Bulletin No. 2006-40 October 2, 2006

reinstating an installment agreement is $45. The regulations reflect these costs, with one exception; the fee for entering into an installment agreement paid by way of a direct debit from the taxpayer’s checking account will be $52, to encourage this type of payment arrangement. A public hearing is scheduled for October 17, 2006.

Notice 2006–77, page 590. This notice republishes Notice 2006–67, 2006–33 I.R.B. 248, to reflect the citations to the final regulations for the additional first year depreciation deduction provided by section 168(k) of the Code. The notice provides guidance with respect to the 50–percent additional first year depreciation deduction provided by section 1400N(d) of the Code for qualified Gulf Opportunity (GO) Zone property. Notice 2006–67 modified and superseded. Rev. Proc. 2002–9 modified and amplified.

Notice 2006–81, page 595. Section 355. This notice provides guidance for making an election under section 355(b)(3)(C) of the Code.

Notice 2006–83, page 596. This notice provides guidance to individual chapter 11 debtors and their bankruptcy estates regarding the tax treatment of post-petition income as the result of the enactment of section 1115 of the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The notice also alerts information return preparers regarding their reporting responsibilities.

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Rev. Proc. 2006–39, page 600. This procedure provides the domestic asset/liability percentages and domestic investment yields needed by foreign life insurance companies and foreign property and liability insurance companies to compute their minimum effectively connected net investment income under section 842(b) of the Code for taxable years beginning after December 31, 2004.

Announcement 2006–71, page 630. This document cancels a public hearing on proposed regulations (REG–118775–06, 2006–28 I.R.B. 73) under sections 871 and 881 of the Code relating to the exclusion from gross income of portfolio interest paid to a nonresident alien individual or foreign corporation.

Announcement 2006–72, page 630. This document contains a correction to final regulations (T.D. 9277, 2006–33 I.R.B. 226) providing guidance regarding employer comparable contributions to Health Savings Accounts (HSAs) under section 4980G of the Code.