SECTION 5. ADDITIONAL

INTERIM GUIDANCE AND REGULATIONS

.01 The Treasury Department and the IRS intend to issue additional interim guidance regarding application of the CAMT to respond to other comments submitted in response to the CAMT Proposed

Regulations. The Treasury Department and the IRS anticipate that the additional interim guidance will address several issues, including among others:

(1) the interaction of the CAMT and the tonnage tax regime enacted by the American Jobs Creation Act of 2004, Public Law 108-357, 118 Stat. 1418 (October 22, 2004), (2) how unrealized gains and losses on certain investment assets reported for financial statement purposes are taken into account for purposes of determining AFSI,

(3) alternative rules for determining a partner’s distributive share of partnership AFSI,

(4) AFSI adjustments resulting from certain transactions between a partner and partnership,

(5) AFSI adjustments resulting from certain corporate transactions, and

(6) alternative rules for early reliance on the CAMT Proposed Regulations.

.02 The Treasury Department and the IRS anticipate that new proposed regulations issued to revise the CAMT Proposed Regulations will incorporate rules similar to the interim simplified method described in section 3 of this notice, the additional interim guidance addressing the issues described in section 5.01(1) through (6) of this notice, and other issues described in interim guidance.