Section 642.—Special Rules for Credits and Deductions

Federal short-term, mid-term, and long-term rates are set forth for the month of February 2006. See Rev. Rul. 2006-7, page 399.

February 6, 2006 399 2006–6 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.

purposes for February 2006 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month 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. 2006–7 TABLE 1

Applicable Federal Rates (AFR) for February 2006

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term

AFR 4.39% 4.34% 4.32% 4.30% 110% AFR 4.83% 4.77% 4.74% 4.72% 120% AFR 5.28% 5.21% 5.18% 5.15% 130% AFR 5.72% 5.64% 5.60% 5.57%

Mid-term

AFR 4.40% 4.35% 4.33% 4.31% 110% AFR 4.85% 4.79% 4.76% 4.74% 120% AFR 5.29% 5.22% 5.19% 5.16% 130% AFR 5.74% 5.66% 5.62% 5.59% 150% AFR 6.64% 6.53% 6.48% 6.44% 175% AFR 7.75% 7.61% 7.54% 7.49%

Long-term

AFR 4.61% 4.56% 4.53% 4.52% 110% AFR 5.08% 5.02% 4.99% 4.97% 120% AFR 5.54% 5.47% 5.43% 5.41% 130% AFR 6.02% 5.93% 5.89% 5.86%

REV. RUL. 2006–7 TABLE 2

Adjusted AFR for February 2006

Period for Compounding

Annual Semiannual Quarterly Monthly

Short-term adjusted 3.20% 3.17% 3.16% 3.15% AFR

Mid-term adjusted AFR 3.53% 3.50% 3.48% 3.47%

Long-term adjusted 4.26% 4.22% 4.20% 4.18% AFR

REV. RUL. 2006–7 TABLE 3

Rates Under Section 382 for February 2006

Adjusted federal long-term rate for the current month 4.26%

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.) 4.40%

2006–6 I.R.B. 400 February 6, 2006

REV. RUL. 2006–7 TABLE 4

Appropriate Percentages Under Section 42(b)(2) for February 2006 Appropriate percentage for the 70% present value low-income housing credit 8.05%

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

REV. RUL. 2006–7 TABLE 5

Rate Under Section 7520 for February 2006

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%

proposed regulations (REG–148568–04) set forth in this issue of the Bulletin. In addition to the provisions contained in these temporary regulations related to the Form 944 Program, the proposed regulations provide a modification to the de minimis deposit rule applicable to quarterly return filers.

DATES: Effective Date: These regulations are effective as of January 1, 2006.

Applicability Date: These regulations apply with respect to taxable years beginning on or after January 1, 2006. The applicability of §§31.6011–1T, 31.6011–4T, and 31.6302–1T will expire on or before December 30, 2009.

FOR FURTHER INFORMATION CONTACT: Raymond Bailey, (202) 622–4910 (filing requirements under section 6011), or Audra Dineen, (202) 622–4940 (deposit requirements under section 6302) (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

These temporary regulations amend the Regulations on Employment Taxes and Collection of Income Tax at Source (26 CFR part 31) under section 6011 relating to the Federal employment tax return filing requirements and section 6302 relating to the employment tax deposit requirements.

Section 31.6011(a)–1 of the Employment Tax Regulations provides rules requiring employers to file returns quarterly to report FICA taxes. Section 31.6011(a)–4 of the Employment Tax Regulations requires that every person required to make a return of income tax