Interest rates; underpayments and overpayments. The rates for interest determined under section 6621 of the Code for the calendar quarter beginning October 1, 2009, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for underpayments, and 6 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 1.5 percent.

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 2009 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.

This procedure provides guidance under section 7701 of the Code for an eligible entity that requests relief for a late classification election filed with the applicable IRS service center within 3 years and 75 days of the requested effective date of the eligible entity’s classification. The procedure also provides guidance for those eligible entities that do not qualify for relief under this revenue procedure and that are required to request a letter ruling in order to request relief for a late entity classification election. Rev. Proc. 2002-59 superseded.

Automatic contribution increases under automatic contribution arrangements. This ruling provides guidance on how automatic enrollment in a section 401(k) plan can work when there is an escalator feature included. An escalator feature means that the amount of an employee’s compensation that is contributed to the plan, without the employee’s affirmative election, is increased periodically according to the terms of the plan. Two situations are described. One involves a basic automatic contribution arrangement and the other involves an eligible automatic contribution arrangement described in section 414(w) of the Code. Rev. Rul. 2009-30 is part of the “Savings Initiative” guidance issued by the Service.

Annual paid time off contributions. This ruling provides guidance on the tax consequences of an amendment to a tax-qualified retirement plan to permit annual contributions of an employee’s unused paid time off under the employer’s paid time off plan. A paid time off plan generally refers to a sick and vacation arrangement that provides for paid leave whether the leave is due to illness or incapacity. The amendment relates to a contribution (including a section 401(k) contribution) or cash out of the unused paid time off, determined as of the end of the plan year (December 31). Rev. Rul. 2009-31 is companion guidance to Rev. Rul. 2009-32 and is part of the “Savings Initiative’ guidance issued by the Service.

Paid time off contributions at termination of employment. This ruling provides guidance on the tax consequences of an amendment to a tax-qualified retirement plan to permit contributions for an employee’s accumulated and unused paid time off under the employer’s paid time off plan at a participant’s termination of employment. A paid time off plan generally refers to a sick and vacation arrangement that provides for paid leave whether the leave is due to illness or incapacity. The amendment relates to a post-severance contribution (including a section 401(k) contribution) or cash out of the accumulated and unused paid time off. Rev. Rul. 2009-32 is companion guidance to Rev. Rul. 2009-31 and is part of the “Savings Initiative” guidance issued by the Service.

Adding automatic enrollment to section 401(k) plans - sample amendments. This notice provides two sample amendments that sponsors of section 401(k) plans can use to add automatic enrollment features to their plans. The first sample amendment can be used to add a basic automatic contribution arrangement with, if elected by an adopting employer, an escalation feature. The second sample amendment can be used to add an “eligible automatic contribution arrangement (“EACA”) as described in section 414(w) of the Code with, if elected by an adopting employer, as escalation feature. Final regulations (T.D. 9447, 2009-12 I.R.B. 694) under section 414(w) and this notice, by providing sample amendments, facilitate the use of EACAs in section 401(k) plans. This notice is part of the “Savings Initiative” guidance issued by the Service.

Automatic enrollment in SIMPLE IRAs. This notice provides guidance to facilitate automatic enrollment in SIMPLE IRA plans, including questions and answers relating to the inclusion in a SIMPLE IRA plan of an automatic contribution arrangement. This notice also requests comments on whether the Department of the Treasury and the Service should issue guidance regarding SIMPLE IRA plans that include eligible automatic contribution arrangements under section 414(w) of the Code. This notice provides guidance, in the form of questions and answers, on automatic contribution arrangements under SIMPLE IRA plans. Notice 2009-66 is companion guidance to Notice 2009-67 and is part of the “Savings Initiative” guidance issued by the Service.

Adding automatic enrollment to SIMPLE IRA plans - sample amendment. This notice provides a sample amendment that can be used by a sponsor of a SIMPLE IRA plan described in section 408(p) of the Code to add an automatic contribution arrangement to the plan. Only SIMPLE IRA plans that use a designated financial institution described in section 408(p)(7) can use the sample amendment. Notice 2009-67 is companion guidance to Notice 2009-66 and is part of the “Savings Initiative” guidance issued by the Service.

Safe harbor explanations — eligible rollover distributions. This notice contains two safe harbor explanations that may be provided to recipients of eligible rollover distributions from an employer plan in order to satisfy section 402(f) of the Code. The first safe harbor explanation applies to a distribution not from a designated Roth account, as described in section 402A. The second safe harbor explanation applies to a distribution from a designated Roth account. These safe harbor explanations update the safe harbor explanations that were published in Notice 2002-3, 2002-1 C.B. 289, to reflect changes in the law. This notice is part of the “Savings Initiative” guidance issued by the Service. Notice 2002-3 modified and superseded.

Rollovers from employer plans to Roth IRAs. This notice describes the federal income tax consequences of rolling over an eligible rollover distribution from a qualified plan under section 401(a) of the Code, an annuity plan described in section 403(a), a plan described in section 403(b), or an eligible governmental plan under section 457(b) to a Roth IRA described in section 408A. This notice supplements the regulations under section 408A and Notice 2008-30, 2008-12 I.R.B. 638 to provide additional guidance. Notice 2008-30 amplified and clarified.

This procedure publishes the amount of unused housing credit carryovers allocated to qualified states under section 42(h)(3)(D) of the Code for calendar year 2009.