Internal Revenue Bulletin 2013-34 (PDF rendition): IRS Notices

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

Bulletin No. 201
3-34
August 19, 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
T.D. 9625, page 147.
Final regulations provide rules regarding the exception to the
deduction limitations on certain expenditures paid or incurred
under reimbursement or other expense allowance arrange-
ments under section 274 of the Code.
T.D. 9626, page 149.
These final regulations under section 337(d) of the Code pro-
vide guidance concerning certain transfers of property from a
C corporation to a Regulated Investment Company or a Real
Estate Investment Trust.
EMPLOYEE PLANS
Announcement 2013–37, page 155.
This announcement extends the deadline to submit on-cycle
applications for opinion and advisory letters for sponsors and
practitioners maintaining defined benefit mass submitter lead
plans for the plans’ second six-year remedial amendment cycle.
Rev. Procs. 2007–44 and 2011–49 are modified.
EXCISE TAX
Notice 2013–51, page 153.
This notice provides guidance on the branded prescription drug
fee for the 2014 fee year related to (1) the submission of Form
8947,Report of Branded Prescription Drug Information,(2)the
time and manner for notifying covered entities of their prelim-
inary fee calculation, (3) the time and manner for submitting
error reports for the dispute resolution process, and (4) the
time for notifying covered entities of their final fee calculation.
Notice 2012–74 is obsoleted.
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 19, 20132013–34 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 274.—
Disallowance
of Certain Ent
ertainment,
etc., Expenses
TD 9625
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Reimbursed Entertainment
Expenses
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains fi-
nal regulations regarding the exception to
the deduction limitations on certain expen-
ditures paid or incurred under reimburse-
ment or other expense allowance arrange-
ments. These final regulations affect tax-
payers that pay or receive advances, al-
lowances, or reimbursements under reim-
bursement or other expense allowance ar-
rangements and clarify the rules for these
arrangements.
DATES:Effective Date:These regulations
are effective on August 1, 2013.
Applicability Date:For date of applica-
bility, see §1.274–2(f)(2)(iv)(F).
FOR FURTHER INFORMATION
CONTACT: Patrick Clinton, (202)
622–4930 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This doc
ument contains final regula-
tions th
at amend the Income Tax Reg-
ulation
s (26 CFR part 1) under section
274(e)
(3) of the Internal Revenue Code
(Code)
. The regulations provide rules for
the exc
eption under section 274(e)(3) to
the sec
tion 274(a) and (n) deduction lim-
itatio
ns for certain expenditures paid or
incur
red under reimbursement or other ex-
pense
allowance arrangements. The final
regulations c
larify the definition of reim-
bursement or o
ther expense allowance ar-
rangements fo
r purposes of section 274(a)
and (n) and ho
w the deduction limitations
apply to reim
bursement arrangements be-
tween more th
an two parties.
On August 1, 2
012, a notice of pro-
posed rulema
king (REG–137589–07) was
published in
theFederal Register(77 FR
45520). One
written comment responding
to the notic
e of proposed rulemaking was
received. N
o public hearing was requested
or held. Aft
er consideration of the com-
ment, the r
egulations are adopted without
substanti
ve change by this Treasury deci-
sion.
Summary of Comment and Explanation
of Provisions
1.Reimbursement Arrangements of
Payors
The propos
ed regulations would amend
regulati
ons that apply the section 274(e)(3)
exceptio
n to reimbursement and other ex-
pense all
owance arrangements involving
employee
s. The proposed regulations clar-
ify that
these rules apply to reimbursement
or other
expense allowance arrangements
between
payors and employees. Under the
propose
d regulations, a payor may be an
employe
r, an agent of the employer, or a
third p
arty.
The comm
entator suggested that the
change
in terminology is confusing and
that th
e final regulations either should re-
tain th
e term employer or further define
the ter
ms.
The reg
ulations use the termpayor
to clar
ifythattherulesrelatingtoreim-
bursem
ent and other expense allowance
arran
gements with employees do not re-
quire
determining who is the common law
emplo
yer. The rules require, instead, iden-
tifyi
ng the party that bears the expense.
Thus,
the regulations are not limited to
empl
oyers but encompass any party that
reim
burses an employee’s expenses un-
der a
reimbursement or other expense
allo
wance arrangement. Accordingly, the
fina
l regulations do not adopt this com-
ment
.
2.Arrangemen
ts Between Independent
Contractors a
nd Clients
The proposed r
egulations provide that,
for a reimburs
ement or other expense al-
lowance arra
ngement involving persons
that are not e
mployees (an independent
contractor a
nd a client or customer), the
parties may e
xpressly identify the party
subject to t
he section 274(a) and (n) limi-
tations. If
the agreement does not specify
aparty,the
limitations apply to the client
if the indep
endent contractor accounts to
the client
for (substantiates) the expenses,
and to the i
ndependent contractor if the
independe
nt contractor does not account
to the clie
nt. The commentator suggested
that the la
nguage of section 274(e)(3) does
not permi
t the parties to choose which
party is s
ubject to the limitations.
Section 2
74(e)(3)(B) provides that tax-
payers ma
y identify the party subject to the
section 2
74(a) and (n) limitations by ac-
counting
or not accounting for expenses
and there
fore contemplatesidentification
of the pa
rty subject to the limitations. The
final re
gulations provide a rule that gives
taxpaye
rs the flexibility contemplated un-
der sect
ion 274(e) and is easily administra-
ble for t
he IRS. Accordingly, the final reg-
ulatio
ns do not adopt this comment.
Effect
ive/Applicability Date
These r
egulations apply to expenses
paid or
incurred in taxable years begin-
ning af
ter August 1, 2013. Taxpayers may
apply t
hese regulations to expenses paid
or inc
urredintaxableyears beginning on
or bef
ore August 1, 2013 for which the
perio
d of limitation on credit or refund
under
section 6511 has not expired.
Speci
al Analyses
It has
been determined that this Trea-
sury d
ecision is not a significant regula-
tory a
ction as defined in Executive Order
1286
6, as supplemented by Executive Or-
der 1
3563. Therefore, a regulatory assess-
ment
is not required. It also has been deter-
mine
d that section 553(b) of the Adminis-
trat
ive Procedure Act (5 U.S.C. chapter 5)
does
not apply to these regulations and, be-
2013–34 I.R.B.147August 19, 2013

cause the regulations do not impose a col-
lection of information on small entities, the
Regulatory Flexibility Act (5 U.S.C. chap-
ter 6) does not apply. Pursuant to section
7805(f) of the Code, the notice of proposed
rulemaking that preceded these final regu-
lations was submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on its impact on
small business, and no comments were re-
ceived.
Drafting Information
The principal authorof these final reg-
ulations is Patrick Clinton of the Office of
Associate Chief Counsel (Income Tax &
Accounting). However, other personnel
from the IRS and Treasury Department
participated in their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding an entry in
numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.274–2 also issued under 26
U.S.C. 274(o). * * *
Par. 2. Section 1.274–2 is amended
by revising paragraph (f)(2)(iv) to read as
follows:
§1.274–2 Disallowance of deductions
for certain expenses for entertainment,
amusement, recreation, or travel.
*****
(f) * * *
(2) * * *
(iv)Reimbursed entertainment, food,
or beverage expenses—(A)Introduction.
In the case of any expenditure for enter-
tainment, amusement, recreation, food, or
beverages made by one person in perform-
ing services for another person (whether
or not the other person is an employer)
under a reimbursement or other expense
allowance arrangement, the limitations on
deductions in paragraphs (a) through (e)
of this section and section 274(n)(1) apply
either to the person who makes the expen-
diture or to the person who actually bears
the expense, but not to both. If an expen-
diture of a type described in this paragraph
(f)(2)(iv) properly constitutes a dividend
paid to a shareholder, unreasonable com-
pensation paid to an employee, a personal
expense, or other nondeductible expense,
nothing in this exception prevents disal-
lowance of the expenditure to the taxpayer
under other provisions of the Code.
(B)Reimbursement arrangements in-
volving employees. In the case of an
employee’s expenditure for entertainment,
amusement, recreation, food, or beverages
in performing services as an employee
under a reimbursement or other expense
allowance arrangement with a payor (the
employer, its agent, or a third party), the
limitations on deductions in paragraphs
(a) through (e) of this section and section
274(n)(1) apply—
(1) To the employee to the extent the
employer treats the reimbursement or
other payment of the expense on the em-
ployer’s income tax return as originally
filed as compensation paid to the em-
ployee and as wages to the employee for
purposes of withholding under chapter 24
(relating to collection of income tax at
source on wages); or
(2) To the payor to the extent the re-
imbursement or other payment of the
expense is not treated as compensation and
wages paid to the employee in the man-
ner provided in paragraph (f)(2)(iv)(B)(1)
of this section (however, see paragraph
(f)(2)(iv)(C) of this section if the payor
receives a payment from a third party
that may be treated as a reimbursement
arrangement under that paragraph).
(C)Reimbursement arrangements in-
volving persons that are not employees.In
the case of an expense for entertainment,
amusement, recreation, food, or beverages
of a person who is not an employee (re-
ferred to as an independent contractor) in
performing services for another person (a
client or customer) under a reimbursement
or other expense allowance arrangement
with the person, the limitations on deduc-
tions in paragraphs (a) through (e) of this
section and section 274(n)(1) apply to the
party expressly identified in an agreement
between the parties as subject to the limita-
tions. If an agreement between the parties
does not expressly identify the party sub-
ject to the limitations, the limitations ap-
ply—
(1) To the independent contractor
(which may be a payor described in para-
graph (f)(2)(iv)(B) of this section) to the
extent the independent contractor does not
account to the client or customer within
the meaning of section 274(d) and the
associated regulations; or
(2) To the client or customer if the in-
dependent contractor accounts to the client
or customer within the meaning of section
274(d) and the associated regulations. See
also §1.274–5.
(D)Reimbursement or other expense
allowance arrangement.Thetermreim-
bursement or other expense allowance ar-
rangementmeans—
(1) For purposes of paragraph
(f)(2)(iv)(B) of this section, an arrange-
ment under which an employee receives
an advance, allowance, or reimbursement
from a payor (the employer, its agent, or
a third party) for expenses the employee
pays or incurs; and
(2) For purposes of paragraph
(f)(2)(iv)(C) of this section, an arrange-
ment under which an independent con-
tractor receives an advance, allowance, or
reimbursement from a client or customer
for expenses the independent contractor
pays or incurs if either—
(a) A written agreement between the
parties expressly states that the client or
customer will reimburse the independent
contractor for expenses that are subject to
the limitations on deductions in paragraphs
(a) through (e) of this section and section
274(n)(1); or
(b
) A written agreement between the
parties expressly identifies the party sub-
ject to the limitations.
(E)Examples. The following examples
illustrate the application of this paragraph
(f)(2)(iv).
Example 1. (i) Y, an employee, performs services
underanarrangementinwhichL,anemployeeleas-
ing company, pays Y a per diem allowance of $10x
for each day that Y performsservices for L’s client,
C, while traveling away from home. The per diem
allowance is a reimbursement of travel expenses for
food and beverages that Y pays in performing ser-
vices as an employee. L enters into a written agree-
ment with C under which C agrees to reimburse L
for any substantiated reimbursements for travel ex-
penses, including meals, that L pays to Y. The agree-
ment does not expressly identify the party that is sub-
ject to the deduction limitations. Y performs ser-
vices for C while traveling away from home for 10
August 19, 20131482013–34 I.R.B.

days and provides L with substantiation that satisfies
the requirements of section 274(d) of $100x of meal
expenses incurred by Y while traveling away from
home. L pays Y $100x to reimburse those expenses
pursuant to their arrangement. L delivers a copy of
Y’s substantiation to C. C pays L $300x, which in-
cludes $200x compensation for services and $100x as
reimbursement of L’s payment of Y’s travel expenses
for meals. Neither L nor C treats the $100x paid to Y
as compensation or wages.
(ii) Under paragraph (f)(2)(iv)(D)(
1)ofthissec-
tion, Y and L have established a reimbursement or
other expense allowance arrangement for purposes of
paragraph (f)(2)(iv)(B) of this section. Because the
reimbursement payment is not treated as compensa-
tion and wages paid to Y, under section 274(e)(3)(A)
and paragraph (f)(2)(iv)(B)(
1)ofthissection,Yisnot
subject to the section 274 deduction limitations. In-
stead, under paragraph (f)(2)(iv)(B)(
2)ofthissection,
L, the payor, is subject to the section 274 deduction
limitations unless L can meet the requirements of sec-
tion 274(e)(3)(B) and paragraph (f)(2)(iv)(C) of this
section.
(iii) Because the agreement between L and C ex-
pressly states that C will reimburse L for substanti-
ated reimbursements for travel expenses that L pays
to Y, under paragraph (f)(2)(iv)(D)(
2)(a)ofthissec-
tion, L and C have established a reimbursement or
other expense allowance arrangement for purposes of
paragraph (f)(2)(iv)(C) of this section. L accounts to
C for C’s reimbursement in the manner required by
section 274(d) by delivering to C a copy of the sub-
stantiation L received from Y. Therefore, under sec-
tion 274(e)(3)(B) and paragraph (f)(2)(iv)(C)(
2)of
this section, C and not L is subject to the section 274
deduction limitations.
Example 2. (i) The facts are the same as inExam-
ple 1
except that, under the arrangements between Y
and L and between L and C, Y provides the substan-
tiation of the expenses directly to C, and C pays the
per diem directly to Y.
(ii) Under paragraph (f)(2)(iv)(D)(
1)ofthissec-
tion, Y and C have established a reimbursement or
other expense allowance arrangement for purposes
of paragraph (f)(2)(iv)(C) of this section. Because
Y substantiates directly to C and the reimbursement
payment was not treated as compensation and wages
paid to Y, under section 274(e)(3)(A) and paragraph
(f)(2)(iv)(C)(
1) of this section Y is not subject to the
section 274 deduction limitations. Under paragraph
(f)(2)(iv)(C)(
2) of this section, C, the payor, is sub-
ject to the section 274 deduction limitations.
Example 3. (i) The facts are the same as inEx-
ample 1
, except that the written agreement between
L and C expressly provides that the limitations of this
section will apply to C.
(ii) Under paragraph (f)(2)(iv)(D)(
2)(b)ofthis
section, L and C have established a reimbursement or
other expense allowance arrangement for purposes
of paragraph (f)(2)(iv)(C) of this section. Because
the agreement provides that the 274 deduction lim-
itations apply to C, under section 274(e)(3)(B) and
paragraph (f)(2)(iv)(C) of this section, C and not L is
subject to the section 274 deduction limitations.
Example 4. (i) The facts are the same as in
Ex-
ample 1
, except that the agreement between L and C
does not provide that C will reimburse L for travel
expenses.
(ii) The arrangement between L and C is not a
reimbursement or other expense allowance arrange-
ment within the meaning of section 274(e)(3)(B) and
paragraph (f)(2)(iv)(D)(
2) of this section. Therefore,
even though L accounts to C for the expenses, L is
subject to the section 274 deduction limitations.
(F)Effective/applicability date.This
paragraph (f)(2)(iv) applies to expenses
paid or incurred in taxable years beginning
after August 1, 2013.
*****
Par. 3. Section 1.274–8 is revised to
read as follows:
§1.274–8 Effective/applicability date.
Except as provided in §§1.274–2(a),
1.274–2(e), 1.274–2(f)(2)(iv)(F), and
1.274–5, §§1.274–1 through 1.274–7 ap-
ply to taxable years ending after December
31, 1962.
Beth Tucker,
Deputy Commissioner for
Operations Support.
Approved June 25, 2013
Mark J. Mazur,
Assistant Secretary of the
Treasury (Tax Policy).
(Filed by the Office of the Federal Register on July 31, 2013,
8:45 a.m., and published in the issue of the Federal Register
for August 1, 2013, 78 F.R. 46502)
Section 337.—Nonrecogni-
tion for Property Distributed
to Parent in Complete Liq-
uidation of Subsidiary
TD 9626
DEPART
MENT OF THE
TREASU
RY
Intern
al Revenue Service
26 CFR
Part 1
Certain Transfers of Property
to Regulated Investment
Companies [RICs] and Real
Estate Investment Trusts
[REITs]
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains fi-
nal regulations under section 337(d) of the
Internal Revenue Code. These regulations
provide guidance concerning certain trans-
fers of property from a C corporation to
a Regulated Investment Company (RIC)
or a Real Estate Investment Trust (REIT).
These regulations will affect the parties to
such transactions.
DATES:Effective Date:These regulations
are effective on August 2, 2013.
Applicability Date:For date of applica-
bility, see §1.337(d)–7(f)(2).
FOR FURTHER INFORMATION
CONTACT: Grid Glyer (202) 622–7530
or Maury Passman (202) 622–7750
with respect to the corporate issues, and
David H. Kirk (202) 622–3060 with
respect to the partnership issues (not
toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains an amendment
to 26 CFR Part 1. On April 16, 2012, a no-
tice of proposed rulemaking (NPRM) con-
cerning certain transfers of property (con-
verted property) from a C corporation to
a RIC or a REIT was published in the
Federal Register(REG–139991–08; 77
FR 22516). One written comment was
received and no public hearing was re-
quested or held. This Treasury Decision
adopts the proposed regulations with the
changes discussed in this preamble.
Explanation and Summary of
Comments
Section1.337(d)–7generally provides
(in paragraphs (a) and (b)(1)) that if prop-
erty of a C corporation (the C corporation
transferor) becomes the property of a RIC
or REIT by the qualification of that C cor-
poration as a RIC or REIT or by the trans-
fer of assets of that C corporation to a RIC
or REIT (a conversion transaction), then
the RIC or REIT will be subject to tax on
the net built-in gain in the converted prop-
erty under the rules of section 1374 and the
underlying regulations (the general rule).
The general rule, however, does not ap-
ply if the C corporation transferor makes
a “deemed sale election” provided for un-
der §1.337(d)–7(c) to recognize gain and
2013–34 I.R.B.149August 19, 2013

loss as if it sold the converted property to
an unrelated person at fair market value.
The NPRM proposed to amend
§1.337(d)–7 to provide two exceptions
from the general rule. First, the general
rule would not apply to the extent that the
conversion transaction qualifies for non-
recognition treatment under either section
1031 (relating to like-kind exchanges)
or section 1033 (relating to involuntary
conversions) (the exchange exception).
Second, a conversiontransaction in which
the C corporation that owned the con-
verted property is a tax-exempt entity
(within the meaning of §1.337(d)–4(c)(2))
would not be subject to the general rule if
the tax-exempt entity would not be subject
to tax (such as under the unrelated busi-
ness income tax rules of section 511) on
gain resulting from a deemed sale election
hadsuchanelectionbeenmadeunder
§1.337(d)–7(c)(5) (the tax-exempt excep-
tion).
The commenter requested clarification
regarding the application of the tax-ex-
empt exception. The IRS and Treasury
Department recognize that it may be un-
clear whether the tax-exempt exception
applies to a transaction in which some
of the gain resulting from a deemed sale
election would be subject to tax if such
an election were made, and some of the
resulting gain would not be subject to tax.
For example, if a tax-exempt entity trans-
ferred an asset to a REIT and a portion
of the gain resulting from a deemed sale
election would be subject to tax under
section 511, it may be unclear whether
the tax-exempt exception applies to the
portion of the gain that would be exempt
from tax under section 501(a). Under one
interpretation of the proposed regulations,
the tax-exempt exception would not apply
to any of the gain, including the portion
that would be exempt from tax under sec-
tion 501(a), because a portion of the gain
would be subject to tax under section 511.
As noted in the NPRM, the IRS and
Treasury Department believe that the gen-
eral rule should not apply to transfers by
tax-exempt entities to the extent that re-
sulting gain (if any) would not be subject
to tax under some Code provision were a
deemed sale electionmade. Accordingly,
the final regulations clarify that the general
rule does not apply to a conversion transac-
tion in which the C corporation that owned
the converted property is a tax-exempt en-
tity to the extent that gain would not be
subject to tax under Title 26 of the United
States Code if a deemed sale election were
made. Thus, in the example described,
the tax-exempt exception applies to the ex-
tent the deemed sale gain with respect to
the converted property would be exempt
from tax under section 501(a) because that
portion of the gain would not be subject
to tax under any Code provision had a
deemed sale election been made. This is
the case even though the tax-exempt ex-
ception does not apply to the extent the
deemed sale gain with respect to the con-
verted property would be subject to tax un-
der section 511. This clarification is made
in a new paragraph in §1.337(d)–7(d).
The commenter also requested clarifi-
cation that the exchange exception applies
to certain multi-party like-kind exchanges
of property involving intermediaries, in-
cluding “reverse like-kind exchanges”
in which the replacement property is ac-
quired before the relinquished property is
transferred. The IRS and Treasury De-
partment believe that the language of the
exchange exception is sufficiently clear
and operates to exclude from the general
rule any realized gain that is not recog-
nized by reason of either section 1031 or
1033, regardless of the specific transac-
tional form. Accordingly, the IRS and
Treasury Department do not believe that
any change to the NPRM is necessary on
this issue.
In addition, the commenter requested
that a new exception to the general rule be
added to address the fact pattern in which a
REIT purchases appreciated property from
a C corporation for cash or other consid-
eration equal to the property’s fair mar-
ket value. According to the commenter, if
the REIT does not have a continuing rela-
tionship with the C corporation, the REIT
would have no way of knowing the extent
to which the C corporation might not rec-
ognize any gain, whether pursuant to sec-
tion 1031, 1033, or some other Code provi-
sion. Because the REIT’s basis in property
purchased in an arm’s length transaction
generally is its cost, the REIT should gen-
erally not have any built-in gain in the con-
verted property. Thus, the commenter sug-
gested that this factpattern should never
give rise to a conversion transaction.
The IRS and Treasury Department
agree with the commenter that a RIC or
REIT that purchases property in an arm’s
length transaction from a C corporation
for an amount of cash equal to the prop-
erty’s fair market value should have a cost
basis equal to fair market value. Thus, if
the RIC or REIT subsequently were to sell
the property at a gain during the recogni-
tion period, the RIC or REIT should be
able to establish that the gain recognized
is not built-in gain within the meaning of
section 1374(d)(3). Accordingly, the IRS
and Treasury Department do not believe
that any change to the NPRM is necessary
on this issue.
Finally, as suggested by the commenter,
a reference in §1.337(d)–7(d)(1) of the
NPRM is corrected to refer to section
1033(a)(2) instead of section 1033(b).
Special Analyses
It has been determined that this Trea-
sury decision is not asignificant regula-
tory action as defined in Executive Order
12866, as supplemented by Executive Or-
der 13563. Therefore, a regulatory assess-
ment is not required. Pursuant to the Regu-
latory Flexibility Act (5 U.S.C. chapter 6),
it is hereby certified that these regulations
would not have a significant economic im-
pact on a substantial number of small enti-
ties. This certification is based on the fact
that these regulations do not create addi-
tional obligations for, or impose an eco-
nomic impact on, small entities. Instead,
these regulations provide an additional ex-
ception to the current regulations, and thus
have a more limited application to all busi-
nesses, including small businesses, than
the current regulations. Therefore, a reg-
ulatory flexibility analysis is not required.
Pursuant to section 7805(f) of the Code,
the proposed regulations preceding these
regulations were submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on their
impact on small business, and no com-
ments were received.
Drafting Information
The principal authors of these regula-
tions are Grid Glyer and Maury Passman
of the Office of Associate Chief Counsel
(Corporate). Other personnel from the IRS
and Treasury Department participated in
their development.
*****
August 19, 20131502013–34 I.R.B.

Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 1 is amended
as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.337(d)–7 is also issued under
26 U.S.C. 337(d) * * *
Par. 2. Section 1.337(d)–7 is amended
by:
1. Revising paragraphs (a)(2), (d)(1),
(e), and (f).
2. Adding paragraphs (d)(3) and (d)(4).
The revisions and addition read as fol-
lows:
§1.337(d)–7 Tax on property owned by a
C corporation that becomes property of
a RIC or REIT.
(a) * * *
(2)Definitions. For purposes of this
section:
(i)C corporation.ThetermC corpo-
rationhas the meaning provided in section
1361(a)(2) except that the term does not in-
clude a RIC or a REIT.
(ii)Conversion transaction.Theterm
conversion transactionmeans the qualifi-
cation of a C corporation as a RIC or REIT
or the transfer of property owned by a C
corporation to a RIC or REIT.
(iii)RIC.ThetermRICmeans a reg-
ulated investment company within the
meaning of section 851(a).
(iv)REIT.ThetermREITmeans a real
estate investment trust within the meaning
of section 856(a).
(v)S corporation.ThetermS corpo-
rationhas the meaning provided in section
1361(a)(1).
*****
(d)Exceptions.—
(1)Gain otherwise recognized. Para-
graph (a)(1) of this section does not ap-
ply to any conversion transaction to the
extent that gain or loss otherwise is rec-
ognized on such conversion transaction by
the C corporation that either qualifies as a
RIC or a REIT or that transfers property
to a RIC or REIT. See, for example, sec-
tions 311(b), 336(a), 351(b), 351(e), 356,
357(c), 367, 368(a)(2)(F), 1001, 1031(b),
and 1033(a)(2).
*****
(3)Special rules for like-kind ex-
changes and involuntary conversions.—(i)
In general. Paragraph (a)(1) of this section
does not apply to a conversion transaction
to the extent that a C corporation transfers
property with a built-in gain to a RIC or
REIT, and the C corporation’s gain is not
recognized by reason of either section
1031 or 1033.
(ii)Clarification regarding exchanged
property previously subject to section 1374
treatment. Notwithstanding paragraph
(d)(3)(i) of this section, if, in a transac-
tion described in paragraph (d)(3)(i) of
this section, a RIC or REIT surrenders
property that was subject to section 1374
treatment immediately prior to the trans-
action, the rules of section 1374(d)(6) will
apply to continue section 1374 treatment
to the replacement property acquired by
the RIC or REIT in the transaction.
(iii)Examples. The rules of this para-
graph (d)(3) are illustrated by the follow-
ing examples. In each of the examples, X
is a REIT, Y is a C corporation, and X and
Y are not related.
Example 1.Section 1031(a) exchange.(i)Facts.
X owned a building that it leased for commercial use
(Property A). Y owned a building leased for commer-
cial use (Property B). On January 1, Year 3, Y trans-
ferred Property B to X in exchange for Property A in
a nonrecognition transaction under section 1031(a).
Immediately before the exchange, Properties A and
B each had a value of $100, X had an adjusted basis
of $60 in Property A, Y had an adjusted basis of $70
in Property B, and X was not subject to section 1374
treatment with respect to Property A.
(ii)
Analysis. The transfer of property (Property
B) by Y (a C corporation) to X (a REIT) is a con-
version transaction within the meaning of paragraph
(a)(2)(ii) of this section. The conversion transaction
is a nonrecognition transaction under section 1031(a)
as to Y; thus, Y does not recognize any of its $30 gain.
Therefore, the conversion transaction is not subject
to paragraph (a)(1) of this section by reason of para-
graph (d)(3)(i) of this section.
Example 2.Section 1031(a) exchange of section
1374 property
.(i)Facts. The facts are the same as in
Example 1, except that X had acquired Property A in
a conversion transaction in Year 2, and immediately
before the Year 3 exchange X was subject to section
1374 treatment with respect to $25 of net built-in gain
in Property A.
(ii)
Analysis. The Year 3 transfer of Property B by
Y to X is a conversion transaction within the meaning
of paragraph (a)(2)(ii) of this section. The conversion
transaction is a nonrecognition transaction under sec-
tion 1031(a) as to Y; thus, Y does not recognize any
of its $30 gain. Therefore, the Year 3 transfer is not
subjecttoparagraph(a)(1)ofthissectionbyreason
of paragraph (d)(3)(i) of this section. However, X had
been subject to section 1374 treatment with respect to
$25 of net built-in gain in Property A immediately be-
fore the Year 3 transfer, and X’s basis in Property B
is determined (in whole or in part) by reference to its
adjusted basis in Property A. Accordingly, the rules
of section 1374(d)(6) apply and X is subject to sec-
tion1374treatmentonPropertyBwithrespecttothe
$25 net built-in gain. See paragraph (d)(3)(ii) of this
section.
Example 3.Section 1031(b) exchange.(i)Facts.
The facts are the same as in
Example 1, except that
immediately before the Year 3 exchange Property A
had a value of $92, and X transferred Property A and
$8 to Y in exchange for Property B in a nonrecogni-
tion transaction under section 1031(b).
(ii)
Analysis. The transfer of Property B by Y to
X is a conversion transaction within the meaning of
paragraph (a)(2)(ii) of this section. Pursuant to sec-
tion 1031(b), Y recognizes $8 of its gain. Paragraph
(a)(1) of this section does not apply to the transaction
to the extent of the $8 gain recognized by Y by reason
of paragraph (d)(1) of this section, or to the extent of
the $22 gain realized but not recognized by Y by rea-
son of paragraph (d)(3)(i) of this section.
Example 4.Section 1033(a) involuntary conver-
sion of property held by a C corporation transferor
.
(i)
Facts. Y owned uninsured, improved property
(Property 1) that was involuntarily converted (within
the meaning of section 1033(a)) in a fire. Y sold Prop-
erty 1 for $100 to X, which owned an adjacent prop-
ertyandwantedProperty1foruseasaparkinglot.
Y had a $70 basis in Property 1 immediately before
the sale. Y elected to defer gain recognition under
section 1033(a)(2), and purchased qualifying replace-
ment property (Property 2) for $100 from an unre-
lated party prior to the expiration of the period de-
scribed in section 1033(a)(2)(B).
(ii)
Analysis. ThetransferofProperty1byYto
X is a conversion transaction within the meaning of
paragraph (a)(2)(ii) of this section. The conversion
transaction (combined with Y’s purchase of Prop-
erty 2) is a nonrecognition transaction under section
1033(a) as to Y; thus, Y does not recognize any of its
$30 gain. Therefore, the conversion transaction is not
subject to paragraph (a)(1) of this section by reason
of paragraph (d)(3)(i) of this section.
Example 5.Section 1033(a) involuntary conver-
sion of property held by a REIT
.(i)Facts.Xowned
property (Property 1). On January 1, Year 2, Prop-
erty 1 had a fair market value of $100 and a basis of
$70, and X was not subject to section 1374 treatment
with respect to Property 1. On that date, when Prop-
erty 1 was under a threat of condemnation, X sold
Property 1 to an unrelated party for $100 (First Trans-
action). X elected to defer gain recognition under
section 1033(a)(2), and purchased qualifying replace-
ment property (Property 2) for $100 from Y (Second
Transaction) prior to the expiration of the period de-
scribed in section 1033(a)(2)(B).
(ii)
Analysis. ThetransferofProperty2byYto
X in the Second Transaction is a conversion transac-
tion within the meaning of paragraph (a)(2)(ii) of this
section. The Second Transaction (combined with the
First Transaction) is a nonrecognition transaction un-
der section 1033(a) as to X, but not as to Y. Assume no
nonrecognition provision applied to Y; thus, Y recog-
nized gain or loss on its sale of Property 2 in the Sec-
ond Transaction, and the Second Transaction is not
subject to paragraph (a)(1) of this section by reason
of paragraph (d)(1) of this section.
2013–34 I.R.B.151August 19, 2013

(4)Special rule if C corporation is a
tax-exempt entity. Paragraph (a)(1) of this
section does not apply to a conversion
transaction in which the C corporation that
owned the converted property is a tax-ex-
empt entity described in §1.337(d)–4(c)(2)
to the extent that gain (if any) would not be
subject to tax under Title 26 of the United
States Code if a deemed sale election un-
der paragraph (c)(5) of this section were
made.
(e)Special rule for partnerships—(1)
In general. The principles of this section
apply to property transferred by a partner-
ship to a RIC or REIT to the extent of any
gain or loss in the converted property that
would be allocated directly or indirectly,
through one or more partnerships, to a C
corporation if the partnership sold the con-
verted property to an unrelated party at fair
market value on the deemed sale date (as
defined in paragraph (c)(3) of this section).
If the partnership were to elect deemed sale
treatment under paragraph (c) of this sec-
tion in lieu of section 1374 treatment under
paragraph (b) of this section with respect to
such transfer, then any net gain recognized
by the partnership on the deemed sale must
be allocated to the C corporation partner,
but does not increase the capital account of
any partner. Any adjustment to the partner-
ship’s basis in the RIC or REIT stock as a
result of deemed sale treatment under para-
graph (c) of this section shall constitute an
adjustment to the basis of that stock with
respect to the C corporation partner only.
The principles of section 743 apply to such
basis adjustment.
(2)Example.Transfer by partnership of property
to REIT
.(i)Facts. PRS, a partnership for Federal in-
come tax purposes, has three partners: TE, a C cor-
poration (within the meaning of paragraph (a)(2)(i) of
this section) that is also a tax-exempt entity (within
the meaning of §1.337(d)–4(c)(2)), owns 50 percent
of the capital and profits of PRS; A, an individual,
owns 30 percent of the capital and profits of PRS;
and Y, a C corporation (within the meaning of para-
graph (a)(2)(i) of this section), owns the remaining 20
percent. PRS owns a building that it leases for com-
mercial use (Property 1). On January 1, Year 2, when
PRS has an adjusted basis in Property 1 of $100 and
Property 1 has a fair market value of $500, PRS trans-
fers Property 1 to X, a REIT, in exchange for stock of
X in an exchange described in section 351. PRS does
not elect deemed sale treatment under paragraph (c)
of this section. TE would not be subject to tax with
respect to any gain that would be allocated to it if PRS
hadsoldProperty1toanunrelatedpartyatfairmar-
ket value.
(ii)
Analysis. The transfer of Property 1 by PRS
to X is a conversion transaction within the meaning
of paragraph (a)(2)(ii) of this section to the extent of
anygainorlossthatwouldbeallocatedtoanyCcor-
poration partner if PRS sold Property 1 at fair market
valuetoanunrelatedpartyonthedeemedsaledate.
TE and Y are C corporations, but A is not a C cor-
poration within the meaning of paragraph (a)(2)(i) of
this section. Therefore, the transfer of Property 1 by
PRS to X is a conversion transaction within the mean-
ing of paragraph (a)(2)(ii) of this section to the extent
of the gain in Property 1 that would be allocated to
TE and Y. Pursuant to paragraph (d)(4) of this sec-
tion, paragraph (a)(1) of this section does not apply
to the extent of the gain that would be allocated to TE
if PRS had sold Property 1 to an unrelated party at fair
market value on the deemed sale date. If PRS were
to sell Property 1 to an unrelated party at fair market
value on the deemed sale date, PRS would allocate
$80 of built-in gain to Y. Thus, X is subject to section
1374 treatment on Property 1 with respect to $80 of
built-in gain.
(f)Effective/Applicability date—(1)In
general. Except as provided in paragraph
(f)(2) of this section, this section applies
to conversion transactions that occur on
or after January 2, 2002. For conversion
transactions that occurred on or after June
10, 1987, and before January 2, 2002, see
§§1.337(d)–5 and 1.337(d)–6.
(2)Special rule. Paragraphs (a)(2),
(d)(1), (d)(3), (d)(4), and (e) of this section
apply to conversion transactions that oc-
cur on or after August 2, 2013. However,
taxpayers may apply paragraphs (a)(2),
(d)(1), (d)(3), (d)(4), and (e) of this section
to conversion transactions that occurred
before August 2, 2013. For conversion
transactions that occurred on or after Jan-
uary 2, 2002, and before August 2, 2013,
see §1.337(d)–7 as contained in 26 CFR
part 1 in effect on April 1, 2013.
Beth Tucker,
Deputy Commissioner for
Services and Enforcement.
Approved June 25, 2013
Mark J. Mazur,
Assistant Secretary of the
Treasury (Tax Policy).
(Filed by the Office of the Federal Register on August 1,
2013, 8:45 a.m., and published in the issue of the Federal
Register for August 2, 2013, 78 F.R. 46805)
August 19, 20131522013–34 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Branded Prescription Drug
Fee; Guidance for the 2014
Fee Year
Notice 2013–51
Purpose
This notice provides guidance on the
branded prescription drug fee for the 2014
fee year related to (1) the submission of
Form 8947,Report of Branded Prescrip-
tion Drug Information, (2) the time and
manner for notifying covered entities of
their preliminary fee calculation, (3) the
time and manner for submitting error re-
ports for the dispute resolution process,
and (4) the time for notifying covered en-
tities of their final fee calculation.
Background
An annual fee on covered entities en-
gaged in the businessof manufacturing
or importing branded prescription drugs
is imposed by section 9008 of the Patient
Protection and Affordable Care Act, Pub-
lic Law 111–148 (124 Stat. 119 (2010)),
as amended by section 1404 of the Health
Care and Education Reconciliation Act of
2010, Public Law 111–152 (124 Stat. 1029
(2010)).
The Branded Prescription Drug Fee
Regulations in 26 C.F.R. Part 51, which
were published on August 18, 2011 (76 FR
51245), provide the method by which each
covered entity’s annual fee is calculated.
These regulations also define terms for
the administration of the fee. As relevant
for this notice, § 51.2T(g) definesfee year
as the calendar year in which the fee for
a particular sales year must be paid and
§ 51.2T(m) definessales yearas the sec-
ond calendar year preceding the fee year.
Section 51.3T provides that annually,
each covered entity may submit a com-
pleted Form 8947,Report of Branded
Prescription Drug Information, in accor-
dance with the instructions for the form.
Generally, the form solicits information
from covered entities on National Drug
Codes, orphan drugs, designated entities,
rebates, and other information specified
by the form or its instructions. The form is
to be filed by the date prescribed in guid-
ance published in the Internal Revenue
Bulletin.
Section 51.6T provides that for each
sales year the Internal Revenue Service
(IRS) will make a preliminary fee calcula-
tion for each covered entity and will notify
each covered entity of this calculation by
the date prescribed in guidance published
in the Internal Revenue Bulletin. This no-
tification will also include additional pre-
scribed information. As used in this notice,
“notice of preliminary fee calculation” in-
cludes the additionalprescribed informa-
tion.
Section 51.7T provides that upon re-
ceipt of its preliminary fee calculation,
each covered entity will have an op-
portunity to dispute this calculation by
submitting to the IRS an error report with
prescribed information. Sections 51.7T(b)
and (c) set out the information that a cov-
ered entity must submit to support each
asserted error. Section 51.7T(d) provides
that each covered entity must submit its
error report(s) in the form and manner that
is prescribed in guidance published in the
Internal Revenue Bulletin. This guidance
will also prescribe the date by which each
covered entity must submit its report(s).
Section 51.8T provides that the IRS will
send each covered entity its final fee calcu-
lation no later than August 31
st
of each fee
year and also provides that covered entities
must pay their fee by September 30
th
of the
fee year.
Submission of Form 8947
For the 2014 fee year, a covered entity
that chooses to submit Form 8947 must file
the form by November 1, 2013.
Time and manner for notifying covered
entities of their preliminary fee calculation
For the 2014 fee year, the IRS will mail
each covered entity a paper notice of its
preliminary fee calculation by March 3,
2014. This mailing will include a National
Drug Code (NDC) attachment (NDC at-
tachment) that lists the covered entity’s
NDCs and the sales data reported to the
IRS by each government program pursuant
to § 51.4T.
A covered entity may request that the
IRS send a CD-ROM with the NDC at-
tachment in Microsoft Excel format. The
covered entity must make this request by
February 17, 2014. This request must be
made either by telephone to Ingrid Tay-
lor at (908) 301–2118 or Mi Lim at (312)
292–3775 (not toll-free calls) or by email
toit.bpd.fee@irs.gov. If a covered entity
makes this request timely, the IRS will
mail the covered entity its notice of pre-
liminary fee calculation on paper and the
NDC attachment on paper and CD-ROM
by March 3, 2014.
Time and manner for submitting error
reports for the dispute resolution process
For the 2014 fee year, a covered en-
tity that chooses to submit an error re-
port regarding its preliminary fee calcula-
tion must mail the error report by May 15,
2014.
When the IRS mails each covered en-
tity a notice of its preliminary fee calcula-
tion by March 3, 2014, the IRS will also
send each covered entity a template on a
CD-ROM that the covered entity must use
to prepare its error report. All completed
templates and the supporting documenta-
tion must be submitted on a CD-ROM and
sent by mail to:
Department of the Treasury
Internal Revenue Service —
Branded Prescription Drug Fee
1973 N. Rulon White Boulevard,
Mail Stop 4916
Ogden, UT 84404
Notification of Final Fee Calculation
In accordance with § 51.8T(a), the IRS
will notify each covered entity of its fi-
nal fee calculation for 2014 by August
29, 2014. In accordance with § 51.8T(c),
each covered entity must pay this fee by
September 30, 2014.
Effect on Other Documents
Notice 2012–74, 2012–51 I.R.B. 714,
which provides guidance for the 2013 fee
year, is obsoleted.
Drafting Information
The principal author of this no-
tice is Celia Gabrysh of the Office of
2013–34 I.R.B.153August 19, 2013

Associate Chief Counsel (Passthroughs
& Special Industries).For further
information regarding this notice contact Celia Gabrysh at (202) 622–3130 (not a
toll-free call).
August 19, 20131542013–34 I.R.B.

Part IV. Items o
fGeneralInterest
Deadline to Su
bmit Opinion
and Advisory L
etter
Applications
for Defined
Benefit Mass
Submitter Plans
is Extended t
o January 31,
2014
Announceme
nt 2013–37
This announ
cement extends to January
31, 2014, th
e deadline to submit on-cycle
applicatio
ns for opinion and advisory let-
ters for spons
ors and practitioners main-
taining defin
ed benefit mass submitter lead
plans for the p
lans’ second six-year reme-
dial amendmen
t cycle. Under Rev. Proc.
2007–44, 2007
–2 C.B. 54, and Rev. Proc.
2011–49, 201
1–44 I.R.B. 608, the sub-
mission peri
od for these applications was
scheduled to
expire October 31, 2013.
Effect on Ot
her Documents
Rev. Proc. 2
007–44 and Rev. Proc.
2011–49 are
modified.
DRAFTING INFO
RMATION
The principal
author of this an-
nouncement is
Angelique Carrington
of the Employe
e Plans, Tax Exempt
and Governmen
t Entities Division.
For further in
formation regarding this
announcemen
t, please call the Employee
Plans taxpay
er assistance answering
service at (8
77) 829–5500 (a toll-free
number) or e-
mail Ms. Carrington at
retirement
planquestions@irs.gov.
2013–34 I.R.B.155August 19, 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 19, 2013i2013–34 I.R.B.

Numerical Finding List
1
Bulletins 2013–27 through 2013–34
Announcements:
2013-35, 2013-27 I.R.B.46
2013-36, 2013-33 I.R.B.142
2013-37, 2013-34 I.R.B.155
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.133
2013-51, 2013-34 I.R.B.153
Proposed Regulations:
REG-140789-12, 2013-32 I.R.B.136
Revenue Procedures:
2013-28, 2013-27 I.R.B.28
2013-29, 2013-33 I.R.B.141
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
9625, 2013-34 I.R.B.147
9626, 2013-34 I.R.B.149
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.
2013–34 I.R.B.iiAugust 19, 2013

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–27 through 2013–34
Notices:
2012-74
Obsoleted by
Notice 2013-51, 2013-34 I.R.B.
153
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
2004-34
Modified and clarified by
Rev. Proc. 2013-29, 2013-33 I.R.B.
141
2007-44
Modified by
Ann. 2013-37, 2013-34 I.R.B.
155
2009-25
Pilot program discontinued by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2011-18
Modified and clarified by
Rev. Proc. 2013-29, 2013-33 I.R.B.
141
2011-49
Modified by
Ann. 2013-37, 2013-34 I.R.B.
155
2012-25
Obsoleted in part by
Rev. Proc. 2013-28, 2013-27 I.R.B.
28
Revenue Procedures— Continued:
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 19, 2013iii2013–34 I.R.B.

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