Replacing Livestock Sold Due to Drought: Because of the intense, prolonged drought in parts of the U.S., the IRS will provide additional time to replace livestock that was sold as a result of the drought. For example, the four-year replacement period scheduled to end on 12/31/06 is extended for one more year if, for any weekly period included in the 12-month period ending on 8/31/06, severe, extreme, or exceptional drought conditions (which forced the taxpayer's sale of the livestock) were reported in the taxpayer's county or in a neighboring county. The replacement period may be further extended if the drought conditions persist after 8/31/06. To help taxpayers determine whether the replacement period has been extended, the IRS will publish a list of counties that experienced exceptional, extreme, or severe drought for the 12-month period ending on 8/31/06. Notice 2006-82, 2006-39 IRB . Drought Monitor