Internal Revenue Bulletin 2014-43 (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.

# Internal Revenue bulletin

## 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 2014-60, page 741.

This notice explains the circumstances under which the 4-year
replacement period under section 1033(e)(2) of the Code is
extended for livestock sold on account of drought. The Appen-
dix to this notice contains a list of the counties that experi-
enced exceptional, extreme, or severe drought during the
preceding 12-month period ending August 31, 2014. Taxpay-
ers may use this list to determine if an extension is available.

### T.D. 9696, page 727.

Final regulations under section 162 of the Code describe the
circumstances under which expenses paid or incurred for
lodging when not traveling away from home (local lodging) may
be deductible expenses. Final amendments to the regulations
under section 262 provide that expenses for local lodging are
nondeductible personal expenses unless they qualify as de-
ductible expenses under section 162.

## EMPLOYEE PLANS

### Notice 2014-53, page 737.

This notice provides guidance on the changes to the funding
stabilization rules for single-employer pension plans under the Internal
Revenue Code (Code) and the Employee Retirement Income Secu-
rity Act of 1974 (ERISA) that were made by section 2003 of the
Highway and Transportation Funding Act of 2014 (HATFA),
Pub. L. No. 113-159, which was enacted on August 8, 2014.

### T.D. 9697, page 729.

This document contains final regulations that modify the regula-
tions providing requirements for limited-scope vision or dental
benefits to qualify as excepted benefits and provide requirements

for when an employee assistance program (EAP) qualifies as
excepted benefits. Excepted benefits are not subject to the vari-
ous market reforms imposed by the Affordable Care Act and do
not qualify as minimum essential coverage. The final regulations
apply to plan years beginning or or after January 1, 2015.

## EXCISE TAX

### T.D. 9697, page 729.

This document contains final regulations that modify the regula-
tions providing requirements for limited-scope vision or dental
benefits to qualify as excepted benefits and provide requirements
for when an employee assistance program (EAP) qualifies as
excepted benefits. Excepted benefits are not subject to the vari-
ous market reforms imposed by the Affordable Care Act and do
not qualify as minimum essential coverage. The final regulations
apply to plan years beginning or or after January 1, 2015.

## ADMINISTRATIVE

### Notice 2014-61, page 744.

This notice updates the appendix to Notice 2013-1, which lists
the Indian tribes who have settled tribal trust cases against the
United States. Notice 2012-60 originally was published in IRB
2012-41 (October 9, 2012). Notice 2012-60 was super-
ceded by Notice 2013-1 IRB 2013-3, and the appendix to
Notice 2013-1 was superceded by Notice 2013-16 (IRB
2013-14), then Notice 2013-36, then Notice 2013-55, then
Notice 2014-22, and then Notice 2014-38. However, two
additional tribes have settled their cases against the United
States since the publication of Notice 2014-38, so we are
publishing an updated appendix to Notice 2013-1. This notice
would supercede Notice 2014-38. Notice 2013-1 Appendix
is modified and superseded.

Finding Lists begin on page ii.
Index for July through October begins on page iv.

Department of the Treasury
Internal Revenue Service

## 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.

## Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

### Section 162 .- Deductibility of Expenses for Lodging

26 CFR 1.162-32: Deductibility of expenses for
lodging when an individual is not traveling away
from home (local lodging).

#### T.D. 9696

DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1

#### Local Lodging Expenses

AGENCY: Internal Revenue Service
(IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains fi-
nal regulations relating to the deductibility
of expenses for lodging when an individ-
ual is not traveling away from home (local
lodging). The regulations affect taxpayers
who pay or incur local lodging expenses.

DATES: Effective Date: These regula-
tions are effective on October 1, 2014.

Applicability Dates: For dates of appli-
cability, see §§ 1.162-32(d) and 1.262-
1(b)(5).

FOR FURTHER INFORMATION

CONTACT: Peter Ford, (202) 317-7011
(not a toll-free number).

SUPPLEMENTARY INFORMATION:
Background

This document contains final regula-
tions that amend the Income Tax Regula-
tions (26 CFR part 1) under sections 162
and 262 of the Internal Revenue Code
(Code) relating to the deduction of local
lodging expenses. On April 25, 2012, a
notice of proposed rulemaking (REG-
137589-07) was published in the Federal
Register (77 FR 24657). One written
comment responding to the notice of pro-
posed rulemaking was received. No public
hearing was requested or held. After con-
sideration of the comment, the regulations

are adopted as amended by this Treasury
decision.

### Summary of Comment and Explanation of Provisions

The provisions of the proposed regula-
tions under section 162 of the Code were
designated as § 1.162-31, however, after
the proposed regulations were published,
unrelated regulations were finalized as
§ 1.162-31. Accordingly, the final regula-
tions in this document under section 162
are designated as § 1.162-32.

Under the general rule in § 1.162-31(a)
of the proposed regulations, local lodging
expenses for an individual are personal,
living, or family expenses that are nonde-
ductible by the individual under section
262(a). Depending on the facts and cir-
cumstances, however, local lodging ex-
penses may be deductible under section
162 as ordinary and necessary business
expenses. Section 1.162-31(b) of the pro-
posed regulations provides a safe harbor,
pursuant to which local lodging expenses
that meet certain criteria are treated as
ordinary and necessary business expenses
of an individual. Local lodging expenses
that meet either the facts and circum-
stances test of paragraph (a) or the safe
harbor requirements of paragraph (b) are
deductible by an individual if incurred
directly. Alternatively, if the expenses are
incurred by an employer on behalf of an
employee, the value of the local lodging
may be excludible from the income of the
employee as a working condition fringe
under section 132(a) and (d). To the extent
an employer reimburses an employee for
local lodging expenses, the reimbursement
may be excludible from the employee's
gross income if the expense allowance ar-
rangement satisfies the requirements of an
accountable plan under section 62(c) and the
applicable regulations. The expenses are
also deductible by the employer as ordinary
and necessary business expenses.

The commenter requested that the final
regulations be revised to make it clear that
a taxpayer's local lodging expenses that
do not satisfy the safe harbor under
§ 1.162-31(b) of the proposed regulations
may nonetheless be deductible under

§ 1.162-31(a) of the proposed regulations
depending on the taxpayer's facts and cir-
cumstances. In response to this comment,
the final regulations clarify that the exam-
ples illustrate the facts and circum-
stances test. Specifically, the examples
illustrate situations in which certain
conditions of the safe harbor are not
satisfied and, therefore, the facts and
circumstances test determines the appro-
priate treatment.

An example in the proposed regula-
tions describes circumstances in which a
professional sports team provides local
lodging to players and coaches for a non-
compensatory business purpose. The
commenter suggested that the final regu-
lations clarify that local lodging provided
to other employees of a sports team also
may be ordinary and necessary noncom-
pensatory business expenses. In response
to this comment, the final regulations re-
vise the example to clarify that the refer-
ence to players and coaches is illustrative
and not exclusive.

The commenter requested that the final
regulations clarify the circumstances in
which meal expenses paid or incurred in
connection with lodging expenses are de-
ductible. The final regulations do not
adopt this comment, as the proposed reg-
ulations did not provide rules relating to
meal expenses and those issues are be-
yond the scope of these regulations.

## Effective/Applicability Date

These regulations apply to expenses
paid or incurred on or after October 1,
2014. Taxpayers may apply these regula-
tions to expenses paid or incurred in tax-
able years ending before October 1, 2014,
for which the period of limitation on
credit or refund under section 6511 has
not expired.

## Special Analyses

This Treasury decision is not a signif-
icant regulatory action as defined in Ex-
ecutive Order 12866, as supplemented by
Executive Order 13563. Therefore, a reg-
ulatory assessment is not required. It also
has been determined that section 553(b) of

the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations and, because the regulations
do not impose a collection of information
on small entities, the Regulatory Flexibil-
ity Act (5 U.S.C. chapter 6) does not ap-
ply. Pursuant to section 7805(f) of the
Code, the notice of proposed rulemaking
that preceded these final regulations was
submitted to the Chief Counsel for Advo-
cacy of the Small Business Administra-
tion for comment on its impact on small
business. No comments were received.

### Drafting Information

The principal author of these regula-
tions is R. Matthew Kelley of the Office of
Associate Chief Counsel (Income Tax and
Accounting). However, other personnel
from the IRS and the Treasury Depart-
ment 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 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 1.162-32 is added to
read as follows:

§ 1.162-32 Expenses paid or incurred
for lodging when not traveling away
from home.

(a) In general. Expenses paid or in-
curred for lodging of an individual who is
not traveling away from home (local lodg-
ing) generally are personal, living, or fam-
ily expenses that are nondeductible by the
individual under section 262(a). Under
certain circumstances, however, local
lodging expenses may be deductible under
section 162(a) as ordinary and necessary
expenses paid or incurred in connection
with carrying on a taxpayer's trade or
business, including a trade or business as
an employee. Whether local lodging ex-
penses are paid or incurred in carrying on
a taxpayer's trade or business is deter-
mined under all the facts and circum-
stances. One factor is whether the tax-

payer incurs an expense because of a bona
fide condition or requirement of employ-
ment imposed by the taxpayer's employer.
Expenses paid or incurred for local lodg-
ing that is lavish or extravagant under the
circumstances or that primarily provides
an individual with a social or personal
benefit are not incurred in carrying on a
taxpayer's trade or business.

(b) Safe harbor for local lodging at
business meetings and conferences. An
individual's local lodging expenses will
be treated as ordinary and necessary busi-
ness expenses if-

(1) The lodging is necessary for the
individual to participate fully in or be
available for a bona fide business meeting,
conference, training activity, or other
business function;

(2) The lodging is for a period that does
not exceed five calendar days and does not
recur more frequently than once per cal-
endar quarter;

(3) If the individual is an employee, the
employee's employer requires the em-
ployee to remain at the activity or function
overnight; and

(4) The lodging is not lavish or extrav-
agant under the circumstances and does
not provide any significant element of per-
sonal pleasure, recreation, or benefit.

(c) Examples. The provisions of the
facts and circumstances test of paragraph
(a) of this section are illustrated by the
following examples. In each example the
employer and the employees meet all
other requirements (such as substantia-
tion) for deductibility of the expense and
for exclusion from income of the value of
the lodging as a working condition fringe
or of reimbursements under an account-
able plan.

Example 1. (i) Employer conducts a seven-day
training session for its employees at a hotel near
Employer's main office. The training is directly con-
nected with Employer's trade or business. Some
employees attending the training are traveling away
from home and some employees are not traveling
away from home. Employer requires all employees
attending the training to remain at the hotel over-
night for the bona fide purpose of facilitating the
training. Employer pays the costs of the lodging at
the hotel directly to the hotel and does not treat the
value as compensation to the employees.

(ii) Because the training is longer than five cal-
endar days, the safe harbor in paragraph (b) of this
section does not apply. However, the value of the
lodging may be excluded from income if the facts
and circumstances test in paragraph (a) of this sec-
tion is satisfied.

(iii) The training is a bona fide condition or
requirement of employment and Employer has a
noncompensatory business purpose for paying the
lodging expenses. Employer is not paying the ex-
penses primarily to provide a social or personal
benefit to the employees, and the lodging Employer
provides is not lavish or extravagant. If the employ-
ees who are not traveling away from home had paid
for their own lodging, the expenses would have been
deductible by the employees under section 162(a) as
ordinary and necessary business expenses. There-
fore, the value of the lodging is excluded from the
employees' income as a working condition fringe
under section 132(a) and (d).

(iv) Employer may deduct the lodging expenses,
including lodging for employees who are not travel-
ing away from home, as ordinary and necessary
business expenses under section 162(a).

Example 2. (i) The facts are the same as in
Example 1, except that the employees pay the cost of
their lodging at the hotel directly to the hotel, Em-
ployer reimburses the employees for the cost of the
lodging, and Employer does not treat the reimburse-
ment as compensation to the employees.

(ii) Because the training is longer than five cal-
endar days, the safe harbor in paragraph (b) of this
section does not apply. However, the reimbursement
of the expenses for the lodging may be excluded
from income if the facts and circumstances test in
paragraph (a) of this section is satisfied.

(iii) The training is a bona fide condition or
requirement of employment and Employer is reim-
bursing the lodging expenses for a noncompensatory
business purpose and not primarily to provide a
social or personal benefit to the employees and the
lodging Employer provides is not lavish or extrava-
gant. The employees incur the expenses in perform-
ing services for the employer. If Employer had not
reimbursed the employees who are not traveling
away from home for the cost of the lodging, the
expenses would have been deductible by the em-
ployees under section 162(a) as ordinary and neces-
sary business expenses. Therefore, the reimburse-
ments to the employees are made under an
accountable plan and are excluded from the employ-
ees' gross income.

(iv) Employer may deduct the lodging expense
reimbursements, including reimbursements for em-
ployees who are not traveling away from home, as
ordinary and necessary business expenses under sec-
tion 162(a).

Example 3. (i) Employer is a professional sports
team. Employer requires its employees (for example,
players and coaches) to stay at a local hotel the night
before a home game to conduct last minute training
and ensure the physical preparedness of the players.
Employer pays the lodging expenses directly to the
hotel and does not treat the value as compensation to
the employees.

(ii) Because the overnight stays occur more than
once per calendar quarter, the safe harbor in para-
graph (b) of this section does not apply. However,
the value of the lodging may be excluded from
income if the facts and circumstances test in para-
graph (a) of this section is satisfied.

(iii) The overnight stays are a bona fide condition
or requirement of employment and Employer has a
noncompensatory business purpose for paying the

lodging expenses. Employer is not paying the lodg-
ing expenses primarily to provide a social or per-
sonal benefit to the employees and the lodging Em-
ployer provides is not lavish or extravagant. If the
employees had paid for their own lodging, the ex-
penses would have been deductible by the employ-
ees under section 162(a) as ordinary and necessary
business expenses. Therefore, the value of the lodg-
ing is excluded from the employees' income as a
working condition fringe.

(iv) Employer may deduct the expenses for lodg-
ing the employees at the hotel as ordinary and nec-
essary business expenses under section 162(a).

Example 4. (i) Employer hires Employee, who
currently resides 500 miles from Employer's busi-
ness premises. Employer pays for temporary lodging
for Employee near Employer's business premises
while Employee searches for a residence.

(ii) Employer is paying the temporary lodging
expense primarily to provide a personal benefit to
Employee by providing housing while Employee
searches for a residence. Employer incurs the ex-
pense only as additional compensation and not for a
noncompensatory business purpose. If Employee
paid the temporary lodging expense, the expense
would not be an ordinary and necessary employee
business expense under section 162(a) because the
lodging primarily provides a personal benefit to Em-
ployee. Therefore, the value of the lodging is includ-
ible in Employee's gross income as additional com-
pensation.

(iii) Employer may deduct the lodging expenses
as ordinary and necessary business expenses under
section 162(a) and § 1.162-25T.

Example 5. (i) Employee normally travels two
hours each way between her home and her office.
Employee is working on a project that requires Em-
ployee to work late hours. Employer provides Em-
ployee with lodging at a hotel near the office.

(ii) Employer is paying the temporary lodging
expense primarily to provide a personal benefit to
Employee by relieving her of the daily commute to
her residence. Employer incurs the expense only as
additional compensation and not for a noncompen-
satory business purpose. If Employee paid the tem-
porary lodging expense, the expense would not be an
ordinary and necessary business expense under sec-
tion 162(a) because the lodging primarily provides a
personal benefit to Employee. Therefore, the value
of the lodging is includible in Employee's gross
income as additional compensation.

(iii) Employer may deduct the lodging expenses
as ordinary and necessary business expenses under
section 162(a) and § 1.162-25T.

Example 6. (i) Employer requires an employee to
be "on duty" each night to respond quickly to emer-
gencies that may occur outside of normal working
hours. Employees who work daytime hours each
serve a "duty shift" once each month in addition to
their normal work schedule. Emergencies that re-
quire the duty shift employee to respond occur reg-
ularly. Employer has no sleeping facilities on its
business premises and pays for a hotel room nearby
where the duty shift employee stays until called to
respond to an emergency.

(ii) Because an employee's expenses for lodging
while on the duty shift occur more frequently than
once per calendar quarter, the safe harbor in para-

graph (b) of this section does not apply. However,
the value of the lodging may be excluded from
income if the facts and circumstances test in para-
graph (a) of this section is satisfied.

(iii) The duty shift is a bona fide condition or
requirement of employment and Employer has a
noncompensatory business purpose for paying the
lodging expenses. Employer is not providing the
lodging to duty shift employees primarily to provide
a social or personal benefit to the employees and the
lodging Employer provides is not lavish or extrava-
gant. If the employees had paid for their lodging, the
expenses would have been deductible by the em-
ployees under section 162(a) as ordinary and neces-
sary business expenses. Therefore, the value of the
lodging is excluded from the employees' income as
a working condition fringe.

(iv) Employer may deduct the lodging expenses
as ordinary and necessary business expenses under
section 162(a).

(d) Effective/applicability date. This
section applies to expenses paid or in-
curred on or after October 1, 2014. How-
ever, taxpayers may apply these regula-
tions to local lodging expenses that are
paid or incurred in taxable years for which
the period of limitation on credit or refund
under section 6511 has not expired.

Par. 3. In § 1.262-1, paragraph (b)(5) is
revised to read as follows:

§ 1.262-1 Personal, living, and family
expenses.

* * * * *

(b) * * *

(5) Expenses incurred in traveling
away from home (which include transpor-
tation expenses, meals, and lodging) and
any other transportation expenses are not
deductible unless they qualify as expenses
deductible under section 162 (relating to
trade or business expenses), section 170
(relating to charitable contributions), sec-
tion 212 (relating to expenses for produc-
tion of income), section 213 (relating to
medical expenses), or section 217 (relat-
ing to moving expenses), and the regula-
tions under those sections. The taxpayer's
costs of commuting to his place of busi-
ness or employment are personal expenses
and do not qualify as deductible expenses.
For expenses paid or incurred before Oc-
tober 1, 2014, a taxpayer's expenses for
lodging when not traveling away from
home (local lodging) are nondeductible
personal expenses. However, taxpayers
may deduct local lodging expenses that
qualify under section 162 and are paid or
incurred in taxable years for which the
period of limitation on credit or refund

under section 6511 has not expired. For
expenses paid or incurred on or after Oc-
tober 1, 2014, a taxpayer's local lodging
expenses are personal expenses and are
not deductible unless they qualify as de-
ductible expenses under section 162. Ex-
cept as permitted under section 162 or
212, the costs of a taxpayer's meals not
incurred in traveling away from home are
nondeductible personal expenses.

* * * * *

Heather C. Maloy
Acting Deputy Commissioner for
Services and Enforcement.

Approved July 11, 2014.

Mark J. Mazur
Assistant Secretary of the Treasury
(Tax Policy).

(Filed by the Office of the Federal Register on September 9,
2014, 8:45 a.m., and published in the issue of the Federal
Register for October 1, 2014, 79 F.R. 59112)

Section 9831 .- General
Exceptions
T.D. 9697

DEPARTMENT OF THE
TREASURY

Internal Revenue Service
26 CFR Part 54

DEPARTMENT OF LABOR
Employee Benefits Security
Administration
29 CFR Part 2590

DEPARTMENT OF HEALTH
AND HUMAN SERVICES
CMS-9946-F
45 CFR Part 146

Amendments to Excepted
Benefits

AGENCIES:

Internal Revenue Service, Department of
the Treasury; Employee Benefits Security
Administration, Department of Labor;

Centers for Medicare & Medicaid Services,
Department of Health and Human Services.

ACTION: Final rules.

SUMMARY: This document contains fi-
nal regulations that amend the regulations
regarding excepted benefits under the Em-
ployee Retirement Income Security Act of
1974, the Internal Revenue Code (the
Code), and the Public Health Service Act.
Excepted benefits are generally exempt
from the health reform requirements that
were added to those laws by the Health
Insurance Portability and Accountability
Act and the Patient Protection and Afford-
able Care Act. In addition, eligibility for
excepted benefits does not preclude an
individual from eligibility for a pre-
mium tax credit under section 36B of
the Code if an individual chooses to
enroll in coverage under a Qualified
Health Plan through an Affordable In-
surance Exchange. These regulations fi-
nalize some but not all of the proposed
rules with minor modifications; addi-
tional guidance on limited wraparound
coverage is forthcoming.

DATES: Effective Date. These final reg-
ulations are effective on December 1,
2014 ..

Applicability Date. These final regula-
tions apply to group health plans and
group health insurance issuers for plan
years beginning on or after January 1,
2015.

## FOR FURTHER INFORMATION

CONTACT: Amy Turner or Beth Baum,
Employee Benefits Security Administra-
tion, Department of Labor, at (202) 693-
8335; Karen Levin, Internal Revenue Ser-
vice, Department of the Treasury, at (202)
317-5500; Jacob Ackerman, Centers for

Medicare & Medicaid Services, Depart-
ment of Health and Human Services, at
(301) 492-4179.

Customer Service Information: Indi-
viduals interested in obtaining information
from the Department of Labor concerning
employment-based health coverage laws,
may call the EBSA Toll-Free Hotline at
1-866-444-EBSA (3272) or visit the Depart-
ment of Labor's website (http://www.dol.
gov/ebsa). In addition, information from
HHS on private health insurance for con-
sumers can be found on the Centers for
Medicare & Medicaid Services (CMS)
website (www.cms.gov/cciio) and infor-
mation on health reform can be found at
www.HealthCare.gov.

## SUPPLEMENTARY INFORMATION:

### I. Background

The Health Insurance Portability and
Accountability Act of 1996 (HIPAA),
Public Law 104-191, 110 Stat. 1936,
added title XXVII of the Public Health
Service Act (PHS Act), part 7 of the
Employee Retirement Income Security
Act of 1974 (ERISA), and chapter 100
of the Internal Revenue Code (the
Code), providing portability and nondis-
crimination provisions with respect to
health coverage. These provisions of the
PHS Act, ERISA, and the Code were
later augmented by other consumer pro-
tection laws, including the Mental
Health Parity Act of 1996,1 the Mental
Health Parity and Addiction Equity Act
of 2008,2 the Newborns' and Mothers'
Health Protection Act,3 the Women's
Health and Cancer Rights Act,4 the Ge-
netic Information Nondiscrimination
Act of 2008,5 the Children's Health In-

surance Program Reauthorization Act of
2009,6 Michelle's Law,7 and the Afford-
able Care Act.8

The Affordable Care Act reorganizes,
amends, and adds to the provisions of part
A of title XXVII of the PHS Act relating
to group health plans and health insurance
issuers in the group and individual mar-
kets. The term "group health plan" in-
cludes both insured and self-insured group
health plans.9 Section 715(a)(1) of ERISA
and section 9815(a)(1) of the Code, as
added by the Affordable Care Act, incor-
porate the provisions of part A of title
XXVII of the PHS Act into ERISA and
the Code to make them applicable to
group health plans and health insurance
issuers providing health insurance cover-
age in connection with group health plans.
The PHS Act sections incorporated by
these references are sections 2701 through
2728.

Sections 2722 and 2763 of the PHS
Act, section 732 of ERISA, and section
9831 of the Code provide that the require-
ments of title XXVII of the PHS Act, part
7 of ERISA, and chapter 100 of the Code,
respectively, generally do not apply to
excepted benefits. Excepted benefits are
described in section 2791 of the PHS Act,
section 733 of ERISA, and section 9832
of the Code.

The parallel statutory provisions estab-
lish four categories of excepted benefits.
The first category includes benefits that
are generally not health coverage10 (such
as automobile insurance, liability insur-
ance, workers compensation, and acciden-
tal death and dismemberment coverage).
The benefits in this category are excepted
in all circumstances. In contrast, the ben-
efits in the second, third, and fourth cate-
gories are types of health coverage but are

1Pub. L. 104-204, 110 Stat. 2944 (September 26, 1996).

2Pub. L. 110-343, 122 Stat. 3881 (October 3, 2008).

3Pub. L. 104-204, 110 Stat. 2935 (September 26, 1996).

4Pub. L. 105-277, 112 Stat. 2681-436 (October 21, 1998).

5Pub. L. 110-233, 122 Stat. 881 (May 21, 2008).

6Pub. L. 111-3, 123 Stat. 65 (February 4, 2009).

7Pub. L. 110-381, 122 Stat. 4081 (October 9, 2008).

8The Patient Protection and Affordable Care Act, Public Law 111-148, was enacted on March 23, 2010, and the Health Care and Education Reconciliation Act, Public Law 111-152, was
enacted on March 30, 2010. (These statutes are collectively known as the "Affordable Care Act".)

9The term "group health plan" is used in title XXVII of the PHS Act, part 7 of ERISA, and chapter 100 of the Code, and is distinct from the term "health plan," as used in other provisions
of title I of the Affordable Care Act. The term "health plan" does not include self-insured group health plans.

10See 62 FR 16894, 16903 (Apr. 8, 1997), which states that these benefits are generally not health insurance coverage.

excepted only if certain conditions are
met.

The second category of excepted ben-
efits is limited excepted benefits, which
may include limited-scope vision or den-
tal benefits, and benefits for long-term
care, nursing home care, home health
care, or community-based care. Section
2791(c)(2)(C) of the PHS Act, section
733(c)(2)(C) of ERISA, and section
9832(c)(2)(C) of the Code authorize the
Secretaries of Health and Human Services
(HHS), Labor, and the Treasury (collec-
tively, the Secretaries) to issue regulations
establishing other similar limited benefits
as excepted benefits. The Secretaries ex-
ercised this authority previously with re-
spect to certain health flexible spending
arrangements (health FSAs).11 To be ex-
cepted under this second category, the
statute (specifically, ERISA section
732(c)(1), PHS Act section 2722(c)(1),
and section 9831(c)(1) of the Code) pro-
vides that limited benefits must either: (1)
be provided under a separate policy, cer-
tificate, or contract of insurance; or (2)
otherwise not be an integral part of a
group health plan, whether insured or self-
insured.

The third category of excepted bene-
fits, referred to as “noncoordinated ex-
cepted benefits," includes both coverage
for only a specified disease or illness
(such as cancer-only policies), and hospi-
tal indemnity or other fixed indemnity in-
surance. In the group market, these bene-
fits are excepted only if all of the
following conditions are met: (1) the ben-
efits are provided under a separate policy,
certificate, or contract of insurance; (2)
there is no coordination between the pro-
vision of such benefits and any exclusion
of benefits under any group health plan
maintained by the same plan sponsor; and
(3) the benefits are paid with respect to
any event without regard to whether

benefits are provided under any group
health plan maintained by the same plan
sponsor. 12

The fourth category of excepted bene-
fits is supplemental excepted benefits.
Such benefits must be: (1) coverage sup-
plemental to Medicare, coverage sup-
plemental to the Civilian Health and
Medical Program of the Department of
Veterans Affairs (CHAMPVA) or to
Tricare, or similar coverage that is sup-
plemental to coverage provided under a
group health plan; and (2) provided un-
der a separate policy, certificate, or con-
tract of insurance. 13

In 2004, the Departments of the Trea-
sury, Labor, and HHS published final reg-
ulations with respect to excepted benefits
(the HIPAA regulations).14 (Subsequent
references to the "Departments" include
all three Departments, unless the headings
or context indicate otherwise.)

On December 24, 2013, the Depart-
ments issued proposed regulations with
respect to the second category of excepted
benefits, limited excepted benefits (2013
proposed regulations).15 The 2013 pro-
posed regulations proposed to: (1) elimi-
nate the requirement that participants pay
an additional premium or contribution for
limited-scope vision or dental benefits to
qualify as benefits that are not an integral
part of the plan; (2) set forth the criteria
under which employee assistance pro-
grams (EAPs) constitute excepted bene-
fits; and (3) allow plan sponsors in limited
circumstances to offer, as excepted bene-
fits, coverage that wraps around certain
individual health insurance coverage. The
Departments stated that, until rulemaking
is finalized, through at least 2014, for pur-
poses of enforcing the provisions of title
XXVII of the PHS Act, part 7 of ERISA,
and chapter 100 of the Code, the Depart-
ments will consider dental and vision ben-
efits and EAP benefits meeting the condi-

tions of the 2013 proposed regulations to
qualify as excepted benefits.

After consideration of comments on
the 2013 proposed regulations, the De-
partments are publishing final regulations
regarding dental and vision benefits and
EAP benefits. The Departments also in-
tend to publish regulations that address
limited wraparound coverage in the fu-
ture, taking into account the extensive
comments received on this issue.

### II. Overview of the Final Regulations

#### A. Dental and Vision Benefits

Under the HIPAA regulations, vision
and dental benefits are excepted if they are
limited in scope (described as benefits,
substantially all of which are for treatment
of the eyes or mouth, respectively) and are
either: (1) provided under a separate pol-
icy, certificate, or contract of insurance; or
(2) are otherwise not an integral part of a
group health plan. While only insured
coverage may qualify under the first test,
both insured and self-insured coverage
may qualify under the second test. The
HIPAA regulations provided that benefits
are not an integral part of a plan if partic-
ipants have the right to elect not to receive
coverage for the benefits, and, if partici-
pants elect to receive coverage for such
benefits, they pay an additional premium
or contribution for the coverage. By con-
trast, health FSA benefits could qualify as
excepted benefits without any participant
contribution under the HIPAA regula-
tions. 16

As stated in the preamble to the 2013
proposed regulations, following enact-
ment of the Affordable Care Act, various
stakeholders asked the Departments to
amend the HIPAA regulations in order to
remove conditions for limited-scope vi-
sion and dental benefits to be treated as
excepted benefits. Specifically, some em-

1126 CFR 54.9831-1(c)(3)(v); 29 CFR 2590.732(c)(3)(v); 45 CFR 146.145(b)(3)(v).

1226 CFR 54.9831-1(c)(4); 29 CFR 2590.732(c)(4); 45 CFR 146.145(b)(4). See also Q7 in FAQs about Affordable Care Act Implementation Part XI, available at http://www.dol.gov/
ebsa/faqs/faq-acall.html.

1326 CFR 54.9831-1(c)(5); 29 CFR 2590.732(c)(5); 45 CFR 146.145(b)(5). The Departments issued additional guidance regarding supplemental health insurance coverage as excepted
benefits. See EBSA Field Assistance Bulletin No. 2007-04 (available at http://www.dol.gov/ebsa/pdf/fab2007-4.pdf); CMS Insurance Standards Bulletin 08-01 (available at http://
www.cms.gov/CCIIO/Resources/Files/Downloads/hipaa_08_01_508.pdf); and IRS Notice 2008-23 (available at http://www.irs.gov/irb/2008-07_IRB/ar09.html).

1469 FR 78720 (Dec. 30, 2004).

1578 FR 77632.

16Under the HIPAA regulations, benefits provided under a health FSA are only excepted for a class of participants if other group health coverage, not limited to excepted benefits, is made
available for the year to the class of participants; and the arrangement is structured so that the maximum benefit payable to any participant in the class for a year does not exceed an amount
specified in the regulations.

ployers represented that, although their vi-
sion and dental benefits complied with the
pre-Affordable Care Act requirements in
title XXVII of the PHS Act, part 7 of
ERISA, and chapter 100 of the Code (such
as the nondiscrimination and preexisting
condition exclusion provisions), compli-
ance with certain Affordable Care Act
provisions presented additional chal-
lenges. These employers argued that,
where employers are providing such ben-
efits on a self-insured basis and without a
contribution from employees, employers
should not be required to charge a nomi-
nal contribution from participants simply
for the benefits to qualify as excepted ben-
efits. In some cases, the cost of collecting
the nominal contribution would be greater
than the contribution itself. Moreover,
they pointed out that employers providing
dental and vision benefits through a sepa-
rate insurance policy are not required to
charge a participant any premium or con-
tribution in order for the dental or vision
benefits to be considered excepted bene-
fits. Similarly, consumer groups argued
that, if an employer offers primary group
health coverage that is treated as unafford-
able under the Code, but offers limited-
scope vision or dental coverage, such
limited-scope vision or dental coverage
should qualify as excepted benefits so as
not to make such individuals ineligible to
receive a premium tax credit under section
36B of the Code if they enroll in coverage
under a Qualified Health Plan (QHP)
through an Affordable Insurance Ex-
change, or "Exchange" (also called a
Health Insurance Marketplace or Market-
place).

In response to these concerns, and to
achieve greater consistency between in-
sured and self-insured coverage, the 2013
proposed regulations proposed eliminat-
ing the requirement under the HIPAA reg-
ulations that participants pay an additional
premium or contribution for limited-scope
vision or dental benefits to qualify as ben-
efits that are not an integral part of a plan
(and therefore to qualify as excepted ben-
efits).

The Departments invited comments on
this approach. Many comments supported
the concept of achieving greater consis-
tency regarding the excepted benefits re-

quirements for dental and vision benefits
between insured and self-insured plans.
One comment argued that the proposal
undermined the inclusion of pediatric vi-
sion and dental coverage as an essential
health benefit. Other comments requested
clarification as to whether separately-
administered and stand-alone dental and
vision benefits offered separate from, or
without a connection to, a primary plan
could qualify as excepted benefits.

Consistent with the 2013 proposed reg-
ulations, these final regulations eliminate
the requirement under the HIPAA regula-
tions that participants pay an additional
premium or contribution for limited-scope
vision or dental benefits to qualify as ex-
cepted benefits. As explained in the pre-
amble to the 2013 proposed regulations,
without this change, an employer that es-
tablishes or maintains a self-insured plan
could be required to charge a nominal
contribution from participants simply for
limited-scope vision and dental benefits to
qualify as excepted benefits and, in some
cases, the cost of collecting the nominal
contribution would be greater than the
contribution itself. In addition, if an em-
ployer offers primary group health cover-
age that is unaffordable to individuals, but
limited-scope vision or dental coverage,
without this modification, accepting the
vision or dental coverage could make such
individuals ineligible to receive a pre-
mium tax credit under section 36B of the
Code if they enroll in coverage under a
QHP through the Exchange.

In addition, it is the Departments' view
that the final regulations do not undermine
the inclusion of pediatric vision or dental
coverage as essential health benefits. The
requirement that issuers in the small group
market offer coverage of essential health
benefits is not changed, and that rule does
not apply to large or self-insured plans.
Moreover, PHS Act section 2711 (as in-
corporated into ERISA by section 715 and
the Code by section 9815) allows self-
insured plans to choose any definition of
essential health benefits that is authorized
by the Secretary of HHS for purposes of
the prohibition on lifetime or annual dol-
lar limits on essential health benefits.17

These final regulations clarify that
limited-scope vision or dental benefits do

not have to be offered in connection with
a separate offer of major medical or "pri-
mary" group health coverage under the
plan, in order to meet the statutory crite-
rion that such benefits are "otherwise not
an integral part of the plan." To meet this
criterion, limited-scope vision or dental
benefits can be provided without connec-
tion to a primary plan, or the limited-
scope vision or dental benefits can be of-
fered separately from the major medical
or "primary" coverage under the plan (as
described in these final regulations). Un-
der the 2013 proposed regulations, in or-
der to satisfy the statutory excepted ben-
efits criterion that such benefits cannot
otherwise be "an integral part of the plan,"
participants must be able to decline cov-
erage. These final regulations provide that
this criterion is satisfied if participants
may decline coverage or the claims for the
benefits are administered under a contract
separate from claims administration for
any other benefits under the plan.

While coverage for long-term care
benefits is not the focus of this rule, such
benefits are also subject to the "not an
integral part of a group health plan" stan-
dard in order to be classified as excepted
benefits. Accordingly, the revisions dis-
cussed in this section of the preamble
also apply to coverage of long-term care
benefits.

#### B. Employee Assistance Programs

EAPs are typically programs offered
by employers that can provide a wide-
ranging set of benefits to address circum-
stances that might otherwise adversely af-
fect employees' work and health. Benefits
may include referral services and short-
term substance use disorder or mental
health counseling, as well as financial
counseling and legal services. They are
typically available free of charge to em-
ployees and are often provided through
third-party vendors. Benefits for medical
care provided through an EAP would gen-
erally be considered group health plan
coverage (and, therefore, minimum essen-
tial coverage), which would generally be
subject to the HIPAA and Affordable
Care Act market reform requirements
(and could make individuals receiving

17See CMS, Frequently Asked Questions on Essential Health Benefits Bulletin, Q10 (February 17, 2012) http://www.cms.gov/CCIIO/Resources/Files/Downloads/ehb-faq-508.pdf.

benefits under an EAP ineligible to re-
ceive a premium tax credit under section
36B of the Code if they enroll in coverage
under a QHP through the Exchange), un-
less the EAP meets the criteria for being
excepted benefits.

Since enactment of the Affordable
Care Act, various stakeholders have asked
the Departments to treat EAPs as excepted
benefits for reasons analogous to the ar-
guments described above with respect to
vision and dental benefits. Specifically,
some employers represented that compli-
ance with the prohibition on annual dollar
limits could be problematic as such bene-
fits are typically very limited, and that
EAPs generally are intended to provide
benefits in addition to those provided un-
der other group health plans sponsored by
employers. Moreover, consumer groups
have represented that EAPs with very lim-
ited benefits, which may be the only cov-
erage offered to employees, could make
such employees ineligible to receive a
premium tax credit under section 36B of
the Code if they enroll in coverage under
a QHP through the Exchange. At the same
time, the Departments recognize that no
universal definition exists for EAPs, and
are concerned that employers not act to
shift primary coverage to a separate "EAP
plan," exempt from the consumer protec-
tion provisions of title XXVII of the PHS
Act, part 7 of ERISA, and chapter 100 of
the Code, including the mental health par-
ity provisions.18

In guidance issued on September 13,
2013, the Departments stated their intent
to amend the excepted benefits regulations
with respect to EAPs.19 The guidance also
provided transition relief, stating, “[u]ntil
rulemaking is finalized, through at least
2014, the Departments will consider an
employee assistance program or EAP to
constitute excepted benefits only if the
employee assistance program or EAP
does not provide significant benefits in the

nature of medical care or treatment. For
this purpose, employers may use a reason-
able, good faith interpretation of whether
an employee assistance program or EAP
provides significant benefits in the nature
of medical care or treatment."

The 2013 proposed regulations set
forth criteria for an EAP to qualify as
excepted benefits beginning in 2015. Un-
der the 2013 proposed regulations, bene-
fits provided under EAPs are excepted if
four criteria are met. First, the program
cannot provide significant benefits in the
nature of medical care. The Departments
invited comments on how to define "sig-
nificant." For example, the Departments
requested comments as to whether a pro-
gram that provides no more than 10 out-
patient visits for mental health or sub-
stance use disorder counseling, an annual
wellness checkup, immunizations, and di-
abetes counseling, with no inpatient care
benefits, should be considered to provide
significant benefits in the nature of medi-
cal care.20

The second proposed criterion for an
EAP to constitute excepted benefits under
the 2013 proposed regulations is that its
benefits cannot be coordinated with bene-
fits under another group health plan. The
Departments outlined three conditions to
meet this proposed criterion: (i) partici-
pants in the separate group health plan
must not be required to exhaust benefits
under the EAP (making the EAP a “gate-
keeper") before an individual is eligible
for benefits under the other group health
plan; (ii) participant eligibility for benefits
under the EAP must not be dependent on
participation in another group health plan;
and (iii) benefits under the EAP must not
be financed by another group health plan.

The third proposed criterion for an
EAP to constitute excepted benefits under
the 2013 proposed regulations is that no
employee premiums or contributions be
required to participate in the EAP. The

fourth proposed criterion is that there is no
cost sharing under the EAP.

The criteria in the 2013 proposed reg-
ulations were intended to ensure that em-
ployers are able to continue offering EAPs
as supplemental benefits to other cover-
age, and to ensure that in circumstances in
which an EAP with limited benefits is the
only coverage, or the only affordable cov-
erage provided to an employee, that the
coverage does not unreasonably disqual-
ify an employee from potential eligibility
to receive a premium tax credit under sec-
tion 36B of the Code if the employee
enrolls in coverage under a QHP through
the Exchange. The Departments requested
comments on whether the criteria pro-
posed are sufficient to prevent the poten-
tial for abuse, including the evasion of
compliance with the mental health parity
provisions, and whether different or addi-
tional standards should be included.

The Departments received a number of
comments relating to the treatment of
EAPs as excepted benefits. While the
comments generally supported treating
EAPs as excepted benefits, there were
many suggestions for clarifying or modi-
fying the specific requirements in the
2013 proposed regulations for EAPs to
constitute excepted benefits. In particular,
many comments included suggestions for
clarifying what is meant by significant
benefits in the nature of medical care.
Most of these comments raised concerns
about the suggestion in the preamble to
propose using numerical limits on the
number of visits.

Some comments requested that EAPs
be allowed to provide wellness and dis-
ease management programs, provided
such programs do not provide significant
benefits in the nature of medical care.
However, treating wellness programs as
excepted benefits by including them in an
EAP would circumvent consumer protec-
tions contained in the statutory standards

18The mental health parity provisions are included in PHS Act section 2726, ERISA section 712, and Code section 9812. See also final regulations on mental health parity, published at
78 FR 68239 (November 13, 2013).

19 See IRS Notice 2013-54 (available at http://www.irs.gov/pub/irs-drop/n-13-54.pdf) and DOL Technical Release 2013-03 (available at http://www.dol.gov/ebsa/newsroom/tr13-03.html),
Q&A 9. See also CMS Insurance Standards Bulletin-Application of Affordable Care Act Provisions to Certain Healthcare Arrangements (available at http://www.cms.gov/CCIIO/Resources/
Regulations-and-Guidance/Downloads/cms-hra-notice-9-16-2013.pdf).

20Other examples of EAPs that do not provide significant benefits in the nature of medical care, discussed in IRS Notice 2004-50 Q&A-10 include (1) an EAP with benefits that consist
primarily of free or low-cost confidential short-term counseling (which could address substance abuse, alcoholism, mental health or emotional disorders, financial or legal difficulties, and
dependent care needs ) to identify an employee's problem that may affect job performance and, when appropriate, referrals to an outside organization, facility or program to assist the
employee in resolving the problem; and (2) a wellness program that provides a wide-range of education and fitness services (also including sports and recreation activities, stress management,
and health screenings) designed to improve the overall health of the employees and prevent illness, where any costs charged to the individual for participating in the services are separate
from the individual's coverage under the health plan.

for wellness programs under section
2705(j) of the PHS Act as enacted by the
Affordable Care Act. This suggestion is
not adopted in these final regulations.

Several comments opposed the prohi-
bition in the 2013 proposed regulations on
an EAP being financed by the other group
health plan to qualify as excepted benefits.
In particular, the comments noted that of-
ten the EAP and the group health plan are
financed by a single payment or otherwise
combined, and the requirement would re-
sult in disruptions of existing commercial
arrangements. Moreover, these comments
noted, the other requirements sufficiently
protected against inappropriate coordina-
tion of the EAP benefits with the benefits
of the other group health plan. In addition,
there were a number of comments con-
cerning EAPs that were beyond the scope
of the 2013 proposed regulations.

After consideration of the comments,
the Departments are finalizing the pro-
posal, with one modification related to
financing, described below.21 As with the
2013 proposed regulations, these final reg-
ulations provide that, for an EAP to con-
stitute excepted benefits, the EAP must
satisfy four requirements.

The first requirement of the 2013 pro-
posed regulations and these final regula-
tions is that the EAP does not provide
significant benefits in the nature of medi-
cal care. For this purpose, the amount,
scope, and duration of covered services
are taken into account. For example, an
EAP that provides only limited, short-
term outpatient counseling for substance
use disorder services (without covering
inpatient, residential, partial residential or
intensive outpatient care) without requir-
ing prior authorization or review for med-
ical necessity does not provide significant
benefits in the nature of medical care. At
the same time, a program that provides
disease management services (such as lab-
oratory testing, counseling, and prescrip-
tion drugs) for individuals with chronic
conditions, such as diabetes, does provide
significant benefits in the nature of medi-
cal care. The Departments may, through

guidance, provide additional clarification
in the future regarding when a program
provides significant benefits in the nature
of medical care.

The second requirement of these final
regulations is that for an EAP to constitute
excepted benefits, its benefits cannot be
coordinated with the benefits under an-
other group health plan. This requirement
has two elements: (1) participants in the
other group health plan must not be re-
quired to use and exhaust benefits under
the EAP (making the EAP a "gatekeeper")
before an individual is eligible for benefits
under the other group health plan; and (2)
participant eligibility for benefits under
the EAP must not be dependent on partic-
ipation in another group health plan. In
response to comments, these final regula-
tions do not include the requirement set
forth in the 2013 proposed regulations that
EAP benefits cannot be financed by an-
other group health plan in order to qualify
as excepted benefits.

The third requirement of the 2013 pro-
posed regulations and these final regula-
tions for EAPs to constitute excepted ben-
efits is that no employee premiums or
contributions may be required as a condi-
tion of participation in the EAP. Finally,
as with the 2013 proposed regulations, the
final regulations provide that an EAP that
constitutes excepted benefits may not im-
pose any cost-sharing requirements.

#### C. Applicability Date and Reliance

In the preamble to the 2013 proposed
regulations, the Departments stated that,
until rulemaking is finalized, through at
least 2014, for purposes of enforcing the
provisions of title XXVII of the PHS Act,
part 7 of ERISA, and chapter 100 of the
Code, the Departments will consider den-
tal and vision benefits, and EAP benefits,
meeting the conditions of the 2013 pro-
posed regulations to qualify as excepted
benefits and that, to the extent final regu-
lations or other guidance with respect to
vision or dental benefits or EAPs is more
restrictive on plans and issuers than the
2013 proposed regulations, the final regu-

lations or other guidance will not be ef-
fective prior to January 1, 2015. These
final regulations apply to group health
plans and group health insurance issuers
for plan years beginning on or after Jan-
uary 1, 2015. They do not apply to health
insurance issuers offering individual
health insurance coverage. Until the appli-
cability date of these final regulations, the
Departments will consider dental and vi-
sion benefits and EAP benefits meeting
the conditions of the 2013 proposed reg-
ulations or these final regulations to qual-
ify as excepted benefits.

### III. Economic Impact and Paperwork Burden

A. Summary - Department of Labor
and Department of Health and Human
Services

As stated above, these final regulations
eliminate the requirement under the
HIPAA regulations that participants pay
an additional premium or contribution for
limited-scope vision or dental benefits to
qualify as excepted benefits, and set forth
four requirements for an EAP to constitute
excepted benefits.

B. Executive Order 12866 -
Department of Labor and Department of
Health and Human Services

OMB has determined that this regula-
tory action is significant within the mean-
ing of section 3(f)(4) of the Executive
Order, and the Departments accordingly
provide the following assessment of its
potential benefits and costs. The Depart-
ments expect the impact of these final
regulations to be limited.

Specifically, with respect to vision and
dental benefits, the final regulations allow
group health plans to offer dental and vi-
sion benefits to employees without charg-
ing a premium or contribution. As stated
earlier in the preamble, this eliminates a
difference that would otherwise exist be-
tween insured and self-insured coverage.
With respect to EAPs, the final regulations
clarify the conditions that be must be sat-

21 In the 2013 proposed regulations, the requirements regarding EAPs were proposed in paragraph (c)(3)(vii) of 26 CFR 54.9831-1, 29 CFR 2590.732, and 45 CFR 146.145. However, HHS
regulations published on October 30, 2013 and effective December 30, 2013 redesignated 45 CFR 146.145(c) as paragraph (b) (78 FR at 65092). Additionally, because these regulations
are finalizing only the requirements related to dental and vision benefits and EAP benefits, these final regulations have been renumbered so that the requirements regarding EAPs are now
contained in paragraph (c)(3)(vi) of 26 CFR 54.9831-1 and 29 CFR 2590.732, and in paragraph (b)(3)(vi) of 45 CFR 146.145. As stated earlier in this preamble, the Departments also intend
to publish regulations that address limited wraparound coverage in the future, taking into account the extensive comments received on this issue. Those provisions are intended to be codified
in paragraph (c)(3)(vii) of 26 CFR 54.9831-1 and 29 CFR 2590.732, and in paragraph (b)(3)(vii) of 45 CFR 146.145.

isfied for such benefits to constitute ex-
cepted benefits, which are not subject to
the group market requirements under the
PHS Act, ERISA, and the Code.

Some employers represented to the De-
partments that compliance with the Af-
fordable Care Act presented challenges
for their limited-scope vision and dental
benefits and EAPs. The clarifications pro-
vided in these final regulations will benefit
employees by ensuring continued access
to these benefits. The Departments expect
these final regulations to have some costs,
but these costs will be limited because the
Departments expect the primary result of
the final regulations will be that employ-
ers providing limited-scope dental and vi-
sion and EAP benefits will continue to
provide such benefits and that the number
of employers who will begin providing
such benefits for the first time will be
small.

#### C. Regulatory Flexibility Act - Department of Labor and Department of Health and Human Services

The Regulatory Flexibility Act (5
U.S.C. 601 et seq.) (RFA) imposes certain
requirements with respect to Federal rules
that are subject to the notice and comment
requirements of section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. 551
et seq.) and that are likely to have a sig-
nificant economic impact on a substantial
number of small entities. Unless an
agency certifies that a proposed rule is not
likely to have a significant economic im-
pact on a substantial number of small en-
tities, section 603 of RFA requires that the
agency present an initial regulatory flexi-
bility analysis at the time of the publica-
tion of the notice of proposed rulemaking
describing the impact of the rule on small
entities and seeking public comment on
such impact. Small entities include small
businesses, organizations and governmen-
tal jurisdictions.

For purposes of the RFA, the Depart-
ments continue to consider a small entity
to be an employee benefit plan with fewer
than 100 participants. The basis for this
definition is found in section 104(a)(2) of
the act, which permits the Secretary of
Labor to prescribe simplified annual re-
ports for pension plans that cover fewer
than 100 participants. Pursuant to the au-

thority of section 104(a)(3), the Department
of Labor has previously issued at 29 CFR
2520.104-20, 2520.104-21, 2520.104-41,
2520.104-46 and 2520.104b-10 certain
simplified reporting provisions and lim-
ited exemptions from reporting and dis-
closure requirements for small plans, in-
cluding unfunded or insured welfare plans
covering fewer than 100 participants and
satisfying certain other requirements.

Further, while some large employers
may have small plans, in general small
employers maintain most small plans.
Thus, the Departments believe that assess-
ing the impact of these final regulations on
small plans is an appropriate substitute for
evaluating the effect on small entities. The
definition of small entity considered ap-
propriate for this purpose differs, how-
ever, from a definition of small business
that is based on size standards promul-
gated by the Small Business Adminis-
tration (13 CFR 121.201) pursuant to
the Small Business Act (15 U.S.C. 631
et seq.).

As noted above, the Departments ex-
pect the costs imposed by these regula-
tions to be limited for those employers
that provide dental, vision and EAP ben-
efits, and that they will not affect employ-
ers who do not provide such benefits. The
final regulations allow employers to de-
cide based on their own costs and benefits
what action to take. This is true for large
and small plans alike. Accordingly, the
Departments believe that these final regu-
lations do not have a significant economic
impact on a substantial number of small
entities. Accordingly, pursuant to sec-
tion 605(b) of the RFA, the Departments
hereby certify that these final regula-
tions will not have a significant eco-
nomic impact on a substantial number of
small entities.

#### D. Special Analyses-Department of the Treasury

For purposes of the Department of the
Treasury it has been determined that these
final regulations are not a significant reg-
ulatory action as defined in Executive Or-
der 12866, as supplemented by Executive
Order 13563. Therefore, a regulatory as-
sessment is not required. It has also been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.

chapter 5) does not apply to these final
regulations, and, because these final reg-
ulations do not impose a collection of
information on small entities, a Regula-
tory Flexibility Analysis under the Regu-
latory Flexibility Act (5 U.S.C. chapter 6)
is not required. Pursuant to section
7805(f) of the Code, these final regula-
tions have been submitted to the Small
Business Administration for comment on
its impact on small business.

#### E. Unfunded Mandates Reform Act

For purposes of the Unfunded Man-
dates Reform Act of 1995 (2 U.S.C. 1501
et seq.), as well as Executive Order 12875,
these final regulations do not include any
Federal mandate that may result in expen-
ditures by State, local, or tribal govern-
ments, or the private sector, which may
impose an annual burden of $100 million
adjusted for inflation since 1995.

#### F. Federalism- Department of Labor and Department of Health and Human Services

Executive Order 13132 outlines funda-
mental principles of federalism. It requires
adherence to specific criteria by Federal
agencies in formulating and implementing
policies that have "substantial direct ef-
fects" on the States, the relationship be-
tween the national government and States,
or on the distribution of power and re-
sponsibilities among the various levels of
government. Federal agencies promulgat-
ing regulations that have these federalism
implications must consult with State and
local officials, and describe the extent of
their consultation and the nature of the
concerns of State and local officials in the
preamble to the final regulation.

In the Departments' view, the final reg-
ulations, by clarifying policy regarding
certain excepted benefits options that can
be designed by employers to support their
employees, would provide more certainty
to employers and others in the regulated
community as well as States and political
subdivisions regarding the treatment of
such arrangements under the PHS Act,
ERISA and the Code. Through the regular
course of outreach the Departments nor-
mally engage in with officials of States
(and political subdivisions), the Depart-

ments are aware of no special federalism
implications presented by these final reg-
ulations. The Departments will continue
to conduct regular outreach activities with
States.

### G. Congressional Review Act

These final regulations are subject to the
Congressional Review Act provisions of the
Small Business Regulatory Enforcement
Fairness Act of 1996 (5 U.S.C. 801 et seq.),
and will be transmitted to the Congress and
to the Comptroller General for review in
accordance with such provisions.

### IV. Statutory Authority

The Department of the Treasury regu-
lations are adopted pursuant to the author-
ity contained in sections 7805 and 9833 of
the Code.

The Department of Labor regulations are
adopted pursuant to the authority contained
in 29 U.S.C. 1027, 1059, 1135, 1161-1168,
1169, 1181-1183, 1181 note, 1185, 1185a,
1185b, 1191, 1191a, 1191b, and 1191c; sec.
101(g), Public Law 104-191, 110 Stat.
1936; sec. 401(b), Public Law 105-200, 112
Stat. 645 (42 U.S.C. 651 note); sec. 512(d),
Public Law 110-343, 122 Stat. 3765;
Public Law 110-460, 122 Stat. 5123;
Secretary of Labor's Order 1-2011, 77 FR
1088 (January 9, 2012).

The Department of Health and Human
Services regulations are adopted pursuant
to the authority contained in sections 2701
through 2763, 2791, and 2792 of the PHS
Act (42 U.S.C. 300gg through 300gg-63,
300gg-91, and 300gg-92), as amended.

* * * * *

#### 29 CFR Part 2590

Continuation coverage, Disclosure,
Employee benefit plans, Group health
plans, Health care, Health insurance,
Medical child support, Reporting and re-
cordkeeping requirements.

45 CFR Part 146

Health care, Health insurance, Report-
ing and recordkeeping requirements, and
State regulation of health insurance.

John Dalrymple
Deputy Commissioner for Services and
Enforcement, Internal Revenue Service.

Approved September 25, 2014.

Mark J. Mazur

Assistant Secretary of the Treasury
(Tax Policy).

Signed this 25th day of September, 2014.

Phyllis C. Borzi,
Assistant Secretary,Employee Benefits
Security Administration, Department of
Labor

Dated:

Marilyn Tavenner,
Administrator, Centers for Medicare &
Medicaid Services.

Dated:

Sylvia Burwell,
Secretary, Department of Health and
Human Services.

## DEPARTMENT OF THE TREASURY

### Internal Revenue Service

Accordingly, 26 CFR Part 54 is
amended as follows:

## PART 54-PENSION EXCISE TAXES

Paragraph 1. The authority citation for
part 54 continues to read, in part, as follows:
Authority: 26 U.S.C. 7805. * * *

Section 54.9831-1 is also issued under
26 U.S.C. 9833; * * *

Par. 2. Section 54.9831-1 is amended
by revising paragraphs (c)(3)(i) and
(c)(3)(ii), and adding paragraph (c)(3)(vi),
to read as follows:

§ 54.9831-1 Special rules relating to
group health plans.

* * * * *

(3) * * *

(i) In general. Limited-scope dental
benefits, limited-scope vision benefits, or
long-term care benefits are excepted if
they are provided under a separate policy,
certificate, or contract of insurance, or are
otherwise not an integral part of a group
health plan as described in paragraph
(c)(3)(ii) of this section. In addition, ben-

efits provided under a health flexible
spending arrangement are excepted bene-
fits if they satisfy the requirements of
paragraph (c)(3)(v) of this section. Fur-
thermore, benefits provided under an em-
ployee assistance program are excepted
benefits if they satisfy the requirements of
paragraph (c)(3)(vi) of this section.

(ii) Not an integral part of a group
health plan. For purposes of this para-
graph (c)(3), benefits are not an integral
part of a group health plan (whether the
benefits are provided through the same
plan, a separate plan, or as the only plan
offered to participants) if either paragraph
(c)(3)(ii)(A) or (B) are satisfied.

(A) Participants may decline coverage. For
example, a participant may decline coverage if
the participant can opt out of the coverage
upon request, whether or not there is a partic-
ipant contribution required for the coverage.

(B) Claims for the benefits are admin-
istered under a contract separate from
claims administration for any other bene-
fits under the plan.

* * * * *

(vi) Employee assistance programs.
Benefits provided under employee assis-
tance programs are excepted if they sat-
isfy all of the requirements of this para-
graph (c)(3)(vi).

(A) The program does not provide sig-
nificant benefits in the nature of medical
care. For this purpose, the amount, scope
and duration of covered services are taken
into account.

(B) The benefits under the employee
assistance program are not coordinated
with benefits under another group health
plan, as follows:

(1) Participants in the other group
health plan must not be required to use
and exhaust benefits under the employee
assistance program (making the employee
assistance program a gatekeeper) before
an individual is eligible for benefits under
the other group health plan; and

(2) Participant eligibility for benefits
under the employee assistance program
must not be dependent on participation in
another group health plan.

(C) No employee premiums or contribu-
tions are required as a condition of partici-
pation in the employee assistance program.

(D) There is no cost sharing under the
employee assistance program.

* * * * *

## Part III. Administrative, Procedural, and Miscellaneous

Guidance on Pension
Funding Stabilization under
the Highway and
Transportation Funding Act
of 2014 (HATFA)

Notice 2014-53

### I. PURPOSE

This notice provides guidance on the
changes to the funding stabilization rules
for single-employer pension plans under
the Internal Revenue Code (Code) and the
Employee Retirement Income Security
Act of 1974 (ERISA)1 that were made by
section 2003 of the Highway and Trans-
portation Funding Act of 2014 (HATFA),
Pub. L. No. 113-159, which was enacted
on August 8, 2014.

## II. BACKGROUND

Section 430 specifies the minimum
funding requirements that generally apply
to single-employer defined benefit pen-
sion plans pursuant to § 412. Section
430(h)(2) specifies interest rates that are
used for purposes of calculating the min-
imum required contribution. The interest
rates that are used for this purpose are a
set of three segment rates described in
§ 430(h)(2)(C)(i), (ii) and (iii), or, alter-
natively, a full yield curve described in
§ 430(h)(2)(D)(i).

Section 430(h)(2)(C)(iv), which was
added by the Moving Ahead for Progress
in the 21st Century Act of 2012 (MAP-
21), Pub. L. No.112-141, provides that
each of the three segment rates described
in § 430(h)(2)(C)(i), (ii) and (iii) for a plan
year is adjusted as necessary to fall within
a specified range that is determined based
on an average of the corresponding seg-
ment rates for the 25-year period ending
on September 30 of the calendar year pre-
ceding the first day of that plan year. For
plan years beginning in 2012, each seg-
ment rate is adjusted so that it is no less
than 90% and no more than 110% of the
corresponding 25-year average segment

rate. Under § 430(h)(2)(C)(iv)(II) as in
effect prior to its modification by HATFA,
this range was scheduled to gradually in-
crease for later plan years, so that the
segment rates for plan years beginning
after 2015 would have been no less than
70% and no more than 130% of the cor-
responding 25-year average segment
rates.

Notice 2012-61, 2012-42 I.R.B. 479,
provides guidance regarding the changes
to the minimum funding requirements and
related rules made by MAP-21. Notice
2012-61 includes general guidance relat-
ing to the application of the modified seg-
ment rates (referred to in Notice 2012-61
and this notice as the MAP-21 segment
rates), measurements for which the
modified segment rates do not apply,
transition issues, elections, reporting,
and other issues.

HATFA extends the period during
which the narrowest range around the 25-
year average segment rates applies for pur-
poses of determining the segment rates that
are used to apply §§ 430 and 436. Under the
modifications to § 430(h)(2)(C)(iv) made by
HATFA, for plan years beginning in 2012
through 2017, each segment rate is ad-
justed so that it is no less than 90% and no
more than 110% of the corresponding 25-
year average segment rate. For later plan
years, this range is scheduled to gradually
increase, so that the segment rates for plan
years beginning after 2020 are no less
than 70% and no more than 130% of the
corresponding 25-year average segment
rates. The segment rates as modified by
HATFA are referred to in this notice as
the HATFA segment rates.

Section 436 sets forth a series of limi-
tations on the accrual and payment of ben-
efits under an underfunded plan. These
limitations are applied during a plan year
based on the plan's adjusted funding tar-
get attainment percentage (AFTAP). Sec-
tion 2003(c) of HATFA provides that the
limitation on interest rates based on the
corresponding 25-year average segment
rates does not apply for purposes of
§ 436(d)(2) (relating to limitations on ac-

celerated benefit distributions for a plan
sponsored by an employer in bankruptcy).

Section 2003(e)(1) of HATFA provides
that the modifications to § 430(h)(2)(C)(iv)
apply with respect to plan years beginning
after December 31, 2012. Under section
2003(e)(2) of HATFA, a plan sponsor can
elect not to have the modifications to
§ 430 apply to any plan year beginning in
2013, either for all purposes or solely for
purposes of determining the plan's
AFTAP for that plan year (which is used
to apply the benefit restrictions under
§ 436).

This notice provides guidance on cer-
tain issues relating to HATFA. Notice
2012-61 continues to apply except to the
extent the statutory provisions have
changed.

## III. ELECTION TO DEFER USE OF HATFA SEGMENT RATES UNTIL THE 2014 PLAN YEAR

This section III sets forth the proce-
dures for elections made pursuant to sec-
tion 2003(e)(2) of HATFA that relate to a
plan year beginning in 2013.

A. Procedure for electing to defer use
of HATFA segment rates

Except as provided in section III.B of
this notice (which provides for a deemed
election to defer the use of the HATFA
segment rates for purposes of both §§ 430
and 436 based on the filing of Form 5500
under some circumstances), a plan spon-
sor elects to defer the use of the HATFA
segment rates, either for all purposes or
solely for purposes of § 436, until the first
plan year beginning on or after January 1,
2014, by providing written notice to the
enrolled actuary for the plan and to the
plan administrator. The notice must
specify the name of the plan, employer
identification number and plan number,
and whether the use of the HATFA seg-
ment rates is deferred for all purposes or
only for determination of the AFTAP
used to apply benefit restrictions under
§ 436.

The election described in this section
III.A is irrevocable, and must be made no

1Under section 101 of Reorganization Plan No. 4 of 1978 (43 FR 47713) and section 3002(c) of ERISA, the Secretary of the Treasury has interpretive jurisdiction over the subject matter
addressed in this notice for purposes of ERISA, as well as the Code. Thus, the provisions of this notice pertaining to §§ 430 and 436 of the Code also apply for purposes of sections 303
and 206(g) of ERISA.

later than the later of: (1) the deadline for
filing the Form 5500, Form 5500-SF or
Form 5500-EZ (including extensions) for
the plan year beginning in 2013; or (2)
December 31, 2014.

B. Deemed election to defer use of the
HATFA segment rates for purposes of
both §§ 430 and 436 through filing of
Form 5500, Form 5500-SF or Form
5500-EZ

With respect to a plan year beginning
in 2013, if, on or before December 31,
2014, the Form 5500, Form 5500-SF or
Form 5500-EZ is filed and the Schedule
SB reflects the MAP-21 segment rates,
then an election to defer use of the
HATFA segment rates for purposes of
both §§ 430 and 436 until the first plan
year beginning on or after January 1, 2014
is deemed made. If an election is deemed
made pursuant to this section III.B, the
election is permitted to be revoked by
filing, no later than December 31, 2014,
an amended Form 5500, Form 5500-SF,
or Form 5500-EZ2 for the plan year, with
a revised Schedule SB that reflects the use
of the HATFA segment rates. Alterna-
tively, the deemed election is permitted to
be revoked by either providing written
notice of the revocation (which includes
the name of the plan, employer identifica-
tion number and plan number) to the en-
rolled actuary for the plan and to the plan
administrator or by making the election
described in section III.A of this notice to
defer the use of HATFA segment rates only
for purposes of § 436, but only if (1) a
copy of the notice of the revocation or of
the election is e-mailed to the Pension
Benefit Guaranty Corporation (PBGC) at
revoke.deemed.HATFA.election@pbgc.gov
on or before December 31, 2014 (includ-
ing in the subject line of the e-mail the
plan sponsor's employer identification
number, the plan number, and the name of
the plan), and (2) at the time of the revo-
cation of the deemed election, the plan
sponsor is not a debtor in a case under title
11, United States Code, or similar federal
or state law. If the plan sponsor revokes
the deemed election using this alternative
method, then an amended Form 5500,
Form 5500-SF, or Form 5500-EZ for the

plan year must be filed no later than the
date on which Form 5500, Form 5500-SF
or Form 5500-EZ is timely filed for the
following plan year, and the revised
Schedule SB must reflect the use of the
HATFA segment rates.

If the plan sponsor revokes the deemed
election, the plan sponsor can also elect to
defer use of the HATFA segment rates
only for purposes of § 436 under the rules
of section III.A of this notice. An election
that is deemed made pursuant to this sec-
tion III.B is irrevocable if it is not revoked
in the time and manner set forth in this
section III.B.

## IV. SECTION 430 ELECTIONS AND REDESIGNATIONS AVAILABLE FOR THE 2013 PLAN YEAR

This section IV sets forth rules regard-
ing elections and designations relating to
the minimum funding requirements appli-
cable to the plan for the plan year begin-
ning in 2013. Any action otherwise per-
mitted in this section IV is not permitted
to the extent it (1) would result in the
imposition of benefit restrictions under
§ 436 for the plan year beginning in 2013
or 2014 that would otherwise not be im-
posed, or (2) would result in an unpaid
minimum required contribution for any
plan year beginning before 2014. The pro-
cedural and timing rules governing the
acts permitted under this section IV are in
section IV.E of this notice.

A. Reversal of an election to reduce
funding balances

A plan sponsor is permitted to elect to
reverse all or part of any election under
§ 1.430(f)-1(e) to reduce the plan's fund-
ing standard carryover balance or pre-
funding balance as of the first day of a
plan year beginning in 2013 if (i) the
HATFA segment rates apply for purposes
of determining the minimum required
contribution for that plan year, and (ii) the
reduction election was made on or before
September 30, 2014. It is expected that the
regulations under § 430(f) will be revised
to permit this exception to the general rule
that any election to reduce the plan's

funding standard carryover balance or
prefunding balance is irrevocable.

Under § 1.436-1(a)(5), there may have
been deemed elections to reduce the fund-
ing standard carryover balance or pre-
funding balance to avoid or remove ben-
efit restrictions under § 436 for the plan
year beginning in 2013. If the HATFA
segment rates are applied retroactively for
purposes of § 436 for a plan year begin-
ning in 2013, the election to reverse a
reduction under this section IV.A also ap-
plies to such a deemed election that was
made in conjunction with a certification of
the plan's AFTAP for the plan year. How-
ever, any reduction election that was made
to avoid or remove benefit restrictions un-
der § 436 during the period before the date
of the original AFTAP certification for the
2013 plan year cannot be reversed even if
the HATFA segment rates apply retroac-
tively for purposes of § 436 for the plan
year. This is because the AFTAP based on
the HATFA segment rates will not apply
to that portion of the plan year and there-
fore the reversal of any reduction election
that was made to avoid or remove benefit
restrictions under § 436 during that period
would result in the imposition of new re-
strictions.

B. Late elections to add excess contri-
butions for the 2013 plan year to the pre-
funding balance

If the HATFA segment rates apply for
purposes of determining the minimum re-
quired contribution for a plan year begin-
ning in 2013, the plan sponsor is permitted
to make (or increase) the election under
§ 1.430(f)-1(b)(1)(ii) to add excess con-
tributions for that plan year to the plan's
prefunding balance as of the first day of
the following plan year. It is expected that
the regulations under § 430(f) will be re-
vised to permit this extension of time to
make this election.

C. Redesignation of a section 436 con-
tribution

If the HATFA segment rates are ap-
plied retroactively for purposes of § 436
for a plan year beginning in 2013, any
section 436 contribution within the mean-
ing of § 1.436-1(j)(7) that was made in
connection with the certified AFTAP for

2Schedule SB is not required to be filed for plans for which Form 5500-EZ is filed and certain plans for which Form 5500-SF is filed. For these plans, the Schedule SB must be completed
(including being signed by the enrolled actuary) and delivered to the plan administrator, who must retain it. With respect to these plans, references in section III.B of this notice to the filing
of an amended Form 5500, Form 5500-SF, or Form 5500-EZ with a revised Schedule SB are applied by substituting the completion and delivery of the revised Schedule SB for the filing
of the amended form.

that plan year is applied toward the min-
imum required contribution for that plan
year to the extent the contribution is no
longer required to avoid or remove the
benefit restriction. However, no change is
permitted with respect to section 436 con-
tributions that were made in connection
with a presumed AFTAP before the
AFTAP was certified for the plan year.

### D. Redesignation of a contribution originally designated for 2013

Despite the general position of the IRS
that a contribution designated for a partic-
ular plan year cannot be redesignated to
apply for another plan year after the
Schedule SB is filed, the plan sponsor may
choose to redesignate all or a portion of a
contribution that was originally desig-
nated as applying to the plan year begin-
ning in 2013 to apply to a plan year that
begins in 2014. This rule applies only to
contributions made after the end of the
2013 plan year and on or before Septem-
ber 30, 2014 and applies only if the orig-
inal designation is on a Schedule SB for
the 2013 plan year that is filed on or
before December 31, 2014.3

### E. Procedural and timing rules

Any reversal of an election, election
made after the generally applicable dead-
line, or redesignation of contributions un-
der this section IV is made by the plan
sponsor by providing written notification
to the plan's enrolled actuary and plan
administrator, and must be made no later
than the last day of the plan year begin-
ning in 2014. The written notification
must specify the name of the plan, the
employer identification number and plan
number, and must set forth the relevant
details, including the specific dollar
amount involved. A conditional or
formula-based election does not satisfy
this requirement.

## V. REPORTING REQUIREMENTS IF THE HATFA SEGMENT RATES APPLY TO THE 2013 PLAN YEAR

With respect to the plan year beginning
in 2013, if the plan uses the segment rates
and the plan sponsor has not elected to
defer the use of the HATFA segment rates
in accordance with section III.A or III.B
of this notice, then the Schedule SB for

that plan year must reflect the use of the
HATFA segment rates.

## VI. APPLICATION OF § 436 AND RELATED RULES FOR A PLAN YEAR BEGINNING AFTER DECEMBER 31, 2012 AND BEFORE OCTOBER 1, 2014

This notice provides special rules relat-
ing to the application of the benefit restric-
tions under § 436 and related rules for a
plan year beginning after December 31,
2012 and before October 1, 2014 for a
plan for which the modifications made by
HATFA to § 430(h)(2)(C)(iv) are applied
for purposes of determining the plan's
AFTAP for the plan year. A plan year to
which this section VI applies is referred to
in this section VI as an applicable plan
year.

A. Presumptions apply based on prior
year AFTAP

The benefit restrictions under § 436 for
an applicable plan year are applied based
on the presumed AFTAP before the date,
if any, that the AFTAP is certified for that
applicable plan year. Thus, the application
of the HATFA segment rates does not
affect the application of the presumption
rules under § 436(h) for the first plan year
for which those rates apply to the plan for
purposes of § 436 (but affects the appli-
cation of those presumption rules for the
subsequent plan year).

B. Rules if first certification uses
HATFA segment rates

If the first AFTAP certification for an
applicable plan year (which may be a
range certification pursuant to § 1.436-
1(h)(4)(ii)) is made using the HATFA
segment rates, the benefit restrictions un-
der § 436 apply based on that AFTAP in
accordance with the rules of §§ 1.436-
1(g) and (h).

C. Rules if first certification uses
MAP-21 segment rates

If, on or before September 30, 2014,
the AFTAP for an applicable plan year is
certified using the MAP-21 segment rates,
the AFTAP for that applicable plan year
must be determined using the HATFA
segment rates. If the change in the AFTAP
using the HATFA segment rates rather
than the MAP-21 segment rates results in

a material change to the AFTAP, then the
AFTAP must be recertified. In such a
case, the plan sponsor can choose to apply
any resulting change in the application of
the benefit restrictions under § 436 either
(i) prospectively, as described in section
VI.D of this notice or (ii) retroactively to
the date that the AFTAP was originally
certified, as described in section VI.E of
this notice. If the HATFA segment rates
are applied to determine the certified
AFTAP for the plan year beginning in
2013, then the option to apply any change
in the application of § 436 as a result of
recertification of the AFTAP using the
HATFA segment rates prospectively is
not available for the plan year beginning
in 2014. For the first plan year for which
the HATFA segment rates apply for pur-
poses of § 436, if the AFTAP using the
HATFA segment rates is certified before
the end of the plan year, then in the ab-
sence of an affirmative election to apply
the changes retroactively as described in
section VI.E of this notice, the plan spon-
sor will be treated as having elected to
apply any changes prospectively as de-
scribed in section VI.D of this notice. All
plan operations and elections must be con-
sistent with this choice of whether to ap-
ply the AFTAP using the HATFA seg-
ment rates retroactively or prospectively,
and any plan operations that were incon-
sistent with this choice must be corrected
as described in section VI.G of this notice.

If any AFTAP certification for an ap-
plicable plan year using the MAP-21 seg-
ment rates is made after September 30,
2014, then the rules regarding a change in
the AFTAP set forth in § 1.436-
1(h)(4)(iii) and (iv) apply with respect to
the determination of the AFTAP for that
plan year that must be made using the
HATFA segment rates.

D. Prospective application of change in
benefit restrictions reflecting HATFA seg-
ment rates

If the AFTAP is certified for an appli-
cable plan year using the MAP-21 seg-
ment rates, then any subsequent change to
that certification (including a certification
based on the HATFA segment rates) is
subject to the rules regarding a change in

3With respect to a plan for which the Schedule SB need not be filed, as described in footnote 2 of this notice, the reference to filing of the Schedule SB is replaced by the completion and
delivery of the Schedule SB.

the AFTAP set forth in § 1.436-
1(h)(4)(iii) and (iv).

Section 1.436-1(h)(4)(iii) sets forth
rules relating to changes in certified
AFTAPs and provides a special rule that
deems a change in the AFTAP attributable
to certain events as "immaterial," even if
the change would otherwise be a material
change. The effect of having an event for
which the change in AFTAP is deemed
immaterial is that a plan administrator can
reflect the event on a prospective basis
beginning with the date of the event, pro-
vided that the AFTAP is recertified as
soon as practicable thereafter. It is ex-
pected that § 1.436-1(h)(4)(iii)(C) will be
amended to provide that additional events
can be added to the list of deemed imma-
terial events in guidance of general appli-
cability.

If (1) on or before September 30, 2014,
the AFTAP is certified for an applicable
plan year using the MAP-21 segment
rates, (2) a certification for that applicable
year is subsequently made using the
HATFA segment rates, and (3) the plan
sponsor does not choose to apply any
change in those restrictions retroactively
as described in section VI.E of this notice;
then the change in AFTAP attributable to
the use of the HATFA segment rates for
an applicable plan year under this section
VI.D is treated as a deemed immaterial
change. The date of the event is October
1, 2014 (or the date of the revised AFTAP
certification, if earlier). Accordingly, if
the plan sponsor chooses to apply any
changes in the § 436 restrictions prospec-
tively for an applicable plan year as de-
scribed in this section VI.D, any change in
benefit restrictions resulting from the up-
dated AFTAP determination using the
HATFA segment rates must be effective
as of the earlier of (1) October 1, 2014, or
(2) the date the AFTAP for the applicable
plan year is recertified using the HATFA
segment rates.

The requirement that the AFTAP be
recertified to reflect the HATFA segment
rates as soon as practicable after the event
giving rise to the deemed immaterial
change will not be satisfied if the recerti-
fication occurs later than December 31,
2014.

E. Retroactive application of change in
benefit restrictions reflecting HATFA seg-
ment rates

If (1) on or before September 30, 2014,
the AFTAP is certified for an applicable
plan year using the MAP-21 segment
rates, (2) a certification for that applicable
plan year is subsequently made using the
HATFA segment rates, and (3) the plan
sponsor elects to apply the AFTAP deter-
mined using the HATFA segment rates
retroactively as described in this section
VI.E; then the operations of the plan must
be conformed to that updated AFTAP for
the period beginning when the AFTAP for
the plan year was originally certified. In
addition, if the HATFA segment rates ap-
ply for purposes of determining the
AFTAP for the plan year beginning in
2013, then operations of the plan during
the plan year beginning in 2014 must be
conformed to apply the rules of § 1.436-
1(g) and (h) using the redetermined 2013
AFTAP as the AFTAP for the preceding
plan year, during the period beginning on
the first day of the plan year beginning in
2014 and ending when the AFTAP for
that plan year was originally certified.

F. Reversal of an election to reduce
funding balances and redesignation of
section 436 contributions for the 2014
plan year

Sections IV.A and IV.C of this notice
permit the reversal of an election to re-
duce a funding balance and the redesigna-
tion of a section 436 contribution for an
applicable plan year beginning in 2013.
Under this section VI.F, a reversal of an
election made on or before October 1,
2014 to reduce a funding balance or a
redesignation of a section 436 contribu-
tion made on or before October 1, 2014 is
permitted for the plan year beginning in
2014.

Any reversal of an election or redesig-
nation of a section 436 contribution under
this section VI.F is not permitted to the
extent it would result in the imposition of
benefit restrictions under § 436 for the
plan year beginning in 2014 that would
otherwise not be imposed. Accordingly, if
the plan year beginning in 2014 is the first
applicable plan year, any reduction elec-
tion that was made to avoid or remove
benefit restrictions under § 436 during the
period before the date of the original
AFTAP certification for that plan year
cannot be reversed. This is because the
AFTAP based on the HATFA segment
rates will not apply to that portion of the

plan year and therefore the reversal of any
reduction election that was made to avoid
or remove benefit restrictions under § 436
during that period would result in the im-
position of new restrictions. Similarly, if
the plan year beginning in 2014 is the first
applicable plan year, no change is permit-
ted with respect to section 436 contribu-
tions that were made in connection with a
presumed AFTAP before the AFTAP was
certified for the plan year.

G. Corrections

Once a plan's AFTAP for an applica-
ble plan year has been certified using the
HATFA segment rates, the plan adminis-
trator must take any corrective actions
necessary to conform plan operations to
this certified AFTAP, if applying this cer-
tified AFTAP would have changed the
application of the § 436 restrictions for the
period (1) beginning with the date of the
immaterial event described in section
VI.D of this notice (if the AFTAP certifi-
cation applying the HATFA segment rates
applies prospectively under section VI.D)
or (2) beginning with the date the AFTAP
for the year was first certified, as applica-
ble (if the AFTAP certification applying
the HATFA segment rates applies retro-
actively under section VI.E). If the plan
year beginning in 2013 is an applicable
plan year, the period for potential correc-
tion also includes the period during the
2014 plan year before the AFTAP for that
plan year beginning in 2014 was origi-
nally certified.

If the corrective actions described in
this section VI.G are taken to reflect the
application of the new certified AFTAP,
then the plan's operations are treated as
having been consistent with the provisions
of the plan document relative to the re-
quirements of § 436. For this purpose, the
provisions of the Employee Plans Com-
pliance Resolution System (EPCRS), as
set forth in Rev. Proc. 2013-12, 2013-4
I.R.B. 313, apply, except that a plan is
eligible for self-correction under sections
7, 8, and 9 of Rev. Proc. 2013-12 without
regard to the requirements of sections 4.03
(requiring a favorable IRS determination
letter) and 4.04 (requiring certain estab-
lished practices and procedures) of that
revenue procedure.

Consistent with § 1.436-1(a)(4)(iii), if
unpredictable contingent event benefits
due to an event occurring during a plan

year beginning in 2013 or 2014 are not
permitted to be paid because of restric-
tions under § 436(b), but are later permit-
ted to be paid as a result of a new certifi-
cation of the AFTAP for the plan year
reflecting the HATFA segment rates, then
those unpredictable contingent event ben-
efits must become payable, retroactive to
the period those benefits would have been
payable under the terms of the plan (other
than plan terms implementing the require-
ments of § 436(b)).

Consistent with § 1.436-1(a)(4)(iv), if
a plan amendment with an effective date
during a plan year beginning in 2013 or
2014 does not take effect because of the
limitations of § 436(c), but is later permit-
ted to take effect as a result of a new
certification of the AFTAP for the plan
year reflecting the HATFA segment rates,
then the plan amendment must automati-
cally take effect as of the first day of that
plan year (or, if later, the original effective
date of the amendment).

For any prohibited payment that was
not permitted to be paid during a plan year
beginning in 2013 or 2014 because of the
restrictions under § 436(d), but is permit-
ted to be paid as a result of a new certifi-
cation of the AFTAP reflecting the
HATFA segment rates, the plan has taken
adequate corrective action if it makes the
prohibited payment available to partici-
pants or beneficiaries who would have been
eligible for the prohibited payment (includ-
ing a prohibited payment that is available on
a restricted basis under § 436(d)(3)) on or
after the dates described in the first para-
graph of this section VI.G.

For any accruals that were not permit-
ted to accrue during a plan year beginning
in 2013 or 2014 because of restrictions
under § 436(e), but are permitted to accrue
as a result of a new certification of the
AFTAP reflecting the HATFA segment
rates, the plan has taken adequate correc-
tive action if it restores benefits that ac-
crue during the period that begins on the
date described in the first paragraph of this
section VI.G.

In the case of a participant or benefi-
ciary who, as a result of any of the
changes described in this section VI.G is
entitled to increased benefits, to benefits
payable at a special early retirement date,
or to benefits payable in a different form
of payment (and who elects such different

form of payment, with spousal consent, if
applicable), the required correction is to
provide the benefit payments in the in-
creased amount or other form of payment
commencing with a new prospective an-
nuity starting date. However, if payments
have already commenced, the correction
is to provide the participant with (1) future
benefit payments that are paid in the same
manner and amount as if the participant
had begun receiving the corrected pay-
ment at his or her original annuity starting
date, and (2) a make-up for past under-
payments. The make-up for past under-
payments is equal to the aggregate differ-
ence between the past payments actually
received and the amounts that would have
been received had the benefit commenced
in the correct form of payment at the
participant's original annuity starting date,
plus interest to the date of the correction (in
accordance with EPCRS), and may be paid
as either (i) a single-sum payment, or (ii) an
actuarially equivalent increase in the
amount of future benefit payments.

## VII. PAPERWORK REDUCTION ACT

The collections of information con-
tained in this notice have been reviewed
and approved by the Office of Manage-
ment and Budget in accordance with the
Paperwork Reduction Act (44 U.S.C.
§ 3507) under control number 1545-2095.

An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid OMB control number.

The collections of information in this
notice are in sections III, IV, and VI of
this notice. The collections of information
are required to implement the application
of the funding relief under section 2003 of
HATFA. The collections of information
are mandatory for those plan sponsors
making various elections when applying
the amendments made by HATFA to a
plan and any plan sponsor of a plan for
which the 2014 AFTAP was certified us-
ing MAP-21 segment rates.

For the collections in section III of this
notice (relating to the election and possi-
ble amendment of Schedule SB for the
2013 plan year), the estimated total num-
ber of respondents is 39,600 plans. The
estimated annual burden per respondent

varies from 15 minutes to 1 hour and 45
minutes, depending on individual circum-
stances, with an estimated average of 23
minutes. The estimated total annual re-
porting and/or recordkeeping burden is
15,200 hours.

For the collections in sections IV and
VI of this notice (relating to elections re-
garding the application of benefit restric-
tions under § 436), the estimated total
number of respondents is 37,000 plans.
The estimated annual burden per respon-
dent varies from 15 minutes to 45 min-
utes, depending on individual circum-
stances, with an estimated average of 37
minutes. The estimated total annual re-
porting and/or recordkeeping burden is
22,800 hours.

Estimates of the annualized cost to re-
spondents are not relevant, because each
collection of information in this notice is a
one-time collection.

Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by § 6103.

## VIII. DRAFTING INFORMATION

The principal authors of this notice are
Tonya B. Manning and Carolyn E. Zim-
merman of the Employee Plans, Tax Ex-
empt and Government Entities Division.
For further information regarding this no-
tice, please contact the Employee Plans
taxpayer assistance answering service at
1-877-829-5500 (a toll free number) or
e-mail Ms. Manning or Ms. Zimmerman
at RetirementPlanQuestions@irs.gov.

## Extension of Replacement Period for Livestock Sold on Account of Drought

### Notice 2014-60

SECTION 1. PURPOSE

This notice provides guidance regard-
ing an extension of the replacement period
under § 1033(e) of the Internal Revenue
Code for livestock sold on account of
drought in specified counties.

# SECTION 2. BACKGROUND

.01 Nonrecognition of Gain on Invol-
untary Conversion of Livestock. Section
1033(a) generally provides for nonrecog-
nition of gain when property is involun-
tarily converted and replaced with prop-
erty that is similar or related in service or
use. Section 1033(e)(1) provides that a
sale or exchange of livestock (other than
poultry) held by a taxpayer for draft,
breeding, or dairy purposes in excess of
the number that would be sold following
the taxpayer's usual business practices is
treated as an involuntary conversion if the
livestock is sold or exchanged solely on
account of drought, flood, or other
weather-related conditions.

.02 Replacement Period. Section
1033(a)(2)(A) generally provides that
gain from an involuntary conversion is
recognized only to the extent the amount
realized on the conversion exceeds the
cost of replacement property purchased
during the replacement period. If a sale or
exchange of livestock is treated as an in-
voluntary conversion under § 1033(e)(1)
and is solely on account of drought, flood,
or other weather-related conditions that
result in the area being designated as eli-
gible for assistance by the federal govern-
ment, § 1033(e)(2)(A) provides that the
replacement period ends four years after
the close of the first taxable year in which
any part of the gain from the conversion is
realized. Section 1033(e)(2)(B) provides
that the Secretary may extend this replace-
ment period on a regional basis for such
additional time as the Secretary deter-
mines appropriate if the weather-related
conditions that resulted in the area being
designated as eligible for assistance by the
federal government continue for more
than three years. Section 1033(e)(2) is ef-
fective for any taxable year with respect to
which the due date (without regard to ex-
tensions) for a taxpayer's return is after
December 31, 2002.

SECTION 3. EXTENSION OF
REPLACEMENT PERIOD UNDER
§ 1033(e)(2)(B)

Notice 2006-82, 2006-2 C.B. 529,
provides for extensions of the replacement
period under § 1033(e)(2)(B). If a sale or
exchange of livestock is treated as an in-
voluntary conversion on account of

drought and the taxpayer's replacement
period is determined under § 1033(e)(2)(A),
the replacement period will be extended
under § 1033(e)(2)(B) and Notice 2006-82
until the end of the taxpayer's first taxable
year ending after the first drought-free
year for the applicable region. For this
purpose, the first drought-free year for the
applicable region is the first 12-month pe-
riod that (1) ends August 31; (2) ends in or
after the last year of the taxpayer's 4-year
replacement period determined under
§ 1033(e)(2)(A); and (3) does not include
any weekly period for which excep-
tional, extreme, or severe drought is re-
ported for any location in the applicable
region. The applicable region is the
county that experienced the drought
conditions on account of which the live-
stock was sold or exchanged and all
counties that are contiguous to that
county.

A taxpayer may determine whether ex-
ceptional, extreme, or severe drought is
reported for any location in the applicable
region by reference to U.S. Drought Mon-
itor maps that are produced on a weekly
basis by the National Drought Mitigation
Center. U.S. Drought Monitor maps are
archived at http://droughtmonitor.unl.edu/
mapsanddata/maparchive.aspx.

In addition, Notice 2006-82 provides
that the Internal Revenue Service will
publish in September of each year a list of
counties, districts, cities, boroughs, census
areas or parishes (hereinafter "counties")
for which exceptional, extreme, or severe
drought was reported during the preceding
12 months. Taxpayers may use this list
instead of U.S. Drought Monitor maps
to determine whether exceptional, ex-
treme, or severe drought has been re-
ported for any location in the applicable
region.

The Appendix to this notice contains
the list of counties for which exceptional,
extreme, or severe drought was reported
during the 12-month period ending Au-
gust 31, 2014. Under Notice 2006-82, the
12-month period ending on August 31,
2014, is not a drought-free year for an
applicable region that includes any county
on this list. Accordingly, for a taxpayer
who qualified for a 4-year replacement
period for livestock sold or exchanged on
account of drought and whose replace-
ment period is scheduled to expire at the

end of 2014 (or, in the case of a fiscal year
taxpayer, at the end of the taxable year
that includes August 31, 2014), the re-
placement period will be extended under
§ 1033(e)(2) and Notice 2006-82 if the
applicable region includes any county on
this list. This extension will continue until
the end of the taxpayer's first taxable year
ending after a drought-free year for the
applicable region.

# SECTION 4. DRAFTING INFORMATION

The principal author of this notice is
Andrew Braden of the Office of Associate
Chief Counsel (Income Tax & Account-
ing). For further information regarding
this notice contact Mr. Braden on (202)
317-4725 (not a toll-free number).

# APPENDIX

Alabama
County of Henry.
Alaska
Boroughs of Denali, Fairbanks North
Star. Census Areas of Southeast Fair-
banks, Yukon-Koyukuk.
Arizona

Counties of Apache, Cochise, Co-
conino, Gila, Graham, Greenlee, La Paz,
Maricopa, Mohave, Navajo, Pima, Pinal,
Santa Cruz, Yavapai, Yuma.

Arkansas

Counties of Arkansas, Ashley, Brad-
ley, Calhoun, Chicot, Clark, Cleveland,
Columbia, Dallas, Desha, Drew, Grant,
Hempstead, Howard, Jefferson, Lafayette,
Lee, Lincoln, Little River, Lonoke,
Miller, Monroe, Nevada, Ouachita, Phil-
lips, Prairie, Pulaski, Sevier, Union.

California

Counties of Alameda, Alpine, Amador,
Butte, Calaveras, Colusa, Contra Costa,
Del Norte, El Dorado, Fresno, Glenn,
Humboldt, Imperial, Inyo, Kern, Kings,
Lake, Lassen, Los Angeles, Madera,
Marin, Mariposa, Mendocino, Merced,
Modoc, Mono, Monterey, Napa, Nevada,
Orange, Placer, Plumas, Riverside, Sacra-
mento, San Benito, San Bernardino, San
Diego, San Francisco, San Joaquin, San
Luis Obispo, San Mateo, Santa Barbara,
Santa Clara, Santa Cruz, Shasta, Sierra,
Siskiyou, Solano, Sonoma, Stanislaus,
Sutter, Tehama, Trinity, Tulare, Tuol-
umne, Ventura, Yolo, Yuba.

Colorado

Counties of Alamosa, Arapahoe,
Archuleta, Baca, Bent, Chaffee, Chey-
enne, Conejos, Costilla, Crowley, Custer,
Dolores, Douglas, Eagle, Elbert, El Paso,
Fremont, Garfield, Gunnison, Hinsdale,
Huerfano, Jackson, Jefferson, Kiowa, Kit
Carson, La Plata, Las Animas, Lincoln,
Logan, Mesa, Mineral, Moffat, Montezuma,
Montrose, Otero, Ouray, Park, Phillips,
Prowers, Pueblo, Rio Blanco, Rio Grande,
Routt, Saguache, San Juan, San Miguel,
Sedgwick, Teller, Weld, Yuma.

Florida

County of Jackson.
Georgia

Counties of Atkinson, Baker, Berrien,
Brooks, Calhoun, Clay, Clinch, Coffee,
Colquitt, Cook, Decatur, Dougherty,
Early, Echols, Grady, Irwin, Lanier,
Lowndes, Miller, Mitchell, Randolph,
Seminole, Thomas, Tift, Ware.

Hawaii

Counties of Hawaii, Kalawao, Maui.
Idaho

Counties of Ada, Adams, Bannock,
Bingham, Blaine, Boise, Bonneville,
Butte, Camas, Canyon, Caribou, Cassia,
Clark, Custer, Elmore, Franklin, Fremont,
Gem, Gooding, Idaho, Jefferson, Jerome,
Lemhi, Lincoln, Madison, Minidoka,
Oneida, Owyhee, Payette, Power, Twin
Falls, Valley, Washington.

Illinois

Counties of Adams, Bureau, Carroll,
Champaign, Christian, De Witt, Douglas,
Fulton, Hancock, Henderson, Henry,
Knox, Lee, Logan, McDonough, McLean,
Macon, Marshall, Mason, Menard, Mer-
cer, Moultrie, Ogle, Peoria, Piatt, Putnam,
Rock Island, Sangamon, Shelby, Stark,
Tazewell, Warren, Whiteside, Woodford.

Iowa

Counties of Adair, Adams, Appanoose,
Audubon, Benton, Boone, Buena Vista,
Calhoun, Carroll, Cass, Cedar, Clarke,
Clinton, Crawford, Dallas, Davis, Des
Moines, Greene, Guthrie, Hamilton, Har-
din, Harrison, Henry, Humboldt, Ida,
Iowa, Jackson, Jasper, Jefferson, Johnson,
Jones, Keokuk, Lee, Linn, Louisa, Lucas,
Madison, Mahaska, Marion, Marshall,
Mills, Monroe, Montgomery, Muscatine,
Pocahontas, Polk, Pottawattamie, Pow-
eshiek, Sac, Scott, Shelby, Story, Tama,
Union, Van Buren, Wapello, Warren,
Washington, Webster, Wright.

Kansas

Counties of Allen, Anderson, Barber,
Barton, Bourbon, Butler, Chase, Chautau-
qua, Cherokee, Cheyenne, Clark, Clay,
Cloud, Coffey, Comanche, Cowley,
Crawford, Decatur, Dickinson, Edwards,
Elk, Ellis, Ellsworth, Finney, Ford, Frank-
lin, Geary, Gove, Graham, Grant, Gray,
Greeley, Greenwood, Hamilton, Harper,
Harvey, Haskell, Hodgeman, Jewell,
Kearny, Kingman, Kiowa, Labette, Lane,
Lincoln, Logan, Lyon, McPherson, Mar-
ion, Marshall, Meade, Mitchell, Mont-
gomery, Morris, Morton, Neosho, Ness,
Norton, Osage, Osborne, Ottawa, Pawnee,
Phillips, Pratt, Rawlins, Reno, Republic,
Rice, Rooks, Rush, Russell, Saline, Scott,
Sedgwick, Seward, Sheridan, Sherman,
Smith, Stafford, Stanton, Stevens, Sum-
ner, Thomas, Trego, Wabaunsee, Wallace,
Washington, Wichita, Wilson, Woodson.

Louisiana

Parishes of Acadia, Allen, Ascension,
Assumption, Avoyelles, Beauregard, Bi-
enville, Bossier, Caddo, Calcasieu,
Caldwell, Cameron, Claiborne, De Soto,
East Carroll, East Feliciana, Evangeline,
Franklin, Grant, Iberia, Iberville, Jackson,
Jefferson Davis, Lafayette, La Salle, Lin-
coln, Madison, Morehouse, Natchitoches,
Ouachita, Pointe Coupee, Rapides, Red
River, Richland, Sabine, Saint Landry,
Saint Martin, Saint Mary, Tensas, Union,
Vermilion, Vernon, Webster, West Car-
roll, West Feliciana, Winn.

Minnesota

Counties of Anoka, Benton, Brown,
Chippewa, Chisago, Cottonwood, Dakota,
Goodhue, Hennepin, Houston, Isanti,
Jackson, Kanabec, Kandiyohi, Lyon,
McLeod, Martin, Meeker, Mille Lacs,
Murray, Nobles, Olmsted, Pope, Ramsey,
Redwood, Renville, Sherburne, Stearns,
Swift, Wabasha, Washington, Watonwan,
Winona, Wright.

Mississippi

Counties of Attala, Bolivar, Calhoun,
Carroll, Choctaw, Coahoma, Grenada,
Hinds, Holmes, Humphreys, Issaquena,
Leake, Leflore, Madison, Montgomery,
Neshoba, Oktibbeha, Panola, Quitman,
Rankin, Scott, Sharkey, Sunflower, Talla-
hatchie, Tunica, Warren, Washington,
Webster, Winston, Yalobusha, Yazoo.

Missouri

Counties of Adair, Andrew, Barton,
Buchanan, Caldwell, Carroll, Chariton,

Clark, Clay, Clinton, Daviess, DeKalb,
Gentry, Grundy, Harrison, Jasper, Knox,
Lewis, Linn, Livingston, Macon, Marion,
Mercer, Monroe, Newton, Nodaway, Put-
nam, Randolph, Ray, Saline, Schuyler,
Scotland, Shelby, Sullivan, Worth.

Montana

Counties of Beaverhead, Big Horn,
Broadwater, Carbon, Gallatin, Granite,
Jefferson, Madison, Missoula, Powell,
Ravalli, Silver Bow.

Nebraska

Counties of Antelope, Arthur, Banner,
Blaine, Boone, Box Butte, Boyd, Brown,
Buffalo, Butler, Cass, Cedar, Chase,
Cherry, Cheyenne, Cuming, Custer, Da-
kota, Dawes, Dawson, Deuel, Dixon,
Dodge, Douglas, Dundy, Franklin, Fron-
tier, Furnas, Gage, Garden, Garfield, Gos-
per, Grant, Greeley, Hall, Harlan, Hayes,
Hitchcock, Holt, Hooker, Howard, Jeffer-
son, Kearney, Keith, Keya Paha, Kimball,
Knox, Lancaster, Lincoln, Logan, Loup,
McPherson, Madison, Merrick, Morrill,
Nance, Perkins, Phelps, Pierce, Platte, Red
Willow, Rock, Sarpy, Saunders, Scotts
Bluff, Seward, Sheridan, Sherman, Sioux,
Stanton, Thayer, Thomas, Thurston, Valley,
Washington, Wayne, Webster, Wheeler.

Nevada

Carson City. Counties of Churchill,
Clark, Douglas, Elko, Esmeralda, Eureka,
Humboldt, Lander, Lincoln, Lyon, Min-
eral, Nye, Pershing, Storey, Washoe,
White Pine.

New Mexico

Counties of Bernalillo, Catron, Chaves,
Cibola, Colfax, Curry, DeBaca, Dona
Ana, Eddy, Grant, Guadalupe, Harding,
Hidalgo, Lea, Lincoln, Los Alamos, Luna,
Mckinley, Mora, Otero, Quay, Rio Ar-
riba, Roosevelt, Sandoval, San Juan, San
Miguel, Santa Fe, Sierra, Socorro, Taos,
Torrance, Union, Valencia.

North Dakota

Counties of Barnes, Foster, Griggs, Kid-
der, LaMoure, Logan, Stutsman, Wells.
Oklahoma

Counties of Alfalfa, Atoka, Beaver,
Beckham, Blaine, Bryan, Caddo, Cana-
dian, Carter, Choctaw, Cimarron, Cleve-
land, Comanche, Cotton, Craig, Creek,
Custer, Delaware, Dewey, Ellis, Garfield,
Garvin, Grady, Grant, Greer, Harmon,
Harper, Hughes, Jackson, Jefferson, John-
ston, Kay, Kingfisher, Kiowa, Lincoln,
Logan, Love, McClain, McCurtain, Major,

Marshall, Mayes, Murray, Noble, Nowata,
Okfuskee, Oklahoma, Okmulgee, Osage,
Ottawa, Pawnee, Payne, Pontotoc, Potta-
watomie, Pushmataha, Roger Mills, Rog-
ers, Seminole, Stephens, Texas, Tillman,
Tulsa, Wagoner, Washington, Washita,
Woods, Woodward.

Oregon

Counties of Baker, Benton, Clackamas,
Clatsop, Columbia, Coos, Crook, Curry,
Deschutes, Douglas, Grant, Harney, Hood
River, Jackson, Jefferson, Josephine,
Klamath, Lake, Lane, Lincoln, Linn, Mal-
heur, Marion, Multnomah, Polk, Union,
Wasco, Washington, Yamhill.

South Dakota

Counties of Bennett, Brown, Clark,
Codington, Day, Deuel, Fall River, Grant,
Hamlin, Marshall, Roberts, Shannon,
Spink, Todd.

Texas

Counties of Anderson, Andrews, Ange-
lina, Aransas, Archer, Armstrong, Atascosa,
Austin, Bailey, Bandera, Bastrop, Baylor,
Bee, Bell, Bexar, Blanco, Borden, Bosque,
Bowie, Brazoria, Brazos, Brewster, Briscoe,
Brooks, Brown, Burleson, Burnet,
Caldwell, Calhoun, Callahan, Cameron,
Camp, Carson, Cass, Castro, Chambers,
Cherokee, Childress, Clay, Cochran, Coke,
Coleman, Collin, Collingsworth, Colorado,
Comal, Comanche, Concho, Cooke, Cory-
ell, Cottle, Crane, Crockett, Crosby, Dallam,
Dallas, Dawson, Deaf Smith, Delta, Denton,
DeWitt, Dickens, Dimmit, Donley, Duval,
Eastland, Ector, Edwards, Ellis, El Paso,
Erath, Falls, Fannin, Fayette, Fisher, Floyd,
Foard, Fort Bend, Franklin, Freestone, Frio,
Gaines, Galveston, Garza, Gillespie, Glass-
cock, Goliad, Gonzales, Gray, Grayson,
Gregg, Grimes, Guadalupe, Hale, Hall,
Hamilton, Hansford, Hardeman, Hardin,
Harris, Harrison, Hartley, Haskell, Hays,
Hemphill, Henderson, Hidalgo, Hill, Hock-
ley, Hood, Hopkins, Houston, Howard,
Hudspeth, Hunt, Hutchinson, Irion, Jack,
Jackson, Jasper, Jefferson, Jim Hogg, Jim
Wells, Johnson, Jones, Karnes, Kaufman,
Kendall, Kenedy, Kent, Kerr, Kimble, King,
Kinney, Kleberg, Knox, Lamar, Lamb,
Lampasas, La Salle, Lavaca, Lee, Leon,
Liberty, Limestone, Lipscomb, Live Oak,
Llano, Lubbock, Lynn, McCulloch, McLen-
nan, McMullen, Madison, Marion, Martin,
Mason, Matagorda, Maverick, Medina,
Menard, Midland, Milam, Mills, Mitchell,
Montague, Montgomery, Moore, Morris,

Motley, Nacogdoches, Navarro, Newton,
Nolan, Nueces, Ochiltree, Oldham, Orange,
Palo Pinto, Panola, Parker, Parmer, Pecos,
Polk, Potter, Presidio, Rains, Randall, Rea-
gan, Real, Red River, Refugio, Roberts,
Robertson, Rockwall, Runnels, Rusk, Sa-
bine, San Augustine, San Jacinto, San Patri-
cio, San Saba, Schleicher, Scurry, Shackel-
ford, Shelby, Sherman, Smith, Somervell,
Starr, Stephens, Sterling, Stonewall, Sutton,
Swisher, Tarrant, Taylor, Terrell, Terry,
Throckmorton, Titus, Tom Green, Travis,
Trinity, Tyler, Upshur, Upton, Uvalde, Val
Verde, Van Zandt, Victoria, Walker, Waller,
Ward, Washington, Webb, Wharton,
Wheeler, Wichita, Wilbarger, Willacy, Wil-
liamson, Wilson, Winkler, Wise, Wood, Yoa-
kum, Young, Zapata, Zavala.

Utah

Counties of Beaver, Box Elder, Cache,
Carbon, Daggett, Davis, Duchesne, Em-
ery, Garfield, Grand, Iron, Juab, Kane,
Millard, San Juan, Sanpete, Summit,
Tooele, Uintah, Utah, Wasatch, Washing-
ton, Wayne, Weber.

Washington

County of Adams, Benton, Chelan,
Clark, Cowlitz, Douglas, Ferry, Franklin,
Grant, Grays Harbor, Jefferson, King, Kit-
sap, Kittitas, Lewis, Lincoln, Mason,
Okanogan, Pacific, Pierce, Skamania, Ste-
vens, Thurston, Wahkiakum, Walla
Walla, Yakima.

Wisconsin

Counties of Adams, Buffalo, Chippewa,
Clark, Columbia, Crawford, Dunn, Eau
Claire, Jackson, Juneau, La Crosse, Monroe,
Pepin, Pierce, Polk, Richland, Saint Croix,
Sauk, Trempealeau, Vernon, Wood.

Wyoming

Counties of Albany, Big Horn, Camp-
bell, Carbon, Converse, Fremont, Goshen,
Hot Springs, Johnson, Lincoln, Natrona,
Niobrara, Park, Platte, Sheridan, Sublette,
Sweetwater, Uinta, Washakie, Weston.

# Per Capita Payments from Proceeds of Settlements of Indian Tribal Trust Cases

Notice 2014-61

BACKGROUND

Notice 2013-1, 2013-3 IRB 281, pro-
vides guidance on the federal tax treatment

of per capita payments that members of
Indian tribes receive from proceeds of cer-
tain settlements of tribal trust cases be-
tween the United States and those Indian
tribes. Additional tribes have settled tribal
trust cases against the United States since
publication of Notice 2013-1. This notice
provides an updated Appendix that re-
flects the additional settlement agree-
ments.

## EFFECT ON OTHER DOCUMENTS

Notice 2013-1 Appendix is modified
and superseded.

## FURTHER INFORMATION

For further information regarding this
notice, please contact Telly Meier at
phone number (202) 317-8494 (not a toll-
free number).

## Appendix

Tribes That Have Entered into Set-
tlement Agreements of Tribal Trust
Cases

1\. Assiniboine and Sioux Tribes of the
Fort Peck Reservation

2\. Bad River Band of Lake Superior
Chippewa Indians

3\. Blackfeet Tribe of the Blackfeet In-
dian Reservation

4\. Bois Forte Band of Chippewa

5\. Cachil Dehe Band of Wintun Indians
of the Colusa Rancheria

6\. Chippewa Cree Tribe of the Rocky
Boy's Reservation

7\. Coeur d'Alene Tribe

8\. Confederated Salish and Kootenai
Tribes

9\. Confederated Tribes of Siletz Indi-
ans

10\. Confederated Tribes of the Colville
Reservation

11\. Confederated Tribes of the Goshute
Reservation

12\. Crow Creek Sioux Tribe

13\. Eastern Shawnee Tribe of Okla-
homa

14\. Hualapai Indian Tribe

15\. Iowa Tribe of Kansas and Nebraska

16\. Kaibab Band of Paiute Indians of
Arizona

17\. Kickapoo Tribe of Kansas

18\. Lac Courte Oreilles Band of Lake
Superior Chippewa Indians

19.

Lac du Flambeau Band of Lake

38.

Salt River Pima-Maricopa Indian

57.

Tlingit &amp; Haida Tribes of Alaska

Superior Chippewa Indians

Community

58.

Northwestern Band of Shoshone

20.

Leech Lake Band of Ojibwe

39.

Santee Sioux Tribe of Nebraska

Indians

21.

Lower Brule Sioux Tribe

40.

Sault Ste. Marie Tribe

59.

Hoopa Valley Tribe

22.

Makah Indian Tribe of the Makah

41.

Shoshone-Bannock Tribes of the

60.

Ak-Chin Indian Community

Reservation

Fort Hall Reservation

61.

Oglala Sioux Tribe

23.

Mescalero Apache Tribe

42.

Soboba Band of Luiseno Indians

62.

Yoruk Tribe

24.

Minnesota Chippewa Tribe

43.

Spirit Lake Dakotah Nation

63.

Cheyenne River Sioux Tribe

25.

Nez Perce Tribe

44.

Spokane Tribe of Indians

64.

Paiute-Shoshone Indians of the

26.

Nooksack Indian Tribe

45.

Standing Rock Sioux Tribe

Bishop

Community of the Bishop Colony

27.

Northern Cheyenne Tribe of Indi-

46.

Stillaguamish Tribe of Indians

65.

Seminole Nation of Oklahoma

ans

47.

Summit Lake Paiute Tribe

66.

Otoe-Missouria Tribe of Oklahoma

28.

Omaha Tribe of Nebraska

48.

Swinomish Indian Tribal Commu-

67.

Samish Indian Nation

29.

Passamaquoddy Tribe of Maine

nity

30.

Pawnee Nation

49.

Te-Moak Tribe of Western Sho-

68.

Tonkawa Tribe of Indians of Okla-

31.

Prairie Band of Potawatomi Nation

shone Indians

homa

32.

Pueblo of Zia

50.

Tohono O'odham Nation

69.

Yakama Nation

33.

Quechan Tribe of the Fort Yuma

51.

Tulalip Tribes

70.

Miami Tribe of Oklahoma

Reservation

52.

Tule River Indian Tribe

71.

Shoshone Indian Tribe and the

34.

Red Cliff Band of Lake Superior

53.

Ute Indian Tribe of the Uintah and

Northern

Arapahoe Indian Tribe of the

Chippewa Indians

Ouray

Reservation

Wind

River Reservation

35.

Rincon Luiseño Band of Indians

54.

Ute Mountain Ute Tribe

72.

Pueblo of Laguna

36.

Rosebud Sioux Tribe

55.

Winnebago Tribe of Nebraska

73.

Navajo Nation

37.

Round Valley Indian Tribes

56.

Qawalangin Tribe of Unalaska

74.

Caddo Nation of Oklahoma

# 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:

Amplified describes 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).

Clarified is 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.

Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.

Modified is 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 and clarified, above).

Obsoleted describes 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.

Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.

Superseded describes 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
superseded describes 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.

Supplemented is 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.

Suspended is 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.

F.R .- Federal Register.

FUTA-Federal Unemployment Tax Act.

FX-Foreign corporation.

G.C.M .- Chief Counsel's Memorandum.

GE-Grantee.

TFE-Transferee.

CFR-Code of Federal Regulations.

GP-General Partner.

TFR-Transferor.

CI-City.

GR-Grantor.

T.I.R .- Technical Information Release.

COOP-Cooperative.

IC-Insurance Company.

TP-Taxpayer.

Ct.D .- Court Decision.

I.R.B .- Internal Revenue Bulletin.

TR-Trust.

CY-County.

LE-Lessee.

TT-Trustee.

D-Decedent.

LP-Limited Partner.

U.S.C .- United States Code.

DC-Dummy Corporation.

LR-Lessor.

X-Corporation.

DE-Donee.

Del. Order-Delegation Order.

Nonacq .- Nonacquiescence.

O Organization.

DR-Donor.

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.

BK-Bank.

T-Target Corporation.

B.T.A .- Board of Tax Appeals.

T.C .- Tax Court.

C-Individual.

T.D .- Treasury Decision.

C.B .- Cumulative Bulletin.

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.

M-Minor.

Y-Corporation.

Z-Corporation.

DISC-Domestic International Sales Corporation.

E-Estate.

EE-Employee.

E.O .- Executive Order.

ER-Employer.

Numerical Finding List1

Revenue Procedures-Continued:

Bulletins 2014-27 through 2014-43

2014-46, 2014-33 I.R.B. 367 2014-47, 2014-35 I.R.B. 393

Announcements:

2014-48, 2014-36 I.R.B. 527

2014-49, 2014-37 I.R.B. 535

2014-2, 2014-28 I.R.B. 120

2014-50, 2014-37 I.R.B. 540

2014-28, 2014-34 I.R.B. 391

2014-51, 2014-37 I.R.B. 543

2014-29, 2014-35 I.R.B. 452

2014-52, 2014-38 I.R.B. 560

2014-53, 2014-39 I.R.B. 573

Notices:

2014-54, 2014-41 I.R.B. 675

2014-40, 2014-27 I.R.B. 100

Revenue Rulings:

2014-41, 2014-27 I.R.B. 97

2014-42, 2014-34 I.R.B. 387

2014-14, 2014-27 I.R.B. 12

2014-43, 2014-31 I.R.B. 249

2014-19, 2014-32 I.R.B. 266

2014-44, 2014-32 I.R.B. 270

2014-20, 2014-28 I.R.B. 101

2014-45, 2014-34 I.R.B. 388

2014-21, 2014-34 I.R.B. 381

2014-46, 2014-36 I.R.B. 520

2014-22, 2014-37 I.R.B. 523

2014-47, 2014-36 I.R.B. 522

2014-23, 2014-40 I.R.B. 575

2014-48, 2014-36 I.R.B. 523

2014-24, 2014-37 I.R.B. 529

2014-49, 2014-41 I.R.B. 665

2014-25, 2014-40 I.R.B. 574

2014-50, 2014-40 I.R.B. 590

2014-26, 2014-41 I.R.B. 663

2014-51, 2014-40 I.R.B. 594

2014-52, 2014-42 I.R.B. 712

Treasury Decisions:

2014-53, 2014-43 I.R.B. 737

2014-54, 2014-41 I.R.B. 670

9664, 2014-32 I.R.B. 254

2014-55, 2014-41 I.R.B. 672

9668, 2014-27 I.R.B. 1

2014-56, 2014-41 I.R.B. 674

9669, 2014-28 I.R.B. 103

2014-57, 2014-42 I.R.B. 723

9670, 2014-29 I.R.B. 121

2014-60, 2014-43 I.R.B. 741

9671, 2014-29 I.R.B. 124

2014-61, 2014-43 I.R.B. 744

9672, 2014-30 I.R.B. 196

9673, 2014-30 I.R.B. 212

Proposed Regulations:

9674, 2014-30 I.R.B. 225

9675, 2014-31 I.R.B. 242

REG-104579-13, 2014-33 I.R.B. 370

9676, 2014-32 I.R.B. 260

REG-120756-13, 2014-31 I.R.B. 252

9677, 2014-31 I.R.B. 241

REG-105067-14, 2014-34 I.R.B. 391

9678, 2014-32 I.R.B. 262

REG-110948-14, 2014-30 I.R.B. 239

9679, 2014-32 I.R.B. 267

REG-121542-14, 2014-28 I.R.B. 119

9680, 2014-32 I.R.B. 254

REG-107012-14, 2014-33 I.R.B. 371

9681, 2014-33 I.R.B. 340

REG-123286-14, 2014-33 I.R.B. 377

9682, 2014-33 I.R.B. 342

REG-209459-78, 2014-31 I.R.B. 253

9683, 2014-33 I.R.B. 330

REG-129507-14, 2014-38 I.R.B. 561

9684, 2014-33 I.R.B. 345

REG-129786-14, 2014-38 I.R.B. 562

9685, 2014-34 I.R.B. 379

REG-105739-11, 2014-41 I.R.B. 704

9686, 2014-34 I.R.B. 382

9687, 2014-36 I.R.B. 486

Revenue Procedures:

9688, 2014-36 I.R.B. 482

9689, 2014-36 I.R.B. 456

2014-26, 2014-27 I.R.B. 26

9690, 2014-38 I.R.B. 548

2014-27, 2014-27 I.R.B. 41

9691, 2014-38 I.R.B. 547

2014-29, 2014-28 I.R.B. 105

9692, 2014-40 I.R.B. 574

2014-37, 2014-33 I.R.B. 363

9693, 2014-41 I.R.B. 596

2014-38, 2014-29 I.R.B. 132

9694, 2014-41 I.R.B. 626

2014-39, 2014-29 I.R.B. 151

9695, 2014-42 I.R.B. 707

2014-40, 2014-30 I.R.B. 229

9696, 2014-43 I.R.B. 727

2014-41, 2014-33 I.R.B. 364

9697, 2014-43 I.R.B. 729

2014-42, 2014-29 I.R.B. 193

2014-43, 2014-32 I.R.B. 273

2014-44, 2014-32 I.R.B. 274

2014-45, 2014-34 I.R.B. 388

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2014-01 through 2014-26 is in Internal Revenue Bulletin
2014-26, dated June 30, 2014.

## Finding List of Current Actions on Previously Published Items1

Bulletins 2014-27 through 2014-43

### Announcements:

2012-11
Supplemented by
Ann. 2014-2, 2014-28 I.R.B. 120

2013-11
Supplemented by
Ann. 2014-2, 2014-28 I.R.B. 120

2010-41
Obsoleted by
Rev. Proc. 2014-43, 2014-32 I.R.B. 273

### Revenue Procedures:

1981-38
Superseded by
Rev. Proc. 2014-42, 2014-29 I.R.B. 193

93-37
Modified and Superseded by
Rev. Proc. 2014-43, 2014-32 I.R.B. 273

1981-38
Modified by
Rev. Proc. 2014-42, 2014-29 I.R.B. 193

2000-12
Superseded by
Rev. Proc. 2014-39, 2014-29 I.R.B. 151

2002-55
Revoked by
Rev. Proc. 2014-39, 2014-29 I.R.B. 151

2003-64
Superseded by
Rev. Proc. 2014-47, 2014-35 I.R.B. 393

2004-21
Superseded by
Rev. Proc. 2014-47, 2014-35 I.R.B. 393

2005-77
Superseded by
Rev. Proc. 2014-47, 2014-35 I.R.B. 393

2011-14
Modified by
Rev. Proc. 2014-48, 2014-36 I.R.B. 527

2011-14
Modified by
Rev. Proc. 2014-54, 2014-41 I.R.B. 675

2011-16
Superseded by
Rev. Proc. 2014-51, 2014-37 I.R.B. 543

Revenue Procedures-Continued:

2011-16
Modified by
Rev. Proc. 2014-51, 2014-51 I.R.B. 543

2012-38
Superseded by
Rev. Proc. 2014-27, 2014-27 I.R.B. 26

2012-46
Superseded by
Rev. Proc. 2014-26, 2014-27 I.R.B. 41

2014-4
Amplified by
Rev. Proc. 2014-40, 2014-30 I.R.B. 229

2014-4
Modified by
Rev. Proc. 2014-41, 2014-41 I.R.B. 675

2014-5
Amplified by
Rev. Proc. 2014-40, 2014-30 I.R.B. 229

2014-8
Amplified by
Rev. Proc. 2014-40, 2014-30 I.R.B. 229

2014-9
Amplified by
Rev. Proc. 2014-40, 2014-30 I.R.B. 229

2014-10
Amplified by
Rev. Proc. 2014-40, 2014-30 I.R.B. 229

2014-13
Modified by
Rev. Proc. 2014-38, 2014-29 I.R.B. 132

2014-13
Superseded by
Rev. Proc. 2014-38, 2014-29 I.R.B. 132

2014-16
Superseded by
Rev. Proc. 2014-51, 2014-37 I.R.B. 543

2014-16
Modified by
Rev. Proc. 2014-51, 2014-37 I.R.B. 543

2014-12
Modified by
Rev. Proc. 2014-54, 2014-41 I.R.B. 675

2014-17
Modified by
Rev. Proc. 2014-54, 2014-41 I.R.B. 675

## Revenue Rulings:

2008-40
Modified by
Rev. Rul. 2014-24, 2014-37 I.R.B. 529

2011-1
Modified by
Rev. Rul. 2014-24, 2014-37 I.R.B. 529

2012-6
Modified by
Rev. Rul. 2014-24, 2014-37 I.R.B. 529

## Notices:

2013-1
Modified by
Notice 2014-61, 2014-43 I.R.B. 744

2013-1
Superseded by
Notice 2014-61, 2014-43 I.R.B. 744

2013-11
Modified by
Notice 2014-48, 2014-36 I.R.B. 523

2013-23
Modified by
Notice 2014-48, 2014-36 I.R.B. 523

2013-28
Modified by
Notice 2014-48, 2014-36 I.R.B. 523

2013-29
Modified by
Notice 2014-46, 2014-36 I.R.B. 520

2013-29
Clarified by
Notice 2014-46, 2014-36 I.R.B. 520

2013-32
Modified by
Notice 2014-48, 2014-36 I.R.B. 523

2013-37
Modified by
Notice 2014-48, 2014-36 I.R.B. 523

2013-38
Superseded by
Notice 2014-61, 2014-43 I.R.B. 744

2013-51
Obsoleted by
Notice 2014-42, 2014-34 I.R.B. 387

2013-60
Modified by
Notice 2014-46, 2014-36 I.R.B. 520

1A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2014-01 through 2014-26 is in Internal Revenue Bulletin 2014-26, dated June 30, 2014.

Notice-Continued:

2013-60
Clarified by
Notice 2014-46, 2014-36 I.R.B. 520

2013-65
Superseded by
Notice 2014-57, 2014-42 I.R.B. 723

2014-38
Superseded by
Notice 2014-61, 2014-43 I.R.B. 744

2014-44
Supplemented by
Notice 2014-45, 2014-34 I.R.B. 388

### Treasury Decisions:

2005-47
Obsoleted by
T.D. 9668 2014-27 I.R.B. 1

2010-51
Obsoleted by
T.D. 9684 2014-33 I.R.B. 345

2010-71
Obsoleted by
T.D. 9684 2014-33 I.R.B. 345

2011-6
Obsoleted by
T.D. 9684 2014-33 I.R.B. 345

2011-9
Obsoleted by
T.D. 9684 2014-33 I.R.B. 345

#### Internal Revenue Bulletins 2014-27 through 2014-43

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:

Ann
Announcement

CD
Court Decision

DO
Delegation Order

EO
Executive Order

PL
Public Law

PTE
Prohibited Transaction Exemption

RP
Revenue Procedure

RR
Revenue Ruling

SPR
Statement of Procedural Rules

TC
Tax Convention

TD
Treasury Decision

TDO
Treasury Department Order

# ADMINISTRATIVE

AJCA-Section 6707 and the Penalty for Failure to Furnish
Information Regarding Reportable Transactions by Material
Advisors (TD 9686) 34, 382

Adjusted Applicable Dollar Amount for Fee Imposed by §§ 4375
and 4376 (Notice 56) 41, 674

Announcement to Discontinue the Internal Revenue Bulletin
Index (Ann 27) 28, 120

Annual Filing Season Program (RP 42) 29, 193

Disclosure to Census Bureau (REG-120756-13) 31, 241

Disclosure to Census Bureau (TD 9677) 31, 241

Information reporting by passport applicants (TD 9679) 32, 267
Low-Income Housing Tax Credit (RP 52) 38, 560

Per Capita Payments from Proceeds of Settlements of Indian
Tribal Trust Cases (Notice 61) 43, 744

Procedures to void backup withholding (RP 43) 32, 273
Proposed Regulations:

26 CFR part 301 is amended, section 301.6103(j)(1)-1 is
amended, section 301.6103(j)(1)-1T added (REG-
120756-13) 31, 241

Regulations Governing Practice Before the Internal Revenue
Service (REG-138367-06) (TD 9668) 27, 1

Regulations:

31 CFR 10.1, revised; 10.3, revised; 10.22, revised; 10.31,
revised; 10.35, revised; 10.36, revised; 10.37, revised;
10.52, revised; 10.81, revised; 10.82, revised; 10.91, re-
vised. (TD 9668) 27, 1

26 CFR 301.6109-4, added; 1.6042-4, amended; 1.6043-4,
amended; 1.6044-5, amended; 1.6045-2, amended; 1.6045-3,
amended; 1.6045-4, amended; 1.6045-5, amended; 1.6049-6,
amended; 1.6050A-1, amended; 1.6050E-1, amended;
1.6050N-1, amended; 1.6050P-1, amended; 1.6050S-1, amend-
ed; 1.6050S-3, amended (TD 9675) 31, 242

# ADMINISTRATIVE-Cont.

26 CFR part 301 is amended, section 301.6103(j)(1)-1 is
amended, section 301.6103(j)(1)-1T added (TD 9677) 31, 241
26 CFR part 301, amended; 26 CFR 301.6039E-1 added (TD
9679) 32, 267

26 CFR 301.6707-1, added; 301.6707-1T, removed; Rev.
Proc. 2007-21, sections 4.04, 4.05, and 4.06 superseded;
material advisor penalty for failure to furnish information
regarding reportable transactions (TD 9686) 34, 382

Substantiation by Per Diem Rates (Notice 2014-57) 42, 723
Substitute Forms Preparation for Certain Information Returns
(RP 27) 27, 41

Substitute Forms Preparation for Certain Information Returns
(RP 44) 32, 274

Truncated Taxpayer Identification Numbers (TD 9675) 31, 242

# EMPLOYEE PLANS

Additional Permitted Election Changes for Health Coverage
under § 125 Cafeteria Plans (Notice 55) 41, 672

Cash balance plans and other hybrid defined benefit pension
plans (TD 9693) 41, 596

Excepted benefits

Group Trusts (RR 24) 37, 529

Individual Retirement Account Rollover Limitations (REG-
209459-78) 31, 253

Longevity Annuity Contracts (TD 9673) 30, 212

Proposed Regulations:

26 CFR 408, Individual Retirement Accounts (REG-209459-
78) 31, 253

Qualified Plans
Rollovers (Notice 54) 41, 670

Minimum Funding Requirements (Notice 53) 43, 737

Regulations:

26 CFR 54.9815-2708, as amended (TD 9671) 29, 174

26 CFR 1.401(a)(9)-5, amended; 1.401(a)(9)-6, amended;
1.403(b)-6, amended; 1.408-8, amended; 1.408A-6,
amended; 1.6047-2, added (TD 9673) 30, 212

26 CFR 1.411(a)(13)-1, amended (TD 9693); 26 CFR
1.411(b)-1, amended (TD 9693); 26 CFR 1.411(b)(5)-1,
amended (TD 9693) 41, 596

26 CFR 1.162-31, added (REG-106796-12 TD 9694) 41, 626
26 CFR 301.6057-3 added, 301.6058-2 added, 301.6059-2
added (TD 9695) 42, 707

26 CFR 54.9831-1 is amended (TD 9697) 43, 729

Requirement to File Certain Employee Benefit Statements, No-
tices and Reports Electronically with the Internal Revenue
Service (TD 9695) 42, 707

Rules relating to 90 day waiting period limitation (TD 9671) 29, 174
The $500,000 deduction limitation for remuneration provided by
certain health insurance providers (REG-106796-12) (TD
9694) 41, 626

Weighted average interest rates

Segment rates for June 2014 (Notice 41) 27, 97

Segment rates for July 2014 (Notice 43) 31, 249

Segment rates for August 2014 (Notice 48) 36, 523

Segment rates for September 2014 (Notice 50) 40, 590

# EMPLOYMENT TAX

Extending religious and family member FICA and FUTA excep-
tions to disregarded entities; regulations regarding the indoor
tanning services excise tax and disregarded entities (TD 9670)
29, 121

Method of accounting for gains and losses on shares in certain
money market funds; broker returns with respect to sales of
shares in money market funds (REG-107012-14) 33, 371
Publications:

1223, General Rules and Specifications for Substitute Forms
W-2c and W-3c (RP29) 28, 105

4436, General Rules and Specifications for Substitute Form
941 and Schedule B (Form 941), and Schedule R (RP 26)
27, 26

Summons Interview Regulations Under Section 7602 (REG-
121542-14) (TD 9669) 28, 103

Regulations:

26 CFR 301.7602-1 is amended to add new paragraph (b)(3)
pertaining to summons interviews. (TD 9669) 28, 103

26 CFR 1.1361-4, amended; 1.1361-4T, removed;
31.3121(b)(3)-1, amended; 31.3121(b)(3)-1T, removed;
31.3127-1, added; 31.3127-1T, removed;
31.3306(c)(5)-1, amended; 31.3306(c)(5)-1T, removed;
301.7701-2, amended; 301.7701-2T, removed; extending
religious and family member FICA and FUTA exceptions
to disregarded entities; regulations regarding the indoor
tanning services excise tax and disregarded entities (TD
9670) 29, 121

26 CFR 1.446-7 added; 1.6045-1 amended; method of ac-
counting for gains and losses on shares in certain money
market funds; broker returns with respect to sales of shares
in money market funds (REG-107012-14) 33, 371

# ESTATE TAX

Section 2032A .- Valuation of Certain Farm, Etc., Real Property
(RR 21) 34, 381

Summons Interview Regulations Under Section 7602 (REG-
121542-14) (TD 9669) 28, 103

Regulations:

26 CFR 301.7602-1 is amended to add new paragraph (b)(3)
pertaining to summons interviews. (TD 9669) 28, 103

# EXCISE TAX

Adjusted Applicable Dollar Amount for Fee Imposed by §§ 4375
and 4376 (Notice 56) 41, 674

Alternative process for religious objections to providing contracep-
tive coverage under section 9815 (REG-129507-14) 38, 561

Alternative process for religious objections to providing contra-
ceptive coverage under section 9815 (TD 9690) 38, 548
Branded Prescription Drug Fee (REG-123286-14) 33, 377

Branded Prescription Drug Fee (TD 9684) 33, 245

Branded Prescription Drug Fee (Notice 42) 34, 387

Definition of "eligible organization" under section 9815, regard-
ing coverage of preventive services, including contraceptive
coverage (REG-129786-14) 38, 562

# EXCISE TAX-Cont.

Extending religious and family member FICA and FUTA excep-
tions to disregarded entities; regulations regarding the indoor
tanning services excise tax and disregarded entities (TD 9670)
29, 121

Section 9010 of the ACA; health insurance providers fee (Notice
47) 36, 522

Summons Interview Regulations Under Section 7602 (REG-
121542-14) (TD 9669) 28, 103

Proposed Regulations:

26 CFR 54.9815-2713A is revised; accommodations in con-
nection with coverage of preventive health services under
section 9815 (REG-129507-14) 38, 561

26 CFR 54.9815-2713A(a) amended; accommodations in
connection with coverage of preventive health services
under section 9815 (REG-129786-14) 38, 562

Regulations:

26 CFR 301.7602-1 is amended to add new paragraph (b)(3)
pertaining to summons interviews. (TD 9669) 28, 103

26 CFR 1.1361-4, amended; 1.1361-4T, removed;
31.3121(b)(3)-1, amended; 31.3121(b)(3)-1T, removed;
31.3127-1, added; 31.3127-1T, removed; 31.3306(c)(5)-1,
amended; 31.3306(c)(5)-1T, removed; 301.7701-2, amend-
ed; 301.7701-2T, removed; extending religious and family
member FICA and FUTA exceptions to disregarded entities;
regulations regarding the indoor tanning services excise tax
and disregarded entities (TD 9670) 29, 121

26 CFR 54.9815-2708, as amended (TD 9671) 29, 121

26 CFR 51.2(e)(3), amended; (REG-123286-14) 33, 377

26 CFR 54.9815-2713A(b), (c)(1), and (c)(2)(i) introductory
text amended; 54.9815-2713A(f) and 54.9815-2713AT
added; accommodations in connection with coverage of
preventive health services under section 9815 (TD 9690)
38, 548

Rules relating to 90 day waiting period limitation (TD 9671) 29, 121

# EXEMPT ORGANIZATIONS

Streamlined Application for Recognition of Exemption Under
Section 501(c)(3) (RP 2014-40) 30, 229

Streamlined process for 501(c)(3) recognition (REG-110948-
14) 30, 225

Streamlined process for 501(c)(3) recognition (TD 9674) 30, 225
Regulations:

26 CFR 1.501(c)-1 amended 1. 501(a)-1T added;
1.501(c)(3)-1 amended, 1.501(c)(3)-1T added; and
1.508-1 amended, 1.508-1T added (REG-110948-
14)(TD 9674) 30, 225

# GIFT TAX

Summons Interview Regulations Under Section 7602 (REG-
121542-14) (TD 9669) 28, 103

Regulations:

26 CFR 301.7602-1 is amended to add new paragraph (b)(3)
pertaining to summons interviews (REG-121542-14) (TD
9669) 28, 103

# INCOME TAX

Accounting method change, retail inventory method (RP 48) 36,
132

AJCA-Section 6707 and the Penalty for Failure to Furnish
Information Regarding Reportable Transactions by Material
Advisors (TD 9686) 34, 382

Allocation and Apportionment of Interest Expense (TD 9676)
32, 260

Awards for Information Relating to Detecting Underpayments of
Tax or Violations of the Internal Revenue Laws (TD 9687) 36,
486

Basis of indebtedness of S corporations to their shareholders (TD
9682) 33, 342

Business expenses, lodging when not traveling away from home
(TD 9696) 43, 727

Credit for carbon dioxide Sequestration (Notice 40) 27, 100

Debt that is a position in personal property that is part of a
straddle (TD 9691) 38, 547

Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries, enrolled retire-
ment plan agents, and appraisers (ANN 29) 35, 452

Disclosure to Census Bureau (REG-120756-13) 31, 252

Disclosure to Census Bureau (TD 9677) 31, 241

Dispositions of property subject to depreciation under section
168 (TD 9689) 36, 456

Employer shared responsibility; look-back measurement method
(Notice 49) 41, 665

FFI Agreement for Participating FFI and Reporting Model 2 FFI
(RP 38) 29, 132

Foreign Earned Income Exclusion (ANN 2014-28) 34, 391

Foreign tax credit guidance under section 901 (m) (Notice 44)
32, 391

Foreign tax credit guidance under section 901 (m) (Notice 45)
34, 270

Information reporting by passport applicants (TD 9679) 32, 267
Insurance; effectively connected income (RP 53) 39, 573

Interest:

Investment:

Federal short-term, mid-term, and long-term rates for: July
2014 (RR 20) 28, 101

Federal short-term, mid-term, and long-term rates for: Au-
gust 2014 (RR 19) 32, 266

Federal short-term, mid-term, and long-term rates for: Sep-
tember 2014 (RR 22) 37, 533

Federal short-term, mid-term, and long-term rates for: Oc-
tober 2014 (RR 26) 41, 663

Involuntary conversions, livestock sold on account of drought,
extension of replacement period, list of affected counties
(Notice 60) 43, 741

Method change procedures for dispositions of tangible deprecia-
ble property (RP 2014-54) 41, 675

Money market funds and the wash sale rules (RP 45) 34, 388

Premium Tax Credit (REG-104579-13) 33, 370

Premium Tax Credit (RP 37) 33, 363

Premium Tax Credit (RP 41) 33, 364

Premium Tax Credit (TD 9683) 33, 330

# INCOME TAX-Cont.

Production Tax Credit, Investment Tax Credit, Beginning of
Construction (Notice 46) 36, 520

Proposed Regulations:

26 CFR part 301 is amended, section 301.6103(j)(1)-1 is
amended, section 301.6103(j)(1)-1T added (REG-
120756-13) 31, 252

26 C.F.R. 1.382-3(j)(17), modified; 1.382-3T(j)(17), added,
segregation rules for public groups of shareholders (REG-
105067-14) 34, 391

Publications:

1223, General Rules and Specifications for Substitute Forms
W-2c and W-3c (RP 29) 28, 105

4436, General Rules and Specifications for Substitute Form
941 and Schedule B (Form 941), and Schedule R (RP 26)
27, 26

Qualified Intermediary (QI) Agreement (RP 39) 29, 151

Qualified residential rental projects (RP-105272-13) (RP 50) 37, 540
Regulations:

31 CFR 10.1, revised; 10.3, revised; 10.22, revised; 10.31,
revised; 10.35, revised; 10.36, revised; 10.37, revised;
10.52, revised; 10.81, revised; 10.82, revised; 10.91, re-
vised (TD 9668) 27, 1

26 CFR 301.7602-1 is amended to add new paragraph (b)(3)
pertaining to summons interviews (REG-121542-14) (TD
9669) 28, 103

26 CFR 1.45R-0, added; 1.45R-1, added; 1.45R-2, added;
1.45R-3, added; 1.45R-4, added; 1.45R-5, added; tax
credit for employee health insurance expenses of small
employers (TD 9672) 30, 196

26 CFR 1.67-4, amended (TD 9667) 32, 254

26 CFR part 301 is amended, section 301.6103(j)(1)-1 is
amended, section 301.6103(j)(1)-1T added (TD 9677) 31,
241

26 CFR 1.861-9 amended, 1.861-11 amended; (TD 9676) 32,
260

26 CFR 1.1092(b)-6, added; 1.1092(b)-6T, removed;
1.1092(b)-3T, amended; (TD 9678) 32, 262

26 CFR part 301, amended; 26 CFR 301.6039E-1 added (TD
9679) 32, 267

26 CFR 1.174-2 amended; (TD 9680) 32, 254

26 CFR 1.36B-2T, 26 CFR 1.36B-3T, 1.36B-4T, added; 26
CFR 1.36B-2, 26 CFR 1.36B-3\\, 1.36B-4, amended; 26
CFR 1.162(1)-1 and 26 CFR 1.162(1)-1T, added. (REG-
104579-13) 33, 370

26 CFR 1.195-2, added; 26 CFR 1.708-1, amended; 26 CFR
1.709-1, amended. (TD 9681) 33, 340

26 CFR 1.1366-2(a), added new paragraph (a)(2) and moved
current (a)(2) through (a)(6) to (a)(3) through (a)(7), re-
spectively; basis of indebtedness of S corporations to their
shareholders (TD 9682) 33, 342

## INCOME TAX-Cont.

26 CFR 1.36B-2T, 26 CFR 1.36B-3T, 1.36B-4T added, 26
CFR 1.36B-2, 26 CFR 1.36B-3\\, 1.36B-4, amended, 26
CFR 1.162(1)-1 and 26 CFR 1.162(1)-1T added, (TD
9683) 33, 330

26 C.F.R. 1.382-3(j)(17), modified; 1.382-3T(j)(17), added,
segregation rules for public groups of shareholders (TD
9685) 34, 379

26 CFR 301.7623-1, revised; 26 CFR 301.7623-4, added; 26
CFR 301.7623-2, added; 26 CFR 301.6103(h)(4)-1, added
26 CFR 301.7623-3, added; (TD 9687) 36, 486

26 CFR 1.471-8 amended (TD 9688) 36, 482

26 CFR 1.168(i)-8 added; 1.165-2, 1.168(i)-0, 1.168(i)-1,
1.168(i)-7, 1.263(a)-3, 1.1016-3 amended; 1.168(i)-0T,
1.168(i)-1T, 1.168(i)-8T removed; dispositions of prop-
erty subject to depreciation under section 168 (TD 9689)
36, 456

26 CFR 1.1092(d)-1, amended; 1.1092(d)-1T, removed; debt
that is a position in personal property that is part of a
straddle (TD 9691) 38, 547

26 CFR 1.402A-1, amended; Removal of Allocation Rule for
Disbursements from Designated Roth Accounts to Multi-
ple Destinations (REG-105739-11) 41, 704

26 CFR 1.162-32, added; 1.262-1, amended (TD 9696) 43,
727

Regulations Governing Practice Before the Internal Revenue
Service (REG-138367-06) (TD 9668) 27, 1

REIT Distressed Debt (RP 51) 37, 543

Removal of Allocation Rule for Disbursements from Designated
Roth Accounts to Multiple Destinations (REG-105739-11)
41, 704

Research and experimental expenditures (TD 9680) 32, 254
Retail inventory method (TD 9688) 36, 482

Rules Regarding Inversions and Related Transactions (Note
2014-52) 42, 712

Tax Credit for Employee Health Insurance Expenses of Small
Employers (TD 9672) 30, 196

Temporary relief from certain requirements of § 42 (Rev. Proc.
2014-39) (RP 49) 37, 535

Truncated Taxpayer Identification Numbers (TD 9675) 31, 242

Section 67 Limitations on Estates or Trusts; Change of Effective
Date (TD 9664) 32, 254

Section 1298(f) Reporting Requirements for U.S. Persons that
Hold Stock of a Passive Foreign Investment Company that is
Marked to Market Under Section 475 or Another Chapter 1
Code Provision Other Than Section 1296 (Notice 51) 40, 594
Section 5000A national average premium for a bronze level of
coverage (RP 46) 33, 367

Segregation rules for public groups of shareholders, (REG-
105067-14) 34, 391

Segregation rules for public groups of shareholders, (TD 9685)
34, 379

Standard Industry Fare Level (RR 2014-25) 40, 574

## INCOME TAX-Cont.

Substantiation by Per Diem Rates (Notice 2014-57) 42, 723

Substitute Forms Preparation for Certain Information Returns
(RP 27) 27, 41

Substitute Forms Preparation for Certain Information Returns
(RP 44) 32, 274

Summons Interview Regulations Under Section 7602 (REG-
121542-14) (TD 9669) 28, 103

Unamortized organization and syndication expenses following a
partnership technical termination (TD 9681) 33, 340

Underpayment and overpayments, quarter beginning: July 1,
2014 (RR 14) 27, 12

Underpayment and overpayments, quarter beginning: October 1,
2014 (RR-129839-14) 40, 575

Unrealized gain or loss treatment upon establishment of an
identified mixed straddle (TD 9678) 32, 262

Voluntary withholding(TD-9692) 40, 574

26 CFR 31.3402(p)-1, section (c) added (TD 9692) 40, 574
Withholding Foreign Partnership and Trust Agreements (RP 47)
35, 393

# SELF-EMPLOYMENT TAX

Extending religious and family member FICA and FUTA excep-
tions to disregarded entities; regulations regarding the indoor
tanning services excise tax and disregarded entities (TD 9670)
29, 121

Regulations:

# SPECIAL ANNOUNCEMENT

Annual Filing Season Program (RP 42) 29, 193

Procedures to Avoid Backup Withholding (RP 43) 32, 273

Official Business
Penalty for Private Use, $300

# INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.

# CUMULATIVE BULLETINS

The contents of the weekly Bulletins were consolidated semiannually into permanent, indexed, Cumulative Bulletins through the
2008-2 edition.

# INTERNAL REVENUE BULLETINS ON CD-ROM

Internal Revenue Bulletins are available annually as part of Publication 1796 (Tax Products CD-ROM). The CD-ROM can be
purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders)
or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.

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would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page
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Internal Revenue Bulletin 2014-43 (PDF rendition): IRS Notices

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