us-irs-notices-irb-2013-50-pdf•Internal Revenue Bulletin 2013-50 (PDF rendition): IRS Notices
Internal Revenue Bulletin 2013-50 (PDF rendition): IRS Notices
us-irs-notices-irb-2013-50-pdfInternal Revenue Bulletin 2013-50 (PDF rendition): IRS NoticesGuidance
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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. INCOME TAX Rev. Rul. 2013–26, page 628. Federal rates; adjusted federal rates; adjusted federal long- term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for December 2013. EMPLOYEE PLANS T.D. 9641, page 622. These final regulations contain amendments relating to certain cash or deferred arrangements under section 401(k) and matching contributions and employee contributions under sec- tion 401(m). These regulations provide guidance on permitted mid-year reductions or suspensions of safe harbor nonelective contributions in certain circumstances for amendments ad- opted after May 18, 2009. These regulations also revise the requirements for permitted mid-year reductions or suspen- sions of safe harbor matching contributions for plan years beginning on or after January 1, 2015. EMPLOYMENT TAX T.D. 9646, page 630. REG–146620 –13, page 674. Temporary and proposed regulations under section 3402(p)(3) relating to voluntary withholding agreements allow the Secretary to issue guidance in the Internal Revenue Bulletin to describe payments for which the Secretary finds that income tax withhold- ing under a voluntary withholding agreement would be appropri- ate. The proposed regulations also clarify that existing regulations under section 3402(p) apply to voluntary withholding agreements between employers and employees. Comments on the proposed regulations are requested by February 25, 2014. Notice 2013–77, page 632. Under this notice, dividends and other distributions made by an Alaska Native Corporation to its shareholders are eligible for voluntary withholding under section 3402(p)(3)(B) of the Code and § 31.3402(p)–1T of the Employment Tax Regulations. ADMINISTRATIVE Notice 2013–78, page 633. This notice proposes for public comment a revision to the procedures for requesting assistance from the U. S. compe- tent authority under the provisions of an income, estate, or gift tax treaty to which the United States is a party. Comments are requested by March 10, 2014. Notice 2013–79, page 653. This notice requests comments from the public on a proposed revision to Rev. Proc. 2006–9, the procedural guidance to taxpayers on filing advance pricing agreement (“APA”) requests and on the administration of APAs. Comments are requested by March 10, 2014. Finding Lists begin on page ii. Bulletin No. 2013–50 December 9, 2013 The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en- force the law with 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. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of internal management are not published; however, statements of inter- nal 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, identify- ing 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.—1986 Code. This part includes rulings and decisions based on provisions of the Internal 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, Legisla- tion 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 Sec- retary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbar- ment and 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 contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. December 9, 2013Bulletin No. 2013–50 Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 Section 42.—Low-Income Housing Credit The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 280G.—Golden Parachute Payments Federal short-term, mid-term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change The adjusted applicable federal long-term rate is set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 401.—Qualified Pension, Profit-Sharing, and Stock Bonus Plans T.D. 9641 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 Reduction or Suspension of Safe Harbor Contributions AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Final Regulations. SUMMARY: This document contains amendments to regulations relating to cer- tain cash or deferred arrangements under section 401(k) and matching contributions and employee contributions under section 401(m). These regulations provide guid- ance on permitted mid-year reductions or suspensions of safe harbor nonelective contributions in certain circumstances for amendments adopted after May 18, 2009. These regulations also revise the require- ments for permitted mid-year reductions or suspensions of safe harbor matching contributions for plan years beginning on or after January 1, 2015. The regulations affect administrators of, employers main- taining, participants in, and beneficiaries of certain defined contribution plans that satisfy the nondiscrimination tests of sec- tion 401(k) and section 401(m) using one of the design-based safe harbors. DATES:Effective Date: These regula- tions are effective on November 15, 2013. Applicability Date: These regulations generally apply to amendments adopted after May 18, 2009. The amendments to the requirements for permitted mid-year reductions or suspensions of safe harbor matching contributions apply for plan years beginning on or after January 1, 2015. FOR FURTHER INFORMATION CONTACT: William D. Gibbs at (202) 622-6060 (not a toll-free number). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collection of information con- tained in these final regulations has been reviewed and approved by the Office of Management and Budget for review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545-2191. The collection of information in these final regulations is in §1.401(k)–3(g)(2) and §1.401(m)– 3(h)(2). Thecollection of information relates to the new supplemental noticerequirements in the case of a reduction or suspension of safe harbor nonelective or matching con- tributions and the requirement to include additional information in the notice re- quired by §§1.401(k)–3(d), 1.401(k)–3(g), and 1.401(m)–3(h) for certain plans that would be permitted to reduce or suspend safe harbor nonelective or matching con- tributions for a plan year even if the em- ployer had not experienced a business hardship. The likely recordkeepers are businesses and other for-profit institu- tions, nonprofit institutions, and State and local governments. An agency may not conduct or spon- sor, and a person is not required to re- spond to, a collection of information un- less it displays a valid control number assigned by the Office of Management and Budget. Books or records relating to a collec- tion of information must be retained as long as their contents may become mate- rial in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Background This document contains amendments to regulations under sections 401(k) and 401(m) of the Internal Revenue Code. Section 401(k)(1) provides that a profit- sharing, stock bonus, pre-ERISA money purchase, or rural cooperative plan will not fail to qualify under section 401(a) merely because it contains a qualified cash ordeferredarrangement.Section 1.401(k)–1(a)(2) defines a cash or de- ferred arrangement (CODA) as an ar- rangement under which an eligible em- ployee may make a cash or deferred election with respect to contributions to, or accruals or other benefits under, a plan that is intended to satisfy the requirements of section 401(a). Contributions that are made pursuant to a cash or deferred elec- tion under a qualified CODA are com- monly referred to as elective contribu- tions. In order for a CODA to be a qualified CODA, it must satisfy a number of re- quirements. For example, contributions under the CODA must satisfy either the nondiscrimination test set forth in section 401(k)(3), called the actual deferral per- centage (ADP) test, or one of the design- based alternatives in section 401(k)(11), 401(k)(12), or 401(k)(13). Under the ADP test, the average percentage of compensa- tion deferred for eligible highly compen- sated employees (HCEs) is compared to the average percentage of compensation December 9, 2013Bulletin No. 2013–50 622 deferred for eligible nonhighly compen- sated employees (NHCEs), and, if certain deferral percentage limits are exceeded with respect to HCEs, corrective action must be taken. Section 401(k)(12) provides a design- based safe harbor method under which a CODA is treated as satisfying the ADP test if the arrangement meets certain con- tribution and notice requirements. A plan satisfies this designed-based safe harbor method if the employer makes specified qualifiedmatchingcontributions (QMACs) for all eligible NHCEs. The employer can make QMACs under a basic matching formula that provides for QMACs on behalf of each eligible NHCE equal to 100% of the employee’s elective contributions that do not exceed 3% of compensation, and 50% of the employee’s elective contributions that exceed 3% but do not exceed 5% of compensation. Alter- natively, the employer can make QMACs under an enhanced matching formula that provides, at each rate of elective contribu- tions, for an aggregate amount of QMACs that is at least as generous as under the basic matching formula, but only if the rate of QMACs under the enhanced matching formula does not increase as the employee’s rate of elective contributions increases. In lieu of QMACs, the plan is permitted to provide qualified nonelective contributions (QNECs) equal to 3% of compensation for all eligible NHCEs. In addition, under the design-based safe har- bor methods, notice must be provided to each eligible employee, within a reason- able period before the beginning of the plan year, of the employee’s rights and obligations under the plan. Section 401(k)(13), as added by sec- tion 902 of the Pension Protection Act of 2006, Public Law 109 –280 (PPA ’06), provides an alternative design-based safe harbor for a CODA that provides for au- tomatic contributions at a specified level and meets certain requirements, including employer contribution and notice require- ments. Similar to the design-based safe harbor under section 401(k)(12), section 401(k)(13) provides an employer the choice between satisfying a matching con- tribution requirement or a nonelective contributionrequirement.Underthe matching contribution requirement, the employer can make matching contribu- tions under a basic matching formula that provides for matching contributions on behalf of each eligible NHCE equal to 100% of the employee’s elective contri- butions that do not exceed 1% of compen- sation and 50% of the employee’s elective contributions that exceed 1% but do not exceed 6% of compensation. Alterna- tively, the employer can make matching contributions under an enhanced matching formula that provides, at each rate of elec- tive contributions, for an aggregate amount of matching contributions that is at least as generous as under the basic matching formula, but only if the rate of matching contributions under the en- hanced matching formula does not in- crease as the employee’s rate of elective contributions increases. In addition, the plan must satisfy a notice requirement un- der section 401(k)(13) that is similar to the notice requirement under section 401(k)(12). Section 401(m) sets forth a nondis- crimination requirement that applies to a plan providing for matching contributions or employee contributions. Such a plan must satisfy either the nondiscrimination test set forth in section 401(m)(2), called the actual contribution percentage (ACP) test, or one of the design-based alterna- tives in section 401(m)(10), 401(m)(11), or 401(m)(12). The ACP test in section 401(m)(2) is comparable to the ADP test in section 401(k)(3). Under section 401(m)(11), a defined contribution plan is treated as satisfying the ACP test with respect to matching contributions if the plan satisfies the ADP safe harbor of section 401(k)(12) and cer- tain other requirements are satisfied. Sim- ilarly, under section 401(m)(12), as added by section 902 of PPA ’06, a defined contribution plan that provides for auto- matic contributions at a specified level is treated as meeting the ACP test with re- spect to matching contributions if the plan satisfies the ADP safe harbor of section 401(k)(13) and certain other requirements are satisfied. Final regulations under sections 401(k) and 401(m) were published on December 29,2004.Sections1.401(k)–3and 1.401(m)–3 set forth the requirements for asafeharborplanundersections 401(k)(12) and 401(m)(11), respectively. On February 24, 2009, final regulations reflectingsections401(k)(13)and 401(m)(12) were published in theFederal Register(74 FR 8200). Sections1.401(k)–3(e)(1)and 1.401(m)–3(f)(1) provide that, subject to certain exceptions, a safe harbor plan must be adopted before the beginning of the plan year and be maintained throughout a full 12-month plan year. Accordingly, if, at the beginning of the plan year, a plan contains an allocation formula that in- cludes safe harbor matching or safe harbor nonelective contributions, then the plan may not be amended to revert to ADP or ACP testing for the same plan year (ex- cept to the extent permitted under §§1.401(k)–3 and 1.401(m)–3). Sections 1.401(k)–3(g) and 1.401(m)–3(h) set forth the requirements (including a notice and timing requirement) that must be satisfied in order for a plan that satisfies the ADP and ACP tests using safe harbor matching contributions to be amended during the plan year to reduce or suspend such con- tributions and to satisfy ADP and ACP tests using the current year testing method.Sections1.401(k)–3(f)and 1.401(m)–3(g) set forth the requirements that must be satisfied (including a notice requirement) in order for a plan to be amended after the first day of the plan year to provide that it will satisfy the ADP and ACP tests for that year using safe harbor nonelective contributions, effec- tive as of the first day of that plan year. Sections 1.401(k)–3(e)(4) and 1.401(m)– 3(f)(4) provide that, if a plan terminates during a plan year, the plan will not fail to satisfy the requirements of §§1.401(k)– 3(e)(1) and 1.401(m)–3(f)(1) merely be- cause the final plan year is less than 12 months, provided that the plan satisfies the requirementsof§§1.401(k)–3and 1.401(m)–3 through the date of termina- tion and certain other conditions are sat- isfied (for example, the termination is in connection with a transaction described in section 410(b)(6)(C) or the employer in- curs a substantial business hardship (com- parable to a substantial business hardship described in section 412(d)). 1 1 The definition of substantial business hardship in section 412(d) was relocated to become part of section 412(c) by section 111 of PPA ’06. Bulletin No. 2013–50December 9, 2013 623 On May 18, 2009, proposed regula- tions under sections 401(k) and 401(m) were published in theFederal Register (74 FR 23134), which would permit the mid-year reduction or suspension of safe harbor nonelective contributions in certain circumstances. Written comments were received on the proposed regulations, and a public hearing was held September 23, 2009. After consideration of the com- ments, these final regulations adopt the provisions of the proposed regulations with certain modifications, the most sig- nificant of which are highlighted in the Summary of Comments and Explanation of Revisions. Summary of Comments and Explanation of Revisions The proposed regulations would have required, as a condition of the permitted reduction or suspension of safe harbor nonelective contributions, that the em- ployer incur a substantial business hard- ship (comparable to a substantial business hardship described in section 412(c)). Several commentators requested that the substantial business hardship requirement be eliminated as a condition of the reduc- tion or suspension. The commentators ar- gued that there were insufficient policy reasons for the rules permitting the reduc- tion or suspension of safe harbor nonelec- tive contributions to be stricter than the rules permitting the reduction or suspen- sion of safe harbor matching contribu- tions, that the determination of whether the employer satisfies each of the ele- ments of the section 412(c) definition of substantial business hardship is unneces- sarily burdensome, and that employers will not have certainty that they satisfy the substantial business hardship require- ments. Thefinalregulationsmaketwo changes in response to these concerns about demonstrating compliance with the requirement that the employer incur a sub- stantial business hardship (comparable to a substantial business hardship described in section 412(c)). First, the requirement has been modified by replacing the stan- dard in the proposed regulations that the employer have a substantial business hardship (as described in section 412(c)) with a standard that the employer be op- erating at an economic loss as described in section 412(c)(2)(A). This new standard eliminates the requirement to determine the health of the industry (as described in section 412(c)(2)(B) and (C)) or whether the reduction or suspension of safe harbor nonelective contributions is needed so that the plan will continue (as described in section 412(c)(2)(D)). Second, the final regulations permit an employer to reduce or suspend safe harbor nonelective contri- butions without regard to the financial condition of the employer if notice is pro- vided to participants before the beginning of the plan year which discloses the pos- sibility that the contributions might be re- duced or suspended mid-year. The notice must also provide that a supplemental no- tice will be provided to plan participants if a reduction or suspension does occur and that the reduction or suspension will not apply until at least 30 days after the sup- plemental notice is provided. These regu- lations do not alter the existing ability of a safe harbor plan to use a contingent notice (as described in §1.401(k)–3(f)(2)) before the beginning of the plan year where the contingent notice indicates that the plan may be amended during the plan year to include safe harbor nonelective contribu- tions and that, if the plan is amended, a follow-up notice will be provided. In order to achieve uniformity between the rules that apply to a mid-year reduc- tion or suspension of safe harbor matching contributions and the rules that apply to a mid-year reduction or suspension of safe harbor nonelective contributions, the final regulations modify the rules that apply to mid-year amendments reducing or sus- pending safe harbor matching contribu- tions so that the requirements that apply to a mid-year reduction or suspension of safe harbor nonelective contributions are not stricter than those that apply to a mid-year reduction or suspension of safe harbor matching contributions. Thus, safe harbor matching contributions may be reduced or suspended under a mid-year amendment only if either (i) the employer is operating at an economic loss as described in sec- tion 412(c)(2)(A), or (ii) the notice pro- vided to participants before the beginning of the plan year discloses that the contri- butions might be reduced or suspended mid-year, that participants will receive a supplemental notice if that occurs, and that the reduction or suspension will not apply until at least 30 days after the sup- plemental notice is provided. Because this requirement is a new limitation on the ability of an employer to amend its plan to reduce or suspend safe harbor matching contributions, the change is first effective for plan years beginning on or after Jan- uary 1, 2015. 2 The final regulations also provide that guidance of general applicability pub- lished in the Internal Revenue Bulletin (see §601.601(d)(2)(ii)(b)) may set forth additional situations in which a plan that includes provisions satisfying the require- ments of §1.401(k)–3 will not fail to sat- isfy the requirements of section 401(k) for a plan year even if the plan is amended during the plan year to implement a mid- year change to those provisions. This will provide the IRS with greater flexibility to develop rules to address special circum- stances under which a mid-year change to a section 401(k) safe harbor plan is appro- priate, such as an amendment to the plan in connection with a mid-year corporate transaction. This flexibility also extends to mid-year changes to a safe harbor plan under section 401(m) of the Code. Under the proposed regulations, the re- duction or suspension of safe harbor non- elective or matching contributions could not be effective “earlier than the later of 30 days after eligible employees are pro- vided the supplemental notice...andthe date the amendment is adopted.” The final regulations clarify the intention that the reduction or suspension cannot be effec- tive earlier than the later of the date the amendment is adopted or 30 days after eligible employees are provided the sup- plemental notice. Thus, the minimum 30- day waiting period applies solely with re- spect to the date the supplemental notice is provided and not the date the amend- ment is adopted. The preamble to the proposed regula- tions stated that a plan that is amended dur- ing the plan year to reduce or suspend safe 2 The preamble to the proposed regulations indicated that the IRS and Treasury were considering adding a requirement that employers provide advance notice regarding the possibility of reduced or suspended safe harbor contributions. December 9, 2013Bulletin No. 2013–50 624 harbor contributions (whether nonelective contributions or matching contributions) must prorate the otherwise applicable com- pensation limit under section 401(a)(17) in accordance with the requirements of §1.401(a)(17)–1(b)(3)(iii)(A). Some com- mentators asked for clarification as to how these rules apply. Such an explanation of the application of the rules of section 401(a)(17) is beyond the scope of these section 401(k) and (m) regulations. Some commentators requested that the regulations permitting a mid-year amend- ment reducing or suspending safe harbor nonelective contributions apply with respect to amendments adopted before the proposed regulations were published in the Federal Register. Because the regulations in effect before the proposed regulations were pub- lished clearly prohibited such a plan amend- ment, any employer that adopted such a plan amendment violated the rules applicable un- der section 401(k) and, if applicable, section 401(m). The Employee Plans Compliance Resolution System (EPCRS) provides a method to correct such a violation. See Ap- pendixA.05(2)(d)(iii)ofRev.Proc. 2013–12 (2013– 4 I.R.B. 313, 367), see §601.601(d)(2). Applicability Dates These regulations generally apply to amendments adopted after May 18, 2009, the effective date previously provided in the proposed regulations. The amendments to the requirements for permitted mid-year re- ductions or suspensions of safe harbor matching contributions apply for plan years beginning on or after January 1, 2015. Special Analyses It has been determined that these final regulations are not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It has also been determined that 5 U.S.C. 533(b) of the Administrative Proce- dure Act (5 U.S.C. chapter 5) does not apply to these regulations. It is hereby certified that the collection of information in these final regulations will not have a significant economic impact on a substantial number of small entities. This certification is based upon the fact that small employers that take advantage of the provisions in these regula- tions will likely see a modest reduction in the cost of providing pensions to their em- ployees. Therefore, an analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding these regulations was submitted to the Chief Counsel of Advocacy of the Small Business Administration for comment on its impact on small business. Drafting Information The principal authors of these regula- tions are William D. Gibbs and Pamela R. Kinard, Office of Division Counsel/Asso- ciate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and Treasury De- partment participated in the development of these regulations. ***** 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 is amended by revising the sectional authority for § 1.401(k)–3 to read as fol- lows: Authority: 26 U.S.C. 7805*** Section 1.401(k)–3 is also issued under 26 U.S.C. 401(m)(9). Par. 2. Section 1.401(k)– 0 is amended by revising the entries for §1.401(k)– 3(g), (g)(1) and (g)(2) to read as follows: §1.401(k)– 0. Table of contents. ***** §1.401(k)–3 Safe harbor requirements. ***** (g) Permissible reduction or suspen- sion of safe harbor contributions. (1) General rule. (i) Matching contributions. (ii) Nonelective contributions. (2) Supplemental notice. ***** Par. 3. Section 1.401(k)–3 is amended by: 1. Revising the second sentence in para- graph (e)(1). 2.Revisingparagraphs(e)(4)(i)and (e)(4)(ii). 3.Revising paragraph (g). The revisions read as follows: §1.401(k)–3 Safe harbor requirements. ***** (e)***(1)***Inaddition, except as provided in paragraph (g) of this section or in guidance of general applicability published in the Internal Revenue Bulletin (see §601.601(d)(2)(ii)(b) of this chapter), a plan which includes provisions that sat- isfy the rules of this section will not sat- isfy the requirements of §1.401(k)–1(b) if it is amended to change such provisions for that plan year.*** ***** (4)*** (i) The plan would satisfy the require- ments of paragraph (g) of this section, treat- ing the termination of the plan as a reduction or suspension of safe harbor contributions, other than the requirements of paragraph (g)(1)(i)(A) or (g)(1)(ii)(A) of this section (relating to the employer’s financial condi- tion and information included in the initial notice for the plan year) and paragraph (g)(1)(i)(D) or (g)(1)(ii)(D) of this section (requiring that employees have a reasonable opportunity to change their cash or deferred elections and, if applicable, employee con- tribution elections); or (ii) The plan termination is in connec- tion with a transaction described in sec- tion 410(b)(6)(C) or the employer incurs a substantial business hardship comparable to a substantial business hardship de- scribed in section 412(c). ***** (g)Permissible reduction or suspension of safe harbor contributions—(1)General rule—(i)Matching contributions. A plan that provides for safe harbor matching con- tributions intended to satisfy the require- ments of paragraph (c) of this section for a plan year will not fail to satisfy the require- ments of section 401(k)(3) merely because the plan is amended during the plan year to reduce or suspend safe harbor matching contributions on future elective contribu- tions (and, if applicable, employee contribu- tions) provided that— Bulletin No. 2013–50December 9, 2013 625 (A) In the case of plan years beginning on or after January 1, 2015, the employer either— (1) Is operating at an economic loss as described in section 412(c)(2)(A) for the plan year; or (2) Includes in the notice described in paragraph (d) of this section a statement that the plan may be amended during the plan year to reduce or suspend safe harbor matching contributions and that the reduc- tion or suspension will not apply until at least 30 days after all eligible employees are provided notice of the reduction or suspen- sion; (B) All eligible employees are pro- vided a supplemental notice that satisfies the requirements of paragraph (g)(2) of this section; (C) The reduction or suspension of safe harbor matching contributions is effective no earlier than the later of the date the amendment is adopted or 30 days after eligible employees are provided the sup- plemental notice described in paragraph (g)(2) of this section; (D) Eligible employees are given a rea- sonable opportunity (including a reason- able period after receipt of the supplemen- tal notice) prior to the reduction or suspension of safe harbor matching con- tributions to change their cash or deferred elections and, if applicable, their em- ployee contribution elections; (E) The plan is amended to provide that the ADP test will be satisfied for the entire plan year in which the reduction or suspen- sion occurs using the current year testing method described in §1.401(k)–2(a)(2)(ii); and (F) The plan satisfies the requirements of this section (other than this paragraph (g)) with respect to amounts deferred through the effective date of the amendment. (ii)Nonelective contributions. For amendments adopted after May 18, 2009, a plan that provides for safe harbor non- elective contributions intended to satisfy the requirements of paragraph (b) of this section for the plan year will not fail to satisfytherequirementsofsection 401(k)(3) merely because the plan is amended during the plan year to reduce or suspend safe harbor nonelective contribu- tions provided that— (A) The employer either— (1) Is operating at an economic loss, as described in section 412(c)(2)(A) for the plan year; or (2) Includes in the notice described in paragraph (d) of this section a statement that the plan may be amended during the plan year to reduce or suspend safe harbor non- elective contributions and that the reduction or suspension will not apply until at least 30 days after all eligible employees are pro- vided notice of the reduction or suspension; (B) All eligible employees are pro- vided a supplemental notice that satisfies the requirements of paragraph (g)(2) of this section; (C) The reduction or suspension of safe harbor nonelective contributions is effec- tive no earlier than the later of the date the amendment is adopted or 30 days after eligible employees are provided the sup- plemental notice described in paragraph (g)(2) of this section; (D) Eligible employees are given a rea- sonable opportunity (including a reason- able period after receipt of the supplemen- tal notice) prior to the reduction or suspension of nonelective contributions to change their cash or deferred elections and, if applicable, their employee contri- bution elections; (E) The plan is amended to provide that the ADP test will be satisfied for the entire plan year in which the reduction or sus- pension occurs using the current year test- ing method described in §1.401(k)– 2(a)(2)(ii); and (F) The plan satisfies the requirements of this section (other than this paragraph (g)) with respect to safe harbor compen- sation paid through the effective date of the amendment. (2)Supplemental notice. The supple- mental notice requirement of this para- graph (g)(2) is satisfied if each eligible employee is given a notice (in writing or such other form as prescribed by the Com- missioner) that explains— (i) The consequences of the amend- ment that reduces or suspends future safe harbor contributions; (ii) The procedures for changing their cash or deferred elections and, if applicable, their employee contribution elections; and (iii) The effective date of the amend- ment. ***** Par. 4. Section 1.401(m)– 0 is amended by revising the entries for §1.401(m)– 3(h), (h)(1) and (h)(2), and adding entries for §1.401(m)–3(h)(1)(i) and (h)(1)(ii), to read as follows: §1.401(m)– 0 Table of contents. ***** §1.401(m)–3 Safe harbor requirements. ***** (h) Permissible reduction or suspen- sion of safe harbor contributions. (1) General rule. (i) Matching contributions. (ii) Nonelective contributions. (2) Supplemental notice. ***** Par. 5. Section 1.401(m)–3 is amended by: 1. Revising the second sentence in para- graph (f)(1). 2.Revisingparagraphs(f)(4)(i)and (f)(4)(ii). 3.Revising paragraph (h). The revisions read as follows: §1.401(m)–3 Safe harbor requirements. ***** (f)***(1)***Inaddition, except as provided in paragraph (h) of this section or in guidance of general applicability published in the Internal Revenue Bulletin (see §601.601(d)(2)(ii)(b) of this chapter), a plan which includes provisions that sat- isfy the rules of this section will not sat- isfy the requirements of §1.401(m)–1(b) if it is amended to change such provisions for that plan year.*** ***** (4)*** (i) The plan would satisfy the require- ments of paragraph (h) of this section, treating the termination of the plan as a reduction or suspension of safe harbor contributions, other than the requirements of paragraph (h)(1)(i)(A) or (h)(1)(ii)(A) of this section (relating to the employer’s financial condition and information in- cluded in the initial notice for the plan year) and paragraph (h)(1)(i)(D) or (h)(1)(ii)(D) of this section (requiring that employees have a reasonable opportunity December 9, 2013Bulletin No. 2013–50 626 to change their cash or deferred elections and, if applicable, employee contribution elections); or (ii) The plan termination is in connec- tion with a transaction described in sec- tion 410(b)(6)(C) or the employer incurs a substantial business hardship, comparable to a substantial business hardship de- scribed in section 412(c). ***** (h)Permissible reduction or suspension of safe harbor contributions—(1)General rule—(i)Matching contributions. A plan that provides for safe harbor matching con- tributions intended to satisfy the require- ments of paragraph (c) of this section for a plan year will not fail to satisfy the require- ments of section 401(m)(2) merely because the plan is amended during the plan year to reduce or suspend safe harbor matching contributions on future elective deferrals (and, if applicable, employee contributions) provided that— (A) In the case of plan years beginning on or after January 1, 2015, the employer either— (1) Is operating at an economic loss as described in section 412(c)(2)(A) for the plan year; or (2) Includes in the notice described in paragraph (e) of this section, a statement that the plan may be amended during the plan year to reduce or suspend safe harbor matching contributions and that the reduc- tion or suspension will not apply until at least 30 days after all eligible employees are provided notice of the reduction or suspension; (B) All eligible employees are pro- vided a supplemental notice that satisfies the requirements of paragraph (h)(2) of this section; (C) The reduction or suspension of safe harbor matching contributions is effective no earlier than the later of the date the amendment is adopted or 30 days after eligible employees are provided the sup- plemental notice described in paragraph (h)(2) of this section; (D) Eligible employees are given a rea- sonable opportunity (including a reason- able period after receipt of the supplemen- tal notice) prior to the reduction or suspension of safe harbor matching con- tributions to change their cash or deferred elections and, if applicable, their em- ployee contribution elections; (E) The plan is amended to provide that the ACP test will be satisfied for the entire plan year in which the reduction or suspension oc- curs using the current year testing method de- scribed in §1.401(m)–2(a)(2)(ii); and (F) The plan satisfies the requirements of this section (other than this paragraph (h)) with respect to amounts deferred through the effective date of the amendment. (ii)Nonelective contributions. For plan amendments adopted after May 18, 2009, a plan that provides for safe harbor nonelec- tive contributions intended to satisfy the re- quirements of paragraph (b) of this section will not fail to satisfy the requirements of section 401(m)(2) for the plan year merely because the plan is amended during the plan year to reduce or suspend safe harbor non- elective contributions provided that— (A) The employer either— (1) Is operating at an economic loss as described in section 412(c)(2)(A) for the plan year; or (2) Includes in the notice described in paragraph (e) of this section a statement that the plan may be amended during the plan year to reduce or suspend safe harbor nonelective contributions and that the re- duction or suspension will not apply until at least 30 days after all eligible employ- ees are provided notice of the reduction or suspension; (B) All eligible employees are pro- vided a supplemental notice that satisfies the requirements of paragraph (h)(2) of this section; (C) The reduction or suspension of safe harbor nonelective contributions is effec- tive no earlier than the later of the date the amendment is adopted or 30 days after eligible employees are provided the sup- plemental notice described in paragraph (h)(2) of this section; (D) Eligible employees are given a rea- sonable opportunity (including a reason- able period after receipt of the supplemen- tal notice) prior to the reduction or suspension of nonelective contributions to change their cash or deferred elections and, if applicable, their employee contri- bution elections; (E) The plan is amended to provide that the ACP test will be satisfied for the entire plan year in which the reduction or suspen- sion occurs using the current year testing method described in §1.401(m)–2(a)(2)(ii); and (F) The plan satisfies the requirements of this section (other than this paragraph (h)) with respect to safe harbor compen- sation paid through the effective date of the amendment. (2)Supplemental notice. The supplemen- tal notice requirement of this paragraph (h)(2) is satisfied if each eligible employee is given a notice that satisfies the require- ments of §1.401(k)–3(g)(2). ***** Beth Tucker, Deputy Commissioner for Operations Support. Approved June 17, 2013 Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). (Filed by the Office of the Federal Register on November 14, 2013, 8:45 a.m., and published in the issue of the Federal Register for November 15, 2013, 78 F.R. 68735) Section 412.—Minimum Funding Standards The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 467.—Certain Payments for the Use of Property or Services The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Bulletin No. 2013–50December 9, 2013 627 Section 482.—Allocation of Income and Deductions Among Taxpayers Federal short-term, mid-term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 483.—Interest on Certain Deferred Payments The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 642.—Special Rules for Credits and Deductions Federal short-term, mid-term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 807.—Rules for Certain Reserves The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 846.—Discounted Unpaid Losses Defined The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 1274.— Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.) Rev. Rul. 2013–26 This revenue ruling provides various pre- scribed rates for federal income tax pur- poses for December 2013 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable federal rates (AFR) for the current month for pur- poses of section 1274(d) of the Internal Rev- enue Code. Table 2 contains the short-term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of section 1288(b). Ta- ble 3 sets forth the adjusted federal long- term rate and the long-term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low-income housing credit described in section 42(b)(1) for buildings placed in ser- vice during the current month. However, under section 42(b)(2), the applicable per- centage for non-federally subsidized new buildings placed in service after July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2014, shall not be less than 9%. Table 5 contains the federal rate for determining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of sec- tion 7520. Finally, Table 6 contains the 2014 interest rate for sections 846 and 807. REV. RUL. 2013–26 TABLE 1 Applicable Federal Rates (AFR) for December 2013 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term AFR.25%.25%.25%.25% 110% AFR.28%.28%.28%.28% 120% AFR.30%.30%.30%.30% 130% AFR.33%.33%.33%.33% Mid-term AFR1.65%1.64%1.64%1.63% 110% AFR1.81%1.80%1.80%1.79% 120% AFR1.98%1.97%1.97%1.96% 130% AFR2.14%2.13%2.12%2.12% 150% AFR2.48%2.46%2.45%2.45% 175% AFR2.89%2.87%2.86%2.85% Long-term AFR3.32%3.29%3.28%3.27% 110% AFR3.65%3.62%3.60%3.59% 120% AFR3.99%3.95%3.93%3.92% 130% AFR4.33%4.28%4.26%4.24% December 9, 2013Bulletin No. 2013–50 628 Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 3402.—Income Tax Collected at Source Dividends and other distributions made by an Alaska Native Corporation to its shareholders are eligible for voluntary withholding under section 3402(p)(3)(B) of the Internal Revenue Code (Code) and § 31.3402(p)-1T of the Employment Tax Regu- lations. See Notice 2013–77 on page 632. Section 3402.—Income Tax Collected at Source Temporary and proposed regulations under sec- tion 3402(p)(3) relating to voluntary withholding agreements allow the Secretary to issue guidance in the Internal Revenue Bulletin to describe payments for which the Secretary finds that income tax with- holding under a voluntary withholding agreement would be appropriate. The proposed regulations also clarify that existing regulations under section 3402(p) apply to voluntary withholding agreements between employers and employees. See T.D. 9646 on page 630 and REG–146620 –13 on page 674. REV. RUL. 2013–26 TABLE 2 Adjusted AFR for December 2013 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term adjusted AFR.25%.25%.25%.25% Mid-term adjusted AFR1.57%1.56%1.56%1.55% Long-term adjusted AFR3.32%3.29%3.28%3.27% REV. RUL. 2013–26 TABLE 3 Rates Under Section 382 for December 2013 Adjusted federal long-term rate for the current month3.32% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.)3.50% REV. RUL. 2013–26 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for December 2013 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2014, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit7.57% Appropriate percentage for the 30% present value low-income housing credit3.25% REV. RUL. 2013–26 TABLE 5 Rate Under Section 7520 for December 2013 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest2.0% REV. RUL. 2013–26 TABLE 6 Rates Under Sections 846 and 807 Applicable rate of interest for 2014 for purposes of sections 846 and 8071.79% Bulletin No. 2013–50December 9, 2013 629 Section 3402.—Income Tax Collected at Source T.D. 9646 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 31 Authority for Voluntary Withholding on Other Payments AGENCY:Internal Revenue Service (IRS), Treasury. ACTION: Temporary regulations. SUMMARY:This document contains tem- porary regulations under the Internal Reve- nue Code (Code) relating to voluntary with- holding agreements. The regulations allow the Secretary to issue guidance in the Inter- nal Revenue Bulletin to describe payments for which the Secretary finds that income tax withholding under a voluntary withhold- ing agreement would be appropriate. The text of these temporary regulations also serves as the text of the proposed regula- tions set forth in the notice of proposed rulemaking on this subject in this issue of the Bulletin. These temporary regulations affect persons making and persons receiving payments for which the IRS issues subse- quent guidance authorizing the parties to enter into voluntary withholding agreements. DATES:Effective Date: These regula- tions are effective on November 27, 2013. Applicability date: For date of applica- bility, see §31.3402(p)–1T(d). FOR FURTHER INFORMATION CONTACT:Linda L. Conway-Hataloski at (202) 317-6798 (not a toll-free number). SUPPLEMENTARY INFORMATION: Background Section 3402(p) allows for voluntary income tax withholding agreements. Sec- tion 3402(p)(3) authorizes the Secretary to provide regulations for withholding from (A) remuneration for services performed by an employee for the employee’s em- ployer which does not constitute wages, and (B) from any other payment with re- spect to which the Secretary finds that withholding would be appropriate, if the employer and employee, or the person making and the person receiving such other type of payment, agree to such with- holding. Section 3402(p)(3) also autho- rizes the Secretary to prescribe in regula- tions the form and manner of such agreement. Section 31.3402(p)–1 of the Employment Tax Regulations describes how an employer and an employee may enter into an income tax withholding agreement under section 3402(p) for amounts that are excepted from the defi- nition of wages in section 3401(a). Explanation of Provisions These temporary regulations under sec- tion 31.3402(p)–1T allow the Secretary to describe other payments subject to volun- tary withholding agreements in guidance to be published in the Internal Revenue Bulle- tin (IRB). The temporary regulations also provide that the IRB guidance will set forth requirements regarding the form and dura- tion of the voluntary withholding agreement specific to the type of payment from which withholding is authorized. Expanding the use of voluntary with- holding agreements to payments designated by the Secretary as eligible for voluntary withholding will permit taxpayers to use the withholding regime (rather than the esti- mated tax payment process) to meet their tax payment obligations on a timely basis, minimize the risk of underpayment of taxes, and achieve administrative simplification for taxpayers and the IRS. 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 Or- der 13563. Therefore, a regulatory assess- ment is not required. It also has been determined that section 553(b) of the Ad- ministrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regula- tions. For the applicability of the Regula- tory Flexibility Act (5 U.S.C. chapter 6), refer to the cross-reference notice of pro- posed rulemaking published elsewhere in this Bulletin. Pursuant to section 7805(f) of the Code, these regulations have been submitted to the Chief Counsel for Advo- cacy of the Small Business Administra- tion for comment on their impact on small business. Drafting Information The principal author of these regulations is Linda L. Conway-Hataloski, Office of Associate Chief Counsel (Tax Exempt and Government Entities). However, other per- sonnel from the IRS and Treasury Depart- ment participated in their development. ***** Adoption of Amendments to the Regulations Accordingly, 26 CFR part 31 is amended as follows: PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE Paragraph 1. The authority citation for part 31 continues to read in part as fol- lows: Authority: 26 U.S.C. 7805*** Par. 2. §31.3402(p)–1T is added to read as follows: §31.3402(p)–1T Voluntary Withholding Agreements (temporary). (a)–(b) [Reserved] For further guid- ance, see §31.3402(p)–1(a) and (b). (c)Other payments. The Secretary may issue guidance by publication in the Inter- nal Revenue Bulletin (IRB) (which will be available atwww.IRS.gov) describing other payments for which withholding un- der a voluntary withholding agreement would be appropriate and authorizing pay- ors to agree to withhold income tax on such payments if requested by the payee. Requirements regarding the form and du- ration of voluntary withholding agree- ments authorized by this paragraph (c) will be provided in the IRB guidance is- sued regarding specific types of payments. (d)Effective/applicability date. (1) This section applies on and after November 27, 2013. December 9, 2013Bulletin No. 2013–50 630 (2) The applicability of this section ex- pires on November 25, 2016. John Dalrymple, Deputy Commissioner for Services and Enforcement. Approved November 21, 2013 Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). (Filed by the Office of the Federal Register on November 27, 2013, 8:45 a.m., and published in the issue of the Federal Register for November 29, 2013, 78 F.R. 71476) Section 7520.—Valuation Tables The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Section 7872.—Treatment of Loans with Below-Market Interest Rates The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of December 2013. See Rev. Rul. 2013–26, page 628. Bulletin No. 2013–50December 9, 2013 631 Part III. Administrative, Procedural, and Miscellaneous Voluntary Withholding on Dividends and Other Distributions by Alaska Native Corporations Notice 2013–77 PURPOSE Under this Notice, dividends and other distributions made by an Alaska Native Corporation to its shareholders are eligi- ble for voluntary withholding under sec- tion 3402(p)(3)(B) of the Internal Reve- nue Code (Code) and § 31.3402(p)–1T of the Employment Tax Regulations. BACKGROUND The Alaska Native Claims Settlement Act (ANCSA), 43 U.S.C. § 1601,et seq, was enacted as a means to resolve the issue of aboriginal land claims in Alaska.See43 U.S.C. § 1601. The ANCSA required the division of Alaska into geographic regions and the incorporation of a Regional Corpo- ration for each region. 43 U.S.C. §§ 1606(a) and (d). The ANCSA also authorized the incorporation of other corporations, includ- ing Village Corporations, Urban Corpora- tions, and Group Corporations. 43 U.S.C. § 1607. Alaska Native Corporation (ANC) means any Regional, Village, Urban, or Group Corporation. 43 U.S.C. § 1602(m). ANCs are incorporated under the laws of Alaska to conduct business for profit, and are expressly authorized to promote the health, education, and welfare of their share- holders. 43 U.S.C. §§ 1606(d) and (r). To achieve these goals, the ANCSA authorizes the issuance of stock in ANCs to Natives as defined in 43 U.S.C. § 1602(b). The ANCSA permits the Native shareholders to receive dividends and other distributions from the ANCs. 43 U.S.C. §§ 1606(g) and (h)(1)(A)(ii). Section 3402(p) of the Code allows for voluntary income tax withholding agree- ments in certain circumstances. Under sec- tion 3402(p)(3)(B), the Secretary may pre- scribe regulations to allow income tax withholding from any payment which the Secretary finds that withholding would be appropriate if the person making and the person receiving the payment agree to the withholding. The agreement must be in the form and manner that the Secretary pre- scribes. For purposes of the income tax withholding provisions and the related pro- cedural provisions in subtitle F of the Code, payments made during the period for which a voluntary withholding agreement is in ef- fect are treated as if they were wages paid by an employer to an employee. The Internal Revenue Service (IRS) has become aware that ANCs and their shareholders may benefit from the ability to enter into voluntary withholding agree- ments. Specifically, expanding the use of voluntary withholding agreements to div- idends and other distributions made by an ANC to its shareholders will permit the shareholders to use the withholding re- gime (rather than the estimated tax pay- ment process) to meet their tax payment obligations on a timely basis, will mini- mize the risk of underpayment of taxes, and will achieve administrative simplifi- cation for the shareholders and the IRS. Section 31.3402(p)–1T(c), which is ef- fective on November 27, 2013, allows the Secretary to describe payments subject to voluntary withholding agreements in guid- ance to be published in the Internal Revenue Bulletin (IRB). The temporary regulations also provide that the requirements regarding the form and duration of the authorized vol- untary withholding agreements will be pro- vided in the IRB guidance issued regarding specific types of payments. This Notice is guidance meeting the requirements of § 31.3402(p)–1T(c). ANC PAYMENTS SUBJECT TO VOLUNTARY WITHHOLDING An ANC and any shareholder of the ANC may enter into an agreement for voluntary withholding under section 3402(p)(3)(B). Thus, dividends and other distributions paid by an ANC to a shareholder will be subject to voluntary income tax withholding undersec- tion 3402(p)(3)(B) if the shareholder re- quests the withholding and the ANC agrees to withhold. The IRS designates Form W– 4V,Vol- untary Withholding Request, as the form a shareholder of an ANC should use to re- quest income tax withholding from divi- dends or other distributions made to the shareholder by an ANC. Accordingly, a shareholder of an ANC who desires to enter into a voluntary withholding agreement un- der section 3402(p)(3)(B) should furnish the ANC with a completed Form W– 4V. The shareholder should select the applicable per- centage of withholding from those specified on line 6 of the Form W– 4V (currently, 7 percent, 10 percent, 15 percent, or 25 percent). The furnishing of a completed Form W– 4V constitutes a request for withholding. The IRS intends to revise Form W– 4V to specifically reflect the withholding authorized by this Notice. In the interim, shareholders of an ANC may use the current Form W– 4V available atwww.irs.govannotated as appro- priate, or any other written instrument contain- ing the necessary information. No request for withholding under sec- tion 3402(p)(3)(B) is effective as an agreement between an ANC and its share- holder until the ANC indicates to the shareholder that it accepts the request, whether by providing a written notice of acceptance or by commencing withhold- ing. Under section 3403 of the Code, the ANC will be liable for any tax it is re- quired to deduct and withhold pursuant to a voluntary withholding agreement. An agreement under section 3402(p)(3)(B) applies for such period as the ANC and its shareholder mutually agree upon or until either the ANC or the shareholder termi- nate the agreement by furnishing a signed written notice to the other. For purposes of the preceding sentence, a shareholder should submit a revised Form W– 4V to the ANC to effectuate a termination. EFFECTIVE DATE This Notice applies on and after No- vember 27, 2013. DRAFTING INFORMATION The principal author of this Notice is Linda L. Conway-Hataloski of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt & Government En- tities). For questions regarding this No- tice, contact Linda L. Conway-Hataloski at (202) 317-6798 (not a toll-free call). December 9, 2013Bulletin No. 2013–50 632 Proposed Revision of Procedures for Requesting Competent Authority Assistance Under Tax Treaties Notice 2013–78 PURPOSE This notice proposes a revenue procedure that would update and supersede Rev. Proc. 2006 –54, 2006 –2 C.B. 1035. The proposed revenue procedure would provide guidance on requesting assistance from the U.S. competent authority, acting through the Advance Pricing and Mutual Agreement program and the Treaty Assistance and Interpretation Team, under the provisions of U.S. tax treaties. It would also provide guidance on determina- tions the U.S. competent authority may make on competent authority issues. Theproposedrevenueprocedure would substantially restate Rev. Proc. 2006 –54 to improve clarity, readability, and organization. The proposed revenue procedure also would reflect structural changes undertaken by the IRS since 2006, including the establishment of the Large Business & International Division, which currently includes the office of the U.S. competent authority, and of separate offices under the U.S. competent authority to handle taxpayer requests for different types of competent authority assistance. Additionally, the proposed revenue procedure would effect a limited number of significant substantive changes. These changes may be summarized as follows: Section of Proposed Update to Rev. Proc. 2006–54 Nature of Addition or Changes 2.02Clarifies that competent authority issues may arise as a result of taxpayer-initiated positions. 2.05 and 2.06Makes clear that the offices of the U.S. competent authority are available, whether or not in the course of the mutual agreement process, for informal consultations on competent authority-related issues, in- cluding informal consultations regarding the steps necessary to achieve greater certainty that a foreign tax paid, or to be paid, will qualify as a compulsory payment for foreign tax credit purposes. 2.07Recognizes that a mutual agreement case may arise where the U.S. competent authority notifies a for- eign competent authority on a U.S.-initiated case raising competent authority issues. Further recognizes that the U.S. competent authority can expand the scope of a mutual agreement case to include additional treaty countries, competent authority issues, or taxable years. 2.10Elaborates on potential interactions of requests for competent authority assistance and advance pricing agreements. 3.02Provides new pre-filing procedures applicable to mutual agreement cases, including mandatory submis- sion of a pre-filing memorandum in cases raising certain issues. 3.04Clarifies that a request for competent authority assistance generally will not be accepted if barred by tax treaty provisions imposing time limits for seeking assistance. 3.05(1)Establishes an appendix listing standard specifications for the content of a request for competent author- ity assistance in various types of cases. 3.07Specifies that the U.S. competent authority accepts requests for assistance with respect to certain foreign pension plan determinations. 3.08Provides for e-mail communications between the U.S. competent authority and a taxpayer’s representa- tive pursuant to a memorandum of understanding executed by the taxpayer. 4Provides new streamlined procedures for invoking the accelerated competent authority procedure without consent of an office conducting examinations. 5.01Generally subjects small case requests to the same requirements as other requests, subject to case-by- case minimization of administrative burdens. 5.02Increases dollar thresholds for small case qualification to $5,000,000 for a corporation or partnership and $1,000,000 for others. 6.01Clarifies procedures for notification of receipt of a request for competent authority assistance. 6.02(2)Specifies an example of an unreasonable taxpayer condition to acceptance of a competent authority reso- lution, resulting in denial of assistance. 6.02(6)(b) – (d) and 6.02(8) – (12) States additional bases for denying U.S. competent authority assistance. 7Describes various aspects of U.S. competent authority consultations and other actions once a request for assistance is filed, including consultation requirements in treaty limitation-on-benefits provisions, the possibility of requiring withdrawal of a U.S.-initiated adjustment, and taxpayer requests to make a joint presentation to the U.S. and foreign competent authorities. 8.01Specifies that the Simultaneous Appeals Procedure is the primary means for obtaining IRS Appeals and U.S. competent authority review of the same issue. Bulletin No. 2013–50December 9, 2013 633 The IRS and the Treasury Department request comments on this proposed reve- nue procedure. Comments may be submit- ted in writing on or before March 10, 2014. Comments should be submitted to InternalRevenueService,CC:PA: LPD:PR (Notice 2013–78), Room 5205, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically toNotice.Comments@irscounsel.treas. gov. Please include ”Notice 2013–78” in the subject line of any electronic commu- nications. Alternatively, comments may be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LPD:PR (Notice 2013–78), Courier’s Desk, Internal Revenue Service, 1111 Constitution Ave., NW, Washing- ton, DC. All comments will be available for public inspection and copying. Following the issuance of the revenue procedure proposed in this notice, the IRS intends to update Rev. Proc. 2006 –23, 2006 –1 C.B. 900, which provides similar guidance in obtaining competent authority assistance with respect to the U.S. territo- ries. The update to Rev. Proc. 2006 –23 will be generally consistent with the pro- visions of such final revenue procedure. The procedures for requesting compe- tent authority assistance under tax treaties are proposed to be revised as follows: PROPOSED REVENUE PROCEDURE Procedures for Requesting Competent Authority Assistance Under Tax Treaties 26 CFR 601.201: Rulings and determination letters. Rev. Proc. [2014 –XX] SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION................................................. SECTION 2. PURPOSE, BACKGROUND, SCOPE, AND GENERAL APPLICATION................................ SECTION 3. PROCEDURES FOR REQUESTING ASSISTANCE FROM THE U.S. COMPETENT AUTHORITY......... SECTION 4. ACCELERATED COMPETENT AUTHORITY PROCEDURE......................................... SECTION 5. SMALL CASE MAP REQUESTS................................................................ SECTION 6. NOTIFICATION OF RECEIPT AND DENIAL OF ASSISTANCE..................................... SECTION 7. CONSULTATIONS AND OTHER ACTIONS BY THE U.S. COMPETENT AUTHORITY................. SECTION 8. SIMULTANEOUS APPEALS PROCEDURE....................................................... SECTION 9.INTERACTION AND COORDINATION WITH OTHER ADMINISTRATIVE AND JUDICIAL PROCEEDINGS . SECTION 10. RESULTS OF MAP CASE..................................................................... SECTION 11. MAP REPATRIATION........................................................................ SECTION 12. ARBITRATION.............................................................................. SECTION 13. PROTECTIVE CLAIMS........................................................................ SECTION 14. TREATY NOTIFICATIONS.................................................................... SECTION 15. REQUESTS FOR RULINGS.................................................................... SECTION 16. USER FEES................................................................................. SECTION 17. EFFECT ON OTHER DOCUMENTS............................................................ SECTION 18. EFFECTIVE DATE........................................................................... SECTION 19. PAPERWORK REDUCTION ACT.............................................................. SECTION 20. DRAFTING INFORMATION................................................................... APPENDIX.............................................................................................. 8.02Limits the time frame for invoking Simultaneous Appeals Procedure review to within 60 days after notification of acceptance of request for assistance. 9.01Provides that the U.S. competent authority will not accept a request for assistance if the taxpayer has entered into a prior resolution with the IRS office conducting the taxpayer’s examination unless the U.S. competent authority agreed in writing to the prior resolution. 9.02Provides, subject to a limited exception, that the U.S. competent authority will not accept a request for assistance if the taxpayer seeks IRS Appeals review of a competent authority issue. 9.03(1)Clarifies the procedures applicable to accepting, or continuing to consider, a request for U.S. com- petent authority assistance when a matter is pending in litigation. 10.01 and 10.04Describes conditions for finality of resolutions reached by the U.S. competent authority and discusses notification to the taxpayer where no resolution is reached with respect to a foreign-initiated adjustment. 11Restates and revises U.S. competent authority procedures with respect to repatriation payments made in the mutual agreement context. 12Describes basic procedures applicable where a tax treaty contains a provision for mandatory arbitration. 14Provides procedures applicable to required notifications under some treaties that a taxpayer has requested competent authority assistance of the other treaty partner. 16.02Reflects that the amount of the user fee for requests for discretionary relief with respect to limitation on bene- fits has been increased to $27,500.SeeRev. Proc. 2013–1, 2013–1 I.R.B. 1. December 9, 2013Bulletin No. 2013–50 634 SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION .01Definitions.For purposes of this revenue procedure, the following terms have the meanings set forth in this section. ACAPAccelerated competent authority procedure (seesection 4) ACAP requestA request to include ACAP years in a MAP case ACAP yearsTaxable years covered by an ACAP request or eligible for ACAP Ancillary issuesSubsidiary issues eligible for coverage by a MAP resolution, including MAP repatriation (see section 11), interest on refunds and deficiencies, penalties with respect to U.S.-initiated adjust- ments, and the determination of whether a payment is compulsory for foreign tax credit pur- poses as provided in Treas. Reg. §1.901–2(e)(5) APAAn advance pricing agreement within the meaning of Rev. Proc. 2014–YY APA processThe steps involved in the process of reaching an APA, as described in Rev. Proc. 2014–YY APA requestA request for an APA filed under Rev. Proc. 2014–YY APMAThe Advance Pricing and Mutual Agreement Program, a representative office of the U.S. com- petent authority and one of the divisions of TPO ApplicantA taxpayer making a request for discretionary LOB relief Arbitration treatyA U.S. tax treaty in which the mutual agreement procedure article includes a provision for man- datory arbitration of certain MAP cases (seesection 12) Bilateral APAA bilateral APA as defined in Rev. Proc. 2014–YY CodeThe Internal Revenue Code of 1986 (26 U.S.C.), as amended Controlled groupThe group of controlled taxpayers (as that term is defined in Treas. Reg. §1.482–1(i)) of which the taxpayer filing the MAP request is a member Discretionary LOB relief A determination issued by the U.S. competent authority extending treaty benefits to a taxpayer that fails to meet any of the objective tests of an LOB article of a U.S. tax treaty Examination resolutionA resolution with IRS Examination on a U.S.-initiated adjustment that is memorialized in a Fast Track Settlement Session Report, a Form 870 waiver, a Form 870-AD offer, a closing agree- ment, or any other similar agreement Fast Track SettlementThe program set forth in Rev. Proc. 2003–40, 2003–1 C.B. 1044, or successor guidance Foreign competent au- thority The competent authority of a treaty country Foreign pension fundA pension fund that is a resident of a treaty country Foreign-initiated adjust- ment A proposed or final adjustment to a filed tax return made by the tax authority of a treaty country Global trading arrange- ment Any arrangement involving multiple associated enterprises or business unit(s) of an enterprise that operate in more than one country and that trade or deal in securities and/or other financial products, either on their own behalf or on behalf of clients. Global trading arrangements may encompass functions ancillary to the foregoing activities Intangible development arrangement Any arrangement for sharing the costs and risks of developing intangibles, including a cost shar- ing arrangement as defined in Treas. Reg. §1.482–7, a qualified cost sharing arrangement as de- fined in Treas. Reg. §1.482–7A (collectively, a “CSA”), and an arrangement (other than a CSA) for sharing the costs and risks of developing intangibles to which the consideration of the princi- ples, methods, comparability, and reliability considerations set forth in Treas. Reg. §1.482–7 are relevant in determining the best method, under Treas. Reg. §1.482–4(g) or Treas. Reg. §1.482– 9(m)(3), as appropriately adjusted in light of the differences in facts and circumstances between such an arrangement and a CSA.See alsoTreas. Reg. §1.482–1(b)(2)(iii) IRMInternal Revenue Manual IRSInternal Revenue Service IRS ExaminationThefunction(s) within the IRS responsible for examining federal tax and information returns and ascertaining the correctness of any return for purposes of determining the tax liability of taxpayers LB&ILarge Business & International Division of the IRS LOBLimitation on benefits Bulletin No. 2013–50December 9, 2013 635 MAPActions taken by the U.S. competent authority and consultations between the U.S. and foreign com- petent authorities under U.S. tax treaties, principally under the mutual agreement procedure article MAP caseA case initiated by a MAP request or by the U.S. competent authority involving one or more MAP issues in a given MAP year or set of years MAP issueAn issue that can be resolved by the U.S. competent authority, principally under the mutual agree- ment procedure article of a U.S. tax treaty MAP processAll steps in the process of reaching a MAP resolution, including steps to comply with applicable pre-filing requirements MAP repatriationThe treatment of repatriation payments pursuant to a MAP resolution (seesection 11) MAP requestA request for assistance of the U.S. competent authority filed under this revenue procedure MAP resolutionThe resolution of MAP issues constituting a MAP case MAP yearA taxable year for which a tax return has been filed that is not an ACAP year and in which a MAP issue has arisen that is the subject of a MAP case Multilateral APAA multilateral APA as defined in Rev. Proc. 2014–YY Non-U.S.-initiated action A foreign-initiated adjustment or a taxpayer-initiated position Pre-filing conferenceA conference held with the U.S. competent authority before a MAP request is filed Pre-filing memorandumAmemorandum or similar paper submitted to the U.S. competent authority before a MAP request is filed Pre-filing requirementsThe requirements regarding pre-filing memoranda and pre-filing conferences Primary adjustmentAn adjustment falling under the associated enterprises article of a U.S. tax treaty or an analogous adjust- ment made pursuant to a taxpayer-initiated position that is the subject of a MAP case Protective claimA notification to the U.S. competent authority described by section 13.02(1) RegulationsU.S. Treasury regulations promulgated under the Code Repatriation paymentA payment (within the meaning of section 4.01 of Rev. Proc. 99–32, 1999–2 C.B. 296) or a prepayment offset (within the meaning of section 4.02 of Rev. Proc. 99–32) made with respect to and not exceeding the amount of a primary adjustment SAP reviewThe review of a MAP issue undertaken by IRS Appeals for the purpose of making a recommendation to the U.S. competent authority under the Simultaneous Appeals Procedure (seesection 8) Session reportThe Fast Track Settlement Session Report within the meaning of the term set forth in Rev. Proc. 2003–40, 2003–1 C.B. 1044, or successor guidance Small case MAP requestA MAP request involving a U.S.- or foreign-initiated adjustment that falls below the dollar thresholds set forth in section 5 TAITThe Treaty Assistance and Interpretation Team, a representative office of the U.S. competent authority, which reports directly to the Assistant Deputy Commissioner (International) TaxpayerA U.S. person, as defined in section 7701(a)(30) of the Code, or a non-U.S. person eligible to seek com- petent authority assistance when permitted by the applicable U.S. tax treaty Taxpayer-initiated position A position taken by a taxpayer (not in response to a proposed or actual adjustment by the IRS or a similar action by a foreign tax authority) with respect to a tax liability in the United States or in a treaty country that directly or indirectly results in double taxation TPOTransfer Pricing Operations, which reports to the Deputy Commissioner (International), LB&I Treaty countryA country other than the United States that has a U.S. tax treaty in force Treaty notificationThe notification by a taxpayer to a competent authority, required under certain U.S. tax treaties, that a re- quest for competent authority assistance has been made to the other competent authority, in particular such a notification submitted to the U.S. competent authority in the manner and circumstances set forth in sec- tion 14 U.S. competent authorityThe Deputy Commissioner (International), LB&I, the Assistant Deputy Commissioner (International), and each other IRS official performing competent authority functions pursuant to applicable delegation orders U.S. tax treatyA convention governing income, estate, or gift taxes to which the United States is a party and that has entered into force, together with its implementing protocols, exchanges of diplomatic notes, memoranda of understanding, and competent authority arrangements U.S.-initiated adjustmentA proposed or final adjustment made by the IRS to a tax return filed by a taxpayer December 9, 2013Bulletin No. 2013–50 636 .02Section References. Unless indi- cated by context or otherwise, section ref- erences are to the sections of this revenue procedure (including the appendix). .03Deadline References. If a deadline under this revenue procedure falls on a Saturday, Sunday, or a legal holiday in the District of Columbia, the deadline is ex- tended to the next succeeding day that is not a Saturday, Sunday, or a legal holiday in the District of Columbia. SECTION 2. PURPOSE, BACKGROUND, SCOPE, AND GENERAL APPLICATION .01Purpose. This revenue procedure provides guidance on filing MAP requests and guidance on determinations the U.S. competent authority may make on MAP issues. This revenue procedure updates and supersedes Rev. Proc. 2006 –54, 2006 –2 C.B. 1035. .02Background and Scope. U.S. tax treaties, principally through the mutual agreement procedure article, permit tax- payers to request the assistance of the U.S. competent authority in alleviating double taxation or taxation otherwise not in ac- cordance with such treaties. For example, U.S. tax treaties generally permit taxpay- ers to request assistance in order to relieve economic double taxation arising from an allocation under section 482 of the Code or an equivalent provision under the laws of a treaty country. U.S. tax treaties also authorize the U.S. and foreign competent authorities to consult each other to resolve other MAP issues. MAP issues typically arise as a result of U.S.- or foreign- initiated adjustments. MAP issues can also arise as a consequence of taxpayer- initiated positions. For procedures for re- questing assistance of the U.S. competent authority when a taxpayer is or may be subject to inconsistent tax treatment by the IRS and a U.S. possession tax agency, seeRev. Proc. 2006 –23, 2006 –1 C.B. 900 (or successor guidance). .03The U.S. Competent Authority. The DeputyCommissioner(International), LB&I, is the U.S. competent authority. As such, the Deputy Commissioner (Interna- tional) has the authority to apply U.S. tax treaties. The Deputy Commissioner (In- ternational) also has the authority to inter- pret the provisions of U.S. tax treaties, but only with the concurrence of the Associ- ate Chief Counsel (International). The same authority has been delegated to the Assistant Deputy Commissioner (Interna- tional), LB&I.SeeDelegation Order 4 –12 (Rev. 2), IRM 1.2.43. Aspects of this au- thority have been delegated to the direc- tors of the TPO and APMA. .04Roles of APMA and TAIT.In general, the U.S. competent authority endeavors to resolve MAP issues in a manner that secures the appropriate tax bases of the United States and its treaty partners, prevents fiscal evasion, and is otherwise consistent with sound tax administration. The U.S. compe- tent authority comprises APMA and TAIT. APMA has primary responsibility for cases arising under the business profits and asso- ciated enterprises articles of U.S. income tax treaties. TAIT has primary responsibility for cases arising under all other articles of U.S. income tax treaties, including, but not lim- ited to, articles concerning residence, divi- dends, interest, royalties, income from em- ployment,socialsecurity,annuities, pensions and pension funds, other income, and limitation on benefits. TAIT also han- dles cases arising under U.S. estate and gift tax treaties. APMA and TAIT each can con- sider cases arising under the permanent es- tablishment articles of U.S. income tax trea- ties. Regardless of the specific treaty article or MAP issue that may be presented, APMA and TAIT will coordinate and col- laborate as appropriate on any given case. .05Informal Advice Generally.As ap- propriate, APMA and TAIT will provide oral,informaladvicetotaxpayers, whether or not in the course of the MAP process, on general matters concerning MAP issues, including whether a MAP issue may exist. Any such informal advice is advisory and is not binding on the IRS. .06Informal Consultation on Noncom- pulsory Payments for Foreign Tax Credit Purposes. In the course of the MAP process or outside the MAP process, the issue of whether the taxpayer has exhausted all ef- fective and practical remedies to reduce its liability under foreign law for tax (includ- ing, in appropriate cases, a request for com- petent authority assistance) within the meaning of Treas. Reg. §1.901–2(e)(5) and Rev. Rul. 92–75, 1992–2 C.B. 197, may be the subject of informal consultation with the U.S. competent authority. Taxpayers and their advisors must ultimately exercise their independent judgment in developing a posi- tion on the extent to which effective and practical remedies have been exhausted in light of their particular facts and circum- stances. To assist in consideration of this issue, the U.S. competent authority, through the offices of APMA and TAIT, is available to consult on these matters and, when ap- propriate, may provide oral, informal advice regarding necessary next steps. Any such informal advice is advisory and is not bind- ing on the IRS. Further, when appropriate, APMA and TAIT will communicate with IRS Examination regarding these matters to ensure consistent and coordinated treatment. It is intended that, through such consultation processes, taxpayers and the U.S. competent authority can achieve greater insight into mat- ters pertaining to the application and enforce- ment of foreign tax laws. Such consultation processes may also inform the U.S. competent authority in addressing these matters as ancil- lary issues in a MAP resolution. .07General Requirements for MAP Re- quests. The U.S. competent authority will consider the factors set forth in section 6 in determining whether to provide the assis- tance sought by the taxpayer in its MAP request. In no event will the U.S. competent authority provide assistance to the taxpayer unless and until: (1) the taxpayer has met the pre-filing requirements set forth in section 3.02, as applicable; (2) the MAP request as initially filed is complete, as described in section 3.05; and (3) the taxpayer has paid the correct user fee, if required. Where they exist, specific requirements regarding MAP requests set forth in U.S. tax treaties take precedence over the provisions of this rev- enue procedure. .08Scope of MAP Cases. Except as otherwise provided by this revenue proce- dure, law or treaty, the U.S. competent authority will provide assistance with re- spect to MAP issues and treaty countries identified in a taxpayer’s MAP request. However, because the U.S. competent au- thority has a strong interest in resolving all potential MAP issues in a timely man- ner, APMA or TAIT may seek to initiate a MAP case in the absence of a MAP request or may require that the scope of a MAP case be expanded. Examples of such an expansion include adding treaty coun- tries or MAP issues to the scope of the MAP case and extending the MAP case to include ACAP years (seesection 4). Rec- ognizing that foreign competent authori- Bulletin No. 2013–50December 9, 2013 637 ties may have an interest in expediting bilateral or multilateral resolution of MAP issues, the U.S. competent authority under applicable exchange-of-information pro- visions of U.S. tax treaties may also notify foreign competent authorities of MAP cases that could arise out of anticipated U.S.-initiated adjustments. In such cases, the U.S. competent authority will also no- tify the affected taxpayers. .09Closed Cases. A case previously closed after examination will not be re- opened in order to make an adjustment un- favorable to the taxpayer except in the pres- ence of one of the circumstances described in Rev. Proc. 2005–32, 2005–1 C.B. 1206 (providing procedures for reopening cases if fraud, substantial error, or certain other cir- cumstances are present). .10Coordination of MAP and APA Processes. APAs and MAP resolutions are two interconnected means by which taxpayers can manage and address trans- fer pricing and other cross-border tax is- sues. In recognition of these connections, the U.S. competent authority seeks MAP resolutions and APAs that achieve sub- stantive and procedural consistency and coordination in their coverage and appli- cation. In particular, the U.S. competent authority may seek to roll forward a MAP resolution to ACAP years where it is fea- sible, practicable, and in the interest of sound tax administration to do so. Further, in appropriate cases, the U.S. competent authority will encourage taxpayers to ex- tend MAP resolutions to future years that could be covered by an APA. For further discussion of the relationship and inter- sections between the MAP process, the APA process, and ACAP,seeRev. Proc. 2014 –YY. SECTION 3. PROCEDURES FOR REQUESTING ASSISTANCE FROM THE U.S. COMPETENT AUTHORITY .01In General.This section sets forth procedures, rules, and guidelines relevant to filing a MAP request with the U.S. competent authority. Instructions on pre- paring and filing a MAP request are also set forth in the appendix to this revenue procedure (generally referred to as the “appendix”). .02Pre-filing Procedures. (1)In General.In the interest of mak- ing the MAP process effective and effi- cient, the U.S. competent authority in- vites, and in some cases requires, the taxpayer to meet with the U.S. competent authority in a pre-filing conference prior to filing the MAP request. For the same reason, the U.S. competent authority in- vites, and in some cases requires, the tax- payer to submit a pre-filing memorandum prior to filing the MAP request. Pre-filing requirements are set forth in sections 3.02(2) through 3.02(7). Questions about pre-filing requirements may be directed to the U.S. competent authority by one of the means identified in the appendix. (2)Requesting Pre-filing Conferences. A taxpayer that wishes to hold a pre-filing conference with the U.S. competent au- thority must submit its request as a part of a pre-filing memorandum filed pursuant to section 3.02(3) or 3.02(4). (3)Mandatory Pre-filing Memoranda. A pre-filing memorandum must be sub- mitted if the MAP issues will, or could reasonably be expected to, involve any of the following: (a) a foreign-initiated ad- justment in which the total adjustments exceed $10 million for all MAP years combined; (b) a taxpayer-initiated posi- tion; (c) the license or other transfer of intangibles in connection with, or the de- velopment of intangibles under, an intan- gible development arrangement; (d) any arrangement that qualifies as a global trad- ingarrangement;(e)unincorporated branches, pass-through entities, hybrid en- tities, or entities disregarded for U.S. tax purposes; (f) a request for discretionary LOB relief; or (g) other circumstances in which the taxpayer believes a MAP issue has arisen outside the context of an exam- ination, such as in cases involving with- holding taxes or guidance issued by a for- eigntaxauthority.Ifapre-filing memorandum is not submitted in any of the cases described in this section, the U.S. competent authority may, among other possible actions, require that the pre- filing memorandum be submitted before it will take action on the MAP request. (4)Optional Pre-filing Memoranda. An optional pre-filing memorandum may be submitted in cases other than those set forth in section 3.02(3). An optional pre- filing memorandum may be advisable in cases that are expected to present novel or complex MAP issues. (5)Contents of Pre-filing Memoran- dum. Whether submitted pursuant to sec- tion 3.02(3) or 3.02(4), a pre-filing mem- orandum must have a length and content appropriate to the stage, size, and com- plexity of the MAP issues underlying the proposed MAP request. The memoran- dum must also do the following: (a) Include a “penalties of perjury” statement modeled on the statement set forth in the appendix; (b) State whether the taxpayer requests a pre-filing conference and, if so, the particu- lar issues the taxpayer wishes to discuss; (c) Propose at least three possible dates for a pre-filing conference, whether or not the taxpayer seeks a pre-filing conference, in case the U.S. competent authority re- quires a pre-filing conference; (d) List the name and contact informa- tion for the taxpayer’s point of contact and provide a Form 2848,Power of Attorney and Declaration of Representative, autho- rizing the point of contact to represent the taxpayer in connection with the MAP re- quest, or a Form 8821,Tax Information Authorization, authorizing the point of contact to inspect or receive confidential tax information about the taxpayer in con- nection with the MAP request; and (e) In the case of a non-U.S.-initiated action, explain the factual and legal basis of the action and describe any administra- tive, legal, or other procedural steps un- dertaken in the applicable treaty country and any communications with the foreign competent authority regarding the action. (6)Place for Submission of Pre-filing Memorandum. Two printed copies and one electronic copy of the pre-filing mem- orandum must be submitted to APMA or TAIT at the address provided in section 5 of the appendix. (7)Actions Taken with Respect to Pre- filing Conferences and Memoranda. The U.S. competent authority will notify the taxpayer whether it will accept or decline the taxpayer’s request to hold a pre-filing conference. The taxpayer will also be no- tified if a pre-filing conference is required, even if the taxpayer did not request a conference. If a pre-filing conference is held, it will address procedural and sub- stantive issues pertinent to the MAP re- quest. During the conference, the taxpayer should be prepared to discuss the relevant facts and circumstances surrounding the December 9, 2013Bulletin No. 2013–50 638 MAP issues. If the U.S. competent author- ity declines the taxpayer’s request for a pre-filing conference or decides no pre- filing conference is required, it will in- struct the taxpayer to proceed to file its MAP request. (8)Informal Advice in Pre-filing Con- ference. Statements or representations made by the U.S. competent authority in a pre-filing conference constitute informal advice and are, therefore, advisory only (seesection 2.05). .03Persons Eligible or Required to File MAP Requests.The U.S. competent authority will consider MAP requests from taxpayers eligible to file MAP re- quests under U.S. tax treaties. If a case is presented by a foreign competent author- ity and no corresponding MAP request has been filed, the U.S. competent author- ity may require the relevant U.S. taxpayer, if any (or if none, the foreign person), to file a corresponding MAP request in ac- cordance with this section, preceded, if required, by a pre-filing memorandum and a pre-filing conference. .04Time for Filing. (1)In General.Subject to the require- ments regarding pre-filing memoranda and pre-filing conferences under section 3.02, a taxpayer may file a MAP request at the times specified in this section. (2)U.S.-initiated Adjustments.In gen- eral, the U.S. competent authority will not accept a MAP request with regard to a U.S.-initiated adjustment before the IRS has communicated the amount of the pro- posed adjustment in writing to the tax- payer, e.g., a Form 5701 (Notice of Pro- posed Adjustment) or a Form 4549 (Income Tax Examination Changes). A MAP request will not be accepted if the resulting MAP case would be barred by the time limit set forth in the U.S. tax treaty or, if not tolled by the treaty or protectivemeasures,limitationspre- scribed by domestic law in the United States or treaty country. (3)Non-U.S.-initiated Actions.In the case of a non-U.S.-initiated action, the taxpayer may submit its mandatory or op- tional pre-filing memorandum or may file its MAP request as soon as it reasonably believes that a MAP issue exists or is likely to arise. A MAP request will not be accepted if the resulting MAP case would be barred by the time limit set forth in the U.S. tax treaty or, if not tolled by the treaty or by a protective claim or treaty notification (as applicable), limitations prescribed by domestic law in the United States or treaty country (seesections 13 and 14). .05Content and Form of MAP Re- quest. (1)In General.The appendix sets forth the required contents of a MAP request, identifies the order in which such contents should be presented, and provides informa- tion and instructions on other administrative matters relevant to filing the request, includ- ing requirements on translations of docu- ments not in English. The MAP request must comply with the requirements set forth in the appendix before it will be considered complete. Any questions about filing a MAP request not addressed in this section or in the appendix should be directed to APMA or TAIT by one of the means iden- tified in the appendix. (2)MAP Requests Submitted to For- eign Competent Authority.A MAP re- quest filed with the U.S. competent au- thority must include a copy of any request filed by the taxpayer or a member of the controlled group with a foreign competent authority seeking assistance for the same MAP issue. The MAP request must also include a written explanation of the na- ture of any such related request, includ- ing any material differences between the MAP request filed under this revenue procedure and the request filed with the foreign competent authority.See gener- allythe appendix. (3)Requested and Submitted Items. The taxpayer must provide both the U.S. and the foreign competent authority any information or documents requested by or submitted to either competent authority. (4)Corrected and Updated Informa- tion.After the MAP request is filed, any material errors or any material omissions in the initial submission or subsequent submissions must be promptly corrected or remedied. Unless instructed otherwise, the taxpayer must update information and documents submitted in connection with the MAP request on a schedule acceptable to the U.S. competent authority. The tax- payer must also submit any other informa- tion or documents discovered or created during the MAP process that are, or rea- sonably may be, material to the MAP case. .06Additional Requirements and Pro- cedures Applicable to Residency and Dis- cretionary LOB Relief Cases. (1)Residency Cases.U.S. competent authority assistance may be available to dual resident taxpayers (taxpayers resi- dent in both the United States and the treaty country) seeking to determine their sole residence under the treaty. In such circumstances, the U.S. competent author- ity will only accept MAP requests con- cerning questions of residency under U.S. tax treaties if both: (a) the resolution of the residency issue is necessary to avoid double taxation or to determine the appli- cability of a benefit under the treaty; and (b) the issue requires consultation with the foreign competent authority to ensure consistent treatment under the applica- ble treaty. The U.S. competent authority will not unilaterally resolve a question of residency. (2)Discretionary LOB Relief Cases. (a)No Relief Where Applicant Meets Objective Test.Most U.S. tax treaties con- tain an LOB article that enumerates ob- jective tests to determine whether a for- eign resident is a qualified resident of a treaty country eligible for benefits under the applicable U.S. tax treaty. The U.S. competent authority will not issue a deter- mination regarding whether an applicant satisfies these objective LOB tests. In ad- dition, it will not accept a request for discretionary LOB relief if the applicant cannot represent, and explain, as a part of its MAP request, why it does not meet the relevant objective tests.Seesection 2.01 of the appendix for the additional infor- mation applicants are required provide for requests for discretionary LOB relief. (b)Factors Considered.In general, if the applicant’s case is accepted, all facts and circumstances may be considered, in- cluding whether the applicant previously qualified for treaty benefits and the reason for its current disqualification. The re- quired pre-filing memorandum will be useful to determine what additional facts should be included with the actual MAP request. To obtain a favorable determina- tion, the applicant must present facts that demonstrate that it has a sufficient rela- tionship or nexus to the treaty country. Bulletin No. 2013–50December 9, 2013 639 (c)User Fee.Applicants requesting discretionary LOB relief must remit the user fee as provided in section 16 of this revenue procedure as well as comply with the instructions set forth in the appendix. .07Determinations Regarding Foreign Pensions. (1)In General.Several U.S. tax trea- ties contain provisions relating to contri- butions to foreign pension funds. Under these provisions, if certain requirements are satisfied, individuals who perform ser- vices in the United States as employees (and in some cases as independent con- tractors) are allowed to deduct or exclude contributions to a foreign pension fund in computing U.S. taxable income. Some of these tax treaties also allow U.S. citizens who live and work in the treaty country to claim deductions or exclusions for U.S. tax purposes for contributions to a foreign pension fund. Many of these treaties allow U.S. employers a deduction on their U.S. income tax returns for contributions to a foreign pension fund on behalf of employ- ees who perform services in the United States. (2) “Generally Corresponds” Determi- nations.The U.S. tax treaties described in section 3.07(1) provide that benefits are not available unless the U.S. competent authority has determined that the foreign pension plan “generally corresponds” to a pension plan recognized for tax purposes in the United States. In some cases, the treaty negotiators or the competent au- thorities have agreed on lists of types of plans in each country that are understood to generally correspond to a plan recog- nized for tax purposes in the other coun- try. In other cases, however, it will be necessary for an employer, a plan trustee, or an individual plan participant to request a competent authority determination on whether a particular plan “generally cor- responds.” An employer, plan trustee, or individual plan participant seeking such a determination must file a MAP request according to the instructions set forth in the appendix. .08E-mail Communications. A com- plete MAP request must include either an executed memorandum of understanding permitting the U.S. competent authority to communicate with its authorized repre- sentatives through encrypted e-mail or a statement that the taxpayer does not per- mit such e-mail communications and an explanation for its declining to do so.See the appendix. An electronic copy of the standard form memorandum of understand- ing is available on the APMA or TAIT website [link to be included when avail- able]. This paragraph does not apply to in- dividuals or to taxpayers eligible to file small case MAP requests under section 5. SECTION 4. ACCELERATED COMPETENT AUTHORITY PROCEDURE .01In General. Under ACAP, a tax- payer may request that the terms of a MAP resolution for a given taxable period be extended to cover subsequent taxable periods for which it has filed tax returns. Alternatively, the U.S. competent author- ity may act of its own accord to expand the scope of a taxpayer’s MAP case to include ACAP years.Seesections 2.08 and 2.10. .02ACAP Requests.An ACAP request may be included in the MAP request or made subsequently in writing to the U.S. competent authority. An ACAP request must include the information and docu- ments required by section 3.05 for the ACAP years. Whether set forth in the MAP request or in a separate written request, an ACAP request must include the taxpayer’s waiver of its right to written notification from the Secretary under section 7605(b) of the Code of the need for more than one inspection of its books of account and re- cords for taxable years covered by the ACAP request (seethe appendix). .03Rejection of ACAP Requests.The U.S. competent authority may reject an ACAP request: (1) if it is not filed before a MAP resolution is reached between the U.S. and foreign competent authority; (2) if the request does not comply with the requirements of this revenue procedure; or (3) if acting on the request would be in- consistent with sound tax administration, such as when the facts and circumstances of the ACAP years materially differ from those of the MAP years. SECTION 5. SMALL CASE MAP REQUESTS .01In General. In general, the provi- sions and requirements of this revenue procedure apply no differently to small case MAP requests than to other MAP requests. Nevertheless, as appropriate, the U.S. competent authority will endeavor to minimize undue administrative burdens on taxpayers eligible to file small case MAP requests. For taxpayers filing MAP requests with TAIT, requests to be ex- empted from certain of the MAP request content requirements of section 3.05 should be made in advance of filing the MAP request by filing an optional pre- filing memorandum (seesection 3.02) or by contacting TAIT by one of the means identified in section 5 of the appendix. For taxpayers filing MAP requests with APMA, exemptions from certain of the MAP request content requirements are ex- plained in section 1.04 of the appendix. Even if it agrees to exempt the taxpayer from including certain content in the MAP request, the U.S. competent authority may, subsequent to the filing of the MAP request, require the taxpayer to submit any or all of the information required under section 3, as well as any other information or documentation the U.S. competent au- thority determines is needed for its eval- uation of the request. .02Dollar Thresholds. A MAP request qualifies as a small case MAP request if the sum of the U.S.- and foreign-initiated adjustments does not exceed the following dollar thresholds for all of the MAP years combined: Type of TaxpayerThreshold of Proposed Adjustment(s) Corporation/Partnership$5,000,000 Other$1,000,000 December 9, 2013Bulletin No. 2013–50 640 .03Ineligible Requests.IfaMAPre- quest will involve: (1) a taxpayer-initiated position; (2) discretionary LOB relief; or (3) a foreign pension plan determination filed by a person other than an individual plan participant, then such a request will not be exempt under section 5.01 from the generally applicable filing procedures. SECTION 6. NOTIFICATION OF RECEIPT AND DENIAL OF ASSISTANCE .01Notification of Receipt. The U.S. competent authority will notify the tax- payer in writing that it has received the MAP request and that the correct user fee has been paid (if applicable). The letter will also provide the name and contact information of the APMA team leader, TAIT analyst, or the members of the com- bined APMA-TAIT team to which the request has been assigned. In addition, the letter will also state either: (1) that the request is complete and that the MAP process will proceed, together with any administrative or procedural steps the tax- payer must take pertaining to the MAP request; (2) that the request is provision- ally accepted but that the MAP process will not proceed until specified deficien- cies in the request have been addressed; or (3) that the request is rejected and the circumstances, if any, in which the request might be accepted. The U.S. competent authority will also instruct the taxpayer as to other offices within the IRS to which full or partial copies of the MAP request must be provided. .02Denial of Assistance. The U.S. competent authority may deny assistance, in whole or in part, at any point in the MAP process, either at the outset by re- jecting the MAP request or by terminating or suspending the MAP process after it has accepted the MAP request. The U.S. competent authority will generally take such action if any of the following cir- cumstances are present: (1) Based on all of the facts and cir- cumstances known to the U.S. competent authority, providing assistance to the tax- payer would be inconsistent with the U.S. tax treaty under which such assistance is sought; (2) The taxpayer has expressed that it is willing to accept a MAP resolution only under conditions that are unreasonable or prejudicial to the interests of the U.S. gov- ernment, including its refusal to accept a MAP resolution that would encompass ACAP years when the U.S. competent authority has determined that including such years is in the interest of sound tax administration; (3) The issue on which competent au- thority assistance is sought is the same as or similar to an issue considered in eval- uating a prior MAP or bilateral or multi- lateral APA request, where the taxpayer rejected the resulting resolution of the is- sue by the U.S. competent authority and has not changed its position; (4) The taxpayer agreed to or acqui- esced in a foreign-initiated adjustment in- volving significant legal or factual issues without previously having consulted the U.S. competent authority; (5) The taxpayer’s conduct before fil- ing its MAP request or after the MAP process has been initiated has significantly impeded the ability of the IRS to ade- quately examine and address the MAP issues for which assistance has been re- quested or the ability of the U.S. compe- tent authority to resolve the MAP case; (6) The subject matter of the MAP request: (a) includes an issue pending in litigation where a court has declined to sever MAP issues, delay trial, or stay pro- ceedings (seesection 9.03(1)); (b) is pend- ing in a foreign court and such proceeding is likely to impede the conclusion or im- plementation of a MAP resolution; (c) in- cludes an issue and taxable period desig- nated for litigation (seesection 9.03(1)); (d) includes an issue and taxable period pending in a U.S. federal court that was previously considered by IRS Appeals (see section 9.03(1)); (e) is a listed transaction under Treas. Reg. §§1.6011– 4(b)(2) and 301.6111–2(b)(2); (f) is a transaction of in- terest under Treas. Reg. §1.6011-4(b)(6); or (g) involves fraudulent activity by the tax- payer or a member of the controlled group; (7) The taxpayer rejected a request to extend the period of limitations for assess- ment of tax for the taxable periods covered by the MAP request and any ACAP years; (8) The MAP issue was included in a protest to IRS Appeals and was not prop- erly severed from such protest and transi- tioned into a MAP request within 30 days after the opening conference with IRS Ap- peals (seesection 9.02); (9) The MAP issue has been settled pursuant to an examination resolution without prior concurrence of the U.S. competent authority (seesection 9.01); (10) The MAP issues covered by the MAP request cannot be adequately re- solved without the involvement of one or more additional foreign competent author- ities and either the taxpayer fails to coop- erate in seeking the involvement of such additional foreign competent authorities or such competent authorities refuse to participate in multilateral consultations on the MAP case; (11) An adequate resolution of the MAP case would require consideration of issues directly or indirectly involving the taxpayer and members of the controlled group located in non-treaty jurisdictions and the taxpayer fails to disclose such issues in the MAP process (such as in diagrams required of MAP requests filed with APMA;seethe appendix); or (12) In MAP cases involving taxpayer- initiated positions, the request evinces after-the-fact tax planning or fiscal eva- sion or is otherwise inconsistent with sound tax administration. .03No Review of Denial of MAP Re- quest for Assistance. The U.S. competent authority’s decision as to whether a MAP request is complete or to deny, suspend, or terminate assistance is not subject to ad- ministrative review. SECTION 7. CONSULTATIONS AND OTHER ACTIONS BY THE U.S. COMPETENT AUTHORITY .01Non-U.S.-initiated Actions. The U.S. competent authority will evaluate a MAP request involving a non-U.S.-initiated action on the basis of the justification for the action prepared by the foreign competent authority and on the analyses of such justification prepared by the taxpayer and by other IRS offices. After making its evaluation, the U.S. competent authority will proceed in any of several ways. In typical cases involving foreign-initiated adjustments, it will begin consultations with the foreign competent au- thority on the justification for correlative relief and the extent to which such correla- tive relief is warranted. In other cases in- volving foreign-initiated adjustments, the U.S. competent authority may grant correl- ative relief without consultations. Bulletin No. 2013–50December 9, 2013 641 .02U.S.-initiated Adjustments. The U.S. competent authority will address a U.S.-initiated adjustment after evaluating the justification for the adjustment devel- oped by IRS Examination, recommenda- tions (if any) it has received through SAP review, the taxpayer’s views on the ad- justment it sets forth in the MAP request or otherwise provides in the MAP process, and the views of other IRS offices on the adjustment. Once it has made its evalua- tion, the U.S. competent authority will proceed in any of several ways. In most cases, it will begin consultations with the foreign competent authority on the justi- fication for correlative relief and the ex- tent to which such correlative relief is warranted. In other cases, the U.S. com- petent authority may recommend or re- quire that IRS Examination revise or with- draw the U.S.-initiated adjustment. If an adjustment remains after taking into ac- count the U.S. competent authority’s rec- ommendations or requirements, then the U.S. competent authority will continue to work with IRS Examination or the foreign competent authority as applicable. .03Requests for Discretionary LOB Relief.The LOB articles of some U.S. tax treaties require the U.S. or foreign com- petent authority to consult the other before denying a request for discretionary LOB relief. The U.S. competent authority will comply with such consultation require- ments. .04Taxpayer Presentations.The U.S. competent authority will consider requests from, and may invite or require, the tax- payer to make presentations jointly to the U.S. and foreign competent authorities during the MAP process. The U.S. com- petent authority will consult with the for- eign competent authority as to its interest in joint presentations and notify the tax- payer accordingly. SECTION 8. SIMULTANEOUS APPEALS PROCEDURE .01In General. SAP review provides taxpayers with a direct, efficient proce- dure for involving IRS Appeals in the U.S. competent authority’s evaluation of a U.S.-initiated adjustment. It is the only procedure by which a taxpayer may pres- ent a U.S.-initiated adjustment to IRS Ap- peals for its review and retain the possi- bility of obtaining correlative relief for the adjustment with assistance from the U.S. competent authority. SAP review may be requested by the taxpayer. Alternatively, the U.S. competent authority may, in its discretion, initiate SAP review to obtain the views of IRS Appeals on the MAP issues presented in the MAP request. .02Requesting SAP Review. Unless the U.S. competent authority permits other- wise in writing, the request for SAP re- view must be presented in the MAP re- quest or in a separate written submission filed no later than 60 days after the date of the determination letter notifying the tax- payer that the U.S. competent authority has accepted the MAP request (seesection 1.03 for the rule applicable to deadlines). Before filing its submission, a taxpayer may request a pre-filing conference with IRS Appeals and the U.S. competent au- thority to discuss SAP review. Neither arbitration nor mediation procedures that otherwise would be available as part of the IRS Appeals process are available in SAP review.SeeRev. Proc. 2006 – 44, 2006 –2 C.B. 800, and Rev. Proc. 2009 – 44, 2009 –2 C.B. 462. .03Actions with Respect to SAP Re- view. The U.S. competent authority will decide whether to accept or deny the tax- payer’s request for SAP review after con- sulting with IRS Appeals. If the U.S. com- petent authority accepts the request, it will coordinate with IRS Appeals on process and timeframe. In general, IRS Appeals will conduct its review of the MAP issues presented in the MAP request in accor- dance with standard IRS Appeals practice, with the exception that the U.S. competent authority will have the option of partici- pating in meetings held between IRS Ap- peals and the taxpayer. Upon completing its review, IRS Appeals will recommend a U.S. position to the U.S. competent au- thority. If the U.S. competent authority denies the request for SAP review, the taxpayer may request a conference to hear the basis for the decision. .04Termination of SAP Review. The taxpayer, the U.S. competent authority, or the Chief of IRS Appeals may terminate SAP review at any time. Termination of SAP review by the taxpayer will not pre- clude the U.S. competent authority from obtaining the recommendation of IRS Ap- peals on the MAP issues set forth in the MAP request. If SAP review is terminated by the U.S. competent authority or by the Chief of IRS Appeals, the taxpayer may request a conference with either or both parties to hear the basis for such determi- nation. SECTION 9. INTERACTION AND COORDINATION WITH OTHER ADMINISTRATIVE AND JUDICIAL PROCEEDINGS .01Cases under the Jurisdiction of IRS Examination. (1)Examination Resolutions Gener- ally.The U.S. competent authority will accept a MAP request with respect to a U.S.-initiated adjustment memorialized in an examination resolution only if the U.S. competent authority agreed, in writing, to the terms of the examination resolution prior to its execution. A taxpayer may seek such agreement by filing an exami- nation resolution notification with the U.S. competent authority. (2)Fast Track Settlement.In the case of a Fast Track Settlement, the U.S. com- petent authority will accept a MAP re- quest with respect to a U.S.-initiated ad- justment memorialized in a Session report only if: (a) the Fast Track agreement named a representative of the U.S. com- petent authority as a “participant” in the proceeding; and (b) the U.S. competent authority was given a reasonable opportu- nity to participate in all Fast Track Settle- ment meetings with LB&I personnel. (3)Action by U.S. Competent Author- ity.After receiving the examination reso- lution notification and consulting with the taxpayer and IRS Examination as appro- priate, the U.S. competent authority will determine whether it accepts the proposed terms. If it disagrees with the terms, it will request that IRS Examination and the tax- payer amend them accordingly. If the terms are initially acceptable or are amended to its satisfaction, the U.S. com- petent authority will authorize the tax- payer and IRS Examination to execute the examination resolution and will authorize the taxpayer to file a MAP request. The U.S. competent authority will then seek a MAP resolution with the applicable for- eign competent authority, starting from the position in the examination resolution. Most U.S. tax treaties will allow the U.S. competent authority to implement a MAP resolution reached with the foreign com- December 9, 2013Bulletin No. 2013–50 642 petent authority in such cases, even if the terms of the MAP resolution are different from the terms of the prior examination resolution. A minority of U.S. tax treaties, however, may not allow the U.S. compe- tent authority to implement a MAP reso- lution that varies from the terms of the prior examination resolution. (4)Exclusive Jurisdiction.The U.S. competent authority will assume sole ju- risdiction over all MAP issues set forth in a MAP request it has accepted, whether the request is filed pursuant to the proce- dures set forth in this section or otherwise. Any further administrative action by the IRS (e.g., assessment and collection pro- cedures) with respect to any issues under the jurisdiction of the U.S. competent au- thority will be postponed unless the U.S. competent authority instructs otherwise. Normal administrative procedures will continue to apply to issues over which the U.S. competent authority has not assumed jurisdiction. .02Cases Under the Jurisdiction of IRS Appeals. (1)In General.In light of the IRS’s policy governing the availability and use of SAP review, the U.S. competent au- thority will not accept a MAP request regarding MAP issues that have been in- cluded in a protest filed with IRS Appeals unless the following conditions are met: (a) the taxpayer files its MAP request no later than 30 days after its opening con- ference with IRS Appeals (seesection 1.03 for the rule applicable to deadlines); (b) the taxpayer properly severs the MAP issues in its MAP request from the other issues in its protest that will remain under the jurisdiction of IRS Appeals; (c) the taxpayer has not invoked the Appeals Ar- bitration Program or the Appeals Media- tion Program with respect to the MAP issues; and (d) the taxpayer has not exe- cuted a Form 870 waiver, a Form 870-AD offer, a closing agreement, or any other similar agreement concerning such MAP issues. The U.S. competent authority will assume sole jurisdiction over the MAP issues set forth in the MAP request if these conditions are met and if it accepts the request. Standard IRS Appeals pro- cedures will continue to apply to any other issues not set forth in the MAP request. (2)Right of Review by IRS Appeals if MAP Resolution Not Reached or Not Ac- cepted by Taxpayer.Nothing in this rev- enue procedure will abridge a taxpayer’s rights to seek or continue review by IRS Appeals of the MAP issues set forth in its MAP request if: (a) the U.S. competent authority rejects the request or terminates assistance in the MAP case; (b) a MAP resolution is not reached; or (c) the tax- payer does not accept the terms of the MAP resolution. .03Cases in, or Designated for, Litigation. (1)In General.The U.S. competent authority will not accept, and will termi- nate any ongoing consideration of, a tax- payer’s MAP request regarding any MAP issue and taxable period designated for litigation (seesection 6.02(6)(c)), or any MAP issue and taxable period pending in a U.S. federal court that was previously considered by IRS Appeals (seesection 6.02(6)(d)). In other cases where litigation is pending with respect to a taxable period involved in a MAP request, the U.S. com- petent authority, after consultation with the Associate Chief Counsel (Interna- tional), may accept, or continue to con- sider, the MAP request. During the MAP process, a taxpayer may be asked to join the IRS in a motion to sever any MAP issues, delay trial, or stay proceedings pending the outcome of the taxpayer’s MAP case. The Associate Chief Counsel (International) will coordinate the filing of any such motion on behalf of the IRS with, as appropriate, Area Counsel, the Department of Justice, and the taxpayer. Final decision on severing issues, delay- ing trial, or staying proceedings rests with the court. Notwithstanding the foregoing, if the court denies a motion to sever MAP issues, delay trial, or stay proceedings, the U.S. competent authority will terminate any ongoing consideration of the MAP request (seesection 6.02(6)(a)). (2)Effect of Judicial Determinations and Litigation Settlements. A taxpayer may file a MAP request with respect to a U.S. federal court’s final determination of its tax liability. Such final determinations include instances when taxpayers enter into litigation settlements with the Office of Chief Counsel or the Department of Justice. If it accepts such a request, the U.S. competent authority will seek correl- ative relief from the foreign competent authority only for the amount of, and without departing from, such final deter- mination. In such a case, the U.S. compe- tent authority will not authorize MAP re- patriation. SECTION 10. RESULTS OF MAP CASE .01Notification. The outcome of most MAP cases will be a MAP resolution, which may be reached either through di- rect consultations with the foreign compe- tent authority, through arbitration, or oth- erwise. When a tentative MAP resolution is reached during the course of the MAP process, the U.S. competent authority will notify the taxpayer and outline its general terms. Generally, a MAP resolution is not final until it has been reviewed and ap- proved within the office of the U.S. com- petent authority and until the MAP case has been formally closed by both compe- tentauthorities.Forcasesresolved through arbitration,seesection 12. The taxpayer will also be notified if the com- petent authorities have determined that a MAP resolution will not be reached. In that event, the taxpayer may withdraw its MAP request and pursue all rights other- wise available to it (seesection 10.04). .02Implementation.If the taxpayer ac- cepts the terms of the MAP resolution, the U.S. competent authority will direct the relevant offices within the IRS to imple- ment it accordingly. To the extent autho- rized under the applicable U.S. tax treaty, the MAP resolution will be implemented notwithstanding any time limits or other procedural limitations under the Code and regulations. If the taxpayer does not ac- cept the MAP resolution, it may withdraw its MAP request and pursue all rights oth- erwise available to it (seesection 10.04). .03Closing Agreement. When appro- priate, the IRS may request that the tax- payer execute a closing agreement reflect- ing the terms of the MAP resolution. (See Rev. Proc. 68 –16, 1968 –1 C.B. 770 (as modified by Rev Proc. 94 – 67, 1994 –2 C.B. 800)). .04Special Issues Where No MAP Res- olution with Respect to Foreign-initiated Adjustment. In any given MAP case, it is possible that the U.S. and foreign compe- tent authorities will not reach a MAP res- Bulletin No. 2013–50December 9, 2013 643 olution despite their jointly endeavoring in good faith to do so. If such a MAP case involves a foreign-initiated adjustment and arbitration is not available, the tax- payer will be notified in accordance with section 10.01. Such notification may iden- tify the protective measures or other steps the taxpayer must take to establish that amounts paid to the treaty country in con- nection with the foreign-initiated adjust- ment constitute compulsory payments of tax within the meaning of Treas. Reg. §1.901–2(e)(5) and to maintain its eligi- bility for competent authority assistance. Such steps may include the taxpayer’s pursuit of administrative and judicial rem- edies in the treaty country and, if credits are claimed for amounts paid before the contest is resolved, the taxpayer’s agree- ment to extend the U.S. statute of limita- tions on assessment while contesting the foreign-initiated adjustment. SECTION 11. MAP REPATRIATION .01In General. Outside the MAP con- text, Rev. Proc. 99 –32 prescribes specific procedures permitting eligible U.S. tax- payers to make repatriation payments. By following these procedures, U.S. taxpay- ers are able to mitigate adverse collateral tax consequences that may otherwise re- sult from a primary adjustment. In the MAP context, the U.S. competent author- ity may determine whether to grant MAP repatriation under the mutual agreement procedure provision of the governing treaty. MAP repatriation will not apply to any repatriation payments other than those addressed in the MAP resolution. .02Requirements for MAP Repatria- tion. MAP repatriation will be available only if the following conditions are satis- fied: (1) no person (whether or not a “United States taxpayer” within the meaning of Rev. Proc. 99 –32) that will make or re- ceive repatriation payments would be barred from making or receiving repatria- tion payments under the principles of sec- tion 3.01 or 3.03 of Rev. Proc. 99 –32; (2) the request for MAP repatriation is explicitly set forth in the MAP request or in a supplemental written submission filed with the U.S. competent authority prior to a MAP resolution being reached; (3) the primary adjustment giving rise to the application for MAP repatriation is a MAP issue included in a MAP request accepted by the U.S. competent authority; and (4) there has been no closing action (within the meaning of section 5.01(1) of Rev. Proc. 99 –32) taken on the primary adjustment. .03Decision on MAP Repatriation. The U.S. competent authority has sole ju- risdiction to accept or deny a request for MAP repatriation and the terms of such treatment. In no event will the U.S. com- petent authority grant MAP repatriation if: (1) the U.S. competent authority termi- nates assistance with respect to the MAP request pursuant to section 6.02; (2) the MAP request involves issues previously decided in litigation (seesection 9.03(2)); or (3) the taxpayer rejects the MAP reso- lution. .04Terms of MAP Repatriation. The U.S. competent authority will determine the terms of MAP repatriation on a case- by-case basis, taking into account both the principles set forth in Rev. Proc. 99 –32 and its authority under the mutual agree- ment procedure provision of the govern- ing treaty. Thus, for example, in a partic- ular MAP repatriation case, the U.S. competent authority may determine it is appropriate to eliminate or modify the re- quirement for interest set forth in section 4.01(2) of Rev. Proc. 99 –32. .05Rights Retained in Absence of Mu- tual Agreement.The rights that a U.S. taxpayer may have to apply Rev. Proc. 99 –32 in the absence of MAP repatriation are neither abridged nor enhanced by this section or other provisions of this revenue procedure. SECTION 12. ARBITRATION .01In General.The mutual agreement procedure article in arbitration treaties re- quires that the competent authorities refer certain MAP cases to mandatory arbitra- tion in the event direct consultation does not lead to a mutual agreement within a prescribed time period. The mutual agree- ment procedure article in arbitration trea- ties sets forth detailed rules to be followed regarding the resolution of cases that are eligible for arbitration as prescribed by the relevant treaty. This section addresses general procedural issues associated with mandatory arbitration that is undertaken as part of the MAP process. Taxpayers should consult the mutual agreement pro- cedure article under the applicable U.S. tax treaty and any ancillary agreements to determine whether it is an arbitration treaty and the extent to which mandatory arbitration applies under such treaty. .02Commencement Date and the Be- ginning of Arbitration Proceedings. De- termining the “commencement date” un- der an arbitration treaty is important because arbitration begins within a speci- fied time period, typically two years, fol- lowing the commencement date. In gen- eral, the commencement date for a case is the earliest date on which the information necessary to undertake substantive con- sideration for a mutual agreement has been received by both competent author- ities. The U.S. competent authority gener- ally takes the position that it has received information necessary to undertake sub- stantive consideration for a mutual agree- ment only when it has received a complete MAP request as described in this revenue procedure. The U.S. competent authority will notify the U.S. taxpayer when the commencement date is established. .03Non-disclosure Agreement. The ar- bitration proceedings do not begin before the date by which both competent author- ities have received properly executed non- disclosure agreements from all concerned persons, their authorized representatives, and their agents. The U.S. competent au- thority will provide the taxpayer with a form for the non-disclosure agreement. .04Notification of Unsuitability for Ar- bitration.U.S. arbitration treaties allow both competent authorities to agree, at any time prior to the arbitration start date, that a particular case is not suitable for arbi- tration. The U.S. competent authority will notify the taxpayer of any such determi- nation. .05Taxpayer Participation.The tax- payer may submit its analysis and views of the case to the U.S. competent authority to the extent permitted under the applica- ble U.S. tax treaty. .06Notification of Arbitration Panel’s Determination. The U.S. competent au- thority will notify the taxpayer of the ar- bitration panel’s determination. If the tax- payer accepts the arbitration panel’s determination, its terms will constitute a MAP resolution. December 9, 2013Bulletin No. 2013–50 644 .07Other Taxpayer Rights.If a tax- payer rejects the determination of an arbi- tration panel, does not accept the determi- nation within the deadline mandated by the applicable arbitration guidance, or has been notified that a case has been deter- mined not to be suitable for arbitration, it may pursue any rights that remain avail- able under domestic law. SECTION 13. PROTECTIVE CLAIMS .01In General. Most U.S. tax treaties provide that MAP resolutions are to be implemented by the United States and the treaty country notwithstanding any time limits or other procedural limitations un- der domestic law. A minority of U.S. tax treaties may not allow the U.S. competent authority to waive such limitations. In par- ticular cases, domestic barriers may be waived only if a MAP request is accepted and a MAP resolution is reached. In ad- dition, because there are circumstances that may not be under the control of the taxpayer or of the U.S. or foreign compe- tent authority, it is advisable as a general matter for the taxpayer or a related person to take protective measures under applica- ble domestic law to increase the likeli- hood that a MAP resolution in its MAP case can be implemented in both treaty countries and to protect any rights of ac- cess to alternative remedies outside of the MAP process from being barred by ad- ministrative, legal, or procedural barriers. This section sets forth procedures and guidelines for taking such protective mea- sures. .02Protective Claims Generally. (1)In General.A protective claim is made to ensure that time limits or admin- istrative, legal, or procedural barriers un- der the Code or regulations are satisfied to protect the taxpayer’s right to a potential credit or refund in the event that a MAP resolution is reached and to retain the tax- payer’s rights of access to any alternative remedies available to it outside of the MAP process under the Code or regula- tions. A protective claim is distinct from a treaty notification (seesection 14) and does not affect the notification deadline under a given treaty, even though a pro- tective claim and treaty notification may initially be made in the same submission and may be updated annually in the same notification (seesection 14.05). (2)Timing of Protective Claims.Gen- erally, a taxpayer should consider making a protective claim when it has reason to believe that any action of a tax authority has resulted or is likely to result in a MAP issue. However, it may be advisable to make a protective claim at earlier times, for example, when the claim concerns a recurring MAP issue or when the taxpayer is otherwise aware that an adjustment is likely for a given taxable year. A taxpayer may consult with the U.S. competent au- thority to determine when and in what manner it is advisable to make a protec- tive claim. (3)IRC § 6402 Requirements.To be a valid protective claim for credit or refund for purposes of this revenue procedure, the claim must be in writing and meet the requirements of section 6402 of the Code and the regulations thereunder other than therequirementinTreas.Reg. §301.6402–3 to file the claim on the ap- propriate form. Accordingly, a protective claim must, at a minimum: (a) fully advise the IRS of the grounds on which the credit or refund is claimed; (b) contain sufficient facts to apprise the IRS of the exact basis of the claim; (c) describe and identify the contingencies affecting the claim; (d) state the year for which the claim is being made; (e) be verified by written declara- tion made under penalties of perjury; and (f) be filed before the expiration of the applicable period of limitation to which the claim relates. (4)Methods for Making Protective Claims. For purposes of this revenue pro- cedure only, a protective claim for credit or refund may be made in any of the following ways: (a) including the claim in a pre-filing memorandum; (b) including the claim in a MAP request; or (c) filing a letter specifically stating that a protective claim is being made. In conjunction with any of these methods, the taxpayer may, but is not required to, file the form spec- ified in Treas. Reg. §301.6402–3. .03Making Protective Claim in Pre- Filing Memorandum or MAP Request.For the placement of a protective claim within a MAP request,seethe appendix. If the protective claim is made in a pre-filing memorandum, the memorandum must contain a separate section captioned ”Pro- tective Claim Pursuant to Section 13 of Rev. Proc. 2014 –XX”. In that section, the taxpayer must declare that it is making a protective claim prior to filing a potential MAP request regarding the MAP issues set forth in the memorandum. The section must also contain the information de- scribed in section 13.02(3). Any pre-filing memorandum or MAP request submitted after a protective claim is made in the form of a letter (seesection 13.04) should refer to such letter. The U.S. competent authority will notify the taxpayer it has received the protective claim or that the claim made by the taxpayer does not con- stitute a valid protective claim and give instructions as to whether, and how, the claim can be remedied to be valid. .04Making Protective Claim by Letter. (1)In General.There may be situations in which a taxpayer will be unable to submit a pre-filing memorandum or file a MAP request before the applicable period of limitations expires. In such situations, a separate protective claim in the form of a letter should be filed. For example, a letter would be appropriate when a foreign tax authority is considering, but has not yet proposed, an adjustment; a foreign tax authority has proposed an adjustment and administrative or judicial remedies are ex- pected to be pursued in the treaty country before a MAP request is filed; or the terms of the applicable treaty require that noti- fication of a claim be made within a cer- tain time, independent of any action by a tax authority. (2)Filing of Letter.The protective claim letter must be filed in the same place and manner as a pre-filing memorandum or MAP request. If a taxpayer filing a protective claim letter is under examina- tion by the IRS, or if an examination be- gins after the letter is filed, the taxpayer must send a copy of the letter to the IRS office conducting the examination. A tem- plate of a letter suitable for making a protective claim is provided on the APMA website [link to be included when avail- able]. .05Effect of Protective Claim. A pro- tective claim made in the form of a letter, a pre-filing memorandum, or a MAP re- quest that complies with the provisions of this revenue procedure will meet the filing requirements for a valid claim for credit or refund under section 6402 of the Code and the regulations thereunder with respect to the MAP issues set forth in the claim, so Bulletin No. 2013–50December 9, 2013 645 long as it is filed before the expiration of the applicable statutory period of limita- tions for filing claims for credit or refund under the Code. .06Annual Notification Requirement. After initially filing a protective claim let- ter or after making a protective claim in a pre-filing memorandum and before filing its MAP request, the taxpayer must annu- ally notify the U.S. competent authority as to whether it may still file a MAP request. The annual notification must be filed no later than the date on which the taxpayer timely files its tax return for each taxable year ending after the taxable year in which it filed the protective claim (seesection 1.03 for the rule applicable to deadlines). The annual notification must: (1) be titled “AnnualNotificationofProtective Claim”; (2) reference the initial protective claim; (3) contain a declaration that the taxpayer is providing its annual notice of protective claim pursuant to this section 13 and that it is requesting that its protec- tive claim remain active; and (4) where appropriate, update or otherwise correct the information set forth in the protective claim or any subsequent annual notifica- tions. The annual notification must be filed in the same place and manner as a pre-filing memorandum or MAP request. The U.S. competent authority may deny assistance to a taxpayer that fails to pro- vide the annual notification. SECTION 14. TREATY NOTIFICATIONS .01In General.Some U.S. tax treaties require that the competent authority of the country that has not received a formal request for competent authority assistance be notified that such a request has been submitted to the competent authority of the other country. If such notice is not provided within the number of years spec- ified in the treaty, domestic barriers to the implementation of a MAP resolution will not be removed (see, e.g.,United States- Canada Income Tax Convention (1980), Article XXVI(2)). Therefore, a taxpayer seeking assistance of the U.S. competent authority under such a treaty with regard to a foreign-initiated adjustment must sub- mit a treaty notification to the U.S. com- petent authority within the time set forth in the treaty. .02Manner of Notification.For pur- poses of this revenue procedure, a treaty notification to the U.S. competent author- ity may be made as a part of a taxpayer’s MAP request (seethe appendix) or may take the form of a letter to the U.S. com- petent authority. A template of a letter suitable for making a treaty notification is provided on the APMA website [link to be included when available]. .03Taxpayer Responsible for Notifying Foreign Competent Authority.With re- gard to a U.S.-initiated adjustment under such a treaty, the taxpayer must notify the foreign competent authority of its having filed a MAP request with the U.S. com- petent authority. In making such notifica- tion, the taxpayer should follow any ap- plicable procedures prescribed by the treaty country. The U.S. competent au- thority is not responsible for notifying a foreign competent authority that it has re- ceived a MAP request. .04Annual Notification Requirement. Treaty notification in the form of a letter must be updated on an annual basis until a formal MAP request has been filed. The annual notification must be submitted no later than the date on which the taxpayer timely files its tax return for each taxable year ending after the taxable year in which it submitted the treaty notification (see section 1.03 for the rule applicable to deadlines). The annual update must con- tain the following subject line: “Treaty Notification Annual Update under Rev. Proc. 2014 –XX”. The annual update must refer to prior treaty notifications. .05Consolidation of Protective Claim and Treaty Notification.The taxpayer may consolidate an initial protective claim and a treaty notification into a single let- ter, pre-filing memorandum, or MAP re- quest. A template of a letter suitable for consolidating an initial protective claim and treaty notification is provided on the APMA website [link to be included when available]. The taxpayer may also consol- idate an annual protective claim notifica- tion and annual treaty notification in a single letter. In whatever manner such ini- tial or annual notifications are consoli- dated, the taxpayer should ensure that the submission clearly states that it is to serve as both a protective claim and as a treaty notification. SECTION 15. REQUESTS FOR RULINGS .01In General. Requests for advance rulings regarding the interpretation of a tax treaty, as distinguished from MAP re- quests under this revenue procedure, must be submitted to the Associate Chief Coun- sel (International) according to the provi- sions of the applicable revenue procedure governing such submissions.SeeRev. Proc. 2013–1, 2013–1 I.R.B. 1 (or succes- sor guidance), and Rev. Proc. 2013–7, 2013–1 I.R.B. 233. .02Foreign Tax Rulings. Neither the U.S. competent authority nor any other office within the IRS will issue an ad- vance ruling on the effect of the provi- sions of a U.S. tax treaty on the applica- tion of the domestic tax laws of a treaty country. SECTION 16. USER FEES .01In General. Except as otherwise provided in this section 16, no user fee is required for a MAP request. .02Requests for Discretionary LOB Relief. A $27,500 user fee is required for all requests for discretionary LOB relief as described in section 3.06(2).SeeRev. Proc. 2013–1 (or successor guidance). The fee must be paid according to instruc- tions set forth in the letter from the U.S. competent authority to the applicant for- mally informing the applicant it is accept- ing the request. The fee will apply regard- less of whether the request is for an initial determination, a renewal of a previously issued determination, or a supplemental determination. If a MAP request requires discretionary LOB relief for two or more entities, a separate user fee will be charged for each entity. .03Timing of User Fee Charge. Within 30 days of receipt of a complete submis- sion for a request for discretionary LOB relief, the U.S. competent authority will notify the taxpayer whether it accepts or rejects the request for assistance. No user fee will be charged unless and until the U.S. competent authority notifies the tax- payer that it formally accepts the request. If the U.S. competent authority accepts the request, the taxpayer must pay the applicable user fee or fees electronically using the Pay.gov website within 60 days of the notification of the acceptance (see December 9, 2013Bulletin No. 2013–50 646 section 1.03 for the rule applicable to deadlines). Upon receipt of the user fee, the U.S. competent authority will com- mence analysis of the case. .04Refund of User Fee. The U.S. com- petent authority has sole discretion over whether it will, and the circumstances under which it may, refund a user fee. Generally, the U.S. competent authority will not refund a user fee: (1) once it accepts the MAP request and the taxpayer has remitted the user fee, even if the taxpayer subsequently withdraws the request; (2) if the taxpayer fails to submit additional information that has been requested by the U.S. competent authority; or (3) the U.S. competent author- ity ultimately declines to grant discretionary LOB relief. If the U.S. competent authority ultimately declines to grant discretionary LOB relief, after taking into account all the facts and circumstances, including the re- sources devoted to the request, the U.S. competent authority may in its sole discre- tion determine that a refund is appropriate. SECTION 17. EFFECT ON OTHER DOCUMENTS Rev. Proc. 2006 –54, 2006 –2 C.B. 1035, is modified and superseded by this revenue procedure. Rev. Proc. 2003– 40, 2003–1 C.B. 1044, is modified. Rev. Proc. 2014 –YY, is amplified. References in this revenue procedure to Rev. Proc. 99 –32 will be treated as references to Rev. Proc. 65–17, 1965–1 C.B. 833, as modified, amplified, and clarified from time to time, for taxable years beginning before August 24, 1999. SECTION 18. EFFECTIVE DATE This revenue procedure is effective for MAP requests received on or after [DATE]. SECTION 19. PAPERWORK REDUCTION ACT The collection of information con- tained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. § 3507) under control number 1545–2044. An agency may not conduct or spon- sor, and a person is not required to re- spond to, a collection of information un- less the collection of information displays a valid control number. The collection of information in this revenue procedure is in sections 3.02(2) – (6), 3.05, 3.08, 4.02, 5.01, 8.02, 9.01(1), 11.02(2), 13.04, 13.06, and 14.03 – 14.05 and in the appendix. This information is required, and will be used, to evaluate and process the request for competent author- ity assistance. The likely respondents are individuals or business or other for-profit institutions. The estimated total annual reporting and/or recordkeeping burden is 9,000 hours. The estimated annual burden per re- spondent/recordkeeper is 30 hours. The estimated number of respondents and/or recordkeepers is 300. The estimated annual frequency of re- sponses is on occasion. Books or records relating to a collec- tion of information must be retained as long as their contents may become mate- rial in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by section 6103 of the Code. SECTION 20. DRAFTING INFORMATION The principal authors of this revenue procedure are John Hughes, Robert Cole, Rebecca Kalmus, and Anthony Ferrise of the Office of the Deputy Commissioner (International), LB&I; and Michael Skut- ley of the Office of the Associate Chief Counsel (International). For further infor- mation regarding this revenue procedure, contact either Mr. Ferrise at (202) 515- 4349 or Mr. Skutley at (202) 317-5440 (not toll-free calls). APPENDIX This appendix sets forth instructions on preparing and filing a MAP request. Un- less the U.S. competent authority has ex- plicitly instructed the taxpayer otherwise in writing, the MAP request must be pre- pared and submitted according to the in- structions provided in this appendix. The U.S. competent authority may reject a MAP request that does not comply with these instructions. Certain MAP request requirements apply only to MAP requests filed with APMA. Other MAP request re- quirements apply only to MAP requests filed with TAIT. Unless otherwise stated, the MAP request requirements listed in this appendix apply to MAP requests filed with either APMA or TAIT. A complete MAP request must include the general MAP request items as set forth in section 1 of this appendix and, when applicable, the specific MAP request items for discretionary LOB relief and foreign pension plan determinations as set forth in sections 2 and 3, respectively. Instructions on filing printed and elec- tronic copies of MAP requests are set forth in section 4. Section 5 provides ad- dresses and contact information. SECTION 1. GENERAL MAP REQUEST ITEMS .01Overview.General MAP request items must be presented in a cover letter followed by the attachments, presented in the order listed in section 1.03 of this appendix. The cover letter and the attach- ments must contain or respond to the re- quired statements, descriptions, explana- tions, and other requested information. If the requested information is not applica- ble to the MAP request, this must be in- dicated by “N/A.” .02MAP Request Cover Letter. (1)Process.The cover letter must be addressed to the Deputy Commissioner (In- ternational) at the address provided in sec- tion 5 of this appendix. An original of the cover letter, signed and dated by a person having authority to sign the taxpayer’s fed- eral tax returns, must be included in one of the three required printed copies of the MAP request (seesection 4 of this appen- dix). In a case involving a request for either discretionary LOB relief or a foreign pen- sion plan determination where the person requesting relief does not file federal tax returns, the cover letter may be signed and dated by any authorized representative or officer of such person. (2)Content.The cover letter must con- tain an introductory statement that the tax- payer seeks assistance of the U.S. compe- tent authority. The letter then must contain or respond to each of the statements, de- scriptions, explanations, and other re- quested information listed under this sec- tion 1.02, according to the instructions and structure set forth in this section. Bulletin No. 2013–50December 9, 2013 647 Part 1. Identifying Information and Summary of Issues and Proceedings Part 2. MAP Issue(s) 1.1U.S. competent authority office: State the office of the U.S. competent authority – APMA (transfer pricing) or TAIT (non-transfer pricing) – to which the MAP request is directed 1.2Identifying information: List the names, addresses, country of residence for purposes of the treaty, U.S. taxpayer identification number(s), and foreign taxpayer identification number(s) (if any) of the members of the controlled group whose taxable incomes would be affected by a MAP resolution being reached in the taxpayer’s MAP case 1.3Authorization: List the names and contact information for the taxpayer’s point of contact for the U.S competent authority, together with an indication as to which point of contact (if any) has been empowered by a Form 2848, Power of Attorney and Declaration of Representative, or Form 8821,Tax Information Authorization(seeAttach- ments, Tab 1) 1.4IRS Office: Provide the following information: a. For U.S.-initiated adjustments, the IRS office that has made the adjustment, together with the name of and con- tact information for the taxpayer’s IRS Examination team manager; or b. For non-U.S.-initiated actions, the contact information for the IRS office having examination jurisdiction over the taxpayer or U.S. members of the controlled group, together with the name of and contact information for the taxpay- er’s IRS Examination team manager if the taxpayer is under examination when the MAP request is filed 1.5Treaty(ies): Identify the U.S. tax treaty(ies) and articles under which the request is being filed 1.6Summary of MAP issue(s): Provide a summary of the discussion in Part 2.1, setting forth the MAP issue(s) for which assistance is being requested 1.7Years and amounts: Provide the taxable years and amounts at issue, presented in both U.S. dollars and foreign currency, together with the exchange rate(s) that was (were) used for currency conversion during the applicable taxable years 1.8Taxpayer proceedings: Provide a summary of relevant U.S. and foreign judicial or administrative proceedings involving the taxpayer or other members of the controlled group, including all information related to notifications provided to the treaty country(ies) 1.9Other proceedings: To the extent known, provide a summary of relevant foreign judicial or public administrative pro- ceedings not involving the taxpayer or members of the controlled group but concerning a similar MAP issue for which the MAP request is being filed 1.10Statutes of limitations: Provide the expiration dates of applicable statutes of limitations in both the United States and the treaty country(ies) for the taxable years covered by the MAP request 2.1MAP issue(s): Provide a thorough, informative explanation of the MAP issue(s) for which assistance is requested, including, but not limited to, descriptions or discussions of the: a. Relevant transactions, activities, or other circumstances surrounding the MAP issues for which the request is made; b. The taxpayer’s understanding of the legal basis for the adjustment; c. The taxpayer’s view on the justification for assistance under the applicable U.S. tax treaty(ies); and d. Content of any related requests for assistance submitted to the foreign competent authority, together with an explanation of any material differences between the MAP request filed under this revenue procedure and the request filed with the foreign competent authority 2.2Prior U.S. competent authority assistance: State whether or not the MAP issue(s) set forth in the MAP request is (are) the same or similar to an issue(s) considered in a prior MAP or APA request covering the same or prior tax- able years, and, if so, summarize the terms of the resolution of the issue by the U.S. competent authority 2.3Pre-filing information: Provide the following information: a. Whether a mandatory or optional pre-filing memorandum was filed; and b. Whether a pre-filing conference was held and, if so, the date of and attendees at the conference December 9, 2013Bulletin No. 2013–50 648 Part 3. Assistance Requested and Required Statements .03MAP Request Attachments. The MAP request must also include the following attachments after the cover letter, separated and ordered as indicated in this section 1.03. If an attachment in the list below is not applicable to the MAP request, the attachment should indicate this by “N/A.” 3.1Coordination with other proceedings: Provide the following information: a. Whether the taxpayer seeks SAP review; b. Whether and when the taxpayer filed an examination resolution notification pursuant to section 9.01(1) of the revenue procedure and, if so, the date upon which the U.S. competent authority notified the taxpayer of its agreement to the terms of such resolution; and c. The date of any opening conference with IRS Appeals in which the MAP issue(s) in the MAP request was (were) discussed; and the issues, if any, set forth in the taxpayer’s protest that remained within the jurisdiction of IRS Appeals and from which the MAP issue(s) covered by the MAP request has (have) been severed 3.2ACAP years: For MAP requests filed with APMA, provide the following information: a. Whether the taxpayer requests ACAP and, if so, the ACAP years proposed to be covered; b. Whether the taxpayer does not seek to apply the MAP resolution to one or more ACAP years and its reasons for not requesting ACAP (such as the transactions at issue not having occurred in subsequent taxable years); and c. Whether the taxpayer has filed a bilateral or multilateral APA request pursuant to Rev. Proc. 2014–YY that proposes to cover the same issues covered by the MAP request and whether it includes a rollback request for ACAP years 3.3Ancillary issues: List the ancillary issues (if any) the taxpayer requests be addressed in the MAP resolution 3.4Attachments: List any required MAP request attachments that the taxpayer has not included in its MAP request, together with explanations as to why such items are not included (e.g., “N/A”) Tab 1Authorization form: Include a properly executed Form 2848 (Power(s) of Attorney and Declaration of Represen- tative) or Form 8821 (Tax Information Authorization) Tab 2ACAP requests: If the taxpayer is requesting ACAP, provide a statement that the taxpayer agrees to the following: a. The inspection of books of account or records under ACAP will not preclude or impede (under section 7605(b) of the Code or any administrative provision adopted by the IRS) a later examination of a return or inspection of books of account or records for any taxable period covered in the ACAP request; and b. The IRS need not comply with any applicable procedural restrictions (e.g., providing notice under section 7605(b) of the Code) before beginning such examination or inspection Tab 3Protective claim and treaty notification: If applicable, provide the following information: a. A statement that the MAP request is to serve as a protective claim pursuant to section 13 of the revenue procedure, together with the information required by section 13.02(3); and b. A statement that the MAP request is to provide treaty notification pursuant to section 14 of the revenue procedure Tab 4Consent to disclosure: Include a declaration, dated and signed by a person having authority to sign the taxpayer’s federal tax returns, that the taxpayer consents to the disclosure of the contents of the MAP request – other than trade secrets, if the taxpayer so requests – to the applicable foreign competent authority(ies) within the limits contained in the U.S. tax treaty(ies) governing the MAP request Tab 5“Penalties of perjury” declaration: Include the following “penalties of perjury” declaration: Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best of my knowledge and belief, the facts presented in support of the MAP request are true, correct, and complete. The declaration must be dated and signed by the person(s) on whose behalf the request is being made and not by the taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the taxpayer having personal knowledge of the facts. The person signing for a trust, an estate, or a partnership must be a trustee, an executor, or a partner, respectively, who has personal knowledge of the facts Tab 6Written notice of adjustment: Provide the following information: a. For U.S.-initiated adjustments, a copy of the written notice of the adjustment, e.g., the Form 5701 or Form 4549, and any related attachments received from IRS Examination; or b. For non-U.S.-initiated actions: (1) an English translation of any official notice(s) of the adjustment to taxable income reported in the treaty country(ies) upon which the MAP request is based; and (2) a copy of the offi- cial notice(s) of such adjustment(s) in the original language Bulletin No. 2013–50December 9, 2013 649 .04Small Case MAP Requests Filed with APMA. Taxpayers filing small case MAP requests with APMA may exclude the information requested in Tabs 8, 9(a), and 9(d) from their MAP requests. This section does not apply to a MAP request involving a taxpayer-initiated position. SECTION 2. REQUESTS FOR DISCRETIONARY LOB RELIEF .01In General.In addition to the requirements of section 1 of this appendix, a request for discretionary LOB relief must also include the following information. Part 4. Additional Information for Requests for Discretionary LOB Relief 4.1Information necessary for identification and request review: a. Statement about the type(s) of benefits requested (e.g., dividends, interest, royalties, branch profits, etc.) and the relevant treaty provision(s) and amount of income at issue; b. Date on which the applicant requests that the determination become effective; and c. Statement as to whether the applicant made a previous request and the ultimate disposition of that request 4.2Applicant organization information: a. Narrative description of the business activities of the applicant’s U.S., foreign, and group holdings that describes the ownership structure and any recent restructurings in ownership and the purposes therefor relevant to the applicant and its ultimate owner(s), including the tax reasons for the use of any hybrid entities in the structure; b. In the case of a country that applies a territorial or exemption system for relieving double taxation on income or gain attributable to an office or branch in a third country, whether the applicant conducts business in the United States through such an office or permanent establishment, and if so, the name of the country in which the office or branch is located, the type of income or gain derived by the office or branch, and the applicable rate of tax applied to that income in that third jurisdiction; c. Name, address, and U.S. taxpayer identification number of U.S. entities related to the applicant from whom income covered by the request was or will be received; d. A chart with the name and country of tax residence or organization of every entity, along with its ownership interest in any intermediate entity, including its entity classification under U.S. and foreign law, between the applicant and ultimate owners of the applicant, (e.g., publicly traded corporations, pensions or other tax-exempt entities, govern- ments, or individuals); e. Description of the control and business relationships between the applicant and relevant persons for the years in issue, including any changes in such relationships prior to the date of the request; and f. Description of the relevant transactions, activities, or other circumstances involved in the matter covered by the request Tab 7E-mail authorization: Except for individuals or for taxpayers eligible to file small case MAP requests under section 5 of the revenue procedure, include a signed original of the memorandum of understanding authorizing communica- tions with the U.S. competent authority via e-mail, or a statement that the taxpayer does not authorize e-mail commu- nications, together with a brief explanation for declining to do so (seesection 3.08 of the revenue procedure) Tab 8Information or documents in a foreign language: List any information or documents in a foreign language that are submitted to a foreign tax authority or foreign competent authority in connection with, or that are otherwise relevant to, the MAP request and for which a full translation in English is not provided Tab 9MAP requests filed with APMA: For MAP requests filed with APMA, provide the following information: a. A copy of documentation prepared pursuant to section 6662 of the Code or other documentation analyzing the MAP issues for the taxable years covered by the MAP request; b. Financial data prepared for official statutory, regulatory, or other reporting purposes for the taxpayer’s controlled group (whether corporate parent is a U.S. person or not) for all taxable years covered by the MAP request; c. Income statements and balance sheets, segmented as necessary to demonstrate the effect of the MAP issue(s) on taxable income for the taxpayer and the members of the controlled group for all taxable years covered by the MAP request and, as applicable, for the three taxable years ending before and the three taxable years ending after the years covered by the MAP request; and d. Diagrams similar to “covered issue diagrams” required for APA requests, as described in the appendix to Rev. Proc. 2014–YY Tab 10Pre-filing submissions: Include any pre-filing memoranda or other materials submitted in connection with the MAP request December 9, 2013Bulletin No. 2013–50 650 4.3Applicant financial statement information: a. Financial statements, if available, for the years in issue of the applicant and any U.S. branch or related entity that paid or will pay income to the applicant during the period covered by the request; and b. Annual reports of any publicly traded shareholder that directly or indirectly owns stock in the applicant for the years in issue, and an English translation of any similar filings with securities regulators reflecting the structure or transaction that is the subject of the request for the years in issue, if applicable 4.4Additional applicant information: a. Analysis of why the applicant does not meet each of the objective tests listed in the treaty LOB article (e.g., if the company fails the base erosion test because it pays more than half of its gross income in the form of de- ductible expenses to persons not authorized by the treaty, including an explanation as to the reasons for making payments to such persons, or if a company is engaged in the active conduct of a trade or business in its country of residence, an explanation of what specifically prevents the company from meeting the active trade or busi- ness test in the treaty, or if the applicant’s parent was recently delisted from a recognized stock exchange and why, or if the applicant’s parent is publicly traded on a stock exchange not recognized under the treaty); b. Explanation of the non-tax business reasons why the applicant was formed or maintained in the particular treaty country (e.g., that the country is the source of raw materials, the customer base is located in the country, sub- stantial functions of the company’s business are located in the country, a substantial amount of services are per- formed in the country, or rents or royalties are derived from such country), and an explanation for any recent changes in these activities; c. Detailed description of the facts and circumstances that demonstrate that the applicant has a sufficient relation- ship or nexus to the treaty country; d. Analysis of any relevant factor for determining whether to grant a request for discretionary LOB relief, as indi- cated, for example, by the applicable U.S. tax treaty and Treasury Department Technical Explanation to the U.S. tax treaty; e. Statement from the applicant as to whether any entity in the ownership chain between the applicant and the publicly held entity (including the publicly held entity) is a nominee, agent, or otherwise a conduit, and if so, why it is arranged in that manner; f. English translations of all tax rulings or tax concessions issued to the applicant by the country in which it is organized, or a statement of whether the applicant otherwise benefits from a special tax regime in that country, and a description of the benefits; g. If the applicant has requested a certification from its country of residence regarding entitlement to the benefits of the treaty, where applicable, a copy of all correspondence from the treaty country; h. Statement from the applicant whether an examination by any tax authority has been or is currently in process that is related to the relief request; i. Whether a request for an APA has been or is anticipated to be made with respect to the income that is covered by the request; j. Statement whether each entity between the applicant and the ultimate shareholders meets the base erosion test of the treaty; k. If the requested treaty benefits relate to dividends, a description of the capital structure of the applicant and of the U.S. entity paying the dividends, including details about each class of shares and associated rights (e.g., voting, conversion, dividend rate, etc.), the period during which the structure was in effect, and any reorganiza- tions in the United States or of the applicant abroad, including change of residence; l. If the requested treaty benefits relate to interest, a general description of the terms of indebtedness, the method used to calculate interest, and the existence of embedded options or other derivative structures; whether the debt is registered or in bearer form; whether it is publicly traded and, if so, on which exchange; whether it is held by a hedge fund or other type of investment vehicle; and whether the ultimate owners are known to the applicant; m. If the requested treaty benefits relate to royalties, a description of the intangible property generating the royalty payments, when the applicant gained the rights to this property, and the terms of the royalty agreement; n. In the case of an applicant that is a hybrid entity, or that owns an interest in a hybrid entity through which it derives income, profit, or gain with respect to which it seeks treaty benefits, a detailed explanation of why the applicant derives the income in accordance with the relevant treaty provisions; and o. Statement of understanding that if the request for discretionary LOB relief is accepted by the U.S. competent authority the applicant is required to remit the user fee as provided by section 16 of the revenue procedure Bulletin No. 2013–50December 9, 2013 651 .02Pre-filing Memorandum.The applicant must submit a pre-filing memorandum indicating whether a pre-filing conference is requested in accordance with section 3.02(3)(f) of the revenue procedure. SECTION 3. “GENERALLY CORRESPONDS” PENSION DETERMINATIONS In addition to the requirements of section 1 of this appendix, a request seeking a determination that a foreign pension plan generally corresponds to a pension plan recognized for tax purposes in the United States must also include the following information: Part 5. Additional Information for Requests for “Generally Corresponds” Pension Determinations SECTION 4. MANNER OF FILING MAP REQUESTS .01In General.The taxpayer must provide four copies of its MAP request as follows: one (1) original, bound printed submission containing signed originals of the cover letter, “penalties of perjury” declaration, consent to disclosure, and, as applicable, authorization forms, including e-mail authorization, along with printed copies of all other required information; two (2) bound photocopies of the contents of the original printed submission; and one (1) electronic copy of the contents of the original printed submission on CD or flash drive or similar acceptable electronic storage medium. All four (4) copies of the MAP request must be filed with the U.S. competent authority at the address set forth in section 5 of this appendix. .02Exemptions for Small Case Filings with TAIT. Unless otherwise instructed by the U.S. competent authority, taxpayers filing small case MAP requests with TAIT are only required to file a single printed copy of the request. Also, such taxpayers may, but are not required to, file an electronic copy of the MAP request. .03Format of Printed Copies.Each printed copy may be filed in one or more bound volumes. The attachments must be tabbed or separated and identified and ordered as presented in section 1 of this appendix. If an attachment is not applicable to the MAP request, a statement to this effect must be included in the relevant tabbed section. .04Content and Format of Electronic Copy. (1)Content. The electronic copy of the MAP request must contain: (1) the cover letter to the MAP request, with all required statements, declarations, explanations, documents, information, data, and all other requested materials; and (2) all required attachments. The attachments should consist of separate electronic files named in a manner that corresponds to the tab numbers presented in section 1 of this appendix. If an attachment is not applicable to the MAP request, a statement to this effect must be included in the electronic file. (2)Format.Suitable formats for the documents in the electronic copy include Microsoft Word, Excel, PowerPoint, and Adobe Portable Document Format. Any document that is readily available in Microsoft Word, Excel, or PowerPoint format should be provided in that format rather than, or in addition to, Adobe Portable Document format. SECTION 5. ADDRESSES AND CONTACT INFORMATION .01APMA Contact Information. 5.1Copies of the Plan Documents (translated into English). For this purpose, the Plan Documents include the plan itself, the trust agreement, the summary plan description or similar document provided to participants, and any other document that will assist the U.S. competent authority in making its determination. 5.2If the plan at issue relates to another plan of the employer, copies of the Plan Documents (as defined above) for that other plan (translated into English) 5.3Copies of all applicable statutory provisions that govern the foreign pension plan (translated into English) 5.4An explanation of why the foreign pension plan should be deemed to “generally correspond” to a pension plan recognized for tax purposes in the United States. Telephone number:TBD Mailing address:Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N.W. Routing: M3-370 Washington, D.C. 20224 (Attention: APMA) December 9, 2013Bulletin No. 2013–50 652 All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS, FedEx, UPS, or any other carrier. .02TAIT Contact Information. All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS, FedEx, UPS, or any other carrier. Proposed Revision of Procedures for Advance Pricing Agreements Notice 2013–79 PURPOSE This notice proposes a revenue proce- dure that would update and supersede Rev. Proc. 2006 –9, 2006 –1 C.B. 278, as modified by Rev. Proc. 2008 –31, 2008 –1 C.B. 1133, which is also superseded. The proposed revenue procedure would pro- vide guidance and instructions on APAs and guidance and information on the IRS’s administration of APAs. Theproposedrevenueprocedure would substantially restate Rev. Proc. 2006-9 to improve clarity, readability, and organization. The proposed revenue pro- cedure also would reflect structural changes undertaken by the IRS since 2006, including the establishment of the Large Business & International Division, the realignment and consolidation of IRS transfer pricing resources under the Direc- tor, Transfer Pricing Operations, and the creation of the Advance Pricing and Mu- tual Agreement Program, the office re- sponsible for evaluating, executing, and administering APAs on behalf of the IRS. Additionally, the proposed revenue procedure would effect a limited number of significant substantive changes. These changes may be summarized as follows: Website:[link to be included when available] Office location:801 Ninth Street, N.W., Washington, D.C. 20001. Mail should not be sent to this address. Telephone number:TBD Mailing address:Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N.W. Routing: M4-365 Washington, D.C. 20224 (Attention: TAIT) Website:[link to be included when available] Office location:801 Ninth Street, N.W., Washington, D.C. 20001. Mail should not be sent to this address. Bulletin No. 2013–50December 9, 2013 653 Section of Proposed Update to Rev. Proc. 2006–9 Nature of Addition or Changes 2.02(3)Explains potential interactions between requests for advance pricing agreements and requests for compe- tent authority assistance. Recognizes that APMA may, in appropriate circumstances, condition its accep- tance of an APA request upon taxpayer’s agreeing to roll back the terms of the proposed APA. Further recognizes that APMA may, in appropriate circumstances, encourage a taxpayer that has sought AP- MA’s assistance for a MAP case to extend the MAP resolution to APA years. 2.02(4)Restates a preference for bilateral and multilateral APAs over unilateral APAs and makes clear that APMA may reject a unilateral APA request if its acceptance would be inconsistent with procedures and practices established with particular treaty partners. 2.03(3)Requires that the taxpayer execute consent agreement(s) as necessary to extend the period of limitations for assessment of tax for each proposed APA year and each proposed APA rollback year. 3.02Provides expanded pre-filing procedures, including mandatory submission of a pre-filing memorandum in cases raising certain issues. 3.02(2)Provides that a taxpayer filing an APA request eligible for the small case APA user fee may seek per- mission to submit an abbreviated APA request. 3.03(3)–(5)Provides for a new filing deadline for bilateral and multilateral APA requests. 3.04(1)Establishes an appendix listing revised specifications for the content of APA requests. 3.06Provides for e-mail communications between APMA and a taxpayer’s representative pursuant to a mem- orandum of understanding executed by the taxpayer. 3.07Provides that a protective claim for credit or refund may be made by including the claim in a bilateral or multilateral APA request. 3.08Clarifies that a complete APA request (updated and supplemented as required) will be a factor in deter- mining whether the taxpayer has met the documentation requirements of Treas. Reg. §1.6662– 6(d)(2)(iii) for the proposed APA years. 4.01Describes procedures for notification of receipt of an APA request. 4.02States circumstances in which APMA may deny assistance with respect to an APA request or during the APA process. 4.02(3)Clarifies that APMA’s decision as to whether an APA request is complete or to deny, suspend or termi- nate assistance is not subject to administrative review. 4.03Describes general practices that APMA will follow after an APA request has been filed with respect to, among other things, issuing case plans, conducting due diligence, and conveying its views on APA re- quests to the taxpayer. 4.05Clarifies that mandatory arbitration may apply to certain bilateral or multilateral APA requests. 5.01Elaborates on potential coordination between requests for advance pricing agreements and requests for compe- tent authority assistance. Provides that a taxpayer may seek permission to submit an abbreviated APA request if the relevant factors surrounding its proposed APA years and any proposed APA rollback years are substan- tially the same as those in its MAP years or its MAP and ACAP years covered by a MAP resolution. Pres- ents protocols for seeking permission to file an abbreviated APA request in these circumstances. 5.02(4)States that APMA reserves the right to coordinate with applicable IRS offices to pursue an APA rollback to any or all of the taxpayer’s open pre-APA years, regardless of whether the taxpayer requests an APA rollback. 5.02(5)Clarifies that an APA rollback request submitted in connection with a bilateral or multilateral APA request and involving a taxable year under the jurisdiction of IRS Appeals will constitute a request for the Simultane- ous Appeals Procedure, provided that the taxpayer provides an affirmative statement requesting SAP review. 5.02(6)Clarifies that, except in unusual circumstances, an APA rollback will not be made to a taxable year whose period of limitations for assessment of tax has expired in the United States. 7.02Restates and revises the treatment of and procedures regarding repatriation payments for bilateral or multilat- eral APAs and unilateral APAs. 8.01Provides that a taxpayer may seek permission to submit an abbreviated APA request in cases involving renewals of current APAs if the relevant factors of the current APA are substantially the same as those in the proposed renewal APA years. Presents protocols for seeking permission to file an abbreviated APA request in these circumstances. Appendix – 3.04Revises qualifications for small case APA user fee eligibility. December 9, 2013Bulletin No. 2013–50 654 The IRS and the Treasury Department request comments on this proposed rev- enue procedure. Comments may be sub- mitted in writing on or before March 10, 2014. Comments should be submitted to Internal Revenue Service, CC:PA:LP- D:PR (Notice 2013–79), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or electronically toNotice.Comments@irscounsel.treas.gov. Please include ”Notice 2013–79” in the sub- ject line of any electronic communications. Alternatively, comments may be hand de- livered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to CC:PA:LP- D:PR (Notice 2013–79), Courier’s Desk, In- ternal Revenue Service, 1111 Constitution Ave., NW, Washington, DC. All comments will be available for public inspection and copying. The procedures for APAs are proposed to be revised as follows: PROPOSED REVENUE PROCEDURE ProceduresforAdvancePricing Agreements Internal Revenue Code § 482: Alloca- tion of income and deductions among tax- payers Rev. Proc. [2014–YY] SECTION 1: DEFINTIONS AND RULES OF CONSTRUCTION.............................................. SECTION 2: PURPOSE, BACKGROUND, SCOPE, AND GENERAL CONDITIONS UNDER WHICH THIS PROCEDURE APPLIES................................................................................ SECTION 3: PROCEDURES FOR FILING APA REQUESTS................................................. SECTION 4: ACTIONS ON APA REQUESTS.............................................................. SECTION 5: APA ROLLBACKS AND COORDINATION WITH REV. PROC. 2014-XX.......................... SECTION 6: LEGAL EFFECT OF AN APA............................................................... SECTION 7: ADMINISTERING AN APA................................................................. SECTION 8: RENEWING AN APA...................................................................... SECTION 9: DISCLOSURE............................................................................. SECTION 10: EFFECT ON OTHER DOCUMENTS......................................................... SECTION 11: EFFECTIVE DATE........................................................................ SECTION 12: PAPERWORK REDUCTION ACT........................................................... SECTION 13: DRAFTING INFORMATION................................................................ APPENDIX........................................................................................... Bulletin No. 2013–50December 9, 2013 655 SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION .01Definitions.For purposes of this revenue procedure, the following terms have the meanings set forth in this section. Abbreviated APA request An APA request from which APMA has explicitly authorized the taxpayer to omit otherwise re- quired information, documents, or content, in contrast to a complete APA request, which must meet all of the requirements discussed in section 3.04 and as set forth in the appendix ACAPAccelerated competent authority procedure (seesection 4 of Rev. Proc. 2014–XX) ACAP requestA request filed under section 4 of Rev. Proc. 2014–XX to include ACAP years in a MAP case ACAP yearsTaxable years covered by an ACAP request or eligible for ACAP Ancillary issuesSubsidiary issues eligible for coverage by an APA, including APA repatriation (seesection 7), interest on refunds and deficiencies, penalties with respect to U.S.-initiated adjustments, and the determination of whether a payment is compulsory for foreign tax credit purposes as provided in Treas. Reg. §1.901–2(e)(5) APAAn advance pricing agreement APA annual report The report prepared for each APA year demonstrating the taxpayer’s compliance with the cov- ered method(s) and APA terms and conditions APA primary adjustment An adjustment made to a taxpayer’s actual results such that its reported taxable income is consis- tent with the application of the covered method(s) APA processThe series of formal or informal steps described in this revenue procedure or established by the APA team during the course of its evaluation of an APA request that are involved in reaching an APA, including steps involved in meeting pre-filing requirements APA repatriationThe treatment of repatriation payments under an APA APA requestA request for a unilateral, bilateral, or multilateral APA submitted under this revenue procedure APA rollbackThe application (with appropriate modifications, if necessary) of the covered method(s) of an APA to specific pre-APA years APA rollback request A request for an APA rollback submitted under this revenue procedure APA teamThe IRS team assembled to process an APA request APA team leaderThe designated APMA team leader who serves as the taxpayer’s point of contact during the APA process APA termAll of the APA years covered by an APA APA terms and conditions The terms and conditions of the APA, including the APA years, operational and compliance pro- visions, critical assumptions, and record-keeping and annual reporting responsibilities APA yearA taxable year covered by an APA APMAThe Advance Pricing and Mutual Agreement Program, a representative office of the U.S. compe- tent authority and one of the divisions of TPO Arbitration treatyA U.S. tax treaty in which the mutual agreement procedure article includes a provision for man- datory arbitration of certain cases, as described in section 12 of Rev. Proc. 2014–XX Bilateral APAAn APA in which the covered issue(s), covered method(s), and APA terms and conditions are premised on an underlying MAP resolution reached between the U.S. competent authority and a foreign competent authority Bilateral APA request A request for a bilateral APA submitted under this revenue procedure CodeThe Internal Revenue Code of 1986 (26 U.S.C.), as amended Controlled groupThe group of controlled taxpayers, within the meaning of the term set forth in Treas. Reg. §1.482-1(i), of which the taxpayer filing the APA request is a member Coverable issuesThe issues eligible to be covered by an APA, including issues arising under section 482 of the Code; certain MAP issues, notably those arising under the business profits and associated enter- prises articles of U.S. income tax treaties; determinations of the income effectively connected with the conduct of a trade or business within the United States; determinations of the respective amounts of income sourced from within and without the United States in the case of income de- rived from both such sources; ancillary issues; and any other issues for which transfer pricing principles may be relevant to their resolution by APMA December 9, 2013Bulletin No. 2013–50 656 Covered groupThe group of U.S.- and non-U.S. taxpayers within a controlled group, including the taxpayer fil- ing the APA request, whose intercompany transactions or other business activities are within the scope of the covered issue(s) Covered issue diagrams Diagrams, charts, or similar representations described in the appendix that depict, among other items, the legal structure, tax structure, business unit structure, intercompany flows, and value chain of the controlled group and proposed covered group Covered issue(s)The coverable issue(s) that is (are) covered by the APA Covered meth- od(s) The transfer pricing method(s) or other method(s) set forth in the APA for determining the tax- able income of each member of the covered group in relation to the covered issue(s) Critical assump- tion Any fact the continued existence of which is material to the issue(s) and method(s) covered by an APA, whether related to the taxpayer, a third party, an industry, or business and economic conditions Dollar file re- quest An APA request for which the required user fee is paid before, and which is then submitted by, the deadline set forth in section 3.03(4) Filed yearA taxable year for which a U.S. federal income tax return has been filed, determined by reference to the stage in the APA process at which the characterization as filed or not filed is relevant Foreign compe- tent authority The competent authority of a treaty country Global trading arrangement Global trading arrangement: Any arrangement involving multiple associated enterprises or the business unit(s) of an enterprise that operate in more than one country and that trade or deal in securities and/or other financial products, either on their own behalf or on behalf of clients. Global trading arrangements may encompass functions ancillary to the foregoing activities. Intangible devel- opment arrange- ment Any arrangement for sharing the costs and risks of developing intangibles, including a cost shar- ing arrangement as defined in Treas. Reg. §1.482–7 or a qualified cost sharing arrangement as defined in Treas. Reg. §1.482–7A (collectively, a “CSA”), or an arrangement (other than a CSA) for sharing the costs and risks of developing intangibles to which the consideration of the princi- ples, methods, comparability, and reliability considerations set forth in Treas. Reg. §1.482–7 is relevant in determining the best method, under Treas. Reg. §1.482–4(g) or Treas. Reg. §1.482– 9(m)(3), as appropriately adjusted in light of the differences in the facts and circumstances be- tween such arrangement and a CSA.See alsoTreas. Reg. §1.482–1(b)(2)(iii) IRSInternal Revenue Service IRS ExaminationThefunction(s) within the IRS responsible for examining federal tax and information returns and as- certaining the correctness of any return for purposes of determining the tax liability of taxpayers LB&ILarge Business & International Division of the IRS MAPActions taken by the U.S. competent authority and consultations between the U.S. and foreign compe- tent authorities under U.S. tax treaties, principally the mutual agreement procedure article MAP caseA case initiated by a MAP request or by the U.S. competent authority under Rev. Proc. 2014–XX involving one or more MAP issues in a given MAP year or set of years MAP issueAn issue that can be resolved by the U.S. competent authority, principally under the mutual agreement procedure article of a U.S. tax treaty MAP processAll steps in the process of reaching a MAP resolution of a MAP case under Rev. Proc. 2014–XX MAP repatriationThe treatment of repatriation payments pursuant to a MAP resolution, as defined in Rev. Proc. 2014–XX MAP requestA request for assistance of the U.S. competent authority filed under Rev. Proc. 2014–XX MAP resolutionAresolution of (i) MAP issues constituting a MAP case under Rev. Proc. 2014–XX or (ii) MAP issues constituting a case initiated by a bilateral or multilateral APA request under this revenue procedure MAP yearA MAP year, as defined in Rev. Proc. 2014–XX Multilateral APA An APA in which the covered issue(s), covered method(s), and APA terms and conditions are premised on one or more underlying MAP resolutions reached between the U.S. compe- tent authority and more than one foreign competent authority Multilateral APA request A request for a multilateral APA submitted under this revenue procedure Bulletin No. 2013–50December 9, 2013 657 OECD Guidelines The transfer pricing guidelines promulgated by the Organisation for Economic Cooperation and Development Opening conference The first meeting between the taxpayer and an APA team after an APA request has been submit- ted Pre-APA yearAny taxable year ending before the first APA year Pre-filing conference A conference held with APMA before an APA request is filed Pre-filing memorandum A memorandum or similar paper submitted to APMA before an APA request is filed Pre-filing requirements The requirements regarding pre-filing memoranda and pre-filing conferences as described in sec- tion 3 Protective claimA notification to the U.S. competent authority described in section 13 of Rev. Proc. 2014–XX and section 3.07 RegulationsU.S. Treasury regulations promulgated under the Code Repatriation payment A payment (within the meaning of section 4.01 of Rev. Proc. 99–32) or prepayment offset (within the meaning of section 4.02 of Rev. Proc. 99–32) made with respect to and not exceeding the amount of an APA primary adjustment Rev. Proc. 2014–XX Rev. Proc. 2014–XX, 2014–Y I.R.B. ZZ Rev. Proc. 99–32Rev. Proc. 99–32, 1999–2 C.B. 296 SAP reviewThe review of a MAP issue undertaken by IRS Appeals for the purpose of making a recommen- dation to the U.S. competent authority under the Simultaneous Appeals Procedure of Rev. Proc. 2014–XX Small case APA user fee The user fee required for APA requests that meet the criteria set forth in the appendix TaxpayerUnless indicated otherwise by context, the member of the covered group that (i) submits the APA request, (ii) executes the APA with the IRS, and (iii) is either a U.S. person, as defined in section 7701(a)(30) of the Code, or a non-U.S. person that is expected to file U.S. federal income tax returns during the proposed APA years TPOTransfer Pricing Operations, the director of which reports to the Deputy Commissioner (Interna- tional), LB&I Treas. Reg.U.S. Treasury regulations promulgated under the Code Treaty countryA country other than the United States that has a U.S. income tax treaty in force U.S. competent authority The Deputy Commissioner (International), LB&I, the Assistant Deputy Commissioner (Interna- tional), and each other IRS official performing competent authority functions pursuant to applica- ble delegation orders (seesection 2.03 of Rev. Proc. 2014–XX) U.S. tax treatyA convention governing income, estate, or gift taxes to which the United States is a party and that has entered into force, together with its implementing protocols, exchanges of diplomatic notes, memoranda of understanding, and competent authority arrangements U.S.-initiated adjustment A proposed or final adjustment made by the IRS to the taxable income reported by a taxpayer on its U.S. federal income tax return Unilateral APAAn APA in which the covered issue(s), covered method(s), and APA terms and conditions are not premised upon an underlying MAP resolution Unilateral APA request A request to enter into a unilateral APA under this revenue procedure December 9, 2013Bulletin No. 2013–50 658 .02Section References.Unless indi- cated by context or otherwise, section ref- erences are to the sections of this revenue procedure (including the appendix). .03Deadline References. If a deadline under this revenue procedure falls on a Saturday, Sunday, or a legal holiday in the District of Columbia, the deadline is ex- tended to the next succeeding day that is not a Saturday, Sunday, or a legal holiday in the District of Columbia. SECTION 2: PURPOSE, BACKGROUND, SCOPE, AND GENERAL CONDITIONS UNDER WHICH THIS PROCEDURE APPLIES .01 Purpose. This revenue procedure provides taxpayers with guidance and in- structions on filing APA requests and guidance and information on the adminis- tration of APAs. This revenue procedure updatesandsupersedesRev.Proc. 2006 –9, 2006 –1 C.B. 278, as modified by Rev. Proc. 2008-31, 2008-1 C.B. 1133, which is also superseded. .02Background and Principles. (1) In February 2012, the IRS estab- lished APMA to oversee its APA program and to act as the representative office of the U.S. competent authority responsible for handling MAP cases arising under the business profits and associated enterprises articles of U.S. tax treaties. APMA also has shared responsibility for cases arising under the permanent establishment arti- cles of U.S. income tax treaties. (Seesec- tion 2.04 of Rev. Proc. 2014 –XX.) In accordance with its mission, APMA en- deavors to administer the programs within its jurisdiction in a manner that secures the appropriate tax bases of the United States and its treaty partners, prevents fis- cal evasion, and is otherwise consistent with sound tax administration. (2) APMA’s APA program provides a voluntary process whereby the IRS and taxpayers may resolve transfer pricing is- sues and issues for which transfer pricing principles may be relevant in a principled and cooperative manner on a prospective basis. APMA is committed to conducting the APA process in a manner that is fair, timely, and consistent with principles of sound tax administration. The APA pro- cess increases the efficiency of tax admin- istration by encouraging taxpayers to come forward and present all the facts necessary for a proper evaluation of their coverable issues and to work towards a resolution of such issues in a spirit of openness and cooperation. The voluntary and prospective nature of the APA pro- cess lessens the burden of compliance by giving taxpayers greater certainty regard- ing their covered issues and promotes the principled resolution of these issues by allowing for their discussion and resolu- tion in advance before the consequences of such resolution are fully known to ei- ther taxpayers or the IRS. (3) APAs and MAP resolutions of MAP cases are two interconnected means by which taxpayers can manage and address transfer pricing and other cross-border tax issues. In recognition of these connections, APMA seeks to resolve APA and MAP requests to achieve substantive and proce- dural consistency and coordination in their coverage and application. For example, when warranted by similarity of facts and circumstances across taxable years, APMA will encourage a taxpayer to expand the scope of its APA request to include an APA rollback (with appropriate modifications, if necessary) when a comprehensive resolu- tion of coverable issues would further the interests of sound tax administration. APMA may also condition its acceptance of an APA request upon the taxpayer’s agree- ment to roll back the terms of its proposed APA (with appropriate modifications, if necessary) where APMA has clear interests in doing so and the taxpayer does not offer clear reasons against doing so. Conversely, APMA may require a taxpayer that has sought APMA’s assistance for a MAP case to pursue ACAP to extend the MAP reso- lution of the MAP case to one or more of its ACAP years. APMA may also encourage the taxpayer to extend the MAP resolution even further into APA years. The relation- ship between APAs, MAP cases, and ACAP is addressed in more detail in section 5 and in Rev. Proc. 2014 –XX. (4) APMA’s interest in coordinating APAs and MAP cases is also reflected in its preference for bilateral and multilateral APAs over unilateral APAs. To minimize taxpayer and governmental uncertainty and administrative cost, bilateral and multilat- eral APAs are generally preferable to uni- lateral APAs, particularly when a contem- poraneous bilateral or multilateral APA request would have been effective and prac- tical (within the meaning of Treas. Reg. §1.901–2(e)(5)(i)) to obtain consistent treat- ment of the covered issue(s) with a treaty country or treaty countries. Furthermore, in some circumstances, APMA may reject a unilateral APA request if accepting it would be inconsistent with procedures and prac- tices established with particular treaty part- ners. For these reasons, the taxpayer must explain in a pre-filing memorandum why a unilateral APA is appropriate to cover an issue that could be covered by a bilateral or multilateral APA (seesection 3.02(4)). (5) Additionally, because APMA has a strong interest in resolving transfer pric- ing and other coverable issues in a timely manner, APMA may encourage the tax- payer to expand the scope of the proposed APA to include coverable issues relevant to the proposed covered issues when a comprehensive resolution of coverable is- sues would further the interests of sound tax administration. APMA may also con- dition its acceptance of an APA request upon the taxpayer’s agreement to include such other issues among the covered is- sues, when APMA has clear interests in doing so and the taxpayer does not offer clear reasons against doing so. (6) As appropriate, APMA will provide oral,informaladvicetotaxpayers, whether or not in the course of the APA process, on general and specific matters concerning APAs, including whether an issue may be covered by an APA. Any such informal advice is advisory and is not binding on the IRS. .03General Requirements for Initiat- ing and Continuing the APA Process. (1) To initiate the APA process, the taxpayer must (i) meet the pre-filing re- quirements set forth in section 3.02, as applicable; (ii) submit a complete APA request, as described in section 3.04; and (iii) pay the correct user fee, as described in section 3.05 and as instructed in the appendix to this revenue procedure (gen- erally referred to as the “appendix”). (2) Throughout the APA process, the taxpayer must supplement its APA re- quest and provide updated information in accordance with sections 3.10 and 3.11. (3) Throughout the APA process, the taxpayer and the IRS will execute consent agreement(s) as necessary to extend the period of limitations for assessment of tax for each proposed APA year and for each Bulletin No. 2013–50December 9, 2013 659 proposed APA rollback year. The tax- payer will be instructed as to the type of consent to execute, viz., general or re- stricted, and the duration of the extension for each proposed APA year and each proposed APA rollback year. Any general questions regarding the execution of con- sents required by this section may be di- rected to APMA by one of the means identified in the appendix. SECTION 3: PROCEDURES FOR FILING APA REQUESTS .01General. This section sets forth procedures, rules, and guidelines relevant to filing an APA request. This section also addresses the taxpayer’s obligations be- fore and after filing the request. Instruc- tions on preparing and filing an APA re- quest are also set forth in the appendix. .02Pre-filing Requirements and Re- quests for Pre-filing Guidance. (1)General. In the interest of making the APA process effective and efficient, APMA invites, and in some cases re- quires, the taxpayer to meet with APMA in a pre-filing conference prior to filing the APA request. For the same reason, APMA invites, and in some cases re- quires, the taxpayer to submit a pre-filing memorandum prior to filing the APA re- quest. Pre-filing requirements are set forth in sections 3.02(3) through 3.02(7). Ques- tions about pre-filing requirements may be directed to APMA by one of the means identified in the appendix. (2)APA Requests Eligible for Small Case APA User Fee.The pre-filing require- ments set forth in sections 3.02(3) through 3.02(7) do not apply to APA requests that are eligible for the small case APA user fee. A taxpayer that seeks to file such an APA request may submit the small case APA user fee together with a complete APA request or may contact APMA by one of the means identified in the appendix to discuss filing an abbreviated APA request. (3)Requesting Pre-filing Conferences.A taxpayer that wishes to hold a pre-filing conference with APMA must submit its re- quest as part of a pre-filing memorandum filed pursuant to section 3.02(4) or 3.02(5). (4)Mandatory Pre-filing Memoranda. A pre-filing memorandum must be filed if (a) the taxpayer wishes to file a unilateral APA request to cover an issue that is eligible for coverage by a bilateral or mul- tilateral APA (seesection 2.02(4)); (b) the taxpayer seeks permission to file an ab- breviated APA request (seesection 5.01 or 8); or (c) the covered issue(s) proposed by the taxpayer will, or could reasonably be expected to, involve any of the follow- ing: (i) the license or other transfer of intangibles in connection with, or the de- velopment of intangibles under, an intan- gible development arrangement; (ii) any arrangement that qualifies as a global trad- ing arrangement; or (iii) unincorporated branches, pass-through entities, hybrid en- tities, or entities disregarded for U.S. tax purposes. If a pre-filing memorandum is not filed in the cases described in this section, APMA may, among other possi- ble actions, require that a pre-filing mem- orandum be submitted before it will take action on the APA request from the tax- payer. APMA will not accept anonymous pre-filing memoranda in the cases de- scribed in this section. (5)Optional Pre-filing Memoranda.A taxpayer may voluntarily submit a pre-filing memorandum in cases other than those set forth in section 3.02(4). Although not re- quired, APMA recommends that a pre-filing memorandum be submitted for APA re- quests that may present novel or complex substantive or procedural issues. Optional pre-filing memoranda may be submitted on an anonymous basis. APMA generally rec- ommends, however, that optional pre-filing memoranda be provided on a named basis so as to facilitate a more informed understand- ing of the procedural and substantive issues that may arise during the APA process. (6)Contents of Pre-filing Memoran- dum. If submitted pursuant to section 3.02(4), a pre-filing memorandum must have a length and content appropriate to the size and complexity of the covered issue(s) proposed by the taxpayer. If sub- mitted pursuant to section 3.02(5), the pre-filing memorandum must have a length and content appropriate to the sub- stantive or procedural issues the taxpayer wishes to raise with APMA. The memo- randum must also do the following: (a) Include a “penalties of perjury” state- ment modeled on the statement set forth in the appendix (unless the memorandum is submitted on an anonymous basis); (b) State whether the taxpayer seeks a pre-filing conference and, if so, the issues the taxpayer wishes to discuss; (c) Propose at least three possible dates for a pre-filing conference, whether or not the taxpayer seeks a pre-filing conference, in case APMA requires a pre-filing conference; (d) Include covered issue diagrams if the pre-filing memorandum is required under section 3.02(4); (e) If the pre-filing memorandum is sub- mitted pursuant to section 3.02(4)(b), it must (i) present the taxpayer’s arguments that the applicable law, facts and circum- stances, economic conditions, and other fac- tors surrounding its proposed covered is- sue(s) and method(s) for the proposed APA years are substantially the same as those surrounding the current APA or surrounding the MAP resolution in the MAP case, (ii) specify any information, documents, or other materials the taxpayer proposes to omit from its APA request, and (iii) discuss the taxpay- er’s arguments that the information, docu- ments, or other materials the taxpayer pro- poses to omit from its APA request are not necessary for APMA’s evaluation of the APA request (seesections 5.01 and 8); (f) List the name and contact informa- tion for the taxpayer’s point of contact and, unless the pre-filing memorandum is submitted on an anonymous basis, pro- vide a Form 2848 authorizing the point of contact to represent the taxpayer in con- nection with the APA request or a Form 8821 authorizing the point of contact to inspect or receive confidential tax infor- mation about the taxpayer in connection with the APA request; and (g) Identify all open pre-APA years of the taxpayer and which of such years, if any, are under examination by the IRS. (7)Place for Submission of Pre-filing Memorandum. Two printed copies and one electronic copy of the pre-filing memorandum must be submitted to APMA at the address provided in section 4 of the appendix. (8)Actions Taken with Respect to Pre- filing Conferences and Memoranda. (a) APMA will notify the taxpayer whether it will accept or decline the tax- payer’s request to hold a pre-filing confer- ence. The taxpayer will also be notified if a pre-filing conference is required, even if the taxpayer did not request a conference. If a pre-filing conference is held, it will address procedural and substantive issues pertinent to the APA request. During the conference, the taxpayer should be pre- pared to discuss the relevant facts and December 9, 2013Bulletin No. 2013–50 660 circumstances surrounding the issue(s), method(s), and terms and conditions it proposes to cover in the APA. If APMA declines the taxpayer’s request for a pre- filing conference or decides that no pre- filing conference is required, APMA will direct the taxpayer as to how to proceed with its APA request. (b) Unless the taxpayer is required to submit a pre-filing memorandum pursuant to section 3.02(4), a pre-filing conference may be held on an anonymous basis. APMA generally recommends, however, that pre-filing conferences be held on a named basis so as to facilitate a more informed discussion of procedural and substantive issues that may arise during the APA process. (9)Informal Advice in Pre-filing Con- ference. Statements or representations made by APMA in a pre-filing conference constitute informal advice and are, there- fore, advisory only (seesection 2.02(6)). .03Time for filing. (1)In General. An APA request must be filed by the applicable deadline set forth in this section. (2)Unilateral APA Requests. Except as provided in section 3.03(4), the taxpayer must file a complete unilateral APA re- quest no later than the due date prescribed by statute (including extensions) for filing its Federal income tax return (or, if the taxpayer receives an extension to file its Federal income tax return, a date no later than the actual filing date of the return) (“return due date”) for the first proposed APA year. (3)Bilateral and Multilateral APA Re- quests. A complete bilateral or multilat- eral APA request must be filed no later than the earlier of (i) the return due date for the first proposed APA year, except as provided in section 3.03(4), and (ii) within 60 days after the bilateral or multilateral APA request regarding the same proposed covered issue(s) and APA years has been filed with a foreign competent authority, except as provided in section 3.03(5). (4)“Dollar File” Requests.APMA will consider an APA request as having been filed on the return due date for the first proposed APA year if (i) the correct user fee is paid (within the meaning of section 7502(a) of the Code) by the return due date for the first proposed APA year, and (ii) a complete APA request is filed within 120 days of the return due date for the first proposed APA year. APMA may agree to extend the 120-day filing dead- line by 30 days if the taxpayer requests such an extension before the 120-day fil- ing deadline expires. This paragraph does not apply to APA requests that must meet the filing deadline set forth in section 3.03(3)(ii) or 3.03(5). (5)Transition Rule for Bilateral and Multilateral APA Requests. For some tax- payers, the filing deadline set forth in sec- tion 3.03(3)(ii) will be on a date before the effective date of this revenue procedure (seesection 11). This paragraph presents a transition rule that provides such taxpay- ers with a grace period by which to submit the correct user fee and complete APA request, as follows. If (a) the taxpayer intends to file a bilateral or multilateral APA request that must meet the filing deadline set forth in section 3.03(3)(ii), and (b) the filing deadline set forth in section 3.03(3)(ii) is before the effective date of this revenue procedure, then APMA will consider the APA request as having been filed by the deadline set forth in section 3.03(3)(ii) so long as all of the following conditions are met: (i) the tax- payer pays the correct user fee no later than the earlier of (A) 30 days from the effective date of this revenue procedure, and (B) the return due date for the first proposed APA year; and (ii) the taxpayer submits a complete bilateral or multilat- eral APA request no later than the earlier of (A) 120 days from the effective date of this revenue procedure, and (B) 120 days from the return due date for the first pro- posed APA year. .04Content and Form of Complete APA Requests. (1)In General.The appendix sets forth the required contents of a complete APA request, identifies the order in which such contents should be presented, and pro- vides information and instructions on other administrative matters relevant to filing a request. An APA request must comply with the requirements set forth in the appendix before it will be considered complete. Any questions about filing an APA request not addressed in this section or in the appendix should be directed to APMA by one of the means identified in the appendix. (2) Any information submitted by a taxpayer in connection with its APA re- quest must be true, correct, and complete (seethe appendix). All documents in or described in the APA request must be explained in sufficient detail to make their contents readily understandable. Such an explanation might include, for example, definitions of terms used, explanations of the goal and flow of calculations, the sources of data, and the identity of a doc- ument’s creator and the purpose for which it was created. .05User Fees. (1) The user fee requirements and rules of application are set forth in the appen- dix. A taxpayer that seeks a decision on the user fee applicable to its APA request must contact APMA or submit a pre-filing memorandum. (2) The taxpayer must pay the applica- ble user fee no later than the date it files the APA request. User fees must be paid through the Pay.gov website. APMA will consider an APA request to be complete only when the correct user fee has been paid through the Pay.gov website. (3) APMA will notify the taxpayer if it has paid less than the correct user fee. In such a case, the taxpayer has the option of making up the difference or withdrawing its APA request and receiving a refund of the amount it has paid. .06E-mail Communications. A com- plete APA request must include either an executed memorandum of understanding permitting APMA to communicate with the taxpayer’s authorized representatives through encrypted e-mail or a statement that the taxpayer does not permit such e-mail communications and an explana- tion for its declining to do so.Seethe appendix. An electronic copy of the stan- dard form memorandum of understanding is available on the APMA website [link to be included when available]. .07 APA Request as Protective Claim. For purposes of this revenue procedure only, a protective claim for credit or re- fund may be made by including the claim in a bilateral or multilateral APA request. To be a valid protective claim for credit or refund, the protective claim must fulfill the requirements of section 13.02(3) of Rev. Proc. 2014 –XX.Seesection 13 of Rev. Proc. 2014 –XX and the appendix. Bulletin No. 2013–50December 9, 2013 661 .08 Effect of Filing. The submission of a complete APA request, updated and sup- plemented in accordance with the require- ments of this section 3, will be a factor taken into account in determining whether the taxpayer has met the documentation requirements of Treas. Reg. §1.6662– 6(d)(2)(iii) for the proposed APA years. Submission of a complete APA request does not, in itself, suspend examination or enforcementproceedings.Although APMA will coordinate within the IRS to minimize duplicative requests in conduct- ing its due diligence, the taxpayer remains obligated to respond to information docu- ment requests issued, and according to deadlines set, by other IRS offices in any examination or enforcement proceedings. .09APA Term. In its APA request, the taxpayer must propose a term for the APA that is appropriate to the proposed covered issue(s) and to the commercial factors sur- rounding the taxpayer’s industry and line(s) of business. Although the appropriate APA term will be determined on a case-by-case basis, a request for an APA should propose an APA term of at least five years, unless the taxpayer states a compelling reason for a shorter term. Additionally, it is in the inter- est of sound tax administration for APMA to seek to have at least three prospective taxable years remaining in the APA term upon the execution of an APA (in the case of a unilateral APA) or upon the execution of a MAP resolution (in the case of a bilat- eral or multilateral APA). Accordingly, APMA may require that the taxpayer agree to extend the APA term in order to ensure such prospectivity. In the case of a bilateral or multilateral APA, any proposed term ex- tension will be coordinated with the relevant foreign competent authority(ies). .10Requested and Supplemental Items. (1) The information, documents, and materials required of APA requests that are identified in the appendix may not exhaust items relevant to an APA team’s evaluation of a given APA request. If the APA team determines that it needs addi- tional information to analyze the APA re- quest, the taxpayer will be asked, and thereby required, to provide such informa- tion. The taxpayer must respond similarly to requests made by a foreign competent authority, as applicable. (2) In general, the taxpayer must pro- vide to all relevant competent authorities any responses, information, documents, or analyses that it provides to one competent authority, whether such responses, infor- mation, documents, or analyses are pro- vided in response to a request from a competent authority or are submitted vol- untarily by the taxpayer in support of its APA request. In the interest of minimizing administrative burdens, the APA team will work with the taxpayer during the APA process to find efficient procedures for disseminating responses, information, documents, or analyses to the competent authorities, such as using indexes to cata- logue information, documents, or analyses the taxpayer will make available to the competent authorities upon request. .11Corrected and Updated Information. (1) After the APA request is filed, any material errors or any material omissions in the APA request or in supplemental submissions must be promptly corrected or remedied. The taxpayer must also sub- mit any information or documents discov- ered or created during the APA process that are, or reasonably may be, relevant to the APA request. (2) The taxpayer must notify APMA of all material changes and updates to infor- mation previously submitted in connec- tion with the APA request. (3) Any financial data produced in con- nection with the APA request during the APA process must be updated annually or on a schedule that is mutually acceptable to the taxpayer and to APMA. In addition, the APA request must be supplemented with a demonstration of the application of the proposed covered method(s) to the actual financial results of the applicable members of the proposed covered group for each taxable year completed while the APA request is pending. Such a supple- mental submission must be provided within 180 days of the close of the taxable year. APMA may, at its discretion, grant an extension or modify these requirements if the taxpayer provides written notifica- tion before the date the supplemental sub- mission would otherwise be due. .12Withdrawing the Request.The tax- payer may withdraw its APA request at any time before it executes the APA. APMA generally will not refund user fees if the taxpayer withdraws its APA request after APMA has begun its due diligence. SECTION 4: ACTIONS ON APA REQUESTS .01Decision Letter and Contact Infor- mation. APMA will notify the taxpayer in writing that it has received the APA request. The letter will also provide the name and contact information of the assigned APA team leader to which the request has been assigned. In addition, the letter will state either: (1) that the request is complete and that the APA process will proceed, together with any administrative or procedural steps the taxpayer must take pertaining to the APA request; (2) that the request is provi- sionally accepted but that the APA process will not proceed until specified deficiencies in the request have been addressed; or (3) that the request is rejected and the circum- stances, if any, under which the request might be accepted. APMA will also instruct the taxpayer as to other offices within the IRS to which full or partial copies of the APA request must be provided. .02Denial of Assistance. (1) APMA may deny assistance, in whole or in part, at any point in the APA process, either at the outset by rejecting the APA request or by terminating or sus- pending the APA process after it has ac- cepted an APA request. APMA will gen- erally take such actions if any of the circumstances described in, or similar to those described in, section 6.02 of Rev. Proc. 2014 –XX are present, including failure to include the materials required by this revenue procedure in the APA request (seesection 3) or the materials requested by the APA team during the APA process. (2) If APMA denies assistance, it will determine whether to refund the taxpay- er’s user fee. APMA will base its decision on various considerations, including the extent of the due diligence and analysis the APA team had undertaken before fur- ther assistance is denied. (3) APMA’s decision as to whether an APA request is complete or to deny, sus- pend, or terminate assistance is not subject to administrative review. .03Formation of APA Team, Opening Conference, Case Plan, and Taxpayer Review (1) Once APMA has determined that the APA request is complete and that it will continue with the APA process, the APA team leader will contact the taxpayer to set a date for an opening conference or, December 9, 2013Bulletin No. 2013–50 662 depending on the nature of the proposed covered issue(s) and method(s) and other aspects of the APA request, to inform the taxpayer that an opening conference may be unnecessary before the APA team moves forward with its analysis. If the opening conference is held, the taxpayer may be asked to respond to questions from the APA team about the APA re- quest by a given date before the opening conference or at the opening conference itself. The APA team leader may postpone the opening conference if the responses are not provided by the date set or agreed to by the APA team leader. (2) The primary purpose of an opening conference is to give the taxpayer an op- portunity to acquaint the APA team with the APA request and the issue(s), meth- od(s), and terms and conditions the tax- payer is proposing to be covered by the APA. The meeting may also include a more detailed discussion of particular as- pects of the taxpayer’s proposals. Accord- ingly, the taxpayer should be prepared to discuss the APA request in detail and re- spond as fully as possible to questions about its proposals. (3) The opening conference will also cover general procedural issues, including whether a case plan is appropriate and, if so, when it may be useful in the APA process for a case plan to be implemented, in light of the due diligence and analysis the APA team expects to undertake in the APA process. If feasible in light of the scope and complexity of the proposed APA, the APA team may also provide an estimate of the time it will take to com- plete its evaluation of the APA request. Whether this estimate holds true in any given case will primarily depend upon a variety of factors: the quality of the APA request; the extent of the taxpayer’s coop- eration with the APA team, including the completeness and timeliness of its re- sponses to information requests and other due diligence inquiries during the APA process; and, in the case of bilateral or multilateral APAs, the speed with which the foreign competent authority is able to be prepared to discuss the case with the APA team. Accordingly, any timetable discussed or set forth in a case plan is only an estimate and is subject to revision and extension. (4) For a bilateral or multilateral APA request, APMA will consider requests from, and may invite or require, the tax- payer to make presentations jointly to the U.S. and foreign competent authorities during the APA process. APMA will con- sult with the foreign competent authority as to its interest in joint presentations and notify the taxpayer accordingly. (5) At the conclusion of the APA team’s due diligence and evaluation of a bilateral or multilateral APA request, the APA team leader will provide to the tax- payer a memorandum conveying the sub- stance of the APA team’s views on the proposed APA. The memorandum will have a length, content, and format appro- priate to the size and complexity of the proposed covered issue(s) and method(s) and other relevant facts and circumstances surrounding the case. The taxpayer will be invited to respond to the memorandum by a deadline set by the APA team leader. .04Finalizing the APA.In the case of a unilateral APA, the APA team and tax- payer will proceed to finalize an APA after the APA team has completed its due diligence and evaluation of the APA re- quest. In the case of a bilateral or multi- lateral APA, the APA team and the tax- payer will proceed to finalize an APA after a MAP resolution has been reached in the case. .05Arbitration.The mutual agreement procedure article in arbitration treaties re- quires that the competent authorities refer certain cases to mandatory arbitration in the event direct consultation does not lead to a mutual agreement within a prescribed time period. Taxpayers requesting bilat- eral or multilateral APAs should consult the mutual agreement procedure article under the applicable U.S. tax treaty and any ancillary agreements to determine whether it is an arbitration treaty and the extent to which mandatory arbitration ap- plies to cases initiated by bilateral or mul- tilateral APA requests under such treaty. Seesection 12 of Rev. Proc. 2014 –XX. .06Execution of Agreement.The APA will enter into force as of the date it is executed by APMA and by the taxpayer and have effect as provided therein. In the case of an APA that includes a member of a consolidated group other than the com- mon parent (as defined in Treas. Reg. §1.1502–1), the common parent must also sign the APA as provided in Treas. Reg. §1.1502–77. The person signing the APA must be an authorized officer of the tax- payer, have personal knowledge of the APA’s covered issue(s), covered meth- od(s), and terms and conditions, perform duties not limited to obtaining letter rul- ings or determination letters from the IRS or entering into APAs, and have authori- zation to sign the taxpayer’s income tax return pursuant to section 6062 of the Code. The person signing for any non- corporate taxpayer must be an individual having personal knowledge of the APA’s covered issue(s), covered method(s), and terms and conditions and have authoriza- tion to sign the taxpayer’s income tax return pursuant to sections 6061 or 6063 of the Code, as applicable. .07Not an Examination.APMA’s evaluation of the APA request will not constitute an examination or inspection of the taxpayer’s books and records under section 7605(b) or other provisions of the Code. SECTION 5: APA ROLLBACKS AND COORDINATION WITH REV. PROC. 2014 –XX .01Extension from MAP or ACAP Years to APA Years (1) Under Rev. Proc. 2014 –XX, APMA may propose that a taxpayer pur- sue ACAP to extend a MAP resolution in its MAP case to one or more ACAP years. APMA may also affirmatively seek of its own accord to roll forward a MAP reso- lution in a MAP case to the taxpayer’s ACAP years where it is feasible, practica- ble, and in the interest of sound tax ad- ministration to do so. APMA may also discuss with the taxpayer the possibility of extending the MAP resolution into APA years. A request to extend a MAP resolu- tion into APA years may be made either by filing a complete APA request or by filing an abbreviated APA request. A tax- payer must file a complete APA request unless it has obtained APMA’s permis- sion to file an abbreviated APA request. APMA will grant permission to file an abbreviated APA request only if (i) the taxpayer satisfies the pre-filing require- ments set forth in section 3 and detailed in this section 5, and (ii) the applicable law, facts and circumstances, economic condi- tions, and other relevant factors surround- Bulletin No. 2013–50December 9, 2013 663 ing the taxpayer’s proposed APA years and proposed APA rollback years are rea- sonably expected to be substantially the same as such factors surrounding its MAP years or its MAP and ACAP years cov- ered by the MAP resolution. If either of these requirements is not satisfied, the tax- payer must file a complete APA request and otherwise comply with all other pro- visions of this revenue procedure. (2) As noted in section 3.02(4), a tax- payer that seeks to file an abbreviated APA request to extend a MAP resolution in a MAP case to APA years must submit a pre-filing memorandum. Among the other required items, the pre-filing mem- orandum must (i) present the taxpayer’s arguments that the applicable law, facts and circumstances, economic conditions, and other factors surrounding its proposed covered issue(s) and method(s) for the proposed APA years and any proposed APA rollback years are substantially the same as those surrounding the MAP res- olution in the MAP case, (ii) specify any information, documents, or other materi- als the taxpayer proposes to omit in its submission, and (iii) discuss the taxpay- er’s arguments that the information, doc- uments, or other materials the taxpayer proposes to omit from its APA request are not necessary for APMA’s evaluation of the APA request. (3) In accordance with section 3.02(8), APMA will determine whether to hold a pre-filing conference after reviewing the pre-filing memorandum. APMA may de- termine that no pre-filing conference is required and that an abbreviated APA re- quest will be acceptable. In that event, APMA will provide the taxpayer with in- structions on preparing the request. If APMA determines that a pre-filing con- ference is required, the taxpayer will be expected to discuss the arguments pre- sented in its pre-filing memorandum. If APMA decides to accept an abbreviated APA request after the pre-filing confer- ence, it will provide the taxpayer with instructions on preparing the abbreviated APA request. If APMA decides that it will not accept an abbreviated APA request, the taxpayer will be instructed to file a complete APA request. .02APA Rollbacks (1) A taxpayer may request an APA rollback to cover one or more of its pre- APA years. An APA rollback request should be included in the taxpayer’s APA request. APMA may consider a later re- quest for an APA rollback only if the APA rollback request is submitted in writing within 3 months after the APA request is filed, unless APMA agrees otherwise. (2) Whether included in the APA re- quest or in a subsequent written request, the APA rollback request must include the same information for the pre-APA years that is required to be submitted for the APA years proposed by the taxpayer. (3) After coordinating and collaborat- ing with other offices within the IRS, APMA will inform the taxpayer whether its APA rollback request has been ac- cepted. (4) Regardless of whether the taxpayer pursues an APA rollback request, APMA reserves the right to coordinate with ap- plicable IRS offices to pursue an APA rollback to any or all of the taxpayer’s open pre-APA years. In general, APMA will consider taking such action where there is sufficient similarity in relevant facts and circumstances across the taxpay- er’s APA and pre-APA years. APMA will inform the taxpayer in writing, either be- fore the APA process begins or at any time during the APA process, whether it will pursue an APA rollback and the pre- APA years it will seek to cover. If the taxpayer refuses to accept an APA roll- back, APMA may decline to initiate the APA process or suspend or terminate the process if it has already begun. (5) An APA rollback request submitted in connection with a bilateral or multilat- eral APA request and involving a taxable year under the jurisdiction of IRS Appeals will be deemed to constitute a request for SAP review, provided that an affirmative statement requesting SAP review is in- cluded in the APA request or in the sub- sequent written APA rollback request (see the appendix). Any request for SAP re- view made in connection with an APA request will be subject to the provisions governing SAP review set forth in section 8 of Rev. Proc. 2014 –XX. (6) Except in unusual circumstances, APMA will not accept a rollback to a taxable year whose period of limitations for assessment of tax has expired in the United States. SECTION 6: LEGAL EFFECT OF THE APA .01 Binding Agreement.An APA is a binding agreement between the taxpayer and the IRS. .02 Effect of Compliance.If the tax- payer complies with the APA terms and conditions, the IRS will not contest the application of the covered method(s) to the covered issue(s) of the APA except as provided in this revenue procedure. The taxpayer remains otherwise subject to U.S. income tax laws and applicable U.S. income tax treaties. .03 Scope of Agreement.An APA will have no legal effect except with respect to the taxpayer, taxable years, and issues to which the APA specifically relates. .04 Use as Evidence.Unless provided otherwise by written agreement or regula- tions, the IRS and the taxpayer may not introduce the APA or non-factual oral and written representations made in conjunction with the APA request as evidence in any judicial or administrative proceeding re- garding any tax year, issue, or person not covered by the APA. This paragraph does not preclude the IRS and the taxpayer from agreeing to roll back the APA covered method(s), or the IRS’s use of any non- factual material otherwise discoverable or obtained other than in the APA process merely because the parties considered the same or similar material in the APA process. .05 Use as Admissions.Unless provided otherwise by written agreement or regula- tions, the IRS and the taxpayer may not introduce a proposed, cancelled, or revoked APA, or any non-factual oral or written rep- resentations or submissions made during the APA process, as an admission by the other party, in any judicial or administrative pro- ceeding regarding any taxable year of the requested APA term. This paragraph does not preclude the IRS’s use of any non- factual material otherwise discoverable or obtained other than in the APA process merely because APMA and the taxpayer considered the same or similar material in the APA process. SECTION 7: ADMINISTERING THE APA .01 Annual Reports (1) An APA annual report must be filed for each APA year. The report must dem- December 9, 2013Bulletin No. 2013–50 664 onstrate the taxpayer’s compliance with the APA terms and conditions, including the amount of any APA primary adjust- ment for a given APA year. The report must also include all other items required by the APA and disclose any pending or contemplated requests to renew, modify, or cancel the APA. In addition, the report must identify and correct any materially false, incorrect, or incomplete information submitted during the APA process that the taxpayer discovers during the APA year. (2) The taxpayer must file two printed copies and one electronic copy of the an- nual report before the later of (i) the fif- teenth day of the twelfth month following the close of the APA year, and (ii) 90 days after the effective date of the APA. APMA may agree to alternative filing dates if requested by the taxpayer. The taxpayer must file all three copies of the annual report with APMA at the address set forth in the appendix. For bilateral and multilateral APAs, APMA may require the taxpayer to simultaneously file a copy of the annual report with the applicable foreign competent authority(ies). (3) The taxpayer will be notified if it is necessary to clarify or complete the infor- mation submitted in the annual report. The taxpayer must supply the additional infor- mation by the date specified in the notice. (4) Any request the taxpayer receives to clarify or complete information in an annual report is not an examination or the commencement of an examination of the taxpayer for purposes of section 7605(b) of the Code or any other provision of the Code. (5) The taxpayer must amend its an- nual report within 45 days after becoming aware of any incomplete or incorrect in- formation or any incorrect application of the covered method(s) presented in the report. (6) APMA may, at its discretion, grant an extension to submit the annual report if the taxpayer provides written notification of its request before the due date and explains the circumstances necessitating the extension. (7) The annual report must contain the following declarations, as applicable: Under penalties of perjury, I declare that I have examined this annual report including accompanying doc- uments, and, to the best of my knowledge and belief, this annual report contains all the relevant facts relating to the annual reporting re- quirements pursuant to the APA, and such facts are true, correct, and complete. [If applicable: An adjustment to conform taxable income and other relevant items to reflect the results reported herein has been reported to IRS Examination.] [If applicable: An amended income tax return to conform taxable income and other relevant items to reflect the results reported herein [has been] [will be] filed with the appropriate Internal Revenue Service Center.] (8) The taxpayer must sign the decla- ration according to the instructions in the appendix regarding perjury statements. (9) Failure to file a timely, complete, or accurate annual report may be grounds for canceling or revoking the APA under sec- tion 7.06. .02APA Repatriation (1)Bilateral and Multilateral APAs. Subject to the requirements of section 7.02(2), APMA will apply the rules and principles set forth in section 11 of Rev. Proc. 2014 –XX governing MAP repatria- tion to determine the terms of APA repa- triation for bilateral and multilateral APAs. When MAP repatriation is not agreed to as part of the MAP resolution, APMA will instead determine the terms of APA repatriation for bilateral and multi- lateral APAs by following the terms under which repatriation payments may be made under Rev. Proc. 99 –32. (2)Requirements Pertaining to Repa- triation in Bilateral or Multilateral APAs. APMA will not apply the rules and prin- ciples set forth in section 11 of Rev. Proc. 2014 –XX governing MAP repatriation to determine the terms of APA repatriation in a bilateral or multilateral APA unless the following conditions are satisfied: (i) no person (whether or not a “United States taxpayer” within the meaning of Rev. Proc. 99 –32) that will make or receive repatriation payments would be barred from making or receiving repatriation payments under the principles of section 3.01 or 3.03 of Rev. Proc. 99 –32; and (ii) the taxpayer explicitly requests MAP re- patriation in its APA request or in a sup- plemental written submission filed with APMA prior to a MAP resolution being reached in its case. (3)Unilateral APAs. APMA will de- termine the terms of APA repatriation for unilateral APAs by following the terms under which repatriation payments may be made under Rev. Proc. 99 –32. .03 Examination (1) With respect to the covered issue(s) in the APA, the IRS will not reconsider the covered method(s) but will instead limit the examination of a taxpayer’s in- come tax return in any given APA year to, and may require that the taxpayer estab- lish, the following: (i) the taxpayer’s com- pliance with the APA terms and condi- tions; (ii) the accuracy of the APA annual report’s material representations; and (iii) the correctness of the supporting data and computations used to apply the covered method(s). (2) The IRS may audit and propose adjustments to the taxpayer’s results as determined under the covered method(s) of the APA without affecting the APA’s validity or applicability. The taxpayer may agree with the proposed adjustments in the same manner as any other adjust- ment, in which case the IRS will assess any resulting additional tax or refund any resulting overpayment of tax accordingly. If it does not agree with the proposed adjustment, the taxpayer may contest it through available administrative and judi- cial procedures. The taxpayer must in- clude the audit adjustments as finally de- termined for the purpose of applying the covered method(s). As necessary, it must also make any APA primary adjustments, unless otherwise determined by APMA. .04 Record Retention (1) The taxpayer must maintain books and records that are sufficiently detailed to verify that it has complied with the APA terms and conditions. The taxpayer’s compliance with this paragraph fulfills the record-keeping requirements of sections 6038A and 6038C of the Code as applied to the covered issue(s). (2) Upon examination, IRS may re- quest that the taxpayer submit additional information or translate specific docu- ments within 30 days. The IRS may ex- tend this period for good cause. The fact that a non-U.S. jurisdiction may impose a penalty upon the taxpayer or other person for disclosing any such requested material Bulletin No. 2013–50December 9, 2013 665 will not constitute reasonable cause for noncompliance with the IRS’s request. .05 Revising the APA (1) An APA may be revised by agree- ment of the parties (including the foreign competent authority(ies) in the case of a bilateral or multilateral APA) and any such revision is effective upon the date of the execution of the revision. APMA may agree to revise an APA in lieu of cancel- ing or revoking it. (2) If APMA agrees to revise a bilateral or multilateral APA, it will submit the re- vised APA to obtain the consent of the ap- plicable foreign competent authority(ies) to do the same. If the foreign competent au- thority(ies) refuse(s) to accept the revised APA, or if the competent authorities cannot agree on a revised APA acceptable to all parties, APMA and the taxpayer may agree to (i) apply the existing APA or the revised APA for domestic U.S. purposes to one or more APA years, or (ii) seek to cancel the APA as of a specific date. .06 Revoking or Canceling the APA (1) APMA may revoke an APA due to fraud or malfeasance (as defined in section 7121 of the Code), or disregard (as defined in sections 6662(b)(1) and (c) of the Code) by the taxpayer in connection with the APA, including, but not limited to, fraud, malfea- sance, or disregard involving (i) material facts in the request or subsequent submis- sions (including an annual report) or (ii) lack of good faith compliance with the APA terms and conditions. (2) APMA may cancel an APA due to the taxpayer’s misrepresentation, mistake with respect to a material fact, failure to state a material fact, failure to file a timely annual report, or lack of good faith compli- ance with the APA terms and conditions. (3) Unless the parties agree to revise the APA, APMA will cancel an APA in the event of a failure of a critical assumption or a material change in governing case law, statute, regulation, or applicable treaty. (4) For purposes of this section 7.06(1) and (2), APMA will consider facts mate- rial if, for example, knowledge of the facts could reasonably have resulted in an APA with significantly different terms and con- ditions. With respect to annual reports, APMA will consider facts material if, for example, knowledge of the facts would have resulted in (a) a materially different allocation of income, deductions, or cred- its than those reported in the annual re- port, or (b) the failure to meet a critical assumption. (5) APMA may waive cancellation if the taxpayer can show good faith and rea- sonable cause and agrees to make all ad- justments proposed to correct for the mis- representation,mistakeregardinga material fact, failure to state a material fact, or noncompliance. (6) If APMA revokes an APA, the re- vocation relates back to the first day of the first APA year. The IRS may (a) deter- mine deficiencies in income taxes and ad- ditions thereto; (b) deny relief under Rev. Proc. 99 –32; (c) allow the taxpayer relief under Rev. Proc. 99 –32, but determine the interest on any account receivable es- tablished under section 4.01 of Rev. Proc. 99 –32 without mutual agreement or cor- relative relief; (d) revoke the APA as an ”egregious case” under Rev. Rul. 80 –231, 1980 –2 C.B. 219, to deny the taxpayer a foreign tax credit; and (e) deny a request for relief submitted under Rev. Proc. 2014 –XX. APMA will seek to coordinate these or any other action concerning revo- cation of a bilateral or multilateral APA with the foreign competent authority(ies). (7) APMA’s cancellation of an APA generally is effective as of the beginning of the taxable year in which the critical assumption failed or the beginning of the year to which the misrepresentation, mis- take regarding a material fact, failure to state a material fact, or noncompliance relates. If, however, the cancellation re- sults from a change in case law, statute, regulation, U.S. income tax treaty, or co- ordination agreement, the cancellation generally is effective at the beginning of the year that contains the effective date of the change in case law, statute, regulation, U.S. income tax treaty, or coordination agreement. (8) For periods following the effective date of the cancellation, the APA has no further force and effect with respect to the IRS and the taxpayer for U.S. income tax purposes. APMA will seek to coordinate any action concerning the cancellation of a bilateral or multilateral APA with the foreign competent authority(ies). .07Change in Case Law, Statute, Reg- ulation, or Treaty.If applicable U.S. case law, statutes, regulations, or treaties change the federal income tax treatment of any matter covered by the APA, the new case law, statute, regulation, or treaty provision supersedes any inconsistent terms and conditions of the APA. SECTION 8: RENEWING THE APA .01 General. A request to renew a cur- rent APA may be made either by filing a complete APA request or by filing an ab- breviated APA request. A taxpayer must file a complete APA request unless it has obtained APMA’s permission to file an abbreviated APA request. APMA will grant permission to file an abbreviated APA request only if (i) the taxpayer sat- isfies the pre-filing requirements set forth in section 3 and detailed in this section 8, and (ii) the applicable law, facts and cir- cumstances, economic conditions, and other relevant factors surrounding the covered issue(s), covered method(s), and terms and conditions of the current APA are reasonably expected to be substan- tially the same as those in the proposed renewal APA years. If either of these re- quirements is not satisfied, the taxpayer must file a complete APA request and otherwise comply with all other provi- sions of this revenue procedure. .02 Timing.Taxpayers are encouraged to file a request to renew a current APA nine months before the expiration of the final APA year. .03 Pre-filing Memorandum Require- ment for Abbreviated APA Requests.As noted in section 3.02(4), a taxpayer that seeks to file an abbreviated APA request to renew an APA must submit a pre-filing memorandum. Among the other required items, the pre-filing memorandum must (i) present the taxpayer’s arguments that the applicable law, facts and circumstances, economic conditions, and other factors surrounding its proposed covered issue(s) and method(s) for the proposed APA years are substantially the same as those surrounding the current APA, (ii) specify any information, documents, or other ma- terials the taxpayer proposes to omit from its submission, and (iii) discuss the tax- payer’s arguments that the information, documents, or other materials the taxpayer proposes to omit from its APA request are not necessary for APMA’s evaluation of the APA request. .04 Actions Taken on APA Renewal Re- quests.In accordance with section 3.02(8), December 9, 2013Bulletin No. 2013–50 666 APMA will determine whether to hold a pre-filing conference after reviewing the pre-filing memorandum. APMA may deter- mine that no pre-filing conference is re- quired and that an abbreviated APA request will be acceptable. In that event, APMA will provide the taxpayer with instructions on preparing the abbreviated APA request. If APMA determines that a pre-filing con- ference is required, the taxpayer will be ex- pected to discuss the arguments presented in its pre-filing memorandum. If after the pre- filing conference APMA decides that an ab- breviated APA request is acceptable, it will provide the taxpayer with instructions on preparing the request. If APMA decides that it will not accept an abbreviated APA re- quest, the taxpayer will be instructed to file a complete APA request. SECTION 9: DISCLOSURE .01 Confidentiality.An APA, any back- ground information relating to an APA, and the taxpayer’s APA request and any supple- mentary materials submitted in conjunction with the APA request are return information and are confidential.Seesections 6103, 6105, 894, and 7852(d) of the Code. .02 Not “Written Determinations”.An APA, background information related to the APA, an APA request, and supple- mentary materials submitted in conjunc- tion with the APA request are not “written determinations” and are not open to public inspection.Seesection 6110 of the Code. .03 Statutory Report.The Secretary must prepare an annual report for public disclo- sure.Seesection 521(b) of the Ticket to Work and Work Incentives Improvement Act of 1999, Pub. L. 106 –170, 113 Stat. 1860, 1925. That report includes specifically designated information concerning all APAs, in a form that does not identify taxpayers, their trade secrets, or proprietary or confidential business or financial information. .04 Exchange of Information.APAs, annual reports, and factual information contained in APA requests are subject to exchange of information under U.S. in- come tax treaties or U.S. income tax in- formation exchange agreements in accor- dance with the terms of such treaties and agreements (including terms regarding relevancy, confidentiality and the protec- tion of trade secrets). In cases in which the exchange of information would be discre- tionary, information may be exchanged to the extent consistent with sound tax ad- ministration and the practices of the rele- vant foreign competent authority. SECTION 10: EFFECT ON OTHER DOCUMENTS Rev. Procs. 2006 – 09, 2006 –1 C.B. 278, and 2008 –31, 2008 –1C.B. 1133, are mod- ified and superseded by this revenue proce- dure. Rev. Proc. 2014 –XX is amplified. SECTION 11: EFFECTIVE DATE This revenue procedure will apply to all APA requests, including requests for renewal, received on or after [DATE]. By agreement, this revenue procedure may apply to any APA resulting from an APA request pending on [DATE]. SECTION 12: PAPERWORK REDUCTION ACT The collection of information contained in this revenue procedure has been reviewed and approved by the Office of Management and Budget in accordance with the Paper- work Reduction Act (44 U.S.C. 3507) under control number 1545 – 1503. An agency may not conduct or spon- sor, and a person is not required to re- spond to, a collection of information un- less the collection of information displays a valid control number. The collection of information in this revenue procedure is in sections 3.02, 3.04, 3.10, 3.11, 5.01, 7.01, 7.04, 8.01 and 8.03 and in the appendix. This informa- tion is required, and will be used, to pro- vide the IRS sufficient information to evaluate and process the APA request or to determine whether the taxpayer is in compliance with the terms and conditions of an APA. APMA will use this informa- tion to evaluate the proposed covered method(s) and the taxpayer’s compliance with the terms and conditions of any APA to which it is a party. The collection of information is required to obtain an APA. The likely respondents are business or other for-profit institutions. The estimated total annual reporting and/or recordkeeping burden is 10900 hours. The estimated average burden for an APA pre-filing conference is 10 hours; the estimated average burden for an APA re- quest is 60 hours; and the estimated aver- age burden for preparation of an annual report by a party to an APA is 15 hours. The estimated number of respondents and/or recordkeepers is 390. The estimated annual frequency of re- sponses is one request or report per year per applicant or party to an APA, except that a taxpayer requesting an APA may also submit a pre-filing memorandum. Books or records relating to a collec- tion of information must be retained as long as their contents may become mate- rial in the administration of any internal revenue law. Generally tax returns and tax return information are confidential, as re- quired by section 6103 of the Code. DRAFTING INFORMATION The principal authors of this document are John Hughes and Rebecca Kalmus of the Office of the Deputy Commissioner (International), LB&I; and Angela Hol- land of the Office of the Associate Chief Counsel (International). For further infor- mation regarding this revenue procedure, please contact Ms. Kalmus at (202) 515- 4746 or Ms. Holland at (202) 317-5474 (not toll free numbers). APPENDIX This appendix sets forth instructions on preparing and filing an APA request. Unless APMA has explicitly instructed the tax- payer in writing to file an abbreviated APA request pursuant to section 5 or 8 of this revenue procedure, the APA request must be prepared and submitted according to the instructions provided in this appendix. APMA may reject an APA request that does not comply with these instructions. A complete APA request will provide the information specified below and all other information reasonably necessary to permit the APA team to evaluate fully the proposed covered method(s). The level of detail required will depend on the facts and circumstances of each case and will be governed by relevancy and materiality considerations (keeping in mind that the APA request should provide enough in- formation to allow the reader to concur that a matter is not relevant or material). The information in the APA request should be tailored to the facts relating to the proposed covered group, the proposed covered issue(s) (including information supporting the inclusion of any proposed Bulletin No. 2013–50December 9, 2013 667 APA rollback years), and relevant legal authority. It should also take into account discussions with APMA in any pre-filing memorandum or pre-filing conference. Section 1 of this appendix addresses the required content of APA requests. Section 2 sets forth instructions on submitting printed and electronic copies of APA requests. Sec- tion 3 presents instructions on paying user fees for APA requests. Section 4 provides addresses and contact information. SECTION 1. CONTENT OF APA REQUESTS .01General.An APA request must in- clude a cover letter followed by the ex- hibits presented in the order as listed in this section. An original of the cover let- ter, signed and dated by the taxpayer or the taxpayer’s authorized representative, must be included in one of the three re- quired printed copies of the APA request (seesection 2 of this appendix). If the taxpayer’s authorized representative signs the original of the cover letter, the tax- payer and authorized representative must satisfy the relevant instructions on signa- tures in Rev. Proc. 2005–1, 2005–1 I.R.B. 1 (or its successor). The cover letter and the exhibits must contain or respond to the required statements, descriptions, expla- nations, and other requested information. If the requested information is not appli- cable to the APA request, a suitable ex- planation must be provided. .02Cover Letter.The cover letter to the APA request must be presented according to the instructions and structure set forth below. Part 1.Executive Summary Part 2.Administrative Information 1.1Identifying information: List the name, address, and taxpayer identification number(s) of each member of the pro- posed covered group and the Standard Industrial Classification (“SIC”) and the North American Industry Classifi- cation System (“NAICS”) codes (number and code description) of the controlled group as reported on the taxpay- er’s most recently filed federal tax returns 1.2Summary of APA request: Provide an executive summary of the content of the APA request that addresses the following: a. Whether the taxpayer proposes a unilateral APA or a bilateral or multilateral APA, and, if applicable, the U.S. tax treaty(ies) and treaty articles governing the APA request; b. Whether the APA request proposes a renewal of an existing APA or the extension of a MAP resolution from MAP or ACAP years into APA years; c. The proposed APA years and the proposed APA rollback years; d. The proposed covered issue(s) and an estimated dollar value of such issue(s) in the proposed APA years and, if relevant, the dollar values of the proposed covered issue(s) in the prior three pre-APA years; and e. The proposed covered method(s), including, as applicable, the proposed tested party(ies), profit level indicator(s), and inter- quartile range(s) 2.1Authorization: List the names of and contact information for all individuals authorized by a Form 2848 to repre- sent the taxpayer in connection with the APA request and all individuals authorized by a Form 8821 to inspect or receive confidential tax information about the taxpayer in connection with the APA request, along with a designa- tion as to which individual will serve as the point of contact for the APA team 2.2IRS Office: Identify the IRS office having examination jurisdiction over the taxpayer, together with the name of and contact information for the taxpayer’s IRS Examination team manager if the taxpayer is under examination when the APA request is filed 2.3Filed Years: Provide a table with the following information for each member of the proposed covered group: a. All open filed years in the United States and the relevant treaty country(ies), whether or not such years are cur- rently under examination by the IRS or a foreign tax authority; b. All open filed years in which a proposed covered issue or a substantially similar issue is under review by IRS Appeals or its equivalent in the relevant treaty country(ies); c. All open filed years in which an actual or proposed adjustment has been made by either the IRS or a foreign tax authority relating to the proposed covered issue(s) or to substantially similar issues; and d. The expiration dates of statutes of limitations for all open filed years in the United States and in the relevant treaty country(ies) 2.4Request for SAP Review: If applicable, include a statement that the APA request is intended to serve as a request for SAP review for such taxable years specified by the taxpayer pursuant to section 5.02(5) of this revenue procedure December 9, 2013Bulletin No. 2013–50 668 Part 3. Proposed Covered Issue(s) 3.1Pre-filing information: Provide the following information: a. Whether a mandatory or optional pre-filing memorandum was filed; and b. Whether a pre-filing conference was held and, if so, the date of and attendees at the conference 3.2APA rollback: Provide the following information: a. If the taxpayer is seeking consideration of an APA rollback, list the open pre-APA years to which the APA rollback would apply; and b. If the taxpayer is not seeking consideration of an APA rollback to one or more of its open pre-APA years, dis- cuss the reasons as to why an APA rollback is not appropriate 3.3Background on proposed covered group: Provide background on the following points, with reference to the cov- ered issue diagrams: a. The general history of the business operations of the proposed covered group and of the controlled group; b. The worldwide gross revenue of the controlled group in the most recent taxable year available; c. The functional currency of each member of the proposed covered group; d. For each member of the proposed covered group, any business line(s) that is (are) outside the scope of the pro- posed covered issue(s); and e. The industry in which the proposed covered group operates, including discussion of relevant macroeconomic and other industry-wide factors affecting the proposed covered group, the commercial features of the markets and geographical areas in which the proposed covered group operates, and the participants and competitors in the proposed covered group’s industry 3.4Covered issue diagrams: Provide a detailed discussion of each proposed covered issue with reference to the cov- ered issue diagrams: a. The functions performed by each member of the proposed covered group in relation to the proposed covered issue; b. The assets employed by each member of the proposed covered group in relation to the proposed covered issue; c. The risks assumed by each member of the proposed covered group in relation to the proposed covered issue; d. Transactional or commercial flows between and among members of the proposed covered group, between mem- bers of the proposed covered group and customers and other uncontrolled parties, and between members of the proposed covered group and members of the controlled group outside of the proposed covered group; e. Principal intercompany contracts or other agreements, written or otherwise, between and among members of the proposed covered group; and f. Unless the proposed covered method involves a profit split (within the meaning of Treas. Reg. § 1.482– 6 or Chapter II of the OECD Guidelines) between two or more members of the proposed covered group, the identity of the member of the controlled group that is proposed to be regarded as the principal in relation to the pro- posed covered issue, whether or not it is a member of the proposed covered group 3.5Rulings, determinations, and proceedings: Provide information on the following: a. Current or expired rulings issued by a relevant foreign tax authority covering intercompany transactions or busi- ness activities of members of the proposed covered group that are within the scope of the proposed covered issue(s); b. The terms of any MAP resolution of a MAP case addressing intercompany transactions or business activities of members of the proposed covered group that are within the scope of the proposed covered issue(s); and c. Any judicial or administrative proceedings in the United States or in the relevant treaty country(ies) to which any members of the proposed covered group are or have been parties involving intercompany transactions or business activities that are within the scope of the proposed covered issue(s) 3.6Ancillary issues: List the ancillary issues (if any) included in or among the proposed covered issue(s) of the APA request, e.g., terms of APA repatriation Bulletin No. 2013–50December 9, 2013 669 Part 4. Proposed Covered Method(s) Part 5. Proposed APA Terms and Conditions .03Exhibits.The APA request must also include the following exhibits after the cover letter, separated and ordered as indicated. While all of the exhibits must be included as part of a complete APA request, certain exhibits are required to be produced in both printed and electronic forms; other exhibits need be produced only in electronic form (seesection 2 of this appendix). 4.1Selection of proposed covered method(s): Discuss the selection of the proposed covered method(s) with reference to the standards governing the selection of the “best method” under Treas. Reg. § 1.482-1(c) and, in the case of bilateral or multilateral APA requests, the selection of the “most appropriate” method under Chapter I of the OECD Guidelines 4.2Search and screening process: Describe the research and screening process and criteria used to identify and select independent comparable agreements or independent companies upon which the proposed covered method is based, including the initial search universe, the qualitative and quantitative screens used to accept or reject potential com- parable agreements or companies, and the numbers of potential comparable agreements or companies accepted and rejected at the different stages of the search and screening process 4.3Adjustments within proposed covered method(s): Provide a detailed explanation of any adjustments made to the selected proposed comparable agreements or results of independent companies or to the results of the tested party, such as adjustments relating to product line segregations; differences in accounting practices; differences in func- tions performed, assets employed, or risks assumed; volume or scale differences; or differences in economic or market conditions 4.4Demonstration of proposed covered method(s): Provide a table summarizing the results of applying the proposed covered method(s) to the relevant members of the proposed covered group for (i) the most recent three pre-APA years (or to as many pre-APA years as are available, if fewer than three are available), (ii) the first proposed APA year, and (iii) to the extent available, forecasted data of the relevant members of the proposed covered group for the proposed APA years 4.5Segmentation of financial results: If the proposed covered method(s) is(are) applied to a subset of the assets, lia- bilities, income, and expenses in the financial statements (seeExhibit 17), provide a segmentation of the financial statements and describe in detail (i) those items in the segmented financial statements that have been allocated or apportioned to the applicable proposed covered issue(s) and to other issues, and (ii) the method(s) of allocation or apportionment applied 5.1Review of Proposed APA: Provide a detailed discussion and explanation of the proposed APA terms and condi- tions as reflected in the draft APA submitted with the APA request, noting, in particular, any proposed APA terms and conditions that differ from the APA terms and conditions as reflected in the model APA available on the APMA website [link to be provided when available] Exhibit 1Contents of exhibits: Provide a table or similar comprehensive list of the exhibits submitted in both printed and electronic form and those submitted in only electronic form Exhibit 2Authorization form: Include a properly executed Form 2848 (Power of Attorney and Declaration of Repre- sentative) or Form 8821 (Tax Information Authorization) Exhibit 3Protective claim: In the case of a bilateral or multilateral APA request, provide a statement affirming whether the APA request is to serve as a protective claim pursuant to section 13 of Rev. Proc. 2014-XX and, if so, include the information required by section 13.02(3) of Rev. Proc. 2014-XX Exhibit 4Waiver of ex parte communication: If the APA request involves a rollback to pre-APA years in which the proposed covered issue(s) or a related issue is unresolved and under consideration by IRS Appeals, include a waiver, modeled on the following language, of the taxpayer’s right to be present during communications between IRS Appeals and members of the APA team: Waiver of Ex Parte Communication: [Name of taxpayer(s)] agrees to the participation of IRS Appeals in the consid- eration of this APA request and hereby waives its right to be present during, or to participate in, meetings relating to the APA request or to be a party to discussions concerning the proposed covered issue(s) between IRS Appeals and members of the APA team December 9, 2013Bulletin No. 2013–50 670 Exhibit 5Consent to disclosure: In the case of a bilateral or multilateral APA request, include a declaration, dated and signed by an authorized officer of the taxpayer having personal knowledge of the facts concerning the pro- posed covered issue(s), that the taxpayer consents to the disclosure of the contents of the APA request – other than trade secrets, if the taxpayer so requests – to the applicable foreign competent authority(ies) within the limits contained in the U.S. tax treaty(ies) governing the APA request Exhibit 6“Penalties of perjury” declaration: Include the following “penalties of perjury” declaration: Under penalties of perjury, I declare that I have examined this [APA request] [supplemental submission relating to this APA request], including accompanying documents, and, to the best of my knowledge and belief, the [APA re- quest] [supplemental submission] contains all the relevant facts relating to the [APA request] [supplemental submis- sion], and such facts are true, correct, and complete. The declaration must be signed by the taxpayer on whose behalf the request is being made and not by the taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the taxpayer who has personal knowledge of the facts, whose duties are not limited to obtaining letter rulings or determination letters from the IRS or negotiating APAs, and who is authorized to sign the taxpayer’s in- come tax return pursuant to section 6062 of the Code. The person signing for any non-corporate taxpayer must be an individual who has personal knowledge of the facts and who is authorized to sign in accordance with sections 6061 or 6063 of the Code, as applicable Exhibit 7E-mail authorization: Include a signed original of the memorandum of understanding authorizing communi- cations with APMA via e-mail; or a statement that the taxpayer does not authorize e-mail communications, together with a brief explanation for its declining to do so (seesection 3.06 of this revenue procedure) Exhibit 8User fee receipt: Include a copy of the receipt obtained after paying the required APA user fee (seesection 3 of this appendix) Exhibit 9Documents submitted to foreign competent authorities: List all information or documents submitted to a for- eign tax authority or foreign competent authority in connection with the APA request, either prior to or con- currently with the submission of the APA request to APMA, noting the information or documents for which English translations are available and any information or documents submitted to a foreign tax authority or foreign competent authority in connection with the APA request that are not included in the APA request submitted to APMA Exhibit 10Pre-filing Submissions: Include any pre-filing memoranda or other materials submitted in connection with the APA request Exhibit 11Covered issue diagrams: Include diagrams, charts, or similar representations depicting the following infor- mation, each presented in a manner similar to and with a degree of detail no less than that presented in the diagrams accompanying the case studies “Alpha” through “Foxtrot” in Joint Committee on Taxation,Pres- ent Law and Background Related to Possible Income Shifting and Transfer Pricing(JCX-37-10), July 20, 2010 (available atwww.jct.gov;see alsoAPMA website [link to be included when available]): a. The controlled group’s legal structure, with clear indications as to the members of the proposed covered group; b. The controlled group’s tax structure, with clear indications as to, among other items, ownership relationships and tax filing characterizations of members of the proposed covered group under the Code and under applicable rules in the relevant treaty country(ies) (e.g., partnerships, branches, or disregarded entities); c. The controlled group’s and proposed covered group’s business units or similar organizational divisions as used for management purposes, together with a table or other reconciliation showing the relationship between such business units and the legal entities comprising the controlled and proposed covered groups; d. The value chain of the proposed covered group, comprising commercial or transactional flows between and among members or business units of the proposed covered group, between members or business units of the proposed cov- ered group and customers and other uncontrolled parties, and between members or business units of the proposed covered group and any other members or business units of the controlled group outside the proposed covered group; e. Organization or similar charts identifying executive-level functional or occupational roles within the business units or within members of the proposed covered group that are relevant to the proposed covered issue(s) (e.g., vice president of marketing for transactions involving sales of tangible goods), together with (i) the names of individuals occupying such executive-level functional roles at the time the APA request is filed, and (ii) head- counts for the relevant business units or members of the proposed covered group; and f. Intercompany contracts or agreements, whether written or implied, between and among members of the pro- posed covered group and between and among members of the proposed covered group and members of the controlled group outside the proposed covered group Bulletin No. 2013–50December 9, 2013 671 SECTION 2. MANNER AND MEDIA OF APA REQUEST FILINGS .01General.The taxpayer must provide four copies of its APA request as follows: one (1) original, bound printed submission containing signed originals of the cover letter and “penalties of perjury” declaration and, as applicable, of the authorization forms, consent to disclosure, and e-mail authorization, together with copies of all other required printed information; two (2) bound photocopies of the contents of the original printed submission; and one (1) electronic copy of the contents of the original printed submission, together with the required electronic-only attachments, on CD or flash drive or similar acceptable electronic storage medium. All four copies of the APA request must be filed with APMA at the address set forth in section 4 of this appendix. .02Contents and Format of Printed Submissions.Each printed copy of the APA request must contain (i) the cover letter to the APA request, and (ii) Exhibits 1 through 11. If possible, each printed copy should contain all such content in a single, bound volume. The exhibits must be tabbed or separated and identified and ordered as presented in section 1 of this appendix. If an exhibit is not applicable to the APA request, a statement to this effect must be included in the relevant tabbed section. Exhibit 12APAs: Include a copy of any prior or current APA the taxpayer or another member of the proposed covered group has entered into with the IRS or with a foreign tax authority involving intercompany transactions or business activities within the scope of the proposed covered issue(s) Exhibit 13Selection process: Provide a table or similar report on the step-by-step results of applying criteria for select- ing comparable agreements or independent comparable companies (seepart 4.2) Exhibit 14Information on selected comparables: Include a detailed discussion or detailed presentation, as applicable, of the follow- ing: the contractual terms (within the meaning of Treas. Reg. § 1.482–1(d)(3)(ii)) of selected comparable agreements, including the form of consideration charged or paid; and for APA requests in which the proposed covered method(s) involve(s) an application of the comparable profits method (as defined in Treas. Reg. § 1.482–5) or the transactional net margin method (as defined in the OECD Guidelines), (i) unadjusted income statement data for the most recent five taxable years (or as many years as are available, if fewer than five years are available) and balance sheet data for the most recent six taxable years (or as many years as are available, if fewer than six years are available) of the selected independent comparable companies, and (ii) (if applicable) the application to such financial data of any adjustments pursuant to the proposed covered method(s) (seeparts 4.3 and 4.4) Exhibit 15Application of APA template: For APA requests in which the proposed covered method involves an application of the comparable profits method (as defined in Treas. Reg. § 1.482–5) or the transactional net margin method (as defined in the OECD Guidelines), provide income statement data for the most recent five taxable years (or as many years as are available, if fewer than five years are available) and balance sheet data for the most recent six taxable years (or as many years as are available, if fewer than six years are available) for the relevant member(s) of the proposed covered group in the APA template (available on the APMA website [link to be included when available]) Exhibit 16Federal income tax filings: Provide copies of the following federal income tax forms for each of the three most recent filed years of the taxpayer: a. Form 1120 or applicable equivalent; b. Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations); c. Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business); and d. Form 8858 (Information Return of U.S. Persons With Respect to Foreign Disregarded Entities) Exhibit 17Financial statements: Provide copies of financial statements (audited, if available) for each relevant member of the pro- posed covered group for each of the most recent three pre-APA years and specify the accounting standard used (e.g., U.S. GAAP) Exhibit 18Section 6662 documentation: Include a copy of the documentation prepared in consideration of section 6662(e) of the Code relating to intercompany transactions or business activities that are within the scope of the proposed covered is- sue(s) for each relevant member of the proposed covered group for each of the most recent three pre-APA years Exhibit 19Regulatory filings: Include a copy of the Form 10-K or similar annual SEC filing submitted for U.S. regulatory pur- poses by the controlled group for each of the most recent three pre-APA years Exhibit 20APA annual reports: For renewal APA requests, provide all APA annual reports filed with APMA with respect to the current APA Exhibit 21Proposed draft APA: Provide a proposed draft APA in a form substantially similar to APMA’s current model APA (available on the APMA website [link to be included when available]), together with a “redline” version of the same showing the differences between the model APA and the proposed draft APA Exhibit 22Intercompany agreements: Include copies of intercompany contracts or agreements between the taxpayer and other members of the proposed covered group that are within the scope of the proposed covered issue(s) December 9, 2013Bulletin No. 2013–50 672 .03Contents and Format of Electronic Copy. (1) The electronic copy of the APA request must contain (i) the cover letter to the APA request, and (ii) Exhibits 1 through 22. The exhibits should consist of separate electronic files named in a manner that corresponds to the exhibit numbers presented in section 1 of this appendix. If an exhibit is not applicable to the APA request, a statement to this effect must be included in the electronic file. (2) The electronic copy of the APA request must include the cover letter to the APA request in both Microsoft Word (“Word”) and in Adobe Portable Document (“.pdf”) formats. Exhibit 21 must be provided in Word format. All other exhibits readily available in Word or Microsoft Excel (“Excel”) format should be provided in those forms, as applicable, instead of, or in addition to, .pdf format. (3) All electronic documents provided in conjunction with an APA request and throughout the APA process must be searchable, unless the file is not readily available in searchable form (e.g., a photocopy of an intercompany agreement). (4) All documents presented in Excel format must be provided with formulas and linkages intact. SECTION 3. USER FEES .01General.User fees must be paid through the Pay.gov website. Instructions on making user fee payments are available on the IRS website athttp://www.irs.gov/Individuals/International-Taxpayers/ChangestoAPAandLOBUserFeeFilingProcedures. APMA will not consider APA request complete, and will hold the APA request in suspense, until the correct user fee is paid through the Pay.gov website. .02Separate Fees.Subject to the provisions of this section, a separate user fee is required for each unilateral, bilateral, or multilateral APA request. .03Amounts.The user fee amounts are as follows: (1) $50,000 for each unilateral, bilateral, or multilateral APA request; (2) $35,000 for each renewal APA request; (3) $22,500 for each APA request eligible for the small case APA user fee; and (4) $10,000 for each amendment to a current unilateral, bilateral, or multilateral APA .04Small Case APA User Fee Eligibility.An APA request is eligible for the small case APA user fee only if all of the following apply: (i) the controlled group has sales revenues, within the meaning of Treas. Reg. §1.482–5(d)(1), of less than $500 million in each of its most recent three pre-APA years; (ii) the aggregate value of the proposed covered issue(s) is not expected to exceed $50 million in any given year of the proposed APA years; (iii) the aggregate value of any transfer of rights in, or rights to use, intangibles is not expected to exceed $10 million in any given year of the proposed APA years; and (iv) no proposed covered issue involves intangible property arising from, or otherwise related to, an intangible development arrangement. .05Fees for Amendments.For purposes of section 3.03 of this appendix, an amendment includes coverage of additional issues or other determinations and material changes to a proposed covered method. APMA will not impose this amendment fee if APMA or a foreign competent authority initiates the request to amend the proposed covered issue(s) or method(s). SECTION 4. ADDRESSES AND CONTACT INFORMATION All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS, FedEx, UPS, or any other carrier. Phone number:TBD Mailing address:Deputy Commissioner (International) Large Business and International Division Internal Revenue Service 1111 Constitution Avenue, N.W. Routing: M3-370 Washington, D.C. 20224 (Attention: APMA) Website:[link to be included when available] Office location:801 Ninth Street, N.W., Washington, D.C. 20001. Mail should not be sent to this address. Bulletin No. 2013–50December 9, 2013 673 Part IV. Items of General Interest Notice of Proposed Rulemaking Authority for Voluntary Withholding on Other Payments REG–146620 –13 AGENCY: Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking and notice of proposed rulemaking by cross reference to temporary regulations. SUMMARY: This document contains proposed regulations under the Internal Revenue Code (Code) relating to volun- tary withholding agreements. In this issue of the Bulletin, the IRS is also issuing temporary regulations to allow the Sec- retary to issue guidance in the Internal Revenue Bulletin to describe payments for which the Secretary finds that in- come tax withholding under a voluntary withholding agreement would be appro- priate. The text of those temporary reg- ulations also generally serves as the text of these proposed regulations. The reg- ulations affect persons making and per- sons receiving payments for which the IRS issues subsequent guidance autho- rizing the parties to enter into voluntary withholding agreements. DATES: Written or electronic comments and requests for a public hearing must be received by February 25, 2014. ADDRESSES: Send submissions to: CC: PA:LPD:PR (REG–146620 –13), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand- delivered Monday through Friday be- tween the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR(REG–146620 –13), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washing- ton, DC, or sent electronically via the Fed- eral eRulemaking Portal athttp://www. regulations.gov(IRS REG–146620 –13). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Linda L. Conway-Hataloski at (202) 317-6798; concerning submission of comments and request for hearing, Olu- wafunmilayo (Funmi) Taylor at (202) 317-5179 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background Section 3402(p) allows for voluntary income tax withholding agreements. Sec- tion 3402(p)(3) authorizes the Secretary to provide regulations for withholding from (A) remuneration for services performed by an employee for the employee’s em- ployer which does not constitute wages, and (B) from any other payment with re- spect to which the Secretary finds that withholding would be appropriate, if the employer and employee, or the person making and the person receiving such other type of payment, agree to such with- holding. Section 3402(p)(3) also autho- rizes the Secretary to prescribe in regula- tions the form and manner of such agreement. Section 31.3402(p)–1 of the Employment Tax Regulations describes how an employer and an employee may enter into an income tax withholding agreement under section 3402(p) for amounts that are excepted from the defi- nition of wages in section 3401(a). Explanation of Provisions The proposed regulations amend the headings to paragraphs (a) and (b) of §31.3402(p)–1 to clarify that those para- graphs apply to voluntary withholding agreements between an employer and em- ployee. Temporary regulations in this is- sue of the Bulletin also amend the Em- ployment Tax Regulations (26 CFR part 31) under section 3402(p). The text of those temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations ex- plains the amendments. Special Analyses It has been determined that this notice of proposed rulemaking is not a signifi- cant regulatory action as defined in Exec- utive Order 12866, as supplemented by Executive Order 13563. Therefore, a reg- ulatory assessment is not required. It has also been determined that 5 U.S.C. 533(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations and because the regulation does not impose a collection of informa- tion on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Internal Revenue Code, these regula- tions have been submitted to the Office of Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business. Comments and Requests for Public Hearing Before these proposed regulations are adopted as final regulations, consideration will be given to any comments that are submitted timely to the IRS as prescribed in the Addresses heading in this preamble. The IRS and Treasury Department request comments on all aspects of the proposed regulations. All comments will be avail- able atwww.regulations.govor upon re- quest. A public hearing will be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for the public hear- ing will be published in theFederal Reg- ister. Drafting Information The principal author of these regula- tions is Linda L. Conway-Hataloski, Of- fice of Associate Chief Counsel (Tax Ex- empt and Government Entities). However, other personnel from the IRS and Trea- sury Department participated in their de- velopment. ***** Proposed Amendments to the Regulations Accordingly, 26 CFR part 31 is pro- posed to be amended as follows: December 9, 2013Bulletin No. 2013–50 674 PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE Paragraph 1. The authority citation for part 31 continues to read in part as fol- lows: Authority: 26 U.S.C. 7805*** Par.2.Section31.3402(p)–1is amended by: 1. Revising the headings of paragraphs (a) and (b). 2. Removing the language “3402(b)” in the first sentence and “3402(p)” in the third sentence and adding “3402(p)(3)(A)” in its place as it appears in paragraph (a) and the five places “3402(p)” as it appears in para- graph (b). 3. Adding paragraphs (c) and (d). The revisions and additions read as fol- lows: §31.3402(p)–1 Voluntary Withholding Agreements. (a)Employer-employee agreement.*** ***** (b)Form and duration of employer- employee agreement.*** ***** (c) [The text of this paragraph (c) is the same as the text of paragraph (c) of §31.3402(p)–1T published elsewhere in this issue of the Bulletin]. (d) [The text of this paragraph (d) is the same as the text of paragraph (d)(1) of §31.3402(p)–1T published elsewhere in this issue of the Bulletin]. John Dalrymple, Deputy Commissioner for Services and Enforcement. (Filed by the Office of the Federal Register on November 27, 2013, 8:45 a.m. and published in the issue of the Federal Register for November 29, 2013, 78 F.R. 71542) Bulletin No. 2013–50December 9, 2013 675 Definition of Terms 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. Revenue rulings and revenue proce- dures (hereinafter referred to as “rul- ings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is being extended to apply to a variation of the 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 with modified, below). Clarifiedis used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confu- sion. 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 with amplified andclarified, 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 being stated in a new ruling. Supersededdescribes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a pe- riod of time in separate rulings. If the new ruling does more than restate the sub- stance of a prior ruling, a combination of terms is used. For example, modified and supersededdescribes 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 published 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 ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rul- ings in the series. Abbreviations The following abbreviations in current use and formerly used will appear in ma- terial published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. 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—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE —Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. Bulletin No. 2013–50December 9, 2013 i Numerical Finding List 1 Bulletins 2013–27 through 2013–50 Announcements 2013-35, 2013-27 I.R.B.46 2013-36, 2013-33 I.R.B.142 2013-37, 2013-34 I.R.B.155 2013-38, 2013-36 I.R.B.185 2013-39, 2013-35 I.R.B.167 2013-40, 2013-38 I.R.B.226 2013-41, 2013-40 I.R.B.322 2013-42, 2013-44 I.R.B.464 2013-43, 2013-46 I.R.B.524 2013-44, 2013-47 I.R.B.545 2013-45, 2013-47 I.R.B.546 2013-46, 2013-48 I.R.B.593 2013-47, 2013-49 I.R.B.620 2013-48, 2013-49 I.R.B.620 2013-49, 2013-49 I.R.B.621 Notices 2013-41, 2013-29 I.R.B.60 2013-42, 2013-29 I.R.B.61 2013-43, 2013-31 I.R.B.113 2013-44, 2013-29 I.R.B.62 2013-45, 2013-31 I.R.B.116 2013-46, 2013-31 I.R.B.117 2013-47, 2013-31 I.R.B.120 2013-48, 2013-31 I.R.B.120 2013-49, 2013-32 I.R.B.127 2013-50, 2013-32 I.R.B.133 2013-51, 2013-34 I.R.B.153 2013-52, 2013-35 I.R.B.159 2013-53, 2013-36 I.R.B.173 2013-54, 2013-40 I.R.B.287 2013-55, 2013-38 I.R.B.207 2013-56, 2013-39 I.R.B.262 2013-57, 2013-40 I.R.B.293 2013-58, 2013-40 I.R.B.294 2013-59, 2013-40 I.R.B.297 2013-60, 2013-44 I.R.B.431 2013-61, 2013-44 I.R.B.432 2013-62, 2013-45 I.R.B.466 2013-63, 2013-44 I.R.B.436 2013-64, 2013-44 I.R.B.438 2013-65, 2013-44 I.R.B.440 2013-66, 2013-46 I.R.B.498 2013-67, 2013-45 I.R.B.470 2013-68, 2013-46 I.R.B.501 2013-69, 2013-46 I.R.B.503 2013-70, 2013-47 I.R.B.528 2013-71, 2013-47 I.R.B.532 2013-72, 2013-48 I.R.B.592 2013-73, 2013-49 I.R.B.598 2013-75, 2013-49 I.R.B.599 2013-77, 2013-50 I.R.B.632 2013-78, 2013-50 I.R.B.633 2013-79, 2013-50 I.R.B.653 Proposed Regulations REG-124148-05, 2013-44 I.R.B.444 REG-161948-05, 2013-44 I.R.B.449 REG-148659-07, 2013-45 I.R.B.473 REG-132251-11, 2013-37 I.R.B.191 REG-148812-11, 2013-45 I.R.B.484 REG-111753-12, 2013-40 I.R.B.302 REG-112815-12, 2013-35 I.R.B.162 REG-114122-12, 2013-35 I.R.B.163 REG-136630-12, 2013-40 I.R.B.303 REG-140789-12, 2013-32 I.R.B.136 REG-144990-12, 2013-39 I.R.B.264 REG-110732-13, 2013-43 I.R.B.405 REG-111837-13, 2013-39 I.R.B.266 REG-113792-13, 2013-38 I.R.B.211 REG-115300-13, 2013-37 I.R.B.197 REG-120927-13, 2013-49 I.R.B.618 REG-146620-13, 2013-50 I.R.B.674 Revenue Procedures 2013-28, 2013-27 I.R.B.28 2013-29, 2013-33 I.R.B.141 2013-30, 2013-36 I.R.B.173 2013-31, 2013-38 I.R.B.208 2013-32, 2013-28 I.R.B.55 2013-33, 2013-38 I.R.B.209 2013-34, 2013-43 I.R.B.398 2013-35, 2013-47 I.R.B.537 2013-36, 2013-49 I.R.B.602 2013-37, 2013-49 I.R.B.612 Revenue Rulings 2013-13, 2013-32 I.R.B.124 2013-15, 2013-28 I.R.B.47 2013-16, 2013-40 I.R.B.275 2013-17, 2013-38 I.R.B.201 2013-18, 2013-37 I.R.B.186 2013-19, 2013-39 I.R.B.240 2013-20, 2013-40 I.R.B.272 2013-21, 2013-43 I.R.B.396 2013-22, 2013-46 I.R.B.496 2013-23, 2013-48 I.R.B.590 2013-24, 2013-49 I.R.B.594 2013-26, 2013-50 I.R.B.628 Treasury Decisions 9620, 2013-27 I.R.B.1 9621, 2013-28 I.R.B.49 9622, 2013-30 I.R.B.64 9623, 2013-30 I.R.B.73 9624, 2013-31 I.R.B.86 9625, 2013-34 I.R.B.147 9626, 2013-34 I.R.B.149 9627, 2013-35 I.R.B.156 9628, 2013-36 I.R.B.169 9629, 2013-37 I.R.B.188 9630, 2013-38 I.R.B.199 Treasury Decisions—Continued 9631, 2013-38 I.R.B.205 9632, 2013-39 I.R.B.241 9633, 2013-39 I.R.B.227 9634, 2013-40 I.R.B.272 9635, 2013-40 I.R.B.273 9636, 2013-43 I.R.B.331 9637, 2013-44 I.R.B.427 9638, 2013-46 I.R.B.487 9639, 2013-48 I.R.B.588 9640, 2013-48 I.R.B.548 9641, 2013-50 I.R.B.622 9646, 2013-50 I.R.B.630 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013. December 9, 2013Bulletin No. 2013–50 ii Finding List of Current Actions on Previously Published Items 1 Bulletins 2013–27 through 2013–50 Notices: 2004-23 Clarified by Notice 2013-57, 2013-40 I.R.B.293 2004-50 Clarified by Notice 2013-57, 2013-40 I.R.B.293 2005-70 Obsoleted by T.D. 9633 2013-39 I.R.B.227 2006-09 Modified and superseded by Notice 2013-79, 2013-50 I.R.B.653 2006-40 Superseded by Notice 2013-68, 2013-46 I.R.B.501 2006-54 Proposed update and supersession to by Notice 2013-78, 2013-50 I.R.B.633 2008-31 Modified and superseded by Notice 2013-79, 2013-50 I.R.B.653 2009-41 Clarified and amplified by Notice 2013-70, 2009-53 Clarified and amplified by Notice 2013-70, 2012-74 Obsoleted by Notice 2013-51, 2013-34 I.R.B.153 2013-16 Superseded by Notice 2013-55, 2013-38 I.R.B.207 2013-29 Clarified by Notice 2013-60, 2013-44 I.R.B.431 2013-36 Appendix updated by Notice 2013-55, 2013-38 I.R.B.207 Superseded by Notice 2013-55, 2013-38 I.R.B.207 2013-39 Amplified by Notice 2013-47, 2013-31 I.R.B.120 2013-40 Amplified by Notice 2013-47, 2013-31 I.R.B.120 Revenue Procedures: 81-60 Modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 83-59 Modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 86-42 Modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 90-52 Modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 96-30 Modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 97-48 Situation 1 superseded, Situation 2 obsoleted by Rev. Proc. 2013-30, 2013-36 I.R.B.173 2003-43 Modified and superseded by Rev. Proc. 2013-30, 2013-36 I.R.B.173 2003-48 Obsoleted in part and superseded in part by Rev. Proc. 2013-32, 2013-28 I.R.B.55 2003-61 Superseded by Rev. Proc. 2013-34, 2013-43 I.R.B.398 2004-34 Modified and clarified by Rev. Proc. 2013-29, 2013-33 I.R.B.141 2004-48 Modified and superseded by Rev. Proc. 2013-30, 2013-36 I.R.B.173 2004-49 Sections 4.01 & 4.02 modified and superseded, Section 4.03 obsoleted by Rev. Proc. 2013-30, 2013-36 I.R.B.173 2007-44 Modified by Ann. 2013-37, 2013-34 I.R.B.155 2007-62 Modified and superseded by Rev. Proc. 2013-30, 2013-36 I.R.B.173 2009-25 Pilot program discontinued by Rev. Proc. 2013-32, 2013-28 I.R.B.55 Revenue Procedures—Continued: 2011-18 Modified and clarified by Rev. Proc. 2013-29, 2013-33 I.R.B.141 2011-49 Modified by Ann. 2013-37, 2013-34 I.R.B.155 2012-25 Obsoleted in part by Rev. Proc. 2013-28, 2013-27 I.R.B.28 2013-1 Amplified and modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 2013-3 Amplified and modified by Rev. Proc. 2013-32, 2013-28 I.R.B.55 Proposed Regulations: 112815-12 Corrected by Ann. 2013-45, 2013-47 I.R.B.546 Revenue Rulings: 58-66 Amplified and clarified by Rev. Rul. 2013-17, 2013-38 I.R.B.201 2012-33 Supplemented and superseded by Rev. Rul. 2013-23, 2013-48 I.R.B.590 2013-17 Supplemented by Notice 2013-61, 2013-44 I.R.B.432 Treasury Decisions: 9610 Corrected by Ann. 2013-41, 2013-40 I.R.B.322 9612 Corrected by Ann. 2013-35, 2013-27 I.R.B.46 9622 Corrected by Ann. 2013-39, 2013-35 I.R.B.167 9627 Corrected by Ann. 2013-44, 2013-37 I.R.B.545 1 A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013. Bulletin No. 2013–50December 9, 2013 iii INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available atwww.irs.gov/irb/. CUMULATIVE BULLETINS The contents of the weekly Bulletins were consolidated semiannually into permanent, indexed, Cumulative Bulletins through the 2008 –2 edition. INTERNAL REVENUE BULLETINS ON CD-ROM Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD-ROM). The CD-ROM can be purchased from National Technical Information Service (NTIS) on the Internet atwww.irs.gov/cdorders(discount for online orders) or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the IRS Bulletin Unit, SE:W:CAR:MP:P:SPA, Washington, DC 20224. Internal Revenue Service Washington, DC 20224 Official Business Penalty for Private Use, $300
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