Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The adjusted applicable federal short-term, midterm, and long-term rates are set forth for the month of May 2005. See Rev. Rul. 2005-27, page 998.

May 9, 2005 998 2005–19 I.R.B.

service during the current month. Finally, Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520.

for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Table 3 sets forth the

adjusted federal long-term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(2) for buildings placed in

REV. RUL. 2005–27 TABLE 1

Applicable Federal Rates (AFR) for May 2005

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR 3.54% 3.51% 3.49% 3.48% 110% AFR 3.90% 3.86% 3.84% 3.83% 120% AFR 4.25% 4.21% 4.19% 4.17% 130% AFR 4.61% 4.56% 4.53% 4.52%

Mid-term

AFR 4.28% 4.24% 4.22% 4.20% 110% AFR 4.71% 4.66% 4.63% 4.62% 120% AFR 5.15% 5.09% 5.06% 5.04% 130% AFR 5.59% 5.51% 5.47% 5.45% 150% AFR 6.46% 6.36% 6.31% 6.28% 175% AFR 7.56% 7.42% 7.35% 7.31%

Long-term

AFR 4.83% 4.77% 4.74% 4.72% 110% AFR 5.32% 5.25% 5.22% 5.19% 120% AFR 5.80% 5.72% 5.68% 5.65% 130% AFR 6.30% 6.20% 6.15% 6.12%

REV. RUL. 2005–27 TABLE 2

Adjusted AFR for May 2005

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted AFR 2.61% 2.59% 2.58% 2.58%

Mid-term adjusted AFR 3.29% 3.26% 3.25% 3.24%

Long-term adjusted AFR 4.37% 4.32% 4.30% 4.28%

REV. RUL. 2005–27 TABLE 3

Rates Under Section 382 for May 2005

Adjusted federal long-term rate for the current month 4.37%

Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 4.37%

2005–19 I.R.B. 999 May 9, 2005

REV. RUL. 2005–27 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for May 2005 Appropriate percentage for the 70% present value low-income housing credit 8.06%

Appropriate percentage for the 30% present value low-income housing credit 3.45%

REV. RUL. 2005–27 TABLE 5

Rate Under Section 7520 for May 2005

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 5.2%

the form of the certificate as the Form W–4. The maximum number of withholding exemptions to which an employee is entitled depends upon the employee’s marital status, the employee’s filing status, the number of the employee’s dependents, the number of exemptions claimed by the employee’s spouse (if any) on a Form W–4, and the amount of the employee’s estimated itemized deductions, tax credits, and certain other deductions from income. A Form W–4 may be in either paper or electronic form.

Section 31.3402(f)(2)–1(g) of the existing regulations requires employers to submit copies of certain questionable Forms W–4 to the IRS. Employers must submit a copy of each Form W–4 on which an employee claims more than 10 withholding exemptions. Employers must also submit a copy of each Form W–4 on which the employee claims a complete exemption from withholding for the taxable year if the employer reasonably expects, when the Form W–4 is received, that the employee’s wages from that employer will usually be $200 or more per week.

In addition, the existing regulations provide that, upon written request from the IRS, employers are required to submit to the IRS copies of withholding exemption certificates which are received from employees or groups of employees identified by the IRS in the written request.

The existing regulations provide that the IRS may notify an employer that a named employee is not entitled to claim a complete exemption from withholding and is not entitled to claim a total number of withholding exemptions more than the maximum number specified by the IRS in the notice. The IRS will issue such notice if the IRS finds that the withholding