Internal Revenue Bulletin: 2006-46
November 13, 2006
Table of Contents
Charitable remainder trust; real estate investment trust (REIT). This ruling illustrates the application of section 860E of the Code where a charitable remainder trust is a shareholder of a real estate investment trust (REIT) or a partner of a partnership, and the REIT or the partnership has excess inclusion income.
Final regulations under section 7702 of the Code explain how to determine the attained age of an insured for purposes of testing whether a contract qualifies as a life insurance contract for federal income tax purposes.
Final regulations under section 6320 of the Code relate to a taxpayer’s right to a hearing after the filing of a notice of federal tax lien (NFTL). The regulations make certain clarifying changes in the way collection due process hearings are conducted and specify the period during which a taxpayer may request an equivalent hearing.
Final regulations under section 6330 of the Code relate to a taxpayer’s right to a hearing before or after levy. The regulations make certain clarifying changes in the way collection due process hearings are conducted and specify the period during which a taxpayer may request an equivalent hearing.
This notice provides transitional guidance on the new definitions of “qualified appraisal” and “qualified appraiser” in section 170(f)(11) of the Code for purposes of substantiating deductions for charitable contributions of property. The notice also provides guidance on complying with new section 6695A, regarding penalties for appraisals that result in substantial or gross valuation misstatements under section 6662.
This notice provides interim guidance (and requests comments and suggestions for further guidance) under sections 860E(d) and 7701(i)(3) of the Code, relating to the taxation and reporting of excess inclusion income of pass-through entities, including real estate investment trusts (REITs) that own taxable mortgage pools or residual interests in real estate mortgage investment conduits (REMICs).
This notice provides guidance on withholding and information reporting on foreign persons and includes guidance on certain book-entry systems in foreign countries. It also announces that the IRS and Treasury intend to issue regulations providing that regulations section 1.871-14(e), dealing with foreign targeted registered obligations, will not apply to obligations issued after December 31, 2006, except in limited circumstances. Finally, this notice announces that the IRS and Treasury intend to issue regulations retroactively removing the rule in regulations section 1.1441-1(b)(7)(iii) that purports to impose interest under section 6601 when no underlying tax liability has in fact been imposed.
This announcement is a ministerial update to Notice 2006-27, 2006-11 I.R.B. 626, and Notice 2006-28, 2006-11 I.R.B. 628, and announces that taxpayers may use either RESNET Publication No. 05-001 or RESNET Publication No. 06-001 to determine whether a dwelling unit qualifies for the new energy efficient home credit. This announcement also provides for developers of software to submit applications to be included on a public list of software programs that may be used in calculating energy consumption for purposes of obtaining a section 45L certification by using standards prescribed in either RESNET publication. This change is effective for new energy efficient homes acquired after December 31, 2005. Notices 2006-27 and 2006-28 modified.
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