Bulletin No. 2007-40 October 1, 2007

Notice 2007–77, page 735. This notice provides adjusted limitations on housing expenses for tax year 2007 for purposes of section 911 of the Code.

Rev. Proc. 2007–59, page 745. This procedure permits certain partnerships to aggregate gains and losses from an expanded class of qualified financial assets for purposes of making reverse section 704(c) allocations under regulations section 1.704–3(e)(3).

Rev. Proc. 2007–61, page 747. This procedure provides a safe harbor under which companies taxable under Subchapter L do not have to include any portion of the increase for the taxable year in policy cash values of life insurance contracts described in section 264(f)(4)(A) of the Code (ICOLI Contracts) for purposes of applying the insurance company proration rules in sections 807(a)(2), 807(b)(1), 805(a)(4), 812, or 832(b)(5). Stakeholders are asked to comment on the need for additional guidance in this area, specifically with regard to the existence of any non-tax regulatory rules or other requirements that limit an insurance company’s ability to invest in ICOLI Contracts and the effect of any experience rating, inter-insurance, reciprocal, or reinsurance arrangement on transactions involving ICOLI Contracts.

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Actions Relating to Court Decisions is on the page following the Introduction. Finding Lists begin on page ii.