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