Bulletin No. 2008-42 October 20, 2008

another corporation’s stock as taxable sales of that corporation’s assets.

Notice 2008–83, page 905. Section 382. This notice concerns the application of section 382(h) of the Code to banks.

Notice 2008–86, page 925. Extension of replacement period for livestock sold on account of drought. This notice explains the circumstances under which the 4-year replacement period under section 1033(e)(2) of the Code is extended for livestock sold on account of drought. The Appendix to this notice contains a list of the counties that experienced exceptional, extreme, or severe drought during the preceding 12-month period ending August 31, 2008. Taxpayers may use this list to determine if an extension is available.

Notice 2008–88, page 933. This notice provides that the Treasury Department and the IRS will treat a tax-exempt “qualified tender bond” (as defined in Notice 2008–41) or “tax-exempt commercial paper” (as defined in section 2 of this notice) that is purchased by its “governmental issuer” (as defined in Notice 2008–41) on a temporary basis as continuing in effect without resulting in a reissuance or retirement of the purchased tax-exempt bond if the governmental issuer holds the bond until not later than December 31, 2009. This notice also extends the final date for the purchase of bonds pursuant to a qualified tender right, and the final date on which covered waivers of interest rate caps are disregarded, to December 31, 2009. Notice 2008–41 amended and supplemented.

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Rev. Proc. 2008–61, page 934. This procedure provides areas affected by section 409A of the Code in which rulings will not be issued. Rev. Proc. 2008–3 modified and amplified.

Rev. Proc. 2008–63, page 946. This procedure provides guidance with respect to the application of section 1058(a) of the Code to situations in which securities are originally transferred pursuant to an agreement that meets the requirements of section 1058(b), the transferee subsequently defaults under the agreement as a direct or indirect result of its bankruptcy (or the bankruptcy of an affiliate), and as soon as is commercially practicable (but in no event more than 30 days following the default), the transferor applies collateral provided pursuant to the agreement to the purchase of identical securities.

Announcement 2008–95, page 964. This announcement contains clarification to filing procedures for Form 1042–S, Foreign Person’s U.S. Source Income Sub- ject to Withholding, filed electronically. These changes are effective immediately. Announcement 2008–19 superseded.