Bulletin No. 2009-40 October 5, 2009

to fixed investment trusts. Additional comments must be submitted by November 14, 2009.

Notice 2009–81, page 455. 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, 2009. Taxpayers may use this list to determine if an extension is available.

Rev. Proc. 2009–42, page 459. This procedure describes the conditions under which a Regulated Investment Company (RIC) that invests in a public-private investment partnership (PPIP) is treated for purposes of the asset diversification test of section 851(b)(3) of the Code, as if it directly invested in the assets held by the PPIP.

Rev. Proc. 2009–45, page 471. This procedure describes the conditions under which modifications to the terms of certain commercial mortgage loans that are at risk of default will not cause the Service to challenge the tax status of certain securitization vehicles that hold the loans or to assert that those modifications give rise to prohibited transactions.

(Continued on the next page)

Announcement 2009–69, page 475. This announcement includes changes to Revenue Procedure 2007–65. Specifically, the announcement expands the rights of developers, investors, and related parties to enter into agreements for the purchase of the wind farm, any property included in the wind farm, or an interest in the project company to permit a purchase price determined prior to exercise if the parties reasonably believe that the price will not be less than the fair market value of the property at the time the right may be exercised. The announcement also clarifies how section 469 of the Code applies to credits generated by wind energy facilities, clarifies that the revenue procedure only provides safe harbor requirements, and makes conforming changes to the revenue procedure to reflect these three changes. Rev. Proc. 2007–65 modified.

EMPLOYEE PLANS

Notice 2009–77, page 449. 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 September 2009; the 24–month average segment rates; the funding transitional segment rates applicable for September 2009; and the minimum present value transitional rates for August 2009.

Rev. Proc. 2009–43, page 460. Revocation of elections by multiemployer defined bene- fit pension plans to freeze funded status under section 204 of WRERA. Section 204 of WRERA permits a plan to revoke the election to treat the plan as being funded at the prior year’s certified level with the approval of the Service. This procedure provides that the Service will automatically approve a revocation request if certain requirements are met, including a deadline for making a decision to revoke; notice to employees and other interested parties; and consistent treatment of participating employers during the plan year. The revenue procedure provides special rules for the automatic approval of revocation requests that are made pursuant to the resolution of arbitration. The revenue procedure also states that the Service will consider revocation requests that do not satisfy the standard for automatic approval if the requests are submitted in accordance with our usual ruling letter procedures. Notices 2009–31 and 2009–42 amplified.

ADMINISTRATIVE

Rev. Proc. 2009–44, page 462. This procedure updates Revenue Procedure 2002–44, which formally established a mediation procedure for cases in the Appeals administrative process. This procedures expands and clarifies the types of cases that may be mediated in Appeals. Generally, this program is available for cases in which a limited number of legal and factual issues remain unresolved following discussions in Appeals. Rev. Proc. 2002–44 superseded.

October 5, 2009 2009–40 I.R.B.