Table of Contents

• Highlights of This Issue
  • SPECIAL ANNOUNCEMENT
    • Announcement 2006-22
  • INCOME TAX
    • Notice 2006-38
  • EMPLOYEE PLANS
    • T.D. 9256
  • EXEMPT ORGANIZATIONS
    • Announcement 2006-24
• Preface
  • The IRS Mission
  • Introduction
• Part I. Rulings and Decisions Under the Internal Revenue Code of 1986
  • T.D. 9256
    • AGENCY:
    • ACTION:
    • SUMMARY:
    • DATES:
    • FOR FURTHER INFORMATION CONTACT:
    • SUPPLEMENTARY INFORMATION:
      • Paperwork Reduction Act
      • Background
      • Explanation of Provisions
      • Dates of Applicability
      • Special Analyses
    • Amendments to the Regulations
      • PART 1—INCOME TAXES
    • Drafting Information
• Part III. Administrative, Procedural, and Miscellaneous
  • Notice 2006-38
    • I. PURPOSE
    • II. BACKGROUND
    • III. AFFECTED AREAS
    • IV. RELIEF PROVIDED
      • A. QUALIFIED REHABILITATED BUILDINGS PLACED IN SERVICE BEFORE HURRICANES KATRINA, RITA, AND WILMA, AND DAMAGED BY THOSE HURRICANES
      • B. PROPERTIES UNDERGOING REHABILITATION AT THE TIME OF HURRICANES KATRINA, RITA, AND WILMA
    • V. DRAFTING INFORMATION
• Part IV. Items of General Interest
  • Announcement 2006-22
    • Background
    • Advance Pricing Agreements
    • The APA Program
    • The APA Process
      • (1) Application
      • (2) Due Diligence
      • (3) Analysis
      • (4) Discussion and Agreement
      • (5) Drafting, Review, and Execution
    • Model APA at Attachment A [§ 521(b)(2)(B)]
    • The Current APA Office Structure, Composition, and Operation
      • APA Training
    • APA Program Statistical Data [§ 521(b)(2)(C) and (E)]
      • TABLE 1: APA APPLICATIONS, EXECUTED APAs, AND PENDING APAs
      • TABLE 2: MONTHS TO COMPLETE APAs
      • TABLE 3: APA COMPLETION TIME - MONTHS PER APA
      • TABLE 4: RECOMMENDED NEGOTIATING POSITIONS
      • TABLE 5: MONTHS TO COMPLETE RECOMMENDED NEGOTIATING POSITIONS
      • TABLE 6: RECOMMENDED NEGOTIATING POSITIONS COMPLETION TIME - MONTHS PER APA
      • TABLE 7: UNILATERAL APAs - TIME IN INVENTORY - MONTHS PER APA
      • TABLE 8: BILATERAL APAs - TIME IN INVENTORY - MONTHS PER APA
      • TABLE 9: SMALL BUSINESS TAXPAYER APAs
      • TABLE 10: MONTHS TO COMPLETE SMALL BUSINESS TAXPAYER APAs
      • TABLE 11: INDUSTRIES COVERED
    • Trades or Businesses [§ 521(b)(2)(D)(i)]
      • TABLE 12: NATURE OF RELATIONSHIPS BETWEEN RELATED ENTITIES
    • Covered Transactions [§ 521(b)(2)(D)(ii)]
      • TABLE 13: TYPES OF COVERED TRANSACTIONS
      • TABLE 14: TYPES OF SERVICES INCLUDED IN COVERED TRANSACTIONS
    • Business Functions Performed and Risks Assumed [§ 521(b)(2)(D)(ii)]
      • TABLE 15: FUNCTIONS PERFORMED BY THE TESTED PARTY
      • TABLE 16: RISKS ASSUMED BY THE TESTED PARTY
    • Discussion
    • Related Organizations, Trades, or Businesses Whose Prices or Results are Tested to Determine Compliance with APA Transfer Pricing Methods [§ 521(b)(2)(D)(iii)]
      • TABLE 17: RELATED ORGANIZATIONS, TRADES, OR BUSINESSES WHOSE PRICES OR RESULTS ARE TESTED
    • Transfer Pricing Methods and the Circumstances Leading to the Use of Those Methods [§ 521(b)(2)(D)(iv)]
      • TABLE 18: TRANSFER PRICING METHODS USED FOR TRANSFERS OF TANGIBLE AND INTANGIBLE PROPERTY
      • TABLE 19: TRANSFER PRICING METHODS USED FOR SERVICES
      • TABLE 20: TRANSFER PRICING METHODS USED FOR FINANCIAL PRODUCTS
    • Discussion
    • Critical Assumptions [§ 521(b)(2)(D)(v)]
      • TABLE 21: CRITICAL ASSUMPTIONS
    • Discussion
    • Sources of Comparables, Selection Criteria, and the Nature of Adjustments to Comparables and Tested Parties [§ 521(b)(2)(D)(v), (vi), and (vii)]
      • TABLE 22: SOURCES OF COMPARABLES
      • TABLE 23: COMPARABLE SELECTION CRITERIA
      • TABLE 24: ADJUSTMENTS TO COMPARABLES OR TESTED PARTIES
    • Discussion
    • Sources of Comparables
    • Selecting Comparables
      • TABLE 25: COMPARABILITY SCREENS
    • Adjusting Comparables
    • Nature of Ranges and Adjustment Mechanisms [§ 521(b)(2)(D)(viii)-(ix)]
      • TABLE 26: TYPES OF RANGES
      • TABLE 27: ADJUSTMENTS WHEN OUTSIDE OF THE RANGE
    • Discussion
    • Adjustments
    • APA Term and Rollback Lengths [§ 521(b)(2)(D)(x)]
      • TABLE 28: TERMS OF APAs
      • TABLE 29: NUMBER OF YEARS COVERED BY ROLLBACK OF APA TPM
    • Nature of Documentation Required [§ 521(b)(2)(D)(xi)]
      • TABLE 30: NATURE OF DOCUMENTATION REQUIRED
    • Approaches for Sharing of Currency or Other Risks [§ 521(b)(2)(D)(xii)]
    • Efforts to Ensure Compliance with APAs [§ 521(b)(2)(F)]
      • TABLE 31: STATISTICS OF ANNUAL REPORTS
  • Announcement 2006-23
    • Consent Suspensions From Practice Before the Internal Revenue Service
    • Expedited Suspensions From Practice Before the Internal Revenue Service
    • Suspensions From Practice Before the Internal Revenue Service After Notice and an Opportunity for a Proceeding
    • Disbarments From Practice Before the Internal Revenue Service After Notice and an Opportunity for a Proceeding
    • Censure Issued by Consent
    • Resignations of Enrolled Agents
  • Announcement 2006-24
• Definition of Terms and Abbreviations
  • Definition of Terms
  • Abbreviations
• Numerical Finding List
  • Numerical Finding List
• Effect of Current Actions on Previously Published Items
  • Finding List of Current Actions on Previously Published Items
• How to get the Internal Revenue Bulletin
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  • We Welcome Comments About the Internal Revenue Bulletin