Internal Revenue Bulletin 2012-18 (PDF rendition): IRS Notices

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Bulletin No. 201
2-18
April 30, 2012
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
SPECIAL ANNOUNCEMENT
Announcement 2012–16, page 876.
This announcement confirms that the Service will continue to
process requests for the refund of the wrongfully collected Tele-
phone Excise Taxes described in Notice 2006–50 and Notice
2007–11 and also announces the July 27, 2012 filing deadline
for such requests.
INCOME TAX
T.D. 9582, page 868.
Final regulations under section 642 of the Code contains infor-
mation regarding the Federal tax consequences of an ordering
provision in a trust, a will, or a provision of local law that at-
tempts to determine the tax character of the amount paid to a
charitable beneficiary of the trust or estate.
T.D. 9583, page 866.
Final regulations under section 267 of the Code provide
guidance concerning the time for taking into account deferred
losses on the sale or exchange of property between members
of a controlled group.
Notice 2012–30, page 874.
Nonconventional source fuel credit, 2011 section 45K
inflation adjustment factor and section 45K reference
price.This proposed notice publishes the nonconventional
fuel source credit, inflation adjustment factor, and reference
price under section 45K of the Code for calendar year 2011.
The inflation adjustment factor is used to determine the credit
allowable on sales of fuel produced from a nonconventional
source under section 45K. For calendar year 2011, the credit
is available only for coke or coke gas (other than from petro-
leum based products). The calendar year 2011 nonconven-
tional fuel source credit and inflation adjustment factor apply
to the sales of barrel-of-oil equivalent of qualified fuels sold by
the taxpayer to an unrelated person during the 2011 calendar
year, the domestic production of which is attributable to the
taxpayer.
Announcement 2012–17, page 876.
This announcement contains corrections to Rev. Proc.
2011–62, 2011–52 I.R.B. 1032, which clarify the dimensions
for Exhibit B for calendar year 2011. Rev. Proc. 2011–62
corrected.
EMPLOYEE PLANS
Notice 2012–29, page 872.
This notice announces that the IRS and the Treasury Depart-
ment anticipate issuing guidance relating to the applicability of
the normal retirement age rules to governmental plans. The
notice describes the guidance under consideration, which -- (a)
would clarify that governmental plans that do not provide for
in-service distributions before age 62 do not need to have a
definition of normal retirement age and (b) would modify the
age-50 safe harbor rule for qualified public safety employees.
The notice also announces that the IRS and Treasury Depart-
ment intend to extend the effective date of the regulations re-
lating to distributions from a pension plan upon attainment of
normal retirement age for governmental plans. The notice in-
cludes a request for public comments. Notices 2008–98 and
2009–86 modified.
(Continued on the next page)
Fi
nding Lists begin on page ii.
Index for January through April begins on page v.

EXEMPT ORGANIZATIONS
Announcement 2012–20, page 876.
The IRS has revoked its determination that A Family Budget
Counseling, Inc., of HuntingtonCity, NY; Angels Enterprise,
Inc., of Buchanan, MI; Fisher Institute of Irving, TX; and Gray-
stone University Housing Corporation of Malvern, PA, qualify as
organizations described in sections 501(c)(3) and 170(c)(2) of
the Code.
ESTATE TAX
T.D. 9582, page 868.
Final regulations under section 642 of the Code contains infor-
mation regarding the Federal tax consequences of an ordering
provision in a trust, a will, or a provision of local law that at-
tempts to determine the tax character of the amount paid to a
charitable beneficiary of the trust or estate.
GIFT TAX
T.D. 9582, page 868.
Final regulations under section 642 of the Code contains infor-
mation regarding the Federal tax consequences of an ordering
provision in a trust, a will, or a provision of local law that at-
tempts to determine the tax character of the amount paid to a
charitable beneficiary of the trust or estate.
ADMINISTRATIVE
Announcement 2012–16, page 876.
This announcement confirms that the Service will continue to
process requests for the refund of the wrongfully collected Tele-
phone Excise Taxes described in Notice 2006–50 and Notice
2007–11 and also announces the July 27, 2012 filing deadline
for such requests.
Announcement 2012–17, page 876.
This announcement contains corrections to Rev. Proc.
2011–62, 2011–52 I.R.B. 1032, which clarify the dimensions
for Exhibit B for calendar year 2011. Rev. Proc. 2011–62
corrected.
April 30, 20122012–18 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2012–18 I.R.B.April 30, 2012

April 30, 20122012–18 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 267.—
Losses,
Expenses, and Interest With
Respect to Transactions
Between Re
lated Taxpayers
26 CFR 1.267(f)–1: Controlled groups.
T.D. 9583
DEPARTMEN
TOFTHE
TREASURY
Internal
Revenue Service
26 CFR Pa
rt 1
Guidance Under Section
267(f); Deferral of Loss
on Transactions between
Members of a Controlled
Group
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION
: Final regulations.
SUMMARY: This document contains fi-
nal regulations concerning the deferral of
losses on the sale or exchange of property
between members of a controlled group
and provides guidance as to the time for
taking into account those losses. These
regulations affect corporations that are
members of a controlled group.
DATES:Effective Date:These regulations
are effective on April 16, 2012.
FOR F
URTHER INFORMATION
CONT
ACT: Amie Colwell Breslow (202)
622–
7530 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Sect
ion 267(a)(1) provides that no de-
duct
ionshallbeallowedforanylosson
the s
ale or exchange of property between
cer
tain related persons. Section 267(f)(2)
con
tains an exception for a loss on the sale
or e
xchange of property between members
of a
controlled group. For this purpose,
“co
ntrolled group” has the meaning given
to s
uch term in section 1563(a) except that
“m
ore than 50 percent” is substituted for
“at least 80 pe
rcent” each place it appears.
In the case of a
sale or exchange of loss
property betw
een members of a controlled
group, the lo
ss is deferred rather than dis-
allowed. Und
er section 267(f)(2)(B), the
loss is defer
red until the property is trans-
ferred outsi
de of the controlled group and
there would
be recognition of loss under
consolidat
ed return principles or until such
other time a
s may be prescribed in regula-
tions.
The regulat
ions under section 267(f)
provide tha
t the timing principles for in-
tercompan
y sales or exchanges between
members of
a consolidated group (see
generally
§1.1502–13(c)(2)) apply to sales
or exchang
es of property at a loss be-
tween memb
ers of a controlled group. See
§1.267(f
)–1(a)(2). The attribute redeter-
mination
rules applicable to transactions
between m
embers of a consolidated group
(see §1.1
502–13(c)(1)), however, do not
applytos
ales or exchanges between mem-
bers of a
controlled group.
Although
the attribute redetermina-
tion rul
e generally does not apply to
sales or
exchanges between members of
a contro
lled group, §1.267(f)–1(c)(1)(iv)
contain
s a special rule with respect to
losses
that would have been redeter-
mined t
o be a noncapital, nondeductible
amount
if the consolidated return attribute
redete
rmination rule did apply. Under
§1.267
(f)–1(c)(1)(iv), if an intercompany
loss b
etween members of a consolidated
group
would have been redetermined to
beano
ncapital, nondeductible amount as
aresu
lt of the attribute redetermination
rule a
pplicable to consolidated groups, but
is no
t redetermined because the sale or
exch
ange occurred between members of
acon
trolled group (to which the attribute
rede
termination rule does not apply), then
the l
oss will be deferred. The loss is taken
into
account when the selling member (S)
and
buying member (B) are no longer in a
con
trolled group relationship.
On A
pril 21, 2011, the IRS and Trea-
sur
y Department published a notice of
pro
posed rulemaking (REG–118761–09,
201
1–21 I.R.B. 803) in theFederal Reg-
ist
er(76 FR 22336). The notice included
pr
oposed regulations under section 267(f)
pr
oviding guidance concerning the Federal
income tax tre
atment of deferred losses on
thesaleorexc
hange of property between
members of a co
ntrolled group, including
transaction
s in which the member acquir-
ing the prope
rty subsequently recognizes
a correspond
ing gain with respect to the
property. Th
e proposed regulations pro-
vided that c
ertain losses on the sale or
exchange of
property between members
of a control
led group, which have been
deferred, a
re taken into account upon the
occurrence
of either of two events. The
deferred l
oss is taken into account to the
extent of a
ny corresponding gain that the
member acq
uiring the property recognizes
with respe
ct to the property. Alternatively,
the defer
red loss is taken into account
when the p
arties to the transaction cease
to be in a c
ontrolled group relationship.
The propo
sed regulations also provided
that for p
urposes of determining whether
the loss
is redetermined to be a noncapital,
nondedu
ctible amount under the princi-
ples of §
1.1502–13, stock held by S, stock
held by B
, and stock held by all members
of the c
onsolidated group that includes S,
as well
asstockheldbyanymemberofa
contro
lled group of which S is a member
that wa
s acquired from a member of S’s
consol
idated group, must be taken into ac-
count.
A public hearing was requested and
held o
n August 3, 2011. The IRS received
one fo
rmal comment in response to the
notic
e of proposed rulemaking. The com-
ment r
aised several questions with certain
recom
mendations, which are discussed in
the f
ollowing paragraphs of this preamble.
The c
ommentator suggested that the fi-
nal r
egulations incorporate a model that al-
lows
a loss to be taken into account based
on th
e arm’s length principles contained in
sect
ion 482 and the regulations thereun-
der.
Specifically, the commentator noted
tha
t if the transaction is arm’s length in na-
tur
e and has substance from a business per-
spe
ctive, the loss should be taken into ac-
cou
nt immediately. The IRS and Treasury
Dep
artment do not agree with this com-
men
t. In a transaction described in these
re
gulations, it is assumed that the parties
ar
e acting at arm’s length. Section 267(f)
se
rves a different purpose, namely, to de-
te
rmine the timing of when a loss should be
ta
ken into account on a sale or exchange of
2012–18 I.R.B.866April 30, 2012

property between members of a controlled
group. Accordingly, the final regulations
retain the model contained in the proposed
regulations.
The commentator also suggested that
the proposed regulations do not clearly
state how to establish whether a recog-
nized loss is redetermined to be a non-
capital, nondeductible amount under the
principles of §1.1502–13. Specifically,
the commentator noted that it is unclear
whether the proposed regulations, as writ-
ten, are intended to direct taxpayers to a
§1.1502–34 type of analysis in determin-
ing whether the loss is redetermined to be a
noncapital, nondeductible amount. Under
therule,stockheldbyS,stockheldbyB,
and stock held by all members of the con-
solidated group that includes S, as well as
stockheldbyanymemberofacontrolled
group of which S is a member that was ac-
quired from a member of S’s consolidated
group must be taken into account. After
considering the comment, the IRS and
Treasury Department believe that the rules
in the proposed regulations, as written, are
clear in that they expressly list the corpo-
rations the stock holdings of which must
be taken into account. Furthermore, the
IRS and Treasury Department believe that
the proposed regulation is appropriately
broader than the stock aggregation rule of
§1.1502–34 to account for, among other
considerations, the fact that the controlled
group definition is broader than the defi-
nition of a consolidated group.
In addition, the commentator ques-
tioned whether the proposed regulations
were consistent with the holdings inGran-
ite Trust v. United States, 238 F.2d 670 (1st
Cir. 1956), and otherapplicable case law.
The IRS and Treasury Department believe
that the rules contained in the proposed
regulations and these final regulations are
consistent with applicable case law. These
rules are intended to address the timing
for taking into account a loss on a sale of
property between members of a controlled
group, and do not relate to whether a liqui-
dation otherwise results in the recognition
of a loss.
Explanation of Provisions
These final regulations retain the rules
of the proposed regulations, but make one
revision to clarify the interaction of section
267(f) and §1.1502–13 principles. The fi-
nal regulations also make one modifica-
tion to ensure that taxpayers cannot cir-
cumvent the purposes of the proposed reg-
ulation through issuances of target corpo-
ration stock to controlled group members.
The proposed regulations provided that
a deferred loss is taken into account to the
extent of any corresponding gain that the
member acquiring the property recognizes
with respect to the property. For exam-
ple, assume S sells 30 percent of T’s stock
to B (a member of S’s controlled group)
at a loss (in a transaction that is treated
as a sale or exchange for Federal income
tax purposes). If T’s stock appreciates af-
ter the sale and before a subsequent event
that results in B’s recognition of gain, the
proposed regulations provided that S’s de-
ferred loss may be taken into account to the
extent that B recognizes a corresponding
gain.
Questions have been raised concern-
ing whether this rule is necessary because
the relevant consolidated return provisions
currently allow the loss to be taken into
account to the extent of the correspond-
ing gain. The IRS and Treasury Depart-
ment agree that an explicit rule is unnec-
essary because the timing of taking the
loss into account in these circumstances is
provided for under §1.1502–13. Accord-
ingly, the rule in the proposed regulations
has been removed from the final regula-
tions and an example has been added to
§1.267(f)–1(j) to illustrate the interaction
of these final regulations and the consoli-
dated return regulations.
In addition to this clarification, these
final regulations provide that stock issued
to a member of the controlled group by a
target corporation is taken into account for
purposes of determining whether a loss
would be treated as noncapital, nonde-
ductible amount if the rules of §1.1502–13
applied. For example, assume FP is a for-
eign corporation that owns all the stock of
FS, a foreign subsidiary, and all the stock
of P, a domestic corporation. P owns all
the stock of T. In Year 1, FS contributes
cash to T in exchange for newly issued
stock of T that constitutes 40 percent of
T’s outstanding stock. In Year 2, when the
value of the T stock owned by P is less
than its basis in P’s hands, P sells all of its
T stock to FP. In Year 3, in a transaction
unrelated to the issuance of the T stock
in Year 1, T converts under state law to
a limited liability company that is treated
as a partnership for Federal income tax
purposes.
Under these final regulations, the T
stockissuedbyTtoFSistakenintoac-
count for purposes of determining whether,
upon the conversion of T, P’s deferred loss
would be treated under the principles of
§1.1502–13 as a noncapital, nondeductible
amount.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant reg-
ulatory action as defined in Executive
Order 12866, as supplemented by Ex-
ecutive Order 13563. Therefore, a reg-
ulatory assessment is not required. It
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. chapter 5) does not apply to
this regulation. Pursuant to the Regulatory
Flexibility Act (5 U.S.C. chapter 6), it
is hereby certified that this rule will not
have a significant economic impact on a
substantial number of small entities. This
certification is based on the fact that these
regulations primarily affect controlled
groups of corporations which tend to be
larger businesses. Pursuant to section
7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking preceding
this regulation was submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on their impact on small business. No
comments were received.
Drafting Information
The principal author of this regula-
tion is Amie Colwell Breslow, Office
of Associate Chief Counsel (Corporate).
However, other personnel from the IRS
and Treasury Department participated in
its development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805. * * *
April 30, 20128672012–18 I.R.B.

Section 1.267(f)–1 is also issued under
26 U.S.C. 267.
Par. 2. Section 1.267(f)–1 is amended
as follows:
1. Paragraph (c)(1)(iv) is revised.
2. AddingExample 9to paragraph (j).
3. AddingExample 10to paragraph (j).
4. Paragraph (l)(3) is redesignated as
paragraph (l)(4) and a new paragraph (l)(3)
is added.
The additions and revision read as fol-
lows:
§1.267(f)–1 Controlled Groups.
*****
(c) * * *
(1) * * *
(iv)B’sitemisexcludedfromgrossin-
come or noncapital and nondeductible.To
the extent S’s loss would be redetermined
to be a noncapital, nondeductible amount
under the principles of §1.1502–13, but is
not redetermined under paragraph (c)(2) of
this section (which generally renders the
attribute redetermination rule inapplicable
to sales between members of a controlled
group), S’s loss continues to be deferred.
For purposes of this paragraph, stock held
byS,stockheldbyB,stockheldbyall
members of S’s consolidated group, stock
held by any member of a controlled group
of which S is a member that was acquired
from a member of S’s consolidated group,
and stock issued by T to a member of
the controlled group must be taken into
account in determining whether a loss
would be redetermined to be a noncapital,
nondeductible amount under the principles
of §1.1502–13. If the loss remains
deferred, it is taken into account when S
and B (including their successors) are no
longer in a controlled group relationship.
(If, however, the property is transferred
to certain related persons, paragraph
(c)(1)(iii) of this section will cause the
loss to be permanently disallowed.) For
example, if S sells all of the T stock to B
at a loss (in a transaction that is treated as
a sale or exchange for Federal income tax
purposes), and T subsequently liquidates
in an unrelated transaction that qualifies
under section 332, S’s loss is deferred until
S and B are no longer in a controlled group
relationship. Similarly, if S owns all of the
T stock and sells 30 percent of T’s stock to
B at a loss (in a transaction that is treated as
a sale or exchange for Federal income tax
purposes), and T subsequently liquidates,
S’s loss on the sale is deferred until S
and B (including their successors) are no
longer in a controlled group relationship.
*****
(j) * * *
Example 9. Sale of stock by consolidated group
member to controlled group member. (a) Facts.P1,
a domestic corporation, owns 75% of the outstand-
ing stock of P, the common parent of a consolidated
group. P owns all of the outstanding stock of sub-
sidiaries M and S, which are members of P’s consoli-
dated group. M and S each own 50% of the only class
of stock of L, a nonmember life insurance company.
OnJanuary1ofYear1,Ssells25%ofL’sstockto
P1 for $50 cash. At the time of the sale, S’s aggregate
basis in the L shares transferred to P1 was $80, and S
recognizes a $30 loss. On February 18 of Year 3, at
a time when the L shares held by P1 are worth $60,
L liquidates. As a result of the liquidation, P1 recog-
nizes a $10 gain.
(b)Timing. Under paragraph (a)(2) of this sec-
tion, S’s loss on the sale of the L stock to P1 is de-
ferred. Under paragraph (c)(1)(iv) of this section,
upon the liquidation of L, to the extent S’s loss would
be redetermined to be a noncapital, nondeductible
amount under the principles of §1.1502–13, S’s loss
continues to be deferred. Under the principles of
§1.1502–13, S’s loss is not redetermined to be a non-
capital, nondeductible amount to the extent of P1’s
$10 of gain recognized. Accordingly, S takes into ac-
count $10 of loss as a result of the liquidation. In
determining whether the remainder of S’s $20 loss
would be redetermined to be a noncapital, nonde-
ductible amount, under paragraph (c)(1)(iv) of this
section,stockheldbyP1,stockheldbyM,andstock
held by S is taken into account. Accordingly, un-
der the principles of §1.1502–13, the liquidation of
L would be treated as a liquidation qualifying un-
der section 332, and the remainder of S’s loss would
be redetermined to be a noncapital, nondeductible
amount. Thus, under paragraph (c)(1)(iv), S’s re-
maining $20 loss continues to be deferred until S and
P1 are no longer in a controlled group relationship.
Example 10. Issuance of stock to controlled group
member. (a) Facts.FP is a foreign corporation that
owns all the stock of FS, a foreign corporation, and
all the stock of P, a domestic corporation. P owns all
of the single class of outstanding common stock of T.
In Year 1, FS contributes cash to T in exchange for
newly issued stock of T that constitutes 40 percent of
T’s outstanding stock. In Year 2, when the value of
the T stock owned by P is less than its basis in P’s
hands, P sells all of its T stock to FP. In Year 3, in a
transaction unrelated to the issuance of the T stock in
Year 1, T converts under state law to a limited liability
company that is treated asa partnership for Federal
income tax purposes.
(b) Timing.Under paragraph (a)(2) of this sec-
tion, P’s loss on the sale of its T stock is deferred.
Under paragraph (c)(1)(iv) of this section, upon the
conversion of T, to the extent P’s loss would be re-
determined to be a noncapital, nondeductible amount
under the principles of §1.1502–13, P’s loss contin-
ues to be deferred. In determining whether the loss
would be redetermined to be a noncapital, nonde-
ductible amount, stock held by FS (which was ac-
quired from T) and stock held by FP (the buyer of
the T stock from P and a member of P’s controlled
group) is taken into account. Accordingly, under the
principles of §1.1502–13 the deemed liquidation of T
resulting from the conversion of T would be treated
as a liquidation qualifying under section 332, and P’s
loss would be redetermined to be a noncapital, nond-
eductible amount. Thus, under paragraph (c)(1)(iv),
P’s loss continues to be deferred until P and FP are no
longer in a controlled group relationship.
*****
(l) * * *
*****
(3)Effective/applicability date.Para-
graph (c)(1)(iv) of this section applies to
a loss that continues to be deferred pur-
suant to that paragraph if the event that
would cause the loss to be redetermined as
a noncapital nondeductible amount under
the principles of §1.1502–13 occurs on or
after April 16, 2012.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved April 9, 2012.
Emily S. McMahon,
Acting Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by t
he Office of the Federal Register on April 13, 2012,
8:45 a.m., and published in the issue of the Federal Register
for April 16, 2012, 76 F.R. 22480)
Section 642.—Special
Rules for Credits and
Deductions
26 CFR 1.642(c)–3: Adjustments and other special
rules for determining unlimited charitable contribu-
tions deductions.
T.D. 9582
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Guidance Under Sections 642
and643(IncomeOrdering
Rules)
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final Regulations.
2012–18 I.R.B.868April 30, 2012

SUMMARY: This document contains final
regulations under Internal Revenue Code
(Code) section 642(c) with regard to the
Federal tax consequences of an ordering
provision in a trust, a will, or a provi-
sion of local law that attempts to determine
the tax character of the amounts paid to a
charitable beneficiary of the trust or estate.
The final regulations also make conform-
ing amendments to the regulations under
section 643(a)(5). The final regulations af-
fect estates, charitable lead trusts (CLTs),
and other trusts making payments or per-
manently setting aside amounts for a char-
itable purpose.
DATES:Effective Date:These regulations
are effective on April 16, 2012.
FOR FURTHER INFORMATION
CONTACT: Melissa Liquerman, at (202)
622–3060 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background and Explanation of
Provisions
On June 18, 2008, proposed regulations
(REG–101258–08, 2008–2 C.B. 111) were
published in theFederal Register[73 FR
34670]. The proposed regulations contain
proposed amendments to the Income Tax
Regulations 26 CFR part 1, confirming
that a provision in a trust, a will, or a pro-
vision of local law that specifically indi-
cates the source out of which amounts are
to be paid, permanently set aside, or used
for a purpose specified in section 642(c)
must have economic effect independent of
income tax consequences in order to be re-
spected for Federal tax purposes. If such
provision does not have economic effect
independent of income tax consequences,
income distributed for a purpose specified
in section 642(c) will consist of the same
proportion of each class of the items of in-
come as the total of each class bears to the
total of all classes. The proposed regula-
tions also make conforming changes in the
corresponding language in the Income Tax
Regulations under section 643(a)(5). The
trusts and estates that are the subject of the
proposed regulations include, without lim-
itation, charitable lead trusts (CLTs) and
trusts and estates making payments or per-
manently setting aside amounts for a char-
itable purpose.
The proposed regulations are based on
the structure and provisions of Subchapter
J (of Chapter 1, Subtitle A, of the Code)
as a whole, as well as on an analysis of
the existing regulations with their inter-
related cross-references. The IRS and
Treasury Department believe that the cur-
rent regulations under §§1.642(c)–3(b)
and 1.643(a)–5(b) require that a specific
provision of the governing instrument or
a provision under local law have eco-
nomic effect independent of income tax
consequences in order to be respected for
Federal income tax purposes. To make
this clearer, the proposed regulations add
the principle of economic effect directly to
the regulations under sections 642(c) and
643(a), rather than leaving this principle
to be reached by cross-reference to other
regulations.
Finally, the proposed regulations re-
move §1.642(c)–3(b)(4) because the pro-
visions of section 116 referenced therein
were repealed by the Tax Reform Act of
1986 (Public Law 99–514).
Written comments were received on the
proposed regulations. Because there were
no requests to speak at the scheduled pub-
lic hearing, the public hearing was can-
celled. The proposed regulations, with cer-
tain changes made in response to the writ-
ten comments received, are adopted as fi-
nal regulations.
Summary of Comments and
Explanation of Provisions
Specific Provisions Must Have Economic
Effect Independent of Income Tax
Consequences
Commentators suggested that the clar-
ification in the proposed regulations, that
a specific provision in a governing instru-
ment or in local law that identifies the
source(s) of the amounts to be paid, perma-
nently set aside, or used for a purpose spec-
ified in section 642(c) must have economic
effect independent of income tax conse-
quences in order for the specific provision
in the governing instrument or in local law
to be respected for Federal tax purposes, is
an interpretation contrary to the clear lan-
guage of section 642(c) and 643(a)(5) and
the existing regulations.
The IRS and Treasury Department have
carefully considered these arguments and
the analyses suggested by the commenta-
tors. The IRS and Treasury Department
continue to believe that the position clar-
ified in the proposed regulations, requir-
ing that a specific provision of the gov-
erning instrument or a provision under lo-
cal law have economic effect independent
of income tax consequences in order to be
respected for Federal tax purposes, is the
proper interpretation of the relevant Code
provisions and is a principle that applies
throughout Subchapter J.
The general rule provided in Subchap-
ter J, which mandates that the tax character
of distributions to beneficiaries consists of
apro rataportion of all types of a trust’s
income, appears in section 652(b) and
in several different sections of the regu-
lations under the subchapter. The only
regulatory exception to thispro ratarule
is for a specific provision in a governing
instrument or a provision under local law
that provides as to the tax character of
distributions to beneficiaries. This excep-
tion to thepro ratarule must have the
same meaning throughout the Subchap-
ter J regulations. The chain of regula-
tory references from §§1.642(c)–3(b) and
1.643(a)–5(b), detailed in the preamble
to the proposed regulations, incorporates
into each of those provisions, by cross-ref-
erence to §1.662(b)–2, “the principles
contained” in §1.652(b)–1 and, in turn,
§1.652(b)–2(a) and –2(b), which require a
specific provision to have economic effect
independent of income tax consequences
in order to be respected. The proposed
regulations confirm this uniform principle
by inserting the terms of §§1.652(b)–1 and
1.652(b)–2(a) and –2(b) explicitly into
§§1.642(c)–3(b) and 1.643(a)–5(b).
Moreover, section 643(a)(7) grants ex-
press regulatory authority to “prescribe
such regulations as may be necessary or
appropriate to carry out the purposes of
this part, including regulations to prevent
avoidance of such purposes.”
Income Ordering Provisions and
Economic Effect Independent of Income
Tax Consequences
A commentator suggested that income
ordering provisions in CLTs have eco-
nomic effect independent of income tax
consequences because disregarding an in-
come ordering provision could increase a
CLT’s tax liability, thereby reducing the
value of the trust and in turn reducing the
April 30, 20128692012–18 I.R.B.

annual unitrust payments to the charitable
beneficiaries and increasing the risk that
the trust’s assets will be depleted before
the end of the trust term. Although the
generalpro rataallocation rule may in-
crease a trust’s tax liability and thereby
reduce the value of the trust’scorpus,the
effect of the payment of the trust’s income
tax liability is not an economic effect in-
dependent of income tax consequences
as described in these regulations. Any
possible reduction in the unitrust amount
subsequently paid to the charitable ben-
eficiary would be the direct result of the
payment of income taxes by the unitrust.
The use of an income ordering rule in a
CLT, directing the tax characteristics of
the unitrust or annuity payments to the
charity, is primarily, if not exclusively, an
attempt to minimize the tax liabilities of
the trust and its remainder beneficiaries.
The only effects of the use of an ordering
rule are in fact dependent solely upon tax
consequences: specifically, the reduced
amount of tax paid and the trust’s retention
of the income tax savings.
Ordering provisions in CLTs will never
have economic effect independent of their
tax consequences because the amount paid
to the charity is not dependent upon the
type of income it is allocated. An annu-
ity payment is a fixed amount from year to
year, and although a unitrust amount may
fluctuate annually, the amount is based
upon a predetermined percentage of the
trust’s value.
Permitting an ordering rule with no eco-
nomic effect independent of income tax
consequences to supersede thepro rata
allocation rule generally applicable under
Subchapter J would, in effect, permit tax-
payers to deviate at will from the general
rule imposed throughout Subchapter J in
the case of all kinds of complex trusts.
Encouragement of Charitable Gifts
A commentator suggested that the pro-
posed regulations are contrary to the Fed-
eral government’s long standing policy to
encourage charitable gifts and to benefit
and protect charities.
The IRS and Treasury Department have
carefully considered the merits and im-
plications of this suggestion. The IRS
and Treasury Department believe, how-
ever, that the proper interpretation of the
relevant Code sections does not permit the
creation of a special rule for CLTs. A CLT
is treated and taxed in the same way as
any other complex trust under Subchapter
J. Subchapter J does not differentiate be-
tween a CLT and a different type of com-
plex trust, and there is no provision of Sub-
chapter J that applies exclusively and ex-
pressly to CLTs. Thus, any income tax rule
applicable to a CLT will apply in the same
way to every other complex trust.
Principal/Income Ordering Rules
A commentator requested that the pro-
posed regulations be expanded to provide
that trusts that make distributions to both
charitable and noncharitable beneficiaries
in the same taxable year must allocate the
distributions equally to principal and in-
come as between charitable and nonchari-
table beneficiaries, unless there is a provi-
sion that has economic effect independent
of income tax consequences.
This request is beyond the scope of the
proposed regulations and might implicate
other well settled income tax rules applica-
ble to complex trusts. Section 662 and the
regulations thereunder provide the rules
for distributions by complex trusts with a
charitable beneficiary, and sufficiently ad-
dress the commentator’s concern. If the
commentator believes that further guid-
ance is needed or would be helpful to tax-
payers, a request for additional guidance
maybesubmittedforconsiderationtobe
added to the Priority Guidance Plan.
Economic Effect Independent of Income
Tax Consequences Example
A commentator requested an example
of a provision in a governing instrument
that would have economic effect indepen-
dent of income tax consequences. Such an
example has been added to the final regu-
lations asExample 2.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866, as supplemented by Executive
Order 13563. Therefore, a regulatory
assessment is not required. It has also
been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regu-
lations, and because these regulations do
not impose a collection of information
on small entities, the Regulatory Flexi-
bility Act (5 U.S.C. chapter 6) does not
apply. Therefore, a Regulatory Flexibility
Analysis is not required. Pursuant to
section 7805(f) of the Code, the notice
of proposed rulemaking preceding this
regulation was submitted to the Chief
Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business, and no
comments were received.
Drafting Information
The principal author of these pro-
posed regulations is Melissa Liquerman,
Office of the Associate Chief Counsel
(Passthroughs and Special Industries).
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.642(c)–3 is amended
by:
1. Revising the heading of paragraph
(b) and adding a heading for (b)(1).
2. Revising paragraph (b)(2).
3. Adding a heading to paragraph
(b)(3).
4. Removing paragraph (b)(4).
The revisions and addition read as fol-
lows:
§1.642(c)–3 Adjustments and other
special rules for determining unlimited
charitable contributions deduction.
*****
(b)Determination of amounts de-
ductible under section 642(c) and the
character of such amounts—(1)Reduction
of charitable contributions deduction by
amounts not included in gross income.
***
(2)Determination of the character of an
amount deductible under section 642(c).
In determining whether the amounts of
income so paid, permanently set aside,
or used for a purpose specified in section
2012–18 I.R.B.870April 30, 2012

642(c)(1), (2), or (3) include particular
items of income of an estate or trust,
whether or not included in gross income,
a provision in the governing instrument
or in local law that specifically provides
the source out of which amounts are to be
paid, permanently set aside, or used for
such a purpose controls for Federal tax
purposes to the extent such provision has
economic effect independent of income
tax consequences. See §1.652(b)–2(b).
In the absence of such specific provisions
in the governing instrument or in local
law, the amount to which section 642(c)
applies is deemed to consist of the same
proportion of each class of the items of
income of the estate or trust as the total of
each class bears to the total of all classes.
See §1.643(a)–5(b) for the method of de-
termining the allocable portion of exempt
income and foreign income. This para-
graph (b)(2) is illustrated by the following
examples:
Example 1. A charitable lead annuity trust has
the calendar year as its taxable year, and is to pay an
annuity of $10,000 annually to an organization de-
scribed in section 170(c). A provision in the trust
governing instrument provides that the $10,000 annu-
ity should be deemed to come first from ordinary in-
come, second from short-term capital gain, third from
fifty percent of the unrelated business taxable income,
fourth from long-term capital gain, fifth from the bal-
ance of unrelated business taxable income, sixth from
tax-exempt income, and seventh from principal. This
provision in the governing instrument does not have
economic effect independent of income tax conse-
quences, because the amount to be paid to the charity
is not dependent upon the type of income from which
it is to be paid. Accordingly, the amount to which sec-
tion 642(c) applies is deemed to consist of the same
proportion of each class of the items of income of the
trust as the total of each class bears to the total of all
classes.
Example 2. A trust instrument provides that
100 percent of the trust’s ordinary income must be
distributed currently to an organization described in
section 170(c) and that all remaining items of income
must be distributed currently to B, a noncharitable
beneficiary. This income ordering provision has
economic effect independent of income tax con-
sequences because the amount to be paid to the
charitable organization each year is dependent upon
the amount of ordinary income the trust earns within
that taxable year. Accordingly, for purposes of sec-
tion 642(c), the full amount distributed to charity is
deemed to consist of ordinary income.
(3)Other examples.***
*****
Par. 3. Section 1.643(a)–5 is amended
by revising paragraph (b) to read as fol-
lows:
§1.643(a)–5 Tax-exempt interest.
*****
(b) If the estate or trust is allowed a
charitable contributions deduction un-
der section 642(c), the amounts speci-
fied in paragraph (a) of this section and
§1.643(a)–6 are reduced by the portion
deemed to be included in income paid,
permanently set aside, or to be used for
the purposes specified in section 642(c).
If the governing instrument or local law
specifically provides as to the source out
of which amounts are paid, permanently
set aside, or to be used for such charitable
purposes, the specific provision controls
for Federal tax purposes to the extent such
provision has economic effect indepen-
dent of income tax consequences. See
§1.652(b)–2(b). In the absence of such
specific provisions in the governing in-
strument or local law, an amount to which
section 642(c) applies is deemed to consist
of the same proportion of each class of
the items of income of the estate or trust
as the total of each class bears to the total
of all classes. For illustrations showing
the determination of the character of an
amount deductible under section 642(c),
seeExamples 1and2of §1.662(b)–2 and
§1.662(c)–4(e).
Linda M. Kroening,
(Acting) Deputy Commissioner for
Services and Enforcement.
Approved April 9, 2012.
Emily M. McMahon,
(Acting) Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on April 13, 2012,
8:45 a.m., and published in the issue of the Federal Register
for April 16, 2012, 76 F.R. 22483)
April 30, 20128712012–18 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Application of the Normal
Retirement Age Requirements
to Governmental Plans
Notice 2012–29
I. PURPOSE
The IRS and the Treasury Department
anticipate issuing guidance relating to the
applicability of the normal retirement age
rules to governmental plans (as defined in
§ 414(d)). This notice describes and in-
vites public comment on the guidance un-
der consideration, which (a) would clarify
that governmental plans that do not pro-
vide for in-service distributions before age
62 do not need to have a definition of nor-
mal retirement age and (b) would mod-
ify the age–50 safe harbor rule for quali-
fied public safety employees. The notice
also provides that the IRS and Treasury
Department intend to extend the effective
date of the regulations relating to distribu-
tions from a pension plan upon attainment
of normal retirement age for governmental
plans.
II. BACKGROUND
Section 414(d) of the Code provides
that the termgovernmental plangenerally
means a plan established and maintained
for its employees by the Government of
the United States, by the government of
any State or political subdivision thereof,
or by any agency or instrumentality of any
of the foregoing. See sections 3(32) and
4021(b)(2) of the Employee Retirement In-
come Security Act of 1974 (ERISA) for
definitions of the termgovernmental plan,
which govern for purposes of title I and ti-
tle IV of ERISA, respectively.
1
Section 401(a) sets forth the qualifica-
tion requirements for a trust forming part
of a stock bonus, pension, or profit-shar-
ing plan of an employer. Several of these
qualification requirements are based on
a plan’s normal retirement age. Section
411(a)(8) defines the termnormal retire-
ment ageas the earlier of (a) the time a
participant attains normal retirement age
undertheplanor(b)thelaterofthetime
a plan participant attains age 65 or the
5
th
anniversary of the time a plan partici-
pant commenced participation in the plan.
However, under the statutory framework,
the definition of normal retirement age un-
der § 411(a)(8) does not apply to a govern-
mental plan that is not subject to § 411(a)
through (d) (provided that the govern-
mental plan satisfies the requirements in
§ 411(e)(2)). Under § 411(e)(1), the provi-
sions of § 411, other than § 411(e)(2), do
not apply to a governmental plan within
the meaning of § 414(d).
2
Section 401(a)(36) provides that a
“trustformingpartofapensionplanshall
not be treated as failing to constitute a
qualified trust under this section solely
because the plan provides that a distribu-
tionmaybemadefromsuchtrusttoan
employee who has attained age 62 and
who is not separated from employment at
the time of such distribution.”
On May 22, 2007, final regulations on
distributions from a pension plan upon
attainment of normal retirement age were
published in theFederal Registeras
T.D. 9325, 2007–1 C.B. 1386 [72 FR
28604] (2007 NRA regulations). Section
1.401(a)–1(b)(1) of the 2007 NRA reg-
ulations requires that a pension plan be
established and maintained primarily to
provide systematically for the payment
of definitely determinable benefits over
a period of years, usually for life, after
retirement.
3
The 2007 NRA regulations
describe two exceptions to this rule. First,
a plan is permitted to commence payment
of benefits to a participant after the partici-
pant reaches normal retirement age even if
the participant continues employment with
the employer. Second, a plan does not fail
to provide definitely determinable benefits
to employees after retirement or attain-
ment of normal retirement age merely
because the plan, pursuant to § 401(a)(36),
provides that a distribution may be made
from the plan to an employee who has
attained age 62 and who is not separated
from employment at the time of the dis-
tribution. Thus, there are two exceptions
to the prohibition against the payment of
benefits from a pension plan during em-
ployment: (1) payments can commence
after attainment of normal retirement age
(as defined in the 2007 NRA regulations);
and (2) payments can commence after an
employee reaches age 62.
Section 1.401(a)–1(b)(2)(i) of the 2007
NRA regulations provides that, as a gen-
eral rule, the normal retirement age under a
plan must be an age that is not earlier than
the earliest age that is reasonably represen-
tative of the typical retirement age for the
industry in which the covered workforce is
employed. Section 1.401(a)–1(b)(2) pro-
vides various safe harbors for determining
normal retirement ages that are deemed to
be not earlier than the earliest age that is
reasonably representative of the typical re-
tirement age for the industry in which the
covered workforce is employed. Under
§ 1.401(a)–1(b)(2)(v) of the 2007 NRA
regulations, in the case of a plan in which
substantially all of the participants are
qualified public safety employees (within
the meaning of § 72(t)(10)(B)), a normal
retirement age of age 50 or later is deemed
to be not earlier than the earliest age that
is reasonably representative of the typical
retirement age for the industry in which
the covered workforce is employed.
Notice 2007–69, 2007–2 C.B. 468,
asked for comments “on whether and how
a pension plan with a normal retirement
age conditioned on the completion of a
stated number of years of service satisfies
the requirement in § 1.401(a)–1(b)(1)(i)
that a pension plan be maintained primar-
1
The definition of the termgovernmental planalso includes special rules relating to (a) plans to which the Railroad Retirement Act of 1935 or 1937 (49 Stat. 967, as amended by 50 Stat.
307) applies, (b) plans of an international organization that is exempt from taxation by reason of the International Organizations Immunities Act (59 Stat. 669), and (c) certain plans that are
established and maintained by an Indian tribal government (as defined in§ 7701(a)(40)), a subdivision of an Indian tribal government (determined inaccordance with § 7871(d)), or an agency
or instrumentality of either. See REG–157714–06 and REG–133223–08, which areadvance notices of proposed rulemaking (ANPRMs) relating to the determination of governmental plan
status and Indian tribal governmental plans. The ANPRMs were published November 8, 2011 in theFederal Register(76 FR 69172 and 69188).
2
Section 411(e)(2) states that governmental plans “shall be treated as meeting the requirements of [§ 411], for purposes of section 401(a), if such plan meets the vesting requirements resulting
from the application of section 401(a)(4) and 401(a)(7) as in effect on September 1, 1974.”
3
This rule was also reflected in pre-ERISA regulations. See § 1.401–1(b)(1)(i) of the regulations, which was adopted prior to the enactment of ERISA and provides that for pre-ERISA plans
a qualified pension plan is a “plan established and maintained by an employer primarily to provide systematically for the payment of definitely determinable benefits to his employees over a
period of years, usually for life, after retirement.”
2012–18 I.R.B.872April 30, 2012

ily to provide for the payment of definitely
determinable benefits after retirement or
attainment of normal retirement age and
how such a plan satisfies the pre-ERISA
vesting rules.” Comments were received
on a variety of issues, including comments
that the guidance should (1) clarify that
governmental plans are not required to
define normal retirement age and (2) pro-
vide that the age–50 safe harbor rule in
§ 1.401(a)–1(b)(2)(v) for qualified public
safety employees can apply to these em-
ployees even if less than substantially all
of a plan’s participants are qualified public
safety employees.
Notices 2008–98, 2008–44 I.R.B 1080,
and 2009–86, 2009–46 I.R.B. 629, pro-
vided that the IRS and the Treasury De-
partment intend to amend the 2007 NRA
regulations to change the effective date of
the 2007 NRA regulations for governmen-
tal plans to January 1, 2013.
III. GUIDANCE UNDER
CONSIDERATION
The IRS and the Treasury Department
are currently considering guidance relating
to the applicability of the 2007 NRA regu-
lations to governmental plans, as described
in this Part III. For governmental plans, the
definition of normal retirement age may
be used in a variety of different circum-
stances relating to plan qualification,e.g.,
in applying the pre-ERISA vesting rules or
to specify circumstances in which in-ser-
vice benefit payments are permitted. The
definition of normal retirement age may
also be relevant to participant eligibility
for certain favorable tax treatment, includ-
ing § 402(l) of the Code (providing an in-
come exclusion of up to $3,000 annually
for certain distributions for health insur-
ance and long-term care insurance premi-
ums to eligible retired public safety offi-
cers who separate from service by reason
of disability or attainment of normal re-
tirement age) or the special catch-up pro-
visions under § 1.457–4(c)(3)(v)(A).
4
For plans that are required to comply
with § 411(a) through (d) of the Code (in-
cluding any governmental plans not satis-
fying the requirements of § 411(e)(2)), the
definition of normal retirement age is used
for a variety of additional purposes relat-
ing to plan qualification. The definition
of normal retirement age is important in
applying the accrual rules under § 411(b),
rules relating to suspension of benefits un-
der § 411(a)(3)(B), plan offset rules under
§ 411(b)(1)(H)(iii), and the minimum ben-
efit rules for non-key employees in a top-
heavy defined benefit plan under § 416.
In response to comments received with
respect to Notice 2007–69, the IRS and
the Treasury Department intend to mod-
ify provisions of the 2007 NRA regula-
tions as applied to governmental plans in
two ways.
5
First, the regulations would
be modified to clarify that a governmental
plan that is not subject to § 411(a) through
(d) and does not provide for the payment of
in-service distributions before age 62 will
not fail to satisfy the requirement that the
plan provide definitely determinable ben-
efits to employees after retirement or at-
tainment of normal retirement age merely
because the pension plan does not have a
definition of normal retirement age or does
not have a definition of normal retirement
age that satisfies the requirements of the
2007 NRA regulations.
Second, the IRS and the Treasury
Department intend to modify the 2007
NRA regulations with respect to the
age–50 safe harbor rule for qualified pub-
lic safety employees (within the meaning
of § 72(t)(10)(B)). Under the 2007 NRA
regulations, in the case of a plan in which
substantially all of the participants are
qualified public safety employees, a nor-
mal retirement age of 50 or later is deemed
to satisfy the requirement that a pension
plan’s normal retirement age be an age
that is not earlier thanthe earliest age that
is reasonably representative of the typical
retirement age for the industry in which
the covered workforce is employed. It has
come to our attention that a requirement
that qualified public safety employees be
in a separate plan, rather than a separate
group within a larger plan containing other
employees with higher NRAs, may impose
inappropriate administrative burdens on
state and local governments. Accordingly,
the IRS and the Treasury Department in-
tend to modify the 2007 NRA regulations
to provide that the rule deeming age 50
or later to be a normal retirement age that
satisfies those regulations will apply to
a group of employees substantially all of
whom are qualified public safety employ-
ees, whether or not the group of qualified
public safety employees are covered by
a separate plan. Thus, a governmental
pension plan could satisfy the normal re-
tirement age requirement using a normal
retirement age as low as 50 for a group
substantially all of whom are qualified
public safety employees and a later normal
retirement age that otherwise satisfies the
2007 NRA requirements for other partic-
ipants.
The IRS and Treasury intend to amend
the 2007 NRA regulations to change the
effective date for governmental plans to
annuity starting dates that occur in plan
years beginning on or after the later of (1)
January 1, 2015 or (2) the close of the first
regular legislative session of the legislative
body with the authority to amend the plan
that begins on or after the date that is 3
months after the final regulations are pub-
lished in theFederal Register. Govern-
mental plan sponsors may rely on this no-
tice with respect to the extension until such
time as the 2007 NRA regulations are so
amended. This extension will provide ad-
ditional time for the IRS and Treasury to
consider and respond to comments on the
guidance under consideration that is de-
scribed in this notice.
IV. COMMENTS REQUESTED
Comments are requested regarding the
guidance under consideration that is de-
scribed in Part III of this notice. The IRS
and the Treasury Department specifically
request comments regarding whether, be-
cause qualified public safety employees
generally tend to have career spans that
commence at a young age and continue
over a limited period of years, an addi-
tional rule should be provided under which
retirement after 20 to 30 years of service
may be a normal retirement that is rea-
sonably representative for qualified public
4
Section 1.457–4(c)(3)(v)(A) provides that, for purposes of the special §457 catch-up in § 1.457–4(c)(3), a plan must specify the normal retirement age under the plan. It further provides
that a plan may define normal retirement age as any age that is on or after the earlier of age 65 or the age at which participants have the right to retire andreceive, under the basic defined
benefit pension plan of the State, immediate retirement benefits without actuarial or similar reduction.
5
Further modifications to the 2007 NRA regulations may be made after consideration of comments not addressed in this notice, as well as future commentsreceived in response to the request
for comments in Part IV of this notice.
April 30, 20128732012–18 I.R.B.

safety employees.
6
Comments are also re-
quested on whether there is information in-
dicating that there are other categories of
governmental employees who have career
spans similar to qualified public safety em-
ployees that would justify a similar rule.
In addition, any information that govern-
mental plans have on the overall retirement
patterns of other employees in government
service is requested in order to assist the
IRS and Treasury in determining the ear-
liest age that is reasonably representative
of the typical retirement ages for such em-
ployees.
Written comments should be submitted
by July 30, 2012. Send submissions to
CC:PA:LPD:PR, (Notice 2012–29), Room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washing-
ton, D.C. 20044. Comments may also
be hand delivered Monday through Fri-
day between the hours of 8 a.m. and
4:00 p.m. to: Internal Revenue Ser-
vice, CC:PA:LPD:PR, (Notice 2012–29),
Courier’s Desk, Internal Revenue Ser-
vice, 1111 Constitution Avenue, N.W.,
Washington DC. Alternatively, comments
may be submitted via the Internet at
notice.comments@irscounsel.treas.gov
(Notice 2012–29). All comments will be
available for public inspection.
V. EFFECT ON OTHER DOCUMENTS
Notices 2008–98 and 2009–86 are mod-
ified.
DRAFTING INFORMATION
The principal authors of this notice are
Sarah R. Bolen and Pamela R. Kinard
of the Office of the Division
Counsel/Associate Chief Counsel (Tax
Exempt and Government Entities). For
further information regarding this notice,
contact Ms. Bolen and Ms. Kinard at
(202) 622–6060 (not a toll-free number).
Nonconventional Source Fuel
Credit, 2011 Section 45K
Inflation Adjustment Factor
and Section 45K Reference
Price
Notice 2012–30
This notice publishes the nonconven-
tional source fuel credit, inflation adjust-
ment factor, and reference price under
§ 45K of the Internal Revenue Code for
coke or coke gas (other than from petro-
leum based products) for calendar year
2011. The inflation adjustment factor is
used to determine thecredit allowable
under § 45K for coke or coke gas. The cal-
endar year 2011 inflation-adjusted credit
applies to the sales of barrel-of-oil equiva-
lent of coke or coke gas sold by a taxpayer
to an unrelated person during the 2011
calendar year, the domestic production of
which is attributable to the taxpayer.
SECTION 2. BACKGROUND
Section 45K(a) provides for a credit
for producing fuel from a nonconventional
source, measured in barrel-of-oil equiva-
lent of qualified fuel, the production of
which is attributable to the taxpayer and is
sold by the taxpayer to an unrelated per-
son during the taxable year. For calendar
year 2011, the credit is available only for
coke or coke gas. The credit amount for
coke or coke gas is equal to the product of
$3.00 and the appropriate inflation adjust-
ment factor.
Section 45K(d)(1) provides that the
credit applies only to sales of qualified
fuels the production of which is within
the United States (within the meaning of
§ 638(1)) or a possession of the United
States (within the meaning of § 638(2)).
Section 45K(d)(2)(A) requires that the
Secretary, not later than April 1 of each cal-
endar year, determine and publish in the
Federal Register the inflation adjustment
factor and the reference price for the pre-
ceding calendar year.
Section 45K(d)(2)(B) defines “inflation
adjustment factor” for a calendar year as
a fraction the numerator of which is the
GNP implicit price deflator for the calen-
dar year and the denominator of which is
the GNP implicit price deflator for calen-
dar year 1979. The term “GNP implicit
price deflator” means the first revision of
the implicit price deflator for the gross na-
tional product as computed and published
by the Department of Commerce.
Section 45K(d)(2)(C) defines “refer-
ence price” to mean with respect to a
calendar year the Secretary’s estimate of
the annual average wellhead price per bar-
rel for all domestic crude oil the price of
which is not subject to regulation by the
United States.
Section 45K(d)(5) provides that the
term “barrel-of-oil equivalent” with re-
spect to any fuel generally means that
amount of the fuel that has a Btu content
of 5.8 million.
Section 45K(g)(1) provides that in
the case of a facilityfor producing coke
or coke gas (other than from petroleum
based products), which was placed in
service before January 1, 1993, or af-
ter June 30, 1998, and before January 1,
2010, § 45K(g) shall apply with respect to
coke or coke gas produced in such facility
and sold during the period beginning on
the later of January 1, 2006, or the date
that such facility isplaced in service, and
ending on the date which is 4 years after
the date such period began.
Section 45K(g)(2)(A) provides that the
amount of coke or coke gas sold during any
taxable year that may be taken into account
to compute the credit under § 45K with
respect to any facility shall not exceed an
average barrel-of-oil equivalent of 4,000
barrels per day.
Section 45K(g)(2)(B) provides that in
determining the amount of credit allow-
able to coke or coke gas sold after 2005,
the credit shall be computed by substitut-
ing “2004” for “1979.” Accordingly, for
purposes of § 45K(g), the inflation adjust-
ment factor for a calendar year is a fraction
the numerator of which is the GNP implicit
price deflator for the calendar year and the
denominator of which is the GNP implicit
price deflator for calendar year 2004.
Section 45K(g)(2)(D) provides that the
phase-out of the credit under § 45K(b)(1)
6
See section 4(j) of the Age Discrimination in Employment Act.
2012–18 I.R.B.874April 30, 2012

does not apply in the case of facilities pro-
ducing coke or coke gas.
SECTION 3. REFERENCE PRICE
The reference price for calendar year
2011 is $95.73.
SECTION 4. INFLATION
ADJUSTMENT AND CREDIT
AMOUNT
The inflation adjustment factor for cal-
endar year 2011 is 1.1712. The noncon-
ventional source fuel credit is $3.51 per
barrel-of-oil equivalent ($3.00 x 1.1712).
SECTION 5. DRAFTING
INFORMATION
The principal author of this notice
is Jennifer Bernardini of the Office of
Associate Chief Counsel (Passthroughs
& Special Industries).For further
information regarding this notice, contact
Ms. Bernardini at (202) 622–3110 (not a
toll-free call).
April 30, 20128752012–18 I.R.B.

Part IV. Items o
fGeneralInterest
IRS Encourage
sTaxpayers
to Request Cre
dit or Refund
of any Telepho
ne Excise
Taxes Paid fo
rNontaxable
Service As Ou
tlined in Notices
2006–50 and
2007–11
Announceme
nt 2012–16
The Interna
l Revenue Service reminds
and encoura
ges taxpayers to timely request
a Telephone
Excise Tax Refund if they
have not al
ready done so. Since the Ser-
vice stopp
ed collecting the tax on long dis-
tance serv
ice in 2006, it has administered
asimplifi
ed procedure for taxpayers to re-
quest a re
fund of excise taxes paid under
section 4
251 on nontaxable services that
were bill
ed after February 28, 2003, and
before Au
gust 1, 2006. Taxpayers have
until Ju
ly 27, 2012, to request refunds of
the tele
phone excise tax.
Based on
recent litigation, the validity
of the no
tice that outlines the procedures
under wh
ich a taxpayer may request a
refund o
f telephone excise tax has been
called i
nto question. While the litigation
contin
ues, in the interest of providing cer-
tainty
to taxpayers, if the taxpayer chooses
to requ
est a refund, the Internal Revenue
Servic
e will process and honor requests
that ar
e made on or before July 27, 2012.
Taxpa
yers should make their requests on
the ap
propriate 2006 income tax return.
For ex
ample, individuals who were not
other
wise required to file a federal income
tax re
turn for 2006 may request a refund
of th
e safe harbor amount, without doc-
umen
tation, by filing a Form 1040EZ–T,
Requ
est For Refund of Federal Telephone
Exci
se Tax.Taxpayers who have previ-
ousl
y filed 2006 income tax returns but did
not
request a telephone excise tax refund
sho
uld use amended income tax returns,
for
example a Form 1040–X,Amended
U.S
. Individual Income Tax Return,to
mak
e their requests. Taxpayers who wish
to r
equest actual amounts of excise taxes
pa
id rather than the safe harbor amounts
de
scribed in Notice 2007–11 should use
Fo
rm 8913,Credit for Federal Telephone
Ex
cise Tax Paid.
Th
e Service will not process refund re-
qu
ests submitted after July 27, 2012.
For further de
tails on how to make the
requests, ple
ase see the instructions for
the appropria
te 2006 income tax return
form and the in
structions for Form 8913.
Forms and inst
ructions are available on
http://www.
irs.gov.
The principal
author of this announce-
ment is Micah
A. Levy of the Office of
Associate Ch
ief Counsel (Procedure &
Administrat
ion). For further information
regarding th
is announcement, contact
Micah A. Lev
y at (202) 622–3630 (not a
toll-free c
all).
Correction
to Revenue
Procedure 2
011–62;
Publicati
on 1141: General
Rules and S
pecifications for
Substitu
te Forms W–2 and
W–3
Announce
ment 2012–17
Revenue P
rocedure 2011–62, 2011–52
I.R.B. 1
032, contains an error in the list
of exhib
its, Exhibit–B. Revenue Proce-
dure 201
1–62 states the requirements of
the Inte
rnal Revenue Service (IRS) and
the Soci
al Security Administration (SSA)
regard
ing the preparation and use of sub-
stitut
e forms for Form W–2,Wage and Tax
Statem
ent,and Form W–3,Transmittal
of Wage
and Tax Statements,for wages
paid du
ring the calendar year 2011. This
annou
ncement corrects the dimensions for
Exhib
it–B of Rev. Proc. 2011–62.
This c
orrection clarifies the dimen-
siona
l left-right arrows in Box b, Kind of
Payer
, that was published in the IR Bul-
letin
2011–52 dated December 27, 2011.
Exhib
it–B of Rev. Proc. 2011–62 now
shows
as follows:
On the
bottom row of the checkboxes,
in Box
b of Form W–3 (Red-Ink), the
left
-right arrow should be 1.2′′origi-
nati
ng from the form’s left vertical line
shou
ld end on the left vertical line of the
CT–1
checkbox. The two left-right ar-
rows
(.36′′) should be centered directly
betw
een the CT–1 and Household Em-
plo
yee checkboxes. There should be
no l
eft-right arrows to the right of
the
Medicare Government Employee
che
ckbox.
Drafting Info
rmation
The principal a
uthor of this announce-
ment is Sara Co
vington of the Office of
Media & Public
ations/Tax Forms and
Publications
(Multilingual and Agency
Services Bran
ch). For further information
regarding th
is announcement, please
contact Sara
Covington at (202) 622–3945
(not a toll-f
ree call).
Deletions Fr
om Cumulative
List of Organ
izations
Contributi
ons to Which
are Deducti
ble Under Section
170 of the C
ode
Announceme
nt 2012–20
The Interna
l Revenue Service has re-
voked its d
etermination that the organi-
zations li
sted below qualify as organiza-
tions desc
ribed in sections 501(c)(3) and
170(c)(2)
of the Internal Revenue Code of
1986.
Generally
, the Service will not disallow
deductio
ns for contributions made to a
listed or
ganization on or before the date
of announ
cement in the Internal Revenue
Bulletin
that an organization no longer
qualifie
s. However, the Service is not
preclud
ed from disallowing a deduction
for any c
ontributions made after an or-
ganizat
ion ceases to qualify under section
170(c)(
2) if the organization has not timely
filed a s
uit for declaratory judgment under
section
7428 and if the contributor (1) had
knowle
dge of the revocation of the ruling
or dete
rmination letter, (2) was aware that
such re
vocation was imminent, or (3) was
in part
responsible for or was aware of the
activi
ties or omissions of the organization
that b
rought about this revocation.
If on th
e other hand a suit for declara-
tory j
udgment has been timely filed, con-
tribu
tions from individuals and organiza-
tions
described in section 170(c)(2) that
are ot
herwise allowable will continue to
be ded
uctible. Protection under section
7428
(c) would begin on April 30, 2012,
and w
ould end on the date the court first
dete
rmines that the organization is not de-
scri
bed in section 170(c)(2) as more partic-
ular
ly set forth in section 7428(c)(1). For
2012–18 I.R.B.876April 30, 2012

individual contributors, the maximum de-
duction protected is $1,000, with a hus-
band and wife treated as one contributor.
This benefit is not extended to any indi-
vidual, in whole or in part, for the acts or
omissions of the organization that were the
basis for revocation.
A Family Budget Counseling, Inc.
Huntington City, NY
Angels Enterprise, Inc.
Buchanan, MI
Fisher Institute
Irving, TX
Graystone University Housing
Corporation
Malvern, PA
April 30, 20128772012–18 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2012–18 I.R.B.iApril 30, 2012

Numerical Finding List
1
Bulletins 2012–1 through 2012–18
Announcements:
2012-1, 2012-1 I.R.B.249
2012-2, 2012-2 I.R.B.285
2012-3, 2012-4 I.R.B.335
2012-4, 2012-4 I.R.B.335
2012-5, 2012-5 I.R.B.348
2012-6, 2012-6 I.R.B.366
2012-7, 2012-6 I.R.B.367
2012-8, 2012-7 I.R.B.373
2012-9, 2012-7 I.R.B.377
2012-11, 2012-13 I.R.B.611
2012-12, 2012-12 I.R.B.562
2012-13, 2012-16 I.R.B.805
2012-14, 2012-14 I.R.B.721
2012-15, 2012-15 I.R.B.794
2012-16, 2012-18 I.R.B.876
2012-17, 2012-18 I.R.B.876
2012-18, 2012-16 I.R.B.845
2012-20, 2012-18 I.R.B.876
Notices:
2012-1, 2012-2 I.R.B.260
2012-3, 2012-3 I.R.B.289
2012-4, 2012-3 I.R.B.290
2012-5, 2012-3 I.R.B.291
2012-6, 2012-3 I.R.B.293
2012-7, 2012-4 I.R.B.308
2012-8, 2012-4 I.R.B.309
2012-9, 2012-4 I.R.B.315
2012-10, 2012-5 I.R.B.343
2012-11, 2012-5 I.R.B.346
2012-12, 2012-6 I.R.B.365
2012-13, 2012-9 I.R.B.421
2012-14, 2012-8 I.R.B.411
2012-15, 2012-9 I.R.B.424
2012-16, 2012-9 I.R.B.427
2012-17, 2012-9 I.R.B.430
2012-18, 2012-10 I.R.B.438
2012-19, 2012-10 I.R.B.440
2012-20, 2012-13 I.R.B.574
2012-21, 2012-10 I.R.B.450
2012-22, 2012-13 I.R.B.576
2012-23, 2012-11 I.R.B.483
2012-24, 2012-13 I.R.B.578
2012-25, 2012-15 I.R.B.789
2012-26, 2012-17 I.R.B.847
2012-27, 2012-17 I.R.B.849
2012-28, 2012-17 I.R.B.850
2012-30, 2012-18 I.R.B.874
2012-29, 2012-18 I.R.B.872
Proposed Regulations:
REG-168745-03, 2012-14 I.R.B.718
REG-109369-10, 2012-9 I.R.B.434
REG-110980-10, 2012-13 I.R.B.581
REG-113770-10, 2012-13 I.R.B.587
REG-113903-10, 2012-11 I.R.B.486
REG-120282-10, 2012-11 I.R.B.487
REG-130302-10, 2012-8 I.R.B.412
REG-135491-10, 2012-16 I.R.B.803
REG-149625-10, 2012-2 I.R.B.279
REG-102988-11, 2012-4 I.R.B.326
REG-115809-11, 2012-13 I.R.B.598
REG-124627-11, 2012-8 I.R.B.417
REG-124791-11, 2012-15 I.R.B.791
REG-130777-11, 2012-5 I.R.B.347
REG-132736-11, 2012-15 I.R.B.793
REG-135071-11, 2012-12 I.R.B.561
REG-145474-11, 2012-11 I.R.B.495
Revenue Procedures:
2012-1, 2012-1 I.R.B.1
2012-2, 2012-1 I.R.B.92
2012-3, 2012-1 I.R.B.113
2012-4, 2012-1 I.R.B.125
2012-5, 2012-1 I.R.B.169
2012-6, 2012-1 I.R.B.197
2012-7, 2012-1 I.R.B.232
2012-8, 2012-1 I.R.B.235
2012-9, 2012-2 I.R.B.261
2012-10, 2012-2 I.R.B.273
2012-11, 2012-7 I.R.B.368
2012-12, 2012-2 I.R.B.275
2012-13, 2012-3 I.R.B.295
2012-14, 2012-3 I.R.B.296
2012-15, 2012-7 I.R.B.369
2012-16, 2012-10 I.R.B.452
2012-17, 2012-10 I.R.B.453
2012-18, 2012-10 I.R.B.455
2012-19, 2012-14 I.R.B.689
2012-20, 2012-14 I.R.B.700
2012-21, 2012-11 I.R.B.484
2012-22, 2012-17 I.R.B.853
2012-23, 2012-14 I.R.B.712
Revenue Rulings:
2012-1, 2012-2 I.R.B.255
2012-2, 2012-3 I.R.B.286
2012-3, 2012-8 I.R.B.383
2012-4, 2012-8 I.R.B.386
2012-5, 2012-5 I.R.B.337
2012-6, 2012-6 I.R.B.349
2012-7, 2012-6 I.R.B.362
2012-8, 2012-13 I.R.B.563
2012-9, 2012-11 I.R.B.475
2012-10, 2012-14 I.R.B.614
Revenue Rulings— Continued:
2012-11, 2012-14 I.R.B.686
2012-12, 2012-15 I.R.B.748
Treasury Decisions:
9559, 2012-2 I.R.B.252
9560, 2012-4 I.R.B.299
9561, 2012-5 I.R.B.341
9562, 2012-5 I.R.B.339
9563, 2012-6 I.R.B.354
9564, 2012-14 I.R.B.614
9565, 2012-8 I.R.B.378
9566, 2012-8 I.R.B.389
9567, 2012-8 I.R.B.395
9568, 2012-12 I.R.B.499
9569, 2012-11 I.R.B.465
9570, 2012-11 I.R.B.477
9571, 2012-11 I.R.B.468
9572, 2012-11 I.R.B.471
9573, 2012-12 I.R.B.498
9574, 2012-12 I.R.B.559
9575, 2012-15 I.R.B.749
9576, 2012-15 I.R.B.723
9577, 2012-15 I.R.B.730
9579, 2012-16 I.R.B.796
9580, 2012-16 I.R.B.801
9581, 2012-16 I.R.B.798
9582, 2012-18 I.R.B.868
9583, 2012-18 I.R.B.866
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011–27 through 2011–52 is in Internal Revenue Bulletin
2011–52, dated December 27, 2011.
April 30, 2012ii2012–18 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2012–1 through 2012–18
Announcements:
2002-44
Supplemented by
Notice 2012-13, 2012-9 I.R.B.421
2010-19
Obsoleted by
Ann. 2012-12, 2012-12 I.R.B.562
2011-63
Corrected by
Ann. 2012-9, 2012-7 I.R.B.377
Notices:
2006-52
As clarified and amplified by Notice 2008-40, is
modified by
Notice 2012-26, 2012-17 I.R.B.847
2006-87
Superseded by
Notice 2012-19, 2012-10 I.R.B.440
2006-99
Superseded in part by
Notice 2012-20, 2012-13 I.R.B.574
2007-25
Superseded by
Notice 2012-19, 2012-10 I.R.B.440
2007-77
Superseded by
Notice 2012-19, 2012-10 I.R.B.440
2007-95
Obsoleted in part by
T.D. 9576, 2012-15 I.R.B.723
2008-107
Superseded by
Notice 2012-19, 2012-10 I.R.B.440
2008-98
Modified by
Notice 2012-29, 2012-18 I.R.B.872
2009-86
Modified by
Notice 2012-29, 2012-18 I.R.B.872
2010-27
Superseded by
Notice 2012-19, 2012-10 I.R.B.440
2010-88
As modified by Ann. 2011-40, is superseded by
Notice 2012-1, 2012-2 I.R.B.260
Notices— Continued:
2010-92
Obsoleted by
T.D. 9577, 2012-15 I.R.B.730
2011-8
Superseded by
Notice 2012-19, 2012-10 I.R.B.440
2011-28
Superseded by
Notice 2012-9, 2012-4 I.R.B.315
Proposed Regulations:
REG-208274-86
Withdrawn by
Ann. 2012-11, 2012-13 I.R.B.611
Revenue Procedures:
2000-43
Amplified, modified and superseded by
Rev. Proc. 2012-18, 2012-10 I.R.B.455
2003-61
Superseded by
Notice 2012-8, 2012-4 I.R.B.309
2007-44
Modified by
Ann. 2012-3, 2012-4 I.R.B.335
2010-43
Superseded by
Rev. Proc. 2012-22, 2012-17 I.R.B.853
2011-1
Superseded by
Rev. Proc. 2012-1, 2012-1 I.R.B.1
2011-2
Superseded by
Rev. Proc. 2012-2, 2012-1 I.R.B.92
2011-3
Superseded by
Rev. Proc. 2012-3, 2012-1 I.R.B.113
2011-4
Superseded by
Rev. Proc. 2012-4, 2012-1 I.R.B.125
2011-5
Superseded by
Rev. Proc. 2012-5, 2012-1 I.R.B.169
2011-6
Superseded by
Rev. Proc. 2012-6, 2012-1 I.R.B.197
2011-7
Superseded by
Rev. Proc. 2012-7, 2012-1 I.R.B.232
Revenue Procedures— Continued:
2011-8
Superseded by
Rev. Proc. 2012-8, 2012-1 I.R.B.235
2011-9
Superseded by
Rev. Proc. 2012-9, 2012-2 I.R.B.261
2011-10
Superseded by
Rev. Proc. 2012-10, 2012-2 I.R.B.273
2011-14
Modified and clarified by
Rev. Proc. 2012-19, 2012-14 I.R.B.689
Rev. Proc. 2012-20, 2012-14 I.R.B.700
2011-37
Obsoleted in part by
Rev. Proc. 2012-16, 2012-10 I.R.B.452
2011-40
Corrected by
Ann. 2012-6, 2012-6 I.R.B.366
2011-49
Modified by
Ann. 2012-3, 2012-4 I.R.B.335
2011-50
Corrected by
Ann. 2012-6, 2012-6 I.R.B.366
2011-51
Corrected by
Ann. 2012-6, 2012-6 I.R.B.366
2011-62
Corrected by
Ann. 2012-17, 2012-18 I.R.B.876
2012-8
Corrected by
Ann. 2012-7, 2012-6 I.R.B.367
Revenue Rulings:
92-19
Supplemented in part by
Rev. Rul. 2012-6, 2012-6 I.R.B.349
2008-40
Modified by
Notice 2012-6, 2012-3 I.R.B.293
2011-1
Modified by
Notice 2012-6, 2012-3 I.R.B.293
2012-9
Modified by
Rev. Rul. 2012-12, 2012-15 I.R.B.748
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011–27 through 2011–52 is in Internal Revenue Bulletin 2011–52, dated December 27,
2011.
2012–18 I.R.B.iiiApril 30, 2012

Treasury Decision:
9517
Corrected by
Ann. 2012-4, 2012-4 I.R.B.335
Ann. 2012-5, 2012-5 I.R.B.348
April 30, 2012iv2012–18 I.R.B.

INDEX
Internal Revenue Bulletins 2012–1 through
2012–18
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parentheses refer to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Determination letters, issuing procedures (RP 6) 1,197
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 2012 (Notice 10) 5,343
February 2012 (Notice 16) 9,498
March 2012 (Notice 24) 13,578
April 2012 (Notice 28) 17,850
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,113
Associate Chief Counsel (International) (RP 7) 1,232
And general information letters, procedures (RP 4) 1,125
User fees, request for letter rulings (RP 8) 1,235; correction
(Ann 7) 6,367
Longevity annuity contracts (REG–115809–11) 13,598
Modifications to minimum present value requirements for par-
tial annuity distribution options under defined benefit pension
plans (REG–110980–10) 13,581
Proposed Regulations:
26 CFR 1.401(a)(9)–5, –6, amended; 1.403(b)–6, amended;
1.408–8, amended; 1.408A–6, amended; 1.6047–2, added;
longevity annuity contracts (REG–115809–11) 13,598
26 CFR 1.417(e)–1, amended; modifications to mini-
mum present value requirements for partial annuity
distribution options under defined benefit pension plans
(REG–110980–10) 13,581
Qualified plans:
Accrued benefits (RR 4) 8,386
Determination letters (Ann 3) 4,335
Group trusts (Notice 6) 3,293
EMPLOYEE PLANS—Cont.
Qualified joint and survivors annuities (RR 3) 8,383
Retirement plans, covered compensation, permitted disparity
(RR 5) 5,337
Regulations:
26 CFR 54.9815–2715, added; 602.101(b), amended; sum-
mary of benefits and coverage and uniform glossary (TD
9575) 15,749
Summary of benefits and coverage and uniform glossary (TD
9575) 15,749
Technical advice to IRS employees (RP 5) 1,169
EMPLOYMENT TAX
Employer’s annual federal tax return and modifications to the
deposit rules (TD 9566) 8,389
Furnishing identifying number of tax return preparer
(REG–124791–11) 15,791
Interim guidance for cost of health care coverage reporting on
Form W-2 (Notice 9) 4,315
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Proposed Regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–124791–11) 15,791
Regulations:
26 CFR 31.6011(a)–1, –4, amended; 31.6011(a)–1T, –4T, re-
moved; 31.6071(a)–1, amended; 31.6302–0, –1, amended;
31.6302–0T, –1T, removed; employer’s annual federal tax
return and modifications to the deposit rules (TD 9566) 8,
389
26 CFR 301.7623, amended; rewards and awards for infor-
mation relating to violations of internal revenue laws (TD
9580) 17,801
Rewards and awards for information relating to violations of in-
ternal revenue laws (TD 9580) 17,801
Technical Advice Memoranda (RP 2) 1,92
Work opportunity tax credit (WOTC) (Notice 13) 9,492
ESTATE TAX
Extension of time to file estate tax return to elect portability of
a deceased spousal unused exclusion amount under section
2010(c) (Notice 21) 10,450
Furnishing identifying number of tax return preparer
(REG–124791–11) 15,791
Guidance under sections 642 and643 (income ordering rules)
(TD 9582) 18,868
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Proposed Regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–124791–11) 15,791
2012–18 I.R.B.vApril 30, 2012

ESTATE TAX—Cont.
Regulations:
26 CFR 1.642(c)–3, amended; 1.643(a)–5, amended; guid-
ance under sections 642 and 643 (income ordering rules)
(TD 9582) 18,868
26 CFR 301.7623, amended; rewards and awards for infor-
mation relating to violations of internal revenue laws (TD
9580) 17,801
Rewards and awards for information relating to violations of in-
ternal revenue laws (TD 9580) 17,801
Technical Advice Memoranda (RP 2) 1,92
EXCISE TAX
Aviation fuels, air transportation (Notice 27) 17,849
Frequently asked questions, Patient Protection and Affordable
Care Act (Notice 17) 9,501
Furnishing identifying number of tax return preparer
(REG–124791–11) 15,791
Guidance regarding the repeal of section 163(f)(2)(B) (Notice
20) 13,574
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Proposed Regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–124791–11) 15,791
26 CFR 48.4191–1, –2, added; 48.4221–1, –2, amended;
48.4221–2, amended; 48.6416(b)(2)–2, amended; taxable
medical devices (REG–113770–10) 13,587
Regulations:
26 CFR 54.9815–2715, added; 602.101(b), amended; sum-
mary of benefits and coverage and uniform glossary (TD
9575) 15,749
26 CFR 301.7623, amended; rewards and awards for infor-
mation relating to violations of internal revenue laws (TD
9580) 17,801
Rewards and awards for information relating to violations of in-
ternal revenue laws (TD 9580) 17,801
Summary of benefits and coverage and uniform glossary (TD
9575) 15,749
Taxable medical devices (REG–113770–10) 13,587
Technical Advice Memoranda (RP 2) 1,92
Telephone excise tax refund deadline (Ann 16) 18,876
EXEMPT ORGANIZATIONS
Annual notice to donors regarding pending and settled declara-
tory judgment suits (Ann 1) 1,249
Application for recognition as a 501(c)(29) Organization (TD
9574) 12,559; (REG–135071–11) 12,561
Certain filing changes for tax-exempt organizations (Notice 4) 3,
290
Letter rulings:
And determination letters:
EXEMPT ORGANIZATIONS—Cont.
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,113
Qualified nonprofit health insurance issuers, procedures
(RP 11) 7,368
And general information letters, procedures (RP 4) 1,125
Exemption application determination letter rulings under sec-
tions 501, 509, 4940, and 4942 (RP 10) 2,273
Exemption application determination letter rulings under sec-
tions 501 and 521 (RP 9) 2,261
User fees, request for letter rulings (RP 8) 1,235; correction
(Ann 7) 6,367
Public inspection of material relating to tax-exempt organiza-
tions (TD 9581) 17,798
Procedures for charitable trusts to obtain Type III supporting or-
ganization classification rulings (Ann 12) 12,562
Proposed Regulations:
26 CFR 1.501(c)(29)–1, added; application for recognition as
a 501(c)(29) organization (REG–135071–11) 12,561
Regulations:
26 CFR 1.1501(c)(29)–1T, added; application for recognition
as a 501(c)(29) organization (TD 9574) 12,559
26 CFR 301.6104(a)–1, revised; 301.6110–1, amended; pub-
lic inspection of material relating to tax-exempt organiza-
tions (TD 9581) 17,798
Revocations (Ann 15) 15,794;(Ann18)16,845; (Ann 20) 18,
876
Technical advice to IRS employees (RP 5) 1,169
GIFT TAX
Furnishing identifying number of tax return preparer
(REG–124791–11) 15,791
Guidance under sections 642 and643 (income ordering rules)
(TD 9582) 18,868
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Proposed Regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–124791–11) 15,791
Regulations:
26 CFR 1.642(c)–3, amended; 1.643(a)–5, amended; guid-
ance under sections 642 and 643 (income ordering rules)
(TD 9582) 18,868
26 CFR 301.7623, amended; rewards and awards for infor-
mation relating to violations of internal revenue laws (TD
9580) 17,801
Rewards and awards for information relating to violations of in-
ternal revenue laws (TD 9580) 17,801
Technical Advice Memoranda (TAMs) (RP 2) 1,92
INCOME TAX
Adequate notice revenue procedure renewal (RP 15) 7,369
April 30, 2012vi2012–18 I.R.B.

INCOME TAX—Cont.
Advance Pricing Agreement Program (APA) 2011 (Ann 13) 16,
805
Allocation and apportionment of interest expense (TD 9571) 11,
468; (REG–113903–11) 11,486
Application of the segregation rules to small shareholders
(REG–149625–10) 2,279
Basis reporting by securities brokers and basis determination for
debt instruments and options (REG–102988–11) 4,326
Bonds, national and area median gross income figures guidance
for 2012 (RP 16) 10,452
Changes affecting tax year 2011 filing of information returns
(Ann 6) 6,366
Conduit financing arrangements (TD 9562) 5,339
Continuing education provider and accrediting organization (RP
12) 2,275
Corporate reorganization, guidance on the measurement of con-
tinuity of interest (TD 9565) 8,378; (REG–124627–11) 8,417
Credits:
Iowa credit disaster relief (Notice 7) 4,308
New markets tax credit (TD 9560) 4,299
Reimbursements under section 1603 of American Recovery
and Reinvestment Tax Act (ARRTA) of 2009 (Notice 23)
11,485
Low-income housing credit:
2012 population figures used for calculations (Notice 22)
13,576
Work opportunity tax credit (WOTC) (Notice 13) 9,492
Current refundings of tax-exemptbonds in certain disaster relief
bond programs (Notice 3) 3,289
Damages received on account of personal physical injuries or
physical sickness (TD 9573) 12,498
Deduction for energy efficient commercial building property
(Notice 26) 17,847
Definition of a taxpayer (TD 9576) 15,723
Depreciation, 2012 limitation ondeductions for passenger auto-
mobiles (RP 23) 14,712
Determination of housing cost amounts eligible for exclusion or
deduction for 2012 (Notice 19) 10,440
Disciplinary actions involvingattorneys, certified public ac-
counts, enrolled agents, and enrolled actuaries (Ann 8) 7,373
Dividend equivalents from sources within the United States (TD
9527) 11,474; (REG–120282–10) 11,487
Electronic filing of K–1s (RP 17) 10,453
Equitable relief under section 66(c) or section 6015(f) (Notice 8)
4,309
Ex parte communications between appeals and other Internal
Revenue Employees (RP 18) 10,455
Extension of time to file estate tax return to elect portability of
a deceased spousal unused exclusion amount under section
2010(c) (Notice 21) 10,450
Foreign earned income exclusion, 2011 update (RP 21) 11,484
Foreign tax credit splitting events (TD 9577) 15,730;
(REG–132736–11) 15,793
Forms:
W-2 and W-3, general rules and specifications, correction to
RP2011–62(Ann17)18,
876
INCOME TAX—Cont.
W-2c and W-2c, general rules and specifications (RP 22) 17,
853
1097, 1098, 3921, 3922, 5498, 8935, and W-2, requirements
for filing electronically; correction to Rev. Proc. 2011–40
(Ann 2) 2,285
Furnishing identifying number of tax return preparer
(REG–124791–11) 15,791
Gross income, exclusions, restitution payments under the Traf-
ficking Victims Protection Act of 2000 (Notice 12) 6,365
Guidance priority list (Notice 25) 15,789
Guidance regarding deduction and capitalization of expen-
ditures related to tangible property (TD 9564) 14,614;
(REG–168745–03) 14,718
Guidance regarding foreign base company sales income (TD
9563) 6,354
Guidance regarding the repeal of section 163(f)(2)(B) (Notice
20) 13,574
Guidance under section 267(f), deferral of loss on transactions
(TD 9583) 18,866
Guidance under sections 642 and643 (income ordering rules)
(TD 9582) 18,868
Health savings accounts (HSAs),Indian health service (Notice
14) 8,411
Information reporting by passport applicants (Ann 11) 13,611
Insurance tax, insurance companies, interest rate tables (RR 6) 6,
349
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January (RR 2) 3,286
February (RR 7) 6,362
March (RR 9) 11,478; correction (RR 12) 15,748
April (RR 11) 14,686
Rates:
Underpayment and overpayments, quarter beginning:
April 1, 2012 (RR 8) 13,563
Letters rulings:
And determination letters, areas which will not be issued
from:
Associate Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,113
Associate Chief Counsel (International) (RP 7) 1,232
And information letters issued byAssociate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1
Maximum vehicle values, special valuation rules, 2012 (RP 13)
3,295
Nonconventional source fuel credit, 2011 section 45K inflation
adjustment factor, section 45K reference price (Notice 30) 18,
874
Physical inspection pilot program (Notice 18) 10,438
Procedure for obtaining automatic consent to change to
the method of accounting provided in sections 1.162–3T,
1.162–4T, 1.263(a)–1T, 1.263(a)–2T, and 1.263(a)–3T (TD
9564) for taxable years beginning on or after January 1, 2012
(RP 19) 14,689
2012–18 I.R.B.viiApril 30, 2012

INCOME TAX—Cont.
Procedure for obtaining automatic consent to change to the
method of accounting providedin sections 1.167(a)–4T,
1.168(i)–1T, 1.168(k)–7T, and1.168(i)–8T (TD 9564) for
taxable years beginning on or after January 1, 2012 (RP 20)
14,700
Proposed Regulations:
26 CFR 1.162–3T, –4T, –11T, added; 1.165–2T, added;
1.167(a)–4T, –7T, –8T, added; 1.263(a)–1T, –2T, –3T, –6T,
added; 1.263A–1T, added; 1.1016–3T, added; 1.162–11,
amended; 1.165–2, amended; 1.167(a)–7, –8, amended;
1.168(i)–0, –1, amended; 1.263(a)–0, amended; 1.1016–3,
amended; 1.162–6, removed; 1.162–3, –4, revised;
1.167(a)–4, revised, 1.263(a)–1, –2, –3, revised; guidance
regarding deduction and capitalization of expenditures
relating to tangible property (REG–168745–03) 14,614
26 CFR 1.275–7, revised; treasury inflation-protected securi-
ties issued at a premium (REG–130777–11) 5,347
26 CFR 1.368–1, amended; corporate reorganizations,
guidance on the measurement of continuity of interest
(REG–124627–11) 8,417
26 CFR 1.382–3, amended; application of section 382 seg-
regation rules to small shareholders (REG–149625–10) 2,
279
26 CFR 1.469–0, amended; 1.469–5, –5T, –9, revised; mate-
rial participation of limited partners (REG–109369–10) 9,
434
26 CFR 1.482–7, amended; use of differential income stream
as an application of the income method and as a consider-
ation in assessing the best method (REG–145474–11) 11,
497
26 CFR 1.704–1, amended; 1.909–0 thru 6, added; foreign tax
credit splitting events (REG–132736–11) 15,793
26 CFR 1.861–9, –11, revised; allocation and apportionment
of interest expense (REG–113903–11) 11,488
26 CFR 1.863–7, amended; 1.871–15, –16, added; 1.881–2,
added; 1.892–3, added; 1.894–1, added; 1.1441–2, –3, –4,
–6, –7, amended; 1.1461.1, amended; dividend equivalents
from sources within the United States (REG–120282–10)
11,489
26 CFR 1.6038D–0 thru –8, added; reporting of specified for-
eign financial assets (REG–130302–10) 8,412
26 CFR 1.6045–1, amended; 1.6045A–1, amended;
1.6045B–1, amended; basis reporting by securities brokers
and basis determination for debt instruments and options
(REG–102988–11) 4,326
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–124791–11) 15,791
Publications:
1141, general rules and specifcations for Forms W-2 and W-3,
correction to RP 2011–62 (Ann 17) 18,876
1187, specifications for filing Form 1040–S, foreign person’s
U.S. source income subject to withholding, electronically;
correction (Ann 6) 6,366
1220, specifications for filing Forms 1097, 1098, 3921, 3922,
5498, 8935, and W-2 electronically; correction to Rev.
Proc. 2011–40 (Ann 2) 2,285; correction (Ann 6) 6,366
INCOME TAX—Cont.
1223, general rules and specifications for Forms W-2c and
W-3c (RP 22) 17,853
1239, specifications for filing Form 8027, employer’s annual
information return of tip income and allocated tips, elec-
tronically; correction (Ann 6) 6,366
Recurring item exception (RR 1) 2,255
Regulations:
26 CFR 1.45D–1, added; 1.45D–1, amended; new markets
tax credit (TD 9560) 4,299
26 CFR 1.104–1, revised; damages received on account of
personal physical injuries or physical sickness (TD 9573)
12,498
26 CFR 1.267(f)–1, amended guidance under section 267(f),
deferral of loss on transactions (TD 9583) 18,866
26 CFR 1.275–7T, added; treasury inflation-protected securi-
ties issued at a premium (TD 9561) 5,341
26 CFR 1.367(a)–1, –1T, amended; 1.482–0, –1, –2, –4, –5,
–8, –9, amended; 1.482–0T, –1T, –2T, –4T, —7T, –8T, –9T,
removed; 1.482–7, added; 1.861–17, amended; 1.6662–6,
amended; 301.7701–1, amended; 602.101, revised; section
482, methods to determine taxable income in connection
with a cost sharing arrangement (TD 9568) 12,499
26 CFR 1.368–1, amended; 1.368–1T, removed; corporate
reorganizations, guidance on the measurement of continuity
of interest (TD 9565) 8,378
26 CFR 1.482–7, amended; 1.482–7T, added; use of differen-
tial income stream as an application of the income method
and as a consideration in assessing the best method (TD
9569) 11,465
26 CFR 1.642(c)–3, amended; 1.643(a)–5, amended; guid-
ance under sections 642 and 643 (income ordering rules)
(TD 9582) 18,868
26 CFR 1.704–1, amended; 1.704–1T, added; 1.909–0T,
–2T. –3T, –4T, –5T, –6T, added; foreign tax credit splitting
events (TD 9577) 15,730
26 CFR 1.706–1, amended; 1.901–2, amended; definition of
a taxpayer (TD 9576) 15,723
26 CFR 1.861–9T, amended; 1.1.861–11T, amended; reduc-
tion of foreign tax credit limitation categories under section
904(d) (TD 9571) 11,471
26 CFR 1.863–7, amended; 1.863–7T, added; 1.871–15T,
added; 1.871–16T, added; 1.881–2, amended; 1.881–2T,
added; 1.1441–2, –3, –4, –7, amended; 1.144–2T, –3T, –4T,
–7T, added; 1.1461–1, amended; 1.1461–1T, added; divi-
dend equivalents from sources within the United States (TD
9572) 11,471
26 CFR 1.863–10, added; 1.863–10T, removed; source of in-
come from qualified fails charges (TD 9579) 16,796
26 CFR 1.881–3, amended; conduit financing arrangements
(TD 9562) 5,339
26 CFR 1.954–3, amended; 1.954–3T, removed; guidance re-
garding foreign base company sales income (TD 9563) 6,
354
26 CFR 300.0, amended; 300.12, revised; 300.13, added; user
fee to take the registered tax return preparer competency
examination (TD 9559) 2,252
April 30, 2012viii2012–18 I.R.B.

INCOME TAX—Cont.
26 CFR 901.11, amended; regulations governing the perfor-
mance of actuarial services under the Employee Retirement
Income Security Act (ERISA)of 1974; correction (Ann 4)
4,335; correction (Ann 5) 5,348
26 CFR 1.6038D–0T, thru –8T, added; reporting of specified
foreign financial assets (TD 9567) 8,395
26 CFR 301.6109–1, amended; updating of employer identi-
fication numbers (REG–135491–10) 17,803
26 CFR 1.6695–2, revised; tax return preparer penalties under
section 6695 (TD 9570) 11,479
26 CFR 301.7623, amended; rewards and awards for infor-
mation relating to violations of internal revenue laws (TD
9580) 17,801
Regulations governing the performance of actuarial services un-
der the Employee Retirement Income Security Act (ERISA) of
1974; correction (Ann 4) 4,335; correction (Ann 5) 5,348
Reporting of specified foreign financial assets (TD 9567) 8,395;
(REG–130302–10) 8,412
Rewards and awards for information relating to violations of in-
ternal revenue laws (TD 9580) 17,801
Revocations, exempt organizations (Ann 15) 15,794;(Ann18)
16,845; (Ann 20) 18,876
Safe harbor reporting:
Eligible REMICs required to report on Schedule Q informa-
tion with respect to REMIC assets (Notice 5) 3,291
Guidance for REIT investing in certain REMIC regular and
residual interests (RP 14) 3,296
Section 304 transactions (Notice 15) 9,495
Section 482, methods to determine taxable income in connection
with a cost sharing arrangement (TD 9568) 12,499
Source of income from qualified fails charges (TD 9579) 16,796
Standard industry fare level (SIFL) (RR 10) 14,614
Standard mileage rates, 2012 (Notice 1) 2,260
Student loan bonds (Ann 14) 14,721
Substitute forms, W-2c and W-3c, general rules and specifica-
tions (RP 22) 17,853
Tax return preparer penalties under section 6695 (TD 9570) 11,
479
Technical Advice Memoranda (TAMs) (RP 2) 1,92
Transitional relief for section 6045B issuer returns and state-
ments for 2011 organizational actions (Notice 11) 5,346
Treasury inflation-protected securities issued at a premium (TD
9561) 5,341; (REG–130777–11) 5,347
Updating of employer identification numbers (REG–135491–10)
17,803
Use of differential income streamas an application of the income
method and as a consideration in assessing the best method
(TD 9569) 11,465; (REG–145474–11) 11,497
User fee to take the registered tax return preparer competency
examination (TD 9559) 2,252
SELF-EMPLOYMENT TAX
Furnishing identifying number of tax return preparer
(REG–124791–11) 15,791
SELF-EMPLOYMENT TAX—Cont.
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1
Proposed Regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–124791–11) 15,791
Technical Advice Memoranda (TAMs) (RP 2) 1,92
2012–18 I.R.B.ixApril 30, 2012

April 30, 20122012–18 I.R.B.

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