taxpayer must complete all
applicable sections of Form 3115, includ-
ing the sections that apply to the change
to an overall accrual method, and to the
change to the NAE method.
.03Procedures for certain adoptions by
taxpayers.
(1)In general. Normally, taxpayers are
not required to obtain advance consent in
order to adopt a method of accounting for
the first time. However, a taxpayer within
the scope of section 3.01(8) of this revenue
procedure must obtain advance consent of
the Commissioner in order to adopt a NAE
method other than a safe harbor method
provided in § 1.448–2(f)(1) through (5). In
order to obtain advance consent, a taxpayer
must follow the procedures for a change
in method of accounting. Specifically, a
taxpayer must file a Form 3115 and must
comply with the following provisions of
Rev. Proc. 97–27:
(a) Section 3, Definitions;
(b) Section 5, Procedures for Taxpayers
not under Examination;
(c) Section 8, General Application Pro-
cedures;
(d) Section 10, Effect of Consent; and
(e) Section 11, Review by District Di-
rector.
(2)Year of change. The year in which
the taxpayer adopts the NAE method un-
der this section 4.03 is treated as the “year
of change” for purposes of the rules, fil-
ing deadlines, and procedures under Rev.
Proc. 97–27.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2002–9 is modified and am-
plified to include these automatic changes
to a NAE method of accounting in the
APPENDIX.
SECTION 6. EFFECTIVE DATE
This revenue procedure is effective for
taxable years ending on or after August 31,
2006.
SECTION 7. DRAFTING
INFORMATION
The principal author of this revenue
procedure is W. Thomas McElroy, Jr., of
the Office of Associate Chief Counsel
(Income Tax and Accounting). For fur-
ther information regarding this revenue
procedure, contact Mr. McElroy at (202)
622–4970 (not a toll-free call).
2006–52 I.R.B.1170December 26, 2006

Part IV. Items of General Interest
Announcement of Disciplinary Actions Involving
Attorneys, Certified Public Accountants, Enrolled Agents,
and Enrolled Actuaries — Suspensions, Censures,
Disbarments, and Resignations
Announcement 2006-94
Under Title 31, Code of Federal Regu-
lations, Part 10, attorneys, certified public
accountants, enrolled agents, and enrolled
actuaries may not accept assistance from,
or assist, any person who is under disbar-
ment or suspension from practice before
the Internal Revenue Service if the assis-
tance relates to a matter constituting prac-
tice before the Internal Revenue Service
and may not knowingly aid or abet another
person to practice before the Internal Rev-
enue Service during a period of suspen-
sion, disbarment, or ineligibility of such
other person.
To enable attorneys, certified public
accountants, enrolled agents, and enrolled
actuaries to identify persons to whom
these restrictions apply, the Director, Of-
fice of Professional Responsibility, will
announce in the Internal Revenue Bulletin
their names, their city and state, their pro-
fessional designation, the effective date
of disciplinary action, and the period of
suspension. This announcement will ap-
pear in the weekly Bulletin at the earliest
practicable date after such action and will
continue to appear in the weekly Bulletins
for five successive weeks.
Consent Suspensions From Practice Before the Internal
Revenue Service
Under Title 31, Code of Federal Regu-
lations, Part 10, an attorney, certified pub-
lic accountant, enrolled agent, or enrolled
actuary, in order to avoid the institution
or conclusion of a proceeding for his or
her disbarment or suspension from prac-
tice before the Internal Revenue Service,
may offer his or her consent to suspension
from such practice. The Director, Office
of Professional Responsibility, in his dis-
cretion, may suspend an attorney, certified
public accountant, enrolled agent, or en-
rolled actuary in accordance with the con-
sent offered.
The following individuals have been
placed under consent suspension from
practice before the Internal Revenue Ser-
vice:
NameAddressDesignationDate of Suspension
Tomasulo, Maria V.Wantagh, NYCPAIndefinite
from
August 7, 2006
Maloy, Jr., Robert J.Galion, OHCPAIndefinite
from
August 15, 2006
Pate, Janet M.Broadview, NMCPAIndefinite
from
August 15, 2006
Scott, HowardMiami, FLAttorneyIndefinite
from
August 15, 2006
Adamic, Jonathan E.San Lorenzo, CACPAIndefinite
from
August 18, 2006
December 26, 200611712006–52 I.R.B.

NameAddressDesignationDate of Suspension
Becker, Ira S.Wilmette, ILCPAAugust 22, 2006
to
August 21, 2008
Snigur, Virginia IaquintaWarwick, NYAttorneyIndefinite
from
August 31, 2006
Galpern, Joel G.North Miami, FLCPAIndefinite
from
September 1, 2006
DiSiena, Frank E.Katonah, NYCPAIndefinite
from
September 4, 2006
Carusona, Thomas M.Huntington, NYAttorneyIndefinite
from
September 15, 2006
Shaikh, Firoz A.Melville, NYCPAIndefinite
from
September 15, 2006
Wickline, Ella L.Ronceverte, WVEnrolled AgentIndefinite
from
September 15, 2006
Smith, Daniel B.Garden City, NYCPAIndefinite
from
September 18, 2006
Carlin, Charles R.South Bend, INCPAIndefinite
from
October 1, 2006
Devine, Daniel M.Boca Raton, FLCPAIndefinite
from
October 1, 2006
Dupont, Hewitt, J.Daytona Beach, FLCPAIndefinite
from
October 1, 2006
Farrell, Raymond J.Matawan, NJAttorneyIndefinite
from
October 1, 2006
Kelligrew, John R.White Plains, NYAttorneyIndefinite
from
October 1, 2006
Klein, Robert B.Bardonia, NYEnrolled AgentIndefinite
from
October 1, 2006
Long, Gregory S.Hutchinson, KSAttorneyIndefinite
from
October 1, 2006
2006–52 I.R.B.1172December 26, 2006

NameAddressDesignationDate of Suspension
Moore, Ronald L.Cayce, SCCPAIndefinite
from
October 1, 2006
Schaffer, Robert J.Calverton, NYCPAIndefinite
from
October 1, 2006
Berlin, StanleyErie, PAAttorneyIndefinite
from
October 15, 2006
Briscoe, JackDrexel Hill, PAAttorneyIndefinite
from
October 15, 2006
Buzzeo, Michael V.New Canaan, CTCPAIndefinite
from
October 15, 2006
Sacco, John M.Pound Ridge, NYCPAIndefinite
from
October 15, 2006
Sheiman, Alan P.Sherman Oaks,CAEnrolled AgentIndefinite
from
October 15, 2006
Tourin, MarkMiami, FLCPAIndefinite
from
October 15, 2006
Burns, William J.Randolph, MAAttorneyIndefinite
from
October 16, 2006
Webb, Norman R.Daphne, ALCPAIndefinite
from
October 16, 2006
Brown, Guia EPHobe Sound, FLEnrolled AgentOctober 20, 2006
to
April 19, 2008
Gram, John A.Gainesville, GAAttorneyIndefinite
from
November 1, 2006
Herzog, Samuel A.Jericho, NYCPAIndefinite
from
November 1, 2006
Kellicker, John F.Cleveland, OHCPAIndefinite
from
November 1, 2006
Krieger, Robert M.Hampton, NHCPAIndefinite
from
November 1, 2006
Minsky, Neil J.Randolph, NJCPAIndefinite
from
November 1, 2006
December 26, 200611732006–52 I.R.B.

NameAddressDesignationDate of Suspension
O’Brien, TimothyNewton Center, MAAttorneyIndefinite
from
November 1, 2006
Sukenik, MartinKew Gardens, NYAttorneyIndefinite
from
November 1, 2006
Savoy, CassandraEast Orange, NJAttorneyIndefinite
from
November 7, 2006
Bonner, Charles B.Athens, GACPAIndefinite
from
November 15, 2006
Levine, Barton P.New York, NYAttorneyIndefinite
from
November 15, 2006
Taves, Joseph G.Provincetown, MACPAIndefinite
from
November 15, 2006
Young, RonaldFairfield, CTCPAIndefinite
from
November 16, 2006
Brush, Charles, H.Southbury, CTCPAIndefinite
from
December 1, 2006
Jacob, Robert T.Tucson, AZCPAIndefinite
from
December 15, 2006
Expedited Suspensions From Practice Before the Internal
Revenue Service
Under Title 31, Code of Federal Regu-
lations, Part 10, the Director, Office of Pro-
fessional Responsibility, is authorized to
immediately suspend from practice before
the Internal RevenueService any practi-
tioner who, within five years from the date
the expedited proceeding is instituted (1)
has had a license to practice as an attor-
ney, certified public accountant, or actuary
suspended or revoked for cause or (2) has
been convicted of certain crimes.
The following individuals have been
placed under suspension from practice be-
fore the Internal Revenue Service by virtue
of the expedited proceeding provisions:
NameAddressDesignationDate of Suspension
Williams, Donna M.York, PACPAIndefinite
from
July 25, 2006
Foushee, Wayne H.Winston-Salem, NCAttorneyIndefinite
from
August 3, 2006
2006–52 I.R.B.1174December 26, 2006

NameAddressDesignationDate of Suspension
Kronegold, Sheldon H.Englewood, NJAttorneyIndefinite
from
August 3, 2006
Norman, ClarenceBrooklyn, NYAttorneyIndefinite
from
August 3, 2006
Chin, ArnoldSan Francisco, CAAttorneyIndefinite
from
August 31, 2006
McCann, ThomasDes Moines, IAAttorneyIndefinite
from
August 31, 2006
Whaley, Daniel P.Hood, CAAttorneyIndefinite
from
August 31, 2006
Chukumba, Stephen C.Montclair, NJAttorneyIndefinite
from
September 12, 2006
Katz, Edward C.New York, NYAttorneyIndefinite
from
September 12, 2006
Kadunce, Darrell L.Butler,PAAttorneyIndefinite
from
September 18, 2006
Allen, Robert W.Torrance, CACPAIndefinite
from
September 21, 2006
Brown, Davin W.Raleigh, NCCPAIndefinite
from
September 21, 2006
Cunningham, R. ScottDalton, GAAttorneyIndefinite
from
September 21, 2006
Eilers, Tom D.Raleigh, NCCPAIndefinite
from
September 21, 2006
Gerdes, Roger A.Carpinteria, CAAttorneyIndefinite
from
September 21, 2006
Kurth, Richard FrederickDanville, ILAttorneyIndefinite
from
September 21, 2006
Mitchell, McArthur D.Charlotte, NCCPAIndefinite
from
September 21, 2006
December 26, 200611752006–52 I.R.B.

NameAddressDesignationDate of Suspension
Ragusa, Patricia A.Spring, TXCPAIndefinite
from
September 21, 2006
Wulfsberg, David E.Murrieta, CAAttorneyIndefinite
from
September 21, 2006
Cox, Brian J.Plymouth, MICPAIndefinite
from
September 25, 2006
Mandelman, Michael D.Mequon, WIAttorneyIndefinite
from
September 25, 2006
Miller, Steven L.Canal Winchester, OHAttorneyIndefinite
from
September 25, 2006
Felli, Jay A.Mequon, WIAttorneyIndefinite
from
October 2, 2006
Schoch V, Arch K.High Point, NCAttorneyIndefinite
from
October 2, 2006
Andre, Patrick F.Manchester, MOAttorneyIndefinite
from
October 12, 2006
Brill, Kevin MichaelDowners Grove, ILAttorneyIndefinite
from
October 12, 2006
Day, Richard G.Largo, FLAttorneyIndefinite
from
October 12, 2006
Dull, Kay E.Miami Shores, FLAttorneyIndefinite
from
October 12, 2006
Frank, Arthur J.Chicago, ILAttorneyIndefinite
from
October 12, 2006
Gackle, Thomas E.Plymouth, MIAttorneyIndefinite
from
October 12, 2006
Hamilton, Howard D.Fort Dodge, IAAttorneyIndefinite
from
October 12, 2006
Hodge, Robert M.Lafayette, LAAttorneyIndefinite
from
October 12, 2006
Lesyshen, Donna P.Waterloo, IAAttorneyIndefinite
from
October 12, 2006
2006–52 I.R.B.1176December 26, 2006

NameAddressDesignationDate of Suspension
Peiss, John H.Downers Grove, ILAttorneyIndefinite
from
October 12, 2006
Petty, James E.Austin, TXCPAIndefinite
from
October 12, 2006
Ruffin-Hudson, Linda C.Saint Louis, MOAttorneyIndefinite
from
October 12, 2006
Schaefer, James E.St. LouisPark, MNAttorneyIndefinite
from
October 12, 2006
Schmitt, Martha G.Minneapolis, MNAttorneyIndefinite
from
October 12, 2006
Shannon, Terrance J.Mission Viejo, CAAttorneyIndefinite
from
October 12, 2006
Smith, Matthew S.Denver, COAttorneyIndefinite
from
October 12, 2006
Swanson, RichardWest Chicago, ILCPAIndefinite
from
October 12, 2006
Thomas, Kenneth A.Farmers Branch, TXAttorneyIndefinite
from
October 12, 2006
Tomasa, Ryan H.Honolulu, HIAttorneyIndefinite
from
October 12, 2006
Williams, Jr., Harry D.San Antonio, TXAttorneyIndefinite
from
October 12, 2006
Wilson, Jr., Robert N.Ayer, MAAttorneyIndefinite
from
October 12, 2006
Yum, Chris ChulhoWoodbridge, VAAttorneyIndefinite
from
October 12, 2006
Dunham, Richard G.Irvine, CAEnrolled AgentIndefinite
from
October 15, 2006
Housman, DavidAlbuquerque, NMAttorneyIndefinite
from
October 15, 2006
Malitz, Charles P.Beachwood, OHCPAIndefinite
from
October 15, 2006
December 26, 200611772006–52 I.R.B.

NameAddressDesignationDate of Suspension
Emig, Robert W.Houston, TXCPAIndefinite
from
October 24, 2006
Freese, Scott D.Norfolk, NEAttorneyIndefinite
from
October 24, 2006
Rambo, Byron L.Sanford, FLEAIndefinite
from
October 24, 2006
Ask, Ronald W.Riverside, CAAttorneyIndefinite
from
October 30, 2006
Berry, Richard S.Tempe, AZAttorneyIndefinite
from
October 30, 2006
Burkhardt, William R.Canyon Lake, TXCPAIndefinite
from
October 30, 2006
Callaway, Jr., Paul F.Greensboro, NCCPAIndefinite
from
October 30, 2006
Doyle, David W.Arvada,COAttorneyIndefinite
from
October 30, 2006
Elmore, III, VirgilBirmingham, ALAttorneyIndefinite
from
October 30, 2006
Grandt, Lawrence E.Gurnee, ILCPAIndefinite
from
October 30, 2006
Hanson, Steven G.Lodi, CAAttorneyIndefinite
from
October 30, 2006
Omodele, BoluwajiHouston, TXCPAIndefinite
from
October 30, 2006
Rahden, Horst R.Fort Wayne, INCPAIndefinite
from
October 30, 2006
Censoprano, SalvatoreFoster City, CACPAIndefinite
from
October 31, 2006
Powell, James S.Lakewood, COAttorneyIndefinite
from
October 31, 2006
Allen, Leonard G.Mesa, AZCPAIndefinite
from
November 1, 2006
2006–52 I.R.B.1178December 26, 2006

NameAddressDesignationDate of Suspension
Parker, Donald A.Benson, NCAttorneyIndefinite
from
November 6, 2006
Rogers, James M.Tulsa, OKAttorneyIndefinite
from
November 6, 2006
Coopet, Michael W.Saint Paul, MNAttorneyIndefinite
from
November 8, 2006
Day, Jr., John TaylorHingham, MAAttorneyIndefinite
from
November 8, 2006
Grella, Paul J.Canton, MAAttorneyIndefinite
from
November 8, 2006
Meggers, Theodore M.Des Moines, IAAttorneyIndefinite
from
November 8, 2006
Tolbert, James L.Los Angeles, CAAttorneyIndefinite
from
November 8, 2006
Suspensions From Practice Before the Internal Revenue
Service After Notice and an Opportunity for a Proceeding
Under Title 31, Code of Federal Reg-
ulations, Part 10, after notice and an op-
portunity for a proceeding before an ad-
ministrative law judge, the following indi-
viduals have been placed under suspension
from practice before the Internal Revenue
Service:
NameAddressDesignationEffective Date
Lazaro, CharlesVisalia, CAAttorneyJuly 20, 2006
to
January 19, 2010
Wasilowski, RonaldNatrona Heights, PACPAJuly 21, 2006
to
July 20, 2011
Wellbery, William J.Deerfield Beach, FLCPAOctober 12, 2006
to
October 11, 2008
Clapper, Gary L.La Mesa, CAEnrolled AgentNovember 2, 2006
to
November 1, 2008
December 26, 200611792006–52 I.R.B.

Consent Disbarments From Practice Before the Internal
Revenue Service
Under Title 31, Code of Federal Regu-
lations, Part 10, an attorney, certified pub-
lic accountant, enrolled agent, or enrolled
actuary, in order to avoid institution or con-
clusion of a proceeding for his or her dis-
barment or suspension from practice be-
fore the Internal Revenue Service, may of-
fer his or her consent to disbarment from
such practice. The Director, Office of Pro-
fessional Responsibility, in his discretion,
may disbar an attorney, certified public ac-
countant, enrolled agent, or enrolled actu-
ary in accordance with the consent offered.
The following individuals have been
placed under consent disbarment from
practice before the Internal Revenue Ser-
vice:
NameAddressDesignationDate of Disbarment
Grossman, Robert S.Ardmore, PAAttorneyIndefinite
from
October 4, 2006
Disbarments From Practice Before the Internal Revenue
Service After Notice and an Opportunity for a Proceeding
Under Title 31, Code of Federal Regu-
lations, Part 10, after notice and an oppor-
tunity for a proceeding before an adminis-
trative law judge, the following individu-
als have been disbarred from practice be-
fore the Internal Revenue Service:
NameAddressDesignationEffective Date
Hubbard, MurphySpringfield, MOCPASeptember 20, 2006
Kardos, Sandra E.Van Nuys, CACPAOctober 2, 2006
Jewett,
Jerry A.
Fremont
,OH
Enrolle
dAgent
Novembe
r 2, 2006
Censure Issued by Consent
Under Title 31, Code of Federal Reg-
ulations, Part 10, in lieu of a proceeding
being instituted or continued, an attorney,
certified public accountant, enrolled agent,
or enrolled actuary, may offer his or her
consent to the issuance of a censure. Cen-
sure is a public reprimand.
The following individuals have con-
sented to the issuance of a Censure:
NameAddressDesignationDate of Censure
Applegate, William F.Madison, NJCPASeptember 12, 2006
Vigliotti, Anthony J.East Haven, CTEnrolled AgentSeptember 12, 2006
Bolgiani, Janette A.Brooklyn, NYEnrolled AgentSeptember 14, 2006
Cheney, James E.Phelps, NYCPASeptember 18, 2006
Dollinger, DouglasMiddletown, NYAttorneyOctober 2, 2006
Reeves, Zak E.Denver, COEnrolled AgentOctober 2, 2006
2006–52 I.R.B.1180December 26, 2006

NameAddressDesignationDate of Censure
Castiglione, JohnPittsfield, MAAttorneyOctober 4, 2006
Shannon, James P.Rochester, NHAttorneyOctober 4, 2006
Kuller, Mark A.Bethesda, MDAttorneyOctober 6, 2006
Resignations of Enrolled Agents
Under Title 31, Code of Federal Regu-
lations, Part 10, an enrolled agent, in or-
der to avoid the institution or conclusion
of a proceeding for his or her disbarment
or suspension from practice before the In-
ternal Revenue Service, may offer his or
her resignation as an enrolled agent. The
Director, Office of Professional Responsi-
bility, in his discretion, may accept the of-
fered resignation.
The Director, Office of Professional
Responsibility, has accepted offers of res-
ignation as an enrolled agent from the
following individuals:
NameAddressDate of Resignation
Schwartz, JudyLas Vegas, NVOctober 13, 2006
Foundations Status of Certain
Organizations
Announcement 2006–101
The following organizations have failed
to establish or have been unable to main-
tain their status as public charities or as op-
erating foundations. Accordingly, grantors
and contributors may not, after this date,
rely on previous rulings or designations
in the Cumulative List of Organizations
(Publication 78), or on the presumption
arising from the filing of notices under sec-
tion 508(b) of the Code. This listing does
notindicate that the organizations have lost
their status as organizations described in
section 501(c)(3), eligible to receive de-
ductible contributions.
Former Public Charities.The follow-
ing organizations (which have been treated
as organizations thatare not private foun-
dations described in section 509(a) of the
Code) are now classified as private foun-
dations:
3 Dimension Developers, Inc.,
Houston, TX
Accokeek Community Development
Corporation, Waldorf, MD
Acts of Hope, Inc., Duluth, GA
Advisory Credit Management, Inc.,
East Brunswick, NJ
AESOP, Inc., Cedar Hill, TX
African Education Development Agency,
Inc. (AEDA), Brooklyn Park, MN
Ahepa 59, Inc., Canton, OH
Aina Hookupu O Kilauea, Kilauea, HI
Alliance Health of Fall River, Inc.,
Newton, MA
Alsharco, Inc., Gretna, LA
American African Foundation Against
Torture, Inc., Schenectady, NY
American Farm Center Foundation,
San Diego, CA
Amit Discounted Living of America,
Pasadena, CA
Andover’s Future Housing Corporation,
Andover, MA
Arc of Passaic County, Hackensack, NJ
Artscore, Columbus, OH
Artsreach America, Inc., Chicago, IL
Assist By Knight, Inc., Philadelphia, PA
Astorling Sanctuary, Inc., Tampa, FL
Atrium a Choice Community, Inc.,
Indiana, PA
Avalon R & D, Inc., Williamsville, NY
Barton Springs Heritage Association, Inc.,
Austin, TX
Beacon Ridge a Choice Community, Inc.,
Indiana, PA
Beautify American Roads Foundation,
Inc., Sharon, CT
Beulah Land Community Development
Center, Houston, TX
Blue Meadows, Inc., Rose, OK
Borders Farm Preservation, Inc.,
Foster, RI
Brain Synchrony, Incorporated,
Encinitas, CA
Brick Foundation, Raleigh, NC
Broom Tree Center for Clergy Renewal,
Inc., Wausau, WI
Brothers Keeper, Inc., Tuscaloosa, AL
Caboose Springs, Incorporated,
La Crescenta, CA
Called to Care, Kalamazoo, MI
Capital City Teen Production,
Savannah, GA
Catalyst, Paonia, CO
Cathedral of Praise Community
Development, Inc., Camden, SC
Celebrity Luncheons, Wilkes-Barre, PA
December 26, 200611812006–52 I.R.B.

Center for Creative Leadership and
Renewal, Ogunquit, ME
Centro Pre Escolar Mundo Chico, Inc.,
Salinas, PR
Chaplain Memorial Endowment
Corporation, Church Creek, MD
Children’s Preschool Corporation,
Corona, CA
Childrens Stewardship Fund,
New York, NY
Christian Alternative, Inc.,
Gainesville, FL
Christian Home Area Ministry Partners,
Micanopy, FL
City of Hope Missions of Kentucky, Inc.,
Richmond, KY
Cloven Flame Ministries,
Center Point, TX
Community Concerns Alliance, Inc.,
Detroit, MI
Community Family Development
Foundation, Inc., Baltimore, MD
Community Health Care Services,
Oakland, CA
Community Outreach Program of
Enrichment, Inc., Houston, TX
Concerned Citizens for 25A, Inc.,
Cold Spring Harbor, NY
Concerned Veterans, Philadelphia, PA
Conjuring Arts Research Center,
Las Vegas, NV
Continuum of Care Ministry, Ruston, LA
Crosby Family Foundation,
Los Angeles, CA
Cuddlecare a New Jersey Nonprofit
Corporation, Neptune, NJ
CWA Local 1033 James W. Gallagher
Scholarship Fund, Trenton, NJ
Daily Retreat Adult Care, Inc., Dallas, TX
Deeval U Educational Center,
Greenville, MS
Delta Regional Foundation, Jackson, MS
Developmental Institute for Rural
& Urban Excellence, Inc.,
Natchitoches, LA
DFW Chinese Culture Center, Inc.,
Lewisville, TX
Divine Call, Dallas, TX
Doves Link, Inc., Beech Island, SC
DuPont Theater, Inc., Grove City, PA
Ecocosm Dynamics, Ltd., Tucker, GA
Ecospirit Institute for Physical
and Metaphysical Ecology, Inc.,
Scotts Valley, CA
Edheads, Hilliard, OH
Educacion Para Todos, Inc., Durham, NC
Education Empowerment Fund,
Lake Oswego, OR
El Segundo Youth Football &
Cheerleading, Inc., El Segundo, CA
Empowering People & Communities
Together CDC, Itta Bena, MS
Empowering Students and Parents, Inc.,
Columbia, MD
E M P T Y, Cincinnati, OH
Ensamble America Chamber Music and
Orchestral Society, New York, NY
Epiphany Training and Empowerment
Corp., Ford Heights, IL
Evangelistic Temple Foundation C E D C,
Inc., Simpsonville, SC
Evangelizing for Christ Ministry, Inc.,
Arlington, TX
Everywhere & Now Public Hous
Resid Organizing Natl Together, Inc.,
Far Rockaway, NY
Families Doing Time, Compton, CA
Family and Youth Achievement Center,
Inc., Durham, NC
Family Support Centers, Lakeside, CA
Fathers on Rights for Custody Equality,
Louisville, KY
Feral Feline Sanctuary, Inc., Ocala, FL
Finlion Center for Nonprofit Boards, Inc.,
Sioux Falls, SD
Foothill Boys Baseball Association, Inc.,
Salt Lake City, UT
For Gods Glory Ministries, Inc.,
Orange Park, FL
Foundation for Sustainable Development
With Human Values, Inc.,
Washington, DC
Foundation of Grace Respite Care, Inc.,
Chicago, IL
Freeborn Foundation, Inc., Stamford, CT
Friends of Artistry in Motion,
Westland, MI
Friends of Friendship House Fund, Inc.,
Garland, TX
Friends of the Elliott Museum, Inc.,
Palm City, FL
Friends of the Farnsworth House,
Chicago, IL
Friends of the Louisiana Museum
of Modern Art in Denmark, Inc.,
New York, NY
Gallagher Foundation for Youth Sports,
Inc., Palm Dessert, CA
Gambrell Ministries, Long Beach, CA
Gate City Golf Association Foundation,
Inc., Greensboro, NC
Gifts for Jesus, North Huntingdon, PA
Girlspirit-Womensong, Inc.,
New York City, NY
Gods Way Homeless Recovery, Inc.,
West Palm Beach, FL
Golden Hill Development Foundation III,
Inc., New Haven, CT
Good Cause, Inc., Oakland, CA
Great Basin Foundation,
Salt Lake City, UT
Great Minds of Tomorrow, Inc.,
Kalamazoo, MI
Greater Faith Community Services, Inc.,
Petersburg, VA
Greater Harvest Housing Corp., Inc.,
Baltimore, MD
Greater Image Ministries, Seattle, WA
Greater Whites Development Center,
Nashville, TN
Gumbo Krewe, Inc., Norco, LA
Harlem United Community HIV/AIDS
Prevention Center, Inc., New York, NY
Harvest Community Development
Corporation, Detroit, MI
Hasidigraphix, Inc., Boca Raton, FL
Hellgate Management Corp., Bronx, NY
Helping Hands of Charleston, Inc.,
North Charleston, SC
Helping Hands of Winnsboro,
Winnsboro, LA
Henry Evans Housing Corporation,
Fayetteville, NC
HFERIBS, Inc., Tomahawk, WI
Holt Family Help Center, Centerville, UT
Home of the Eagle Shelter, Inc.,
Thibodaux, LA
Hope Community Economic
Development, Inc., Jacksonville, FL
Hope for Children, Inc., Pueblo, CO
Hope Treatment Center, Reno, NV
Hosts Faith Ministries, Inc.,
Friendswood, TX
Hot Fudge Social Ventures, Inc.,
Atlanta, GA
Housing for the Future, Inc., Elizabeth, NJ
Housing Works Harlem Housing
Development Fund Corporation,
Brooklyn, NY
Howard Thurman Library, New York, NY
Howl, Inc., Georgetown, KY
Humans Preservation&ProtectionFund,
Los Angeles, CA
Illinois Affordable Housing, NFP,
Charleston, IL
Immaculate Conception Ministries of
Charity, Inc., Washington, DC
Immanuel Development Center,
Akron, OH
In the Beginning Ministries,
Los Angeles, CA
Institute for Science and Health,
St. Louis, MO
2006–52 I.R.B.1182December 26, 2006

International Photoacoustic and
Photothermal Association,
Providence, RI
International Royal Crescent Education
Foundation, Inc., Warner Robins, GA
J. R. Richards Kids Foundation, Inc.,
Houston, TX
Jeffersonian Society, Inc.,
Jacksonville, FL
Jersey City Community Resource Center,
Jersey City, NJ
Joey Cushman Memorial Scholarship
Fund, Fort Worth, TX
Journey of Life Services,
Baton Rouge, LA
Jowers Foundation, Inc., Southfield, MI
Kansas Resource Alliance for Families,
Inc.,Topeka,KS
Kays, Inc., Independent Group Home for
Young Ladies, Atlanta, GA
Keichange Foundation, Catonsville, MD
Keystone Community Concepts,
Roanoke, TX
K. I. C. (Kids in Christ), Inc.,
Montgomery, AL
Knowledge I Trust, Inc., Darien, CT
L A S Therapy Network and Development
Group, Inc., Nashville, TN
Lakeland Cardinals Booster Club,
Fox Lake, IL
Last Day Outreach Christian Center, Inc.,
Covington, GA
Legacy Multicultural Center,
Glendale, CA
Letitia Pratt Foundation, Inc., Nashua, NH
Liberated Word Community Development
Corporation, Westampton, NJ
Little Mountain Community Outreach,
Inc., Appling, GA
Living Bread of Life, Inc.,
New Port Richey, FL
Logos Foundation, Inc., Baltimore, MD
Los Angeles Tenpoint Coalition,
Los Angeles, CA
Los Angeles Williams Family Childrens
Foundation, Gardena, CA
Lynchburg Charitable Construction Trust,
Lynchburg, VA
Malibu Paradise, Inc., Stockbridge, GA
Marriage and Parenting Institute,
Salt Lake City, UT
Mcrae & Hall Family Learning Center,
Clio, AL
Metro Group, Hompton, GA
Mid-Del Charitable Foundation,
Harrington, DE
Middlesex Health Services, Inc.,
Middlesex, NC
Mighty Vine Wellness Club,
Cincinnati, OH
Millennium City Technology, Inc.,
Detroit, MI
Mind Body & Soul of New Orleans, Inc.,
Marrero, LA
Ministry of Jesus Christ, Temecula, CA
Minnesota Hmong Youth Crime
Prevention and Educational Support,
Inc., St. Paul, MN
Minority Help, Inc., Chandler, AZ
Miracle Kids, St. Louis, MO
Miracle Valley Community Development
Corporation, Inc., Tuscaloosa, AL
MM Cybertech Group, Inc., Midland, TX
Mothers Network, Saint Monica, CA
Mt. Pilgrim Foundation, Inc., Lugoff, SC
MTC Senior Housing, Inc., Jamaica, NY
Museum Domain Management
Association, Los Angeles, CA
Museum on Fire, New London, MO
MVA, Incorporated, Tulsa, OK
National Association of Disabled
Asian-American, Los Angeles, CA
National Grazing Lands Conservation,
Bowie, TX
National Institute for Archives, Inc.,
Portland, OR
National Latinas Caucus, Incorporated,
New York, NY
Native Community Action Counsel,
Ely Nevada, NV
Natural Hormone Research Institute, Inc.,
Dallas, TX
Natural Talents Arts Foundation, Inc.,
Farmington, NM
Naval Heritage Group, Inc.,
Far Rockaway, NY
NBA Foundation, Washington, DC
Nehemiah Restoration Center, Inc.,
Aiken, SC
Nerriaet, Ojai, CA
New Age News, Incorporated,
New York, NY
New American Policy Institute, Inc.,
Shorewood, WI
New Beginnings Transitional Housing
for Women & Women With Child, Inc.,
Stone Mountain, GA
New Development House, Inc.,
Cleveland, OH
New First Community Development
Corporation, Chicago Heights, IL
New York State Police Chiefs Foundation,
Inc., Yorktown, NY
Nigerian American Federation,
Grand Terrace, CA
Noble Heart Services, Inc., Torrance, CA
Northern California Community Housing
Services, Inc., Hawyard, CA
Norway/Paris Community Television,
Norway, ME
Oasis in the Desert Economic
Development District, Inc.,
College Park, GA
Olive Branch Home for Neglected
Abused and Abandoned Children,
Stone Mountain, GA
On the Wings of Eagles, Inc.,
Copperhill, TN
Operation Rebound, Grand Blanc, MI
Orange County Medical Foundation, Inc.,
Hillsborough, NC
Oxford Shake-Speare Company,
Huntsville, TX
P Js Wings Programs, Dearborn, MI
Pacific Ocean Wave Energy Research,
Inc., San Diego, CA
Patriot a Choice Community, Inc.,
Indiana, PA
Peacekeepers, Abilene, TX
People Helping People of Detroit,
Detroit, MI
Phase Nu, Inc., Ypsilanti, MI
Philam Society of CPA’s, Los Angeles, CA
Philidia Corporation, Long Beach, CA
Pi Lambda Chi Latina Sorority
Scholarship Fund, Denver, CO
Pooh Bear Community Child Care Center,
Hamburg, AR
Prescott College Alumni Association,
Prescott, AZ
Reaching Out Ministries, Inc.,
Plant City, FL
Ready to Fly Ministries, Inc., Mena, AR
Reliable Man Ministries, Inc., Orlando, FL
Rest for All Nations, Inc., Leawood, KS
Restoring Wounded Soldiers Outreach
Ministries, Decatur, GA
Right for Harvest Ministries,
Columbus, OH
Roberta S. Kaufman Memorial
Scholarship Fund, Inc., Plainview, NY
Rocky Mountain Reintegration Services,
Inc., Colorado Springs, CO
Rosebuds to Roses, Inc., Harvey, LA
Rotary Club of Amherst East Foundation,
Williamsville, NY
Salem Police Volunteer and Citizen
Association, Inc., Salem, OR
San Diego Post 6 Activities Foundation,
San Diego, CA
Sankofa Foundation, Inc., Chicago, IL
Santa Maria Club, Inc.,
Southhampton, NY
December 26, 200611832006–52 I.R.B.

Second Henry Street Housing
Development Fund Corp.,
New York, NY
Seniors on the Move, Inc.,
Stone Mountain, GA
Single Parents Association, Compton, CA
Society of Mannequins, Chicago, IL
Southern Gospel Radio Partners, Inc.,
Delhi, LA
Spider Webb Services, Inc., Miami, FL
Spiritual Power Development, Inc.,
Whistle, AL
Sports Interface, Inc., Oakland, CA
St. Benedict the Moor Development
Corporation, Savannah, GA
Stanley L. Johnson Young Fathers
Young Men Organization, Inc.,
Jacksonville, FL
Stillson Memorial Medical Center
Associates, Inc., Windsor, NY
Stop Hazing, Inc., Orono, ME
Students – Staff Honored for Success,
Spencerville, OH
Succor Haven, Inc., Indianapolis, IN
Sunrise Housing Foundation, McLean, VA
Sunset Companions Agency, Oakland, CA
Sunshine Factory, Inc., Fayetteville, GA
Supreme Court Media Center,
Mendham, NJ
Teach All Nations Fund, Inc.,
Quarryville, PA
Texas Early Education Heritage Society,
League City, TX
Texas Philanthropic Corporation,
Houston, TX
Three Rivers Foundation for the Arts and
Sciences, Inc., Crowell, TX
Tindalls School No. 3 Restoration, Inc.,
Ramsey, IN
Titus House, Inc., Pickerington, OH
Touching Hands of Life, Los Angeles, CA
Trees for Life, Inc., Orlando, FL
Tri Alpha Omega Ministries, Inc.,
Houston, TX
Troy Lions Charities, Royal Oak, MI
Tucson Cultural Development and
Community Improvement Association,
Tucson, AZ
Turnerpoint Akwaaba House, Inc.,
Detroit, MI
Ucan International, Inc., Maryknoll, NY
UMA Foundation, Inc., Dorchester, MA
Umoja Group, Inc., Los Angeles, CA
United in Peace, Inc., Chicago, IL
Universal Medical Association of USA,
Inc., Rosemead, CA
Up and Away, Inc., Dorchester, MA
Urgent Nest Ministries Life Care Center,
Raleigh, NC
VB Alba Foundation, Inc.,
Fawn Grove, PA
Virginia Living Histories, Inc.,
St. Louis, MO
Visions of Rose Outreach Ministries,
Missouri City, TX
Voices of the Next Generation Educational
Association, Oklahoma City, OK
Volunteer Today, Castle Rock, CO
Warren Avenue Community Development
Corporation, Southfield, MI
Westbridge, Inc., Manchester, NH
Williamsburg Trails and Greenways
Association, Inc., Haydenville, MA
Windmill Foundation, Rego Park, NY
Winning Ways, Inc., Raleigh, NC
Wisconsin Champions for Arts
Education Business and Community,
Oconomowoc, WI
Wisdom and Heart Ministry, Inc.,
Jacksonville, FL
Womens Empowerment Movement, Inc.,
Jonesboro, GA
Word Faith Center Ministry, Inc.,
Ontario, CA
World of Motorcycles Museum, Inc.,
North Judson, IN
World Peace Through Technology
Organization, San Francisco, CA
Y O U Youth Opportunities Unlimited,
Inc., Pearland, TX
You-Turn Project, Inc., Lawndale, CA
Youth Development Organization, Inc.,
Lawrence, MA
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as
a private operating foundation, the Inter-
nal Revenue Service will issue a ruling or
determination letter with the revised clas-
sification as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
vided in section 1.509(a)–7 of the Income
Tax Regulations. It is not the practice of
the Service to announce such revised clas-
sification of foundation status in the Inter-
nal Revenue Bulletin.
Stock Transfer Rules:
Carryover of Earnings and
Taxes; Correction
Announcement 2006–102
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendments.
SUMMARY: This document contains cor-
rections to final regulations (T.D. 9273,
2006–37 I.R.B. 394) that were published
in theFederal Registeron Tuesday, Au-
gust 8, 2006 (71 FR 44887) addressing the
carryover of certain tax attributes, such as
earnings and profits and foreign income
tax accounts, when two corporations com-
bine in a corporate reorganization or liq-
uidation that is described in both sections
367(b) and section 381 of the Internal Rev-
enue Code.
DATES: The correction is effective August
8, 2006.
FOR FURTHER INFORMATION
CONTACT: Jeffrey L. Parry, (202)
622–3850 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations that are the subject
of this correction areunder sections 367(b)
and 381 of the Internal Revenue Code.
Need for Correction
As published, final regulations (T.D.
9273) contain errors that may prove to be
misleading and are in need of clarification.
*****
Correction of Publication
Accordingly, 26 CFR part 1 is cor-
rected by making the following correcting
amendments:
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. 7. Section 1.367(b)–7(f)(1)(iii)
Example 1(iii) is amended by revising the
2006–52 I.R.B.1184December 26, 2006

last sentence of paragraph (A) and para-
graph (B) to read as follows:
§ 1.367(b)–7 Carryover of earnings
and profits and foreign income taxes in
certain foreign-to-foreign non-recognition
transactions.
*****
(f) * * *
(1) * * *
(iii) * * *
Example (1)***
(A)***The100uoffsetundersection
952(c)(1)(B) does not result in a reduction of the
hovering deficit for purposes of section 316 or sec-
tion 902.
(B) Foreign surviving corporation A’s 100u of
subpart F income not included in income by USP
will accumulate and be added to its post–1986 undis-
tributed earnings as of the beginning of 2009. This
100u of post-transaction earnings will be offset by the
(100u) hovering deficit. Because the amount of earn-
ings offset by the hovering deficit is 100% of the total
amount of the hovering deficit, all $25 of the related
taxes are added to the post-1986 foreign income taxes
pool as well. Accordingly, foreign surviving corpo-
ration A has the following post–1986 undistributed
earnings and post-1986 foreign income taxes on Jan-
uary 1, 2009:
Earnings & profitsForeign taxes
Separate category
Positive
E&P
Hovering
deficit
Foreign
taxes
available
Foreign
taxes
associated
with
hovering
deficit
General .....................................................................0u(0u)
$45$0
*****
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 December 6,
2006, 8:45 a.m., and published in the issue of the Federal
Register for December 7, 2006, 71 F.R. 70875)
TIPRA Amendments to Section
199; Correction
Announcement 2006–103
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendments.
SUMMARY: This document contains
corrections to final and temporary regu-
lations (T.D. 9293, 2006–48 I.R.B. 957)
thatwerepublishedintheFederal Reg-
isteron Thursday, October 19, 2006 (71
FR 61662) concerning the amendments
made by the Tax Increase Prevention and
Reconciliation Act of 2005 to section 199
of the Internal Revenue Code.
DATES: This correction is effective Octo-
ber 19, 2006.
FOR FURTHER INFORMATION
CONTACT: Concerning §§ 1.199–2T
(e)(2)and1.199–8T(i)(5),
Paul Handleman or Lauren Ross Taylor,
(202)622–3040;concerning
§§ 1.199–3T(i)(7) and (8), and 1.199–5T,
Martin Schaffer, (202) 622–3080; and
concerning §§ 1.199–7T(b)(4) and
1.199–8T(i)(6), Ken Cohen, (202)
622–7790 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The final and temporary regulations
that are the subject of this correction are
under section 199 of the Internal Revenue
Code.
Need for Correction
As published, final and temporary regu-
lations (T.D. 9293) contain errors that may
prove to be misleading and are in need of
clarification.
*****
Correction of Publication
Accordingly, 26 CFR part 1 is corrected
by making the following amendments:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part1isamendedbyaddingentriesinnu-
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.199–5T also issued under 26
U.S.C. 199(d). * * *
Section 1.199–7T also issued under 26
U.S.C. 199(d). * * *
Par. 4. Section 1.199–2T(e)(2) is
amended by revising the eleventh sen-
tence ofExample 2paragraph (i) and the
seventh sentence ofExample 5paragraph
(iv) to read as follows:
§ 1.199–2T Wage limitation (temporary).
Example 2. ***
(i)***ForY’staxableyearendingApril30,
2011, the total square footage of Y’s headquarters is
8,000 square feet, of which 2,000 square feet is set
aside for domestic production activities. * * *
Example 5. ***
(iv) * * * The EAG’s tentative section 199 deduc-
tion is $360,000 (.09 X (lesser of combined QPAI of
$4,000,000 (B’s QPAI of $4,000,000 + S’s QPAI of
$0) or combined taxable income of $4,200,000 (B’s
taxable income of $4,000,000 + S’s taxable income
of $200,000))) subject to the W–2 wage limitation
of $50,000 (50% x ($100,000 (B’s W–2 wages) + $0
(S’s W–2 wages))). * * *
Par. 8. Section 1.199–5T is amended
by revising sentences eight through ten of
paragraph (e)(4)(ii)(A) and revising para-
graph (g) to read as follows:
§ 1.199–5T Application of section 199
to pass-thru entities for taxable years
beginning after May 17, 2006, the
enactment date of the Tax Increase
Prevention and Reconciliation Act of 2005
(temporary).
(e) * * *
(4) * * *
(ii) * * *
December 26, 200611852006–52 I.R.B.

(A)***Inthisstep,inthisexam-
ple, the portion of the trustee commissions
not directly attributable to the rental op-
eration ($2,000) is directly attributable to
non-trade or business activities. In addi-
tion, the state income and personal prop-
erty taxes are not directly attributable un-
der § 1.652(b)–3(a) to either trade or busi-
ness or non-trade or business activities, so
the portion of those taxes not attributable
to either the PRS interests or the rental op-
eration is not a trade or business expense
and, thus, is not taken into account in com-
puting QPAI. The portion of the state in-
come and personal property taxes that is
treated as an other trade or business ex-
pense is $3,000 ($5,000 x $30,000 total
trade or business gross receipts/$50,000
total gross receipts). * * *
(g)No attribution of qualified activities.
Except as provided in § 1.199–3T(i)(7) re-
garding qualifying in-kind partnerships
and § 1.199–3T(i)(8) regarding EAG part-
nerships, an owner of a pass-thru entity
is not treated as conducting the qualified
production activities of the pass-thru en-
tity, and vice versa. This rule applies to all
partnerships, including partnerships that
have elected out of subchapter K under
section 761(a). Accordingly, if a partner-
ship manufactures QPP within the United
States, or produces a qualified film or
produces utilities in the United States, and
distributes or leases, rents, licenses, sells,
exchanges, or otherwise disposes of such
property to a partner who then, without
performing its own qualifying activity,
leases, rents, licenses, sells, exchanges,
or otherwise disposes of such property,
then the partner’s gross receipts from
this latter lease, rental, license, sale, ex-
change, or other disposition are treated as
non-DPGR. In addition, if a partner man-
ufactures QPP within the United States, or
produces a qualified film or produces util-
ities in the United States, and contributes
or leases, rents, licenses, sells, exchanges,
or otherwise disposes of such property
to a partnership which then, without per-
forming its own qualifying activity, leases,
rents, licenses, sells, exchanges, or other-
wise disposes of such property, then the
partnership’s gross receipts from this latter
disposition are treated as non-DPGR.
*****
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 December 6,
2006, 8:45 a.m., and published in the issue of the Federal
Register for December 7, 2006, 71 F.R. 70876)
Partner’s Distributive Share:
Foreign Tax Expenditures;
Correction
Announcement 2006–104
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendments.
SUMMARY: This document contains cor-
rection to final regulations (T.D. 9292,
2006–47 I.R.B. 914) that were published
in theFederal Registeron Thursday, Oc-
tober 19, 2006 (71 FR 61648) regarding
the allocation of creditable foreign tax
expenditures by partnerships.
DATES: The correction is effective Octo-
ber 19, 2006.
FOR FURTHER INFORMATION
CONTACT: Timothy J. Leska, (202)
622–3050 or Michael I. Gilman (202)
622–3850 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The correction notice that is the subject
of this document is under section 704 of
the Internal Revenue Code.
Need for Correction
As published, final regulations
(T.D. 9292) contain errors that may prove
to be misleading and are in need of clarifi-
cation.
*****
Correction of Publication
Accordingly, 26 CFR part 1 is cor-
rected by making the following correcting
amendments:
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 1.704–1 is amended by
revising instructional Par. 2, number 2 to
read as follows:
1. * * *
2. The heading and text of paragraphs
(b)(1)(ii)(b), and (b)(5)Examples 25
through27are revised.
*****
Par. 3. Section 1.704–1(d)(5) is
amended by revisingExample 25para-
graph (ii), the ninth sentence andExample
26paragraph (ii), the eighth sentence to
read as follows:
§ 1.704–1 Partner’s distributive share.
*****
Example 25. ***
(ii) * * * Accordingly, the country X taxes will be
reallocated according to the partners’ interests in the
partnership.
Example 26. ***
(ii)***BecauseAB’spartnershipagreemental-
locates the $80,000 of country X taxes and $40,000
of country Y taxes in proportion to the distributive
shares of income to which such taxes relate, the al-
locations are deemed to be in accordance with the
partners’ interests in the partnership under paragraph
(b)(4)(viii) of this section.
*****
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 December 6,
2006, 8:45 a.m., and published in the issue of the Federal
Register for December 7, 2006, 71 F.R. 70877)
Railroad Track Maintenance
Credit; Correction
Announcement 2006–105
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Correcting amendment.
2006–52 I.R.B.1186December 26, 2006

SUMMARY: This document corrects tem-
porary regulations (T.D. 9286, 2006–43
I.R.B. 750) that were published in the
Federal Registeron Friday, September 8,
2006 (71 FR 53009) providing rules for
claiming the railroad track maintenance
credit under section 45G of the Internal
Revenue Code for qualified railroad track
maintenance expenditures paid or incurred
by a Class II railroad or Class III railroad
and other eligible taxpayers during the
taxable year.
DATES: This correction is effective
September 8, 2006.
FOR FURTHER INFORMATION
CONTACT: Winston H. Douglas, (202)
622–3110 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The temporary regulations (T.D. 9286)
that is the subject of this document is under
section 45G of the Internal Revenue Code.
Need for Correction
As published, the temporary regula-
tions (T.D. 9286) contain errors that may
prove to be misleading and are in need of
clarification.
*****
Correction of Publication
Accordingly, 26 CFR parts 1 and 6
02
are corrected by making the foll
owing cor-
recting amendments:
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 1.45G–0T is
amended by removing the entry for
§ 1.45G–1T(e) and (e)(2) and redesig-
nating the entries for § 1.45G–1T(e)(1)
and § 1.45G–1T(e)(1)(i), (ii) and (iii) as
the entries for (e), (e)(1), (e)(2) and (e)(3)
respectively.
Par. 3. Section 1.45G–1T is amended
by:
1. Removing paragraph (e)(2);
2. Redesignating paragraphs (e)(1)(i),
(e)(1)(ii), and (e)(1)(iii) as paragraphs
(e)(1), (e)(2), and (e)(3), respectively;
3. Revising paragraph (a), sixth sen-
tence, paragraph (b)(9), paragraph (d)(6)
Example 2.(ii), last sentence, paragraph
headings (e), (e)(1), (e)(2) and (e)(3), para-
graph (e)(2), second and fifth sentences,
paragraph (e)(3), first sentence,Example
1.(i), third sentence,Example 1.(iii), sec-
ond sentence,Example 2.(iii), fourth sen-
tence, and paragraph (g)(3). The revisions
read as follows:
§ 1.45G–1T Railroad track maintenance
credit (temporary).
(a) * * * Paragraph (e) of this section
contains rules for adjusting basis for the
amount of the RTMC claimed by an eligi-
ble taxpayer. * * *
(b) * * *
(9) Except as provided in paragraph
(e)(2) of this section,railroad trackis
property described in STB property ac-
counts 8 (ties), 9 (rails and other track
material),and11(ballast)in49CFRpart
1201, subpart A.
*****
(d) * * *
(6) * * *
Example 2. ***
(ii)***BecauseO’stentativeamountofRTMC
does not exceed O’s credit limitation amount for the
taxable year ending March 31, 2007, O may claim a
RMTC for the taxable year ending March 31, 2007,
in the amount of $75,000.
*****
(e)Adjustments to basis—***
(1)In general.***
(2)Basis adjustment made to rail-
road track. * * * For purposes of section
45G(e)(3) and this paragraph (e)(2), the
adjusted basis of any railroad track with
respect to which the eligible taxpayer
claims the RTMC is limited to the amount
of QRTME, if any, that is required to be
capitalized into the qualifying railroad
structure or an intangible asset. * * * If all
or some of the QRTME paid or incurred
by an eligible taxpayer during the taxable
year is capitalized under section 263(a)
to more than one asset, whether tangible
or intangible (for example, railroad track
and bridges), the reduction to the basis of
these assets under this paragraph (e)(2) is
allocated among each of the assets sub-
ject to the reduction in proportion to the
unadjusted basis of each asset at the time
the QRTME is paid or incurred during that
taxable year.
(3)Examples. The application of this
paragraph (e) is illustrated by the follow-
ing examples. * * *
Example 1. ***
(i)***Xusesthetrackmaintenanceallowance
method for track structure expenditures (for further
guidance, see Rev. Proc. 2002–65, 2002–2 C.B. 700,
and § 601.601(d)(2)(ii)(b) of this chapter). * * *
(iii)***Inaccordancewithparagraph(e)(2)
of this section, X reduces the capitalized amount of
$250,000 by the RTMC of $500,000 claimed by X
for 2006, but not below zero. * * *
Example 2. ***
(iii)***Inaccordance with paragraph (e)(2) of
this section, Z reduces the capitalized amount of $1
million by the RTMC of $500,000 claimed by Z for
2006. * * *
*****
(g) * * *
(3)Special rules for 2005 returns.Ifa
taxpayer’s Federal income tax return for
a taxable year beginning after December
31, 2004, and ending before September 7,
2006, is filed before October 10, 2006, and
the taxpayer is not filing an amended Fed-
eral income tax return for that taxable year
pursuant to paragraph (g)(2) of this sec-
tion before the taxpayer’s next filed orig-
inal Federal income tax return, see para-
graphs (d)(4)(iv) and (f)(7) of this section
for the statements that must be attached to
the taxpayer’s next filed original Federal
income tax return.
PART 602 — OMB CONTROL
NUMBERS UNDER THE PAPERWORK
REDUCTION ACT
Par. 4. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 5. In § 602.101, paragraph (b) is
amendedbyrevisingthefollowingentryin
to the table to read as follows:
§ 602.101 OMB control numbers.
*****
(b) * * *
December 26, 200611872006–52 I.R.B.

CFR part or section where
identified and described
Current OMB
control No.
*****
1.45G–1T........................................................... 1545–2031
*****
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 December 7,
2006, 8:45 a.m., and published in the issue of the Federal
Register for December 8, 2006, 71 F.R. 71039)
2006–52 I.R.B.1188December 26, 2006

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 rul-
ings 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.
December 26, 2006i2006–52 I.R.B.

Numerical Finding List
1
Bulletins 2006–27 through 2006–52
Announcements:
2006-42, 2006-27 I.R.B.48
2006-43, 2006-27 I.R.B.48
2006-44, 2006-27 I.R.B.49
2006-45, 2006-31 I.R.B.121
2006-46, 2006-28 I.R.B.76
2006-47, 2006-28 I.R.B.78
2006-48, 2006-31 I.R.B.135
2006-49, 2006-29 I.R.B.89
2006-50, 2006-34 I.R.B.321
2006-51, 2006-32 I.R.B.222
2006-52, 2006-33 I.R.B.254
2006-53, 2006-33 I.R.B.254
2006-54, 2006-33 I.R.B.254
2006-55, 2006-35 I.R.B.342
2006-56, 2006-35 I.R.B.342
2006-57, 2006-35 I.R.B.343
2006-58, 2006-36 I.R.B.388
2006-59, 2006-36 I.R.B.388
2006-60, 2006-36 I.R.B.389
2006-61, 2006-36 I.R.B.390
2006-62, 2006-37 I.R.B.444
2006-63, 2006-37 I.R.B.445
2006-64, 2006-37 I.R.B.447
2006-65, 2006-37 I.R.B.447
2006-66, 2006-37 I.R.B.448
2006-67, 2006-38 I.R.B.509
2006-68, 2006-38 I.R.B.510
2006-69, 2006-37 I.R.B.449
2006-70, 2006-40 I.R.B.629
2006-71, 2006-40 I.R.B.630
2006-72, 2006-40 I.R.B.630
2006-73, 2006-42 I.R.B.745
2006-74, 2006-42 I.R.B.746
2006-75, 2006-42 I.R.B.746
2006-76, 2006-42 I.R.B.746
2006-77, 2006-42 I.R.B.748
2006-78, 2006-42 I.R.B.748
2006-79, 2006-43 I.R.B.792
2006-80, 2006-45 I.R.B.840
2006-81, 2006-44 I.R.B.821
2006-82, 2006-44 I.R.B.821
2006-83, 2006-44 I.R.B.822
2006-84, 2006-45 I.R.B.873
2006-85, 2006-45 I.R.B.873
2006-86, 2006-45 I.R.B.842
2006-87, 2006-44 I.R.B.822
2006-88, 2006-46 I.R.B.910
2006-89, 2006-44 I.R.B.826
2006-90, 2006-47 I.R.B.953
2006-91, 2006-47 I.R.B.953
2006-92, 2006-48 I.R.B.
1014
2006-93, 2006-48 I.R.B.1017
Announcements— Continued:
2006-94, 2006-48 I.R.B.1017
2006-95, 2006-50 I.R.B.1105
2006-96, 2006-50 I.R.B.1108
2006-97, 2006-50 I.R.B.1108
2006-98, 2006-51 I.R.B.1139
2006-99, 2006-51 I.R.B.1139
2006-100, 2006-51 I.R.B.1141
2006-101, 2006-52 I.R.B.1181
2006-102, 2006-52 I.R.B.1184
2006-103, 2006-52 I.R.B.1185
2006-104, 2006-52 I.R.B.1186
2006-105, 2006-52 I.R.B.1186
Notices:
2006-56, 2006-28 I.R.B.58
2006-57, 2006-27 I.R.B.13
2006-58, 2006-28 I.R.B.59
2006-59, 2006-28 I.R.B.60
2006-60, 2006-29 I.R.B.82
2006-61, 2006-29 I.R.B.85
2006-62, 2006-29 I.R.B.86
2006-63, 2006-29 I.R.B.87
2006-64, 2006-29 I.R.B.88
2006-65, 2006-31 I.R.B.102
2006-66, 2006-30 I.R.B.99
2006-67, 2006-33 I.R.B.248
2006-68, 2006-31 I.R.B.105
2006-69, 2006-31 I.R.B.107
2006-70, 2006-33 I.R.B.252
2006-71, 2006-34 I.R.B.316
2006-72, 2006-36 I.R.B.363
2006-73, 2006-35 I.R.B.339
2006-74, 2006-35 I.R.B.339
2006-75, 2006-36 I.R.B.366
2006-76, 2006-38 I.R.B.459
2006-77, 2006-40 I.R.B.590
2006-78, 2006-41 I.R.B.675
2006-79, 2006-43 I.R.B.763
2006-80, 2006-40 I.R.B.594
2006-81, 2006-40 I.R.B.595
2006-82, 2006-39 I.R.B.529
2006-83, 2006-40 I.R.B.596
2006-84, 2006-41 I.R.B.677
2006-85, 2006-41 I.R.B.677
2006-86, 2006-41 I.R.B.680
2006-87, 2006-43 I.R.B.766
2006-88, 2006-42 I.R.B.686
2006-89, 2006-43 I.R.B.772
2006-90, 2006-42 I.R.B.688
2006-91, 2006-42 I.R.B.688
2006-92, 2006-43 I.R.B.774
2006-93, 2006-44 I.R.B.798
2006-94, 2006-43 I.R.B.777
2006-95, 2006-45 I.R.B.848
2006-96, 2006-46 I.R.B.902
Notices— Continued:
2006-97, 2006-46 I.R.B.904
2006-98, 2006-46 I.R.B.906
2006-99, 2006-46 I.R.B.907
2006-100, 2006-51 I.R.B.1109
2006-101, 2006-47 I.R.B.930
2006-102, 2006-46 I.R.B.909
2006-103, 2006-47 I.R.B.931
2006-104, 2006-48 I.R.B.995
2006-105, 2006-50 I.R.B.1093
2006-106, 2006-49 I.R.B.1033
2006-107, 2006-51 I.R.B.1114
2006-108, 2006-51 I.R.B.1118
2006-109, 2006-51 I.R.B.1121
2006-110, 2006-51 I.R.B.1127
2006-111, 2006-52 I.R.B.1150
Proposed Regulations:
REG-208270-86, 2006-42 I.R.B.698
REG-121509-00, 2006-40 I.R.B.602
REG-135866-02, 2006-27 I.R.B.34
REG-140379-02, 2006-44 I.R.B.808
REG-142599-02, 2006-44 I.R.B.808
REG-146893-02, 2006-34 I.R.B.317
REG-159929-02, 2006-35 I.R.B.341
REG-148864-03, 2006-34 I.R.B.320
REG-168745-03, 2006-39 I.R.B.532
REG-105248-04, 2006-43 I.R.B.787
REG-103038-05, 2006-49 I.R.B.1049
REG-103039-05, 2006-49 I.R.B.1057
REG-103043-05, 2006-49 I.R.B.1063
REG-109512-05, 2006-30 I.R.B.100
REG-110405-05, 2006-48 I.R.B.1004
REG-141901-05, 2006-47 I.R.B.947
REG-142270-05, 2006-43 I.R.B.791
REG-145154-05, 2006-39 I.R.B.567
REG-148576-05, 2006-40 I.R.B.627
REG-109367-06, 2006-41 I.R.B.683
REG-112994-06, 2006-27 I.R.B.47
REG-118775-06, 2006-28 I.R.B.73
REG-118897-06, 2006-31 I.R.B.120
REG-120509-06, 2006-39 I.R.B.570
REG-124152-06, 2006-36 I.R.B.368
REG-125071-06, 2006-36 I.R.B.375
REG-127819-06, 2006-48 I.R.B.1013
REG-136806-06, 2006-47 I.R.B.950
Revenue Procedures:
2006-29, 2006-27 I.R.B.13
2006-30, 2006-31 I.R.B.110
2006-31, 2006-27 I.R.B.32
2006-32, 2006-28 I.R.B.61
2006-33, 2006-32 I.R.B.140
2006-34, 2006-38 I.R.B.460
2006-35, 2006-37 I.R.B.434
2006-36, 2006-38 I.R.B.498
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2006–1 through 2006–26 is in Internal Revenue Bulletin
2006–26, dated June 26, 2006.
2006–52 I.R.B.iiDecember 26, 2006

Revenue Procedures— Continued:
2006-37, 2006-38 I.R.B.499
2006-38, 2006-39 I.R.B.530
2006-39, 2006-40 I.R.B.600
2006-40, 2006-42 I.R.B.694
2006-41, 2006-43 I.R.B.777
2006-42, 2006-47 I.R.B.931
2006-43, 2006-45 I.R.B.849
2006-44, 2006-44 I.R.B.800
2006-45, 2006-45 I.R.B.851
2006-46, 2006-45 I.R.B.859
2006-47, 2006-45 I.R.B.869
2006-48, 2006-47 I.R.B.934
2006-49, 2006-47 I.R.B.936
2006-50, 2006-47 I.R.B.944
2006-51, 2006-47 I.R.B.945
2006-52, 2006-48 I.R.B.995
2006-53, 2006-48 I.R.B.996
2006-54, 2006-49 I.R.B.1035
2006-55, 2006-52 I.R.B.1151
2006-56, 2006-52 I.R.B.1169
Revenue Rulings:
2006-35, 2006-28 I.R.B.50
2006-36, 2006-36 I.R.B.353
2006-37, 2006-30 I.R.B.91
2006-38, 2006-29 I.R.B.80
2006-39, 2006-32 I.R.B.137
2006-40, 2006-32 I.R.B.136
2006-41, 2006-35 I.R.B.331
2006-42, 2006-35 I.R.B.337
2006-43, 2006-35 I.R.B.329
2006-44, 2006-36 I.R.B.361
2006-45, 2006-37 I.R.B.423
2006-46, 2006-39 I.R.B.511
2006-47, 2006-39 I.R.B.511
2006-48, 2006-39 I.R.B.516
2006-49, 2006-40 I.R.B.584
2006-50, 2006-41 I.R.B.672
2006-51, 2006-41 I.R.B.632
2006-52, 2006-43 I.R.B.761
2006-53, 2006-44 I.R.B.796
2006-54, 2006-45 I.R.B.834
2006-55, 2006-45 I.R.B.837
2006-56, 2006-46 I.R.B.874
2006-57, 2006-47 I.R.B.911
2006-58, 2006-46 I.R.B.876
2006-59, 2006-48 I.R.B.992
2006-60, 2006-48 I.R.B.977
2006-61, 2006-49 I.R.B.1028
2006-62, 2006-52 I.R.B.1142
2006-63, 2006-52 I.R.B.1143
Social Security Contribution and Benefit
Base; Domestic Employee Coverage
Threshold:
2006-102, 2006-46 I.R.B.909
Tax Conventions:
2006-80, 2006-45 I.R.B.840
2006-86, 2006-45 I.R.B.842
Treasury Decisions:
9265, 2006-27 I.R.B.1
9266, 2006-28 I.R.B.52
9267, 2006-34 I.R.B.313
9268, 2006-30 I.R.B.94
9269, 2006-30 I.R.B.92
9270, 2006-33 I.R.B.237
9271, 2006-33 I.R.B.224
9272, 2006-35 I.R.B.332
9273, 2006-37 I.R.B.394
9274, 2006-33 I.R.B.244
9275, 2006-35 I.R.B.327
9276, 2006-37 I.R.B.423
9277, 2006-33 I.R.B.226
9278, 2006-34 I.R.B.256
9279, 2006-36 I.R.B.355
9280, 2006-38 I.R.B.450
9281, 2006-39 I.R.B.517
9282, 2006-39 I.R.B.512
9283, 2006-41 I.R.B.633
9284, 2006-40 I.R.B.582
9285, 2006-41 I.R.B.656
9286, 2006-43 I.R.B.750
9287, 2006-46 I.R.B.896
9288, 2006-44 I.R.B.794
9289, 2006-45 I.R.B.827
9290, 2006-46 I.R.B.879
9291, 2006-46 I.R.B.887
9292, 2006-47 I.R.B.914
9293, 2006-48 I.R.B.957
9294, 2006-48 I.R.B.980
9295, 2006-49 I.R.B.1030
9296, 2006-50 I.R.B.1078
9297, 2006-50 I.R.B.1089
December 26, 2006iii2006–52 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2006–27 through 2006–52
Announcements:
2004-38
Modified by
Notice 2006-105, 2006-50 I.R.B.1093
2004-43
Amplified and modified by
Notice 2006-105, 2006-50 I.R.B.1093
2005-59
Updated and superseded by
Ann. 2006-45, 2006-31 I.R.B.121
2006-61
Corrected by
Ann. 2006-97, 2006-50 I.R.B.1108
Notices:
88-128
Supplemented by
Notice 2006-95, 2006-45 I.R.B.848
2002-45
Amplified by
Rev. Rul. 2006-36, 2006-36 I.R.B.353
2003-69
Amplified and superseded by
Notice 2006-101, 2006-47 I.R.B.930
2004-59
Amplified by
Notice 2006-105, 2006-50 I.R.B.1093
2004-61
Modified and superseded by
Notice 2006-95, 2006-45 I.R.B.848
2005-1
Modified by
Notice 2006-100, 2006-51 I.R.B.1109
2005-94
Superseded by
Notice 2006-100, 2006-51 I.R.B.1109
2006-20
Supplemented and modified by
Notice 2006-56, 2006-28 I.R.B.58
2006-27
Modified by
Ann. 2006-88, 2006-46 I.R.B.910
2006-28
Modified by
Ann. 2006-88, 2006-46 I.R.B.910
2006-53
Modified by
Notice 2006-71, 2006-34 I.R.B.316
Notices— Continued:
2006-67
Modified and superseded by
Notice 2006-77, 2006-40 I.R.B.590
Proposed Regulations:
REG-135866-02
Corrected by
Ann. 2006-64, 2006-37 I.R.B.447
Ann. 2006-65, 2006-37 I.R.B.447
REG-103039-05
Corrected by
Ann. 2006-98, 2006-51 I.R.B.1139
REG-134317-05
Corrected by
Ann. 2006-47, 2006-28 I.R.B.78
REG-112994-06
Corrected by
Ann. 2006-79, 2006-43 I.R.B.792
REG-118775-06
Corrected by
Ann. 2006-71, 2006-40 I.R.B.630
REG-124152-06
Corrected by
Ann. 2006-90, 2006-47 I.R.B.953
Revenue Procedures:
99-35
Modified and superseded by
Rev. Proc. 2006-40, 2006-42 I.R.B.694
2002-9
Modified and amplified by
Notice 2006-67, 2006-33 I.R.B.248
Notice 2006-77, 2006-40 I.R.B.590
Rev. Proc. 2006-43, 2006-45 I.R.B.849
Rev. Proc. 2006-56, 2006-52 I.R.B.1169
2002-37
Clarified, modified, amplified, and superseded by
Rev. Proc. 2006-45, 2006-45 I.R.B.851
2002-38
Clarified, modified, amplified, and superseded by
Rev. Proc. 2006-46, 2006-45 I.R.B.859
2002-41
Modified by
Rev. Proc. 2006-53, 2006-48 I.R.B.996
2002-52
Modified and superseded by
Rev. Proc. 2006-54, 2006-49 I.R.B.1035
2004-63
Superseded by
Rev. Proc. 2006-34, 2006-38 I.R.B.460
Revenue Procedures— Continued:
2005-41
Superseded by
Rev. Proc. 2006-29, 2006-27 I.R.B.13
2005-49
Superseded by
Rev. Proc. 2006-33, 2006-32 I.R.B.140
2005-65
Superseded by
Rev. Proc. 2006-55, 2006-52 I.R.B.1151
2005-67
Superseded by
Rev. Proc. 2006-41, 2006-43 I.R.B.777
2005-70
Amplified by
Rev. Proc. 2006-51, 2006-47 I.R.B.945
2005-78
Superseded by
Rev. Proc. 2006-49, 2006-47 I.R.B.936
2006-9
Amplified by
Rev. Proc. 2006-54, 2006-49 I.R.B.1035
2006-12
Modified by
Rev. Proc. 2006-37, 2006-38 I.R.B.499
2006-26
Modified and superseded by
Rev. Proc. 2006-54, 2006-49 I.R.B.1035
2006-33
Updated and clarified by
Ann. 2006-73, 2006-42 I.R.B.745
2006-35
Modified by
Notice 2006-90, 2006-42 I.R.B.688
2006-41
Corrected by
Ann. 2006-96, 2006-50 I.R.B.1108
Revenue Rulings:
72-238
Obsoleted by
REG-109367-06, 2006-41 I.R.B.683
73-558
Obsoleted by
REG-109367-06, 2006-41 I.R.B.683
75-296
Distinguished by
Rev. Rul. 2006-52, 2006-43 I.R.B.761
80-31
Distinguished by
Rev. Rul. 2006-52, 2006-43 I.R.B.761
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2006–1 through 2006–26 is in Internal Revenue Bulletin 2006–26, dated June 26, 2006.
2006–52 I.R.B.ivDecember 26, 2006

Revenue Rulings— Continued:
81-35
Amplified and modified by
Rev. Rul. 2006-43, 2006-35 I.R.B.329
81-36
Amplified and modified by
Rev. Rul. 2006-43, 2006-35 I.R.B.329
87-10
Amplified and modified by
Rev. Rul. 2006-43, 2006-35 I.R.B.329
92-75
Clarified by
Rev. Proc. 2006-54, 2006-49 I.R.B.1035
2002-41
Amplified by
Rev. Rul. 2006-36, 2006-36 I.R.B.353
2003-43
Amplified by
Notice 2006-69, 2006-31 I.R.B.107
2005-24
Amplified by
Rev. Rul. 2006-36, 2006-36 I.R.B.353
Treasury Decisions:
9244
Corrected by
Ann. 2006-91, 2006-47 I.R.B.953
9254
Corrected by
Ann. 2006-44, 2006-27 I.R.B.49
Ann. 2006-66, 2006-37 I.R.B.448
9258
Corrected by
Ann. 2006-46, 2006-28 I.R.B.76
9260
Corrected by
Ann. 2006-67, 2006-38 I.R.B.509
9262
Corrected by
Ann. 2006-56, 2006-35 I.R.B.342
9264
Corrected by
Ann. 2006-46, 2006-28 I.R.B.76
9272
Corrected by
Ann. 2006-68, 2006-38 I.R.B.510
9273
Corrected by
Ann. 2006-102, 2006-52 I.R.B.1184
9274
Corrected by
Ann. 2006-89, 2006-44 I.R.B.826
Treasury Decisions— Continued:
9276
Corrected by
Ann. 2006-83, 2006-44 I.R.B.822
Ann. 2006-85, 2006-45 I.R.B.873
9277
Corrected by
Ann. 2006-72, 2006-40 I.R.B.630
9280
Corrected by
Ann. 2006-78, 2006-42 I.R.B.748
9281
Corrected by
Ann. 2006-82, 2006-44 I.R.B.821
Ann. 2006-84, 2006-45 I.R.B.873
9286
Corrected by
Ann. 2006-105, 2006-52 I.R.B.1186
9292
Corrected by
Ann. 2006-104, 2006-52 I.R.B.1186
9293
Corrected by
Ann. 2006-103, 2006-52 I.R.B.1185
December 26, 2006v2006–52 I.R.B.

INDEX
Internal Revenue Bulletins 2006–27 through
2006–52
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Anti-cutback rules, section 411(d)(6) protected benefits (TD
9280) 38,450;correction(Ann78)42,748
Disaster relief, additional postponement under section 7508A for
filing certain 2004 and 2005 individual tax returns by certain
taxpayers affected by Hurricane Katrina (Notice 56) 28,58
Electronic media use for providing employee benefit notices and
making employee benefit elections and consents (TD 9294) 48,
980
Employee stock ownership plan (ESOP), disallowance of deduc-
tion for reacquisition payments (TD 9282) 39,512
Exempt organization employees, minimum coverage require-
mentsofsection410(b)(TD9275)35,327
Full funding limitations, weighted average interest rate:
For July 2006 (Notice 66) 30,99
For August 2006 (Notice 74) 35,339
For September 2006 (Notice 80) 40,594
For October 2006 (Notice 94) 43,777
For November 2006 (Notice 104) 48,995
For December 2006 (Notice 111) 52,1150
Pension Protection Act of 2006 modifications (Notice 75) 36,
366
Indian tribal government, Pension Protection Act of 2006 (Notice
89) 43,772
Minimum funding standards:
Alternative deficit reduction contribution (Notice 105) 50,
1093
Alternative funding schedule (Ann 70) 40,629
Nonbank trustee and nonbank custodian, approval list (Ann 45)
31,122
Qualified retirement plans:
Covered compensation tables for 2007, permitted disparity
(RR 60) 48,977
EMPLOYEE PLANS—Cont.
Defined contribution plans, diversification of employer secu-
rities (Notice 107) 51,1114
Government pick-up plans, employer contributions (RR 43)
35,329
Limitations on benefits and contributions, cost-of-living ad-
justments, 2007 (Notice 98) 46,906
Prohibited transaction excise tax, amount involved in elective
deferral (RR 38) 29,80
Regulations:
26 CFR 1.72(p)–1, revised; 1.132–9(b), amended;
1.401(a)–21, added; 1.401(k)–3, amended; 1.402(f)–1,
amended; 1.411(a)–11, amended; 1.417(a)(3)–1, amended;
1.7476–2, amended; 35.3405–1, amended; 54.4980F–1,
amended; use of electronic media for providing employee
benefit notices and making employee benefit elections and
consents (TD 9294) 48,980
26 CFR 1.162(k)–1, added; 1.404(k)–3, added; dividends
paid deduction for stock held in employee stock ownership
plan (TD 9282) 39,512
26 CFR 1.410(b)–0, –6, –10, amended; exclusion of employ-
ees of 501(c)(3) organizations in 401(k) and 401(m) plans
(TD 9275) 35,327
26 CFR 1.411(a)–8, amended; 1.411(d)–3, amended; section
411(d)(6) protected benefits (TD 9280) 38,450; correction
(Ann 78) 42,748
Roth IRAs, distributions of designated Roth contributions, public
hearing on REG–146459–05 (Ann 42) 27,48
Transition relief under section 409A, additional relief (Notice 79)
43,763
EMPLOYMENT TAX
Bankruptcy estate in chapter 11 cases filed on or after October 17,
2005, post-petition income of individual debtor (Notice 83) 40,
596
Collection:
Clarification of the way due process hearings are conducted:
Federal tax lien (TD 9290) 46,879
Prior to levy (TD 9291) 46,887
Controlled services transactions under section 482, treatment, al-
location of income and deductions from intangibles, and stew-
ardship expense (TD 9278) 34,256; (REG–146893–02) 34,
317
Delinquent tax, levy on wages, salary, and other income, exempt
amount tables (Notice 106) 49,1033
Disaster relief:
Additional postponement under section 7508A for filing cer-
tain 2004 and 2005 individual tax returns by certain taxpay-
ers affected by Hurricane Katrina (Notice 56) 28,58
Leave-sharing plans (Notice 59) 28,60
Disclosure of reportable transactions by taxpayers under section
6011 (REG–103038–05) 49,1049
Disclosure of return information, Bureau of Economic Analysis
(TD 9267) 34,313; (REG–148864–03) 34,320
Excess per diem allowances (RR 56) 46,874
2006–52 I.R.B.viDecember 26, 2006

EMPLOYMENT TAX—Cont.
Federal Insurance Contributions Act (FICA), application to pay-
ments made for certain services (TD 9266) 28,52
Offers in compromise, nonrefundable down payments required
(Notice 68) 31,105
Proposed Regulations:
26 CFR 31.3121(s)–1, amended; treatment of services under
section 482, allocation of income and deductions from in-
tangibles, stewardship expense (REG–146893–02) 34,317
26 CFR 31.6011–4, amended; AJCA modifications to the sec-
tion 6011 regulations (REG–103038–05) 49,1049
26 CFR 301.6103(j)(1)–1, amended; disclosure of re-
turn information to the Bureau of Economic Analysis
(REG–148864–03) 34,320
Publication 1141, General Rulesand Specifications for Substi-
tute Forms W-2 and W-3, revised (RP 55) 52,1151
Regulations:
26 CFR 31.3102–1, amended; 31.3121(a)–2, (a)(7)–1,
(a)(8)–1, (i)–1, amended; 31.3121(a)(10)–1, revised; ap-
plication of the Federal Insurance Contributions Act to
payments made for certain services (TD 9266) 28,52
26 CFR 31.3121(s)–1, amended; 31.3121(s)–1T, added; treat-
ment of services under section 482, allocation of income
and deductions from intangibles, stewardship expense (TD
9278) 34,256
26 CFR 31.3401(a)–1, –4, amended; 31.3402(g)–1, amended;
31.3402(j)–1, amended; 31.3402(n)–1, revised; flat rate
supplemental wage withholding (TD 9276) 37,423;cor-
rection (Ann 83) 44,822; additional correction (Ann 85)
45,873
26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T,
added; disclosure of return information to the Bureau of
Economic Analysis (TD 9267) 34,313
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(TD 9290) 46,879
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (TD 9291) 46,887
Smartcards and debit cards used toprovide qualified transporta-
tion fringes under section 132(f) (RR 57) 47,911
Social security contribution andbenefit base, domestic employee
coverage threshold, 2007 (Notice 102) 46,909
Substitute Forms W-2 and W-3, general rules and specifications
(RP 55) 52,1151
Supplemental wages, withholding (TD 9276) 37,423; correction
(Ann 83) 44,822; additional correction (Ann 85) 45,873
Tax effects of proposed chapter 12 plans (RP 52) 48,995
Tip reporting, Attributed Tip Income Program (ATIP) (RP 30)
31,110
ESTATE TAX
Collection:
Clarification of the way due process hearings are conducted:
Federal tax lien (TD 9290) 46,879
Prior to levy (TD 9291) 46,887
Cost-of-living adjustments for inflation for 2007 (RP 53) 48,996
Disaster relief, additional postponement under section 7508A for
filing certain 2004 and 2005 individual tax returns by certain
taxpayers affected by Hurricane Katrina (Notice 56) 28,58
Disclosure of reportable transactions by taxpayers under section
6011 (REG–103038–05) 49,1049
Disclosure of return information, Bureau of Economic Analysis
(TD 9267) 34,313; (REG–148864–03) 34,320
Offers in compromise, nonrefundable down payments required
(Notice 68) 31,105
Proposed Regulations:
26 CFR 20.6011–4, amended; AJCA modifications to the sec-
tion 6011 regulations (REG–103038–05) 49,1049
26 CFR 301.6103(j)(1)–1, amended; disclosure of re-
turn information to the Bureau of Economic Analysis
(REG–148864–03) 34,320
Regulations:
26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T,
added; disclosure of return information to the Bureau of
Economic Analysis (TD 9267) 34,313
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(TD 9290) 46,879
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (TD 9291) 46,887
Tax conventions, competent authority procedures (RP 54) 49,
1035
EXCISE TAX
Alternative fuel and alternative fuel mixtures claims, exemptions
for blood collector organizations (Notice 92) 43,774
Collection:
Clarification of the way due process hearings are conducted:
Federal tax lien (TD 9290) 46,879
Prior to levy (TD 9291) 46,887
Cost-of-living adjustments for inflation for 2007 (RP 53) 48,996
Disaster relief, additional postponement under section 7508A for
filing certain 2004 and 2005 individual tax returns by certain
taxpayers affected by Hurricane Katrina (Notice 56) 28,58
Disclosure of reportable transactions by taxpayers under section
6011 (REG–103038–05) 49,1049
Disclosure of return information, Bureau of Economic Analysis
(TD 9267) 34,313; (REG–148864–03) 34,320
Disclosure requirements with respect to prohibited tax shelter
transactions to which tax-exempt entities are parties (Notice
65) 31,102
Excise taxes with respect to prohibited tax shelter transactions to
which tax-exempt entities are parties (Notice 65) 31,102
December 26, 2006vii2006–52 I.R.B.

EXCISE TAX—Cont.
Health Savings Accounts (HSAs) under section 4980G, em-
ployer comparable contributions (TD 9277) 33,226
Offers in compromise, nonrefundable down payments required
(Notice 68) 31,105
Proposed Regulations:
26 CFR 53.6011–4, amended; 54.6011–4, amended;
AJCA modifications to the section 6011 regulations
(REG–103038–05) 49,1049
26 CFR 301.6103(j)(1)–1, amended; disclosure of re-
turn information to the Bureau of Economic Analysis
(REG–148864–03) 34,320
Regulations:
26 CFR 54.4980G–0 thru –5, added; employer comparable
contributions to Health Savings Accounts under section
4980G (TD 9277) 33,226
26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T,
added; disclosure of return information to the Bureau of
Economic Analysis (TD 9267) 34,313
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(TD 9290) 46,879
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (TD 9291) 46,887
Tax effects of proposed chapter 12 plans (RP 52) 48,995
Tickets for taxable transportation purchased from third party in-
termediaries, determination of tax base on amounts paid (RR
52) 43,761
EXEMPT ORGANIZATIONS
Disaster relief, additional postponement under section 7508A for
filing certain 2004 and 2005 individual tax returns by certain
taxpayers affected by Hurricane Katrina (Notice 56) 28,58
Disclosure of reportable transactions by taxpayers under section
6011 (REG–103038–05) 49,1049
Disclosure requirements with respect to prohibited tax shelter
transactions to which tax-exempt entities are parties (Notice
65) 31,102
Excise taxes with respect to prohibited tax shelter transactions to
which tax-exempt entities are parties (Notice 65) 31,102
List of organizations classifiedas private foundations (Ann 51)
32,222; (Ann 76) 42,746;(Ann92)48,1014; (Ann 99) 51,
1139; (Ann 101) 52,1181
Pension Protection Act of 2006, application of new excise taxes
enacted (Notice 109) 51,1121
Private foundation status procedures (Ann 93) 48,1017
Proposed regulations:
26 CFR 56.6011–4, amended; AJCA modifications to the sec-
tion 6011 regulations (REG–103038–05) 49,1049
Real estate investment trusts (REITs):
Allocation and reporting of excess inclusion income by REITs
and other pass-through entities (Notice 97) 46,904
EXEMPT ORGANIZATIONS—Cont.
Excess inclusion income allocable to charitable remainder
trust, unrelated business taxable income under section
860E(b) (RR 58) 46,876
Revocations (Ann 48) 31,135;(Ann54)33,254; (Ann 55) 35,
342;(Ann60)36,389; (Ann 69) 37,449; (Ann 75) 42,746;
(Ann 81) 44,821
GIFT TAX
Collection:
Clarification of the way due process hearings are conducted:
Federal tax lien (TD 9290) 46,879
Prior to levy (TD 9291) 46,887
Cost-of-living adjustments for inflation for 2007 (RP 53) 48,996
Disaster relief, additional postponement under section 7508A for
filing certain 2004 and 2005 individual tax returns by certain
taxpayers affected by Hurricane Katrina (Notice 56) 28,58
Disclosure of reportable transactions by taxpayers under section
6011 (REG–103038–05) 49,1049
Disclosure of return information, Bureau of Economic Analysis
(TD 9267) 34,313; (REG–148864–03) 34,320
Offers in compromise, nonrefundable down payments required
(Notice 68) 31,105
Proposed Regulations:
26 CFR 25.6011–4, amended; AJCA modifications to the sec-
tion 6011 regulations (REG–103038–05) 49,1049
26 CFR 301.6103(j)(1)–1, amended; disclosure of re-
turn information to the Bureau of Economic Analysis
(REG–148864–03) 34,320
Regulations:
26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T,
added; disclosure of return information to the Bureau of
Economic Analysis (TD 9267) 34,313
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(TD 9290) 46,879
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (TD 9291) 46,887
Tax conventions, competent authority procedures (RP 54) 49,
1035
INCOME TAX
Accounting methods:
Accounting period change:
For certain pass-through entities (RP 46) 45,859
For corporations (RP 45) 45,851
Advance consent to change procedures (RP 37) 38,499
Final bonus depreciation regulations (RP 43) 45,849
Nonaccrual-experience (NAE) method:
Procedures to request consent of Commissioner, for certain
changes to, from, or within NAE method (RP 56) 52,
1169
2006–52 I.R.B.viiiDecember 26, 2006

INCOME TAX—Cont.
Used by taxpayers using an accrual method of accounting
and performing services (TD 9285) 41,656
Revised instructions for Form 3115, Application for Change
in Accounting Method (Ann 52) 33,254
Accounts and notes receivable,section 1221(a)(4) capital asset
exclusion (REG–109367–06) 41,683
Allocation and accounting regulations under section 141, general
(REG–140379–02; REG–142599–02) 44,808
Annuities, exchanges of property for an annuity contract
(REG–141901–05) 47,947
Appeals arbitration program, establishment (RP 44) 44,800
Attained age for life insurance contract qualification (TD 9287)
46,896
Automatic approval to change certain section 861 methods of
apportioning expenses (RP 42) 47,931
Bankruptcy estate in chapter 11 cases filed on or after October 17,
2005, post-petition income of individual debtor (Notice 83) 40,
596
Base period T-bill rate, 2006 (RR 54) 45,834
Bond issue, administrative appeal of proposed adverse determi-
nation of tax-exempt status (RP 40) 42,694
Book-entry systems, foreign targeted registered bonds, interest
when no tax imposed (Notice 99) 46,907
Capitalization of amounts paid to acquire, produce, or improve
tangible property (REG–168745–03) 39,532
Charitable contributions:
Appraisal requirements (Notice 96) 46,902
Recordkeeping requirements, payroll deductions (Notice 110)
51,1127
Collection:
Clarification of the way due process hearings are conducted:
Federal tax lien (TD 9290) 46,879
Prior to levy (TD 9291) 46,887
IRS’s use of private collection agencies (PCAs) in 2006 (Ann
63) 37,445
Computer software, domestic production activities deduction un-
der section 199(c)(5)(B):
ChangeinhearinglocationforREG–111578–06(Ann53)33,
254
CorrectiontoTD9262(Ann56)35,342
Conservation Security Program (CSP), cost-share payments (RR
46) 39,511
Consolidated returns, basis reallocation, loss suspension, and ex-
piration of losses on certain stock dispositions, correction to
TD 9254 (Ann 44) 27,49;correction(Ann66)37,448
Controlled services cost methodunder section 482 regulations,
identification of specified eligible covered services (Ann 50)
34,321
Controlled services transactionsunder section 482, treatment, al-
location of income and deductions from intangibles, and stew-
ardship expense (TD 9278) 34,256; (REG–146893–02) 34,
317
Corporations:
Attribution of earnings and profits to stock of controlled
foreign corporations (REG–135866–02) 27,34; correction
(Ann 64) 37,447; additional corrections (Ann 65) 37,447
INCOME TAX—Cont.
Basis of built-in loss assets transferred and stock received in
exchange for such assets in certain nonrecognition transac-
tions (REG–110405–05) 48,1004
Distributions of interests in a loss corporation from qualified
trusts (TD 9269) 30,92
Elections, spin-offs, corporate distributions, section
355(b)(3)(C) elections, corporate reorganizations (No-
tice 81) 40,595
Exclusion from gross income of previously taxed earnings and
profits and related basis adjustments (REG–121509–00) 40,
602
Foreign corporation interest expense allocations, branch prof-
its tax election, branch profits tax liability reduction (TD
9281) 39,517;correction(Ann82)44,821; additional cor-
rections (Ann 84) 45,873; (REG–120509–06) 39,570
Information returns required with respect to certain foreign
corporations and certain foreign-owned domestic corpora-
tions (TD 9268) 30,94; (REG–109512–05) 30,100
Inversions, surrogate foreign corporations (Notice 70) 33,252
Look-through treatment of dividends from noncontrolled sec-
tion 902 corporations, correction to TD 9260 (Ann 67) 38,
509
Property used to purchase parent stock in certain triangular
reorganizations involving foreign corporations (Notice 85)
41,677
Surrogate foreign corporation status for purposes of section
7874 (TD 9265) 27,1; (REG–112994–06) 27,47; correc-
tion (Ann 79) 43,792
Cost-of-living adjustments for inflation for 2007 (RP 53) 48,996
Credits:
Alternative fuel motor vehicle credit (Notice 78) 41,675
Electricity produced from certain renewable resources, open-
loop biomass (Notice 88) 42,686
Enhanced oil recovery credit, 2006 inflation adjustment (No-
tice 62) 29,86
For income, war profits, excess profits taxes paid to foreign
country or U.S. possession (REG–124152–06) 36,368;cor-
rection(Ann90)47,953
Increasing research activities (TD 9296) 50,1078
Low-income housing credit:
Carryovers to qualified states, 2006 National Pool (RP 38)
39,530
Satisfactory bond, “bond factor” amounts for the period:
January through September 2006 (RR 37) 30,91
January through December 2006 (RR 51) 41,632
New energy efficient home credit, taxpayers may use either
RESNET Publication No. 05–001 or No. 06–001 to deter-
mine whether a dwelling unit qualifies (Ann 88) 46,910
New markets tax credit, low-income community business
(Notice 60) 29,82
Nonbusiness energy property, siding not component specifi-
cally and primarily designedto reduce heat loss or gain of
dwelling (Notice 71) 34,316
Railroad track maintenance credit (TD 9286) 43,750; correc-
tion(Ann105)52,1186; (REG–142270–05) 43,791
December 26, 2006ix2006–52 I.R.B.

INCOME TAX—Cont.
Work opportunity and welfare-to-work tax credits (Ann 49)
29,89
Debit cards used to reimburse participants in self-insured medical
reimbursement plans and dependent care assistance programs
(Notice 69) 31,107
Depreciation, additional first year depreciation deduction (TD
9283) 41,633
Disaster relief:
Additional postponement under section 7508A for filing cer-
tain 2004 and 2005 individual tax returns by certain taxpay-
ers affected by Hurricane Katrina (Notice 56) 28,58
Casualty and theft loss deductions attributable to Hurricanes
Katrina, Rita, and Wilma, safe harbor methods for individ-
uals, personal-use residential real property and certain per-
sonal belongings (RP 32) 28,61
Depreciation, Gulf Opportunity (GO) Zone additional first
year depreciation deduction (Notice 67) 33,248; modified
and superseded (Notice 77) 40,590
Leave-sharing plans (Notice 59) 28,60
Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 57) 35,343;
(Ann 94) 48,1017
Disclosure of reportable transactions by:
List maintenance rules under section 6112 for material advi-
sors (REG–103043–05) 49,1063
Material advisors under section 6111 (REG–103039–05) 49,
1057; correction (Ann 98) 51,1139
Taxpayers under section 6011 (REG–103038–05) 49,1049
Disclosure of return information:
Bureau of Economic Analysis (TD 9267) 34,313;
(REG–148864–03) 34,320
By certain officers and employeesfor investigative purposes
(TD 9274) 33,244; correction (Ann 89) 44,826
Disregarded entities under section 752, treatment (TD 9289) 45,
827
E-file:
Guidance necessary to facilitatebusiness electronic filing and
burden reduction, correction to TD 9264 (Ann 46) 28,76;
correction to REG–134317–05 (Ann 47) 28,78
Request for applications to participate in the 2007 IRS Indi-
vidual e-file Partnership Program (Ann 87) 44,822
Effect of elections in certain multi-step transactions (TD 9271)
33,224
Employee stock ownership plan (ESOP), disallowance of deduc-
tion for reacquisition payments (TD 9282) 39,512
Exempt organization employees, minimum coverage require-
mentsofsection410(b)(TD9275)35,327
Fast Track Settlement (FTS) for SB/SE taxpayers to expedite
case resolution (Ann 61) 36,390; correction (Ann 97) 50,1108
Forms:
1042-S, Foreign Person’s U.S. Source Income Subject to
Withholding, specificationsfor filing electronically or
magnetically (RP 34) 38,460
INCOME TAX—Cont.
1098, 1099, 5498 and W-2G, requirements for filing electron-
ically or magnetically (revised 8-2006) (RP 33) 32,140;
update to Publication 1220 affecting tax year 2006 filing of
information returns (Ann 73) 42,745
3115, Application for Change in Accounting Method, instruc-
tions revised May 2006 (Ann 52) 33,254
8027, Employer’s Annual Information Return of Tip Income
and Allocated Tips, specifications for filing electronically
or magnetically (RP 29) 27,13
8802, Application for United States Residency Certification,
user fees for processing (RP 35) 37,434
8830, Enhanced Oil Recovery Credit, credit phased out for
2006 (Ann 62) 37,444
8840, Closer Connection Exception Statement for Aliens, re-
vision (Notice 73) 35,339
8898, Statement for Individuals Who Begin or End Bona Fide
Residence in a U.S. Possession, postponement of filing date
for tax years 2001 through 2005 (Notice 57) 27,13; revision
(Notice 73) 35,339
Health reimbursement arrangements, taxable benefits of benefi-
ciaries (RR 36) 36,353
Health Savings Accounts (HSAs) under section 4980G, em-
ployer comparable contributions (TD 9277) 33,226; correc-
tion (Ann 72) 40,630
Housing cost amount eligible for exclusion or deduction, deter-
mination (Notice 87) 43,766
Income and currency gain or loss with respect to a section 987
qualified business unit (QBU) (REG–208270–86) 42,698
Income earned from a restricted country (Notice 84) 41,677
Indian tribal governments, limitation on issuance of tax-ex-
empt bonds, advance notice of proposed rulemaking,
REG–118788–06 (Ann 59) 36,388
Inflation adjustments, foreign earned income exclusion amount
(RP 51) 47,945
Information reporting:
For payments to attorneys, reporting of gross proceeds pay-
ments (TD 9270) 33,237
Requirements for:
Payments of interest on tax-exempt bonds (Notice 93) 44,
798
Qualified tuition and related expenses (Notice 72) 36,363
Installment agreement user fees (REG–148576–05) 40,627
Institute on Current Issues in International Taxation (Ann 77) 42,
748
Insurance companies:
Life-nonlife tacking rule, correction to TD 9258 (Ann 46) 28,
76
Net investment income included by foreign insurance com-
pany on U.S. income tax return, guidance regarding com-
putation of amount (RP 39) 40,600
Recomputed differential earnings rate for 2004 (RR 45) 37,
423
2006–52 I.R.B.xDecember 26, 2006

INCOME TAX—Cont.
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
July 2006 (RR 35) 28,50
August 2006 (RR 39) 32,137
September 2006 (RR 44) 36,361
October 2006 (RR 50) 41,672
November 2006 (RR 55) 45,837
December 2006 (RR 61) 49,1028
Portfolio interest rules as applied to payments made to part-
nerships and simple or grantor trusts (REG–118775–06) 28,
73; hearing rescheduled (Ann 58) 36,388; hearing can-
celled (Ann 71) 40,630
Rates:
Underpayments and overpayments, quarter beginning:
October 1, 2006 (RR 49) 40,584
January 1, 2007 (RR 63) 52,1143
Inventory:
LIFO, price indexes used by department stores for:
May 2006 (RR 40) 32,136
June 2006 (RR 41) 35,331
July 2006 (RR 48) 39,516
August 2006 (RR 53) 44,796
September 2006 (RR 59) 48,992
October 2006 (RR 62) 52,1142
Involuntary conversions, livestock sold on account of drought:
Extension of replacement period (Notice 82) 39,529
List of affected counties, extension of replacement period
(Notice 91) 42,688
Levy, use of superpriority lien arguments as a defense to (RR 42)
35,337
Marginal production rates, 2006 (Notice 61) 29,85
Mortality table used for reasonable mortality charges (Notice 95)
45,848
Native Alaskan whaling captains, substantiation of expenses (RP
50) 47,944
Nonqualified deferred compensation, permitted accelerated pay-
ment (Notice 64) 29,88
Offers in compromise, nonrefundable down payments required
(Notice 68) 31,105
Office of Appeals, procedures for closing cases involving unset-
tled listed transactions (Ann 100) 51,1141
Optional standard mileage rates, 2007 (RP 49) 47,936
Partnerships:
Allocation of creditable foreign taxes (TD 9292) 47,914;cor-
rection (Ann 104) 52,1186
Portfolio interest rules as applied to payments made to part-
nerships and simple or grantor trusts (REG–118775–06) 28,
73
Patriots’ Day 2007, extension of time to file (Notice 103) 47,931
Penalties, substantial understatement, preparer penalty (RP 48)
47,934
Per diem allowances (RP 41) 43,777; correction (Ann 96) 50,
1108
INCOME TAX—Cont.
Postponement of filing date forForm 8898, Statement for Indi-
viduals Who Begin or End Bona Fide Residence in a U.S. Pos-
session, for tax years 2001 through 2005 (Notice 57) 27,13
Private foundations, organizations now classified as (Ann 51) 32,
222; (Ann 76) 42,746; (Ann 92) 48,1014; (Ann 99) 51,1139;
(Ann 101) 52,1181
Procedures for requesting specialstatistical studies and compila-
tions involving return information (RP 36) 38,498
Proposed Regulations:
26 CFR 1.45G–0, –1, added; railroad track maintenance credit
(REG–142270–05) 43,791
26 CFR 1.72–6(e), added; 1.1001–1(h), (i), (j), added; ex-
changes of property for an annuity (REG–141901–05) 47,
947
26 CFR 1.141–0, –1, –13, –15, amended; 1.141–6, re-
vised; 1.145–2, amended; general allocation and account-
ing regulations under section 141 (REG–140379–02;
REG–142599–02) 44,808
26 CFR 1.141–4, revised; 1.141–15, amended; treat-
ment of payments in lieu of taxes under section 141
(REG–136806–06) 47,950
26 CFR 1.162–4, revised; 1.263(a)–0, amended; 1.263(a)–1
thru –3, revised; guidance regarding deduction and cap-
italization of expenditures related to tangible property
(REG–168745–03) 39,532
26 CFR 1.199–2, –3, –5, –7, –8, amended; TIPRA amend-
ments to section 199 (REG–127819–06) 48,1013
26 CFR 1.358–2, amended; 1.362–3, –4, added; 1.367–1,
amended; 1.705–1, amended; limitations on transfers of
built-in losses (REG–110405–05) 48,1004
26 CFR 1.367(b)–2, –4, revised; 1.1248–1, –2, –3, –7, re-
vised; 1.1248–8, added; section 1248 attribution principles
(REG–135866–02) 27,34;correction(Ann64)37,447;ad-
ditional corrections (Ann 65) 37,447
26 CFR 1.482–0, –1, –2, –4, –6, –8, amended; 1.482–9,
added; 1.861–8, amended; 1.6038A–3(a)(3), amended;
1.6662–6, amended; treatment of services under section
482, allocation of income and deductions from intangibles,
stewardship expense (REG–146893–02) 34,317
26 CFR 1.671–5, amended; reporting rules for widely held
fixed investment trusts (REG–125071–06) 36,375
26 CFR 1.706–1, amended; 1.901–2, revised; definition of
taxpayer for purposes of section 901 and related matters
(REG–124152–06) 36,368; correction (Ann 90) 47,953
26 CFR 1.853–1 thru –4, amended; elimination of country-by-
country reporting to shareholders of foreign taxes paid by
regulated investment companies (RICs) (REG–105248–04)
43,787
26 CFR 1.860A–1, amended; 1.860G–3, amended; 1.863–1,
amended; 1.1441–2, amended; REMIC residual interests-
accounting for REMIC net income (including any excess
inclusions (foreign holders) (REG–159929–02) 35,341
December 26, 2006xi2006–52 I.R.B.

INCOME TAX—Cont.
26 CFR 1.861–9T, amended; 1.985–1, amended; 1.985–5,
revised; 1.987–1 thru –4, –6 thru –11, added; 1.987–5,
revised, 1.988–1, –4, amended; 1.989(a)–1, amended;
1.989(c)–1, removed; incomeand currency gain or loss
with respect to a section 987 qualified business unit (QBU)
(REG–208270–86) 42,698
26 CFR 1.871–14, amended; 1.881–2, amended; revisions to
regulations relating to repeal of tax on interest of nonres-
ident alien individuals and foreign corporations received
from certain portfolio debt investments (REG–118775–06)
28,73; hearing rescheduled (Ann 58) 36,388; hearing can-
celled (Ann 71) 40,630
26 CFR 1.882–5, amended; 1.884–1, amended; determina-
tion of interest expense deduction of foreign corporations
(REG–120509–06) 39,570
26 CFR 1.959–1 thru –4, revised; 1.961–1, –2, revised;
1.961–3, –4, added; 1.1502–12, –32, revised; exclusion
from gross income of previously taxed earnings and prof-
its, and adjustments to basis of stock in controlled foreign
corporations and of other property (REG–121509–00) 40,
602
26 CFR 1.985–3, amended; United States dollar approximate
separate transactions method (REG–118897–06) 31,120
26 CFR 1.1221–1, amended; section 1221(a)(4) capital asset
exclusion accounts and notesreceivable (REG–109367–06)
41,683
26 CFR 1.6011–4, revised; AJCA modifications to the section
6011 regulations (REG–103038–05) 49,1049
26 CFR 1.6038–2, amended; 1.6038A–2, amended; informa-
tion returns required with respect to certain foreign cor-
porations and certain foreign-owned domestic corporations
(REG–109512–05) 30,100
26 CFR 1.7874–2, added; guidance regarding expatriated en-
tities and their foreign parents (REG–112994–06) 27,47;
correction (Ann 79) 43,792
26 CFR 300.0, amended; 300.4, .5, .6, added; user fees relat-
ing to enrollment (REG–145154–05) 39,567
26 CFR 300.1(b), .2(b), amended; user fees for processing
installment agreements (REG–148576–05) 40,627
26 CFR 301.6103(j)(1)–1, amended; disclosure of re-
turn information to the Bureau of Economic Analysis
(REG–148864–03) 34,320
26 CFR 301.6111–3, added; AJCA modifications to the sec-
tion 6111 regulations (REG–103039–05) 49,1057; correc-
tion (Ann 98) 51,1139
26 CFR 301.6112–1, revised; AJCA modifications to the sec-
tion 6112 regulations (REG–103043–05) 49,1063
Publications:
515, Withholding of Tax on Nonresident Aliens and Foreign
Entities, supplemental tables (Ann 80) 45,840
901, U.S. Tax Treaties, supplemental tables (Ann 80) 45,840
1141, General Rules and Specifications for Substitute Forms
W-2 and W-3, revised (RP 55) 52,1151
1187, Specifications for Filing Form 1042-S, Foreign Per-
son’s U.S. Source Income Subject to Withholding, Elec-
tronically or Magnetically, revised (RP 34) 38,460
INCOME TAX—Cont.
1220, Specifications for Filing Forms 1098, 1099, 5498 and
W-2G Electronically or Magnetically, 2006 revision (RP
33) 32,140; updates affecting taxyear 2006 filing of in-
formation returns (Ann 73) 42,745
1239, Specifications for Filing Form 8027, Employer’s An-
nual Information Return of TipIncome and Allocated Tips,
Electronically or Magnetically, revised (RP 29) 27,13
Qualifying child, definition andtie-breaking rule (Notice 86) 41,
680
Real Estate Investment Trusts (REITs)
Allocation and reporting of excess inclusion income by REITs
and other pass-through entities (Notice 97) 46,904
Excess inclusion income allocable to charitable remainder
trust, unrelated business taxable income under section
860E(b) (RR 58) 46,876
Income tests, rents from real property (Notice 58) 28,59
Real Estate Mortgage Investment Conduit (REMIC), allocation
of income to foreign persons by certain entities (TD 9272) 35,
332; correction (Ann 68) 38,510; (REG–159929–02) 35,341
Record retention requirements for tax-exempt bonds (Notice 63)
29,87
Regulated investment companies (RICs), foreign taxes
(REG–105248–04) 43,787
Regulations:
26 CFR 1.41–0, revised; 1.41–6, –8, added; 1.41–6T, –8T,
removed; credit for increasing research activities (TD 9296)
50,1078
26 CFR 1.45G–0T, –1T, added; 602.101, amended; railroad
track maintenance credit (TD 9286) 43,750; correction
(Ann 105) 52,1186
26 CFR 1.48–12, amended; 1.167(a)–14, amended;
1.167(a)–14T, removed;1.168(d)–1, amended;
1.168(d)–1T, amended; 1.168(i)–6T, amended; 1.168(k)–0,
–1, added; 1.168(k)–0T, –1T, removed; 1.169–3, amended;
1.169–3T, removed; 1.312–15, amended; 1.1400L(b)–1,
added; 1.1400L(b)–1T, removed; special depreciation
allowance (TD 9283) 41,633
26 CFR 1.162(k)–1, added; 1.404(k)–3, added; dividends
paid deduction for stock held in employee stock ownership
plan (TD 9282) 39,512
26 CFR 1.199–0, –2, –3, –3T, –5, –7, –8, –8T, amended;
1.199–2T, –5T, –7T, added; TIPRA amendments to section
199 (TD 9293) 48,957; correction (Ann 103) 52,1185
26 CFR 1.199–3T, –8T, amended; computer software under
section199(c)(5)(B),correctiontoTD9262(Ann56)35,
342
26 CFR 1.338–3, amended; 1.338(h)(10)–1, amended;
1.338(h)(10)–1T, removed; effect of elections in certain
multi-step transactions (TD 9271) 33,224
26 CFR 1.358–1, –2(c), amended; 1.1502–19T, –32,
amended; determination of basis of stock or securities
received in exchange for, or with respect to, stock or
securities in certain transactions, treatment of excess loss
accounts, correction to TD 9244 (Ann 91) 47,953
2006–52 I.R.B.xiiDecember 26, 2006

INCOME TAX—Cont.
26 CFR 1.367(b)–0 thru –3, amended; 1.367(b)–6, revised;
1.367(b)–7, –8, –9, added; 1.381(a)–1, revised; stock trans-
fer rules, carryover of earnings and taxes (TD 9273) 37,
394; correction (Ann 102) 52,1184
26 CFR 1.382–1, amended; 1.382–10, added; 1.382–10T, re-
moved; distributions of interests in a loss corporation from
qualified trusts (TD 9269) 30,92
26 CFR 1.410(b)–0, –6, –10, amended; exclusion of employ-
ees of 501(c)(3) organizations in 401(k) and 401(m) plans
(TD 9275) 35,327
26 CFR 1.448–2, added; 1.448–2T, removed; 602.101,
amended; nonaccrual-experience method of accounting
under section 448(d)(5) (TD 9285) 41,656
26 CFR 1.482–0, –1, –2, –4, –6, –8, amended; 1.482–0T, –1T,
–2T, –4T, –6T, –8T, –9T, added; 1.861–8, –8T, amended;
1.6038–3(a)(3), amended; 1.6038A–3T, added; 1.6662–6,
amended; 1.6662–6T, added; treatment of services under
section 482, allocation of income and deductions from in-
tangibles, stewardship expense (TD 9278) 34,256
26 CFR 1.671–5, amended; 1.671–5T, added; reporting rules
for widely held fixed investment trusts (TD 9279) 36,355
26 CFR 1.704–1, amended; 1.704–1T, removed; partner’s
distributive share, foreign tax expenditures (TD 9292) 47,
914; correction (Ann 104) 52,1186
26 CFR 1.704–2, amended; 1.752–2, amended; 602.101, re-
vised; treatment of disregarded entities under section 752
(TD 9289) 45,827
26 CFR 1.860A–0, –1, amended; 1.860A–1T, added;
1.860G–3, amended; 1.860G–3T, added; 1.863–0, –1,
amended; 1.863–1T, added; 1.1441–0, –2, amended;
1.1441–2T, added; REMIC residual interests-accounting
for REMIC net income (including any excess inclusions)
(foreign holders) (TD 9272) 35,332; correction (Ann 68)
38,510
26 CFR 1.882–0, –5, amended; 1.882–5T, added; 1.884–1,
amended; 1.884–1T, added; 602.101, amended; determina-
tion of interest expense deduction of foreign corporations
(TD 9281) 39,517;correction(Ann82)44,821; additional
corrections (Ann 84) 45,873
26 CFR 1.904–4, amended; application of separate limitations
to dividends from noncontrolled section 902 corporations,
correctiontoTD9260(Ann67)38,509
26 CFR 1.937–1, amended; residence rules involving U.S.
possessions (TD 9297) 50,1089
26 CFR 1.1502–35, amended; suspension of losses on certain
stock dispositions, correction to TD 9254 (Ann 44) 27,49;
correction (Ann 66) 37,448
26 CFR 1.1502–76T, amended; 1.1563–1, amended; 602.101,
amended; amendment of tacking rule requirements of life-
nonlife consolidated regulations, and guidance necessary to
facilitate business electronic filing and burden reduction,
correction to TD 9258 and TD 9264 (Ann 46) 28,76
26 CFR 1.6011–4, amended; 1.6011–4T, added;
301.6111–3T, added; 301.6112–1, amended; AJCA mod-
ifications to the section 6011, 6111, and 6112 regulations
(TD 9295) 49,1030
INCOME TAX—Cont.
26 CFR 1.6038–2, –2T, amended; 1.6038A–2, –2T, amended;
602.101(b), amended; information returns required with re-
spect to certain foreign corporations and certain foreign-
owned domestic corporations (TD 9268) 30,94
26 CFR 1.6041–1, –3, amended; 1.6045–5, added; reporting
of gross proceeds payments to attorneys (TD 9270) 33,237
26 CFR 1.7702–0, –2, added; attained age of the insured under
section 7702 (TD 9287) 46,896
26 CFR 1.7874–2T, added; guidance regarding expatriated
entities and their foreign parents (TD 9265) 27,1
26 CFR 54.4980G–0 thru –5, added; employer comparable
contributions to Health Savings Accounts under section
4980G (TD 9277) 33,226; correction (Ann 72) 40,630
26 CFR 300.0, amended; 300.4, .5, .6, added; user fees relat-
ing to enrollment (TD 9288) 44,794
26 CFR 301.6103(j)(1)–1, amended; 301.6103(j)(1)–1T,
added; disclosure of return information to the Bureau of
Economic Analysis (TD 9267) 34,313
26 CFR 301.6103(k)(6)–1, added; 301.6103(k)(6)–1T, re-
moved; disclosure of return information by certain officers
and employees for investigative purposes (TD 9274) 33,
244; correction (Ann 89) 44,826
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(TD 9290) 46,879
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (TD 9291) 46,887
26 CFR 301.6502–1, revised; collection after assessment (TD
9284) 40,582
Reporting and withholding under section 409A (Notice 100) 51,
1109
Return transcripts or records, request for copy, Income Verifica-
tion Express Service (IVES) program (Ann 74) 42,746
Revocations, exempt organizations (Ann 48) 31,135; (Ann 54)
33,254;(Ann55)35,342; (Ann 60) 36,389;(Ann69)37,
449; (Ann 75) 42,746;(Ann81)44,821
Revoking an election under section 83(b) (RP 31) 27,32
Ruling requests regarding reportable transactions, removal of
tolling provision (TD 9295) 49,1030
Settlement initiative for employees of foreign embassies, foreign
consular offices, and international organizations in the United
States (Ann 95) 50,1105
Smartcards and debit cards used toprovide qualified transporta-
tion fringes under section 132(f) (RR 57) 47,911
Standard Industry Fare Level (SIFL) formula (RR 47) 39,511
Statute of limitations for collection, extension (TD 9284) 40,582
Stocks:
Determination of basis of stock and securities received in cer-
tain transactions, correction to TD 9244 (Ann 91) 47,953
Stock transfer rules, carryover of earnings and taxes (TD
9273) 37,394; correction (Ann 102) 52,1184
Substitute Forms W-2 and W-3, general rules and specifications
(RP 55) 52,1151
December 26, 2006xiii2006–52 I.R.B.

INCOME TAX—Cont.
Tax conventions:
Competent authority procedures (RP 54) 49,1035
U.S.-Bangladesh income tax treaty, tax rate tables (Ann 80)
45,840
U.S. income tax treaties that meet the requirements of section
1(h)(11)(C)(i)(II) (Notice 101) 47,930
U.S.-Sweden income tax protocol, tax rate tables (Ann 80) 45,
840
U.S.-U.K. dual consolidated loss competent authority agree-
ment (Ann 86) 45,842
Tax effects of proposed chapter 12 plans (RP 52) 48,995
Tax Exempt Bond (TEB) Mediation Pilot Program, one-year re-
newal (Ann 43) 27,48
Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)
amendments to section 199 (TD 9293) 48,957; correction
(Ann 103) 52,1185; (REG–127819–06) 48,1013
Tolling provision relating to ruling requests regarding reportable
transactions, removal (TD 9295) 49,1030
Transition relief under section 409A, additional relief (Notice 79)
43,763
Treatment of payments in lieu of taxes under section 141
(REG–136806–06) 47,950
Tuition and related expenses, qualified, information reporting re-
quirements (Notice 72) 36,363
United States dollar approximate separate transactions method
(DASTM) (REG–118897–06) 31,120
U.S. possessions:
Determination of bona fide residence (TD 9297) 50,1089
Examples for determining whether income is U.S. possession
source or effectively connected with trade or business in
U.S. possession (Notice 76) 38,459
User fees:
Enrollment examinations, enrollment of enrolled agents, re-
newal of enrollment (REG–145154–05) 39,567; (TD 9288)
44,794
Installment agreement (REG–148576–05) 40,627
Processing Form 8802, Application for United States Resi-
dency Certification (RP 35) 37,434; delay in the effective
date of new user fees (Notice 90) 42,688
Wages, methods of determining “paragraph (e)(1) wages” for
purposes of section 199 (RP 47) 45,869
Widely held fixed investment trusts (WHFITs), reporting re-
quirements (TD 9279) 36,355; (REG–125071–06) 36,375
SELF-EMPLOYMENT TAX
Bankruptcy estate in chapter 11 cases filed on or after October 17,
2005, post-petition income of individual debtor (Notice 83) 40,
596
Collection:
Clarification of the way due process hearings are conducted:
Federal tax lien (TD 9290) 46,879
Prior to levy (TD 9291) 46,887
SELF-EMPLOYMENT TAX—Cont.
Disaster relief, additional postponement under section 7508A for
filing certain 2004 and 2005 individual tax returns by certain
taxpayers affected by Hurricane Katrina (Notice 56) 28,58
Offers in compromise, nonrefundable down payments required
(Notice 68) 31,105
Regulations:
26 CFR 301.6320–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing upon filing of notice of federal tax lien
(TD 9290) 46,879
26 CFR 301.6330–1, amended; miscellaneous changes to col-
lection due process procedures relating to notice and oppor-
tunity for hearing prior to levy (TD 9291) 46,887
Tax effects of proposed chapter 12 plans (RP 52) 48,995
Treatment of payments made by the United States Department of
Agriculture under the Conservation Reserve Program (CRP)
(Notice 108) 51,1118
2006–52 I.R.B.xivDecember 26, 2006

December 26, 20062006–52 I.R.B.

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