Bulletin No. 2008-29 July 21, 2008

1040NR, Form 1040A, or Form 1040EZ) under regulations section 301.7216–3, and also provided specific requirements for electronic signatures when a taxpayer executes an electronic consent to the use or disclosure of the taxpayer’s tax return information. This procedure modifies Rev. Proc. 2008–12 to include the description of an “adequate data security safeguard,” provide mandatory consent language for use in a consent when an unmasked or unredacted SSN is to be disclosed outside the U.S., add an example of valid consent in the context of SSN disclosure outside of the U.S., and provide other minor clarifications. Rev. Proc. 2008–12 modified and superseded.

Rev. Proc. 2008–37, page 137. This procedure provides issuers with the terms and procedures for requesting, pursuant to regulations section 1.148–3(i), a recovery of overpayments of arbitrage rebate, penalty in lieu of rebate, and yield reduction paid to the United States under section 148 of the Code. The procedure also establishes a deadline of no later than two years after the final computation date with respect to an issue for the filing of these requests and provides a transitional period of two years from the publication of this procedure for requests relating to issues for which the final computation date has already occurred. Finally, this procedure clarifies that similar requests for overpayments for bond issues governed by the temporary regulations published in the Federal Register on May 18, 1992, will be treated in the same manner as requests for recovery of overpayments made under section 1.148–3(i). Rev. Proc. 92–83 obsoleted.

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Announcement of Declaratory Judgment Proceedings Under Section 7428 begins on page 164. Finding Lists begin on page ii.

EMPLOYEE PLANS

Notice 2008–62, page 130. This notice provides that the Treasury Department and the IRS anticipate proposing regulations that will address, among other things, when an arrangement in which an employee or independent contractor receives recurring part-year compensation over an extended period, such as a 12-month payment schedule, does not constitute deferred compensation for purposes of section 457(f) of the Code. Until further guidance is issued, taxpayers may rely on the rule described in section II of this notice beginning with the first taxable year that includes July 1, 2008.

EXEMPT ORGANIZATIONS

Announcement 2008–66, page 164. The IRS has revoked its determination that Human Progress, Inc., of Redlands, CA; Petty Foundation of Calumet City, IL; American Indian Services, Inc., of Minneapolis, MN; The Foundation of Port Monmouth, NJ; Larry & Bladie Dye Foundation of Covington, TN; Catherine Desaintphalle Smith Family Foundation of San Rafael, CA; and Bonnemort Foundation of Salt Lake City, UT, qualify as organizations described in sections 501(c)(3) and 170(c)(2) of the Code.

ESTATE TAX

Rev. Rul. 2008–35, page 116. Transfer tax valuation of interest in restricted manage- ment account. This ruling addresses whether an interest in a restricted management account (RMA) will be valued for transfer tax purposes without any reduction or discount for the restrictions imposed by the RMA agreement.

GIFT TAX

Rev. Rul. 2008–35, page 116. Transfer tax valuation of interest in restricted manage- ment account. This ruling addresses whether an interest in a restricted management account (RMA) will be valued for transfer tax purposes without any reduction or discount for the restrictions imposed by the RMA agreement.

ADMINISTRATIVE

T.D. 9409, page 118. REG–121698–08, page 163. Final, temporary, and proposed regulations under section 7216 of the Code update the rules regarding disclosures of tax return information by tax return preparers, providing an exception

allowing a U.S. tax return preparer to obtain consent from a taxpayer to disclose a taxpayer’s social security number (SSN) to a non-U.S. tax return preparer when the U.S. preparer makes the disclosure through the use of an “adequate data protection safeguard,” the non-U.S. preparer receives the SSN via an “adequate data protection safeguard,” and the U.S. preparer verifies the maintenance of the adequate data protection safeguards in the request for the taxpayer’s consent. The regulations also provide clarification that the general SSN masking rule and the exception thereto apply only to consents related to returns in the Form 1040 series, and clarification regarding U.S. preparers on temporary travel status. The regulations are applicable to disclosures of tax return information occurring on or after January 1, 2009. A public hearing on the proposed regulations is scheduled for October 6, 2008.

Rev. Proc. 2008–38, page 139. Life insurance contracts; qualified additional benefits; closing agreement. This document provides a procedure by which an issuer of a life insurance contract may remedy a failure to account for charges for qualified additional benefits (QABs) under the expense charge rule of section 7702(c)(3)(B)(ii) of the Code. Rev. Rul. 2005–6 amplified.

Rev. Proc. 2008–39, page 143. Life insurance contracts, modified endowment contracts (MECs); closing agreement. This document provides a procedure by which an issuer of a life insurance contract may remedy an inadvertent non-egregious failure to comply with the modified endowment contract rules under section 7702A of the Code. Rev. Procs. 2001–42 and 2007–19 superseded.

Rev. Proc. 2008–40, page 151. Life insurance contracts; closing agreement. This document provides a procedure by which an issuer of a life insurance contract may remedy the failure of one or more contracts to meet the definition of a life insurance contract under section 7702(a) or to satisfy the requirements of section 101(f) of the Code. Rev. Rul. 91–17 superseded in part. Notice 99–48 superseded.

Rev. Proc. 2008–41, page 155. Life insurance; variable contracts, closing agreement. This document provides a procedure by which an issuer of a variable contract may remedy an inadvertent failure of a variable contract to satisfy the diversification requirements of section 817(h) of the Code. Rev. Rul. 91–17 amplified. Rev. Proc. 92–25 superseded. Notice 2000–9 obsoleted.

Rev. Proc. 2008–42, page 160. Life insurance contracts; automatic waiver. This document provides a procedure by which an issuer of a life insurance contract may automatically obtain a waiver, under section 7702(f)(8) or section 101(f)(3)(H) of the Code, for certain reasonable errors that caused the contract to fail to satisfy the requirements of section 7702 or section 101(f), as applicable. Rev. Rul. 91–17 amplified.

July 21, 2008 2008–29 I.R.B.