Internal Revenue Bulletin 2011-9 (PDF rendition): IRS Notices

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

Bulletin No. 201
1-9
February 28, 201
1
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. 9514, page 527.
Final regulations under section 1221(b)(3) of the Code provide
the time and manner rules for electing to treat the sale or ex-
change of a musical composition or a copyright in a musical
work created by the taxpayer (or received by the taxpayer from
the composition or work’s creator in a transferred basis trans-
action) as the sale or exchange of a capital asset.
Announcement 2011–14, page 532.
This announcement advises the public that expenses for breast
pumps and supplies that assist lactation may be deducted as
medical expenses or reimbursed under a flexible spending ar-
rangement or similar plan.
EMPLOYEE PLANS
Notice 2011–13, page 529.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in February
2011; the 24-month average segment rates; the funding
transitional segment rates applicable for February 2011; and
the minimum present value transitional rates for January 2011.
EXEMPT ORGANIZATIONS
Announcement 2011–17, page 532.
The IRS has revoked its determination that Arid Lands Project
of North Haven, ME; Christian Credit Counselors International,
Inc., of Santa Ana, CA; Consumer Credit Protection Agency,
Inc., of Tampa, FL; Falls Consumer Credit Management, Inc.,
of Akron, OH; Falls Consumer Credit Management, Inc., of
Saint Clairsville, OH; Gullahorn Family Supporting Organization
of Naples, FL; International Vision, Inc., of Washington, DC;
Riverview Athletic Association, Inc., of Omaha, NE; Rising Stars
Community Services, Inc., of Houston, TX; RFD Communica-
tions, Inc., of Omaha, NE; Revive Credit Counseling, Inc., of
Santa Monica, CA; Neighborcare International, Inc., of Fairfield
Grade, TN; Mexican American Research Center of Austin, TX;
Modern Day Veterans 304 Chapter of Licking, MO; Modern Day
Veterans 203 Chapter of Marble Hill, MO; Care of Crow Wing
County of Brainerd, MN; Northwest Conservation Stewardship
Fund of Seattle, WA; and Panhandle Land Conservancy, Inc.,
of Destin, FL, qualify as organizations described in sections
501(c)(3) and 170(c)(2) of the Code.
ADMINISTRATIVE
Announcement 2011–12, page 532.
This announcement contains a correction to final regulations
(T.D. 9391, 2008–1 C.B. 945) providing rules under section
937(b) of the Code for determining whether income is derived
from sources within a U.S. possession or territory specified in
section 937(a)(1) (generally referred to in this preamble as a
“territory”) and whether income is effectively connected with
the conduct of a trade or business within a territory as well
as providing guidance under section 932 and other provisions
related to the territories.
Actions Relating to Court Decisions is on the page following the Introduction.
Fi
nding Lists begin on page ii.
Index for January through February begins on page v.

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.
February 28, 20112011–9 I.R.B.

Actions Relati
ng to Decisions of the Tax Court
It is the policy
of the Internal Rev-
enue Service t
o announce at an early date
whether it wil
l follow the holdings in cer-
tain cases. An
Action on Decision is the
document maki
ng such an announcement.
An Action on De
cision will be issued at
the discreti
on of the Service only on unap-
pealed issue
s decided adverse to the gov-
ernment. Gen
erally, an Action on Decision
is issued whe
re its guidance would be help-
ful to Servi
ce personnel working with the
same or simi
lar issues. Unlike a Treasury
Regulation
or a Revenue Ruling, an Action
on Decision
is not an affirmative statement
of Service
position. It is not intended to
serve as pu
blic guidance and may not be
cited as pr
ecedent.
Actions on
Decisions shall be relied
upon withi
n the Service only as conclu-
sions appl
ying the law to the facts in the
particul
ar case at the time the Action on
Decision
was issued. Caution should be
exercise
d in extending the recommenda-
tion of th
e Action on Decision to similar
cases whe
re the facts are different. More-
over, th
e recommendation in the Action on
Decisio
n may be superseded by new legis-
lation,
regulations, rulings, cases, or Ac-
tions on
Decisions.
Prior to
1991, the Service published
acquies
cence or nonacquiescence only in
certain regula
r Tax Court opinions. The
Service has ex
panded its acquiescence
program to inc
lude other civil tax cases
where guidanc
e is determined to be help-
ful. Accordin
gly, the Service now may
acquiesce or n
onacquiesce in the holdings
of memorandu
m Tax Court opinions, as
well as those
of the United States District
Courts, Clai
ms Court, and Circuit Courts
of Appeal. Re
gardless of the court decid-
ing the case
, the recommendation of any
ActiononDe
cision will be published in
the Interna
l Revenue Bulletin.
The recomme
ndation in every Action
on Decision
will be summarized as ac-
quiescence
, acquiescence in result only,
or nonacqu
iescence. Both “acquiescence”
and “acqui
escence in result only” mean
that the Se
rvice accepts the holding of
the court i
n a case and that the Service
will foll
ow it in disposing of cases with
thesamec
ontrolling facts. However, “ac-
quiescen
ce” indicates neither approval
nor disap
proval of the reasons assigned
by the cou
rt for its conclusions; whereas,
“acquie
scence in result only” indicates
disagre
ement or concern with some or all
of those
reasons. “Nonacquiescence” sig-
nifies t
hat, although no further review was
sought,
the Service does not agree with
the hol
ding of the court and, generally,
will not follow
the decision in disposing
of cases invol
ving other taxpayers. In
reference to a
n opinion of a circuit court
of appeals, a “
nonacquiescence” indicates
that the Servi
ce will not follow the hold-
ingonanation
wide basis. However, the
Service will
recognize the precedential
impact of the
opinion on cases arising
within the ve
nue of the deciding circuit.
The Actions o
n Decisions published in
the weekly In
ternal Revenue Bulletin are
consolidate
d semiannually and appear in
the first Bu
lletin for July and the Cumula-
tive Bullet
in for the first half of the year. A
semiannual
consolidation also appears in
the first Bu
lletin for the following January
andintheC
umulative Bulletin for the last
half of the
year.
The Commis
sioner does not acquiesce
in the foll
owing decision:
Robinson K
nife Manufacturing
Company an
dSubsidiariesv.
Commissi
oner,
1
600F.3d12
1 (2d Cir. 2010),
rev’gT.C
. Memo 2009–9
1
Nonacquiesces to whether sales-based royalties that taxpayer paid for the right to use trademarks on the kitchen tools that it manufactures and sellsare production costs “allocable to property
produced” (inventory) within the meaning of Treas. Reg. §1.263A–1(e).
2011–9 I.R.B.February 28, 2011

February 28, 20112011–9 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 1221.
—Capital
Asset Defined
26 CFR 1.1221–3: Time and manner for electing cap-
ital asset treatment for certain self-created musical
works.
T.D. 9514
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Time and Manner for Electing
Capital Asset Treatment for
Certain Self-Created Musical
Works
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulation and removal of
temporary regulation.
SUMMARY: This document contains a fi-
nal regulation that provides the time and
manner rules for electing to treat the sale
or exchange of a musical composition or
a copyright in a musical work created by
the taxpayer (or received by the taxpayer
from the composition or work’s creator in
a transferred basis transaction) as the sale
or exchange of a capital asset. The regu-
lation reflects changes to the law made by
the Tax Increase Prevention and Reconcil-
iation Act of 2005 and the Tax Relief and
Health Care Act of 2006. The regulation
affects taxpayers who elect to treat gain or
loss from such a sale or exchange as capi-
tal gain or loss.
DATES:Effective Date:This regulation is
effective on February 7, 2011.
Applicability Date:For date of applica-
bility, see §1.1221–3(d).
FOR FURTHER INFORMATION
CONTACT: Jamie Kim, (202) 622–4950
(not a toll-free number).
SUPPLEMENTAR
Y INFORMATION:
Background
This document
contains an amendment
to the Income T
ax Regulations (26 CFR
part 1). On Feb
ruary 8, 2008, a tempo-
rary regulat
ion (T.D. 9379, 2008–1 C.B.
715) was publ
ishedintheFederal Regis-
ter(73 FR 746
4) that provided the time
and manner ru
les for electing capital as-
set treatmen
t for certain self-created musi-
cal works. A
notice of proposed rulemak-
ing (REG–15
3589–06, 2008–1 C.B. 730)
cross-refe
rencing the temporary regulation
also was pub
lishedintheFederal Reg-
ister(73 F
R 7503) on February 8, 2008.
No comment
s in response to the notice of
proposed r
ulemaking or requests to hold
a public he
aring were received, and no
hearing w
as held. This Treasury decision
adopts th
eproposedregulationwithminor
changes a
nd removes the temporary regu-
lation.
Section 1
221(a) of the Internal Revenue
Code (Cod
e) generally provides that cap-
ital ass
ets include all property held by a
taxpaye
r with certain specified exclusions.
Section
1221(a)(1) excludes from the defi-
nition o
f a capital asset inventory property
or prope
rtyheldbyataxpayerprimarily
for sal
e to customers in the ordinary course
of the t
axpayer’s trade or business. Section
1221(a
)(3) excludes from the definition of
a capit
al asset certain property — a copy-
right;
a literary, musical, or artistic compo-
sition
; a letter or memorandum; or similar
prope
rty — held by a taxpayer whose per-
sonal
efforts created the property (or held
by a ta
xpayer whose basis in the property
is det
ermined by reference to the basis of
such p
roperty in the hands of the taxpayer
whos
e personal efforts created the prop-
erty
).
Sect
ion 1221(b)(3) of the Code, added
by se
ction 204 of the Tax Increase Preven-
tion
and Reconciliation Act of 2005, Pub-
lic L
aw 109–222 (120 Stat. 345 (2005)),
and a
mended by section 412 of the Tax
Rel
ief and Health Care Act of 2006, Pub-
lic
Law 109–432 (120 Stat. 2922 (2006)),
pro
vides that, at the election of a taxpayer,
the
section 1221(a)(1) and (a)(3) exclu-
sio
ns from capital asset status will not ap-
plytoamusica
l composition or a copyright
in a musical wo
rk sold or exchanged by a
taxpayer desc
ribed in section 1221(a)(3).
Thus, if a tax
payer who owns a musi-
cal composit
ion or copyright in a musi-
cal work crea
ted by the taxpayer (or trans-
ferred to the
taxpayer by the composition
or work’s cr
eator in a transferred basis
transactio
n) elects the application of this
provision,
gain or loss from the sale or
exchange of
the musical composition or
copyright i
s treated as capital gain or loss.
Explanation of Provisions
This final r
egulation provides rules re-
garding th
e time and manner for electing
under sect
ion 1221(b)(3) to treat gain or
loss from t
he sale or exchange of certain
musical co
mpositions or copyrights in mu-
sical wor
ks as gain or loss from the sale or
exchange
of a capital asset.
Effective/Applicability Date
This regu
lation applies to elections un-
der secti
on 1221(b)(3) in taxable years be-
ginning a
fter May 17, 2006.
Special Analyses
It has bee
n determined that this Trea-
sury deci
sion is not a significant regula-
tory act
ion as defined in Executive Order
12866. T
herefore, a regulatory assessment
is not re
quired. It also has been determined
that sec
tion 553(b) of the Administrative
Procedu
re Act (5 U.S.C. chapter 5) does
not app
ly to this regulation, and because
the reg
ulation does not impose a collection
of info
rmation on small entities, the Regu-
latory
Flexibility Act (5 U.S.C. Chapter 6)
does no
t apply. Pursuant to section 7805(f)
of the
Code, the notice of proposed rule-
makin
g preceding this regulation was sub-
mitte
d to the Chief Counsel for Advocacy
of the
Small Business Administration for
comme
nt on its impact on small business.
Drafting Information
The pr
incipal author of this regulation is
Jami
e Kim of the Office of Associate Chief
Coun
sel (Income Tax & Accounting).
Howe
ver, other personnel from the IRS
2011–9 I.R.B.527February 28, 2011

and the Treasury Department participated
in its development.
*****
Adoption of Am
endments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.1221–3 is added to
read as follows:
§1.1221–3 Time and manner for electing
capital asset treatment for certain
self-created musical works.
(a)Description. Section 1221(b)(3) al-
lows an electing taxpayer to treat the sale
or exchange of a musical composition or
a copyright in a musical work created by
the taxpayer’s personal efforts (or having
a basis determined by reference to the ba-
sisofsuchpropertyinthehandsofatax-
payer whose personal efforts created such
property) as the sale or exchange of a cap-
ital asset. As a consequence, gain or loss
from the sale or exchange is treated as cap-
ital gain or loss.
(b)Time and manner for making the
election. An election described in this sec-
tion is made separately for each musical
composition (or copyright in a musical
work) sold or exchanged during the tax-
able year. An election must be made on
or before the due date (including exten-
sions) of the income tax return for the
taxable year of the sale or exchange. The
election is made on Schedule D,"Capital
Gains and Losses,”of the appropriate in-
come tax form (for example, Form 1040,
"U.S. Individual Income Tax Return;"
Form 1065,"U.S. Return of Partnership
Income;"Form 1120,"U.S. Corporation
Income Tax Return") by treating the sale
or exchange as the sale or exchange of a
capital asset, in accordance with the form
and its instructions.
(c)Revocability of election. The elec-
tion described in this section is revocable
with the consent of the Commissioner. To
seek consent to revoke the election, a tax-
payer must submit a request for a letter
ruling under the applicable administrative
procedures. Alternatively, an automatic
extension of 6 months from the due date
of the taxpayer’s income tax return (ex-
cluding extensions) is granted to revoke
the election, provided the taxpayer timely
filed the taxpayer’s income tax return and,
within this 6-month extension period, the
taxpayer files an amended income tax re-
turn that treats the sale or exchange as the
sale or exchange of property that is not a
capital asset.
(d)Effective/applicability date.This
section applies to elections under section
1221(b)(3) in taxable years beginning af-
ter May 17, 2006.
§1.1221–3T [Removed]
Par. 3. Section 1.1221–3T is removed.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved January 28, 2011.
Michael Mundaca,
Assistant Secretary of
theTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on February 4,
2011, 8:45 a.m., and published in the issue of the Federal
Register for February 7, 2011, 76 F.R. 6553)
February 28, 20115282011–9 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2011–13
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the cor-
porate bond monthly yield curve (and
the corresponding spot segment rates),
and the 24-month average segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i), as amended by the Pen-
sion Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to cal-
culate current liability and to determine
the required contribution under § 412(l)
for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conser-
vatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
January 2011 is 5.57 percent. Pursuant
to Notice 2004–34, the Service has de-
termined this rate as the average of the
monthly yields for the included corporate
bond indices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
February20116.10
5.49
6.10
YIELD CURVE AND SEGMENT
RATES
Generally for plan years beginning
after 2007 (except for delayed effective
dates for certain plans under sections 104,
105, and 106 of PPA), § 430 of the Code
specifies the minimum funding require-
ments that apply to single employer plans
pursuant to § 412. Section 430(h)(2) spec-
ifies the interest rates that must be used
to determine a plan’s target normal cost
and funding target. Under this provision,
present value is generally determined us-
ing three 24-month average interest rates
(“segment rates”), each of which applies
to cash flows during specified periods.
However, an election may be made under
§ 430(h)(2)(D)(ii) to use the monthly yield
curve in place of the segment rates. Sec-
tion 430(h)(2)G) set forth a transitional
rule applicable to plan years beginning in
2008 and 2009 under which the segment
rates were blended with the corporate bond
weighted average described above, includ-
ing an election under § 430(h)(2)(G)(iv)
foranemployertousethesegmentrates
without the transitional rule.
Notice 2007–81, 2007–2 C.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the tar-
get normal cost and the funding target.
Pursuant to Notice 2007–81, the monthly
corporate bond yield curve derived from
January 2011 data is in Table I at the end
of this notice. The spot first, second, and
third segment rates for the month of Jan-
uary 2011 are, respectively, 1.93, 5.25,
and 6.42. The three 24-month average
corporate bond segment rates applicable
for February 2011 are as follows:
First
Segment
Second
Segment
Third
Segment
2.81
5.76
6.46
The transitional rule of § 430(h)(2)(G)
does not apply to plan years beginning af-
ter December 31, 2009. Therefore, for a
plan year beginning after 2009 with a look-
back month to February 2011, the funding
segment rates are the three 24-month aver-
age corporate bond segment rates applica-
ble for February 2011, listed above without
blending for any transitional period.
2011–9 I.R.B.529February 28, 2011

30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
ble interest rate for a month is the annual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Treasury
securities for January 2011 is 4.52 percent.
The Service has determined this rate as
the average of the daily determinations of
yield on the 30-year Treasury bond matur-
ing in November 2040.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B)specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est rate used to calculate current liability
for this purpose must be no more than 5
percent above and no more than 10 percent
below the weighted average of the rates of
interest on 30-year Treasury securities dur-
ing the four-year period ending on the last
day before the beginning of the plan year.
Notice 88–73, 1988–2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The following rates
were determined for plan years beginning
in the month shown below.
For Plan Year
s
Beginning inPermissible
Range
MonthYear
30-Year
Treasury
Weighted
Average
90%to
105%
February20114.273.844.48
MINIMUM PRE
SENT VALUE
SEGMENT RAT
ES
Generally f
or plan years beginning af-
ter Decemb
er 31, 2007, the applicable in-
terest rat
es under § 417(e)(3)(D) are seg-
ment rates
computed without regard to a
24-month av
erage. For plan years begin-
ning in 2008
through 2011, the applica-
ble interes
t rates are the monthly spot seg-
ment rates b
lended with the applicable rate
under § 417
(e)(3)(A)(ii)(II) as in effect
for plan ye
ars beginning in 2007. Notice
2007–81 pr
ovides guidelines for determin-
ing the mini
mum present value segment
rates. Purs
uant to that notice, the min-
imum presen
t value transitional segment
rates deter
mined for January 2011, tak-
ingintoac
count the January 2011 30-year
Treasury r
ate of 4.52 stated above, are as
follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20102.974.96
5.66
2011
2.455.10
6.04
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities Di-
vision. Mr. Montanaro may be e-mailed at
RetirementPlanQuestions@irs.gov.
February 28, 20115302011–9 I.R.B.

Table I
Monthly Yield Curve for January 2011
Derived from January 2011 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.50.5220.5
6.04
40.5
6.46
60.5
6.61
80.5
6.68
1.00.8121.06.0641.06.4761.06.6181.06.68
1.5
1.11
21.5
6.08
41.5
6.47
61.5
6.61
81.5
6.69
2.01.4322.06.1042.06.4862.06.6282.0
6.69
2.5
1.77
22.5
6.11
42.5
6.48
62.5
6.62
82.5
6.69
3.02.1123.06.1343.0
6.49
63.06.6283.0
6.69
3.5
2.44
23.56.1543.5
6.49
63.5
6.62
83.5
6.69
4.02.7624.06.1644.06.5064.06.6384.0
6.69
4.5
3.06
24.5
6.18
44.56.5064.5
6.63
84.5
6.69
5.0
3.33
25.0
6.19
45.06.5165.0
6.63
85.0
6.70
5.53.5825.5
6.20
45.56.5165.5
6.63
85.5
6.70
6.03.8126.06.2246.0
6.52
66.06.6386.06.70
6.5
4.01
26.5
6.23
46.56.5266.5
6.64
86.5
6.70
7.04.2027.06.2447.06.5267.06.6487.06.70
7.5
4.37
27.56.2547.56.5367.5
6.64
87.5
6.70
8.0
4.52
28.06.2748.0
6.53
68.06.6488.06.70
8.5
4.66
28.5
6.28
48.56.5468.5
6.64
88.5
6.70
9.04.7929.06.2949.0
6.54
69.0
6.65
89.0
6.70
9.5
4.91
29.56.3049.5
6.54
69.5
6.65
89.56.71
10.05.0230.06.3150.06.5570.06.65
90.0
6.71
10.55.1230.5
6.32
50.56.55 70.56.65
90.56.71
11.0
5.21
31.06.33
51.06.55
71.0
6.65
91.0
6.71
11.55.3031.5
6.34
51.56.5671.5
6.6691.56.71
12.0
5.37
32.0
6.3552.06.56
72.06.66
92.0
6.71
12.55.4432.56.3552.56.5672.5
6.6692.56.71
13.05.5133.06.3653.06.5773.06.66
93.0
6.71
13.55.5633.5
6.37
53.56.5773.5
6.6693.56.71
14.0
5.62
34.06.38
54.06.57
74.06.66
94.0
6.72
14.55.6734.5
6.39
54.56.5874.5
6.6794.56.72
15.05.7135.0
6.39
55.06.5875.0
6.6795.06.72
15.55.7535.5
6.40
55.56.5875.5
6.6795.56.72
16.05.7936.06.4156.06.5976.06.67
96.0
6.72
16.55.8336.5
6.41
56.5
6.59
76.5
6.6796.56.72
17.0
5.86
37.06.42
57.0
6.5977.06.67
97.0
6.72
17.5
5.89
37.5
6.43
57.5
6.59
77.5
6.6797.56.72
18.05.9238.06.43
58.0
6.6078.06.68
98.0
6.72
18.5
5.95
38.5
6.44
58.5
6.60
78.5
6.6898.56.72
19.0
5.97
39.0
6.4559.06.60
79.0
6.68
99.0
6.72
19.56.0039.5
6.45
59.56.6079.56.6899.56.73
20.06.0240.06.4660.06.6180.06.68100.06.73
2011–9 I.R.B.531February 28, 2011

Part IV. Items o
fGeneralInterest
Source Rules I
nvolving U.S.
Possessions a
nd Other
Conforming Ch
anges;
Correction
Announcemen
t 2011–12
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Corr
ecting amendment.
SUMMARY: Thi
s document contains a
correction
to final regulations (T.D. 9391,
2008–1 C.B.
945) that were published
in theFeder
al Registeron Wednesday,
April 9, 200
8 (73 FR 19350) providing
rules unde
rsection937(b)oftheInternal
Revenue Co
de for determining whether
income is d
erived from sources within a
U.S. posse
ssion or territory specified in
section 9
37(a)(1) (generally referred to in
this prea
mble as a “territory”) and whether
income is
effectively connected with the
conduct o
f a trade or business within a ter-
ritory as
well as providing guidance under
section
932 and other provisions related to
the terr
itories.
DATES: T
his correction is effective on
January
25, 2011, and is applicable on
April 9,
2008.
FOR FURT
HER INFORMATION
CONTACT
: J. David Varley, (202)
435–52
62 (not a toll-free number).
SUPPLE
MENTARY INFORMATION:
Backgro
und
The fin
al regulations and removal of
tempor
ary regulations that are the subjects
of this
document are under sections 1,
170A, 8
61, 871, 876, 881, 884, 901, 931,
932, 93
3, 934, 935, 937, 957, 1402, 6012,
6038, a
nd 6046 of the Internal Revenue
Code.
Need f
or Correction
As pub
lished, final regulations
(T.D.
9391) contain an error that may
prove
to be misleading and is in need of
clari
fication.
*****
Correction of
Publication
Accordingly, 26 CFR part 1 is cor-
rected by making the following correcting
amendment:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.932–1 is amended
by revising paragraph (e)(1) to read as fol-
lows:
§ 1.932–1 Coordination of United States
and Virgin Islands income taxes.
*****
(e) * * * (1)U.S. returns. Except as
otherwise provided for returns filed under
paragraph (c)(2)(ii) of this section, a return
required under the rules of paragraphs (b)
and (c) of this section to be filed with the
United States must be filed as directed in
the applicable forms and instructions.
LaNita Van Dyke,
Chief, Publications and
Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by t
he Office of the Federal Register on January 24,
2011, 8:45 a.m., and published in the issue of the Federal
Register for January 25, 2011, 76 F.R. 4244)
Lactation Expenses as
Medical Expenses
Announcement 2011–14
The Internal Revenue Service has con-
cluded that breast pumps and supplies
that assist lactation are medical care under
§ 213(d) of the Internal Revenue Code be-
cause, like obstetric care, they are for the
purpose of affecting a structure or func-
tion of the body of the lactating woman.
Therefore, if the remaining requirements
of § 213(a) are met (for example, the tax-
payer’s total medical expenses exceed 7.5
percent of adjusted gross income), ex-
penses paid for breast pumps and supplies
that assist lactation are deductible medical
expenses. Amounts reimbursed for these
expenses unde
r flexible spending arrange-
ments, Archer
medical savings accounts,
health reimbu
rsement arrangements, or
health saving
s accounts are not income to
the taxpayer.
The Service wi
ll revise Publication 502,
Medical and De
ntal Expenses, to include
this informa
tion.
ADDITIONAL INFORMATION
For additional information concerning
this announcement, contact Amy S. Wei
of the Office of Associate Chief Counsel
(Income Tax and Accounting) at (202)
622–7900 (not a toll-free call).
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2011–17
The Internal Revenue Service has re-
voked its determination that the organi-
zations listed below qualify as organiza-
tions described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletinthatanorganizationnolonger
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an or-
ganization ceases to qualify under section
170(c)(2) if the organization has not timely
filed a suit for declaratory judgment under
section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
February 28, 20115322011–9 I.R.B.

are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on February 28, 2011
and would end on the date the court first
determines that the organization is not de-
scribed in section 170(c)(2) as more partic-
ularly set forth in section 7428(c)(1). For
individual contributors, the maximum de-
duction protected is $1,000, with a hus-
band and wife treated as one contributor.
This benefit is not extended to any indi-
vidual, in whole or in part, for the acts or
omissions of the organization that were the
basis for revocation.
Arid Lands Project
North Haven, ME
Christian Credit Counselors International,
Inc.
Santa Ana, CA
Consumer Credit Protection Agency, Inc.
Tampa, FL
Falls Consumer Credit Management, Inc.
Akron, OH
Falls Consumer Credit Management, Inc.
Saint Clairsville, OH
Gullahorn Family Supporting
Organization
Naples, FL
International Vision, Inc.
Washington, D.C.
Riverview Athletic Association, Inc.
Omaha, NE
Rising Stars Community Services, Inc.
Houston, TX
RFD Communications, Inc.
Omaha, NE
Revive Credit Counseling, Inc.
Santa Monica, CA
Neighborcare International, Inc.
Fairfield Grade, TN
Mexican American Research Center
Austin, TX
Modern Day Veterans 304 Chapter
Licking, MO
Modern Day Veterans 203 Chapter
Marble Hill, MO
Care of Crow Wing County
Brainerd, MN
Northwest Conservation Stewardship
Fund
Seattle, WA
Panhandle Land Conservancy, Inc.
Destin, FL
2011–9 I.R.B.533February 28, 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.
February 28, 2011i2011–9 I.R.B.

Numerical Finding List
1
Bulletin 2011–1 through 2011–9
Announcements:
2011-1, 2011-2 I.R.B.304
2011-2, 2011-3 I.R.B.324
2011-3, 2011-3 I.R.B.324
2011-4, 2011-4 I.R.B.424
2011-5, 2011-4 I.R.B.430
2011-6, 2011-4 I.R.B.433
2011-7, 2011-5 I.R.B.446
2011-8, 2011-5 I.R.B.446
2011-9, 2011-7 I.R.B.499
2011-10, 2011-7 I.R.B.499
2011-11, 2011-7 I.R.B.500
2011-12, 2011-9 I.R.B.532
2011-13, 2011-8 I.R.B.525
2011-14, 2011-9 I.R.B.532
2011-15, 2011-8 I.R.B.526
2011-16, 2011-7 I.R.B.500
2011-17, 2011-9 I.R.B.532
Notices:
2011-1, 2011-2 I.R.B.259
2011-2, 2011-2 I.R.B.260
2011-3, 2011-2 I.R.B.263
2011-4, 2011-2 I.R.B.282
2011-5, 2011-3 I.R.B.314
2011-6, 2011-3 I.R.B.315
2011-7, 2011-5 I.R.B.437
2011-8, 2011-8 I.R.B.503
2011-9, 2011-6 I.R.B.459
2011-10, 2011-6 I.R.B.463
2011-11, 2011-7 I.R.B.497
2011-12, 2011-8 I.R.B.514
2011-13, 2011-9 I.R.B.529
Proposed Regulations:
REG-149335-08, 2011-6 I.R.B.468
REG-146097-09, 2011-8 I.R.B.516
REG-124018-10, 2011-2 I.R.B.301
REG-131151-10, 2011-8 I.R.B.519
REG-131947-10, 2011-8 I.R.B.521
REG-132724-10, 2011-7 I.R.B.498
Revenue Procedures:
2011-1, 2011-1 I.R.B.1
2011-2, 2011-1 I.R.B.90
2011-3, 2011-1 I.R.B.111
2011-4, 2011-1 I.R.B.123
2011-5, 2011-1 I.R.B.167
2011-6, 2011-1 I.R.B.195
2011-7, 2011-1 I.R.B.233
2011-8, 2011-1 I.R.B.237
2011-9, 2011-2 I.R.B.283
Revenue Procedures— Continued:
2011-10, 2011-2 I.R.B.294
2011-11, 2011-4 I.R.B.329
2011-12, 2011-2 I.R.B.297
2011-13, 2011-3 I.R.B.318
2011-14, 2011-4 I.R.B.330
2011-15, 2011-3 I.R.B.322
2011-16, 2011-5 I.R.B.440
2011-17, 2011-5 I.R.B.441
2011-18, 2011-5 I.R.B.443
2011-19, 2011-6 I.R.B.465
Revenue Rulings:
2011-1, 2011-2 I.R.B.251
2011-2, 2011-2 I.R.B.256
2011-3, 2011-4 I.R.B.326
2011-4, 2011-6 I.R.B.448
Treasury Decisions:
9507, 2011-3 I.R.B.305
9508, 2011-7 I.R.B.495
9509, 2011-6 I.R.B.450
9510, 2011-6 I.R.B.453
9511, 2011-6 I.R.B.455
9512, 2011-7 I.R.B.473
9513, 2011-8 I.R.B.501
9514, 2011-9 I.R.B.527
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.
2011–9 I.R.B.iiFebruary 28, 2011

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2011–1 through 2011–9
Announcements:
85-88
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
2008-11
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2009-62
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Notices:
2006-87
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-25
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-77
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2008-107
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2010-27
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2010-59
Modified by
Notice 2011-5, 2011-3 I.R.B.314
2010-71
Modified and superseded by
Notice 2011-9, 2011-6 I.R.B.459
2010-79
Clarified and modified by
Notice 2011-4, 2011-2 I.R.B.282
Proposed Regulations:
REG-132554-08
Corrected by
Ann. 2011-11, 2011-7 I.R.B.500
Revenue Procedures:
72-50
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Revenue Procedures— Continued:
76-34
Modified and supersed by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
83-23
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
94-17
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
97-27
Clarified and modified by
Rev. Proc. 2011-4, 2011-1 I.R.B.330
2001-10
Modified by
Rev. Proc. 2011-4, 2011-4 I.R.B.330
2002-28
Modified by
Rev. Proc. 2011-4, 2011-4 I.R.B.330
2003-21
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2004-34
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Modified and clarified by
Rev. Proc. 2011-18, 2011-5 I.R.B.443
2006-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2006-56
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2008-52
Modified by
Notice 2011-4, 2011-2 I.R.B.282
Rev. Proc. 2011-17, 2011-5 I.R.B.441
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-39
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2010-1
Superseded by
Rev. Proc. 2011-1, 2011-1 I.R.B.1
2010-2
Superseded by
Rev. Proc. 2011-2, 2011-1 I.R.B.283
Revenue Procedures— Continued:
2010-3
Superseded by
Rev. Proc. 2011-3, 2011-1 I.R.B.111
2010-4
Superseded by
Rev. Proc. 2011-4, 2011-1 I.R.B.123
2010-5
Superseded by
Rev. Proc. 2011-5, 2011-1 I.R.B.167
2010-6
Superseded by
Rev. Proc. 2011-6, 2011-1 I.R.B.195
2010-7
Superseded by
Rev. Proc. 2011-7, 2011-1 I.R.B.233
2010-8
Superseded by
Rev. Proc. 2011-8, 2011-1 I.R.B.237
2010-9
Superseded by
Rev. Proc. 2011-9, 2011-2 I.R.B.283
2010-15
Updated by
Rev. Proc. 2011-13, 2011-3 I.R.B.318
2011-1
Corrected by
Ann. 2011-7, 2011-5 I.R.B.446
2011-8
Corrected by
Ann. 2011-8, 2011-5 I.R.B.446
2011-11
Corrected by
Ann. 2011-9, 2011-7 I.R.B.499
Revenue Rulings:
81-100
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2004-67
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2008-40
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2011-3
Corrected by
Ann. 2011-16, 2011-7 I.R.B.500
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.
February 28, 2011iii2011–9 I.R.B.

Treasury Decisions:
9391
Corrected by
Ann. 2011-12, 2011-9 I.R.B.532
9505
Corrected by
Ann. 2011-10, 2011-7 I.R.B.499
2011–9 I.R.B.ivFebruary 28, 2011

INDEX
Internal Revenue Bulletin 2011–1 through
2011–9
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Affordable Care Act, nondiscrimination provisions applicable to
insured group health plans (Notice 1) 2,259
Cash balance plans and other hybrid defined benefit pension
plans, correction to TD 9505 (Ann 10) 7,499; correction to
REG–132554–08 (Ann 11) 7,500
Determination letters, issuing procedures (RP 6) 1,195
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 2011 (Notice 7) 5,437
February 2011 (Notice 13) 9,529
Guidance under section 162(m)(6) (Notice 2) 2,260
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,111
Associate Chief Counsel (International) (RP 7) 1,233
And general information letters, procedures (RP 4) 1,123
User fees, request for letter rulings (RP 8) 1,237; correction
(Ann 8) 5,446
Proposed Regulations:
26 CFR 1.411(b)(5)–1, revised;hybrid retirement plans; cor-
rection to REG–132554–08 (Ann 11) 7,500
Qualified plans:
Covered compensation tables, permitted disparity (RR 3) 4,
326, correction (Ann 16) 7,500
Group trusts (RR 1) 2,251
Minimum funding requirements relief (Notice 3) 2,263
Regulations:
26 CFR 1.411(b)(5)–1, revised, hybrid retirement plans; cor-
rection to TD 9505 (Ann 10) 7,499
Technical advice to IRS employees (RP 5) 1,167
EMPLOYMENT TAX
Electronic Funds Transfer (ETF) of depository taxes (TD 9507)
3,305
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6071, amended; 31.6302–0 thru –2, –4, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (ETF) of depository taxes (TD 9507) 3,305
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Withholding on wages of nonresident alien employees perform-
ing services within the United States (Notice 12) 8,514
ESTATE TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXCISE TAX
Biodiesel and alternative fuels, claims for 2010 (Notice 10) 6,
463
Branded prescription drug sales (Notice 9) 6,459
Electronic Funds Transfer (ETF) of depository taxes (TD 9507)
3,305
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6302–0 thru –2, –4, amended; 31.6071, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
February 28, 2011v2011–9 I.R.B.

EXCISE TAX—Cont.
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (EFT) of depository taxes (TD 9507) 3,305
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXEMPT ORGANIZATIONS
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Filing thresholds for Form 990 (RP 15) 3,322
Letter rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,111
Exemption application determination letter rulings under
sections 501, 509, 4940, and 4942 (RP 10) 2,294
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 2,283
And general information letters, procedures (RP 4) 1,123
User fees, request for letter rulings (RP 8) 1,237; correction
(Ann 8) 5,446
List of organizations classified as private foundations (Ann 3) 3,
324; (Ann 13) 8,525
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6071, amended; 31.6302–0 thru –2, –4, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (EFT) of depository taxes (TD 9507) 3,305
Revocations (Ann 2) 3,324; (Ann 15) 8,526; (Ann 17) 9,532
Technical advice to IRS employees (RP 5) 1,167
GIFT TAX
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Proposed Regulations:
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Technical Advice Memoranda (TAMs) (RP 2) 1,90
INCOME TAX
Accounting methods, automatic consent for Blue Cross/Blue
Shield and certain other health organizations to change method
of accounting for unearned premiums (Notice 4) 2,282
Accrual of liabilities (RP 17) 5,441
INCOME TAX—Cont.
Bonds:
Qualified Zone Academy Bond limitation for 2011 (RP 19) 6,
465
Capital assets, election for certain musical works (TD 9415) 9,
527
Cost-of-living adjustments for inflation for 2011 (RP 12) 2,297
Debt instruments:
Deterioration in financial condition of issuer (TD 9513) 8,501
For publicly traded property, issue price (REG–131947–10)
8,521
Deductions for contributions toqualified nuclear decommission-
ing trusts (TD 9512) 7,473
Deductions for medical expenses (Ann 14) 9,532
Definition of omission from gross income (TD 9511) 6,455
Disciplinary actions involving attorneys, certified public ac-
counts, enrolled agents, and enrolled actuaries (Ann 4) 4,424
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Employer-provided vehicles, cents-per-mile rule, maximum ve-
hicle values for 2011 (RP 11) 4,329;correction(Ann9)7,499
Extension of Fast Track Settlement (FTS) for SB/SE taxpayer
pilot program (Ann 5) 4,430
Farmer and fisherman income averaging (TD 9509) 6,450
Guidance under section 162(m)(6) (Notice 2) 2,260
Health FSA/HRA debit cards, purchase over-the-counter drug
purchases (Notice 5) 3,314
Housing cost amounts eligible for exclusion or deduction, 2011
(Notice 8) 8,503
Implementation of rules governing tax return preparers (Notice
6) 3,315
Income recognition for advance payments received from the sale
of gift cards (RP 18) 5,443
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2011 (RR 2) 2,256
February 2011 (RR 4) 6,448
Letter rulings:
And determination letters, areas which will not be issued
from:
Associate Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,111
Associate Chief Counsel (International) (RP 7) 1,233
And information letters issued byAssociate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1;
correction to Rev. Proc. 2011–1 (Ann 7) 5,446
Method of accounting, automatic and non-automatic changes
(RP 14) 4,330
Penalties, substantial understatement, preparer penalty (RP 13)
3,318
Private foundations, organizations now classified as (Ann 3) 3,
324; (Ann 13) 8,525
Proposed Regulations:
26 CFR 1.263A–0 thru –3, amended; 1.471–3,
amended; sales-based royalties and vendor allowances
(REG–149335–08) 6,468
2011–9 I.R.B.viFebruary 28, 2011

INCOME TAX—Cont.
26 CFR 1.863–10, added; source of income from qualified
fails charges (REG–132724–10) 7,498
26 CFR 1.1273–1, –2, amended; 1.1274–3, amended;
1.1275–2, amended; property traded on an established
market (REG–131947–10) 8,521
26 CFR 1.6049–4, revised; 1.6049–5, –6, amended;
1.6049–8, revised; 31.3406(g)–1, revised; guid-
ance on reporting interest paid to nonresident aliens
(REG–146097–09) 8,516
26 CFR Part 300.0, .4, .5, .6, amended; Parts 300.9 thru
.11, added; user fees relative to retirement plan agents
(REG–124018–10) 2,301
26 CFR 301.7623–1, amended; rewards and awards for in-
formation relating to violations of internal revenue laws
(REG–131151–10) 8,519
Publication:
1220, changes affecting tax year 2010 filing of information
returns (Ann 1) 2,304
Real Estate Investment Trust (REIT) distressed debt (RP 16) 5,
440
Regulations:
26 CFR 1.468A–0T thru –9T, removed; 1.468A–0 thru –9,
added; 602.101, amended; deductions for contributions to
qualified nuclear decommissioning trusts (TD 9512) 7,473
26 CFR 1.863–10T, added; source of income from qualified
fails charges (TD 9508) 7,495
26 CFR 1.932–1, amended; source rules involving U.S. pos-
sessions and other conforming changes; correction to TD
9391 (Ann 12) 9,532
26 CFR 1.1001–3, amended; modifications of debt instru-
ments (TD 9513) 8,501
26 CFR 1.1221–3; added; 1.221–1–3T, removed; time and
manner rules for electing capital asset treatment for certain
self-created musical works (TD 9415) 9,527
26 CFR 1.1301–1, amended; 1.1301–1T, removed; farmer
and fisherman income averaging (TD 9509) 6,450
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6302–0 thru –2, –4, amended; 31.6302(c)–2A, re-
moved; 31.6302(c)–3, amended; 40.6302–1T, amended;
40.6302(c)–3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; electronic
funds transfer of depository taxes (TD 9507) 3,305
26 CFR 1.6012–2, amended; requirement of a statement dis-
closing uncertain tax positions (TD 9510) 6,453
26 CFR 301.6229(c)(2)–1, added; 301.6229(c)(2)–1T, re-
moved; 301.6501(e)–1, added; 301.6501(e)–1T, removed;
definition of omission from gross income (TD 9511) 6,455
Relief for tax return preparers who have pending PTIN applica-
tions (Notice 11) 7,497
Reporting requirements for interest paid to nonresident alien in-
dividuals (REG–146097–09) 8,516
Requirement of a statement disclosing uncertain tax positions
(TD 9510) 6,453
Revocations, exempt organizations (Ann 2) 3,324; (Ann 15) 8,
526; (Ann 17) 9,532
INCOME TAX—Cont.
Rewards and awards for information relating to violations of in-
ternal revenue laws (REG–131151–10) 8,519
Sales-based royalties and vendor allowances (REG–149335–08)
6,468
Source of income from qualified fails charges (TD 9508) 7,495;
(REG–132724–10) 7,498
Source rules involving U.S. possessions and other conforming
changes; corrections to TD 9391 (Ann 12) 9,532
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Test of procedures for mediation and arbitration for Offer in
Compromise (OIC) and Trust Fund Recovery Penalty (TFRP)
cases in appeals (Ann 6) 4,433
Userfeesrelatingtoenrolledagents and enrolled retirement plan
agents (REG–124018–10) 2,301
SELF-EMPLOYMENT TAX
Electronic Funds Transfer (EFT) of depository taxes (TD 9507)
3,305
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann7)5,446
Regulations:
26 CFR 1.1462–1, amended; 1.6302–1 thru –4, amended;
31.6071, amended; 31.6302–0 thru –2, –4, amended;
31.6302(c)–2A, removed; 31.6302(c)–3, amended;
40.6302(c)–1 thru –3, amended; 301.6302–1, amended;
301.6656–1, amended; 301.7502–2, removed; Electronic
Funds Transfer (ETF) of depository taxes (TD 9507) 3,305
Technical Advice Memoranda (TAMs) (RP 2) 1,90
February 28, 2011vii2011–9 I.R.B.

INTERNAL REVENUE BULLETIN
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