Bulletin No. 2007-36 — Internal Revenue Bulletin 2007-36

T.D. 9345, page 523. Final regulations under sections 367 and 1248 of the Code set forth principles for the attribution of earnings and profits to shares of stock of current or former controlled foreign corporations that participate in certain nonrecognition transactions. The final regulations also provide that, for purposes of section 1248, when a foreign partnership sells stock of a corporation, the partners of the partnership are treated as selling their proportionate shares of such stock.

REG–101001–05, page 548. Proposed regulations under section 165 of the Code provide guidance on the availability and character of a deduction for a loss sustained from abandoned stock or other securities.

REG–128224–06, page 551. Proposed regulations under section 67 of the Code provide a uniform standard for identifying the types of costs incurred by estates or non-grantor trusts that are fully deductible in calculating adjusted gross income under section 67(e)(1). Costs incurred by estates or non-grantor trusts that are unique to an estate or trust are not miscellaneous itemized deductions that are deductible only to the extent they exceed 2 percent of adjusted gross income. A public hearing is scheduled for November 14, 2007.

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Notice 2007–72, page 544. Transaction of interest – contribution of successor mem- ber interest. This notice describes a transaction in which a taxpayer makes a charitable contribution of an interest in an entity that holds real property and claims a deduction for the contribution that is significantly higher than the amount the taxpayer paid to acquire the interest. This notice identifies the transaction, and substantially similar transactions, as transactions of interest for purposes of regulations section 1.6011–4(b)(6) and sections 6111 and 6112 of the Code; and alerts persons involved with these transactions to certain responsibilities that may arise from their involvement with these transactions.

Notice 2007–73, page 545. This notice identifies a transaction that uses a grantor trust, and the purported termination and subsequent re-creation of the grantor trust, for the purpose of allowing the grantor to claim a tax loss greater than any actual economic loss sustained by the taxpayer or to avoid inappropriately the recognition of gain. The notice also alerts persons involved with these transactions to certain responsibilities that may arise from their involvement with these transactions.

EMPLOYEE PLANS

T.D. 9340, page 487. Final regulations provide updated guidance on tax-shelter annuities, custodial accounts of public schools and section 501(c)(3) tax-exempt organizations, and church retirement income accounts, authorized under section 403(b) of the Code. The regulations provide the public with the guidance necessary to comply with the law and will affect sponsors of section 403(b) contracts, administrators, participants and beneficiaries. The regulations also provide guidance relating to the controlled group rules under section 414(c) for entities that are tax-exempt under section 501(a).

EXEMPT ORGANIZATIONS

Announcement 2007–76, page 560. The IRS has revoked its determination that Progressive Services, Inc., of Norman, OK; Harold Binstein Humanitarian Fund of Chicago, IL; Say No to Drugs of Greenville, TX; Shamrock Boxing, Inc., of Covington, KY; National Home Foundation, Inc., of Rockville, MD; and Business & Nonprofit Center of Eastern Madera County of Fresno, CA, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

ESTATE TAX

T.D. 9344, page 535. REG–148951–05, page 550. Final, temporary, and proposed regulations under section 7425 of the Code relate to discharge of liens and return of wrongfully levied property under section 6343. The regulations clarify that notices and claims are to be sent to the IRS office and official specified in the relevant IRS publications.

GIFT TAX

EMPLOYMENT TAX

SELF-EMPLOYMENT TAX

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September 4, 2007 2007–36 I.R.B.

EXCISE TAX

TAX CONVENTIONS

Announcement 2007–75, page 540. This document provides a copy of the Competent Authority Agreement (CAA) entered into by the Competent Authorities of the United States and the Netherlands with respect to the qualification of certain tax-exempt trusts, companies, or other organizations for benefits under Article 35 of the U.S.–Netherlands income tax treaty. The CAA also provides guidelines for claiming treaty benefits in each country and the methods each country will use to grant treaty benefits.

ADMINISTRATIVE

Rev. Proc. 2007–57, page 547. This procedure informs taxpayers of their obligations under section 3402(q) of the Code pertaining to withholding and information reporting applicable to certain amounts paid to winners of poker tournaments. It further sets forth procedures to be used to comply with the relevant requirements of the Code and the Treasury regulations thereunder.

2007–36 I.R.B. September 4, 2007