LIFO; price indexes; department stores. The December 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, December 31, 2006.

Proposed regulations under section 6325 of the Code outline specific procedures for obtaining a release of a federal tax lien or a discharge of a federal tax lien from property to which it has attached. The regulations incorporate changes to the Code that were made by the IRS Restructuring and Reform Act of 1998, which afford a means for a person whose property is encumbered by a federal tax lien, but who does not owe the tax giving rise to the lien, to have his property discharged from the lien.

Donor advised funds and supporting organizations. This notice requests public comments in connection with a study being conducted by the Department of the Treasury and the Service on the organization and operation of donor advised funds and supporting organizations. The study is required by section 1226 of the Pension Protection Act of 2006.

This announcement sets forth a compliance resolution program (Program) that permits employers to pay the additional section 409A taxes arising due to the exercise of certain stock options and stock appreciation rights (stock rights). The Program (1) applies only to discounted stock rights exercised during 2006, (2) applies only to certain employees and former employees who are not corporate insiders, and were not corporate insiders at the date of grant of the stock right, (3) requires the employer’s full payment of the section 409A taxes, (4) provides relief for the employees from the requirement to pay these taxes, and (5) requires treatment of the employer’s payment of the employee’s section 409A taxes as an additional payment of compensation. Employers wishing to participate in the Program must notify the IRS no later than February 28, 2007, and must notify affected employees within 15 days of notifying the IRS.

Final regulations under section 412(l)(7) of the Code provide mortality tables to be used in determining current liability for purposes of applying certain pension funding requirements.

This notice provides guidance under section 4965 of the Code to tax-exempt entities described in section 4965(c) regarding whether they are parties to a prohibited tax shelter transaction. This notice also provides guidance to tax-exempt entities described in sections 4965(c)(1), (2), and (3) subject to tax under section 4965(a) regarding the allocation to various periods of net income or proceeds attributable to a prohibited tax shelter transaction. In addition, the notice invites comments from the public regarding all aspects of these provisions.

Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for February 2007 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.

This notice provides guidance under section 4965 of the Code to tax-exempt entities described in section 4965(c) regarding whether they are parties to a prohibited tax shelter transaction. This notice also provides guidance to tax-exempt entities described in sections 4965(c)(1), (2), and (3) subject to tax under section 4965(a) regarding the allocation to various periods of net income or proceeds attributable to a prohibited tax shelter transaction. In addition, the notice invites comments from the public regarding all aspects of these provisions.

This procedure provides guidance to persons against whom a penalty under section 6707 or 6707A of the Code is assessed, and who may request rescission of those penalties from the Commissioner if the violation is with respect to a reportable transaction other than a listed transaction. This procedure describes the procedures for requesting rescission, including the deadline by which a person must request rescission; the information the person must provide in the rescission request; the factors that weigh in favor and against granting rescission; where the person must submit the rescission request; and the rules governing requests for additional information from the person requesting rescission.

This document contains corrections to final regulations (T.D. 9276, 2006-37 I.R.B. 423) that provide for determining the amount of income tax withholding on supplemental wages. The regulations apply to all employers and others making supplemental wage payments to employees.

This document contains corrections to final regulations (T.D. 9263, 2006-25 I.R.B. 1063) relating to the deductions for income attributable to domestic production activities under section 199 of the Code.