Internal Revenue Bulletin 2014-24 (PDF rendition): IRS Revenue Rulings

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.

# Internal Revenue bulletin

## HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

## INCOME TAX

Rev. Rul. 2014-15, page 1095.

This revenue ruling provides guidance to employers funding
their retiree health benefits through a wholly owned subsidiary.
The ruling concludes that the arrangement is insurance for
federal income tax purposes.

Rev. Rul. 2014-16, page 1097.

Federal rates; adjusted federal rates; adjusted federal long-
term rate and the long-term exempt rate. For purposes of
sections 382, 642, 1274, 1288, and other sections of the
Code, tables set forth the rates for June 2014.

### Rev. Rul. 2014-17, page 1093.

This revenue ruling holds that tangible assets used in convert-
ing corn to fuel grade ethanol are properly included in asset
class 49.5 of Rev. Proc. 87-56 for depreciation purposes.

## EMPLOYEE PLANS

### Notice 2014-37, page 1100.

This notice provides guidance on an amendment to reflect the
outcome of United States v. Windsor, 570 U.S. __ , 133 S. Ct.
2675 (2013) that is adopted after the beginning of a plan year
that is effective during a plan year ("mid-year amendment") to a
plan described in Internal Revenue Code ("Code") § 401(k)(12)
or (13) ("§ 401(k) safe harbor plan") or § 401(m)(11) or (12)
("§ 401(m) safe harbor plan") of the Internal Revenue Code
pursuant to Q&A-8; of Notice 2014-19, 2014-17 IRB 979.

## ADMINISTRATIVE

Rev. Rul. 2014-17, page 1093.

This revenue ruling holds that tangible assets used in convert-
ing corn to fuel grade ethanol are properly included in asset
class 49.5 of Rev. Proc. 87-56 for depreciation purposes.

Notice 2014-38, page 1100.

This notice updates the appendix to Notice 2013-1, which lists
the Indian tribes who have settled tribal trust cases against the
United States. Notice 2012-60 originally was published in IRB
2012-41 (October 9, 2012). Notice 2012-60 was super-
ceded by Notice 2013-1 IRB 2013-3, and the appendix to
Notice 2013-1 was superceded by Notice 2013-16 (IRB
2013-14), then Notice 2013-36, then Notice 2013-55, and
then Notice 2014-22. However, an additional tribe has settled
its case against the United States since the publication of
Notice 2014-22, so we are publishing an updated appendix to
Notice 2013-1. This notice supercedes Notice 2014-22.

Finding Lists begin on page ii.
Index for July through June begins on page iv.

Department of the Treasury
Internal Revenue Service

## The IRS Mission

Provide America's taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.

## Introduction

The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.

It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal practices and procedures that affect the rights and duties
of taxpayers are published.

Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings to
taxpayers or technical advice to Service field offices, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.

Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

### Part I .- 1986 Code.

This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.

### Part II .- Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion and Related Committee Reports.

Part III .- Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury's Office of the Assistant Sec-
retary (Enforcement).

### Part IV .- Items of General Interest.

This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

# Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

## Section 42 .- Low-Income Housing Credit

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 167 .- Depreciation

Depreciation based on class lives and asset de-
preciation ranges for property placed in service after
December 31, 1970.

## Section 168 .- Accelerated Cost Recovery System

26 CFR 1.168(a)-1: Modified accelerated cost re-
covery system.(Also § 167, 1.167(a)-11)

## Rev. Rul. 2014-17 ISSUE

What is the proper asset class under
Rev. Proc. 87-56, 1987-2 C.B. 674, as
clarified and modified by Rev. Proc. 88-22,
1988-1 C.B. 785, for the depreciation of
tangible assets that are used in converting
corn to fuel grade ethanol?

## FACTS

Taxpayer owns a facility operated pri-
marily to produce fuel grade ethanol. Fuel
grade ethanol is a colorless, flammable
liquid that is an organic chemical, and a
high octane alternative fuel source. Tax-
payer produces fuel grade ethanol from
corn.

Taxpayer grinds the corn into flour,
mixes the resulting corn flour with water,
increases the temperature, and adds en-
zymes to convert the starch in the solution
to simple sugars. Taxpayer feeds the re-
sulting mash (water, sugars, and non-
convertible solids) into fermentation tanks
where yeast is added. Over a period of
several days the yeast metabolizes the
sugars into ethanol and carbon dioxide
(CO2). The CO2 produced during fermen-
tation may be collected, compressed, and
sold as a by-product.

Taxpayer then sends the ethanol solu-
tion to distillation columns to separate the
ethanol from the solids and water. After
distillation, taxpayer produces fuel grade
ethanol by further processing part of the
output using dehydration to increase alco-
hol content. Dehydration is accomplished
by using molecular sieves that separate
the remaining water molecules from the
ethanol. Once the dehydration is com-
plete, Taxpayer blends the fuel grade eth-
anol with 2 to 5 percent denaturant (such
as natural gasoline or unleaded gasoline)
and sends it to storage pending sale.

Taxpayer also processes the solids and
other liquids derived from the distillation
to produce distillers grains, an animal feed
supplement, which it sells. More than 50
percent of the economic output at Taxpay-
er's facility is from fuel grade ethanol
production.

LAW

Statutory Scheme

Section 167(a) of the Internal Revenue
Code provides that there shall be allowed
as a depreciation deduction a reasonable
allowance for the exhaustion and wear
and tear of property used in a trade or
business or held for the production of in-
come.

The depreciation deduction provided
by § 167(a) for tangible property placed in
service after 1986 generally is determined
under § 168, which prescribes two meth-
ods of accounting for determining depre-
ciation allowances: (1) the general depre-
ciation system in § 168(a); and (2) the
alternative depreciation system in
§ 168(g). Under either depreciation sys-
tem, the depreciation deduction is com-
puted by using a prescribed depreciation
method, recovery period, and convention.
This revenue ruling addresses the applica-
ble recovery period.

The applicable recovery period for pur-
poses of either § 168(a) or § 168(g) is
determined by reference to class life or by
statute. Section 168(i)(1) provides that the
term "class life" means the class life (if
any) that would apply to any property as
of January 1, 1986, under former

§ 167(m) as if it were in effect and the
taxpayer had made an election under that
section. Prior to its revocation, § 167(m)
provided that, if a taxpayer elected the
asset depreciation range system of depre-
ciation, the depreciation deduction would
be computed based on the class life pre-
scribed by the Secretary that reasonably
reflected the anticipated useful life of that
class of property to the industry or other
group. Rev. Proc. 87-56 sets forth the
class lives of property in effect as of Jan-
uary 1, 1986, that are necessary to com-
pute depreciation under § 168.

### Primary Use Test

Section 1.167(a)-11(b)(4)(iii)(b) of the
Income Tax Regulations provides rules
for classifying property under former
§ 167(m) and, under these rules, property
is included in the asset class for the activ-
ity for which the property is primarily
used (the "primary use" test). Property is
classified according to its primary use
even though the activity for which the
property is primarily used is insubstantial
in relation to all the activities of the tax-
payer.

Courts have considered the "primary
use" standard for asset classification under
§ 1.167(a)-11(b)(4)(iii)(b). See, e.g., Clajon
Gas Co, L.P. v. Commissioner, 354 F.3d
786 (8th Cir. 2004). In applying the "pri-
mary use" test, courts have clarified that
the actual purpose and function of an asset
determines its asset class (a use-driven
functional standard) rather than the termi-
nology used to describe an asset.

### Asset Classes

Rev. Proc. 87-56 sets forth the class
lives of property that are necessary to
compute the depreciation allowance under
§ 168. This revenue procedure establishes
two broad categories of depreciable as-
sets: (1) asset classes 00.11 through 00.4,
which consist of specific assets used in all
business activities (asset categories); and
(2) asset classes 01.1 through 80.0, which
consist of assets used in specific business
activities (activity categories). The same
item of depreciable property may fall

within both an asset category and an ac-
tivity category, in which case the item is
generally classified in the asset category.
See Norwest Corporation & Subsidiaries
v. Commissioner, 111 T.C. 105, 162
(1998).

Asset class 49.5 of Rev. Proc. 87-56,
Waste Reduction and Resource Recovery
Plants, includes assets used in the conver-
sion of refuse or other solid waste or bio-
mass to heat or to a solid, liquid, or gas-
eous fuel. This asset class also includes all
process plant equipment and structures at
the site used to (1) receive, handle, collect,
and process refuse or other solid waste or
biomass to a solid, liquid, or gaseous fuel,
or (2) handle and burn refuse or other
solid waste or biomass in a waterwall
combustion system, oil or gas pyrolysis
system, or refuse derived fuel system to
create hot water, gas, steam, or electricity.
Asset class 49.5 also includes material
recovery and support assets used in refuse
or solid refuse or solid waste receiving,
collecting, handling, sorting, shredding,
classifying, and separation systems. Asset
class 49.5 does not include any package
boilers, or electric generators and related
assets such as electricity, hot water, steam,
and manufactured gas production plants
classified in classes 00.4, 49.13, 49.221,
and 49.4 of Rev. Proc. 87-56. Asset class
49.5 includes, however, all other utilities
such as water supply and treatment facil-
ities, ash handling, and other related land
improvements of a waste reduction and
resource recovery plant. Assets in class
49.5 have a recovery period of 7 years for
purposes of § 168(a) and 10 years for
purposes of § 168(g).

Asset class 28.0 of Rev. Proc. 87-56,
Manufacture of Chemicals and Allied
Products, includes assets used to manufac-
ture basic organic and inorganic chemi-
cals; chemical products to be used in fur-
ther manufacture, such as synthetic fibers
and plastics materials; and finished chem-
ical products. This asset class also in-
cludes, among other things, all land im-
provements associated with plant site or
production processes, such as effluent
ponds and canals, provided such land im-
provements are depreciable but does not
include buildings and structural compo-

nents as defined in § 1.48-1(e). Asset
class 28.0 does not include assets used in
the manufacture of finished rubber and
plastic products or in the production of
natural gas products, butane, propane, and
by-products of natural gas production
plants. Assets in class 28.0 have a recov-
ery period of 5 years for purposes of
§ 168(a) and 9.5 years for purposes of
§ 168(g).

Rev. Rul. 77-63, 1977-1 C.B. 60,
establishes that the mere use of a chemical
process in the production of a product
does not require an activity to be classified
in asset class 28.0. That revenue ruling
addresses the question of whether assets
used to produce alumina are classified in
asset class 33.2, Manufacture of Primary
Nonferrous Metals, despite the fact that
production used chemical processes. The
chemical processes were part of the tax-
payer's overall process of producing
semi-finished and finished aluminum
products from bauxite ore that the tax-
payer mined. Asset class 33.2 includes
assets used in the smelting, refining, and
electrolysis of nonferrous metals from ore.
Rev. Rul. 77-63 concludes that the chem-
ical processes used to produce the alumina
were an integral part of refining of the
nonferrous metal and further concludes
that all of the assets used in the processing
of the bauxite ore into primary aluminum
(basic metal), including those used in the
chemical processes to produce alumina,
are classified in asset class 33.2. However,
the revenue ruling provides that assets
used to process the alumina for use in
activities other than those required to pro-
duce the basic metal should be classified
in other asset classes.

## ANALYSIS

Asset class 49.5 of Rev. Proc. 87-56
specifically applies to assets used in the
conversion of biomass to a liquid fuel.
Under energy credit provisions that were
enacted near the same time asset class
49.5 was first established in 1979 by Rev.
Proc. 79-26, 1979-1 C.B. 566, “bio-
mass" means any organic substance other
than oil, natural gas, coal, or product of oil
or natural gas or coal. See
§ 48(l)(15)(B)(i), (l)(3)(B) as in effect on

the day before the date of enactment
[11/5/90] of the Revenue Reconciliation
Act of 1990, Pub. L. 101-508.1 The de-
preciation and the former energy credit
provisions of section 48(l) are both based
on cost recovery concepts. Although
§ 48B(c)(4)(A) also includes a definition
of biomass, that provision was enacted sig-
nificantly later as part of the Energy Tax
Incentives Act of 2005 (Pub. L. 109-58)
and is specific to the production of syn-
thesis gas. Accordingly, the definition of
biomass in former § 48(l) is a more ap-
propriate definition of biomass for pur-
poses of asset class 49.5.

The corn used in Taxpayer's facility is
biomass, that is, an organic substance
other than oil, natural gas, coal, or a prod-
uct thereof. Likewise, the fuel grade eth-
anol produced from corn (biomass) at
Taxpayer's facility is liquid fuel for pur-
poses of asset class 49.5.

Asset class 28.0 of Rev. Proc. 87-56,
which includes assets used to manufacture
basic chemicals, is not the appropriate as-
set class for Taxpayer's depreciable tan-
gible assets that are used in converting
corn to fuel grade ethanol, even though
the interim product, ethanol, is an organic
chemical. Taxpayer is primarily engaged
in producing fuel grade ethanol, which is
a liquid fuel, from corn, which is a bio-
mass, at the facility. The production of
ethanol by Taxpayer at the facility is in-
tegral to Taxpayer's production of the fi-
nal product, fuel grade ethanol. The pro-
duction of ethanol as an interim part of the
production of fuel grade ethanol and the
conversion of corn to fuel grade ethanol
by chemical processes does not require
classification in asset class 28.0 or pre-
clude classification in the asset class that
specifically applies to the conversion of
biomass to fuel. Accordingly, under the
"primary use" test of § 1.167(a)-
11(b)(4)(iii)(b), Taxpayer's activity is de-
scribed in asset class 49.5.

### HOLDING

The proper asset class under Rev. Proc.
87-56 for depreciation of tangible assets
used in converting corn to fuel grade eth-
anol is asset class 49.5 (other than § 1250
property not described in asset class 49.5

1In defining "biomass property," former § 48(1)(15), which was added to the Code in 1980, used (with some modifications) the definition of the term "alternate substance" in former § 48(1)(3),
which was added to the Code in 1978.

and assets classified in asset classes 00.11
through 00.4 of Rev. Proc. 87-56).

## COMMENTS RECEIVED ON PROPOSED REVENUE RULING

Notice 2009-64, 2009-36 I.R.B. 307
(September 8, 2009), proposed a revenue
ruling concluding that ethanol plants
should be depreciated using asset class
49.5 and requesting comments. Two com-
ments were received and considered in
finalizing this revenue ruling.

## PROSPECTIVE APPLICATION

Pursuant to § 7805(b)(8), the Internal
Revenue Service will not apply the hold-
ing in this revenue ruling to tangible as-
sets that are used in converting biomass to
a liquid fuel such as fuel grade ethanol
that a taxpayer places in service before
June 9, 2014.

## DRAFTING INFORMATION

The principal author of this revenue rul-
ing is Ruba Nasrallah of the Office of the
Associate Chief Counsel (Income Tax &
Accounting). For further information re-
garding this revenue ruling, contact Charles
Magee of the Office of the Associate Chief
Counsel (Income Tax & Accounting) at
(202) 317-7005 (not a toll-free number).

### Section 280G .- Golden Parachute Payments

Federal short-term, mid-term, and long-term
rates are set forth for the month of June 2014. See
Rev. Rul. 2014-16, page 1097.

#### Section 382 .- Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change

The adjusted applicable federal long-term rate is
set forth for the month of June 2014. See Rev. Rul.
2014-16, page 1097.

## Section 412 .- Minimum Funding Standards

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 467 .- Certain Payments for the Use of Property or Services

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 468 .- Special Rules for Mining and Solid Waste Reclamation and Closing Costs

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 482 .- Allocation of Income and Deductions Among Taxpayers

Federal short-term, mid-term, and long-term
rates are set forth for the month of June 2014. See
Rev. Rul. 2014-16, page 1097.

## Section 483 .- Interest on Certain Deferred Payments

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 642 .- Special Rules for Credits and Deductions

Federal short-term, mid-term, and long-term
rates are set forth for the month of June 2014. See
Rev. Rul. 2014-16, page 1097.

## Section 801 .- Tax Imposed Rev. Rul. 2014-15 ISSUE

Does the arrangement described below
constitute insurance within the meaning of
subchapter L of the Internal Revenue
Code? If so, does the issuer qualify as an
insurance company?

## FACTS

X, a domestic corporation whose stock
is widely held, provides health benefits
within certain limits to a large group of
named retired employees and their depen-
dents, even though it is not legally obli-
gated to do so, and may cancel the cover-
age at any time. X maintains a single-
employer voluntary employees'
beneficiary association that satisfies the
requirements of § 501(c)(9) (VEBA) and
makes a contribution to the VEBA to pro-
vide the health benefits. X deducts the
contribution in accordance with, and to
the extent permitted by, §§ 419 and 419A
of the Code. X has complied with, and
will continue to comply with, all require-
ments of the Employment Retirement In-
come Security Act of 1974, as amended
(ERISA).

In connection with the provision of
health benefits to retirees and their depen-
dents and as an alternative to providing
the benefits on a self-insured basis, the
VEBA enters into Contract A with an
unrelated commercial insurance company,
IC. IC's participation in the arrangement
is a condition of an exemption from the
Department of Labor from certain of the
prohibited transaction provisions of
ERISA.

IC is taxable as a life insurance com-
pany under § 801 of the Code. Contract A
provides noncancellable accident and
health coverage. Under Contract A, IC
will issue quarterly reimbursements to the
VEBA for medical claims that are in-
curred by the covered retirees and their
dependents and paid by the VEBA. Con-
tract A is regulated by the relevant State
insurance commissioner as an accident
and health insurance contract. At the time
that Contract A goes into effect, neither X
nor the VEBA have any commitment or
obligation to offer health benefits to the

covered retirees and their dependents, and
both X and the VEBA may cancel any
provided coverage at any time.

In an effort to keep the premium pay-
ment under Contract A affordable, IC then
enters into Contract B with X's wholly
owned subsidiary, S1, under which S1
receives a premium and reinsures 100 per-
cent of IC's liabilities under Contract A.
Contract B constitutes S1's sole business.
S1 is regulated as an insurance company
under state law, and Contract B is regu-
lated as insurance. The amount of pre-
mium under Contract B is determined at
arm's length in accordance with applica-
ble insurance industry standards. S1 pos-
sesses adequate capital to fulfill its obli-
gations to IC under Contract B. There are
no guarantees that the VEBA or X will
reimburse S1 with respect to its obliga-
tions under Contract B, nor is any of the
premium received by S1 for Contract B
loaned back to the VEBA or X. In all
respects, the parties conduct themselves
consistent with the standards applicable to
an insurance arrangement between unre-
lated parties, except that S1 does not re-
insure any other insurance contracts.

LAW

Subchapter L of the Code sets forth the
regime for taxing insurance companies. In
particular, § 801(a) provides that a life
insurance company must pay tax on its
life insurance company taxable income,
which is defined in § 801(b) to mean life
insurance gross income less life insurance
deductions. Section 816(a), in part, de-
fines a life insurance company as an in-
surance company that has life insurance
reserves and unearned premiums and un-
paid losses on noncancellable life, acci-
dent, or health policies comprising more
than 50 percent of total reserves. Under
§ 816(a), the term "insurance company"
means any company more than half of the
business of which during the taxable year
is the issuing of insurance or annuity con-
tracts or the reinsuring of risks underwrit-
ten by insurance companies. Section
831(c) applies the same definition of "in-
surance company" to determine whether a
taxpayer is an insurance company other
than a life insurance company and there-
fore subject to tax under § 831(a).

Neither the Code nor the regulations
define the terms "insurance" or "insurance

contract." The United States Supreme
Court, however, has explained that for an
arrangement to constitute insurance for
federal income tax purposes, both risk
shifting and risk distribution must be pres-
ent. Helvering v. Le Gierse, 312 U.S. 531,
539 (1941).

The risk transferred must be risk of
economic loss. Allied Fidelity Corp. v.
Commissioner, 572 F.2d 1190, 1193 (7th
Cir. 1978), cert. denied, 439 U.S. 835
(1978). The risk must contemplate the for-
tuitous occurrence of a stated contin-
gency, Commissioner v. Treganowan, 183
F.2d 288, 290-91 (2d Cir. 1950), cert.
denied, 340 U.S. 853 (1950), and must not
be merely an investment or business risk.
Le Gierse, 312 U.S. at 542; Rev. Rul.
89-96, 1989-2 C.B. 114.

Risk shifting occurs if a person facing
the possibility of an economic loss trans-
fers some or all of the financial conse-
quences of the potential loss to the insurer,
such that a loss by the insured does not
affect the insured because the loss is offset
by a payment from the insurer. Clougherty
Packing Co. v. Commissioner, 811 F.2d
1297, 1300 (9th Cir. 1987). Risk distribu-
tion incorporates the statistical phenome-
non known as the law of large numbers.
Id. Distributing risk allows the insurer to
reduce the possibility that a single costly
claim will exceed the amount taken in as
premiums and set aside for the payment of
such a claim. Id. By assuming numerous,
relatively small, independent risks that oc-
cur randomly over time, the insurer
smoothes out losses to match more closely
its receipt of premiums. Id.

Courts have recognized that risk distri-
bution necessarily entails a pooling of pre-
miums, so that a potential insured is not in
significant part paying for its own risks.
Ocean Drilling & Exploration Co. v.
United States, 988 F.2d 1135, 1153 (Fed.
Cir. 1993) ("Risk distribution involves
spreading the risk of loss among policy-
holders."); see also Beech Aircraft Corp.
v. United States, 797 F.2d 920, 922 (10th
Cir. 1986) ("[R]isk distributing' means
that the party assuming the risk distributes
his potential liability, in part, among oth-
ers."); Crawford Fitting Co. v. United
States, 606 F.Supp. 136, 147 (N.D. Ohio
1985) ("[T]he court finds . .. that various
nonaffiliated persons or entities facing
risks similar but independent of those

faced by plaintiff were named insureds
under the policy, enabling the distribution
of risk thereunder."); AMERCO and Sub-
sidiaries v. Commissioner, 96 T.C. 18, 41
(1991), aff'd, 979 F.2d 162 (9th Cir. 1992)
("The concept of risk-distributing empha-
sizes the pooling aspect of insurance: that
it is the nature of an insurance contract to
be part of a larger collection of coverages,
combined to distribute risk between in-
sureds."). Accordingly, Rev. Rul. 2005-
40, 2005-2 C.B. 4, concludes that an ar-
rangement under which an issuer
contracts to indemnify the risks of a single
policyholder does not qualify as insurance
for federal income tax purposes because
those risks are not, in turn, distributed
among other insureds or policyholders.
Similarly, Rev. Rul. 2002-89, 2002-C.B.
984, concludes that the requirements of
risk shifting and risk distribution are not
satisfied when a wholly owned subsid-
iary's agreement to indemnify the risks of
its parent represents 90% of the subsid-
iary's business.

In Rev. Rul. 92-93, 1992-2 C.B. 45,
modified by Rev. Rul. 2001-31, 2001-1
C.B. 1348, a parent corporation carried
insurance on its employees' lives under a
group-term life insurance contract pur-
chased from its wholly owned insurance
subsidiary. In concluding that the value of
insurance was includible in the employees'
gross income, the revenue ruling stated:

Although [parent corporation] purchased the
group-term life insurance contract covering its
employees from its wholly owned insurance
subsidiary, S1, this fact does not cause the
arrangement to be "self-insurance" because the
economic risk of loss being insured shifted to
S1 is not a risk of [parent corporation]. . . . This
insurance on the employees' lives is an eco-
nomic benefit to the employees since it relieves
them of the expense of providing life insurance
for themselves.

Revenue Ruling 92-93 states that
"[t]he holdings of this revenue ruling also
apply to accident and health insurance."
See also Rev. Rul. 92-94, 1992-2 C.B. 144.

## ANALYSIS

To determine the nature of an arrange-
ment for federal income tax purposes, it is
necessary to consider all the facts and
circumstances of a particular case, includ-
ing the risks being shifted and distributed.
The proper characterization of an arrange-

ment may determine whether the issuer
qualifies as an insurance company for fed-
eral income tax purposes and whether
amounts paid under such arrangement
may be deductible.

In the situation above, the risks being
indemnified are the covered retirees' and
their dependents' risks of incurring med-
ical expenses during retirement due to ac-
cident and health contingencies. Although
the VEBA entered into Contract A, the
covered retirees' health insurance is an
economic benefit to the retirees since it
relieves them of the expense of purchas-
ing health insurance for themselves and
their dependents. Furthermore, at the time
that Contract A goes into effect, neither X
nor the VEBA have any commitment or
obligation to offer health benefits to the
covered retirees and their dependants, and
both X and the VEBA may cancel any
provided coverage at any time. Conse-
quently, the risks that are shifted in the
situation above are those of the covered
retirees and their dependents and not risks
of the VEBA or X. These risks are rein-
sured by S1 under Contract B. The risks
under Contract B are distributed among
this large group of covered individuals,
and the analyses of Rev. Rul. 2002-89 and
Rev. Rul. 2005-40 are inapplicable. Ac-
cordingly, the risks under Contract B are
insurance risks, and Contract B constitutes
insurance for federal income tax purposes.

HOLDING

In the situation above, S1 is regulated
as an insurance company under state law.
Contract B constitutes insurance. Because
Contract B is more than half of the busi-
ness done by S1 during this year, S1 qual-
ifies as an insurance company under Sub-
chapter L for this taxable year.

This revenue ruling does not address
whether the health benefits are provided
through a self-insured medical reimburse-
ment plan for purposes of the nondiscrim-
ination rules under § 105(h) (see Treas.
Reg. § 1.105-11(b)(1)(iii)).

This ruling also does not address the
deductibility of a contribution by X to the
VEBA under §§ 419 and 419A; whether S1,
or any account held by IC or S1, with re-
spect to Contract A or Contract B is a wel-
fare benefit fund (as defined in § 419(e)); or
the application of § 419A(g). Furthermore,
because the arrangement described in this

revenue ruling provides welfare benefits
through a VEBA, this ruling does not ad-
dress certain issues that would arise if an
employer provided welfare benefits other
than through a VEBA, including whether an
entity (or any account held by any person)
that is part of such an arrangement is a
welfare benefit fund or, if not, whether
the arrangement is a plan deferring the
receipt of compensation for purposes of
§§ 404(a)(5) and 404(b).

## EFFECT ON OTHER REVENUE RULINGS

Rev. Rul. 2002-89 and Rev. Rul.
2005-40 are distinguished.

## DRAFTING INFORMATION

The principal author of this revenue
ruling is Sheryl B. Flum of the Office of
Associate Chief Counsel (Financial Insti-
tutions & Products). For further informa-
tion regarding this revenue ruling, contact
Ms. Flum at (202) 317-6995 (not a toll-
free number).

## Section 807 .- Rules for Certain Reserves

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

### Section 846 .- Discounted Unpaid Losses Defined

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

Section 1274 .-
Determination of Issue
Price in the Case of
Certain Debt Instruments
Issued for Property

(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)

Rev. Rul. 2014-16

This revenue ruling provides various
prescribed rates for federal income tax

purposes for June 2014 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month for
purposes of section 1274(d) of the Internal
Revenue Code. Table 2 contains the short-
term, mid-term, and long-term adjusted
applicable federal rates (adjusted AFR)
for the current month for purposes of sec-
tion 1288(b). Table 3 sets forth the ad-
justed federal long-term rate and the long-
term tax-exempt rate described in section
382(f). Table 4 contains the appropriate
percentages for determining the low-
income housing credit described in sec-
tion 42(b)(1) for buildings placed in ser-
vice during the current month. However,
under section 42(b)(2), the applicable per-
centage for non-federally subsidized new
buildings placed in service after July 30,
2008, with respect to housing credit dollar
amount allocations made before January
1, 2014, shall not be less than 9%. Finally,
Table 5 contains the federal rate for de-
termining the present value of an annuity,
an interest for life or for a term of years, or
a remainder or a reversionary interest for
purposes of section 7520.

REV. RUL. 2014-16 TABLE 1 Applicable Federal Rates (AFR) for June 2014 Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term

AFR

.32%

110% AFR

.35%

120% AFR

.38%

130% AFR

.42%

AFR

Mid-term

1.91%

1.90%

1.89%

110% AFR

2.10%

2.09%

2.08%

120% AFR

2.29%

2.28%

2.27%

130% AFR

2.49%

2.47%

2.46%

150% AFR

2.87%

2.85%

2.84%

2.83%

175% AFR

3.36%

3.33%

3.32%

3.31%

AFR

Long-term

3.14%

3.12%

3.11%

3.10%

110% AFR

3.46%

3.43%

3.42%

3.41%

120% AFR

3.77%

3.74%

3.72%

3.71%

130% AFR

4.10%

4.06%

4.04%

4.03%

REV. RUL. 2014-16 TABLE 2 Adjusted AFR for June 2014

Period for Compounding

Annual

Semiannual

Quarterly

Monthly

Short-term adjusted AFR

.32%

Mid-term adjusted AFR

1.37%

Long-term adjusted AFR

3.14%

3.12%

3.11%

3.10%

REV. RUL. 2014-16 TABLE 3
Rates Under Section 382 for June 2014

Adjusted federal long-term rate for the current month

Long-term tax-exempt rate for ownership changes during the current month (the highest
of the adjusted federal long-term rates for the current month and the prior two months.)

3.14%

3.32%

REV. RUL. 2014-16 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for April 2014

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2014, shall not be less than
9%.

Appropriate percentage for the 70% present value low-income housing credit

7.58%

Appropriate percentage for the 30% present value low-income housing credit

3.25%

# REV. RUL. 2014-16 TABLE 5 Rate Under Section 7520 for June 2014

Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest

2.2%

## Section 1288 .- Treatment of Original Issue Discount on Tax-Exempt Obligations

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 7520 .- Valuation Tables

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

## Section 7872 .- Treatment of Loans With Below- Market Interest Rates

The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2014. See Rev. Rul. 2014-16, page 1097.

# Part III. Administrative, Procedural, and Miscellaneous

Mid-Year Amendments to
Safe Harbor Plans Pursuant
to Notice 2014-19 with
Respect to the Windsor
Decision

Notice 2014-37

## I. PURPOSE

This notice provides guidance on an
amendment to reflect the outcome of
United States v. Windsor, 570 U.S.
,
133 S.Ct. 2675 (2013), that is adopted
after the beginning of a plan year and is
effective during a plan year ("mid-year
amendment") to a plan described in
§ 401(k)(12) or (13) (“§ 401(k) safe har-
bor plan") or § 401(m)(11) or (12)
("§ 401(m) safe harbor plan") of the In-
ternal Revenue Code pursuant to Q&A-8
of Notice 2014-19, 2014-17 I.R.B. 979
(April 21, 2014).

## II. BACKGROUND

Notice 2014-19 provides guidance on
the application (including the retroactive
application) of the Windsor decision and
the holdings of Rev. Rul. 2013-17,
2013-38 I.R.B. 201 (Sept. 16, 2013), to
retirement plans qualified under § 401(a).

Q&A-8 of Notice 2014-19 provides:
Q-8. What is the deadline to adopt a
plan amendment pursuant to this notice?

A-8. The deadline to adopt a plan
amendment pursuant to this notice is the
later of (i) the otherwise applicable dead-
line under section 5.05 of Rev. Proc.
2007-44, or its successor, or (ii) Decem-
ber 31, 2014. Moreover, in the case of a
governmental plan, any amendment made
pursuant to this notice need not be ad-

opted before the close of the first regular
legislative session of the legislative body
with the authority to amend the plan that
ends after December 31, 2014.

Under § 1.401(k)-3(e)(1) of the Trea-
sury Regulations, a § 401(k) safe harbor
plan must be adopted before the beginning
of the plan year and be maintained
throughout a full 12-month plan year, ex-
cept as otherwise provided in § 1.401(k)-
3(g) (relating to the reduction or suspen-
sion of safe harbor contributions) or in
guidance of general applicability pub-
lished in the Internal Revenue Bulletin.
Under § 1.401(m)-3(f)(1), similar rules
apply to § 401(m) safe harbor plans, in-
cluding § 403(b) plans. The IRS has been
asked whether a § 401(k) or (m) safe
harbor plan may adopt a mid-year amend-
ment pursuant to Q&A-8 of Notice
2014-19.

## III. QUESTION AND ANSWER

May a sponsor of a § 401(k) or (m) safe
harbor plan adopt a mid-year amendment
pursuant to Q&A-8 of Notice 2014-19?

Yes. A plan will not fail to satisfy the
requirements to be a § 401(k) or (m) safe
harbor plan merely because the plan spon-
sor adopts a mid-year amendment pursu-
ant to Q&A-8 of Notice 2014-19.

## IV. EFFECT ON OTHER DOCUMENTS

Notice 2014-19 is amplified by pro-
viding further guidance with respect to
safe harbor plan mid-year amendments.

## V. DRAFTING INFORMATION

The principal authors of this notice are
Angelique Carrington of the Employee
Plans, Tax Exempt and Government En-

tities Division, and Jeremy Lamb of the
Office of Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities). For further information regarding
this notice, contact Ms. Carrington at
RetirementPlanQuestions@irs.gov or Mr.
Lamb at (202) 317-6700 (not a toll-free
number).

# Per Capita Payments from Proceeds of Settlements of Indian Tribal Trust Cases

## Notice 2014-38

### BACKGROUND

Notice 2013-1, 2013-3 IRB 281, pro-
vides guidance on the federal tax treat-
ment of per capita payments that members
of Indian tribes receive from proceeds of
certain settlements of tribal trust cases be-
tween the United States and those Indian
tribes. Additional tribes have settled tribal
trust cases against the United States since
publication of Notice 2013-1. This notice
provides an updated Appendix that re-
flects the additional settlement agree-
ments.

## EFFECT ON OTHER DOCUMENTS

Notice 2013-1 Appendix is modified
and superseded.

## FURTHER INFORMATION

For further information regarding this
notice, please contact Telly Meier at
phone number (202) 317-8494 (not a toll-
free number).

# Appendix Tribes That Have Entered into Settlement Agreements of Tribal Trust Cases

1\.
Assiniboine and Sioux Tribes of the Fort Peck Reservation

2\.
Bad River Band of Lake Superior Chippewa Indians

3\.
Blackfeet Tribe of the Blackfeet Indian Reservation

4\.
Bois Forte Band of Chippewa

5\.
Cachil Dehe Band of Wintun Indians of the Colusa Rancheria

6\.
Chippewa Cree Tribe of the Rocky Boy's Reservation

7\.
Coeur d'Alene Tribe

8\.
Confederated Salish and Kootenai Tribes

9\.
Confederated Tribes of Siletz Indians

10\.
Confederated Tribes of the Colville Reservation

11\.
Confederated Tribes of the Goshute Reservation

12\.
Crow Creek Sioux Tribe

13\.
Eastern Shawnee Tribe of Oklahoma

14\.
Hualapai Indian Tribe

15\.
Iowa Tribe of Kansas and Nebraska

16\.
Kaibab Band of Paiute Indians of Arizona

17\.
Kickapoo Tribe of Kansas

18\.
Lac Courte Oreilles Band of Lake Superior Chippewa Indians

19\.
Lac du Flambeau Band of Lake Superior Chippewa Indians

20\.
Leech Lake Band of Ojibwe

21\.
Lower Brule Sioux Tribe

22\.
Makah Indian Tribe of the Makah Reservation

23\.
Mescalero Apache Tribe

24\.
Minnesota Chippewa Tribe

25\.
Nez Perce Tribe

26\.
Nooksack Indian Tribe

27\.
Northern Cheyenne Tribe of Indians

28\.
Omaha Tribe o Nebraska

29\.
Passamaquoddy Tribe of Maine

30\.
Pawnee Nation

31\.
Prairie Band of Potawatomi Nation

32\.
Pueblo of Zia

33\.
Quechan Tribe of the Fort Yuma Reservation

34\.
Red Cliff Band of Lake Superior Chippewa Indians

35\.
Rincon Luiseño Band of Indians

36\.
Rosebud Sioux Tribe

37\.
Round Valley Indian Tribes

38\.
Salt River Pima-Maricopa Indian Community

39\.
Santee Sioux Tribe of Nebraska

40\.
Sault Ste. Marie Tribe

41\.
Shoshone-Bannock Tribes of the Fort Hall Reservation

42\.
Soboba Band of Luiseno Indians

43\.
Spirit Lake Dakotah Nation

44\.
Spokane Tribe of Indians

45\.
Standing Rock Sioux Tribe

46\.
Stillaguamish Tribe of Indians

47\.
Summit Lake Paiute Tribe

48\.
Swinomish Indian Tribal Community

49\.
Te-Moak Tribe of Western Shoshone Indians

50\.
Tohono O'odham Nation

51\.
Tulalip Tribes

52\.
Tule River Indian Tribe

53\.
Ute Indian Tribe of the Uintah and Ouray Reservation

54\.
Ute Mountain Ute Tribe

55\.
Winnebago Tribe of Nebraska

56\.
Qawalangin Tribe of Unalaska

57\.
Tlingit & Haida Tribes of Alaska

58\.
Northwestern Band of Shoshone Indians

59\.
Hoopa Valley Tribe

60\.
Ak-Chin Indian Community

61\.
Oglala Sioux Tribe

62\.
Yoruk Tribe

63\.
Cheyenne River Sioux Tribe

64\.
Paiute-Shoshone Indians of the Bishop Community of the Bishop Colony

65\.
Seminole Nation of Oklahoma

66\.
Otoe-Missouria Tribe of Oklahoma

67\.
Samish Indian Nation

68\.
Tonkawa Tribe of Indians of Oklahoma

69\.
Yakama Nation

70\.
Miami Tribe of Oklahoma

71\.
Shoshone Indian Tribe of the Wind River Reservation

72\.
Pueblo of Laguna

# 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
effect:

Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).

Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.

Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.

Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A

and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).

Obsoleted describes 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.

Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.

Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-

stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.

Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.

Suspended is 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 following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.

A-Individual.

Acq .- Acquiescence.

B-Individual.

BE-Beneficiary.

F.R .- Federal Register.

FUTA-Federal Unemployment Tax Act.

FX-Foreign corporation.

G.C.M .- Chief Counsel's Memorandum.

GE-Grantee.

GP-General Partner.

GR-Grantor.

COOP-Cooperative.

IC-Insurance Company.

Ct.D .- Court Decision.

I.R.B .- Internal Revenue Bulletin.

CY-County.

LE-Lessee.

TT-Trustee.

D Decedent.

LP-Limited Partner.

LR-Lessor.

X-Corporation.

DE-Donee.

M-Minor.

Nonacq .- Nonacquiescence.

O Organization.

P-Parent Corporation.

PHC-Personal Holding Company.

PO Possession of the U.S.

PR-Partner.

PRS-Partnership.

PTE-Prohibited Transaction Exemption.
Pub. L .- Public Law.

REIT-Real Estate Investment Trust.

Rev. Proc .- Revenue Procedure.

Rev. Rul .- Revenue Ruling.

S-Subsidiary.

S.P.R .- Statement of Procedural Rules.

Stat .- Statutes at Large.

BK-Bank.

B.T.A .- Board of Tax Appeals.

C-Individual.

C.B .- Cumulative Bulletin.

CFR-Code of Federal Regulations.

CI-City.

T.I.R .- Technical Information Release.

TP-Taxpayer.
TR-Trust.

U.S.C .- United States Code.

DC-Dummy Corporation.

Del. Order-Delegation Order.

DISC-Domestic International Sales Corporation.

DR-Donor.

E-Estate.

EE-Employee.

E.O .- Executive Order.

ER-Employer.

ERISA-Employee Retirement Income Security Act.
EX-Executor.

F-Fiduciary.

FC-Foreign Country.

FICA-Federal Insurance Contributions Act.

FISC-Foreign International Sales Company.

FPH-Foreign Personal Holding Company.

T-Target Corporation.

T.C .- Tax Court.

T.D .- Treasury Decision.

TFE-Transferee.

TFR-Transferor.

Y-Corporation.

Z-Corporation.

## Numerical Finding List1

Bulletins 2014-1 through 2014-24

### Announcements

2014-1, 2014-2 I.R.B. 393
2014-2, 2014-4 I.R.B. 448
2014-4, 2014-7 I.R.B. 523
2014-05, 2014-6 I.R.B. 507
2014-06, 2014-6 I.R.B. 508
2014-07, 2014-6 I.R.B. 508
2014-08, 2014-6 I.R.B. 508
2014-09, 2014-6 I.R.B. 508
2014-10, 2014-6 I.R.B. 508
2014-11, 2014-6 I.R.B. 508
2014-12, 2014-6 I.R.B. 509
2014-13, 2014-10 I.R.B. 620
2014-14, 2014-16 I.R.B. 948
2014-15, 2014-16 I.R.B. 973
2014-16, 2014-17 I.R.B. 983
2014-17, 2014-18 I.R.B. 1007
2014-18, 2014-17 I.R.B. 983
2014-19, 2014-17 I.R.B. 984
2014-20, 2014-20 I.R.B. 1027
2014-21, 2014-20 I.R.B. 1030
2014-22, 2014-22 I.R.B. 1071
2014-23, 2014-22 I.R.B. 1072
2014-24, 2014-23 I.R.B. 1086

Notices

2014-1, 2014-2 I.R.B. 270
2014-2, 2014-3 I.R.B. 407
2014-3, 2014-3 I.R.B. 408
2014-4, 2014-2 I.R.B. 274
2014-5, 2014-2 I.R.B. 276
2014-6, 2014-2 I.R.B. 279
2014-7, 2014-4 I.R.B. 445
2014-8, 2014-5 I.R.B. 452
2014-9, 2014-5 I.R.B. 455
2014-10, 2014-9 I.R.B. 605
2014-11, 2014-13 I.R.B. 880
2014-12, 2014-9 I.R.B. 606
2014-13, 2014-10 I.R.B. 616
2014-14, 2014-13 I.R.B. 881
2014-15, 2014-12 I.R.B. 661
2014-16, 2014-14 I.R.B. 920
2014-17, 2014-13 I.R.B. 881
2014-18, 2014-15 I.R.B. 926
2014-19, 2014-17 I.R.B. 979
2014-20, 2014-16 I.R.B. 937
2014-21, 2014-16 I.R.B. 938
2014-22, 2014-16 I.R.B. 940
2014-23, 2014-16 I.R.B. 942
2014-24, 2014-16 I.R.B. 942
2014-25, 2014-17 I.R.B. 981
2014-27, 2014-18 I.R.B. 987
2014-28, 2014-18 I.R.B. 990
2014-29, 2014-18 I.R.B. 991

## Notice-Continued

2014-31, 2014-20 I.R.B. 1006
2014-32, 2014-20 I.R.B. 1006
2014-33, 2014-21 I.R.B. 1033
2014-34, 2014-23 I.R.B. 1069
2014-35, 2014-23 I.R.B. 1072
2014-36, 2014-22 I.R.B. 1058
2014-37, 2014-24 I.R.B. 1100
2014-38, 2014-24 I.R.B. 1100

## Proposed Regulations

REG-15489,0-03 2014-6 I.R.B. 504
REG-15942,0-04 2014-2 I.R.B. 374
REG-14446,8-05 2014-6 I.R.B. 474
REG-16319,5-05 2014-15 I.R.B. 930
REG-11930,5-11 2014-8 I.R.B. 524
REG-14097,4-11 2014-3 I.R.B. 438
REG-12153,4-12 2014-6 I.R.B. 473
REG-12270,6-12 2014-11 I.R.B. 647
REG-13436,1-12 2014-13 I.R.B. 895
REG-13698,4-12 2014-2 I.R.B. 378
REG-11335,0-13 2014-3 I.R.B. 440
REG-13096,7-13 2014-13 I.R.B. 884
REG-13123,9-13 2014-22 I.R.B. 1069
REG-14103,6-13 2014-7 I.R.B. 516
REG-14317,2-13 2014-2 I.R.B. 383
REG-15076,0-13 2014-23 I.R.B. 1078
REG-10864,1-14 2014-15 I.R.B. 928

## Revenue Procedures

2014-1, 2014-1 I.R.B. 1
2014-2, 2014-1 I.R.B. 90
2014-3, 2014-1 I.R.B. 111
2014-4, 2014-1 I.R.B. 125
2014-5, 2014-1 I.R.B. 169
2014-6, 2014-1 I.R.B. 198
2014-7, 2014-1 I.R.B. 238
2014-8, 2014-1 I.R.B. 242
2014-9, 2014-2 I.R.B. 281
2014-10, 2014-2 I.R.B. 293
2014-11, 2014-3 I.R.B. 411
2014-12, 2014-3 I.R.B. 415
2014-13, 2014-3 I.R.B. 419
2014-14, 2014-2 I.R.B. 295
2014-15, 2014-5 I.R.B. 456
2014-16, 2014-9 I.R.B. 606
2014-17, 2014-12 I.R.B. 661
2014-18, 2014-7 I.R.B. 513
2014-19, 2014-10 I.R.B. 619
2014-20, 2014-9 I.R.B. 614
2014-21, 2014-11 I.R.B. 641
2014-22, 2014-11 I.R.B. 646
2014-23, 2014-12 I.R.B. 685
2014-24, 2014-13 I.R.B. 879
2014-25, 2014-15 I.R.B. 927
2014-28, 2014-16 I.R.B. 944
2014-30, 2014-20 I.R.B. 1009
2014-31, 2014-20 I.R.B. 1009

## Revenue Procedures-Continued

2014-32, 2014-23 I.R.B. 1073
2014-33, 2014-22 I.R.B. 1065

### Revenue Rulings

2014-1, 2014-2 I.R.B. 263
2014-2, 2014-2 I.R.B. 255
2014-3, 2014-2 I.R.B. 259
2014-4, 2014-5 I.R.B. 449
2014-6, 2014-7 I.R.B. 510
2014-8, 2014-11 I.R.B. 624
2014-9, 2014-17 I.R.B. 975
2014-10, 2014-14 I.R.B. 906
2014-11, 2014-14 I.R.B. 906
2014-12, 2014-15 I.R.B. 923
2014-13, 2014-19 I.R.B. 1003
2014-15, 2014-24 I.R.B. 1095
2014-16, 2014-24 I.R.B. 1097
2014-17, 2014-24 I.R.B. 1093

### Treasury Decisions

9649, 2014-2 I.R.B. 265
9650, 2014-3 I.R.B. 394
9651, 2014-4 I.R.B. 441
9652, 2014-12 I.R.B. 655
9653, 2014-6 I.R.B. 460
9654, 2014-6 I.R.B. 461
9655, 2014-9 I.R.B. 541
9656, 2014-11 I.R.B. 626
9657, 2014-13 I.R.B. 687
9658, 2014-13 I.R.B. 748
9659, 2014-12 I.R.B. 653
9660, 2014-13 I.R.B. 842
9661, 2014-13 I.R.B. 855
9662, 2014-16 I.R.B. 933
9663, 2014-22 I.R.B. 1038
9664, 2014-22 I.R.B. 1045
9665, 2014-22 I.R.B. 1050

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2013-27 through 2013-52 is in Internal Revenue Bulletin
2013-52, dated December 23, 2013.

Finding List of Current Actions on Previously Published Items1

Notices-Continued:

Revenue Procedures-Continued:

2011-14

2011-49

Bulletins 2014-1 through 2014-24

Modified by

Rev. Proc. 2014-33, 2014-22 I.R.B. 1065

Rev. Proc. 2014-6, 2014-1 I.R.B. 198

Announcements:

2013-1

2012-14

2007-44

Modified by

Notice 2014-22, 2014-16 I.R.B. 940

Rev. Proc. 2014-17, 2014-12 I.R.B. 661

Ann. 2014-4, 2014-7 I.R.B. 523

2013-1

2012-19

2011-49

Modified by

Notice 2014-38, 2014-24 I.R.B. 1100

Rev. Proc. 2014-16, 2014-9 I.R.B. 606

Ann. 2014-4, 2014-7 I.R.B. 523

2013-13

2012-19

Notices:

Obsoleted by

Superseded by

REG-163195-05 2014-15 I.R.B. 930

Rev. Proc. 2014-16, 2014-9 I.R.B. 606

2002-23

Superseded by

2013-17

2012-20

Notice 2014-35, 2014-23 I.R.B. 1072

Amplified by

Modified by

Notice 2014-1, 2014-2 I.R.B. 270

Rev. Proc. 2014-17, 2014-12 I.R.B. 661

2003-37

Obsoleted by

2014-22

2012-20

REG-163195-05 2014-15 I.R.B. 930

Superseded by Notice 2014-38, 2014-24 I.R.B. 1100

Superseded by Rev. Proc. 2014-17, 2014-12 I.R.B. 661

2006-87, 2006-2 C.B. 766

2013-1

Superseded by

Revenue Procedures:

Superseded by

Notice 2014-29, 2014-18 I.R.B. 991

2003-49

Rev. Proc. 2014-1, 2014-1 I.R.B. 1

2006-109

Modified and superseded by

2013-2

Modified by

Rev. Proc. 2014-14, 2014-2 I.R.B. 295

Superseded by

Notice 2014-4, 2014-2 I.R.B. 274

2004-42

Rev. Proc. 2014-2, 2014-1 I.R.B. 90

2007-25, 2007-1 C.B. 760

Obsoleted by

2013-3

Superseded by

REG-163195-05 2014-15 I.R.B. 930

Superseded by

Notice 2014-29, 2014-18 I.R.B. 991

2004-43

Rev. Proc. 2014-3, 2014-1 I.R.B. 111

2007-59

Obsoleted by

2013-4

Obsoleted by

REG-163195-05 2014-15 I.R.B. 930

Superseded by

REG-163195-05 2014-15 I.R.B. 930

2011-4

Rev. Proc. 2014-4, 2014-1 I.R.B. 125

2007-77, 2007-2 C.B. 735

Modified by

2013-5

Superseded by

Rev. Proc. 2014-17, 2014-12 I.R.B. 661

Superseded by

Notice 2014-29, 2014-18 I.R.B. 991

2011-14

Rev. Proc. 2014-5, 2014-1 I.R.B. 169

2008-107, 2008-2 C.B. 1266

Modified by

2013-6

Superseded by

Rev. Proc. 2014-16, 2014-9 I.R.B. 606

Superseded by

Notice 2014-29, 2014-18 I.R.B. 991

2011-14

Rev. Proc. 2014-6, 2014-1 I.R.B. 198

2009-78

Clarified by

2013-7

Superseded by

Rev. Proc. 2014-16, 2014-9 I.R.B. 606

Superseded by

T.D. 9654 2014-6 I.R.B. 461

2011-14

Rev. Proc. 2014-7, 2014-1 I.R.B. 238

2010-27, 2010-1 C.B. 531

Modified by

2013-8

Superseded by

Rev. Proc. 2014-17, 2014-12 I.R.B. 661

Superseded by

Notice 2014-29, 2014-18 I.R.B. 991

2011-44

Rev. Proc. 2014-8, 2014-1 I.R.B. 242

2010-27, 2010-1 C.B. 531

Modified and Superseded by

2013-9

Superseded by

Rev. Proc. 2014-11, 2014-3 I.R.B. 411

Superseded by

Notice 2014-29, 2014-18 I.R.B. 991

Rev. Proc. 2014-9, 2014-2 I.R.B. 281

1A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013-27 through 2013-52 is in Internal Revenue Bulletin 2013-52, dated December 23,
2013.

### Revenue Procedures-Continued:

2013-10
Superseded by
Rev. Proc. 2014-10, 2014-2 I.R.B. 293

2013-22
Modified by
Rev. Proc. 2014-28, 2014-16 I.R.B. 944

2013-24
Obsoleted by
Rev. Proc. 2014-23, 2014-12 I.R.B. 685

2013-27
Obsoleted by
Rev. Proc. 2014-23, 2014-12 I.R.B. 685

2013-28
Obsoleted by
Rev. Proc. 2014-31, 2014-20 I.R.B. 1009

2013-32
Superseded in part by
Rev. Proc. 2014-1, 2014-1 I.R.B. 1, and
Rev. Proc. 2014-3, 2014-1 I.R.B. 111

2014-1
Amplified by
Rev. Proc. 2014-18, 2014-7 I.R.B. 513

2014-1 I.R.B. 111
Amplified by
Rev. Proc. 2014-24, 2014-13 I.R.B. 879

2014-3
Amplified by
Rev. Proc. 2014-18, 2014-7 I.R.B. 513

2014-3 I.R.B 111
Amplified by

Rev. Proc. 2014-24, 2014-13 I.R.B. 879

2014-4
Modified by
Rev. Proc. 2014-19, 2014-10 I.R.B. 619

#### Proposed Regulations:

209054-87
A portion withdrawn by
REG-113350-13 2014-3 I.R.B. 440

Revenue Rulings:

2005-40
Distinguished by
Rev. Rul. 2014-15, 2014-24 I.R.B. 1095

2005-48 (2005-2 CB 259)
Obsoleted by
T.D. 9659 2014-12 I.R.B. 653

2013-17
Amplified by
Notice 2014-19, 2014-17 I.R.B. 979

Revenue Rulings-Continued:

2013-17
Amplified by
Notice 2014-25, 2014-17 I.R.B. 981

2002-89
Distinguished by
Rev. Rul. 2014-15, 2014-24 I.R.B. 1095

Treasury Decision:

9644
Correction by
Ann. 2014-18, 2014-17 I.R.B. 983

9644
Correction by
Ann. 2014-19, 2014-17 I.R.B. 984

# INDEX

## Internal Revenue Bulletins 2014-1 through 2014-24

The abbreviation and number in parenthesis following the index
entry refer to the specific item; numbers in roman and italic type
following the parentheses refer to the Internal Revenue Bulletin in
which the item may be found and the page number on which it
appears.

Key to Abbreviations:

Ann
Announcement

CD
Court Decision

DO
Delegation Order

EO
Executive Order

PL
Public Law

PTE
Prohibited Transaction Exemption

RP
Revenue Procedure

RR
Revenue Ruling

SPR
Statement of Procedural Rules

TC
Tax Convention

TD
Treasury Decision

TDO
Treasury Department Order

## ADMINISTRATIVE

Average area purchase price safe-harbors guidance for 2014 (RP 31)
20, 1009

Consolidated returns; failure to p[roperly include subsidiary (RP 24)
13, 879

Extension of time to file estate tax return to elect portability of a
deceased spousal unused exclusion amount under section
2010(c)(5)(A). (RP 18) 7, 513

Method change procedures for dispositions of tangible deprecia-
ble property (RP 17) 12, 661

Maximum Vehicle Values for which the special valuation rules of
regulations section 1.61-21(d) and (e) may be used (Notice 11)
13, 880

Minimum essential coverage, information reporting (TD 9660)
13, 842

Regulations:

26 CFR 1.6055-1 added. 26 CFR 1.6055-2 added. 26 CFR
1.6081-8 amended. 26 CFR 301.6011-2 amended. 26
CFR 301.6721-1 amended. 26 CFR 1.6011-8 amended.
26 CFR 301.6722-1 amended; minimum essential cover-
age, information reporting (TD 9660) 13, 842

Per Capita Payments from Proceeds of Settlements of Indian
Tribal Trust Cases (Notice 22) 16, 940

Per Capita Payments from Proceeds of Settlements of Indian
Tribal Trust Cases (Notice 38) 24, 1100

Virtual Currency (Notice 21) 16, 938

## EMPLOYEE PLANS

Definition of a substantial risk of forfeiture (TD 9659) 12, 653
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1, 111

Excepted benefits (REG-143172-13) 2, 383

# EMPLOYEE PLANS-Cont.

Final rules to implement the 90-day waiting period limitation
(TD 9656) 11, 626

Letter rulings:

And determination letters:

Areas which will not be issued from Associate Chief
Counsel and Division counsel (TE/GE) (RP 3) 1, 111
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 1, 281

And general information letters; procedures (RP 4) 1, 125

User fees, request for letter rulings (RP 8) 1, 242

Letter rulings and general information letters (RP 4) 1, 125

Letter rulings or determination letters (RP 1) 1, 1

Proposed rules to clarify length of reasonable and bona fide
employment-based orientation period, consistent with the 90-
day waiting period limitation (REG-122706-12) 11, 647

Qualification, determination letters (RP 6) 1, 198

Qualified plans:

Application of the Windsor Decision and Rev. Rul. 2013-17

(Notice 19) 17, 979

Determination Letters (RP 19) 10, 619

Discrimination (Notice 5) 2, 276

Filing Requirements (Notice 35) 23, 1072

Filing Requirements (RP 32) 23, 1073

Mid-Year Amendments (Notice 37) 24, 1100

Opinion letters (Ann 4) 7, 523

Opinion letters (Ann 16) 17, 983

Qualified retirement plans covered compensation, permitted dis-
parity (RR 3) 2, 259

Qualified retirement plans
Rollovers (RR 9) 17, 975

Proposed Regulation:

26 CFR 54.9815-2708, amended; REG-122706-12) 11, 647
Removal of the Qualified Payment Card Agent Program (REG-
163195-05) 15, 930

Request for Information Regarding Provider Non-Discrimination
(REG-108641-14) 15, 928

Rulings and determination letters, user fees (RP 8) 1, 242

Technical advice memorandum or TAM (RP 2) 1, 90

Technical advice procedures (RP 5) 1, 169

Full funding limitations, weighted average interest rates, segment
rates for:

January 2014 (Notice 8) 5, 452

Weighted average interest rates

Segment rates for February 2014 (Notice 13) 10, 616

Segment rates for March 2014 (Notice 16) 14, 920

Segment rates for March 2014 (Notice 27) 18, 987

Segment rates for May 2014 (Notice 34) 23, 1069

# EMPLOYMENT TAX

Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1, 111

Employment tax liability of agents authorized under section 3504
(TD 9649) 2, 265

# EMPLOYMENT TAX-Cont.

Employment tax obligations of a third party that enters into a
service agreement with an employer to take on the employer's
employment tax responsibilities (TD 9662) 16, 933

Letter rulings or determination letters (RP 1) 1, 1

Proposed Regulation:

26 CFR 54.9815-2708, amended; REG-122706-12) 11, 647
Regulations:

26 CFR 31-3504-2, added; employment tax obligations of a
third party that enters into a service agreement with an
employer to take on the employer's employment tax re-
sponsibilities (TD 9662) 16, 933

26 CFR 1.83-3 is revised; definition of a substantial risk of
forfeiture (TD 9659) 12, 653

26 CFR 54,9801-1, thru-6, amended; 26 CFR 54.9802-1,
amended; 26 CFR 54.9815-2708, added; 26 CFR
54.9831-1, amended (TD 9656) 12, 626

Technical Advice Memorandum (TAM) (RP 2) 1, 90
Virtual Currency (Notice 21) 16, 938

# ESTATE TAX

Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1, 111

Extension of time to file estate tax return to elect portability of a
deceased spousal unused exclusion amount under section
2010(c)(5)(A) (RP 18) 7, 513

Letter rulings or determination letters (RP 1) 1, 1

Technical Advice Memorandum (TAM) (RP 2) 1, 90

# EXCISE TAX

Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1, 111

Final rules to implement the 90-day waiting period limitation
(TD 9656) 11, 626

Information reporting by applicable large employers on health
insurance coverage offered under employer-sponsored plans
(TD 9661) 13, 855

Interim guidance regarding supporting organizations (Notice 4)
2, 274

Letter rulings or determination letters (RP 1) 1, 1

Notice for ACA Section 9010 Health Insurance Providers Fee
and expatriate plans (Notice 14) 16, 942

Proposed rules to clarify length of reasonable and bona fide
employment-based orientation period, consistent with the 90-
day waiting period limitation (REG-122706-12) 11, 647
Proposed Regulation:

26 CFR 54.9815-2708, amended; REG-122706-12) 11, 647
Regulations:

301.6056-1, -2, added; Information reporting by applicable
large employers on health insurance coverage offered un-
der employer-sponsored plans (TD 9661) 13, 855

26 CFR 54,9801-1, thru-6, amended; 26 CFR 54.9802-1,
amended; 26 CFR 54.9815-2708, added; 26 CFR
54.9831-1, amended (TD 9656) 12, 626

Technical Advice Memorandum (TAM) (RP 2) 1, 90

# EXEMPT ORGANIZATIONS

Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1, 111

Form 990 Revenue Procedure update to revoke Revenue Proce-
dure 79-6 (RP 22) 11, 646

Interim guidance regarding supporting organizations (Notice 4)
2, 274

Letter rulings:

And determination letters:

Areas which will not be issued from Associate Chief
Counsel and Division counsel (TE/GE) (RP 3) 1, 111
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 1, 281

And general information letters; procedures (RP 4) 1, 125

User fees, request for letter rulings (RP 8) 1, 242
Letter rulings (RP 10) 2, 293; (RP 9) 2, 281

Letter rulings or determination letters (RP 1) 1, 1

Proposed procedures for charitable hospitals to correct and dis-
close failures to meet section 501(r) (Notice 3) 3, 408

Reliance on proposed regulations for tax-exempt hospitals
(Notice 2) 3, 407

Rulings and determination letters, user fees (RP 8) 1, 242

Technical Advice Memorandum (TAM) (RP 2) 1, 90
Technical advice procedures (RP 5) 1, 169

# INCOME TAX

Accounting method change, sales-base royalties and vendor al-
lowances (RP 33) 22, 1065

Acquiring Corporation for Purposes of Section 381 (REG-
131239-13) 22, 1069

Adequate disclosure revenue procedure (RP 15) 5, 456

Advance Pricing and Mutual Agreement Program (Ann 14) 16,
948

Allocation of section 47 credits by a partnership to its partners
(RP 12) 3, 415

Allocation of section 752 recourse liabilities among related par-
ties (REG-136984-12) 2, 378

Amount of the life insurance reserves taken into account under
§ 807 of the Internal Revenue Code for variable contracts (RR 7)
9, 539

Areas in which rulings will not be issued; Associate Chief
Counsel (International) (RP 7) 1, 238

Average area purchase price safe-harbors guidance for 2014 (RP 31)
20, 1009

Basis in assets of tax exempt trusts (REG-154890-03) 6, 504
Bond premium carryforward (TD 9653) 6, 460

Cafeteria plans, FSA reimbursements, and HSA contribution
limits for same-sex spouses (Notice 1) 2, 270

2014 Census Count (Notice 12) 9, 606

Contribution of built-in lost property to a partnership; mandatory
basis adjustments in the event of a substantial built-in loss or
substantial basis reduction; modification of basis allocation
rules (REG-144468-05) 6, 474

Current refunding of Recovery Zone facility bonds (Notice 9) 5,
455

# INCOME TAX-Cont.

Declaratory judgement suits (Ann 5) 6, 507; (Ann 6) 6, 507;
(Ann 7) 6, 508; (Ann 8) 6, 508; (Ann 9) 6, 508; (Ann 10) 6,
508; (Ann 12) 6, 509

Definition of a substantial risk of forfeiture (TD 9659) 12, 653
Definitions applicable to U.S. persons owning interests in passive
foreign investment companies (REG-113350-13) 3, 440

Depreciation, asset class, ethanol plants (RR 17) 24, 1093

Depreciation deduction, limitations on certain automobiles (RP 21)
11, 641

Determination of housing cost eligible exclusion or deduction for
2014 (Notice 29) 18, 991

Determination of ownership in a passive foreign investment
company; annual filing requirements for shareholders of pas-
sive foreign investment companies; filing requirements for
constructive owners in certain foreign corporations (REG-
140974-11) 3, 438; (TD 9650) 3, 394

correction (Ann 22) 22, 1071

Determining stock ownership for purposes of whether an entity is

a surrogate foreign corporation (TD 9654) 6, 461; (REG-
121534-12) 6, 473

Discharge of indebtedness secured by real property (RP 20) 9,
614

Disciplinary actions involving attorneys, certified public ac-
countants, enrolled agents, and enrolled actuaries (Ann 13)
10, 620

Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 20) 20,
1027

Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1, 111

Equity-linked instruments and dividend equivalents (Notice 14)
13, 881

FATCA financial institution registration update (Ann 1) 2, 393
FATCA IGA and registration update (Ann 17) 18, 1001

Final FFI agreement for participating FFI and reporting Model 2
FFI (RP 13) 3, 419

Foreign Earned Income Exclusion (RP 25) 15, 927

Further guidance on FATCA implementation and related with-
holding provisions (Notice 33) 21, 1033

2014- 2015 Guidance Priority List- Solicitation Notice (Notice 18)
15, 926

Guidance regarding reinstatement following auto revocation of
tax-exempt status under section 6033(j) (RP 11) 3, 411

Income tax treatment of per capita payments made from funds
held in trust by the Secretary of the Interior (Notice 17) 13,
881

2015 Inflation adjusted amounts for Health Savings Accounts
(HSAs) (RP 30) 20, 1009

Inflation Adjustment Factors (Notice 36) 22, 1058

Information reporting by foreign financial institutions and with-
holding on payments to foreign financial institutions and other
foreign entities (REG-130967-13) 13, 884

Information reporting by foreign financial institutions and with-
holding on payments to foreign financial institutions and other
foreign entities (TD 9657) 13, 687

# INCOME TAX-Cont.

Interest:

Investment:

Federal short-term, mid-term, and long-term rates for:
January 2014 (RR 1) 2, 263

February 2014 (RR 6) 7, 510

March 2014 (RR 8) 11, 624

April 2014 (RR 12) 15, 923

May 2014 (RR 13) 19, 1003

June 2014 (RR 16) 24, 1097

Intra-group gross receipts (REG-159420-04) 2, 374
Insurance tax, insurance companies, interest rate tables (RR 4) 5,
449

Letter rulings or determination letters (RP 1) 1, 1

Low-Income Housing Credit (Notice 15) 12, 661

Maximum Vehicle Values for which the special valuation rules
of regulations section 1.61-21(d) and (e) may be used (Notice 11)
13, 880

Method change procedures for dispositions of tangible deprecia-
ble property (RP 17) 12, 661

Minimum essential coverage, information reporting (TD 9660)
13, 842

Net investment income tax; TD 9644 Correction (Ann 2014-18)
17, 983

Net investment income tax; TD 9644 Correction (Ann 2014-19)
17, 984

Postponement of deadline for § 165(i) election for losses attrib-
utable to September 2013 major flooding in Colorado (Notice 20)
16, 937

Premium tax credit (TD 9663) 22, 1038

Principal residence, treatment of National Mortgage Settlement
payments (RR 2) 2, 255

Qualified census tracts (RP 14) 2, 295

Real Estate Investment Trust (REG-150760-13) 23, 1078

Refundable Credit For Coverage Under a Qualified Health Plan,
Definition and Rules Relating to Applicable Taxpayer (Notice
23) 16, 942

Regarding disguised sales, generally (REG-119305-11) 8, 524
Removal of the Qualified Payment Card Agent Program (REG-
163195-05) 15, 930

Retiree Health Benefits Provided Through Employer's Wholly-
Owned Subsidiary (RR 15) 24, 1095

26 CFR 1.6045-1T: Returns of information of brokers and barter
exchanges (temporary), correction to TD 9658 (Ann 21) 20,
1030

Revocations, exempt organization (Ann 11) 6, 508
Sales-bases royalties and vendor allowances (TD 9652) 12, 655

2013 Section 45K Inflation Adjustment Factor - Nonconven-
tional Fuel source Credit (Notice 25) 17, 981

Section 67 Limitations on Estates or Trusts (REG-128224-06)
22, 1046

Shared responsibility for employers regarding health coverage
(TD 9655) 9, 541

Shared responsibility payment for not maintaining minimum
essential coverage (REG-141036-13) 7, 516

Standard Industry Fare Level (SIFL) (RR 10) 14, 906

# INCOME TAX-Cont.

Tangible property regulations method change guidance (RP 16)
9, 606

Tax Treatment of Qualified Retirement Plan Payment of Acci-
dent or Health Insurance Premiums (TD 9665) 22, 1050
Technical Advice Memorandum (TAM) (RP 2) 1, 90
Transition relief for the tax credit for employee health insurance
expenses of certain small employers (Notice 6) 2, 279
Transition relief under section 5000A for certain individuals
without minimum essential coverage (Notice 10) 9, 605

Treatment of Income from certain government bonds held by
certain active banks for purposes of the passive foreign invest-
ment company (PFIC) rules (Notice 31) 20, 1006

Treatment of Property Used To Acquire Parent Stock or Secu-
rities in Certain Triangular Reorganizations Involving Foreign
Corporations (Notice 32) 20, 1006

Treatment of U.S. persons that own stock of passive foreign
investment companies through certain organizations and ac-
counts that are tax exempt (Notice 28) 18, 990

Underpayment and overpayments, quarter beginning: April 1,
2014 (RR 11) 14, 906

Virtual Currency (Notice 21) 16, 938

Withholding of tax on certain U.S. source income paid to foreign
persons and revision of information reporting and backup
withholding regulations (REG-134361-12) 13, 895

Withholding of tax on certain U.S. source income paid to foreign
persons and revision of information reporting and backup
withholding regulations (TD 9658) 13, 748

Proposed Regulations:

26 CFR 1.856-10 added; 1.856-3 modified: definition of real
estate investment trust real property (REG-150760-13)
23, 1078

26 CFR 301.6724-1(c)(6), amended; 26 CFR 31.3406(g)-
1(f), 26 CFR 301.6724-1(e)(1)(vi)(H), and 26 CFR
301.6724-1(f)(5)(vii), removed;removal of the qualified
payment ard agent program (REG-163195-05) 15, 930

26 CFR 1.1471-0, amended; 26 CFR 1.1471-1, amended; 26
CFR 1.147-2, amended; 26 CFR 1.1471-3, amended; 26
CFR 1.1471-4, amended; 26 CFR 1.1471-5, amended; 26
CFR 1.1471-6, amended; 26 CFR 1.1472-1, amended; 26
CFR 1.1473-1, amended; 26 CFR 1474-1, amended; 26
CFR 1.1474-6, amended. (Reg-130967-13) 13, 930

26 CFR 1.871-14, amended; 26 CFR 1.1441-1, amended; 26
CFR 1.1441-3, amended; 26 CFR 1.1441-5, amended; 26
CFR 1.441-6, amended; 26 CFR 1.1441.7, amended; 26
CFR 1.1461-1, amended; 26 CFR 1.1461-2, amended; 26
CFR 1.6041-1, amended; 26 CFR 1.6041-4, amended; 26
CFR 1.6042-2, amended; 26 CFR 1.6042-3, amended; 26
CFR 1.6045-1, amended; 26 CFR 1.6049-4, amended; 26
CFR 1.6049-5, amended; 26 CFR 31.3406(g)-1, amend-
ed; 26 CFR 31.3406(h)-2, amended; 26 CFR 301.6402-3,
amended; Withholding of tax on certain U.S. source in-
come paid to foreign persons and revision of information
reporting and backup withholding regulations (REG-
134361-12) 13, 895

# INCOME TAX-Cont.

Regulations:

26 CFR 1.67-4, added; 1.67-4T, removed (TD 9664) 22,
1045

26 CFR 1.83-3 is revised; definition of a substantial risk of
forfeiture (TD 9659) 12, 653

26 CFR 1.263A-0, thru-3, amended; 1.471-3 amended;
sales-base royalties and vendor allowances (TD 9652) 12,
655

26 CFR 1.36B-0 amended (TD 9663) 22, 1022

26 CFR 1.36B-5 amended (TD 9663) 22, 1022

26 CFR 1.6055-1 added. 26 CFR 1.6055-2 added. 26 CFR
1.6081-8 amended. 26 CFR 301.6011-2 amended. 26
CFR 301.6721-1 amended. 26 CFR 1.6011-8 amended.
26 CFR 301.6722-1 amended. (TD 9660) 13, 842

26 CFR 1.72-15, amended, 26 CFR 1.105-4, removed, 26
CFR 1.105-6, removed, 26 CFR 1.106-1, amended, 26
CFR 1.401-1, amended, 26 CFR 1.402(c)-2, amended;
Tax Treatment of Qualified Retirement Plan Payment of
Accident or Health Insurance Premiums (TD 9665) 22,
1050

26 CFR 1.871-14, amended; 26 CFR 1.1441-1, amended; 26
CFR 1.1441-3, amended; 26 CFR 1.1441-5, amended; 26
CFR 1.441-6, amended; 26 CFR 1.1441.7, amended; 26
CFR 1.1461-1, amended; 26 CFR 1.1461-2, amended; 26
CFR 1.6041-1, amended; 26 CFR 1.6041-4, amended; 26
CFR 1.6042-2, amended; 26 CFR 1.6042-3, amended; 26
CFR 1.6045-1, amended; 26 CFR 1.6049-4, amended; 26
CFR 1.6049-5, amended; 26 CFR 31.3406 (g)-1, amend-
ed; 26 CFR 31.3406(h)-2, amended; 26 CFR 301.6402-3,
amended; Withholding of tax on certain U.S. source in-
come paid to foreign persons and revision of information
reporting and backup withholding regulations, correction
to (TD 9658) 20, 1030; 13, 748

# SELF-EMPLOYMENT TAX

Virtual Currency (Notice 21) 16, 938

# SPECIAL ANNOUNCEMENT

Advance Pricing and Mutual Agreement Program (Ann 14) 16,
948

# TAX CONVENTIONS

Kuwait Reciprocal Exemption for income from the international
operation of aircraft (Ann 24) 23, 1086

Official Business
Penalty for Private Use, $300

# INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.

# CUMULATIVE BULLETINS

The contents of the weekly Bulletins were consolidated semiannually into permanent, indexed, Cumulative Bulletins through the
2008-2 edition.

# INTERNAL REVENUE BULLETINS ON CD-ROM

Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD-ROM). The CD-ROM can be
purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders)
or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.

# We Welcome Comments About the Internal Revenue Bulletin

If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
(www.irs.gov) or write to the IRS Bulletin Unit, SE:W:CAR:MP:P:SPA, Washington, DC 20224.

Internal Revenue Bulletin 2014-24 (PDF rendition): IRS Revenue Rulings

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