Part III. Administrative, Procedural, and Miscellaneous

2005 Calendar Year Resident Population Estimates

Notice 2005–16

This notice informs (1) state and local housing credit agencies that allocate low-income housing tax credits under § 42 of the Internal Revenue Code and (2) states and other issuers of tax-exempt private activity bonds under § 141, of the proper population figures to be used for calculating the 2005 calendar year population-based component of the state housing credit ceiling (Credit Ceiling) under § 42(h)(3)(C)(ii), the 2005 calendar year volume cap (Volume Cap) under § 146, and the 2005 volume limit (Volume Limit) under § 142(k)(5).

The population figures both for the population-based component of the Credit Ceiling and for the Volume Cap are determined by reference to § 146(j). That section provides generally that determina

tions of population for any calendar year are made on the basis of the most recent census estimate of the resident population of a state (or issuing authority) released by the Bureau of the Census before the beginning of such calendar year. Section 142(k)(5) provides that the Volume Limit is based on the State population.

The population-based component of the Credit Ceiling and the Volume Cap are adjusted for inflation pursuant to §§ 42(h)(3)(H) and 146(d)(2), respectively. The adjustments for the 2005 calendar year were published in Rev. Proc. 2004–71, 2004–50 I.R.B. 970. Section 3.07 of Rev. Proc. 2004–71 provides that, for calendar years beginning in 2005, the amounts used under § 42(h)(3)(C)(ii) to calculate the Credit Ceiling is the greater of $1.85 multiplied by the State population (see the resident population figures provided below) or $2,125,000. Further, section 3.15 of Rev. Proc. 2004–71 provides that the amounts used under § 146(d)(1)

Resident Population Figures

to calculate the Volume Cap for calendar year 2005 is the greater of $80 multiplied by the State population (see the resident population figures provided below) or $239,180,000.

The proper population figures for calculating the Credit Ceiling, the Volume Cap, and the Volume Limit for the 2005 calendar year are the estimates of the resident population of the 50 states, the District of Columbia, and Puerto Rico released by the Bureau of the Census on December 22, 2004, in Press Release CB04–246. The proper population figures for calculating the Credit Ceiling, the Volume Cap, and the Volume Limit for the 2005 calendar year for the insular areas (American Samoa, Guam, Northern Mariana Islands, and U.S. Virgin Islands) are the figures released electronically by the Bureau of the Census on July 17, 2003, and referenced in Census Bureau Tip Sheet TP03–14, dated July 11, 2003. For convenience, these estimates are reprinted below.

Alabama 4,530,182 Alaska 655,435 American Samoa 57,902 Arizona 5,743,834 Arkansas 2,752,629

California 35,893,799 Colorado 4,601,403 Connecticut 3,503,604

Delaware 830,364 D.C. 553,523

Florida 17,397,161

Georgia 8,829,383 Guam 166,090

Hawai 1,262,840

Idaho 1,393,262 Illinois 12,713,634 Indiana 6,237,569 Iowa 2,954,451

Kansas 2,735,502 Kentucky 4,145,922

2005–8 I.R.B. 605 February 22, 2005

Louisiana 4,515,770

Maine 1,317,253 Maryland 5,558,058 Massachusetts 6,416,505 Michigan 10,112,620 Minnesota 5,100,958 Mississippi 2,902,966 Missouri 5,754,618 Montana 926,865

Nebraska 1,747,214 Nevada 2,334,771 New Hampshire 1,299,500 New Jersey 8,698,879 New Mexico 1,903,289 New York 19,227,088 North Carolina 8,541,221 North Dakota 634,366 Northern Mariana Islands 78,252

Ohio 11,459,011 Oklahoma 3,523,553 Oregon 3,594,586

Pennsylvania 12,406,292 Puerto Rico 3,894,855

Rhode Island 1,080,632

South Carolina 4,198,068 South Dakota 770,883

Tennessee 5,900,962 Texas 22,490,022

U.S. Virgin Islands 108,775 Utah 2,389,039 Vermont 621,394 Virginia 7,459,827

Washington 6,203,788 West Virginia 1,815,354 Wisconsin 5,509,026 Wyoming 506,529

The principal authors of this notice are Christopher J. Wilson, Office of the Associate Chief Counsel (Passthroughs and Special Industries) and Timothy L. Jones, Office of the Division Counsel/Associate Chief Counsel (Tax-Exempt and Government Entities). For further information regarding this notice, contact Mr. Wilson at

(808) 539–2874 or Susan Reaman at (202) Temporary Rules Under 622–3040 (not toll-free calls). Sections 6111 and 6112

Notice 2005–17

The purpose of this notice is to grant an extension of time for material advisors to comply with the new filing requirements under § 6111.

February 22, 2005 606 2005–8 I.R.B.

terial advisor arises only when a reportable transaction is entered into by a taxpayer). Because further guidance is under consideration, the transitional relief provided in Notice 2004–80 for disclosure of a transaction under § 6111 is extended. If a person becomes a material advisor after October 22, 2004, and on or before January 29, 2005, that material advisor must file the return before March 1, 2005.

DRAFTING INFORMATION

The principal author of this notice is Tara P. Volungis of the Office of the Associate Chief Counsel (Passthroughs & Special Industries). For further information regarding this notice, contact Ms. Volungis at (202) 622–3080 (not a toll-free call).

BACKGROUND

Section 6111, as amended by the American Jobs Creation Act of 2004, P.L. 108–357, 118 Stat. 1418, (the Act), requires that each material advisor with respect to any reportable transaction make a return setting forth information identifying and describing the transaction and any potential tax benefits expected to result from the transaction no later than the date specified by the Secretary. Notice 2004–80, 2004–50 I.R.B. 963 (December 13, 2004) announced that the Service and Treasury intend to issue regulations providing rules under § 6111.

Notice 2004–80 also provides interim rules implementing the requirements of § 6111 until the Secretary prescribes regulations. Under Notice 2004–80, each

material advisor with respect to a reportable transaction must file a return on Form 8264, Application for Registration of a Tax Shelter, within 30 days after the date on which the person becomes a material advisor. Notice 2004–80 also provides transitional relief in the case of a person who becomes a material advisor after October 22, 2004, and on or before December 31, 2004, that allows the material advisor to file the return anytime before February 1, 2005. Since the issuance of Notice 2004–80, questions have arisen regarding when a person becomes a material advisor. The Service and Treasury intend to provide further guidance on the issue of the date on which a person becomes a material advisor with respect to a reportable transaction (including whether the obligation of a ma

2005–8 I.R.B. 607 February 22, 2005