Part Iii Administrative, Procedural, And Miscellaneous 26 Cfr ...
Part III
Administrative, Procedural, and Miscellaneous
26 CFR 601.602: Tax forms and instructions.
(Also Part I, §§ 1, 23, 24, 25A, 25B, 32, 42, 59, 62, 63, 68, 132, 135, 137, 146, 148,
151, 170, 179, 213, 219, 220, 221, 408A, 512, 513, 685, 877, 911, 2032A, 2503, 2523,
4161, 6033, 6039F, 6323, 6334, 6601, 7430, 7702B; 1.148-3, 1.148-5)
Rev. Proc. 2007-66
Table of Contents
SECTION 1. PURPOSE
SECTION 2. CHANGES
SECTION 3. 2008 ADJUSTED ITEMS
Code
Section
.01 Tax Rate Tables
1(a)-(e)
.02 Unearned Income of Minor Children Taxed as if Parent’s
1(g)
Income ("Kiddie Tax")
.03 Adoption Credit
23
.04 Child Tax Credit
24
.05 Hope and Lifetime Learning Credits
25A
.06 Elective Deferrals and IRA Contributions by Certain Individuals
25B
.07 Earned Income Credit
32
- 2 -
.08 Low-Income Housing Credit
42(h)
.09 Alternative Minimum Tax Exemption for a Child Subject to the
59(j)
“Kiddie Tax”
.10 Transportation Mainline Pipeline Construction Industry Optional
62(c)
Expense Substantiation Rules for Payments to Employees under
Accountable Plans
.11 Standard Deduction
63
.12 Overall Limitation on Itemized Deductions
68
.13 Qualified Transportation Fringe
132(f)
.14 Income from United States Savings Bonds for Taxpayers Who
135
Pay Qualified Higher Education Expenses
.15 Adoption Assistance Programs
137
.16 Private Activity Bonds Volume Cap
146(d)
.17 General Arbitrage Rebate Rules
148(f)
.18 Safe Harbor Rules for Broker Commissions on Guaranteed
148
Investment Contracts or Investments Purchased for a Yield
Restricted Defeasance Escrow
.19 Personal Exemption
151
.20 Election to Expense Certain Depreciable Assets
179
.21 Eligible Long-Term Care Premiums
213(d)(10)
.22 Retirement Savings
219
.23 Medical Savings Accounts
220
.24 Interest on Education Loans
221
.25 Roth IRAs
408A
.26 Treatment of Dues Paid to Agricultural or Horticultural
512(d)
Organizations
- 3 -
.27 Insubstantial Benefit Limitations for Contributions Associated
513(h)
with Charitable Fund-Raising Campaigns
.28 Funeral Trusts
685
.29 Expatriation to Avoid Tax
877
.30 Foreign Earned Income Exclusion
911
.31 Valuation of Qualified Real Property in Decedent's Gross Estate
2032A
.32 Annual Exclusion for Gifts
2503 & 2523
.33 Tax on Arrow Shafts
4161
.34 Reporting Exception for Certain Exempt Organizations with
6033(e)(3)
Nondeductible Lobbying Expenditures
.35 Notice of Large Gifts Received from Foreign Persons
6039F
.36 Persons Against Whom a Federal Tax Lien Is Not Valid
6323
.37 Property Exempt from Levy
6334
.38 Interest on a Certain Portion of the Estate Tax Payable
6601(j)
in Installments
.39 Attorney Fee Awards
7430
.40 Periodic Payments Received under Qualified Long-Term Care
7702B(d)
Insurance Contracts or under Certain Life Insurance Contracts
SECTION 4. EFFECTIVE DATE
SECTION 5. DRAFTING INFORMATION
SECTION 1. PURPOSE
This revenue procedure sets forth inflation adjusted items for 2008.
SECTION 2. CHANGES
- 4 -
.01 The excise taxes imposed under § 4261(b) and (c), as enacted by the Airport and
Airway Trust Fund Tax Reinstatement Act of 1997 and extended by § 149(a) of Pub. L.
No. 110-92, 121 Stat. 989 (2007), apply to transportation taken through November 16,
2007, and to amounts paid on or before November 16, 2007, for transportation
beginning after that date. Accordingly, the amounts in § 4261(b) and (c) are not
included in this revenue procedure.
.02 For 2008, the inflation adjusted items in §§ 25B, 219, and 408A also will be
included in a separate news release and related notice with other inflation adjusted
amounts relating to pension and retirement accounts. For future years, these amounts
will not be included in this revenue procedure but will appear only in the separate news
release and related notice.
.03 For taxable years beginning after 2007, the inflation adjusted items for health
savings accounts under § 223 are published no later than June 1 of the preceding
calendar year. See § 223(g) and Rev. Proc. 2007-36, 2007-22 I.R.B. 1335.
Accordingly, these items are not included in this revenue procedure.
.04 Section 1.148-3(d)(1)(iv) of the proposed Income Tax Regulations provides that
on the last day of each bond year during which there are amounts allocated to gross
proceeds of an issue that are subject to the rebate requirement, and on the final
maturity date, there can be included as a payment a computation credit of $1,400 for
any bond year ending in 2007. For bond years ending after 2007, the $1,400
computation credit will be adjusted for inflation pursuant to proposed § 1.148-3(d)(4).
See section 3.17 of this revenue procedure.
- 5 -
SECTION 3. 2008 ADJUSTED ITEMS
.01 Tax Rate Tables. For taxable years beginning in 2008, the tax rate tables under
§ 1 are as follows:
TABLE 1 - Section 1(a) - Married Individuals Filing Joint Returns and Surviving
Spouses
If Taxable Income Is:
The Tax Is:
Not over $16,050
10% of the taxable income
Over $16,050 but
$1,605 plus 15% of
not over $65,100
the excess over $16,050
Over $65,100 but
$8,962.50 plus 25% of
not over $131,450
the excess over $65,100
Over $131,450 but
$25,550 plus 28% of
not over $200,300
the excess over $131,450
Over $200,300 but
$44,828 plus 33% of
not over $357,700
the excess over $200,300
Over $357,700
$96,770 plus 35% of
the excess over $357,700
TABLE 2 - Section 1(b) – Heads of Households
If Taxable Income Is:
The Tax Is:
Not over $11,450
10% of the taxable income
Over $11,450 but
$1,145 plus 15% of
not over $43,650
the excess over $11,450
Over $43,650 but
$5,975 plus 25% of
not over $112,650
the excess over $43,650
Over $112,650 but
$23,225 plus 28% of
not over $182,400
the excess over $112,650
Over $182,400 but
$42,755 plus 33% of
- 6 -
not over $357,700
the excess over $182,400
Over $357,700
$100,604 plus 35% of
the excess over $357,700
TABLE 3 - Section 1(c) – Unmarried Individuals (other than Surviving Spouses and
Heads of Households).
If Taxable Income Is:
The Tax Is:
Not over $8,025
10% of the taxable income
Over $8,025 but
$802.50 plus 15% of
not over $32,550
the excess over $8,025
Over $32,550 but
$4,481.25 plus 25% of
not over $78,850
the excess over $32,550
Over $78,850 but
$16,056.25 plus 28% of
not over $164,550
the excess over $78,850
Over $164,550 but
$40,052.25 plus 33% of
not over $357,700
the excess over $164,550
Over $357,700
$103,791.75 plus 35% of
the excess over $357,700
TABLE 4 - Section 1(d) – Married Individuals Filing Separate Returns
If Taxable Income Is:
The Tax Is:
Not over $8,025
10% of the taxable income
Over $8,025 but
$802.50 plus 15% of
not over $32,550
the excess over $8,025
Over $32,550 but
$4,481.25 plus 25% of
not over $65,725
the excess over $32,550
Over $65,725 but
$12,775 plus 28% of
not over $100,150
the excess over $65,725
Over $100,150 but
$22,414 plus 33% of
not over $178,850
the excess over $100,150
- 7 -
Over $178,850
$48,385 plus 35% of
the excess over $178,850
TABLE 5 - Section 1(e) – Estates and Trusts
If Taxable Income Is:
The Tax Is:
Not over $2,200
15% of the taxable income
Over $2,200 but
$330 plus 25% of
not over $5,150
the excess over $2,200
Over $5,150 but
$1,067.50 plus 28% of
not over $7,850
the excess over $5,150
Over $7,850 but
$1,823.50 plus 33% of
not over $10,700
the excess over $7,850
Over $10,700
$2,764 plus 35% of
the excess over $10,700
.02 Unearned Income of Minor Children Taxed as if Parent's Income (the "Kiddie
Tax"). For taxable years beginning in 2008, the amount in § 1(g)(4)(A)(ii)(I), which is
used to reduce the net unearned income reported on the child's return that is subject to
the "kiddie tax," is $900. This amount is the same as the $900 standard deduction
amount provided in section 3.11(2) of this revenue procedure. The same $900 amount
is used for purposes of § 1(g)(7) (that is, to determine whether a parent may elect to
include a child's gross income in the parent's gross income and to calculate the "kiddie
tax"). For example, one of the requirements for the parental election is that a child's
gross income is more than the amount referenced in § 1(g)(4)(A)(ii)(I) but less than 10
times that amount; thus, a child's gross income for 2008 must be more than $900 but
less than $9,000.
.03 Adoption Credit. For taxable years beginning in 2008, under § 23(a)(3) the credit
- 8 -
allowed for an adoption of a child with special needs is $11,650. For taxable years
beginning in 2008, under § 23(b)(1) the maximum credit allowed for other adoptions is
the amount of qualified adoption expenses up to $11,650. The available adoption credit
begins to phase out under § 23(b)(2)(A) for taxpayers with modified adjusted gross
income in excess of $174,730 and is completely phased out for taxpayers with modified
adjusted gross income of $214,730 or more. (See section 3.15 of this revenue
procedure for the adjusted items relating to adoption assistance programs.)
.04 Child Tax Credit. For taxable years beginning in 2008, the value used in
§ 24(d)(1)(B)(i) to determine the amount of credit under § 24 that may be refundable is
$12,050.
.05 Hope and Lifetime Learning Credits.
(1) For taxable years beginning in 2008, the Hope Scholarship Credit under
§ 25A(b)(1) is an amount equal to 100 percent of qualified tuition and related expenses
not in excess of $1,200 plus 50 percent of those expenses in excess of $1,200, but not
in excess of $2,400. Accordingly, the maximum Hope Scholarship Credit allowable
under § 25A(b)(1) for taxable years beginning in 2008 is $1,800.
(2) For taxable years beginning in 2008, a taxpayer's modified adjusted gross
income in excess of $48,000 ($96,000 for a joint return) is used to determine the
reduction under § 25A(d)(2)(A)(ii) in the amount of the Hope Scholarship and Lifetime
Learning Credits otherwise allowable under § 25A(a).
.06 Elective Deferrals and IRA Contributions by Certain Individuals. For taxable years
beginning in 2008, the applicable percentage under § 25B(b) is determined based on
- 9 -
the following amounts:
Modified Adjusted Gross Income
Joint Return
Head of Household
All Other Cases
Applicable
Over Not
Over Over Not
Over Over Not
over Percentage
$ 0
$32,000
$ 0
$24,000
$ 0 $16,000
50%
$32,000 $34,500 $24,000 $25,875
$16,000 $17,250 20%
$34,500 $53,000 $25,875 $39,750
$17,250 $26,500 10%
$53,000
$39,750
$26,500
0%
.07 Earned Income Credit.
(1) In general. For taxable years beginning in 2008, the following amounts are used
to determine the earned income credit under § 32(b). The "earned income amount" is
the amount of earned income at or above which the maximum amount of the earned
income credit is allowed. The "threshold phaseout amount" is the amount of adjusted
gross income (or, if greater, earned income) above which the maximum amount of the
credit begins to phase out. The "completed phaseout amount" is the amount of
adjusted gross income (or, if greater, earned income) at or above which no credit is
allowed.
Number
of
Qualifying
Children
Item One
Two or More None
Earned Income Amount
$ 8,580
$12,060
$ 5,720
Maximum Amount of Credit
$ 2,917
$ 4,824
$ 438
Threshold Phaseout Amount
$15,740 $15,740 $
7,160
(Single, Surviving Spouse, or
- 10 -
Head of Household)
Completed Phaseout Amount
$33,995 $38,646 $12,880
(Single, Surviving Spouse, or
Head of Household)
Threshold Phaseout Amount
$18,740 $18,740 $10,160
(Married Filing Jointly)
Completed Phaseout Amount
$36,995 $41,646 $15,880
(Married Filing Jointly)
The instructions for the Form 1040 series provide tables showing the amount of the
earned income credit for each type of taxpayer.
(2) Excessive investment income. For taxable years beginning in 2008, the earned
income tax credit is not allowed under § 32(i) if the aggregate amount of certain
investment income exceeds $2,950.
.08 Low-Income Housing Credit. For calendar year 2008, the amount used under
§ 42(h)(3)(C)(ii) to calculate the State housing credit ceiling for the low-income housing
credit is the greater of (1) $2.00 multiplied by the State population, or (2) $2,325,000.
.09 Alternative Minimum Tax Exemption for a Child Subject to the "Kiddie Tax." For
taxable years beginning in 2008, for a child to whom the § 1(g) "kiddie tax" applies, the
exemption amount under §§ 55 and 59(j) for purposes of the alternative minimum tax
under § 55 may not exceed the sum of (1) the child's earned income for the taxable
year, plus (2) $6,400.
.10 Transportation Mainline Pipeline Construction Industry Optional Expense
Substantiation Rules for Payments to Employees under Accountable Plans. For
calendar year 2008, an eligible employer may pay certain welders and heavy equipment
- 11 -
mechanics an amount of up to $15 per hour for rig-related expenses that is deemed
substantiated under an accountable plan if paid in accordance with Rev. Proc. 2002-41.
If the employer provides fuel or otherwise reimburses fuel expenses, up to $9 per hour
is deemed substantiated if paid under Rev. Proc. 2002-41.
.11 Standard Deduction.
(1) In general. For taxable years beginning in 2008, the standard deduction
amounts under § 63(c)(2) are as follows:
Filing Status Standard
Deduction
Married Individuals Filing Joint Returns
$10,900
and Surviving Spouses (§ 1(a))
Heads of Households (§ 1(b))
$ 8,000
Unmarried Individuals (other than Surviving Spouses
$ 5,450
and Heads of Households) (§ 1(c))
Married Individuals Filing Separate
$ 5,450
Returns (§ 1(d))
(2) Dependent. For taxable years beginning in 2008, the standard deduction
amount under § 63(c)(5) for an individual who may be claimed as a dependent by
another taxpayer cannot exceed the greater of (1) $900, or (2) the sum of $300 and the
individual's earned income.
(3) Aged or blind. For taxable years beginning in 2008, the additional standard
deduction amount under § 63(f) for the aged or the blind is $1,050. These amounts are
increased to $1,350 if the individual is also unmarried and not a surviving spouse.
.12 Overall Limitation on Itemized Deductions. For taxable years beginning in 2008,
the "applicable amount" of adjusted gross income under § 68(b), above which the
- 12 -
amount of otherwise allowable itemized deductions is reduced under § 68, is $159,950
(or $79,975 for a separate return filed by a married individual).
.13 Qualified Transportation Fringe. For taxable years beginning in 2008, the monthly
limitation under § 132(f)(2)(A), regarding the aggregate fringe benefit exclusion amount
for transportation in a commuter highway vehicle and any transit pass, is $115. The
monthly limitation under § 132(f)(2)(B), regarding the fringe benefit exclusion amount for
qualified parking, is $220.
.14 Income from United States Savings Bonds for Taxpayers Who Pay Qualified
Higher Education Expenses. For taxable years beginning in 2008, the exclusion under
§ 135, regarding income from United States savings bonds for taxpayers who pay
qualified higher education expenses, begins to phase out for modified adjusted gross
income above $100,650 for joint returns and $67,100 for other returns. The exclusion is
completely phased out for modified adjusted gross income of $130,650 or more for joint
returns and $82,100 or more for other returns.
.15 Adoption Assistance Programs. For taxable years beginning in 2008, under
§ 137(a)(2) the amount that can be excluded from an employee’s gross income for the
adoption of a child with special needs is $11,650. For taxable years beginning in 2008,
under § 137(b)(1) the maximum amount that can be excluded from an employee’s gross
income for the amounts paid or expenses incurred by an employer for qualified adoption
expenses furnished pursuant to an adoption assistance program for other adoptions by
the employee is $11,650. The amount excludable from an employee’s gross income
begins to phase out under § 137(b)(2)(A) for taxpayers with modified adjusted gross
- 13 -
income in excess of $174,730 and is completely phased out for taxpayers with modified
adjusted gross income of $214,730 or more. (See section 3.03 of this revenue
procedure for the adjusted items relating to the adoption credit.)
.16 Private Activity Bonds Volume Cap. For calendar year 2008, the amounts used
under § 146(d)(1) to calculate the State ceiling for the volume cap for private activity
bonds is the greater of (1) $85 multiplied by the State population, or (2) $262,095,000.
.17 General Arbitrage Rebate Rules. For bond years ending in 2008, the amount of
the computation credit determined under § 1.148-3(d)(4) of the proposed Income Tax
Regulations is $1,430.
.18 Safe Harbor Rules for Broker Commissions on Guaranteed Investment Contracts
or Investments Purchased for a Yield Restricted Defeasance Escrow. For calendar
year 2008, under § 1.148-5(e)(2)(iii)(B)(1), a broker’s commission or similar fee for the
acquisition of a guaranteed investment contract or investments purchased for a yield
restricted defeasance escrow is reasonable if (1) the amount of the fee that the issuer
treats as a qualified administrative cost does not exceed the lesser of (A) $34,000, and
(B) 0.2 percent of the computational base (as defined in § 1.148-5(e)(2)(iii)(B)(2)) or, if
more, $3,000; and (2) the issuer does not treat more than $95,000 in brokers’
commissions or similar fees as qualified administrative costs for all guaranteed
investment contracts and investments for yield restricted defeasance escrows
purchased with gross proceeds of the issue.
.19 Personal Exemption.
(1) Exemption amount. For taxable years beginning in 2008, the personal
- 14 -
exemption amount under § 151(d) is $3,500. The exemption amount for taxpayers with
adjusted gross income in excess of the maximum phaseout amount is $2,333 for
taxable years beginning in 2008.
(2) Phaseout. For taxable years beginning in 2008, the personal exemption amount
begins to phase out at, and reaches the maximum phaseout amount after, the following
adjusted gross income amounts:
AGI – Beginning AGI
–
Maximum
Filing Status of
Phaseout Phaseout
Married Individuals Filing Joint Returns and
$239,950
$362,450
Surviving Spouses (§ 1(a))
Heads of Households (§ 1(b))
$199,950
$322,450
Unmarried Individuals (other than Surviving $159,950
$282,450
Spouses and Heads of Households) (§ 1(c))
Married Individuals Filing Separate
$119,975
$181,225
Returns (§ 1(d))
.20 Election to Expense Certain Depreciable Assets. For taxable years beginning in
2008, under § 179(b)(1) the aggregate cost of any § 179 property a taxpayer may elect
to treat as an expense can not exceed $128,000. Under § 179(b)(2) the $128,000
limitation is reduced (but not below zero) by the amount by which the cost of § 179
property placed in service during the 2008 taxable year exceeds $510,000.
.21 Eligible Long-Term Care Premiums. For taxable years beginning in 2008, the
limitations under § 213(d)(10), regarding eligible long-term care premiums includible in
the term "medical care," are as follows:
Attained Age Before the Close of the Taxable Year
Limitation on Premiums
- 15 -
40 or less
$ 310
More than 40 but not more than 50
$ 580
More than 50 but not more than 60
$1,150
More than 60 but not more than 70
$3,080
More than 70
$3,850
.22 Retirement Savings.
(1) For taxable years beginning in 2008, the applicable dollar amount under
§ 219(g)(3)(B)(i) for taxpayers filing a joint return is $85,000. If the taxpayer’s spouse is
not an active participant, the applicable dollar amount for the spouse under
§ 219(g)(3)(B)(i) is $159,000 for taxable years beginning in 2008.
(2) For taxable years beginning in 2008, the applicable dollar amount under
§ 219(g)(3)(B)(ii) for all other taxpayers (except for married taxpayers filing separately)
is $53,000.
(3) The applicable dollar amount under § 219(g)(3)(B)(iii) for married taxpayers filing
separately is $0.
.23 Medical Savings Accounts.
(1) Self-only coverage. For taxable years beginning in 2008, the term "high
deductible health plan" as defined in § 220(c)(2)(A) means, for self-only coverage, a
health plan that has an annual deductible that is not less than $1,950 and not more than
$2,900, and under which the annual out-of-pocket expenses required to be paid (other
than for premiums) for covered benefits does not exceed $3,850.
(2) Family coverage. For taxable years beginning in 2008, the term "high deductible
- 16 -
health plan" means, for family coverage, a health plan that has an annual deductible
that is not less than $3,850 and not more than $5,800, and under which the annual out-
of-pocket expenses required to be paid (other than for premiums) for covered benefits
does not exceed $7,050.
.24 Interest on Education Loans. For taxable years beginning in 2008, the $2,500
maximum deduction for interest paid on qualified education loans under § 221 begins to
phase out under § 221(b)(2)(B) for taxpayers with modified adjusted gross income in
excess of $55,000 ($115,000 for joint returns), and is completely phased out for
taxpayers with modified adjusted gross income of $70,000 or more ($145,000 or more
for joint returns).
.25 Roth IRAs.
(1) For taxable years beginning in 2008, the applicable dollar amount under
§ 408A(c)(3)(C)(ii)(I) for taxpayers filing a joint return is $159,000.
(2) For taxable years beginning in 2008, the applicable dollar amount under
§ 408A(c)(3)(C)(ii)(II) for all other taxpayers (except for married taxpayers filing
separately) is $101,000.
(3) The applicable dollar amount under § 408A(c)(3)(C)(ii)(III) for married taxpayers
filing separately is $0.
.26 Treatment of Dues Paid to Agricultural or Horticultural Organizations. For taxable
years beginning in 2008, the limitation under § 512(d)(1), regarding the exemption of
annual dues required to be paid by a member to an agricultural or horticultural
organization, is $139.
- 17 -
.27 Insubstantial Benefit Limitations for Contributions Associated with Charitable
Fund-Raising Campaigns.
(1) Low cost article. For taxable years beginning in 2008, the unrelated business
income of certain exempt organizations under § 513(h)(2) does not include a "low cost
article" of $9.10 or less.
(2) Other insubstantial benefits. For taxable years beginning in 2008, the $5, $25,
and $50 guidelines in section 3 of Rev. Proc. 90-12, 1990-1 C.B. 471 (as amplified by
Rev. Proc. 92-49, 1992-1 C.B. 987, and modified by Rev. Proc. 92-102, 1992-2 C.B.
579), for disregarding the value of insubstantial benefits received by a donor in return
for a fully deductible charitable contribution under § 170, are $9.10, $45.50, and $91,
respectively.
.28 Funeral Trusts. For a contract entered into during calendar year 2008 for a
"qualified funeral trust," as defined in § 685, the trust may not accept aggregate
contributions by or for the benefit of an individual in excess of $9,000.
.29 Expatriation to Avoid Tax. For calendar year 2008, an individual with “average
annual net income tax” of more than $139,000 for the five taxable years ending before
the date of the loss of United States citizenship under § 877(a)(2)(A) is subject to tax
under § 877(b).
.30 Foreign Earned Income Exclusion. For taxable years beginning in 2008, the
foreign earned income exclusion amount under § 911(b)(2)(D)(i) is $87,600.
.31 Valuation of Qualified Real Property in Decedent's Gross Estate. For an estate of
a decedent dying in calendar year 2008, if the executor elects to use the special use
- 18 -
valuation method under § 2032A for qualified real property, the aggregate decrease in
the value of qualified real property resulting from electing to use § 2032A for purposes
of the estate tax can not exceed $960,000.
.32 Annual Exclusion for Gifts.
(1) For calendar year 2008, the first $12,000 of gifts to any person (other than gifts
of future interests in property) are not included in the total amount of taxable gifts under
§ 2503 made during that year.
(2) For calendar year 2008, the first $128,000 of gifts to a spouse who is not a
citizen of the United States (other than gifts of future interests in property) are not
included in the total amount of taxable gifts under §§ 2503 and 2523(i)(2) made during
that year.
.33 Tax on Arrow Shafts. For calendar year 2008, the tax imposed under
§ 4161(b)(2)(A) on the first sale by the manufacturer, producer, or importer of any shaft
of a type used in the manufacture of certain arrows is $0.43 per shaft.
.34 Reporting Exception for Certain Exempt Organizations with Nondeductible
Lobbying Expenditures. For taxable years beginning in 2008, the annual per person,
family, or entity dues limitation to qualify for the reporting exception under § 6033(e)(3)
(and section 5.05 of Rev. Proc. 98-19, 1998-1 C.B. 547), regarding certain exempt
organizations with nondeductible lobbying expenditures, is $97 or less.
.35 Notice of Large Gifts Received from Foreign Persons. For taxable years
beginning in 2008, recipients of gifts from certain foreign persons may be required to
report these gifts under § 6039F if the aggregate value of gifts received in a taxable
- 19 -
year exceeds $13,561.
.36 Persons Against Whom a Federal Tax Lien Is Not Valid. For calendar year 2008,
a federal tax lien is not valid against (1) certain purchasers under § 6323(b)(4) who
purchased personal property in a casual sale for less than $1,320, or (2) a mechanic's
lienor under § 6323(b)(7) that repaired or improved certain residential property if the
contract price with the owner is not more than $6,600.
.37 Property Exempt from Levy. For calendar year 2008, the value of property
exempt from levy under § 6334(a)(2) (fuel, provisions, furniture, and other household
personal effects, as well as arms for personal use, livestock, and poultry) can not
exceed $7,900. The value of property exempt from levy under § 6334(a)(3) (books and
tools necessary for the trade, business, or profession of the taxpayer) can not exceed
$3,950.
.38 Interest on a Certain Portion of the Estate Tax Payable in Installments. For an
estate of a decedent dying in calendar year 2008, the dollar amount used to determine
the "2-percent portion" (for purposes of calculating interest under § 6601(j)) of the estate
tax extended as provided in § 6166 is $1,280,000.
.39 Attorney Fee Awards. For fees incurred in calendar year 2008, the attorney fee
award limitation under § 7430(c)(1)(B)(iii) is $170 per hour.
.40 Periodic Payments Received under Qualified Long-Term Care Insurance
Contracts or under Certain Life Insurance Contracts. For calendar year 2008, the
stated dollar amount of the per diem limitation under § 7702B(d)(4), regarding periodic
payments received under a qualified long-term care insurance contract or periodic
- 20 -
payments received under a life insurance contract that are treated as paid by reason of
the death of a chronically ill individual, is $270.
SECTION 4. EFFECTIVE DATE
.01 General Rule. Except as provided in section 4.02, this revenue procedure applies
to taxable years beginning in 2008.
.02 Calendar Year Rule. This revenue procedure applies to transactions or events
occurring in calendar year 2008 for purposes of sections 3.08 (low-income housing
credit), 3.10 (transportation mainline pipeline construction industry optional expense
substantiation rules for payments to employees under accountable plans), 3.16 (private
activity bond volume cap), 3.17 (general arbitrage rebate rules), 3.18 (safe harbor rules
for broker commissions on guaranteed investment contracts or investments purchased
for a yield restricted defeasance escrow), 3.28 (funeral trusts), 3.29 (expatriation to
avoid tax), 3.31 (valuation of qualified real property in decedent's gross estate), 3.32
(annual exclusion for gifts), 3.33 (tax on arrow shafts), 3.36 (persons against whom a
federal tax lien is not valid), 3.37 (property exempt from levy), 3.38 (interest on a certain
portion of the estate tax payable in installments), 3.39 (attorney fee awards), and 3.40
(periodic payments received under qualified long-term care insurance contracts or
under certain life insurance contracts).
SECTION 5. DRAFTING INFORMATION
The principal author of this revenue procedure is Marnette M. Myers of the Office of
Associate Chief Counsel (Income Tax & Accounting). For further information regarding
this revenue procedure, contact Ms. Myers at (202) 622-4920 (not a toll-free call).
