SECTION 6. EFFECT ON OTHER

DOCUMENTS

Rev. Proc. 2001–42 is modified and amplified.

.03 Bond Fund Total Return . Rev. Proc. 2001–42, section 3.07(6), is modified to provide that the Bond Fund Total Return is (a) the “calendar year percentage return” (as defined in section 3.07(7) of Rev. Proc. 2001–42) represented by the end-of-year values of the Merrill Lynch U.S. Corporate Master Index (C0A0), as published by Merrill Lynch & Company, Inc., or any successor thereto, less (b) 1.0 percentage point. The Merrill Lynch U.S. Corporate Master Index (C0A0) is publicly available at www.mlindex.ml.com . Under this methodology, the Bond Fund Total Return for 2005 would be ((1546.511 1516.602)/1516.602) .01 = 0.9721 percent. .04 Address for Payment . The address set forth in Rev. Proc. 2001–42, section 5.04, for payment of the amount required under a closing agreement concerning inadvertent MECs is modified to read as follows: Internal Revenue Service, Receipt & Control Stop 31, 201 W. Rivercenter Blvd., Covington, KY 41011.

.05 Electronic Submissions . A new section 5.06 is added to Rev. Proc. 2001–42 to read as follows:

“.06 Electronic submissions . The information required under this revenue procedure may be submitted to the Service electronically, in read-only format, on a CD-ROM. Adobe Portable Document format is a suitable format. Other formats may be arranged on a case-by-case basis. The issuer must provide a total of 3 CD-ROMs, one for each of the three (3) copies of the closing agreement.” .06 Additional changes to Rev. Proc. 2001–42 . The Service is aware that additional changes to Rev. Proc. 2001–42 may be warranted. Notice 2007–15, page 503, this Bulletin, requests comments on a variety of issues affecting closing agreements for life insurance products, including inadvertent MECs. The Service will continue to process closing agreements under the provisions of Rev. Proc. 2001–42, as modified by this revenue procedure, until Rev. Proc. 2001–42 is replaced or further modified by publication in the Internal Revenue Bulletin.

2007–7 I.R.B. 516 February 12, 2007

(6) Transactions in which the refundable or contingent fee is related to the empowerment zone employment credit under § 1396(a).

(7) Transactions in which the refundable or contingent fee is related to the renewal community employment credit under § 1400H.

(8) Transactions in which the refundable or contingent fee is related to the employee retention credit under § 1400R(a), (b), or (c).