EFTA00809836.pdf

Page 3535 TITLE 26-INTERNAL REVENUE CODE 17621 end "(and such corporation shall be treated as an S cor- erty transferred, the taxpayer may elect to use poration for such taxable year for purposes of para- such Federal midterm rate for either of the 2 graph 13))". months preceding the month in which the valu- Subset. (d)(3)(A). Pub. L. 100-697. 2004(e)(19)(3). ation date falls for purposes of paragraph (2). In struck out "or incurred" after "amounts paid". Subset. (d)(4). Pub. L. 100-697. *200410191. inserted at the case of transfers of more than 1 interest in end ..Notwithstanding the preceding provisions of this the same property with respect to which the paragraph. for taxable years beginning after 1987. the taxpayer may use the same rate under para- applicable percentage for any partnership or S corpora- graph (2). the taxpayer shall use the same rate tion shall be 100 percent if more than 50 percent of such with respect to each such interest. entity's net income for the short taxable year which (b) Section not to apply for certain purposes would have resulted it the entity had not made an elec- tion under section 444 would have been allocated to This section shall not apply for purposes of partners or shareholders who would not have been enti- part I of subchapter D of chapter 1 or any other tled to the benefits of section 806(e012)1C) of the Tax Re- provision specified in regulations. form Act of 1986 with respect to such income." (c) Tables Subset. (d)(5). Pub. L. 100-647. +200109181. added par. (5). (1) In general Subset. (GO). Pub. L. 100-647. 32004(6)(4KB). added The tables prescribed by the Secretary for par. (9). purposes of subsection (a) shall contain valu- Subset. (g). Pub. L. 100-697. §2004(e)(6). substituted ation factors for a series of interest rate cat- including regulations providing for appropriate ad- egories. justments in the application of this section and sec- tions 280H and 444 in cases where— (2) Initial table "11)2 or more applicable election years begin in the Not later than the day 3 months after the same calendar year. or date of the enactment of this section. the Sec- "(2) the base year is a taxable year of less than 12 retary shall prescribe initial tables for pur- months" for including regulations for annualizing the income and applicable payments of an entity if poses of subsection (a). Such tables may be the base year is a taxable year of leas than 12 based on the same mortality experience as months". used for purposes of section 2031 on the date of the enactment of this section. EFFECTIVE DATE OP 1997 AMTLNDMENT (3) Revision for recent mortality charges Amendment by Pub. I.,. 105-24 applicable to taxable years beginning after Aug. 5. 1997. see section 1281(e) of Not later than December 31, 1989. the Sec- Pub. L. 105-24. set out as a note under section 6652 of rotary shall revise the initial tables prescribed this title. for purposes of subsection (a) to take into ac- count the most recent mortality experience EFFECTIVE DATE OP 1989 AMENDMENT available as of the time of such revision. Such Amendment by section 7721(c)(12) of Pub. L. 101-239 tables shall be revised not less frequently than applicable to returns the due date for which (deter- once each 10 years thereafter to take into ac- mined without regard to extensions) is after Dec. 21. count the most recent mortality experience 1989. see section 7721(d) of Pub. L. 101-239. set out as a available as of the time of the revision. note under section 461 of this title. Section 7821th) of Pub. L. 101-239 provided that the (d) Valuation date amendment made by that section is effective with re- For purposes of this section, the term "valu- spect to taxable years beginning after 1988. ation date" means the date as of which the valu- EFFECTIVE DATE OP 1988 AMENDMENT ation is made. Amendment by Pub. L. 100-647 effective, except as (e) Tables to include formulas otherwise provided, as it included in the provisions of For purposes of this section, the term - tables" the Revenue Act of 1987. Pub. L. 100-202. title X. to includes formulas. which such amendment relates, see section 20041u) of Pub. L. 100-647. set out as a note under section 56 of (Added Pub. L. 100-647. title V. §6031(a). Nov. 10, this title. 1988. 102 Stat. 3668.) EFFECTivE DATE REFERENCES IN TEXT Section applicable to applicable election years begin- The date of the enactment of this section. referred to ning after Dec. 31. 1986. see section 10206(0(2) of Pub. L. in subset. (c)(2). is the date of enactment of Pub. L. 100-203. set out as a note under section 444 of this title. 100-647. which was approved Nov. 10. 1988. CODIFICATION *7520. Valuation tables Another section 7520 was renumbered section 7521 of (a) General rule this title. For purposes of this title, the value of any an- EFFECTIVE DATE nuity, any interest for life or a term of years. or Section 5031(c) of Pub. L. 100-647 provided that: —The any remainder or reversionary interest shall be amendments made by this section (enacting this sec- determined— tion) shall apply in cases where the date as of which (1) under tables prescribed by the Secretary. the valuation is to be made occurs on or after the 1st and day of the 6th calendar month beginning after the date (2) by using an interest rate (rounded to the of the enactment of this Act (Nov. 10. 1988).- nearest 2/10ths of 1 percent) equal to 120 per- f 7521. Procedures involving taxpayer interviews cent of the Federal midterm rate in effect under section 1274(d)(1) for the month in which (a) Recording of interviews the valuation date falls. (1) Recording by taxpayer If an income, estate, or gift tax charitable con- Any officer or employee of the Internal Rev- tribution is allowable for any part of the prop- enue Service in connection with any In-person EFTA00809836 17522 TITLE 26-INTERNAL REVENUE CODE Page 3536 interview with any taxpayer relating to the of an Internal Revenue Service examination or determination or collection of any tax shall, investigation of the taxpayer. upon advance request of such taxpayer, allow (d) Section not to apply to certain investigations the taxpayer to make an audio recording of such interview at the taxpayer's own expense This section shall not apply to criminal inves- and with the taxpayer's own equipment. tigations or investigations relating to the integ- rity of any officer or employee of the Internal (2) Recording by IRS officer or employee Revenue Service. An officer or employee of the Internal Reve- (Added Pub. L. 100-647. title VI. 16228(a), Nov. 10, nue Service may record any interview de- 1988. 102 Stat. 3731, 17620; renumbered §7521. Pub. scribed in paragraph (1) if such officer or em- L. 101-239. title VII. 17816(1)(1), Dec. 19. 1989, 103 ployee— Stat. 2423.) (A) informs the taxpayer of such recording prior to the interview, and CODIFICATION (B) upon request of the taxpayer, provides Another section 7621 was renumbered section 7522 of the taxpayer with a transcript or copy of this title. such recording but only if the taxpayer pro- EFFECTIVE DATE vides reimbursement for the cost of the transcription and reproduction of such tran- Section 622i3(d) of Pub. L. 100-647 provided that: —The script or copy. amendments made by subsections (a) and to) (enacting this section] shall apply to interviews conducted on or (b) Safeguards after the date which is 90 days after the date of the en- (1) Explanations of processes actment of this Act (Nov. 10. 1988]." An officer or employee of the Internal Reve- *7522. Content of tax due, deficiency, and other nue Service shall before or at an initial inter- notices view provide to the taxpayer— (A) in the case of an in-person interview (a) General rule with the taxpayer relating to the determina- Any notice to which this section applies shall tion of any tax, an explanation of the audit describe the basis for, and identify the amounts process and the taxpayer's rights under such (if any) of. the tax due, interest, additional process, or amounts, additions to the tax, and assessable (B) in the case of an in-person interview penalties included in such notice. An inadequate with the taxpayer relating to the collection description under the preceding sentence shall of any tax, an explanation of the collection not invalidate such notice. process and the taxpayer's rights under such (b) Notices to which section applies process. This section shall apply to— (2) Right of consultation (1) any tax due notice or deficiency notice If the taxpayer clearly states to an officer or described in section 6155. 6212, or 6303. employee of the Internal Revenue Service at (2) any notice generated out of any informa- any time during any interview (other than an tion return matching program, and interview initiated by an administrative sum- (3) the 1st letter of proposed deficiency mons issued under subchapter A of chapter 78) which allows the taxpayer an opportunity for that the taxpayer wishes to consult with an administrative review in the Internal Revenue attorney, certified public accountant, enrolled Service Office of Appeals. agent, enrolled actuary, or any other person (Added Pub. L. 100-647. title VI. 16233(a). Nov. 10, permitted to represent the taxpayer before the 1988. 102 Stat. 3735. 17621; renumbered §7522. Pub. Internal Revenue Service, such officer or em- L. 101-608, title XI, §11704(a)(30). Nov. 6. 1990. 104 ployee shall suspend such interview regardless Stat. 1398419J of whether the taxpayer may have answered one or more questions. EFFECTM1 DATE (c) Representatives holding power of attorney Section 6233(c) of Pub. L. 100.647 provided that: •-The amendments made by this section (enacting this sec- Any attorney, certified public accountant, en- tion] shall apply to mailings made on or after January rolled agent, enrolled actuary, or any other per- 1. 1900." son permitted to represent the taxpayer before the Internal Revenue Service who is not dis- /7523. Graphic presentation of major categories barred or suspended from practice before the In- of Federal outlays and income ternal Revenue Service and who has a written (a) General rule power of attorney executed by the taxpayer may In the case of any booklet of instructions for be authorized by such taxpayer to represent the Form 1040. 1040A. or 1040EZ prepared by the Sec- taxpayer in any interview described in sub- retary for filing individual income tax returns section (a). An officer or employee of the Inter- for taxable years beginning in any calendar nal Revenue Service may not require a taxpayer year. the Secretary shall include in a prominent to accompany the representative in the absence place— of an administrative summons issued to the tax- (1) a pie-shaped graph showing the relative payer under subchapter A of chapter 78. Such an sizes of the major outlay categories, and officer or employee, with the consent of the im- (2) a pie-shaped graph showing the relative mediate supervisor of such officer or employee, sizes of the major income categories. may notify the taxpayer directly that such offi- cer or employee believes such representative is (b) Definitions and special rules responsible for unreasonable delay or hindrance For purposes of subsection (a)— EFTA00809837