Internal Revenue Bulletin 2011-3 (PDF rendition): IRS Notices

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Bulletin No. 201
1-3
January 17, 2011
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
T.D. 9507, page 305.
Final and temporary regulations under section 6302 of the
Code relate to Federal Tax Deposits (FTDs) by Electronic Funds
Transfer (EFT) and provide rules requiring depositors to use EFT
for all FTDs and eliminate rules regarding FTD coupons.
Notice 2011–5, page 314.
This notice modifies in part Notice 2010–59, 2010–39 I.R.B.
396, to allow the use of health FSA and HRA debit cards to
purchase over-the-counter drugs that are prescribed. Notice
2010–59 modified.
EXEMPT ORGANIZATIONS
T.D. 9507, page 305.
Final and temporary regulations under section 6302 of the
Code relate to Federal Tax Deposits (FTDs) by Electronic Funds
Transfer (EFT) and provide rules requiring depositors to use EFT
for all FTDs and eliminate rules regarding FTD coupons.
Rev. Proc. 2011–15, page 322.
This procedure provides that exempt organizations (other than
private foundations or section 509(a)(3) supporting organiza-
tions) that normally have annual gross receipts of not more
than $50,000 are not required to file an annual information
return on Form 990 for taxable years beginning on or after
January 1, 2010. Those organizations must file an annual
electronic notice under section 6033(i). Rev. Procs. 83–23,
94–17, and 2003–21 modified and superseded.
Announcement 2011–2, page 324.
The IRS has revoked its determination that the Northwest Con-
servation Stewardship Fund of Seattle, WA, qualifies as an or-
ganization described in sections 501(c)(3) and 170(c)(2) of the
Code.
Announcement 2011–3, page 324.
A list is provided of organizations now classified as private foun-
dations.
EMPLOYMENT TAX
T.D. 9507, page 305.
Final and temporary regulations under section 6302 of the
Code relate to Federal Tax Deposits (FTDs) by Electronic Funds
Transfer (EFT) and provide rules requiring depositors to use EFT
for all FTDs and eliminate rules regarding FTD coupons.
SELF-EMPLOYMENT TAX
T.D. 9507, page 305.
Final and temporary regulations under section 6302 of the
Code relate to Federal Tax Deposits (FTDs) by Electronic Funds
Transfer (EFT) and provide rules requiring depositors to use EFT
for all FTDs and eliminate rules regarding FTD coupons.
(Continued on the next page)
Finding Lists begin on page ii.

EXCISE TAX
T.D. 9507, page 305.
Final and temporary regulations under section 6302 of the
Code relate to Federal Tax Deposits (FTDs) by Electronic Funds
Transfer (EFT) and provide rules requiring depositors to use EFT
for all FTDs and eliminate rules regarding FTD coupons.
ADMINISTRATIVE
Notice 2011–6, page 315.
This notice provides guidance regarding the requirement to ob-
tain a preparer tax identification number (PTIN) and interim rules
applicable during the implementation of new regulations gov-
erning tax return preparers.
Rev. Proc. 2011–13, page 318.
This procedure updates Rev. Proc. 2010–15 and identifies cir-
cumstances under which the disclosure on a taxpayer’s income
tax return with respect to an item or a position is adequate for
the purpose of reducing the understatement of income tax un-
der section 6662(d) of the Code and for the purpose of avoid-
ing the tax return preparer penalty under section 6694(a) with
respect to income tax returns. Rev. Proc. 2010–15 updated.
January 17, 20112011–3 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2011–3 I.R.B.January 17, 2011

January 17, 20112011–3 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 6302.
—Mode or
Time of Collec
tion
26 CFR 1.6302–1: Deposit rules for corporation in-
come and estimated income taxes and certain taxes
of tax-exempt organizations.
T.D. 9507
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Parts 1, 31, 40, and
301
Electronic Funds Transfer of
Depository Taxes
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Temporary and final regula-
tions.
SUMMARY: This document contains
temporary and final regulations relating to
Federal tax deposits (FTDs) by Electronic
Funds Transfer (EFT). In response to the
decision of the Financial Management
Service to discontinue the system that
processes FTD coupons, the temporary
and final regulations provide rules under
which depositors must use EFT for all
FTDs and eliminate the rules regarding
FTD coupons. The temporary and final
regulations affect all taxpayers that are
required to make FTDs, in particular those
taxpayers that currently use FTD coupons.
DATES:Effective Date:These regulations
are effective on January 1, 2011.
Applicability Date:For dates
of applicability, see §§1.6302–1(d),
1.6302–2(g), 1.6302–3(d), 1.6302–4(b),
31.6071(a)–1(g),31.6302–1(o),
31.6302–1T(n),31.6302–2(d),
31.6302–4(e),31.6302(c)–3(c),
40.6302(c)–1(f),40.6302(c)–2(c),
40.6302(c)–3(g), 301.6302–1(c), and
301.6656–1(c).
FOR
FURTHER INFORMATION
CON
TACT: Michael E. Hara, (202)
622
–4910 (not a toll-free number).
SUPPLEMENTAR
Y INFORMATION:
Background
This document
contains final regula-
tions amendin
g the Income Tax Regula-
tions (26 CFR p
art 1) and the Regulations
on Procedure
and Administration (26 CFR
part 301), an
d temporary and final regula-
tions amendi
ng the Employment Tax and
Collection o
f Income Tax at Source Reg-
ulations (26
CFR part 31), and the Excise
Tax Procedu
ral Regulations (26 CFR part
40), to requ
iretheuseofEFTforallFTDs
andtoelimi
nate the rules regarding FTD
coupons.
On August 23
, 2010, the Treasury
Department
and IRS published in the
Federal Re
gister(75 FR 51707) pro-
posed amen
dments to the regulations
(REG–1533
40–09, 2010–42 I.R.B. 469)
to require
EFT for all FTDs and to elim-
inate the
rules regarding FTD coupons.
Written p
ublic comments responding to
the propo
sed regulations were received.
No public
hearing was held because the
IRS did n
ot receive any requests to speak
at the pu
blic hearing.
After co
nsideration of all the com-
ments, t
he proposed regulations are
adopted
as revised by this Treasury deci-
sion.
Explana
tion of Provisions and
Summary
of Comments
1.Burde
n on Small Businesses
Many com
mentators expressed the con-
cern th
at eliminating FTD coupons would
burden
small businesses. To help allevi-
ate thi
s perceived burden on small busi-
ness, t
he regulations do not change the ex-
isting
de minimisdeposit rules allowing
taxpay
ers with tax liabilities under certain
thres
holds to make a payment with a re-
turn.
For example, under thede minimis
depos
it rules for employment taxes, that is,
socia
l security taxes, Medicare taxes, and
withh
eld income taxes, an employer with
adep
osit liability of less than $2,500 for
aret
urn period may (1) remit employment
taxe
s with their quarterly or annual tax re-
turn
, (2) voluntarily make deposits by EFT,
or (3
) use other methods of payment as
provided by th
e instructions relating to the
return.
Several comme
ntators asserted that
many small bus
inesses will have difficulty
using EFT beca
use they lack computers
or internet a
ccess. Businesses without a
computer may
use the ACH debit option,
which requir
es only a telephone call, to
scheduleapa
yment through the Electronic
Federal Tax
Payment System (EFTPS),
an authoriz
ed method of EFT pursuant
to §31.6302
–1(h)(4). To assist taxpayers
new to EFTPS
, United States-based live
operator c
ustomer support is available
toll-free
24 hours a day, year-round.
Acommenta
tor stated that requiring
EFTPS will
likely result in an increase in
user error
s based on taxpayers’ computer
illiterac
y. Another commentator stated
that requ
iring EFTPS will produce exces-
sive cost
s in payment delays and requests
for penal
ty abatement. According to IRS
research
, however, employers who pay
electron
ically are 31 times less likely to
make an er
ror that results in interest or
penalti
es than employers who use FTD
coupons
.
Several
commentators expressed a re-
luctanc
e to move away from the FTD
coupon s
ystem based on taxpayers’ famil-
iarity w
ith the current system and the re-
lation
ships they have developed with their
local b
anks. In deciding to discontinue
the FTD
coupon system, the Financial
Manage
ment Service (FMS) considered
curren
t market conditions. In the last
18 mon
ths, more than 100 financial in-
stitu
tions, large and small, have stopped
accep
ting FTD coupons. In many states,
few fi
nancial institutions still process FTD
coupo
ns. Additionally, many states now
requ
ire employers to file or pay their state
busi
ness taxes electronically.
2.Alt
ernative Payment Methods
Sever
al commentators requested con-
tinue
d use of FTD coupons or the avail-
abili
ty of alternative payment methods.
Thes
e final regulations conform to the
deci
sion by FMS to eliminate the sys-
tem t
hat enables the processing of FTD
coup
ons. As discussed above, many fi-
nanc
ial institutions no longer accept FTD
2011–3 I.R.B.305January 17, 2011

coupons. If businesses are unwilling or
unable to use EFTPS, they can arrange for
a tax professional, financial institution,
payroll service, or other trusted third party
to make a deposit on their behalf using
a master account. Businesses also can
arrange for their financial institution to
initiate a same-day tax wire payment on
their behalf.
One commentator requested that the
IRS continue to allow taxpayers to make
payments by sending a check or money
order to an IRS address when a new entity
has applied for, but has not received, an
employer identification number (EIN).
The time it takes to receive an EIN, how-
ever, should no longer be an impediment
to using EFTPS. Businesses within the
United States or U.S. territories can apply
for an EIN online using the IRS website.
Once the application is completed, the
information is validated during the online
session, and an EIN is issued immediately.
United States and international applicants
mayalsoobtainanEINinstantlyusingthe
telephone.
3.Raising the De Minimis Amounts
Several commentators requested rais-
ing thede minimisamounts above $2,500
for payments that may be made with a
return. Thede minimisdeposit rules,
however vary according to the type of tax
involved. For example, thede minimis
threshold is less than $2,500 per quarter for
Form 720,Quarterly Federal Excise Tax
Return, under §40.6302(c)–1(e)(3), but
less than $200 per calendar year for Form
1042,Annual Withholding Tax Return for
U.S. Source Income of Foreign Persons,
under §1.6302–2(a)(1)(iv). Changing the
existingde minimisdeposit rules would
create additional complexity and confu-
sion for taxpayers, would upset the current
established regulatory scheme, and unduly
complicate enforcement of EFTPS.
4.Security and Distrust of Electronic
Payment Systems
Several commentators expressed a dis-
trust of electronic payment systems and
their security. EFTPS is a safe and secure
tax payment system. Online payments re-
quire three unique types of information for
authentication: a Taxpayer Identification
Number, a Personal Identification Number
(PIN), and an Internet password. EFTPS
provides an instant, printable confirma-
tion number for every payment scheduled.
Payments scheduled by phone require a
taxpayer identification number and a PIN.
Taxpayers who schedule an FTD by phone
will receive an eight digit acknowledge-
ment number for future reference.
Moreover, IRS will only receive confir-
mation that the payment was made. The
IRS will not have access to any taxpayer’s
financial account. Businesses that do not
wish to use EFTPS can arrange for their
tax professional, financial institution, pay-
roll service, or other trusted third party to
make an FTD on their behalf using a mas-
ter account. Businesses also may arrange
for their financial institution to initiate a
same-day tax wire payment for them.
5.EFTPS Registration
Several commentators asserted that
EFTPS registration is time-consuming,
should be easier to use, and should make
EFTPS available immediately. All tax-
payers now using FTD coupons will be
pre-enrolled in Treasury’s free EFTPS.
When they receive notification of pre-en-
rollment, they can use the phone or Internet
to activate their PIN, enter their financial
account information, and begin scheduling
payments on the same day.
One commentator asked the IRS to
change the EFTPS enrollment process to
include a variable to identify fiscal tax
year taxpayers because EFTPS sometimes
rejects payments by entities that operate on
a fiscal tax year due to tax year-end mis-
matches. This suggestion was not adopted
because the IRS already autocorrects pay-
ments for fiscal year taxpayers. When
a taxpayer schedules an FTD through
EFTPS, the system will ask the taxpayer
to select the year and quarter to which the
payment should be applied. This process
should ensure that EFTPS payments are
applied correctly.
6.Foreign Taxpayers
One commentator stated that U.S.
banks are reluctant to open U.S. bank ac-
counts for foreign corporations. Another
commentator asserted that it is difficult
for a U.S. citizen residing abroad to open
or maintain a U.S. bank account. This
commentator suggested that the IRS adapt
the registration form and EFTPS software
to allow for payments to the IRS from
foreign bank accounts, and that the Trea-
sury Department and IRS issue regulations
requiring U.S. banks to open U.S. bank
accounts for U.S. citizens residing abroad
with a foreign address. These sugges-
tions were not adopted. Foreign taxpayers
may arrange for their financial institution
to initiate a same-day wire payment on
their behalf. Foreign taxpayers may also
arrange for their qualified intermediary,
tax professional, payroll service, or other
trusted third party to make a deposit on
their behalf using a master account.
7.One-Day Rule
A commentator requested clarification
of the One-Day Rule in §31.6302–1(c) and
Example 4in §31.6302–1(d). The com-
mentator argued that the One-Day Rule
should be applied only when an employer
has accumulated $100,000 or more in un-
deposited employment taxes within the de-
posit period applicable to its status as a
monthly or semi-weekly depositor and that
Example 4should be modified consistent
with this result. These suggestions were
not adopted. The commentator misinter-
prets the existing rules, which use accumu-
lated taxes rather than undeposited taxes to
determine the application of the One-Day
rule. The proposed rules merely updated
the existing rules and examples to be con-
sistent with the elimination of the FTD
coupon system and did not modify this as-
pect of the existing rules.
Example 4in the proposed regulations
correctly illustrates how the One-Day Rule
applies in combination with a subsequent
deposit obligation.Example 4involves
Employer D, a depositor subject to the
semi-weekly rule for calendar year 2011.
On Monday, January 10, 2011, D accu-
mulates $115,000 in employment taxes.
Because D has accumulated $100,000 or
more in employment taxes, the One-Day
Rule applies, and D therefore must de-
posit the $115,000 in employment taxes
by the next business day, which is Tues-
day, January 11, 2011. On Tuesday, Jan-
uary 11, 2011, D accumulates an additional
$30,000 in employment taxes. Because
the $115,000 in employment taxes accu-
mulated on Monday is already subject to
the One-Day Rule, there are no other ac-
cumulated taxes to be taken into account in
determining D’s deposit obligation for the
additional $30,000 in employment taxes
January 17, 20113062011–3 I.R.B.

accumulated on Tuesday. Therefore, D has
an additional and separate deposit obliga-
tion of $30,000 on Tuesday that must be
satisfied by the following Friday. This ex-
ample is adopted in the final regulations
without change.
8.Delay the January 1, 2011 Effective
Date
Several commentators requested a de-
lay in the effective date of these temporary
and final regulations. These regulations
implement the decision of FMS to elimi-
nate the system that enables the process-
ing of FTD coupons as of January 2011. In
order to facilitate the transition from FTD
coupons, all taxpayers now using coupons
will be pre-enrolled in EFTPS. The IRS
has begun notifying taxpayers of the up-
coming changes and, upon publication of
these regulations, will increase efforts to
notify affected taxpayers of the EFT re-
quirement. Since April 2010, the Depart-
ment of Treasury and IRS have been reach-
ing out to critical external stakeholders, in-
cluding the Small Business Administration
and financial institutions and their associa-
tions, about the pending FTD changes, and
will continue to offer informational ses-
sions and free marketing materials to as-
sist external stakeholders in informing and
educating taxpayers about the new require-
ments.
9.Business Days and Legal Holidays
Prior to the advent of EFTPS, taxpayers
made FTDs using an FTD coupon at a gov-
ernment depository bank. Because FTDs
could only be made on days the banks were
open, the timeliness of deposits under sec-
tion 6302 was determined by reference to
banking days. Furthermore, because many
banks are closed on statewide legal holi-
days, the IRS treated statewide legal hol-
idays as legal holidays in determining the
timeliness of deposits.
Since a taxpayer will no longer be able
to use a government depository bank to
make an FTD using an FTD coupon, these
regulations remove references to “bank-
ing days” and instead determine the time-
liness of deposits by reference to “busi-
ness days,” meaning every calendar day
that is not a Saturday, Sunday, or legal hol-
iday under section 7503. Additionally, be-
cause EFTPS is available 24 hours a day,
seven days a week, the final regulations
provide that, consistent with section 7503,
the term “legal holiday” for FTD purposes
includes only those legal holidays in the
District of Columbia. Thus, a statewide le-
gal holiday will no longer be considered a
legal holiday unless the holiday coincides
with a legal holiday in the District of Co-
lumbia. The following days are currently
legal holidays in the District of Colum-
bia: New Year’s Day, Birthday of Mar-
tin Luther King, Jr., Washington’s Birth-
day, District of Columbia Emancipation
Day, Memorial Day, Independence Day,
Labor Day, Columbus Day, Veteran’s Day,
Thanksgiving Day, Christmas Day, and the
day of the inauguration of the President, in
every fourth year. The final regulations in-
clude several minor changes from the pro-
posed regulations to reflect this applica-
tion of the legal holiday rule and provide
an additional example to illustrate it. See
§31.6302–1(d)Example 5.
A separate notice is being issued with
these final regulations to provide transi-
tional relief. Notice 2010–87 states that
the IRS will not assert penalties for FTDs
made in 2011 that would be considered
timely if statewide legal holidays were
taken into account.
10.Other Differences from the Proposed
Regulations
In addition to the changes described
earlier in this preamble, the final regu-
lations include four minor revisions that
vary from the text of the proposed reg-
ulations. Sections 31.6071(a)–1(a) and
(c) are revised, consistent with the intent
of the proposed regulations, to eliminate
the rules for FTD coupons. The table of
contents in §31.6302–0 was updated to
reflect the changes to the regulation head-
ings. The heading to §40.6302(c)–1T has
been revised to remove the reference to
government depositaries. Additionally,
§40.6302(c)–3 is further revised to illus-
trate the computation of the three business
day rule for excise taxes when an inter-
vening day is a holiday consistent with the
rules in §31.6302–1(c)(2)(iii) for employ-
ment taxes.
Special Analyses
It has been determined that this final
rule is not a significant regulatory action
as defined in Executive Order 12866.
Therefore, a regulatory assessment is not
required. It also has been determined that
section 553(b) of the Administrative Pro-
cedure Act (5 U.S.C. chapter 5) does not
apply to these regulations and because
these regulations do not impose a col-
lection of information on small entities,
the Regulatory Flexibility Act (5 U.S.C.
chapter 6) does not apply.
Pursuant to section 7805(f) of the Code,
the notice of proposed rulemaking preced-
ing these regulations was submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment on
its impact on small business.
Drafting Information
The principal author of these final reg-
ulations is Michael E. Hara, Office of the
Associate Chief Counsel (Procedure and
Administration).
*****
Amendments to the Regulations
Accordingly, 26 CFR parts 1, 31, 40,
and 301 are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by revising the entries
for sections 1.6302–1 through 1.6302–4 to
read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Sections 1.6302–1, 1.6302–2, 1.6302–3
and 1.6302–4 also issued under 26 U.S.C.
6302(h). * * *
Par. 2. Section 1.1461–1 is amended by
revising paragraph (a)(1), first sentence, to
read as follows:
§1.1461–1 Payment and returns of tax
withheld.
(a)Payment of withheld tax—(1)De-
posits of tax. Every withholding agent
who withholds tax pursuant to chapter 3 of
the Internal Revenue Code (Code) and the
regulations under such chapter shall de-
posit such amount of tax as provided in
§1.6302–2(a). * * *
*****
Par. 3. Section 1.6302–1 is amended
by:
1. Revising the heading.
2011–3 I.R.B.307January 17, 2011

2. Revising paragraph (a).
3. Removing paragraph (b)(1), redes-
ignating paragraph (b)(2) as paragraph (b),
and revising the heading for paragraph (b).
4. Removing paragraph (c).
5. Redesignating paragraph (d) as para-
graph (c).
6. Adding paragraph (d).
The revisions and additions read as fol-
lows:
§1.6302–1 Deposit rules for corporation
income and estimated income taxes and
certain taxes of tax-exempt organizations.
(a)Requirement. A corporation, any
organization subject to the tax imposed
by section 511, and any private founda-
tion subject to the tax imposed by section
4940, shall deposit all payments of tax im-
posed by chapter 1 of the Internal Revenue
Code (or treated as so imposed by section
6154(h)), including any payments of esti-
mated tax, on or before the date otherwise
prescribed for paying such tax. This para-
graph (a) does not apply to a foreign corpo-
ration or entity that has no office or place
of business in the United States.
(b)Deposits by electronic funds trans-
fer. ***
*****
(d)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
Par. 4. Section 1.6302–2 is amended
by:
1. Revising the heading.
2. Revising paragraphs (a)(1)(i), (ii),
and (iv).
3. Revising the heading for paragraph
(b).
4. Revising paragraph (b)(1).
5. Removing paragraph (b)(6).
6. Adding a sentence to the end of para-
graph (g).
The revisions and additions read as fol-
lows:
§1.6302–2 Deposit rules for tax withheld
on nonresident aliens and foreign
corporations.
(a)Time for making deposits—(1)De-
posits—(i)Monthly deposits. Except as
provided in paragraphs (a)(1)(ii) and (iv)
of this section, every withholding agent
that, pursuant to chapter 3 of the Inter-
nal Revenue Code, has accumulated at
the close of any calendar month an ag-
gregate amount of undeposited taxes of
$200 or more shall deposit such aggregate
amount by the 15
th
day of the following
month. However, the preceding sentence
shall not apply if the withholding agent
has made a deposit of taxes pursuant to
paragraph (a)(1)(ii) of this section to a
quarter-monthly period that occurred dur-
ing such month. If the 15
th
day of the
following month is a Saturday, Sunday, or
legal holiday in the District of Columbia
under section 7503, taxes will be treated as
timely deposited if deposited on the next
succeeding day which is not a Saturday,
Sunday, or legal holiday. With respect to
section 1446, this section applies only to
a publicly traded partnership described in
§1.1446–4.
(ii)Quarter-monthly deposits.Ifatthe
close of any quarter-monthly period within
a calendar month, the aggregate amount
of undeposited taxes required to be with-
held pursuant to chapter 3 of the Inter-
nal Revenue Code is $2,000 or more, the
withholding agent shall deposit such ag-
gregate amount within 3 business days af-
ter the close of such quarter-monthly pe-
riod. Business days include every calen-
dar day other than Saturdays, Sundays, or
legal holidays in the District of Columbia
under section 7503. If any of the three
weekdays following the close of a quar-
ter-monthly period is a legal holiday under
section 7503, the withholding agent has an
additional day for each day that is a legal
holiday by which to make the required de-
posit. For example, if the Monday follow-
ing the close of a quarter-monthly period
is New Year’s Day, a legal holiday, the re-
quired deposit for the quarter-monthly pe-
riod is not due until the following Thurs-
day rather than the following Wednesday.
*****
(iv)Annual deposits.Ifatthecloseof
December of each calendar year, the ag-
gregate amount of undeposited taxes re-
quired to be withheld pursuant to chapter
3 of the Internal Revenue Code is less than
$200, the withholding agent may deposit
such aggregate amount by March 15 of the
following calendar year. If such aggregate
amount is not so deposited, it shall be re-
mitted in accordance with paragraph (a)(1)
of §1.1461–1.
*****
(b)Manner of payment—(1)Payments
not required by electronic funds transfer.
A payment that is not required to be de-
posited by this section shall be made sep-
arately from a payment required by any
other section. The payment may be sub-
mitted with the filed return. The timeliness
of the payment will be determined by the
date payment is received by the Internal
Revenue Service at the place prescribed
for filing by regulations or forms and in-
structions, or if section 7502(a) applies, by
the date the payment is treated as received
under section 7502(a), or on the last day
prescribed for filing the return (determined
without regard to any extension of time
for filing the return), whichever is later.
Each withholding agent making payments
under this section shall report on the re-
turn, for the period to which such payments
are made, information regarding such pay-
ments according to the instructions that ap-
ply to such return.
*****
(g)***Paragraph(b)(1)ofthissection
applies to deposits and payments made af-
ter December 31, 2010.
Par. 5. Section 1.6302–3 is amended
by:
1. Revising the heading.
2. Revising paragraph (a).
3. Revising paragraph (c).
4. Adding paragraph (d).
The revisions and additions read as fol-
lows:
§1.6302–3 Deposit rules for estimated
taxes of certain trusts.
(a)Requirement. A bank or other finan-
cial institution described in paragraph (b)
of this section shall deposit all payments
of estimated tax under section 6654(l) with
respect to trusts for which such institution
acts as a fiduciary by the date otherwise
prescribed for paying such tax in the man-
ner set forth in published guidance, publi-
cations, forms and instructions.
*****
(c)Cross-references. For the require-
ment to deposit estimated tax payments of
taxable trusts by electronic funds transfer,
see §31.6302–1(h) of this chapter.
(d)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
January 17, 20113082011–3 I.R.B.

Par. 6. Section 1.6302–4 is revised to
read as follows:
§1.6302–4 Voluntary payments by
electronic funds transfer.
(a)Electronic funds transfer.Anyper-
son may voluntarily remit by electronic
funds transfer any payment of tax imposed
by subtitle A of the Internal Revenue Code,
including any payment of estimated tax.
Such payment must be made in the man-
ner set forth in published guidance, publi-
cations, forms and instructions.
(b)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
PART 31—EMPLOYMENT TAXES
AND COLLECTION OF INCOME TAX
AT THE SOURCE
Par. 7. The authority citation for
part 31 is amended by removing the en-
tries for sections 31.6071–1, 31.6302–1
through 6302–3, 31.6302–3, 31.6302–4,
31.6302(c)–2A and 31.6302(c)–3 and
adding entries in numerical order to read
in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 31.6071(a)–1 also issued under
26 U.S.C.6071.
*****
Section 31.6302–1 also issued under
26 U.S.C. 6302(a) and (h).
Section 31.6302–1T also issued under
26 U.S.C. 6302(a) and (h).
Section 31.6302–2, 31.6302–3, and
31.6302–4 also issued under 26 U.S.C.
6302(a) and (h).
Section 31.6302(c)–2A also issued un-
der 26 U.S.C. 6157(d) and 6302(a) and (h).
Section 31.6302(c)–3 also issued under
26 U.S.C. 6302(a) and (h). * * *
Par. 8. Section 31.6071(a)–1 is
amended by
1. Revising paragraphs (a)(1) and (c).
2. Adding paragraph (g).
The revisions and the addition read as
follows:
§31.6071(a)–1 Time for filing returns and
other documents.
(a)Federal Insurance Contributions
Act and income tax withheld from wages
and from nonpayroll payments—(1)Quar-
terly or annual returns. Except as pro-
vided in paragraph (a)(4) of this section,
each return required to be made under
§§31.6011(a)–1 and 31.6011(a)–1T, in re-
spect of the taxes imposed by the Federal
Insurance Contributions Act (26 U.S.C.
3101–3128), or required to be made un-
der §§31.6011(a)–4 and 31.6011(a)–4T,
in respect of income tax withheld, shall
be filed on or before the last day of the
first calendar month following the period
for which it is made. However, a return
may be filed on or before the 10
th
day of
the second calendar month following such
period if timely deposits under section
6302(c) of the Code and the regulations
have been made in full payment of such
taxes due for the period.
*****
(c)Federal Unemployment Tax Act.
Each return of the tax imposed by the Fed-
eral Unemployment Tax Act required to be
made under §31.6011(a)–3 shall be filed
on or before the last day of the first calen-
dar month following the period for which
it is made. However, a return may be filed
on or before the 10
th
day of the second
calendar month following such period if
timely deposits under section 6302(c) of
the Code and the regulations thereunder
have been made in full payment of such
taxes due for the period.
*****
(g)Effective/applicability date.The
elimination of the rules of paragraph (a)
and (c) of this section regarding the time-
liness of deposits apply to deposits and
payments made after December 31, 2010.
§31.6302–0 [Amended]
Par. 9. Section 31.6302–0 is amended
by revising the entries for §31.6302–1(c),
(c)(2), (c)(2)(iii), (c)(4), (h), (h)(2),
(h)(2)(ii), (h)(2)(iii), (i), (i)(3), (j), (n), and
§31.6302–2 (c) and (d), and by adding
entries for §31.6302–1 (h)(2)(iv) and (o)
and §31.6302–4 to read as follows:
§31.6302–0 Table of Contents.
*****
§31.6302–1 Deposit rules for taxes under
the Federal Insurance Contributions Act
(FICA) and withheld income taxes.
*****
(c) Deposit rules.
*****
(2) Semi-Weekly rule.
*****
(iii) Special rule for computing days.
*****
(4) Deposits required only on business
days.
*****
(h) Time and manner of deposit—de-
posits required to be made by electronic
funds transfer.
*****
(2) Applicability of requirement.
*****
(ii) Deposits for return periods begin-
ning after December 31, 1999, and made
before January 1, 2011.
(iii) Deposits made after December 31,
2010.
(iv) Voluntary deposits.
*****
(i) Time and manner of deposit.
*****
(3) Time deemed paid.
(j) Voluntary payments by electronic
funds transfer.
*****
(n) [Reserved]. For further guid-
ance, see §31.6302–0T, the entry for
§31.6302–1T(n).
(o) Effective/Applicability date.
§31.6302–2
Deposit rules for taxes
under the Ra
ilroad Retirement Tax Act
(R.R.T.A.)
.
*****
(c) Modification of Monthly rule deter-
mination.
*****
(d) Effective/Applicability date.
*****
§31.6302–4 Deposit rules for withheld
income taxes attributable to nonpayroll
taxes.
Par. 10. Section 31.6302–1 is amended
by:
1. Revising the heading.
2. Revising paragraphs (c)(1), (c)(2),
(c)(3), and (c)(4).
3. Revising paragraph (d),Example 1,
Example 2,Example 3,Example 4,and
Example 5.
4. Revising paragraph (h)(2)(ii).
2011–3 I.R.B.309January 17, 2011

5. Redesignating paragraph (h)(2)(iii)
as paragraph (h)(2)(iv) and revising
newly-designated paragraph (h)(2)(iv).
6. Adding new paragraphs (h)(2)(iii)
and (iv).
7. Revising paragraph (i)(1) and (i)(3).
8. Removing paragraphs (i)(4), (i)(5)
and (i)(6).
9. Adding paragraph (o).
The revisions and additions read as fol-
lows:
§31.6302–1 Deposit rules for taxes under
the Federal Insurance Contributions Act
(FICA) and withheld income taxes.
*****
(c)Deposit rules—(1)Monthly rule.
An employer that is a monthly depositor
must deposit employment taxes accu-
mulated with respect to payments made
during a calendar month by electronic
funds transfer by the 15
th
day of the fol-
lowing month. If the 15
th
day of the
following month is a Saturday, Sunday, or
legal holiday in the District of Columbia
under section 7503, taxes will be treated as
timely deposited if deposited on the next
succeeding day which is not a Saturday,
Sunday, or legal holiday.
(2)Semi–Weekly rule—(i)In general.
An employer that is a semi-weekly depos-
itor for a calendar year must deposit em-
ployment taxes by electronic funds trans-
fer by the dates set forth below:
Payment dates/semi-weekly periodsDeposit date
(A) Wednesday, Thursday and/or FridayOn or before the following Wednesday.
(B) Saturday, Sunday, Monday and/or TuesdayOn or before the following Friday.
(ii)
Semi-weekly period spanning two
retu
rn periods. If the return period ends
dur
ing a semi-weekly period in which an
emp
loyer has two or more payment dates,
two
deposit obligations may exist. For ex-
amp
le, if one quarterly return period ends
on T
hursday and a new quarterly return pe-
ri
od begins on Friday, employment taxes
fr
om payments on Wednesday and Thurs-
da
y are subject to one deposit obligation,
an
d employment taxes from payments on
Fr
iday are subject to a separate deposit
ob
ligation. Two separate federal tax de-
p
osits are required.
(i
ii)Special rule for computing days.
S
emi-weekly depositors have at least three
b
usiness days following the close of the
s
emi-weekly period by which to deposit
e
mployment taxes accumulated during the
s
emi-weekly period. Business days in-
clude every calendar day other than Sat-
urdays, Sundays, or legal holidays in the
District of Columbia under section 7503.
If any of the three weekdays following
the close of a semi-weekly period is a
legal holiday, the employer has an addi-
tional day for each day that is a legal hol-
idaybywhichtomaketherequiredde-
posit. For example, if the Monday fol-
lowing the close of a Wednesday to Fri-
day semi-weekly period is Memorial Day,
a legal holiday, the required deposit for the
semi-weekly period is not due until the fol-
lowing Thursday rather than the following
Wednesday.
(3)Exception—One-Dayrule.
Notwithstanding paragraphs (c)(1) and
(c)(2) of this section, if on any day within
a deposit period (monthly or semi-weekly)
an em
ployer has accumulated $100,000
or mo
re of employment taxes, those taxes
mus
t be deposited by electronic funds
tra
nsfer in time to satisfy the tax obliga-
tio
n by the close of the next day. If the
nex
t day is a Saturday, Sunday, or legal
hol
iday in the District of Columbia under
se
ction 7503, the taxes will be treated as
ti
mely deposited if deposited on the next
su
cceeding day which is not a Saturday,
Su
nday, or legal holiday. For purposes of
de
termining whether the $100,000 thresh-
ol
dismet—
(i
) A monthly depositor takes into ac-
co
unt only those employment taxes accu-
m
ulated in the calendar month in which the
d
ay occurs; and
(
ii) A semi-weekly depositor takes into
a
ccount only those employment taxes ac-
c
umulated in the Wednesday–Friday or
S
aturday–Tuesday semi-weekly period in
w
hich the day occurs.
(
4)Deposits required only on business
d
ays. No taxes are required to be deposited
under this section on any day that is a Sat-
urday, Sunday, or legal holiday. Deposits
are required only on business days. Busi-
ness days include every calendar day other
than Saturdays, Sundays, or legal holidays.
For purposes of this paragraph (c), legal
holidays shall have the same meaning pro-
vided in section 7503. Pursuant to sec-
tion 7503, the term legal holiday means
a legal holiday in the District of Colum-
bia. For purposes of this paragraph (c), the
term “legal holiday” does not include other
Statewide legal holidays.
*****
(d) * * *
Exam
ple 1. Monthly depositor.(i)Determination
of status.For calendar year 2011, Employer A deter-
mines its depositor status using the lookback period
Jul
y 1, 2009 to June 30, 2010. For the four calen-
dar quarters within this period, A reported aggregate
employment tax liabilities of $42,000 on its quarterly
For
ms 941. Because the aggregate amount did not
exceed $50,000, A is a monthly depositor for the en-
tire calendar year 2011.
(ii
)Monthly rule. During December 2011, A (a
monthly depositor) accumulates $3,500 in employ-
ment taxes. A has a $3,500 deposit obligation that
mu
st be satisfied by the 15th day of the following
month. Since January 15, 2012, is a Sunday, and Jan-
uary 16, 2012, Dr. Martin Luther King, Jr.’s Birthday,
is
a legal holiday, A’s deposit obligation will be satis-
fied if the deposit is made by electronic funds transfer
by the next business day, January 17, 2012.
Ex
ample 2. Semi-weekly depositor.(i)Deter-
mination of status.For the calendar year 2011,
Employer B determines its depositor status using
t
he lookback period July 1, 2009 to June 30, 2010.
For the four calendar quarters within this period,
B reported aggregate employment tax liabilities of
$
88,000 on its quarterly Forms 941. Because that
amount exceeds $50,000, B is a semi-weekly depos-
itor for the entire calendar year 2011.
(
ii)Semi-weekly rule. On Friday, January 7, 2011,
B (a semi-weekly depositor) has a pay day on which
it accumulates $4,000 in employment taxes. B has a
$4,000 deposit obligation that must be satisfied by the
following Wednesday, January 12, 2011.
(iii)Deposit made within three business days.On
Friday, January 14, 2011, B (a semi-weekly depos-
itor) has a pay day on which it accumulates $4,200
in employment taxes. Generally, B would have a re-
quired deposit obligation of employment taxes that
must be satisfied by the following Wednesday, Jan-
uary 19, 2011. Because Monday, January 17, 2011,
is Dr. Martin Luther King, Jr.’s Birthday, a legal hol-
iday, B has an additional day to make the required
deposit. B has a $4,200 deposit obligation that must
be satisfied by the following Thursday, January 20,
2011.
Example 3. One-Day rule.On Monday,
January 10, 2011, Employer C accumulates $110,000
in employment taxes with respect to wages paid on
January 17, 20113102011–3 I.R.B.

that date. C has a deposit obligation of $110,000 that
must be satisfied by the next business day. If C was
not subject to the semi-weekly rule on January 10,
2011, C becomes subject to that rule as of January
11, 2011. See paragraph (b)(2)(ii) of this section.
Example 4. One-Day rule in combination with
subsequent deposit obligation.Employer D is subject
to the semi-weekly rule for calendar year 2011. On
Monday, January 10, 2011, D accumulates $115,000
in employment taxes. D has a deposit obligation that
must be satisfied by the next business day. On Tues-
day, January 11, D accumulates an additional $30,000
in employment taxes. Although D has a $115,000 de-
posit obligation incurred earlier in the semi-weekly
period, D has an additional and separate deposit obli-
gation of $30,000 on Tuesday that must be satisfied
by the following Friday.
Example 5. Legal Holidays.Employer E con-
ducts business in State X. Wednesday, August 31,
2011, is a statewide legal holiday in State X which
is not a legal holiday in the District of Columbia. On
Friday, August 26, 2011, E (a semi-weekly deposi-
tor) has a pay day on which it accumulates $4,000
in employment taxes. E has a $4,000 deposit obliga-
tion that must be satisfied on or before the following
Wednesday, August 31, 2011, notwithstanding that
the day is a statewide legal holiday in State X.
*****
(h) * * *
(2) * * *
(ii)Deposits for return periods begin-
ning after December 31, 1999, and made
before January 1, 2011.Unless exempted
under paragraph (h)(5) of this section, for
deposits for return periods beginning after
December 31, 1999, and made before Jan-
uary 1, 2011, a taxpayer that deposits more
than $200,000 of taxes described in para-
graph (h)(3) of this section during a cal-
endar year beginning after December 31,
1997, must use electronic funds transfer
(as defined in paragraph (h)(4) of this sec-
tion) to make all deposits of those taxes
that are required to be made for return pe-
riods beginning after December 31 of the
following year and must continue to de-
posit by electronic funds transfer in all suc-
ceeding years. As an example, a taxpayer
that exceeds the $200,000 deposit thresh-
old during calendar year 1998 is required
to make deposits for return periods begin-
ning in or after calendar year 2000 by elec-
tronic funds transfer.
(iii)Deposits made after December 31,
2010.Unless exempted under paragraph
(h)(5) of this section, a taxpayer that has
a required tax deposit obligation described
in paragraph (h)(3) of this section must
use electronic funds transfer (as defined in
paragraph (h)(4) of this section) to make
all deposits of those taxes made after De-
cember 31, 2010.
(iv)Voluntary deposits.A taxpayer that
is authorized to make payment of taxes
with a return under regulations may vol-
untarily make a deposit by electronic funds
transfer.
*****
(i)Time and manner of remittance with
areturn—(1)General rules.A remittance
requiredtobemadebythissectionthatis
authorized to be made with a return under
regulations and is made with a return must
be made separately from a remittance re-
quired by any other section. Further, a re-
mittance for a deposit period in one return
period must be made separately from a re-
mittance for a deposit period in another re-
turn period.
*****
(3)Time deemed paid.In general,
amounts remitted with a return under this
section will be considered as paid on the
date payment is received by the Internal
Revenue Service at the place prescribed
for filing by regulations or forms and in-
structions (or if section 7502(a) applies, by
the date the payment is treated as received
under section 7502(a)), or on the last day
prescribed for filing the return (determined
without regard to any extension of time
for filing the return), whichever is later. In
the case of the taxes imposed by chapter
21 and 24 of the Internal Revenue Code,
solely for purposes of section 6511 and the
regulations thereunder (relating to the pe-
riod of limitation on credit or refund), if an
amount is remitted with a return under this
section prior to April 15th of the calendar
year immediately succeeding the calendar
year that contains the period for which
the amount was remitted, the amount will
be considered paid on April 15th of the
succeeding calendar year.
*****
(o)Effective/applicability date.Para-
graphs (c), (d)Examples 1 through 5,
(h)(2)(ii), (h)(2)(iii), (h)(2)(iv),(i)(1) and
(i)(3) of this section apply to deposits and
payments made after December 31, 2010.
Par. 11. Section 31.6302–1T is
amended by revising paragraphs (g)(1)
and (n)(1) to read as follows.
§31.6302–1T Federal tax deposit rules for
withheld income taxes and taxes under
the Federal Insurance Contributions Act
(FICA) attributable to payments made
after December 31, 1992 (temporary).
*****
(g)Agricultural employers—Special
rules—(1)In general. An agricultural em-
ployer reports wages paid to farm workers
annually on Form 943 (Employer’s Annual
Tax Return for Agricultural Employees)
and reports wages paid to nonfarm work-
ers quarterly on Form 941 or annually on
Form 944. Accordingly, an agricultural
employer must treat employment taxes re-
portable on Form 943 (“Form 943 taxes”)
separately from employment taxes re-
portable on Form 941 or Form 944 (“Form
941 or Form 944 taxes”). Form 943 taxes
and Form 941 or Form 944 taxes are not
combined for purposes of determining
whether a deposit of either is due, whether
the One-Day rule of §31.6302–1(c)(3)
applies, or whether any safe harbor is
applicable. In addition, Form 943 taxes
and Form 941 or Form 944 taxes must be
deposited separately. (See §31.6302–1(b)
for rules for determining an agricultural
employer’s deposit status for Form 941
taxes.) Whether an agricultural employer
is a monthly or semi-weekly depositor of
Form 943 taxes is determined according
to the rules of this paragraph (g).
*****
(n)Effective/applicability dates—(1)
In general. Sections 31.6302–1 through
31.6302–3 apply with respect to the de-
positofemploymenttaxes attributable
to payments made after December 31,
1992. To the extent that the provisions
of §§31.6302–1 through 31.6302–3
are inconsistent with the provisions of
§§31.6302(c)–1 and 31.6302(c)–2, a
taxpayer will be considered to be in
compliance with §§31.6301–1 through
31.6302–3 if the taxpayer makes timely
deposits during 1993 in accordance
with §§31.6302(c)–1 and 31.6302(c)–2.
Paragraphs (b)(4), (c)(5), (c)(6), (d)
Example 6, (e)(2), (f)(4)(i), (f)(4)(iii),
(f)(5)Example 3, and (g)(1) of this section
apply to taxable years beginning on or after
December 30, 2008. Paragraph (f)(4)(ii)
of this section applies to taxable years
beginning on or after January 1, 2010.
The rules of paragraphs (e)(2) and (g)(1)
of this section that apply to taxable years
2011–3 I.R.B.311January 17, 2011

beginning before December 30, 2008,
are contained in §31.6302–1 in effect
before December 30, 2008. The rules
of paragraphs (b)(4), (c)(5), (c)(6), (d)
Example 6, (f)(4)(i), (f)(4)(iii), and (f)(5)
Example 3of this section that apply to
taxable years beginning on or after January
1, 2006, and before December 30, 2008,
are contained in §31.6302–1T in effect
before December 30, 2008. The rules of
paragraphs (b)(4) and (f)(4) of this section
that apply to taxable years beginning
before January 1, 2006, are contained in
§31.6302–1 in effect prior to January 1,
2006. The rules of paragraph (g) of this
section eliminating use of Federal tax
deposit coupons apply to deposits and
payments made after December 31, 2010.
*****
Par. 12. Section 31.6302–2 is amended
by:
1. Revising the heading.
2. Revising paragraph (d).
The revisions read as follows.
§31.6302–2 Deposit rules for taxes under
the Railroad Retirement Tax Act (RRTA).
*****
(d)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
Par. 13. Section 31.6302–4 is amended
by:
1. Revising the heading.
2. Revising paragraph (d).
3. Adding paragraph (e).
The revisions and additions read as fol-
lows:
§31.6302–4 Deposit rules for withheld
income taxes attributable to nonpayroll
payments.
*****
(d)Special rules. A taxpayer must
treat nonpayroll withheld taxes, which are
reported on Form 945, “Annual Return
of Withheld Federal Income Tax,” sepa-
rately from taxes reportable on Form 941,
“Employer’s QUARTERLY Federal Tax
Return” (or any other return, for example,
Form 943, “Employer’s Annual Federal
Tax Return for Agricultural Employees”).
Taxes reported on Form 945 and taxes re-
ported on Form 941 are not combined for
purposes of determining whether a deposit
of either is due, whether the One-Day rule
of §31.6302–1(c)(3) applies, or whether
any safe harbor is applicable. In addi-
tion, taxes reported on Form 945 and
taxes reported on Form 941 must be de-
posited separately. (See paragraph (b)
of §31.6302–1 for rules for determining
an employer’s deposit status for taxes re-
ported on Form 941.) Taxes reported on
Form 945 for one calendar year must be
deposited separately from taxes reported
on Form 945 for another calendar year.
(e)Effective/applicability date. Section
31.6302–4(d) applies to deposits and pay-
ments made after December 31, 2010.
§31.6302(c)–2A [REMOVED]
Par. 14. Section 31.6302(c)–2A is re-
moved.
Par. 15. Section 31.6302(c)–3 is
amended by:
1. Revising the heading.
2. Revising paragraph (a)(1), introduc-
tory text.
3. Revising paragraph (a)(1)(i).
4. Revising paragraph (a)(1)(ii), intro-
ductory text.
5. Removing paragraph (a)(3).
6. Revising paragraph (b).
7. Revising paragraph (c).
8. Removing paragraph (d).
The revisions read as follows:
§31.6302(c)–3 Deposit rules for taxes
under the Federal Unemployment Tax Act.
(a)Requirement—(1)In general.Ex-
cept as provided in paragraph (a)(2) of this
section, every person that, by reason of the
provisions of section 6157, computes the
taximposedbysection3301onaquarterly
or other time period basis shall—
(i) If the person is described in section
(a)(1) of section 6157, deposit the amount
ofsuchtaxbythelastdayofthefirstcal-
endar month following the close of each of
the first three calendar quarters in the cal-
endar year; or
(ii) If the person is other than a person
described in section (a)(1) of section 6157,
deposit the amount of such tax by the last
day of the first calendar month following
the close of—
*****
(b)Manner of deposit—(1)In general.
A deposit required to be made by an em-
ployer under this section shall be made
separately from a deposit required by any
other section. An employer may make one,
or more than one, remittance of the amount
required to be deposited. An employer that
is not required to deposit an amount of
tax by this section may nevertheless vol-
untarily make that deposit. For the require-
ment to deposit tax under the Federal Un-
employment Tax Act by electronic funds
transfer, see §31.6302–1(h).
(2)Time deemed paid.Forthe
time an amount deposited by elec-
tronic funds transfer is deemed paid, see
§31.6302–1(h)(9). For the time an amount
remitted with a return is deemed paid, see
§31.6302–1(i)(3).
(c)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
PART 40—EXCISE TAX
PROCEDURAL REGULATIONS
Par. 16. The authority citation for part
40 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 17. Section 40.6302(c)–1 is
amended by:
1. Revising the heading.
2. In paragraph (b)(2)(v), removing the
language “that failure may be reported to
the appropriate IRS office and”.
3. Revising paragraphs (d) and (f).
The revisions read as follows:
§40.6302(c)–1 Deposits.
*****
(d)Deposits required by electronic
funds transfer. All deposits required
by this part must be made byelectronic
funds transfer, as that term is defined in
§31.6302–1(h)(4) of this chapter.
*****
(f)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
*****
Par. 18. Section 40.6302(c)–1T is
amended by revising the section heading
to read as follows:
§40.6302(c)–1T Deposits (temporary).
*****
§40.6302(c)–2 [Amended]
Par. 19. Section 40.6302(c)–2, para-
graph (c), is amended by removing the
January 17, 20113122011–3 I.R.B.

language “2001” and adding “2001, ex-
cept that paragraph (b) of this section does
not apply after December 31, 2010” in its
place.
Par. 20. Section 40.6302(c)–3 is
amended as follows:
1. The heading is revised.
2. Paragraph (c) is revised.
3. In paragraph (g), the language
“2004” is removed and “2004, and ex-
cept that paragraph (f)(5) of this section
does not apply after December 31, 2010”
is added in its place.
The revisions read as follows:
§40.6302(c)–3 Deposits under chapter 33.
*****
(c)Time to deposit. Under the alter-
native method, the deposit of tax for any
semimonthlyperiodmustbemadebythe
third business day after the seventh day
of that semimonthly period. For purposes
of this paragraph (c), a “business day” is
any calendar day other than a Saturday,
Sunday, or legal holiday. The term “le-
gal holiday” means a legal holiday in the
District of Columbia as defined in section
7503. Thus, for example, the deposit for
the semimonthly period beginning on Jan-
uary 1, 2011 (relating to amounts billed
between December 1st and December 15,
2010) is due by January 12, 2011, three
business days after January 7, the sev-
enth day of the semimonthly period. The
deposit for the semimonthly period be-
ginning on October 1, 2011 (relating to
amounts billed between September 1st and
September 15, 2011), is due by October 13,
2011, due to the October 10, 2011, Colum-
bus Day holiday.
*****
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 20. The authority citation for part
301 is amended to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 21. Section 301.6302–1 is revised
to read as follows:
§301.6302–1 Manner or time of collection
of taxes.
(a)Employment and excise taxes.For
provisions relating to the manner or time of
collection of certain employment and ex-
cise taxes and deposits in connection with
the payment thereof, see the regulations re-
lating to the particular tax.
(b)Income taxes. (1) For provisions re-
lating to the deposits of income and es-
timated income taxes of certain corpora-
tions, see §1.6302–1 of this chapter (In-
come Tax Regulations).
(2) For provisions relating to the de-
posits of tax required to be withheld un-
der chapter 3 of the Code on nonresident
aliens and foreign corporations and tax-
free covenant bonds, see §1.6302–2 of this
chapter.
(c)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
Par. 22. Section 301.6656–1 is
amended by:
1. Revising paragraph (b).
2. Revising paragraph (c).
The revisions read as follows:
§301.6656–1 Abatement of penalty.
*****
(b)Deposit sent to Secretary. The Sec-
retary may abate the penalty imposed by
section 6656(a) if the first time a taxpayer
is required to make a deposit, the amount
required to be deposited is inadvertently
sent to the Secretary rather than deposited
by electronic funds transfer.
(c)Effective/applicability date.This
section applies to deposits and payments
made after December 31, 2010.
§301.7502–2 [REMOVED]
Par. 23. Section 301.7502–2 is re-
moved.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved November 30, 2010.
Michael F. Mundaca,
Assistant Secretary of
theTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on December 2,
2010, 11:15 a.m., and published in the issue of the Federal
Register for December 7, 2010, 75 F.R. 75897)
2011–3 I.R.B.313January 17, 2011

Part III. Administrative, Procedural, and Miscellaneous
Section 105 — Amounts
Received Under Accident and
Health Plans, Section 106 —
Contributions by Employers
to Accident and Health Plans,
Section 125 — Cafeteria
Plans
Notice 2011–5
I. PURPOSE AND BACKGROUND
.01 This notice modifies Notice
2010–59, 2010–39 I.R.B. 396. Notice
2010–59 provides guidance on § 9003
of the Patient Protection and Afford-
able Care Act, Pub. L. No. 111–148,
which added section 106(f) to the Internal
Revenue Code. Section 106(f) revises
the definition of medical expenses for
employer-provided accident and health
plans, (including health flexible spending
arrangements (health FSAs) and health re-
imbursement arrangements (HRAs)) and
for Health Savings Accounts (HSAs) and
Archer Medical Savings Accounts (Archer
MSAs). The notice explains that, after
December 31, 2010, expenses incurred for
a medicine or a drug shall be treated as
a reimbursement for a medical expense
only if such medicine or drug is a pre-
scribed drug (determined without regard
to whether such drug is available without a
prescription) or is insulin. Notice 2010–59
also provides that, except with respect to
“90 percent pharmacies,” health FSA and
HRA debit cards may not be used to pur-
chase over-the-counter medicines or drugs
after January 15, 2011.
.02 Additional rules for the use of health
FSA or HRA debit cards are set forth in
Prop. Treas. Reg. § 1.125–6 and in
Rev. Rul. 2003–43, 2003–1 C.B. 935;
Notice 2006–69, 2006–2 C.B. 107; No-
tice 2007–2, 2007–1 C.B. 254; and Notice
2008–104, 2008–2 C.B. 1298.
II. MODIFICATIONS TO NOTICE
2010–59
After January 15, 2011, health FSA and
HRA debit cards may continue to be used
to purchase over-the-counter medicines or
drugs at drug stores and pharmacies, at
non-health care merchants that have phar-
macies and at mail order and web-based
vendors that sell prescription drugs, if: (1)
prior to purchase, (i) the prescription (as
defined in Notice 2010–59) for the over-
the-counter medicine or drug is presented
(in any format) to the pharmacist; (ii) the
over-the-counter medicine or drug is dis-
pensed by the pharmacist in accordance
with applicable law and regulations per-
taining to the practice of pharmacy; and
(iii) an Rx number is assigned; (2) the
pharmacy or other vendor retains a record
of the Rx number, the name of the pur-
chaser (or the name of the person for whom
the prescription applies), and the date and
amount of the purchase in a manner that
meets IRS recordkeeping requirements
1
;
(3) all of these records are available to the
employer or its agent upon request; (4) the
debit card system will not accept a charge
for an over-the-counter medicine or drug
unless an Rx number has been assigned;
and (5) the requirements of the guidance
referred to in paragraph I.02 of this no-
tice are satisfied. If these requirements are
met, the debit card transaction will be con-
sidered fully substantiated at the time and
point-of-sale.
After January 15, 2011, health FSA
and HRA debit cards may also continue
to be used to purchase over-the-counter
medicines or drugs from vendors
(other than drug stores and pharmacies,
non-health care merchants that have phar-
macies, and mail order and web-based
vendors that sell prescription drugs) hav-
ing health care related Merchant Codes, as
described in Rev. Rul. 2003–43, 2003–1
C.B. 935, if all requirements in the pre-
ceding paragraph are satisfied, other than
the requirements in clause (1) and clause
(4) of the preceding paragraph and the
requirement in clause (2) of the preceding
paragraph that a record of the Rx number
be retained. If these requirements are sat-
isfied, these debit card transactions will be
considered fully substantiated at the time
and point-of-sale.
Health FSA and HRA debit cards may
be used to purchase over-the-counter
medicines and drugs at “90 percent phar-
macies” but only as provided in Notice
2010–59.
For all other providers and merchants,
other than those described in this notice,
health FSA and HRA debit cards may
not be used to purchase over-the-counter
medicines or drugs after January 15, 2011.
III. EFFECTIVE DATE
This notice is effective for health FSA
and HRA debit card purchases of over-
the-counter medicines or drugs made after
January 15, 2011.
IV. EFFECT ON OTHER DOCUMENTS
This notice modifies Notice 2010–59,
2010–39 I.R.B. 396 (September 27, 2010)
as it applies to the use of health FSA and
HRA debit cards to reimburse expenses for
over-the-counter medicines or drugs. IRS
andTreasuryintendtoamendtheregu-
lations at § 1.125–6 to reflect the provi-
sions of this notice. Taxpayers may rely
on this notice pending the issuance of the
amended regulations.
DRAFTING INFORMATION
The principal author of this notice is
Robin Ehrenberg of the Office of Division
Counsel/Associate Chief Counsel (Tax Ex-
empt and Government Entities). For fur-
ther information regarding this notice, con-
tact Ms. Ehrenberg at (202) 622–6080 (not
a toll-free call).
1
Section 6001 requires taxpayers to maintain records and to substantiate all positions and amounts reflected on returns. Rev. Proc. 98–25, 1998–1 C.B. 689, contains detailed rules for
taxpayers with automated systems (e.g., requiring IRS access to all electronic records used to prepare returns, and that records must be in format readable by IRS). Also, Prop. Treas. Reg.
§ 1.125–6 describes the requirements for substantiating, paying and reimbursing expenses for § 213(d) medical care when payment is made with a debit card and incorporates previously
issued guidance on the requirements.
January 17, 20113142011–3 I.R.B.

Implementation of Rules
Governing Tax Return
Preparers
Notice 2011–6
Purpose
This notice provides guidance regard-
ing the implementation of new Treasury
regulations governing tax return prepar-
ers. Section 1 of this notice provides guid-
ance regarding the requirement to obtain a
preparer tax identification number (PTIN)
under section 1.6109–2 and identifies the
forms that qualify as tax returns or claims
for refund for purposes of those regula-
tions. Section 2 of this notice provides
interim rules applicable to certain PTIN
holders during the implementation phase
of the new regulations governing tax return
preparers.
Background
The IRS made findings and recommen-
dations in Publication 4832, “Return Pre-
parer Review,” which was published on
January 4, 2010, concerning the results of
an in-depth review of the tax return pre-
parer industry. The IRS recommended in-
creased oversight of tax return preparers
through the issuance of regulations gov-
erning tax return preparers. The IRS pub-
lished: (1) final regulations (75 FR 60309)
addressing tax return preparer PTIN re-
quirements on September 30, 2010; (2) fi-
nal regulations (75 FR 60316) regarding
the user fee to apply for or renew a PTIN
on September 30, 2010; and (3) proposed
regulations (REG–138637–07) addressing
competency testing requirements, continu-
ing education requirements, and extension
of the ethics rules under 31 CFR Part 10
(reprinted in Treasury Department Circu-
lar 230 (Circular 230)) for tax return pre-
parers on August 23, 2010.
Section 1. Guidance under section
1.6109–2
.01 PTINs Obtained After September 28,
2010
Section 1.6109–2 provides that begin-
ning after December 31, 2010, all tax re-
turn preparers must have a PTIN that was
applied for and received at the time and
in the manner as prescribed by the IRS.
This notice confirms that tax return pre-
parers who obtain a PTIN or a provisional
PTIN and pay any applicable user fee after
September 28, 2010, have applied for and
received a PTIN in the manner prescribed
by the IRS for purposes of the section 6109
regulations.
.02 Individuals Who May Obtain a
PTIN
Section 1.6109–2(d) provides that for
returns or claims for refund filed after De-
cember 31, 2010, the identifying number
of a tax return preparer is the individual’s
PTIN or other number prescribed by the
IRS. Additionally, after December 31,
2010, all individuals who are compensated
for preparing, or assisting in the prepa-
ration of, all or substantially all of a tax
return or claim for refund of tax must have
aPTIN.
Section 1.6109–2(d)also provides that,
except as provided in paragraph (h), be-
ginning after December 31, 2010, a tax re-
turn preparer must be an attorney, certified
public accountant, enrolled agent, or regis-
tered tax return preparer to obtain a PTIN.
Section 1.6109–2(h) provides that the IRS
may prescribe exceptions to the PTIN rules
in appropriate guidance, including the re-
quirement that an individual be an attor-
ney, certified public accountant, enrolled
agent, or registered tax return preparer be-
fore receiving a PTIN.
The IRS has decided to allow certain
individuals who are not attorneys, certi-
fied public accountants,enrolled agents, or
registered tax return preparers to obtain a
PTIN and prepare, or assist in the prepara-
tion of, all or substantially all of a tax re-
turn in certain discrete circumstances.
a. Tax Return Preparers Supervised
by Attorneys, Certified Public
Accountants, Enrolled Agents, Enrolled
Retirement Plan Agents, and Enrolled
Actuaries
Until further guidance is issued, the
IRS, in accordance with the authority to
provide exceptions to the PTIN rules un-
der section 1.6109–2(h), will permit any
individual eighteen years or older to pay
the applicable user fee and obtain a PTIN
permitting the individual to prepare, or
assist in the preparation of, all or substan-
tially all of a tax return or claim for refund
for compensation if:
(i) the individual is supervised by an
attorney, certifiedpublic accountant, en-
rolled agent, enrolled retirement plan
agent, or enrolled actuary authorized to
practice before the IRS under Circular 230
§10.3(a) through (e);
(ii) the supervising attorney, certified
public accountant, enrolled agent, enrolled
retirement plan agent, or enrolled actuary
signs the tax returns or claims for refund
prepared by the individual;
(iii) the individual is employed at the
law firm, certified public accounting firm,
or other recognized firm of the tax return
preparer who signs the tax return or claim
for refund; and
(iv) the individual passes the requisite
tax compliance check and suitability check
(when available).
For purposes of this provision, alaw
firmis a law partnership, professional
corporation, sole proprietorship, or any
other association authorized to practice
law in any state, territory, or possession
of the United States, including a Com-
monwealth, or the District of Columbia.
Acertified public accounting firmis a
partnership, professional corporation, sole
proprietorship, or any other association
that is registered, permitted, or licensed to
practice as a certified public accounting
firm in any state, territory, or possession
of the United States, including a Com-
monwealth, or the District of Columbia.
Arecognized firmis a partnership, pro-
fessional corporation, sole proprietorship,
or any other association, other than a law
firm or certified public accounting firm,
that has one or more employees lawfully
engaged in practice before the IRS and
that is 80 percent or a greater percent
owned by one or more attorneys, certi-
fied public accountants, enrolled agents,
enrolled actuaries, or enrolled retirement
plan agents authorized to practice before
the IRS under sections 10.3(a) through (e)
of Circular 230, respectively.
Individuals applying for a PTIN un-
der this provision will be required to cer-
tify on the PTIN application that they are
supervised by an attorney, certified pub-
lic accountant, enrolled agent, enrolled re-
tirement plan agent, or enrolled actuary
who signs the tax return or claim for re-
fund prepared by the individual and pro-
vide a supervising individual’s PTIN or
other number if prescribed by the IRS. If
at any point the individual is no longer su-
2011–3 I.R.B.315January 17, 2011

pervised by the signing attorney, certified
public accountant, enrolled agent, enrolled
retirement plan agent, or enrolled actuary,
the individual must notify the IRS as pre-
scribed in forms, instructions, or other ap-
propriate guidance and will not be permit-
ted to prepare, or assist in preparing, all or
substantially all of a tax return or claim for
refund for compensation under this provi-
sion.
Individuals who obtain a PTIN under
this provision and prepare, or assist in
preparing, all or substantially all of a tax
return or claim for refund for compensa-
tion will not be subject to a competency
examination or continuing education re-
quirements. These individuals, however,
maynotsign any tax return they prepare
or assist in preparing for compensation,
represent taxpayers before the IRS in any
capacity, or represent to the IRS, their
clients, or the general public that they are a
registered tax return preparer or a Circular
230 practitioner.
Although individuals who obtain a
PTIN under this provision are not prac-
titioners under Circular 230, they are, by
preparing, or assisting in the preparation
of, a tax return for compensation, ac-
knowledging that they are subject to the
duties and restrictions relating to practice
in subpart B of Circular 230. The IRS
may, by written notification, revoke a
PTIN obtained under this provision if the
taxreturnpreparerwillfully violates ap-
plicable duties and restrictions prescribed
in Circular 230 or engages in disreputable
conduct. The tax return preparer may,
within 30 days after receipt of the notice
ofrevocationofthePTIN,fileawritten
protest of the notice of revocation as pre-
scribed in the revocation notice. A protest
is not a proceeding under subpart D of
Circular 230.
b. Individuals Who Prepare Tax
Returns Not Covered by the Registered
Tax Return Preparer Competency
Examination(s)
The Treasury Department and the IRS
have proposed rules that will require an in-
dividual to pass a registered tax return pre-
parer minimum competency examination
(competency examination). The IRS an-
ticipates, however, that the tax returns and
claims for refund covered by the compe-
tency examination(s) initially offered will
be limited to individual income tax returns
(Form 1040 series tax returns and accom-
panying schedules). Although the IRS an-
ticipates the types of returns and claims for
refunds covered by the competency exam-
ination(s) may expand in the future, the
IRS recognizes that certain compensated
tax return preparers do not prepare Form
1040 series tax returns or related claims for
refunds and that the tax returns and claims
for refunds prepared by some of these indi-
viduals may not be covered by the compe-
tency examinations for a significant period
of time. The IRS has determined that indi-
viduals should not be required, as a con-
dition to obtaining a PTIN, to pass a com-
petency examination covering tax returns
and claims for refunds not prepared by the
individual. Therefore, until further guid-
ance, this notice, in accordance with the
authority under section 1.6109–2(h), pro-
vides that any individual eighteen years or
older may pay the applicable user fee and
obtain a PTIN if:
(i) the individual certifies that the in-
dividual does not prepare, or assist in the
preparation of, all or substantially all of
any tax return or claim for refund covered
by the competency examination(s) for reg-
istered tax return preparers administered
under IRS oversight (1040 series until fur-
ther notice); and
(ii) the individual passes the requisite
tax compliance check and suitability check
(when available).
Individuals who obtain a PTIN un-
der this provision and prepare, or assist
in preparing, all or substantially all of a
taxreturnorclaimforrefundforcom-
pensation will not yet be subject to a
competency examination. These individu-
als are not currently required to satisfy the
same continuing education requirements
that a registered tax return preparer must
complete to renew their PTIN. In the fu-
ture, the IRS may require through forms,
instructions, or other appropriate guidance
that these individuals complete continuing
education to renew their PTIN.
Individuals who obtain or renew a PTIN
under this provision may sign the tax re-
turnsorclaimsforrefundsthattheypre-
pare for compensation as the paid preparer.
These individuals may also represent tax-
payers before revenue agents, customer
service representatives, or similar officers
and employees of the IRS (including the
Taxpayer Advocate Service) during an ex-
amination if the individual signed the tax
return or claim for refund for the taxable
year under examination. They may not,
however, represent to the IRS, their clients,
or the general publicthat they are a reg-
istered tax return preparer or a Circular
230 practitioner. Enrolled retirement plan
agents and enrolled actuaries who obtain a
PTIN under this provision may continue to
practice and represent as provided in Cir-
cular 230.
Although individuals who obtain a
PTIN under this provision are not prac-
titioners under Circular 230, they are, by
preparing, or assisting in the preparation
of, a tax return for compensation, ac-
knowledging that they are subject to the
duties and restrictions relating to practice
in subpart B of Circular 230. The IRS
may, by written notification, revoke a
PTIN obtained under this provision if the
tax return preparer willfully violates ap-
plicable duties and restrictions prescribed
in Circular 230 or engages in disreputable
conduct. The tax return preparer may,
within 30 days after receipt of the notice
ofrevocationofthePTIN,fileawritten
protest of the notice of revocation as pre-
scribedintherevocationnotice.Aprotest
is not a proceeding under subpart D of
Circular 230.
.03 Forms Requiring a PTIN
Section 1.6109–2(h) provides that the
IRS may specify in appropriate guidance
the returns, schedules, and other forms
that qualify as tax returns or claims for
refund for purposes of the PTIN regula-
tions. Consistent with that authority, the
IRS hereby specifies that all tax returns,
claims for refund, or other tax forms sub-
mitted to the IRS are considered tax returns
or claims for refund for purposes of section
1.6109–2 unless otherwise provided by the
IRS. For purposes of this provision, the
term tax forms is interpreted broadly. An
individual must obtain a PTIN to prepare
for compensation all or substantially all of
any form except thosespecifically identi-
fied by the IRS as not subject to the re-
quirements of §1.6109–2. At this time, the
IRS identifies the following forms as not
subject to the requirements of §1.6109–2:
Form SS–4,Application for Employer
Identification Number;
January 17, 20113162011–3 I.R.B.

Form SS–8,Determination of Worker
Status for Purposes of Federal Employ-
ment Taxes and Income Tax Withholding;
Form SS–16,Certificate of Election of
Coverage under the FICA;
Form W–2 series of returns;
Form W–7,Application for IRS Individ-
ual Taxpayer Identification Number;
Form W–8BEN,Certificate of Foreign
Status of Beneficial Owner for United
States Tax Withholding;
Form 870, Waiver of Restrictions on As-
sessment and Collection of Deficiency in
Tax and Acceptance of Overassessment;
Form 872,Consent to Extend the Time
to Assess Tax;
Form 906,Closing Agreement on Final
Determination Covering Specific Matters;
Form 1098 series;
Form 1099 series;
Form 2848,Power of Attorney and Dec-
laration of Representative;
Form 3115,Application for Change in
Accounting Method;
Form 4029,Application for Exemption
From Social Security and Medicare Taxes
and Waiver of Benefits;
Form 4361,Application for Exemption
From Self-Employment Tax for Use by
Ministers,Members of Religious Orders
and Christian Science Practitioners;
Form 4419,Application for Filing In-
formation Returns Electronically (FIRE);
Form 5300,Application for Determina-
tion for Employee Benefit Plan;
Form 5307,Application for Determina-
tion for Adopters of Master or Prototype or
Volume Submitter Plans;
Form 5310,Application for Determina-
tion for Terminating Plan;
Form 5500 series;
Form 8027,Employer’s Annual Infor-
mation Return of Tip Income and Allocated
Tips;
Form 8288–A,Statement of Withhold-
ing on Dispositions by Foreign Persons of
U.S. Real Property Interests;
Form 8288–B,Application for With-
holding Certificate for Dispositions by
Foreign Persons of U.S. Real Property
Interests;
Form 8508,Request for Waiver From
Filing Information Returns Electronically;
Form 8717,User Fee for Employee
Plan Determination, Opinion, and Advi-
sory Letter Request;
Form 8809,Application for Extension
of Time To File Information Return;
Form 8821,Tax Information Authoriza-
tion;
Form 8942,Application for Certifica-
tion of Qualified Investments Eligible for
Credits and Grants Under the Qualifying
Therapeutic Discovery Project Program
The IRS may in future guidance mod-
ify the list of documents that do not qual-
ify as tax returns or claims for refund for
purposes of section 1.6109–2(h).
Section 2. Interim Rules
.01 Provisional PTINs
Asdiscussedinsection1ofthisno-
tice, an individual may be designated as
a registered tax return preparer if the in-
dividual successfullycompletes a compe-
tency examination or otherwise meets req-
uisite standards prescribed by the IRS. The
IRS, however, does not expect to offer the
competency examination before mid 2011.
Therefore, to allow tax return preparers to
obtain a PTIN and continue to prepare tax
returns or claims for refund until the com-
petency examination is available, the IRS,
as an interim rule, will allow individuals
who are not attorneys,certified public ac-
countants, or enrolled agents to obtain a
provisional PTIN before the date that the
competency examination is first offered
(“initial test offering date”). Individuals
may obtain a provisional PTIN through the
IRS’ new online PTIN application system
or by submitting to the IRS a paper Form
W–12,IRSPaidPreparerTaxIdentifica-
tion Number (PTIN) Application.Thein-
dividual must annually renew the provi-
sional PTIN and pay the applicable user
fee.
The IRS generally will not issue provi-
sional PTINs in accordance with this pro-
vision after the initial test offering date.
After the initial test offering date, only at-
torneys, certifiedpublic accountants, en-
rolled agents, and registered tax return pre-
parers, or individuals defined in section
1.02(a) or (b) of this notice will be eligible
to obtain a PTIN in accordance with sec-
tion 1.6109–2, subject to any future IRS
guidance identifying additional individu-
als who may obtain a PTIN.
Until December 31, 2013, a provisional
PTIN may be renewed upon proper ap-
plication and payment of the applicable
user fee, even if the individual holding
the provisional PTIN is not an attor-
ney, certified public accountant, enrolled
agent, or registered tax return preparer.
After December 31, 2013, provisional
PTINs generally will not be renewed,
and the holder of a provisional PTIN
obtained in accordancewith this provision
may keep the PTIN only if the holder
of the provisional PTIN is eligible to
obtain a PTIN in accordance with section
1.6109–2, section 1.02(a) or (b) of this
notice, or future guidance.
.02 Return Preparation by Provisional
PTIN Holders
Taxreturnpreparerswhoproperlyob-
tain a provisional PTIN before the initial
test offering date will be permitted, sub-
ject to the requisite federal tax compliance
check and suitability check (when avail-
able), to prepare for compensation all or
substantially all of any tax return or claim
for refund until December 31, 2013. Dur-
ing the transition period from the initial
test offering date through December 31,
2013, tax return preparers who hold a pro-
visional PTIN may, subject to the payment
of the applicable user fee, take the compe-
tency examination as often as the exami-
nation is offered.
These interim rules apply to those tax
return preparers who obtain a provisional
PTIN prior to the initial test offering date.
An individual who is subject to the compe-
tency testing requirement for becoming a
registered tax return preparer who does not
obtain a PTIN before the initial test offer-
ing date must pass the competency exami-
nation and be designated as a registered tax
return preparer to be permitted to prepare
for compensation all or substantially all of
a tax return or claim for refund.
The holder of a provisional PTIN may
represent that the holder is authorized to
practice before the IRS by preparing and
filing tax returns or claims for refund, but
the holder of a provisional PTIN may not
represent that the holder is a registered tax
return preparer or has passed the compe-
tency examination necessary to become a
registered tax return preparer.
.03 Practice Based on Return
Preparation
The proposed Circular 230 regulations
include registered tax return preparers in
the definition of individuals described as
2011–3 I.R.B.317January 17, 2011

practitioners and authorize these individu-
als to practice before the IRS. Practice as
a registered tax return preparer generally
is limited to preparing tax returns, claims
for refund, or other documents for submis-
sion to the IRS and to limited representa-
tion as described below. A registered tax
return preparer may prepare all or substan-
tially all of a tax return or claim for refund.
The IRS will prescribe by forms, instruc-
tions, or other appropriate guidance the tax
returns and claims for refund that a regis-
tered tax return preparer may prepare and
sign.
Registered tax return preparers may
represent taxpayers before revenue agents,
customer service representatives, or sim-
ilar officers and employees of the IRS
during an examination if the registered
taxreturnpreparerpreparedandsigned
(or prepared and was not required to sign)
the tax return or claim for refund for the
taxable period under examination.
Prior to January 1, 2011, any individ-
ual generally may prepare a tax return or
claim for refund for compensation. An
individual who prepares and signs a tax-
payer’s return or claim for refund as the
preparer generally may represent that tax-
payer during an examination of the taxable
period covered by that return or claim for
refund. The proposed Circular 230 regula-
tions generally do not extend this right of
representation to individuals who are not
practitioners after December 31, 2010. To
ensure that tax return preparers have suf-
ficient time to become registered tax re-
turn preparers, these interim rules provide
that an individual may represent a taxpayer
during an examination provided the indi-
vidual prepared and signed the taxpayer’s
return or claim for refund as the preparer
for the taxable period under examination
and the individual was permitted under the
regulations or other published guidance to
prepare the taxpayer’s return or claim for
refund for compensation. This right to rep-
resent the taxpayer does not, however, per-
mit an individual who is not an attorney,
certified public accountant, enrolled agent,
enrolled retirement plan agent, or enrolled
actuary to represent the taxpayer before
appeals officers, revenue officers, Coun-
sel, or similar officers or employees of the
IRS or the Department of Treasury.
.04 Continuing Education
The proposed Circular 230 regulations
require registered tax return preparers to
complete fifteen hours of continuing ed-
ucation each registration year. As an in-
terim rule, there is no continuing educa-
tion requirement for registered tax return
preparers or tax return preparers who ob-
tain a provisional PTIN during the first
year of registration, which commenced on
September 30, 2010.
.05 Ethics and Conduct
The proposed Circular 230 regulations
include registered tax return preparers in
the definition of individuals described as
practitioners and authorize these individ-
uals to practice before the IRS. Practice
as a registered tax return preparer, there-
fore, will be subject to applicable duties
and restrictions relating to practice before
the IRS under Circular 230. Accordingly,
as an interim rule, practice before the IRS
by a tax return preparer who obtains a pro-
visional PTIN or any individual who for
compensation prepares, or assists in the
preparation of, all or asubstantial portion
of a document pertaining to any taxpayer’s
tax liability for submission to the IRS also
is subject to applicable duties and restric-
tions relating to practice before the IRS
under Circular 230. Tax return preparers
holding a provisional PTIN and other in-
dividuals who for compensation prepare,
or assist in the preparation of, all or a sub-
stantial portion of a document pertaining to
any taxpayer’s tax liability for submission
to the IRS must not engage in disreputable
conduct under section 10.51 of Circular
230. The IRS may, by written notification,
revoke a provisional PTIN if the tax re-
turn preparer willfully violates applicable
duties and restrictions prescribed in Circu-
lar 230 or engages in disreputable conduct
under section 10.51 of Circular 230. The
tax return preparer may, within 30 days af-
ter receipt of the notice of revocation of
the provisional PTIN, file a written protest
of the notice of revocation as prescribed
in the revocation notice. A protest is not
a proceeding under subpart D of Circular
230.
The interim rules described in this no-
tice and any final regulations apply to all
tax return preparers who prepare all or sub-
stantially all of a tax return or claim for
refund for compensation. As discussed
in section 1 of this notice, all tax returns,
claims for refund, or other documents sub-
mitted to the IRS unless otherwise pro-
vided for in section 1 of this notice or other
guidance are tax returns for purposes of the
PTIN regulations.
Contact Information
The principal author of this notice
is Matthew D. Lucey of the Office of
Associate Chief Counsel (Procedure
and Administration).For further
information regarding this notice, contact
Matthew D. Lucey at (202) 622–4940 (not
a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also: Part 1, §§ 6662, 6694, 1.6662–4, 1.6694–2.)
Rev. Proc. 2011–13
SECTION 1. PURPOSE
This revenue procedure updates Rev.
Proc. 2010–15, 2010–7 I.R.B. 404, and
identifies circumstances under which the
disclosure on a taxpayer’s income tax re-
turn with respect to an item or a position
is adequate for the purpose of reducing
the understatement of income tax under
section 6662(d) of the Internal Revenue
Code (relating to the substantial under-
statement aspect of the accuracy-related
penalty), and for the purpose of avoiding
the tax return preparer penalty under sec-
tion 6694(a) (relating to understatements
due to unreasonable positions) with re-
spect to income tax returns. This rev-
enue procedure does not apply with re-
spect to any other penalty provisions (in-
cluding the disregard provisions of the sec-
tion 6662(b)(1) accuracy-related penalty,
the section 6662(i) increased accuracy-re-
lated penalty in the case of nondisclosed
noneconomic substance transactions, and
the section 6662(j) increased accuracy-re-
lated penalty in the case of undisclosed for-
eign financial asset understatements).
This revenue procedure applies to
any income tax return filed on 2010
tax forms for a taxable year beginning
in 2010, and to any income tax return
filed on 2010 tax forms in 2011 for short
taxable years beginning in 2011.
January 17, 20113182011–3 I.R.B.

SECTION 2. CHANGES FROM REV.
PROC. 2010–15
.01 This revenue procedure has been
updated to include reference to: (i) the
section 6662(i) increased accuracy-re-
lated penalty in the case of nondisclosed
noneconomic substance transactions; (ii)
the section 6662(j) increased accuracy-re-
lated penalty in the case of undisclosed
foreign financial asset understatements;
and (iii) the Schedule UTP,Uncertain
Tax Position Statement, a new schedule
required of certain corporations.
SECTION 3. BACKGROUND
.01 If section 6662 applies to any por-
tion of an underpayment of tax required
to be shown on a return, an amount equal
to 20 percent of the portion of the under-
payment to which the section applies is
added to the tax (the penalty rate is 40 per-
cent in the case of gross valuation misstate-
ments under section 6662(h), nondisclosed
noneconomic substance transactions under
section 6662(i), or undisclosed foreign fi-
nancial asset understatements under sec-
tion 6662(j)). Section 6662(b)(2) applies
to the portion of an underpayment of tax
that is attributable to a substantial under-
statement of income tax.
.02 Section 6662(d)(1) provides that
there is a substantial understatement of
income tax if the amount of the understate-
ment exceeds the greater of 10 percent of
the amount of tax required to be shown on
the return for the taxable year or $5,000.
Section 6662(d)(1)(B) provides special
rules for corporations. A corporation
(other than an S corporation or personal
holding company) has a substantial under-
statement of income tax if the amount of
the understatement exceeds the lesser of
10 percent of the tax required to be shown
on the return for a taxable year (or, if
greater, $10,000) or $10,000,000. Section
6662(d)(2) defines an understatement as
the excess of the amount of tax required to
be shown on the return for the taxable year
over the amount of the tax that is shown on
the return reduced by any rebate (within
the meaning of section 6211(b)(2)).
.03 In the case of an item not at-
tributable to a tax shelter, section
6662(d)(2)(B)(ii) provides that the amount
of the understatement is reduced by the
portion of the understatement attributable
to the item if the relevant facts affecting
the item’s tax treatment are adequately
disclosed in the return or in a statement
attached to the return, and there is a rea-
sonable basis for the tax treatment of the
item by the taxpayer.
.04 Section 6694(a) imposes a penalty
on a tax return preparer who prepares
a return or claim for refund reflecting
an understatement of liability due to an
“unreasonable position” if the tax return
preparer knew (or reasonably should have
known) of the position. A position (other
than a position with respect to a tax shelter
or a reportable transaction to which sec-
tion 6662A applies) is generally treated as
unreasonable unless (i) there is or was sub-
stantial authority for the position, or (ii)
the position was properly disclosed in ac-
cordance with section6662(d)(2)(B)(ii)(I)
and had a reasonable basis. If the posi-
tion is with respect to a tax shelter (as
defined in section 6662(d)(2)(C)(ii)) or
a reportable transaction to which section
6662A applies, the position is treated
as unreasonable unless it is reasonable
to believe that the position would more
likely than not be sustained on the merits.
See Notice 2009–5, 2009–3 I.R.B. 309
(January 21, 2009), for interim penalty
compliance rules for tax shelter transac-
tions.
.05 In general, this revenue procedure
provides guidance for determining when
disclosure by return is adequate for pur-
poses of section 6662(d)(2)(B)(ii) and sec-
tion 6694(a)(2)(B). For purposes of this
revenue procedure, the taxpayer must fur-
nish all required information in accordance
with the applicable forms and instructions,
andthemoneyamountsenteredonthese
forms must be verifiable.
.06 Fiscal and short tax year returns. (a)
In general. This revenue procedure may
apply to a return for a fiscal tax year that
begins in 2010 and ends in 2011. This rev-
enue procedure may also apply to a short
year return for a period beginning in 2011
if the return is to be filed before the 2011
forms are available. (Note that individu-
als are generally not put in this position
as a decedent’s final return for a fractional
part of a year is due the fifteenth day of
the fourth month following the close of
the 12-month period which began with the
first day of such fractional part of the year.
SeeTreas. Reg. § 1.6072–1(b).) In the
case of fiscal year and short year returns,
the taxpayer must take into account any tax
law changes that are effective for tax years
beginning after December 31, 2010, even
though these changes are not reflected on
the form.
(b) Tax law changes effective after De-
cember 31, 2010. This document does
not take into account the effect of tax law
changes effective for tax years beginning
after December 31, 2010. If a line ref-
erenced in this revenue procedure is af-
fected by such a change and requires ad-
ditional reporting, a taxpayer may have
to file Form 8275,Disclosure Statement,
or Form 8275–R,Regulation Disclosure
Statement, until the Service prescribes cri-
teria for complying with the requirement.
.07 A complete and accurate disclo-
sure of a tax position on the appropriate
year’s Schedule UTP,Uncertain Tax Po-
sition Statement, will be treated as if the
corporation filed a Form 8275 or Form
8275–R regarding the tax position. The fil-
ing of a Form 8275 or Form 8275–R, how-
ever, will not be treated as if the corpora-
tion filed a Schedule UTP.
SECTION 4. PROCEDURE
.01 General
(1) Additional disclosure of facts rel-
evant to, or positions taken with respect
to, issues involving any of the items set
forth below is unnecessary for purposes
of reducing any understatement of income
tax under section 6662(d) (except as other-
wise provided in section 4.02(3) concern-
ing Schedules M–1 and M–3), provided
that the forms and attachments are com-
pleted in a clear manner and in accordance
with their instructions.
(2) The money amounts entered on the
forms must be verifiable, and the informa-
tion on the return must be disclosed in the
manner described below. For purposes of
this revenue procedure, a number is veri-
fiable if, on audit, the taxpayer can prove
the origin of the amount (even if that num-
ber is not ultimately accepted by the Inter-
nal Revenue Service) and the taxpayer can
show good faith in entering that number on
the applicable form.
(3) The disclosure of an amount as pro-
videdinsection4.02belowisnotade-
quate when the understatement arises from
a transaction between related parties. If an
entry may present a legal issue or contro-
versy because of a related-party transac-
2011–3 I.R.B.319January 17, 2011

tion, then that transaction and the relation-
ship must be disclosed on a Form 8275 or
Form 8275–R.
(4) When the amount of an item is
shown on a line that does not have a
preprinted description identifying that
item (such as on an unnamed line under an
“Other Expense” category) the taxpayer
must clearly identify the item by including
the description on that line. For example,
to disclose a bad debt for a sole propri-
etorship, the words “bad debt” must be
written or typed on the line of Schedule
C that shows the amount of the bad debt.
Also, for Schedule M–3 (Form 1120),
Part II, line 25, Other income (loss) items
with differences, or Part III, line 35, Other
expense/deduction items with differences,
the entry must provide descriptive lan-
guage; for example, “Cost of non-compete
agreement deductible not capitalizable.”
If space limitations on a form do not allow
for an adequate description, the descrip-
tion must be continued on an attachment.
(5) Although a taxpayer may literally
meet the disclosure requirements of this
revenue procedure, the disclosure will
have no effect for purposes of the sec-
tion 6662 accuracy-related penalty if the
item or position on the return: (1) Does
not have a reasonable basis as defined
in Treas. Reg. § 1.6662–3(b)(3); (2) Is
attributable to a tax shelter item as defined
in section 6662(d)(2); or (3) Is not prop-
erly substantiated or the taxpayer failed
to keep adequate books and records with
respect to the item or position.
(6) Disclosure also will have no effect
for purposes of the section 6694(a) penalty
as applicable to tax return preparers if the
position is with respect to a tax shelter
(as defined in section 6662(d)(2)(C)(ii)) or
a reportable transaction to which section
6662A applies.
.02 Items
(1) Form 1040, Schedule A,Itemized
Deductions:
(a) Medical and Dental Expenses:
Complete lines 1 through 4, supplying all
required information.
(b) Taxes: Complete lines 5 through 9,
supplying all required information. Line 8
must list each type of tax and the amount
paid.
(c) Interest Expenses: Complete lines
10 through 15, supplying all required in-
formation. This section 4.02(1)(c) does
not apply to (i) amounts disallowed under
section 163(d) unless Form 4952,Invest-
ment Interest Expense Deduction,iscom-
pleted, or (ii) amounts disallowed under
section 265.
(d) Contributions: Complete lines 16
through 19, supplying all required infor-
mation. Enter the amount of the contribu-
tion reduced by the value of any substan-
tial benefit (goods or services) provided by
the donee organization in consideration, in
whole or in part. Entering the value of
the contribution unreduced by the value
of the benefit received will not constitute
adequate disclosure. If a contribution of
$250 or more is made, this section will
not apply unless a contemporaneous writ-
ten acknowledgment, as required by sec-
tion 170(f)(8), is obtained from the donee
organization. If a contribution of cash of
less than $250 is made, this section will
not apply unless a bank record or writ-
ten communication from the donee, as re-
quired by section 170(f)(17), is obtained
from the donee organization. If a contri-
bution of property other than cash is made
and the amount claimed as a deduction ex-
ceeds $500, attach a properly completed
Form 8283,Noncash Charitable Contri-
butions, to the return. In addition to the
Form 8283, if a contribution of a quali-
fied motor vehicle, boat, or airplane has a
value of more than $500, this section will
not apply unless a contemporaneous writ-
ten acknowledgment, as required by sec-
tion 170(f)(12), is obtained from the donee
organization and attached to the return. An
acknowledgment under section 170(f)(8)
is not required if an acknowledgment un-
der section 170(f)(12) is required.
(e) Casualty and Theft Losses: Com-
plete Form 4684,Casualties and Thefts,
and attach to the return. Each item or ar-
ticle for which a casualty or theft loss is
claimed must be listed on Form 4684.
(2) Certain Trade or Business Expenses
(including, for purposes of this section, the
following six expenses as they relate to the
rental of property):
(a) Casualty and Theft Losses: The pro-
cedure outlined in section 4.02(1)(e) must
be followed.
(b) Legal Expenses: The amount
claimed must be stated. This section does
not apply, however, to amounts prop-
erly characterized as capital expenditures,
personal expenses, or non-deductible lob-
bying or political expenditures, including
amounts that are required to be (or that
are) amortized over a period of years.
(c) Specific Bad Debt Charge-off: The
amount written off must be stated.
(d) Reasonableness of Officers’ Com-
pensation: Form 1120, Schedule E,Com-
pensation of Officers, must be completed
when required by its instructions. The time
devoted to business must be expressed as
a percentage as opposed to “part” or “as
needed.” This section does not apply to
“golden parachute” payments, as defined
under section 280G. This section will not
apply to the extent that remuneration paid
or incurred exceeds the employee-remu-
neration deduction limitations under sec-
tion 162(m), if applicable.
(e) Repair Expenses: The amount
claimed must be stated. This section does
not apply, however, to any repair expenses
properly characterized as capital expendi-
tures or personal expenses.
(f) Taxes (other than foreign taxes): The
amount claimed must be stated.
(3) Differences in book and income tax
reporting.
For Schedule M–1 and all Schedules
M–3, including those listed in (a)–(f) be-
low, the information provided must rea-
sonably apprise the Service of the poten-
tial controversy concerning the tax treat-
ment of the item. If the information pro-
vided does not so apprise the Service, a
Form 8275 or Form 8275–R must be used
to adequately disclose the item (see Part II
of the instructions for those forms).
Note: Anitemreportedonalinewith
a pre-printed description, shown on
an attached schedule or “itemized” on
Schedule M–1, may represent the ag-
gregate amount of several transactions
producing that item (i.e.,agroupof
similar items, such as amounts paid or
incurred for supplies by a taxpayer en-
gaged in business). In some instances,
a potentially controversial item may in-
volve a portion of the aggregate amount
disclosed on the schedule. The Service
will not be reasonably apprised of a
potential controversy by the aggregate
amount disclosed. In these instances,
the taxpayer must use Form 8275 or
Form 8275–R regarding that portion of
the item.
Combining unlike items, whether on
Schedule M–1 or Schedule M–3 (or on an
attachment when directed by the instruc-
January 17, 20113202011–3 I.R.B.

tions), will not constitute an adequate dis-
closure.
Additionally, for taxpayers that file
the Schedule M–3 (Form 1120), the new
Schedule B,Additional Information for
Schedule M–3 Filers,must also be com-
pleted. For taxpayers that file the Schedule
M–3 (Form 1065), the new Schedule C,
Additional Information for Schedule M–3
Filers, must also be completed. When re-
quired, these new Schedules are necessary
to constitute adequate disclosure.
(a) Form 1065. Schedule M–3 (Form
1065),Net Income (Loss) Reconciliation
for Certain Partnerships:Column(a),
Income (Loss) per Income Statement,of
Part II (reconciliation of income (loss)
items) and Column (a),Expense per In-
come Statement, of Part III (reconciliation
of expense/deduction items); Column (b),
Temporary Difference,andColumn(c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d),Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(b) Form 1120. (i) Schedule M–1,Rec-
onciliation of Income (Loss) per Books
With Income per Return.
(ii) Schedule M–3 (Form 1120),Net
Income (Loss) Reconciliation for Corpo-
rations with Total Assets of $10 Million
or More:Column(a),Income (Loss) per
Income Statement, of Part II (reconcilia-
tion of income (loss) items) and Column
(a),Expense per Income Statement,of
Part III (reconciliation of expense/de-
duction items); Column (b),Temporary
Difference,andColumn(c),Permanent
Difference, of Part II (reconciliation of
income (loss) items) and Part III (recon-
ciliation of expense/deduction items) and
Column (d),Income (Loss) per Tax Re-
turn, of Part II (reconciliation of income
(loss) items); and Column (d),Deduction
per Tax Return, of Part III (reconciliation
of expense/deduction items).
(c) Form 1120–L. Schedule M–3 (Form
1120–L),Net Income (Loss) Reconcilia-
tion for U.S. Life Insurance Companies
With Total Assets of $10 Million or More:
Column (a),Income (Loss) per Income
Statement, of Part II (reconciliation of
income (loss) items) and Column (a),
Expense per Income Statement,ofPart
III (reconciliation of expense/deduction
items); Column (b),Temporary Differ-
ence,andColumn(c),Permanent Differ-
ence, of Part II (reconciliation of income
(loss) items) and Part III (reconciliation
of expense/deduction items); and Col-
umn (d),Income (Loss) per Tax Return,
of Part II (reconciliation of income (loss)
items) and Column (d),Deduction per
Tax Return, of Part III (reconciliation of
expense/deduction items).
(d) Form 1120–PC. Schedule M–3
(Form 1120–PC),Net Income (Loss) Rec-
onciliation for U.S. Property and Casualty
Insurance Companies With Total Assets
of $10 Million or More:Column(a),In-
come (Loss) per Income Statement,of
Part II (reconciliation of income (loss)
items) and Column (a),Expense per In-
come Statement, of Part III (reconciliation
of expense/deduction items); Column (b),
Temporary Difference,andColumn(c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d),Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(e) Form 1120S. Schedule M–3 (Form
1120S),Net Income (Loss) Reconciliation
for S Corporations With Total Assets of
$10 Million or More:Column(a),Income
(Loss) per Income Statement,ofPartII
(reconciliation of income (loss) items)
and Column (a),Expense per Income
Statement, of Part III (reconciliation of
expense/deduction items); Column (b),
Temporary Difference,andColumn(c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d),Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(f) Form 1120–F. Schedule M–3 (Form
1120–F),Net Income (Loss) Reconcilia-
tion for Foreign Corporations With Total
Assets of $10 Million or More: Column
(b),Temporary Difference,Column(c),
Permanent Difference,andColumn(d),
Other Permanent Differences for Allo-
cations to Non-ECI and ECI,of Part II
(reconciliation of income (loss) items) and
Part III (reconciliation of expense/deduc-
tion items).
(4) Foreign Tax Items:
(a) International Boycott Transactions:
Transactions disclosed on Form 5713,
International Boycott Report; Schedule
A,International Boycott Factor (Sec-
tion 999(c)(1)); Schedule B,Specifically
Attributable Taxes and Income (Section
999(c)(2)); and Schedule C,Tax Effect
of the International Boycott Provisions,
must be completed when required by their
instructions.
(b) Treaty-Based Return Position:
Transactions and amounts under section
6114 or section 7701(b) as disclosed on
Form 8833,Treaty-Based Return Posi-
tion Disclosure Under Section 6114 or
7701(b), must be completed when required
by its instructions.
(5) Other:
(a) Moving Expenses: Complete Form
3903,Moving Expenses, and attach to the
return.
(b) Employee Business Expenses:
Complete Form 2106,Employee Business
Expenses, or Form 2106–EZ,Unreim-
bursed Employee Business Expenses,and
attach to the return. This section does not
apply to club dues, or to travel expenses
for any non-employee accompanying the
taxpayer on the trip.
(c) Fuels Credit: Complete Form 4136,
Credit for Federal Tax Paid on Fuels,and
attach to the return.
(d) Investment Credit: Complete Form
3468,Investment Credit, and attach to the
return.
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to any
income tax return filed on a 2010 tax form
for a taxable year beginning in 2010, and
to any income tax return filed on a 2010
tax form in 2011 for a short taxable year
beginning in 2011.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Francis M. McCormick of
the Office of Associate Chief Counsel
(Procedure & Administration). For further
information regarding this revenue proce-
dure, contact Branch 2 of Procedure and
2011–3 I.R.B.321January 17, 2011

Administration at (202) 622–4940 (not a
toll free call).
26 CFR 1.6033–2. Returns by exempt organizations
(taxable years beginning after December 31, 1969)
and returns by certain nonexempt organizations (tax-
able years beginning after December 31, 1980).
Rev. Proc. 2011–15
SECTION 1. PURPOSE AND SCOPE
This revenue procedure modifies and
supersedes Rev. Proc. 83–23, 1983–1
C.B. 687, Rev. Proc. 94–17, 1994–1 C.B.
579, and Rev. Proc. 2003–21, 2003–1
C.B. 448, for taxable years beginning on
or after January 1, 2010 to relieve from
the requirement to file an annual return on
Form 990,Return of Organization Exempt
from Income Tax, organizations (other
than private foundations and § 509(a)(3)
supporting organizations) exempt from
federal income tax because they are de-
scribed in § 501(c) of the Internal Revenue
Code (“exempt organizations”) whose an-
nual gross receipts are normally not more
than $50,000. This is an increase from the
previous filing threshold of annual gross
receipts that are normally not more than
$25,000. References in this revenue pro-
cedure to Form 990 include Form 990–EZ.
This revenue procedure does not apply
to organizations exempt from income tax
under § 527.
SECTION 2. BACKGROUND
.01 Section 6033(a)(1) generally re-
quires the filing of an annual return by
exempt organizations.
.02 Section 6033(a)(3)(A) provides cer-
tain mandatory exceptions to the annual
filing requirement for exempt organiza-
tions.
.03 Section 6033(a)(3)(B) provides
that the Secretary may relieve exempt
organizations from the annual filing re-
quirement if the Secretary determines
that such filings are not necessary to the
efficient administration of the internal rev-
enue laws. Treas. Reg. § 1.6033–2(g)(6)
delegates such discretionary authority
to the Commissioner. See Treas. Reg.
§1.6033–2(g)(1) for a partial list of organi-
zations that are not required to file annual
returns either because they are excepted
by statute or because the Commissioner
has exercised this authority.
.04 The Pension Protection Act of
2006, Public Law 109–280 (120 Stat.
780) (PPA), amended § 6033(a)(3)(B) to
remove the Secretary’s authority to relieve
organizations described in § 509(a)(3)
(supporting organizations) from filing an
annual information return.
.05 Under the authority of
§ 6033(a)(3)(B), Rev. Proc. 83–23,
1983–1 C.B. 687, relieves from the Form
990 filing requirement organizations
described in § 501(c) (other than private
foundations) whose annual gross receipts
are normally not more than $25,000.
.06 For purposes of this revenue pro-
cedure, the term “private foundation” in-
cludes any domestic or foreign organiza-
tion described in § 501(c)(3) that is not de-
scribed in § 509(a)(1) through (4).
.07 Under the authority of
§ 6033(a)(3)(B), Rev. Proc. 94–17,
1994–1 C.B. 579, relieves from the Form
990 filing requirement foreign organi-
zations (other than private foundations)
whose annual gross receipts are normally
not more than $25,000 from sources
within the United States and that have no
significant activity in the United States.
.08 Under the authority of
§ 6033(a)(3)(B), Rev. Proc. 2003–21,
2003–1 C.B. 448, relieves from the Form
990 filing requirement U.S. possession
organizations (otherthan private foun-
dations) whose annual gross receipts are
normally not more than $25,000 from
sources within the United States and that
have no significant activity in the United
States.
.09 Treas. Reg. § 53.4948–1(b) pro-
vides that gifts, grants, contributions or
membership fees received directly or in-
directly by a foreign organization from
a United States person, as defined in
§ 7701(a)(30), are from sources within
the United States. For purposes of this
revenue procedure, the source of an or-
ganization’s gross receipts from gifts,
grants, contributions or membership fees
is determined by applying Treas. Reg.
§ 53.4948–1(b).
.10 For purposes of applying the rules
in this revenue procedure regarding pos-
session organizations, a United States per-
son does not include individuals who are
bona fideresidents of a United States pos-
session.
.11 For purposes of this revenue proce-
dure, the source of an organization’s gross
receipts other than gifts, grants, contribu-
tions, and membership fees is determined
by applying the rules in §§ 861 through
865 and the regulations thereunder.
.12 For purposes of this revenue proce-
dure, a foreign organization is any organi-
zation not described in § 170(c)(2)(A).
.13 Section 7701(a)(9) defines “United
States” when used in a geographical sense
as only the States and the District of Co-
lumbia.
.14 Section 7701(a)(30) defines
“United States person” as a citizen or
resident of the United States, a domestic
partnership, a domestic corporation, any
estate that is not a foreign estate (within
the meaning of § 7701(a)(31)), or any trust
if “(i) a court within the United States is
able to exercise primary supervision over
the administration of the trust, and (ii) one
or more United States persons have the au-
thority to control all substantial decisions
of the trust.”
.15 For purposes of this revenue proce-
dure, a “United States possession organi-
zation” is any organization created or orga-
nized in a possession of the United States.
.16 In connection with the redesign of
the Form 990, the IRS announced in a
press release, IR–2007–204 (December
20, 2007), that for taxyearsendingonor
after December 31, 2010, exempt orga-
nizations whose annual gross receipts are
normally not more than $50,000 would
not be required to file Form 990.
.17 Section 6033(i), enacted as part
of the PPA, provides that any organ-
ization relieved from filing an annual
return pursuant to § 6033(a)(3)(A)(ii) or
§ 6033(a)(3)(B) must furnish annually, in
electronic form, a notice containing the
information described in § 6033(i)(1). The
annual notice requirement is satisfied by
submitting a Form 990–N e-Postcard. See
Treas. Reg. § 1.6033–6.
.18 From time to time, the Commis-
sioner may relieve additional organiza-
tions from filing annual returns on Form
990bypublishinganannouncementin
the Internal Revenue Bulletin, revising
the instructions accompanying Form 990,
amending the regulations, or issuing other
appropriate publications.
January 17, 20113222011–3 I.R.B.

SECTION 3. INCREASE IN THE
FILING THRESHOLD TO $50,000
.01 An organization exempt from fed-
eral income tax under § 501(a) because
it is described in § 501(c) (other than a
private foundation or a § 509(a)(3) sup-
porting organization) that normally has an-
nual gross receipts (as defined by Treas.
Reg. § 1.6033–2(g)(4)) of not more than
$50,000 (as described in section 4 of this
revenue procedure) is not required to file
an annual return under §6033(a).
.02 A foreign organization or a United
States possession organization exempt
from federal income tax under § 501(a)
because it is described in § 501(c) (other
than a private foundation or a § 509(a)(3)
supporting organization) is not required to
file an annual return under § 6033(a) if—
(1) it normally does not receive more
than $50,000 (as described in section
4 of this revenue procedure) in annual
gross receipts (as defined by Treas. Reg.
§ 1.6033–2(g)(4)) from sources within the
United States; and
(2) it has no significant activity (includ-
ing lobbying and political activity and the
operation of a trade or business, but ex-
cluding investment activity) in the United
States.
.03 An organization that is not required
to file an annual return by virtue of sec-
tion 3.01 or 3.02 of this revenue procedure
must submit a Form 990–N e-Postcard an-
nually in electronic format as described in
§6033(i)(1). By submitting an e-Postcard,
an organization acknowledges that it is not
required to file a return under § 6033(a)
because its annual gross receipts are nor-
mally not more than $50,000. Treas. Reg.
§ 1.6033–6(c)(3).
.04 If at any time an organization ceases
to meet any condition set forth in section
3.01 or 3.02 of this revenue procedure, the
organizationisrequiredtofileanannual
return on Form 990 for the year in which it
first ceased to qualify for relief under this
procedure and for all subsequent years in
which the organization does not qualify.
SECTION4.NORMALLYNOTMORE
THAN $50,000
For purposes of section 3 of this rev-
enue procedure, the annual gross receipts
of an organization are normally not more
than $50,000 if—
(1) in the case of an organization that
has been in existence for one year or less,
the organization’s gross receipts, including
amounts pledged by donors, are $75,000 or
less during its first taxable year;
(2) in the case of an organization that
has been in existence for more than one
year, but less than three years, the organ-
ization’s average annual gross receipts for
its first two taxable years is $60,000 or
less; and,
(3) in the case of an organization that
has been in existence for three years or
more, the organization’s average annual
gross receipts for the immediately preced-
ing three taxable years, including the tax-
able year for which the return is filed, is
$50,000 or less.
SECTION 5. OTHER FILING
OBLIGATIONS
This revenue procedure does not affect
an organization’s obligation under the in-
ternal revenue laws to file any tax or in-
formation return other than Form 990. For
example, if an organization earns suffi-
cient gross unrelated business income to
require the filing of Form 990–T,Exempt
Organization Business Income Tax Return,
it must do so, whether or not it is re-
quired to file Form 990. See Treas. Reg.
§ 1.6033–2(g)(2).
SECTION 6. EFFECT ON OTHER
REVENUE PROCEDURES
Rev. Proc. 83–23, 1983–1 C.B. 687,
Rev. Proc. 94–17, 1994–1 C.B. 579, and
Rev. Proc. 2003–21, 2003–1 C.B. 448, are
hereby modified and superseded by this
revenue procedure.
SECTION 7. EFFECTIVE DATE
Thisrevenueprocedureiseffectiveim-
mediately upon publication in the Internal
Revenue Bulletin and is applicable to an-
nual returns filed for tax years beginning
on or after January 1, 2010.
SECTION 8. REQUEST FOR
COMMENTS
Comments are requested on whether
guidance is needed regarding the filing of
annual returns on Form 990 by § 509(a)(3)
supporting organizations. See Rev. Proc.
95–48, 1995–2 C.B. 418, and Rev. Proc.
96–10, 1996–1 C.B. 577.
Comments should refer to Rev. Proc.
2011–15 and be submitted to:
Internal Revenue Service
CC:PA:LPD:PR (Rev. Proc. 2011–15)
Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
Submissions may be hand delivered
Monday through Friday between the hours
of 8 a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
1111 Constitution Ave., N.W.
Washington, DC 20224
Attn: CC:PA:LPD:PR
(Rev. Proc. 2011–15)
Alternatively,taxpayersmay
submit commentselectronically to
notice.comments@irscounsel.treas.gov.
Please include “Rev. Proc. 2011–15”
in the subject line of any electronic
communications.
All comments will be available for pub-
lic inspection and copying.
SECTION 9. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Elizabeth Goff of the Exempt
Organizations, Tax Exempt and Gov-
ernment Entities Division. For further
information about this revenue procedure,
please contact Ms. Goff at (202) 283–8977
(not a toll-free call) or the Exempt Orga-
nizations and Employee Plans Customer
Assistance Center at 877–829–5500 (a
toll-free call).
2011–3 I.R.B.323January 17, 2011

Part IV. Items o
fGeneralInterest
Deletions Fro
m Cumulative
List of Organi
zations
Contribution
stoWhich
are Deductib
le Under Section
170 of the Cod
e
Announceme
nt 2011–2
The Interna
l Revenue Service has re-
voked its de
termination that the organi-
zations lis
ted below qualify as organiza-
tions descr
ibed in sections 501(c)(3) and
170(c)(2) o
f the Internal Revenue Code of
1986.
Generally
, the Service will not disallow
deduction
s for contributions made to a
listed org
anization on or before the date
of announc
ement in the Internal Revenue
Bulletin t
hat an organization no longer
qualifie
s. However, the Service is not
preclude
d from disallowing a deduction
for any co
ntributions made after an or-
ganizati
on ceases to qualify under section
170(c)(
2) if the organization has not timely
filed a s
uit for declaratory judgment under
section
7428 and if the contributor (1) had
knowled
ge of the revocation of the ruling
or deter
mination letter, (2) was aware that
such re
vocation was imminent, or (3) was
in part
responsible for or was aware of the
activi
ties or omissions of the organization
that br
ought about this revocation.
If on th
e other hand a suit for declara-
tory ju
dgment has been timely filed, con-
tribut
ions from individuals and organiza-
tions
describedinsection170(c)(2)that
are ot
herwise allowable will continue to
be ded
uctible. Protection under section
7428(
c) would begin on January 17, 2011
and wo
uld end on the date the court first
dete
rmines that the organization is not de-
scri
bed in section 170(c)(2) as more partic-
ular
ly set forth in section 7428(c)(1). For
indi
vidual contributors, the maximum de-
duct
ion protected is $1,000, with a hus-
ban
d and wife treated as one contributor.
Thi
s benefit is not extended to any indi-
vid
ual, in whole or in part, for the acts or
omi
ssions of the organization that were the
bas
is for revocation.
Nor
thwest Conservation Stewardship
Fun
d
Se
attle, WA
Foundations S
tatus of Certain
Organization
s
Announceme
nt 2011–3
The follo
wing organizations have failed
to establ
ish or have been unable to main-
tain thei
r status as public charities or as op-
erating
foundations. Accordingly, grantors
and cont
ributors may not, after this date,
rely on p
revious rulings or designations
in the Cu
mulative List of Organizations
(Public
ation 78), or on the presumption
arisin
g from the filing of notices under sec-
tion 50
8(b) of the Code. This listing does
notind
icate that the organizations have lost
their s
tatus as organizations described in
secti
on 501(c)(3), eligible to receive de-
ducti
ble contributions.
Forme
r Public Charities. The follow-
ing or
ganizations (which have been treated
as org
anizations that are not private foun-
datio
ns described in section 509(a) of the
Code)
are now classified as private foun-
dati
ons:
19-
A Certified Examiners Transportation
Sa
fety Training and Vocational Institute,
In
c., Kiamesha Lake, NY
AB
U Enterprises, Inc., Altadena, CA
Aga
pe Youth and Development Center,
Sc
haumburg, IL
Ame
rican Middle East Christian
Co
ngress, Oak Park, MI
Bar
None Renewal Center, Inc.,
Me
nifee, CA
Bel
ieve and Achieve, Inc., Dallas, TX
Bri
ght Day Foundation, Chattanooga, TN
Cal
vary Community Development
Cor
poration of Morristown,
Mor
ristown, NJ
Chi
ldren Athletes and Artists Involved in
Rec
reational Events, Inc., Ocoee, FL
Cit
y of Refuge, Chicago, IL
Cla
rk County Literacy Council, Inc.,
Ark
adelphia, AR
Coa
lition to Preserve Bonelli Park,
San
Dimas, CA
Com
munity Action Network, Heber, AZ
Com
munity Restoration Center,
Bex
ley, OH
Cre
ative Minds Family and Community
Car
e Services, Inc., San Diego, CA
Dan
ce-A-Vision Entertainment,
Oak
land, CA
Donerlson and
Donerlson, Inc.,
East Point, GA
Drawbridgez,
Inc., New Haven, CT
Edusphere Solu
tions, Inc.,
Kailua Kona, H
I
Federation of F
amilies for Children’s
Mental Health
of Central Ohio,
Columbus, OH
Golf 2 Kids Fou
ndation, Fort Worth, TX
Greater Peopl
es Development
Corporation,
Dallas, TX
Growth Object
ive Distribution,
Shreveport, L
A
Hands Outreac
hed Community Center,
Inc., Tuskege
eInst.,AL
Helens Haven,
Baytown, TX
Host and Hoste
ss Service for Seniors,
Inc., Atlanta
,GA
Intermodal In
frastructure Partnership,
Long Beach, CA
KellyFamilyF
oundation, Aurora, CO
Lafayette Hom
eless and Community
Services, Inc
., Sacramento, CA
Map Home II, In
c., Los Angeles, CA
Ms. Wheelchai
r Wisconsin,
Menomonie, WI
Musician’s Ai
d Society of New York,
Inc., New York
,NY
New Building S
tones, Los Angeles, CA
New Horizon Ch
ristian Community
Outreach Cent
er, Inc., Desoto, TX
New Life Minis
tries CDC, Inc.,
Buffalo, NY
New Mount Zion
Foundation,
Orangeburg, S
C
Paradise Poni
es, Inc., Kurtistown, HI
Porterville C
ommunity Center, Inc.,
Clarkton, NC
Prabhupada In
stitute of Culture, Inc.,
Miami, FL
Professional
Association of Teachers
Foundation, V
irginia Beach, VA
REALITY,Inc.
,Memphis,TN
Silent Voices
, Inc., Richmond Hill, NY
Spirit of Life
for All People Ministries,
Inc., Brooksv
ille, FL
Springs of Lif
e Community Outreach,
Inc., Atlanta
,GA
Stingers Deve
lopment Corporation,
Pittsburgh, P
A
Taylor’s Hous
ing Services, Inc.,
Prairie, MS
Temple Life Mi
nistries, Memphis, TN
Texas Mental H
ealth Peer Advocates,
Georgetown, T
X
January 17, 20113242011–3 I.R.B.

TLC Respite Care, Inc.,
Pocomoke City, MD
Tybee Island Land Trust, Inc.,
Tybee Island, GA
Upright, Inc., Albuquerque, NM
Wings of Freedom, Inc., Little Rock, AR
Youth Challenged Rehabilitation Center,
Inc., Gibsonton, FL
If an organization listed above submits
information that warrants the renewal of
its classification as a public charity or as
a private operating foundation, the Inter-
nal Revenue Service will issue a ruling or
determination letter with the revised clas-
sification as to foundation status. Grantors
and contributors may thereafter rely upon
such ruling or determination letter as pro-
videdinsection1.509(a)–7oftheIncome
Tax Regulations. It is not the practice of
the Service to announce such revised clas-
sification of foundation status in the Inter-
nal Revenue Bulletin.
2011–3 I.R.B.325January 17, 2011

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
January 17, 2011i2011–3 I.R.B.

Numerical Finding List
1
Bulletin 2011–1 through 2011–3
Announcements:
2011-1, 2011-2 I.R.B.304
2011-2, 2011-3 I.R.B.324
2011-3, 2011-3 I.R.B.324
Notices:
2011-1, 2011-2 I.R.B.259
2011-2, 2011-2 I.R.B.260
2011-3, 2011-2 I.R.B.263
2011-4, 2011-2 I.R.B.282
2011-5, 2011-3 I.R.B.314
2011-6, 2011-3 I.R.B.315
Proposed Regulations:
REG-124018-10, 2011-2 I.R.B.301
Revenue Procedures:
2011-1, 2011-1 I.R.B.1
2011-2, 2011-1 I.R.B.90
2011-3, 2011-1 I.R.B.111
2011-4, 2011-1 I.R.B.123
2011-5, 2011-1 I.R.B.167
2011-6, 2011-1 I.R.B.195
2011-7, 2011-1 I.R.B.233
2011-8, 2011-1 I.R.B.237
2011-9, 2011-2 I.R.B.283
2011-10, 2011-2 I.R.B.294
2011-12, 2011-2 I.R.B.297
2011-13, 2011-3 I.R.B.318
2011-15, 2011-3 I.R.B.322
Revenue Rulings:
2011-1, 2011-2 I.R.B.251
2011-2, 2011-2 I.R.B.256
Treasury Decisions:
9507, 2011-3 I.R.B.305
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin
2010–52, dated December 27, 2010.
2011–3 I.R.B.iiJanuary 17, 2011

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2011–1 through 2011–3
Announcements:
85-88
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
2009-62
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Notices:
2010-59
Modified by
Notice 2011-5, 2011-3 I.R.B.314
2010-79
Clarified and modified by
Notice 2011-4, 2011-2 I.R.B.282
Revenue Procedures:
72-50
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
76-34
Modified and supersed by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
83-23
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
94-17
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2003-21
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2008-52
Modified by
Notice 2011-4, 2011-2 I.R.B.282
2010-1
Superseded by
Rev. Proc. 2011-1, 2011-1 I.R.B.1
2010-2
Superseded by
Rev. Proc. 2011-2, 2011-1 I.R.B.283
2010-3
Superseded by
Rev. Proc. 2011-3, 2011-1 I.R.B.111
2010-4
Superseded by
Rev. Proc. 2011-4, 2011-1 I.R.B.123
Revenue Procedures— Continued:
2010-5
Superseded by
Rev. Proc. 2011-5, 2011-1 I.R.B.167
2010-6
Superseded by
Rev. Proc. 2011-6, 2011-1 I.R.B.195
2010-7
Superseded by
Rev. Proc. 2011-7, 2011-1 I.R.B.233
2010-8
Superseded by
Rev. Proc. 2011-8, 2011-1 I.R.B.237
2010-9
Superseded by
Rev. Proc. 2011-9, 2011-2 I.R.B.283
2010-15
Updated by
Rev. Proc. 2011-13, 2011-3 I.R.B.318
Revenue Rulings:
81-100
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2004-67
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2008-40
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27,
2010.
January 17, 2011iii2011–3 I.R.B.

2011–3 I.R.B.January 17, 2011

January 17, 20112011–3 I.R.B.

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