SECTION 4. REQUEST FOR

COMMENTS

The Treasury Department and the IRS request comments on the new substantial assistance rules proposed in this notice. Comments are requested on whether the new rules are appropriately targeted and whether any modifications to the rules should be made before they are promulgated as regulations. In particular, comments are requested on whether the proposed cost test is appropriate for certain industries, and if not, how the rules could be modified or supplemented to properly address those industries while still addressing the Treasury Department’s and the IRS’ concerns about shifting profits offshore to CFCs organized in low tax jurisdictions. In addition, the Treasury Department and the IRS understand that taxpayers are also concerned with the special rule concerning a guaranty of performance contained in Treas. Reg. § 1.954–4(b)(2)(i). The Treasury Department and the IRS are reviewing this rule, particularly in light of Treas. Reg. § 1.482–9T, and request comments on whether changes to this rule are warranted and, if so, how it should be modified.

Written comments on the issues addressed in this notice may be submitted to the Office of Associate Chief Counsel International, Attention: Notice 2007–13, room 4710, CC:INTL:BR2, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC 20224. Alternatively, taxpayers may submit comments electronically to No- tice.Comments@m1.irscounsel.treas.gov .

2007–5 I.R.B. 412 January 29, 2007

of 1999, Pub. L. 106–170, 113 Stat. 1860 (1999), provides that any carryforward of a limitation amount may be carried forward only to the first 2 years (3 years for carryforwards from 1998 or 1999) following the unused limitation year. For this purpose, a limitation amount shall be treated as used on a first-in, first-out basis.

.04 Rev. Proc. 98–9, 1998–1 C.B. 341; Rev. Proc. 98–57, 1998–2 C.B. 682; Rev. Proc. 2000–10, 2000–1 C.B. 287; Rev. Proc. 2001–14, 2001–1 C.B. 343; Rev. Proc. 2002–25, 2002–1 C.B. 800; Rev. Proc. 2002–72, 2002–2 C.B. 931; Rev. Proc. 2004–61, 2004–2 C.B. 707; and Rev. Proc. 2004–72, 2004–2 C.B. 1033, allocated among the States the national limitation for 1998, 1999, 2000, 2001, 2002, 2003, 2004, and 2005, respectively.