SPECIAL ANNOUNCEMENT

Announcement 2006-22 Announcement 2006-22

This document contains the annual report to the public concerning Advance Pricing Agreements (APAs) and the experience of the APA program during calendar year 2005. This document does not provide guidance regarding the application of the arm’s length standard. Instead, it reports on the structure and activities of the APA program.

INCOME TAX

Notice 2006-38 Notice 2006-38

This notice provides relief for persons who have rehabilitation credit property in areas affected by Hurricanes Katrina, Rita, or Wilma. First, the notice provides a safe harbor period of three years for repair of rehabilitation credit property placed in service prior to the hurricanes and damaged by the hurricanes during which time the property is not subject to rehabilitation credit recapture under Code section 50(a)(1) provided that repairs to the property are actively ongoing. Second, for property on which the rehabilitation had begun but has not yet been placed in service on the date that the President declared a major disaster in the area in which the property is located, the running of the 24-month or 60-month period is tolled for a period of 12 months.

EMPLOYEE PLANS

T.D. 9256 T.D. 9256

Final regulations under section 417 of the Code concern content requirements applicable to explanations of qualified joint and survivor annuities and qualified preretirement survivor annuities payable under certain retirement plans.

EXEMPT ORGANIZATIONS

Announcement 2006-24 Announcement 2006-24

Consumer Guidance Corp., of Sun Valley, CA, and Next Step Foundation, Inc., of Little Rock, AR, no longer qualify as organizations to which contributions are deductible under section 170 of the Code.