Internal Revenue Bulletin 2017-13 (PDF rendition): IRS Revenue Procedures

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HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Notice 2017–21, page 1026.
Attached is Notice 2017–21, which provides for adjustments
to the limitation on housing expenses for purposed of section
911 of the Internal Revenue Code. These adjustments are
made on the basis of geographic differences in housing costs
relative to housing costs in the United States. Further, if the
limitation on housing expenses is higher for taxable year 2017
than the adjusted limitations on housing expenses provided in
Notice 2016 –21, qualified taxpayers may apply the adjusted
limitations for taxable year 2017 to their 2016 taxable year.
Rev. Proc. 2017–26, page 1036
Attached is Revenue Procedure 2017–27, which provides a
waiver for the time requirements for individuals electing to
exclude their foreign earned income who must leave a foreign
country because of war, civil unrest, or similar adverse condi-
tions in that country. Rev. Proc. 2017–26 adds South Sudan
for tax year 2016 for which the minimum time requirements
are waived. Generally, U.S. citizens or resident aliens living and
working abroad are taxed on their worldwide income. However,
if their tax home is in a foreign country and they meet either the
bona fide residence test or the physical presence test, they
can choose to exclude from their income a limited amount of
their foreign earned income ($101,300 for 2016). Both the
bona fide residence test and the physical presence test contain
minimum time requirements.
EMPLOYEE PLANS
Notice 2017–22, page 1033.
This notice sets forth updates on the corporate bond monthly
yield curve, the corresponding spot segment rates for March
2017 used under § 417(e)(3)(D), the 24-month average segment
rates applicable for March 2017, and the 30-year Treasury rates.
These rates reflect the application of § 430(h)(2)(C)(iv), which was
added by the Moving Ahead for Progress in the 21st Century Act,
Public Law 112–141 (MAP-21) and amended by section 2003 of
the Highway and Transportation Funding Act of 2014 (HATFA).
Finding Lists begin on page ii.
Bulletin No. 2017–13
March 27, 2017

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.
March 27, 2017Bulletin No. 2017–13

Part III. Administrative, Procedural, and Miscellaneous
Determination of Housing
Cost Amounts Eligible for
Exclusion or Deduction
for 2017
Notice 2017–21
SECTION 1. PURPOSE
This notice provides adjustments to the
limitation on housing expenses for pur-
poses of section 911 of the Internal Rev-
enue Code for specific locations for 2017.
These adjustments are made on the basis of
geographic differences in housing costs rel-
ative to housing costs in the United States.
SECTION 2. BACKGROUND
Section 911(a) allows a qualified indi-
vidual to elect to exclude from gross in-
come the foreign earned income and hous-
ing cost amount of such individual. The
term “housing cost amount” is generally
the total of the housing expenses for the
taxable year minus a base housing
amount. See section 911(c)(1). For this
purpose, the housing expenses taken into
account are limited to an amount that is
tied to the maximum foreign earned income
exclusion. Specifically, the limit on such
housing expenses equals 30 percent (ad-
justed as may be provided under the Secre-
tary’s authority under section 911(c)(2)(B))
of the maximum exclusion amount (com-
puted on a daily basis), multiplied by the
number of days in the applicable period that
fall within the taxable year. See section
911(c)(2)(A). Thus, under this general lim-
itation, a qualified individual whose entire
taxable year is within the applicable period
is limited to maximum housing expenses of
$30,630 ($102,100 x .30) for 2017.
Similarly, the computation of the base
housing amount is also tied to the maxi-
mum foreign earned income exclusion.
Specifically, the base housing amount is
16% of the maximum exclusion amount
(computed on a daily basis), multiplied by
the number of days in the applicable period
that fall within the taxable year. See sections
911(c)(1)(B) and 911(d)(1). Assuming that
the entire taxable year of a qualified
individual is within the applicable period,
the base housing amount for 2017 is$16,336
($102,100 x .16). Section 911(c)(2)(B) au-
thorizes the Secretary to issue regulations or
other guidance to adjust the percentage un-
der section 911(c)(2)(A)(i) (which deter-
mines the limit on housing expenses) based
on geographic differences in housing costs
relative to housing costs in the United
States. Pursuant to this authority, the Inter-
nal Revenue Service (IRS) and the Treasury
Department have published annual notices
concerning the limitation on the section 911
housing cost amounts since the 2006 taxable
year.
For more background on the foreign
housing exclusion, see https://www.irs.gov/
individuals/international-taxpayers/foreign-
housing-exclusion-or deduction.
SECTION 3. TABLE OF ADJUSTED
LIMITATIONS FOR 2017
The following table provides adjusted
limitations on housing expenses (in lieu of
the otherwise applicable limitation of
$30,630) for 2017.
CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
AngolaLuanda84,000230.14
ArgentinaBuenos Aires56,500154.79
AustraliaMelbourne31,60086.58
AustraliaPerth33,80092.60
AustraliaSydney63,700174.52
AustriaVienna35,40096.99
Bahamas, TheGrand Bahama Island30,90084.66
Bahamas, TheNassau49,700136.16
BahrainBahrain48,300132.33
BarbadosBarbados37,700103.29
BelgiumBrussels38,700106.03
BelgiumGosselies33,80092.60
BelgiumMons33,80092.60
BelgiumSHAPE/Chievres33,80092.60
BermudaBermuda90,000246.58
BrazilRio de Janeiro35,10096.16
BrazilSao Paulo56,600155.07
CanadaCalgary38,500105.48
CanadaMontreal51,300140.55
CanadaOttawa43,600119.45
CanadaQuebec34,90095.62
March 27, 2017Bulletin No. 2017–13
1026

CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
CanadaToronto45,600124.93
CanadaVancouver43,700119.73
Cayman IslandsGrand Cayman48,000131.51
ChileSantiago40,600111.23
ChinaBeijing71,200195.07
ChinaHong Kong114,300313.15
ChinaShanghai57,001156.17
ColombiaBogota58,700160.82
ColombiaAll cities other than Bogota49,400135.34
Costa RicaSan Jose32,00087.67
Democratic Republic
of the Congo
Kinshasa42,000115.07
DenmarkCopenhagen43,704119.74
Dominican Republic Santo Domingo45,500124.66
EcuadorGuayaquil30,80084.38
EcuadorQuito38,200104.66
El SalvadorSan Salvador32,00087.67
EstoniaTallinn46,600127.67
FranceGarches66,400181.92
FranceLyon36,700100.55
FranceMarseille35,80098.08
FranceParis66,400181.92
FranceSevres66,400181.92
FranceSuresnes66,400181.92
FranceVersailles66,400181.92
FranceAll cities other than Garches, Le Havre,
Lyon, Marseille, Montpellier, Paris,
Sevres, Suresnes, and Versailles
31,90087.40
GermanyBabenhausen32,60089.32
GermanyBaumholder32,30088.49
GermanyBerlin39,800109.04
GermanyBirkenfeld32,30088.49
GermanyBoeblingen39,500108.22
GermanyBonn42,000115.07
GermanyCologne56,200153.97
GermanyDarmstadt32,60089.32
GermanyFrankfurt am Main34,00093.15
GermanyGelnhausen41,000112.33
GermanyGiessen36,00098.63
GermanyGrafenwoehr32,90090.14
GermanyHanau41,000112.33
GermanyIdar-Oberstein32,30088.49
GermanyIngolstadt46,500127.40
GermanyKaiserslautern, Landkreis39,800109.04
GermanyKarlsruhe31,40086.03
GermanyKoblenz32,00087.67
GermanyLudwigsburg39,500108.22
Bulletin No. 2017–13March 27, 2017
1027

CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
GermanyMainz43,400118.90
GermanyMunich46,500127.40
GermanyNellingen39,500108.22
GermanyNeubruecke32,30088.49
GermanyOber Ramstadt32,60089.32
GermanyPfullendorf32,00087.67
GermanyPirmasens39,800109.04
GermanySembach39,800109.04
GermanyStuttgart39,500108.22
GermanyVilseck32,90090.14
GermanyWahn42,000115.07
GermanyWiesbaden43,400118.90
GermanyZweibrueken39,800109.04
GermanyAll cities other than Augsburg,
Babenhausen, Bad Aibling, Bad
Kreuznach, Bad Nauheim, Baumholder,
Berchtesgaden, Berlin, Birkenfeld,
Boeblingen, Bonn, Bremen, Bremerhaven,
Butzbach, Cologne, Darmstadt, Delmenhorst,
Duesseldorf, Erlangen, Flensburg, Frankfurt
am Main, Friedberg, Fuerth, Garlstedt,
Garmisch-Partenkirchen, Geilenkirchen,
Gelnhausen, Germersheim, Giebelstadt,
Grafenwoehr, Grefrath, Greven, Gruenstadt,
Hamburg, Hanau, Handorf, Hannover,
Heidelberg, Heilbronn, Herongen,
Idar-Oberstein, Ingolstadt, Kaiserslautern,
Landkreis,Kalkar, Karlsruhe, Kerpen,
Kitzingen, Koblenz, Leimen, Leipzig,
Ludwigsburg, Mainz, Mannheim, Mayen,
Moenchen-Gladbach, Muenster, Munich,
Nellingen, Neubruecke, Noervenich,
Nuernberg, Ober Ramstadt, Oberammergau,
Osterholz-Scharmbeck, Pirmasens, Rheinau,
Rheinberg, Schwabach, Schwetzingen,
Seckenheim, Sembach, Stuttgart, Twisteden,
Vilseck, Wahn, Wertheim, Wiesbaden,
Worms, Wuerzburg, Zirndorf, and
Zweibrueken
32,00087.67
GhanaAccra36,00098.63
GreeceAthens32,50089.04
GreeceElefsis32,50089.04
GreeceEllinikon32,50089.04
GreeceMt. Parnis32,50089.04
GreeceMt. Pateras32,50089.04
GreeceNea Makri32,50089.04
GreecePiraeus32,50089.04
GreeceTanagra32,50089.04
GuatemalaGuatemala City41,800114.52
GuineaConakry51,300140.55
GuyanaGeorgetown35,00095.89
March 27, 2017Bulletin No. 2017–13
1028

CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
Holy See, TheHoly See, The44,200121.10
HungaryBudapest32,50089.04
HungaryPapá44,500121.92
IndiaMumbai67,920186.08
IndiaNew Delhi56,124153.76
IndonesiaJakarta37,776103.50
IrelandDublin38,400105.21
IsraelTel Aviv50,800139.18
ItalyGenoa41,800114.52
ItalyGioia Tauro31,20085.48
ItalyLa Spezia40,400110.68
ItalyMilan66,000180.82
ItalyNaples44,300121.37
ItalyParma33,50091.78
ItalyPordenone-Aviano34,30093.97
ItalyRome44,200121.10
ItalyTurin33,10090.68
ItalyVicenza36,00098.63
JamaicaKingston41,200112.88
JapanAtsugi38,200104.66
JapanCamp Zama38,200104.66
JapanChiba-Ken38,200104.66
JapanFussa38,200104.66
JapanGifu74,300203.56
JapanHaneda38,200104.66
JapanKanagawa-Ken38,200104.66
JapanKomaki74,300203.56
JapanMachidi-Shi38,200104.66
JapanNagoya74,300203.56
JapanOkinawa Prefecture53,000145.21
JapanOsaka-Kobe90,664248.39
JapanSagamihara38,200104.66
JapanSaitama-Ken38,200104.66
JapanSasebo32,00087.67
JapanTachikawa38,200104.66
JapanTokyo85,700234.79
JapanTokyo-to38,200104.66
JapanYokohama47,000128.77
JapanYokosuka44,900123.01
JapanYokota36,500100.00
KazakhstanAlmaty48,000131.51
KoreaCamp Colbern54,200148.49
KoreaCamp Market54,900150.41
KoreaCamp Mercer54,200148.49
KoreaK-1654,900150.41
KoreaKimpo Airfield54,900150.41
Bulletin No. 2017–13March 27, 2017
1029

CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
KoreaMunsan31,50086.30
KoreaOsan AB34,30093.97
KoreaPyongtaek39,200107.40
KoreaSeoul54,900150.41
KoreaSuwon54,900150.41
KoreaTaegu33,40091.51
KoreaTongduchon35,20096.44
KuwaitKuwait City64,400176.44
KuwaitAll cities other than Kuwait City57,700158.08
LuxembourgLuxembourg36,20099.18
MacedoniaSkopje35,40096.99
MalaysiaKuala Lumpur46,200126.58
MalaysiaAll cities other than Kuala Lumpur33,70092.33
MaltaMalta55,100150.96
MexicoMazatlan31,00084.93
MexicoMerida37,900103.84
MexicoMexico City47,900131.23
MexicoMonterrey33,20090.96
MexicoAllcities other than Ciudad Juarez,
Cuernavaca,Guadalajara, Hermosillo,
Matamoros, Mazatlan, Merida, Metapa,
Mexico City, Monterrey, Nogales, Nuevo
Laredo, Reynosa, Tapachula, Tijuana,
Tuxtla Gutierrez, and Veracruz
39,400107.95
MozambiqueMaputo39,500108.22
NamibiaWindhoek32,10087.95
NetherlandsAmsterdam52,900144.93
NetherlandsAruba36,00098.63
NetherlandsBrunssum32,40088.77
NetherlandsEygelshoven32,40088.77
NetherlandsHague, The52,700144.38
NetherlandsHeerlen32,40088.77
NetherlandsHoensbroek32,40088.77
NetherlandsHulsberg32,40088.77
NetherlandsKerkrade32,40088.77
NetherlandsLandgraaf32,40088.77
NetherlandsMaastricht32,40088.77
NetherlandsPapendrecht31,70086.85
NetherlandsRotterdam31,70086.85
NetherlandsSchaesburg32,40088.77
NetherlandsSchinnen32,40088.77
NetherlandsSchiphol52,900144.93
NetherlandsYpenburg52,700144.38
NetherlandsAll cities other than Amsterdam, Aruba,
Brunssum, Coevorden, Eygelshoven, The
Hague, Heerlen, Hoensbroek, Hulsberg,
Kerkrade, Landgraaf, Maastricht, Margraten,
Papendrecht, Rotterdam, Schaesburg,
Schinnen, Schiphol, and Ypenburg
31,30085.75
Netherlands AntillesCuracao45,800125.48
March 27, 2017Bulletin No. 2017–13
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CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
New ZealandAuckland35,70097.81
New ZealandChristchurch32,10087.95
New ZealandWellington33,80092.60
NicaraguaManagua31,80087.12
NigeriaAbuja36,00098.63
NorwayOslo35,20096.44
OmanMuscat41,300113.15
PanamaPanama City35,50097.26
ParaguayAsuncion31,10085.21
PeruLima39,100107.12
PhilippinesCavite34,00093.15
PhilippinesManila37,380102.41
PortugalAlverca40,400110.68
PortugalLisbon40,400110.68
QatarAl Udeid (in All Cities)32,40088.77
QatarDoha42,744117.11
QatarAll cities other than Doha32,40088.77
RussiaMoscow108,000295.89
RussiaSaint Petersburg60,000164.38
RussiaSakhalin Island77,500212.33
RussiaVladivostok77,500212.33
RussiaYekaterinburg47,400129.86
RwandaKigali31,50086.30
Saudi ArabiaJeddah30,66784.02
Saudi ArabiaRiyadh40,000109.59
SingaporeSingapore75,900207.95
SloveniaLjubljana46,400127.12
South AfricaPretoria39,300107.67
SpainBarcelona40,600111.23
SpainMadrid53,900147.67
SpainRota32,90090.14
SpainValencia31,00084.93
SurinameParamaribo33,00090.41
SwitzerlandBern63,000172.60
SwitzerlandGeneva90,600248.22
SwitzerlandZurich39,219107.45
SwitzerlandAll cities other than Bern, Geneva,
and Zurich
32,90090.14
TaiwanTaipei46,188126.54
TanzaniaDar Es Salaam44,000120.55
ThailandBangkok59,000161.64
Trinidad and Tobago Port of Spain54,500149.32
TurkeyIzmir-Cigli31,60086.58
TurkeyYamanlar31,60086.58
UkraineKiev72,000197.26
United Arab Emirates Abu Dhabi49,687136.13
United Arab Emirates Dubai57,174156.64
United KingdomBasingstoke41,099112.60
Bulletin No. 2017–13March 27, 2017
1031

CountryLocation
Limitation on Housing
Expenses (full year)
Limitation on Housing
Expenses (daily)
United KingdomBath41,000112.33
United KingdomBracknell62,100170.14
United KingdomBristol31,30085.75
United KingdomBrookwood34,30093.97
United KingdomCambridge40,700111.51
United KingdomCaversham73,800202.19
United KingdomCheltenham49,600135.89
United KingdomCroughton35,00095.89
United KingdomFairford34,00093.15
United KingdomFarnborough54,700149.86
United KingdomFelixstowe32,90090.14
United KingdomGibraltar44,616122.24
United KingdomHarrogate36,800100.82
United KingdomHigh Wycombe62,100170.14
United KingdomHuntingdon34,30093.97
United KingdomKemble34,00093.15
United KingdomLakenheath43,900120.27
United KingdomLiverpool30,90084.66
United KingdomLondon68,700188.22
United KingdomLoudwater54,200148.49
United KingdomMenwith Hill36,800100.82
United KingdomMildenhall43,900120.27
United KingdomOxfordshire34,50094.52
United KingdomPlymouth34,50094.52
United KingdomPortsmouth34,50094.52
United KingdomReading62,100170.14
United KingdomRochester35,40096.99
United KingdomSamlesbury34,30093.97
United KingdomSouthampton44,200121.10
United KingdomSurrey48,402132.61
United KingdomWaterbeach35,30096.71
United KingdomWiltshire32,80089.86
United KingdomAll cities other than Basingstoke, Bath,
Belfast, Birmingham, Bracknell, Bristol,
Brookwood, Brough, Cambridge,
Caversham, Chelmsford, Cheltenham,
Chicksands, Croughton, Dunstable,
Edinburgh, Edzell, Fairford, Farnborough,
Felixstowe, Ft. Halstead, Gibraltar,
Glenrothes, Greenham Common,
Harrogate, High Wycombe, Huntingdon,
Hythe, Kemble, Lakenheath, Liverpool,
London, Loudwater, Menwith Hill,
Mildenhall, Nottingham, Oxfordshire,
Plymouth, Portsmouth, Reading, Rochester,
Samlesbury, Southampton, Surrey,
Waterbeach, Welford, West Byfleet, and
Wiltshire
34,30093.97
VenezuelaCaracas57,000156.16
VietnamHanoi46,800128.22
VietnamHo Chi Minh City42,000115.07
March 27, 2017Bulletin No. 2017–13
1032

SECTION 4. ELECTION TO APPLY
2017 ADJUSTED LIMITATIONS TO
2016 TAXABLE YEAR
For some locations, the limitation on
housing expenses provided in Section 3 of
this notice may be higher than the limita-
tion on housing expenses provided in the
“Table of Adjusted Limitations for 2016”
in Notice 2016–21. A qualified individual
incurring housing expenses in such a lo-
cation during 2016 may apply the adjusted
limitation on housing expenses provided
in Section 3 of this notice for 2016 in lieu
of the amounts provided in the “Table of
Adjusted Limitations for 2016” in Notice
2016–21 (and as set forth in the Instruc-
tions to Form 2555,Foreign Earned In-
come, for 2016).
The Treasury Department and the IRS
anticipate that future annual notices pro-
viding adjustments to housing expense
limitations will make a similar election
available to qualified individuals that in-
cur housing expenses in the immediately
preceding year. For example, when ad-
justed housing expense limitations for
2018 are issued, it is expected that taxpay-
ers will be permitted to apply those ad-
justed limitations to the 2017 taxable year.
SECTION 5. Filing Prior Year or
Amended Tax Returns
Notice 2011–8, 2011–1 C.B. 503; No-
tice 2012–19, 2012–1 C.B. 440; Notice
2013–31, 2013–1 C.B. 1099; Notice
2014–29, 2014–1 C.B. 991; Notice 2015–
33, 2015–18 I.R.B. 934; and Notice
2016–21, 2016–1 C.B. 465, are relisted to
assist those individuals who are filing
prior year or amended tax returns.
EFFECT ON OTHER DOCUMENTS
This notice supersedes Notice 2006–
87, 2006–2 C.B. 766; Notice 2007–25,
2007–1 C.B. 760; Notice 2007–77, 2007–2
C.B. 735; Notice 2008–107, 2008–2 C.B.
1266; Notice 2010–27, 2010–1 C.B. 531;
Notice 2011–8, 2011–1 C.B. 503; Notice
2012–19, 2012–1 C.B. 440; Notice 2013–
31, 2013–1 C.B. 1099; Notice 2014–29,
2014–1 C.B. 991; Notice 2015–33,2015–18
I.R.B. 934; and Notice 2016–21, 2016–1
C.B. 465.
EFFECTIVE DATE
This notice is effective for taxable
years beginning on or after January 1,
2017. However, as provided in Section 4,
a taxpayer may elect to apply the 2017
adjusted housing limitations contained in
Section 3 of this notice to his or her tax-
able year beginning in 2016.
DRAFTING INFORMATION
The principal author of this notice is
Kate Y. Hwa of the Office of Associate
Chief Counsel (International). For further
information regarding this notice contact
Kate Y. Hwa on (202) 317-6934 (not a
toll-free number).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2017–22
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used un-
der § 417(e)(3), and the 24-month average
segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the interest
rate on 30-year Treasury securities under
§ 417(e)(3)(A)(ii)(II) as in effect for plan
years beginning before 2008 and the 30-
year Treasury weighted average rate un-
der § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT RATES
Generally, except for certain plans un-
der sections 104 and 105 of the Pension
Protection Act of 2006 and CSEC plans
under § 414(y), § 430 of the Code speci-
fies the minimum funding requirements
that apply to single-employer plans pursu-
ant to § 412. Section 430(h)(2) specifies
the interest rates that must be used to
determine a plan’s target normal cost and
funding target. Under this provision, pres-
ent value is generally determined using
three 24-month average interest rates (“seg-
ment rates”), each of which applies to cash
flows during specified periods. To the extent
provided under § 430(h)(2)(C)(iv), these
segment rates are adjusted by the applicable
percentage of the 25-year average segment
rates for the period ending September 30 of
the year preceding the calendar year in which
the plan year begins.
1
However, anelection
may be made under § 430(h)(2)(D)(ii) to
use the monthly yield curve in place of the
segment rates.
Notice 2007–81, 2007–44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond seg-
ment rates used to compute the target nor-
mal cost and the funding target. Consis-
tent with the methodology specified in
Notice 2007–81, the monthly corporate
bond yield curve derived from February
2017 data is in Table I at the end of this
notice. The spot first, second, and third seg-
ment rates for the month of February 2017
are, respectively, 1.96, 3.91, and 4.69.
The 24-month average segment
rates determined under § 430(h)(2)(C)(i)
through(iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the applica-
ble minimum and maximum percentages of
the corresponding 25-year average segment
rates. For plan years beginning before 2021,
the applicable minimum percentage is 90%
and the applicable maximum percentage is
110%. The 25-year average segment rates
for plan years beginning in 2015, 2016, and
2017 were published in Notice 2014–50,
2014–40 I.R.B. 590, Notice 2015–61,
2015–39 I.R.B. 408, and Notice 2016–54,
2016–40 I.R.B. 429, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for March
2017 without adjustment for the 25-year
average segment rate limits are as follows:
1
Pursuant to § 433(h)(3)(A), the 3
rd
segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
Bulletin No. 2017–13March 27, 2017
1033

Applicable MonthFirst SegmentSecond SegmentThird Segment
March 20171.623.804.75
Based on § 430(h)(2)(C)(iv), the 24-
month averages applicable for March
2017 adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates, are as follows:
For Plan Years
Beginning In
Adjusted 24-Month Average Segment Rates
Applicable MonthFirst SegmentSecond SegmentThird Segment
2016March20174.435.916.65
2017March20174.165.726.48
30-YEAR TREASURY SECURITIES
INTEREST RATES
Generally for plan years beginning af-
ter 2007, § 431 specifies the minimum
funding requirements that apply to multiem-
ployer plans pursuant to § 412. Section
431(c)(6)(B) specifies a minimum amount
for the full-funding limitation described in
§ 431(c)(6)(A), based on the plan’s current
liability. Section 431(c)(6)(E)(ii)(I) provides
that the interest rate used to calculate current
liability for this purpose must be no more
than 5 percent above and no more than 10
percent below the weighted average of the
rates of interest on 30-year Treasury securi-
ties during the four-year period ending on
the last day before the beginning of the plan
year. Notice 88–73, 1988–2 C.B. 383, pro-
vides guidelines for determining the
weighted average interest rate. The rate of
interest on 30-year Treasury securities for
February 2017 is 3.03 percent. The Service
determined this rate as the average of the
daily determinations of yield on the 30-year
Treasury bond maturing in November 2046
determined each day through February 8,
2017 and the yield on the 30-year Treasury
bond maturing in February 2047 determined
each day for the balance of the month. For
plan years beginning in the month shown
below, the weighted average of the rates of
interest on 30-year Treasury securities and
the permissible range of rates used to calcu-
late current liability are as follows:
For Plan Years Beginning in
30-Year Treasury
Weighted Average
Permissible Range
MonthYear90%to105%
March20172.902.613.05
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month av-
erage. Notice 2007–81 provides guidelines
for determining the minimum present value
segment rates. Pursuant to that notice, the
minimum present value segment rates deter-
mined for February 2017 are as follows:
First SegmentSecond SegmentThird Segment
1.963.914.69
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of the Associ-
ate Chief Counsel (Tax Exempt and Gov-
ernment Entities). However, other person-
nel from the IRS participated in the
development of this guidance. For further
information regarding this notice, contact
Mr. Morgan at 202-317-6700 or Tony
Montanaro at 202-317-8698 (not toll-free
numbers).
Table I
Monthly Yield Curve for February 2017
Derived from February 2017 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.51.1320.54.4740.54.7260.54.8180.54.85
1.01.3721.04.4941.04.7261.04.8181.04.85
1.51.6021.54.5041.54.7261.54.8181.54.85
2.01.7922.04.5142.04.7362.04.8182.04.85
March 27, 2017Bulletin No. 2017–13
1034

Table I
Monthly Yield Curve for February 2017
Derived from February 2017 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
2.51.9622.54.5242.54.7362.54.8182.54.85
3.02.1023.04.5243.04.7363.04.8183.04.85
3.52.2323.54.5343.54.7463.54.8183.54.85
4.02.3624.04.5444.04.7464.04.8184.04.85
4.52.4824.54.5544.54.7464.54.8284.54.86
5.02.6125.04.5645.04.7465.04.8285.04.86
5.52.7325.54.5645.54.7565.54.8285.54.86
6.02.8626.04.5746.04.7566.04.8286.04.86
6.52.9826.54.5846.54.7566.54.8286.54.86
7.03.1127.04.5947.04.7567.04.8287.04.86
7.53.2227.54.5947.54.7667.54.8287.54.86
8.03.3428.04.6048.04.7668.04.8288.04.86
8.53.4428.54.6148.54.7668.54.8388.54.86
9.03.5429.04.6149.04.7669.04.8389.04.86
9.53.6429.54.6249.54.7769.54.8389.54.86
10.03.7330.04.6350.04.7770.04.8390.04.86
10.53.8130.54.6350.54.7770.54.8390.54.86
11.03.8831.04.6451.04.7771.04.8391.04.86
11.53.9531.54.6451.54.7771.54.8391.54.87
12.04.0132.04.6552.04.7872.04.8392.04.87
12.54.0732.54.6552.54.7872.54.8392.54.87
13.04.1233.04.6653.04.7873.04.8493.04.87
13.54.1633.54.6653.54.7873.54.8493.54.87
14.04.2034.04.6754.04.7874.04.8494.04.87
14.54.2434.54.6754.54.7974.54.8494.54.87
15.04.2735.04.6855.04.7975.04.8495.04.87
15.54.3035.54.6855.54.7975.54.8495.54.87
16.04.3236.04.6856.04.7976.04.8496.04.87
16.54.3536.54.6956.54.7976.54.8496.54.87
17.04.3737.04.6957.04.7977.04.8497.04.87
17.54.3937.54.7057.54.8077.54.8497.54.87
18.04.4138.04.7058.04.8078.04.8498.04.87
18.54.4238.54.7058.54.8078.54.8598.54.87
19.04.4439.04.7159.04.8079.04.8599.04.87
19.54.4539.54.7159.54.8079.54.8599.54.87
20.04.4640.04.7160.04.8080.04.85100.04.87
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of cor-
rect tax liability.
(Also: Part I, §§ 911; 1.911–1.)
Rev. Proc. 2017–26
SECTION 1. PURPOSE
.01 This revenue procedure provides
information to any individual who failed
to meet the eligibility requirements of sec-
tion 911(d)(1) of the Internal Revenue
Code because adverse conditions in a for-
eign country precluded the individual
from meeting those requirements for tax-
able year 2016.
.02 This revenue procedure lists the
countries for which the eligibility require-
ments of section 911(d)(1) are waived for
taxable year 2016.
Bulletin No. 2017–13March 27, 2017
1035

SECTION 2. BACKGROUND
.01 Sections 911(a) and (c)(4) of the
Code allow a “qualified individual,” as
defined in section 911(d), to exempt from
taxation the individual’s foreign earned
income and the housing cost amount.
.02 Section 911(d)(1) of the Code de-
fines the term “qualified individual” as an
individual whose tax home is in a foreign
country and who is (A) a citizen of the
United States and establishes to the satis-
faction of the Secretary of the Treasury
that the individual has been abona fide
resident of a foreign country or countries
for an uninterrupted period that includes
an entire taxable year, or (B) a citizen or
resident of the United States who, during
any period of 12 consecutive months, is
present in a foreign country or countries
during at least 330 full days.
.03 Section 911(d)(4) of the Code pro-
vides an exception to the eligibility re-
quirements of section 911(d)(1). An indi-
vidual will be treated as a qualified
individual with respect to a period in
which the individual was abona fideres-
ident of, or was present in, a foreign coun-
try if the individual left the country during
a period for which the Secretary of the
Treasury, after consultation with the Sec-
retary of State, determines that individuals
were required to leave because of war,
civil unrest, or similar adverse conditions
that precluded the normal conduct of busi-
ness. An individual must establish that but
for those conditions the individual could
reasonably have been expected to meet
the eligibility requirements.
SECTION 3. APPLICATION
.01 For 2016, the Secretary of the Trea-
sury, in consultation with the Secretary of
State, has determined that war, civil un-
rest, or similar adverse conditions pre-
cluded the normal conduct of business in
the following country beginning on the
specified date:
CountryDate of Departure On or After
South SudanJuly 10, 2016
Accordingly, for purposes of section
911 of the Code, an individual who left
South Sudan on or after July 10, 2016,
will be treated as a qualified individual
with respect to the period during which
that individual was present in, or was a
bona fideresident of, South Sudan if the
individual establishes a reasonable expec-
tation of meeting the requirements of sec-
tion 911(d) but for those conditions.
.02 To qualify for relief under section
911(d)(4) of the Code, an individual must
have established residency, or have been
physically present, in the foreign country
on or before the date that the Secretary of
the Treasury determines that individuals
were required to leave the foreign country.
Accordingly, individuals who were first
physically present or established resi-
dency in South Sudan after July 10, 2016,
are not eligible to qualify for the excep-
tion provided in section 911(d)(4) of the
Code for taxable year 2016.
SECTION 4. INQUIRIES
A taxpayer who needs assistance on
how to claim this exclusion, or on how to
file an amended return, should contact a
local IRS Office or consult the section
under the headingHow to Get Tax
Helpathttps://www.irs.gov/Individuals/
International-Taxpayers/U.S.-Citizens-and-
Resident-Aliens-Abroad.
SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Kate Y. Hwa of the Office of
Associate Chief Counsel (International).
For further information regarding this rev-
enue procedure contact Kate Y. Hwa on
(202) 317-6934 (not a toll free number).
March 27, 2017Bulletin No. 2017–13
1036

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example,modifiedand
supersededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2017–13March 27, 2017
i

Numerical Finding List
1
Bulletin 2017–1 through 2017–13
Action on Decision:
2017-1, 2016-7 I.R.B.868
Announcements:
2017-01, 2017-08 I.R.B.941
2017-02, 2017-10 I.R.B.1007
Notices:
2017-1, 2017-2 I.R.B.367
2017-2, 2017-4 I.R.B.539
2017-3, 2017-2 I.R.B.368
2017-4, 2017-4 I.R.B.541
2017-5, 2017-6 I.R.B.779
2017-6, 2017-3 I.R.B.422
2017-7, 2017-3 I.R.B.423
2017-8, 2017-3 I.R.B.423
2017-9, 2017-4 I.R.B.542
2017-10, 2017-4 I.R.B.544
2017-12, 2017-5 I.R.B.742
2017-13, 2017-6 I.R.B.780
2017-14, 2017-6 I.R.B.783
2017-15, 2017-6 I.R.B.783
2017-16, 2017-7 I.R.B.913
2017-18, 2017-9 I.R.B.997
2017-19, 2017-9 I.R.B.1000
2017-20, 2017-11 I.R.B.1010
2017-21, 2017-13 I.R.B.1026
2017-22, 2017-13 I.R.B.1033
Proposed Regulations:
REG-137604-07, 2017-7 I.R.B.923
REG-128276-12, 2017-2 I.R.B.369
REG-103477-14, 2017-5 I.R.B.746
REG-112324-15, 2017-4 I.R.B.547
REG-127203-15, 2017-7 I.R.B.918
REG-131643-15, 2017-6 I.R.B.865
REG-134438-15, 2017-2 I.R.B.373
REG-112800-16, 2017-4 I.R.B.569
REG-123829-16, 2017-5 I.R.B.764
REG-123841-16, 2017-5 I.R.B.766
REG-133353-16, 2017-2 I.R.B.372
REG-134247-16, 2017-5 I.R.B.744
REG-135122-16, 2017-9 I.R.B.1005
Revenue Procedures:
2017-1, 2017-1 I.R.B.1
2017-2, 2017-1 I.R.B.106
2017-3, 2017-1 I.R.B.130
2017-4, 2017-1 I.R.B.146
2017-5, 2017-1 I.R.B.230
2017-7, 2017-1 I.R.B.269
2017-12, 2017-3 I.R.B.424
2017-13, 2017-6 I.R.B.787
Revenue Procedures:—Continued
2017-14, 2017-3 I.R.B.426
2017-15, 2017-3 I.R.B.437
2017-16, 2017-3 I.R.B.501
2017-18, 2017-5 I.R.B.743
2017-19, 2017-7 I.R.B.913
2017-21, 2017-6 I.R.B.791
2017-22, 2017-6 I.R.B.863
2017-23, 2017-7 I.R.B.915
2017-24, 2017-7 I.R.B.916
2017-26, 2017-13 I.R.B.1036
Revenue Rulings:
2017-1, 2017-3 I.R.B.377
2017-2, 2017-2 I.R.B.364
2017-3, 2017-4 I.R.B.522
2017-4, 2017-6 I.R.B.776
2017-5, 2017-9 I.R.B.1000
2017-6, 2017-12 I.R.B.1011
2017-7, 2017-10 I.R.B.1009
Treasury Decisions:
9794, 2017-2 I.R.B.273
9795, 2017-2 I.R.B.326
9796, 2017-3 I.R.B.380
9801, 2017-2 I.R.B.355
9802, 2017-2 I.R.B.361
9803, 2017-3 I.R.B.384
9804, 2017-3 I.R.B.406
9806, 2017-4 I.R.B.524
9807, 2017-5 I.R.B.573
9808, 2017-5 I.R.B.580
9809, 2017-5 I.R.B.664
9810, 2017-6 I.R.B.775
9811, 2017-7 I.R.B.869
9814, 2017-7 I.R.B.878
9815, 2017-9 I.R.B.944
9817, 2017-9 I.R.B.968
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2016–27 through 2016–52 is in Internal Revenue Bulletin
2016–52, dated December 26, 2016.
March 27, 2017Bulletin No. 2017–13
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2017–1 through 2017–13
Notices:
2002-1
Amplified by
Notice 2017-1, 2017-2 I.R.B.367
2010-46
Obsoleted by
Notice 2017-1, 2017-2 I.R.B.367
2016-29
Modified by
Notice 2017-6, 2017-3 I.R.B.422
Revenue Procedures:
2013-22
Clarified by
Rev. Proc. 2017-18, 2017-05 I.R.B.743
2015-57
Modified by
Rev. Proc. 2017-24, 2017-07 I.R.B.916
Treasury Decisions:
2010-46
Obsoleted by
T.D. 9815 2017-09 I.R.B.944
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2016–27 through 2016–52 is in Internal Revenue Bulletin
2016–52, dated December 26, 2016.
Bulletin No. 2017–13March 27, 2017
iii

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 atwww.irs.gov/irb/.
We Welcome Comments About the Internal Revenue Bulletin
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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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NW, IR-6230 Washington, DC 20224.
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