SECTION 14. MODIFICATION OF

PROVISION REGARDING REQUESTS FOR CREDIT OR REFUND

(a) Present requirement . Section 5(g) of Notice 2006–50 provides as follows:

Requests that do not follow the pro- visions of this notice . Requests that do not follow the provisions of this notice (whether filed before or after its publication)—

(1) Will not be processed to the extent they relate to the tax paid on nontaxable service that was billed after February 28, 2003; and

(2) Will be processed normally to the extent they relate to the tax paid on nontaxable service that was billed before March 1, 2003. (b) Reason for modification . Many of the pending refund claims that were filed

on or before May 25, 2006, include refund claims for nontaxable service that was billed before March 1, 2003, and after February 28, 2003. In the interest of sound tax administration and efficiency, the IRS will process all claims for credit or refund that were filed on or before May 25, 2006.

(c) Revised requirement . Accordingly, section 5(g) of Notice 2006–50 is modified to read as follows:

(1) Requests that do not follow the provisions of Notice 2006–50 and that were filed on or before May 25, 2006, will be processed normally.

(2) Requests that were filed on or after May 26, 2006, and do not follow the provisions of Notice 2006–50, will not be processed to the extent they relate to the tax paid on nontaxable service that was billed after February 28, 2003.