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mary.chang@phoenix.gov
If the new Proposed Treasury Regulation 1.125-2 applies to plan years beginning on or after January 1, 2009 and the prior Proposed Treasury Regulation 1.125-2 was withdrawn, what rules apply to the plan year beginning on or after January 1, 2008? Can I rely on the new Proposed Treasury Regulation?
J Simmons
Yes, "Taxpayers may rely on [the proposed] regulations for guidance pending the issuance of final regulations." Federal Register Vol 72 No. 150 (Aug 6, 2007) p. 43944, under the italicized heading Proposed Effective Date.
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