HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations.

INCOME TAX

Notice 2010–75, page 781. Credit for carbon dioxide sequestration, 2010 section 45Q inflation adjustment factor. The notice publishes the inflation adjustment factor for the credit for carbon dioxide (CO ) 2 sequestration under section 45Q of the Code for calendar year 2010. The amount of credit must be adjusted for inflation for taxable years beginning in a calendar year after 2009.

EMPLOYEE PLANS

T.D. 9505, page 755. Final regulations under sections 411(a)(13) and 411(b)(5) of the Code, which were added by section 701(b) of the Pension Protection Act of 2006 (PPA ‘06), provide guidance concerning hybrid defined benefit pension plans, including cash balance plans. The regulations under section 411(a)(13) generally describe the plans that are treated as statutory hybrid plans and provide special benefit calculation and vesting rules with respect to those plans. The regulations under section 411(b)(5) provide rules for statutory hybrid plans to comply with age discrimination requirements, including rules governing design of and conversion to a statutory hybrid plan, and rules governing operation of those plans, including providing interest credits that do not exceed a market rate of return.

REG–132554–08, page 783. Proposed regulations under sections 411(a)(13) and 411(b)(5) of the Code, as well as section 411(b)(1), provide additional guidance concerning hybrid defined benefit pension plans, including cash balance plans. In particular, these proposed regulations provide guidance as to the scope of relief under section 411(a)(13)(A), contain a special rule regarding the application of the 133 ¹ /3 percent rule under section 411(b)(1)(B) to

Finding Lists begin on page ii. Index for July through November begins on page iv.