SECTION 5. EFFECTIVE DATE

Regulations to be issued incorporating the guidance set forth in this notice will apply to gain recognition agreements filed with respect to exchanges of stock or securities occurring on or after September 28, 2005. Until such regulations are issued, taxpayers may rely on this notice. Taxpayers also may apply the provisions of this notice to gain recognition agreements with respect to transfers of stock or securities, for all open years, occurring on or after July 20, 1998 and before September 28, 2005. Taxpayers applying this notice, however, must do so consistently to all transactions within its scope for all open years.

If an exchange that is addressed by this notice occurred on or after July 20, 1998, but prior to September 28, 2005, and the taxpayer chooses to rely on this notice for purposes of such exchange, then the taxpayer shall be treated as having timely satisfied the requirements for filing new gain recognition agreements (and related certifications and reporting), as required by Treas. Reg. § 1.367(a)–8 and described

in section 3 of this notice, if such U.S. person attaches such new gain recognition agreement (and related certifications and reporting) to its timely filed (including extensions) original tax return for the taxable year that includes September 28, 2005.