changes

Description of Major Changes for 2008 Form 8883
Asset Allocation Statement Under Section 338
1. All years have been updated as appropriate.
2. We deleted the question on line 8d relating to section 936 in the definition of a
target affiliate (and renumbered the subsequent lines), as the possessions tax credit has
expired. The credit originally expired December 31, 2005 (IRC 936(j)(8),
but was replaced by the American Samoa economic development for certain
existing credit claimants for tax years beginning after December 31, 2005 and
before January 1, 2008. (section 119(d) of PL 109-432).
Note. The American Samoa economic development crdit was extended
through December 31, 2009 (PL 110-343, Div C, sec.309). However, this will be
referenced in the instructions only since only a minimal number of taxpayers
are affected.

Description of Major Changes for 2008 Instructions
for Form 8883, Asset Allocation Statement Under Section 338
1. All years and dates have been updated as appropriate.
2. We’ve added a “What’s New” section referring taxpayers to final Regulations
sections 1.338-1(B)(2)(vii) and 1.388-11. These regulations provide details on
the effect of section 338 election on insurance company targets.
3. Under definitions, we added a definition of target affiliate for purposes of
the questions for line 8 of Part IV of the form.