Resignations of Enrolled Agents

The Director, Office of Professional Responsibility, has accepted offers of resignation as an enrolled agent from the following individuals:

Under Title 31, Code of Federal Regulations, Part 10, an enrolled agent, in order to avoid the institution or conclusion of a proceeding for his or her disbarment or suspension from practice before the In

ternal Revenue Service, may offer his or her resignation as an enrolled agent. The Director, Office of Professional Responsibility, in his discretion, may accept the offered resignation.

Name Address Date of Resignation

Schwartz, Judy Las Vegas, NV October 13, 2006

Atrium a Choice Community, Inc.,

Indiana, PA Avalon R & D, Inc., Williamsville, NY Barton Springs Heritage Association, Inc.,

Austin, TX Beacon Ridge a Choice Community, Inc.,

Indiana, PA Beautify American Roads Foundation,

Inc., Sharon, CT Beulah Land Community Development

Center, Houston, TX Blue Meadows, Inc., Rose, OK Borders Farm Preservation, Inc.,

Foster, RI Brain Synchrony, Incorporated,

Encinitas, CA Brick Foundation, Raleigh, NC Broom Tree Center for Clergy Renewal,

Inc., Wausau, WI Brothers Keeper, Inc., Tuscaloosa, AL Caboose Springs, Incorporated,

La Crescenta, CA Called to Care, Kalamazoo, MI Capital City Teen Production,

Savannah, GA Catalyst, Paonia, CO Cathedral of Praise Community

Development, Inc., Camden, SC Celebrity Luncheons, Wilkes-Barre, PA

Foundations Status of Certain Organizations

Announcement 2006–101

The following organizations have failed to establish or have been unable to maintain their status as public charities or as operating foundations. Accordingly, grantors and contributors may not, after this date, rely on previous rulings or designations in the Cumulative List of Organizations (Publication 78), or on the presumption arising from the filing of notices under section 508(b) of the Code. This listing does not indicate that the organizations have lost their status as organizations described in section 501(c)(3), eligible to receive deductible contributions.

Former Public Charities. The following organizations (which have been treated as organizations that are not private foundations described in section 509(a) of the Code) are now classified as private foundations:

3 Dimension Developers, Inc., Houston, TX Accokeek Community Development

Corporation, Waldorf, MD Acts of Hope, Inc., Duluth, GA Advisory Credit Management, Inc.,

East Brunswick, NJ AESOP, Inc., Cedar Hill, TX African Education Development Agency,

Inc. (AEDA), Brooklyn Park, MN Ahepa 59, Inc., Canton, OH Aina Hookupu O Kilauea, Kilauea, HI Alliance Health of Fall River, Inc.,

Newton, MA Alsharco, Inc., Gretna, LA American African Foundation Against

Torture, Inc., Schenectady, NY American Farm Center Foundation,

San Diego, CA Amit Discounted Living of America,

Pasadena, CA Andover’s Future Housing Corporation,

Andover, MA Arc of Passaic County, Hackensack, NJ Artscore, Columbus, OH Artsreach America, Inc., Chicago, IL Assist By Knight, Inc., Philadelphia, PA Astorling Sanctuary, Inc., Tampa, FL

December 26, 2006 1181 2006–52 I.R.B.

Golden Hill Development Foundation III,

Inc., New Haven, CT Good Cause, Inc., Oakland, CA Great Basin Foundation,

Salt Lake City, UT Great Minds of Tomorrow, Inc.,

Kalamazoo, MI Greater Faith Community Services, Inc.,

Petersburg, VA Greater Harvest Housing Corp., Inc.,

Baltimore, MD Greater Image Ministries, Seattle, WA Greater Whites Development Center,

Nashville, TN Gumbo Krewe, Inc., Norco, LA Harlem United Community HIV/AIDS

Prevention Center, Inc., New York, NY Harvest Community Development

Corporation, Detroit, MI Hasidigraphix, Inc., Boca Raton, FL Hellgate Management Corp., Bronx, NY Helping Hands of Charleston, Inc.,

North Charleston, SC Helping Hands of Winnsboro,

Winnsboro, LA Henry Evans Housing Corporation,

Fayetteville, NC HFERIBS, Inc., Tomahawk, WI Holt Family Help Center, Centerville, UT Home of the Eagle Shelter, Inc.,

Thibodaux, LA Hope Community Economic

Development, Inc., Jacksonville, FL Hope for Children, Inc., Pueblo, CO Hope Treatment Center, Reno, NV Hosts Faith Ministries, Inc.,

Friendswood, TX Hot Fudge Social Ventures, Inc.,

Atlanta, GA Housing for the Future, Inc., Elizabeth, NJ Housing Works Harlem Housing

Development Fund Corporation, Brooklyn, NY Howard Thurman Library, New York, NY Howl, Inc., Georgetown, KY Humans Preservation & Protection Fund,

Los Angeles, CA Illinois Affordable Housing, NFP,

Charleston, IL Immaculate Conception Ministries of

Charity, Inc., Washington, DC Immanuel Development Center,

Akron, OH In the Beginning Ministries,

Los Angeles, CA Institute for Science and Health,

St. Louis, MO

Center for Creative Leadership and

Renewal, Ogunquit, ME Centro Pre Escolar Mundo Chico, Inc.,

Salinas, PR Chaplain Memorial Endowment

Corporation, Church Creek, MD Children’s Preschool Corporation,

Corona, CA Childrens Stewardship Fund,

New York, NY Christian Alternative, Inc.,

Gainesville, FL Christian Home Area Ministry Partners,

Micanopy, FL City of Hope Missions of Kentucky, Inc.,

Richmond, KY Cloven Flame Ministries,

Center Point, TX Community Concerns Alliance, Inc.,

Detroit, MI Community Family Development

Foundation, Inc., Baltimore, MD Community Health Care Services,

Oakland, CA Community Outreach Program of

Enrichment, Inc., Houston, TX Concerned Citizens for 25A, Inc.,

Cold Spring Harbor, NY Concerned Veterans, Philadelphia, PA Conjuring Arts Research Center,

Las Vegas, NV Continuum of Care Ministry, Ruston, LA Crosby Family Foundation,

Los Angeles, CA Cuddlecare a New Jersey Nonprofit

Corporation, Neptune, NJ CWA Local 1033 James W. Gallagher

Scholarship Fund, Trenton, NJ Daily Retreat Adult Care, Inc., Dallas, TX Deeval U Educational Center,

Greenville, MS Delta Regional Foundation, Jackson, MS Developmental Institute for Rural

& Urban Excellence, Inc., Natchitoches, LA DFW Chinese Culture Center, Inc.,

Lewisville, TX Divine Call, Dallas, TX Doves Link, Inc., Beech Island, SC DuPont Theater, Inc., Grove City, PA Ecocosm Dynamics, Ltd., Tucker, GA Ecospirit Institute for Physical

and Metaphysical Ecology, Inc., Scotts Valley, CA Edheads, Hilliard, OH Educacion Para Todos, Inc., Durham, NC Education Empowerment Fund,

Lake Oswego, OR

El Segundo Youth Football &

Cheerleading, Inc., El Segundo, CA Empowering People & Communities

Together CDC, Itta Bena, MS Empowering Students and Parents, Inc.,

Columbia, MD E M P T Y, Cincinnati, OH Ensamble America Chamber Music and

Orchestral Society, New York, NY Epiphany Training and Empowerment

Corp., Ford Heights, IL Evangelistic Temple Foundation C E D C,

Inc., Simpsonville, SC Evangelizing for Christ Ministry, Inc.,

Arlington, TX Everywhere & Now Public Hous

Resid Organizing Natl Together, Inc., Far Rockaway, NY Families Doing Time, Compton, CA Family and Youth Achievement Center,

Inc., Durham, NC Family Support Centers, Lakeside, CA Fathers on Rights for Custody Equality,

Louisville, KY Feral Feline Sanctuary, Inc., Ocala, FL Finlion Center for Nonprofit Boards, Inc.,

Sioux Falls, SD Foothill Boys Baseball Association, Inc.,

Salt Lake City, UT For Gods Glory Ministries, Inc.,

Orange Park, FL Foundation for Sustainable Development

With Human Values, Inc., Washington, DC Foundation of Grace Respite Care, Inc.,

Chicago, IL Freeborn Foundation, Inc., Stamford, CT Friends of Artistry in Motion,

Westland, MI Friends of Friendship House Fund, Inc.,

Garland, TX Friends of the Elliott Museum, Inc.,

Palm City, FL Friends of the Farnsworth House,

Chicago, IL Friends of the Louisiana Museum

of Modern Art in Denmark, Inc., New York, NY Gallagher Foundation for Youth Sports,

Inc., Palm Dessert, CA Gambrell Ministries, Long Beach, CA Gate City Golf Association Foundation,

Inc., Greensboro, NC Gifts for Jesus, North Huntingdon, PA Girlspirit-Womensong, Inc.,

New York City, NY Gods Way Homeless Recovery, Inc.,

West Palm Beach, FL

2006–52 I.R.B. 1182 December 26, 2006

Northern California Community Housing

Services, Inc., Hawyard, CA Norway/Paris Community Television,

Norway, ME Oasis in the Desert Economic

Development District, Inc., College Park, GA Olive Branch Home for Neglected

Abused and Abandoned Children, Stone Mountain, GA On the Wings of Eagles, Inc.,

Copperhill, TN Operation Rebound, Grand Blanc, MI Orange County Medical Foundation, Inc.,

Hillsborough, NC Oxford Shake-Speare Company,

Huntsville, TX P Js Wings Programs, Dearborn, MI Pacific Ocean Wave Energy Research,

Inc., San Diego, CA Patriot a Choice Community, Inc.,

Indiana, PA Peacekeepers, Abilene, TX People Helping People of Detroit,

Detroit, MI Phase Nu, Inc., Ypsilanti, MI Philam Society of CPA’s, Los Angeles, CA Philidia Corporation, Long Beach, CA Pi Lambda Chi Latina Sorority

Scholarship Fund, Denver, CO Pooh Bear Community Child Care Center,

Hamburg, AR Prescott College Alumni Association,

Prescott, AZ Reaching Out Ministries, Inc.,

Plant City, FL Ready to Fly Ministries, Inc., Mena, AR Reliable Man Ministries, Inc., Orlando, FL Rest for All Nations, Inc., Leawood, KS Restoring Wounded Soldiers Outreach

Ministries, Decatur, GA Right for Harvest Ministries,

Columbus, OH Roberta S. Kaufman Memorial

Scholarship Fund, Inc., Plainview, NY Rocky Mountain Reintegration Services,

Inc., Colorado Springs, CO Rosebuds to Roses, Inc., Harvey, LA Rotary Club of Amherst East Foundation,

Williamsville, NY Salem Police Volunteer and Citizen

Association, Inc., Salem, OR San Diego Post 6 Activities Foundation,

San Diego, CA Sankofa Foundation, Inc., Chicago, IL Santa Maria Club, Inc.,

Southhampton, NY

International Photoacoustic and

Photothermal Association, Providence, RI International Royal Crescent Education

Foundation, Inc., Warner Robins, GA J. R. Richards Kids Foundation, Inc.,

Houston, TX Jeffersonian Society, Inc.,

Jacksonville, FL Jersey City Community Resource Center,

Jersey City, NJ Joey Cushman Memorial Scholarship

Fund, Fort Worth, TX Journey of Life Services,

Baton Rouge, LA Jowers Foundation, Inc., Southfield, MI Kansas Resource Alliance for Families,

Inc., Topeka, KS Kays, Inc., Independent Group Home for

Young Ladies, Atlanta, GA Keichange Foundation, Catonsville, MD Keystone Community Concepts,

Roanoke, TX K. I. C. (Kids in Christ), Inc.,

Montgomery, AL Knowledge I Trust, Inc., Darien, CT L A S Therapy Network and Development

Group, Inc., Nashville, TN Lakeland Cardinals Booster Club,

Fox Lake, IL Last Day Outreach Christian Center, Inc.,

Covington, GA Legacy Multicultural Center,

Glendale, CA Letitia Pratt Foundation, Inc., Nashua, NH Liberated Word Community Development

Corporation, Westampton, NJ Little Mountain Community Outreach,

Inc., Appling, GA Living Bread of Life, Inc.,

New Port Richey, FL Logos Foundation, Inc., Baltimore, MD Los Angeles Tenpoint Coalition,

Los Angeles, CA Los Angeles Williams Family Childrens

Foundation, Gardena, CA Lynchburg Charitable Construction Trust,

Lynchburg, VA Malibu Paradise, Inc., Stockbridge, GA Marriage and Parenting Institute,

Salt Lake City, UT Mcrae & Hall Family Learning Center,

Clio, AL Metro Group, Hompton, GA Mid-Del Charitable Foundation,

Harrington, DE Middlesex Health Services, Inc.,

Middlesex, NC

Mighty Vine Wellness Club,

Cincinnati, OH Millennium City Technology, Inc.,

Detroit, MI Mind Body & Soul of New Orleans, Inc.,

Marrero, LA Ministry of Jesus Christ, Temecula, CA Minnesota Hmong Youth Crime

Prevention and Educational Support, Inc., St. Paul, MN Minority Help, Inc., Chandler, AZ Miracle Kids, St. Louis, MO Miracle Valley Community Development

Corporation, Inc., Tuscaloosa, AL MM Cybertech Group, Inc., Midland, TX Mothers Network, Saint Monica, CA Mt. Pilgrim Foundation, Inc., Lugoff, SC MTC Senior Housing, Inc., Jamaica, NY Museum Domain Management

Association, Los Angeles, CA Museum on Fire, New London, MO MVA, Incorporated, Tulsa, OK National Association of Disabled

Asian-American, Los Angeles, CA National Grazing Lands Conservation,

Bowie, TX National Institute for Archives, Inc.,

Portland, OR National Latinas Caucus, Incorporated,

New York, NY Native Community Action Counsel,

Ely Nevada, NV Natural Hormone Research Institute, Inc.,

Dallas, TX Natural Talents Arts Foundation, Inc.,

Farmington, NM Naval Heritage Group, Inc.,

Far Rockaway, NY NBA Foundation, Washington, DC Nehemiah Restoration Center, Inc.,

Aiken, SC Nerriaet, Ojai, CA New Age News, Incorporated,

New York, NY New American Policy Institute, Inc.,

Shorewood, WI New Beginnings Transitional Housing

for Women & Women With Child, Inc., Stone Mountain, GA New Development House, Inc.,

Cleveland, OH New First Community Development

Corporation, Chicago Heights, IL New York State Police Chiefs Foundation,

Inc., Yorktown, NY Nigerian American Federation,

Grand Terrace, CA Noble Heart Services, Inc., Torrance, CA

December 26, 2006 1183 2006–52 I.R.B.

Stock Transfer Rules: Carryover of Earnings and Taxes; Correction

Announcement 2006–102

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

SUMMARY: This document contains corrections to final regulations (T.D. 9273, 2006–37 I.R.B. 394) that were published in the Federal Register on Tuesday, August 8, 2006 (71 FR 44887) addressing the carryover of certain tax attributes, such as earnings and profits and foreign income tax accounts, when two corporations combine in a corporate reorganization or liquidation that is described in both sections 367(b) and section 381 of the Internal Revenue Code.

DATES: The correction is effective August 8, 2006.

FOR FURTHER INFORMATION CONTACT: Jeffrey L. Parry, (202) 622–3850 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the subject of this correction are under sections 367(b) and 381 of the Internal Revenue Code.

Need for Correction

As published, final regulations (T.D. 9273) contain errors that may prove to be misleading and are in need of clarification.

- - - -

Correction of Publication

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read, in part, as follows:

Authority: 26 U.S.C. 7805 * * * Par. 7. Section 1.367(b)–7(f)(1)(iii) Example 1 (iii) is amended by revising the

Second Henry Street Housing

Development Fund Corp., New York, NY Seniors on the Move, Inc.,

Stone Mountain, GA Single Parents Association, Compton, CA Society of Mannequins, Chicago, IL Southern Gospel Radio Partners, Inc.,

Delhi, LA Spider Webb Services, Inc., Miami, FL Spiritual Power Development, Inc.,

Whistle, AL Sports Interface, Inc., Oakland, CA St. Benedict the Moor Development

Corporation, Savannah, GA Stanley L. Johnson Young Fathers

Young Men Organization, Inc., Jacksonville, FL Stillson Memorial Medical Center

Associates, Inc., Windsor, NY Stop Hazing, Inc., Orono, ME Students - Staff Honored for Success,

Spencerville, OH Succor Haven, Inc., Indianapolis, IN Sunrise Housing Foundation, McLean, VA Sunset Companions Agency, Oakland, CA Sunshine Factory, Inc., Fayetteville, GA Supreme Court Media Center,

Mendham, NJ Teach All Nations Fund, Inc.,

Quarryville, PA Texas Early Education Heritage Society,

League City, TX Texas Philanthropic Corporation,

Houston, TX Three Rivers Foundation for the Arts and

Sciences, Inc., Crowell, TX Tindalls School No. 3 Restoration, Inc.,

Ramsey, IN Titus House, Inc., Pickerington, OH Touching Hands of Life, Los Angeles, CA Trees for Life, Inc., Orlando, FL Tri Alpha Omega Ministries, Inc.,

Houston, TX Troy Lions Charities, Royal Oak, MI Tucson Cultural Development and

Community Improvement Association, Tucson, AZ Turnerpoint Akwaaba House, Inc.,

Detroit, MI Ucan International, Inc., Maryknoll, NY UMA Foundation, Inc., Dorchester, MA Umoja Group, Inc., Los Angeles, CA United in Peace, Inc., Chicago, IL Universal Medical Association of USA,

Inc., Rosemead, CA

Up and Away, Inc., Dorchester, MA Urgent Nest Ministries Life Care Center,

Raleigh, NC VB Alba Foundation, Inc.,

Fawn Grove, PA Virginia Living Histories, Inc.,

St. Louis, MO Visions of Rose Outreach Ministries,

Missouri City, TX Voices of the Next Generation Educational

Association, Oklahoma City, OK Volunteer Today, Castle Rock, CO Warren Avenue Community Development

Corporation, Southfield, MI Westbridge, Inc., Manchester, NH Williamsburg Trails and Greenways

Association, Inc., Haydenville, MA Windmill Foundation, Rego Park, NY Winning Ways, Inc., Raleigh, NC Wisconsin Champions for Arts

Education Business and Community, Oconomowoc, WI Wisdom and Heart Ministry, Inc.,

Jacksonville, FL Womens Empowerment Movement, Inc.,

Jonesboro, GA Word Faith Center Ministry, Inc.,

Ontario, CA World of Motorcycles Museum, Inc.,

North Judson, IN World Peace Through Technology

Organization, San Francisco, CA Y O U Youth Opportunities Unlimited,

Inc., Pearland, TX You-Turn Project, Inc., Lawndale, CA Youth Development Organization, Inc.,

Lawrence, MA

If an organization listed above submits information that warrants the renewal of its classification as a public charity or as a private operating foundation, the Internal Revenue Service will issue a ruling or determination letter with the revised classification as to foundation status. Grantors and contributors may thereafter rely upon such ruling or determination letter as provided in section 1.509(a)–7 of the Income Tax Regulations. It is not the practice of the Service to announce such revised classification of foundation status in the Internal Revenue Bulletin.

2006–52 I.R.B. 1184 December 26, 2006

last sentence of paragraph (A) and paragraph (B) to read as follows:

§ 1.367(b)–7 Carryover of earnings and profits and foreign income taxes in certain foreign-to-foreign non-recognition transactions.

• • • • (f) - -

(1) - - (iii) * - Example (1) - * * (A) - - - The 100u offset under section 952(c)(1)(B) does not result in a reduction of the hovering deficit for purposes of section 316 or section 902.

(B) Foreign surviving corporation A’s 100u of subpart F income not included in income by USP will accumulate and be added to its post–1986 undistributed earnings as of the beginning of 2009. This

100u of post-transaction earnings will be offset by the (100u) hovering deficit. Because the amount of earnings offset by the hovering deficit is 100% of the total amount of the hovering deficit, all $25 of the related taxes are added to the post-1986 foreign income taxes pool as well. Accordingly, foreign surviving corporation A has the following post–1986 undistributed earnings and post-1986 foreign income taxes on January 1, 2009:

Section 1.199–5T also issued under 26 U.S.C. 199(d). - * *

Section 1.199–7T also issued under 26 U.S.C. 199(d). - * *

Par. 4. Section 1.199–2T(e)(2) is amended by revising the eleventh sentence of Example 2 paragraph (i) and the seventh sentence of Example 5 paragraph (iv) to read as follows:

§ 1.199–2T Wage limitation (temporary) .

Example 2 . - * * (i) - - - For Y’s taxable year ending April 30, 2011, the total square footage of Y’s headquarters is 8,000 square feet, of which 2,000 square feet is set aside for domestic production activities. - * *

Example 5 . - * * (iv) * * * The EAG’s tentative section 199 deduction is $360,000 (.09 X (lesser of combined QPAI of $4,000,000 (B’s QPAI of $4,000,000 + S’s QPAI of $0) or combined taxable income of $4,200,000 (B’s taxable income of $4,000,000 + S’s taxable income of $200,000))) subject to the W–2 wage limitation of $50,000 (50% x ($100,000 (B’s W–2 wages) + $0 (S’s W–2 wages))). - * *

Par. 8. Section 1.199–5T is amended by revising sentences eight through ten of paragraph (e)(4)(ii)(A) and revising paragraph (g) to read as follows:

§ 1.199–5T Application of section 199 to pass-thru entities for taxable years beginning after May 17, 2006, the enactment date of the Tax Increase Prevention and Reconciliation Act of 2005 (temporary).

(e) * - (4) - * (ii) - *

---

LaNita Van Dyke, Chief, Publications and

Regulations Branch, Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on December 6, 2006, 8:45 a.m., and published in the issue of the Federal Register for December 7, 2006, 71 F.R. 70875)

TIPRA Amendments to Section 199; Correction

Announcement 2006–103

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

SUMMARY: This document contains corrections to final and temporary regulations (T.D. 9293, 2006–48 I.R.B. 957) that were published in the Federal Reg- ister on Thursday, October 19, 2006 (71 FR 61662) concerning the amendments made by the Tax Increase Prevention and Reconciliation Act of 2005 to section 199 of the Internal Revenue Code.

DATES: This correction is effective October 19, 2006.

FOR FURTHER INFORMATION CONTACT: Concerning §§ 1.199–2T (e)(2) and 1.199–8T(i)(5), Paul Handleman or Lauren Ross Taylor, (202) 622–3040; concerning §§ 1.199–3T(i)(7) and (8), and 1.199–5T, Martin Schaffer, (202) 622–3080; and concerning §§ 1.199–7T(b)(4) and 1.199–8T(i)(6), Ken Cohen, (202) 622–7790 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

The final and temporary regulations that are the subject of this correction are under section 199 of the Internal Revenue Code.

Need for Correction

As published, final and temporary regulations (T.D. 9293) contain errors that may prove to be misleading and are in need of clarification.

- - - -

Correction of Publication

Accordingly, 26 CFR part 1 is corrected by making the following amendments:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 is amended by adding entries in numerical order to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

December 26, 2006 1185 2006–52 I.R.B.

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read, in part, as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.704–1 is amended by revising instructional Par. 2, number 2 to read as follows:

1. • • 2. The heading and text of paragraphs (b)(1)(ii)( b ), and (b)(5) Examples 25 through 27 are revised.

• • • • Par. 3. Section 1.704–1(d)(5) is amended by revising Example 25 paragraph (ii), the ninth sentence and Example 26 paragraph (ii), the eighth sentence to read as follows:

§ 1.704–1 Partner’s distributive share.

• • • • Example 25 . - * * (ii) * * * Accordingly, the country X taxes will be reallocated according to the partners’ interests in the partnership.

Example 26 . - * * (ii) * * * Because AB’s partnership agreement allocates the $80,000 of country X taxes and $40,000 of country Y taxes in proportion to the distributive shares of income to which such taxes relate, the allocations are deemed to be in accordance with the partners’ interests in the partnership under paragraph (b)(4)(viii) of this section.

---

LaNita Van Dyke, Chief, Publications and

Regulations Branch, Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on December 6, 2006, 8:45 a.m., and published in the issue of the Federal Register for December 7, 2006, 71 F.R. 70877)

Railroad Track Maintenance Credit; Correction

Announcement 2006–105

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendment.

(A) - - - In this step, in this example, the portion of the trustee commissions not directly attributable to the rental operation ($2,000) is directly attributable to non-trade or business activities. In addition, the state income and personal property taxes are not directly attributable under § 1.652(b)–3(a) to either trade or business or non-trade or business activities, so the portion of those taxes not attributable to either the PRS interests or the rental operation is not a trade or business expense and, thus, is not taken into account in computing QPAI. The portion of the state income and personal property taxes that is treated as an other trade or business expense is $3,000 ($5,000 x $30,000 total trade or business gross receipts/$50,000 total gross receipts). - * *

(g) No attribution of qualified activities . Except as provided in § 1.199–3T(i)(7) regarding qualifying in-kind partnerships and § 1.199–3T(i)(8) regarding EAG partnerships, an owner of a pass-thru entity is not treated as conducting the qualified production activities of the pass-thru entity, and vice versa. This rule applies to all partnerships, including partnerships that have elected out of subchapter K under section 761(a). Accordingly, if a partnership manufactures QPP within the United States, or produces a qualified film or produces utilities in the United States, and distributes or leases, rents, licenses, sells, exchanges, or otherwise disposes of such property to a partner who then, without performing its own qualifying activity, leases, rents, licenses, sells, exchanges, or otherwise disposes of such property, then the partner’s gross receipts from this latter lease, rental, license, sale, exchange, or other disposition are treated as non-DPGR. In addition, if a partner manufactures QPP within the United States, or produces a qualified film or produces utilities in the United States, and contributes or leases, rents, licenses, sells, exchanges, or otherwise disposes of such property to a partnership which then, without performing its own qualifying activity, leases, rents, licenses, sells, exchanges, or otherwise disposes of such property, then the partnership’s gross receipts from this latter disposition are treated as non-DPGR.

---

LaNita Van Dyke, Chief, Publications and

Regulations Branch, Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on December 6, 2006, 8:45 a.m., and published in the issue of the Federal Register for December 7, 2006, 71 F.R. 70876)

Partner’s Distributive Share: Foreign Tax Expenditures; Correction

Announcement 2006–104

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

SUMMARY: This document contains correction to final regulations (T.D. 9292, 2006–47 I.R.B. 914) that were published in the Federal Register on Thursday, October 19, 2006 (71 FR 61648) regarding the allocation of creditable foreign tax expenditures by partnerships.

DATES: The correction is effective October 19, 2006.

FOR FURTHER INFORMATION CONTACT: Timothy J. Leska, (202) 622–3050 or Michael I. Gilman (202) 622–3850 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

The correction notice that is the subject of this document is under section 704 of the Internal Revenue Code.

Need for Correction

As published, final regulations (T.D. 9292) contain errors that may prove to be misleading and are in need of clarification.

- - - -

Correction of Publication

Accordingly, 26 CFR part 1 is corrected by making the following correcting amendments:

2006–52 I.R.B. 1186 December 26, 2006

SUMMARY: This document corrects temporary regulations (T.D. 9286, 2006–43 I.R.B. 750) that were published in the Federal Register on Friday, September 8, 2006 (71 FR 53009) providing rules for claiming the railroad track maintenance credit under section 45G of the Internal Revenue Code for qualified railroad track maintenance expenditures paid or incurred by a Class II railroad or Class III railroad and other eligible taxpayers during the taxable year.

DATES: This correction is effective September 8, 2006.

FOR FURTHER INFORMATION CONTACT: Winston H. Douglas, (202) 622–3110 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The temporary regulations (T.D. 9286) that is the subject of this document is under section 45G of the Internal Revenue Code.

Need for Correction

As published, the temporary regulations (T.D. 9286) contain errors that may prove to be misleading and are in need of clarification.

- - - -

Correction of Publication

Accordingly, 26 CFR parts 1 and 602 are corrected by making the following correcting amendments:

PART 1—INCOME TAXES

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * * Par. 2. Section 1.45G–0T is amended by removing the entry for § 1.45G–1T(e) and (e)(2) and redesignating the entries for § 1.45G–1T(e)(1) and § 1.45G–1T(e)(1)(i), (ii) and (iii) as the entries for (e), (e)(1), (e)(2) and (e)(3) respectively.

Par. 3. Section 1.45G–1T is amended by:

1. Removing paragraph (e)(2);

2. Redesignating paragraphs (e)(1)(i), (e)(1)(ii), and (e)(1)(iii) as paragraphs (e)(1), (e)(2), and (e)(3), respectively;

3. Revising paragraph (a), sixth sentence, paragraph (b)(9), paragraph (d)(6) Example 2 .(ii), last sentence, paragraph headings (e), (e)(1), (e)(2) and (e)(3), paragraph (e)(2), second and fifth sentences, paragraph (e)(3), first sentence, Example 1 .( i ), third sentence, Example 1 .( iii ), second sentence, Example 2 .( iii ), fourth sentence, and paragraph (g)(3). The revisions read as follows:

§ 1.45G–1T Railroad track maintenance credit (temporary).

(a) - - - Paragraph (e) of this section contains rules for adjusting basis for the amount of the RTMC claimed by an eligible taxpayer. - * *

(b) - - (9) Except as provided in paragraph (e)(2) of this section, railroad track is property described in STB property accounts 8 (ties), 9 (rails and other track material), and 11 (ballast) in 49 CFR part 1201, subpart A.

• • • • (d) - - (6) - - Example 2 . - * * (ii) * * * Because O’s tentative amount of RTMC does not exceed O’s credit limitation amount for the taxable year ending March 31, 2007, O may claim a RMTC for the taxable year ending March 31, 2007, in the amount of $75,000.
• • • • (e) Adjustments to basis - * * * (1) In general . - * * (2) Basis adjustment made to rail- road track . - - - For purposes of section 45G(e)(3) and this paragraph (e)(2), the adjusted basis of any railroad track with respect to which the eligible taxpayer claims the RTMC is limited to the amount of QRTME, if any, that is required to be capitalized into the qualifying railroad structure or an intangible asset. - * * If all or some of the QRTME paid or incurred by an eligible taxpayer during the taxable year is capitalized under section 263(a) to more than one asset, whether tangible

or intangible (for example, railroad track and bridges), the reduction to the basis of these assets under this paragraph (e)(2) is allocated among each of the assets subject to the reduction in proportion to the unadjusted basis of each asset at the time the QRTME is paid or incurred during that taxable year.

(3) Examples . The application of this paragraph (e) is illustrated by the following examples. - * *

Example 1 . - * * ( i ) * * * X uses the track maintenance allowance method for track structure expenditures (for further guidance, see Rev. Proc. 2002–65, 2002–2 C.B. 700, and § 601.601(d)(2)(ii)( b ) of this chapter). - * *

( iii ) - - - In accordance with paragraph (e)(2) of this section, X reduces the capitalized amount of $250,000 by the RTMC of $500,000 claimed by X for 2006, but not below zero. - * *

Example 2 . - * * ( iii ) * * * In accordance with paragraph (e)(2) of this section, Z reduces the capitalized amount of $1 million by the RTMC of $500,000 claimed by Z for 2006. - -

• • • • (g) - * (3) Special rules for 2005 returns . If a taxpayer’s Federal income tax return for a taxable year beginning after December 31, 2004, and ending before September 7, 2006, is filed before October 10, 2006, and the taxpayer is not filing an amended Federal income tax return for that taxable year pursuant to paragraph (g)(2) of this section before the taxpayer’s next filed original Federal income tax return, see paragraphs (d)(4)(iv) and (f)(7) of this section for the statements that must be attached to the taxpayer’s next filed original Federal income tax return.

PART 602 - OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

Par. 4. The authority citation for part 602 continues to read as follows: Authority: 26 U.S.C. 7805. Par. 5. In § 602.101, paragraph (b) is amended by revising the following entry in to the table to read as follows:

§ 602.101 OMB control numbers.

• • • • (b) - *

December 26, 2006 1187 2006–52 I.R.B.

CFR part or section where identified and described

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Current OMB control No.

1.45G–1T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1545–2031

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LaNita Van Dyke, Chief, Publications and

Regulations Branch, Legal Processing Division,

Associate Chief Counsel (Procedure and Administration).

(Filed by the Office of the Federal Register on December 7, 2006, 8:45 a.m., and published in the issue of the Federal Register for December 8, 2006, 71 F.R. 71039)

2006–52 I.R.B. 1188 December 26, 2006