Interest rates; underpayment and overpayments. The rates for interest determined under section 6621 of the Code for the calendar quarter beginning April 1, 2012, will be 3 percent for overpayments (2 percent in the case of a corporation), 3 percent for the underpayments, and 5 percent for large corporate underpayments. The rate of interest paid on the portion of a corporate overpayment exceeding $10,000 will be 0.5 percent.

Proposed regulations under section 417 of the Code provide guidance relating to the minimum present value requirements applicable to partial annuity distribution options under defined benefit pension plans. The regulations would make changes under section 417(e) that would permit plans to simplify the treatment of certain optional forms of benefit that are paid partly in the form of an annuity and partly in a more accelerated form. A public hearing is scheduled for June 1, 2012.

This notice provides guidance relating to the portfolio interest exception, the short term debt exception under regulations section 1.6049-5(b)(10), and the excise tax under section 4701 in connection with the repeal of section 163(f)(2)(B) (the bearer debt repeal) of the Code. Notice 2006-99 superseded in part.

This notice advises State and local housing credit agencies that allocate low-income housing tax credits under section 42 of the Code, and States and other issuers of tax-exempt private activity bonds under section 141, of the population figures to use in calculating: (1) the 2012 calendar year population-based component of the State housing credit ceiling (Credit Ceiling) under section 42(h)(3)(C)(ii); (2) the 2012 calendar year volume cap (Volume Cap) under section 146; and (3) the 2012 volume limit (Volume Limit) under section 142(k)(5).

Proposed regulations under section 401 of the Code relate to the purchase of longevity annuity contracts under tax-qualified defined contribution plans under section 401(a), section 403(b) plans, individual retirement annuities and accounts (IRAs) under section 408, and eligible governmental section 457 plans. The regulations will provide the public with guidance necessary to comply with the required minimum distribution rules under section 401(a)(9). The regulations will affect individuals for whom a longevity annuity contract is purchased under these plans and IRAs (and their beneficiaries), sponsors and administrators of these plans, trustees and custodians of these IRAs, and insurance companies that issue longevity annuity contracts under these plans and IRAs. A public hearing is scheduled for June 1, 2012.

Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in March 2012; the 24-month average segment rates; the funding transitional segment rates applicable for March 2012; and the minimum present value transitional rates for February 2012.

Proposed regulations under section 4191 of the Code provide guidance on the new excise tax on certain medical devices. Specifically, the proposed rules clarify what constitutes a “taxable medical device”, what types of devices are exempt from the tax, and what types of sales of otherwise taxable devices may be exempt from the tax if certain requirements are met. Proposed regulations on the medical device excise tax, when finalized, will affect medical device manufacturers and importers, and some medical device distributors. A public hearing is scheduled for May 16, 2012.

This notice provides guidance relating to the portfolio interest exception, the short term debt exception under regulations section 1.6049-5(b)(10), and the excise tax under section 4701 in connection with the repeal of section 163(f)(2)(B) (the bearer debt repeal) of the Code. Notice 2006-99 superseded in part.

This announcement withdraws a notice of proposed regulation (REG-208274-86, 1993-1 C.B. 822) under section 6039E of the Code which specifies the information that must be included and provide guidance on when the IRS may impose a $500 penalty for failure to provide that information. U.S. citizens who apply for passports from the Department of State are required by the IRS to provide certain information on the application form.