Internal Revenue Bulletin 2019-37 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2019–37
September 9, 2019
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.
EMPLOYEE PLANS
NOT 2019-49, page 699.
Notice 2019-49 extends the temporary nondiscrimination re-
lief for closed defined benefit plans that is provided in Notice
2014-5, 2014-2 I.R.B. 276, by making that relief available for
plan years beginning before 2021 if the conditions of Notice
2014-5 are satisfied.
EMPLOYMENT TAX + INCOME TAX
REG-101378-19, page 702.
Employers must generally include the fair market value of
the personal use of an employer-provided vehicle in an em-
ployee’s income for federal income and employment tax pur-
poses. IRS regulations provide various methods for valuing
an employee’s personal use of an employer-provided vehicle.
In order to use some of these valuation methods, the fair
market value of the vehicle cannot exceed a stated amount
that is indexed for inflation each year. These proposed reg-
ulations explain how to determine the maximum fair market
value of an employer-provided vehicle for purposes of these
special valuation methods.
EXCISE TAX
NOT 2019-50, page 700.
This Notice announces the applicable amount for the Afford-
able Care Act Section 9010 health insurance providers fee
for the 2020 fee year.
INCOME TAX
NOT 2019-46, page 695.
This notice announces that the Department of the Treasury
and the Internal Revenue Service intend to issue regulations
that will permit a domestic partnership or S corporation to
apply the rules in proposed §1.951A-5 for taxable years end-
ing before June 22, 2019. This notice also addresses the
applicability of penalties in the case of a domestic partner-
ship or S corporation that acted consistently with proposed
§1.951A-5 on or before June 21, 2019, but files a tax return
consistent with the final regulations under §1.951A-1(e). In
order to apply the rules in proposed §1.951A-5 or for pen-
alties not to apply as discussed in this notice, a domestic
partnership or S corporation must satisfy certain notification
and reporting requirements described in this notice.
Finding Lists begin on page ii.

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Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, 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 sub-
stantive 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 inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation 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
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (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.
September 9, 2019 Bulletin No. 2019–37

Part III.
Domestic Partnerships and
S Corporations Filing Under
Proposed GILTI Regulations
Notice 2019-46
SECTION 1. OVERVIEW
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to issue regulations that will
permit a domestic partnership or S cor-
poration to apply the rules in proposed
§1.951A-5 for taxable years ending before
June 22, 2019. This notice also addresses
the applicability of penalties in the case
of a domestic partnership or S corpora-
tion that acted consistently with proposed
§1.951A-5 on or before June 21, 2019, but
files a tax return consistent with the final
regulations under §1.951A-1(e). In order
to apply the rules in proposed §1.951A-5
or for penalties not to apply as discussed
in this notice, a domestic partnership or S
corporation must satisfy certain notifica-
tion and reporting requirements described
in section 5 of this notice.
The regulations described in this notice
will be effective for taxable years ending
before June 22, 2019. Prior to the issuance
of the regulations described in this notice,
domestic partnerships and S corporations
may rely on this notice, provided they sat-
isfy the requirements described herein.
SECTION 2. BACKGROUND
.01 Partnership and Partner Returns
Section 6031(a) of the Internal Revenue
Code (Code) requires every partnership to
file a return for each taxable year stating
specifically the items of its gross income
and the deductions allowable by subtitle
A of the Code and such other information
for the purposes of carrying out the pro-
visions of subtitle A as the Secretary may
by forms and regulations prescribe, in-
cluding information about the partners in
the partnership. Section 1.6031(a)-1(a)(2)
requires that the partnership return contain
the information required by the prescribed
form and the accompanying instructions.
For a partnership, the return required by
section 6031(a) is Form 1065, U.S. Return
of Partnership Income, which includes
Schedules K-1 (Form 1065). Schedule
K-1 (Form 1065) provides the name of the
partner and the partner’s distributive share
of taxable income and other information
related to the partner regarding the part-
nership.
Section 6031(b) requires that a part-
nership required to file a return under
section 6031(a) furnish to each partner a
copy of the Schedule K-1 (Form 1065)
that includes such information as may
be required to be shown by regulations.
In general, section 6031(b) also prohib-
its partnerships from amending the in-
formation required to be furnished to its
partners after the due date of the return,
unless the partnership has made an elec-
tion under section 6221(b) for the taxable
year. A partnership subject to this prohi-
bition under section 6031(b) that has not
timely filed a request to extend the time to
file its Form 1065 may not be eligible for
the relief provided by this notice unless
the partnership fulfills the requirements of
Rev. Proc. 2019-32, 2019-33 I.R.B. 659,
which allows a Form 1065 to be filed by
an extended deadline. A partnership seek-
ing relief under Rev. Proc. 2019-32 must
furnish Schedules K-1 consistent with the
superseding Form 1065.
Section 6222(a) generally requires a
partner in a partnership to treat a partner-
ship-related item, as defined in section
6241(2)(B) and the corresponding regula-
tions, consistently on the partner’s return
with the treatment of such item by the
partnership on its return.
Section 6222(c) provides that the con-
sistency requirement of section 6222(a)
does not apply to a partnership-related
item if the partner files with the Secretary
a statement identifying the inconsistency.
The statement required by section 6222(c)
is Form 8082, Notice of Inconsistent
Treatment or Administrative Adjustment
Request (AAR), which may be filed on an
original, amended, or superseding return.
Sections 6072(b) and 6031(b) provide
that the deadline for filing Form 1065 and
furnishing Schedules K-1 (Form 1065) to
partners is generally the fifteenth day of
the third month after the end of the part-
nership’s taxable year. For a calendar-year
partnership, this deadline generally is
March 15.
Section 6081(a) permits the Secre-
tary of the Treasury Department to grant
a reasonable extension of time, generally
no more than six months, for filing any
return, statement, or other required doc-
ument. Generally, to receive an exten-
sion of time to file a return, §1.6081-2(b)
provides that a partnership must submit
an application before the date prescribed
for filing Form 1065 (taking into account
certain extensions). For a calendar-year
partnership that requests a six-month ex-
tension, the extended deadline for its 2018
taxable year is September 16, 2019.
.02 S Corporation and Shareholder
Returns
Section 6037(a) requires every S cor-
poration to file a return for each taxable
year stating specifically the items of its
gross income and the deductions allow-
able by subtitle A of the Code, the names
and addresses of all persons owning stock
in the corporation at any time during the
taxable year, the number of shares of stock
owned by each shareholder at all times
during the taxable year, the amount of
money and other property distributed by
the corporation during the taxable year to
each shareholder, the date of each distri-
bution, each shareholder’s pro rata share
of each item of the corporation for the
taxable year, and such other information
for the purpose of carrying out the provi-
sions of subchapter S of chapter 1 of the
Code, as the Secretary may by forms and
regulations prescribe. Section 1.6037-
1(a) provides in part that the return shall
set forth the items of gross income and
the deductions allowable in computing
taxable income as required by the return
form or in the instructions issued with
respect thereto. For an S corporation, the
return required by section 6037(a) is Form
1120S, U.S. Income Tax Return for an S
Corporation, which includes Schedule
K-1 (Form 1120S). Schedule K-1 (Form
1120S) provides the name of the share-
Bulletin No. 2019–37 695 September 9, 2019

holder and the shareholder’s pro rata share
of taxable income and other information
related to the shareholder regarding the S
corporation.
Section 6037(b) requires that an S cor-
poration required to file a return under sec-
tion 6037(a) furnish a copy of the Sched-
ule K-1 (Form 1120S) to each shareholder
that includes such information as may be
required to be shown by regulations.
Section 6037(c)(1) generally requires
a shareholder of an S corporation to treat
a subchapter S item, as defined in section
6037(c)(4), consistently on the sharehold-
er’s return with the treatment of such item
by the S corporation on its return.
Section 6037(c)(2) provides that
the consistency requirement of section
6037(c)(1) does not apply to a subchap-
ter S item if the shareholder files with
the Secretary a statement identifying the
inconsistency. The statement required by
section 6037(c)(2) is Form 8082, which
may be filed on an original, amended, or
superseding return.
Sections 6072(b) and 6037(b) provide
that the deadline for filing Form 1120S
and furnishing Schedules K-1 (Form
1120S) to shareholders of an S corpora-
tion is generally the fifteenth day of the
third month after the end of the S corpo-
ration’s taxable year. For a calendar-year
S corporation, this deadline generally is
March 15. As with partnership returns,
this deadline generally may be extended
upon request for up to six months under
section 6081(a). For a calendar-year S
corporation that requests a six-month ex-
tension, the extended deadline for its 2018
taxable year is September 16, 2019.
.03 Potentially Applicable Penalties
Section 6698(a) imposes a penalty if
any partnership that is required to file a
return under section 6031 fails to file a
timely return, or files a return that fails to
show the information required under that
section, unless the failure is due to reason-
able cause.
Section 6699(a) imposes a penalty if
any S corporation required to file a return
under section 6037 fails to file a timely
return, or files a return that fails to show
the information required under that sec-
tion, unless the failure is due to reasonable
cause.
Section 6722(a) imposes penalties for
failing to include all required information
or for including incorrect information on
a payee statement (as defined in section
6724(d)(2) and the corresponding regu-
lations), such as a Schedule K-1 (Form
1065) or Schedule K-1 (Form 1120S),
unless section 6724(a) applies because the
failure is due to reasonable cause and was
not due to willful neglect.
.04 Global Intangible Low-Taxed Income
(Section 951A)
Section 14201(a) of Pub. L. 115-97
(131 Stat. 2054, 2208), commonly re-
ferred to as the Tax Cuts and Jobs Act
(TCJA), added section 951A, which ap-
plies to taxable years of foreign corpo-
rations beginning after December 31,
2017, and to taxable years of United
States shareholders (as defined in section
951(b)) (U.S. shareholders) in which or
with which such taxable years of foreign
corporations end.
Section 951A(a) requires a U.S. share-
holder of any controlled foreign corpo-
ration (as defined in section 957) (CFC)
for any taxable year to include in gross
income the shareholder’s global intangi-
ble low-taxed income (GILTI) inclusion
for such taxable year. In general, a U.S.
shareholder’s GILTI inclusion amount is
determined by reference to the stock of
CFCs that the shareholder owns within
the meaning of section 958(a). See sec-
tion 951A(e)(1), cross-referencing section
951(a)(2).
Section 951(b) defines a U.S. share-
holder of a foreign corporation as a Unit-
ed States person (U.S. person) that owns
(within the meaning of section 958(a)),
or is considered as owning by applying
the ownership rules of section 958(b), at
least 10 percent of the total combined vot-
ing power or value of stock of the foreign
corporation. Section 957(c) generally de-
fines a U.S. person by reference to section
7701(a)(30), which defines a U.S. per-
son as a citizen or resident of the United
States, a domestic partnership, a domes-
tic corporation, and certain estates and
trusts. Section 1373(a) provides, in part,
that for purposes of subpart F of part III
of subchapter N of the Code (sections 951
through 965), an S corporation is treated
as a partnership, and the shareholders of
such corporation are treated as partners of
such partnership.
On October 10, 2018, the Treasury
Department and the IRS published in the
Federal Register proposed regulations
under section 951A (REG-104390-18, 83
FR 51072) (Proposed Regulations). The
Proposed Regulations provided a hybrid
approach to the treatment of a domes-
tic partnership that is a U.S. shareholder
(U.S. shareholder partnership) of a CFC
(partnership CFC). Under the hybrid ap-
proach, a U.S. shareholder partnership
would determine its GILTI inclusion
amount, and the partners of the partner-
ship that were not also U.S. shareholders
of the partnership CFC would take into
account their distributive share of the
partnership’s GILTI inclusion amount.
See proposed §1.951A-5(b). Partners that
were themselves U.S. shareholders of a
partnership CFC would not take into ac-
count their distributive share of the part-
nership’s GILTI inclusion amount, and in-
stead would be treated as proportionately
owning the stock of the partnership CFC
within the meaning of section 958(a) as if
the domestic partnership were a foreign
partnership. See proposed §1.951A-5(c).
On June 21, 2019, the Treasury De-
partment and the IRS published in the
Federal Register final regulations under
section 951A (T.D. 9866, 84 FR 29288)
(Final Regulations). The Final Regula-
tions did not adopt the hybrid approach
with respect to domestic partnerships in
the Proposed Regulations. Under the Fi-
nal Regulations, a domestic partnership
(including a U.S. shareholder partnership)
does not have a GILTI inclusion amount,
and therefore no partner of the partner-
ship has a distributive share of a GILTI
inclusion amount. See §1.951A-1(e)(1).
Rather, for purposes of determining the
GILTI inclusion amount of any partner
of a domestic partnership, each partner
is treated as proportionately owning the
stock of a CFC owned by the partnership
within the meaning of section 958(a) in
the same manner as if the domestic part-
nership were a foreign partnership. See id.
Because only a U.S. person that is a U.S.
shareholder can have a GILTI inclusion
amount, a partner that is not a U.S. share-
holder of a partnership CFC does not have
a GILTI inclusion amount determined
by reference to such partnership CFC. In
September 9, 2019 696 Bulletin No. 2019–37

Bulletin No. 2019–37 697 September 9, 2019
summary, under the Final Regulations, a
partner that is not a U.S. shareholder with
respect to a partnership CFC has neither
a distributive share of a GILTI inclusion
amount nor a GILTI inclusion amount that
is determined by reference to such part-
nership CFC.
The Final Regulations apply to taxable
years of foreign corporations beginning
after December 31, 2017, and to taxable
years of U.S. shareholders in which or
with which such taxable years of foreign
corporations end. See §1.951A-7. There-
fore, domestic partnerships and S corpo-
rations that file their income tax returns
for the 2018 tax year after June 21, 2019,
must, absent the relief provided in this
notice, file income tax returns consistent
with the Final Regulations and furnish
Schedules K-1 to their partners and share-
holders that are consistent with these in-
come tax returns.
The Treasury Department and the
IRS are aware that many domestic part-
nerships and S corporations furnished
Schedules K-1 to their partners and
shareholders on or before the date of
publication of the Final Regulations on
June 21, 2019. Consistent with proposed
§1.951A-5, these Schedules K-1 (Pro-
posed Regulation Schedules K-1) may
have reported a distributive share of the
domestic partnership’s GILTI inclusion
amount or a pro rata share of the S corpo-
ration’s GILTI inclusion amount. In the
absence of relief, to avoid potential pen-
alties under section 6698, 6699, or 6722,
these domestic partnerships and S corpo-
rations could be required to file returns
for the 2018 taxable year consistent with
the Final Regulations, and furnish Sched-
ules K-1 consistent with their Form 1065
(Schedule K) or Form 1120S (Schedule
K). The issuance of corrected Schedules
K-1 consistent with the Final Regulations
under these circumstances may result in
significant additional costs to these do-
mestic partnerships and S corporations
and significant burden to the IRS related
to processing amended returns based on
corrected Schedules K-1.
After considering the compliance bur-
den of domestic partnerships and S corpo-
rations associated with §1.951A-1(e), the
Treasury Department and the IRS have
decided to provide relief in this notice for
certain domestic partnerships and S cor-
porations (described in section 3 of this
notice) so that they may apply the rules
in the Proposed Regulations for taxable
years ending before June 22, 2019. In ad-
dition, section 4 of this notice provides
that certain penalties that might otherwise
apply to domestic partnerships or S cor-
porations that acted consistently with pro-
posed §1.951A-5 prior to June 22, 2019,
do not apply.
SECTION 3. APPLICATION OF
PROPOSED §1.951A-5
It is anticipated that forthcoming reg-
ulations will provide that a domestic
partnership or S corporation may apply
the rules in proposed §1.951A-5, in their
entirety, for taxable years that ended be-
fore June 22, 2019. Thus, for example,
a domestic partnership that applies pro-
posed §1.951A-5 for a taxable year end-
ing before June 22, 2019, would file a
Form 1065, including Form 8992, U.S.
Shareholder Calculation of Global In-
tangible Low-Taxed Income (GILTI), for
such taxable year on the basis of pro-
posed §1.951A-5 and furnish to its part-
ners for such taxable year Schedules K-1
on the basis of proposed §1.951A-5. The
forthcoming regulations are expected to
provide that in order to apply the rules in
proposed §1.951A-5, a partnership or S
corporation must satisfy the notification
and reporting requirements described in
section 5 of this notice.
Comments noted that proposed
§1.951A-5 did not provide taxpayers with
guidance in a number of areas. The adop-
tion of an aggregate approach to domestic
partnerships under §1.951A-1(e) did not
resolve all of these open questions. There-
fore, it is anticipated that forthcoming
regulations applicable where there is reli-
ance on this notice will provide, regarding
future distributions by a partnership CFC
of a partnership or S corporation, that the
amount excludible from gross income
under section 959 reflects only amounts
included in income by a partner or share-
holder under proposed §1.951A-5.
SECTION 4. INAPPLICABILITY OF
PENALTIES
If a domestic partnership or S corpo-
ration satisfies the requirements of sec-
tion 5 of this notice, penalties for failures
described in sections 6698(a), 6699(a),
6722(a) or any similar provision will
not apply to the domestic partnership or
S corporation to the extent such failures
arise from acting consistently with pro-
posed §1.951A-5 prior to June 22, 2019
(such as, by issuing one or more Proposed
Regulation Schedules K-1 and not reis-
suing Schedules K-1 based on the Final
Regulations) including from filing a Form
1065 or Form 1120S based on the Final
Regulations after June 21, 2019, that in-
corporates Schedules K-1 consistent with
the Proposed Regulations that were issued
before June 22, 2019.
SECTION 5. REQUIREMENTS FOR
APPLICATION OF PROPOSED
§1.951A-5 AND INAPPLICABILITY
OF PENALTIES
.01 Notification
In order for the rules described in sec-
tion 3 or section 4 of this notice to apply, a
domestic partnership or S corporation must
provide notification to each partner of the
partnership or shareholder of the S corpo-
ration (1) that the Schedule K-1 provided
to the partner or shareholder is consistent
with proposed §1.951A-5; (2) whether
the domestic partnership or S corporation
filed a Form 1065 or Form 1120S consis-
tent with proposed §1.951A-5 or the Final
Regulations; and (3) that the notification
is being provided in accordance with this
notice. Such notification must be provided
no later than the extended due date of the
domestic partnership’s or S corporation’s
tax return (September 16, 2019, in the
case of a calendar-year filer), and may be
provided through any reasonable method,
including via mail, e-mail, or posting on a
website through which the domestic part-
nership or S corporation would ordinarily
disseminate tax information to its partners
or shareholders. In the event a domestic
partnership or S corporation has filed its
tax return and not filed for an extension of
time to file its return, the notice described
in this section 5.01 must be provided by
the date on which the return would have
been due had an extension been properly
requested.
The domestic partnership or S corpo-
ration must also attach the notification

September 9, 2019 698 Bulletin No. 2019–37
described in the previous paragraph and
Form 8992 reflecting computations un-
der proposed §1.951A-5 to any tax return
with respect to which the rules described
in section 3 or 4 of this notice are being
applied if the tax return has not been filed
as of the date of publication of this no-
tice.
.02 Schedule K-1 Distribution Reporting
If a domestic partnership or S corpo-
ration furnished a Schedule K-1 based on
proposed §1.951A-5, the domestic part-
nership or S corporation must separately
state on Schedules K-1 for subsequent
taxable years the partner’s or sharehold-
er’s distributive share or pro rata share of
a foreign corporation’s distributions to
the domestic partnership or S corporation
of earnings and profits that relate to the
GILTI inclusion amount of the partner-
ship or S corporation that was reflected
on the first mentioned Schedules K-1.
This information must be provided for
each taxable year of the domestic part-
nership or S corporation following the
taxable year to which the first Schedule
K-1 relates. The information could be
used by a partner of a domestic partner-
ship or a shareholder of an S corporation
that receives a Schedule K-1 separately
stating such distributions to calculate its
gross income if such partner or share-
holder filed inconsistently with the first
Schedule K-1 and did not include in
gross income its distributive share or pro
rata share of the GILTI inclusion amount
reported on such Schedule K-1.
SECTION 6. EXAMPLES
It is anticipated that the forthcoming
regulations described in this notice will
provide rules consistent with the follow-
ing examples. Comments are requested as
to the results described in these examples
and what general standards or principles
should be applied with respect to the ap-
plication of the Proposed Regulations.
Example 1 – Filing Form 1065 applying pro-
posed §1.951A-5 – (i) Facts. USP, a domestic cor-
poration, and Individual A, a United States citizen
unrelated to USP, own 95% and 5%, respectively,
of the interests in PRS, a domestic partnership. PRS
owns 100% of the single class of stock of FC1, a
controlled foreign corporation with no earnings and
profits prior to 2018. USP also owns 100% of the
single class of stock of FC2, a controlled foreign
corporation. USP, Individual A, PRS, FC1, and
FC2 use the calendar year as their taxable year.
For the 2018 taxable year, FC1 had $100x of test-
ed income and no other items. For the 2018 tax-
able year, FC2 had a tested loss of $45x. Based
on proposed §1.951A-5, PRS provided Schedules
K-1 for the 2018 taxable year to USP and Indi-
vidual A on March 15, 2019, that indicated a pro
rata share of tested income of $95x to USP and a
distributive share of a GILTI inclusion amount of
$5x to Individual A. These Schedules K-1 were
based on a determination of tested income of FC1
and a GILTI inclusion amount of $100x to PRS
under proposed §1.951A-5. Under either proposed
§1.951A-5 or the Final Regulations, USP’s GILTI
inclusion amount for the 2018 taxable year was
$50x ($95x, USP’s pro rata share of FC1’s tested
income, less $45x, USP’s pro rata share of FC2’s
tested loss), all of which is with respect to FC1 un-
der section 951A(f)(1) and §1.951A-5(b). Based on
the Schedule K-1 that Individual A received from
PRS, Individual A included its distributive share of
PRS’s GILTI inclusion amount, or $5x, in income
for the 2018 taxable year. PRS intends to file Form
1065 for the 2018 taxable year on September 16,
2019, and would like to apply the rules in proposed
§1.951A-5 under this notice. In 2019, FC1 earns no
income and distributes $100x out of earnings and
profits to PRS.
(ii) Analysis – (A) Notification. In order to rely
on proposed §1.951A-5 to file Form 1065 for the
2018 taxable year, as described in Section 5.01 of
this notice, PRS must provide notification to USP
and Individual A that (1) the Schedules K-1 they re-
ceived for the 2018 taxable year were consistent with
proposed §1.951A-5; (2) PRS is filing its Form 1065
for the 2018 taxable year under proposed §1.951A-5;
and (3) the notification is being provided as required
under this notice. Additionally, because PRS is filing
after the issuance of this notice, PRS must attach a
similar notification statement to its Form 1065 for
the 2018 taxable year as described in Section 5.01
of this notice.
(B) Schedule K-1 distribution reporting. For
the 2019 taxable year, the year of the distribution
of earnings and profits of FC1 that relate to PRS’s
GILTI inclusion amount, under section 5.02 of this
notice, PRS must separately state on the Schedules
K-1 furnished to USP and Individual A their distribu-
tive shares of such distribution from FC1. Thus, with
respect to USP’s Schedule K-1, $95x of the $100x
distribution from FC1 is a separately stated item, and
with respect to Individual A’s Schedule K-1, $5x of
the $100x distribution from FC1 is a separately stat-
ed item. USP included $50x in income under section
951A for the 2018 taxable year with respect to FC1;
thus, only $45x ($95x - $50x) of the $95x of sep-
arately stated income is included in USP’s income
(before the application of section 245A) for the 2019
taxable year. Individual A included $5x in income as
a distributive share of PRS’s GILTI inclusion amount
with respect to FC1; thus, none of the $5x of sep-
arately stated income is included in Individual A’s
income for the 2019 taxable year.
Example 2 – Filing Form 1065 under Final Reg-
ulations with Schedule K-1s issued under proposed
§1.951A-5 – (i) Facts. The facts in this Example 2
are the same as in Example 1, except that PRS files
Form 1065 on September 16, 2019, under the Final
Regulations.
(ii) Analysis – (A) Notification. In order to file
Form 1065 for the 2018 taxable year under the Final
Regulations but not be subject to potential penal-
ties with respect to the Schedules K-1 for the 2018
taxable year, PRS must provide notification to USP
and Individual A as described in section 5.01 of this
notice that (1) the Schedules K-1 they received for
the 2018 taxable year were consistent with proposed
§1.951A-5; (2) PRS is filing its Form 1065 for the
2018 taxable year under the Final Regulations; and
(3) the notification is being provided as required un-
der this notice. Additionally, because PRS is filing
after the issuance of this notice, PRS must attach a
similar notification statement to its Form 1065 for
the 2018 taxable year as described in section 5.01
of this notice.
(B) Schedule K-1 distribution reporting. For the
2019 taxable year, the year of the distribution of earn-
ings and profits of FC1 that relate to the 2018 taxable
year Schedules K-1 issued by PRS that reflected a
GILTI inclusion amount of PRS, PRS must separately
state on the Schedules K-1 furnished to USP and Indi-
vidual A their distributive shares of such distribution
from FC1 under section 5.02 of this notice. Thus, with
respect to USP’s Schedule K-1, $95x of the $100x
distribution from FC1 is a separately stated item, and
with respect to Individual A’s Schedule K-1, $5x of
the $100x distribution from FC1 is a separately stat-
ed item. USP included $50x in income under section
951A for the 2018 taxable year with respect to FC1;
thus, only $45x ($95x - $50x) of the $95x of separate-
ly stated income is included in USP’s income (before
the application of section 245A) for the 2019 taxable
year. Individual A included $5x in income based on
the Schedule K-1 for the 2018 taxable year as a dis-
tributive share of PRS’s GILTI inclusion amount with
respect to FC1; thus, none of the $5x of separately
stated income is included in Individual A’s income for
the 2019 taxable year.
SECTION 7. COORDINATION WITH
REV. PROC. 2019-32
A partnership that is eligible for and
elects the relief provided in Rev. Proc.
2019-32 (granting to eligible partnerships
an extension of time to file a superseding
Form 1065 and furnish a corresponding
Schedule K-1 (Form 1065) to each of its
partners) is eligible to apply the rules de-
scribed in this notice. However, under
Rev. Proc. 2019-32, a partnership eligible
for and electing the relief provided in Rev.
Proc. 2019-32 must timely furnish Sched-
ules K-1 that are consistent with the super-
seding Form 1065; thus, in the case of a
partnership electing the relief provided in
Rev. Proc. 2019-32, Schedules K-1 con-
sistent with the Final Regulations must be
furnished if the partnership files Form 1065
consistent with the Final Regulations.

Bulletin No. 2019–37 699 September 9, 2019
SECTION 8. APPLICABILITY DATE
Forthcoming regulations will provide
that they may be applied to taxable years
ending before June 22, 2019. Before the
issuance of the forthcoming regulations, a
domestic partnership or S corporation may
rely on the rules described in this notice.
SECTION 9. PAPERWORK
REDUCTION ACT
The collections of information in sec-
tion 5.01 of this notice are reflected in the
submission to the Office of Management
and Budget (OMB) for review in accor-
dance with Paperwork Reduction Act (44
U.S.C. 3507(c)) (PRA) that is associated
with Form 1065 and Form 1120S (OMB
control number 1545-0123) because the
notification requirements in section 5.01
are closely related to the Schedules K-1
for such forms.
The collections of information in sec-
tion 5.02 of this notice will be reflected in
submissions to the OMB for review in ac-
cordance with the PRA that are associated
with Form 1065 and Form 1120S (OMB
control number 1545-0123). These sub-
missions will be updated in the ordinary
course.
An agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collections of information in this
notice are in sections 5.01 and 5.02. This
information is required to allow partners
of domestic partnerships and shareholders
of S corporations to ensure that they are
taxed only once with respect to a GILTI
inclusion amount of a domestic partner-
ship or S corporation that applied the rules
in proposed §1.951A-5. This information
is also required to allow the IRS to verify
that partners and shareholders are taxed
only once with respect to such a GILTI
inclusion amount. The collections of in-
formation are required in order for section
4 of this notice to apply. The likely re-
spondents are business or other for-profit
institutions.
The burdens associated with the notifi-
cation requirements in section 5.01 of this
notice would be so minor as to not impact
the estimated burdens provided in such
submission. The burdens associated with
the reporting requirements in section 5.02
of this notice are also minor.
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 re-
quired by U.S.C. 6103.
SECTION 10. DRAFTING AND
CONTACT INFORMATION
The principal author of this notice is
Joshua P. Roffenbender of the Office of
Associate Chief Counsel (International).
For further information regarding this
notice contact Joshua P. Roffenbender at
(202) 317-6934 (not a toll free number).

Extension of Temporary
Nondiscrimination Relief
for Closed Defined Benefit
Plans through 2020
Notice 2019-49
I. PURPOSE
This notice extends the temporary non-
discrimination relief for closed defined
benefit plans that is provided in Notice
2014-5, 2014-2 I.R.B. 276, by making that
relief available for plan years beginning
before 2021 if the conditions of Notice
2014-5 are satisfied.
II. BACKGROUND
Notice 2014-5 provides temporary non-
discrimination relief for certain “closed”
defined benefit pension plans (that is,
defined benefit plans that provide ongo-
ing accruals but that have been amended
to limit those accruals to some or all of
the employees who participated in the
plan on a specified date). Specifically, for
plan years beginning before 2016, Section
III.B of Notice 2014-5 permits a DB/DC
plan that includes a closed defined bene-
fit plan (that was closed before December
13, 2013) and that satisfies certain condi-
tions set forth in the notice to demonstrate
satisfaction of the nondiscrimination in
amount requirement of § 1.401(a)(4)-1(b)
(2) on the basis of equivalent benefits even
if the DB/DC plan does not meet any of
the existing eligibility conditions for test-
ing on that basis under § 1.401(a)(4)-9(b)
(2)(v).
Notice 2015-28, 2015-14 I.R.B. 848,
Notice 2016-57, 2016-40 I.R.B. 432, No-
tice 2017-45, 2017-38 I.R.B. 232, and
Notice 2018-69, 2018-37 I.R.B. 426,
extend the temporary nondiscrimination
relief provided in Notice 2014-5 by ap-
plying that relief to plan years beginning
before 2020 if the conditions of Notice
2014-5 are satisfied. Notice 2015-28 fur-
ther provides that, during the period for
which the extension applies, the remain-
ing provisions of the nondiscrimination
regulations under § 401(a)(4) continue to
apply.
Proposed regulations relating to non-
discrimination requirements for closed
plans were published in the Federal Reg-
ister on January 29, 2016 (81 FR 4976).
The proposed regulations set forth relief
for closed plans under §§ 1.401(a)(4)-4,
1.401(a)(4)-8, and 1.401(a)(4)-9 (subject
to satisfaction of certain conditions set
forth in the regulations), and contain oth-
er proposed nondiscrimination rules. The
regulations are proposed to apply general-
ly to plan years beginning on or after the
date of publication of the final regulations.
The proposed regulations provide that
taxpayers are permitted to apply certain
provisions of the proposed regulations
(including all of the provisions that apply
specifically to closed plans) for certain
plan years beginning before the proposed
applicability date.
Many comments have been submitted
on the proposed regulations, including
oral comments at a public hearing held
on May 19, 2016. The Internal Revenue
Service (IRS) and the Department of the
Treasury (Treasury Department) expect
that the final regulations will include a
number of significant changes in response
to those comments. However, it is antic-
ipated that the final regulations will not
be published in time for plan sponsors to
make plan design decisions based on the
final regulations before expiration of the
relief provided under Notice 2014-5 (as
last extended by Notice 2018-69). Ac-

September 9, 2019 700 Bulletin No. 2019–37
cordingly, the IRS and the Treasury De-
partment have determined that it is appro-
priate to extend the relief provided under
Notice 2014-5 for an additional year.
III. EXTENSION OF RELIEF FOR
CLOSED PLANS
The temporary nondiscrimination re-
lief for closed plans that is provided in
Notice 2014-5 is hereby extended to plan
years beginning before 2021 if the condi-
tions of Notice 2014-5 are satisfied. This
extension is provided in anticipation of
the issuance of final amendments to the
§ 401(a)(4) regulations. In addition, it is
expected that the final regulations will
provide that the reliance granted in the
preamble to the proposed regulations
may be applied for plan years beginning
before 2021.
IV. EFFECT ON OTHER
DOCUMENTS
Notice 2014-5, Notice 2015-28, No-
tice 2016-57, Notice 2017-45, and Notice
2018-69 are modified.
DRAFTING INFORMATION
The principal author of this notice is
Diane S. Bloom of the Office of the Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in development of
this guidance. For further information
regarding this notice, please contact Ms.
Bloom or Linda Marshall at (202) 317-
6700 (not a toll-free number).

Health Insurance Providers
Fee; Procedural and
Administrative Guidance
Notice 2019-50
SECTION 1. PURPOSE
This notice provides the Applicable
Amount for the fee imposed by Sec-
tion 9010 of the Patient Protection and Af-
fordable Care Act (PPACA) for the 2020
fee year.
SECTION 2. BACKGROUND
Section 9010 of the PPACA, Public
Law 111-148 (124 Stat. 119 (2010)), as
amended by Section 10905 of PPACA,
and as further amended by Section 1406
of the Health Care and Education Rec-
onciliation Act of 2010, Public Law 111-
152 (124 Stat. 1029 (2010)), imposes an
annual fee on covered entities engaged in
the business of providing health insurance
for United States health risks. The fee is
a fixed amount (Applicable Amount) al-
located among all covered entities in pro-
portion to their relative market share as
determined by each entity’s net premiums
written for the data year, which is the year
immediately preceding the year in which
the fee is paid (the year in which the fee
is paid is the fee year). Section 4003 of
Division D—The Suspension of Certain
Health-Related Taxes enacted on January
22, 2018, Public Law 115-120 (132 Stat.
38), suspended the fee for 2019. Absent
legislative action, the fee will resume in
2020.
Section 9010(e)(1) provides the Ap-
plicable Amount for calendar years 2014
through 2018. The Applicable Amount for
the 2018 fee year was $14,300,000,000.
Section 9010(e)(2) provides that in the
case of any calendar year beginning af-
ter 2018, the Applicable Amount shall be
the Applicable Amount for the preceding
calendar year increased by the rate of
premium growth (within the meaning of
§ 36B(b)(3)(A)(ii) of the Internal Revenue
Code).
Section 36B(b)(3)(A)(ii) generally
provides that certain amounts are adjust-
ed annually to reflect the excess of the
rate of premium growth over the rate of
income growth for the preceding calendar
year. Sections 1.36B-2(c)(3)(v)(C) and
1.36B-3(g) of the Income Tax regulations
provide that the amounts may be further
adjusted to reflect updates to the data and
data sources used to compute the ratio
of premium growth to income growth.
The amounts are computed using a pre-
mium adjustment percentage provided
in guidance issued by the Department of
Health and Human Services (HHS). For
years prior to 2020, the rate of premium
growth was based on per enrollee spend-
ing for employer-sponsored insurance as
published in the National Health Expen-
diture Account (NHEA). However, in the
2020 Notice of Benefit and Payment Pa-
rameters, 84 FR 17454 (April 25, 2019),
HHS provided a new premium growth
measure beginning in calendar year 2020
that captures increases in individual mar-
ket premiums in addition to increases in
employer-sponsored insurance premiums
for purposes of calculating the premium
adjustment percentage for the 2020 ben-
efit year and beyond. With this notice,
the Department of the Treasury and the
Internal Revenue Service adopt the new
premium growth measure provided in the
2020 Notice of Benefit and Payment Pa-
rameters for purposes of determining the
Applicable Amount for the fee imposed
by Section 9010.
SECTION 3. METHODOLOGY
.01 Premium growth. The measure of
premium growth for a calendar year is
the premium adjustment percentage. For
2020, the premium adjustment percentage
is calculated as the difference between
the percentage (if any) by which the most
recent National Health Expenditure Ac-
counts (NHEA) projection of per enroll-
ee premiums for private health insurance
(excluding Medigap and property and ca-
sualty insurance) for the preceding calen-
dar year, 2019 ($6,436), exceeds the most
recent NHEA estimate of per enrollee pre-
miums for private health insurance (ex-
cluding Medigap and property and casu-
alty insurance) for 2017 ($5,929), the year
preceding the last year that the Applicable
Amount was provided by statute (2018,
the base year), carried out to 10 signifi-
cant digits. This method implicitly takes
into account the premium growth from
2017-2018 as well as 2018-2019, there-
by reflecting updates to the data and data
sources that would have applied to com-
pute the Applicable Amount for the 2019
fee year if the fee had not been suspended
for that year. Using this formula, the pre-
mium adjustment percentage for 2020 is
1.0855118907.
.02 Applicable Amount. The 2020 Ap-
plicable Amount is determined by mul-
tiplying the fee for the 2018 base year
(14,300,000,000) by the premium adjust-

Bulletin No. 2019–37 701 September 9, 2019
ment percentage for 2020 (1.0855118907),
rounded to the nearest dollar.
SECTION 4. GUIDANCE FOR FEE
YEAR 2020
The 2020 Applicable Amount is
$15,522,820,037.
SECTION 5. APPLICABILITY DATE
This notice applies to the 2020 fee year.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice is
Rachel S. Smith of the Office of Associ-
ate Chief Counsel (Passthroughs & Spe-
cial Industries). For further information
regarding this notice, please contact Ms.
Smith at (202) 317-6855 (not a toll-free
number).

September 9, 2019 702 Bulletin No. 2019–37
Part IV.
Notice of Proposed
Rulemaking
Determination of the
Maximum Value of a
Vehicle for Use with the
Fleet-average and Vehicle
Cents-per-mile Valuation
Rules
REG-101378-19
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document sets forth
proposed regulations regarding special
valuation rules for employers and em-
ployees to use in determining the amount
to include in an employee’s gross income
for personal use of an employer-provided
vehicle. The proposed regulations reflect
changes made by the Tax Cuts and Jobs
Act, Public Law 115-97 (the Act).
DATES: Comments and requests for a
public hearing must be received by Octo-
ber 22, 2019.
ADDRESSES: Submit electronic submis-
sions via the Federal eRulemaking Portal
at www.regulations.gov (indicate IRS and
REG-101378-19) by following the online
instructions for submitting comments.
Once submitted to the Federal eRulemak-
ing Portal, comments cannot be edited or
withdrawn. The Department of the Trea-
sury (Treasury Department) and the IRS
will publish for public availability any
comment received to its public docket,
whether submitted electronically or in
hard copy. Send hard copy submissions
to: CC:PA:LPD:PR (REG-101378-19),
Room 5203, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may
be hand-delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR (REG-101378-19), Cou-
rier’s Desk, Internal Revenue Service,
1111 Constitution Avenue NW, Washing-
ton, DC 20224.
FOR FURTHER INFORMATION CON-
TACT: Concerning the proposed regula-
tions, Gabriel J. Minc at (202) 317-4774;
concerning submissions of comments
or to request a public hearing, Regina L.
Johnson at (202) 317-6901 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
If an employer provides an employee
with a vehicle that is available to the em-
ployee for personal use, the value of the
personal use must generally be included in
the employee’s income under section 61
of the Internal Revenue Code (the Code).
In addition, benefits paid as remunera-
tion for employment, including the per-
sonal use of employer-provided vehicles,
generally are also wages for purposes of
the Federal Insurance Contributions Act
(FICA), the Federal Unemployment Tax
Act (FUTA) and the Collection of In-
come Tax at Source on Wages (federal in-
come tax withholding). Sections 3121(a),
3306(b), and 3401(a).
The amount that must be included in
the employee’s income and wages for the
personal use of an employer-provided ve-
hicle generally is determined by reference
to the vehicle’s fair market value (FMV).
However, the regulations under section
61 provide special valuation rules for em-
ployer-provided vehicles. If an employer
chooses to use a special valuation rule, the
special value is treated as the FMV of the
benefit for income tax and employment
tax purposes. §1.61-21(b)(4). Two such
special valuation rules, the fleet-aver-
age valuation rule and the vehicle cents-
per-mile valuation rule, are set forth in
§1.61-21(d)(5)(v) and §1.61-21(e), re-
spectively. These two special valuation
rules are subject to limitations, including
that they may be used only in connection
with vehicles having values that do not ex-
ceed a maximum amount set forth in the
regulations.
Under the current §1.61-21 regulations
(the final regulations), the vehicle cents-
per-mile valuation rule may be used only
to value the personal use of a vehicle hav-
ing a value no greater than $12,800 (the
sum of the maximum recovery deduc-
tions allowable under section 280F(a)(2)
for the recovery period of the vehicle).
§1.61-21(e)(1)(iii). The fleet-average val-
uation rule may be used only to value the
personal use of vehicles having values
no greater than $16,500. §1.61-21(d)(5)
(v)(D). (The fleet-average valuation rule
uses the term “automobile” rather than
“vehicle.” For convenience, this preamble
uses the term “vehicle” except in specific
discussions of the fleet-average valuation
rule or the section 280F depreciation lim-
itations.) Under the final regulations, each
of these maximum values is adjusted an-
nually pursuant to section 280F(d)(7).
1. The Fleet-Average Valuation Rule
The fleet-average valuation rule is an
optional component of a special valuation
rule called the automobile lease valuation
rule set forth in §1.61-21(d). Under the au-
tomobile lease valuation rule, the value of
the personal use of an employer-provided
automobile available to an employee for
an entire year is the portion of the annual
lease value determined under the regula-
tions (Annual Lease Value) relating to the
availability of the automobile for personal
use. Furthermore, provided the FMV of
the automobile does not exceed the max-
imum value permitted under §1.61-21(d)
(5)(v), an employer with a fleet of 20 or
more automobiles may use a fleet-average
value for purposes of calculating the An-
nual Lease Value of any automobile in the
fleet.
The fleet-average value is the average
of the fair market values of all the auto-
mobiles in the fleet. However, §1.61-21(d)
(5)(v)(D) provides that the value of an
employee’s personal use of an automobile
may not be determined under the fleet-av-
erage valuation rule for a calendar year
if the FMV of the automobile on the first
date the automobile is made available to
the employee exceeds the base value of
$16,500, as adjusted annually pursuant to

Bulletin No. 2019–37 703 September 9, 2019
section 280F(d)(7). Section 1.61-21(d)(5)
(v)(D) provides that the first such adjust-
ment shall be for calendar year 1989, sub-
ject to minor modifications to the section
280F(d)(7) formula specified in the reg-
ulations. In other words, under the final
regulations, the maximum value for use of
the fleet-average rule is the base value of
$16,500, as adjusted annually under sec-
tion 280F(d)(7) every year since 1989.
Prior to enactment of the Act, the auto-
mobile price inflation adjustment of sec-
tion 280F(d)(7)(B) was calculated using
the “new car” component of the Consum-
er Price Index (CPI) “automobile compo-
nent.” Beginning in 2005, the IRS began
to calculate the price inflation adjustment
for trucks and vans separately from cars
using the “new truck” component of the
CPI, and continued using the “new car”
component of the CPI for automobiles
other than trucks and vans. Rev. Proc.
2005-48, 2005-32 I.R.B. 271. For 2017,
the year prior to the enactment of the Act,
the maximum value for use of this rule
was $21,100 for a passenger automobile
and $23,300 for a truck or van. See Notice
2017-03, 2017-2 I.R.B. 368.
Section 1.61-21(d)(5)(v)(B) provides
that the fleet-average valuation rule may
be used by an employer as of January 1
of any calendar year following the calen-
dar year in which the employer acquires
a sufficient number of automobiles to to-
tal a fleet of 20 or more, each one satis-
fying the maximum value requirement of
§1.61-21(d)(5)(v)(D). The Annual Lease
Value calculated for automobiles in the
fleet, based on the fleet-average value,
must remain in effect for the period that
begins with the first January 1 the fleet-av-
erage valuation rule is applied by the em-
ployer to the automobiles in the fleet and
ends on December 31 of the subsequent
calendar year. The Annual Lease Value for
each subsequent two-year period is cal-
culated by determining the fleet average
value of the automobiles in the fleet as of
the first January 1 of such period. An em-
ployer may cease using the fleet-average
valuation rule as of any January 1.
2. The Vehicle Cents-Per-Mile Valuation
Rule
Another special valuation rule is the
vehicle cents-per-mile rule in §1.61-21(e).
Under §1.61-21(e), if an employer pro-
vides an employee with the use of a vehi-
cle that the employer reasonably expects
will be regularly used in the employer’s
trade or business throughout the calendar
year (or such shorter period as the vehicle
may be owned or leased by the employ-
er), or that satisfies the requirements of
§1.61-21(e)(1)(ii) (i.e., the vehicle is ac-
tually driven at least 10,000 miles in the
year and use of the vehicle during the year
is primarily by employees), the value of
the personal use may be determined based
on the applicable standard mileage rate
multiplied by the total number of miles
the vehicle is driven by the employee for
personal purposes.
Section 1.61-21(e)(1)(iii)(A) provides
that the value of the personal use may not
be determined under the vehicle cents-
per-mile valuation rule for a calendar year
if the fair market value of the vehicle on
the first date the vehicle is made available
to the employee exceeds the sum of the
maximum recovery deductions allowable
under section 280F(a) for a five-year peri-
od for an automobile first placed in service
during that calendar year (whether or not
the automobile is actually placed in ser-
vice during that year), as adjusted by sec-
tion 280F(d)(7). The final regulations also
provide that, under this rule, with respect
to a vehicle placed in service in or after
1989, the limitation on value is $12,800,
as adjusted under section 280F(d)(7). In
other words, under the final regulations,
the maximum value of a vehicle for use of
the vehicle cents-per-mile valuation rule
is the base value of $12,800, as adjusted
annually under section 280F(d)(7) since
1989. As with the fleet-average valuation
rule, beginning in 2005, the IRS calculat-
ed the price inflation adjustment for trucks
and vans separately from cars. See Rev.
Proc. 2005-48. For 2017, the year prior
to the enactment of the Act, the maximum
value for use of the vehicle cents-per-mile
valuation rule was $15,900 for a passen-
ger automobile and $17,800 for a truck or
van. See Notice 2017-03.
Section 1.61-21(e)(5)(i) states that an
employer must adopt the vehicle cents-
per-mile valuation rule for a vehicle to
take effect by the first day on which the
vehicle is used by an employee of the em-
ployer for personal use (or, if another spe-
cial valuation rule called the commuting
valuation rule of §1.61-21(f) is used when
the vehicle is first used by an employee
of the employer for personal use, the first
day on which the commuting valuation
rule is not used). Section 1.61-21(e)(5)(ii)
also provides, in part, that once the vehi-
cle cents-per-mile valuation rule has been
adopted for a vehicle by an employer, the
rule must be used by the employer for all
subsequent years in which the vehicle
qualifies for use of the rule, except that the
employer may, for any year during which
use of the vehicle qualifies for the com-
muting valuation rule of §1.61-21(f), use
the commuting valuation rule with respect
to the vehicle.
3. Tax Cuts and Jobs Act Changes and
the Maximum Vehicle Values for 2018
and 2019
The Act made the following amend-
ments to the Code:
(1) For owners of passenger automobiles,
section 280F(a), as modified by sec-
tion 13202(a)(1) of the Act, imposes
dollar limitations on the depreciation
deduction for the year the taxpayer
places the passenger automobile in
service and for each succeeding year.
The amendments made by the Act
substantially increase the maximum
annual dollar limitations on the de-
preciation deductions for passenger
automobiles. The new dollar limita-
tions are based on the depreciation,
over a five-year recovery period, of a
passenger automobile with a cost of
$50,000 (formerly $12,800).
(2) Section 11002(d)(8) of the Act
amended section 280F(d)(7)(B) ef-
fective for tax years beginning af-
ter December 31, 2017. Pursuant to
these amendments, the price inflation
amount for automobiles (including
trucks and vans) is calculated us-
ing both the CPI automobile com-
ponent and the Chained Consumer
Price Index for All Urban Consumers
(C-CPI-U) automobile component.
a. Notice 2019-08 – The Maximum Value
for 2018
To implement the changes described
above, Notice 2019-08, 2019-3 I.R.B.
354, provides interim guidance for 2018

September 9, 2019 704 Bulletin No. 2019–37
on new procedures for calculating the
price inflation adjustments to the maxi-
mum vehicle values for use with the spe-
cial valuation rules under §1.61-21(d) and
(e) using section 280F(d)(7), as modified
by sections 11002 and 13202 of the Act.
Notice 2019-08 states that the Treasury
Department and the IRS anticipated that
further guidance would be issued in the
form of proposed regulations and expect-
ed that the regulations would be consistent
with the rules set forth in Notice 2019-08.
Notice 2019-08 provides that, consis-
tent with the substantial increase in the dol-
lar limitations on depreciation deductions
under section 280F(a), as modified by sec-
tion 13202(a)(1) of the Act, the Treasury
Department and the IRS intend to amend
§1.61-21(d) and (e) to incorporate a high-
er base value of $50,000 as the maximum
value for use of the vehicle cents-per-mile
and fleet-average valuation rules effec-
tive for the 2018 calendar year. Notice
2019-08 further states that the Treasury
Department and the IRS intend that the
regulations would be modified to provide
that this $50,000 base value will be adjust-
ed annually using section 280F(d)(7) for
2019 and subsequent years. Accordingly,
Notice 2019-08 provides that, for 2018,
the maximum value for use of the vehicle
cents-per-mile and fleet-average valuation
rules is $50,000.
Finally, for 2018 and 2019, Notice
2019-08 provides that the Treasury De-
partment and the IRS will not publish sep-
arate maximum values for trucks and vans
for use with the fleet-average and vehicle
cents-per-mile valuation rules. As noted
above, the Act amended section 280F(d)
(7)(B) to make inflation adjustments
based on the CPI and C-CPI-U automo-
bile component. The C-CPI-U automo-
bile component does not currently have
separate components for new cars and
new trucks. Accordingly, due to the lack
of data, the Treasury Department and the
IRS will publish only one maximum value
of a vehicle for use with the vehicle cents-
per-mile and fleet-average valuation rules
beginning in 2019.
b. Notice 2019-34 - The Maximum
Vehicle Value for 2019
Notice 2019-34, 2019-22 I.R.B. 1257,
provides that the inflation-adjusted max-
imum value of an employer-provided ve-
hicle (including cars, vans and trucks) first
made available to employees for personal
use in calendar year 2019 for which the
vehicle cents-per-mile valuation rule pro-
vided under §1.61-21(e), or the fleet-aver-
age valuation rule provided under §1.61-
21(d), may be applicable is $50,400.
Notice 2019-34 also provides information
about the manner in which the Treasury
Department and the IRS intend to publish
this maximum vehicle value in the future.
As noted in Notice 2019-34, Rev. Proc.
2010-51, 2010-51 I.R.B. 883, provides
rules for using optional standard mileage
rates in computing the deductible costs
of operating an automobile for business,
charitable, medical, or moving expense
purposes. Section 2.12(1) of Rev. Proc.
2010-51 provides that the IRS publishes
both the standard mileage rates for the use
of an automobile for business, charitable,
medical, and moving expense purposes,
and the maximum standard automobile
cost that may be used in computing the
allowance under a fixed and variable rate
(FAVR) plan, in a separate annual notice.
See, e.g., Notice 2019-02, 2019-02 I.R.B.
281.
Notice 2019-34 indicates that, in
amending §1.61-21(d) and (e) to incor-
porate a higher base value of $50,000 as
the maximum value for use with the ve-
hicle cents-per-mile and the fleet-aver-
age valuation rules, the IRS and Treasury
Department expected that the maximum
value for use of those rules for 2019 and
subsequent years would be the same as the
maximum standard automobile cost that
may be used in computing the allowance
under a FAVR plan. Accordingly, Notice
2019-34 provides that the maximum value
for use with the fleet-average and vehi-
cle cents-per-mile valuation rules will be
published in the annual notice providing
the standard mileage rates for use of an
automobile for business, charitable, medi-
cal, and moving expense purposes and the
maximum standard automobile cost that
may be used in computing the allowance
under a FAVR plan.
Notice 2019-34 also provides that the
Treasury Department and the IRS intend
to revise §1.61-21(d) to include a tran-
sition rule for any employer that did not
qualify to use the fleet-average valuation
rule prior to January 1, 2018 because the
inflation-adjusted maximum value re-
quirement of §1.61-21(d)(5)(v)(D), as
published by the IRS in a notice or rev-
enue procedure applicable to the year the
automobile was first made available to any
employee of the employer, was not met. In
such a case, under the transition rule, the
employer may adopt the fleet-average val-
uation rule for 2018 or 2019, provided the
requirements of §1.61-21(d)(5)(v) are met
for that year using the maximum values
set forth in Notice 2019-08 ($50,000) or
Notice 2019-34 ($50,400), respectively.
In addition, Notice 2019-34 states that
the Treasury Department and the IRS in-
tend to revise §1.61-21(e) to provide a
transition rule for vehicles first made avail-
able to employees for personal use before
calendar year 2018, if the employer did
not qualify under §1.61-21(e)(5) to adopt
the vehicle cents-per-mile valuation rule
for the vehicle on the first day on which
the vehicle was used by the employee
for personal use because the fair market
value of the vehicle exceeded the infla-
tion-adjusted limitation of §1.61-21(e)(1)
(iii) as published by the IRS in a notice or
revenue procedure applicable to the year
the vehicle was first used by the employ-
ee for personal use. In such a case, under
the transition rule, the employer may first
adopt the vehicle cents-per-mile valuation
rule for the 2018 or 2019 taxable year
based on the maximum fair market value
of a vehicle for purposes of the vehicle
cents-per-mile valuation rule set forth in
Notice 2019-08 ($50,000) or Notice 2019-
34 ($50,400), respectively.
Similarly, Notice 2019-34 also pro-
vides that the Treasury Department and
the IRS intend to amend §1.61-21(e) to
provide a transition rule for a vehicle first
placed in service before calendar year
2018 if the commuting valuation rule of
§1.61-21(f) was used when the vehicle
was first used by an employee of the em-
ployer for personal use, and the employ-
er did not qualify to switch to the vehicle
cents-per-mile valuation rule on the first
day on which the commuting valuation
rule was not used because the vehicle
had a fair market value in excess of the
inflation-adjusted maximum permitted
under §1.61-21(e)(1)(iii) as published by
the IRS in a notice or revenue procedure
applicable to the year the commuting val-
uation rule was first not used. Under the

Bulletin No. 2019–37 705 September 9, 2019
transition rule, the employer may adopt
the vehicle cents-per-mile valuation rule
for the 2018 or 2019 taxable year based
on the maximum fair market value of the
vehicle for purposes of the vehicle cents-
per-mile valuation rule set forth in Notice
2019-08 or Notice 2019-34, respectively.
With respect to the transition rules de-
scribed above, Notice 2019-34 adds that,
consistent with §1.61-21(e)(5), an em-
ployer that adopts the vehicle cents-per-
mile valuation rule must continue to use
the rule for all subsequent years in which
the vehicle qualifies for use of the rule,
except that the employer may, for any
year during which use of the vehicle qual-
ifies for the commuting valuation rule of
§1.61-21(f), use the commuting valuation
rule with respect to the vehicle.
Explanation of Provisions
These proposed regulations update
the fleet-average and vehicle cents-per-
mile valuation rules described in §1.61-
21(d) and (e), respectively, to align the
limitations on the maximum vehicle fair
market values for use of these special
valuation rules with the changes made
by the Act to the depreciation limitations
in section 280F. Specifically, consistent
with the substantial increase in the dollar
limitations on depreciation deductions
under section 280F(a), these proposed
regulations increase, effective for the
2018 calendar year, the maximum base
fair market value of a vehicle for use of
the fleet-average or vehicle cents-per-
mile valuation rule to $50,000. As previ-
ously, the maximum fair market value of
a vehicle for purposes of the fleet-aver-
age and vehicle cents-per-mile valuation
rule is adjusted annually under section
280F(d)(7). This annual adjustment will
be calculated in accordance with section
280F(d)(7) as amended by the Act. Con-
sistent with Notice 2019-34, the Treasury
Department and the IRS expect that the
inflation-adjusted maximum fair market
value for a vehicle for purposes of the
fleet-average and vehicle cents-per-mile
valuation rules will be included in the an-
nual notice published by the IRS provid-
ing the standard mileage rates for the use
of an automobile for business, charitable,
medical, and moving expense purposes
and the maximum standard automobile
cost for purposes of an allowance under
a FAVR plan.
Furthermore, consistent with Notice
2019-34, the following transition rules are
included in these proposed regulations:
(1) With respect to the fleet-average
valuation rule, if an employer did
not qualify to use the fleet-average
valuation rule prior to January 1,
2018 with respect to an automobile
because the fair market value of
the automobile exceeded the infla-
tion-adjusted maximum value re-
quirement of §1.61-21(d)(5)(v)(D),
as published by the IRS in a notice or
revenue procedure applicable to the
year the automobile was first made
available to any employee of the em-
ployer, the employer may adopt the
fleet-average valuation rule for 2018
or 2019, provided the fair market
value of the automobile does not ex-
ceed $50,000 on January 1, 2018, or
$50,400 on January 1, 2019, respec-
tively.
(2) With respect to the vehicle cents-
per-mile valuation rule, for a vehicle
first made available to any employ-
ee of the employer for personal use
before calendar year 2018, if an em-
ployer did not qualify under §1.61-
21(e)(5) to adopt the vehicle cents-
per-mile valuation rule on the first
day on which the vehicle was used
by the employee for personal use be-
cause the fair market value of the ve-
hicle exceeded the inflation-adjusted
limitation of §1.61-21(e)(1)(iii), as
published by the IRS in a notice or
revenue procedure applicable to the
year the vehicle was first used by the
employee for personal use, the em-
ployer may first adopt the vehicle
cents-per-mile valuation rule for the
2018 or 2019 taxable year with re-
spect to the vehicle, provided the fair
market value of the vehicle does not
exceed $50,000 on January 1, 2018,
or $50,400 on January 1, 2019, re-
spectively. Similarly, if the commut-
ing valuation rule of §1.61-21(f) was
utilized when the vehicle was first
used by an employee of the employ-
er for personal use, and the employer
did not qualify to switch to the vehi-
cle cents-per-mile valuation rule on
the first day on which the commuting
valuation rule was not used because
the vehicle had a fair market value
in excess of the inflation-adjusted
limitation of §1.61-21(e)(1)(iii),
as published by the IRS in a notice
or revenue procedure applicable to
the year the commuting valuation
rule was first not used, the employ-
er may adopt the vehicle cents-per-
mile valuation rule for the 2018 or
2019 taxable year, provided the fair
market value of the vehicle does not
exceed $50,000 on January 1, 2018,
or $50,400 on January 1, 2019, re-
spectively. However, consistent with
§1.61-21(e)(5), an employer that
adopts the vehicle cents-per-mile
valuation rule must continue to use
the rule for all subsequent years in
which the vehicle qualifies for use
of the rule, except that the employer
may, for any year during which use
of the vehicle qualifies for the com-
muting valuation rule of §1.61-21(f),
use the commuting valuation rule
with respect to the vehicle.
Until amendments to the final regu-
lations are published under Treas. Reg.
§1.61-21(d) and (e) in the Federal Reg-
ister, taxpayers may rely on the guidance
provided in these proposed regulations.
Special Analyses
These proposed regulations are not
subject to review under section 6(b) of Ex-
ecutive Order 12866 pursuant to the Mem-
orandum of Agreement (April 11, 2018)
between the Department of the Treasury
and the Office of Management and Budget
regarding review of tax regulations.
It is hereby certified that these proposed
regulations will not have a significant eco-
nomic impact on a substantial number of
small entities pursuant to the Regulatory
Flexibility Act (5 U.S.C. chapter 6). This
certification is based on the fact that the
proposed regulations would update exist-
ing regulations to comport with the statu-
tory changes to section 280F made by the
Act. Although the proposed regulations
might affect a substantial number of small
entities, the economic impact of the pro-
posed regulations is not expected to be
significant.
Since the current vehicle valuation
rules in the regulations are tied to infla-

September 9, 2019 706 Bulletin No. 2019–37
tion adjustments under section 280F, the
statutory changes to section 280F neces-
sitate modifications to the procedures for
calculating annual inflation adjustments to
the maximum fair market value of a ve-
hicle permitted for use with the fleet-av-
erage and vehicle cents-per-mile special
valuation rules. These proposed revised
special valuation rules are consistent with
the base values and methodology used for
section 280F purposes and simplify the
determination of the amount employers
must include in employees’ income and
wages for income and employment tax
purposes for the personal use of employ-
er-provided vehicles. The modifications
that would be made by these proposed
regulations to the maximum fair market
value of a vehicle permitted for use with
the fleet-average and vehicle cents-per-
mile special valuation rules, and the tran-
sition rules provided in connection with
these proposed regulations, increase the
number of employers and employees that
may take advantage of the special valua-
tion rules, without increasing costs to the
employer.
Notwithstanding this certification that
the proposed regulations would not have a
significant economic impact on a substan-
tial number of small entities, the Treasury
Department and the IRS invite comments
on the impacts these proposed regulations
may have on small entities. Pursuant to
section 7805(f), these proposed regula-
tions will be submitted to the Chief Coun-
sel for Advocacy of the Small Business
Administration for comment on its impact
on small business.
Comments and Requests for Public
Hearing
The Treasury Department and the IRS
request comments on all aspects of the
proposed rules.
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are
submitted timely to the IRS as prescribed
in this preamble under the ADDRESSES
heading.
All comments are available at https://
www.regulations.gov or upon request. If a
public hearing is scheduled, notice of the
date, time, and place of the public hearing
will be published in the Federal Register.
Drafting Information
The principal author of these regu-
lations is Gabriel Minc of the Office of
the Associate Chief Counsel (Employee
Benefits, Exempt Organizations, and Em-
ployment Tax). However, other personnel
from the IRS and the Treasury Department
participated in their development.
Statement of Availability
The IRS Notices and Revenue Proce-
dures cited in this preamble are published
in the Internal Revenue Bulletin (or Cu-
mulative Bulletin) and are available from
the Superintendent of Documents, U.S.
Government Publishing Office, Wash-
ington, DC 20402, or by visiting the IRS
website at http://www.irs.gov.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be 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 1.61-21 is amended by
revising paragraph (d)(5)(v)(D), adding
paragraphs (d)(5)(v)(G) and (H), revising
paragraph (e)(1)(iii)(A), revising para-
graph (e)(5)(i), and adding paragraphs (e)
(5)(vi) and (e)(6), to read as follows:
§1.61-21 Taxation of fringe benefits.
*****
(d) ***
(5) ***
(v) ***
(D) Limitations on use of fleet-aver-
age rule. The rule provided in this para-
graph (d)(5)(v) may not be used for any
automobile the fair market value of which
(determined pursuant to paragraphs (d)
(5)(i) through (iv) of this section as of the
first date on which the automobile is made
available to any employee of the employ-
er for personal use) exceeds $50,000, as
adjusted by section 280F(d)(7). The first
such adjustment shall be for calendar year
2019. In addition, the rule provided in this
paragraph (d)(5)(v) may only be used for
automobiles that the employer reasonably
expects will regularly be used in the em-
ployer’s trade or business. For rules con-
cerning when an automobile is regularly
used in the employer’s business, see para-
graph (e)(1)(iv) of this section.
*****
(G) Transition rule for 2018 and 2019.
Notwithstanding paragraph (d)(5)(v)(B)
of this section, an employer that did not
qualify to use the fleet-average valuation
rule prior to January 1, 2018 with respect
to any automobile (including a truck or
van) because the fair market value of
the vehicle exceeded the inflation-ad-
justed maximum value requirement of
paragraph (d)(5)(v)(D) of this section,
as published by the Service in a notice
or revenue procedure applicable to the
year the vehicle was first made available
to any employee of the employer, may
adopt the fleet-average valuation rule for
2018 or 2019 with respect to the vehicle,
provided the fair market value of the ve-
hicle does not exceed $50,000 on January
1, 2018, or $50,400 on January 1, 2019,
respectively.
(H) Applicability date. Paragraphs (d)
(5)(v)(D), and (G) of this section apply
to taxable years beginning on or after
[INSERT DATE OF PUBLICATION OF
THE FINAL RULE IN THE FEDERAL
REGISTER]. Notwithstanding the first
sentence of this paragraph (d)(5)(v)(H),
any taxpayer may choose to apply para-
graph (d)(5)(v)(G) of this section begin-
ning on or after January 1, 2018.
*****
(e) ***
(1) ***
(iii) ***
(A) In general. The value of the use of
an automobile (as defined in paragraph (d)
(1)(ii) of this section) may not be deter-
mined under the vehicle cents-per-mile
valuation rule of this paragraph (e) for a
calendar year if the fair market value of
the automobile (determined pursuant to
paragraphs (d)(5)(i) through (iv) of this
section as of the first date on which the
automobile is made available to any em-

Bulletin No. 2019–37 707 September 9, 2019
ployee of the employer for personal use)
exceeds $50,000, as adjusted by section
280F(d)(7). The first such adjustment
shall be for calendar year 2019.
* * * * *
(5) ***
(i) Use of the vehicle cents-per-mile
valuation rule by an employer. An em-
ployer must adopt the vehicle cents-per-
mile valuation rule of this paragraph (e)
for a vehicle to take effect by the first day
on which the vehicle is used by an em-
ployee of the employer for personal use
(or, if the commuting valuation rule of
paragraph (f) of this section is used when
the vehicle is first used by an employee of
the employer for personal use, the first day
on which the commuting valuation rule is
not used).
*****
(vi) Transition rule for 2018 and 2019.
For a vehicle first made available to any
employee of the employer for personal use
before calendar year 2018, if an employer
did not qualify under this paragraph (e)(5)
to adopt the vehicle cents-per-mile val-
uation rule on the first day on which the
vehicle is used by the employee for per-
sonal use because the fair market value
of the vehicle exceeded the inflation-ad-
justed limitation of paragraph (e)(1)(iii),
as published by the Service in a notice or
revenue procedure applicable to the year
the vehicle was first used by the employee
for personal use, may first adopt the ve-
hicle cents-per-mile valuation rule for the
2018 or 2019 taxable year, provided the
fair market value of the vehicle does not
exceed $50,000 on January 1, 2018, or
$50,400 on January 1, 2019, respectively.
Similarly, for a vehicle first made avail-
able to any employee of the employer for
personal use before calendar year 2018,
if the commuting valuation rule of para-
graph (f) of this section was used when
the vehicle was first used by the employee
for personal use, and the employer did not
qualify to switch to the vehicle cents-per-
mile valuation rule of this paragraph (e)
on the first day on which the commuting
valuation rule of paragraph (f) of this
section was not used because the vehicle
had a fair market value in excess of the
inflation-adjusted limitation of paragraph
(e)(1)(iii) of this section, as published by
the Service in a notice or revenue proce-
dure applicable to the year the commut-
ing valuation rule was first not used, the
employer may adopt the vehicle cents-
per-mile valuation rule for the 2018 or
2019 taxable year, provided the fair mar-
ket value of the vehicle does not exceed
$50,000 on January 1, 2018, or $50,400
on January 1, 2019, respectively. Howev-
er, in accordance with paragraph (e)(5)(ii)
of this section, an employer that adopts
the vehicle cents-per-mile valuation rule
pursuant to this paragraph (e)(5)(vi) must
continue to use the rule for all subsequent
years in which the vehicle qualifies for use
of the rule, except that the employer may,
for any year during which use of the vehi-
cle qualifies for the commuting valuation
rule of paragraph (f) of this section, use
the commuting valuation rule with regard
to the vehicle.
(6) Applicability date. Paragraphs (e)
(1)(iii)(A) and (e)(5)(i) and (vi) of this
section apply to taxable years beginning
on or after [INSERT DATE OF PUB-
LICATION OF THE FINAL RULE IN
THE FEDERAL REGISTER]. Not-
withstanding the first sentence of this
paragraph (e)(6), any taxpayer may
choose to apply paragraph (e)(5)(vi) of
this section beginning on or after January
1, 2018.
* * * * *
Kirsten Wielobob
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register on Au-
gust 22, 2019, 8:45 a.m., and published in the issue
of the Federal Register for August 23, 2019, 84 F.R.
44258)

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 be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing 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 transactions.
This term is most commonly used in a ruling
that lists previously published rulings 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
period 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 previous-
ly 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 cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
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. 2019–37 i September 9, 2019

Numerical Finding List
1
Bulletin 2019–37
Announcements:
2019-07, 2019-27 I.R.B. 62
2019-08, 2019-32 I.R.B. 621
Notices:
2019-12, 2019-27 I.R.B. 57
2019-40, 2019-27 I.R.B. 59
2019-41, 2019-28 I.R.B. 256
2019-42, 2019-29 I.R.B. 352
2019-27, 2019-31 I.R.B. 484
2019-43, 2019-31 I.R.B. 487
2019-24, 2019-31 I.R.B. 489
2019-45, 2019-32 I.R.B. 593
2019-48, 2019-36 I.R.B. 678
2019-46, 2019-37 I.R.B. 695
2019-49, 2019-37 I.R.B. 699
2019-50, 2019-37 I.R.B. 700
Proposed Regulations:
REG-105476-18, 2019-27 I.R.B. 63
REG-106282-18, 2019-28 I.R.B. 259
REG-101828-19, 2019-29 I.R.B. 412
REG-106877-18, 2019-30 I.R.B. 441
REG-121508-18, 2019-30 I.R.B. 456
REG-105474-18, 2019-31 I.R.B. 493
REG-118425-18, 2019-31 I.R.B. 539
REG-130700-14, 2019-36 I.R.B. 681
REG-101378-19, 2019-37 I.R.B. 702
Revenue Rulings:
2019-16, 2019-28 I.R.B. 96
2019-17, 2019-32 I.R.B. 583
2019-18, 2019-35 I.R.B. 668
2019-19, 2019-36 I.R.B. 674
2019-20, 2019-36 I.R.B. 675
Revenue Procedures:
2019-24, 2019-29 I.R.B. 353
2019-28, 2019-32 I.R.B. 596
2019-29, 2019-32 I.R.B. 620
2019-30, 2019-33 I.R.B. 638
2019-31, 2019-33 I.R.B. 643
2019-32, 2019-33 I.R.B. 659
2019-33, 2019-34 I.R.B. 662
2019-34, 2019-35 I.R.B. 669
Treasury Decisions:
9863, 2019-27 I.R.B. 1
9864, 2019-27 I.R.B. 6
9865, 2019-27 I.R.B. 27
9867, 2019-28 I.R.B. 98
Treasury Decisions:—Continued
9868, 2019-28 I.R.B. 252
9866, 2019-29 I.R.B. 261
9861, 2019-30 I.R.B. 433
9869, 2019-30 I.R.B. 438
9862, 2019-31 I.R.B. 477
9872, 2019-32 I.R.B. 585
9871, 2019-33 I.R.B. 624
9873, 2019-33 I.R.B. 630
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.
September 9, 2019 ii Bulletin No. 2019–37

Bulletin No. 2019–37 iii September 9, 2019
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2019–37
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

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Washington, DC 20224
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INTERNAL REVENUE BULLETIN
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