Part I. Rulings — Internal Revenue Bulletin 2000-26

Section 42.—Low-Income Housing Credit

Low-income housing credit; satisfac- tory bond; “bond factor” amounts for the period April through June 2000. This ruling announces the monthly bond factor amounts to be used by taxpayers who dispose of qualified low-income buildings or interests therein during the period April through June 2000.

Rev. Rul. 2000–31

In Rev. Rul. 90–60, 1990–2 C.B. 3, the Internal Revenue Service provided guidance to taxpayers concerning the general methodology used by the Treasury Department in computing the bond factor amounts used in calculating the amount of bond considered satisfactory by the Secretary under § 42(j)(6) of the Internal Revenue Code. It further announced that

the Secretary would publish in the Internal Revenue Bulletin a table of “bond factor” amounts for dispositions occurring during each calendar month.

This revenue ruling provides in Table 1 the bond factor amounts for calculating the amount of bond considered satisfactory under § 42(j)(6) for dispositions of qualified low-income buildings or interests therein during the period April through June 2000.

Table 1 Rev. Rul. 2000–31 Monthly Bond Factor Amounts for Dispositions Expressed As a Percentage of Total Credits
Calendar Year Building Placed in Service or, if Section 42(f)(1) Election Was Made, the Succeeding Calendar Year
Month of Disposition	1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Apr ’00 May ’00 Jun ’00	31.27 46.78 62.87 79.50 82.43 86.72 91.18 95.67 100.29 105.28 110.55 116.23 121.62 124.35 31.27 46.78 62.87 79.50 82.19 86.46 90.90 95.36 99.96 104.93 110.16 115.80 121.15 124.35 31.27 46.78 62.87 79.50 81.95 86.21 90.63 95.07 99.65 104.59 109.80 115.41 120.73 124.35

For a list of bond factor amounts applicable to dispositions occurring during other calendar years, see the following revenue rulings: Rev. Rul. 98–3, 1998–1 C.B. 248, for dispositions occurring during the calendar years 1996 and 1997; Rev. Rul. 98–13, 1998–1 C.B. 686, for dispositions occurring during the period January through March 1998; Rev. Rul. 98–31, 1998–1 C.B. 1269, for dispositions occurring during the period April through June 1998; Rev. Rul. 98–45, 1998–2 C.B. 364, for dispositions occurring during the period July through September 1998; Rev. Rul. 99–1, 1999–2 I.R.B. 4, for dispositions occurring during the period October through December 1998; Rev. Rul. 99–54, 1999–51 I.R.B. 675, for dispositions occurring during the calendar year 1999; and Rev. Rul. 2000–22, 2000–16 I.R.B. 880, for dispositions occurring during the period January through March 2000.

DRAFTING INFORMATION

The principal author of this revenue ruling is Gregory N. Doran of the Office

of Assistant Chief Counsel (Passthroughs and Special Industries). For further information regarding this revenue ruling, contact Mr. Doran on (202) 622-3040 (not a toll-free call).

Section 401.—Qualified Pension, Profit-Sharing, and Stock Bonus Plans

26 CFR1.401(b)–1: Certain retroactive changes in plan.

A procedure describes when plans that are qualified under § 401(a) or § 403(a) must be amended for the Uruguay Round Agreements Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Small Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997, and the Internal Revenue Service Restructuring and Reform Act of 1998. See Rev. Proc. 2000–27, page 1272.

Section 6302.—Mode or Time of Collection

26 CFR 40.6302(c)–1: Use of Government depositaries.

T.D. 8887

DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 40

Deposits of Excise Taxes

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations; and removal of temporary regulations.

SUMMARY: This document contains final regulations relating to the availability of the safe harbor deposit rule based on look-back quarter liability and affects persons required to make deposits of excise taxes. This document also contains final regulations related to floor stocks taxes and affects persons liable for those taxes. The regulations implement changes made by the Small Business Job Protection Act of 1996 and the Airport and Airway Trust Fund Tax Reinstate

2000–26 I.R.B. 1269 June 26, 2000

ment Act of 1997.

DATES: Effective Date : These regulations are effective June 8, 2000.

Applicability Dates : For dates of applicability of these regulations, see §§40.6302(c)–1(c)(2)(iv)(C) and 40.6302(c)–2(b)(2)(iii)(C).

FOR FURTHER INFORMATION CONTACT: Susan Athy, (202) 622-3130 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Temporary regulations (T.D. 8740, 1998–1 C.B. 289) relating to the safe harbor deposit rule based on look-back quarter liability and to floor stock taxes were published in the Federal Register on December 29, 1997 (62 F.R. 67568) along with a notice of proposed rulemaking (REG–102894–97, 1998–1 C.B. 344) cross-referencing the temporary regulations (62 F.R. 67589). Written comments and requests for a public hearing were solicited. However, no comments or requests were received and no public hearing was held.

The proposed regulations are adopted without revision by this Treasury decision.

Effect on Other Documents

The following publication is obsolete as of June 8, 2000:

Notice 97–15, 1997–1 C.B. 387.

Special Analyses

It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations and, because these regulations do not impose on small entities a collection of information requirement, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Therefore, a Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking was submitted to the Chief Counsel for Advocacy of the Small Busi

ness Administration for comment on its impact on small business.

Drafting Information

The principal author of these regulations is Susan Athy, Office of Assistant Chief Counsel (Passthroughs and Special Industries). However, other personnel from the IRS and Treasury Department participated in their development.

Adoption of Amendments to the Regulations

Accordingly, 26 CFR part 40 is amended as follows:

PART 40—EXCISE TAX PROCEDURAL REGULATIONS

Paragraph 1. The authority citation for part 40 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. In §40.0–1, paragraph (a) is amended by revising the second sentence to read as follows: §40.0–1 Introduction.

(a) * * * The regulations set forth administrative provisions relating to the excise taxes imposed by chapters 31, 32, 33, 34, 36, 38, and 39 (except for the chapter 32 tax imposed by section 4181 (firearms tax) and the chapter 36 taxes imposed by sections 4461 (harbor maintenance tax) and 4481 (heavy vehicle use tax)), and to floor stocks taxes imposed on articles subject to any of these taxes. * * *

§40.0–1T [Removed]

Par. 3. Section 40.0–1T is removed. Par. 4. In §40.6011(a)–1, paragraph (a)(2)(iii) is added to read as follows: §40.6011(a)–1 Returns.

(a) * * * (2) * * * (iii) Floor stocks tax return . A return reporting liability for a floor stocks tax described in §40.0–1(a) is a return for the calendar quarter in which the tax payment is due and not the calendar quarter in which the liability for tax is incurred.

§40.6011(a)–1T [Removed]

Par. 5. Section 40.6011(a)–1T is removed.

Par. 6. Section 40.6302(c)–1 is amended as follows:

Paragraph (c)(2)(iv) is added.
Paragraph (f)(1) is amended by adding a sentence to the end of the paragraph.

The additions read as follows: §40.6302(c)–1 Use of Government de- positaries.

(c) * * * (2) * * * (iv) Modification for new or reinstated taxes –(A) Applicability . The safe harbor rule of paragraph (c)(2)(i) of this section is modified for any calendar quarter in which a person’s liability for a class of tax includes liability for any new or reinstated tax. For this purpose, a new or reinstated tax is—

( 1 ) Any tax (including an alternative method tax) that was not in effect at all times during the look-back quarter; and

( 2 ) Any alternative method tax that was not in effect at all times during the month preceding the look-back quarter.

(B) Modification . The safe harbor rule of paragraph (c)(2)(i) of this section does not apply to a class of tax unless the deposit of taxes in that class for each semimonthly period in the calendar quarter is not less than the greater of—

( 1 ) 1/6 of the net tax liability reported for the class of tax for the look-back quarter; or

( 2 ) The sum of— ( i ) 95 percent of the net tax liability incurred with respect to new or reinstated taxes during the semimonthly period; and

( ii ) 1/6 of the net tax liability reported for all other taxes in the class for the lookback quarter.

(C) Effective date . This paragraph (c)(2)(iv) applies to tax liabilities for new or reinstated taxes incurred after February 28, 1997, except that paragraph (c)(2)(iv)(A)( 2 ) of this section applies only for calendar quarters beginning after December 31, 1997.

(f) * * * (1) * * * Also, no deposit is required in the case of any floor stocks tax described in §40.0–1(a).

§40.6302(c)–1T [Removed]

Par. 7. Section 40.6302(c)–1T is removed.

June 26, 2000 1270 2000–26 I.R.B.

Par. 8. In §40.6302(c)–2, paragraph (b)(2)(iii) is added to read as follows: §40.6302(c)–2 Special rules for use of Government depositaries under section 4681.

(b) * * * (2) * * * (iii) Modification for new chemicals (A) Applicability . The safe harbor rule of paragraph (b)(2)(i) of this section is modified for any calendar quarter in which a person’s liability for section 4681 tax includes liability with respect to any new chemical. For this purpose, a new chemical is any chemical that was not subject to tax at all times during the look-back quarter.

(B) Modification . The safe harbor rule of paragraph (b)(2)(i) of this section does

not apply unless the deposit of section 4681 taxes for each semimonthly period in the calendar quarter is not less than the greater of—

( 1 ) 1/6 of the net tax liability reported under section 4681 for the look-back quarter; or

( 2 ) The sum of— ( i ) 95 percent of the net tax liability incurred under section 4681 with respect to the new chemical during the semimonthly period; and

( ii ) 1/6 of the net tax liability reported under section 4681 with respect to all other chemicals for the look-back quarter.

(C) Effective date . This paragraph (b)(2)(iii) applies to tax liabilities for new chemicals incurred after February 28, 1997.

§40.6302(c)–2T [Removed]

Par. 9. Section 40.6302(c)–2T is removed.

Robert E. Wenzel, Deputy Commissioner of

Internal Revenue.

Approved May 22, 2000.

Jonathan Talisman, Deputy Assistant Secretary

of the Treasury.

(Filed by the Office of the Federal Register on June 7, 2000, 8:45 a.m., and published in the issue of the Federal Register for June 8, 2000, 65 F.R. 36326)

2000–26 I.R.B. 1271 June 26, 2000