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Rev. Rul. 2007–61, page 799.
This ruling suspends Rev. Rul. 2007–54, 2007–38 I.R.B. 604,
and informs taxpayers that Treasury and the Service intend
to address the issues considered in Rev. Rul. 2007–54 by
regulations. Rev. Rul. 2007–54 suspended.
Notice 2007–79, page 809.
This notice allows Electronic Return Originators (EROs) to sign
the following forms by rubber stamp, mechanical device (such
as signature pen), or computer software program: Form 8453,
U.S. Individual Income Tax Declaration for an IRS e-file Return;
Form 8878, IRS e-file Signature Authorization for Form 4868 or
Form 2350; and Form 8879, IRS e-file Signature Authorization.
Announcement 2007–88, page 801.
This announcement contains an official copy of the diplomatic
notes exchanged between the United States and Angola providing
for a reciprocal exemption from taxation for income from
the international operation of ships and aircraft. It includes the
United States offer and the Angola acceptance in Portuguese
and an English translation of the Angolan note.
EMPLOYEE PLANS
REG–113891–07, page 821.
Proposed regulations under section 436 of the Code provide
guidance regarding benefit restrictions for certain underfunded
defined benefit pension plans and regarding the use of certain
funding balances maintained for defined benefit pension plans.

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INCOME TAX
Rev. Rul. 2007–62, page 767.
Low-income housing credit; satisfactory bond; “bond
factor” amounts for the period January through December
2007. This ruling provides the monthly bond factor
amounts to be used by taxpayers who dispose of qualified
low-income buildings or interests therein during the period
January through December 2007.
Rev. Rul. 2007–63, page 778.
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 2007.
T.D. 9354, page 759.
Final regulations under section 21 of the Code conform the
rules relating to the child and dependent care credit to statutory
changes, including amendments under the Working Families
Tax Relief Act of 2004, and address significant issues
that have arisen administratively. The regulations are renumbered
to conform to the renumbering of the statute. Rev. Ruls.
76–278 and 76–288 obsoleted.
T.D. 9357, page 773.
Final regulations under section 853 of the Code generally eliminate
country-by-country reporting, by a regulated investment
company (RIC) to its shareholders, of foreign source income
that the RIC takes into account and foreign taxes that it pays.
T.D. 9358, page 769.
Final regulations under section 338 of the Code permit taxpayers
to elect to modify the application of the ADSP and AGUB
allocation rules of regulations section 1.338–6 as regards nuclear

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Rev. Rul. 2007–56, page 668.
Interest rates; underpayments and overpayments. The
rates of interest determined under section 6621 of the Code
for the calendar quarter beginning October 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.
T.D. 9349, page 668.
This document removes temporary regulations under section
125 of the Code relating to benefits that may be offered to
participants under a cafeteria plan.
Rev. Proc. 2007–60, page 679.
This procedure corrects the inflation adjusted amounts set
forth in Rev. Proc. 2006–53, 2006–48 I.R.B. 996, that
apply to taxpayers who elect to expense certain depreciable
assets under section 179 of the Code. This correction reflects
statutory changes enacted subsequent to the publication of
Rev. Proc. 2006–53. Rev. Proc. 2006–53 modified.
EMPLOYEE PLANS
REG–142695–05, page 681.
Proposed regulations under section 125 of the Code provide
guidance on cafeteria plans. EE–16–79, EE–130–86,
REG–243025–96, and REG–117162–99 withdrawn. Rev.
Ruls. 69–141, 2002–41, 2003–102, 2005–24, 2006–36,

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INCOME TAX
Rev. Rul. 2007–54, page 604.
Life insurance reserves. This ruling provides guidance regarding
(1) the amount of life insurance reserves taken into
account for a variable contract where some or all of the reserves
are accounted for as part of a life insurance company’s
separate account reserves and (2) what interest rate is used
to calculate required interest under section 812(b)(2)(A) of the
Code on life insurance reserves in situations where the amount
of those reserves is the tax reserve determined under section
807(d)(2).
Rev. Rul. 2007–55, page 604.
Fringe benefits aircraft valuation formula. The Standard
Industry Fare Level (SIFL) cents-per-mile rates and terminal
charge in effect for the second half of 2007 are set forth for
purposes of determining the value of noncommercial flights
on employer-provided aircraft under section 1.61–21(g) of the
regulations.
Rev. Rul. 2007–60, page 606.
Revenue rulings obsolete. This ruling obsoletes Rev. Rul.
75–425, 1975–2 C.B. 291, which provides guidance related
to the effect of signing a waiver (USCIS Form I–508) under
section 247(b) of the Immigration and Nationality Act (8 U.S.C.
section 1257(b)) by alien individuals employed in the United
States by a foreign government or international organization.
Rev. Rul. 75–425 obsoleted.
T.D. 9347, page 624.
Final regulations under section 6655 of the Code provide guidance
with respect to estimated tax payments by corporations.
Rev. Ruls. 67–93, 76–450, and 78–257 obsoleted.

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INCOME TAX
Rev. Rul. 2007–51, page 573.
Limitations on setoff under sections 6402 and 6411.
This ruling holds that the Service may credit an overpayment
against unassessed internal revenue tax liabilities that have
been determined in a statutory notice of deficiency sent to
the taxpayer. It further holds that under section 6411(b) of
the Code, the Service may credit a decrease in tax resulting
from a tentative carryback adjustment against unassessed
liabilities determined in a statutory notice of deficiency.
Rev. Rul. 54–378 clarified.
Rev. Rul. 2007–52, page 575.
Definition of a liability under section 6402(a) and
6411(b). This ruling holds that the Service has the right
under section 6402 of the Code to credit an overpayment
against internal revenue liabilities for which no assessment has
been made, or statutory notice of deficiency issued, when the
liabilities are identified in a proof of claim filing in a bankruptcy
case. Similarly, the ruling holds that the Service has the right
under section 6411(b) to credit a decrease in tax resulting
from a tentative carryback adjustment against internal revenue
tax liabilities for which no assessment has been made, or
statutory notice of deficiency issued, when the liabilities are
identified in a proof of claim filed in a bankruptcy case.
Rev. Rul. 2007–53, page 577.
Revocation of Rev. Rul.; tentative allowance. The IRS
has determined that Rev. Rul. 78–369 is inconsistent with the
regulations under section 6411 of the Code. Rev. Rul. 78–369
revoked.

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INCOME TAX
Rev. Rul. 2007–57, page 531.
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 September 2007.
T.D. 9340, page 487.
Final regulations provide updated guidance on tax-shelter
annuities, custodial accounts of public schools and section
501(c)(3) tax-exempt organizations, and church retirement
income accounts, authorized under section 403(b) of the
Code. The regulations provide the public with the guidance
necessary to comply with the law and will affect sponsors
of section 403(b) contracts, administrators, participants and
beneficiaries. The regulations also provide guidance relating
to the controlled group rules under section 414(c) for entities
that are tax-exempt under section 501(a).
T.D. 9343, page 533.
Final regulations under section 1502 of the Code allow the Service
to appoint a domestic substitute agent for a consolidated
group when the group’s parent is a foreign corporation that is
treated as a domestic corporation under section 7872 or as
the result of a section 953(d) election.
T.D. 9344, page 535.
REG–148951–05, page 550.
Final, temporary, and proposed regulations under section 7425
of the Code relate to discharge of liens and return of wrongfully
levied property under section 6343. The regulations clarify that
notices and claims are to be sent to the IRS office and official
specified in the relevant IRS publications.

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T.D. 9338, page 463.
Final regulations under sections 6038 and 6038A of the Code
clarify the information required to be furnished regarding certain
related party transactions of certain foreign corporations
and certain foreign-owned domestic corporations. The final
regulations also increase the amount of certain penalties, and
make certain other changes, to reflect the statutory changes
made by the Taxpayer Relief Act of 1997.
T.D. 9339, page 437.
REG–121475–03, page 474.
Final, temporary, and proposed regulations under section
1397E of the Code set forth guidance for state and local governments
that issue qualified zone academy bonds (QZABs)
and for banks, insurance companies, and other taxpayers that
hold those bonds. The regulations provide guidance on the
maximum term, expenditure and use of proceeds, remedial
actions, arbitrage, and reporting requirements for QZABs.
T.D. 9341, page 449.
Final regulations under section 1502 of the Code that provide
guidance with regard to the recalculation of basis and excess
loss accounts in subsidiary shares as the result of certain intercompany
transactions and on when a subsidiary stock can
be treated as worthless under section 165.
T.D. 9342, page 451.
Final regulations under section 1502 of the Code amend the
consolidated return regulations relating to the tacking rule of
the life-nonlife regulations and taxable years of members of a
consolidated group. Specifically, the regulations remove one
of the five conditions of the tacking rule (the separation condition)
and regulations section 1.1502–76(a)(2), which requires

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INCOME TAX
REG–149036–04, page 411.
Proposed regulations under section 6404 of the Code concern
the suspension of interest, penalties, additions to tax, or additional
amounts under section 6404(g) and explain the general
rules for suspension as well as exceptions to those general
rules. A public hearing is scheduled for October 11, 2007.
Notice 2007–64, page 385.
2007 Section 43 inflation adjustment factor. This notice
announces the inflation adjustment factor and phase-out
amount for the enhanced oil recovery credit for the 2007 calendar
year.
Notice 2007–65, page 386.
2007 marginal production rates. The notice announces the
applicable percentage under section 613A of the Code to be
used in determining percentage depletion for marginal properties
for the 2007 calendar year.
EMPLOYEE PLANS
T.D. 9334, page 382.
REG–142039–06, page 415.
Final, temporary, and proposed regulations under section 4965
of the Code provide guidance relating to the requirement of a
return to accompany payment of excise taxes, the time for filing
that return, and entity-level and manager-level excise taxes with
respect to prohibited tax shelter transactions to which tax-exempt
entities are parties.

Notes:

This information was obtained from the IRS.gov website. E-File Magic does not warrant the accuracy of this information and provides it as a convenience to it’s customers. We encourage you to visit http://www.irs.gov/businesses/lists/0,,id=98230,00.html for the most recent copy of this information.

Excerpt:

T.D. 9333, page 350.
REG–149036–04, page 365.
Temporary and proposed regulations under section 6404 of the
Code provide guidance on the suspension of interest, penalty,
addition to tax, or additional amounts with respect to listed
transactions or undisclosed reportable transactions. A public
hearing on the proposed regulations is scheduled for October
11, 2007.
REG–128274–03, page 356.
Proposed regulations under section 42 of the Code, which concern
the low-income housing credit, would amend the utility allowances
regulations under section 1.42–10. A public hearing
is scheduled for October 9, 2007.
REG–163195–05, page 366.
Proposed regulations under section 3406(g) of the Code
provide amendments to the existing regulations for backup
withholding for reportable payments made through a Qualified
Payment Card Agent (QPCA). See related Notice 2007–59,
2007–30 I.R.B. 135, containing a proposed revenue procedure
for guidance on QPCA determinations. A public hearing
is scheduled for November 7, 2007.
Notice 2007–63, page 353.
Repayment of Commodity Credit Corporation (CCC)
loans. This notice provides guidance regarding the tax treatment
and information reporting of “market gain” associated
with the repayment of nonrecourse marketing assistance
loans made by the CCC under the Farm Security and Rural
Investment Act of 2002.

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