Internal Revenue Bulletin 2012-31 (PDF rendition): IRS Notices

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Bulletin No. 201
2-31
July 30, 2012
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
Notice 2012–39, page 95.
This notice provides guidance under section 367(d) of the Code
addressing transactions that raise significant policy concerns
involving transfers of intangible property by a domestic corpo-
ration to a foreign corporation in certain corporate reorganiza-
tions.
Notice 2012–48, page 102.
This notice solicits applications for the allocation of available
amounts of national bond issuance authority limitation (volume
cap) for Tribal Economic Development Bonds under section
7871(f) of the Code. The notice provides guidance on: (1)
the application requirements and forms for requests for volume
cap allocations, (2) the general process that will be used by the
IRS to allocate the volume cap, and (3) information reporting to
the IRS concerning various aspects of the allocation process
and the issuance of Tribal Economic Development Bonds pur-
suant to an allocation of volume cap.
Notice 2012–49, page 119.
2012 section 43 inflation adjustment.This notice an-
nounces the inflation adjustment factor and phase-out amount
for the enhanced oil recovery credit for taxable years begin-
ning in the 2012 calendar year. The format of the notice is
identical to the format of previously published notices on this
issue. The notice concludes that because the reference price
for the 2011 calendar year ($95.73) exceeds $28 multiplied
by the inflation adjustment factor for the 2011 calendar year
($43.92) by $51.81, the enhanced oil recovery credit for qual-
ified costs paid or incurred in 2012 is phased out completely.
The notice also contains the previously published figures for
taxable years beginning in the 1991 through 2011 calendar
years.
Notice 2012–50, page 121.
2012 marginal production rates.This notice announces
that under section 613A(c)(6)(C) of the Code, the applicable
percentage for purposes of determining percentage depletion
on marginal properties for calendar year 2012 is 15 percent.
The format of the notice is identical to the format of notices
previously published on this issue.
EMPLOYEE PLANS
Notice 2012–47, page 98.
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 July 2012;
the 24-month average segment rates; the funding transitional
segment rates applicable for July 2012; and the minimum
present value transitional rates for June 2012. However, the
notice does not reflect changes to segment rates required
under the Moving Ahead for Progress in the 21st Century Act
(MAP-21).
Fi
nding Lists begin on page ii.
Index for July begins on page iv.

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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.
July 30, 20122012–31 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Regulations Under Section
367(d) Applicable to
Certain Outbound Asset
Reorganizations
Notice 2012–39
SECTION 1. OVERVIEW
This notice provides guidance under
section 367(d) of the Internal Revenue
Code (Code). The guidance addresses
transactions that raise significant policy
concerns involving certain transfers of
intangible property by a domestic cor-
poration to a foreign corporation in an
exchange described in section 361(a) or (b)
(section 361 exchange). The Internal Rev-
enue Service (IRS) and the Department
of the Treasury (Treasury Department)
will issue regulations that incorporate the
guidance described in this notice. The reg-
ulations will apply to transfers occurring
on or after July 13, 2012.
SECTION 2. BACKGROUND
Subject to certain exceptions, section
367(a) generally applies to the transfer
of property by a United States person to
a foreign corporation in an exchange de-
scribed in section 332, 351, 354, 356, or
361. Section 367(d)(1) provides that, ex-
cept as provided in regulations, if a United
States person transfers any intangible
property (within the meaning of section
936(h)(3)(B)) to a foreign corporation
in an exchange described in section 351
or 361, section 367(d) (and not section
367(a)) applies to such transfer. Accord-
ingly, income or gain attributable to the
transfer of property by a U.S. person to
a foreign corporation in an exchange de-
scribed in section 351 or 361 is taken into
account either in accordance with section
367(d)(2)(A)(ii)(I) or (II) (as described be-
low), or in accordance with section 367(a).
Section 367(d)(2)(A) provides that the
United States person transferring the in-
tangible property is treated as having sold
the property in exchange for payments
that are contingent upon the productivity,
use, or disposition of such property. The
transferor is treated as receiving amounts
that reasonably reflect the amounts that
would have been received: (1) annu-
ally in the form of such payments over
the useful life of such property (section
367(d)(2)(A)(ii)(I)), or (2) in the case of
a disposition of the intangible property
following such transfer (whether direct
or indirect), at the time of the disposi-
tion (section 367(d)(2)(A)(ii)(II)). For this
purpose, an indirect disposition of the in-
tangible property following the transfer
includes a disposition of the transferor’s
interest in the transferee corporation.
S. Rep. No. 169, 98th Cong., 2d Sess.,
at 367 (1984). The amounts taken into
account under section 367(d)(2)(A)(ii)
must be commensurate with the income
attributable to the intangible. Section
367(d)(2)(A) (flush language).
Section 367(d)(2)(B) provides that for
purposes of chapter 1 of the Code the earn-
ings and profits of a foreign corporation to
which the intangible property was trans-
ferred are reduced by the amount required
to be included in the income of the trans-
feror of the intangible property. Section
367(d)(2)(C) provides that for purposes
of chapter 1 of the Code any amount in-
cluded in gross income pursuant to section
367(d) is treated as ordinary income. For
purposes of applying section 904(d), any
amount included in income under section
367(d) is treated in the same manner as
if such amount were a royalty. Section
367(d)(2)(C).
Section 1.367(d)–1T(c)(1) provides
that if a U.S. person transfers intangible
property that is subject to section 367(d) to
a foreign corporation (transferee foreign
corporation) in an exchange described in
section 351 or 361, then such person is
treated as having transferred that property
in exchange for annual payments con-
tingent on the productivity or use of the
property. The regulation further provides
that such person shall, over the useful
life of the property, annually include in
gross income an amount that represents
an appropriate arm’s-length charge for the
use of the property. §1.367(d)–1T(c)(1).
For this purpose, the appropriate charge
is determined under section 482 and the
regulations thereunder.Id.
Section 1.367(d)–1T(d)(1) provides
rules that apply when a U.S. person trans-
fers intangible property that is subject to
section 367(d) to a transferee foreign cor-
poration in an exchange described in sec-
tion 351 or 361 and, within the useful life
of the intangible property, that U.S. trans-
feror subsequently disposes of the stock of
the transferee foreign corporation to a per-
son that is not a related person (within the
meaning of §1.367(d)–1T(h)). The rules
generally provide that the U.S. transferor
is treated as having simultaneously sold
the intangible property to the unrelated
person acquiring the stock of the transferee
foreign corporation. §1.367(d)–1T(d)(1).
The U.S. transferor recognizes gain (but
not loss) in an amount equal to the differ-
ence between the fair market value of the
transferred intangible property on the date
of the subsequent disposition and the U.S.
transferor’s former adjusted basis in that
property.Id.
Section 1.367(d)–1T(e)(1) provides
rules that apply when a U.S. person trans-
fers intangible property that is subject
to section 367(d) to atransferee foreign
corporation in an exchange described in
section 351 or 361 and, within the useful
life of the transferred intangible property,
the U.S. transferor subsequently transfers
the stock of the transferee foreign cor-
poration to U.S. persons that are related
to the transferor (within the meaning of
§1.367(d)–1T(h)). These rules generally
provide, in part, that the related U.S. per-
sons, over the useful life of the property,
annually include in gross income a pro-
portionate share of the contingent annual
payments that would otherwise be deemed
to be received by the U.S. transferor under
§1.367(d)–1T(c). §1.367(d)–1T(e)(1).
Section 1.367(d)–1T(g)(1)(i) provides
that if a U.S. person is required to recog-
nize income under certain provisions of
the regulations under section 367(d), in-
cluding §1.367(d)–1T(c), and the amount
deemed to be received is not actually paid
by the transferee foreign corporation, then
the U.S. person may establish an account
receivable from the transferee foreign
corporation equal to the amount deemed
paid that was not actually paid. Such
account receivable may be established
and paid without further U.S. income
tax consequences to the U.S. transferor
or the transferee foreign corporation.
§1.367(d)–1T(g)(1)(i).
2012–31 I.R.B.95July 30, 2012

SECTION 3. TRANSACTIONS AT
ISSUE
The IRS and the Treasury Department
are aware that certain taxpayers are engag-
ing in transactions intended to repatriate
earnings from foreign corporations with-
out the appropriate recognition of income.
In one such transaction, USP, a domestic
corporation, owns 100 percent of the stock
of UST, a domestic corporation. USP’s
basis in its UST stock equals its value of
$100x. UST’s sole asset is a patent with a
tax basis of zero. UST has no liabilities.
USP also owns 100 percent of the stock of
TFC, a foreign corporation. UST transfers
the patent to TFC in exchange for $100x
of cash and, in connection with the trans-
fer, UST distributes the $100x of cash to
USP and liquidates.
The taxpayer takes the position that nei-
ther USP nor UST recognizes gain or divi-
dend income on the receipt of the $100x of
cash. USP then applies the section 367(d)
regulations to include amounts in gross in-
come under §1.367(d)–1T(c)(1) in subse-
quent years. USP also applies the 367(d)
regulations to establish a receivable from
TFC in the amount of USP’s aggregate
income inclusion. USP takes the posi-
tion that TFC’s repayment of the receiv-
able does not give rise to income (notwith-
standing the prior receipt of $100x in con-
nection with the reorganization). Accord-
ingly, under these positions, the transac-
tions have resulted in a repatriation in ex-
cess of $100x ($100x at the time of the re-
organization and then through repayment
of the receivable in the amount of USP’s
income inclusions over time) while only
recognizing income in the amount of the
inclusions over time.
The IRS and the Treasury Department
understand that other transactions may be
structured to have the same or similar ef-
fect, including, for example, transactions
that involve TFC’s assumption of liabili-
ties of UST. Similar results may also be
achieved in cases in which a controlled for-
eign corporation uses deferred earnings to
fund an acquisition of all or part of the
stock of a domestic corporation from an
unrelated party for cash, followed by an
outbound asset reorganization of the do-
mestic corporation to avoid an income in-
clusion under section 956. The IRS and
the Treasury Department believe that these
transactions raise significant policy con-
cerns, and accordingly, intend to revise
the regulations under section 367(d) in the
manner described in this notice.
SECTION 4. REGULATIONS TO BE
ISSUED
.01 In General
The IRS and the Treasury Depart-
ment will issue regulations addressing the
transfer by a domestic corporation (U.S.
transferor) of section 367(d) property in a
section 361 exchange to a transferee for-
eign corporation (outbound section 367(d)
transfer) that incorporate the rules de-
scribed in this notice. The regulations will
ensure that, with respect to all outbound
section 367(d) transfers, the total income
to be taken into account under section
367(d) is either included in income by the
U.S. transferor in the year of the reorgani-
zation or, where appropriate, over time by
one or more qualified successors. Any in-
come taken into account under this notice
must be commensurate with the income
attributable to the section 367(d) property
transferred in the outbound section 367(d)
transfer. Section 367(d)(2)(A) (flush lan-
guage). Except as provided below, the
rules described in this notice, rather than
§1.367(d)–1T(c), (d), (e), and (g), will
govern outbound section 367(d) transfers.
For purposes of this notice, references to
“stock received” include stock deemed
received in a transaction.
.02 U.S. Transferor Takes into Account
Income under Section 367(d)(2)(A)(ii)(I)
In an outbound section 367(d) transfer,
the U.S. transferor will take into account
income under section 367(d)(2)(A)(ii)(I)
with respect to each qualified successor, if
any, by treating as a prepayment of such
income the product of the section 367(d)
percentage multiplied by the sum of: (i)
the money and fair market value of other
property (within the meaning of section
356) received by the qualified successor
in exchange for, or with respect to, stock
of the U.S. transferor, reduced by the por-
tion of any U.S. transferor distributions
received by the qualified successor; and
(ii) the product of the qualified successor’s
ownership interest percentage multiplied
by the amount of non-qualifying liabilities
that are either assumed (within the mean-
ing of section 357(d)) by the transferee for-
eign corporation in the reorganization or
satisfied by the U.S. transferor with money
or other property (within the meaning of
section 361) provided by the transferee for-
eign corporation. As a prepayment of such
income, the amount is included in income
by the U.S. transferor in the year of the
outbound section 367(d) transfer, regard-
less of the productivity of the transferred
section 367(d) property in the year of the
transfer or in subsequent years.
.03 U.S. Transferor Takes into Account
Income under Section 367(d)(2)(A)(ii)(II)
In an outbound section 367(d) trans-
fer, the U.S. transferor will also take
into account income under section
367(d)(2)(A)(ii)(II) in an amount equal to
the product of: (i) the sum of the owner-
ship interest percentages of all non-qual-
ified successors, if any, multiplied by (ii)
the amount of gain realized on all of the
section 367(d) property transferred in the
section 361 exchange.
.04 Treatment of Qualified Successors
Consistent with the principles of
§1.367(d)–1T(e)(1)(ii) and (iii), except
as provided in this paragraph 4.04, each
qualified successor will take into account
the income attributable to a proportion-
ate share of the contingent annual pay-
ments that the U.S. transferor would have
been treated as receiving under section
367(d)(2)(A)(ii)(I) and §1.367(d)–1T(c)
had the U.S. transferor remained in exis-
tence and retained the qualified stock (or,
in the case of certain distributions under
section 355, had the U.S. transferor re-
tained the qualified stock) received in the
reorganization (assuming for this purpose
that the transfer continues to qualify as
an exchange described in section 361),
and had the U.S. transferor not recognized
any income under section 4 of this no-
tice. A qualified successor’s proportionate
share of such contingent annual payments
is the product of the contingent annual
payments multiplied by the qualified suc-
cessor’s ownership interest percentage.
The income attributable to a qualified
successor’s proportionate share of the con-
tingent annual payments is excluded from
gross income to the extent of the income
included by the U.S. transferor under sec-
tion 4.02 of this notice that is attributable
to the qualified successor (credit amount).
July 30, 2012962012–31 I.R.B.

A qualified successor may, in accor-
dance with §1.367(d)–1T(g)(1), establish
an account receivable for any contingent
annual payments included in gross income
by the qualified successor under this no-
tice.
Qualified successors are subject to the
rules of §1.367(d)–1T, as modified by this
paragraph 4.04. Thus, for example, if a
qualified successor subsequently transfers
qualified stock received in the reorganiza-
tion to a U.S. person that is related (within
the meaning of §1.367(d)–1T(h)) to the
qualified successor, §1.367(d)–1T(e) will
apply to such transfer. In this case, a pro-
portionate amount ofany remaining credit
amount attributable to the qualified suc-
cessor can be taken into account by such
related U.S. person in the same manner as
it could have been taken into account by
the qualified successor.Alternatively, for
example, if a qualified successor subse-
quently transfers qualified stock to a U.S.
person that is unrelated to the qualified
successor or to a person that is not a U.S.
person, §1.367(d)–1T(d) will apply to
such transfer. In this case, a proportionate
amount of any remaining credit amount at-
tributable to the qualified successor can be
taken into account to reduce the amount of
gain recognized under §1.367(d)–1T(d).
.05 Definitions
The following definitions apply for pur-
poses of this notice:
(1)Non-qualifying liabilities—(i)In
general. Except as provided in paragraph
(1)(ii) of this section 5, non-qualifying
liabilities include all liabilities of the U.S.
transferor other than a liability:
(A) That was incurred in the ordinary
course of the U.S. transferor’s active trade
or business (within the meaning of section
367(a)(3)), if any,
(B) That did not arise in connection
with the reorganization, and
(C) That is owed to an unrelated person.
For this purpose, an unrelated person is any
person that does not have a relationship
to the U.S. transferor described in section
267(b) or 707(b) immediately before the
reorganization.
(ii)Increase for certain distributions.
The amount of non-qualifying liabilities
shall be increased (but not in excess of
the U.S. transferor’s total liabilities) by an
amount equal to the sum of the U.S. trans-
feror distributions and any other distribu-
tions made by the U.S.transferor (or any
predecessor) with respect to its stock, in-
cluding distributions in redemption of its
stock, during the two-year period immedi-
ately preceding the reorganization.
(2)Ownership interest percentageis the
ratio of the value of the stock in the U.S.
transferor owned by a shareholder to the
value of all of the outstanding stock of the
U.S. transferor. Except as provided in this
paragraph, the ownership interest percent-
age of a shareholder is determined imme-
diately before the reorganization. For pur-
poses of determiningthe ownership inter-
est percentage with respect to each share-
holder, however, the numerator of the frac-
tion is first reduced (but not below zero)
by U.S. transferor distributions made to
such shareholder, and the denominator is
reduced by the total amount of U.S trans-
feror distributions.
(3)Propertyis defined in
§1.367(a)–1T(d)(4).Section 367(d) prop-
ertyis any property described in section
936(h)(3)(B).Section 367(a) propertyis
any property other than section 367(d)
property.
(4)Qualified stockmeans stock in the
transferee foreign corporation, including
stock received in the transferee foreign
corporation under section 354, 355, or 356
in exchange for, or with respect to, stock
oftheU.S.transferor.
(5)Qualified successormeans a share-
holder of the U.S. transferor that is a do-
mestic corporation, other than a regulated
investment company (as defined in section
851(a)), a real estate investment trust (as
defined in section 856(a)), or an S cor-
poration (as defined in section 1361(a)),
provided such shareholder receives quali-
fied stock in the reorganization or imme-
diately after the reorganization owns qual-
ified stock other than qualified stock re-
ceived in the reorganization. Anon-qual-
ified successormeans a shareholder of the
U.S. transferor other than a qualified suc-
cessor.
(6)Section 367(d) percentageis the ra-
tio of the aggregate value of the section
367(d) property transferred by the U.S.
transferor to the transferee foreign corpo-
ration in the section 361 exchange to the
aggregate value of all property (in other
words, all section 367(a) property and sec-
tion 367(d) property) transferred by the
U.S. transferor to the transferee foreign
corporation in the section 361 exchange.
(7)U.S. transferor distributionsare
any distributions by the U.S. transferor
of money or other property (within the
meaning of section 356) to shareholders
pursuant to the plan of reorganization, but
only to the extent such money or other
property is not provided by the transferee
foreign corporation in exchange for prop-
erty of the U.S. transferor acquired in the
section 361 exchange.
.06 Other Rules
Income taken into account under sec-
tion 4.02 or 4.03 of this notice is treated
as ordinary income and is treated, for pur-
poses of applying section 904(d), in the
same manner as if such amount were a roy-
alty.
For purposes of this notice, stock of the
U.S. transferor held by a partnership (do-
mestic or foreign) is treated as held pro-
portionately by its partners. Thus, for ex-
ample, if a partnership is a shareholder of
the U.S. transferor and receives qualified
stock in the reorganization, the partners
in the partnership are treated as receiving
the qualified stock for purposes of this no-
tice, including for purposes of identifying
a qualified successor.
.07 Example
The following example illustrates the
rules and guidance provided in this notice.
Example.(i)Facts. USP, a domestic corporation
(that is not a regulated investment company, a real
estate investment trust, or an S corporation), owns
100% of the outstanding stock of UST, a domestic
corporation, and 100% of the outstanding stock of
TFC, a foreign corporation. UST owns a patent with
a tax basis of $0x and a value of $60x. UST also
owns Asset A, which is section 367(a) property, with
a value of $40x. UST has no liabilities. In a reorgani-
zation described in section 368(a)(1)(D), UST trans-
fers the patent and Asset A to TFC in exchange for
$70x of TFC stock and $30x of cash. In connection
with the transfer, UST distributes the $70x of TFC
stock and $30x of cash to USP and liquidates. UST’s
transfer of the patent and Asset A to TFC qualifies as
a section 361 exchange. USP is treated as exchang-
ing its UST stock for $70x of TFC stock and $30x of
cash pursuant to section 356.
(ii)Analysis. UST’s transfer of the patent to TFC
in the section 361 exchange is an outbound section
367(d) transfer subject to section 367(d) and the
regulations thereunder, as modified by this notice.
Under section 4.02 of this notice, the income that
UST will take into account as a prepayment is $18x,
the product of the section 367(d) percentage (60%)
multiplied by the amount of cash ($30x) received
2012–31 I.R.B.97July 30, 2012

by USP, a qualified successor. UST must include
this amount in income regardless of whether income
is being generated by the patent at the time of the
outbound section 367(d) transfer. USP is a qualified
successor because USP (a domestic corporation) is
a shareholder of UST that receives qualified stock
(newly issued stock of TFC) under section 356 in
exchange for stock of UST. USP is also a qualified
successor because USP (a domestic corporation)
is a shareholder of UST that owns qualified stock
(existing stock in TFC) other than the qualified stock
received in the reorganization. Under section 4.05
of this notice, the section 367(d) percentage of 60%
is computed as the $60x aggregate value of the sec-
tion 367(d) property transferred in the section 361
exchange, divided by $100x aggregate value of all
property transferred in the section 361 exchange.
USP, as a qualified successor to UST, will take into
account the income attributable to the contingent
annual payments that UST would have received
under §1.367(d)–1T(c) over the remaining useful life
of the intangible property, determined as if UST had
remained in existence and not taken into account the
$18x of income. Under §1.367(d)–1T(c)(1), such
contingent annual payments must be determined
in accordance with section 482 and the regulations
thereunder, and therefore must be consistent with the
arm’s-length standard. The first $18x of contingent
annual payments (if otherwise taken into account
by USP under section 4.04 of this notice) are ex-
cluded from USP’s gross income under section 4.04
of this notice, and any additional contingent annual
payments are included in USP’s gross income. In
accordance with §1.367(d)–1T(g)(1), USP may es-
tablish an account receivable with respect to any
contingent annual payments included in gross in-
come by USP under this notice. For rules applicable
to the transfer of Asset A, see section 367(a) and any
regulations thereunder.
SECTION 5. EFFECTIVE DATE
The regulations described in this no-
tice will apply to outbound section 367(d)
transfers occurring on or after July 13,
2012. No inference is intended as to the
treatment of transactions described in this
notice under current law, and the IRS may
challenge such transactions under applica-
ble Code provisions or judicial doctrines.
SECTION 6. COMMENTS
The IRS and the Treasury Depart-
ment request comments on the regulations
to be issued under this notice. Specifi-
cally, comments are requested regarding
whether certain domestic corporations
that are related to the U.S. transferor but
not subject to section 4.04 of this notice
(relating to qualifying successors) should
nevertheless be subject to section 4.04.
For example, the IRS and the Treasury
Department are considering whether the
rules described in section 4.04 of this no-
tice should apply to transactions in which
a domestic corporation is not a qualified
successor because it indirectly owns the
U.S. transferor through a controlled for-
eign corporation. In addition, comments
are requested as to the proper recovery of
basis in the section 367(d) property trans-
ferred.
SECTION 7. DRAFTING
INFORMATION
The principal author of this no-
tice is Robert B. Williams, Jr. of the
Office of Associate Chief Counsel
(International). However, other personnel
from the IRS and the Treasury Department
participated in its development. For
further information regarding this notice,
contact Robert B. Williams, Jr. at (202)
622–3860 (not a toll-free call).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2012–47
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. These rates do
not reflect any changes implemented by
the Moving Ahead for Progress in the
21st Century Act (MAP–21). MAP–21
provides that for purposes of section
430(h)(2), the segment rates are limited
by the applicable maximum percentage or
the applicable minimum percentage based
on the average of segment rates over a 25
year period. Guidance related to the new
legislation will be issued in the future.
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
June 2012 is 4.27 percent. Pursuant to No-
tice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond in-
dices for that month.
The following corporate bond weighted
average interest rate was determined for
July 30, 2012982012–31 I.R.B.

plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
July2012
5.38
4.84
5.38
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
June 2012 data is in Table I at the end of
this notice. The spot first, second, and
third segment rates for the month of June
2012 are, respectively, 1.60, 3.97, and
4.93. The three 24-month average cor-
porate bond segment rates applicable for
July 2012 are as follows:
First
Segment
Second
Segment
Third
Segment
1.814.73
5.85
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 July 2012, the funding seg-
ment rates are the three 24-month average
corporate bond segment rates applicable
for July 2012, listed above without blend-
ing for any transitional period.
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-
bleinterestrateforamonthistheannual
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 Trea-
sury securities for June 2012 is 2.70 per-
cent. The Service has determined this rate
as the average of the daily determinations
of yield on the 30-year Treasury bond ma-
turing in May 2042.
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 Years
Beginning inPermissible Range
MonthYear
30-Year
Treasury
Weighted
Average90%to105%
July20123.833.444.02
2012–31 I.R.B.99July 30, 2012

MINIMUM PRESENT VALUE
SEGMENT RATES
Generally for plan years beginning af-
ter December 31, 2007, the applicable in-
terest rates under § 417(e)(3)(D) are seg-
ment rates computed without regard to a
24-month average. For plan years begin-
ning in 2008 through 2011, the applica-
ble interest rates are the monthly spot seg-
ment rates blended with the applicable rate
under § 417(e)(3)(A)(ii)(II) as in effect
for plan years beginning in 2007. Notice
2007–81 provides guidelines for determin-
ing the minimum present value segment
rates. Pursuant to that notice, the min-
imum present value transitional segment
rates determined for June 2012, taking into
account the June 2012 30-year Treasury
rate of 2.70 stated above, are as follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20111.823.724.48
20121.603.974.93
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities
Division. Mr. Montanaro may be e-mailed
atRetirementPlanQuestions@irs.gov.
July 30, 20121002012–31 I.R.B.

Table I
Monthly Yield Curve for June 2012
Derived from June 2012 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.50.5320.5
4.68
40.5
4.96
60.55.0680.55.11
1.00.8721.0
4.69
41.0
4.96
61.0
5.06
81.0
5.11
1.51.1721.54.7141.5
4.97
61.55.0781.55.11
2.01.4322.04.7242.04.9762.0
5.07
82.0
5.12
2.5
1.63
22.5
4.73
42.5
4.97
62.55.0782.55.12
3.0
1.79
23.04.7443.0
4.98
63.0
5.07
83.0
5.12
3.5
1.93
23.54.7543.5
4.98
63.55.0783.55.12
4.02.0724.04.7644.0
4.98
64.0
5.07
84.0
5.12
4.52.2124.54.7744.5
4.99
64.55.0784.55.12
5.02.3525.0
4.78
45.0
4.99
65.05.0885.05.12
5.5
2.49
25.5
4.78
45.5
4.99
65.55.0885.55.12
6.02.6426.0
4.79
46.0
5.00
66.0
5.08
86.0
5.12
6.5
2.80
26.5
4.80
46.55.0066.55.0886.55.12
7.02.9527.04.8147.0
5.00
67.0
5.08
87.0
5.12
7.53.1027.54.8247.55.0167.55.0887.55.13
8.03.2428.04.8248.0
5.01
68.0
5.08
88.0
5.13
8.5
3.38
28.5
4.83
48.55.0168.5
5.09
88.55.13
9.0
3.51
29.0
4.84
49.0
5.01
69.0
5.09
89.0
5.13
9.53.6329.5
4.85
49.5
5.02
69.55.0989.5
5.13
10.03.7430.0
4.8550.05.02
70.05.09
90.0
5.13
10.53.8530.54.8650.55.0270.55.0990.55.13
11.03.9431.04.87
51.05.02
71.05.0991.0
5.13
11.5
4.03
31.5
4.87
51.55.0371.5
5.0991.5
5.13
12.04.1132.04.88
52.05.03
72.05.09
92.0
5.13
12.5
4.18
32.5
4.89
52.55.0372.55.10
92.5
5.13
13.0
4.25
33.0
4.89
53.05.03
73.0
5.10
93.0
5.13
13.54.3033.5
4.90
53.55.0473.55.1093.55.13
14.0
4.35
34.04.90
54.05.04
74.0
5.10
94.0
5.14
14.5
4.40
34.5
4.91
54.55.0474.55.10
94.5
5.14
15.0
4.44
35.0
4.91
55.05.0475.05.10
95.0
5.14
15.5
4.48
35.5
4.92
55.55.0475.55.10
95.5
5.14
16.0
4.51
36.0
4.92
56.05.05
76.0
5.10
96.0
5.14
16.54.5436.5
4.93
56.55.0576.55.1096.55.14
17.0
4.56
37.04.93
57.05.05
77.0
5.11
97.0
5.14
17.54.5837.5
4.94
57.55.0577.55.11
97.5
5.14
18.04.6038.0
4.94
58.05.05
78.0
5.11
98.0
5.14
18.5
4.62
38.5
4.94
58.55.0578.55.11
98.5
5.14
19.0
4.64
39.0
4.9559.0
5.06
79.0
5.11
99.0
5.14
19.54.6539.54.9559.55.0679.55.1199.55.14
20.04.6740.04.9660.0
5.06
80.0
5.11
100.0
5.14
2012–31 I.R.B.101July 30, 2012

Tribal Economic Development
Bonds
Notice 2012–48
SECTION 1. PURPOSE
This notice solicits applications for
allocations of the available amount of na-
tional bond volume limitation authority
(volume cap) for tribal economic devel-
opment bonds (Tribal Economic Devel-
opment Bonds). The available amount
includes amounts that were previously
allocated and subsequently forfeited un-
der Notice 2009–51, 2009–28 I.R.B. 128
(July 13, 2009), Announcement 2010–88,
2010–47 I.R.B. 753 (November 22, 2010),
and Announcement 2011–71, 2011–46
I.R.B. 770 (November 14, 2011). This
notice also provides related guidance on
the following: (1) application require-
ments and forms for requests for volume
cap allocations; and (2) the method that
the Department of theTreasury (Treasury)
and the Internal Revenue Service (IRS)
will use to allocate the volume cap.
SECTION 2. BACKGROUND
Section 1402 of Title I of Division B
of the American Recovery and Reinvest-
ment Act of 2009, Pub. L. No. 111–5, 123
Stat. 115 (2009), added § 7871(f) to the
Internal Revenue Code (Code). In general,
the purpose of § 7871(f) is to give Indian
tribal governments greater flexibility than
is allowable under the existing standard of
§ 7871(c) through the issuance of Tribal
Economic Development Bonds to finance
economic development projects. Section
7871(f)(1) provides that the Secretary shall
allocate the $2 billion volume cap among
the Indian tribal governments in such man-
ner as the Secretary,in consultation with
the Secretary of the Interior, determines
appropriate.
In Notice 2009–51, the Treasury and
the IRS solicited applications for alloca-
tions of volume cap and addressed admin-
istrative proceduresfor the initial alloca-
tions of the $2 billion volume cap. On
September 15, 2009, the IRS announced
allocations in an aggregate amount of ap-
proximately $1 billion of volume cap for
the first allocation (2009 First Allocation)
of authority to issue Tribal Economic De-
velopment Bonds. On February 9, 2010,
the IRS announced allocations in an ag-
gregate amount of approximately $1 bil-
lion of volume cap in the second alloca-
tion (2010 Second Allocation) of author-
ity to issue Tribal Economic Development
Bonds.
Section 7.f. of Notice 2009–51 pro-
vides that if bonds were not issued by De-
cember 31, 2010, for any or all of the al-
location received by an Indian tribal gov-
ernment from the 2009 First Allocation, or
by December 31, 2011, for any or all of
the allocation received by an Indian tribal
government from the 2010 Second Alloca-
tion, then any or all of such allocation not
used to issue bonds would be treated as for-
feited.
In Announcement 2010–88, the IRS
announced an automatic six-month exten-
sion of the administrative deadline to issue
bonds under bonding authority from the
2009 First Allocation from December 31,
2010, to June 30, 2011, and a process by
which Indian tribal governments could
receive an additionalsix-month extension
of the administrative deadline to issue
bonds under bonding authority from the
2009 First Allocation from June 30, 2011,
to December 31, 2011. Section 3 of
Announcement 2010–88 provides that
an allocation received pursuant to the
2009 First Allocation shall be treated as
forfeited if bonds are not issued by the
applicable deadline.
In Announcement 2011–71, the IRS
notified eligible Indian tribal governments
that they could request a three-month
extension from December 31, 2011,
to March 31, 2012, to issue Tribal
Economic Development Bonds. Indian
tribal governments eligible for such
extension were (1) those that had received
an allocation of volume cap from the
2009 First Allocation if an extension
of the deadline to issue bonds from
June 30, 2011, to December 31, 2011
had been granted pursuant to the process
described in Announcement 2010–88,
or (2) Indian tribal governments that
had received an allocation from the
2010 Second Allocation. Section 4 of
Announcement 2011–71 also provides
that an allocation with respect to which
the Indian tribal government received
an extension pursuant to the process
described in Announcement 2011–71 is
treated as forfeited if bonds were not
issued by March 31, 2012.
Notice 2009–51, Announcement
2010–88, and Announcement 2011–71
provide that any allocation amounts
treated as forfeited may be available for
allocation by the IRS. Indian tribal gov-
ernments have reported to the IRS the
issuance of Tribal Economic Development
Bonds in the amount of $197,153,357.
Based on these reports and the passage of
the deadlines described above for issuing
Tribal Economic Development Bonds, the
IRS has identified $1,802,846,643 of vol-
ume cap that is available for reallocation.
In Announcement 2011–71, and pur-
suant to Executive Order 13175 on tribal
consultation, the IRS announced that it was
seeking public comment from Indian tribal
governments and other interested mem-
bers of the public on the reallocation of
available volume cap in order to facilitate
issuance of Tribal Economic Development
Bonds by Indian tribal governments. Pur-
suant to the Announcement and the Execu-
tive Order, consultation sessions were held
in person and by telephone with tribal or-
ganizations.
SECTION 3. GENERAL
APPLICATION REQUIREMENTS
Each application for an allocation of
volume cap under § 7871(f)(1) submitted
pursuant to this notice (Application) must
be prepared and submitted in accordance
with this section. By submitting an Ap-
plication, the applicant agrees to comply
with the requirements of this notice. For
an Application to comply with this section,
among other things, the Application must
be prepared in substantially the same for-
mat as the form attached to this notice as
Appendix A. This notice, including Ap-
pendix A, may be found electronically un-
der the link “TEB Published Guidance” on
the IRS web site athttp://www.irs.gov/tax-
exemptbond/index.html.
a.Qualified issuer. The Applica-
tion must be submitted by an Indian
tribal government (Applicant).See
§ 7701(a)(40)(A) of the Code and Revenue
Procedure 2008–55, 2008–39 I.R.B. 768.
The Application must identify the Appli-
cant, including the Applicant’s Federal
tax identification number, and either: (1)
state that the entity is included on the most
recent list published by the Department of
the Interior in the Federal Register pur-
suant to the Federally Recognized Indian
July 30, 20121022012–31 I.R.B.

Tribe List Act of 1994, Pub. L. 103–454,
108 Stat. 4791, or (2) provide a letter
from the Department of the Interior stating
that the Indian tribal government has been
acknowledged as a Federally recognized
Indian tribe. See section 4.e. of this notice
for pool bond issuers and issuers of Tribal
Economic Development Bonds other than
the Indian tribal government that receives
an allocation.
b.Signatures. The Application must
be signed and dated by an authorized of-
ficial of the Applicant. For purposes of
the Application, the term “authorized of-
ficial of the Applicant” means an officer,
board member, employee, or other offi-
cial of the Applicant who is duly autho-
rized to execute legal documents on be-
half of the Applicant in connection with
incurring debt of the Applicant (for exam-
ple, a tribal chairperson, chief executive
officer, or chief financial officer), similar
to the kind of duly authorized official of
an Indian tribal government who would be
authorized to execute documents in con-
nection with an Indian tribal government’s
declaration of officialintenttoreimburse
expenditures from the proceeds of a bor-
rowing under § 1.150–2(e) of the Income
Tax Regulations.
c.Contact person. The Application
must designate one or more persons with
knowledge of the project that the Appli-
cant duly authorizes to discuss with the
IRS any information relating to the Appli-
cation. The designation must include the
designee’s name, title, telephone number,
fax number, and mailing address. If a de-
signee is not an official or officer of the is-
suer, the Application must include an ex-
ecuted Form 8821 (Taxpayer Information
Authorization) or Form 2848 (Power of At-
torney and Declaration of Representative)
authorizing the disclosure of taxpayer in-
formation specifically relating to the Ap-
plication.
d.Addresses. The Application must be
submitted by hard copy accompanied by a
copy of the Application in PDF format on
a CD and sent by mail to the Internal Rev-
enue Service (IRS), SE:T:GE:TEB:CPM,
Attention: Mark Helfer, 1122 Town &
Country Commons, St. Louis, MO 63017.
e.Submission date. Applications will
be accepted by the IRS on an ongoing ba-
sis. See section 4 of this notice for fur-
ther discussion of the general allocation
process.
f.Project description. The Application
must contain the information required by
this subsection f.
(i)Qualified project. The Application
must describe in reasonable detail the
project or projects (project) reasonably ex-
pected to be financed with the proceeds of
the Tribal Economic Development Bonds
(proposed bonds), including information
regarding the type and use of the project
and a certification that the project will
qualify for Tribal Economic Development
Bond financing under § 7871(f). Ap-
plicants receiving anallocation may use
proceeds of the proposed bonds only to
finance the project or permitted deviations
asfurtherprovidedinsection6ofthis
notice.
(ii)Project cost. The Application must
describe the reasonably expected cost of
the project, including the portion to be fi-
nanced by the proposed bonds and any por-
tion to be financed by other sources, if any.
(iii)Location of project. The Applica-
tion must include a certification that the
project’s location is entirely within the Ap-
plicant’s reservation. In the case of a joint
project described in section 3.m. of this
notice, the Application must include a cer-
tification that the joint project will be lo-
cated entirely within one or more of the
reservations of the Indian tribal govern-
ments receiving an allocation of volume
cap for the joint project.
(iv)Project not used for gaming pur-
poses. The Application must include a
certification that no portion of the pro-
ceeds of the proposed bonds will be used
to finance any portion of a building in
which class II or class III gaming, as
definedinsection4oftheIndianGam-
ing Regulatory Act, Pub. L. 100–497,
102 Stat. 2475, codified at 25 U.S.C.
§ 2701–2721 (1988), is conducted or
housed, or any other property actually
used in the conduct of such gaming. For
purposes of compliance with the limitation
in § 7871(f)(3)(B) onthe use of proceeds
of Tribal Economic Development Bonds
for these purposes, the safe harbor
regarding certain determinations with
respect to separate buildings under § 10(b)
of Notice 2009–51 applies.
(v)Approvals. The Application must
state that all required Federal, State, lo-
cal, and tribal approvals (regulatory and
otherwise) for the project, the proposed
bonds, and any other required financing
for the project have been obtained or, if
any approvals have not yet been obtained,
the Application must include a certifica-
tion that the Applicant reasonably expects
to receive all required approvals in a timely
manner sufficient to permit issuance of the
proposed bonds within the 180-day period
prior to the expiration of the volume cap
allocation (see section 4.g. of this no-
tice). The Application must identify any
required approvals that have not been ob-
tained and must describe the Applicant’s
plan and expected time frame for obtain-
ingsuchapprovals.
g.Plan of financing. The Applica-
tion must contain a reasonably detailed de-
scription of the plan of financing for the
project including (1) the amount of Tribal
Economic Development Bonds expected
to be issued and the amount of proceeds of
such bonds to be allocated to the project,
(2) any reasonably expected other sources
of financing for the project together with a
description of how such financing will be
allocated to the project, and (3) documen-
tation from an independent third party who
is knowledgeable aboutthe marketability
of tax-exempt bonds evidencing that the
proposed bonds are reasonably expected
to be marketable prior to expiration of the
volume cap allocation set forth in section
4.g. of this notice. Documentation that
may be used to meet this requirement in-
cludes, among other things, the following:
a bond purchase commitment letter from
an investor; a credit quality assessment ev-
idencing the investment grade credit qual-
ity of the proposed bonds from an indepen-
dent organization that is in the business of
assessing credit quality; a credit enhance-
ment commitment letter from a financial
institution that will enable the proposed
bonds to be investment grade quality; a let-
ter from an underwriter or financial advi-
sor to the effect that the sale of the pro-
posed bonds is likely to be successful in a
timely manner before expiration of the vol-
ume cap allocation for the bonds described
in section 4.g. of this notice; or similar
documentation or a combination thereof.
h.Compliance with Federal tax laws.
The Application must include a certifica-
tion that the Applicant reasonably expects
that the proposed bonds will meet the ap-
plicable requirements of § 7871(f) and that
the Applicant has engaged bond counsel to
render an opinion to the effect that the pro-
posed bonds will meet those requirements.
2012–31 I.R.B.103July 30, 2012

i.Dollar amount of allocation re-
quested. The Application must specify
the dollar amount of the volume cap re-
quested, not to exceed the amount of the
proposed bonds.
j.Demonstration of readiness to issue.
The Application must include a certifica-
tion that the Applicant reasonably expects
to use the volume cap allocation by issuing
the proposed bonds prior to expiration of
the volume cap allocation described in sec-
tion 4.g. of this notice. Based on its over-
all assessment of an Applicant’s readiness
to issue the proposed bonds, the IRS may
require the Applicant to provide additional
information or supporting documentation
to demonstrate the Applicant’s readiness to
issue such bonds, and the Application will
be treated as incomplete until the IRS re-
ceives the additional information or docu-
mentation.
k.Certain forfeitures. In determining
an Applicant’s readiness to issue the pro-
posed bonds under section 3.j. of this no-
tice, the IRS will not take into account or
otherwise consider any prior forfeitures or
expirations of volume cap that occurred
with respect to the original allocations of
volume cap received for Tribal Economic
Development Bonds under the 2009 First
Allocation or the 2010 Second Allocation.
Indeterminingsuchreadinesstoissuethe
proposed bonds, however, the IRS may
consider any forfeitures or expirations of
volume cap previously received under this
notice. The Application must identify any
allocation of volume cap (not including
any allocations received in the 2009 First
Allocation or the 2010 Second Allocation)
previously received by the Applicant un-
der this notice that was forfeited or expired
and provide an explanation of the reasons
for such forfeiture.
l.Multiple projects. Subject to other
limitations and requirements described
herein, an Applicant may submit a single
Application for volume cap that covers
multiple projects, provided that such Ap-
plication includes sufficient information to
satisfy the requirements of this notice for
each project independently of any other
project covered by the Application (for
example, for each project covered by the
Application, the Application must include
a plan of financing, a description of the
project including costs and location, and a
description of the status of approvals for
that project). Alternatively, an Applicant
may submit separate Applications for sep-
arate projects.
m.Joint projects. An Applicant may
submit an Application for an allocation of
volume cap to finance its share of a joint
project all of which will be owned by In-
dian tribal governments or which will, in
part, be owned by an entity that is not an
Indian tribal government, provided that the
joint project will be located entirely on one
or more of the reservations of any of the
Indian tribal governments receiving an al-
location with respectto such project. For
this purpose, the type of joint ownership of
facilities to be financed with Tribal Eco-
nomic Development Bonds include only
those recognized under the private activ-
ity bond restrictions on tax-exempt bonds
under § 141.
n.Perjury statement. The Applica-
tion must include the following declara-
tion signed and dated by an authorized of-
ficial of the Applicant: “I hereby certify
that I am an authorized officer or official
of the Applicant, that I am duly autho-
rized to execute legal documents on behalf
of the Applicant in connection with incur-
ring debt, and that I am duly authorized
to execute legal documents on behalf of
the Applicant in making this Application.
Under penalties of perjury, I declare that
(i) I have knowledge of the relevant facts
and circumstances relating to this Applica-
tion and the project(s), (ii) I have examined
this Application and the supporting docu-
ments, and (iii) to the best of my knowl-
edge and belief, all of the facts contained
in this Application and the supporting doc-
uments are true, correct and complete.”
If the Applicant subsequently submits any
additional information or supporting docu-
ments with respect to the Application, such
additional information or supporting docu-
ments must be accompanied by a declara-
tion, signed and dated by an authorized of-
ficial of the Applicant, in a form substan-
tially identical to the declaration submitted
with the Application pursuant to the pre-
ceding sentence.
SECTION 4. GENERAL
ALLOCATION PROCESS
a.Priority of Allocations. Except as
otherwise provided in this section 4, for
Applications filed with the IRS that meet
the requirements in this notice, the IRS
will allocate an amount of available vol-
ume cap equal to the amount requested
in the Application on a first-come, first-
served basis by order of submission date
(as defined in section 4.b. of this notice).
b.Submission date and incomplete
Applications. Each Application will be
treated as submitted on the day (sub-
mission date) the Application, and any
additional information and supporting
documents requested by the IRS, are re-
ceived by the IRS and such Application,
additional information, and supporting
documents satisfy all of the applicable re-
quirements of this notice, including being
submitted as described in section 3 of this
notice. The IRS may request additional
information to support any of the require-
ments of this notice, including additional
information and certifications to demon-
strate that the proposed project will qualify
for Tribal Economic Development Bond
financing under § 7871(f) and to demon-
strate the Applicant’s readiness to issue
the proposed bonds. The Application will
not satisfy the requirements of this notice
until the IRS receives such information.
c. Limit on allocation to any one In-
dian tribal government. No Indian tribal
government will receive an allocation of
volume cap that would cause the aggre-
gate amount of volume cap allocated to
that Indian tribal government pursuant to
this notice (not including any allocations
received in the 2009 First Allocation or the
2010 Second Allocation or amounts for-
feited under section 4.g. or 4.i. of this no-
tice) to exceed the Published Volume Cap
Limit (as defined in the next sentence) in
effect for the period that includes the sub-
mission date. The Published Volume Cap
Limit for any period is the greater of: (1)
20% of the amount of available volume
cap as of the first day of such period (deter-
mined by the IRS based on available infor-
mation, including allocation data and re-
ports of bonds issued); or (2) $100 mil-
lion. The Published Volume Cap Limit
for the initial period beginning on the date
of this notice is $360,569,329 (20% of
$1,802,846,643). The IRS plans to publish
updated Published Volume Cap Limits on
the IRS website athttp://www.irs.gov/tax-
exemptbond/index.htmlor at such other lo-
cation as the IRS may provide future pub-
lic notice. Beginning no later than Octo-
ber 1, 2012, the IRS will publish these up-
dates for successive two-month periods on
or about the first business day of each pe-
July 30, 20121042012–31 I.R.B.

riod. For purposes of this limitation, an In-
dian tribal government includes the Indian
tribal government, together with any polit-
ical subdivisions of the Indian tribal gov-
ernment, and any entities controlled by the
Indian tribal government. An Application
that requests an allocation of volume cap in
an amount that would cause the Published
Volume Cap Limit in effect on the date of
submission to be exceeded will be treated
as incomplete until the day the Applicant
supplements the Application in a manner
that complies with the requirements of the
notice and does not cause such limit to be
exceeded.
d.Available volume cap limitation.The
IRS will not make an allocation that would
cause the total amount of volume cap allo-
cated (not including forfeited allocations)
to exceed the $2 billion statutory limit for
Tribal Economic Development Bonds. In
general, if the total amount of volume cap
requested in an Application meeting the
requirements of this notice exceeds the
amount of available volume cap on the
submission date (determined by the IRS
based on available information, including
allocation data and reports of bonds is-
sued), then the Applicant will have the op-
portunity to receive a portion of the avail-
able volume cap. Further, if two or more
Applications meeting the requirements of
this notice are filed on the same submis-
sion date and the amount of available vol-
ume cap on that date is less than the to-
tal amount of requested volume cap un-
der those Applications, then each Appli-
cant will be given the opportunity to re-
ceive a portion of the available volume cap
in proportion to their requested amount of
volume cap. In any circumstance in which
available volume cap is in an amount less
than the amount requested, the IRS will no-
tify the Applicant and the Applicant will
be provided 30 days to notify the IRS (at
the address specified in section 3.d. of this
notice) of its decision to accept the allo-
cation in the lesser amount or to delay the
allocation for up to 180 days from the sub-
mission date to determine if future forfei-
tures of volume cap may allow the Appli-
cant to receive the full amount requested.
If the Applicant decides to delay receiving
its allocation, it will also notify the IRS
of whether it will accept a lesser alloca-
tion if forfeitures of volume cap during the
delay period are insufficient to allow the
Applicant to receive the full amount re-
quested. If the Applicant does not notify
the IRS of its decision within 30 days of
such IRS’ notice to the Applicant, the Ap-
plication will be treated as withdrawn. In
any circumstance in which an allocation of
volume cap may be in an amount less than
the amount requested, the IRS may require
the Applicant to supplement the Applica-
tion to demonstrate that the requirements
of this notice are satisfied if based on an
Application for the reduced allocation.
e.Section 17 corporations, subdivi-
sions of Indian tribal governments, and
pool bond issuers.
(1) For purposes of issuing proposed
Tribal Economic Development Bonds, an
Applicant that receives an allocation may
assign the allocation to an Indian tribal
corporation organized under section 17 of
the Indian Reorganization Act of 1934,
25 U.S.C. section 477 (2012) (a Section
17 Corporation),
1
or to a subdivision of the
Indian tribal government that satisfies the
requirements of § 7871(d) to be treated as
a political subdivision of a State, provided
the assignment and use of the allocation
conforms in all respects (other than with
respect to the issuer of the bonds) to the
Application of the assigning Applicant.
(2) An Applicant that receives an allo-
cation may assign the allocation to a pool
bond issuer to issue the proposed bonds
provided that the proceeds of the proposed
bonds are then loanedto the Applicant and
provided that the pool bond issuer is it-
self an Indian tribal government, a subdi-
vision of an Indian tribal government that
satisfies the requirements of § 7871(d) for
treatment as a political subdivision of a
State, or a Section 17 Corporation. Pooled
Tribal Economic Development Bonds will
be subject to the provisions of § 149(f).
(3) Any bonds issued by a subdivision
of an Indian tribal government, a Section
17 Corporation, or a pool bond issuer will
be treated for purposes of a volume cap
allocation as if they were bonds issued by
Applicant. Allocations will not be made to
a pool bond issuer.
(4) The allocation limit of section 4.c.
of this notice for any one Indian tribal gov-
ernment applies to the Applicant without
regard to how the proposed bonds are is-
sued (i.e.,whether the issuer is a subdivi-
sion of an Indian tribal government, a Sec-
tion 17 Corporation, or a pool bond issuer).
f.Confirmation of allocation.TheIRS
will send the Applicant that receives a vol-
ume cap allocation a letter confirming the
allocation (allocation letter).
g.Expiration of allocation. Applicants
have 180 days from the date of the alloca-
tion letter to issue the proposed bonds. To
the extent that the proposed bonds are not
issued within 180 days of the date of the
allocation letter, the portion of such allo-
cation for which bonds have not been is-
sued will be treated as forfeited and will
be available for reallocation.
h.Extensions and new Applications.
The IRS does not expect to grant exten-
sions to the expiration date of the volume
cap allocation as set forth in section 4.g.
of this notice. An Indian tribal govern-
ment that is unable to issue the proposed
bonds within the 180-day period from the
date of the allocation letter may reapply for
an allocation. The new Application must
comply with this notice, including by pro-
viding the information described in section
3.k. of this notice, and will be subject to
the submission provisions of section 4.b.
and the applicable limits set forth in sec-
tion 4 of this notice.
i.Voluntary forfeiture. If an Applicant
determines that it does not intend to use
an allocation of volume cap to issue the
proposed bonds (including circumstances
in which the Applicant determines to fi-
nance the project with financing other than
the proposed bonds), the Applicant should
notify the IRS in writing at the address set
forth in section 3.d. of this notice of its in-
tention to forfeit the allocation. The notice
will permit the IRS to treat the allocation
as forfeited as of the date the IRS receives
the notification, and the forfeited amount
will be available to reallocate.
1
Federally-chartered corporations organized and controlled by Indian tribal governments under section 17 of the Indian Reorganization Act of 1934 are eligible Indian tribal governmental
issuers of tax-exempt bonds under § 7871 and eligible governmental users ofproceeds of tax-exempt bonds for purposes of the private business restrictions on governmental bonds under
§ 141. See Treas. Reg. § 1.301.7701–1(a)(3) (Section 17 Corporations are integral parts of Indian tribal governments and are not recognized as separate entities apart from the Indian tribal
governments for Federal tax purposes); Rev. Rul. 94–16, 1994–1 C.B. 19 (Section 17 Corporations are not separate taxable entities apart from the controlling Indian tribes and are not subject
to Federal income taxation).
2012–31 I.R.B.105July 30, 2012

SECTION 5. CONSENT TO
DISCLOSURE OF ALLOCATION
To provide the public with information
on how the volume cap has been allo-
cated and to facilitate oversight of the
Tribal Economic Development Bond pro-
gram, the IRS intends to publish certain
data regarding the results of the allo-
cation process. The data will be most
useful to the public if it identifies the
specific allocations awarded. Pursuant to
§ 6103, consent is required for the IRS to
disclose identifying information with re-
spect to Applicants awarded an allocation.
Therefore, the IRS seeks the consent of
Applicants to the disclosure by the IRS of
the name of the issuer, the type of project
to be financed by the Tribal Economic
Development Bonds, the reservation on
which the project is to be located, the
reasonably expected cost of the project,
and the amount of volume cap allocation
awarded to that Applicant. To provide
valid consent, the consent must be in the
form set forth in Appendix B. This consent
to disclosure of certain information about
allocations, however, is optional for Ap-
plicants. An Applicant is not required to
consent to disclosure to receive an alloca-
tion. The IRS will not publish identifying
information on Applications that are not
awarded an allocation of volume cap or
pending Applications but may publish an
aggregate amount of allocations for which
no consent was received.
SECTION 6. INSUBSTANTIAL
DEVIATIONS FROM
INFORMATIONINAPPLICATION;
EFFECTS OF OTHER CHANGES
a.Insubstantial deviations.Ingen-
eral, an allocation of volume cap is valid
for purposes of § 7871(f)(1) if the pro-
posed bonds are issued, and the proceeds
of such bonds are allocated to expendi-
tures, in a manner that does not substan-
tially deviate from the information sub-
mitted in the Application. For this pur-
pose, whether a deviation from the infor-
mation submitted in the Application con-
stitutes an insubstantial deviation is deter-
mined based on all the facts and circum-
stances using criteria similar to those used
under § 5f.103–2(f)(2), as amended or sup-
plemented from time to time, regarding in-
substantial deviations in the information
required for public approval of tax-exempt
private activity bonds under § 147(f) of the
Code. No further approval is necessary
from, and requests for approvals should
not be submitted to, the IRS with respect
to such insubstantial deviations. Never-
theless, the Applicant must give the IRS
notice of the deviation. If the insubstan-
tial deviation occurs before the submission
of the Notice of Issuance described in sec-
tion 7.a. of this notice, the Notice of Is-
suance must include a description of the
insubstantial deviation. If the insubstan-
tial deviation occurs after the submission
of the Notice of Issuance, the Applicant
must submit a supplement to the Notice of
Issuance which describes the insubstantial
deviation. The supplement should contain
a copy of the notice of Issuance as well as
the details of the deviation and should be
sent to the same address as the Notice of
Issuance.
b.Substantial deviations—In general.
(1) Other than as described in section
6.b.(2) below, an allocation of volume
cap under an Application is invalid for
purposes of § 7871(f) if there is a change
relating to the issuance of the proposed
bonds or the allocation of the proceeds
of such bonds to expenditures that sub-
stantially deviates from the information
submitted in the Application. In the event
of such a change prior to the issuance of
its proposed bonds, the Applicant may
notify the IRS that it does not intend to use
the original allocation of bond volume cap
as described in section 4.i. of this notice
and submit a new Application reflecting
the modified information. The new Ap-
plication must comply with this notice,
including by providing the information
described in section 3.k. of this notice,
and will be subject to the submission pro-
visions of section 4.b. and the applicable
allocation limits in section 4 of this notice.
(2)Certain post-issuance deviations.A
substantial deviation that occurs after the
proposed bonds are issued and prior to the
allocation of gross proceeds of such bonds
to expenditures under the general rule set
forth in § 1.148–6(d)(1)(iii) will not invali-
date the allocation of volume cap under the
Application if the Applicant submits a sup-
plement to the Notice of Issuance (as de-
fined in section 7.a. of this notice) to the
IRS. The supplement must (1) be sent to
the address set forth in section 7.a. of this
notice, (2) describe the substantial devia-
tion between the information submitted in
the Application and the actual information
subsequent to the bond issuance, and (3)
include a certification that the Applicant
has received an opinion from bond counsel
to the effect that the change will not cause
the bonds to fail to meet all applicable re-
quirements of § 7871(f) and the applica-
ble requirements of §§ 103 and 141 and the
regulations under such sections.
SECTION 7. INFORMATION
REPORTING
a.Notice of issuance. Not later than 15
days after issuance of the proposed bonds,
the Applicant shall send to the IRS a notice
of issuance (Notice of Issuance) of such
bonds, which shall include the following
information: (1) the Applicant’s name and
taxpayer identification number; (2) the is-
sue price of the bonds issued; (3) the issue
date of the bonds; and (4) a description of
the project financed with the bonds. If the
Applicant fails to respond within 15 days
to an IRS request for confirmation that
either the Notice of Issuance has been sub-
mitted or that the Applicant has voluntarily
forfeited the allocation, the IRS, in its dis-
cretion, may treat allocations as forfeited
and available for reallocation. The Appli-
cant shall send the Notice of Issuance to
the IRS at the following address: Internal
Revenue Service, SE:T:GE:TEB:CPM,
Attention: Mark Helfer, 1122 Town &
Country Commons, St. Louis, MO 63017.
Further, in the case of the issuance of
any Tribal Economic Development Bonds
that involves an insubstantial deviation
under section 6.a. of this notice that
occurs before submission of the Notice
of Issuance, the Notice of Issuance shall
include a description of the insubstantial
deviation. For insubstantial deviations
that occur after submission of the Notice
of Issuance, see section 6.a. of this notice.
b.Regular information reporting.
Subject to updated IRS information re-
porting forms or procedures, an issuer
of Tribal Economic Development Bonds
should complete Part II of Form 8038–G
by checking the box on Line 18 (Other),
writing“Tribal Economic Development
Bonds”in the space provided for the bond
description, and entering the issue price of
the Tribal Economic Development Bonds
in the Issue Price column. For purposes of
this notice, the term “issue” has the mean-
July 30, 20121062012–31 I.R.B.

ing used for tax-exempt bond purposes in
§ 1.150–1(c).
SECTION 8. PAPERWORK
REDUCTION ACT
The information collection contained in
this notice has been approved by the Of-
fice of Management and Budget (OMB) in
accordance with the Paperwork Reduction
Act (44 U.S.C. chapter 35) under control
number 1545–2233. Under the Paperwork
Reduction Act, an agency may not conduct
or sponsor and a person is not required to
respondtoacollectionofinformationun-
less it displays a valid OMB control num-
ber.
Sections 3 and 7 of this notice contain
the collections of information. That infor-
mation is required in order to inform the
IRS of an Applicant’s desire to receive an
allocation of volume cap for Tribal Eco-
nomic Development Bonds and to deter-
mine the amount of volume cap that may
be allocated to each Applicant. The collec-
tions of information are mandatory for any
Applicant that wishes to receive an allo-
cation of volume cap for Tribal Economic
Development Bonds. The likely respon-
dents will be eligible issuers of Tribal Eco-
nomic Development Bonds.
We estimate the total number of respon-
dents to be 143 and the total annual re-
sponses to be 143. We estimate it will take
7 hours to comply. Estimates of the annu-
alized cost to respondents for the hour bur-
dens shown are not available at this time.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally, tax returns and return in-
formation are confidential, as required by
§ 6103.
SECTION 9. DRAFTING
INFORMATION
The principal authors of this notice are
Debbie Cho of the IRS Office of Tax Ex-
empt Bonds and Timothy L. Jones of the
Office of Chief Counsel. However, other
personnel from the Treasury and the IRS
participated in its development. For fur-
ther information regarding this notice, con-
tact Timothy L. Jones at (202) 622–3701
(not a toll-free call). For further infor-
mation about submitted applications, con-
tact Mark Helfer at (636) 255–1201 (not a
toll-free call).
2012–31 I.R.B.107July 30, 2012

APPENDIX A
APPLICATION FOR ALLOCATION OF
TRIBAL ECONOMIC DEVELOPMENT BOND VOLUME CAP
Internal Revenue Service
SE:T:GE:TEB:CPM
Attention: Mark Helfer
1122 Town & Country Commons
St. Louis, MO 63017
Dear Sir or Madam:
The following constitutes the application (Application) of (Name) (Applicant) for allocation of tribal economic development
bond (Tribal Economic Development Bond) volume cap under § 7871(f) of the Internal Revenue Code (Code) (unless otherwise
noted, section references herein are to the Code).
1.
Name of Applicant/issuer.
Street Address
CityStateZip
Telephone NumberFax Number
EIN
2.
Status of issuer.(Select as appropriate)
The Applicant/issuer is a “qualifiedissuer” under § 7871(f) because it is —
(i) an Indian tribal entity that appears on the most recent list published by the Department of the Interior in the Federal
Register pursuant to the Federally Recognized Indian Tribe List Act of 1994, Pub. L. 103–454, 108 Stat. 4791 (List), as
demonstrated by the attached documents included as Exhibit A.
(ii) an Indian tribal government that is acknowledged as a Federally recognized Indian tribe,as stated in a letter from the
Department of the Interior, as demonstrated by the attached documents included as Exhibit A.
3.
Description of the project.A description of the project to be financed (Project), including information regarding the type
and use of the Project and a certification that the Project will qualify for Tribal Economic Development Bond financing
under § 7871(f), is set forth below or in attached Exhibit B.
If the Project is a jointly owned Project, please describe the other owners of the Project and the Applicant’s ownership
interest in the Project.
If the Application relates to multiple Projects, the Applicant must include separate project-specific information in all
relevant portions of the Application for each separate project (for example, for each separate project, the Application must
separately include a plan of financing, describe the project including costs and location, and describe the status of the
project’s approval).
4.
Pool issuances. Does the Applicant expect to have the Tribal Economic Development Bonds issued by a pool issuer or an
“on behalf of issuer”?
If the answer above is yes, please describe the pool issuer or “on behalf of issuer” and provide a statement that the
pool issuer is an Indian tribal government or that the “on behalf of issuer” meets the requirements to be such an issuer
under the rules applicable to bonds issued under § 103.
Location of the Project.
Reservation where the Project will be located:
Include in the attached Exhibit C, a certification that the Project will be located entirely on the Applicant’s reservation.
If the Tribal Economic Development Bonds will be issued for a joint project please include in the attached Exhibit C a
certification that the Project will be locatedentirely within one or more of the reservations of at least one of the Indian tribal
governments receiving an allocation with respect to such Project.
July 30, 20121082012–31 I.R.B.

5.Not used for gaming purposes.
Include in the attached Exhibit D a certification that no portion of the proceeds of any bonds issued pursuant to the requested
allocation will be used to finance any portion of a building in which class II or class III gaming (as defined in section 4 of the
Indian Gaming Regulatory Act) is conducted or housed, or anyother property actually used in the conduct of such gaming.
6.
Individual to contact for more information about the Project.
Individual Name and Title
Company Name
Street Address
CityStateZip
Telephone Number
Fax Number
Email Address
(Include as appropriate)The contact person is not an authorized official orofficer of the Applicant and a properly executed
Form 8821 (or Form 2848) is included with this Application that authorizes the disclosure by the IRS of information that
relates to this Application and the Project(s) described above to the contact person.
7.
Approvals. Include in the attached Exhibit E a certification that all required Federal,State, local, and tribal approvals
(regulatory and otherwise) for the Project, the proposed Tribal Economic Development Bonds, and any other required
financing for the Project have been obtained or, if any approvals have not yet been obtained, a certification that the
Applicant reasonably expects to receive all required approvals in a timely manner sufficient to permit issuance of
the proposed Tribal Economic Development Bonds within the 180-day period allowed for issuance of bonds under an
allocation. In addition, include in the attached Exhibit E which required approvals have not been obtained and describe the
Applicant’s plan and expected time frame for obtaining such approvals.
8.
Plan of financing. Include in the attached Exhibit F a plan of financing for the Project which includes: a reasonably
detailed plan of financing which includes (1) the amountof Tribal Economic Bonds expected to be issued and the amount
of proceeds of such bonds to be allocated to the project, (2)any reasonably expected other sources of financing for the
project together with a description of how such financing will be allocated to the project, and (3) documentation from an
independent third party who is knowledgeable about the marketability of tax-exempt bonds evidencing that the proposed
bonds are reasonably expected to be marketable prior to expiration of the volume capallocation set forth in section 4.g. of
the notice. Documentation that may be used to meet this requirement for the proposed bonds includes, among others, the
following: a bond purchase commitment letter from an investor; a credit quality assessment evidencing the investment
grade credit quality of the proposed Tribal Economic Development Bonds from an independent organization that is in the
business of assessing credit quality; a credit enhancement commitment letter from a financial institution that will enable the
Tribal Economic Development Bonds to be investment grade credit quality; or a letter from an underwriter or financial
advisor to the effect that the sale of the proposed bonds is likely to be successful in a timely manner before expiration of the
volume cap for the allocation; or similardocumentation or a combination thereof.
9.
Compliance with federal tax laws. Include in the attached Exhibit G a certification that the Applicant reasonably expects
that the proposed bonds will meet all applicable requirements of § 7871(f) and that the Applicant has engaged bond counsel
to render an opinion to the effect that the proposed bonds will meet those requirements.
10.
Certification of readiness to issue. Include in the attached Exhibit H a certification that the Applicant reasonably expects
to use the volume cap allocation by issuing Tribal Economic Development Bonds prior to the expiration of the volume
cap allocation.
11.
Certain forfeitures.If the Applicant previously received an allocation of Tribal Economic Development Bond volume
cap (not including any allocations received in allocations announced by the IRS on September 15, 2009 and February 9,
2010) that was forfeited, then the Applicant must identify any such forfeited allocation and include an explanation of the
reasons for such prior forfeiture.
12.
Reimbursements.(For reimbursements, include the following statement.)The Applicant intendsto use the proceeds of
Tribal Economic Development Bonds to reimbursecosts of the Project in accordance with § 1.150–2.(In addition, the
Applicant must demonstrate that the requirements of § 1.150–2 will be met.)
2012–31 I.R.B.109July 30, 2012

13.
Refundings.(For refundings or refinancings, include the following statement.)The Applicant intendsto use the proceeds
of Tribal Economic Development Bonds to refund or refinance prior debt in circumstances that would qualify for a
refunding or refinancing with tax-exempt bonds by a State or local government under § 103. In addition, the Applicant
must demonstrate that applicable requirements for such a refunding or refinancing issue will be met.
14.
Dollar amount of allocationrequested for the Project.The Applicant hereby requests aTribal Economic Development
Bond allocation in the amount of $
15.Assignment of allocations to another issuer.(If the Applicant expects to assign its allocation to another qualified issuer
of Tribal Economic Development Bonds as authority for the Tribal Economic Development Bond issuer to issue bonds for
the project on behalf of the Applicant, the Applicant should provide the following statement.)
The Applicant expects to assign the requested allocation for Tribal Economic Development Bonds volume cap to a
qualified issuer of Tribal Economic Development Bonds as authority for the Tribal Economic Development Bond issuer to
issue bonds for the project on behalf of the Applicant. Applicant agrees to obtain a written commitment from the assignee
Tribal Economic Development Bond issuer that it is a qualified issuer of Tribal Economic Development Bonds and that
it will issue Tribal Economic Development Bonds for the project within the time framespecified in the Application
for the Applicant’s bonds.
16.
Penalty of perjury statement and signatures.
I hereby certify that I am an authorizedofficer or official of the Applicant, that I am duly authorized to execute legal
documents on behalf of the Applicant in connection with incurring debt, and that I am duly authorized to execute legal
documents on behalf of the Applicant in making this Application. Under penalties of perjury, I declare that (i) I have
knowledge of the relevant facts and circumstances relating tothis Application and the Project(s), (ii) I have examined this
Application and the supporting documents, and (iii) to the best of my knowledge and belief, all of the facts contained in
this Application and the supporting documents are true, correct and complete.
By:
Name:
Title:
Date:
July 30, 20121102012–31 I.R.B.

Exhibit A
DOCUMENTS REGARDING ISSUER STATUS AS AN INDIAN TRIBAL GOVERNMENT
(RESPONSE TO QUESTION 2 OF THE APPLICATION)
(Attached hereto)
2012–31 I.R.B.111July 30, 2012

Exhibit B
DESCRIPTION OF THE PROJECT
(RESPONSE TO QUESTION 3 OF THE APPLICATION)
(Attached hereto)
July 30, 20121122012–31 I.R.B.

Exhibit C
PROJECT LOCATION ON INDIAN TRIBAL GOVERNMENT RESERVATION
(RESPONSE TO QUESTION 5 OF THE APPLICATION)
2012–31 I.R.B.113July 30, 2012

EXHIBIT D
STATEMENT WITH RESPECT TO GAMING
(RESPONSE TO QUESTION 6 OF THE APPLICATION)
July 30, 20121142012–31 I.R.B.

Exhibit E
APPROVALS
(RESPONSE TO QUESTION 8 OF THE APPLICATION)
(Attached hereto)
2012–31 I.R.B.115July 30, 2012

Exhibit F
PLAN OF FINANCING
(RESPONSE TO QUESTION 9 OF THE APPLICATION)
(Attached hereto)
July 30, 20121162012–31 I.R.B.

EXHIBIT G
COMPLIANCE WITH FEDERAL TAX LAWS
(RESPONSE TO QUESTION 10 OF THE APPLICATION)
(Attached hereto)
2012–31 I.R.B.117July 30, 2012

EXHIBIT H
STATEMENT OF READINESS TO ISSUE
(RESPONSE TO QUESTION 11 OF THE APPLICATION)
I hereby certify that I am an authorized officer or official of the Applicant, that I am duly authorized to execute legal documents
on behalf of the Applicant in connection with incurring debt, and that I am duly authorized to execute legal documents on behalf
of the Applicant in making this Application. I certify that theApplicant reasonably expects to issue the Tribal Economic
Development Bonds pursuant to the allocation of volume cap for those bonds to be received pursuant to the Application prior to
the expiration date of the volume cap allocation.
By:
Name:
Title:
Date:
July 30, 20121182012–31 I.R.B.

APPENDIX B
CONSENT TO PUBLIC DISCLOSURE
OF CERTAIN TRIBAL ECONOMIC DEVELOPMENT BOND
APPLICATION INFORMATION
In the event that the Application of [(Insert name of Applicant here):
] (Applicant) for an allocation of
authority to issue tribal economic development bonds (Tribal Economic Development Bonds) under § 7871(f) of the Internal
Revenue Code is approved, the undersigned authorized representative of the Applicant hereby consents to the disclosure by the
Internal Revenue Service through publication of a Notice in the Internal Revenue Bulletin or other public release of the name of
Applicant (issuer), the type of projectto be financed by the Tribal Economic Development Bonds, the reservation on which
the project is to be located, the reasonablyexpected cost of the project, and the amount of the allocation, if any, of volume cap
authority to issue Tribal Economic Development Bonds awarded to the Applicant. The undersigned understands that this
information might be published, broadcast, discussed or otherwise disseminated in the public record.
This authorization shall become effective upon the execution hereof. Except to the extent disclosure is authorized herein,
the returns and return information of the undersigned taxpayer are confidential and are protected by law under the Internal
Revenue Code.
I certify that I have the authority toexecute this consent to disclose on behalf of the taxpayer named below.
Date:
Signature:
Print name:
Title:
Name of Applicant-Taxpayer:
Taxpayer Identification Number:
Taxpayer’s Address:
Note: Treasury Regulations require that the Internal Revenue Service must receive this consent within 60 days after it is signed
and dated.
2012 Section 43 Inflation
Adjustment
Notice 2012–49
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor.
The enhanced oil recovery credit under
§ 43 for any taxable year is reduced if
the “reference price,” determined under
§ 45K(d)(2)(C), for the calendar year
preceding the calendar year in which the
taxable year begins is greater than $28
multiplied by the inflation adjustment fac-
tor for that year. The credit is phased out
in any taxable year in which the reference
price for the preceding calendar year ex-
ceeds $28 (as adjusted) by at least $6.
The term “inflation adjustment factor”
means, with respect to any calendar year,
a fraction the numerator of which is the
GNP implicit price deflator for the preced-
ing calendar year and the denominator of
which is the GNP implicit price deflator
for 1990.
Because the reference price for the 2011
calendar year ($95.73) exceeds $28 mul-
tiplied by the inflation adjustment factor
for the 2011 calendar year ($43.92) by
$51.81, the enhanced oil recovery credit
for qualified costs paid or incurred in 2012
is phased out completely.
Table 1 contains the GNP implicit price
deflator used for the 2012 calendar year,
as well as the previously published GNP
implicit price deflators used for the 1991
through 2011 calendar years.
2012–31 I.R.B.119July 30, 2012

Notice 2012–49 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
Calendar YearGNP Implicit Price Deflator
1990112.9 (used for 1991)
1991117.0 (used for 1992)
1992120.9 (used for 1993)
1993124.1 (used for 1994)
1994
126.0 (used for 1995)*
1995107.5 (used for 1996)
1996109.7 (used for 1997)**
1997
112.35 (used for 1998)
1998112.64 (used for 1999)***
1999
104.59 (used for 2000)
2000106.89 (used for 2001)
2001109.31 (used for 2002)
2002110.63 (used for 2003)
2003
105.67 (used for 2004)****
2004
108.23 (used for 2005)
2005
112.129 (used for 2006)
2006116.036 (used for 2007)
2007
119.656 (used for 2008)
2008122.407 (used for 2009)
2009109.764 (used for 2010)*****
2010
110.654 (used for 2011)
2011113.347 (used for 2012)******
* Beginning in 1995, the GNP implicit pricedeflator was rebased relative to 1992. The 1990 GNP implicit price deflator used to
compute the 1996 § 43 inflation adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNPimplicit price deflator. The 1990 GNP price deflator used to
compute the 1998 § 43 inflation adjustment factor is 93.63.
*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator used
to compute the 2000 § 43 inflation adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute
the 2004 § 43 inflation adjustment factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to
compute the 2010 § 43 inflation adjustment factor is 72.199.
****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation adjustment factor is
72.260.
July 30, 20121202012–31 I.R.B.

Table 2 contains the inflation adjust-
ment factor and the phase-out amount
for taxable years beginning in the 2012
calendar year as well as the previously
published inflation adjustment factors and
phase-out amounts for taxable years be-
ginning in the 1991 through 2011 calendar
years.
Notice 2012–49 TABLE 2
INFLATION ADJUSTMENT FACTORS AND PHASE-OUT AMOUNTS
Calendar YearInflation Adjustment FactorPhase-out Amount
19911.00000
19921.03630
19931.07080
19941.09920
1995
1.11600
1996
1.1485
0
19971.17200
19981.19990
19991.20300
20001.20870
2001
1.2353
0
20021.26330
2003
1.2785
0
2004
1.2952
0
2005
1.32660
20061.3743100 percent
20071.4222100 percent
20081.4666100 percent
2009
1.5003
100 percent
2010
1.5203
100 percent
2011
1.5326
100 percent
2012
1.5686
100 percent
DRAFTING INFORMATION
The principal author of this notice
is Martha M. Garcia of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice, contact
Ms. Garcia at (202) 622–3110 (not a
toll-free call).
2012 Marginal Production
Rates
Notice 2012–50
This notice announces the applicable
percentage under § 613A of the Internal
Revenue Code to be used in determining
percentage depletion for marginal proper-
ties for the 2012 calendar year.
Section 613A(c)(6)(C) defines the term
“applicable percentage” for purposes of
determining percentage depletion for oil
and gas produced from marginal proper-
ties. The applicable percentage is the per-
centage (not greater than 25 percent) equal
to the sum of 15 percent, plus one per-
centage point for each whole dollar by
which $20 exceeds the reference price (de-
termined under § 45K(d)(2)(C)) for crude
oil for the calendar year preceding the cal-
endar year in which the taxable year be-
gins. The reference price determined un-
der § 45K(d)(2)(C) for the 2011 calendar
year is $95.73.
The following table contains the ap-
plicable percentages for marginal produc-
tion for taxable years beginning in calen-
dar years 1991 through 2012.
2012–31 I.R.B.121July 30, 2012

Notice 2012–50
APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION
Calendar YearApplicable Percentage
1991
15 percent
199218 percent
199319 percent
199420 percent
1995
21 percent
199620 percent
199716 percent
199817 percent
199924 percent
200019 percent
2001
15 percent
2002
15 percent
2003
15 percent
2004
15 percent
200515 percent
2006
15 percent
2007
15 percent
2008
15 percent
2009
15 percent
2010
15 percent
2011
15 percent
2012
15 percent
The principal author of this notice
is Martha M. Garcia of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice, contact
Ms. Garcia at (202) 622–3110 (not a
toll-free call).
July 30, 20121222012–31 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2012–31 I.R.B.iJuly 30, 2012

Numerical Finding List
1
Bulletins 2012–27 through 2012–31
Announcements:
2012-26, 2012-27 I.R.B.8
2012-27, 2012-27 I.R.B.10
2012-28, 2012-27 I.R.B.10
Notices:
2012-39, 2012-31 I.R.B.95
2012-44, 2012-28 I.R.B.45
2012-45, 2012-29 I.R.B.59
2012-46, 2012-30 I.R.B.86
2012-47, 2012-31 I.R.B.98
2012-48, 2012-31 I.R.B.102
2012-49, 2012-31 I.R.B.119
2012-50, 2012-31 I.R.B.121
Proposed Regulations:
REG-134042-07, 2012-27 I.R.B.5
REG-153627-08, 2012-29 I.R.B.60
REG-125570-11, 2012-30 I.R.B.93
REG-134935-11, 2012-29 I.R.B.64
REG-141832-11, 2012-28 I.R.B.54
REG-107889-12, 2012-28 I.R.B.53
REG-113738-12, 2012-29 I.R.B.66
Revenue Procedures:
2012-28, 2012-27 I.R.B.4
2012-29, 2012-28 I.R.B.49
Revenue Rulings:
2012-19, 2012-28 I.R.B.16
2012-20, 2012-27 I.R.B.1
Treasury Decisions:
9591, 2012-28 I.R.B.32
9592, 2012-28 I.R.B.41
9593, 2012-28 I.R.B.17
9594, 2012-29 I.R.B.57
9595, 2012-30 I.R.B.71
9596, 2012-30 I.R.B.84
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin
2012–26, dated June 25, 2012.
July 30, 2012ii2012–31 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2012–27 through 2012–31
Proposed Regulations:
REG-100276-97
Withdrawn by
Ann. 2012-27, 2012-27 I.R.B.10
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2012–1 through 2012–26 is in Internal Revenue Bulletin 2012–26, dated June 25, 2012.
2012–31 I.R.B.iiiJuly 30, 2012

INDEX
Internal Revenue Bulletins 2012–27 through
2012–31
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parentheses refer to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
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
Amendment of prohibited payment option under defined sin-
gle–employer defined benefit plan of plan sponsor in bank-
ruptcy (REG–113738–12) 29,66
Application of section 162(m)(4)(C) to dividends and dividend
equivalents (RR 19) 28,16
Election to include in gross income in year of transfer (RP 29)
28,49
Full funding limitations, weighted average interest rates, seg-
ment rates for:
July 1, 2012 (Notice 47) 31,98
Proposed Regulations:
26 CFR 1.411(d)–4, amended; amendment of prohibited pay-
ment option under defined single–employer defined benefit
plan of plan sponsor in bankruptcy (REG–113738–12) 29,
66
26 CFR 1.6081–11, amended; 301.6057–1, amended; report-
ing and notice requirements for deferred vested benefits un-
der section 6057 (REG–153627–08) 29,60
Reporting and notice requirements for deferred vested benefits
under section 6057 (REG–153627–08) 29,60
Underfunded plans, notice requirements (Notice 46) 30,86
ESTATE TAX
Portability of a deceased spousal unused exclusion amount (TD
9593) 28,17; (REG–141832–11) 28,54
Proposed Regulations:
26 CFR 20.2001–2, added; 20.2010–0, thru –3, added; 25
CFR 25.2505–0, thru –2, added; portability of a deceased
spousal unused exclusion amount (REG–141832–11) 28,
54
ESTATE TAX—Cont.
Regulations:
26 CFR 20.2001–2T, added; 20.2010–0T, thru –2T, added;
25.2505–0T, thru –3T, added; 602.101, amended; porta-
bility of a deceased spousal unused exclusion amount (TD
9593) 28,17
EXCISE TAX
Disregarded entities and the indoor tanning services excise tax
(TD 9596) 30,84; (REG–125570–11) 30,95
Proposed Regulations:
26 CFR 1.1361–4, amended; 301.7701–2, amended; disre-
garded entities and the indoortanning services excise tax
(REG–125570–11) 30,95
Regulations:
26 CFR 1.1361–4, amended; 1.1361–4T, added;
301.7701–2T, added; disregarded entities and the indoor
tanning services excise tax (TD 9596) 30,84
GIFT TAX
Portability of a deceased spousal unused exclusion amount (TD
9593) 28,17; (REG–141832–11) 28,54
Proposed Regulations:
26 CFR 20.2001–2, added; 20.2010–0, thru –3, added; 25
CFR 25.2505–0, thru –2, added; portability of a deceased
spousal unused exclusion amount (REG–141832–11) 28,
54
Regulations:
26 CFR 20.2001–2T, added; 20.2010–0T, thru –2T, added;
25.2505–0T, thru –3T, added; 602.101, amended; porta-
bility of a deceased spousal unused exclusion amount (TD
9593) 28,17
INCOME TAX
Application of section 162(m)(4)(C) to dividends and dividend
equivalents (RR 19) 28,16
Basis of indebtedness of S corporations to their shareholders
(REG–134042–07) 27,5
Bonds:
Qualified energy conversation bonds (Notice 44) 28,45
Tribal economic development bonds (Notice 48) 31,102
Corporations, regulations undersection 367(d) applicable to cer-
tain outbound asset reorganizations (Notice 39) 31,95
Disciplinary actions involving attorneys, certified public ac-
counts, enrolled agents, and enrolled actuaries (Ann 28) 27,
10
Election to include in gross income in year of transfer (RP 29)
28,49
Financial asset securitization investment trusts (Ann 27) 27,10
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
July (RR 20) 27,1
July 30, 2012iv2012–31 I.R.B.

INCOME TAX—Cont.
Marginal production rates, 2012 (Notice 50) 31,121
Modification to consolidated return regulation permitting an
election to treat a liquidation of a target, followed by a recon-
tribution to a new target, as a cross-chain reorganization (TD
9594) 29,57
Overall foreign loss recapture on property dispositions
(REG–134935–11) 29,64
Proposed Regulations:
26 CFR 1.108–7, amended; 1.366–0, amended; 1.1366–2, –5,
amended; 1.1367–1(h), amended; 1.1367–3, amended; ba-
sis of indebtedness of S corporations to their shareholders
(REG–134042–07) 27,5
26 CFR 1.904–4, amended; 1.904(g)–3, amended; over-
all foreign loss recaptureon property dispositions
(REG–134935–11) 29,64
26 CFR 1.7874–3, added; substantial business activities
(REG–107889–12) 28,53
Qualifying income under section 7704(d) (RP 28) 27,4
Regulations:
26 CFR 1.904–0, –1, –2, –7, –8, amended; 1.904(f)–0T, –1T,
–2T, –7T, –8T, removed; 1.904(g)–0, –1, –2, –3, amended;
1.904(g)–0T, –1T, –2T, –3T, removed; 1.502–9, amended,
1.1502–9T, removed; treatment of overall foreign and do-
mestic losses (TD 9595) 30,71
26 CFR 1.1502–13, amended; 1.1502–13T, removed;
602.101, amended; modification to consolidated return
regulation permitting an election to treat a liquidation of a
target, followed by a recontribution to a new target, as a
cross-chain reorganization (TD 9594) 29,57
26 CFR 1.7874–1, amended; 1.7874–1T, removed; 1.7874–2,
added; surrogate foreigncorporations (TD 9591) 28,32
26 CFR 1.7874–3T, added; substantial business activities (TD
9592) 28,41
Section 43 inflation adjustment, 2012 (Notice 49) 31,119
Substantial business activities (TD 9592) 28,41;
(REG–107889–12) 28,53
Surrogate foreign corporations (TD 9591) 28,32
Tax Convention:
U.S.-Netherlands agreement of limited funds for mutual ac-
count (LFMA) (Ann 26) 27,8
Treatment of income from certain government bonds for pur-
poses of the passive foreign investment company (PFIC) rules
(Notice 45) 29,59
Treatment of overall foreign and domestic losses (TD 9595) 30,
71
2012–31 I.R.B.vJuly 30, 2012

July 30, 20122012–31 I.R.B.

2012–31 I.R.B.July 30, 2012

July 30, 20122012–31 I.R.B.

Internal Revenue Service
W
ashington,DC20224
Official Business
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