Final regulations under section 664(c) of the Code provide that charitable remainder trusts with unrelated business taxable income (UBTI) in taxable years beginning after December 31, 2006, are exempt from federal income tax but are subject to a 100 percent excise tax on the UBTI of the charitable remainder trust pursuant to section 424 of the Tax Relief and Health Care Act of 2006. The regulations provide that the excise tax is reported and payable in accordance with appropriate forms. The regulations clarify that, consistent with regulations section 1.664-1(d)(2), the excise tax imposed upon the charitable remainder trust with UBTI is treated as paid from corpus, and the trust income that is UBTI is income of the trust for purposes of determining the character of the distribution made to the beneficiary.

Section 179B of the Code allows small business refiners to make an election to deduct as an expense 75 percent of the qualified costs paid or incurred to comply with the highway diesel fuel sulfur control requirements of the Environmental Protection Agency (EPA). Temporary and proposed regulations under Section 179B provide guidance relating to the deduction for qualified capital costs paid or incurred by a small business refiner to comply with the highway diesel fuel sulfur control requirements of the EPA and provide guidance for making the election. A public hearing on the proposed regulations is scheduled for October 28, 2008.

Section 179B of the Code allows small business refiners to make an election to deduct as an expense 75 percent of the qualified costs paid or incurred to comply with the highway diesel fuel sulfur control requirements of the Environmental Protection Agency (EPA). Temporary and proposed regulations under Section 179B provide guidance relating to the deduction for qualified capital costs paid or incurred by a small business refiner to comply with the highway diesel fuel sulfur control requirements of the EPA and provide guidance for making the election. A public hearing on the proposed regulations is scheduled for October 28, 2008.

Final, temporary, and proposed regulations under section 956 of the Code determine the basis in property acquired by a controlled foreign corporation as a result of certain transactions that otherwise qualify for nonrecognition treatment.

Final, temporary, and proposed regulations under section 956 of the Code determine the basis in property acquired by a controlled foreign corporation as a result of certain transactions that otherwise qualify for nonrecognition treatment.

This notice explains how to claim the 50% additional first year depreciation provided by sections 15345(a)(1) and (d)(1) of the Food, Conservation, and Energy Act of 2008 for qualified Recovery Assistance property placed in service by the taxpayer in the Kansas disaster area on or after May 5, 2007, during the taxable year that includes May 5, 2007. The notice also explains how to elect not to claim that 50% additional first year depreciation if a taxpayer so chooses.

Proposed regulations under section 411(b)(1) of the Code provide guidance on the application of the accrual rule for defined benefit plans under section 411(b)(1)(B) in cases where plan benefits are determined on the basis of the greatest of two or more separate formulas. A public hearing is scheduled for October 15, 2008.

Final regulations under section 664(c) of the Code provide that charitable remainder trusts with unrelated business taxable income (UBTI) in taxable years beginning after December 31, 2006, are exempt from federal income tax but are subject to a 100 percent excise tax on the UBTI of the charitable remainder trust pursuant to section 424 of the Tax Relief and Health Care Act of 2006. The regulations provide that the excise tax is reported and payable in accordance with appropriate forms. The regulations clarify that, consistent with regulations section 1.664-1(d)(2), the excise tax imposed upon the charitable remainder trust with UBTI is treated as paid from corpus, and the trust income that is UBTI is income of the trust for purposes of determining the character of the distribution made to the beneficiary.

The IRS has revoked its determination that Homes for All, Inc., of Fort Myers, FL; H & H Housing, Inc., of Los Angeles, CA; Family Home Providers, Inc., of Cumming, GA; Miller County New Vision Coalition, Inc., of Colquitt, GA; Buyer’s Dream Fund of Cleveland Heights, OH; American Bowling Congress of Wyoming, MI; Accelerated Trust, Inc., of Boca Raton, FL; National Home Charities, Inc., of Westminster, CO; Independent Group, Inc., of Covington, KY; and Shepherd Hills Development Corporation of Las Vegas, NV, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

A list is provided of organizations now classified as private foundations.

Special use value; farms; interest rates. The 2008 interest rates to be used in computing the special use value of farm real property for which an election is made under section 2032A of the Code are listed for estates of decedents.

Final regulations under sections 6205 and 6413 of the Code amend the process for making interest-free adjustments of underpayments and overpayments of employment taxes. The regulations also clarify the process for filing claims for refund of overpayments of employment taxes under sections 6402 and 6414. The regulations will continue to permit taxpayers to file a claim for refund in lieu of making an interest-free adjustment for an overpayment of employment taxes. The regulations also amend the regulations under section 6011 to reflect the changes to the adjustment and refund processes and amend the regulations under section 6302 to clarify deposit obligations with respect to interest-free adjustments.

This document contains a correction to a notice of public hearing (Announcement 2008-64, 2008-28 I.R.B. 114) on proposed regulations (REG-151135-07) providing additional rules for certain multiemployer defined benefit plans that are in effect on July 16, 2006. The regulations affect sponsors and administrators of, and participants in multiemployer plans that are in either endangered or critical status. The regulations are necessary to implement the new rules set forth in section 432 that are effective for plan years beginning after 2007. The regulations reflect changes made by the Pension Protection Act of 2006.