.03 Section 143(e)(1) provides that an issue of bonds meets the purchase price requirements of section 143(e) if the acquisition cost of each residence financed by the issue does not exceed 90 percent of the average area purchase price applicable to such residence. Section 143(e)(5) provides that, in the case of a targeted area residence (as defined in section 143(j)), section 143(e)(1) shall be applied by substituting 110 percent for 90 percent.

.04 Section 143(e)(2) provides that the term “average area purchase price” means, with respect to any residence, the average purchase price of single-family residences (in the statistical area in which the residence is located) that were purchased during the most recent 12-month period for which sufficient statistical information is available. Under sections 143(e)(3) and (4), respectively, separate determinations are to be made for new and existing residences, and for two-, three-, and four-family residences.

.05 Section 143(e)(2) provides that the determination of the average area purchase price for a statistical area shall be made as of the date on which the commitment to provide the financing is made or, if earlier, the date of the purchase of the residence.

.06 Section 143(k)(2)(A) provides that the term “statistical area” means (i) a metropolitan statistical area (MSA), and (ii) any county (or the portion thereof) that is not within an MSA. Section 143(k)(2)(C) further provides that if sufficient recent statistical information with respect to a county (or portion thereof) is unavailable, the Secretary may substitute another area for which there is sufficient recent statistical information for such county (or portion thereof). In the case of any portion of a State which is not within a county, section 143(k)(2)(D) provides that the Secretary may designate as a county any area that is the equivalent of a county. Section 6a.103A-1(b)(4)(i) of the Temporary Income Tax Regulations (issued under section 103A of the Internal Revenue Code of 1954, the predecessor of section 143) provides that the term “State” includes a possession of the United States and the District of Columbia.

.07 Section 6a.103A-2(f)(5)(i) provides that an issuer may rely upon the average area purchase price safe harbors published by the Department of the Treasury for the statistical area in which a residence is located. Section 6a.103A-2(f)(5)(i) further provides that an issuer may use an average area purchase price limitation different from the published safe harbor if the issuer has more accurate and comprehensive data for the statistical area.

.08 Section 25(c) permits a state or political subdivision to establish a qualified mortgage credit certificate program. In general, a qualified mortgage credit certificate program is a program under which the issuing authority elects not to issue an amount of private activity bonds that it may otherwise issue during the calendar year under section 146, and in their place, issues mortgage credit certificates to taxpayers in connection with the acquisition of their principal residences. Section 25(a)(1) provides, in general, that the holder of a mortgage credit certificate may claim a federal income tax credit equal to the product of the credit rate specified in the certificate and the interest paid or accrued during the tax year on the remaining principal of the indebtedness incurred to acquire the residence. Section 25(c)(2)(A)(iii)(III) generally provides that residences acquired in connection with the issuance of mortgage credit certificates must meet the purchase price requirements of section 143(e).

.09 Section 143(f) imposes limitations on the income of mortgagors for whom financing may be provided by qualified mortgage bonds. In addition, section 25(c)(2)(A)(iii)(IV) provides that holders of mortgage credit certificates must meet the income requirement of section 143(f). Generally, under sections 143(f)(1) and 25(c)(2)(A)(iii)(IV), the income requirement is met only if all owner-financing under a qualified mortgage bond and all mortgage credit certificates issued under a qualified mortgage credit certificate program are provided to mortgagors whose family income is 115 percent or less of the applicable median family income. Section 143(f)(5), however, generally provides for an upward adjustment to the percentage limitation in high housing cost areas. High housing cost areas are defined in section 143(f)(5)(C) as any statistical area for which the housing cost/income ratio is greater than 1.2.

.10 Under section 143(f)(5)(D), the housing cost/income ratio with respect to any statistical area is determined by dividing (a) the applicable housing price ratio for such area by (b) the ratio that the area median gross income for such area bears to the median gross income for the United States. The applicable housing price ratio is the new housing price ratio (new housing average area purchase price divided by the new housing average purchase price for the United States) or the existing housing price ratio (existing housing average area purchase price divided by the existing housing average purchase price for the United States), whichever results in the housing cost/income ratio being closer to 1.

.11 Average area purchase price safe harbors for each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam were last published in Rev. Proc. 2008-17, 2008-10 I.R.B. 549.

.12 The nationwide average purchase price limitation was last published in section 4.02 of Rev. Proc. 2008-17. Guidance with respect to the United States and area median gross income figures that are to be used in computing the housing cost/income ratio described in section 143(f)(5) was last published in Rev. Proc. 2008-19, 2008-11 I.R.B. 594.

.13 This revenue procedure uses FHA loan limits for a given statistical area to calculate the average area purchase price safe harbor for that area. FHA sets limits on the dollar value of loans it will insure based on median home prices and conforming loan limits established by the Federal Home Loan Mortgage Corporation. In particular, FHA sets an area’s loan limit at 95 percent of the median home sales price for the area, subject to certain floors and caps measured against conforming loan limits.

.14 To calculate the average area purchase price safe harbors in this revenue procedure, the FHA loan limits are adjusted to take into account the differences between average and median purchase prices. Because FHA loan limits do not differentiate between new and existing residences, this revenue procedure contains a single average area purchase price safe harbor for both new and existing residences in a statistical area. The Treasury Department and the Internal Revenue Service have determined that FHA loan limits provide a reasonable basis for determining average area purchase price safe harbors. If the Treasury Department and the Internal Revenue Service become aware of other sources of average purchase price data, including data that differentiate between new and existing residences, consideration will be given as to whether such data provide a more accurate method for calculating average area purchase price safe harbors.

.15 The average area purchase price safe harbors listed in section 4.01 of this revenue procedure are based on FHA loan limits released November 07, 2008. FHA loan limits are available for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam. See section 3.03 of this revenue procedure with respect to FHA loan limits revised after November 07, 2008.

.16 OMB Bulletin No. 03-04, dated and effective June 6, 2003, revised the definitions of the nation’s metropolitan areas and recognized 49 new metropolitan statistical areas. The OMB bulletin no longer includes primary metropolitan statistical areas.

.01 Average area purchase price safe harbors for statistical areas in each state, the District of Columbia, Puerto Rico, the Northern Mariana Islands, American Samoa, the Virgin Islands, and Guam are set forth in section 4.01 of this revenue procedure. Average area purchase price safe harbors are provided for single-family and two to four-family residences. For each type of residence, section 4.01 of this revenue procedure contains a single safe harbor that may be used for both new and existing residences. Issuers of qualified mortgage bonds and issuers of mortgage credit certificates may rely on these safe harbors to satisfy the requirements of sections 143(e) and (f). Section 4.01 of this revenue procedure provides safe harbors for MSAs and for certain counties and county equivalents. If no purchase price safe harbor is available for a statistical area, the safe harbor for “ALL OTHER AREAS” may be used for that statistical area (except for Alaska, for which a separate safe harbor is provided for statistical areas not listed).

.02 If a residence is in an MSA, the safe harbor applicable to it is the limitation of that MSA. If an MSA falls in more than one state, the MSA is listed in section 4.01 of this revenue procedure under each state.

.03 If the FHA revises the FHA loan limit for any statistical area after November 07, 2008, an issuer of qualified mortgage bonds or mortgage credit certificates may use the revised FHA loan limit for that statistical area to compute (as provided in the next sentence) a revised average area purchase price safe harbor for the statistical area provided that the issuer maintains records evidencing the revised FHA loan limit. The revised average area purchase price safe harbor for that statistical area is computed by dividing the revised FHA loan limit by .94. When new FHA loan limits pursuant to the American Recovery and Reinvestment Act of 2009, P. L. 111-5, are published, those numbers must be divided by 1.03 to compute a revised average area purchase price safe harbor for a statistical area.

.04 If, pursuant to section 6a.103A-2(f)(5)(i), an issuer uses more accurate and comprehensive data to determine the average area purchase price for a statistical area, the issuer must make separate average area purchase price determinations for new and existing residences. Moreover, when computing the average area purchase price for a statistical area that is an MSA, as defined in OMB Bulletin No. 03-04, the issuer must make the computation for the entire applicable MSA. When computing the average area purchase price for a statistical area that is not an MSA, the issuer must make the computation for the entire statistical area and may not combine statistical areas. Thus, for example, the issuer may not combine two or more counties.

.05 If an issuer receives a ruling permitting it to rely on an average area purchase price limitation that is higher than the applicable safe harbor in this revenue procedure, the issuer may rely on that higher limitation for the purpose of satisfying the requirements of section 143(e) and (f) for bonds sold, and mortgage credit certificates issued, not more than 30 months following the termination date of the 12-month period used by the issuer to compute the limitation.

.06 Section 4.02 of this revenue procedure sets forth a single nationwide average purchase price for purposes of computing the housing cost/income ratio under section 143(f)(5).

.07 Issuers must use the nationwide average purchase price set forth in section 4.02 of this revenue procedure when computing the housing cost/income ratio under section 143(f)(5) regardless of whether they are relying on the average area purchase price safe harbors contained in this revenue procedure or using more accurate and comprehensive data to determine average area purchase prices for new and existing residences for a statistical area that are different from the published safe harbors in this revenue procedure.

.08 If, pursuant to section 6.02 of this revenue procedure, an issuer relies on the average area purchase price safe harbors contained in Rev. Proc. 2008-17, the issuer must use the nationwide average purchase price set forth in section 4.02 of Rev. Proc. 2008-17 in computing the housing cost/income ratio under section 143(f)(5). Likewise, if, pursuant to section 6.05 of this revenue procedure, an issuer relies on the nationwide average purchase price published in Rev. Proc. 2008-17, the issuer may not rely on the average area purchase price safe harbors published in this revenue procedure.

The temporary regulations that are the subject of this document are under section 6103 of the Internal Revenue Code.

The temporary regulations (T.D. 9439) that were published in the Federal Register on December 29, 2008, inadvertently removed §301.6103(j)(1)-1T in its entirety rather than removing §301.6103(j)(1)-1T(c). This document correctly adds the text of §301.6103(j)(1)-1T into the Code of Federal Regulations.

* * * * *

Accordingly, 26 CFR Part 301 is corrected by making the following correcting amendments:

Paragraph 1. The authority citation for part 301 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 301.6103(j)(1)-1T is added to read as follows:

(a) through (b)(3)(xxiv) [Reserved]. For further guidance, see §301.6103(j)(1)-1(a) through (b)(3)(xxiv).

(xxv) From Form 6765 (when filed with corporation income tax returns)— total qualified research expenses.

(c) and (d) [Reserved]. For further guidance, see §301.6103(j)(1)-1(c) and (d).

(e) Effective/applicability date. The amendment to paragraph (b)(3)(xxv) of this section is applicable to disclosures to the Bureau of the Census on or after December 31, 2007.

(f) Expiration date. The applicability of the amendment to paragraph (b)(3)(xxv) of this section expires on or before December 28, 2010.

The final regulations that are the subject of this document are under section 1502 of the Internal Revenue Code.

As published, final regulations (T.D. 9442) contains errors that may prove to be misleading and are in need of clarification.

Accordingly, the publication of the final regulations (T.D. 9442), which was the subject of FR Doc. E8-30718, is corrected as follows:

1. On page 79325, column 2, in the preamble, under the paragraph heading “A. Anti-Abuse Rules”, second paragraph of the column, first to fifth lines from the bottom of the paragraph, the language “from the deemed satisfaction and reissuance model, these final regulations also adopt more specific rules regarding such transfers (described in part C.3.a. of this Preamble).” is corrected to read “from the deemed satisfaction-reissuance model, these final regulations also adopt more specific rules regarding such transfers (described in part C.3.a. of this preamble).”.

2. On page 79325, column 3, in the preamble, under the paragraph heading “C. Exceptions and Related Provisions”, third paragraph of the column, first line from the bottom of the paragraph, the language “satisfaction-reissuance.” is corrected to read “satisfaction and reissuance.”.

3. On page 79327, column 1, in the preamble, under the paragraph heading “5. Exceptions to the Application of Section 108(e)(4)”, first paragraph of the column, fifth line from the bottom of the paragraph, the language “short term debt exceptions for both” is corrected to read “short-term debt exceptions for both”.

The correction notice that is the subject of this document is under section 409A of the Internal Revenue Code.

As published, the notice of proposed rulemaking (REG-148326-05) contains an error that may prove to be misleading and is in need of clarification.

Accordingly, the publication of the notice of proposed rulemaking (REG-148326-05), which was the subject of FR Doc. E8-28894, is corrected as follows:

On page 74380, column 3, in the preamble, under the caption “FOR FURTHER INFORMATION CONTACT:”, lines 1 and 2 from the bottom of the paragraph, the language “hearing, Funmi Taylor at (202) 622-7190 (not toll-free numbers).” is corrected to read “hearing, Funmi Taylor at (202) 622-3628 (not toll-free numbers).”.

The final regulations that are the subject of this document are under sections 6060, 6107, 6109, 6694, 6695, 6696, and 7701 of the Internal Revenue Code.

As published, final regulations (T.D. 9436) contains errors that may prove to be misleading and are in need of clarification.

* * * * *

Accordingly, 26 CFR parts 1, 20, 25, 26, 31, 40, 41, 44, 53, 54, 55, 56, 156, 157, and 301 are corrected by making the following correcting amendments:

Paragraph 1. The authority citation for part 1 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.6107-1 is amended by revising paragraphs (d) (1) and (2) to read as follows:

* * * * *

(d) * * *

(1) For the civil penalty for failure to furnish a copy of the return or claim for refund to the taxpayers (or nontaxable entity) as required under paragraph (a) of this section, see section 6695(a) and §1.6695-1(a).

(2) For the civil penalty for failure to retain a copy of the return or claim for refund, or to retain a record as required under paragraph (b) of this section, see section 6695(d) and §1.6695-1(d).

* * * * *

Par. 3. Section 1.6694-1 is amended as follows:

1. The first sentence of paragraph (b)(2) is revised.

2. The second sentence of paragraph (f)(4) Example 1. is revised.

3. The eighth sentence of paragraph (f)(4) Example 2. is revised.

* * * * *

(b) * * *

(2) * * * If there is a signing tax return preparer within the meaning of §301.7701-15(b)(1) of this chapter within a firm, the signing tax return preparer generally will be considered the person who is primarily responsible for all of the positions on the return or claim for refund giving rise to an understatement unless, based upon credible information from any source, it is concluded that the signing tax return preparer is not primarily responsible for the position(s) on the return or claim for refund giving rise to an understatement. * * *

* * * * *

(f) * * *

(4) * * *

Example 1. * * * Of this amount, $20,000 relates to research and consultation regarding a transaction that is later reported on a return, and $1,000 is for the activities relating to the preparation of the return. * * *

Example 2. * * * Because K’s signature as the signing tax return preparer is on the return, the IRS advises K that K may be subject to the section 6694(a) penalty. * * *

* * * * *

Par. 4. Section 1.6694-2 is amended by revising the last sentence of each paragraph (d)(1), (d)(2), and (d)(3)(ii) to read as follows:

* * * * *

(d) * * *

(1) * * * For an exception to the section 6694(a) penalty for reasonable cause and good faith, see paragraph (e) of this section.

(2) * * * For purposes of determining whether the tax return preparer has a reasonable basis for a position, a tax return preparer may rely in good faith without verification upon information furnished by the taxpayer and information and advice furnished by another advisor, another tax return preparer, or other party (including another advisor or tax return preparer at the tax return preparer’s firm), as provided in §§1.6694-1(e) and 1.6694-2(e)(5).

(3) * * *

(ii) * * * In addition, disclosure of a position is adequate in the case of a nonsigning tax return preparer if, with respect to that position, the tax return preparer complies with the provisions of paragraph (d)(3)(ii)(A) or (B) of this section, whichever is applicable.

* * * * *

Par. 5. Section 1.6694-3 is amended by revising the first two sentences of paragraph (c)(2) to read as follows:

* * * * *

(c) * * *

(2) A tax return preparer is not considered to have recklessly or intentionally disregarded a rule or regulation if the position contrary to the rule or regulation has a reasonable basis as defined in §1.6694-2(d)(2) and is adequately disclosed in accordance with §§1.6694-2(d)(3)(i)(A) or (C) or 1.6694-2(d)(3)(ii). In the case of a position contrary to a regulation, the position must represent a good faith challenge to the validity of the regulation and, when disclosed in accordance with §§1.6694-2(d)(3)(i)(A) or (C) or 1.6694-2(d)(3)(ii), the tax return preparer must identify the regulation being challenged. * * *

* * * * *

Par. 6. Section 1.6695-1 is amended by revising paragraph (a)(2)(ii) to read as follows:

(a) * * *

(2) * * *

(ii) In order faithfully to carry out their official duties, have so arranged their affairs that they have less than full knowledge of the property that they hold or of the debts for which they are responsible, if information is deleted from the copy in order to preserve or maintain this arrangement.

* * * * *

Par. 7. Section 1.6696-1 is amended by revising the introductory text of paragraph (g)(1)(i) to read as follows:

* * * * *

(g) Time for filing claim. (1)(i) Except as provided in section 6694(c)(1) and §1.6694-4(a)(4)(ii) and (5), and in section 6694(d) and §1.6694-1(d):

* * * * *

Par. 8. The authority citation for part 20 is amended by revising an entry for Section 20.6109-1 and removing an entry for Section 20.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 20.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 9. Section 20.6694-1 is amended by revising paragraph (a) to read as follows:

(a) In general. For general definitions regarding section 6694 penalties applicable to preparers of estate tax returns or claims for refund, see §1.6694-1 of this chapter.

* * * * *

Par. 10. The authority citation for part 25 is amended by revising an entry for Section 25.6109-1 and removing an entry for Section 25.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 25.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 11. Section 25.6694-1 is amended by revising paragraph (a) to read as follows:

(a) In general. For general definitions regarding section 6694 penalties applicable to preparers of gift tax returns or claims for refund, see §1.6694-1 of this chapter.

* * * * *

Par. 12. The authority citation for part 26 is amended by revising an entry for Section 26.6109-1 and removing an entry for Section 26.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 26.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 13. Section 26.6694-1 is amended by revising paragraph (a) to read as follows:

(a) In general. For general definitions regarding section 6694 penalties applicable to preparers of generation-skipping transfer tax returns or claims for refund, see §1.6694-1 of this chapter.

* * * * *

Par. 14. The authority citation for part 31 is amended by removing an entry for Section 31.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 15. Section 31.6694-1 is amended by revising paragraph (a) to read as follows:

(a) In general. For general definitions regarding section 6694 penalties applicable to preparers of employment tax returns or claims for refund of employment tax under chapters 21 through 25 of subtitle C of the Internal Revenue Code, see §1.6694-1 of this chapter.

* * * * *

Par. 16. Section 31.6694-3 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a tax return preparer of any return or claim for refund of employment tax under chapters 21 through 25 of subtitle C of the Internal Revenue Code (Code) shall be subject to penalties under section 6694(b) of the Code in the manner stated in §1.6694-3 of this chapter.

* * * * *

Par. 17. The authority citation for part 40 is amended by revising an entry for Section 40.6109-1 and removing an entry for Section 40.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 40.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 18. Section 40.6060-1 is amended by revising paragraph (a) to read as follows:

(a) In general. A person that employs one or more tax return preparers to prepare a return or claim for refund of any tax to which this part 40 applies other than for the person, at any time during a return period, shall satisfy the recordkeeping and inspection requirements in the manner stated in §1.6060-1 of this chapter.

* * * * *

Par. 19. Section 40.6107-1 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a signing tax return preparer of any return or claim for refund of any tax to which this part 40 applies shall furnish a completed copy of the return or claim for refund to the taxpayer and retain a completed copy or record in the manner stated in §1.6107-1 of this chapter.

* * * * *

Par. 20. Section 40.6109-1 is amended by revising paragraph (a) to read as follows:

(a) In general. Each return or claim for refund of any tax to which this part 40 applies prepared by one or more signing tax return preparers must include the identifying number of the preparer required by §1.6695-1(b) of this chapter to sign the return or claim for refund in the manner stated in §1.6109-2 of this chapter.

* * * * *

Par. 21. Section 40.6694-1 is amended by revising paragraph (a) to read as follows:

(a) In general. For general definitions regarding section 6694 penalties applicable to preparers of returns or claims for refund of any tax to which this part 40 applies, see §1.6694-1 of this chapter.

* * * * *

Par. 22. Section 40.6694-2 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a tax return preparer of any return or claim for refund of any tax to which this part 40 applies shall be subject to penalties under section 6694(a) in the manner stated in §1.6694-2 of this chapter.

* * * * *

Par. 23. Section 40.6694-3 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a tax return preparer of any return or claim for refund of any tax to which this part 40 applies shall be subject to penalties under section 6694(b) in the manner stated in §1.6694-3 of this chapter.

* * * * *

Par. 24. Section 40.6694-4 is amended by revising paragraph (a) to read as follows:

(a) In general. For rules relating to the extension of period of collection when a tax return preparer who prepared a return or claim for refund of any tax to which this part 40 applies pays 15 percent of a penalty for understatement of taxpayer’s liability and procedural matters relating to the investigation, assessment and collection of the penalties under section 6694(a) and (b), the rules under §1.6694-4 of this chapter will apply.

* * * * *

Par. 25. Section 40.6695-1 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a tax return preparer of any return or claim for refund of any tax to which this part 40 applies shall be subject to penalties for failure to furnish a copy to the taxpayer under section 6695(a) of the Internal Revenue Code (Code), failure to sign the return under section 6695(b) of the Code, failure to furnish an identification number under section 6695(c) of the Code, failure to retain a copy or list under section 6695(d) of the Code, failure to file a correct information return under section 6695(e) of the Code, and negotiation of a check under section 6695(f) of the Code, in the manner stated in §6695-1 of this chapter.

* * * * *

Par. 26. Section 40.6696-1 is amended by revising paragraph (a) to read as follows:

(a) In general. The rules under §1.6696-1 of this chapter will apply for claims for credit or refund by a tax return preparer who prepared a return or claim for refund of any tax to which this part 40 applies.

* * * * *

Par. 27. The authority citation for part 41 is amended by removing an entry for Section 41.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 28. Section 41.6695-1 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a tax return preparer of any return or claim for refund of excise tax under section 4481 of the Internal Revenue Code (Code) shall be subject to penalties for failure to furnish a copy to the taxpayer under section 6695(a) of the Code, failure to sign a return under section 6695(b) of the Code, failure to furnish an identification number under section 6695(c) of the Code, failure to retain a copy or list under section 6695(d) of the Code, failure to file a correct information return under section 6695(e) of the Code, and negotiation of a check under section 6695(f) of the Code, in the manner stated in §6695-1 of this chapter.

* * * * *

Par. 29. The authority citation for part 44 is amended by revising an entry for Section 44.6109-1 and removing an entry for Section 44.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 44.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 30. Section 44.6695-1 is amended by revising paragraph (a) to read as follows:

(a) In general. A person who is a tax return preparer of any return or claim for refund of tax on wagers under sections 4401 or 4411 of the Internal Revenue Code (Code) shall be subject to penalties for failure to furnish a copy to the taxpayer under section 6695(a) of the Code, failure to sign the return under section 6695(b) of the Code, failure to furnish an identification number under section 6695(c) of the Code, failure to retain a copy or list under section 6695(d) of the Code, failure to file a correct information return under section 6695(e) of the Code, and negotiation of a check under section 6695(f) of the Code, in the manner stated in §6695-1 of this chapter.

* * * * *

Par. 31. The authority citation for part 53 is amended by revising an entry for Section 53.6109-1 and removing an entry for Section 53.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 53.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 32. The authority citation for part 54 is amended by revising an entry for Section 54.6109-1 and removing an entry for Section 54.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 54.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 33. In FR Doc. E8-29750 appearing on page 78430 in the Federal Register of Monday, December 22, 2008, the following correction is made:

On page 78458, in the third column, in paragraph 107, the instruction “Section 56.6694-3 is added to read as follows:” is removed and the language “Section 54.6694-3 is added to read as follows:” is added in its place.

Par. 34. The authority citation for part 55 is amended by revising an entry for Section 55.6109-1 and removing an entry for Section 55.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 55.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 35. The authority citation for part 56 is amended by revising an entry for Section 56.6109-1 and removing an entry for Section 56.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 56.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 36. The authority citation for part 156 is amended by revising an entry for Section 156.6109-1 and removing an entry for Section 156.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 156.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 37. The authority citation for part 157 is amended by revising an entry for Section 157.6109-1 and removing an entry for Section 157.6695-2 in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 157.6109-1 also issued under 26 U.S.C. 6109(a). * * *

Par. 38. The authority citation for part 301 continues to read in part as follows:

Authority: 26 U.S.C. 7805 * * *

Par. 39. Section 301.7701-15 is amended by revising paragraph (f)(1)(xi)(B) to read as follows:

* * * * *

(f) * * *

(1) * * *

(xi) * * *

(B) A waiver of restriction on assessment after initiation of an audit of the taxpayer or another taxpayer if a determination in the audit of the other taxpayer affects, directly or indirectly, the liability of the taxpayer for tax.

* * * * *