SECTION 1. PURPOSE

.01 This revenue procedure provides an updated list of time-sensitive acts, the performance of which may be postponed under sections 7508 and 7508A of the Internal Revenue Code (Code). Section 7508 of the Code postpones specified acts for individuals serving in the Armed Forces of the United States or serving in support of such Armed Forces in a combat zone. Section 7508A of the Code permits a postponement of specified acts for taxpayers affected by a Presidentially declared disaster or a terroristic or military action. The list of acts in this revenue procedure supplements the list of postponed acts in section 7508(a)(1) of the Code and section 301.7508A–1(b) of the Regulations on Procedure and Administration.

.02 This revenue procedure does not, by itself, provide any postponements under sections 7508 or 7508A. In order for taxpayers to be entitled to a postponement of any act listed in this revenue procedure, the IRS generally will publish a Notice or issue other guidance (including an IRS News Release) providing relief with respect to a specific combat zone, Presidentially declared disaster, or a terroristic or military action.

.03 This revenue procedure will be updated as needed when the IRS determines that additional acts should be included in the list of postponed acts or that certain acts should be removed from the list. Also, taxpayers may recommend that additional acts be considered for postponement under sections 7508 and 7508A. See section 17 of this revenue procedure.

.25 Generation-Skipping Transfer Tax Exemption. For calendar year 2003, the generation-skipping transfer tax exemption under § 2631, which is allowed in determining the “inclusion ratio” defined in § 2642, is $1,120,000.

.26 Passenger Air Transportation Ex- cise Tax. For calendar year 2003, the tax under § 4261(b) on the amount paid for each domestic segment of taxable transportation by air is $3. For calendar year 2003, the tax under § 4261(c) on any amount paid (whether within or without the United States) for any transportation of any person by air, if such transportation begins or ends in the United States, generally is $13.40. However, in the case of a domestic segment beginning or ending in Alaska or Hawaii as described in § 4261(c)(3), the tax only applies to departures and is at the rate of $6.70.

.27 Reporting Exception for Certain Ex- empt Organizations with Nondeductible Lobbying Expenditures. For taxable years beginning in 2003, the annual per person, family, or entity dues limitation to qualify for the reporting exception under § 6033(e)(3) (and section 5.05 of Rev. Proc. 98–19, 1998–1 C.B. 547), regarding certain exempt organizations with nondeductible lobbying expenditures, is $85 or less.

.28 Notice of Large Gifts Received from Foreign Persons. For taxable years beginning in 2003, recipients of gifts from certain foreign persons may be required to report these gifts under § 6039F if the aggregate value of gifts received in a taxable year exceeds $11,827.

.29 Persons Against Which a Federal Tax Lien Is Not Valid. For calendar year 2003, a federal tax lien is not valid against (1) certain purchasers under § 6323(b)(4) that purchased personal property in a casual sale for less than $1,150 or (2) a mechanic’s lienor under § 6323(b)(7) that repaired or improved certain residential property if the contract price with the owner is not more than $5,750.

.30 Property Exempt from Levy. For calendar year 2003, the value of property exempt from levy under § 6334(a)(2) (fuel, provisions, furniture, and other household personal effects, as well as arms for personal use, livestock, and poultry) may not exceed $6,890. The value of property exempt from levy under § 6334(a)(3) (books

and tools necessary for the trade, business, or profession of the taxpayer) may not exceed $3,440.

.31 Interest on a Certain Portion of the Estate Tax Payable in Installments. For an estate of a decedent dying in calendar year 2003, the dollar amount used to determine the “2-percent portion” (for purposes of calculating interest under § 6601(j)) of the estate tax extended as provided in § 6166 is $1,120,000.

.32 Attorney Fee Awards. For fees incurred in calendar year 2003, the attorney fee award limitation under § 7430 (c)(1)(B)(iii) is $150 per hour.

.33 Periodic Payments Received under Qualified Long-Term Care Insurance Con- tracts or under Certain Life Insurance Con- tracts. For calendar year 2003, the stated dollar amount of the per diem limitation under § 7702B(d)(4), regarding periodic payments received under a qualified longterm care insurance contract or periodic payments received under a life insurance contract that are treated as paid by reason of the death of a chronically ill individual, is $220.