Internal Revenue Bulletin 2013-32 (PDF rendition): IRS Notices

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Bulletin No. 201
3-32
August 5, 2013
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2013–13, page 124.
Federal rates; adjusted federalrates; adjusted federal long-
term rate and the long-term exempt rate. For purposes of
sections 382, 642, 1274, 1288, and other sections of the
Code, tables set forth the rates for August 2013.
REG–140789–12, page 136.
Proposed regulations provide rules under section 36B of the
Code relating to requirements for Affordable Insurance Ex-
changes to report information relating to the health insurance
premium tax credit, enacted by section 1401 of the Affordable
Care Act. Comments requested by September 3, 2013.
Notice 2013–50, page 134.
2013 Section 43 Inflation Adjustment. This notice announces
the inflation adjustment factor and phase-out amount for the
enhanced oil recovery credit for taxable years beginning in the
2013 calendar year. The notice concludes that the enhanced
oil recovery credit for qualified costs paid or incurred in 2013
is phased out completely. The notice also contains the previ-
ously published figures for taxable years beginning in the 1991
through 2012 calendar years.
EMPLOYEE PLANS
Notice 2013–49, page 127.
This notice provides updated static mortality tables to be used
by defined benefit pension plans for purposes of satisfying cer-
tain funding and benefit requirements under the Code and the
Employee Retirement Income Security Act of 1974 (ERISA).
These tables apply for purposes of calculations for valuation
dates occurring during calendar years 2014 and 2015. The
notice also includes a modified unisex version of the mortality
tables for use in determining the minimum present value for
distributions with annuity starting dates that occur during sta-
bility periods beginning in calendar years 2014 and 2015. The
notice also requests comments by October 8, 2013, regarding
the publication of mortality tables for future years.
Actions Relating to Court Decisions is on the page following the Introduction.
Finding Lists begin on page ii.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.
It is the poli
cy of the Service to publish in the Bulletin all sub-
stantive ru
lings necessary to promote a uniform application of
the tax laws
, including all rulings that supersede, revoke, mod-
ify, or amen
d any of those previously published in the Bulletin.
All publish
ed rulings apply retroactively unless otherwise indi-
cated. Pro
cedures relating solely to matters of internal man-
agement ar
e 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.—1986 Code.
This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, 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 part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The cont
ents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
August 5, 20132013–32 I.R.B.

Actions Relati
ng to Court Decisions
It is the policy
of the Internal Rev-
enue Service t
o announce at an early date
whether it wil
l follow the holdings in cer-
tain cases. An
Action on Decision is the
document maki
ng such an announcement.
An Action on De
cision will be issued at
the discreti
on of the Service only on unap-
pealed issue
s decided adverse to the gov-
ernment. Gen
erally, an Action on Decision
is issued whe
re its guidance would be help-
ful to Servi
ce personnel working with the
same or simi
lar issues. Unlike a Treasury
Regulation
or a Revenue Ruling, an Action
on Decision
is not an affirmative statement
of Service
position. It is not intended to
serve as pu
blic guidance and may not be
cited as pr
ecedent.
Actions on
Decisions shall be relied
upon withi
n the Service only as conclu-
sions appl
ying the law to the facts in the
particul
ar case at the time the Action on
Decision
was issued. Caution should be
exercise
d in extending the recommenda-
tion of th
e Action on Decision to similar
cases whe
re the facts are different. More-
over, th
e recommendation in the Action on
Decisio
n may be superseded by new legis-
lation,
regulations, rulings, cases, or Ac-
tions on
Decisions.
Prior to 1991, t
he Service published
acquiescence
or nonacquiescence only in
certain regul
ar Tax Court opinions. The
Service has ex
panded its acquiescence
program to inc
lude other civil tax cases
where guidanc
e is determined to be help-
ful. Accordi
ngly, the Service now may
acquiesce or
nonacquiesce in the holdings
of memorandu
m Tax Court opinions, as
well as those
of the United States District
Courts, Cla
ims Court, and Circuit Courts
of Appeal. R
egardless of the court decid-
ing the case
, the recommendation of any
ActiononDe
cision will be published in
the Intern
al Revenue Bulletin.
The recomme
ndation in every Action
on Decisio
n will be summarized as ac-
quiescenc
e, acquiescence in result only,
or nonacqu
iescence. Both “acquiescence”
and “acqui
escence in result only” mean
that the S
ervice accepts the holding of
the court
in a case and that the Service
will foll
ow it in disposing of cases with
the same c
ontrolling facts. However, “ac-
quiescen
ce” indicates neither approval
nor disa
pproval of the reasons assigned
by the co
urt for its conclusions; whereas,
“acquie
scence in result only” indicates
disagre
ement or concern with some or all
of those reason
s. “Nonacquiescence” sig-
nifies that, a
lthough no further review was
sought, the Se
rvice does not agree with
the holding of
the court and, generally,
will not follo
w the decision in disposing
of cases invol
ving other taxpayers. In
reference to
an opinion of a circuit court
of appeals, a
“nonacquiescence” indicates
that the Serv
ice will not follow the hold-
ingonanatio
nwide basis. However, the
Service wil
l recognize the precedential
impact of th
e opinion on cases arising
within the v
enue of the deciding circuit.
The Commiss
ioner ACQUIESCES in
the followi
ng decision:
Karen Marie
Wilson v. Commis-
sioner
1
705F.3d980
(9th Cir. 2013), aff’g T.C.
Memo. 2010
-134
The Commis
sioner does NOT ACQUI-
ESCE in the
following decision:
Media Spac
e, Inc. v. Commissioner
2
135 T.C. 42
4 (2010), vacated, 477 Fed.
Appx. 857 (
2nd Cir. 2012)
1
Acquiescencerelating to whether section 6015(e)(1)(A) provides a de novo standard and scope of review in section 6015(f) cases petitioned to the United States TaxCourt.
2
Nonacquiescencerelating to whether the taxpayer’s forbearance payments to its preferred shareholders were (1) ordinary and necessary business expenses that were not required to be
capitalized under section 263(a), (2) not nondeductible distributions to the shareholders under section 301, and (3) not pursuant to a reacquisition or an exchange of stock to which section
162(k) or section 361(c)(1) applied.
2013–32 I.R.B.August 5, 2013

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 42.—L
ow-Income
Housing Credi
t
The adjusted a
pplicable federal short-term, mid-
term, and long
-term rates are set forth for the month
of August 2013
. See Rev. Rul. 2013-13, page 124.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term rates
are set forth for the month of August 2013. See Rev.
Rul. 2013-13, page 124.
Section 382.—Limitation
on Net Operating Loss
Carryforwa
rds and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of August 2013. See Rev. Rul.
2013-13, page 124.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 468.—Special
Rules for Mining and Solid
Waste
Reclamation and
Closi
ng Costs
The ad
justed applicable federal short-term, mid-
term,
and long-term rates are set forth for the month
of Aug
ust 2013. See Rev. Rul. 2013-13, page 124.
Section 482.—
Allocation
of Income and D
eductions
Among Taxpaye
rs
Federal short
-term, mid-term, and long-term rates
are set forth f
or the month of August 2013. See Rev.
Rul. 2013-13
,page124.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term rates
are set forth for the month of August 2013. See Rev.
Rul. 2013-13, page 124.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 1274.—Determi-
nation of Issue Price in the
Case of Certain Debt Instru-
ments Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates; ad-
justed federal long-term rate and the long-
term exempt rate. For purposes of sections
382, 642, 1274
, 1288, and other sections of
the Code, tabl
es set forth the rates for Au-
gust 2013.
Rev. Rul. 2013
–13
This revenue
ruling provides various
prescribed r
ates for federal income tax
purposes for
August 2013 (the current
month). Tabl
e 1 contains the short-term,
mid-term, an
d long-term applicable fed-
eral rates (
AFR) for the current month
for purpose
s of section 1274(d) of the
Internal Re
venue Code. Table 2 contains
the short-t
erm, mid-term, and long-term
adjusted a
pplicable federal rates (adjusted
AFR) for th
e current month for purposes
of section
1288(b). Table 3 sets forth the
adjusted f
ederal long-term rate and the
long-ter
m tax-exempt rate described in
section 3
82(f). Table 4 contains the ap-
propriat
e percentages for determining the
low-inco
me housing credit described in
section 4
2(b)(1) for buildings placed in
service
during the current month. How-
ever, un
der section 42(b)(2), the applicable
percent
age for non-federally subsidized
new buil
dings placed in service after July
30, 2008
, with respect to housing credit
dollar
amount allocations made before
Januar
y 1, 2014, shall not be less than 9%.
Finall
y, Table 5 contains the federal rate
for det
ermining the present value of an
annuit
y, an interest for life or for a term
of yea
rs, or a remainder or a reversionary
inter
est for purposes of section 7520.
2013–32 I.R.B.124August 5, 2013

REV. RUL. 2013–13 TABLE 1
Applicable Federal Rates (AFR) for August 2013
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR.28%.28%.28%.28%
110% AFR.31%.31%.31%.31%
120% AFR.34%.34%.34%.34%
130% AFR.36%.36%.36%.36%
Mid-term
AFR1.63%1.62%1.62%1.61%
110% AFR1.79%1.78%1.78%1.77%
120% AFR
1.95%
1.94%1.94%1.93%
130% AFR2.12%2.11%2.10%2.10%
150% AFR
2.44%2.43%2.42%2.42%
175% AFR
2.86%2.84%2.83%2.82%
Long-term
AFR3.16%3.14%3.13%3.12%
110% AFR3.48%
3.45%
3.44%3.43%
120% AFR3.81%3.77%
3.75%
3.74%
130% AFR4.12%4.08%4.06%
4.05%
REV. RUL. 2013–13 TABLE 2
Adjusted AFR for August 2013
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted
AFR
.28%.28%.28%.28%
Mid-term adjusted AFR1.61%1.60%1.60%
1.59%
Long-term adjusted
AFR
3.16%3.14%3.13%3.12%
REV. RUL. 2013–13 TABLE 3
Rates Under Section 382 for August 2013
Adjusted federal long-term rate for the current month3.16%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted
federal long-term rates for the current month and the prior two months.)3.16%
REV. RUL. 2013–13 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for August 2013
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July
30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2014, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit
7.55%
Appropriate percentage for the 30% present value low-income housing credit3.24%
August 5, 20131252013–32 I.R.B.

REV. RUL. 2013–13 TABLE 5
Rate Under Section 7520 for August 2013
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest2.0%
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
Section 7872.—Treatment
of Loans with Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of August 2013. See Rev. Rul. 2013-13, page 124.
2013–32 I.R.B.126August 5, 2013

Part III. Administrative, Procedural, and Miscellaneous
Updated Static Mortality
Tables for the Years 2014 and
2015
Notice 2013–49
This notice provides updated static
mortality tables to be used under
§ 430(h)(3)(A) of the Internal Revenue
Code (Code) and § 303(h)(3)(A) of the
Employee Retirement Income Security
Act of 1974 (ERISA), and requests com-
ments regarding the publication of mor-
tality tables for future years. These tables
apply for purposes of calculating the fund-
ing target and other items for valuation
dates occurring during calendar years
2014 and 2015.
This notice also includes a modified
unisex version of the mortality tables
for use in determining minimum present
value under § 417(e)(3) of the Code and
§ 205(g)(3) of ERISA for distributions
with annuity starting dates that occur dur-
ing stability periods beginning in the 2014
and 2015 calendar years.
BACKGROUND
Section 412 of the Code provides min-
imum funding requirements that generally
apply for defined benefit plans. Section
412(a)(2) provides that § 430 specifies
the minimum funding requirements that
generally apply to defined benefit plans
that are not multiemployer plans. Section
430(a) defines the minimum required con-
tribution for such a plan by reference to
the plan’s funding target for the plan year.
Section 430(h)(3) provides rules re-
garding the mortality tables to be used
under § 430. Under § 430(h)(3)(A), ex-
cept as provided in § 430(h)(3)(C) or (D),
the Secretary is to prescribe by regulation
mortality tables to be used in determining
any present value or making any compu-
tation under § 430. Those tables are to be
based on the actual experience of pension
plans and projected trends in that experi-
ence. Section 430(h)(3)(B) provides that
periodically (at least every 10 years) these
mortality tables shall be revised to reflect
the actual experience of pension plans and
projected trends in that experience.
Section 430(h)(3)(C) provides that,
upon request by a plan sponsor and ap-
proval by the Secretary, substitute mor-
tality tables that meetthe applicable re-
quirements may be used in lieu of the
standard mortality tables provided under
§ 430(h)(3)(A). Section 430(h)(3)(D) pro-
vides for the use of separate mortality
tables with respect to certain individuals
who are entitled to benefits on account of
disability, with separate tables for those
whose disabilities occurred in plan years
beginning before January 1, 1995, and
those whose disabilities occurred in plan
years beginning after December 31, 1994.
These separate mortality tables are per-
mitted to be used with respect to disabled
individuals in lieu of the generally appli-
cable mortality tables provided pursuant to
§ 430(h)(3)(A) or the substitute mortality
tables under § 430(h)(3)(C).
Determination of Minimum Funding
Requirements under § 430
Section 1.430(h)(3)–1 of the regula-
tions provides for mortality tables, based
on the tables contained in the RP–2000
Mortality Tables Report,
1
adjusted for
mortality improvement using Projection
Scale AA as recommended in that report.
Section 1.430(h)(3)–1 generally requires
the use of separate tables for nonannui-
tant and annuitant periods for large plans
(those with over 500 participants as of the
valuation date). Sponsors of small plans
(those with 500 or fewer participants as
of the valuation date) are permitted to use
a combined table that applies the same
mortality rates to both annuitants and
nonannuitants.
Section 1.430(h)(3)–1 describes the
methodology that the IRS will use to es-
tablish mortality tables as provided under
§ 430(h)(3)(A). The mortality tables set
forth in § 1.430(h)(3)–1 are based on ex-
pected mortality as of 2000 and reflect
the impact of expected improvements in
mortality. The regulations permit plan
sponsors to apply the projection of mor-
tality improvement in either of two ways:
through use of static tables that are updated
annually to reflect expected improvements
in mortality, or throughuse of generational
tables. The regulations include static mor-
tality tables for use in actuarial valuations
as of valuation datesoccurring in 2008
and provide that the mortality tables for
valuation dates occurringinfutureyears
aretobeprovidedintheInternalRevenue
Bulletin. Notice 2008–85, 2008–42 IRB
905, sets forth the static mortality tables
that apply under § 430(h)(3)(A) for valua-
tion dates during 2009 through 2013.
Application of These Tables for Other
Purposes under the Funding Rules
For a plan for which the effective date
of § 430 is delayed pursuant to sections
104 or 105 of the Pension Protection Act
of 2006, Public Law 109–280, current
liability under § 412(l)(7) must be de-
termined in order to calculate the plan’s
minimum required contribution. Section
1.412(l)(7)–1(a) provides that for plan
years beginning on or after January 1,
2008, the mortality tables described in
§ 430(h)(3)(A) are to be used to determine
current liability under § 412(l)(7) of the
Code for nondisabled participants.
Section 1.431(c)(6)–1 provides that
the same mortality assumptions that ap-
ply for purposes of § 430(h)(3)(A) and
§ 1.430(h)(3)–1(a)(2) are used to de-
termine a multiemployer plan’s current
liability for purposes of applying the
full-funding rules of § 431(c)(6). For this
purpose, a multiemployer plan is permit-
ted to apply either the annually-adjusted
static mortality tables or the generational
mortality tables.
Application of Mortality Tables for
Minimum Present Value Requirements
under § 417(e)(3)
Section 417(e)(3) generally provides
that the present value of certain benefits
under a qualified pension plan (includ-
ing single-sum distributions) cannot be
less than the present value of the accrued
benefit using applicable interest rates and
the applicable mortality table. Under
§ 1.417(e)–1(d), these rules must also be
used to compute the present value of a
1
The RP–2000 Mortality Tables Report was released by the Society of Actuaries in July 2000.Society of Actuaries, RP–2000 Mortality Tables Report, at
http://www.soa.org/Research/Experience-Study/Pension/research-rp-2000-mortality-tables.aspx.
August 5, 20131272013–32 I.R.B.

plan benefit for purposes of determining
whether consent for a distribution is re-
quired under § 411(a)(11)(A).
Section 417(e)(3)(B) defines the term
“applicable mortalitytable”asthemor-
tality table specified for the plan year
under § 430(h)(3)(A) (without regard to
§ 430(h)(3)(C) or (D)), modified as appro-
priate by the Secretary.
Rev. Rul. 2007–67, 2007–2 C.B. 1047,
provides that, except as otherwise stated in
future guidance, the applicable mortality
table under § 417(e)(3) for 2008 is based
on a fixed blend of 50% of the static male
combined mortalityrates and 50% of the
static female combined mortality rates
promulgated under § 1.430(h)(3)–1(c)(3)
of the proposed regulations (which have
since been issued as final regulations).
The applicable mortality table for purposes
of § 417(e)(3) is not a generational table.
Rev. Rul. 2007–67 also provides that
the applicable mortality table for a given
year applies to distributions with annuity
starting dates that occur during stability
periods that begin during that calendar
year. Rev. Rul. 2007–67 further states
that the § 417(e)(3) applicable mortality
table for each subsequent year will be
published in future guidance and, except
as provided in that future guidance, will
be determined from the § 430(h)(3)(A)
tables on the same basis as the applicable
mortality table for 2008. Notice 2008–85
set forth the § 417(e)(3) applicable mor-
tality tables for distributions with annuity
starting dates that occur during stability
periods beginning during calendar years
2009 through 2013.
STATIC MORTALITY TABLES FOR
YEARS 2014 AND 2015
The static mortality tables that apply
under § 430(h)(3)(A) for valuation dates
during 2014 and 2015 are set forth in
the appendix to this notice. The mor-
tality rates in these tables have been de-
veloped from the base rates, projection
factors, and weighting factors set forth in
§ 1.430(h)(3)–1, using the blending tech-
niques described in the preamble to those
regulations.
The static mortality tables that apply
under § 417(e)(3) for distributions with an-
nuity starting dates occurring during sta-
bility periods beginning in 2014 and 2015
are set forth in the appendix to this notice
in the column labeled “Unisex.” These ta-
bles were derived from the tables used for
§ 430(h)(3)(A) following the procedures
set forth in Rev. Rul. 2007–67.
REQUEST FOR COMMENTS
As noted in § 430(h)(3)(B) the IRS and
Treasury are required to revise the mor-
tality tables used under § 430(h)(3)(A) at
least every 10 years, to reflect the actual
mortality experience of pension plans and
projected trends in that experience. The
IRS and Treasury are aware of a study that
is currently being conducted by the Soci-
ety of Actuaries to measure the actual ex-
perience and trends in mortality for par-
ticipants of uninsured pension plans in the
United States and an associated report is-
sued in September 2012.
2
Comments are
requested as to whether other studies of ac-
tual mortality experience of pension plans
and projected trends ofthat experience are
available that should be considered for use
in developing mortality tables for future
use under § 430(h)(3).
Section 430(h)(3)(D) and Rev. Rul.
96–7, 1996–1 C.B. 59 provide for separate
mortality tables for disabled participants
whose disabilities occurred in plan years
beginning before January 1, 1995, and for
those whose disabilities occurred in plan
years beginning after December 31, 1994.
Comments are requested as to whether it is
reasonable to expect that the mortality ex-
perience for participants who became dis-
abled before 1995 will continue to be suffi-
ciently substandard so that a separate mor-
tality table is warranted for future use with
respect to those disabled participants under
§ 430(h)(3).
The existing regulations under
§ 430(h)(3)–1 provided a number of alter-
native versions of the mortality tables that
were simplified in order to accommodate
limitations in actuarial software. In devel-
oping updated regulations, comments are
requested as to:
•Whether actuarial software generally
available for use with small pension
plans is capable of using separate mor-
tality tables for annuitants and non-an-
nuitants, or whether it is necessary for
the IRS and Treasury to continue pub-
lishing combined static mortality ta-
bles.
•Whether generally available actuarial
software is capable of using mortality
tables on a fully generational basis, or
whether it is necessary for the IRS and
Treasury to continuepublishing static
mortality tables (taking into account
the limitations of duration-based static
approximations identified in the Soci-
ety of Actuaries’ September 2012 re-
port);
•Whether it is expected that generally
available actuarial software will be
capable of using atwo-dimensional
mortality projection scale as described
in the Society of Actuaries’ September
2012 report (that is, with projected
mortality improvement that is a func-
tion of both age and year of birth).
Written or electronic comments must
be received by October 8, 2013. Send
submissions to CC:PA:LPD:PR (Notice
2013–49), Room 5203, Internal Revenue
Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may
be hand delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to: CC:PA:LPD:PR (Notice 2013–49),
Courier’s Desk, Internal Revenue Ser-
vice, 1111 Constitution Avenue, NW.,
Washington, DC. Alternatively, com-
ments may be submitted via the Internet
atnotice.comments@irscounsel.treas.gov.
Please include “Notice 2013–49” in
the subject line of any electronic
communication. All materials submitted
will be available for public inspection and
copying.
Drafting Information
The principal author of this no-
tice is Carolyn E. Zimmerman of the
Employee Plans, Tax Exempt and
Government Entities Division.For
further information regarding this notice,
please contact Ms. Zimmerman at
retirementplanquestions@irs.gov.
2
Seehttp://www.soa.org/files/research/exp-study/research-mortality-improve-bb-report.pdf, issued in September 2012.
2013–32 I.R.B.128August 5, 2013

APPENDIX
Mortality tables for
Valuation dates occurring during 2014
Distributions subject to § 417(e)(3)with annuity starting dates during
stability periods beginning in 2014
MALEMALEMALEFEMALEFEMALEFEMALEUNISEX
Age
2014 Non-
Annuitant
Table
2014
Annuitant
Table
2014
Optional
Combined
Table for
Small Plans
2014 Non-
Annuitant
Table
2014
Annuitant
Table
2014
Optional
Combined
Table for
Small Plans
2014
Table for
Distributions
Subject to
§ 417(e)(3)
1
0.0003550.0003550.000355
0.0003180.0003180.0003180.000337
20.0002390.0002390.0002390.0002070.0002070.0002070.000223
30.0001990.0001990.000199
0.0001550.0001550.000155
0.000177
4
0.0001550.0001550.000155
0.0001160.0001160.0001160.000136
5
0.0001420.0001420.000142
0.0001050.0001050.000105
0.000124
60.0001360.0001360.0001360.0000980.0000980.0000980.000117
70.0001300.0001300.0001300.0000920.0000920.0000920.000111
80.0001200.0001200.0001200.0000820.0000820.0000820.000101
90.0001160.0001160.0001160.0000780.0000780.0000780.000097
100.0001180.0001180.0001180.0000780.0000780.0000780.000098
110.0001220.0001220.0001220.0000800.0000800.0000800.000101
120.0001270.0001270.0001270.0000820.0000820.000082
0.000105
130.0001340.0001340.0001340.0000860.0000860.0000860.000110
140.0001460.0001460.0001460.0000960.0000960.0000960.000121
150.0001540.0001540.000154
0.0001060.0001060.0001060.000130
160.0001630.0001630.0001630.0001140.0001140.0001140.000139
170.0001730.0001730.0001730.0001220.0001220.0001220.000148
180.0001810.0001810.000181
0.0001250.0001250.0001250.000153
190.0001900.0001900.0001900.0001230.0001230.000123
0.000157
200.0001980.0001980.0001980.0001200.0001200.000120
0.000159
210.0002110.0002110.0002110.0001170.0001170.0001170.000164
220.0002230.0002230.0002230.0001180.0001180.0001180.000171
230.0002410.0002410.0002410.0001230.0001230.0001230.000182
24
0.0002570.0002570.000257
0.0001300.0001300.0001300.000194
25
0.0002810.0002810.0002810.0001380.0001380.0001380.000210
260.0003170.0003170.000317
0.0001510.0001510.000151
0.000234
270.0003300.0003300.000330
0.0001570.0001570.000157
0.000244
280.0003400.0003400.0003400.0001660.0001660.000166
0.000253
29
0.0003560.0003560.0003560.0001750.0001750.000175
0.000266
300.0003840.0003840.0003840.0001970.0001970.0001970.000291
310.0004310.0004310.0004310.0002430.0002430.0002430.000337
320.0004860.0004860.0004860.0002770.0002770.0002770.000382
33
0.0005460.0005460.000546
0.0003030.0003030.000303
0.000425
340.0006070.0006070.000607
0.0003250.0003250.000325
0.000466
35
0.0006680.0006680.000668
0.0003450.0003450.0003450.000507
360.0007270.0007270.0007270.0003620.0003620.000362
0.000545
370.0007820.0007820.0007820.0003790.0003790.000379
0.000581
380.0008100.0008100.0008100.0003970.0003970.0003970.000604
390.0008330.0008330.0008330.0004180.0004180.0004180.000626
40
0.0008550.0008550.0008550.0004550.0004550.0004550.000655
410.0008790.0009060.0008790.0004990.0004990.0004990.000689
420.0009080.0010080.000909
0.0005500.0005500.000550
0.000730
430.0009430.0011610.0009460.0006040.0006040.000604
0.000775
440.0009840.0013640.0009910.0006640.0006640.0006640.000828
45
0.0010320.001618
0.001045
0.0007040.0007100.000704
0.000875
460.0010740.0019230.0010970.0007440.000802
0.000745
0.000921
August 5, 20131292013–32 I.R.B.

MALEMALEMALEFEMALEFEMALEFEMALEUNISEX
Age
2014 Non-
Annuitant
Table
2014
Annuitant
Table
2014
Optional
Combined
Table for
Small Plans
2014 Non-
Annuitant
Table
2014
Annuitant
Table
2014
Optional
Combined
Table for
Small Plans
2014
Table for
Distributions
Subject to
§ 417(e)(3)
470.0011190.002279
0.001156
0.0007830.0009410.0007870.000972
48
0.001165
0.0026860.0012200.0008470.001126
0.000856
0.001038
490.0012130.0031440.001292
0.0009150.001357
0.0009340.001113
50
0.001263
0.003651
0.0013710.001019
0.0016350.001050
0.001211
51
0.001312
0.003695
0.0014310.001136
0.001752
0.0011720.001302
52
0.0013630.003693
0.001523
0.0013070.001969
0.001356
0.001440
530.001459
0.0037440.001677
0.001504
0.002247
0.001574
0.001626
540.001565
0.003793
0.001852
0.001734
0.0025830.001835
0.001844
55
0.0017370.0039470.0021940.0020010.0029830.0021870.002191
560.001952
0.0041820.002660
0.0023150.003459
0.002642
0.002651
57
0.0022070.0044960.0030720.0026030.0039470.0030600.003066
580.002504
0.004914
0.003565
0.0028460.0044290.003460
0.003513
590.0027650.005334
0.0040460.0031120.0049780.0039260.003986
60
0.0030560.0058410.004625
0.003399
0.005581
0.004480
0.004553
610.003472
0.0065530.0054250.003705
0.006228
0.0051700.005298
620.0038180.0072190.0062340.0040260.006921
0.0059360.006085
630.004300
0.008145
0.007338
0.0043570.007659
0.0068400.007089
640.0046690.0090120.0082980.004694
0.008456
0.0077200.008009
650.005032
0.0099800.009402
0.005033
0.0093290.008707
0.009055
66
0.005542
0.011296
0.0109050.005367
0.0102730.0098400.010373
67
0.0058830.012505
0.012181
0.005692
0.0112870.010933
0.011557
68
0.0060250.0135360.0132650.0060050.012395
0.0120900.012678
690.006318
0.014953
0.0147060.0063030.013639
0.013365
0.014036
700.0064010.016167
0.0159130.0065830.015069
0.014781
0.015347
710.0072320.0178880.0176390.0071830.0163730.0160930.016866
72
0.008895
0.0198620.0196340.0083830.0182120.0179460.018790
730.0113890.0221230.0219280.0101830.019820
0.019592
0.020760
740.0147140.024681
0.0245260.012583
0.0219660.021776
0.023151
75
0.0188700.0281380.028018
0.015583
0.0237430.023604
0.025811
76
0.023858
0.0313620.0312840.0191830.026160
0.0260650.028675
770.029677
0.0356360.035590
0.0233840.029427
0.029365
0.032478
780.036327
0.040451
0.040430
0.028185
0.0324390.0324100.036420
790.043808
0.0459200.0459150.0335860.0358130.035805
0.040860
80
0.0521210.0521210.0521210.0395870.0395870.0395870.045854
81
0.0595840.0595840.0595840.0438150.0438150.0438150.051700
820.0679930.0679930.067993
0.0485730.0485730.0485730.058283
83
0.0757920.0757920.0757920.0539330.0539330.053933
0.064863
840.0860940.0860940.086094
0.0599830.0599830.059983
0.073039
850.0955660.0955660.0955660.0682520.0682520.068252
0.081909
86
0.1059550.1059550.105955
0.0777460.0777460.077746
0.091851
870.1198920.1198920.119892
0.0885600.0885600.088560
0.104226
88
0.1355440.1355440.135544
0.0986410.0986410.0986410.117093
890.1497930.1497930.1497930.1118680.1118680.1118680.130831
900.1686030.1686030.1686030.1236300.1236300.1236300.146117
910.1836430.1836430.183643
0.1357620.1357620.1357620.159703
920.2033610.2033610.2033610.1479800.1479800.147980
0.175671
93
0.2193750.2193750.219375
0.1634160.1634160.1634160.191396
94
0.2353640.2353640.2353640.1752730.1752730.1752730.205319
950.2564780.2564780.2564780.1865010.1865010.186501
0.221490
960.2722160.2722160.2722160.1969230.1969230.196923
0.234570
97
0.2875070.2875070.2875070.2107650.2107650.210765
0.249136
980.3087410.3087410.3087410.2192910.2192910.2192910.264016
990.3233420.3233420.323342
0.2265760.2265760.2265760.274959
1000.3373920.3373920.337392
0.2325300.2325300.232530
0.284961
101
0.3586280.3586280.358628
0.2448340.2448340.2448340.301731
102
0.3716850.3716850.3716850.2544980.2544980.254498
0.313092
2013–32 I.R.B.130August 5, 2013

MALEMALEMALEFEMALEFEMALEFEMALEUNISEX
Age
2014 Non-
Annuitant
Table
2014
Annuitant
Table
2014
Optional
Combined
Table for
Small Plans
2014 Non-
Annuitant
Table
2014
Annuitant
Table
2014
Optional
Combined
Table for
Small Plans
2014
Table for
Distributions
Subject to
§ 417(e)(3)
1030.3830400.3830400.3830400.2660440.2660440.266044
0.324542
1040.3920030.3920030.392003
0.2790550.2790550.2790550.335529
105
0.3978860.3978860.3978860.2931160.2931160.293116
0.345501
1060.4000000.4000000.4000000.3078110.3078110.307811
0.353906
1070.4000000.4000000.400000
0.3227250.3227250.322725
0.361363
1080.4000000.4000000.4000000.3374410.3374410.3374410.368721
1090.4000000.4000000.400000
0.3515440.3515440.3515440.375772
1100.4000000.4000000.4000000.3646170.3646170.3646170.382309
1110.4000000.4000000.4000000.3762460.3762460.3762460.388123
1120.4000000.4000000.400000
0.3860150.3860150.386015
0.393008
1130.4000000.4000000.400000
0.3935070.3935070.3935070.396754
1140.4000000.4000000.4000000.3983080.3983080.398308
0.399154
115
0.4000000.4000000.4000000.4000000.4000000.4000000.400000
1160.4000000.4000000.4000000.4000000.4000000.4000000.400000
1170.4000000.4000000.4000000.4000000.4000000.4000000.400000
1180.4000000.4000000.4000000.4000000.4000000.4000000.400000
1190.4000000.4000000.4000000.4000000.4000000.4000000.400000
1201.0000001.0000001.0000001.0000001.0000001.0000001.000000
Mortality tables for 2015
Valuation dates occurring during 2015
Distributions subject to § 417(e)(3)with annuity starting dates during
stability periods beginning in 2015
MALEMALEMALEFEMALEFEMALEFEMALEUNISEX
Age
2015 Non-
Annuitant
Table
2015
Annuitant
Table
2015
Optional
Combined
Table for
Small Plans
2015 Non-
Annuitant
Table
2015
Annuitant
Table
2015
Optional
Combined
Table for
Small Plans
2015
Table for
Distributions
Subject to
§ 417(e)(3)
10.0003470.0003470.0003470.0003110.0003110.0003110.000329
2
0.0002350.0002350.000235
0.0002030.0002030.0002030.000219
3
0.0001950.0001950.0001950.0001520.0001520.000152
0.000174
4
0.0001520.0001520.000152
0.0001130.0001130.0001130.000133
5
0.0001390.0001390.0001390.0001030.0001030.0001030.000121
60.0001330.0001330.0001330.0000960.0000960.000096
0.000115
70.0001280.0001280.0001280.0000900.0000900.0000900.000109
80.0001180.0001180.0001180.0000800.0000800.0000800.000099
90.0001140.0001140.0001140.0000760.0000760.000076
0.000095
100.0001160.0001160.0001160.0000770.0000770.0000770.000097
110.0001190.0001190.0001190.0000780.0000780.0000780.000099
120.0001240.0001240.0001240.0000810.0000810.0000810.000103
130.0001310.0001310.000131
0.0000850.0000850.000085
0.000108
140.0001430.0001430.0001430.0000940.0000940.0000940.000119
150.0001510.0001510.0001510.0001050.0001050.000105
0.000128
160.0001600.0001600.0001600.0001120.0001120.0001120.000136
170.0001690.0001690.0001690.0001210.0001210.000121
0.000145
180.0001780.0001780.0001780.0001230.0001230.000123
0.000151
190.0001860.0001860.0001860.0001210.0001210.000121
0.000154
200.0001940.0001940.0001940.0001180.0001180.000118
0.000156
August 5, 20131312013–32 I.R.B.

MALEMALEMALEFEMALEFEMALEFEMALEUNISEX
Age
2015 Non-
Annuitant
Table
2015
Annuitant
Table
2015
Optional
Combined
Table for
Small Plans
2015 Non-
Annuitant
Table
2015
Annuitant
Table
2015
Optional
Combined
Table for
Small Plans
2015
Table for
Distributions
Subject to
§ 417(e)(3)
210.0002070.0002070.000207
0.0001150.0001150.000115
0.000161
220.0002190.0002190.0002190.0001160.0001160.0001160.000168
230.0002370.0002370.0002370.0001210.0001210.0001210.000179
24
0.0002540.0002540.000254
0.0001280.0001280.0001280.000191
25
0.0002780.0002780.0002780.0001360.0001360.0001360.000207
260.0003160.0003160.0003160.0001490.0001490.0001490.000233
270.0003290.0003290.000329
0.0001550.0001550.000155
0.000242
280.0003380.0003380.0003380.0001640.0001640.000164
0.000251
29
0.0003540.0003540.000354
0.0001730.0001730.0001730.000264
300.0003820.0003820.000382
0.0001950.0001950.000195
0.000289
310.0004290.0004290.0004290.0002410.0002410.000241
0.000335
320.0004840.0004840.000484
0.0002750.0002750.000275
0.000380
33
0.0005430.0005430.000543
0.0003000.0003000.0003000.000422
340.0006040.0006040.0006040.0003220.0003220.0003220.000463
350.0006650.0006650.000665
0.0003410.0003410.000341
0.000503
360.0007240.0007240.000724
0.0003580.0003580.0003580.000541
370.0007780.0007780.0007780.0003740.0003740.000374
0.000576
38
0.0008050.0008050.000805
0.0003920.0003920.000392
0.000599
390.0008270.0008270.0008270.0004120.0004120.0004120.000620
400.0008480.0008480.0008480.0004490.0004490.0004490.000649
410.0008710.0008980.0008710.0004920.0004920.0004920.000682
420.0008990.0009980.000900
0.0005410.0005410.000541
0.000721
430.0009320.001147
0.0009350.0005950.0005950.0005950.000765
440.0009730.0013460.000980
0.0006540.0006540.000654
0.000817
45
0.001018
0.001595
0.0010310.0006930.0006990.0006930.000862
46
0.001059
0.0018940.0010820.0007310.0007900.0007320.000907
470.0011020.0022420.0011380.0007690.0009260.000773
0.000956
480.0011460.0026400.0012000.0008320.0011080.0008410.001021
490.0011930.0030880.0012700.000899
0.001335
0.0009170.001094
50
0.001240
0.003586
0.0013460.0010020.0016070.0010320.001189
51
0.001287
0.003625
0.0014030.0011180.001724
0.001154
0.001279
520.001335
0.0036190.0014920.0012890.0019410.001338
0.001415
53
0.0014300.0036690.0016430.0014860.002220
0.001556
0.001600
540.001534
0.003717
0.001815
0.001717
0.002557
0.0018170.001816
55
0.0017040.003872
0.0021520.0019850.002959
0.0021700.002161
56
0.0019170.0041070.0026120.0023010.0034380.0026260.002619
57
0.0021690.0044190.003020
0.002590
0.003927
0.003045
0.003033
58
0.002464
0.0048350.003507
0.0028320.0044070.003443
0.003475
59
0.002721
0.005249
0.0039810.003097
0.004953
0.0039060.003944
600.003007
0.0057480.004551
0.003382
0.0055530.0044580.004505
610.003420
0.0064550.005344
0.0036870.006197
0.0051440.005244
620.0037610.0071100.0061400.0040060.006886
0.005906
0.006023
630.0042400.0080310.007236
0.004335
0.0076210.0068060.007021
640.0046040.0088860.0081820.0046710.0084140.0076810.007932
65
0.0049610.0098400.009270
0.005008
0.0092820.0086630.008967
66
0.005469
0.0111490.010763
0.005340
0.0102210.0097900.010277
67
0.005806
0.0123430.012023
0.005664
0.0112310.010879
0.011451
68
0.005941
0.0133460.013079
0.005975
0.0123330.012030
0.012555
690.0062300.014743
0.014500
0.006271
0.013571
0.0132990.013900
70
0.0063050.0159250.0156750.006550
0.0149940.014708
0.015192
710.0071290.017620
0.017375
0.007146
0.0162750.015997
0.016686
720.008776
0.019564
0.0193400.0083370.0181020.017837
0.018589
730.0112470.021791
0.021599
0.0101240.019681
0.0194540.020527
74
0.014541
0.024311
0.0241590.012506
0.0218130.0216240.022892
750.018659
0.0277440.027626
0.0154840.023554
0.023417
0.025522
760.0236000.0309230.030847
0.0190580.0259500.0258560.028352
2013–32 I.R.B.132August 5, 2013

MALEMALEMALEFEMALEFEMALEFEMALEUNISEX
Age
2015 Non-
Annuitant
Table
2015
Annuitant
Table
2015
Optional
Combined
Table for
Small Plans
2015 Non-
Annuitant
Table
2015
Annuitant
Table
2015
Optional
Combined
Table for
Small Plans
2015
Table for
Distributions
Subject to
§ 417(e)(3)
77
0.0293650.0351730.035128
0.0232270.0292210.0291600.032144
78
0.0359530.039965
0.0399440.0279920.0322120.0321830.036064
79
0.0433650.0454150.0454100.0333530.0355630.035555
0.040483
80
0.0515990.0515990.051599
0.0393090.0393090.039309
0.045454
81
0.0590470.0590470.0590470.0435090.0435090.0435090.051278
820.0674490.0674490.0674490.0482330.0482330.048233
0.057841
83
0.0751860.0751860.0751860.0535560.0535560.053556
0.064371
84
0.0854910.0854910.0854910.0595630.0595630.0595630.072527
85
0.0948970.0948970.0948970.0678420.0678420.0678420.081370
86
0.1052130.1052130.1052130.0773570.0773570.0773570.091285
870.1191730.1191730.1191730.0882060.0882060.0882060.103690
880.1348660.1348660.1348660.0982470.0982470.098247
0.116557
890.1490440.1490440.149044
0.1115330.1115330.111533
0.130289
900.1679280.1679280.167928
0.1232590.1232590.1232590.145594
910.1829080.1829080.182908
0.1353550.1353550.1353550.159132
92
0.2027510.2027510.2027510.1475360.1475360.1475360.175144
930.2187170.2187170.2187170.1630890.1630890.1630890.190903
94
0.2346580.2346580.234658
0.1749230.1749230.1749230.204791
950.2559650.2559650.255965
0.1861280.1861280.1861280.221047
960.2716720.2716720.271672
0.1965300.1965300.196530
0.234101
970.2869320.2869320.286932
0.2105540.2105540.210554
0.248743
980.3084320.3084320.3084320.2190720.2190720.219072
0.263752
990.3230180.3230180.323018
0.2263500.2263500.226350
0.274684
100
0.3370550.3370550.337055
0.2322970.2322970.2322970.284676
101
0.3586280.3586280.358628
0.2448340.2448340.2448340.301731
102
0.3716850.3716850.3716850.2544980.2544980.254498
0.313092
1030.3830400.3830400.3830400.2660440.2660440.266044
0.324542
1040.3920030.3920030.392003
0.2790550.2790550.2790550.335529
105
0.3978860.3978860.3978860.2931160.2931160.293116
0.345501
1060.4000000.4000000.4000000.3078110.3078110.307811
0.353906
1070.4000000.4000000.400000
0.3227250.3227250.322725
0.361363
1080.4000000.4000000.4000000.3374410.3374410.3374410.368721
1090.4000000.4000000.400000
0.3515440.3515440.3515440.375772
1100.4000000.4000000.4000000.3646170.3646170.3646170.382309
1110.4000000.4000000.4000000.3762460.3762460.3762460.388123
1120.4000000.4000000.400000
0.3860150.3860150.386015
0.393008
1130.4000000.4000000.400000
0.3935070.3935070.3935070.396754
1140.4000000.4000000.4000000.3983080.3983080.398308
0.399154
115
0.4000000.4000000.4000000.4000000.4000000.4000000.400000
1160.4000000.4000000.4000000.4000000.4000000.4000000.400000
1170.4000000.4000000.4000000.4000000.4000000.4000000.400000
1180.4000000.4000000.4000000.4000000.4000000.4000000.400000
1190.4000000.4000000.4000000.4000000.4000000.4000000.400000
1201.0000001.0000001.0000001.0000001.0000001.0000001.000000
August 5, 20131332013–32 I.R.B.

2013 Section 43 Inflation
Adjustment
Notice 2013–50
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 2012
calendar year ($94.53) exceeds $28 multi-
plied by the inflation adjustment factor for
the 2012 calendar year ($28 multiplied by
1.5968 = $44.71) by $49.82, the enhanced
oil recovery credit for qualified costs paid
or incurred in 2013 is phased out com-
pletely.
Table 1 contains the GNP implicit price
deflator used for the 2013 calendar year,
as well as the previously published GNP
implicit price deflators used for the 1991
through 2012 calendar years.
Notice 2013–50 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
CalendarYearGNPImplicitPriceDeflator
1990112.9(used for 1991)
1991117.0(used for 1992)
1992120.9(used for 1993)
1993124.1(used for 1994)
1994126.0
(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)****
2004108.23
(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)******
2012
115.387
(used for 2013)
* Beginning in 1995, the GNP implicit price deflator 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 GNP implicit 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 wasrebased, 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.
2013–32 I.R.B.134August 5, 2013

Table 2 contains the inflation adjust-
ment factor and the phase-out amount
for taxable years beginning in the 2013
calendar year as well as the previously
published inflation adjustment factors and
phase-out amounts for taxable years be-
ginning in the 1991 through 2012 calendar
years.
Notice 2013–50 TABLE 2
INFLATION ADJUSTMENT FACTORS AND PHASE-OUT AMOUNTS
Calendar
Year
InflationAdjustment
Factor
Phase-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
2013
1.5968
100 percent
DRAFTING INFORMATION
The principal author of this notice
is Brian J. Americus of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice, contact
Mr. Americus at (202) 622–3110 (not a
toll-free call).
August 5, 20131352013–32 I.R.B.

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking
Information R
eporting
for Affordabl
eInsurance
Exchanges
REG–140789–
12
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Noti
ce of proposed rulemaking.
SUMMARY: Thi
s document contains pro-
posed regul
ations relating to requirements
for Afforda
ble Insurance Exchanges (Ex-
changes) to
report information relating to
the health i
nsurance premium tax credit
enacted by t
he Patient Protection and Af-
fordable C
are Act and the Health Care and
Education
Reconciliation Act of 2010.
These prop
osed regulations affect Ex-
changes th
at make qualified health plans
availabl
e to individuals and employers.
DATES: Wr
itten (including electronic)
comments
and requests for a public hear-
ing must b
e received by September 3,
2013.
ADDRESSE
S: Send submissions to:
CC:PA:LP
D:PR(REG–140789–12),
Room 520
3, Internal Revenue Ser-
vice, PO
Box 7604, Ben Franklin Sta-
tion, Wa
shington, DC 20044. Submis-
sions ma
y be hand-delivered Monday
through
Friday between the hours of 8
a.m. an
d 4 p.m. to CC:PA:LPD:PR
(REG–1
40789–12), Courier’s Desk, In-
ternal
Revenue Service, 1111 Constitution
Avenue
, NW., Washington, DC, or sent
electr
onically via the Federal eRulemak-
ing Po
rtal atwww.regulations.gov(IRS
REG–1
40789–12).
FOR FU
RTHER INFORMATION
CONTA
CT: Concerning the proposed
regul
ations, Arvind Ravichandran, (202)
622–4
920; concerning the submission of
comme
nts, and/or requests for a public
hear
ing, Oluwafunmilayo Taylor, (202)
622–
7180 (not toll-free calls).
SUPPLEMENTAR
Y INFORMATION:
Paperwork Red
uction Act
The collectio
n of information con-
tained in this
notice of proposed rule-
making is cove
red under OMB Control
Number 1545–2
232 and will be submit-
tedtotheOff
ice of Management and
Budget in acc
ordance with the Paper-
work Reducti
on Act of 1995 (44 U.S.C.
3507(d)). Co
mments on the collection
of informati
on should be sent to the
Of-
fice of Mana
gement and Budget, Attn:
Desk Office
r for the Department of the
Treasury, O
ffice of Information and Reg-
ulatory Aff
airs, Washington, DC 20503,
with copie
stotheInternal Revenue Ser-
vice,Attn
: IRS Reports Clearance Officer,
SE:W:CAR:
MP:T:T:SP, Washington, DC
20224. Com
ments on the collection of in-
formatio
n should be received by Septem-
ber 3, 201
3. Comments are specifically
requeste
d concerning:
Whether t
he proposed collection of in-
formatio
n is necessary for the proper per-
formance
of the functions of the IRS, in-
cluding w
hether the information will have
practic
al utility;
How the qu
ality, utility, and clarity of
the info
rmation to be collected may be en-
hanced;
How the b
urden of complying with the
propose
d collection of information may be
minimiz
ed, including through the appli-
cation o
f automated collection techniques
or other
forms of information technology;
and
Estimat
es of capital or start-up costs
and cos
ts of operation, maintenance, and
purcha
se of services to provide informa-
tion.
The col
lection of information in these
propos
ed regulations is in §1.36B–5 and
will be
reported on Form 1095–A. The
collec
tion of information is necessary to
compu
te the premium tax credit and to
recon
cile the amount of the premium tax
credi
t with advance credit payments made
under
section 1412 of the Patient Protec-
tion a
nd Affordable Care Act (42 U.S.C.
1808
2). The collection of information is
requ
ired to comply with the provisions of
sect
ion 36B(f)(3) of the Internal Revenue
Code
(Code). The likely respondents are
Exch
anges established under section 1311
or 1321 of the P
atient Protection and Af-
fordable Care
Act (42 U.S.C. 13031 or 42
U.S.C. 18041)
.
The estimated
total annual reporting
burden is 12,0
60 hours. The estimated
annual burden
per respondent is 670 hours
and the estima
ted number of respondent is
18.
An agency may
not conduct or sponsor,
and a person i
s not required to respond to, a
collection o
f information unless it displays
a valid contr
ol number assigned by the Of-
fice of Manag
ement and Budget.
Background
Beginning in
2014, under the Patient
Protection a
nd Affordable Care Act, Pub-
lic Law 111–1
48 (124 Stat. 119 (2010)),
and the Healt
h Care and Education Recon-
ciliation A
ct of 2010, Public Law 111–152
(124 Stat. 1
029 (2010)) (collectively, the
Affordable
Care Act), individuals and
small busin
esses will be able to purchase
private he
alth insurance through competi-
tive marke
tplaces called Exchanges (also
called Hea
lth Insurance Marketplaces).
Section 14
01 of the Affordable Care Act
enacted se
ction 36B, allowing a refundable
premium t
ax credit to help individuals and
families
afford health insurance purchased
through a
n Exchange. The section 36B
credit ma
kes health insurance affordable
by reduc
ing a taxpayer’s out-of-pocket
premium
cost.
Under se
ction 1411 of the Affordable
Care Act
(42 U.S.C. 18081), an Exchange
makes an
advance determination of credit
eligibi
lity for individuals enrolling in cov-
erage th
rough the Exchange and seeking
financ
ial assistance. Using information
availa
ble at the time of enrollment, the Ex-
change
determines (1) whether the individ-
ual mee
ts the income and other require-
ments f
or advance credit payments, and (2)
the amo
unt of the advance payments. Ad-
vance
credit payments are made monthly
under
section 1412 of the Affordable Care
Act (4
2 U.S.C. 18082) to the issuer of the
quali
fied health plan in which the individ-
ual en
rolls.
Under
section 36B(f)(1), taxpayers
who re
ceive advance credit payments
must
reconcile the amount of the advance
paym
ent with the amount of the premium
tax c
redit computed on the taxpayer’s in-
2013–32 I.R.B.136August 5, 2013

come tax return. A taxpayer who receives
excess advance payments must treat the
excess amount as additional tax under
section 36B(f)(2). Taxpayers whose credit
amount exceeds the amount of advance
payments for the taxable year may receive
the excess as additional credit. Taxpayers
who do not seek advance credit payments
also may claim the premium tax credit on
theincometaxreturn.
Section 36B(f)(3) directs Exchanges to
report to the IRS and to taxpayers certain
information required to reconcile the pre-
mium tax credit with advance credit pay-
ments and to administer the premium tax
credit generally. The required information
relates to the enrollment of a taxpayer and
taxpayer’s family in a qualified health plan
through the Exchange and includes (1) the
level of coverage, (2) identifying informa-
tion for the primary insured and each en-
rollee, (3) the amount of premiums and
advance credit payments for the coverage,
(4) information (concerning, for example,
a change in circumstances) provided to the
Exchange necessary to determine eligibil-
ity for and the amount of the credit, and (5)
other information necessary to determine
if a taxpayer has received the appropriate
advance credit payments.
Final regulations under section 36B
(TD 9590) were issued on May 23, 2012
(77 FR 30377). Section 1.36B–5 identi-
fies the information (primarily based on
the statutory language) that Exchanges
must report to the IRS and taxpayers and
indicates that the time and manner require-
ments for reporting this information would
be provided in subsequent guidance. Ac-
cordingly, these proposed regulations
amend §1.36B–5, propose detailed rules
for information reporting by Exchanges,
and describe specific information that has
been identified since publication of the
final regulations that is necessary for effi-
cient tax administration.
Explanation of Provisions
1.Information Reporting to the IRS
a.Informationrequiredtobereported
The proposed regulations require Ex-
changes to report information concerning
individuals enrolled in qualified health
plans, including the monthly amount of ad-
vance credit payments, if any. Consistent
with the statute, the proposed regulations
require Exchanges to report taxpayer iden-
tification numbers. It is anticipated that
Exchanges will report only Social Security
numbers and provide an individual’s date
of birth if a Social Security number is not
available.
b.Time and manner of reporting
The proposed regulations require Ex-
changes to report thespecified informa-
tion for each qualified health plan elec-
tronically to the IRS on an annual and,
to facilitate efficient tax administration, a
monthly basis, and specify the information
that must be reported in each category. Un-
der the proposed regulations, Exchanges
must make a monthly report to the IRS on
or before the fifteenth day of the month
following the month of coverage. The in-
formation reported monthly will be cumu-
lative, containing monthly data for each
month beginning with January through the
most recent completed month. For ex-
ample, information reported in September
will contain information for each month
from January through August. The annual
report for the calendar year must be made
on or before January 31 of the year follow-
ing the year of coverage. Information for
more than one tax household will be on the
same annual report if the individuals enroll
in one qualified health plan.
2.Statements Furnished to Taxpayers or
Responsible Adults
The proposed regulations direct Ex-
changes to furnish to each taxpayer or
responsible adult who enrolled, or whose
family member enrolled, in a qualified
health plan through the Exchange a written
statement that includes the information the
Exchange must report to the IRS annually.
Exchanges may use Form 1095–A for this
statement and must furnish the statement
on or before January 31 of the year fol-
lowing the calendar year of coverage.
Section 36B(f)(3) and the proposed
regulations require that Exchanges furnish
statements only to the individual identi-
fied to the Exchange as the taxpayer or the
responsible adult. Section 36B informa-
tion reporting may be included in the IRS
truncated taxpayer identification number
program, see proposed regulations at 78
FR 913 (January 7, 2013). Comments
are requested on whether and under what
circumstances Exchanges should furnish
a statement to another individual (who
may, for example, require the statement to
determine tax liability).
The proposed regulations permit elec-
tronic delivery of statements to the tax-
payer or responsible adult if the taxpayer
or responsible adult consents.
The IRS plans to make educational ma-
terials available to taxpayers to explain the
multiple statements taxpayers may receive
under sections 6055, 6056, and 36B.
Effective/Applicability Date
These regulations are proposed to ap-
ply for taxable years ending after Decem-
ber 31, 2013. Exchanges and taxpayers
may apply these proposed regulations un-
til publication of final regulations or other
guidance. The need for additional transi-
tion relief will be considered at that time.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866, as supplemented by Exec-
utive Order 13563. Therefore, a regula-
tory assessment is not required. It has also
been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regu-
lations, and, because the regulations do
not impose a collection of information re-
quirement on small entities, the Regula-
tory Flexibility Act (5 U.S.C. chapter 6)
does not apply. Pursuant to section 7805(f)
of the Code, this notice of proposed rule-
making has been submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on its
impact on small business.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are sub-
mitted timely to the IRS as prescribed in
this preamble under the “Addresses” head-
ing. The Treasury Department and the IRS
request comments on all aspects of the pro-
posed rules. All comments will be avail-
able atwww.regulations.govor upon re-
quest. A public hearing will be sched-
uled if requested in writing by any person
who timely submits written comments. If
August 5, 20131372013–32 I.R.B.

a public hearing is scheduled, notice of the
date, time and place for the hearing will be
published in theFederal Register.
Drafting Information
The principal authors of these pro-
posed regulations are Shareen S. Pflanz
and Stephen J. Toomey of the Office of
Associate Chief Counsel (Income Tax and
Accounting). However, other personnel
from the IRS and the Treasury Department
participated in the development of the
regulations.
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is proposed
to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding entries in nu-
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.36B–0 also issued under 26
U.S.C. 36B(g).
Section 1.36B–5 also issued under 26
U.S.C. 36B(g).
Par. 2. Section 1.36B–0 is amended by
revising the entries for §1.36B–5 to read as
follows:
§1.36B–0 Table of Contents
*****
§1.36B–5 Information reporting by
Exchanges.
(a) In general.
(b) Information required to be reported.
(1) Information reported annually.
(2) Information reported monthly.
(c) Alternative to reporting applicable
benchmark plan.
(d) Electronic filing.
(e) Annual statement to be furnished to
taxpayer.
(1) In general.
(2) Form of the statement.
(3) Time and manner for furnishing
statements.
(f) Electronic furnishing of statements.
(1) In general.
(2) Consent.
(i) In general.
(ii) Withdrawal of consent.
(iii) Change in hardware or software re-
quirements.
(iv) Examples.
(3) Required disclosures.
(i) In general.
(ii) Paper statement.
(iii) Scope and duration of consent.
(iv) Post-consent request for a paper
statement.
(v)Withdrawalofconsent.
(vi) Notice of termination.
(vii) Updating information.
(viii) Hardware and software require-
ments.
(4) Format.
(5) Notice.
(i) In general.
(ii) Undeliverable electronic address.
(iii) Corrected statement.
(6) Access period.
(7) Paper statements after withdrawal of
consent.
(g) Effective/applicability date.
Par. 3. Section 1.36B–5 is revised to
read as follows:
§1.36B–5 Information reporting by
Exchanges.
(a)In general. An Exchange must re-
port to the Internal Revenue Service (IRS)
information required by section 36B(f)(3)
and this section relating to the qualified
health plans in which individuals enroll.
(b)Information required to be re-
ported—(1)Information reported annu-
ally. An Exchange must report to the
Internal Revenue Service on or before Jan-
uary 31 of the year following the calendar
year of coverage the following information
for each qualified health plan in which an
individual or a member of the individual’s
family enrolls through the Exchange—
(i) The name, address, and taxpayer
identification number (TIN), or date of
birth if a TIN is not available, of an in-
dividual enrolling, or enrolling a family
member, in coverage and approved for ad-
vance credit payments (taxpayer), and the
name and TIN of the individual’s spouse,
if applicable;
(ii) The name, address, and TIN, or date
of birth if a TIN is not available, of an adult
enrolling in coverage or enrolling one or
more members of a family in coverage
and either not requesting or not approved
for advance credit payments (responsible
adult);
(iii) The name and TIN, or date of birth
if a TIN is not available, and dates of cov-
erage for each individual covered under
the plan;
(iv) The monthly premium for the ap-
plicable benchmark plan used to compute
advance credit payments;
(v) For a responsible adult, the pre-
mium for the applicable benchmark plan
that would apply to the individuals en-
rolled in a qualified health plan;
(vi) The monthly premium for the plan
or plans in which a taxpayer, responsi-
ble adult, or family member enrolls, with-
out reduction for advance credit payments,
including the amount of premiums for a
stand-alone dental plan allocated to pedi-
atric dental benefits;
(vii) The amount of the advance credit
payments made on a taxpayer’s behalf
each month;
(viii) The name of the qualified health
plan issuer and the issuer’s employer iden-
tification number (EIN);
(ix) The qualified health plan policy
number;
(x) The Exchange’s unique identifier;
and
(xi) Any other information specified by
forms or instructions or in published guid-
ance, see §601.601(d) of this chapter.
(2)Information reported monthly.For
each calendar month, an Exchange must
report to the Internal Revenue Service, on
or before the fifteenth day following each
month of coverage, the information de-
scribed in paragraph (b)(1) of this section
and the following information—
(i) Whether the individuals enrolled in
the qualified health plan are the taxpayer’s
dependents;
(ii) Information on employment (to the
extent this information is provided to the
Exchange) consisting of—
(A) The name, address, and EIN of
each employer of the taxpayer, taxpayer’s
spouse, and each individual covered by the
qualified health plan or plans; and
(B) An indication of whether an em-
ployer offered minimum essential cov-
erage, and, if so, the amount of the
employee’s required contribution for
self-only coverage and the Exchange’s
determination of whether the employer
coverage was affordable and provided
minimum value;
2013–32 I.R.B.138August 5, 2013

(iii) The unique number that identifies
the specific account of the taxpayer or re-
sponsible individual to enable data associ-
ation from month to month;
(iv) The name and TIN, or date of birth
if a TIN is not available, of each individ-
ual for whom the Exchange has granted
an exemption from coverage under section
5000A(e) and the related regulations, the
months for which the exemption is in ef-
fect, and the exemption certificate number;
and
(v) Any other information specified by
forms or instructions or in published guid-
ance, see §601.601(d) of this chapter.
(c)Alternative to reporting applicable
benchmark plan. An Exchange satisfies
the requirement in paragraph (b)(1)(v) of
this section if, on or before January 1 of
each year after 2014, the Exchange pro-
vides a reasonable method that any indi-
vidual may use to determine the premium
for the applicable benchmark plan that ap-
plies to the individual’s coverage family
for the prior calendar year for purposes of
determining the individual’s premium tax
credit.
(d)Electronic filing. An Exchange
must submit the reports to the IRS required
under this section in electronic format.
The information reported monthly will be
submitted to the IRS through the Depart-
ment of Health and Human Services.
(e)Annual statement to be furnished to
taxpayer—(1)In general. An Exchange
must furnish to each taxpayer or respon-
sible adult who enrolled, or whose family
member enrolled, in a qualified health plan
through the Exchange a written statement
showing—
(i) The name and address of the tax-
payer or responsible adult; and
(ii) The information described in para-
graph (b)(1) of this section for the previous
calendar year.
(2)Form of the statement. A statement
required under this paragraph (e) may be
made by furnishing to the taxpayer or re-
sponsible adult identified in the annual re-
port a copy of the report filed with the
IRS or on a substitute statement. A sub-
stitute statement must include the informa-
tion required to be shown on the report
filed with the IRS and must comply with
requirements in published guidance (see
§601.601(d)(2) of this chapter) relating to
substitute statements. An IRS truncated
taxpayer identifying number may be used
as the identifying number for an individ-
ual in lieu of the identifying number ap-
pearing on the corresponding information
report filed with the IRS.
(3)Time and manner for furnishing
statements. An Exchange must furnish the
statements required under this paragraph
(e) on or before January 31 of the year
following the calendar year of coverage.
If mailed, the statement must be sent to
the taxpayer’s or responsible person’s last
known permanent address or, if no perma-
nent address is known, to the taxpayer’s or
responsible person’s temporary address.
An Exchange may furnish the statement
electronically in accordance with para-
graph (f) of this section.
(f)Electronic furnishing of state-
ments—(1)In general. An Exchange
required to furnish a statement under para-
graph (e) of this section may furnish the
statement to the taxpayer or responsible
adult (recipient) inan electronic format
in lieu of a paper format. An Exchange
that meets the requirements of paragraphs
(f)(2) through (f)(7) of this section is
treated as furnishing the statement in a
timely manner.
(2)Consent—(i)In general. A recip-
ient must have affirmatively consented
to receive the statement in an electronic
format. The consent may be made elec-
tronically in any manner that reasonably
demonstrates that the recipient is able
to access the statement in the electronic
format in which it will be furnished. Al-
ternatively, the consent may be made in
a paper document that is confirmed elec-
tronically.
(ii)Withdrawal of consent.AnEx-
change may provide that the withdrawal of
consent takes effect either on the date the
Exchange receives it or on another date no
more than 60 days later. The Exchange
may provide that a request by the recip-
ient for a paper statement will be treated
as a withdrawal of consent to receive the
statement in an electronic format. If the
Exchange furnishes a statement after the
withdrawal of consent takes effect, the re-
cipient has not consented to receive the
statement in electronic format.
(iii)Change in hardware or software re-
quirements. If a change in the hardware
or software required to access the state-
ment creates a material risk that a recipi-
ent will not be able to access a statement,
an Exchange must, prior to changing the
hardware or software,notify the recipient.
The notice must describe the revised hard-
ware and software required to access the
statement and inform the recipient that a
new consent to receive the statement in
the revised electronic format must be pro-
vided to the Exchange. After implement-
ing the revised hardware and software, the
Exchange must obtain a new consent or
confirmation of consent from the recipient
to receive the statement electronically.
(iv)Examples. The following examples
illustrate the rules of this paragraph (f)(2):
Example 1. Furnisher F sends Recipient R a letter
stating that R may consent to receive the statement re-
quired under section 36B electronically on a web site
instead of in a paper format. The letter contains in-
structions explaining how to consent to receive the
statement electronically by accessing the web site,
downloading and completing the consent document,
and e-mailing the completed consent to F. The con-
sent document posted on the web site uses the same
electronic format that F will use for the electronically
furnished statement. R reads the instructions and sub-
mits the consent in the manner provided in the in-
structions. R has consented to receive the statement
required under section 36B electronically in the man-
ner described in paragraph (f)(2)(i) of this section.
Example 2. Furnisher F sends Recipient R an
e-mail stating that R may consent to receive the state-
ment required under section 36B electronically in-
stead of in a paper format. The e-mail contains an
attachment instructing R how to consent to receive
the statement required under section 36B electroni-
cally. The e-mail attachment uses the same electronic
format that F will use for the electronically furnished
statement. R opens the attachment, reads the instruc-
tions, and submits the consent in the manner provided
in the instructions. R has consented to receive the
statement required under section 36B electronically
in the manner described in paragraph (f)(2)(i) of this
section.
Example 3. Furnisher F posts a notice on its web
site stating that Recipient R may receive the statement
required under section 36B electronically instead of
in a paper format. The web site contains instructions
on how R may access a secure web page and consent
to receive the statements electronically. R accesses
the secure web page and follows the instructions for
giving consent. R has consented to receive the state-
ment required under section 36B electronically in the
manner described in paragraph (f)(2)(i) of this sec-
tion.
(3)Required disclosures—(i)In gen-
eral. Prior to, or at the time of, an indi-
vidual’s consent, an Exchange must pro-
vide to the individual a clear and conspic-
uous disclosure statement containing each
of the disclosures described in paragraphs
(f)(3)(ii) through (viii) of this section.
(ii)Paper statement. An Exchange
must inform the recipient that the state-
ment will be furnished on paper if the
August 5, 20131392013–32 I.R.B.

recipient does not consent to receive it
electronically.
(iii)Scope and duration of consent.An
Exchange must inform the recipient of the
scope and duration of the consent. For ex-
ample, the Exchange must inform the re-
cipient whether the consent applies to each
statement required to be furnished after the
consent is given until it is withdrawn or
only to the first statement required to be
furnished following the consent.
(iv)Post-consent request for a paper
statement. An Exchange must inform the
recipient of any procedure for obtaining a
paper copy of the recipient’s statement af-
ter giving the consent described in para-
graph (f)(2)(i) of this section and whether
a request for a paper statement will be
treated as a withdrawal of consent.
(v)Withdrawal of consent.AnEx-
change must informthe recipient that—
(A) The recipient may withdraw con-
sent by writing (electronically or on pa-
per) to the person or department whose
name, mailing address,telephone number,
and e-mail address is provided in the dis-
closure statement;
(B) An Exchange will confirm the with-
drawal and the date on which it takes effect
in writing (either electronically or on pa-
per); and
(C) A withdrawal of consent does not
apply to a statement that was furnished
electronically in the manner described in
this paragraph (f) before the date on which
the withdrawal of consent takes effect.
(vi)Notice of termination.AnEx-
change must informthe recipient of the
conditions under which the Exchange will
cease furnishing statements electronically
to the recipient.
(vii)Updating information.AnEx-
change must informthe recipient of the
procedures for updating the information
needed to contact the recipient and no-
tify the recipient of any change in the Ex-
change’s contact information.
(viii)Hardware and software require-
ments. An Exchange must provide the re-
cipient with a description of the hardware
and software required to access, print, and
retain the statement, and the date when the
statement will no longer be available on
the web site. The Exchange must advise
the recipient that the statement may be re-
quired to be printed and attached to a Fed-
eral, State, or local income tax return.
(4)Format. The electronic version of
the statement must contain all required
information and comply with applicable
published guidance (see §601.601(d) of
this chapter) relating to substitute state-
ments to recipients.
(5)Notice—(i)In general. If a state-
ment is furnished on a web site, the Ex-
change must notify the recipient. The no-
tice may be delivered by mail, electronic
mail, or in person. The notice must pro-
vide instructions on how to access and
print the statement and include the fol-
lowing statement in capital letters, “IM-
PORTANT TAX RETURN DOCUMENT
AVAILABLE.” If the notice is provided by
electronic mail, thisstatement must be on
the subject line of the electronic mail.
(ii)Undeliverable electronic address.
If an electronic notice described in para-
graph (f)(5)(i) of this section is returned
as undeliverable, and the Exchange cannot
obtain the correct electronic address from
the Exchange’s records or from the recipi-
ent, the Exchange must furnish the notice
by mail or in person within 30 days after
the electronic notice is returned.
(iii)Corrected statement. An Exchange
must furnish a corrected statement to
the recipient electronically if the original
statement was furnished electronically.
If the original statement was furnished
through a web site posting, the Exchange
must notify the recipient that it has posted
the corrected statement on the web site in
the manner described inparagraph (f)(5)(i)
of this section within 30 days of the post-
ing. The corrected statement or the notice
must be furnished by mail or in person
if—
(A)Anelectronicnoticeofthewebsite
posting of an original statement or the cor-
rected statement was returned as undeliv-
erable; and
(B) The recipient has not provided a
new e-mail address.
(6)Access period. Statements fur-
nished on a web site must be retained on
the web site through October 15 of the
year following the calendar year to which
the statements relate (or the first business
day after October 15, if October 15 falls
on a Saturday, Sunday, or legal holiday).
The furnisher must maintain access to
corrected statements that are posted on the
web site through October 15 of the year
following the calendar year to which the
statements relate (or the first business day
after October 15, if October 15 falls on a
Saturday, Sunday, or legal holiday) or the
date 90 days after the corrected forms are
posted, whichever is later.
(7)Paper statements after withdrawal
of consent. An Exchange must furnish a
paper statement if a recipient withdraws
consent to receive a statement electroni-
cally and the withdrawal takes effect be-
fore the statement is furnished. A paper
statement furnished under this paragraph
(f)(7) after the statement due date is timely
iffurnishedwithin30daysafterthedate
the Exchange receives the withdrawal of
consent.
(g)Effective/applicability date.This
section applies for taxable years ending af-
ter December 31, 2013.
Beth Tucker,
Deputy Commissioner for
Operations Support.
(Filed by the Office of the Federal Register on June 28, 2013,
4:15 p.m., and published in the issue of the Federal Register
for July 2, 2013, 78 F.R. 39644)
2013–32 I.R.B.140August 5, 2013

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.
August 5, 2013i2013–32 I.R.B.

Numerical Finding List
1
Bulletins 2013–27 through 2013–32
Announcements:
2013-35, 2013-27 I.R.B.46
Notices:
2013-41, 2013-29 I.R.B.60
2013-42, 2013-29 I.R.B.61
2013-43, 2013-31 I.R.B.113
2013-44, 2013-29 I.R.B.62
2013-45, 2013-31 I.R.B.116
2013-46, 2013-31 I.R.B.117
2013-47, 2013-31 I.R.B.120
2013-48, 2013-31 I.R.B.120
2013-49, 2013-32 I.R.B.127
2013-50, 2013-32 I.R.B.134
Proposed Regulations:
REG-140789-12, 2013-32 I.R.B.136
Revenue Procedures:
2013-28, 2013-27 I.R.B.28
2013-32, 2013-28 I.R.B.55
Revenue Rulings:
2013-13, 2013-32 I.R.B.124
2013-15, 2013-28 I.R.B.47
Treasury Decisions:
9620, 2013-27 I.R.B.1
9621, 2013-28 I.R.B.49
9622, 2013-30 I.R.B.64
9623, 2013-30 I.R.B.73
9624, 2013-31 I.R.B.86
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin
2013–26, dated June 24, 2013.
2013–32 I.R.B.iiAugust 5, 2013

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–27 through 2013–32
Notices:
2013-39
Amplified by
Notice 2013-47, 2013-31 I.R.B.
120
2013-40
Amplified by
Notice 2013-47, 2013-31 I.R.B.
120
Revenue Procedures:
81-60
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
83-59
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
86-42
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
90-52
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
96-30
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2003-48
Obsoleted in part and superseded in part by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2009-25
Pilot program discontinued by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2012-25
Obsoleted in part by
Rev. Proc. 2013-28, 2013-27 I.R.B.
28
2013-1
Amplified and modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2013-3
Amplified and modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
Treasury Decisions:
9612
Corrected by
Ann. 2013-35, 2013-27 I.R.B.
46
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013.
August 5, 2013iii2013–32 I.R.B.

Internal Revenue Service
W
ashington,DC20224
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INTERNAL REVENUE BULLETIN
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