Internal Revenue Bulletin 2014-21 (PDF rendition): IRS Notices

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HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Notice 2014–33, page 1033.
Notice 2014 –33 announces that calendar years 2014 and
2015 will be regarded as a transition period for purposes of
IRS enforcement and administration with respect to the imple-
mentation of FATCA by withholding agents, foreign financial
institutions (FFIs), and other entities with chapter 4 responsibil-
ities, and with respect to certain related due diligence and
withholding provisions under chapters 3 and 61, and section
3406. This notice also announces certain intended amend-
ments to the regulations under sections 1441, 1442, 1471,
and 1472, including amendments providing that a withholding
agent or FFI may treat an obligation (which includes an account)
held by an entity that is opened, executed, or issued on or after
July 1, 2014, and before January 1, 2015, as a preexisting
obligation for purposes of sections 1471 and 1472, subject to
certain modifications set out in the notice. Taxpayers may rely
on Notice 2014 –33 regarding these proposed amendments to
the regulations prior to their issuance.
Finding Lists begin on page ii.
Index for July through May begins on page iv.
Bulletin No. 2014–21
May 19, 2014

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with 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 policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal 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, identify-
ing 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, Legisla-
tion 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 Sec-
retary (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 contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
May 19, 2014Bulletin No. 2014–21

Part III. Administrative, Procedural, and Miscellaneous
Further Guidance on the
Implementation of FATCA
and Related Withholding
Provisions
Notice 2014–33
I. PURPOSE
This notice announces that calendar
years 2014 and 2015 will be regarded as a
transition period for purposes of Internal
Revenue Service (IRS) enforcement and
administration with respect to the imple-
mentation of FATCA by withholding
agents, foreign financial institutions
(FFIs), and other entities with chapter 4
responsibilities, and with respect to cer-
tain related due diligence and withholding
provisions under chapters 3 and 61, and
section 3406, that were revised in regula-
tions issued earlier this year as referenced
in section II of this notice. This notice also
announces the intention of the Department
of the Treasury (Treasury) and the IRS to
further amend the regulations under sec-
tions 1441, 1442, 1471, and 1472, as ap-
plicable, to provide: (i) that a withholding
agent or FFI may treat an obligation
(which includes an account) held by an
entity that is opened, executed, or issued
on or after July 1, 2014, and before Jan-
uary 1, 2015, as a preexisting obligation
for purposes of sections 1471 and 1472,
subject to certain modifications described
in section IV of this notice; (ii) additional
guidance under section 1471 concerning
the requirements for an FFI (or a branch
of an FFI, including a disregarded entity
owned by an FFI) that is a member of an
expanded affiliated group of FFIs to be
treated as a limited FFI or limited branch,
including the requirement for a limited
FFI to register on the FATCA registration
website; (iii) a modification to the stan-
dards of knowledge for withholding
agents under § 1.1441–7(b) for accounts
documented before July 1, 2014; and (iv)
a revision to the definition of a reasonable
explanation of foreign status in § 1.1471–
3(e)(4)(viii). Prior to the issuance of these
amendments, taxpayers may rely on the
provisions of this notice regarding these
proposed amendments to the regulations.
The transition period and other guid-
ance described in this notice is intended to
facilitate an orderly transition for with-
holding agent and FFI compliance with
FATCA’s requirements, and responds to
comments regarding certain aspects of the
regulations under chapters 3 and 4.
II. BACKGROUND
A. Final and Temporary Regulations
under Chapter 4
On March 18, 2010, the Hiring Incen-
tives to Restore Employment Act of 2010,
Pub. L. 111–147 (H.R. 2847), added chap-
ter 4 to Subtitle A of the Code. Chapter 4
generally requires withholding agents to
withhold at a 30 percent rate on certain
payments to an FFI unless the FFI has
entered into an agreement (FFI agree-
ment) to obtain status as a participating
FFI and to, among other things, report
certain information with respect to U.S.
accounts. Chapter 4 also imposes on with-
holding agents certain withholding, docu-
mentation, and reporting requirements
with respect to certain payments made to
certain non-financial foreign entities
(NFFEs).
On January 17, 2013, Treasury and the
IRS published final regulations under
chapter 4 (TD 9610, 78 Fed. Reg. 5873)
(final chapter 4 regulations). Following
the publication of the final chapter 4
regulations, Treasury and the IRS issued
Notice 2013–43 (2013–31 I.R.B. 113) to
preview, among other things, a revised
timeline for implementation of the FATCA
requirements. On February 20, 2014,
Treasury and the IRS released temporary
regulations under chapter 4 (T.D. 9657, 79
Fed. Reg. 12,812) (temporary chapter 4
regulations) that clarify and modify
certain provisions of the final chapter 4
regulations, including incorporating the
revised timeline for the implementation of
FATCA set forth in Notice 2013–43. The
temporary chapter 4 regulations accord-
ingly require that withholding agents (in-
cluding participating FFIs, qualified inter-
mediaries, withholding foreign partnerships,
and withholding foreign trusts) begin
withholding with respect to withholdable
payments made on or after July 1, 2014,
unless the withholding agent can reliably
associate the payment with documentation
upon which it is permitted to rely to treat
the payment as exempt from withholding
under chapter 4. On February 20, 2014,
Treasury and the IRS also released tem-
porary regulations under chapters 3 and
61, and section 3406 (T.D. 9658, 79 Fed.
Reg. 12,726) (temporary coordination
regulations), to coordinate those regula-
tions with the requirements provided in
the final and temporary chapter 4 regula-
tions.
To date, the IRS has published updated
final versions of all forms in the Forms
W–8 series and certain instructions to
these forms to incorporate the documen-
tation requirements of chapter 4. The IRS
expects to publish all of the remaining
instructions in this series in the near future.
B. Intergovernmental Agreements
(IGAs)
During 2012, Treasury first released
Model 1 and Model 2 intergovernmental
agreements (IGAs) to facilitate the imple-
mentation of FATCA and to avoid legal
impediments under local law that would
otherwise limit an FFI’s ability to comply
with the requirements under chapter 4. On
April 2, 2014, Treasury and the IRS pub-
lished Announcement 2014–17 (2014–18
I.R.B. 1001), providing that the jurisdic-
tions treated as having an IGA in effect
would include jurisdictions that, before
July 1, 2014, have reached agreements in
substance with the United States on the
terms of an IGA and that have consented
to be included on the Treasury and IRS
lists of such jurisdictions, in addition to
jurisdictions that have already signed
IGAs. An FFI that is resident in, or orga-
nized under the laws of, a jurisdiction that
is included on the Treasury and IRS lists
as having an IGA in effect is permitted to
register on the FATCA registration web-
site and is permitted to certify to a with-
holding agent its status as an FFI covered
by an IGA. As of May 1, 2014, Treasury
had signed 30 IGAs, and had agreements
in substance with 29 jurisdictions. A com-
plete list can be found on Treasury’s web-
site, available athttp://www.treasury.gov/
resource-center/tax-policy/treaties/Pages/
FATCA.aspx.
Bulletin No. 2014–21May 19, 2014
1033

III. TRANSITION PERIOD FOR
ENFORCEMENT AND
ADMINISTRATION OF
COMPLIANCE
Calendar years 2014 and 2015 will be
regarded as a transition period for pur-
poses of IRS enforcement and administra-
tion of the due diligence, reporting, and
withholding provisions under chapter 4, as
well as the provisions under chapters 3
and 61, and section 3406, to the extent
those rules were modified by the tempo-
rary coordination regulations. With re-
spect to this transition period, the IRS will
take into account the extent to which a
participating or deemed-compliant FFI,
direct reporting NFFE, sponsoring entity,
sponsored FFI, sponsored direct reporting
NFFE, or withholding agent has made
good faith efforts to comply with the re-
quirements of the chapter 4 regulations
and the temporary coordination regula-
tions.
For example, the IRS will take into
account whether a withholding agent has
made reasonable efforts during the transi-
tion period to modify its account opening
practices and procedures to document the
chapter 4 status of payees, apply the stan-
dards of knowledge provided in chapter 4,
and, in the absence of reliable documen-
tation, apply the presumption rules of
§ 1.1471–3(f). Additionally, for example,
the IRS will consider the good faith ef-
forts of a participating FFI, registered
deemed-compliant FFI, or limited FFI to
identify and facilitate the registration of
each other member of its expanded affil-
iated group as required for purposes of
satisfying the expanded affiliated group
requirement under § 1.1471–4(e)(1).
An entity that has not made good faith
efforts to comply with the new require-
ments will not be given any relief from
IRS enforcement during the transition pe-
riod. Further, the IRS will not regard cal-
endar years 2014 and 2015 as a transition
period with respect to the requirements of
chapters 3 and 61, and section 3406, that
were not modified by the temporary coor-
dination regulations. For example, the IRS
will not provide transitional relief with
respect to its enforcement regarding a
withholding agent’s determinations of the
character and source of payments for
withholding and reporting purposes. The
transition period for compliance provided
in this notice is similar to other transition
periods that the IRS has provided when it
has introduced or significantly revised due
diligence, reporting, and withholding rules.
See, e.g., Notice 98–16 (1998–15 I.R.B 12),
Notice 99–25 (1999–20 I.R.B 75), and
Notice 2001–4 (2001–2 I.R.B. 267).
IV. TREATMENT OF CERTAIN
ENTITY OBLIGATIONS ISSUED,
OPENED, OR EXECUTED ON OR
AFTER JULY 1, 2014
A. Chapter 4 Regulations
Under the chapter 4 regulations, with-
holding agents (other than participating
FFIs and registered deemed-compliant
FFIs) are generally required to implement
new account opening procedures begin-
ning on July 1, 2014. A participating FFI
is required to implement new account
opening procedures on the later of July 1,
2014, or the effective date of its FFI
agreement, and a registered deemed-
compliant FFI is required to implement
new account opening procedures on the
later of July 1, 2014, or the date on which
the FFI registers as a deemed-compliant
FFI and receives a global intermediary
identification number (GIIN).
Comments received after the publica-
tion of the temporary chapter 4 regula-
tions have indicated that the release dates
of the final Forms W–8 and accompany-
ing instructions present practical problems
for both withholding agents and FFIs to
implement new account opening proce-
dures beginning on July 1, 2014. In con-
sideration of these comments, Treasury
and the IRS intend to amend the chapter 4
regulations to allow a withholding agent
or FFI to treat an obligation held by an
entity that is issued, opened, or executed
on or after July 1, 2014, and before Jan-
uary 1, 2015, as a preexisting obligation
for purposes of implementing the applica-
ble due diligence, withholding, and re-
porting requirements under chapter 4. The
proposed amendments to the chapter 4
regulations described in this section IV
will be available only to obligations held
by entities. The proposed amendments to
the chapter 4 regulations will not be avail-
able for obligations held by individuals
because the procedures for documenting
individual accounts are less complex than
those for documenting entities for chapter
4 purposes and the Form W–8BEN (for
withholding agents to document individu-
als) and its accompanying instructions
were published in final form on March 3,
2014.
More specifically, the proposed
amendments will allow withholding
agents and FFIs to treat any obligation
held by an entity that is issued, opened, or
executed on or after July 1, 2014, and
before January 1, 2015, as a preexisting
obligation for purposes of the due dili-
gence and withholding requirements ap-
plicable to preexisting obligations de-
scribed in §§ 1.1471–2(a)(4)(ii), 1.1472–
1(b)(2), and 1.1471–4(c)(3), except that
an FFI may not apply the documentation
exception under § 1.1471–4(c)(3)(iii).
As a result, a withholding agent that
treats an obligation described in this sec-
tion IV as a preexisting obligation will
have the additional time provided in
§ 1.1471–2(a)(4)(ii) or § 1.1472–1(b)(2)
in order to document an entity that is a
payee or account holder of the obligation
to determine whether the entity is a payee
subject to withholding under chapter 4.
For example, a withholding agent may
document an entity that is a payee of an
obligation issued, opened, or executed on
or after July 1, 2014, and before January
1, 2015, by December 31, 2014, if the
payee is a prima facie FFI, or by June 30,
2016, in all other cases (as provided in
§ 1.1471–2(a)(4)(ii)). A withholding
agent would otherwise be required to doc-
ument the entity by the earlier of the date
a withholdable payment is made or within
90 days of the date the obligation is is-
sued, opened, or executed.
An FFI that is a participating FFI or
registered deemed-compliant FFI may
also treat an obligation held by an entity
that is issued, opened, or executed on or
after July 1, 2014, and before January 1,
2015, as a preexisting obligation to docu-
ment the obligation for chapter 4 purposes
within the period permitted under
§ 1.1471–4(c)(3)(ii) as if the effective
date of its FFI agreement or the date on
which the FFI registers as a deemed-
compliant FFI and receives a GIIN is June
30, 2014, and may not exclude such ac-
counts from review under § 1.1471–
4(c)(3)(iii).
May 19, 2014Bulletin No. 2014–21
1034

The proposed amendments to the chap-
ter 4 regulations described in this notice
will not otherwise affect the timelines pro-
vided in the final and temporary chapter 4
regulations for due diligence, reporting, or
withholding and will not modify the start-
ing date for an FFI to implement new
account opening procedures with respect
to accounts maintained by the FFI that are
held by individuals. For example, if a
withholding agent treats an obligation
held by an entity that is issued, opened, or
executed on or after July 1, 2014, and
before January 1, 2015, as a preexisting
obligation and receives a Form
W-8BEN-E from the entity to document
its status as a nonparticipating FFI, the
withholding agent must begin withholding
and reporting under chapter 4 when oth-
erwise required for a preexisting obliga-
tion under the chapter 4 regulations.
B. Intergovernmental Agreements
The Model 1 and Model 2 IGAs con-
tain a provision that allows a partner ju-
risdiction that has entered into an IGA to
receive the benefit of certain more favor-
able terms that are set forth in a later
signed IGA, including revisions to the
procedures under Annex I of an applicable
IGA, unless the partner jurisdiction de-
clines in writing to adopt the update (the
“most-favored nation” provision). With
respect to FFIs covered by an IGA, Trea-
sury intends to update the due diligence
procedures described in Annex I of the
Model 1 and Model 2 IGAs to incorporate
due diligence procedures consistent with
this notice.
Thus, it is expected that Annex I of
future Model 1 and Model 2 IGAs will
include a new due diligence procedures
for an entity account opened on or after
July 1, 2014, and before January 1, 2015,
to allow an FFI covered by a Model 1 IGA
or Model 2 IGA to treat such an account
as a preexisting entity account, but with-
out permitting application to such ac-
counts of the $250,000 exception for pre-
existing entity accounts that are not
required to be reviewed, identified, or re-
ported. A partner jurisdiction with an IGA
that has been signed or that has reached an
agreement in substance will be permitted
to adopt the revised due diligence proce-
dures described above pursuant to the
most-favored nation provision contained
within its IGA, once an IGA with the
revised procedures has been signed with
another partner jurisdiction.
Annex I of the Model 1 IGA contains a
provision that allows a partner jurisdiction
to permit a reporting Model 1 FFI to rely
on the procedures described in relevant
U.S. Treasury regulations to establish
whether an account is a U.S. reportable
account or an account held by a nonpar-
ticipating financial institution. Annex I of
the Model 2 IGA contains a provision that
allows a reporting Model 2 FFI to rely on
the procedures described in relevant U.S.
Treasury regulations to establish whether
an account is a U.S. reportable account or
an account held by a nonparticipating fi-
nancial institution. Prior to the publication
of the proposed amendments to the chap-
ter 4 regulations, a partner jurisdiction
may rely on the provisions of this notice
to permit a reporting Model 1 FFI to apply
the due diligence procedures for docu-
menting entity accounts described in this
section IV. Similarly, prior to the publica-
tion of the proposed amendments to the
chapter 4 regulations, a reporting Model 2
FFI may rely on the provisions of this
notice to apply the due diligence proce-
dures for documenting entity accounts de-
scribed in this section IV.
V. MODIFICATION OF THE
STANDARDS OF KNOWLEDGE
RULES UNDER CHAPTER 3
A. Background on Reason to Know
The temporary coordination regula-
tions, among other things, revised the rea-
son to know standard under § 1.1441–7(b)
to provide that a withholding agent will
have reason to know that documentation
establishing the foreign status of a direct
account holder is unreliable or incorrect if
the withholding agent has a current tele-
phone number for the account holder in
the United States and no telephone num-
ber for the account holder outside the
United States, or has a U.S. place of birth
for the account holder. See § 1.1441–
7(b)(5) and (8). The addition of rules con-
cerning a U.S. telephone number and a
U.S. place of birth as U.S. indicia to the
standards of knowledge for withholding
agents was made in the temporary coordi-
nation regulations to coordinate with the
standards of knowledge applicable to a
withholding agent’s reliance on a payee’s
claim of foreign status for chapter 4 pur-
poses. The temporary coordination regu-
lations also provide a transitional rule to
allow a withholding agent that has previ-
ously documented the foreign status of a
direct account holder for chapters 3 and
61 purposes prior to July 1, 2014, to con-
tinue to rely on such documentation with-
out regard to whether the withholding
agent has a U.S. telephone number or U.S.
place of birth for the account holder. The
withholding agent would, however, have
reason to know that the documentation is
unreliable or incorrect if the withholding
agent is notified of a change in circum-
stances with respect to the account hold-
er’s foreign status or the withholding
agent reviews documentation for the ac-
count holder that contains a U.S. place of
birth. See § 1.1441–7(b)(3)(ii).
B. Modification of the Standards of
Knowledge
Commentators have noted that the
transitional rule for preexisting obliga-
tions described in § 1.1441–7(b)(3)(ii) has
limited use for withholding agents be-
cause it is tied to a withholding agent’s
reliance on documentation obtained from
an account holder prior to July 1, 2014,
and may therefore not include cases in
which a withholding agent renews a with-
holding certificate or documentary evi-
dence on or after July 1, 2014, under the
requirements of § 1.1441–1(e)(4)(ii)(A)
(referring to the time period for renewal of
certain withholding certificates or docu-
mentary evidence). Commentators further
note that because of the extension until
December 31, 2014, provided in the tem-
porary coordination regulations for with-
holding agents to renew withholding cer-
tificates and documentary evidence that
would have otherwise expired on Decem-
ber 31, 2013, withholding agents will
have a significant number of accounts that
were documented prior to July 1, 2014,
but that will need to be re-documented by
December 31, 2014, at which time they
will no longer be able to rely on the tran-
sitional rule in § 1.1441–7(b)(3)(ii) even if
the renewal documentation does not include
any information indicating a change in
circumstances. See § 1.1441–1(e)(4)(ii)(A)
for the extended renewal allowance for
withholding certifications and documen-
Bulletin No. 2014–21May 19, 2014
1035

tary evidence otherwise expiring on De-
cember 31, 2013.
Accordingly, Treasury and the IRS in-
tend to amend the temporary coordination
regulations to provide that a direct ac-
count holder will be considered docu-
mented prior to July 1, 2014, without re-
gard to whether the withholding agent
obtains renewal documentation for the ac-
count holder on or after July 1, 2014 pur-
suant to the requirements of § 1.1441–
1(e)(4)(ii)(A). Therefore, a withholding
agent that has documented a direct ac-
count holder prior to July 1, 2014, is not
required to apply the new reason to know
standards relating to a U.S. telephone
number or U.S. place of birth until the
withholding agent is notified of a change
in circumstances with respect to the ac-
count holder’s foreign status (other than
renewal documentation that is required
under § 1.1441–1(e)(4)(ii)(A)) or reviews
documentation for the account holder that
contains a U.S. place of birth. See
§ 1.1441–7(b)(3)(ii).
VI. REVISION OF THE DEFINTION
OF REASONABLE STATEMENT
UNDER CHAPTER 4
A. Background on Reasonable
Explanation Supporting a Claim of
Foreign Status
The final chapter 4 regulations in
§ 1.1471–3(e)(4)(viii) and the temporary
coordination regulations in § 1.1441–
7(b)(12) each provide that a withholding
agent may rely on the foreign status of an
individual account holder irrespective of
certain U.S. indicia if, in certain cases, the
account holder provides a reasonable ex-
planation supporting the account holder’s
claim of foreign status. Section 1.1441–
7(b)(12) describes a reasonable explana-
tion supporting a claim of foreign status
for chapter 3 purposes as either a written
statement prepared by an individual or a
checklist provided by a withholding agent
stating that the individual meets the re-
quirements described in § 1.1441–
7(b)(12)(i) through (iv). Section 1.1471–
3(e)(4)(viii) also describes a reasonable
explanation supporting a claim of foreign
status by an individual account holder for
chapter 4 purposes, and it is substantially
similar to the description under § 1.1441–
7(b)(12), except that it limits the contents
of a reasonable statement provided by an
individual account holder to the explana-
tions permitted on the checklist. Thus, un-
like the description provided in the tem-
porary coordination regulations, the
description provided in the final chapter 4
regulations does not permit an individual
to provide a written explanation other than
an explanation that the individual meets
the requirements described in § 1.1471–
3(e)(4)(viii)(A) through (D).
B. Revision of Reasonable Explanation
Prepared by an Individual
Commentators have noted that the de-
scription of a reasonable explanation of
foreign status in the final chapter 4 regu-
lations differs from the description pro-
vided in the temporary coordination reg-
ulations. Treasury and the IRS intend to
amend the final chapter 4 regulations to
adopt the description of a reasonable ex-
planation of foreign status provided in the
temporary coordination regulations,which
permit an individual to provide a reasonable
explanation that is not limited to an expla-
nation meeting the requirements of
§ 1.1471–3(e)(4)(viii)(A) through (D).
VII. LIMITED FFIS AND LIMITED
BRANCHES
A. Background
The final and temporary chapter 4 reg-
ulations require that for any member of an
expanded affiliated group (as defined in
§ 1.1471–5(i)(2)) to obtain status as a
participating FFI or registered deemed-
compliant FFI, each FFI member of the
expanded affiliated group must have a
chapter 4 status of a participating FFI,
deemed-compliant FFI, exempt beneficial
owner, or limited FFI. The final chapter 4
regulations also provide in § 1.1471–
4(e)(2)(iv) and (3)(iii) that an FFI or
branch of a participating FFI must be reg-
istered with the IRS and agree to certain
conditions in order to be treated as a lim-
ited FFI or limited branch. The conditions
for limited FFI or limited branch status
include, among other things, that the FFI
or branch not open accounts that it is
required to treat as U.S. accounts or ac-
counts held by nonparticipating FFIs, in-
cluding accounts transferred from any
member of its expanded affiliate group.
The IRS’s FATCA registration web-
site, available at www.irs.gov/FATCA,
serves as the primary way for FFIs to
register for status as a participating FFI,
registered deemed-compliant FFI, or lim-
ited FFI. The FATCA registration website
allows FFIs that are members of an ex-
panded affiliated group to designate a lead
financial institution (Lead FI) to identify
member FFIs that will register as partici-
pating FFIs, registered deemed-compliant
FFIs, or limited FFIs and to perform cer-
tain functions with respect to member
FFIs. A Lead FI is not, however, required
to act as a Lead FI for all FFIs within an
expanded affiliated group.
B. Relief from Limited FFI and Limited
Branch Restrictions on Account
Opening.
FFIs and other stakeholders continue to
express strong support for IGAs as a way
to facilitate effective and efficient FATCA
implementation while avoiding conflicts
with local law. While Treasury stands
ready and willing to negotiate IGAs based
on the published models, commentators
have expressed practical concerns about
the status of FFIs and branches of FFIs in
jurisdictions that are slow to engage in
IGA negotiations and that have legal re-
strictions impeding their ability to comply
with FATCA, including the conditions for
limited FFI or limited branch status under
the chapter 4 regulations. Specifically,
comments have noted that the restrictions
imposed by the final chapter 4 regulations
on a limited branch or limited FFI on
opening any account that it is required to
treat as a U.S. account or as held by a
nonparticipating FFI hinders the ability of
an FFI to agree to the conditions of lim-
ited status due, for example, to require-
ments under local law to provide individ-
ual residents with access to banking
services or to the business needs of the
FFI to secure funding from another FFI in
the same jurisdiction with similar imped-
iments to complying with the require-
ments of FATCA.
In response to these comments, Trea-
sury and the IRS intend to amend the
final chapter 4 regulations to permit a
limited FFI or limited branch to open
U.S. accounts for persons resident in the
jurisdiction where the limited branch or
limited FFI is located, and accounts for
May 19, 2014Bulletin No. 2014–21
1036

nonparticipating FFIs that are resident
in that jurisdiction, provided that the
limited FFI or limited branch does not
solicit U.S. accounts from persons not
resident in, or accounts held by nonpar-
ticipating FFIs that are not established
in, the jurisdiction where the FFI (or
branch) is located and the FFI (or
branch) is not used by another FFI in its
expanded affiliated group to circumvent
the obligations of such other FFI under
section 1471. This modification is con-
sistent with the treatment of related en-
tities and branches provided in the
model IGAs.
C. Registration of Limited FFIs.
Commentators have also stated that
certain jurisdictions are explicitly prohib-
iting an FFI resident in, or organized un-
der the laws of, the jurisdiction from reg-
istering with the IRS and agreeing to any
status, including status as a limited FFI,
regardless of whether the FFI would oth-
erwise be able to comply with the require-
ments of limited FFI status. Treasury and
the IRS intend to amend the final chapter
4 regulations to provide that, if an FFI is
prohibited under local law from register-
ing as a limited FFI, the prohibition will
not prevent the members of its expanded
affiliated group from obtaining statuses as
participating FFIs or registered deemed-
compliant FFIs if the first-mentioned FFI
is identified as a limited FFI on the
FATCA registration website by a member
of the expanded affiliated group that is a
U.S. financial institution or an FFI seeking
status as a participating FFI (including a
reporting Model 2 FFI) or reporting
Model 1 FFI. In order to identify the lim-
ited FFI, the member of the expanded
affiliated group will be required to register
as a Lead FI with respect to the limited
FFI and provide the limited FFI’s infor-
mation in Part II of the FATCA registra-
tion website. If the Lead FI is prohibited
from identifying the limited FFI by its
legal name, it will be sufficient if the Lead
FI uses the term “Limited FFI” in place of
its name and indicates the FFI’s jurisdic-
tion of residence or organization.
By identifying a limited FFI in the
FATCA registration website pursuant to
this subsection VII.C, the Lead FI is con-
firming that: (1) the FFI made a represen-
tation to the Lead FI that it will meet the
conditions for limited FFI status, (2) the
FFI will notify the Lead FI within 30 days
of the date that such FFI ceases to be a
limited FFI because it either can no longer
comply with the requirements for limited
status or failed to comply with these re-
quirements, or that the limited FFI can
comply with the requirements of a partic-
ipating FFI or deemed-compliant FFI and
will separately register, to the extent re-
quired, to obtain its applicable chapter 4
status, and (3) the Lead FI, if it receives
such notification or knows that the limited
FFI has not complied with the conditions
for limited FFI status or that the limited
FFI can comply with the requirements of a
participating FFI or deemed-compliant
FFI, will, within 90 days of such notifica-
tion or acquiring such knowledge, update
the information on the FATCA registra-
tion website accordingly and will no lon-
ger be required to act as a Lead FI for the
FFI. In the case in which the FFI can no
longer comply or failed to comply with
the requirements of limited FFI status, the
Lead FI must delete the FFI from Part II
of the FATCA registration website and
must maintain a record of the date on
which the FFI ceased to be a limited FFI
and the circumstances of the limited FFI’s
non-compliance that will be available to
the IRS upon request.
VIII. DRAFTING INFORMATION
The principal author of this notice is
Tara N. Ferris of the Office of Associate
Chief Counsel (International). For further
information regarding this notice, contact
Ms. Ferris at (202) 317-6942 (not a toll-
free number).
Bulletin No. 2014–21May 19, 2014
1037

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
effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the 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 with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. 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
with amplified andclarified, 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
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
supersededdescribes 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
published 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
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings 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 following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
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—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2014–21May 19, 2014
i

Numerical Finding List
1
Bulletins 2014–1 through 2014–21
Announcements
2014-1, 2014-2 I.R.B.393
2014-2, 2014-4 I.R.B.448
2014-4, 2014-7 I.R.B.523
2014-05, 2014-6 I.R.B.507
2014-06, 2014-6 I.R.B.508
2014-07, 2014-6 I.R.B.508
2014-08, 2014-6 I.R.B.508
2014-09, 2014-6 I.R.B.508
2014-10, 2014-6 I.R.B.508
2014-11, 2014-6 I.R.B.508
2014-12, 2014-6 I.R.B.509
2014-13, 2014-10 I.R.B.620
2014-14, 2014-16 I.R.B.948
2014-15, 2014-16 I.R.B.973
2014-16, 2014-17 I.R.B.983
2014-17, 2014-18 I.R.B.1007
2014-18, 2014-17 I.R.B.983
2014-19, 2014-17 I.R.B.984
2014-20, 2014-20 I.R.B.1027
2014-21, 2014-20 I.R.B.1030
Notices
2014-1, 2014-2 I.R.B.270
2014-2, 2014-3 I.R.B.407
2014-3, 2014-3 I.R.B.408
2014-4, 2014-2 I.R.B.274
2014-5, 2014-2 I.R.B.276
2014-6, 2014-2 I.R.B.279
2014-7, 2014-4 I.R.B.445
2014-8, 2014-5 I.R.B.452
2014-9, 2014-5 I.R.B.455
2014-10, 2014-9 I.R.B.605
2014-11, 2014-13 I.R.B.880
2014-12, 2014-9 I.R.B.606
2014-13, 2014-10 I.R.B.616
2014-14, 2014-13 I.R.B.881
2014-15, 2014-12 I.R.B.661
2014-16, 2014-14 I.R.B.920
2014-17, 2014-13 I.R.B.881
2014-18, 2014-15 I.R.B.926
2014-19, 2014-17 I.R.B.979
2014-20, 2014-16 I.R.B.937
2014-21, 2014-16 I.R.B.938
2014-22, 2014-16 I.R.B.940
2014-23, 2014-16 I.R.B.942
2014-24, 2014-16 I.R.B.942
2014-25, 2014-17 I.R.B.981
2014-27, 2014-18 I.R.B.987
2014-28, 2014-18 I.R.B.990
2014-29, 2014-18 I.R.B.991
2014-31, 2014-20 I.R.B.1006
2014-32, 2014-20 I.R.B.1006
2014-33, 2014-21 I.R.B.1033
Proposed Regulations
REG-154890-03, 2014-6 I.R.B.504
REG-159420-04, 2014-2 I.R.B.374
REG-144468-05, 2014-6 I.R.B.474
REG-163195-05, 2014-15 I.R.B.930
REG-119305-11, 2014-8 I.R.B.524
REG-140974-11, 2014-3 I.R.B.438
REG-121534-12, 2014-6 I.R.B.473
REG-122706-12, 2014-11 I.R.B.647
REG-134361-12, 2014-13 I.R.B.895
REG-136984-12, 2014-2 I.R.B.378
REG-113350-13, 2014-3 I.R.B.440
REG-130967-13, 2014-13 I.R.B.884
REG-141036-13, 2014-7 I.R.B.516
REG-143172-13, 2014-2 I.R.B.383
REG-108641-14, 2014-15 I.R.B.928
Revenue Procedures
2014-1, 2014-1 I.R.B.1
2014-2, 2014-1 I.R.B.90
2014-3, 2014-1 I.R.B.111
2014-4, 2014-1 I.R.B.125
2014-5, 2014-1 I.R.B.169
2014-6, 2014-1 I.R.B.198
2014-7, 2014-1 I.R.B.238
2014-8, 2014-1 I.R.B.242
2014-9, 2014-2 I.R.B.281
2014-10, 2014-2 I.R.B.293
2014-11, 2014-3 I.R.B.411
2014-12, 2014-3 I.R.B.415
2014-13, 2014-3 I.R.B.419
2014-14, 2014-2 I.R.B.295
2014-15, 2014-5 I.R.B.456
2014-16, 2014-9 I.R.B.606
2014-17, 2014-12 I.R.B.661
2014-18, 2014-7 I.R.B.513
2014-19, 2014-10 I.R.B.619
2014-20, 2014-9 I.R.B.614
2014-21, 2014-11 I.R.B.641
2014-22, 2014-11 I.R.B.646
2014-23, 2014-12 I.R.B.685
2014-24, 2014-13 I.R.B.879
2014-25, 2014-15 I.R.B.927
2014-28, 2014-16 I.R.B.944
2014-30, 2014-20 I.R.B.1009
2014-31, 2014-20 I.R.B.1009
Revenue Rulings
2014-1, 2014-2 I.R.B.263
2014-2, 2014-2 I.R.B.255
2014-3, 2014-2 I.R.B.259
2014-4, 2014-5 I.R.B.449
2014-6, 2014-7 I.R.B.510
2014-8, 2014-11 I.R.B.624
2014-9, 2014-17 I.R.B.975
2014-10, 2014-14 I.R.B.906
2014-11, 2014-14 I.R.B.906
2014-12, 2014-15 I.R.B.923
2014-13, 2014-19 I.R.B.1003
Treasury Decisions
9649, 2014-2 I.R.B.265
9650, 2014-3 I.R.B.394
9651, 2014-4 I.R.B.441
9652, 2014-12 I.R.B.655
9653, 2014-6 I.R.B.460
9654, 2014-6 I.R.B.461
9655, 2014-9 I.R.B.541
9656, 2014-11 I.R.B.626
9657, 2014-13 I.R.B.687
9658, 2014-13 I.R.B.748
9659, 2014-12 I.R.B.653
9660, 2014-13 I.R.B.842
9661, 2014-13 I.R.B.855
9662, 2014-16 I.R.B.933
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2013–27 through 2013–52 is in Internal Revenue Bulletin
2013–52, dated December 23, 2013.
May 19, 2014Bulletin No. 2014–21
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2014–1 through 2014–21
Announcements:
2007-44
Modified by
Ann. 2014-4, 2014-7 I.R.B.523
2011-49
Modified by
Ann. 2014-4, 2014-7 I.R.B.523
Notices:
2003-37
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2006-87, 2006-2 C.B. 766
Superseded by
Notice 2014-29, 2014-18 I.R.B.991
2006-109
Modified by
Notice 2014-4, 2014-2 I.R.B.274
2007-25, 2007-1 C.B. 760
Superseded by
Notice 2014-29, 2014-18 I.R.B.991
2007-59
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2007-77, 2007-2 C.B. 735
Superseded by
Notice 2014-29, 2014-18 I.R.B.991
2008-107, 2008-2 C.B. 1266
Superseded by
Notice 2014-29, 2014-18 I.R.B.991
2009-78
Superseded by
T.D. 9654 2014-6 I.R.B.461
2010-27, 2010-1 C.B. 531
Superseded by
Notice 2014-29, 2014-18 I.R.B.991
2013-1
Superseded by
Notice 2014-22, 2014-16 I.R.B.940
2013-1
Modified by
Notice 2014-22, 2014-16 I.R.B.940
Notices—Continued:
2013-13
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2013-17
Amplified by
Notice 2014-1, 2014-2 I.R.B.270
Revenue Procedures:
2003-49
Modified and superseded by
Rev. Proc. 2014-14, 2014-2 I.R.B.295
2004-42
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2004-43
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2011-4
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2011-14
Modified by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2011-14
Clarified by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2011-14
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2011-44
Modified and Superseded by
Rev. Proc. 2014-11, 2014-3 I.R.B.411
2011-49
Modified by
Rev. Proc. 2014-6, 2014-1 I.R.B.198
2012-14
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2012-19
Modified by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2012-19
Superseded by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
Revenue Procedures—Continued:
2012-20
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2012-20
Superseded by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2013-1
Superseded by
Rev. Proc. 2014-1, 2014-1 I.R.B.1
2013-2
Superseded by
Rev. Proc. 2014-2, 2014-1 I.R.B.90
2013-3
Superseded by
Rev. Proc. 2014-3, 2014-1 I.R.B.111
2013-4
Superseded by
Rev. Proc. 2014-4, 2014-1 I.R.B.125
2013-5
Superseded by
Rev. Proc. 2014-5, 2014-1 I.R.B.169
2013-6
Superseded by
Rev. Proc. 2014-6, 2014-1 I.R.B.198
2013-7
Superseded by
Rev. Proc. 2014-7, 2014-1 I.R.B.238
2013-8
Superseded by
Rev. Proc. 2014-8, 2014-1 I.R.B.242
2013-9
Superseded by
Rev. Proc. 2014-9, 2014-2 I.R.B.281
2013-10
Superseded by
Rev. Proc. 2014-10, 2014-2 I.R.B.293
2013-22
Modified by
Rev. Proc. 2014-28, 2014-16 I.R.B.944
2013-24
Obsoleted by
Rev. Proc. 2014-23, 2014-12 I.R.B.685
2013-27
Obsoleted by
Rev. Proc. 2014-23, 2014-12 I.R.B.685
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–27 through 2013–52 is in Internal Revenue Bulletin 2013–52, dated December 23,
2013.
Bulletin No. 2014–21May 19, 2014
iii

Revenue Procedures—Continued:
2013-28
Obsoleted by
Rev. Proc. 2014-31, 2014-20 I.R.B.1009
2013-32
Superseded in part by
Rev. Proc. 2014-1, 2014-1 I.R.B.1, and
Rev. Proc. 2014-3, 2014-1 I.R.B.111
2014-1
Amplified by
Rev. Proc. 2014-18, 2014-7 I.R.B.513
2014-1 I.R.B. 111
Amplified by
Rev. Proc. 2014-24, 2014-13 I.R.B.879
2014-3
Amplified by
Rev. Proc. 2014-18, 2014-7 I.R.B.513
2014-3 I.R.B 111
Amplified by
Rev. Proc. 2014-24, 2014-13 I.R.B.879
2014-4
Modified by
Rev. Proc. 2014-19, 2014-10 I.R.B.619
Proposed Regulations:
209054-87
A portion withdrawn by
REG-113350-13 2014-3 I.R.B.440
Revenue Rulings:
2005-48 (2005-2 CB 259)
Obsoleted by
T.D. 9659 2014-12 I.R.B.653
2013-17
Amplified by
Notice 2014-19, 2014-17 I.R.B.979
2013-17
Amplified by
Notice 2014-25, 2014-17 I.R.B.981
Treasury Decision:
9644
Correction by
Ann. 2014-18, 2014-17 I.R.B.983
9644
Correction by
Ann. 2014-19, 2014-17 I.R.B.984
May 19, 2014Bulletin No. 2014–21
iv

INDEX
Internal Revenue Bulletins 2014–1 through
2014–21
The abbreviation and number in parenthesis following the index
entry refer to the specific item; numbers in roman and italic type
following the parentheses refer to the Internal Revenue Bulletin in
which the item may be found and the page number on which it
appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
ADMINISTRATIVE
Average area purchase price safe-harbors guidance for 2014 (RP 31)
20,1009
Consolidated returns; failure to properly include subsidiary (RP 24)
13,879
Extension of time to file estate tax return to elect portability of a
deceased spousal unused exclusion amount under section
2010(c)(5)(A). (RP 18) 7,513
Method change procedures for dispositions of tangible deprecia-
ble property (RP 17) 12,661
Maximum Vehicle Values for which the special valuation rules of
regulations section 1.61–21(d) and (e) may be used (Notice 11)
13,880
Minimum essential coverage, information reporting (TD 9660)
13,842
Regulations:
26 CFR 1.6055–1 added. 26 CFR 1.6055–2 added. 26 CFR
1.6081–8 amended. 26 CFR 301.6011–2 amended. 26
CFR 301.6721–1 amended. 26 CFR 1.6011–8 amended.
26 CFR 301.6722–1 amended; minimum essential cover-
age, information reporting 13,842
Per Capita Payments from Proceeds of Settlements of Indian
Tribal Trust Cases (Notice 22) 16,940
Virtual Currency (Notice 21) 16,938
EMPLOYEE PLANS
Definition of a substantial risk of forfeiture (TD 9659) 12,653
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Excepted benefits (REG–143172–13) 2,383
Final rules to implement the 90-day waiting period limitation
(TD 9656) 11,626
EMPLOYEE PLANS—Cont.
Letter rulings:
And determination letters:
Areas which will not be issued from Associate Chief
Counsel and Division counsel (TE/GE) (RP 3) 1,111
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 1,281
And general information letters; procedures (RP 4) 1,125
User fees, request for letter rulings (RP 8) 1,242
Letter rulings and general information letters (RP 4) 1,125
Letter rulings or determination letters (RP 1) 1,1
Proposed rules to clarify length of reasonable and bona fide
employment-based orientation period, consistent with the 90-
day waiting period limitation (REG–122706–12) 11,647
Qualification, determination letters (RP 6) 1,198
Qualified plans:
Application of the Windsor Decision and Rev. Rul. 2013–17
(Notice 19) 17,979
Discrimination (Notice 5) 2,276
Opinion letters (Ann 4) 7,523
Opinion letters (Ann 16) 17,983
Determination Letters (RP 19) 10,619
Qualified retirement plans covered compensation, permitted dis-
parity (RR 3) 2,259
Qualified retirement plans
Rollovers (RR 9) 17,975
Regulations:
26 CFR 54.9815–2708, amended; REG–122706–12) 11,647
Removal of the Qualified Payment Card Agent Program (REG–
163195–05) 15,930
Request for Information Regarding Provider Non-Discrimination
(REG–108641–14) 15,928
Rulings and determination letters, user fees (RP 8) 1,242
Technical advice memorandum or TAM (RP 2) 1,90
Technical advice procedures (RP 5) 1,169
Full funding limitations, weighted average interest rates, segment
rates for:
January 2014 (Notice 8) 5,452
Weighted average interest rates
Segment rates for February 2014 (Notice 13) 10,616
Segment rates for March 2014 (Notice 16) 14,920
Segment rates for March 2014 (Notice 27) 18,987
EMPLOYMENT TAX
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Employment tax liability of agents authorized under section 3504
(TD 9649) 2,265
Employment tax obligations of a third party that enters into a
service agreement with an employer to take on the employer’s
employment tax responsibilities (TD 9662) 16,933
Regulations:
26 CFR 31–3504–2, added; employment tax obligations of a
third party that enters into a service agreement with an
employer to take on the employer’s employment tax re-
sponsibilities (TD 9662) 16,933
Bulletin No. 2014–21May 19, 2014
v

EMPLOYMENT TAX—Cont.
Letter rulings or determination letters (RP 1) 1,1
Regulations:
26 CFR 1.83–3 is revised; definition of a substantial risk of
forfeiture (TD 9659) 12,653
26 CFR 54.9815–2708, amended; REG–122706–12) 11,647
26 CFR 54,9801–1, thru –6, amended; 26 CFR 54.9802–1,
amended; 26 CFR 54.9815–2708, added; 26 CFR
54.9831–1, amended (TD 9656) 12,626
Technical Advice Memorandum (TAM) (RP 2) 1,90
Virtual Currency (Notice 21) 16,938
ESTATE TAX
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Extension of time to file estate tax return to elect portability of a
deceased spousal unused exclusion amount under section
2010(c)(5)(A) (RP 18) 7,513
Letter rulings or determination letters (RP 1) 1,1
Technical Advice Memorandum (TAM) (RP 2) 1,90
EXCISE TAX
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Final rules to implement the 90-day waiting period limitation
(TD 9656) 11,626
Information reporting by applicable large employers on health
insurance coverage offered under employer-sponsored plans
(TD 9661) 13,855
Regulations:
301.6056–1, –2, added; Information reporting by applicable
large employers on health insurance coverage offered un-
der employer-sponsored plans (TD 9661) 13,855
Interim guidance regarding supporting organizations (Notice 4)
2,274
Letter rulings or determination letters (RP 1) 1,1
Notice for ACA Section 9010 Health Insurance Providers Fee
and expatriate plans (Notice 24) 16,942
Proposed rules to clarify length of reasonable and bona fide
employment-based orientation period, consistent with the 90-
day waiting period limitation (REG–122706–12) 11,647
Regulations:
26 CFR 54.9815–2708, amended; REG–122706–12) 11,647
26 CFR 54,9801–1, thru –6, amended; 26 CFR 54.9802–1,
amended; 26 CFR 54.9815–2708, added; 26 CFR
54.9831–1, amended (TD 9656) 12,626
Technical Advice Memorandum (TAM) (RP 2) 1,90
EXEMPT ORGANIZATIONS
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Form 990 Revenue Procedure update to revoke Revenue Proce-
dure 79–6 (RP 22) 11,646
Interim guidance regarding supporting organizations (Notice 4)
2,274
EXEMPT ORGANIZATIONS—Cont.
Letter rulings:
And determination letters:
Areas which will not be issued from Associate Chief
Counsel and Division counsel (TE/GE) (RP 3) 1,111
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 1,281
And general information letters; procedures (RP 4) 1,125
User fees, request for letter rulings (RP 8) 1,242
Letter rulings (RP 10) 2,293; (RP 9) 2,281
Letter rulings or determination letters (RP 1) 1,1
Proposed procedures for charitable hospitals to correct and dis-
close failures to meet section 501(r) (Notice 3) 3,408
Reliance on proposed regulations for tax-exempt hospitals (No-
tice 2) 3,407
Rulings and determination letters, user fees (RP 8) 1,242
Technical Advice Memorandum (TAM) (RP 2) 1,90
Technical advice procedures (RP 5) 1,169
INCOME TAX
Adequate disclosure revenue procedure (RP 15) 5,456
Advance Pricing and Mutual Agreement Program (Ann 14) 16,
948
Allocation of section 47 credits by a partnership to its partners
(RP 12) 3,415
Allocation of section 752 recourse liabilities among related par-
ties (REG–136984–12) 2,378
Amount of the life insurance reserves taken into account under
§ 807 of the Internal Revenue Code for variable contracts
(RR 7) 9,539
Areas in which rulings will not be issued; Associate Chief
Counsel (International) (RP 7) 1,238
Average area purchase price safe-harbors guidance for 2014 (RP 31)
20,1009
Basis in assets of tax exempt trusts (REG–154890–03) 6,504
Bond premium carryforward (TD 9653) 6,460
Cafeteria plans, FSA reimbursements, and HSA contribution
limits for same-sex spouses (Notice 1) 2,270
2014 Census Count (Notice 12) 9,606
Contribution of built-in lost property to a partnership; mandatory
basis adjustments in the event of a substantial built-in loss or
substantial basis reduction; modification of basis allocation
rules (REG–144468–05) 6,474
Current refunding of Recovery Zone facility bonds (Notice 9) 5,
455
Declaratory judgement suits (Ann 5) 6,507; (Ann 6) 6,507;
(Ann 7) 6,508; (Ann 8) 6,508; (Ann 9) 6,508; (Ann 10) 6,
508; (Ann 12) 6,509
Definition of a substantial risk of forfeiture (TD 9659) 12,653
Definitions applicable to U.S. persons owning interests in passive
foreign investment companies (REG–113350–13) 3,440
Depreciation deduction, limitations on certain automobiles (RP 21)
11,641
Determination of housing cost eligible exclusion or deduction for
2014 (Notice 29) 18,991
May 19, 2014Bulletin No. 2014–21
vi

INCOME TAX—Cont.
Determination of ownership in a passive foreign investment
company; annual filing requirements for shareholders of pas-
sive foreign investment companies; filing requirements for
constructive owners in certain foreign corporations (REG–
140974–11) 3,438; (TD 9650) 3,394
Determining stock ownership for purposes of whether an entity is
a surrogate foreign corporation (TD 9654) 6,461; (REG–
121534–12) 6,473
Discharge of indebtedness secured by real property (RP 20) 9,
614
Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 13) 10,620
Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 20) 20,
1027
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Equity-linked instruments and dividend equivalents (Notice 14)
13,881
FATCA financial institution registration update (Ann 1) 2,
393
FATCA IGA and registration update (Ann 17) 18,1001
Final FFI agreement for participating FFI and reporting Model 2
FFI (RP 13) 3,419
Foreign Earned Income Exclusion (RP 25) 15,927
Further guidance on FATCA implementation and related with-
holding provisions (Notice 33) 21,1033
2014 – 2015 Guidance Priority List- Solicitation Notice (Notice 18)
15,926
Guidance regarding reinstatement following auto revocation of
tax-exempt status under section 6033(j) (RP 11) 3,411
Income tax treatment of per capita payments made from funds
held in trust by the Secretary of the Interior (Notice 17) 13,
881
2015 Inflation adjusted amounts for Health Savings Accounts
(HSAs) (RP 30) 20,1009
Information reporting by foreign financial institutions and with-
holding on payments to foreign financial institutions and other
foreign entities (REG–130967–13) 13,884
Regulation:
26 CFR 1.1471–0, amended; 26 CFR 1.1471–1, amended; 26
CFR 1.147–2, amended; 26 CFR 1.1471–3, amended; 26
CFR 1.1471–4, amended; 26 CFR 1.1471–5, amended; 26
CFR 1.1471–6, amended; 26 CFR 1.1472–1, amended; 26
CFR 1.1473–1, amended; 26 CFR 1474–1, amended; 26
CFR 1.1474–6, amended. (Reg–130967–13) 13,884
Information reporting by foreign financial institutions and with-
holding on payments to foreign financial institutions and other
foreign entities (TD 9657) 13,687
Regulations:
26 CFR 1.1471–0, amended; 26 CFR 1.1471–1, amended; 26
CFR 1.147–2, amended; 26 CFR 1.1471–3, amended; 26
CFR 1.1471–4, amended; 26 CFR 1.1471–5, amended; 26
CFR 1.1471–6, amended; 26 CFR 1.1472–1, amended; 26
CFR 1.1473–1, amended; 26 CFR 1474–1, amended; 26
CFR 1.1474–6, amended. (TD 9657) 13,687
INCOME TAX—Cont.
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2014 (RR 1) 2,263
February 2014 (RR 6) 7,510
March 2014 (RR 8) 11,624
April 2014 (RR 12) 15,923
May 2014 (RR 13) 19,1003
Intra-group gross receipts (REG–159420–04) 2,374
Insurance tax, insurance companies, interest rate tables (RR 4) 5,
449
Letter rulings or determination letters (RP 1) 1,1
Low-Income Housing Credit (Notice 15) 12,661
Maximum Vehicle Values for which the special valuation rules
of regulations section 1.61–21(d) and (e) may be used (Notice
11) 13,880
Method change procedures for dispositions of tangible deprecia-
ble property (RP 17) 12,661
Minimum essential coverage, information reporting (TD 9660)
13,842
Regulations:
26 CFR 1.6055–1 added. 26 CFR 1.6055–2 added. 26 CFR
1.6081–8 amended. 26 CFR 301.6011–2 amended. 26
CFR 301.6721–1 amended. 26 CFR 1.6011–8 amended.
26 CFR 301.6722–1 amended. (TD 9660) 13,842
Net investment income tax; TD 9644 Correction (Ann 2014–18)
17,983
Net investment income tax; TD 9644 Correction (Ann 2014–19)
17,984
Postponement of deadline for § 165(i) election for losses attrib-
utable to September 2013 major flooding in Colorado (Notice)
(Notice 20) 16,937
Principal residence, treatment of National Mortgage Settlement
payments (RR 2) 2,255
Qualified census tracts (RP 14) 2,295
Refundable Credit For Coverage Under a Qualified Health Plan,
Definition and Rules Relating to Applicable Taxpayer (Notice
23) 16,942
Regarding disguised sales, generally (REG–119305–11) 8,524
Regulations:
26 CFR 1.83–3 is revised; definition of a substantial risk of
forfeiture (TD 9659) 12,653
26 CFR 1.263A–0, thru –3, amended; 1.471–3 amended;
sales-base royalties and vendor allowances (TD 9652) 12,
655
Removal of the Qualified Payment Card Agent Program (REG–
163195–05) 15,930
Regulations:
26 CFR 301.6724–1(c)(6), amended; 26 CFR 31.3406(g)–
1(f), 26 CFR 301.6724–1(e)(1)(vi)(H), and 26 CFR
301.6724–1(f)(5)(vii), removed;removal of the qualified
payment ard agent program (REG–163195–05) 15,930
26 CFR 1.6045–1T: Returns of information of brokers and barter
exchanges (temporary), correction to TD 9658 (Ann 21) 20,
1030
Bulletin No. 2014–21May 19, 2014
vii

INCOME TAX—Cont.
Revocations, exempt organization (Ann 11) 6,508
Sales-bases royalties and vendor allowances (TD 9652) 12,655
2013 Section 45K Inflation Adjustment Factor – Nonconven-
tional Fuel source Credit (Notice 25) 17,981
Shared responsibility for employers regarding health coverage
(TD 9655) 9,541
Shared responsibility payment for not maintaining minimum
essential coverage (REG–141036–13) 7,516
Standard Industry Fare Level (SIFL) (RR 10) 14,906
Tangible property regulations method change guidance (RP 16)
9,606
Technical Advice Memorandum (TAM) (RP 2) 1,90
Transition relief for the tax credit for employee health insurance
expenses of certain small employers (Notice 6) 2,279
Transition relief under section 5000A for certain individuals
without minimum essential coverage (Notice 10) 9,605
Treatment of Income from certain government bonds held by
certain active banks for purposes of the passive foreign invest-
ment company (PFIC) rules (Notice 31) 20,1006
Treatment of Property Used To Acquire Parent Stock or Secu-
rities in Certain Triangular Reorganizations Involving Foreign
Corporations (Notice 32) 20,1006
Treatment of U.S. persons that own stock of passive foreign
investment companies through certain organizations and ac-
counts that are tax exempt (Notice 28) 18,990
Underpayment and overpayments, quarter beginning: April 1,
2014 (RR 11) 14,906
Virtual Currency (Notice 21) 16,938
Withholding of tax on certain U.S. source income paid to foreign
persons and revision of information reporting and backup
withholding regulations (REG–134361–12) 13,895
Proposed Regulations:
26 CFR 1.871–14, amended; 26 CFR 1.1441–1, amended; 26
CFR 1.1441–3, amended; 26 CFR 1.1441–5, amended; 26
CFR 1.441–6, amended; 26 CFR 1.1441.7, amended; 26
CFR 1.1461–1, amended; 26 CFR 1.1461–2, amended; 26
CFR 1.6041–1, amended; 26 CFR 1.6041–4, amended; 26
CFR 1.6042–2, amended; 26 CFR 1.6042–3, amended; 26
CFR 1.6045–1, amended; 26 CFR 1.6049–4, amended; 26
CFR 1.6049–5, amended; 26 CFR 31.3406(g)–1, amend-
ed; 26 CFR 31.3406(h)–2, amended; 26 CFR 301.6402–3,
amended; Withholding of tax on certain U.S. source in-
come paid to foreign persons and revision of information
reporting and backup withholding regulations (REG–
134361–12) 13,895
Withholding of tax on certain U.S. source income paid to foreign
persons and revision of information reporting and backup
withholding regulations (TD 9658) 13,748
INCOME TAX—Cont.
Regulations:
26 CFR 1.871–14, amended; 26 CFR 1.1441–1, amended; 26
CFR 1.1441–3, amended; 26 CFR 1.1441–5, amended; 26
CFR 1.441–6, amended; 26 CFR 1.1441.7, amended; 26
CFR 1.1461–1, amended; 26 CFR 1.1461–2, amended; 26
CFR 1.6041–1, amended; 26 CFR 1.6041–4, amended; 26
CFR 1.6042–2, amended; 26 CFR 1.6042–3, amended; 26
CFR 1.6045–1, amended; 26 CFR 1.6049–4, amended; 26
CFR 1.6049–5, amended; 26 CFR 31.3406(g)–1, amend-
ed; 26 CFR 31.3406(h)–2, amended; 26 CFR 301.6402–3,
amended; Withholding of tax on certain U.S. source in-
come paid to foreign persons and revision of information
reporting and backup withholding regulations, correction
to (TD 9658) 13,748
SELF-EMPLOYMENT TAX
Virtual Currency (Notice 21) 16,938
SPECIAL ANNOUNCEMENT
Advance Pricing and Mutual Agreement Program (Ann 14) 16,
948
May 19, 2014Bulletin No. 2014–21
viii

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