Internal Revenue Bulletin 2016-14 (PDF rendition): IRS Revenue Rulings

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HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
SPECIAL ANNOUNCEMENT
Notice 2016 –26, page 533.
The Department of Treasury and Internal Revenue Service
invite public comment on recommendations for items that
should be included on the 2016 –2017 Priority Guidance Plan.
INCOME TAX
REG–109822–15, page 535.
These proposed regulations provide guidance on the informa-
tion required to be reported for country-by-country (CbC) re-
porting. The proposed regulations generally require United
States persons (other than individuals) that are the ultimate
parent of a U.S. multinational enterprise (MNE) group earning
annual revenues of $850,000,000 or more to report certain
financial information on a tax jurisdiction-by-tax jurisdiction ba-
sis. The regulations require the U.S. ultimate parent to list the
U.S. MNE group’s business entities indicating each entity’s tax
jurisdiction (if any), country of organization, tax identification
number (if any), and main business activity, as well as CbC
financial information for each tax jurisdiction in which the U.S.
MNE does business. The CbC financial information includes
income, profits, income taxes, stated capital, accumulated
earnings, number of employees, and tangible assets other than
cash.
Rev. Rul. 2016 – 06, page 519.
Interest rates: underpayment and overpayments. The rates for
interest determined under section 6621 of the code for the
calendar quarter beginning April 1, 2016, will be 4 percent for
overpayments (3 percent in the case of a corporation), 4
percent for the underpayments, and 6 percent for large cor-
poration underpayments. The rate of interest paid on the por-
tion of a corporation overpayment exceeding $10,000 will be
1.5 percent.
Rev. Rul. 2016 – 09, page 530.
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 April 2016.
Rev. Proc. 2016 –21, page 533.
Guidance is provided to individuals who fail to meet the eligi-
bility requirements of section 911(d)(1) of the Internal Revenue
Code because adverse conditions in a foreign country preclude
the individual from meeting those requirements. Revenue Pro-
cedure 2016 –21 provides a country for tax year 2015 and the
date that country is subject to the section 911(d)(4) waiver.
EXEMPT ORGANIZATIONS
T.D. 9746, page 515.
This document contains final regulations regarding the distri-
bution requirement for non-functionally integrated Type III sup-
porting organizations. The regulations reflect changes to the
law made by the Pension Protection Act of 2006. The regula-
tions will affect non-functionally integrated Type III supporting
organizations and their supported organizations.
(Continued on the next page)
Finding Lists begin on page ii.
Bulletin No. 2016 –14
April 4, 2016

ADMINISTRATIVE
Announcement 2016 –14, page 535.
Announcement 2016 –14 informs taxpayers and practitioners
that the IRS has revised Form 3115, Application for Change in
Accounting Method, and its instructions. The Form 3115 (Rev.
December 2015) replaces the December 2009 version. The
announcement also provides a transition period and transition
guidance.
Notice 2016 –26, page 533.
The Department of Treasury and Internal Revenue Service
invite public comment on recommendations for items that
should be included on the 2016 –2017 Priority Guidance Plan.

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.
April 4, 2016Bulletin No. 2016 –14

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
T.D. 9746
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Payout Requirements for
Type III Supporting
Organizations That Are Not
Functionally Integrated
AGENCY:Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations and removal
of temporary regulations.
SUMMARY: This document contains fi-
nal regulations regarding the distribution
requirement for non-functionally inte-
grated Type III supporting organizations.
The regulations reflect changes to the law
made by the Pension Protection Act of
2006. The regulations will affect non-
functionally integrated Type III support-
ing organizations and their supported
organizations.
DATES:Effective Date: These regula-
tions are effective on December 21, 2015.
FOR FURTHER INFORMATION
CONTACT: Jonathan Carter at (202) 317-
4394 or Mike Repass at (202) 317-6176
(not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
1. Overview
This document contains amendments
to the Income Tax Regulations (26 CFR
part 1) regarding organizations described
in section 509(a)(3) of the Internal Reve-
nue Code (Code). An organization de-
scribed in section 501(c)(3) is classified as
either a private foundation or a public
charity. To be classified as a public char-
ity, an organization must be described in
section 509(a)(1), (2), or (3). Organiza-
tions described in section 509(a)(3) are
known as “supporting organizations.”
Supporting organizations achieve their
public charity status by supporting one or
more organizations described in section
509(a)(1) or (2), which in this context are
referred to as “supported organizations.”
To be described in section 509(a)(3),
an organization must satisfy (1) an orga-
nizational test, (2) an operational test, (3)
a relationship test, and (4) a disqualified
person control test. The organizational
and operational tests require that a sup-
porting organization be organized and at
all times thereafter operated exclusively
for the benefit of, to perform the functions
of, or to carry out the purposes of one or
more supported organizations. The rela-
tionship test requires a supporting organi-
zation to establish one of three types of
relationships with one or more supported
organizations. Finally, the disqualified per-
son control test requires that a supporting
organization not be controlled directly or
indirectly by certain disqualified persons.
Each of the described tests is a neces-
sary requirement for an organization to
establish that it qualifies as a supporting
organization. These final regulations,
however, focus primarily on the relation-
ship test for supporting organizations
that are “operated in connection with”
their supporting organization(s), other-
wise known as “Type III” supporting or-
ganizations. Specifically, the final regula-
tions reflect statutory changes enacted by
the Pension Protection Act of 2006, P.L.
109–280 (120 Stat. 780 (2006) (PPA)).
Section 1241(d)(1) of the PPA directed
the Secretary of the Treasury to promul-
gate regulations under section 509 that
establish a new distribution requirement
for Type III supporting organizations that
are not “functionally integrated” to ensure
that a “significant amount” is paid to sup-
ported organizations. For this purpose, the
term “functionally integrated” means a
Type III supporting organization that is
not required under Treasury regulations to
make payments to supported organiza-
tions because the supporting organization
engages in activities that relate to per-
forming the functions of, or carrying out
the purposes of, its supported organiza-
tion(s). These final regulations address the
amount that a Type III supporting organi-
zation that is not functionally integrated (a
non-functionally integrated (NFI) Type III
supporting organization) must annually
distribute to its supported organization(s).
2. Prior Rulemaking
On August 2, 2007, the Treasury Depart-
ment and the IRS published in theFederal
Register(72 FR 42335) an advance notice
of proposed rulemaking (ANPRM) (REG–
155929–06) in response to the PPA. The
ANPRM described proposed rules to imple-
ment the changes made by the PPA to the
Type III supporting organization require-
ments and solicited comments regarding
those proposed rules.
On September 24, 2009, the Treasury
Department and the IRS published in the
Federal Register(74 FR 48672) a notice
of proposed rulemaking (the 2009 NPRM)
(REG–155929–06). The 2009 NPRM
contained proposed regulations (the 2009
proposed regulations) setting forth the re-
quirements to qualify as a Type III sup-
porting organization under the PPA.
On December 28, 2012, the Treasury
Department and the IRS published in the
Federal Register(77 FR 76382) a Trea-
sury decision (TD 9605) containing final
and temporary regulations (the 2012 TD)
regarding the requirements to qualify as a
Type III supporting organization. Based
on the comments received, the 2012 TD
made certain changes to the rules pro-
posed in the 2009 NPRM, included in the
temporary regulations significant changes
to the distribution requirement, and re-
served certain topics for further consider-
ation. The 2012 TD was effective and
applicable on December 28, 2012. The
applicability of the temporary regulations
expires on or before December 21, 2015.
On December 28, 2012, the Treasury De-
partment and the IRS also published in the
Federal Register(77 FR 76426) a notice
of proposed rulemaking (the 2012 NPRM)
(REG–155929–06) that incorporated the
text of the temporary regulations in the
2012 TD by cross-reference. The IRS re-
ceived five comments on the 2012 NPRM.
The comments were considered in devel-
Bulletin No. 2016 –14April 4, 2016
515

oping these final regulations and are avail-
able for public inspection atwww.regula-
tions.govor upon request. No public
hearing was requested.
Under the 2012 TD, an NFI Type III
supporting organization must annually
distribute to or for the use of one or more
supported organizations an amount equal-
ing or exceeding the supporting organiza-
tion’s “distributable amount” for the tax-
able year. See § 1.509(a)–4(i)(5)(ii). The
temporary regulations contained in the
2012 TD defined an NFI Type III support-
ing organization’s “distributable amount”
as equal to the greater of (1) 85 percent of
the supportingorganization’s adjusted net
income or (2) its “minimum asset amount,”
in each case for the immediately preceding
taxable year. The temporary regulations de-
fined “minimum asset amount” as 3.5 per-
cent of the excess of the aggregate fair mar-
ket value of the supporting organization’s
non-exempt-use assets over the acquisition
indebtedness with respect to such nonex-
empt use assets. Additionally, the temporary
regulations provided that the determination
of the aggregate fair market value of an NFI
Type III supporting organization’s non-
exempt-use assets would be made using the
valuation methods generally applicable to pri-
vate foundations under § 53.4942(a)–2(c). The
temporary regulations also provided that,
consistent with the private foundation
rules, the “non-exempt use” assets of a
supporting organization do not include
certain investment assets described in
§ 53.4942(a)–2(c)(2) or assets used (or
held for use) to carry out the exempt pur-
poses of the supported organization(s) (as
determined by applying the principles de-
scribed in § 53.4942(a)–2(c)(3)).
After consideration of all the com-
ments received in response to the 2012
NPRM, this Treasury decision adopts the
2012 NPRM without change, except to (1)
conform the provision regarding the val-
uation of non-exempt-use assets to the
section 4942 regulation provision that it
cross-references (§ 53.4942(a)–2(c)(2)),
and (2) replace references in § 1.509(a)–4
to the temporary regulations with refer-
ences to these final regulations. Thus,
other than the change conforming the pro-
vision in the final regulations regarding
the valuation of non-exempt-use assets to
the provision in the section 4942 regula-
tions, these final regulations are the same
as the temporary regulations that have
been applicable to Type III supporting
organizations since December 28, 2012.
Additionally, this Treasury decision re-
moves the temporary regulations.
The Treasury Department and the IRS
intend to publish a notice of proposed
rulemaking for Type III supporting orga-
nizations in the near future. Among other
proposals, the new proposed regulations
would make one change to these final
regulations. Specifically, the new pro-
posed regulations will propose removal of
the provision in these final regulations that
reduces the distributable amount by the
amount of taxes subtitle A of the Code
imposes on asupporting organization dur-
ing the immediately preceding taxable year.
In addition, the new proposed regulations
will propose specific rules regarding the re-
quirements for Type III supporting organi-
zations that support governmental supported
organizations to be treated as functionally
integrated Type III supporting organiza-
tions. In addition, the new proposed regula-
tions would provide transition relief beyond
the period provided in Notice 2014–4,
2014–2 IRB 274. Supporting organizations
may continue to rely on the transitional rule
described in Section 3.01 of Notice 2014–4
until the date that the notice of proposed
rulemaking prescribing the new proposed
regulations under § 1.509(a)–4(i)(4)(iv) is
published in the Federal Register. In the
notice of proposed rulemaking publishing
the new proposed regulations, the Treasury
Department and the IRS will request com-
ments on all proposed changes.
Explanation of Provisions and
Summary of Comments
This section discusses the comments
received in response to the 2012 NPRM.
1.Distributable Amount
The PPA directed the promulgation of
Treasury regulations requiring NFI Type
III supporting organizations to make dis-
tributions of a percentage of either income
or assets to their supported organizations
to ensure that a significant amount is paid
to those supported organizations. Under
the Treasury regulations in effect when
PPA was enacted, certain Type III sup-
porting organizations were required to
distribute “substantially all” of their in-
come to one or more publicly supported
organizations. For this purpose, “substan-
tially all” had the same meaning of 85 per-
cent or more that it had in § 53.4942(b)–1(c)
(defining “substantially all” for purposes of
the income test for private operating foun-
dations).SeeRev. Rul. 76–208, 1976–1
C.B. 161.
The 2009 NPRM had proposed to re-
place the income-based distribution re-
quirement with an asset-based distribution
requirement of 5 percent of the fair market
value of an organization’s non-exempt-
use assets. In response to comments, the
2012 NPRM instead proposed to keep the
historic income-based distribution re-
quirement, and proposed to combine it
with a reduced percentage-of-assets distri-
bution requirement. Therefore, the tempo-
rary and proposed distributable amount
for NFI Type III supporting organizations
was the greater of 85 percent of adjusted
net income or 3.5 percent of the net fair
market value of non-exempt-use assets, in
each case as determined for the immedi-
ately preceding taxable year.
One commenter stated that a distribu-
tion requirement based on 3.5 percent of
assets is sufficient to achieve the goals of
Congress and that the distribution require-
ment based on 85 percent of income
should be removed. The commenter stated
that a distribution requirement based on
income would prevent a supporting orga-
nization from smoothing its returns in
high-earning years with low-earning
years, and could result in organizations
shifting investments away from income-
producing assets toward appreciating as-
sets to avoid erosion of an endowment
even if that investment strategy results in
forgoing higher returns. The commenter
also said that having two tests increases
administrative costs for a supporting or-
ganization by requiring it to make two
calculations rather than one to determine
its distributable amount, thus reducing the
amount distributed for true charitable pur-
poses. Another commenter suggested that
organizations that were not previously iden-
tified as avoiding the prior substantially-all-
of-income distribution requirement should
be exempted from the asset-based distribu-
tion requirement because it potentially
harms entities that are invested primarily in
non-liquid assets.
April 4, 2016Bulletin No. 2016 –14
516

The Treasury Department and the IRS
believe that a distribution requirement
equal to the greater of 85 percent of ad-
justed net income or 3.5 percent of the net
fair market value of an organization’s
non-exempt-use assets strikes an appro-
priate balance. It ensures that NFI Type III
supporting organizations distribute signif-
icant amounts to their supported organiza-
tions, as Congress directed in the PPA.
Further, the 85 percent of income test will
make it more likely that supported orga-
nizations will timely benefit from higher
returns received by their supporting orga-
nizations. Conversely, in years with lower
returns or for organizations that invest in
assets that produce largely appreciation
rather than income, a 3.5-percent of assets
distribution requirement will apply, which
is less than the 5-percent of assets distri-
bution requirement that applies to private
non-operating foundations. With respect
to the suggestion that certain organiza-
tions be permitted to comply only with the
income-based distribution requirement,
the Treasury Department and the IRS be-
lieve it would be inequitable and admin-
istratively difficult to apply one require-
ment to some NFI Type III supporting
organizations but another requirement to
others.
Therefore, the final regulations adopt
the annual distributable amount rule of the
2012 NPRM without changes.
2.Income from Distributions from
Subsidiary
The 2012 NPRM provided that, for
purposes of the calculation of the annual
distributable amount, a supporting organi-
zation’s adjusted net income would be
determined using the principles of section
4942(f) and § 53.4942(a)–2(d). These pro-
visions apply the principles of subtitle A
of the Code.
One commenter requested that the def-
inition of adjusted net income exclude
dividend income resulting from a distribu-
tion of long-term capital gain property to a
supporting organization by a corporate
subsidiary. The commenter noted that
without this exclusion, the receipt of dis-
tributed property could result in a much
higher distribution requirement for that
one year, but without producing any liquid
assets to satisfy the higher distribution
requirement.
The 2012 NPRM provided that ad-
justed net income be determined by ap-
plying the principles that apply in calcu-
lating the adjusted net income of private
operating foundations under sections
4942(d) and 4942(j)(3) and are generally
based on long-standing principles under
subtitle A of the Code. The Treasury De-
partment and the IRS believe that the rules
for calculating adjusted net income should
be applied consistently for all taxpayers
and do not believe that there is a justifi-
cation for the rules to be altered solely for
supporting organizations. Therefore, the
final regulations do not adopt this com-
ment.
3.Real Property Valuations
The 2012NPRM provided that for pur-
poses of determining the distributable
amount for a taxable year, non-exempt-use
assets would be valued using the principles
generally applicable to private foundations
under § 53.4942(a)–2(c). One commenter
suggested allowing the use of state property
tax valuations for purposes of valuing real
property under § 53.4942(a)–2(c).
Section 53.4942(a)–2(c) applies the
principles of regulations under section
2031, which generally apply for estate tax
purposes, to the valuation of real property.
Section 20.2031–1(b) provides that the
value at which property is assessed for
local tax purposes may be considered only
if that value represents the fair market
value as of the valuation date. Section
20.2031–3 further provides that if real
property is leased or otherwise used in a
business, special valuation rules may
apply. The Treasury Department and the
IRS continue to believe that the same
valuation principles that apply to private
foundations should apply to NFI Type
III supporting organizations. Therefore,
the final regulations do not adopt this
comment.
Effective Date
These regulations are effective on De-
cember 21, 2015.
Statement of Availability of IRS
Documents
The IRS Notice 2014–4 cited in this
preamble is published in the Internal Rev-
enue Bulletin and is available from the
Superintendent of Documents, U.S. Gov-
ernment Printing Office, Washington, DC
20402, or by visiting the IRS Web site at
http://www.irs.gov.
Special Analyses
Certain IRS regulations, including this
one, are exempt from the requirements of
Executive Order 12866, as supplemented
and reaffirmed by Executive Order 13563.
Therefore, a regulatory impact assessment
is not required. It has also been deter-
mined that section 553(b) of the Admin-
istrative Procedure Act (5 U.S.C. chapter
5) does not apply to these regulations, and
because these regulations do not impose a
collection of information on small entities,
a Regulatory Flexibility Analysis under
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) is not required. Pursuant to
section 7805(f) of the Code, the temporary
and proposed regulations preceding these
final regulations were submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
their impact on small business, and no
comments were received.
Drafting Information
The principal authors of these regula-
tions are Mike Repass and Jonathan
Carter, Office of Associate Chief Counsel
(Tax-Exempt and Government Entities).
However, other personnel from the Trea-
sury Department and the IRS participated
in their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Bulletin No. 2016 –14April 4, 2016
517

Authority: 26 U.S.C. 7805***
Par. 2. Section 1.509(a)–4 is amended
by:
1. Amending the second sentence of para-
graph(i)(4)(ii)(C) to remove the lan-
guage “§ 1.509(a)–4T(i)(8)(ii)” and add-
ing “paragraph (i)(8)(ii) of this section”
in its place.
2. Amending paragraph (i)(5)(ii)(A)
to remove the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
3. Revising paragraph (i)(5)(ii)(B).
4. Revising paragraph (i)(5)(ii)(C).
5. Amending the last sentence of para-
graph (i)(5)(ii)(D) to remove the lan-
guage “§ 1.509(a)–4T(i)(5)(ii)(B)” and
adding “paragraph (i)(5)(ii)(B) of this
section” in its place.
6. Amending the first sentence ofExam-
ple 1of paragraph (i)(5)(iii)(D) to re-
move the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
7. Amending the first sentence ofExam-
ple 2of paragraph (i)(5)(iii)(D) to re-
move the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
8. Amending the third sentence ofExam-
ple 3of paragraph (i)(5)(iii)(D) to re-
move the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
9. Amending thefourth sentence ofExam-
ple 4of paragraph (i)(5)(iii)(D) to re-
move the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
10. Amendingparagraph (i)(6)(iv) to re-
move the language “§ 1.509(a)–
4T(i)(8)(ii)” andadding “paragraph
(i)(8)(ii) of this section” in its place.
11. Amending paragraph (i)(7)(ii) to re-
move the language “§ 1.509(a)–
4T(i)(5)(ii)(B)” and adding “paragraph
(i)(5)(ii)(B) of this section” in its place.
12. Revising paragraph (i)(8).
13. Revising paragraph (l).
The revisions and additions read as fol-
lows:
§ 1.509(a)– 4 Supporting organizations.
*****
(i)***
(5)***
(ii)***
(B)Distributable amount. Except as
provided in paragraphs (i)(5)(ii)(D) and
(E) of this section, the distributable
amount for a taxable year is an amount
equal to the greater of 85 percent of the
supporting organization’s adjusted net in-
come (as determined by applying the
principles of section 4942(f) and
§ 53.4942(a)–2(d) of this chapter) for the
taxable year immediately preceding the
taxable year of the required distribution
(immediately preceding taxable year) or
its minimum asset amount (as defined in
paragraph (i)(5)(ii)(C) of this section) for
the immediately preceding taxable year,
reduced by theamount of taxes imposed on
the supporting organization under subtitle A
of the Internal Revenue Code during the
immediately preceding taxable year.
(C)Minimum asset amount. For pur-
poses of this paragraph (i)(5), a supporting
organization’s minimum asset amount for
the immediately preceding taxable year is
3.5 percent of the excess of the aggregate
fair market value of all of the supporting
organization’s non-exempt-use assets (de-
termined under paragraph (i)(8) of this
section) in that immediately preceding
taxable year over the acquisition indebt-
edness with respect to such non-exempt-
use assets (determined under section
514(c)(1) without regard to the taxable
year in which the indebtedness was in-
curred), increased by—
(1) Amounts received or accrued dur-
ing the immediately preceding taxable
year as repayments of amounts which
were taken into account by the organiza-
tion to meet the distribution requirement
imposed in this paragraph (i)(5)(ii) for any
taxable year;
(2) Amounts received or accrued dur-
ing the immediately preceding taxable
year from the sale or other disposition of
property to the extent that the acquisition
of such property was taken into account
by the organization to meet the distribu-
tion requirement imposed in this para-
graph (i)(5)(ii) for any taxable year; and
(3) Any amount set aside under para-
graph (i)(6)(v) of this section to the extent
it is determined during the immediately
preceding taxable year that such amount is
not necessary for the purposes for which it
was set aside and such amount was taken
into account by the organization to meet
the distribution requirement imposed in
this paragraph (i)(5)(ii) for any taxable
year.
*****
(8)Valuation of non-exempt-use as-
sets. For purposes of determining its dis-
tributable amount for a taxable year, a
supporting organization determines its
minimum asset amount, as defined in
paragraph (i)(5)(ii)(C) of this section, by
determining the aggregate fair market
value of all of its non-exempt-use assets in
the immediately preceding taxable year.
For these purposes, the determination of
the aggregate fair market value of all non-
exempt-use assets shall be made using the
valuation methods described in
§ 53.4942(a)–2(c) of this chapter. The ag-
gregate fair market value of the support-
ing organization’s non-exempt-use assets
shall not be reduced by any amount that is
set aside under paragraph (i)(6)(v) of this
section. For these purposes, the non-
exempt use assets of the supporting orga-
nization are all assets of the supporting
organization other than—
(i) Assets described in § 53.4942(a)–
2(c)(2)(i) through (iv) of this chapter
(with the term “supporting organization”
being substituted for “foundation” or “pri-
vate foundation” and the date “August 17,
2006” being substituted for “December
31, 1969”); and
(ii) Exempt-use assets, which are assets
that are used (or held for use) directly in
carrying out the exempt purposes of the
supporting organization’s supported orga-
nization(s) (determined by applying the
principles described in § 53.4942(a)–
2(c)(3) of this chapter) by either—
(A) The supporting organization; or
(B) One or more supported organiza-
tions, but only if the supporting organiza-
tion makes the asset available to the sup-
ported organization(s) at no cost (or
nominal rent) to the supported organiza-
tion(s).
*****
(l)Effective/applicability dates. Para-
graphs (a)(6), (f)(5), (i)(1) through
(i)(4)(ii)(B), (i)(4)(ii)(D) through (i)(5)(i),
(i)(5)(ii)(E) through (i)(5)(iii)(C), (i)(6)(i)
through (iii), (i)(6)(v) through (i)(7)(i),
and (i)(9) through (11) of this section are
applicable on December 28, 2012. Para-
graphs (i)(4)(ii)(C), (i)(5)(ii)(A) through
(i)(5)(ii)(D), (i)(5)(iii)(D), (i)(6)(iv),
April 4, 2016Bulletin No. 2016 –14
518

(i)(7)(ii) and (i)(8) of this section are ap-
plicable on December 21, 2015. See para-
graphs (i)(5)(ii)(B), (i)(5)(ii)(C), and
(i)(8) of § 1.509(a)–4T contained in 26
CFR part 1, revised as of April 1, 2015,
for certain rules regarding non-
functionally integrated Type III support-
ing organizations effective before Decem-
ber 21, 2015.
*****
Section 1.509(a)–4T [Removed].
Par. 3. Section 1.509(a)–4T is removed.
John Dalrymple
Deputy Commissioner for
Services and Enforcement.
Approved: December 14, 2015.
Mark J. Mazur
Assistant Secretary of the
Treasury (Tax Policy).
(Filed by the Office of the Federal Register on December 21,
2015, 4:15 p.m., and published in the issue of the Federal
Register for December 23, 2015, 80 F.R. 79684)
Section 6621.—
Determination of Rate of
Interest
26 CFR 301.6621–1: Interest rate.
Rev. Rul. 2016 – 06
Rev. Rul. 2016–06
Section 6621 of the Internal Revenue
Code establishes the interest rates on
overpayments and underpayments of tax.
Under section 6621(a)(1), the overpay-
ment rate is the sum of the federal short-
term rate plus 3 percentage points (2 per-
centage points in the case of a
corporation), except the rate for the por-
tion of a corporate overpayment of tax
exceeding $10,000 for a taxable period is
the sum of the federal short-term rate plus
0.5 of a percentage point. Under section
6621(a)(2), the underpayment rate is the
sum of the federal short-term rate plus 3
percentage points.
Section 6621(c) provides that for pur-
poses of interest payable under section
6601 on any large corporate underpay-
ment, the underpayment rate under section
6621(a)(2) is determined by substituting
“5 percentage points” for “3 percentage
points.”
See section 6621(c) and section
301.6621–3 of the Regulations on Proce-
dure and Administration for the definition
of a large corporate underpayment and for
the rules for determining the applicable
date. Section 6621(c) and section
301.6621–3 are generally effective for pe-
riods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal short-
term rate for the first month in each cal-
endar quarter. Section 6621(b)(2)(A) pro-
vides that the federal short-term rate
determined under section 6621(b)(1) for
any month applies during the first calen-
dar quarter beginning after that month.
Section 6621(b)(2)(B) provides that in de-
termining the addition to tax under section
6654 for failure to pay estimated tax for
any taxable year, the federal short-term
rate that applies during the third month
following the taxable year also applies
during the first 15 days of the 4th month
following the taxable year. Section
6621(b)(3) provides that the federal short-
term rate for any month is the federal
short-term rate determined during that
month by the Secretary in accordance
with section 1274(d), rounded to the near-
est full percent (or, if a multiple of 1/2 of
1 percent, the rate is increased to the next
highest full percent).
Notice 88–59, 1988–1 C.B. 546, an-
nounced that in determining the quarterly
interest rates to be used for overpayments
and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,
pursuant to section 6622, is subject to
daily compounding.
The federal short-term rate determined
in accordance with section 1274(d) during
January 2016 is the rate published in Rev-
enue Ruling 2016–4, 2016–6 IRB 299 to
take effect beginning February 1, 2016.
The federal short-term rate, rounded to the
nearest full percent, based on daily com-
pounding determined during the month of
April 2016 is 1 percent. Accordingly, an
overpayment rate of 4 percent (3 percent
in the case of a corporation) and an un-
derpayment rate of 4 percent are estab-
lished for the calendar quarter beginning
April 1, 2016. The overpayment rate for
the portion of a corporate overpayment
exceeding $10,000 for the calendar quar-
ter beginning April 1, 2016 is 1.5 percent.
The underpayment rate for large corporate
underpayments for the calendar quarter
beginning April 1, 2016, is 6 percent.
These rates apply to amounts bearing in-
terest during that calendar quarter.
Under section 6621(b)(2)(B), the 3 per-
cent rate that applies to estimated tax un-
derpayments for the first calendar quarter
in 2016, as provided in Rev. Rul. 2015–
23, 2015–52 I.R.B., dated Dec. 28, 2015,
also applies to such underpayments for the
first 15 days in April 2016.
Interest factors for daily compound in-
terest for annual rates of 1.5 percent, 3
percent, 4 percent and 6 percent are pub-
lished in Tables 56, 59, 61, and 65 of Rev.
Proc. 95–17, 1995–1 C.B. 610, 613, 615,
and 619.
Annual interest rates to be com-
pounded daily pursuant tosection 6622
that apply for prior periods are set forth
in the tables accompanying this revenue
ruling.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Deborah Colbert-James of the
Office of Associate Chief Counsel (Proce-
dure & Administration). For further infor-
mation regarding this revenue ruling, con-
tact Ms. Colbert-James at (202) 317-3400
(not a toll-free number).
Bulletin No. 2016 –14April 4, 2016
519

TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATEIn 1995–1 C.B.
DAILY RATE TABLE
Before Jul. 1, 19756%Table 2, pg. 557
Jul. 1, 1975—Jan. 31, 19769%Table 4, pg. 559
Feb. 1, 1976—Jan. 31, 19787%Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 19806%Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 198212%Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 198220%Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 198316%Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 198311%Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 198411%Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 198411%Table 75, pg. 629
Jan. 1, 1985—Jun. 30, 198513%Table 31, pg. 585
Jul. 1, 1985—Dec. 31, 198511%Table 27, pg. 581
Jan. 1, 1986—Jun. 30, 198610%Table 25, pg. 579
Jul. 1, 1986—Dec. 31, 19869%Table 23, pg. 577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATETABLEPGRATETABLEPG
Jan. 1, 1987—Mar. 31, 19878%215759%23577
Apr. 1, 1987—Jun. 30, 19878%215759%23577
Jul. 1, 1987—Sep. 30, 19878%215759%23577
Oct. 1, 1987—Dec. 31, 19879%2357710%25579
Jan. 1, 1988—Mar. 31, 198810%7362711%75629
Apr. 1, 1988—Jun. 30, 19889%7162510%73627
Jul. 1, 1988—Sep. 30, 19889%7162510%73627
Oct. 1, 1988—Dec. 31, 198810%7362711%75629
Jan. 1, 1989—Mar. 31, 198910%2557911%27581
Apr. 1, 1989—Jun. 30, 198911%2758112%29583
Jul. 1, 1989—Sep. 30, 198911%2758112%29583
Oct. 1, 1989—Dec. 31, 198910%2557911%27581
Jan. 1, 1990—Mar. 31, 199010%2557911%27581
Apr. 1, 1990—Jun. 30, 199010%2557911%27581
Jul. 1, 1990—Sep. 30, 199010%2557911%27581
Oct. 1, 1990—Dec. 31, 199010%2557911%27581
Jan. 1, 1991—Mar. 31, 199110%2557911%27581
Apr. 1, 1991—Jun. 30, 19919%2357710%25579
Jul. 1, 1991—Sep. 30, 19919%2357710%25579
Oct. 1, 1991—Dec. 31, 19919%2357710%25579
Jan. 1, 1992—Mar. 31, 19928%696239%71625
Apr. 1, 1992—Jun. 30, 19927%676218%69623
April 4, 2016Bulletin No. 2016 –14
520

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATETABLEPGRATETABLEPG
Jul. 1, 1992—Sep. 30, 19927%676218%69623
Oct. 1, 1992—Dec. 31, 19926%656197%67621
Jan. 1, 1993—Mar. 31, 19936%175717%19573
Apr. 1, 1993—Jun. 30, 19936%175717%19573
Jul. 1, 1993—Sep. 30, 19936%175717%19573
Oct. 1, 1993—Dec. 31, 19936%175717%19573
Jan. 1, 1994—Mar. 31, 19946%175717%19573
Apr. 1, 1994—Jun. 30, 19946%175717%19573
Jul. 1, 1994—Sep. 30, 19947%195738%21575
Oct. 1, 1994—Dec. 31, 19948%215759%23577
Jan. 1, 1995—Mar. 31, 19958%215759%23577
Apr. 1, 1995—Jun. 30, 19959%2357710%25579
Jul. 1, 1995—Sep. 30, 19958%215759%23577
Oct. 1, 1995—Dec. 31, 19958%215759%23577
Jan. 1, 1996—Mar. 31, 19968%696239%71625
Apr. 1, 1996—Jun. 30, 19967%676218%69623
Jul. 1, 1996—Sep. 30, 19968%696239%71625
Oct. 1, 1996—Dec. 31, 19968%696239%71625
Jan. 1, 1997—Mar. 31, 19978%215759%23577
Apr. 1, 1997—Jun. 30, 19978%215759%23577
Jul. 1, 1997—Sep. 30, 19978%215759%23577
Oct. 1, 1997—Dec. 31, 19978%215759%23577
Jan. 1, 1998—Mar. 31, 19988%215759%23577
Apr. 1, 1998—Jun. 30, 19987%195738%21575
Jul. 1, 1998—Sep. 30, 19987%195738%21575
Oct. 1, 1998—Dec. 31, 19987%195738%21575
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPAGE
Jan. 1, 1999—Mar. 31, 19997%19573
Apr. 1, 1999—Jun. 30, 19998%21575
Jul. 1, 1999—Sep. 30, 19998%21575
Oct. 1, 1999—Dec. 31, 19998%21575
Jan. 1, 2000—Mar. 31, 20008%69623
Apr. 1, 2000—Jun. 30, 20009%71625
Jul. 1, 2000—Sep. 30, 20009%71625
Oct. 1, 2000—Dec. 31, 20009%71625
Jan. 1, 2001—Mar. 31, 20019%23577
Bulletin No. 2016 –14April 4, 2016
521

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPAGE
Apr. 1, 2001—Jun. 30, 20018%21575
Jul. 1, 2001—Sep. 30, 20017%19573
Oct. 1, 2001—Dec. 31, 20017%19573
Jan. 1, 2002—Mar. 31, 20026%17571
Apr. 1, 2002—Jun. 30, 20026%17571
Jul. 1, 2002—Sep. 30, 20026%17571
Oct. 1, 2002—Dec. 31, 20026%17571
Jan. 1, 2003—Mar. 31, 20035%15569
Apr. 1, 2003—Jun. 30, 20035%15569
Jul. 1, 2003—Sep. 30, 20035%15569
Oct. 1, 2003—Dec. 31, 20034%13567
Jan. 1, 2004—Mar. 31, 20044%61615
Apr. 1, 2004—Jun. 30, 20045%63617
Jul. 1, 2004—Sep. 30, 20044%61615
Oct. 1, 2004—Dec. 31, 20045%63617
Jan. 1, 2005—Mar. 31, 20055%15569
Apr. 1, 2005—Jun. 30, 20056%17571
Jul. 1, 2005—Sep. 30, 20056%17571
Oct. 1, 2005—Dec. 31, 20057%19573
Jan. 1, 2006—Mar. 31, 20067%19573
Apr. 1, 2006—Jun. 30, 20067%19573
Jul. 1, 2006—Sep. 30, 20068%21575
Oct. 1, 2006—Dec. 31, 20068%21575
Jan. 1, 2007—Mar. 31, 20078%21575
Apr. 1, 2007—Jun. 30, 20078%21575
Jul. 1, 2007—Sep. 30, 20078%21575
Oct. 1, 2007—Dec. 31, 20078%21575
Jan. 1, 2008—Mar. 31, 20087%67621
Apr. 1, 2008—Jun. 30, 20086%65619
Jul. 1, 2008—Sep. 30, 20085%63617
Oct. 1, 2008—Dec. 31, 20086%65619
Jan. 1, 2009—Mar. 31, 20095%15569
Apr. 1, 2009—Jun. 30, 20094%13567
Jul. 1, 2009—Sep. 30, 20094%13567
Oct. 1, 2009—Dec. 31, 20094%13567
Jan. 1, 2010—Mar. 31, 20104%13567
Apr. 1, 2010—Jun. 30, 20104%13567
Jul. 1, 2010—Sep. 30, 20104%13567
Oct. 1, 2010—Dec. 31, 20104%13567
Jan. 1, 2011—Mar. 31, 20113%11565
Apr. 1, 2011—Jun. 30, 20114%13567
Jul. 1, 2011—Sep. 30, 20114%13567
April 4, 2016Bulletin No. 2016 –14
522

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPAGE
Oct. 1, 2011—Dec. 31, 20113%11565
Jan. 1, 2012—Mar. 31, 20123%59613
Apr. 1, 2012—Jun. 30, 20123%59613
Jul. 1, 2012—Sep. 30, 20123%59613
Oct. 1, 2012—Dec. 31, 20123%59613
Jan. 1, 2013—Mar. 31, 20133%11565
Apr. 1, 2013—Jun. 30, 20133%11565
Jul. 1, 2013—Sep. 30, 20133%11565
Oct. 1, 2013—Dec. 31, 20133%11565
Jan. 1, 2014—Mar. 31, 20143%11565
Apr. 1, 2014—Jun. 30, 20143%11565
Jul. 1, 2014—Sep. 30, 20143%11565
Oct. 1, 2014—Dec. 31, 20143%11565
Jan. 1, 2015—Mar. 31, 20153%11565
Apr. 1, 2015—Jun. 30, 20153%11565
Jul. 1, 2015—Sep. 30, 20153%11565
Oct. 1, 2015—Dec. 31, 20153%11565
Jan. 1, 2016—Mar. 31, 20163%59613
Apr. 1, 2016—Jun. 30, 20164%61615
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATETABLEPGRATETABLEPG
Jan. 1, 1999—Mar. 31, 19996%175717%19573
Apr. 1, 1999—Jun. 30, 19997%195738%21575
Jul. 1, 1999—Sep. 30, 19997%195738%21575
Oct. 1, 1999—Dec. 31, 19997%195738%21575
Jan. 1, 2000—Mar. 31, 20007%676218%69623
Apr. 1, 2000—Jun. 30, 20008%696239%71625
Jul. 1, 2000—Sep. 30, 20008%696239%71625
Oct. 1, 2000—Dec. 31, 20008%696239%71625
Jan. 1, 2001—Mar. 31, 20018%215759%23577
Apr. 1, 2001—Jun. 30, 20017%195738%21575
Jul. 1, 2001—Sep. 30, 20016%175717%19573
Oct. 1, 2001—Dec. 31, 20016%175717%19573
Jan. 1, 2002—Mar. 31, 20025%155696%17571
Apr. 1, 2002—Jun. 30, 20025%155696%17571
Jul. 1, 2002—Sep. 30, 20025%155696%17571
Bulletin No. 2016 –14April 4, 2016
523

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATETABLEPGRATETABLEPG
Oct. 1, 2002—Dec. 31, 20025%155696%17571
Jan. 1, 2003—Mar. 31, 20034%135675%15569
Apr. 1, 2003—Jun. 30, 20034%135675%15569
Jul. 1, 2003—Sep. 30, 20034%135675%15569
Oct. 1, 2003—Dec. 31, 20033%115654%13567
Jan. 1, 2004—Mar. 31, 20043%596134%61615
Apr. 1, 2004—Jun. 30, 20044%616155%63617
Jul. 1, 2004—Sep. 30, 20043%596134%61615
Oct. 1, 2004—Dec. 31, 20044%616155%63617
Jan. 1, 2005—Mar. 31, 20054%135675%15569
Apr. 1, 2005—Jun. 30, 20055%155696%17571
Jul. 1, 2005—Sep. 30, 20055%155696%17571
Oct. 1, 2005—Dec. 31, 20056%175717%19573
Jan. 1, 2006—Mar. 31, 20066%175717%19573
Apr. 1, 2006—Jun. 30, 20066%175717%19573
Jul. 1, 2006—Sep. 30, 20067%195738%21575
Oct. 1, 2006—Dec. 31, 20067%195738%21575
Jan. 1, 2007—Mar. 31, 20077%195738%21575
Apr. 1, 2007—Jun. 30, 20077%195738%21575
Jul. 1, 2007—Sep. 30, 20077%195738%21575
Oct. 1, 2007—Dec. 31, 20077%195738%21575
Jan. 1, 2008—Mar. 31, 20086%656197%67621
Apr. 1, 2008—Jun. 30, 20085%636176%65619
Jul. 1, 2008—Sep. 30, 20084%616155%63617
Oct. 1, 2008—Dec. 31, 20085%636176%65619
Jan. 1, 2009—Mar. 31, 20094%135675%15569
Apr. 1, 2009—Jun. 30, 20093%115654%13567
Jul. 1, 2009—Sep. 30, 20093%115654%13567
Oct. 1, 2009—Dec. 31, 20093%115654%13567
Jan. 1, 2010—Mar. 31, 20103%115654%13567
Apr. 1, 2010—Jun. 30, 20103%115654%13567
Jul. 1, 2010—Sep. 30, 20103%115654%13567
Oct. 1, 2010—Dec. 31, 20103%115654%13567
Jan. 1, 2011—Mar. 31, 20112%95633%11565
Apr. 1, 2011—Jun. 30, 20113%115654%13567
Jul. 1, 2011—Sep. 30, 20113%115654%13567
Oct. 1, 2011—Dec. 31, 20112%95633%11565
Jan. 1, 2012—Mar. 31, 20122%576113%59613
Apr. 1, 2012—Jun. 30, 20122%576113%59613
Jul. 1, 2012—Sep. 30, 20122%576113%59613
Oct. 1, 2012—Dec. 31, 20122%576113%59613
April 4, 2016Bulletin No. 2016 –14
524

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATETABLEPGRATETABLEPG
Jan. 1, 2013—Mar. 31, 20132%95633%11565
Apr. 1, 2013—Jun. 30, 20132%95633%11565
Jul. 1, 2013—Sep. 30, 20132%95633%11565
Oct. 1, 2013—Dec. 31, 20132%95633%11565
Jan. 1, 2014—Mar. 31, 20142%95633%11565
Apr. 1, 2014—Jun. 30, 20142%95633%11565
Jul. 1, 2014—Sep. 30, 20142%95633%11565
Oct. 1, 2014—Dec. 31, 20142%95633%11565
Jan. 1, 2015—Mar. 31, 20152%95633%11565
Apr. 1, 2015—Jun. 30, 20152%95633%11565
Jul. 1, 2015—Sep. 30, 20152%95633%11565
Oct. 1, 2015—Dec. 31, 20152%95633%11565
Jan. 1, 2016—Mar. 31, 20162%576113%59613
Apr. 1, 2016—Jun. 30, 20163%596134%61615
TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1991—Mar. 31, 199113%31585
Apr. 1, 1991—Jun. 30, 199112%29583
Jul. 1, 1991—Sep. 30, 199112%29583
Oct. 1, 1991—Dec. 31, 199112%29583
Jan. 1, 1992—Mar. 31, 199211%75629
Apr. 1, 1992—Jun. 30, 199210%73627
Jul. 1, 1992—Sep. 30, 199210%73627
Oct. 1, 1992—Dec. 31, 19929%71625
Jan. 1, 1993—Mar. 31, 19939%23577
Apr. 1, 1993—Jun. 30, 19939%23577
Jul. 1, 1993—Sep. 30, 19939%23577
Oct. 1, 1993—Dec. 31, 19939%23577
Jan. 1, 1994—Mar. 31, 19949%23577
Apr. 1, 1994—Jun. 30, 19949%23577
Jul. 1, 1994—Sep. 30, 199410%25579
Oct. 1, 1994—Dec. 31, 199411%27581
Jan. 1, 1995—Mar. 31, 199511%27581
Apr. 1, 1995—Jun. 30, 199512%29583
Jul. 1, 1995—Sep. 30, 199511%27581
Oct. 1, 1995—Dec. 31, 199511%27581
Jan. 1, 1996—Mar. 31, 199611%75629
Bulletin No. 2016 –14April 4, 2016
525

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Apr. 1, 1996—Jun. 30, 199610%73627
Jul. 1, 1996—Sep. 30, 199611%75629
Oct. 1, 1996—Dec. 31, 199611%75629
Jan. 1, 1997—Mar. 31, 199711%27581
Apr. 1, 1997—Jun. 30, 199711%27581
Jul. 1, 1997—Sep. 30, 199711%27581
Oct. 1, 1997—Dec. 31, 199711%27581
Jan. 1, 1998—Mar. 31, 199811%27581
Apr. 1, 1998—Jun. 30, 199810%25579
Jul. 1, 1998—Sep. 30, 199810%25579
Oct. 1, 1998—Dec. 31, 199810%25579
Jan. 1, 1999—Mar. 31, 19999%23577
Apr. 1, 1999—Jun. 30, 199910%25579
Jul. 1, 1999—Sep. 30, 199910%25579
Oct. 1, 1999—Dec. 31, 199910%25579
Jan. 1, 2000—Mar. 31, 200010%73627
Apr. 1, 2000—Jun. 30, 200011%75629
Jul. 1, 2000—Sep. 30, 200011%75629
Oct. 1, 2000—Dec. 31, 200011%75629
Jan. 1, 2001—Mar. 31, 200111%27581
Apr. 1, 2001—Jun. 30, 200110%25579
Jul. 1, 2001—Sep. 30, 20019%23577
Oct. 1, 2001—Dec. 31, 20019%23577
Jan. 1, 2002—Mar. 31, 20028%21575
Apr. 1, 2002—Jun. 30, 20028%21575
Jul. 1, 2002—Sep. 30, 20028%21575
Oct. 1, 2002—Dec. 31, 20028%21575
Jan. 1, 2003—Mar. 31, 20037%19573
Apr. 1, 2003—Jun. 30, 20037%19573
Jul. 1, 2003—Sep. 30, 20037%19573
Oct. 1, 2003—Dec. 31, 20036%17571
Jan. 1, 2004—Mar. 31, 20046%65619
Apr. 1, 2004—Jun. 30, 20047%67621
Jul. 1, 2004—Sep. 30, 20046%65619
Oct. 1, 2004—Dec. 31, 20047%67621
Jan. 1, 2005—Mar. 31, 20057%19573
Apr. 1, 2005—Jun. 30, 20058%21575
Jul. 1, 2005—Sep. 30, 20058%21575
Oct. 1, 2005—Dec. 31, 20059%23577
Jan. 1, 2006—Mar. 31, 20069%23577
Apr. 1, 2006—Jun. 30, 20069%23577
Jul. 1, 2006—Sep. 30, 200610%25579
Oct. 1, 2006—Dec. 31, 200610%25579
Jan. 1, 2007—Mar. 31, 200710%25579
April 4, 2016Bulletin No. 2016 –14
526

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Apr. 1, 2007—Jun. 30, 200710%25579
Jul. 1, 2007—Sep. 30, 200710%25579
Oct. 1, 2007—Dec. 31, 200710%25579
Jan. 1, 2008—Mar. 31, 20089%71625
Apr. 1, 2008—Jun. 30, 20088%69623
Jul. 1, 2008—Sep. 30, 20087%67621
Oct. 1, 2008—Dec. 31, 20088%69623
Jan. 1, 2009—Mar. 31, 20097%19573
Apr. 1, 2009—Jun. 30, 20096%17571
Jul. 1, 2009—Sep. 30, 20096%17571
Oct. 1, 2009—Dec. 31, 20096%17571
Jan. 1, 2010—Mar. 31, 20106%17571
Apr. 1, 2010—Jun. 30, 20106%17571
Jul. 1, 2010—Sep. 30, 20106%17571
Oct. 1, 2010—Dec. 31, 20106%17571
Jan. 1, 2011—Mar. 31, 20115%15569
Apr. 1, 2011—Jun. 30, 20116%17571
Jul. 1, 2011—Sep. 30, 20116%17571
Oct. 1, 2011—Dec. 31, 20115%15569
Jan. 1, 2012—Mar. 31, 20125%63617
Apr. 1, 2012—Jun. 30, 20125%63617
Jul. 1, 2012—Sep. 30, 20125%63617
Oct. 1, 2012—Dec. 31, 20125%63617
Jan. 1, 2013—Mar. 31, 20135%15569
Apr. 1, 2013—Jun. 30, 20135%15569
Jul. 1, 2013—Sep. 30, 20135%15569
Oct. 1, 2013—Dec. 31, 20135%15569
Jan. 1, 2014—Mar. 31, 20145%15569
Apr. 1, 2014—Jun. 30, 20145%15569
Jul. 1, 2014—Sep. 30, 20145%15569
Oct. 1, 2014—Dec. 31, 20145%15569
Jan. 1, 2015—Mar. 31, 20155%15569
Apr. 1, 2015—Jun. 30, 20155%15569
Jul. 1, 2015—Sep. 30, 20155%15569
Oct. 1, 2015—Dec. 31, 20155%15569
Jan. 1, 2016—Mar. 31, 20165%63617
Apr. 1, 2016—Jun. 30, 20166%65619
Bulletin No. 2016 –14April 4, 2016
527

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1995—Mar. 31, 19956.5%18572
Apr. 1, 1995—Jun. 30, 19957.5%20574
Jul. 1, 1995—Sep. 30, 19956.5%18572
Oct. 1, 1995—Dec. 31, 19956.5%18572
Jan. 1, 1996—Mar. 31, 19966.5%66620
Apr. 1, 1996—Jun. 30, 19965.5%64618
Jul. 1, 1996—Sep. 30, 19966.5%66620
Oct. 1, 1996—Dec. 31, 19966.5%66620
Jan. 1, 1997—Mar. 31, 19976.5%18572
Apr. 1, 1997—Jun. 30, 19976.5%18572
Jul. 1, 1997—Sep. 30, 19976.5%18572
Oct. 1, 1997—Dec. 31, 19976.5%18572
Jan. 1, 1998—Mar. 31, 19986.5%18572
Apr. 1, 1998—Jun. 30, 19985.5%16570
Jul. 1. 1998—Sep. 30, 19985.5%16570
Oct. 1, 1998—Dec. 31, 19985.5%16570
Jan. 1, 1999—Mar. 31, 19994.5%14568
Apr. 1, 1999—Jun. 30, 19995.5%16570
Jul. 1, 1999—Sep. 30, 19995.5%16570
Oct. 1, 1999—Dec. 31, 19995.5%16570
Jan. 1, 2000—Mar. 31, 20005.5%64618
Apr. 1, 2000—Jun. 30, 20006.5%66620
Jul. 1, 2000—Sep. 30, 20006.5%66620
Oct. 1, 2000—Dec. 31, 20006.5%66620
Jan. 1, 2001—Mar. 31, 20016.5%18572
Apr. 1, 2001—Jun. 30, 20015.5%16570
Jul. 1, 2001—Sep. 30, 20014.5%14568
Oct. 1, 2001—Dec. 31, 20014.5%14568
Jan. 1, 2002—Mar. 31, 20023.5%12566
Apr. 1, 2002—Jun. 30, 20023.5%12566
Jul. 1, 2002—Sep. 30, 20023.5%12566
Oct. 1, 2002—Dec. 31, 20023.5%12566
Jan. 1, 2003—Mar. 31, 20032.5%10564
Apr. 1, 2003—Jun. 30, 20032.5%10564
Jul. 1, 2003—Sep. 30, 20032.5%10564
Oct. 1, 2003—Dec. 31, 20031.5%8562
Jan. 1, 2004—Mar. 31, 20041.5%56610
Apr. 1, 2004—Jun. 30, 20042.5%58612
Jul. 1, 2004—Sep. 30, 20041.5%56610
Oct. 1, 2004—Dec. 31, 20042.5%58612
Jan. 1, 2005—Mar. 31, 20052.5%10564
Apr. 1, 2005—Jun. 30, 20053.5%12566
Jul. 1, 2005—Sep. 30, 20053.5%12566
April 4, 2016Bulletin No. 2016 –14
528

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Oct. 1, 2005—Dec. 31, 20054.5%14568
Jan. 1, 2006—Mar. 31, 20064.5%14568
Apr. 1, 2006—Jun. 30, 20064.5%14568
Jul. 1, 2006—Sep. 30, 20065.5%16570
Oct. 1, 2006—Dec. 31, 20065.5%16570
Jan. 1, 2007—Mar. 31, 20075.5%16570
Apr. 1, 2007—Jun. 30, 20075.5%16570
Jul. 1, 2007—Sep. 30, 20075.5%16570
Oct. 1, 2007—Dec. 31, 20075.5%16570
Jan. 1, 2008—Mar. 31, 20084.5%62616
Apr. 1, 2008—Jun. 30, 20083.5%60614
Jul. 1, 2008—Sep. 30, 20082.5%58612
Oct. 1, 2008—Dec. 31, 20083.5%60614
Jan. 1, 2009—Mar. 31, 20092.5%10564
Apr. 1, 2009—Jun. 30, 20091.5%8562
Jul. 1, 2009—Sep. 30, 20091.5%8562
Oct. 1, 2009—Dec. 31, 20091.5%8562
Jan. 1, 2010—Mar. 31, 20101.5%8562
Apr. 1, 2010—Jun. 30, 20101.5%8562
Jul. 1, 2010—Sep. 30, 20101.5%8562
Oct. 1, 2010—Dec. 31, 20101.5%8562
Jan. 1, 2011—Mar. 31, 20110.5%*
Apr. 1, 2011—Jun. 30, 20111.5%8562
Jul. 1, 2011—Sep. 30, 20111.5%8562
Oct. 1, 2011—Dec. 31, 20110.5%*
Jan. 1, 2012—Mar. 31, 20120.5%*
Apr. 1, 2012—Jun. 30, 20120.5%*
Jul. 1, 2012—Sep. 30, 20120.5%*
Oct. 1, 2012—Dec. 31, 20120.5%*
Jan. 1, 2013—Mar. 31, 20130.5%*
Apr. 1, 2013—Jun. 30, 20130.5%*
Jul. 1, 2013—Sep. 30, 20130.5%*
Oct. 1, 2013—Dec. 31, 20130.5%*
Jan. 1, 2014—Mar. 31, 20140.5%*
Apr. 1, 2014—Jun. 30, 20140.5%*
Jul. 1, 2014—Sep. 30, 20140.5%*
Oct. 1, 2014—Dec. 31, 20140.5%*
Jan. 1, 2015—Mar. 31, 20150.5%*
Apr. 1, 2015—Jun. 30, 20150.5%*
Jul. 1, 2015—Sep. 30, 20150.5%*
Oct. 1, 2015—Dec. 31, 20150.5%*
Bulletin No. 2016 –14April 4, 2016
529

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 2016—Mar. 31, 20160.5%*
Apr. 1, 2016—Jun. 30, 20161.5%
* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent, which are published
in Appendix A of Rev. Rul. 2015–23, 2015–52 I.R.B., dated Dec. 28, 2015.
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. 2016 – 09
This revenue ruling provides various
prescribed rates for federal income tax
purposes for April 2016 (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, 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. 2016–09 TABLE 1
Applicable Federal Rates (AFR) for April 2016
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR.70%.70%.70%.70%
110% AFR.77%.77%.77%.77%
120% AFR.84%.84%.84%.84%
130% AFR.91%.91%.91%.91%
Mid-term
AFR1.45%1.44%1.44%1.44%
110% AFR1.59%1.58%1.58%1.57%
120% AFR1.74%1.73%1.73%1.72%
130% AFR1.88%1.87%1.87%1.86%
150% AFR2.17%2.16%2.15%2.15%
175% AFR2.54%2.52%2.51%2.51%
Long-term
AFR2.25%2.24%2.23%2.23%
110% AFR2.48%2.46%2.45%2.45%
120% AFR2.71%2.69%2.68%2.68%
130% AFR2.93%2.91%2.90%2.89%
April 4, 2016Bulletin No. 2016 –14
530

REV. RUL. 2016–09 TABLE 2
Adjusted AFR for April 2016
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR.46%.46%.46%.46%
Mid-term adjusted AFR1.12%1.12%1.12%1.12%
Long-term adjusted AFR2.25%2.24%2.23%2.23%
REV. RUL. 2016–09 TABLE 3
Rates Under Section 382 for April 2016
Adjusted federal long-term rate for the current month2.25%
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.)
2.53%
REV. RUL. 2016–09 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for April 2016
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized
new buildings placed in service after July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.42%
Appropriate percentage for the 30% present value low-income housing credit3.18%
REV. RUL. 2016–09 TABLE 5
Rate Under Section 7520 for April 2016
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
1.8%
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 April 2016. See Rev. Rul. 2016–09, page 530.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of April 2016. See
Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul.
2016–09, page 530.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul. 2016–09, page 530.
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 April 2016. See
Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul. 2016–09, page 530.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term
rates are set forth for the month of April 2016. See
Rev. Rul. 2016–09, page 530.
Bulletin No. 2016 –14April 4, 2016
531

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 April 2016. See Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul. 2016–09, page 530.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2016. See Rev. Rul. 2016–09, page 530.
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 April 2016. See Rev. Rul. 2016–09, page 530.
April 4, 2016Bulletin No. 2016 –14
532

Part III. Administrative, Procedural, and Miscellaneous
Public Comment Invited on
Recommendations for
2016 –2017 Priority
Guidance Plan
Notice 2016 –26
The Department of Treasury and Inter-
nal Revenue Service (Service) invite pub-
lic comment on recommendations for
items that should be included on the
2016–2017 Priority Guidance Plan.
The Treasury Department’s Office of
Tax Policy and the Service use the Prior-
ity Guidance Plan each year to identify
and prioritize the tax issues that should be
addressed through regulations, revenue
rulings, revenue procedures, notices, and
other published administrative guidance.
The 2016–2017 Priority Guidance Plan
will identify guidance projects that the
Treasury Department and the Service in-
tend to work on as priorities during the
period from July 1, 2016, through June 30,
2017. The Treasury Department and the
Service recognize the importance of pub-
lic input in formulating a Priority Guid-
ance Plan that focuses resources on guid-
ance items that are most important to
taxpayers and tax administration. Pub-
lished guidance plays an important role in
increasing voluntary compliance by help-
ing to clarify ambiguous areas of the tax
law. The published guidance process is
most successful if the Treasury Depart-
ment and the Service have the benefit of
the experience and knowledge of taxpay-
ers and practitioners who must apply the
rules implementing the internal revenue
laws.
As is the case whenever significant leg-
islation is enacted, the Treasury Depart-
ment and the Service have continued to
dedicate substantial resources during the
current plan year to published guidance
projects necessary to implement the pro-
visions of various tax legislative acts that
have been enacted over the past several
years. The Treasury Department and the
Service will continue to evaluate the pri-
ority of each guidance project taking into
account this tax legislation, as well as
other developments occurring during the
2016–2017 plan year.
In reviewing recommendations and se-
lecting projects for inclusion on the 2016–
2017 Priority Guidance Plan, the Treasury
Department and the Service will consider
the following:
1. Whether the recommended guidance
resolves significant issues relevant to
many taxpayers;
2. Whether the recommended guidance
promotes sound tax administration;
3. Whether the recommended guidance
can be drafted in a manner that will
enable taxpayers to easily understand
and apply the guidance;
4. Whether the recommended guidance
involves regulations that are out-
moded, ineffective, insufficient, or ex-
cessively burdensome and that should
be modified, streamlined, expanded, or
repealed;
5. Whether the Service can administer the
recommended guidance on a uniform
basis; and
6. Whether the recommended guidance
reduces controversy and lessens the
burden on taxpayers or the Service.
Please submit recommendations by
May 16, 2016, for possible inclusion on
the original 2016–2017 Priority Guidance
Plan. Taxpayers may, however, submit
recommendations for guidance at any
time during the year. The Treasury De-
partment and the Service may update the
2016–2017 Priority Guidance Plan peri-
odically to reflect additional guidance that
the Treasury Department and the Service
intend to publish during the plan year. The
periodic updates allow the Treasury De-
partment and the Service to respond to the
need for additional guidance that may
arise during the plan year.
Taxpayers are not required to submit
recommendations for guidance in any par-
ticular format. Taxpayers should, how-
ever, briefly describe the recommended
guidance and explain the need for the
guidance. In addition, taxpayers may in-
clude an analysis of how the issue should
be resolved. It would be helpful if taxpay-
ers suggesting more than one guidance
project prioritize the projects by order of
importance. If a large number of projects
are being suggested, it would be helpful if
the projects were grouped in terms of
high, medium, or low priority. Requests
for guidance in the form of petitions for
rulemaking will be considered with other
recommendations for guidance in accor-
dance with the considerations described in
this notice.
Taxpayers may mail comments to:
Internal Revenue Service
Attn: CC:PA:LPD:PR (Notice 2016–26)
Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
or hand deliver comments Monday
through Friday between the hours of 8
a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:PR (Notice 2016–26)
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Alternatively, taxpayers may submit
comments electronically via the Federal
eRulemaking Portal atwww.regulations.
gov(type IRS–2016–0012 in the search
field on the regulations.gov homepage to
find this notice and submit comments). All
recommendations for guidance submitted
by the public in response to this notice
will be available for public inspection and
copying in their entirety.
For further information regarding this
notice, contact Charles A. Hall of the Of-
fice of Associate Chief Counsel (Proce-
dure and Administration) at (202) 317-
3400 (not a toll-free number).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also: Part I, §§ 911; 1.911–1.)
Rev. Proc. 2016 –21
SECTION 1. PURPOSE
.01 This revenue procedure provides
information to any individual who failed
to meet the eligibility requirements of sec-
tion 911(d)(1) of the Internal Revenue
Code because adverse conditions in a for-
eign country precluded the individual
from meeting those requirements for tax-
able year 2015.
Bulletin No. 2016 –14April 4, 2016
533

.02 This revenue procedure lists the
countries for which the eligibility require-
ments of section 911(d)(1) are waived for
taxable year 2015.
SECTION 2. BACKGROUND
.01 Sections 911(a) and (c)(4) of the
Code allow a “qualified individual,” as
defined in section 911(d), to exempt from
taxation the individual’s foreign earned
income and the housing cost amount.
.02 Section 911(d)(1) of the Code de-
fines the term “qualified individual” as an
individual whose tax home is in a foreign
country and who is (A) a citizen of the
United States and establishes to the satis-
faction of the Secretary of the Treasury
that the individual has been abona fide
resident of a foreign country or countries
for an uninterrupted period that includes
an entire taxable year, or (B) a citizen or
resident of the United States who, during
any period of 12 consecutive months, is
present in a foreign country or countries
during at least 330 full days.
.03 Section 911(d)(4) of the Code pro-
vides an exception to the eligibility re-
quirements of section 911(d)(1). An indi-
vidual will be treated as a qualified
individual with respect to a period in
which the individual was abona fideres-
ident of, or was present in, a foreign coun-
try if the individual left the country during
a period for which the Secretary of the
Treasury, after consultation with the Sec-
retary of State, determines that individuals
were required to leave because of war,
civil unrest, or similar adverse conditions
that precluded the normal conduct of busi-
ness. An individual must establish that but
for those conditions the individual could
reasonably have been expected to meet
the eligibility requirements
SECTION 3. APPLICATION
.01 For 2015, the Secretary of the Trea-
sury, in consultation with the Secretary of
State, has determined that war, civil un-
rest, or similar adverse conditions pre-
cluded the normal conduct of business in
the following country beginning on the
specified date:
Country
Date of Departure
On or After
BurundiMay 14, 2015
Accordingly, for purposes of section
911 of the Code, an individual who left
the Burundi on or after May 14, 2015, will
be treated as a qualified individual with
respect to the period during which that
individual was present in, or was abona
fideresident of, Burundi if the individual
establishes a reasonable expectation of
meeting the requirements of section
911(d) but for those conditions.
.02 To qualify for relief under section
911(d)(4) of the Code, an individual must
have established residency, or have been
physically present, in the foreign country
on or prior to the date that the Secretary of
the Treasury determines that individuals
were required to leave the foreign country.
Individuals who establish residency, or
are first physically present, in the foreign
country after the date that the Secretary
prescribes will not be treated as qualified
individuals under section 911(d)(4) of the
Code. For example, individuals who were
first physically present or established res-
idency in Burundi after May 14, 2015, are
not eligible to qualify for the exception
provided in section 911(d)(4) of the Code
for taxable year 2015.
SECTION 4. INQUIRIES
A taxpayer who needs assistance on
how to claim this exclusion, or on how to
file an amended return, should contact a
local IRS Office or consult the section
under the headingHow to Get Tax
Helpathttps://www.irs.gov/Individuals/
International-Taxpayers/U.S.-Citizens-and-
Resident-Aliens-Abroad.
SECTION 4. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kate Y. Hwa of the Office of
Associate Chief Counsel (International).
For further information regarding this rev-
enue procedure contact Kate Y. Hwa on
(202) 317-5001 (not a toll-free number).
April 4, 2016Bulletin No. 2016 –14
534

Part IV. Items of General Interest
December 2015 Revision
of Form 3115
Announcement 2016 –14
The Internal Revenue Service (IRS)
has revised Form 3115,Application for
Change in Accounting Method, and its
instructions. The Form 3115 (Rev. De-
cember 2015) is thecurrentForm 3115
and replaces the December 2009 version
of the Form 3115. Ordinarily, a taxpayer
applies for consent to change a method of
accounting for federal income tax purposes
by completing and filing acurrentForm
3115. Treas. Reg. § 1.446–1(e)(3)(i).
To allow a reasonable transition to the
December 2015 Form 3115, the IRS will
accept either the December 2015 Form
3115 or the December 2009 Form 3115
filed on or before April 19, 2016, except
where the use of the December 2015 Form
3115 is specifically required in guidance
published in the Internal Revenue Bulletin.
Taxpayers filing Forms 3115 after April 19,
2016, must use the December 2015 Form
3115. The IRS encourages taxpayers to use
the December 2015 Form 3115 prior to
April 20, 2016. Regardless of the form used,
taxpayers must provide all the information
required by Rev. Proc. 2015–13 (or Rev.
Proc. 2011–14, 2011–4 I.R.B. 330, if the
taxpayer is making a change under the tran-
sition rule in section 15.02(1)(a)(ii) of Rev.
Proc. 2015–13, 2015–5 I.R.B. 419, as mod-
ified by Rev. Proc. 2015–33, 2015–24
I.R.B. 1067).Seesections 6.02 and 14 of
Rev. Proc. 2015–13 or sections 6 and 11 of
Rev. Proc. 2011–14.
Section 6.03(1)(a)(i) of Rev. Proc.
2015–13 requires a taxpayer filing a re-
quest for an automatic change to file its
original Form 3115 with its return and a
duplicate of that Form 3115 with the IRS
in Ogden, Utah. Beginning in January
2016, the duplicate copy of Form 3115 for
an automatic change request is filed with
the IRS in Covington, Kentucky.SeeRev.
Proc. 2016–1, 2016–1 I.R.B. 1, section
9.05(2). The address of the IRS office in
Covington, Kentucky, is:
Internal Revenue Service
201 West Rivercenter Blvd.
PIN Team Mail Stop 97
Covington, KY 41011-1424
If prior to April 20, 2016, a taxpayer
filed its duplicate copy of Form 3115 with
the IRS in either Ogden, Utah, or Coving-
ton, Kentucky, using the December 2009
Form 3115, the taxpayer may file its orig-
inal Form 3115 with its return on either
the December 2009 Form 3115 or the
December 2015 Form 3115.
Taxpayers may download the Decem-
ber 2015 Form 3115 and its instructions from
the IRS website,www.irs.gov/formspubs,or
order them from the IRS websitewww.irs.
gov/orderforms.
The principal author of this announce-
ment is Charles Magee of the Office of
Associate Chief Counsel (Income Tax &
Accounting). For further information re-
garding this announcement contact Mr.
Magee at (202) 317-7005 (not a toll-free
number).
Notice of Proposed
Rulemaking
Country-by-Country
Reporting
REG–109822–15
AGENCY:Internal Revenue Service (IRS),
Treasury.
ACTION:Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations that would require
annual country-by-country reporting by
United States persons (U.S. persons) that
are the ultimate parent entity of a multi-
national enterprise (MNE) group. These
proposed regulations affect U.S. persons
that are the ultimate parent entity of an
MNE group that has annual revenue for
the preceding annual accounting period of
$850,000,000 or more. This document in-
vites comments from the public on all
aspects of the proposed rules and provides
the opportunity for the public to request a
public hearing.
DATES: Written or electronic comments
and requests for a public hearing must be
received by March 22, 2015.
ADDRESSES: Send submissions to: CC:
PA:LPD:PR (REG–109822–15), Room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand-
delivered Monday through Friday be-
tween the hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR (REG–109822–15), Couri-
er’s Desk, Internal Revenue Service, 1111
Constitution Avenue NW, Washington, DC,
or sent electronically via the Federal eRule-
making Portal athttp://www.regulations.
gov(indicate IRS REG–109822–15).
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Melinda E. Harvey, (202)
317-6934; concerning submissions of
comments or requests for a public hearing,
Oluwafunmilayo (Funmi) Taylor, (202)
317-6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
1.Objectives of Proposed Regulatory
Action
Pursuant to the authority granted under
sections 6001, 6011, 6012, 6031, 6038,
and 7805, these proposed regulations de-
scribe a new requirement for certain U.S.
persons that are the ultimate parent entity
of an MNE group (U.S. MNE group)
earning substantial annual revenue to file
an annual report (U.S. CbC report) con-
taining information on a country-by-
country basis related to the MNE group’s
income and taxes paid, together with cer-
tain indicators of the location of economic
activity within the MNE group. Because
the reporting form is currently under de-
velopment by the IRS and yet to be offi-
cially numbered, it is referred to in this
preamble and the proposed regulations as
Form XXXX,Country-by-Country Re-
port. The categories of information re-
quired to be reported on the U.S. CbC
report were developed in coordination
with other member countries of the Group
of Twenty (G20) and the Organisation for
Economic Co-operation and Development
(OECD). As discussed later in this pream-
ble, the Treasury Department and the IRS
have determined that the information re-
quired under these proposed regulations
will assist in better enforcement of U.S.
tax laws.
Bulletin No. 2016 –14April 4, 2016
535

The G20 and OECD members, in co-
ordination with other countries, developed
a model template for the collection of
country-by-country information from
large MNE groups. The model template is
intended to promote consistent and effec-
tive implementation of country-by-
country reporting across tax jurisdictions
(including countries and jurisdictions that
are not countries but that have fiscal au-
tonomy). The Treasury Department and
the IRS anticipate that other tax jurisdic-
tions will adopt information reporting re-
quirements based on the model template
that will mandate the filing of a country-
by-country report (foreign CbC report) by
MNE groups with an ultimate parent en-
tity that is not a U.S. person (foreign MNE
groups) that have substantial revenues. In
developing these proposed regulations,
the Treasury Department and the IRS de-
termined that it is appropriate to use the
model template as a guide because the
model template was developed taking into
account extensive consultations with
stakeholders, including in particular U.S.
MNE groups, in order to appropriately
balance the benefits to tax administrations
of collecting the information about an
MNE group’s global operations against
the compliance costs and burdens im-
posed on MNE groups. These consulta-
tions significantly affected both the scope
of the information included in the model
template as well as the flexibility afforded
to MNE groups in determining how to
compile that information in light of their
different system capabilities. In addition,
the model template reflects an agreed in-
ternational standard for reporting by MNE
groups that will promote consistency of
reporting obligations across tax jurisdic-
tions and reduce the risk that other coun-
tries will depart from the agreed standard
by imposing inconsistent and overlapping
reporting obligations on U.S. MNE
groups. In this respect, the Treasury De-
partment and the IRS note that clear and
widely adopted documentation rules for
MNE groups also help to reduce compli-
ance costs. While the proposed regula-
tions generally are consistent with the in-
ternational standard, the proposed
regulations also are tailored to be consis-
tent with the preexisting information re-
porting requirements applicable to U.S.
persons under sections 6001, 6011, 6012,
6031, and 6038.
The Treasury Department and the IRS
have determined that the information re-
quired under these proposed regulations
will assist in better enforcement of the
federal income tax laws by providing the
IRS with greater transparency regarding
the operations and tax positions taken by
U.S. MNE groups. In addition to this di-
rect benefit expected from collecting U.S.
CbC reports, as discussed in Part 2 of this
preamble, pursuant to income tax conven-
tions and other conventions and bilateral
agreements relating to the exchange of tax
information (collectively, information ex-
change agreements), a U.S. CbC report
filed with the IRS may be exchanged by
the United States with other tax jurisdic-
tions in which the U.S. MNE group oper-
ates that have agreed to provide the IRS
with foreign CbC reports filed in their
jurisdiction by foreign MNE groups that
have operations in the United States. For-
eign CbC reports will provide the IRS
with information that will assist the IRS in
performing risk assessment of foreign
MNE groups operating in the United
States.
In particular, it is expected that CbC
reports filed by both U.S. MNE groups
and foreign MNE groups (collectively
CbC reports) will help the IRS perform
high-level transfer pricing risk identifica-
tion and assessment. The information in a
CbC report will not itself constitute con-
clusive evidence that transfer pricing
practices are or are not consistent with the
arm’s length standard. Accordingly, the
information in a CbC report will not be
used as a substitute for an appropriate
transfer pricing determination based on a
best method analysis (including a full
comparability analysis of factors such as
functions performed, resources employed,
and risks assumed) as required by the
arm’s length standard set forth in the reg-
ulations under section 482, and transfer
pricing adjustments will not be based
solely on a CbC report. However, a CbC
report may be used as the basis for making
further inquiries into transfer pricing prac-
tices or other tax matters in the course of
an examination of a member of an MNE
group, and adjustments may be based on
additional information developed through
those inquiries in accordance with appli-
cable law.
2.Exchange of Information,
Confidentiality, and Improper Use of
Information
Information reported pursuant to these
proposed regulations is return information
under section 6103. Section 6103 imposes
strict confidentiality rules with respect to
all return information. Moreover, section
6103(k)(4) allows the IRS to exchange
return information with a competent au-
thority of a tax jurisdiction only to the
extent provided in, and subject to the
terms and conditions of, an information
exchange agreement. It is expected that
the U.S. competent authority will enter
into competent authority arrangements for
the automatic exchange of CbC reports
under the authority of information ex-
change agreements to which the United
States is a party.
Consistent with established interna-
tional standards, all of the information
exchange agreements to which the United
States is a party require the information
exchanged to be treated as confidential by
both parties, and disclosure and use of the
information must be in accordance with
the terms of the relevant information ex-
change agreement. Information exchange
agreements generally prohibit the parties
from using any information received for
any purpose other than for the administra-
tion of taxes (e.g., assessment or collec-
tion of, or enforcement or prosecution in
respect of, the taxes covered by the infor-
mation exchange agreement). Accord-
ingly, under the terms of information ex-
change agreements, neither tax
jurisdiction is permitted to disclose the
information received under the informa-
tion exchange agreement or use such in-
formation for any non-tax purpose. Under
the contemplated competent authority ar-
rangements for the exchange of CbC re-
ports, the competent authorities of the
United States and other tax jurisdictions
intend to further limit the permissible uses
of exchanged CbC reports to assessing
high-level transfer pricing and other tax
risks and, where appropriate, for eco-
nomic and statistical analysis.
Prior to entering into an information
exchange agreement with another tax
April 4, 2016Bulletin No. 2016 –14
536

jurisdiction, the Treasury Department and
the IRS closely review the tax jurisdic-
tion’s legal framework for maintaining
confidentiality of taxpayer information
and its track record of complying with that
legal framework. In order to conclude an
information exchange agreement with an-
other tax jurisdiction, the Treasury De-
partment and the IRS must be satisfied
that the tax jurisdiction has the necessary
legal safeguards in place to protect ex-
changed information, such protections are
enforced, and adequate penalties apply to
any breach of that confidentiality. More-
over, even when these conditions have
been met and an information exchange
agreement is in effect, the U.S. competent
authority will notenter into a reciprocal
automatic exchange of information relation-
ship with a tax jurisdiction unless it has
reviewed the tax jurisdiction’s policies and
procedures regarding confidentiality protec-
tions and has determined that such an ex-
change relationship is appropriate.
If the United States determines that a
tax jurisdiction is not in compliance with
confidentiality requirements, data safe-
guards, and the appropriate use standards
provided for under the information ex-
change agreement or the competent au-
thority arrangement, the United States will
pause automatic exchange of CbC reports
with that tax jurisdiction until such time as
the United States is satisfied that the tax
jurisdiction is meeting its obligations un-
der the applicable information exchange
or competent authority agreement or ar-
rangement.
Explanation of Provisions
1.U.S. Persons Required to File Form
XXXX, Country-by-Country Report
The proposed regulations generally re-
quire a U.S. business entity that is the
ultimate parent entity of a U.S. MNE
group to file Form XXXX,Country-by-
CountryReport. However, proposed
§ 1.6038–4(h) provides an exception
from filing by a U.S. MNE group for an
annual accounting period if the U.S. MNE
group had revenues of less than
$850,000,000 for the preceding annual ac-
counting period. Generally, an ultimate
parent entity of a U.S. MNE group is a
U.S. business entity that controls a group
of business entities, at least one of which
is organized or tax resident outside of the
United States, that are required to consol-
idate their accounts for financial reporting
purposes under U.S. generally accepted
accounting principles (GAAP), or that
would be required to consolidate their ac-
counts if equity interests in the U.S. busi-
ness entity were publicly traded on a U.S.
securities exchange. For purposes of the
proposed regulations, the term business
entity means a person as defined in section
7701(a) that is not an individual, as well
as a permanent establishment that pre-
pares financial statements separate from
those of its owner for financial reporting,
regulatory, tax reporting, or internal man-
agement control purposes.
Under proposed § 1.6038–4(b)(6), a
business entity generally is considered
resident in a tax jurisdiction if, under the
laws of that tax jurisdiction, the business
entity is liable to tax therein based on
place of management, place of organiza-
tion, or another similar criterion. How-
ever, a business entity will not be consid-
ered resident in a tax jurisdiction if it is
liable to tax in such jurisdiction solely
with respect to income from sources in
such jurisdiction, or capital situated in
such jurisdiction. The proposed regula-
tions also provide rules for determining
the tax jurisdiction of residence of a busi-
ness entity that is resident in more than
one tax jurisdiction or that is a permanent
establishment.
Proposed § 1.6038–4(b)(4) defines a
U.S. MNE group as a group of business
entities, including the U.S. business entity
that is the ultimate parent entity, that are
required to consolidate their accounts un-
der U.S. GAAP, or would be required to
consolidate their accounts if equity inter-
ests in the ultimate parent entity were pub-
licly traded on a U.S. securities exchange.
Generally, under U.S. GAAP, if an entity
owns a majority voting interest in another
legal entity, the majority owner must com-
bine the financial statements of the
majority-owned entity with its own finan-
cial statements in consolidated financial
statements. Financial Accounting Stan-
dards Board,Accounting Standards Cod-
ification 810 –10 –15, “Consolidation –
Overall – Scope and Scope Exceptions.”
A U.S. MNE group does not include busi-
ness entities that are accounted for under
the equity method (because those entities
do not consolidate their accounts with the
equity owner), notwithstanding that the
equity owner’s proportionate share of the
business income of such entities is in-
cluded in the equity owner’s consolidated
financial statements. The ultimate parent
entity of a U.S. MNE group that is re-
quired to file Form XXXX,Country-by-
Country Report, may be required to con-
solidate under U.S. GAAP one or more
affiliated groups as defined in section
1504(a) that file a consolidated income tax
return even though the ultimate parent en-
tity is not an includible corporation as
defined under section 1504(b) with re-
spect to any of such consolidated groups.
In such cases, the ultimate parent entity
would report country-by-country informa-
tion with respect to all such affiliated
group entities (and any other business en-
tities in the U.S. MNE group) on Form
XXXX,Country-by-Country Report, and
the parent corporations of the respective
consolidated groups would not file a Form
XXXX,Country-by-Country Report.
The Treasury Department and the IRS
request comments on whether additional
guidance is needed for determining which
U.S. persons must file Form XXXX,
Country-by-Country Report, or which en-
tities are considered constituent entities of
the filer. Specifically, the Treasury De-
partment and the IRS request comments
on whether additional guidance on the
definition of U.S. MNE group is necessary
to address situations where U.S. GAAP or
regulations governing securities publicly
traded on a U.S. securities exchange (U.S.
securities regulations) permit or require
consolidated financial accounting for rea-
sons other than majority ownership and
situations, if any, where U.S. GAAP or
U.S. securities regulations permit separate
financial accounting of majority-owned
enterprises. Additionally, consideration
has been given to the possible need for an
exception to filing some or all of the in-
formation required on Form XXXX,
Country-by-Country Report, for national
security reasons. Requests by a U.S. per-
son otherwise subject to the requirements
to file Form XXXX,Country-by-Country
Report, for an exception would require the
Treasury Department and affected U.S.
persons to coordinate with other federal
agencies, such as the Department of De-
fense, to determine whether such an ex-
Bulletin No. 2016 –14April 4, 2016
537

ception is warranted. The Treasury De-
partment and the IRS request comments
with respect to the procedures that a U.S.
person should be required to follow in
order to demonstrate a national security
reason to receive an exception from filing
some or all of the information otherwise
required by Form XXXX,Country-by-
Country Report.
Generally, a constituent entity will
have a tax jurisdiction of residence as
determined under proposed § 1.6038–
4(b)(6). However, a business entity that is
treated as a partnership in the tax jurisdic-
tion in which it is organized and that does
not own or create a permanent establish-
ment in another tax jurisdiction generally
will have no tax jurisdiction of residence
under the definition in proposed § 1.6038–
4(b)(6)(other than for purposes of deter-
mining the ultimate parent entity of a
U.S. MNE group). In these cases, it is
expected that the partners will report
their share of the partnership’s items in
the partners’ respective tax jurisdictions
of residence in order to determine the
aggregate amounts reported on Form
XXXX,Country-by-Country Report, re-
gardless of whether the partnership has
elected to be treated as an association
for U.S. federal tax purposes. The Trea-
sury Department and the IRS continue
to consider whether a different rule is
needed in the case of entities that are not
treated as fiscally transparent in the
owner or owners’ tax jurisdiction(s) of
residence but are treated as fiscally
transparent in the entity’s country of
organization. The Treasury Department
and the IRS request comments on the
treatment of such entities in the CbC
Report. In the case of a permanent es-
tablishment owned or created by a busi-
ness entity that is treated as a partner-
ship in the tax jurisdiction in which it is
organized, the tax jurisdiction of resi-
dence of the permanent establishment
for purposes of Form XXXX,Country-
by-Country Report, is the location of the
permanent establishment regardless of
whether the permanent establishment is
treated as a permanent establishment of
the partnership or of the partners of the
partnership by the tax jurisdiction in
which the permanent establishment is
located.
2.Information Required on Form XXXX,
Country-by-Country Report
A.Constituent entity information.
Proposed § 1.6038–4(d)(1) describes
the information that Form XXXX,
Country-by-Country Report, may require
with respect to each constituent entity of
the U.S. MNE group. Generally, each
business entity of a U.S. MNE group is
considered a separate constituent entity of
that U.S. MNE group; however, the term
constituent entity does not include a for-
eign corporation or foreign partnership for
which the ultimate parent entity is not
required to furnish information under sec-
tion 6038(a), determined without regard to
§ 1.6038–2(j) and § 1.6038–3(c) (excep-
tions to information reporting for certain
constructive owners and when more than
one person otherwise would be required to
submit the same information), or any per-
manent establishment of such foreign cor-
poration or foreign partnership. For exam-
ple, if none of the constituent entities
owned by the ultimate parent entity di-
rectly, indirectly, or constructively owns
enough stock in a foreign corporation to
be considered a United States shareholder
of a controlled foreign corporation, the
foreign corporation is not a constituent
entity. However, if the ultimate parent en-
tity of a U.S. MNE group constructively
owns more than 50 percent of the voting
stock of a foreign corporation because a
wholly-owned domestic subsidiary di-
rectly owns such stock and the domestic
subsidiary reports information with re-
spect to theforeign corporation pursuant to
section 6038(a), the foreign corporation is a
constituent entity of the U.S. MNE group
notwithstanding that under § 1.6038–2(j)(2)
the ultimate parent entity itself is not re-
quired to report information under section
6038(a). The IRS requests comments on
whether additional guidance is needed re-
garding which business entities of a U.S.
MNE group are considered constituent en-
tities, particularly with respect to the exclu-
sion of foreign corporations and partner-
ships for which an ultimate parent entity
would not be required to furnish information
under section 6038(a) without regard to
§§ 1.6038–2(j) and 1.6038–3(c).
The information required with respect
to each constituent entity includes identi-
fication of the tax jurisdiction, if any, in
which the constituent entity is resident for
tax purposes, the tax jurisdiction in which
the constituent entity is organized or incor-
porated (if different from the tax jurisdiction
of residence), and the main business activity
or activities of the constituent entity. The tax
identification number of each constituent
entity used by the tax administration in its
jurisdiction of tax residence also will be
reported on Form XXXX,Country-by-
Country Report.
B.Financial and employee information.
Proposed § 1.6038–4(d)(2) requires
certain information to be reported for each
tax jurisdiction in which one or more con-
stituent entities of the MNE group is res-
ident. The information for each tax juris-
diction must be presented on Form
XXXX,Country-by-Country Report,as
an aggregate of the requested information
from all of the constituent entities that are
resident in the tax jurisdiction. In addition,
proposed § 1.6038–4(d)(3)(i) provides
that the information must be reported, in
the aggregate, for any constituent entity or
entities of a U.S. MNE group that have no
tax jurisdiction of residence.
Specifically, the information required
to be reported for each tax jurisdiction
includes: (i) revenues generated from
transactions with other constituent entities
of the U.S. MNE group; (ii) revenues not
generated from transactions with other
constituent entities of the U.S. MNE
group; (iii) profit (or loss) before income
tax; (iv) income tax paid on a cash basis to
all tax jurisdictions, including any taxes
withheld on payments received; (v) ac-
crued tax expense recorded on taxable
profits (or losses), reflecting only the op-
erations in the relevant annual accounting
period and excluding deferred taxes or
provisions for uncertain tax positions; (vi)
stated capital; (vii)accumulated earnings;
(viii) number of employees on a full-time
equivalent basis in the relevant tax jurisdic-
tion; and (ix) net book value of tangible
assets other than cash or cash equivalents.
The Treasury Department and the IRS
have sought to minimize deviations from
the model template that was developed by
G20 and OECD member countries based
on extensive consultations with stakehold-
ers. Nonetheless, the Treasury Depart-
April 4, 2016Bulletin No. 2016 –14
538

ment and the IRS understand that there
may be areas where further clarification or
refinement is warranted to take into ac-
count the purpose of these proposed reg-
ulations to collect relevant information for
high-level risk assessment while minimiz-
ing the burdens imposed. For example, the
report seeks information on the taxes paid
or accrued by MNE groups and their con-
stituent entities on taxable income earned
in the relevant accounting period. The
Treasury Department and the IRS specif-
ically solicit comments on the manner in
which the proposed regulations request
that information. The Treasury Depart-
ment and the IRS also request comments
on whether any of the other items should
be further refined or whether additional
guidance is needed with respect to how to
determine any of the items in proposed
§ 1.6038–4(d)(2)(i)–(ix).
Proposed § 1.6038–4(d)(3)(iii) pro-
vides that the number of employees on a
full-time equivalent basis may be deter-
mined as of the end of the accounting
period, on the basis of average employ-
ment levels for the annual accounting pe-
riod, or on any other reasonable basis, and
that independent contractors that partici-
pate in the ordinary operating activities of
a constituent entity may be considered
employees of such constituent entity for
this purpose. The number of full-time
equivalent employees in a tax jurisdiction
of residence should be determined by ref-
erence to the employees that perform their
activities for the U.S. MNE group within
such tax jurisdiction of residence. U.S.
MNE groups should use a reasonable ba-
sis to determine the tax jurisdiction of
residence for which to report employees
that perform activities for the U.S. MNE
group in more than one tax jurisdiction or
in a tax jurisdiction in which none of the
constituent entities of the U.S. MNE
group is resident. For example, a reason-
able basis may be to report a travelling
employee as part of the home office juris-
diction, as part of the tax jurisdiction in
which the travelling employee spends the
majority of his or her time, or as a fraction
of one full-time equivalent employee in
multiple tax jurisdictions based on the em-
ployee’s time spent working in those ju-
risdictions. The Treasury Department and
the IRS request comments on whether
guidance is needed regarding the treat-
ment of other employment situations. The
number of employees that a U.S. MNE
group has in a particular tax jurisdiction
should be determined on a consistent basis
across entities, tax jurisdictions in which
the U.S. MNE operates, and from year to
year. It is not expected that the basis on
which a U.S. MNE group determines the
number of employees in a tax jurisdiction
of residence will change from year to
year. However, it is expected that Form
XXXX,Country-by-Country Report, will
provide a section for additional informa-
tion that the ultimate parent entity of the
U.S. MNE group will use to explain,
among other things, any new approach
adopted to determine the number of em-
ployees and why it was necessary or ap-
propriate.
Proposed § 1.6038–4(e)(2) provides
that the financial information reported on
Form XXXX,Country-by-Country Re-
port, may be based on certified financial
statements, books and records maintained
with respect to each constituent entity, or
records used for tax reporting purposes. It
is not necessary to reconcile the revenue,
profit, and tax reported in the aggregate or
with respect to a specific tax jurisdiction
on Form XXXX,Country-by-Country Re-
port, to the consolidated financial state-
ments of the U.S. MNE group or to the tax
returns filed in any particular tax jurisdic-
tion. Additionally, there is no need to
make adjustments for differences in ac-
counting principles applied from tax juris-
diction to tax jurisdiction. It is expected
that Form XXXX,Country-by-Country
Report, will include a section to provide
additional information, including a brief
description of the sources of data used in
preparing the form, and, if a change is
made in the source of data used from year
to year, an explanation of the reasons for
the change and its consequences. Permis-
sion to change the accounting principles,
to make new or different adjustments for
differences in accounting principles, or to
change the source of data used in prepar-
ing Form XXXX,Country-by-Country
Report, is not required.
C.Template for Form XXXX, Country-
by-Country Report.
The template on which Form XXXX,
Country-by-Country Report, will be based
is provided below.
Bulletin No. 2016 –14April 4, 2016
539

Name of the MNE group:
Fiscal year concerned:
TaxConstitueTaxMain business activity(ies)
Jurisdiction Entities
resident in
the Tax
Jurisdiction
Jurisdiction
of organiza-
tion or incor-
poration if
different from
Tax Jurisdic-
tion of Resi-
dence
Research and Development
Holding or Managing intellectual property
Purchasing or Procurement
Manufacturing or Production
Sales, Marketing, or Distribution
Administrative, Management or Support Services
Provision of Services to unrelated parties
Internal Group Finance
Regulated Financial Services
Insurance
Holding shares or other equity instruments
Dormant
Other*
1.
2.
3.
1.
2.
3.
*Please specify the nature of the activity of the constituent entity in the “Additional Information” section.
Name of the MNE group:
Fiscal year concerned:
Currency used:
Tax Juris-
diction
RevenuesProfit (Loss)
Before In-
come Tax
Income
Tax Paid
(on cash
basis)
Income
Tax Ac-
crued –
Current
Year
Stated
Capital
Accumu-
lated Earn-
ings
Number
of Em-
ployees
Tangible
Assets
other than
Cash and
Cash
Equiva-
lents
Unrelated
Party
Related
Party
Total
April 4, 2016Bulletin No. 2016 –14
540

Name of the MNE group:
Fiscal year concerned:
Additional Information.Please include any further brief information or explanation you consider necessary or that would
facilitate the understanding of the compulsory information provided in the Country-by-Country Report.
3.Manner of Filing and Maintenance of
Records for Form XXXX, Country-by-
Country Report.
Proposed § 1.6038–4(f) requires that
Form XXXX,Country-by-Country Re-
port, be filed with the ultimate parent en-
tity’s timely-filed income tax return (with
extensions). The proposed regulations do
not require any U.S. business entity to
provide notification that it is a constituent
entity of a U.S. MNE group that is re-
quired to file a Form XXXX,Country-by-
Country Report.
While a U.S. business entity is not re-
quired to reconcile information reported
on Form XXXX,Country-by-Country Re-
port, with its financial statements or in-
come tax returns, proposed § 1.6038–4(g)
provides that a U.S. person required to file
as an ultimate parent entity of a U.S. MNE
group must maintain records to support
the information provided on Form XXXX,
Country-by-Country Report.
Proposed Effective/Applicability Date
These regulations are proposed to be
applicable to taxable years of ultimate
parent entities of US MNE groups that
begin on or after the date of publication of
the Treasury decision adopting these rules
as final regulations in theFederal Regis-
terand that include annual accounting
periods determined under section
6038(e)(4) of all foreign constituent enti-
ties and taxable years of all domestic con-
stituent entities beginning on or after the
date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in theFederal Register.
Special Analyses
Certain IRS regulations, including this
one, are exempt from the requirements of
Executive Order 12866, as supplemented
and reaffirmed by Executive Order 13563.
Therefore, a regulatory impact assessment
is not required. It also has been deter-
mined that section 553(b) and (d) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions.
The IRS intends that the information
collection requirements in these proposed
regulations will be satisfied by submitting
a new reporting form with an income tax
return. The new reporting form has not yet
been numbered and is referred to as Form
XXXX,Country-by-Country Report,in
this Preamble and the proposed regula-
tions. For purposes of the Paperwork Re-
duction Act, the reporting burden associ-
ated with the collection of information in
these proposed regulations will be re-
flected in the OMB Form 83–1,Paper-
work Reduction Act Submission, associ-
ated with Form XXXX,Country-by-
Country Report.
It is hereby certified that this regulation
will not have a significant economic im-
pact on a substantial number of small en-
tities within the meaning of section 601(6)
of the Regulatory Flexibility Act (5
U.S.C. chapter 6). Accordingly, a regula-
tory flexibility analysis is not required.
This certification is based on the fact that
these regulations will only affect U.S. cor-
porations, partnerships, and trusts that
have foreign operations when the com-
bined annual revenue of the business en-
tities owned by the U.S. person meets or
exceeds $850,000,000. Pursuant to sec-
tion 7805(f), these regulations have been
submitted to the Chief Counsel for Advo-
cacy of the Small Business Administra-
tion for comment on their impact on small
business.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are
submitted timely to the IRS as prescribed
in this preamble under the “Addresses”
heading. The Treasury Department and
the IRS request comments on aspects of
the proposed rules for which additional
guidance is desired. All comments will be
available at www.regulations.gov or upon
request. A public hearing will be sched-
uled if requested in writing by any person
that timely submits written comments. If a
public hearing is scheduled, then notice of
the date, time, and place for the public
hearing will be published in theFederal
Register.
Drafting Information
The principal author of these proposed
regulations is Melinda E. Harvey of the
Office of Associate Chief Counsel (Inter-
national). However, other personnel from
the IRS and the Department of the Trea-
sury participated in their development.
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding the following
entry in numerical order to read in part as
follows:
Authority: 26 U.S.C. 7805***
*****
Section 1.6038–4 also issued under 26
U.S.C. 6038.
*****
Par. 2. Section 1.6038–4 is added to
read as follows:
§ 1.6038 – 4 Information returns
required of certain United States
persons with respect to such person’s
U.S. multinational enterprise group.
(a)Requirement of return. Except as
provided in paragraph (h) of this section,
every United States person (U.S. person)
that is an ultimate parent entity of a U.S.
Bulletin No. 2016 –14April 4, 2016
541

multinational enterprise (MNE) group as
defined in paragraph (b)(1) of this section
must make an annual return on Form
XXXX,Country-by-Country Report, set-
ting forth the information described in this
section and any other information re-
quired by Form XXXX,Country-by-
Country Report, with respect to each an-
nual accounting period described in
paragraph (c) of this section.
(b)Definitions—(1)Ultimate parent
entity of a U.S. MNE group. An ultimate
parent entity of a U.S. MNE group is a
U.S. business entity that:
(i) Owns directly or indirectly a suffi-
cient interest in one or more other busi-
ness entities, at least one of which is or-
ganized or tax resident in a tax jurisdiction
other than the United States, such that the
U.S. business entity is required to consol-
idate the accounts of the other business
entities with its own accounts under U.S.
generally accepted accounting principles,
or would be so required if equity interests
in the U.S. business entity were publicly
traded on a U.S. securities exchange; and
(ii) Is not owned directly or indirectly
by another business entity that consoli-
dates the accounts of such U.S. business
entity with its own accounts under gener-
ally accepted accounting principles in the
other business entity’s tax jurisdiction of
residence, or would be so required if eq-
uity interests in the other business entity
were traded on a public securities ex-
change in its tax jurisdiction of residence.
(2)Business entity. For purposes of this
section, a business entity is a person as
defined in section 7701(a)(1) that is not an
individual, and includes any entity that
has a single owner and that is disregarded
as a separate entity from its owner under
§ 301.7701–3 of this chapter. Also for
purposes of this section, the term business
entity includes a business establishment in
a jurisdiction that is treated as a perma-
nent establishment under an income tax
convention to which that jurisdiction is a
party or that would be treated as a perma-
nent establishment under the Organisation
for Economic Co-operation and Develop-
ment (OECD) Model Tax Convention on
Income and on Capital 2014 and that pre-
pares financial statements separate from
those of its owner for financial reporting,
regulatory, tax reporting, or internal man-
agement control purposes.
(3)U.S. business entity. A U.S. busi-
ness entity is a business entity that is
organized or has its tax jurisdiction of
residence in the United States.
(4)U.S. MNE group. A U.S. MNE
group comprises the ultimate parent entity
of a U.S. MNE group as defined in para-
graph (b)(1) of this section and all of the
business entities required to consolidate
their accounts with the ultimate parent
entity’s accounts under U.S. generally ac-
cepted accounting principles, or that
would be so required if equity interests in
the ultimate parent entity were publicly
traded on a U.S. securities exchange, re-
gardless of whether any such business en-
tities could be excluded from consolida-
tion solely on size or materiality grounds.
(5)Constituent entity. With respect to a
U.S. MNE group, a constituent entity is
any separate business entity of such U.S.
MNE group, except that the term constit-
uent entity does not include a foreign cor-
poration or foreign partnership for which
the ultimate parent entity is not required to
furnish information under section 6038(a)
(determined without regard to § 1.6038–
2(j) and § 1.6038–3(c)) or any permanent
establishment of such foreign corporation
or foreign partnership.
(6)Tax jurisdiction of residence. For
purposes of this section, a tax jurisdiction
is a country or a jurisdiction that is not a
country but that has fiscal autonomy. A
business entity is considered a resident in
a tax jurisdiction if, under the laws of that
tax jurisdiction, the business entity is lia-
ble to tax therein based on place of man-
agement, place of organization, or another
similar criterion. However, a business en-
tity will not be considered a resident in a
tax jurisdiction if such business entity is
liable to tax in such tax jurisdiction solely
with respect to income from sources in
such tax jurisdiction, or capital situated in
such tax jurisdiction. If a business entity is
resident in more than one tax jurisdiction,
then the applicable income tax convention
rules, if any, should be applied to deter-
mine the business entity’s tax jurisdiction
of residence. If a business entity is resi-
dent in more than one tax jurisdiction and
no applicable income tax convention ex-
ists between those tax jurisdictions, or if
the applicable income tax convention pro-
vides that the determination of residence
is based on a determination by the com-
petent authorities of the relevant tax juris-
dictions and no such determination has
been made, the business entity’s tax juris-
diction of residence is the tax jurisdiction
of the business entity’s place of effective
management determined in accordance
with Article 4 of the OECD Model Tax
Convention on Income and on Capital
2014. The tax jurisdiction of residence of
a permanent establishment is the jurisdic-
tion in which the permanent establishment
is located. If a business entity does not
have a tax jurisdiction of residence, then
solely for purposes of paragraph (b)(1) of
this section, the tax jurisdiction of resi-
dence is the business entity’s country of
organization.
(7)Applicable financial statements.An
applicable financial statement is a certified
audited financial statement that is accom-
panied by a report of an independent cer-
tified public accountant or similarly qual-
ified independent professional that is used
for purposes of reporting to shareholders,
partners, or similar persons; for purposes
of reporting to creditors in connection
with securing or maintaining financing; or
for any other substantial non-tax purpose.
(c)Period covered by return. The in-
formation required under paragraph (d) of
this section with respect to a U.S. MNE
group must be furnished for the annual
accounting period with respect to which
the ultimate parent entity prepares its ap-
plicable financial statements ending with
or within the ultimate parent entity’s tax-
able year for which the Form XXXX,
Country-by-CountryReport, is filed.
However, if the ultimate parent entity
does not prepare applicable financial
statements that consolidate the accounts
of all constituent entities, the ultimate par-
ent entity may provide the information
required under paragraph (d) of this sec-
tion based on applicable financial state-
ments of constituent entities for their ac-
counting period or periods that end with
or within the ultimate parent entity’s tax-
able year.
(d)Contents of return—(1)Constituent
entity information. The return on Form
XXXX,Country-by-Country Report, must
contain so much of the following informa-
tion with respect to each constituent en-
tity, and in such form or manner, as the
form prescribes:
April 4, 2016Bulletin No. 2016 –14
542

(i) The tax jurisdiction, if any, in which
the constituent entity is resident for tax
purposes;
(ii) The tax jurisdiction in which the
constituent entity is organized or incorpo-
rated (if different from the tax jurisdiction
of residence);
(iii) The taxidentification number, if
any, used for the constituent entity by
the tax administration of the constituent
entity’s tax jurisdiction of residence;
and
(iv) The main business activity or ac-
tivities of the constituent entity.
(2)Tax jurisdiction of residence infor-
mation. The return on Form XXXX,
Country-by-Country Report, will contain
so much of the following information with
respect to each tax jurisdiction in which
one or more constituent entities of a U.S.
MNE group is resident, and in such form
or manner, as the form prescribes:
(i) Revenues generated from transac-
tions with other constituent entities;
(ii) Revenues not generated from trans-
actions with other constituent entities;
(iii) Profit or loss before income tax;
(iv) Total income tax paid on a cash
basis to all tax jurisdictions, and any taxes
withheld on payments received by the
constituent entities;
(v) Total accrued taxexpense re-
corded on taxable profits or losses, re-
flecting only operations in the relevant
annual accounting period and excluding
deferred taxes or provisions for uncer-
tain tax liabilities;
(vi) Stated capital of all the constituent
entities, except that the stated capital of a
permanent establishment must be reported
by the legal entity of which it is a perma-
nent establishment unless there is a de-
fined capital requirement in the permanent
establishment tax jurisdiction for regula-
tory purposes;
(vii) Total accumulated earnings, ex-
cept that accumulated earnings of a per-
manent establishment must be reported by
the legal entity of which it is a permanent
establishment;
(viii) Total number of employees on a
full-time equivalent basis in the relevant
tax jurisdiction; and
(ix) Net book value of tangible assets
other than cash or cash equivalents.
(3)Special rules—(i)Constituent en-
tity with no tax jurisdiction of residence.
The information listed in paragraph (d)(2)
of this section also must be provided, in
the aggregate, for any constituent entity or
entities that have no tax jurisdiction of
residence.
(ii)Definition of revenue. For purposes
of this section, the term revenue in-
cludes all amounts of revenue, including
revenue from sales of inventory and
property, services, royalties, interest,
and premiums. The term revenue does
not include payments received from
other constituent entities that are treated
as dividends in the payor’s tax jurisdic-
tion of residence.
(iii)Number of employees. For pur-
poses of this section, the number of em-
ployees on a full-time equivalent basis
may be reported as of the end of the
accounting period, on the basis of average
employment levels for the annual ac-
counting period, or on any other reason-
able basis consistently applied across tax
jurisdictions and from year to year. Inde-
pendent contractors participating in the
ordinary operating activities of a constit-
uent entity may be reported as employees
of such constituent entity. Reasonable
rounding or approximation of the number
of employees is permissible, provided that
such rounding or approximation does not
materially distort the relative distribution
of employees across the various tax juris-
dictions. Consistent approaches should be
applied from year to year and across en-
tities.
(iv)Income tax paid and accrued tax
expense of permanent establishment.In
the case of a constituent entity that is a
permanent establishment, the amount of
income tax paid and the amount of ac-
crued tax expense referred to in para-
graphs (d)(2)(iv) and (v) of this section
should not include the income tax paid or
tax expense accrued by the business entity
of which the permanent establishment
would be a part but for the second sen-
tence of paragraph (b)(2) of this section in
that business entity’s tax jurisdiction of
residence on the income derived by the
permanent establishment.
(v)Certain transportation income.Ifa
constituent entity of a U.S. MNE group
derives income from international trans-
portation or transportation in inland wa-
terways that is covered by income tax
convention provisions that are specific to
such income and under which the taxing
rights on such income are allocated exclu-
sively to one tax jurisdiction, then the U.S.
MNE group should report the information
required under paragraph (d)(2) of this
section with respect to such income for
the tax jurisdiction to which the relevant
income tax convention provisions allocate
these taxing rights.
(e)Reporting of financial amounts.—
(1)Reporting in U.S. dollars required. All
amounts furnished under paragraph (d)(2)
of this section, other than paragraph
(d)(2)(viii) of this section, must be ex-
pressed in U.S. dollars. If an exchange
rate is used other than in accordance with
U.S. generally accepted accounting prin-
ciples for conversion to U.S. dollars, the
exchange rate must be indicated.
(2)Sources of financial amounts. All
amounts furnished under paragraph (d)(2)
of this section, other than paragraph
(d)(2)(viii) of this section, should be based
on applicable financial statements, books
and records maintained with respect to the
constituent entity, or records used for tax
reporting purposes.
(f)Time and manner for filing. Returns
on Form XXXX,Country-by-Country Re-
port, required under paragraph (a) of this
section for a taxable year will be filed with
the ultimate parent entity’s income tax
return for the taxable year on or before the
due date (including extensions) for filing
that person’s income tax return.
(g)Maintenance of records. The U.S.
person filing Form XXXX,Country-by-
Country Report, as an ultimate parent en-
tity of a U.S. MNE group must maintain
records to support the information pro-
vided on Form XXXX,Country-by-
Country Report. However, the U.S. per-
son is not required to have or maintain
records that reconcile the amounts pro-
vided on Form XXXX,Country-by-
Country Report,with the tax returns of
any tax jurisdiction or applicable financial
statements.
(h)Exceptions to furnishing informa-
tion. A U.S. person that is an ultimate
parent entity of a U.S. MNE group is not
required to report information under this
section for an annual accounting period
described in paragraph (c) of this section
if the annual revenue of the U.S. MNE
group for the immediately preceding an-
Bulletin No. 2016 –14April 4, 2016
543

nual accounting period was less than
$850,000,000.
(j)Effective/applicability dates. The
rules of this section apply to taxable years
of ultimate parent entities of U.S. MNE
groups that begin on or after the date of
publication of the Treasury decision
adopting these rules as final regulations in
theFederal Registerand that include an-
nual accounting periods determined under
section 6038(e)(4) of all foreign constitu-
ent entities and taxable years of all domes-
tic constituent entities beginning on or
after the date of publication of the Trea-
sury decision adopting these rules as final
regulations in theFederal Register.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
(Filed by the Office of the Federal Register on December 21,
2015, 4:15 p.m., and published in the issue of the Federal
Register for December 23, 2015, 80 F.R. 79795)
April 4, 2016Bulletin No. 2016 –14
544

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:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified andclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
supersededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
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 following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2016 –14April 4, 2016
i

Numerical Finding List
1
Bulletins 2016–1 through 2016–14
Announcements:
2016-1, 2016-3 I.R.B.283
2016-2, 2016-3 I.R.B.283
2016-3, 2016-4 I.R.B.294
2016-4, 2016-6 I.R.B.313
2016-5, 2016-8 I.R.B.356
2016-6, 2016-10 I.R.B.409
2016-7, 2016-8 I.R.B.356
2016-8, 2016-9 I.R.B.367
2016-9, 2016-9 I.R.B.367
2016-10, 2016-9 I.R.B.367
2016-11, 2016-10 I.R.B.411
2016-13, 2016-13 I.R.B.514
2016-14, 2016-14 I.R.B.535
Notices:
2016-1, 2016-2 I.R.B.265
2016-2, 2016-2 I.R.B.265
2016-3, 2016-3 I.R.B.278
2016-4, 2016-3 I.R.B.279
2016-5, 2016-6 I.R.B.302
2016-6, 2016-4 I.R.B.287
2016-7, 2016-5 I.R.B.296
2016-8, 2016-6 I.R.B.304
2016-9, 2016-6 I.R.B.306
2016-10, 2016-6 I.R.B.307
2016-11, 2016-6 I.R.B.312
2016-12, 2016-6 I.R.B.312
2016-13, 2016-7 I.R.B.314
2016-14, 2016-7 I.R.B.315
2016-15, 2016-13 I.R.B.486
2016-16, 2016-7 I.R.B.318
2016-17, 2016-9 I.R.B.358
2016-18, 2016-9 I.R.B.359
2016-19, 2016-9 I.R.B.362
2016-20, 2016-9 I.R.B.362
2016-21, 2016-12 I.R.B.465
2016-22, 2016-13 I.R.B.488
2016-23, 2016-13 I.R.B.490
2016-24, 2016-13 I.R.B.492
2016-25, 2016-13 I.R.B.493
2016-26, 2016-14 I.R.B.533
Proposed Regulations:
REG-118867-10, 2016-10 I.R.B.411
REG-147310-12, 2016-7 I.R.B.336
REG-150349-12, 2016-11 I.R.B.440
REG-138344-13, 2016-4 I.R.B.294
REG-123867-14, 2016-12 I.R.B.484
REG-125761-14, 2016-7 I.R.B.322
REG-100861-15, 2016-8 I.R.B.356
REG-109822-15, 2016-14 I.R.B.535
REG-127923-15, 2016-12 I.R.B.473
REG-129067-15, 2016-10 I.R.B.421
Proposed Regulations:—Continued
REG-134122-15, 2016-7 I.R.B.334
REG-101701-16, 2016-9 I.R.B.368
Revenue Procedures:
2016-1, 2016-1 I.R.B.1
2016-2, 2016-1 I.R.B.102
2016-3, 2016-1 I.R.B.126
2016-4, 2016-1 I.R.B.142
2016-5, 2016-1 I.R.B.188
2016-6, 2016-1 I.R.B.200
2016-7, 2016-1 I.R.B.239
2016-8, 2016-1 I.R.B.243
2016-10, 2016-2 I.R.B.270
2016-11, 2016-2 I.R.B.274
2016-13, 2016-4 I.R.B.290
2016-14, 2016-9 I.R.B.365
2016-16, 2016-10 I.R.B.394
2016-15, 2016-11 I.R.B.435
2016-17, 2016-11 I.R.B.436
2016-19, 2016-13 I.R.B.497
2016-20, 2016-13 I.R.B.499
2016-21, 2016-14 I.R.B.533
Revenue Rulings:
2016-1, 2016-2 I.R.B.262
2016-2, 2016-4 I.R.B.284
2016-3, 2016-3 I.R.B.282
2016-4, 2016-6 I.R.B.299
2016-5, 2016-8 I.R.B.344
2016-6, 2016-14 I.R.B.519
2016-7, 2016-10 I.R.B.391
2016-8, 2016-11 I.R.B.426
2016-9, 2016-14 I.R.B.530
Treasury Decisions:
9745, 2016-2 I.R.B.256
9746, 2016-14 I.R.B.515
9748, 2016-8 I.R.B.347
9749, 2016-10 I.R.B.373
9750, 2016-10 I.R.B.374
9751, 2016-10 I.R.B.379
9752, 2016-10 I.R.B.385
9753, 2016-11 I.R.B.426
9754, 2016-11 I.R.B.432
9755, 2016-12 I.R.B.442
9756, 2016-12 I.R.B.450
9757, 2016-12 I.R.B.462
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–27 through 2015–52 is in Internal Revenue Bulletin
2015–52, dated December 28, 2015.
April 4, 2016Bulletin No. 2016 –14
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2016–1 through 2016–14
Announcements:
2007-21
Modified by
Ann. 2016-1, 2016-3 I.R.B.283
Notices:
2005-50
Modified by
Notice 2016-2, 2016-2 I.R.B.265
2007-59
Revoked by
Notice 2016-16, 2016-7 I.R.B.318
2013-54
Supplemented by
Notice 2016-17, 2016-9 I.R.B.358
2014-79
Superseded by
Notice 2016-1, 2016-2 I.R.B.265
2015-52
Supplemented by
Notice 2016-17, 2016-9 I.R.B.358
2015-87
Supplemented by
Notice 2016-17, 2016-9 I.R.B.358
Revenue Procedures:
2003-36
Superseded by
Rev. Proc. 2016-19, 2016-13 I.R.B.497
2014-56
Superseded by
Rev. Proc. 2016-20, 2016-13 I.R.B.499
2015-1
Superseded by
Rev. Proc. 2016-2, 2016-1 I.R.B.1
2015-2
Superseded by
Rev. Proc. 2016-2, 2016-1 I.R.B.102
2015-3
Superseded by
Rev. Proc. 2016-3, 2016-1 I.R.B.126
2015-5
Superseded by
Rev. Proc. 2016-5, 2016-1 I.R.B.142
Revenue Procedures:—Continued
2015-7
Superseded by
Rev. Proc. 2016-7, 2016-1 I.R.B.188
2015-8
Superseded by
Rev. Proc. 2016-8, 2016-1 I.R.B.200
2015-9
Superseded by
Rev. Proc. 2016-5, 2016-1 I.R.B.239
2015-10
Superseded by
Rev. Proc. 2016-10, 2016-2 I.R.B.270
2015-22
Superseded by
Rev. Proc. 2016-8, 2016-01 I.R.B.243
2015-53
Modified by
Rev. Proc. 2016-11, 2016-2 I.R.B.274
Revenue Rulings:
2005-3
Modified by
Rev. Rul. 2016-8, 2016-11 I.R.B.426
2008-15
Revoked by
Rev. Rul. 2016-3, 2016-3 I.R.B.282
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–27 through 2015–52 is in Internal Revenue Bulletin
2015–52, dated December 28, 2015.
Bulletin No. 2016 –14April 4, 2016
iii

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