Bulletin No. 2009-4 January 26, 2009

means (a) any foreign corporation unless substantially all of its income is (i) effectively connected with the conduct of a trade or business in the U.S., or (ii) subject to a comprehensive foreign income tax, and (b) any partnership unless substantially all of its income is allocated to persons other than (i) foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and (ii) tax-exempt organizations.

Rev. Proc. 2009–15, page 356. Section 305. This procedure provides temporary guidance regarding section 305 treatment of a stock distribution by a publicly traded regulated investment company (RIC) or real estate investment trust (REIT) in which the shareholders have an election to receive money or stock, subject to an aggregate limitation on the amount of money to be distributed. Rev. Proc. 2008–68 amplified and superseded.

EMPLOYEE PLANS

Notice 2009–2, page 344. Weighted average interest rate update; corporate bond indices; 30-year Treasury securities; segment rates. This notice contains updates for the corporate bond weighted average interest rate for plan years beginning in January 2009; the 24-month average segment rates; the funding transitional segment rates applicable for January 2009; and the minimum present value transitional rates for December 2008.

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Notice 2009–8, page 347. This notice provides interim guidance on recently enacted section 457A of the Code which became effective January 1, 2009. Section 457A generally provides that compensation deferred under a nonqualified deferred compensation plan of a nonqualified entity is includible in gross income when there is no substantial risk of forfeiture of the right to such compensation. For this purpose, the term nonqualified deferred compensation plan has the meaning provided under section 409A(d), subject to some modifications, and the term nonqualified entity means (a) any foreign corporation unless substantially all of its income is (i) effectively connected with the conduct of a trade or business in the U.S., or (ii) subject to a comprehensive foreign income tax, and (b) any partnership unless substantially all of its income is allocated to persons other than (i) foreign persons with respect to whom such income is not subject to a comprehensive foreign income tax, and (ii) tax-exempt organizations.

EMPLOYMENT TAX

REG–158747–06, page 362. Proposed regulations under section 3402(t) of the Code have been issued relating to withholding. The regulations reflect changes in the law made by the Tax Increase Prevention and Reconciliation Act of 2005 that require federal, state, and local government entities to withhold income tax when making payments to persons providing property or services.

ADMINISTRATIVE

T.D. 9437, page 341. Final regulations under section 7216 of the Code provide rules relating to the disclosure and use of tax return information by tax return preparers. The regulations provide updated guidance regarding the disclosure of a taxpayer’s social security number to a tax return preparer located outside of the United States.

REG–160872–04, page 358. Proposed regulations under section 6707 of the Code implement the amendments provided by the American Jobs Creation Act of 2004. The regulations provide the rules relating to the assessment of penalties against material advisors who fail to timely file a true and complete return required under section 6111(a).

January 26, 2009 2009–4 I.R.B.