Bulletin No. 2004-35 August 30, 2004

period provided for in the statute. The regulations provide that the election may be made for any specific dollar amount of the qualified expenditures, but cannot be made by reference to a formula. To revoke the election, a taxpayer must receive the permission of the Commissioner. Permission will only be granted in rare and unusual circumstances. If permission is granted, the revocation will be effective in the taxpayer’s earliest open taxable year affected by the election.

Announcement 2004–64, page 402. This document withdraws proposed regulations (REG– 104683–00, 2001–1 C.B. 407) under section 904(d) of the Code relating to the “look-through” rules for dividends paid by a controlled foreign corporation or a noncontrolled section 902 corporation. It also withdraws proposed regulations under section 902 relating to the computation of a taxpayer’s deemed-paid taxes. REG–104683–00 partially withdrawn.

EMPLOYEE PLANS

Notice 2004–56, page 375. Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for August 2004 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.

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Actions Relating to Court Decisions is on the page following the Introduction. Announcements of Disbarments and Suspensions begin on page 397. Finding Lists begin on page ii. Index for July through August begins on page iv.

Rev. Proc. 2004–56, page 376. Section 457(b) plan model amendments for governmen- tal plans . This procedure provides model amendments that may be used by a state or local government eligible employer (as defined in section 457(e)(1)(A) of the Code) to amend or draft its eligible section 457(b) plan to reflect the requirements of section 457 and the regulations thereunder. Rev. Proc. 98–41 superseded.

EXEMPT ORGANIZATIONS

Announcement 2004–66, page 402. A list is provided of organizations now classified as private foundations.

GIFT TAX

REG–163679–02, page 390. Proposed regulations under section 2702 of the Code provide guidance in two specific situations relating to qualified interests. The first situation is where the grantor retains an interest payable to the grantor for a term of years, or to the grantor’s estate if the grantor dies prior to the expiration of the term. The second situation is where the grantor has a power to revoke a qualified interest of the grantor’s spouse. A public hearing is scheduled for October 28, 2004.

EXCISE TAX

Notice 2004–57, page 376. This notice confirms that the Service will continue to assess and collect tax under section 4251 of the Code on all taxable communications services, including those communications services recently litigated with conflicting results.

August 30, 2004 2004–35 I.R.B.