This notice supplements Notice 2005-66, 2005-40 I.R.B. 620, which postponed until January 3, 2006, deadlines for the IRS to perform certain acts under section 7508A of the Code with respect to certain taxpayers affected by Hurricane Katrina. This notice (1) expands the definition of “covered disaster area” to include additional counties and parishes that the Federal Emergency Management Agency (FEMA) determined were eligible for federal assistance after the IRS issued Notice 2005-66; (2) extends the deadlines for the IRS to perform certain acts to February 28, 2006, to match the deadlines for affected taxpayers to file, pay, and perform certain acts; (3) expands the definition of affected taxpayer to match the definition of affected taxpayers in Notice 2005-73, 2005-42 I.R.B. 723; and (4) grants the IRS a postponement of time to perform an act not previously identified in Notice 2005-66 - issuing a Notice of Final Partnership Administrative Adjustment (FPAA) under section 6223. Notice 2005-66 supplemented.

In Notice 2005-82, the IRS under section 7508A of the Code extends the period for the government to take certain actions until February 28, 2005, with respect to certain taxpayers affected by Hurricane Rita. In response to Hurricane Rita, in News Release IR-2005-110 of September 26, 2005, the IRS granted relief for taxpayers affected by Hurricane Rita. News Release IR-2005-110 provided that all counties and parishes in Texas and Louisiana constitute a “covered disaster area” within the meaning of regulations section 301.7508A-1(d)(2). Further, News Release IR-2005-110 provided that taxpayers affected by the disaster will have until February 28, 2006, to file tax returns and submit payments, including, but not limited to, the October 17, 2005, deadline for individuals who received a second extension for filing their individual income tax returns. In addition, News Release IR-2005-110 provided affected taxpayers until February 28, 2006, to perform the acts listed in section 301.7508A-1(c)(1) and Rev. Proc. 2005-27, 2005-20 I.R.B. 1050.

Cost-of-living adjustments for 2006. This procedure sets forth the cost-of-living adjustments to certain items for 2006 as required under various provisions of the Code.

This procedure modifies Rev. Proc. 2004-59, 2004-2 C.B. 678, to extend the sunset date for participation in the Voluntary Compliance Program from December 31, 2005, to March 31, 2006, and provides that no extensions will be granted beyond June 30, 2006. Rev. Proc. 2004-59 modified.