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.

This document removes temporary regulations under section 125 of the Code relating to benefits that may be offered to participants under a cafeteria plan.

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.

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 EE-16-79, EE-130-86, REG-243025-96, and REG-117162-99 withdrawn.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, and Notices 89-110 and 2002-45 modified. A public hearing is scheduled for November 15, 2007.

Proposed regulations under section 402 of the Code clarify that a payment from a qualified plan for an accident or health insurance premium generally constitutes a distribution under section 402(a) that is taxable to the distributee under section 72 in the taxable year in which the premium is paid. The taxable amount generally would equal the amount of the premium charged against the participant’s benefits under the plan. These regulations would also provide that a distribution for the payment of the premium by a qualified plan generally is not excluded from gross income under section 104, 105 or 106, but such distribution would constitute an amount paid for accident or health insurance under section 213. A public hearing is scheduled for December 6, 2007.

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

The IRS has revoked its determination that Museum of American Piano of Bangor, PA; Transitional Living Collaborative of Moraga, CA; Ken-Ray, Incorporated, of Orem, UT; DreamHome Foundation of Sherwood, OR; Creativity Innovation Productivity, Incorporated, DBA Horizon Event Foundation of Highwood, MT; Community Fellowship for Battered Women of Silicon Valley, Inc., of San Jose, CA; Alta Crossing, Inc., of Nampa, ID; Home Buyers Assistance Foundation, Inc., of Denver, CO; International Housing Solutions, Inc., of Sacramento, CA; and Filipino American Community Development Council, Inc., of San Jose, CA, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

Final regulations under section 7701 of the Code explain that certain disregarded entities (qualified subchapter S subsidiaries and single-owner eligible entities) are to be treated as entities separate from their owners for purposes of paying and reporting federal employment and certain excise taxes. Notice 99-6 obsoleted as of January 1, 2009.

Final regulations under section 7701 of the Code explain that certain disregarded entities (qualified subchapter S subsidiaries and single-owner eligible entities) are to be treated as entities separate from their owners for purposes of paying and reporting federal employment and certain excise taxes. Notice 99-6 obsoleted as of January 1, 2009.

This document provides notice of cancellation of a public hearing on proposed regulations (REG-143797-06, 2007-26 I.R.B. 1495) providing guidance on employer comparable contributions to Health Savings Accounts (HSAs).