Internal Revenue Bulletin: 2008-40
October 6, 2008
Table of Contents
Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for October 2008.
Proposed regulations under section 170 of the Code provide guidance concerning the substantiation and reporting requirements for cash and noncash charitable contributions. The regulations generally revise existing regulations to implement changes to the substantiation and reporting rules made by the American Jobs Creation Act of 2004 and the Pension Protection Act of 2006.
Proposed regulations under section 45D of the Code provide clarification of the redemption rules, the partnership redemption safe harbor, and the breadth of the reasonable expectations test. The regulations also revise and clarify certain rules relating to recapture of the new markets tax credit under section 45D. A public hearing is scheduled for December 12, 2008.
This notice informs trustees and middlemen of widely held fixed investment trusts (WHFITs) that the Service will not assert penalties under regulations section 1.671-5(m) with respect to calendar year 2008. The notice also informs trustees and middlemen of widely held mortgage trusts (WHMTs) that, pending future published guidance, certain modifications of mortgages held by a WHMT that has entered into a guarantee arrangement are not required to be reported under the WHFIT reporting rules.
This notice provides guidance relating to amendments made by certain provisions of the Housing Assistance Tax Act of 2008. The notice provides allocations of the temporary increase in volume cap, procedures for filing the carryforward elections with respect to this volume cap as well as for reporting bonds issued pursuant to this volume cap, and clarification that mortgage credit certificates may be used to refinance subprime mortgage loans and may utilize the temporary increase in volume cap. The notice provides a list of certain military installations that are eligible for an exception from income determinations of payments of the basic housing allowance. The notice also provides guidance on the temporary exception from the prohibition against federal guarantees of tax-exempt bonds for guarantees provided by Federal Home Loan Banks. Notice 88-80 modified.
This notice proposes a revenue procedure that would modify Rev. Proc. 2003-84, 2003-2 C.B. 1159, by providing additional criteria that must be met in order for tax-exempt bond partnerships to be eligible to make an election that enables the partners to take into account monthly the inclusions required under sections 702 and 707(c) of the Code, including specifying a minimum gain share that must be paid upon disposition of the tax-exempt obligations and providing that the tax-exempt bond partnership must provide certain partners a right, exercisable by the date that represents 80% of the weighted average maturity of the bonds, to require a sale, redemption, or other disposition of the tax-exempt bonds held by the partnership. The proposed revenue procedure would also provide certain characteristics of tax-exempt bond partnerships, including noting that the put rights or guarantees for the benefit of certain partners of these partnerships are inapplicable in certain very limited circumstances.
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