Bulletin No. 2007-39 September 24, 2007

and Notices 89–110 and 2002–45 modified. A public hearing is scheduled for November 15, 2007.

REG–148393–06, page 714. Proposed regulations under section 402 of the Code clarify that a payment from a qualified plan for an accident or health insurance premium generally constitutes a distribution under section 402(a) that is taxable to the distributee under section 72 in the taxable year in which the premium is paid. The taxable amount generally would equal the amount of the premium charged against the participant’s benefits under the plan. These regulations would also provide that a distribution for the payment of the premium by a qualified plan generally is not excluded from gross income under section 104, 105 or 106, but such distribution would constitute an amount paid for accident or health insurance under section 213. A public hearing is scheduled for December 6, 2007.

Notice 2007–75, page 679. Weighted average interest rate update; corporate bond indices; 30-year Treasury securities. The weighted average interest rate for September 2007 and the resulting permissible range of interest rates used to calculate current liability and to determine the required contribution are set forth.

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EXEMPT ORGANIZATIONS

Announcement 2007–86, page 719. The IRS has revoked its determination that Museum of American Piano of Bangor, PA; Transitional Living Collaborative of Moraga, CA; Ken-Ray, Incorporated, of Orem, UT; DreamHome Foundation of Sherwood, OR; Creativity Innovation Productivity, Incorporated, DBA Horizon Event Foundation of Highwood, MT; Community Fellowship for Battered Women of Silicon Valley, Inc., of San Jose, CA; Alta Crossing, Inc., of Nampa, ID; Home Buyers Assistance Foundation, Inc., of Denver, CO; International Housing Solutions, Inc., of Sacramento, CA; and Filipino American Community Development Council, Inc., of San Jose, CA, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

EMPLOYMENT TAX

T.D. 9356, page 675. Final regulations under section 7701 of the Code explain that certain disregarded entities (qualified subchapter S subsidiaries and single-owner eligible entities) are to be treated as entities separate from their owners for purposes of paying and reporting federal employment and certain excise taxes. Notice 99–6 obsoleted as of January 1, 2009.

EXCISE TAX

T.D. 9356, page 675. Final regulations under section 7701 of the Code explain that certain disregarded entities (qualified subchapter S subsidiaries and single-owner eligible entities) are to be treated as entities separate from their owners for purposes of paying and reporting federal employment and certain excise taxes. Notice 99–6 obsoleted as of January 1, 2009.

ADMINISTRATIVE

Announcement 2007–85, page 719. This document provides notice of cancellation of a public hearing on proposed regulations (REG–143797–06, 2007–26 I.R.B. 1495) providing guidance on employer comparable contributions to Health Savings Accounts (HSAs).

September 24, 2007 2007–39 I.R.B.