Internal Revenue Bulletin 2011-17 (PDF rendition): IRS Revenue Procedures

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

Bulletin No. 201
1-17
April 25, 2011
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
T.D. 9518, page 710.
Final regulations relate to the requirement for “specified tax re-
turn preparers,” generally tax return preparers who reasonably
expect to file more than 10 individual income tax returns in a
calendar year (100 or more in 2011), to file individual income
tax returns using magnetic media (electronically) pursuant to
section 6011(e)(3) of the Code.
Notice 2011–26, page 720.
This notice informs tax return preparers of administrative ex-
emptions from the electronic filing requirement under section
6011(e)(3) of the Code and regulation sections 1.6011–7 and
301.6011–7.
Notice 2011–27, page 723.
Solely for calendar year 2011, this notice provides transitional
guidance relating to the new electronic filing requirement un-
der section 6011(e)(3) of the Code and corresponding regula-
tions, specifically regarding the filing restrictions placed upon
specified tax return preparers by that Code section and regula-
tion section 301.6011–7(a)(4)(i). The notice allows a specified
tax return preparer to mail any individual income tax returns in
paper format to the IRS, at the request of a taxpayer, if the
preparer obtains a signed statement containing the taxpayer’s
choice to have the return filed in paper format, and the tax-
payer’s request to have the preparer mail the return to the IRS.
Notice 2011–30, page 724.
2010 nonconventional source fuel credit, section 45K
inflation adjustment factor, and section 45K reference
price.This notice announces the inflation adjustment factor,
the reference price, and the credit amount for the nonconven-
tional source fuel credit for coke or coke gas (other than from
petroleum based products) for the 2010 calendar year.
Notice 2011–31, page 724.
This notice provides guidance to taxpayers regarding how to
answer questions related to foreign financial accounts (FFAs),
found on 2010 federal income tax and information returns,
e.g., Schedule B of Form 1040, the “Other Information” section
of Form 1040, Schedule B of Form 1065, and Schedule N of
Form 1120, among others.
Rev. Proc. 2011–25, page 725.
This procedure provides guidance to specified tax return pre-
parers regarding the time for filing and manner (form and con-
tent) of requests for waiver of the electronic filing requirement
due to undue hardship, under section 6011(e)(3) of the Code
and regulation sections 1.6011–7 and 301.6011–7. The pro-
cedure also provides guidance regarding how to document a
taxpayer’s choice to file the taxpayer’s individual income tax
return in paper format when the return is prepared by the pre-
parer but filed by the taxpayer.
ESTATE TAX
Notice 2011–31, page 724.
This notice provides guidance to taxpayers regarding how to
answer questions related to foreign financial accounts (FFAs),
found on 2010 federal income tax and information returns,
e.g., Schedule B of Form 1040, the “Other Information” section
of Form 1040, Schedule B of Form 1065, and Schedule N of
Form 1120, among others.
(Continued on the next page)
Fi
nding Lists begin on page ii.
Index for January through April begins on page v.

ADMINISTRATIVE
T.D. 9518, page 710.
Final regulations relate to the requirement for “specified tax re-
turn preparers,” generally tax return preparers who reasonably
expect to file more than 10 individual income tax returns in a
calendar year (100 or more in 2011), to file individual income
tax returns using magnetic media (electronically) pursuant to
section 6011(e)(3) of the Code.
Notice 2011–16, page 720.
This notice provides an extension of time to pay tax until Oc-
tober 17, 2011, to eligible civilian spouses of military service-
members who work in American Samoa, Guam, the Northern
Mariana Islands, Puerto Rico, or the U.S. Virgin Islands (each
a “U.S. territory”) and claim residence or domicile for tax pur-
poses in a state or the District of Columbia pursuant to the Mil-
itary Spouses Residency Relief Act (MSRRA). In addition, this
notice provides that civilian spouses of military servicemem-
bers working in a state or the District of Columbia but claiming
residence or domicile for tax purposes in a U.S. territory under
MSRRA should follow the procedures in Notice 2010–30 with
respect to their 2010 individual income tax returns.
Notice 2011–26, page 720.
This notice informs tax return preparers of administrative ex-
emptions from the electronic filing requirement under section
6011(e)(3) of the Code and regulation sections 1.6011–7 and
301.6011–7.
Notice 2011–27, page 723.
Solely for calendar year 2011, this notice provides transitional
guidance relating to the new electronic filing requirement un-
der section 6011(e)(3) of the Code and corresponding regula-
tions, specifically regarding the filing restrictions placed upon
specified tax return preparers by that Code section and regula-
tion section 301.6011–7(a)(4)(i). The notice allows a specified
tax return preparer to mail any individual income tax returns in
paper format to the IRS, at the request of a taxpayer, if the
preparer obtains a signed statement containing the taxpayer’s
choice to have the return filed in paper format, and the tax-
payer’s request to have the preparer mail the return to the IRS.
Notice 2011–31, page 724.
This notice provides guidance to taxpayers regarding how to
answer questions related to foreign financial accounts (FFAs),
found on 2010 federal income tax and information returns,
e.g., Schedule B of Form 1040, the “Other Information” section
of Form 1040, Schedule B of Form 1065, and Schedule N of
Form 1120, among others.
Rev. Proc. 2011–25, page 725.
This procedure provides guidance to specified tax return pre-
parers regarding the time for filing and manner (form and con-
tent) of requests for waiver of the electronic filing requirement
due to undue hardship, under section 6011(e)(3) of the Code
and regulation sections 1.6011–7 and 301.6011–7. The pro-
cedure also provides guidance regarding how to document a
taxpayer’s choice to file the taxpayer’s individual income tax
return in paper format when the return is prepared by the pre-
parer but filed by the taxpayer.
April 25, 20112011–17 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2011–17 I.R.B.April 25, 2011

April 25, 20112011–17 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 6011.
—General
Requirement o
f Return,
Statement, or List
26 CFR 1.6011–7: Specified tax return preparers
required to file individual income tax returns using
magnetic media.
T.D. 9518
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
Specified Tax Return
Preparers Required to File
Individual Income Tax Returns
Using Magnetic Media
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains final
regulations on the requirement for “speci-
fied tax return preparers” to file individual
income tax returns using magnetic media
pursuant to section 6011(e)(3) of the Inter-
nal Revenue Code (Code). The final reg-
ulations reflect changes made to the law
by the Worker, Homeownership, and Busi-
ness Assistance Act of 2009. These reg-
ulations provide guidance to specified tax
return preparers who prepare and file indi-
vidual income tax returns. Unless an ex-
ception in these regulations applies, a tax
return preparer who meets the definition of
a “specified tax return preparer” must elec-
tronically file Federal income tax returns
that the preparer prepares and files for indi-
viduals, trusts, and estates. These regula-
tions provide a two-year transition period
for certain specified tax return preparers.
DAT
ES:Effective Date:These regulations
are
effective on March 30, 2011.
App
licability Dates:In accordance
wit
h sections 7805(b)(1)(B) and (b)(2)
and
section 6011(e)(3),these regulations
are
applicable to individual income tax
ret
urns filed after December 31, 2010. See
§3
01.6011–7(g).
FOR FURTHER IN
FORMATION
CONTACT: Keit
h L. Brau, (202)
622–4940 (not
a toll-free number).
SUPPLEMENTA
RY INFORMATION:
Paperwork Re
duction Act
The collecti
on of information con-
tained in the
se final regulations has been
reviewed an
dapprovedbytheOfficeof
Management
and Budget in accordance
with the Pap
erwork Reduction Act of
1995 (44 U.S
.C. 3507(d)) under control
number 154
5–2201. The collection of
informati
on in these final regulations is
in §301.60
11–7(a)(4)(ii). This taxpayer
choice sta
tement information will be used
by tax retu
rn preparers and specified tax
return pr
eparers to demonstrate to the
IRS that t
he related individual income tax
returns f
iled in paper format were not re-
quired to
be filed electronically pursuant
to sectio
n 6011(e)(3), §1.6011–7, and
§301.60
11–7. The collection of informa-
tion is v
oluntary to obtain a benefit.
An agenc
y may not conduct or sponsor,
and a per
son is not required to respond to, a
collect
ion of information unless it displays
avalidc
ontrol number assigned by the Of-
fice of
Management and Budget.
Books or
records relating to a collection
of info
rmation must be retained as long
as thei
r contents may become material in
the adm
inistration of any internal revenue
law. Ge
nerally, tax returns and tax return
inform
ation are confidential, as required
by 26 U
.S.C. 6103.
Backg
round
This d
ocument contains final amend-
ments
to the Regulations on Income Taxes
(26 CF
R Part 1) and the Regulations on
Proc
edure and Administration (26 CFR
Part
301) under section 6011(e) of the
Code
relating to the requirement for spec-
ifie
d tax return preparers to file individual
inco
me tax returns using magnetic media
(ele
ctronically). Section 17 of the Worker,
Hom
eownership, and Business Assistance
Act
of 2009 (Public Law 111–92 (123 Stat.
298
4, 2996)) amended section 6011(e)(1)
and
added new section 6011(e)(3) as an
exc
eption to the restriction in section
6011(e)(1) th
at the Secretary may not
require retur
ns of any tax imposed by sub-
title A on indi
viduals, estates, and trusts
to be filed in
any format other than paper
forms suppli
ed by the Secretary. New sec-
tion 6011(e)
(3) provides that the Secretary
shall requir
e the filing on magnetic media
of any indiv
idual income tax returns pre-
pared and fi
led by a specified tax return
preparer. S
ection 6011(e)(3)(B) defines
aspecified
tax return prepareras, with
respect to a
ny calendar year, any tax return
preparer u
nless such preparer reasonably
expects to
file 10 or fewer individual in-
come tax re
turns during such calendar
year. Sect
ion 6011(e)(3) does not define
the term “
filed.”
Under sect
ion 6011(e)(3)(C), anindi-
vidual in
come tax returnis any return of
the tax im
posed by subtitle A on individu-
als, esta
tes, and trusts. This includes any
return of
income tax in the Form 1040
series an
d Form 1041 series. It also in-
cludes F
orm 990–T (Exempt Organization
Busines
s Income Tax Return) when the
exempt o
rganization is a trust subject to
taxonun
related business taxable income
under s
ection 511(b). At this time, cer-
tain in
dividual income tax returns such
as Form
990–T, Form 1040–NR (U.S.
Nonres
ident Alien Income Tax Return),
Form 10
41–QFT (
U.S. Income Tax Re-
turn f
or Qualified Funeral Trusts), and all
amend
ed individual income tax returns,
such a
s Form 1040X (Amended U.S. Indi-
vidua
l Income Tax Return), cannot be filed
elect
ronically and, therefore, currently are
exem
pt from the electronic filing require-
ment
. See §301.6011–7(c)(2) and Notice
2011
–26.
Anot
ice of proposed rulemaking
(REG
–100194–10, 2010–51 I.R.B. 891)
was p
ublished in theFederal Register
(75 F
R 75439) on December 3, 2010.
That
document proposed to amend the
reg
ulations under section 6011(e) by
add
ing new §§1.6011–6 and 301.6011–6.
The
se sections would provide guidance on
the
electronic filing requirement contained
in s
ection 6011(e)(3), including, but not
li
mited to, the following: (1) clarifying
th
e definition of aspecified tax return
pr
epareras any person who is a tax return
pr
eparer, as defined insection 7701(a)(36)
2011–17 I.R.B.710April 25, 2011

and §301.7701–15, unless the tax return
preparer reasonably expects to file 10 or
fewer individual income tax returns in
a calendar year, and if a person who is
a tax return preparer is a member of a
firm, that person would be a specified
tax return preparer unless the person’s
firm members in the aggregate reasonably
expect to file 10 or fewer individual
income tax returns in a calendar year;
(2) providing a definition of the termfile
based on whether the tax return preparer
or specified tax return preparer submits
the individual income tax return to the
IRS; (3) recognizing a taxpayer’s ability
to choose to file an individual income tax
return in paper format and providing that a
tax return preparer or a specified tax return
preparer is not considered to have filed an
individual income tax return if the preparer
obtains a signed writing from the taxpayer
attesting that the taxpayer chooses to
file the individual income tax return in
paper format and the taxpayer, and not the
preparer, will file (submit) the individual
incometaxreturntotheIRS;(4)providing
exclusions from the electronic filing
requirement for individual income tax
returns filed in paper format pursuant to an
undue hardship waiver or administrative
exemption; (5) giving examples of the
application of the proposed rules; and (6)
providing a two-year transition rule for
the implementation of section 6011(e)(3).
For calendar year 2011, the proposed
regulations would define aspecified tax
return prepareras a tax return preparer
who reasonably expects to file (or if the
taxreturnpreparerisamemberofa
firm, the firm’s members in the aggregate
reasonably expect to file) 100 or more
individual income tax returns during the
year, while beginning January 1, 2012,
aspecified tax return preparerwould
be a tax return preparer who reasonably
expects to file (or if the tax return preparer
is a member of a firm, the firm’s members
in the aggregate reasonably expect to file)
11 or more individual income tax returns
in a calendar year.
Concurrently with publication of the
proposed regulations, the IRS released
Notice 2010–85, see IR–2010–116 (De-
cember 1, 2010) and 2010–51 I.R.B. 877
(December 20, 2010), which contained a
proposed revenue procedure that would
provide guidance to tax return preparers
regarding the format and content of undue
hardship waiver requests and taxpayer
choice statements.
Written comments were received by
the Treasury Department and the IRS
in response to the notice of proposed
rulemaking and concurrent notice. A
public hearing was held on January 7,
2011. Commentators appeared at the
public hearing and commented on the
notice of proposed rulemaking and No-
tice 2010–85. All comments were con-
sidered and are available for public in-
spection atwww.regulations.govor upon
request. This preamble addresses all
substantive comments received by the
Treasury Department and the IRS. After
consideration of the written comments
and the comments provided at the public
hearing, the proposed regulations under
section 6011(e)(3) are adopted as revised
by this Treasury decision. The revisions
are discussed in this preamble. In addition,
although not discussed in the preamble, a
few minor, non-substantive changes were
made to the text of the final regulations
to conform the language used throughout
the regulations. Further, the “1.6011–6”
and “301.6011–6” numbering used in the
proposed regulations have been changed
to “1.6011–7” and “301.6011–7” in these
final regulations because “301.6011–6”
was used in another proposed regulation,
proposed §301.6011–6 (Statement of
series and series organizations), which is
unrelated to these regulations.
Concurrent with the publication of
these regulations, the IRS is publishing
a revenue procedure providing guid-
ance to tax return preparers regarding
the format and content of undue hard-
ship waiver requests and taxpayer choice
statements under §301.6011–7(c)(1) and
§301.6011–7(a)(4)(ii), a notice con-
taining administrative exemptions to
the electronic filingrequirement under
§301.6011–7(c)(2), and a transition no-
tice regarding the mailing of individual
income tax returns by specified tax return
preparers during the 2011 calendar year.
Summary of Comments
Fifty-three written comments were
received in response to the notice of pro-
posed rulemaking and Notice 2010–85,
and two commentators spoke at the public
hearing.
1.Definition of a Specified Tax Return
Preparer
The proposed regulations do not
apply to individuals described in sec-
tion 7701(a)(36)(B)(i) through (iv) and
§301.7701–15(f) who are not defined as
tax return preparers under that Code sec-
tion and regulation,such as an individual
who provides tax assistance under a Vol-
unteer Income Tax Assistance (VITA)
program or a person who prepares a return
as a fiduciary. One commentator stated
that section 6011(e)(3) made no distinc-
tion with respect to whether the tax return
preparer is compensated and requested
that the final regulations delete the phrase
“as defined in section 7701(a)(36) and
§301.7701–15” so that the rules would
applytoanytaxreturnpreparerwhopre-
pares and files the requisite number of
individual income tax returns. The final
regulations do not adopt this recommen-
dation. Section 7701(a) provides that
“[w]hen used in this title, where not oth-
erwise directly expressed or manifestly
incompatible with the intent thereof,” the
definition of “tax return preparer” is that
which is provided by that Code section.
Section 6011(e)(3) does not define “tax
return preparer,” nor is the definition pro-
vided by section 7701(a)(36) “manifestly
incompatible with the intent” of section
6011(e)(3). These final regulations there-
fore adopt the definition set forth in section
7701(a)(36) and its corresponding regula-
tions. See §301.6011–7(a)(3).
One commentator suggested that the
definition ofspecified tax return preparer
should be applied solely on a firm basis,
not on an individual basis, and the in-
dividual income tax returns a tax return
preparer prepares independently for the
preparer’s own business should not be
aggregated with any individual income
tax returns that the same person prepares
as an employee for a firm. For example,
if a tax return preparer prepares and files
60 individual income tax returns (that is,
fewer than 100 in 2011) while working as
an employee of a firm, and independently
prepares and files 60 individual income
tax returns as a sole proprietor, the com-
mentator believes the tax return preparer
should not be subject to the electronic
filing requirement forthe latter returns.
The Treasury Department and the IRS do
not adopt this approach in the final regula-
April 25, 20117112011–17 I.R.B.

tions. The suggested approach would not
be consistent with the statute. Congress
placed the electronic filing responsibility
of section 6011(e)(3) on each individual
tax return preparer who reasonably ex-
pects to prepare and file more than 10
individual income tax returns in a calendar
year.
Other commentators stated that the
reasonable expectation for filing individ-
ual income tax returns in a calendar year
should be determined solely at the individ-
ual tax return preparer level and not take
into consideration the individual income
tax returns prepared and filed by other
taxreturnpreparersinthefirm. Under
the proposed regulations, in the above ex-
ample, the individual income tax returns
that the other members of the firm expect
to prepare and file would be aggregated
with the 60 individual income tax returns
that the above-mentioned person expects
to prepare and file as an employee of the
firm. Firm aggregation rules were in-
cluded in the proposed regulations to limit
avoidance of the statutory requirement, for
example, by a firm purposely arranging
its workload to prevent one or more of
its tax return preparers from becoming a
specified tax return preparer under sec-
tion 6011(e)(3). As a result, the Treasury
Department and the IRS do not adopt the
commentators’ recommendation and have
maintained the proposed firm aggrega-
tion rules in the final regulations. See
§301.6011–7(a)(3) and §301.6011–7(d).
Instead of determining the reasonable
filing expectation based on the individual
income tax returns reasonably expected
to be filed in the calendar year, another
commentator recommended that the rea-
sonable filing expectation be determined
based solely on the number of individual
incometaxreturnsfiledintheimmedi-
ately preceding year. This comment is
not adopted. Section 6011(e)(3)(B), and
not the regulations, establishes the rea-
sonable expectation standard. Further, the
Treasury Department and the IRS have
concluded that the number of individual
incometaxreturnsfiledintheimmedi-
ately preceding year may be a relevant
factor but should not be the only factor in
making a reasonable expectation determi-
nation for a calendar year.
2.Definition of File
a.Mailing paper returns for
taxpayer-clients
Several commentators opposed the
requirement that individual income tax
returns prepared and filed by a specified
tax return preparer be filed electroni-
cally. These commentators stated that they
sometimes mail to the IRS the paper tax
returns that they prepare for their clients as
a service for their clients, often for those
who are elderly, incapacitated, on travel,
or in other situations in which it would
not be practical or convenient to have the
client mail the return to the IRS. For some
of these clients, the individual income
tax return may be unusually large in size
or a filing due date may be imminent.
For similar reasons, other commentators
objected to the requirement in proposed
§301.6011–6(a)(4)(ii) that a taxpayer, not
the specified tax return preparer, must sub-
mit the paper individual income tax return
to the IRS when the taxpayer chooses to
file in paper format. They recommended
that this requirement be eliminated, or, if
the clients choose to have their individual
income tax returns prepared in paper for-
mat and sign a statement documenting that
choice, the specified tax return preparers
should be able to mail those returns if the
clients request this additional service from
them.
Congress established the requirement
that any individual income tax return pre-
pared by a tax return preparer be filed on
magnetic media (electronically) if such in-
dividual income tax return is filed by the
tax return preparer and the preparer is a
specified tax return preparer for the cal-
endar year during which the individual in-
come tax return is filed. The language that
Congress used in the statute, in particular
section 6011(e)(3)(A)(i) and (B), specifi-
cally refers to the act of “filing” the in-
dividual income tax return by the tax re-
turn preparer or specified tax return pre-
parer. The statute did not, however, de-
fine the term “file.” The Treasury Depart-
ment and the IRS believe that, with re-
spect to paper returns, a definition of the
termfilebased on the act of the tax return
preparer or specified tax return preparer
(or a member of the preparer’s firm) sub-
mitting the individual income tax return is
reasonable and necessary to give effect to
the electronic filingrequirement enacted
by Congress. Otherwise, the requirement
would have no meaning or consequence.
As a result, the Treasury Department and
the IRS do not adopt the commentators’
recommendations that the mailing restric-
tions be eliminated. Consistent with sec-
tion 6011(e)(3), the final regulations pro-
vide that tax return preparers qualify as
specified tax return preparers if they (or
their firm) reasonably expect to file, that is,
submit to the IRS, the specified number of
individual income tax returns, and even if
the tax return preparers file more than the
specified number of individual income tax
returns and therefore qualify as specified
tax return preparers, these preparers need
not electronically filean individual tax re-
turn if they (or their firm) do not file the re-
turn, that is, submit it to the IRS, as defined
in the regulations. See §301.6011–7(a)(4).
The Treasury Department and the IRS
recognize that the mailing restriction may
create unforeseen or unavoidable difficul-
ties for immediate compliance, particu-
larly in situations in which specified tax
return preparers have customarily mailed
individual income tax returns to the IRS as
part of the specified tax return preparer’s
general business practice, or in which they
mail a client’s paper individual income
tax return to the IRS on the client’s behalf
due to special circumstances, for example,
the disability, incapacitation or infirmity
of the client. Under these final regula-
tions the IRS has the authority to issue
additional guidance in the form of an-
nouncements, notices, or FAQs to address
issues related to the filing of a taxpayer’s
individual income tax return under section
6011(e)(3) that will promote fair and effi-
cient tax administration. In response to the
public comments and concurrent with the
publication of these regulations, the IRS is
also publishing a transition notice regard-
ing the mailing of individual income tax
returns by specified tax return preparers
during the 2011 calendar year. Solely for
calendar year 2011, a specified tax return
preparer who prepares individual income
tax returns may mail any such return in pa-
per format to the IRS, at the request of the
taxpayer, subject to the conditions speci-
fied in Notice 2011–27. The specified tax
return preparer must obtain a signed and
dated statement from the taxpayer con-
taining the taxpayer’s choice to have the
individual income tax return filed in paper
2011–17 I.R.B.712April 25, 2011

format, and the taxpayer’s unambiguous
request to have the specified tax return
preparer mail the individual income tax
return to the IRS. See Notice 2011–27 for
details.
b.Acts of assistance beyond providing
filing or delivery instructions to taxpayers
The definition offilein the proposed
regulations would include the submission
by the tax return preparer or specified
tax return preparer of an individual in-
come tax return, either electronically
(e-filed) or in paper format. Submission
in non-electronic (paper) form would in-
clude “the direct or indirect transmission,
sending, mailing or otherwise delivering
of the paper tax return to the IRS by the
preparer...and includes any act or acts
of assistance beyond providing filing or
delivery instructions to the taxpayer.” Sev-
eral commentators expressed confusion as
to which acts of assistance would amount
tofilingbythetaxreturnpreparer. For
example, if a tax return preparer provides
the client with an addressed envelope or
proper postage to make sure the postage is
correct, but the client physically mails the
individual income tax return, would that
be considered filing by the tax return pre-
parer? In response to these commentators’
concerns, the phrases “direct or indirect”
and “and includes any act or acts of assis-
tance beyond providing filing or delivery
instructions to the taxpayer” were deleted
from the final regulations. Acts such as
providing filing or delivery instructions,
an addressed envelope, postage estimates,
stamps, or similar acts designed to assist
the taxpayer in the taxpayer’s efforts to
correctly mail or otherwise deliver an indi-
vidual income tax return to the IRS do not
constitute filing by the tax return preparer
or specified tax return preparer as long as
the taxpayer actually mails or otherwise
delivers the paper individual income tax
return to the IRS.
3.Taxpayer Choice Statements to File in
Paper Format
The proposed regulations contain a
provision that would provide taxpayers,
who have their individual income tax re-
turns prepared by a tax return preparer,
the choice to have those returns filed in
paper format. In particular, proposed
§301.6011–6(a)(4)(ii) states that an in-
dividual income tax return would not be
considered to be filed by a tax return pre-
parer or specified tax return preparer if the
preparer obtained, on or prior to the date
the individual income tax return is filed,
a signed and dated written statement from
the taxpayer, stating the taxpayer chooses
to file the individual income tax return in
paper format, and that the taxpayer, and
not the preparer, would submit the paper
individual income tax return to the IRS.
Further, this statement would have to be
signed by both spouses if it was a joint
return.
a.Taxpayer choice statement form
The Treasury Department and the IRS
received several comments supporting a
taxpayer’s choice to file an individual in-
come tax return in paper format. Some
commentators, however, questioned the
need for the taxpayer choice statement,
especially for tax return preparers who
never mail individual income tax returns
to the IRS on behalf of their clients, but
instead give the returns to their clients to
mail to the IRS. According to these com-
ments, under the proposed regulations, the
electronic filing requirement would apply
only to specified tax return preparers, that
is, those who file the requisite number of
individual income tax returns. In their
view, if the tax return preparer never files
individual income tax returns on behalf of
clients, or files ten or fewer (fewer than
100 in 2011), the tax return preparer would
not meet the definitionof a “specified tax
return preparer,” and should not have to
obtain a taxpayer choice statement from
these clients.
The burden of compliance with the
electronic filing requirement is on the tax
return preparer and specified tax return
preparer. Neither the fact that the IRS
receives a taxpayer’s paper individual in-
come tax return in the mail nor the fact
that the tax return preparer’s or speci-
fied tax return preparer’s general business
practice is to not mail paper individual
income tax returns for clients necessar-
ily establishes that the preparer did not
file a particular individual income tax
return with the IRS. See Revenue Proce-
dure 2011–25. Based on the above, the
Treasury Department and the IRS adopt
proposed §301.6011–6(a)(4)(ii) in the
final regulations, except for the modifi-
cation described in paragraph 3.b of this
preamble. If the tax return preparer or
specified tax return preparer obtains a
signed statement in compliance with the
requirements established in Revenue Pro-
cedure 2011–25, the signed statement will
demonstrate compliance with the elec-
tronic filing requirement should the IRS
question a preparer about the filing of a
particular individual income tax return in
paper format.
b.Only one spouse is required to sign
the taxpayer choice statement for a joint
return
Several commentators recommended
that only one spouse, instead of both
spouses, should be required to sign the
taxpayer choice statement related to a
joint individual income tax return. They
expressed concerns that the two-signature
requirement might not be practical in some
cases, for example, when one spouse is
unable to sign due to a health condition,
or not available because of distance due
to a temporary absence from the spouse’s
customary residence. Although the Trea-
sury Department and the IRS continue to
encourage tax returnpreparers to obtain
both spouses’ signatures on the taxpayer
choice statement as a best practice, the
commentators’ recommendation that one
spouse’s signature will suffice for a joint
return is adopted in the final regulations.
c.Suggested alternatives to signed
taxpayer choice statement
The proposed regulations requested
comments on how the burden of com-
plying with the proposed taxpayer choice
statement could be minimized. The com-
ments received several suggested alterna-
tives: (1) the IRS create a form similar to
the “opt-out” forms used by some states
that have an electronic filing requirement;
(2) the IRS create a check-box on individ-
ual income tax returns in lieu of a separate
writing obtained from the taxpayer; (3)
the IRS accept IRS Form 8948 (Preparer
Explanation for Not Filing Electronically)
if the check-box for taxpayer choice to
file in paper format is checked; or (4) the
IRS allow a contemporaneous email (un-
signed) from the taxpayer to the preparer,
containing the recommended language.
April 25, 20117132011–17 I.R.B.

The Treasury Department and the IRS
have considered these suggestions in final-
izing the revenue procedure on taxpayer
choice statements and do not adopt them
at this time. See Revenue Procedure
2011–25. Regarding the recommendations
that the IRS create a new form or add a
check-box to the individual income tax re-
turn forms affected by section 6011(e)(3),
it is unclear how the provision of an addi-
tional form would be any more beneficial,
easier to implement, or time or cost ef-
fective than the taxpayer choice statement
provided because that statement is short
and easy and inexpensive to reproduce.
Regarding use of the Form 8948, because
this form is completed by a specified tax
return preparer and is not signed by the
taxpayer, checking a box on Form 8948 is
insufficient proof of a taxpayer’s choice
to file in paper format. Finally, an email
message from the taxpayer is insufficient
proof of a taxpayer’s choice to file an
individual income tax return in paper for-
mat. If sent as a scanned attachment to an
email, however, a copy of a hand-signed
statement in compliance with the final reg-
ulations and related guidance will suffice.
See Rev. Proc. 2011–25. The Treasury
Department and the IRS have concluded
that the taxpayer’s hand-written signature
is necessary to establish that the taxpayer
chose to file in paperformat and should be
required on all taxpayer choice statements.
See §301.6011–7(a)(4)(ii).
4.Undue Hardship Waivers
The proposed regulations contain a pro-
vision which would provide an exclusion
from the electronic filing requirement in
cases of undue hardship. The Treasury
Department and the IRS received several
comments supporting this provision and
the relief that it would provide. The fi-
nal regulations adopt this exclusion, rec-
ognizing that there may be facts and cir-
cumstances in which the electronic filing
requirement would create an undue hard-
ship on the specified tax return preparer.
Specified tax return preparers may request
an undue hardship waiver from the IRS in
the time and manner as set forth in the reg-
ulations and other published guidance.
One commentator recommended that
taxpayers should be able to submit a
hardship waiver request to the IRS. This
recommendation was not adopted. The
electronic filing requirement of section
6011(e)(3) and the final regulations is
imposed on a specified tax return pre-
parer, not on a preparer’s taxpayer-client.
Since the burden of compliance rests with
the specified tax return preparer, the pre-
parer should be the person responsible
for submission of undue hardship waiver
requests.
As mentioned above, the Treasury De-
partment and the IRS published Notice
2010–85 and received comments on the
proposed undue hardship waiver proce-
dures. All comments were considered and
some adopted in the revenue procedure
published concurrently with these final
regulations. See Rev. Proc. 2011–25.
5.Administrative Exemptions
The proposed regulations contain a
provision that would provide an exclu-
sion from the electronic filing requirement
pursuant to administrative exemptions
established by the IRS in additional guid-
ance. The Treasury Department and the
IRS received several comments in support
of this provision, suggesting several pos-
sible administrative exemptions. The final
regulations adopt this provision. The Trea-
sury Department and the IRS considered
the comments and included many of the
suggested administrative exemptions in
Notice 2011–26, which provides adminis-
trative exemptions to the electronic filing
requirement and is being issued contem-
poraneously with these final regulations.
Among the suggested administrative
exemptions, Notice 2011–26 includes
exemptions for (1) certain specified tax
return preparers who are members of
certain religious groups, certain foreign
preparers without social security numbers,
or specified tax return preparers who are
currently ineligible for the IRS e-file pro-
gram due to an IRS e-file sanction; (2)
individual income tax returns that are not
electronically filed due to technological
difficulties, including a return that a spec-
ified tax return preparer was unable to
e-file because the return was rejected, a
return prepared by a tax return preparer or
specified tax return preparer whose e-file
software package does not support one
or more forms or schedules that are part
of the return, or a return prepared by a
tax return preparer or specified tax return
preparer who experiences a short-term
inability to electronically file the return or
returns due to some other verifiable and
documented technological problem; and
(3) individual income tax returns currently
not accepted electronically (for example,
Forms 1040–NR and 990–T) or any doc-
umentation or attachments not accepted
electronically, such as documentation for
section 6707A disclosures or required
appraisals to support charitable contribu-
tions. Some individual income tax returns,
however, can be filed electronically and
the attachments mailed to the IRS using
a transmittal Form 8453 (U.S. Individual
Income Tax Transmittal for an IRS e-file
Return) or Form 8453–F (U.S. Estate or
Trust Income Tax Declaration and Signa-
ture for Electronic Filing). The associated
return must be filed electronically if pre-
paredandfiledbyaspecifiedtaxreturn
preparer and otherwise capable of being
e-filed, and the attachments mailed to the
IRS using a transmittal Form 8453. See
the instructions to Form 8453 and the in-
structions to Form 8453–F.
6.Transition Period
To enhance compliance and to promote
effective and efficient administration of
the electronic filing requirement of sec-
tion 6011(e)(3), the proposed regulations
would provide a transition rule that would
phase in the new electronic filing require-
ment for specified tax return preparers
over a two-year period — 100 or more
returns in 2011 and 11 or more returns
starting in 2012. Solely for the 2011 cal-
endar year, a tax return preparer would not
be considered a specified tax return pre-
parer if the tax return preparer reasonably
expects, or the preparer’s firm members
in the aggregate reasonably expect, to file
fewer than 100 individual income tax re-
turns in the 2011 calendar year.
Several commentators supported the
concept of a transition rule. For various
reasons, primarily the issuance of these
final regulations and other guidance at the
beginning of the 2011 filing season, some
commentators urged that the effective
date of the electronic filing requirement
be delayed until January 2012. Due to
similar concerns, another commentator
recommended that the transition period
be expanded by lengthening the period
to three years and increasing the filing
threshold for calendar year 2011 from 100
2011–17 I.R.B.714April 25, 2011

to 200 individual income tax returns. This
commentator pointed out that some states
used 200 returns for their state return
electronic filing requirement at least for
the initial filing season. Either approach
would allow tax return preparers more
time to become familiar with these final
regulations and to give those subject to the
new rules more time to make the necessary
preparations and arrangements to comply
with the rules.
The final regulations adopt the tran-
sitionperiodproposedintheproposed
regulations — 100 or more individual in-
come tax returns in 2011, and 11 or more
individual income tax returns in 2012 and
thereafter. This approach maintains the
congressionally-mandated effective date
applicable to all individual income tax
returns filed after December 31, 2010,
while providing both tax return preparers
and the IRS with the ability to effectively
and efficiently transition to the mandatory
electronic filing of individual income tax
returns. In addition, tax return preparers
who have not already entered the IRS
e-file system and who have always pre-
pared their clients’ individual income tax
returns in paper format are unlikely to be
adversely affected by the difference be-
tween 100 and 200 returns. Since the final
regulations (like the proposed regulations)
do not count the paper individual income
taxreturnsfiledbytaxpayerswhosigna
taxpayer choice statement to file in paper
format, these tax return preparers may not
meet the definition of “specified tax return
preparer” if the tax return preparers either
reasonably expect their clients to continue
to file their individual income tax returns
in paper format or obtain this statement
from their clients.
It is also noted that throughout 2010
the IRS performed extensive educational
outreach across the country, informing
the tax return preparer community of the
anticipated 100-return transition rule for
2011. This educational outreach included,
among other things, a discussion of the
administrative exemptions that the IRS
anticipated would be included in final
guidance.
7.Electronic Filing Burden
Some commentators stated that the
electronic filing requirement is burden-
some, including imposing additional
costs on tax return preparers and their
clients, and questioned the accuracy of
the hour burden estimates set forth in
the Paperwork Reduction Act section of
the proposed regulations. The proposed
regulations, however, did not provide
an estimate of the burden related to the
electronic filing of individual income tax
returns, but rather the burden, measured in
hours, to obtain the recommended state-
ments from taxpayer-clients to document
their choice to file individual income
tax returns in paper format and submit
the returns to the IRS themselves. See
§301.6011–7(a)(4)(ii). Any burden asso-
ciated with the congressionally-mandated
electronic filing requirement of section
6011(e)(3) was not at issue in or estab-
lished by the proposed regulations, but is a
direct result of that statutory requirement.
One commentator remarked that there
should not be an electronic filing mandate
if the government does not reimburse the
taxreturnpreparerforanyadditionalcost
of electronic filing. The Congress, how-
ever, established the requirement, which
does not include a reimbursement require-
ment.
In its comments, the Small Business
Administration Office of Advocacy (SBA)
stated that the proposed regulations, if fi-
nalized, would impact small business tax
return preparers by “increasing the scope
of specified tax return preparers.” Specifi-
cally, the SBA stated that, because the pro-
posed regulations would require specified
tax return preparers to electronically file
individual income tax returns and would
define a specified tax return preparer as
a tax return preparer who reasonably ex-
pects to file more than 10 individual in-
come tax returns in a calendar year, the
proposed regulations would increase the
scope of specified tax return preparers. For
the same reasons, the SBA stated that the
proposed regulations contain a significant
collection of information and have the po-
tential to have a significant economic im-
pact on a substantial number of small enti-
ties if the proposed regulations are adopted
as final regulations. The SBA stated that
the certification in the proposed regula-
tions that a Regulatory Flexibility Analy-
sis under the Regulatory Flexibility Act,
5 U.S.C. chapter 6 (RFA), was not required
was not supported by a factual basis. The
SBA recommended that the IRS publish
for public comment either a supplemental
RFA assessment or an Initial Regulatory
Flexibility Analysis.
The Treasury Department and the IRS
disagree with the SBA’s conclusions and
do not adopt its recommendation. As dis-
cussed in the preamble of the proposed
regulations, the 10-return threshold for de-
termining whether a tax return preparer is
a specified tax return preparer is a statutory
condition under section 6011(e)(3). The
Congress by statute, and not the proposed
regulations, established the electronic fil-
ing requirement, including the 10-return
threshold for specified tax return prepar-
ers. As a result, a Regulatory Flexibility
Analysis under the RFA is not required re-
garding the electronic filing requirement
and its burden. The Treasury Department
and the IRS have certified in the proposed
regulations (and again in these final regu-
lations) that the only collection of informa-
tion contained in the regulations (the tax-
payer choice statement) would not have a
significant impact on a substantial number
of small entities.
In its comments the SBA stated:
Prior to passage of the Worker,
Homeownership, and Business Assis-
tanceActof2009(theAct),theIRS
was prohibited from requiring filers of
individual income tax returns to file
electronically unless the person was re-
quired to file at least 250 returns during
the calendar year. The Act authorized
theIRStoissuethisNPRMtoincrease
the scope of specified tax return pre-
parers.
Page 2, SBA Office of Advocacy
Letter of December 20, 2010.
Prior to the Act, the IRS was prohib-
ited from requiring that income tax re-
turns for individuals, estates, and trusts
be other than on paper forms regardless
of the number of returns filed, as specifi-
cally provided by the last sentence of sec-
tion 6011(e)(1). The referenced 250-re-
turn rule, contained in section 6011(e)(2),
is only applicable to non-individual tax-
payer filers, for example, corporations and
partnerships. Following passage of the
Act, there are now two separate rules that
can affect individual taxpayers. The first
rule is still provided by section 6011(e)(1),
which prohibits the IRS from requiring in-
come tax returns of individuals, estates,
and trusts be on anything other than pa-
per forms if the individual taxpayer pre-
pares and files the taxpayer’s income tax
April 25, 20117152011–17 I.R.B.

return. The second rule is the newly en-
acted rule, contained in section 6011(e)(3),
that applies when an individual taxpayer
uses the services of a tax return preparer to
prepare the taxpayer’s income tax return.
The 250-return rule similarly is not appli-
cable to either of these rules.
In addition, the requirements and re-
strictions contained in section 6011(e)(2)
only apply to “regulations [prescribed]
under paragraph [6011(e)](1),” while the
proposed and final regulations involved
here are being prescribed pursuant to sec-
tion 6011(e)(3) and the specific require-
ment detailed in section 6011(e)(3)(A)
(“The Secretary shall require tha[t] any
individual income tax return prepared by
a tax return preparer be filed on magnetic
media if...”). There is no “increase” in
the scope of specified tax return preparers
provided by the regulations. Prior to the
Act and section 6011(e)(3), specified tax
return preparers didnot exist. The tax-
payer choice statement provision, together
with the provision for administrative ex-
emptions, may work to reduce the number
of specified tax return preparers because
individual income tax returns affected by
these provisions are not counted in de-
termining whether a tax return preparer
filesmorethan10(100ormorein2011)
individual income tax returns in a calendar
year. Further, these provisions, as well
as the undue hardship waiver provision,
will benefit tax return preparers in their
efforts to comply with the electronic filing
requirement placed upon them by section
6011(e)(3). Furthermore, even if a tax
return preparer is a specified tax return
preparer, under both the proposed and fi-
nal regulations a preparer would not have
to electronically file an individual income
tax return that a taxpayer chooses to have
prepared in paper format and which the
taxpayer will file with the IRS, providing a
further compliance benefit to all tax return
preparers subject to section 6011(e)(3).
The collection of information analysis
in the proposed regulations was limited
to the sole collection of information con-
tained in the proposed regulations; that is,
the taxpayer choice statements. The pro-
posed regulations, in the preamble, stated:
This information [taxpayer choice
statement] can be used by tax return
preparers and specified tax return pre-
parers, if necessary, to demonstrate to
the IRS that the related individual in-
come tax returns filed in paper format
were not required to be filed electroni-
cally pursuant to section 6011(e)(3) and
§301.6011–6. The collection of infor-
mation is voluntary to obtain a benefit.
As discussed in this preamble, the elec-
tronic filing requirement applicable to
specified tax return preparers is congres-
sionally mandated and flows directly from
the statute, that is, section 6011(e)(3);
therefore, a Regulatory Flexibility Anal-
ysis under the RFA is not required. The
Treasury Department and the IRS have
adequately and appropriately certified in
the proposed regulations that the taxpayer
choice statement would not have a signif-
icant impact on a substantial number of
small entities. This collection of informa-
tion has been reviewed and approved by
OMB.
As previously mentioned, the certifi-
cation in the proposed regulations was
sufficient. This certification certified that
the collection of information contained in
the proposed regulations, the collection
related to the taxpayer choice statement,
would not have a significant economic
impact on a substantial number of small
entities and referred to the Paperwork
Reduction Act section in the preamble to
the proposed regulations for further in-
formation as to why economic impact on
affected small entities was not significant.
That section identified the small entities
likely affected, estimated the number of
affected firms, and discussed the time and
nature of preparation and recordkeeping.
Although the certification in the proposed
regulations did not reduce the paperwork
burden items to monetary costs, the pro-
posed regulations solicited “Estimates of
capital or start-up costs and costs of op-
eration, maintenance, and purchases of
service to provide information.” No such
estimates were received during the public
comment period.
Section 605(b) of the RFA requires that
the certification appear in either the pro-
posed or final rule. Although not required,
these final regulations include another
certification that a Regulatory Flexibility
Analysis under the RFA is not required.
See the Special Analyses section.
8.Filing Perfection Period
One commentator recommended a
10-day perfection period for individual
income tax returns. Because of issues that
could arise with technology, the IRS e-file
systems allow perfection of the e-file sub-
mission if the initial submission was made
on or before the return due date, the sub-
mitter received a “rejection” of the return
from the IRS, and the submitter resolved
the issue to successfully e-file the return
to the IRS within a prescribed period. The
current perfection period for individual
returns is five days. The Treasury De-
partment and the IRS do not adopt this
recommendation in these final regulations
because this type ofprovision is more
appropriate for inclusion in administrative
procedures.
Special Analyses
It has been determined that this Trea-
sury decision is not asignificant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It has also been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations.
When an Agency issues a rulemaking
proposal, the Regulatory Flexibility Act,
5 U.S.C. chapter 6 (RFA), requires the
Agency to “prepare and make available for
public comment an initial regulatory flex-
ibility analysis” which will “describe the
impact of the proposed rule on small enti-
ties.” 5 U.S.C. 603(a). Section 605 of the
RFA allows an Agency to certify a rule,
in lieu of preparing an analysis, if the pro-
posed rulemaking is not expected to have a
significant economic impact on a substan-
tial number of small entities.
The collection of information
in these final regulations is in
§301.6011–7(a)(4)(ii) (taxpayer choice
statement). This information will be used
by tax return preparers and specified tax
return preparers to demonstrate to the
IRS that the related individual income
tax returns filed in paper format were not
required to be filed electronically pursuant
to section 6011(e)(3) and these final reg-
ulations, thus reducing the burden on tax
return preparers and specified tax return
preparers. This collection of information
is voluntary to obtain a benefit, that is,
conclusive proof of a taxpayer’s choice
to file an individual income tax return in
paper format, which will be used by tax
return preparers and specified tax return
2011–17 I.R.B.716April 25, 2011

preparers to demonstrate to the IRS that
the individual income tax return filed in
paper format was not required to be filed
electronically.
The final regulations affect self-em-
ployed specified tax return preparers and
small businesses that employ specified
tax return preparers who prepare individ-
ual income tax returns in exchange for
compensation. Section 601(3) of the RFA
defines a small business as having the
same meaning as “small business concern”
under section 3 of the Small Business
Act, 15 U.S.C. 632. The IRS estimates
that 135,000 firms in 2011 and 312,000
in 2012 qualifying as small businesses
will obtain taxpayer choice statements
from taxpayers who choose to have their
individual income tax returns prepared in
paper format and will submit the paper
returns to the IRS. (These estimates are
based on Tax Year 2007 figures, including
firms that filed all of their individual in-
come tax returns on paper and those firms
that electronically filed individual income
tax returns for that tax year.) Therefore,
the Treasury Department and the IRS have
determined that this Treasury decision will
have an impact on a substantial number of
small businesses.
The IRS has also determined, however,
that the impact on entities affected by these
final regulations will not be significant.
The recordkeeping burden associated with
obtaining and keeping documentation of a
taxpayer choice to file in paper format is
minimal. It is estimated that five minutes
of preparation time is needed for a preparer
to explain the purpose of the information
and obtain the taxpayer choice statement
from the taxpayer in the manner prescribed
by the IRS, and six minutes for maintain-
ing a copy in the preparer’s records. A
tax return preparer generally will not be
submitting this documentation to the IRS.
Based on the estimated numbers of firms
(135,000 in 2011 and 312,000 in 2012) and
estimates for the number of individual in-
come tax returns that taxpayers chose to
file (6,669,900 in 2011 and 9,217,800 in
2012), the estimated hours per firm is 9.06
in 2011 and 5.42 in 2012; with an average
number of 1.2 preparers per firm, the es-
timated hours per preparer is 7.55 in 2011
and4.51in2012.
Additionally, the Treasury Department
and the IRS note that section 6011(e)(3)
and these regulations only prescribe the
method of filing individual income tax
returns that are already required to be
filed. Further, these regulations are im-
plementing the electronic filing require-
ment imposed by statute on specified tax
return preparers, as defined in section
6011(e)(3)(B). The taxpayer choice state-
ment reduces any burden associated with
the electronic filing requirement because
paper individual income tax returns for
which the tax return preparer obtains a tax-
payer choice statement from the taxpayer
are not counted in determining whether
a tax return preparer files more than 10
(100 or more in 2011) individual income
tax returns in a calendar year. There are
no capital or start-up costs, such as the
purchase of tax software, associated with
the taxpayer choice statement; tax return
preparers do not have to buy tax software
to obtain a signed statement from their
clients. Finally, the IRS has provided pro-
cedures for specified tax return preparers
to request a waiver of the electronic filing
requirement in cases of undue hardship.
Therefore, specified tax return preparers
who receive an approved hardship waiver
would not have to obtain taxpayer choice
statements for any individual income tax
returns that are covered under the waiver.
Accordingly, the Treasury Department
and the IRS hereby certify that the col-
lectionofinformationcontainedinthese
regulations will not have a significant eco-
nomic impact on a substantial number of
small entities. Therefore, a Regulatory
Flexibility Analysis under the Regulatory
Flexibility Act is not required. Pursuant
to section 7805(f) of the Code, the notice
of proposed rulemaking preceding these fi-
nal regulations was submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on its
impact on small businesses.
Drafting Information
The principal author of these final reg-
ulations is Keith L. Brau, Office of the As-
sociate Chief Counsel (Procedure and Ad-
ministration).
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 301
are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding entries in nu-
merical order to read, in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6011–6 also issued under
26 U.S.C. 6011(a). * * *
Section 1.6011–7 also issued under
26 U.S.C. 6011(e). * * *
Par. 2. Section 1.6011–6 is added and
reserved to read as follows:
§1.6011–6.[Reserved].
Par. 3. Section 1.6011–7 is added to
read as follows:
§1.6011–7 Specified tax return preparers
required to file individual income tax
returns using magnetic media.
Individual income tax returns that are
required to be filed on magnetic media
by tax return preparers under section
6011(e)(3) and §301.6011–7 of this chap-
ter must be filed in accordance with Inter-
nal Revenue Service regulations, revenue
procedures, revenue rulings, publications,
forms or instructions, including those
posted electronically.
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 4. The authority citation for part
301 is amended by adding entries in nu-
merical order to read, in part, as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6011–6 also issued under
26 U.S.C. 6011(a). * * *
Section 301.6011–7 also issued under
26 U.S.C. 6011(e). * * *
Par. 5. Section 301.6011–6 is added
and reserved to read as follows:
§301.6011–6 Statement of series and
series organizations.[Reserved].
Par. 6. Section 301.6011–7 is added to
read as follows:
§301.6011–7 Specified tax return
preparers required to file individual
income tax returns using magnetic media.
(a)Definitions.
(1)Magnetic media. For purposes
of this section, the termmagnetic
mediahas the same meaning as in
§301.6011–2(a)(1).
(2)Individual income tax return.The
termindividual income tax returnmeans
April 25, 20117172011–17 I.R.B.

any return of tax imposed by subtitle A on
individuals, estates, and trusts.
(3)Specified tax return preparer.The
termspecified tax return preparermeans
any person who is a tax return preparer,
as defined in section 7701(a)(36) and
§301.7701–15, unless that person reason-
ably expects to file 10 or fewer individual
income tax returns in a calendar year. If
a person who is a tax return preparer is a
member of a firm, that person is a speci-
fied tax return preparer unless the person’s
firm members in the aggregate reasonably
expect to file 10 or fewer individual in-
come tax returns in a calendar year. Solely
for the 2011 calendar year, a person will
not be considered a specified tax return
preparer if that person reasonably expects,
or if the person is a member of a firm,
the firm’s members in the aggregate rea-
sonably expect, to file fewer than 100
individual income tax returns in the 2011
calendar year. Solely for purposes of this
section, a person is considered a member
of a firm if the person is an employee,
agent, member, partner, shareholder, or
other equity holder of the firm.
(4)File or Filed. (i) For purposes of
section 6011(e)(3) and these regulations
only, an individual income tax return is
considered to be “filed” by a tax return pre-
parer or a specified tax return preparer if
the preparer submits the individual income
taxreturntotheIRSonthetaxpayer’s
behalf, either electronically (by e-file or
other magnetic media) or in non-electronic
(paper) form. Submission of an individ-
ual income tax return by a tax return pre-
parer or a specified tax return preparer in
non-electronic form includes the transmis-
sion, sending, mailing or otherwise deliv-
ering of the paper individual income tax re-
turn to the IRS by the preparer, any mem-
ber, employee, or agent of the preparer,
or any member, employee, or agent of the
preparer’s firm.
(ii) An individual income tax return will
not be considered to be filed, as defined
in paragraph (a)(4)(i) of this section, by
a tax return preparer or specified tax re-
turn preparer if the tax return preparer or
specified tax return preparer who prepared
the return obtains, on or prior to the date
the individual income tax return is filed, a
hand-signed and dated statement from the
taxpayer (by either spouse if a joint return)
that states the taxpayer chooses to file the
individual income tax return in paper for-
mat, and that the taxpayer, and not the pre-
parer, will submit the paper individual in-
cometaxreturntotheIRS.TheIRSmay
provide guidance through forms, instruc-
tions or other appropriate guidance regard-
ing how tax return preparers and specified
tax return preparers can document a tax-
payer’s choice to file an individual income
tax return in paper format.
(iii) The rules contained in this section
do not alter or affect a taxpayer’s obliga-
tion to file returns under any other pro-
vision of law. The definition offileor
filedby a tax return preparer or speci-
fied tax return preparer contained in para-
graph (a)(4)(i) of this section applies only
for the purposes of section 6011(e)(3) and
these regulations and does not apply for
any other purpose under any other provi-
sion of law.
(b)Magnetic media filing requirement.
Except as provided in paragraphs (a)(4)(ii)
and (c) of this section, any individual in-
come tax return prepared by a specified
tax return preparer in a calendar year must
be filed on magnetic media if the return is
filedbythespecifiedtaxreturnpreparer.
(c)Exclusions. The following exclu-
sions apply to the magnetic media filing re-
quirement in this section:
(1)Undue hardship waiver.TheIRS
may grant a waiver of the requirement of
this section in cases of undue hardship.
An undue hardship waiver may be granted
upon application by a specified tax return
preparer consistent with instructions pro-
vided in published guidance and as pre-
scribed in relevant forms and instructions.
A determination of undue hardship will
be based upon all facts and circumstances.
The undue hardship waiver provided to a
specified tax return preparer may apply to
a series or class of individual income tax
returns or for a specified period of time,
subject to the terms and conditions regard-
ing the method of filing prescribed in such
waiver.
(2)Administrative exemptions.The
IRS may provide administrative exemp-
tions from the requirement of this section
for certain classes of specified tax return
preparers, or regarding certain types of
individual income tax returns, as the IRS
determines necessary to promote effective
and efficient tax administration. The IRS
may provide administrative exemptions
and any criteria or procedures necessary
to claim an administrative exemption
through forms, instructions, or other ap-
propriate guidance.
(d)Reasonably expect to file—(1)In
general. The determination of whether a
tax return preparer reasonably expects, or
if the preparer is a member of a firm, the
firm’s members in the aggregate reason-
ably expect, to file 10 or fewer individ-
ual income tax returns (or, in the case of
the 2011 calendar year, fewer than 100 in-
dividual income tax returns) is made by
adding together all of the individual in-
come tax returns the tax return preparer
and, if the preparer is a member of a firm,
the firm’s members reasonably expect to
prepare and file in the calendar year. In
making this determination, individual in-
come tax returns that the tax return pre-
parer reasonably expects will not be sub-
ject to the magnetic media filing require-
ment under paragraph (a)(4)(ii) of this sec-
tion or are excluded from the requirement
under (c)(2) of this section are not to be
counted. Individual income tax returns ex-
cluded from the magnetic media filing re-
quirement under paragraph (c)(1) of this
section are to be counted for purposes of
making this determination.
(2)Time for making determination of
reasonable expectations. The determina-
tion regarding reasonable expectations is
made separately for each calendar year in
order to ascertain whether the magnetic
media filing requirement applies to a tax
return preparer for that year. For each cal-
endar year, the determination of whether a
tax return preparer and the preparer’s firm
reasonably expect to file 10 or fewer indi-
vidual income tax returns (or, in the case of
the 2011 calendar year, fewer than 100 in-
dividual income tax returns) is made based
on all relevant, objective, and demonstra-
ble facts and circumstances prior to the
time the tax return preparer and the pre-
parer’s firm first file an individual income
tax return during the calendar year.
(e)Examples. The following exam-
ples illustrate the rules of paragraphs (a)
through (d) of this section.
Example 1. Tax Return Preparer A is an accoun-
tant who recently graduated from college with an ac-
counting degree and has opened his own practice. A
has not prepared individual income tax returns for
compensationinthepastanddoesnotplantofocus
his practice on individual income tax return prepa-
ration. A intends instead to focus his practice on
providing specialized accounting services to certain
health care service providers. A has no plans to, and
does not, employ or engage any other tax return pre-
2011–17 I.R.B.718April 25, 2011

parers. A estimates that he may be asked by some
clients to prepare and file their individual income tax
returns for compensation, but A expects that the num-
ber of people who do ask him to provide this service
will be no more than seven in 2012. In fact, A actually
prepares and files six paper Forms 1040 (U.S. Indi-
vidual Income Tax Return) in 2012. Due to a growing
client base, and based upon his experience in 2012, A
expects that the number of individual income tax re-
turns he will prepare and file in 2013 will at least dou-
ble, estimating he will prepare and file 12 Form 1040
returns in 2013. A does not qualify as a specified
tax return preparer for 2012 because A reasonably ex-
pects to file 10 or fewer returns (seven) in 2012. Con-
sequently, A is not required to electronically file the
individual income tax returns he prepares and files in
2012. A’s expectation is reasonable based on his busi-
ness projections, individual income tax return filing
history, and staffing decisions. A is a specified tax
return preparer in 2013, however, because based on
those same factors A reasonably expects to file more
than 10 individual income tax returns (12) during that
calendar year. A, therefore, must electronically file
all individual income tax returns that A prepares and
files in 2013 that are not otherwise excluded from the
electronic filing requirement.
Example 2. Same facts as inExample 1, except
three of Tax Return Preparer A’s clients specifically
chose to have A prepare their individual income tax
returns in paper format in 2012 with the clients mail-
ing their respective returns to the IRS. A expects that
these three clients will similarly choose to have him
prepare their returns in paper format in 2013, with the
clients being responsible for mailing their returns to
the IRS. A is not required to electronically file these
three returns in 2013 because the taxpayers chose
to file their returns in paper format. A obtained a
hand-signed and dated statement from each of those
taxpayers, indicating that they chose to file their re-
turns in paper format. These three individual income
tax returns are not counted in determining how many
individual income tax returns A reasonably expects
to file in 2013. Because the total number of individ-
ual income tax returns A reasonably expects to file in
2013 (nine) does not exceed 10, A is not a specified
tax return preparer for calendar year 2013, and A is
not required to electronically file any individual in-
come tax return that he prepares and files in 2013.
Example 3. Tax Return Preparer B is a solo gen-
eral practice attorney in a small county. Her practice
includes the preparation of wills and assisting execu-
tors in administering estates. As part of her practice,
B infrequently prepares and files Forms 1041 (U.S.
Income Tax Return for Estates and Trusts) for execu-
tors. In the past three years, she prepared and filed
an average of five Forms 1041 each year and never
exceeded more than seven Forms 1041 in any year.
Based on B’s prior experience and her estimate for
2012, made prior to the time she first files an individ-
ual income tax return in 2012, she reasonably expects
to prepare and file no more than five Forms 1041 in
2012. Due to the unforeseen deaths of several of her
clients in late 2011, B actually prepares and files 12
Forms 1041 in 2012. B does not find out about these
deaths until after she has already filed the first Form
1041 in 2012 for another client. B is not required to
electronically file these returns in 2012. She does not
qualify as a specified tax return preparer for calendar
year 2012 because prior to the time she filed the first
Form 1041 in 2012, she reasonably expected to file
10 or fewer individual income tax returns in 2012.
Example 4. Same facts asExample 3, except, in
addition to the five Forms 1041 that she expects to
prepare and file in 2012, Tax Return Preparer B also
expects to prepare and file 10 paper Forms 1040 (U.S.
Individual Income Tax Return) in 2012, based upon
the requests that she has received from some of her
clients. Because the total number of individual in-
come tax returns B reasonably expects to file in 2012
(fifteen) exceeds 10, B is a specified tax return pre-
parer for calendar year 2012, and B must electroni-
cally file all individual income tax returns that B pre-
pares and files in 2012 that are not otherwise excluded
from the electronic filing requirement.
Example 5. Firm X consists of two tax return pre-
parers, Tax Return Preparer C who owns Firm X, and
TaxReturnPreparerDwhoisemployedbyCinFirm
X. Based upon the firm’s experience over the past
three years, C and D reasonably expect to file nine
and ten individual income tax returns for compensa-
tion, respectively, in 2012. Both C and D must elec-
tronically file the individual income tax returns that
they prepare in 2012, unlessthe returns are otherwise
excluded from the electronic filing requirement, be-
cause they are members of the same firm and the ag-
gregated total of individual income tax returns that
they reasonably expect to file in 2012 (nineteen), ex-
ceeds 10 individual income tax returns.
(f)Additional guidance.TheIRSmay
implement the requirements of this section
through additional guidance, including by
revenue procedures, notices, publications,
forms and instructions, including those is-
sued electronically.
(g)Effective /applicability date.This
section is effective on March 30, 2011, and
applicable to individual income tax returns
filed after December 31, 2010.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved March 25, 2011.
Michael Mundaca,
Assistant Secretary of
theTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on March 28,
2011, 4:15 p.m., and published in the issue of the Federal
Register for March 30, 2011, 76 F.R. 17521)
April 25, 20117192011–17 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Extension of Relief and
Procedures Under Notice
2010–30 for Spouses of
U.S. Servicemembers who
are Working in or Claiming
Residence or Domicile in
a U.S. Territory Under the
Military Spouses Residency
Relief Act
Notice 2011–16
On April 15, 2010, the Treasury De-
partment and the Internal Revenue Ser-
vice published Notice 2010–30, 2010–18
I.R.B. 650, which provides relief and
procedures for certain taxpayers who
are spouses (civilian spouses) of active
duty members of the uniformed services
(servicemembers). In particular, the pro-
cedures in Notice 2010–30 were made
available for the taxable year including
November 11, 2009 (generally, this will be
the calendar year 2009, and is referred to
hereinafter as “2009”), to civilian spouses
who (A) accompany their servicemem-
ber spouses to a military duty station in
American Samoa, Guam, the Northern
Mariana Islands (NMI), Puerto Rico, or
the U.S. Virgin Islands (USVI) (each a
“U.S. territory”) and claim residence or
domicile (tax residence) in one of the 50
States or the District of Columbia under
the Military Spouses Residency Relief Act
(MSRRA) pursuant to the procedures in
Notice 2010–30 or (B) accompany their
servicemember spouses to a military duty
station in one of the 50 States or the Dis-
trict of Columbia and claim tax residence
inaU.S.territoryunderMSRRA.
This notice provides that civilian
spouses described in the prior paragraph
claiming MSRRA relief for federal in-
come tax purposes for the first taxable
year beginning after November 11, 2009
(generally, this will be calendar year 2010,
and is referred to hereinafter as “2010”)
should follow the applicable procedures
described in Notice 2010–30.
The extension of time to pay federal in-
come taxes described in Part III(A)(1)(b)
of Notice 2010–30 for 2009 is available
to eligible civilian spouses described in
Part III(A)(1)(b) of Notice 2010–30 claim-
ing MSRRA relief with respect to indi-
vidual federal income tax returns filed for
2010. Such taxpayers should follow the
procedures in Part III(A)(1)(b) of Notice
2010–30 to obtain an extension of time
through October 17, 2011 to pay federal in-
come taxes for 2010.
As provided in Notice 2010–30, the
IRS has determined pursuant to section
6654(e)(3)(A) of the Internal Revenue
Code (Code) that with respect to civilian
spouses eligible for the extension of time
to pay federal income taxes described in
Part III(A)(1)(b) of Notice 2010–30, ap-
plying the addition to tax under section
6654(a) in the case of an underpayment
of estimated tax by such civilian spouses
for 2010 is against equity and good con-
science due to unusual circumstances.
Civilian spouses who obtain the exten-
sion to pay federal income taxes for 2010
provided by this notice are required to pay
interest on the amount of tax from the orig-
inal payment due date until the date the tax
is paid. Pursuant to section 6601, interest
is calculated from the prescribed payment
due date determined under section 6151
without regard to any extension to pay fed-
eral income tax, including the extension to
pay tax provided by this notice.
For the reasons discussed in Part
III(A)(2) of Notice 2010–30, the exten-
sion to pay federal income taxes described
in Part III(A)(1)(b) of Notice 2010–30 is
not available to civilian spouses claiming
tax residence in a State or the District
of Columbia under MSRRA and filing
individual federal income tax returns for
2010, who are: (A) federal employees in
American Samoa, Guam, or the USVI;
and (B) individuals working in Guam or
the NMI to whom section 935 applies.
These civilian spouses should file their
2010 federal individual income tax returns
and pay any taxes due according to the
procedures described in Part III(A)(2) of
Notice 2010–30.
Civilian spouses who accompany their
servicemember spouses to a military duty
stationinoneofthe50StatesortheDis-
trict of Columbia and who claim tax res-
idence in a U.S. territory under MSRRA
should follow the procedures in Part III(B)
of Notice 2010–30 with respect to their
2010 income tax returns.
DRAFTING INFORMATION
The principal author of this notice is
Rosy L. Lor of the Office of Associate
Chief Counsel (International). For fur-
ther information regarding this notice, con-
tact Rosy L. Lor at (202) 622–3880 (not a
toll-free call).
Administrative Exemptions
to the Specified Tax Return
Preparer Electronic Filing
Requirement Under Internal
Revenue Code § 6011(e)(3)
and Regulations Under
§ 6011(e)(3)
Notice 2011–26
PURPOSE
This notice applies to tax return prepar-
ers who are required by law to electroni-
cally file certain income tax returns for in-
dividuals, estates, and trusts. This notice
provides administrative exemptions to the
electronic filing requirement under section
6011(e)(3) of the Internal Revenue Code
and corresponding regulations.
BACKGROUND
Contemporaneously with the publica-
tion of this notice, final regulations have
been published in the Federal Register as
T.D. 9518(76 FR 17521) onMarch 30,
2011implementing the requirement under
section 6011(e)(3) that specified tax return
preparers file individual income tax re-
turns electronically ifthey prepare and file
the returns for taxpayers. Under section
6011(e)(3)(B) and as further defined in
§ 301.6011–7(a)(3), a specified tax return
preparer means, with respect to any cal-
endar year, any tax return preparer within
the meaning of section 7701(a)(36) and
§ 301.7701–15 who prepares any individ-
ual income tax return unless such tax re-
turn preparer reasonably expects to file 10
or fewer individual income tax returns in
the calendar year, and if a person who is a
taxreturnpreparerisamemberofafirm,
that person is a specified tax return pre-
parer unless the person’s firm members in
the aggregate reasonably expect to file 10
2011–17 I.R.B.720April 25, 2011

or fewer individual income tax returns in a
calendar year. Solely for the 2011 calen-
dar year, a tax return preparer will not be
considered a specified tax return preparer
if the preparer reasonably expects, or if the
preparer is a member of a firm, the firm’s
members in the aggregate reasonably ex-
pect, to file fewer than 100 individual in-
come tax returns in the 2011 calendar year.
Section6011(e)(3)(C)and
§ 301.6011–7(a)(2) define an individual
income tax return as any return of tax
imposed by subtitle A on individuals,
estates, and trusts. This includes the
Form 1040 series of income tax returns
for individuals, the Form 1041 series of
income tax returns for estates and trusts,
and Form 990–T (Exempt Organization
Business Income Tax Return) when the
exempt organization is a trust subject to
tax on unrelated business taxable income
under section 511(b).
Under section 6011(e)(3)(A) and
§ 301.6011–7(b), any individual income
taxreturnpreparedbyaspecifiedtax
return preparer in a calendar year must
be filed electronically if the return is
filed by the specified tax return preparer.
Section 301.6011–7(c)(1) authorizes the
IRS to grant to a specified tax return
preparer a waiver of this requirement
in the case of undue hardship. Rev-
enue Procedure 2011–25, published in
the Internal Revenue Bulletin (2011–17
I.R.B. 725) on April 25, 2011, provides
additional guidance regarding undue
hardship waiver requests. Announcement
2010–96, published in the Internal
Revenue Bulletin (2010–52 I.R.B. 936)
on December 27, 2010, provided further
guidance on electronic filing hardship
waiver request procedures for calendar
year 2011.
Section 301.6011–7(c)(2) provides
for another category of exclusion
from the electronic filing requirement,
administrative exemptions.Under
§ 301.6011–7(c)(2), the IRS may pro-
vide administrative exemptions for certain
classes of specified tax return preparers or
types of individual income tax returns, as
the IRS determines necessary to promote
the effective and efficient administration
of section 6011(e)(3) of the Internal Rev-
enue Code and § 301.6011–7, and the IRS
may provide the criteria and procedures,
if any are necessary, for administrative
exemptions through forms, instructions,
or other appropriate guidance. This notice
sets forth the administrative exemptions to
the electronic filing requirement contained
in those sections, and these administrative
exemptions are to remain in effect until
modified or superseded.
DISCUSSION
Scope of Administrative Exemptions.
The administrative exemptions set forth
in this notice for certain classes of spec-
ified tax return preparers apply to all tax
return preparers who fall within one of
those classes. These exemptions are in-
tended to be applicable retroactively as of
January 1, 2011, to tax return preparers
who reasonably expect to file, or if a
member of a firm whose firm’s members
in the aggregate reasonably expect to
file, 100 or more individual income tax
returns in calendar year 2011. They will
be applicable starting in 2012 to tax return
preparers who reasonably expect to file,
or if a member of a firm whose firm’s
members in the aggregate reasonably
expect to file, 11 or more individual
income tax returns in 2012 and subsequent
calendar years. An exemption, however, is
not needed for any tax return preparer who
is not required to file individual income
tax returns electronically,i.e., tax return
preparers who reasonably expect to file,
or if a member of a firm whose firm’s
members in the aggregate reasonably
expect to file, fewer than 100 individual
income tax returns during calendar year
2011 (10 or fewer in calendar year 2012
and thereafter).
The administrative exemptions set
forth in this notice for certain types of
individual income tax returns are appli-
cable to tax return preparers, specified
tax return preparers, or both, depend-
ing on the circumstances discussed in
this notice. These administrative ex-
emptions are intended to be applica-
ble retroactively as of January 1, 2011.
Tax return preparers are affected by the
administrative exemptions because a
taxreturnpreparer’sclassificationasa
specified tax return preparer is based upon
the number of non-exempt individual
income tax returns the tax return preparer
reasonably expects to file in a given
calendar year, and exempt returns do not
count towards the more than 10 (100 or
more in 2011) individual income tax return
filing threshold. Specified tax return
preparers are affected by administrative
exemptions because these preparers are
not required to electronically file any
individual income tax return that qualifies
for an administrative exemption.
Administrative Exemptions.
A.Exempt Preparers. The following
categories of tax return preparers and spec-
ified tax return preparers are exempt from
the electronic filing requirement under
section 6011(e)(3) and the corresponding
regulations:
1.Preparer Members of Certain Reli-
gious Groups.Ataxreturnpreparerwhois
a member of a recognized religious group
that is conscientiously opposed to its mem-
bers using electronic technology, includ-
ing for the filing of income tax returns
electronically, and that has existed contin-
uously since December 31, 1950.
2.Foreign Preparers Without Social
Security Numbers. A specified tax return
preparer who is a foreign person without
a social security number and is therefore
ineligible to file electronically because
the IRS e-file program currently does not
accept foreign tax return preparers with-
out social security numbers who live and
work abroad. To qualify for this exemp-
tion, the specified tax return preparer (1)
mustnotbeamemberofafirmthatis
eligible to e-file, and (2) must have ap-
plied for a PTIN and either submitted
Form 8946,PTIN Supplemental Applica-
tion For Foreign Persons Without a Social
Security Numberor qualify for the relief
provided by Section 5 of Revenue Proce-
dure 2010–41, 2010–48 I.R.B. 781.
3.Certain Preparers Ineligible for IRS
e-file. A tax return preparer who is cur-
rently ineligible for the IRS e-file program
due to an IRS e-file sanction. To qualify
for this exemption, the tax return preparer
must have received a letter from the IRS
enforcing the sanction and the sanction
must be in effect for some or all of the cal-
endar year in which the individual income
tax return or returns are being filed. This
exemption ends on the date the sanction
period ends or the date the IRS accepts the
tax return preparer into the IRS e-file pro-
gram, whichever date occurs first. If, how-
ever, the tax return preparer has a pending
application for the IRS e-file program filed
with the IRS at the time the sanction period
April 25, 20117212011–17 I.R.B.

ends, the exemption will continue until the
date the IRS renders a decision on the tax
return preparer’s application.
B.Exempt Individual Income Tax Re-
turns Due to Preparer’s Technological
Difficulties. The following individual
income tax returns are exempt from the
electronic filing requirement under section
6011(e)(3) and the corresponding regu-
lations, due to technological difficulties
experienced by a tax return preparer or
specified tax return preparer, as applica-
ble, who meets the identified criteria for
an exemption:
1.Rejected Returns. A return that a
specified tax return preparer attempted to
e-file but was unable to e-file because the
return was rejected and the specified tax
return preparer attempted but could not re-
solve the reject condition or code.
2.Forms or Schedules Not Supported
by Preparer’s Software Package. A return
prepared by a tax return preparer or spec-
ified tax return preparer whose e-file soft-
ware package does not support one or more
forms or schedules that are part of the re-
turn.
3.Other Technological Difficulties.A
return or returns prepared by a tax return
preparer or specified tax return preparer
who experiences a short-term inability to
electronically file the return or returns due
to some other verifiable and documented
technological problem.
C.Exempt Individual Income Tax Re-
turns Due to IRS e-file Limitations.For
all tax return preparers and specified tax
return preparers, the following individual
income tax returns and attachments to re-
turns are exempt from the electronic filing
requirement under section 6011(e)(3) and
the corresponding regulations, due to IRS
barriers or other systemic limitations that
currently prevent the returns and attach-
ments from being filed electronically:
1.Returns Currently Not Accepted
Electronically. Any individual income tax
return that is not currently accepted elec-
tronically by IRS e-file or that the IRS has
instructed taxpayers not to file electroni-
cally. This includes Form 1040–NR (U.S.
Nonresident Alien Income Tax Return),
Form 1041–QFT (U.S. Income Tax Re-
turn for Qualified Funeral Trusts), Form
990–T (Exempt Organization Business
Income Tax Return), and all amended in-
dividual income tax returns, such as Form
1040X (Amended U.S. Individual Income
Tax Return). This also includes a fiscal
year return for Form 1040 (U.S. Individ-
ual Income Tax Return) and a fiscal year
return for Form 1041 (U.S. Income Tax
Return for Estates & Trusts) for certain
periods (fiscal year Form 1041 returns
ending during any month after June 30 of
the current processing year); Form 1041
claiming a refund amount equal to or
greater than $10,000,000; Form 1041 with
a dollar amount over $99,999,999,999;
and other Forms 1041 not accepted by
IRS e-file for any other limitation listed
in IRS Publication 1437 (Procedures for
theForm1041e-fileProgramU.S.Income
Tax Returns for Estates and Trusts). See
IRS Publication 1346 (Electronic Return
File Specifications and Record Layouts for
Individual Income Tax Returns) for forms
in the Form 1040-series that the IRS cur-
rently accepts electronically. For informa-
tion on IRS.Gov, seewww.irs.gov/efile/.
2.Required Documentation or At-
tachments Not Accepted Electronically.
Any required documentation or attach-
ments that the IRS does not yet provide
the capability to file electronically such
as documentation for section 6707A dis-
closures or required appraisals to support
charitable contributions are exempt. Some
returns can be filed electronically and the
attachments mailed to the IRS using a
transmittal Form 8453 (U.S. Individual
Income Tax Transmittal for an IRS e-file
Return)orForm8453–F(U.S. Estate or
Trust Income Tax Declaration and Signa-
ture for Electronic Filing). The associated
return must be filed electronically if pre-
paredandfiledbyaspecifiedtaxreturn
preparer and otherwise capable of being
e-filed, and the attachments mailed to the
IRS using a transmittal Form 8453. See
the instructions to Form 8453 and instruc-
tions to Form 8453–F.
Exemptions are Automatic.Ataxre-
turn preparer or specified tax return pre-
parer who qualifies for an exemption de-
scribed in this notice does not have to re-
quest an exemption from the IRS or other-
wise obtain the IRS’ approval. These ex-
emptions are automatic for those who meet
the criteria provided in this notice. Al-
though there is no need to apply for an ad-
ministrative exemption or to maintain any
specific information, the burden is on the
tax return preparer or specified tax return
preparer to show entitlement to an admin-
istrative exemption, and the preparer will
be required to demonstrate the applicabil-
ity of an administrative exemption or ex-
emptions upon request by the IRS. Note
that undue hardship waiver requests are
unnecessary for purposes of claiming an
administrative exemption and should not
be submitted by or for an exempt specified
tax return preparer, or for an exempt indi-
vidual income tax return.
The IRS has created Form 8948,Pre-
parer Explanation for Not Filing Electron-
ically, for specified tax return preparers to
explain why an individual income tax re-
turn that is able to be filed electronically
was prepared and filed in paper format.
Among the reasons listed, Form 8948 in-
cludes the exemptions listed in paragraphs
A. and B. of this notice. For further infor-
mation, see the instructions to Form 8948,
which, among other things, provide that
Form 8948 is to be attached to the paper
copy of the tax return that a specified tax
return preparer prepares and furnishes to
the taxpayer. Further note that returns cur-
rently not acceptable by IRS electronically
as specified in paragraph C.1. of this no-
tice do not require the use of Form 8948.
Further Information. Further informa-
tion, including Frequently Asked Ques-
tions, on the electronic filing requirement,
administrative exemptions, and undue
hardship waiver requests, is posted on
www.irs.gov.
EFFECTIVE DATE
The administrative exemptions set forth
in the notice are effective for and apply
to individual income tax returns filed after
December 31, 2010.
DRAFTING INFORMATION
The principal author of this notice is
Keith Brau of the Office of Associate Chief
Counsel (Procedure & Administration).
For specific questions regarding the elec-
tronic filing requirement, undue hardship
waiver requests, and administrative ex-
emptions, call the IRS at 1–866–255–0654
(a toll-free number); callers who are out-
side of the 50 U.S. States and/or U.S.
Territories should use the International
phone number: 1–512–416–7750 (not a
toll-free number). For further information
regarding this notice, contact Keith Brau at
(202) 622–4940 (not a toll-free number).
2011–17 I.R.B.722April 25, 2011

The Mailing of Individual
Income Tax Returns By
Specified Tax Return
Preparers in Calendar Year
2011
Notice 2011–27
This notice provides transitional guid-
ance on the implementation of the new
electronic filing requirements applica-
ble to specified tax return preparers un-
der section 6011(e)(3) of the Internal
Revenue Code and Treasury Regulation
§§ 1.6011–7 and 301.6011–7, specifically
regarding the filing restrictions placed
upon specified tax return preparers by
§ 301.6011–7(a)(4)(i). This notice is
effective for and only applicable to cer-
tain income tax returns filed by specified
tax return preparers during calendar year
2011.
Taxreturnpreparerswhomeetthe
definition of a specified tax return pre-
parer, as defined in section 6011(e)(3)(B)
and § 301.6011–7(a)(3), generally must
electronically file all federal income tax
returns that they prepare and file for in-
dividuals, trusts, and estates (individual
income tax returns). Section 6011(e)(3)
does not define theterm “filed.” Sec-
tion 301.6011–7(a)(4)(i) provides that
an individual income tax return is con-
sidered “filed” by a specified tax re-
turn preparer “if the preparer submits
the individual income tax return to the
IRS on the taxpayer’s behalf.” Section
301.6011–7(a)(4)(i) further provides that
submission of a tax return in non-elec-
tronic (paper) form includes “the trans-
mission, sending, mailing or otherwise
delivering of the paper individual income
tax return to the IRS by the preparer,
any member, employee, or agent of the
preparer, or any member, employee, or
agent of the preparer’s firm.” Section
301.6011–7(a)(4)(ii) provides that an in-
dividual income tax return will not be
considered to be filed by a specified tax
return preparer if the specified tax return
preparer obtains a hand signed and dated
statement from the taxpayer that states
the taxpayer chooses to file the individual
income tax return in paper format and that
the taxpayer, and not the preparer, will
submit the paper individual income tax
return to the IRS. As a result, unless one of
the exceptions provided in § 301.6011–7
applies, a specified tax return preparer
who prepares an individual income tax
return must file that return electronically
if the preparer, and not the taxpayer, files
the return (e.g., submits it to the IRS), and
the specified tax return preparer is prohib-
ited from mailing the return to the IRS on
behalf of the taxpayer.
Solely for the 2011 calendar year,
a specified tax return preparer means
any person who is a tax return preparer,
as defined in section 7701(a)(36) and
§ 301.7701–15, and who reasonably ex-
pects to file 100 or more individual income
tax returns in a calendar year, and if a
person who is a tax return preparer is a
member of a firm, that person is a speci-
fied tax return preparer if the person’s firm
members in the aggregate reasonably ex-
pect to file 100 or more individual income
tax returns in a calendar year. Beginning
in calendar year 2012, however, the filing
threshold is lowered from 100 to 11 indi-
vidual income tax returns (i.e.,incometax
returns for individuals, estates, and trusts,
such as the Form 1040 series and Form
1041).
The Treasury Department and the IRS
received public comments in response
to the notice of proposed rulemaking
(REG–100194–10, 2010–51 I.R.B. 891)
that proposed a substantially similar def-
inition of the term “file.” (75 FR 75439,
December 3, 2010.) Several commenta-
tors, including members of the tax return
preparation community and tax return
preparer advocacy groups, expressed con-
cerns with this mailing restriction. These
commentators stated that, as a service for
some of their taxpayer-clients or to ensure
proper postage and receipt by the IRS,
they sometimes mail the paper individual
income tax returns that they prepare to
the IRS on behalf of the taxpayer-clients
when requested by their taxpayer-clients,
who are often elderly, disabled, on travel,
or in other situations where it would not
be practical or reasonable for the tax-
payer-clients to mail the return to the IRS
themselves.
The IRS expects specified tax return
preparers to comply with the new con-
gressionally-mandated electronic filing
requirement of section 6011(e)(3). The
IRS recognizes that the mailing restric-
tion may create unforeseen or unavoidable
difficulties for immediate compliance, par-
ticularly in situations where specified tax
return preparers have customarily mailed
individual income tax returns to the IRS as
part of the specified tax return preparer’s
general business practice.
Accordingly, and solely for calendar
year 2011, a specified tax return preparer
who prepares individual income tax re-
turns may mail any such return in paper
format to the IRS, at the request of the tax-
payer, subject to the conditions contained
in this notice. The specified tax return
preparer must obtain a hand-signed and
dated statement containing the taxpayer’s
choice to have the individual income tax
return filed in paper format, and the tax-
payer’s unambiguous request to have the
specified tax return preparer mail the in-
dividual income tax return to the IRS. If
hand-signed (by either spouse if a joint re-
turn) and dated by the taxpayer on or be-
fore the date the subject individual income
tax return is mailed to the IRS, the follow-
ing language contained in the signed state-
ment will be considered sufficient to show
that a taxpayer chooses to have the tax-
payer’s individual income tax return filed
in paper format and has requested that the
specified tax return preparer mail the re-
turn on the taxpayer’s behalf:
“I do not want to have my income tax
return electronically filed, and I choose
to have my return filed on paper forms.
I have asked my tax return preparer to
mail my paper return to the IRS on my
behalf.”
The statement should not be attached
to the taxpayer’s individual income tax re-
turn. This statement should be retained
by the specified tax return preparer.If the
taxpayer, and not the specified tax return
preparer, intends to mail or otherwise file
the taxpayer’s individual income tax return
with the IRS, the specified tax return pre-
parer should not obtain a statement de-
scribed in this notice. Instead, the spec-
ified tax return preparer should obtain a
taxpayer choice statement conforming to
the requirements of Section 9 of Revenue
Procedure 2011–25 and use the statement
contained in Section 9.04 of that Revenue
Procedure.
The principal author of this notice is
Keith Brau of the Office of Associate
Chief Counsel (Procedure & Administra-
tion). For further information regarding
April 25, 20117232011–17 I.R.B.

this notice, contact Keith Brau at (202)
622–4940 (not a toll-free call).
Nonconventional Source Fuel
Credit, Section 45K Inflation
Adjustment Factor, and
Section 45K Reference Price
Notice 2011–30
SECTION 1. PURPOSE
This notice publishes the nonconven-
tional source fuel credit, inflation adjust-
ment factor, and reference price under
§ 45K of the Internal Revenue Code for
coke or coke gas (other than from petro-
leum based products) for calendar year
2010. The inflation adjustment factor and
the reference price are used to determine
the credit allowable under § 45K for coke
or coke gas. The calendar year 2010 in-
flation-adjusted credit applies to the sales
of barrel-of-oil equivalent of coke or coke
gas sold by a taxpayer to an unrelated
person during the 2010 calendar year, the
domestic production of which is attribut-
able to the taxpayer.
SECTION 2. BACKGROUND
Section 45K(a) provides for a credit
for producing fuel from a nonconventional
source, measured in barrel-of-oil equiva-
lent of qualified fuel, the production of
which is attributable to the taxpayer and is
sold by the taxpayer to an unrelated per-
son during the taxable year. For calendar
year 2010, the credit is available only for
coke or coke gas. The credit amount for
coke or coke gas is equal to the product of
$3.00 and the appropriate inflation adjust-
ment factor.
Section 45K(d)(1) provides that the
credit applies only to sales of qualified
fuels the production of which is within
the United States (within the meaning of
§ 638(1)) or a possession of the United
States (within the meaning of § 638(2)).
Section 45K(d)(2)(A) requires that the
Secretary, not later than April 1 of each cal-
endar year, determine and publish in the
Federal Register the inflation adjustment
factor and the reference price for the pre-
ceding calendar year.
Section 45K(d)(2)(B) defines “inflation
adjustment factor” for a calendar year as
a fraction the numerator of which is the
GNP implicit price deflator for the calen-
dar year and the denominator of which is
the GNP implicit price deflator for calen-
dar year 1979. The term “GNP implicit
price deflator” means the first revision of
the implicit price deflator for the gross na-
tional product as computed and published
by the Department of Commerce.
Section 45K(d)(2)(C) defines “refer-
ence price” to mean with respect to a
calendar year the Secretary’s estimate of
the annual average wellhead price per bar-
rel for all domestic crude oil the price of
which is not subject to regulation by the
United States.
Section 45K(d)(5) provides that the
term “barrel-of-oil equivalent” with re-
spect to any fuel generally means that
amount of the fuel that has a Btu content
of 5.8 million.
Section 45K(g)(1) provides that in
the case of a facility for producing coke
or coke gas (other than from petroleum
based products), which was placed in
service before January 1, 1993, or af-
ter June 30, 1998, and before January 1,
2010, § 45K(g) shall apply with respect to
coke or coke gas produced in such facility
and sold during the period beginning on
the later of January 1, 2006, or the date
that such facility is placed in service, and
ending on the date which is 4 years after
the date such period began.
Section 45K(g)(2)(A) provides that the
amount of coke or coke gas sold during any
taxable year that may be taken into account
to compute the credit under § 45K with
respect to any facility shall not exceed an
average barrel-of-oilequivalent of 4,000
barrels per day.
Section 45K(g)(2)(B) provides that in
determining the amount of credit allow-
able to coke or coke gas sold after 2005,
the credit shall be computed by substitut-
ing “2004” for “1979.” Accordingly, for
purposes of § 45K(g), the inflation adjust-
ment factor for a calendar year is a fraction
the numerator of which is the GNP implicit
price deflator for the calendar year and the
denominator of which is the GNP implicit
price deflator for calendar year 2004.
Section 45K(g)(2)(D) provides that the
phase-out of the credit under § 45K(b)(1)
does not apply in the case of facilities pro-
ducing coke or coke gas.
SECTION 3. REFERENCE PRICE
The reference price for calendar year
2010 is $74.71.
SECTION 4. INFLATION
ADJUSTMENT AND CREDIT
AMOUNT
The inflation adjustment factor for cal-
endar year 2010 is 1.1435. The noncon-
ventional source fuel credit is $3.43 per
barrel-of-oil equivalent ($3.00 x 1.1435).
SECTION 5. DRAFTING
INFORMATION CONTACT
The principal author of this notice is
Martha S. McRee of the Office of Asso-
ciate Chief Counsel (Passthroughs & Spe-
cial Industries). For further information
regarding this notice, contact Ms. McRee
at (202) 622–3110 (not a toll-free call).
Instructions for Persons
Answering Questions Relating
to Foreign Financial Accounts
on 2010 Federal Income Tax
and Information Returns
Notice 2011–31
This notice provides guidance to tax-
payers regarding how to answer questions
related to foreign financial accounts (FFA)
found on 2010 federal income tax and
information returns,e.g., Schedule B of
Form 1040, the “Other Information” sec-
tion of Form 1041, Schedule B of Form
1065, and Schedule N of Form 1120,
among others.
On February 26, 2010, the Finan-
cial Crimes Enforcement Network
(FinCEN), a bureau within the Treasury
Department, published a notice of
proposed rulemaking (75 FR 8844)
proposing amendments to the Bank
Secrecy Act implementing regulations
relating to the Form TD F 90–22.1,Report
of Foreign Bank and Financial Accounts
(FBAR), found at 31 CFR 1010.350
(formerly 31 CFR 103.24). Proposed
revisions to the instructions for the FBAR
2011–17 I.R.B.724April 25, 2011

were included as an attachment to the
notice of proposed rulemaking. On
February 24, 2011, FinCEN published
final FBAR regulations (76 FR 10234).
The final FBAR regulations are effective
on March 28, 2011, and apply to FBARs
required to be filed by June 30, 2011,
with respect to foreign financial accounts
maintained in calendar year 2010, as
well as to FBARs for future calendar
years. On March 21, 2011, the IRS
posted revised FBAR instructions (titled
DRAFT Final Instructions) on irs.gov
atwww.irs.gov/businesses/small/article/
0,,id=148849,00.html. On March 26,
2011, the IRS published a revised FBAR
form with accompanying instructions
that reflect the amendments made by the
final FBAR regulations.
1
There is no
substantive difference between the text
of the posted instructions (titled DRAFT
Final Instructions) and the instructions
that accompany the revised FBAR form,
although the format of the instructions has
changed.
In light of the recent publication of the
final FBAR regulations, the posting of re-
vised FBAR instructions, and the publi-
cation of a revised FBAR form with ac-
companying instructions, the Treasury De-
partment and the IRS provide the follow-
ing guidance concerning the FFA-related
questions on 2010 federal income tax and
information returns:
For Returns Filed Before March 28, 2011
Before March 28, 2011, which is the
first date on which the final FBAR regula-
tions become effective, the existing FBAR
regulations (last amended April 1987)
remain effective and may be referenced,
along with other then-existing FBAR
guidance, when answering FFA-related
questions on 2010 tax and information
returns.
Alternatively, persons filing a return
before March 28, 2011, may reference the
recently published final FBAR regulations
and revised FBAR instructions (including
the instructions, titled DRAFT Final In-
structions, which were posted on irs.gov
on March 21, 2011) when answering the
FFA-related questions on 2010 returns.
The IRS will take into account the recently
published final FBAR regulations and the
revised FBAR instructions when eval-
uating the reasonableness of a person’s
response to the FFA-related questions on
2010 tax and information returns.
ForReturnsFiledOnorAfterMarch28,
2011
Beginning March 28, 2011, the recently
published final FBAR regulations will be
effective and should be referenced, along
with the revised FBAR form and instruc-
tions, when answering FFA-related ques-
tions on 2010 tax and information returns.
The principal author of this notice
is Matthew P. Howard of the Office
of Associate Chief Counsel (Procedure
and Administration). For further infor-
mation regarding this notice, contact
Matthew P. Howard at (202) 622–4570
(not a toll-free call).
26 CFR 301.6011–7: Specified tax return preparers
required to file individual income tax returns using
magnetic media.
Rev. Proc. 2011–25
SECTION 1. PURPOSE
This revenue procedure provides guid-
ance to specified tax return preparers
regarding the format and content of re-
quests for waiver of the magnetic media
(electronic) filing requirement due to un-
due hardship, and regarding the time and
manner in which specified tax return pre-
parers who seek an undue hardship waiver
of the electronic filing requirement must
submit their written requests for consider-
ation by the IRS, undersection 6011(e)(3)
and § 301.6011–7 of the Regulations on
Procedure and Administration (26 CFR
Part 301). This revenue procedure also
provides guidance to tax return prepar-
ers, specified tax return preparers, and
taxpayers regarding how to document a
taxpayer’s choice to file an individual in-
come tax return in paper format when the
return is prepared by a tax return preparer
or specified tax return preparer but filed
by the taxpayer.
Concurrently with publication of a no-
tice of proposed rulemaking in the Federal
Register (75 FR 75439) on December 3,
2010, the IRS released Notice 2010–85,
see IR–2010–116 (December 1, 2010) and
2010–51 I.R.B. 877 (December 20, 2010),
which contained a proposed revenue pro-
cedure that would provide guidance to tax
return preparers regarding the format and
content of undue hardship waiver requests
and taxpayer choice statements. Written
comments were received by the Treasury
Department and the IRS in response to
the notice of proposed rulemaking and
concurrent notice. A public hearing was
held on January 7, 2011. All comments
are available for public inspection upon
request. After consideration of the written
comments and the comments provided at
the public hearing, the proposed revenue
procedure is adopted as revised by this
revenue procedure.Announcement
2010–96, see 2010–52 I.R.B. 936
(December 27, 2010), announced the
release of Form 8944,Preparer e-file
Hardship Waiver Request. This notice
provided that tax return preparers who
meet the definition of a specified tax
return preparer must use Form 8944
to voluntarily request undue hardship
waivers prior to the publication of final
guidance.
SECTION 2. BACKGROUND
.01 Pursuant to section 6011(e)(3),
§ 301.6011–7 implements the requirement
that specified tax return preparers file in-
dividual income tax returns electronically
if they prepare and filethe returns for tax-
payers. Under section 6011(e)(3)(B) and
as further defined in § 301.6011–7(a)(3), a
specified tax return preparer means, with
respect to any calendar year, any tax return
preparer within the meaning of section
7701(a)(36) and § 301.7701–15 who pre-
pares any individual income tax return
unless such tax return preparer reasonably
expects to file 10 or fewer individual in-
come tax returns in the calendar year, and
if a person who is a tax return preparer is
a member of a firm, that person is a speci-
fied tax return preparer unless the person’s
firm members in the aggregate reasonably
expect to file 10 or fewer individual in-
come tax returns in a calendar year. Solely
for the 2011 calendar year, a tax return pre-
parer will not be considered a specified tax
return preparer if the preparer reasonably
1
Filers are advised that although the instructions tothe FBAR form are being revised in light of the final FBAR regulations, the data items appearing inthe body of the FBAR form remain
unchanged.
April 25, 20117252011–17 I.R.B.

expects, or if the preparer is a member of
a firm, the firm’s members in the aggre-
gate reasonably expect, to file fewer than
100 individual income tax returns in the
2011 calendar year. Solely for purposes
of section 6011(e)(3) and § 301.6011–7,
an individual is considered a member of
a firm if the individual is an employee,
agent, member, partner, shareholder, or
other equity holder of the firm.
.02 Section 6011(e)(3)(C) and
§ 301.6011–7(a)(2) define an individual
income tax return as any return of income
tax imposed by subtitle A on individu-
als, estates, and trusts. This includes the
Form 1040 series of income tax returns
for individuals, the Form 1041 series of
income tax returns for estates and trusts,
and Form 990–T (Exempt Organization
Business Income Tax Return) when the
exempt organization is a trust subject to
tax on unrelated business taxable income
under section 511(b).
.03 Under § 301.6011–7(b) any individ-
ual income tax return prepared by a speci-
fied tax return preparer in a calendar year
must be filed on magnetic media (electron-
ically,i.e.,e-file)ifthereturnisfiledbythe
specified tax return preparer.
.04 Section 301.6011–7(a)(4)(i) pro-
vides that an individual income tax return
is considered to befiledby a tax return
preparer or a specifiedtaxreturnpreparer
if the preparer or any member, employee
or agent of the preparer or the preparer’s
firm submits the tax return to the IRS on
the taxpayer’s behalf,either electronically
(by e-file or other magnetic media) or
in non-electronic or non-magnetic media
(paper) form. Submission of a tax return
in paper form includes the transmission,
sending, mailing, or otherwise delivering
ofthepapertaxreturntotheIRSbythetax
return preparer or the specified tax return
preparer, or by any member, employee,
or agent of the tax return preparer or the
preparer’s firm.
.05 Section 301.6011–7(a)(4)(ii) also
provides that an individual income tax
return will not be considered to be filed,
as defined in § 301.6011–7(a)(4)(i), by a
tax return preparer or specified tax return
preparer, or the preparer’s firm, if the pre-
parer who prepared the return obtains a
hand-signed statement from the taxpayer
that states the taxpayer chooses to file the
return in paper format and that the tax-
payer, and not the preparer, is filing the
paper return with the IRS (e.g., submitting
it by mail to the IRS). Such statement must
be signed by the taxpayer (by either spouse
if a joint return) and dated on or before
the date the taxpayer files the return. The
IRS may provide guidance through forms,
instructions or other appropriate guidance
regarding how the preparer can document
a taxpayer’s choice to file a paper indi-
vidual income tax return. This revenue
procedure provides guidance to preparers
and taxpayers regarding how preparers
can document a taxpayer’s choice to file
an individual income tax return in paper
format.
.06 Section 301.6011–7(c)(1) autho-
rizes the IRS to grant a waiver of the elec-
tronic filing requirement in cases of undue
hardship to specified tax return preparers
requesting an undue hardship waiver in the
manner prescribed in IRS forms, instruc-
tions, or other appropriate guidance. This
revenue procedure prescribes guidance on
how to submit an undue hardship waiver
request for consideration by the IRS.
SECTION 3. SCOPE
.01Undue Hardship Waiver Re-
quests. This revenue procedure applies
to all specified tax return preparers, as
defined in section 6011(e)(3)(B) and
§ 301.6011–7(a)(3), who seek a waiver
of the electronic filing requirement in
cases of undue hardship. This revenue
procedure is intended to be applicable
immediately to specified tax return pre-
parers, who reasonably expect to file, or if
amemberofafirmwhosefirm’smembers
in the aggregate reasonably expect to file,
100 or more individual income tax returns
in calendar year 2011. An undue hard-
ship waiver, however, is not needed for,
and waiver requests will not be accepted
from, any tax return preparer who during
calendar year 2011 is not required to file
individual income tax returns electroni-
cally due to the transition rule set forth in
§ 301.6011–7(a)(3),i.e., tax return prepar-
ers who reasonably expect to file, or if a
member of a firm whose firm’s members
in the aggregate reasonably expect to file,
more than 10 but fewer than 100 individ-
ual income tax returns during calendar
year 2011. For these tax return preparers,
this revenue procedure will apply to undue
hardship waiver requests for calendar year
2012 and thereafter.
.02Documenting a Taxpayer’s Choice
to File Return in Paper Format. The pro-
visions of this revenue procedure that ex-
plain how tax return preparers and speci-
fied tax return preparers can document a
taxpayer’s choice to file an individual in-
come tax return in paper format are appli-
cable immediately.
SECTION 4. OTHER EXCLUSIONS
FROM THE ELECTRONIC FILING
REQUIREMENT
.01In General.Section
301.6011–7(c)(2) provides for a second
category of exclusion or exemption
from the electronic filing requirement
of section 6011(e)(3) and § 301.6011–7,
administrative exemptions.
.02Administrative Exemptions. Under
§ 301.6011–7(c)(2), the IRS may pro-
vide administrative exemptions for certain
classes of specified tax return preparers or
types of individual income tax returns, as
the IRS determines necessary to promote
the effective and efficient administration
of section 6011(e)(3) and § 301.6011–7.
The IRS generally will provide an ad-
ministrative exemption, and not an undue
hardship waiver, when technology issues
affecting a range of specified tax return
preparers in a similar manner prevent
specified tax return preparers from filing
returns electronically. Undue hardship
waiver requests should not be submitted
by or for specified tax return preparers, or
for the individual income tax returns they
prepare and file, that meet the criteria for
an administrative exemption for purposes
of claiming the exemption. The IRS will
provide the criteria and procedures for
claiming an administrative exemption, if
any, through forms, instructions, or other
appropriate guidance. See Notice 2011–26
for a list of current administrative exemp-
tions.
.03Further Information. Further in-
formation on the electronic filing require-
ment, undue hardship waiver requests,
documentation for a taxpayer’s choice to
file in paper format, and administrative
exemptions will be posted onwww.irs.gov,
and may include answers to Frequently
Asked Questions.
2011–17 I.R.B.726April 25, 2011

SECTION 5. REQUESTS FOR WAIVER
OF THE ELECTRONIC FILING
REQUIREMENT DUE TO UNDUE
HARDSHIP
.01 Under § 301.6011–7(c)(1), the IRS
may grant waivers of the electronic filing
requirement in cases of undue hardship.
Undue hardship waivers generally are in-
tended to be granted to specified tax re-
turn preparers for undue hardships that can
be identified in advance before the speci-
fied tax return preparers would otherwise
be required to file individual income tax
returns electronicallyfor a particular cal-
endar year.
.02 The IRS will ordinarily grant undue
hardship waivers only in rare cases. An
undue hardship waiver may be granted to
a specified tax return preparer for a speci-
fied period of time or for a series or class
of individual income tax returns, although
undue hardship waivers will not ordinarily
be granted for more than one calendar year
period.
.03 A specified tax return preparer must
request an undue hardship waiver in the
manner prescribed in this revenue proce-
dure. See Section 6 below.
.04 The IRS will approve or deny re-
quests for an undue hardship waiver of
the electronic filing requirement based on
each specified tax return preparer’s par-
ticular facts and circumstances. In deter-
mining whether to approve or deny an un-
due hardship waiver request, the IRS may
consider the specifiedtaxreturnpreparer’s
ability to file individual income tax returns
electronically without incurring an undue
financial hardship. The IRS will gener-
ally grant an undue hardship waiver only
when the specified tax return preparer can
demonstrate the undue hardship that would
result by complying with the electronic fil-
ing requirement, including, but not limited
to, any incremental costs to the specified
tax return preparer.
.05 The fact that a specified tax return
preparer does not have a computer or ap-
propriate software or does not desire to ob-
tain or use a computer or software does not,
standing alone, constitute an undue hard-
ship. An undue hardship waiver request
based solely on this fact or personal desire,
without any further explanation or justi-
fication (e.g., disability or financial hard-
ship), will be denied.
SECTION 6. WAIVER REQUEST
FORM CLAIMING UNDUE HARDSHIP
.01 To request an undue hardship
waiver the specified tax return preparer
must complete a Form 8944,Preparer
e-file Hardship Waiver Request,andsub-
mit the completed form and any documen-
tation required by the instructions to the
form to the IRS at the address provided in
the instructions to the form.
.02 The Form 8944 must be signed and
dated.
.03 The Form 8944 and any notice from
the IRS granting an undue hardship waiver
should not be attached to a taxpayer’s pa-
per individual income tax return. A copy
of this form and any notice should be re-
tained by the tax return preparer.
SECTION 7. TIME FOR FILING A
WAIVER REQUEST
.01 Because the electronic filing re-
quirement under section 6011(e)(3) and
§ 301.6011–7 is based on a determina-
tion of how many individual income tax
returns a tax return preparer reasonably
expects, or if a member of a firm, the
firm’s members in the aggregate reason-
ably expect, to file during a calendar year,
a specified tax return preparer must make
this reasonable expectation determination
prior to the time the specified tax return
preparer or the preparer’s firm first files
an individual incometaxreturnduringthe
calendar year.
.02 Tax return preparers who meet the
definition of specified tax return preparer
must therefore ordinarily submit their re-
quests for undue hardship waivers between
October 1 of the calendar year preceding
the applicable calendar year and Febru-
ary 15 of the applicable calendar year, or
within the time-frame specified in the in-
structions to Form 8944. This will give
the IRS time to process the undue hardship
waiver request. Untimely requests for un-
due hardship waivers will not be consid-
ered absent the existence of unusual or un-
foreseen and unavoidable circumstances.
It is important to submit requests for un-
due hardship waivers timely because, if a
waiver request is denied, it can take up
to 45 days to obtain authorization from
the IRS to electronically file individual in-
come tax returns.SeeIRS Publication
3112 (IRS e-file Application and Participa-
tion).
SECTION 8. APPROVAL OF
THE WAIVER REQUEST AND
RECONSIDERATION OF DENIED
WAIVER REQUESTS
.01 The IRS will review and process
undue hardship waiver requests in a timely
manner and will send the specified tax
return preparer written notice of any ap-
proval or denial of the undue hardship
waiver request. The IRS will not be con-
sidered to have waived the electronic filing
requirement unless the specified tax re-
turn preparer receives written notice from
the IRS that the undue hardship waiver
request has been approved.
.02 If an undue hardship waiver request
is denied, the specified tax return preparer
may send a written request for reconsid-
eration to the address listed on the writ-
ten notice of denial by the date specified
on that notice. The specified tax return
preparer must state in the request for re-
consideration the grounds for reconsidera-
tion and may include additional informa-
tion or documentation to support the re-
quest for reconsideration. The IRS will
make a reconsideration determination in
writing on whether to approve or deny the
undue hardship waiver request, as supple-
mented by the request for reconsideration
and will send the specified tax return pre-
parer written notice of any approval or de-
nial of the undue hardship waiver request.
There is no further administrative review
of this reconsideration determination, nor
is there a right to judicial review of an ad-
verse determination.
SECTION 9. DOCUMENTING A
TAXPAYER’S CHOICE TO FILE IN
PAPER FORMAT
.01 Section 301.6011–7(a)(4)(i) pro-
vides that an individual income tax return
is considered to befiledby a tax return
preparer or a specified tax return preparer
if the preparer submits the tax return to
the IRS on the taxpayer’s behalf, either
electronically (by e-file or other magnetic
media) or in non-electronic (paper) form,
and that submission of an individual in-
come tax return by a tax return preparer or
a specified tax return preparer in non-elec-
tronic form includes the transmission,
April 25, 20117272011–17 I.R.B.

sending, mailing or otherwise delivering
of the paper tax return to the IRS by the
preparer, any member, employee, or agent
of the preparer, or any member, employee,
or agent of the preparer’s firm. Section
301.6011–7(a)(4)(ii), however, provides
that an individual income tax return will
not be considered to be filed, as defined
in § 301.6011–7(a)(4)(i), by a tax return
preparer or specified tax return preparer
if the tax return preparer or specified tax
return preparer who prepared the return
obtains, on or prior to the date the return is
filed, a hand-signed (by either spouse if a
joint return) and dated statement from the
taxpayer that states the taxpayer chooses
to file the return in paper format, and that
the taxpayer, and not the preparer, is filing
the paper return with the IRS (e.g.,sub-
mittingitbymailtotheIRS).
.02 A tax return preparer or specified
tax return preparer should document a tax-
payer’s choice to file in paper format in the
manner prescribed in this revenue proce-
dure.
.03 A taxpayer’s choice to file an indi-
vidual income tax return in paper format
must be in writing, must affirm that the tax-
payer is choosing to file the return in pa-
per format, and must affirm that the tax-
payer, and not the preparer, is filing the
return (e.g., submitting it by mail to the
IRS). This statement must be hand-signed
and dated by the taxpayer (by either spouse
if a joint return) on or before the date the
taxpayer’s return is filed with the IRS. The
choice to file in paper format is the tax-
payer’s alone.
.04 If hand-signed and dated by the tax-
payer on or before the date the subject in-
dividual income tax return is filed with
the IRS, the following statement contained
in the signed writing will be sufficient to
show that a taxpayer chooses to file the
taxpayer’s return in paper format and that
the taxpayer, and not the tax return pre-
parer or specified tax return preparer, will
file the return:
Mytaxreturnpreparer[INSERTPRE-
PARER’S NAME] has informed me
that [INSERT s/he] may be required to
electronically file my [INSERT TAX
YEAR] individual income tax return
[INSERT TYPE OF RETURN: Form
1040, Form 1040A, Form 1040EZ,
Form 1041, Form 990–T] if [INSERT
s/he] files it with the IRS on my behalf
(e.g., submits it by mail to the IRS). I
understand that electronic filing may
provide a number of benefits to taxpay-
ers, including an acknowledgement that
the IRS received the returns, a reduced
chance of errors in processing the re-
turns, and faster refunds. I do not want
to have my return electronically filed,
and I choose to file my return on paper
forms. I will mail or otherwise submit
my paper return to the IRS myself. My
preparer will not file or otherwise mail
or submit my paper return to the IRS.
.05 The statement containing the tax-
payer’s choice to file in paper format
should not be attached to the taxpayer’s
individual income tax return. This state-
ment should be retained by the tax return
preparer.
.06 The burden of compliance with the
electronic filing requirement contained in
section 6011(e)(3) and § 301.6011–7 is on
the tax return preparer and specified tax
return preparer. Neither the fact that the
IRS receives a taxpayer’s paper individ-
ual income tax return in the mail nor the
fact that the tax return preparer’s or spec-
ified tax return preparer’s general busi-
ness practice is to not mail paper individ-
ual income tax returns for clients neces-
sarily establishes that the preparer did not
file a particular individual income tax re-
turn with the IRS. If the tax return preparer
or specified tax return preparer obtains a
hand-signed and dated statement in com-
pliance with the requirements established
in this Section 9, the hand-signed state-
ment will demonstrate compliance should
the IRS question a preparer about the filing
of a particular individual income tax return
in paper format.
.07Anemailmessagefromthetax-
payer is insufficient to demonstrate a
taxpayer’s choice to file an individ-
ual income tax return in paper format.
If sent as a scanned attachment to an
email, however, a copy of a hand-signed
and dated statement in compliance with
§301.6011–7(a)(4)(ii)andSection9of
this revenue procedure will suffice to
demonstrate compliance.
.08 This Section 9 does not apply ei-
ther to individual income tax returns that
meet, or to specified tax return preparers
who meet, the criteria for an administra-
tive exemption. See Section 4 above.
SECTION 10. EFFECTIVE DATE
This revenue procedure is effective on
January 1, 2011.
SECTION 11. PAPERWORK
REDUCTION ACT
The collection of information contained
in this revenue procedure relating to un-
due hardship waiver requests has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)) under control number
1545–2201. The collection of information
related to documenting a taxpayer’s choice
to file in paper format was previously
submitted to the Office of Management
and Budget for review, see 75 F.R. 75439
for details, and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)) under control number
1545–2201.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this
revenue procedure is in Sections 5 and
6. This information is required for a tax
return preparer who meets the definition
of specified tax return preparer to obtain
an undue hardship waiver of the electronic
filing requirement contained in section
6011(e)(3) and § 301.6011–7. This in-
formation will be used in exercising the
IRS’s discretion to grant undue hardship
waivers and approving or denying requests
for such waivers based on the specified
tax return preparer’s particular facts and
circumstances, or for purposes of recon-
sidering an undue hardship waiver request
that has been denied. The likely respon-
dents are individuals and small businesses
who prepare and file individual income
tax returns as paid tax return preparers
and who meet the definition of specified
tax return preparer contained in section
6011(e)(3)(B) and § 301.6011–7(a)(3).
The estimated total annual reporting
and/or recordkeeping burden is 3,949 total
hours for waiver requests for calendar year
2011, and 7,328 total hours for waiver
requests for calendar year 2012.
2011–17 I.R.B.728April 25, 2011

The estimated annual burden per re-
spondent/recordkeeper varies from 15
minutes to 2 hours, depending on indi-
vidual circumstances, with an estimated
average of 1 hour. Wecalculated 15 min-
utes of preparation for a basic waiver
without attachments and minimal explana-
tion (e.g., federal disaster declaration); 31
minutes for a bankruptcy waiver with at-
tachments; 51 minutes for “other” waiver
with attachments and detailed explana-
tion; and 2 hours for an economic hardship
waiver with attachments. We estimated
6 minutes for recordkeeping, consisting
of maintaining a copy of the information
submitted for the respondent’s records.
The estimated number of respondents
and/or recordkeepers is 3,949 for waiver
requests for calendar year 2011 and 7,328
for waiver requests for calendar year 2012.
The estimated annual frequency of re-
sponses (used for reporting requirements
only) is no more than once per respondent.
Books or records relating to a collection
of information must be retained as long as
their contents may become material in the
administration of any internal revenue law.
SECTION 12. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Keith Brau of the Office of
Associate Chief Counsel (Procedure &
Administration). For further information
regarding this revenue procedure, con-
tact Keith Brau at (202) 622–4940 (not a
toll-free call).
April 25, 20117292011–17 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2011–17 I.R.B.iApril 25, 2011

Numerical Finding List
1
Bulletin 2011–1 through 2011–17
Announcements:
2011-1, 2011-2 I.R.B.304
2011-2, 2011-3 I.R.B.324
2011-3, 2011-3 I.R.B.324
2011-4, 2011-4 I.R.B.424
2011-5, 2011-4 I.R.B.430
2011-6, 2011-4 I.R.B.433
2011-7, 2011-5 I.R.B.446
2011-8, 2011-5 I.R.B.446
2011-9, 2011-7 I.R.B.499
2011-10, 2011-7 I.R.B.499
2011-11, 2011-7 I.R.B.500
2011-12, 2011-9 I.R.B.532
2011-13, 2011-8 I.R.B.525
2011-14, 2011-9 I.R.B.532
2011-15, 2011-8 I.R.B.526
2011-16, 2011-7 I.R.B.500
2011-17, 2011-9 I.R.B.532
2011-18, 2011-12 I.R.B.567
2011-19, 2011-11 I.R.B.553
2011-20, 2011-10 I.R.B.542
2011-21, 2011-12 I.R.B.567
2011-22, 2011-16 I.R.B.672
2011-23, 2011-12 I.R.B.568
2011-24, 2011-12 I.R.B.569
2011-25, 2011-14 I.R.B.608
2011-26, 2011-14 I.R.B.608
2011-27, 2011-15 I.R.B.651
Notices:
2011-1, 2011-2 I.R.B.259
2011-2, 2011-2 I.R.B.260
2011-3, 2011-2 I.R.B.263
2011-4, 2011-2 I.R.B.282
2011-5, 2011-3 I.R.B.314
2011-6, 2011-3 I.R.B.315
2011-7, 2011-5 I.R.B.437
2011-8, 2011-8 I.R.B.503
2011-9, 2011-6 I.R.B.459
2011-10, 2011-6 I.R.B.463
2011-11, 2011-7 I.R.B.497
2011-12, 2011-8 I.R.B.514
2011-13, 2011-9 I.R.B.529
2011-14, 2011-11 I.R.B.544
2011-15, 2011-10 I.R.B.539
2011-16, 2011-17 I.R.B.720
2011-17, 2011-10 I.R.B.540
2011-18, 2011-11 I.R.B.549
2011-19, 2011-11 I.R.B.550
2011-20, 2011-16 I.R.B.652
2011-22, 2011-12 I.R.B.557
2011-23, 2011-13 I.R.B.588
Notices— Continued:
2011-24, 2011-14 I.R.B.603
2011-25, 2011-14 I.R.B.604
2011-26, 2011-17 I.R.B.720
2011-27, 2011-17 I.R.B.723
2011-28, 2011-16 I.R.B.656
2011-29, 2011-16 I.R.B.663
2011-30, 2011-17 I.R.B.724
2011-31, 2011-17 I.R.B.724
Proposed Regulations:
REG-140108-08, 2011-13 I.R.B.591
REG-149335-08, 2011-6 I.R.B.468
REG-146097-09, 2011-8 I.R.B.516
REG-153338-09, 2011-14 I.R.B.606
REG-124018-10, 2011-2 I.R.B.301
REG-131151-10, 2011-8 I.R.B.519
REG-131947-10, 2011-8 I.R.B.521
REG-132724-10, 2011-7 I.R.B.498
Revenue Procedures:
2011-1, 2011-1 I.R.B.1
2011-2, 2011-1 I.R.B.90
2011-3, 2011-1 I.R.B.111
2011-4, 2011-1 I.R.B.123
2011-5, 2011-1 I.R.B.167
2011-6, 2011-1 I.R.B.195
2011-7, 2011-1 I.R.B.233
2011-8, 2011-1 I.R.B.237
2011-9, 2011-2 I.R.B.283
2011-10, 2011-2 I.R.B.294
2011-11, 2011-4 I.R.B.329
2011-12, 2011-2 I.R.B.297
2011-13, 2011-3 I.R.B.318
2011-14, 2011-4 I.R.B.330
2011-15, 2011-3 I.R.B.322
2011-16, 2011-5 I.R.B.440
2011-17, 2011-5 I.R.B.441
2011-18, 2011-5 I.R.B.443
2011-19, 2011-6 I.R.B.465
2011-20, 2011-11 I.R.B.551
2011-21, 2011-12 I.R.B.560
2011-23, 2011-15 I.R.B.626
2011-25, 2011-17 I.R.B.725
2011-26, 2011-16 I.R.B.664
Revenue Rulings:
2011-1, 2011-2 I.R.B.251
2011-2, 2011-2 I.R.B.256
2011-3, 2011-4 I.R.B.326
2011-4, 2011-6 I.R.B.448
2011-5, 2011-13 I.R.B.577
2011-6, 2011-10 I.R.B.537
2011-7, 2011-10 I.R.B.534
2011-8, 2011-12 I.R.B.554
2011-9, 2011-12 I.R.B.554
Revenue Rulings— Continued:
2011-10, 2011-14 I.R.B.597
Treasury Decisions:
9507, 2011-3 I.R.B.305
9508, 2011-7 I.R.B.495
9509, 2011-6 I.R.B.450
9510, 2011-6 I.R.B.453
9511, 2011-6 I.R.B.455
9512, 2011-7 I.R.B.473
9513, 2011-8 I.R.B.501
9514, 2011-9 I.R.B.527
9515, 2011-14 I.R.B.599
9516, 2011-13 I.R.B.575
9517, 2011-15 I.R.B.610
9518, 2011-17 I.R.B.710
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin
2010–52, dated December 27, 2010.
April 25, 2011ii2011–17 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2011–1 through 2011–17
Announcements:
85-88
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
2008-11
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2009-62
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Notices:
2006-87
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-25
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-77
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2008-107
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2009-23
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-24
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-83
Modified by
Notice 2011-25, 2011-14 I.R.B.604
2010-27
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2010-59
Modified by
Notice 2011-5, 2011-3 I.R.B.314
2010-71
Modified and superseded by
Notice 2011-9, 2011-6 I.R.B.459
2010-79
Clarified and modified by
Notice 2011-4, 2011-2 I.R.B.282
Proposed Regulations:
REG-132554-08
Corrected by
Ann. 2011-11, 2011-7 I.R.B.500
REG-149335-08
Hearing scheduled by
Ann. 2011-26, 2011-14 I.R.B.608
Revenue Procedures:
72-50
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
76-34
Modified and supersed by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
83-23
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
94-17
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
97-27
Clarified and modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2001-10
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2002-28
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2003-21
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2004-34
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Modified and clarified by
Rev. Proc. 2011-18, 2011-5 I.R.B.443
2006-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2006-56
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2008-52
Modified by
Notice 2011-4, 2011-2 I.R.B.282
Rev. Proc. 2011-17, 2011-5 I.R.B.441
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Revenue Procedures— Continued:
2009-39
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2010-1
Superseded by
Rev. Proc. 2011-1, 2011-1 I.R.B.1
2010-2
Superseded by
Rev. Proc. 2011-2, 2011-1 I.R.B.90
2010-3
Superseded by
Rev. Proc. 2011-3, 2011-1 I.R.B.111
2010-4
Superseded by
Rev. Proc. 2011-4, 2011-1 I.R.B.123
2010-5
Superseded by
Rev. Proc. 2011-5, 2011-1 I.R.B.167
2010-6
Superseded by
Rev. Proc. 2011-6, 2011-1 I.R.B.195
2010-7
Superseded by
Rev. Proc. 2011-7, 2011-1 I.R.B.233
2010-8
Superseded by
Rev. Proc. 2011-8, 2011-1 I.R.B.237
2010-9
Superseded by
Rev. Proc. 2011-9, 2011-2 I.R.B.283
2010-15
Updated by
Rev. Proc. 2011-13, 2011-3 I.R.B.318
2010-18
Amplified and modified by
Rev. Proc. 2011-21, 2011-12 I.R.B.560
2010-25
Obsoleted in part by
Rev. Proc. 2011-23, 2011-15 I.R.B.626
2011-1
Corrected by
Ann. 2011-7, 2011-5 I.R.B.446
2011-8
Corrected by
Ann. 2011-8, 2011-5 I.R.B.446
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27,
2010.
2011–17 I.R.B.iiiApril 25, 2011

Revenue Procedures— Continued:
2011-11
Corrected by
Ann. 2011-9, 2011-7 I.R.B.499
2011-21
Amplified by
Rev. Proc. 2011-26, 2011-16 I.R.B.664
Revenue Rulings:
81-100
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2004-67
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2008-40
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2011-3
Corrected by
Ann. 2011-16, 2011-7 I.R.B.500
Treasury Decisions:
9391
Corrected by
Ann. 2011-12, 2011-9 I.R.B.532
9505
Corrected by
Ann. 2011-10, 2011-7 I.R.B.499
April 25, 2011iv2011–17 I.R.B.

INDEX
Internal Revenue Bulletin 2011–1 through
2011–17
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
403(b) plans, plan termination (RR 7) 10,534
Affordable Care Act, nondiscrimination provisions applicable to
insured group health plans (Notice 1) 2,259
Cash balance plans and other hybrid defined benefit pension
plans, correction to TD 9505 (Ann 10) 7,499; correction to
REG–132554–08 (Ann 11) 7,500
Determination letters, issuing procedures (RP 6) 1,195
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 2011 (Notice 7) 5,437
February 2011 (Notice 13) 9,529
March 2011 (Notice 22) 12,557
Guidance under section 162(m)(6) (Notice 2) 2,260
Joint Board for the Enrollment of Actuaries, regulations govern-
ing the performance of actuarial services (TD 9517) 15,610
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,111
Associate Chief Counsel (International) (RP 7) 1,233
And general information letters, procedures (RP 4) 1,123
User fees, request for letter rulings (RP 8) 1,237; correction
(Ann 8) 5,446
Proposed Regulations:
26 CFR 1.411(b)(5)–1, revised;hybrid retirement plans; cor-
rection to REG–132554–08 (Ann 11) 7,500
Qualified plans:
Covered compensation tables, permitted disparity (RR 3) 4,
326; correction (Ann 16) 7,500
Group trusts (RR 1) 2,251
Minimum funding requirements relief (Notice 3) 2,263
EMPLOYEE PLANS—Cont.
Readily tradable securities (Notice 19) 11,550
Reporting requirements, Form 8955–SSA (Ann 21) 12,567
Regulations:
20 CFR 901.0, .1, .10, .11, amended; 901.12, removed;
901.13, redesignated as 901.12 and amended; 901.20, .31,
.32, .47, amended; 901.72, added; regulations governing
the performance of actuarial services (TD 9517) 15,610
26 CFR 1.411(b)(5)–1, revised; hybrid retirement plans; cor-
rection to TD 9505 (Ann 10) 7,499
Technical advice to IRS employees (RP 5) 1,167
EMPLOYMENT TAX
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Interim guidance for cost of health care coverage reporting on
Form W-2 (Notice 28) 16,656
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6071, amended; 31.6302–0 thru –2, –4, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (EFT) of depository taxes (TD 9507) 3,305
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Withholding on wages of nonresident alien employees perform-
ing services within the United States (Notice 12) 8,514
ESTATE TAX
Instructions for persons answering questions relating to foreign
financial accounts on 2010 federal income tax and information
returns (Notice 31) 17,724
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
2011–17 I.R.B.vApril 25, 2011

EXCISE TAX
Biodiesel and alternative fuels, claims for 2010 (Notice 10) 6,
463
Branded prescription drug sales (Notice 9) 6,459
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6302–0 thru –2, –4, amended; 31.6071, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (EFT) of depository taxes (TD 9507) 3,305
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXEMPT ORGANIZATIONS
Delayed filing season for certain tax-exempt hospitals (Ann 20)
10,542
Disclosure of information to stateofficials regarding tax-exempt
organizations (REG–140108–08) 13,591
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Filing thresholds for Form 990 (RP 15) 3,322
Letter rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,111
Exemption application determination letter rulings under
sections 501, 509, 4940, and 4942 (RP 10) 2,294
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 2,283
And general information letters, procedures (RP 4) 1,123
User fees, request for letter rulings (RP 8) 1,237; correction
(Ann 8) 5,446
List of organizations classified as private foundations (Ann 3) 3,
324; (Ann 13) 8,525; (Ann 27) 15,651
Medicare Shared Savings Program (MSSP), participation
through an ACO (Notice 20) 16,652
Notice requesting comments onsection 501(c)(29) (Notice 23)
13,588
Proposed Regulations:
26 CFR 301.6104(c)–1, revised; disclosure of informa-
tion to state officials regarding tax-exempt organizations
(REG–140108–08) 13,591
EXEMPT ORGANIZATIONS—Cont.
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6071, amended; 31.6302–0 thru –2, –4, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (EFT) of depository taxes (TD 9507) 3,305
Revocations (Ann 2) 3,324;(Ann15)8,526;(Ann17)9,532;
(Ann 23) 12,568; (Ann 25) 14,608
Technical advice to IRS employees (RP 5) 1,167
GIFT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
INCOME TAX
Accounting methods, automatic consent for Blue Cross/Blue
Shield and certain other health organizations to change method
of accounting for unearned premiums (Notice 4) 2,282
Accrual of liabilities (RP 17) 5,441
Additional first year depreciation deduction (RP 26) 16,664
Administrative exemptions to thespecified tax return preparer
electronic filing requirement under Code section 6011(e)(3)
and corresponding regulations (Notice 26) 17,720
Advance Pricing Agreement (APA) Program, 2010 (Ann 22) 16,
672
Bonds:
Qualified Zone Academy Bond limitation for 2011 (RP 19) 6,
465
Capital assets, election for certain musical works (TD 9515) 9,
527
Cost-of-living adjustments for inflation for 2011 (RP 12) 2,297
Credits:
Carbon dioxide sequestration (Notice 25) 14,604
Foreign tax credit, Puerto Rican excise tax (Notice 29) 16,663
Low-income housing tax credit: 2011 population figures used
for calculation (Notice 15) 10,539
Noncoventional source fuel credit inflation adjustment factor
and phase-out amount for CY 2010 (Notice 30) 17,724
Qualifying advanced coal programand qualifying gasification
programs, carbon dioxide sequestration (Notice 24) 14,603
Debt instruments:
Deterioration in financial condition of issuer (TD 9513) 8,501
For publicly traded property, issue price (REG–131947–10)
8,521
April 25, 2011vi2011–17 I.R.B.

INCOME TAX—Cont.
Deductions for contributions to qualified nuclear decommission-
ing trusts (TD 9512) 7,473
Deductions for medical expenses (Ann 14) 9,532
Definition of omission from gross income (TD 9511) 6,455
Depreciation, 2011 limitations ondeductions for passenger auto-
mobiles (RP 21) 12,560
Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 4) 4,424;
(Ann 24) 12,569
Disclosure of returns and return information to designee of tax-
payer (REG–153338–09) 14,606
Disclosure of return information in connection with written con-
tracts among the IRS, whistleblowers, and legal representa-
tives of whistleblowers (TD 9516) 13,575
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Emancipation day and tax filing and payment deadlines (Notice
17) 10,540
Employer-provided vehicles, cents-per-mile rule, maximum ve-
hicle values for 2011 (RP 11) 4,329;correction(Ann9)7,499
Extension of Fast Track Settlement (FTS) for SB/SE taxpayer
pilot program (Ann 5) 4,430
Farmer and fisherman income averaging (TD 9509) 6,450
Foreign earned income exclusion (RP 20) 11,551
Guidance under section 162(m)(6) (Notice 2) 2,260
Health FSA/HRA debit cards, purchase over-the-counter drug
purchases (Notice 5) 3,314
Housing cost amounts eligible for exclusion or deduction, 2011
(Notice 8) 8,503
Implementation of rules governing tax return preparers (Notice
6) 3,315
Income recognition for advance payments received from the sale
of gift cards (RP 18) 5,443
Information reporting, mortgageassistance programs (Notice 14)
11,544
Information reporting requirementsforissuersofstock(Notice
18) 11,549
Instructions for persons answering questions relating to foreign
financial accounts on 2010 federal income tax and information
returns (Notice 31) 17,724
Insurance:
Tax-free exchange of life insurance contract that is excepted
from the pro rata interest disallowance rule of section 264(f)
(RR 9) 12,554
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2011 (RR 2) 2,256
February 2011 (RR 4) 6,448
March 2011 (RR 6) 10,537
April 2011 (RR 10) 14,597
Rates:
Underpayment and overpayments, quarter beginning
April 1, 2011 (RR 5) 13,577
INCOME TAX—Cont.
Letter rulings:
And determination letters, areas which will not be issued
from:
Associate Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,111
Associate Chief Counsel (International) (RP 7) 1,233
And information letters issued byAssociate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1;
correction to Rev. Proc. 2011–1 (Ann 7) 5,446
Mailing of individual income tax returns by specified tax return
preparers in calendar year 2011 (Notice 27) 17,723
Method of accounting, automatic and non-automatic changes
(RP 14) 4,330
Mortgage assistance programs, income exclusion, safe harbor
deduction method (Notice 14) 11,544
Penalties, substantial understatement, preparer penalty (RP 13)
3,318
Private foundations, organizations now classified as (Ann 3) 3,
324; (Ann 13) 8,525; (Ann 27) 15,651
Proposed Regulations:
26 CFR 1.263A–0 thru –3, amended; 1.471–3,
amended; sales-based royalties and vendor allowances
(REG–149335–08) 6,468; hearing scheduled (Ann 26)
14,608
26 CFR 1.863–10, added; source of income from qualified
fails charges (REG–132724–10) 7,498
26 CFR 1.1273–1, –2, amended; 1.1274–3, amended;
1.1275–2, amended; property traded on an established
market (REG–131947–10) 8,521
26 CFR 1.6049–4, revised; 1.6049–5, –6, amended;
1.6049–8, revised; 31.3406(g)–1, revised; guid-
ance on reporting interest paid to nonresident aliens
(REG–146097–09) 8,516
26 CFR Part 300.0, .4, 5, .6, amended; Parts 300.9 thru
.11, added; user fees relative to retirement plan agents
(REG–124018–10) 2,301
26 CFR 301.6103(c)–1, amended; disclosure of re-
turn and return information to designee of taxpayer
(REG–153338–09) 14,606
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Publication:
1220, changes affecting tax year 2010 filing of information
returns (Ann 1) 2,304
Qualified mortgage bonds (QMBs) and mortgage credit certifi-
cates (MCCs), average area purchase price for 2011 (RP 23)
15,626
Real Estate Investment Trust (REIT) distressed debt (RP 16) 5,
440
Redetermination of intercompany gain as excluded from gross
income (TD 9515) 14,599
Regulations:
26 CFR 1.468A–0T thru –9T, removed; 1.468A–0 thru –9,
added; 602.101, amended; deductions for contributions to
qualified nuclear decommissioning trusts (TD 9512) 7,473
2011–17 I.R.B.viiApril 25, 2011

INCOME TAX—Cont.
26 CFR 1.863–10T, added; source of income from qualified
fails charges (TD 9508) 7,495
26 CFR 1.932–1, amended; source rules involving U.S. pos-
sessions and other conforming changes, correction to TD
9391 (Ann 12) 9,532
26 CFR 1.1001–3, amended; modifications of debt instru-
ments (TD 9513) 8,501
26 CFR 1.1221–3; added; 1.221–1–3T, removed; time and
manner rules for electing capital asset treatment for certain
self-created musical works (TD 9514) 9,527
26 CFR 1.1301–1, amended; 1.1301–1T, removed; farmer
and fisherman income averaging (TD 9509) 6,450
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6302–0 thru –2, –4, amended; 31.6302(c)–2A, re-
moved; 31.6302(c)–3, amended; 40.6302–1T, amended;
40.6302(c)–3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; electronic
funds transfer of depository taxes (TD 9507) 3,305
26 CFR 1.1502–13, amended; 1.1502–13T, revised; amend-
ment of matching rules for certain gains on member stock
(TD 9515) 14,599
26 CFR 1.6011–6, added and reserved; 1.6011–7, added;
301.6011–6, added and reserved; 301.6011–7, added; spec-
ified tax return preparers required to file individual income
tax returns using magnetic media (TD 9518) 17,710
26 CFR 1.6012–2, amended; requirement of a statement dis-
closing uncertain tax positions (TD 9510) 6,453
26 CFR 301.6103(n)–2, added; 301.6103(n)–2T, removed;
disclosure of return information in connection with written
contracts among the IRS, whistleblowers, and legal repre-
sentatives of whistleblowers (TD 9516) 13,575
26 CFR 301.6229(c)(2)–1, added; 301.6229(c)(2)–1T, re-
moved; 301.6501(e)-1, added; 301.6501(e)–1T, removed;
definition of omission from gross income (TD 9511) 6,455
Relief and procedures for eligible taxpayers claiming benefits
under the Military Spouses Residency Relief Act (MSRRA)
(Notice 16) 17,720
Relief for tax return preparers who have pending PTIN applica-
tions (Notice 11) 7,497
Reporting requirements for interest paid to nonresident alien in-
dividuals (REG–146097–09) 8,516
Requirement of a statement disclosing uncertain tax positions
(TD 9510) 6,453
Revocations, exempt organizations (Ann 2) 3,324; (Ann 15) 8,
526;(Ann17)9,532; (Ann 23) 12,568; (Ann 25) 14,608
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Sales-based royalties and vendor allowances (REG–149335–08)
6,468; hearing scheduled (Ann 26) 14,608
Source of income from qualified fails charges (TD 9508) 7,495;
(REG–132724–10) 7,498
Source rules involving U.S. possessions and other conforming
changes, correction to TD 9391 (Ann 12) 9,532
Specified tax return preparers required to file individual income
tax returns using magnetic media (TD 9518) 17,710
Standard Industry Fare Level (SIFL) (RR 8) 12,554
INCOME TAX—Cont.
State and local government bonds, TEB VCAP (Ann 19) 11,553
Tax convention:
U.S.-China agreement with respect to professors and teachers
(Ann 18) 12,567
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Test of procedures for mediation and arbitration for Offer in
Compromise (OIC) and Trust Fund Recovery Penalty (TFRP)
cases in appeals (Ann 6) 4,433
Undue hardship waivers of the section 6011(e)(3) electronic fil-
ing requirement and taxpayer choice statements to file in paper
format (RP 25) 17,725
Userfeesrelatingtoenrolledagents and enrolled retirement plan
agents (REG–124018–10) 2,301
SELF-EMPLOYMENT TAX
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6071, amended; 31.6302–0 thru –2, –4, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (EFT) of depository taxes (TD 9507) 3,305
Technical Advice Memoranda (TAMs) (RP 2) 1,90
April 25, 2011viii2011–17 I.R.B.

2011–17 I.R.B.April 25, 2011

April 25, 20112011–17 I.R.B.

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