Internal Revenue Bulletin 2024-39 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 2024–39
September 23, 2024
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
Notice 2024-65, page 633.
This notice requests comments from the public regarding all
aspects of sections 103 and 104 of the SECURE 2.0 Act of
2022. Section 103 of the SECURE 2.0 Act of 2022, in part,
added section 6433 to the Internal Revenue Code, which
provides for matching contributions (Saver’s Match contribu-
tions) paid by the Secretary of the Treasury to applicable
retirement savings vehicles on behalf of eligible individuals
who make qualified retirement savings contributions. Section
104 of the SECURE 2.0 Act of 2022 requires the Department
of the Treasury to take steps to increase public awareness of
the availability of Saver’s Match contributions and to provide
a report to Congress on anticipated promotion efforts by the
Department of the Treasury.
EXEMPT ORGNIZATION
Announcement 2024-39, page 639.
Revocation of IRC 501(c)(3) Organizations for failure to meet
the code section requirements. Contributions made to the
organizations by individual donors are no longer deductible
under IRC 170(b)(1)(A).
INCOME TAX
Notice 2024-64, page 632.
On February 12, 2024, the Treasury Department and the
IRS published Notice 2024-20, 2024-7 I.R.B. 668, to pro-
vide guidance on eligible census tracts for the § 30C credit
in advance of the 2023 filing season and to announce the
intent to propose regulations for the credit. Section 5.01
of Notice 2024-20 refers taxpayers to appendices with lists
of eligible census tracts based on either the 2015 census
tract boundaries or the 2020 census tract boundaries, as
relevant, using a unique identifier called an 11-digit census
tract GEOID. Section 5.02 of Notice 2024-20 provides web-
site addresses for mapping tools that taxpayers can use to
identify the 11-digit census tract GEOID for a location where
a property is placed in service. Section 5.03 of Notice 2024-
20 provides that until the issuance of the forthcoming pro-
posed regulations, taxpayers may rely on Notice 2024-20
and its appendices for purposes of determining whether
qualified alternative fuel vehicle refueling property has been
placed in service in an eligible census tract. This notice mod-
ifies sections 5.02 and 5.03 of Notice 2024-20 by updating
the mapping tools referenced in Notice 2024-20 and extend-
ing section 5.03 in Notice 2024-20.
REG-111629-23, page 640.
This document contains proposed regulations that, in gen-
eral, modify the time and manner for making and revoking
elections relating to certain foreign currency gains and losses
under §1.954-2(g) and proposed §§1.954-2(g) and 1.988-7.
Rev. Proc. 2024-35, page 638.
This revenue procedure provides the applicable percentage
table in section 36B(b)(3)(A) for taxable years beginning
in calendar year 2025 that is used to calculate an individ-
ual’s premium tax credit under section 36B. This revenue
procedure also provides the indexing adjustment for the
required contribution percentage in section 36B(c)(2)(C)(i)
(II) that is used to determine whether an individual is eligible
for employer-sponsored minimum essential coverage under
section 36B.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce 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 offi-
cial 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 23, 2024 Bulletin No. 2024–39

Part III
Modification of Notice
2024-20
Notice 2024-64
SECTION 1. PURPOSE
This notice modifies Notice 2024-20,
2024-7 I.R.B. 668, relating to the alter-
native fuel vehicle refueling property
credit under § 30C of the Internal Reve-
nue Code (§ 30C credit) by updating the
mapping tools referenced in sections 5.02
and 5.03 of Notice 2024-20 and extending
the period to which section 5.03 of Notice
2024-20 applies.
SECTION 2. BACKGROUND
1

On February 12, 2024, the Department
of the Treasury (Treasury Department)
and the Internal Revenue Service (IRS)
published Notice 2024-20, 2024-7 I.R.B.
668, to provide guidance on eligible cen-
sus tracts for the § 30C credit in advance of
the 2023 filing season and to announce the
intent to propose regulations regrading the
§ 30C credit (forthcoming proposed regu-
lations). Section 5.01 of Notice 2024-20
refers taxpayers to appendices with lists of
eligible census tracts based on either the
2015 census tract boundaries or the 2020
census tract boundaries, as relevant, using
a unique identifier called an 11-digit cen-
sus tract geographic identifiers (GEOID).
Section 5.02 of Notice 2024-20 provides
website addresses for mapping tools that
taxpayers can use to identify the 11-digit
census tract GEOID for a location where a
property is placed in service.
Section 5.03 of Notice 2024-20 pro-
vides that until the issuance of the forth-
coming proposed regulations, taxpayers
may rely on Notice 2024-20 and its appen-
dices for purposes of determining whether
qualified alternative fuel vehicle refueling
property has been placed in service in an
eligible census tract. In addition, Section
5.03 of Notice 2024-20 provides that until
the issuance of the forthcoming proposed
regulations, the IRS will administer § 30C
in a manner consistent with the appendices
and related rules described in the notice.
This notice modifies sections 5.02 and
5.03 of Notice 2024-20 as described in
section 3 of this notice.
SECTION 3. MODIFICATION TO
NOTICE 2024-20
.01 Change in Websites Used to Iden-
tify Census Tracts. Following publication
of Notice 2024-20, the Treasury Depart-
ment and the IRS identified certain techni-
cal issues related to the use of the mapping
tools identified in section 5.02 of Notice
2024-20, which in rare circumstances
may provide inaccurate results. To direct
taxpayers to accurate tools provided by
the Census Bureau for purposes of the §
30C credit, this section 3.01 updates the
mapping tools that taxpayers may use to
identify the relevant 11-digit census tract
GEOID of an eligible census tract. The
Census Bureau will provide continued
access to the updated information.
A taxpayer who files or filed a tax return
including a claim for a § 30C credit on or
before November 15, 2024, may use the
mapping tools identified in section 5.02
of Notice 2024-20 as published on Febru-
ary 20, 2024, or the mapping tools iden-
tified in section 5.02 of Notice 2024-20
as revised by this notice. A taxpayer who
files a tax return including a claim for a §
30C credit after November 15, 2024, may
use the mapping tools identified in section
5.02 of Notice 2024-20 as revised by this
notice, but may not use the mapping tools
identified in section 5.02 of Notice 2024-
20 as published on February 20, 2024.
Accordingly, sections 5.02(2) and 5.02(3)
of Notice 2024-20 are modified as follows:
(1) Section 5.02(2) of Notice 2024-20
is modified to read:
(2) Taxpayers can determine the
11-digit census tract GEOID of a location
under the 2015 census tract boundaries
by using the Census Bureau mapping tool
available via https://www.census.gov/
data/data-tools/2015-census-tract.html.
(2) Section 5.02(3) of Notice 2024-20
is modified to read:
(3) Taxpayers can determine the
11-digit census tract GEOID of a location
under the 2020 census tract boundaries
by using the Census Bureau mapping tool
available via https://www.census.gov/
data/data-tools/2020-census-tract.html.
.02 Extension of the period to which
section 5.03 applies. Section 5.03 of
Notice 2024-20 is modified by replacing
“issuance of the forthcoming proposed
regulations” with “forthcoming proposed
regulations are issued as final regulations”
in each place the phrase occurs.
SECTION 4. EFFECTIVE DATE
This notice is effective September 18,
2024.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
Sections 5.02(2), 5.02(3), and 5.03
of Notice 2024-20 are modified as pro-
vided in section 3 of this notice. Except
as explicitly provided in section 3 of this
notice, this notice does not otherwise
affect the guidance provided in Notice
2024-20.
SECTION 6. DRAFTING
INFORMATION
The principal author of this notice
is the Office of Associate Chief Coun-
sel (Passthroughs & Special Industries).
However, other personnel from the Trea-
sury Department and the IRS participated
in its development. For further informa-
tion regarding this notice, call the energy
security guidance contact number at (202)
317-6853 (not a toll-free number).
1
Terms used in this notice have the meanings provided in Notice 2024-20.
September 23, 2024 632 Bulletin No. 2024–39

Request for Comments
Regarding Implementation
of Saver’s Match
Contributions
Notice 2024-65
I. PURPOSE
This document requests comments on
issues related to sections 103 and 104 of
Division T of the Consolidated Appropria-
tions Act, 2023, Public Law 117-328, 136
Stat. 4459 (2022), known as the SECURE
2.0 Act of 2022 (SECURE 2.0 Act). Sec-
tion 103 of the SECURE 2.0 Act, in part,
added section 6433 to the Internal Rev-
enue Code (Code), which provides for
matching contributions (Saver’s Match
contributions) paid by the Secretary of the
Treasury (Secretary) to applicable retire-
ment savings vehicles on behalf of eligible
individuals who make qualified retirement
savings contributions. Section 104 of the
SECURE 2.0 Act requires the Department
of the Treasury (Treasury Department) to
take steps to increase public awareness
of the availability of Saver’s Match con-
tributions and to provide a report to Con-
gress on anticipated promotion efforts by
the Treasury Department. The Treasury
Department and the Internal Revenue
Service (IRS) are soliciting comments
to gather input from the public regard-
ing all aspects of sections 103 (including
section 6433 of the Code) and 104 of the
SECURE 2.0 Act.
II. BACKGROUND
Under section 6433 of the Code, for
taxable years beginning after December
31, 2026, an eligible individual is allowed
a Saver’s Match contribution equal to an
applicable percentage of up to $2,000 of
qualified retirement savings contributions
to a retirement account. A Saver’s Match
contribution is generally allowable as a tax
credit that is payable by the Secretary as a
contribution of up to $1,000 to an eligible
individual’s applicable retirement savings
vehicle designated by the eligible individ-
ual. Section 6433(a)(2)(A) provides that a
Saver’s Match contribution must be made
as soon as practicable after an eligible
individual files a tax return making a claim
for a Saver’s Match contribution. Section
6433(a)(2)(B) provides that an individ-
ual who is eligible for a Saver’s Match
contribution of greater than zero but less
than $100 for the taxable year may elect
for the amount claimed to be treated as a
refundable income tax credit (rather than
contributed to the individual’s applicable
retirement savings vehicle).
Section 6433(b) provides that the max-
imum percentage of qualified retirement
savings contributions eligible for Saver’s
Match contributions is 50 percent and is
reduced over a phaseout range based on
an eligible individual’s modified adjusted
gross income. While the $2,000 maximum
amount of qualified retirement savings
contributions under section 6433(a)(1)
is not indexed for inflation, the modified
adjusted gross income levels in the phase-
out range are indexed for inflation. In
determining the phaseout range, the mod-
ified adjusted gross income is determined
based on the eligible individual’s tax-
payer filing status. For example, for most
married filers, the phaseout range begins
at $41,000 and ends at $71,000, and for
most unmarried filers, the phaseout range
begins at $20,500 and ends at $35,500.
Section 6433(c) provides that an eli-
gible individual is an individual who has
attained the age of 18 as of the close of
the taxable year, other than an individual
who is (1) a full-time student as defined
in section 152(f)(2), (2) claimed as a
dependent on another taxpayer’s return
for a taxable year beginning in the calen-
dar year in which the individual’s taxable
year begins, or (3) a nonresident alien who
meets certain conditions.
Section 6433(d)(1) provides that an
eligible individual’s qualified retirement
savings contributions for a year are the
sum of any of the following: (1) contri-
butions to traditional and Roth individual
retirement accounts and annuities (IRAs);
(2) elective deferrals to a section 401(k)
plan, a section 403(b) plan, a governmen-
tal section 457(b) plan, a SIMPLE IRA,
or a Simplified Employee Pension (SEP)
plan; (3) voluntary after-tax employee
contributions to a qualified retirement
plan or annuity or a section 403(b) plan;
and (4) contributions to a section 501(c)
(18) plan. Section 6433(d)(2)(A) provides
that qualified retirement savings contribu-
tions for a taxable year are reduced (but
not below zero) by the aggregate distri-
butions received by the individual during
a testing period from any IRA, plan, or
annuity of a type to which qualified retire-
ment savings contributions may be made.
Section 6433(d)(2)(B) provides that the
testing period is the period that includes
(1) the taxable year during which quali-
fied retirement savings contributions are
made, (2) the two preceding taxable years,
and (3) the period after the taxable year
during which qualified retirement savings
contributions are made and before the due
date (including extensions) for filing the
tax return for that taxable year. Section
6433(d)(2)(C) provides that certain dis-
tributions made during the testing period
are not taken into account for purposes of
the reduction, including any portion of a
distribution that is rolled over to another
retirement plan or IRA. Section 6433(d)
(2)(D) provides that, for purposes of the
reduction, any distribution received by the
spouse of an eligible individual is treated
as received by that eligible individual if
the eligible individual and spouse file a
joint return for the taxable year for which
the Saver’s Match contribution is claimed
and for the taxable year during which the
spouse receives the distribution.
Under section 6433(e)(2), an applicable
retirement savings vehicle is an account
or plan that (1) is a traditional (non-Roth)
IRA or the non-Roth portion of a section
401(k) plan, a section 403(b) plan, or a
governmental section 457(b) plan, (2) is
for the benefit of an eligible individual, (3)
accepts Saver’s Match contributions, and
(4) is designated by the eligible individual
in such form and manner as the Secretary
may provide.
Section 6433(f)(2)(A) provides that a
Saver’s Match contribution is treated as an
elective deferral made by an eligible indi-
vidual or as an IRA contribution (as appli-
cable), except as provided by the Secre-
tary under regulations. Section 6433(f)
(2)(B) provides that the Saver’s Match
contribution is generally not taken into
account with respect to retirement plan
and IRA limitations. In addition, under
section 6433(f)(2)(C), the Saver’s Match
contribution is not treated as an amount
that may be paid, made available, or dis-
tributable to the eligible individual under
section 401(k)(2)(B)(i)(IV) or 403(b)(7)
Bulletin No. 2024–39 633 September 23, 2024

September 23, 2024 634 Bulletin No. 2024–39
(A)(i)(V) (hardships), or section 457(d)(1)
(A)(iii) (unforeseeable emergencies).
Section 6433(f)(3) provides that any
applicable retirement savings vehicle
to which a Saver’s Match contribution
is made is not treated as violating any
requirements under section 401, 403, 408,
or 457, as applicable, solely by reason of
accepting that contribution.
Section 6433(f)(4)(A) provides that
any Saver’s Match contribution that was
erroneously paid, including a payment
that is not made to an applicable retire-
ment savings vehicle, is treated as an
underpayment of tax for the taxable year
in which the Secretary determines that the
payment was erroneous. Section 6433(f)
(4)(B)(i) provides that, in the case of an
erroneously paid Saver’s Match contribu-
tion, the distribution of that contribution is
excluded from income, and the 10 percent
additional tax on early distributions does
not apply to the distribution of that con-
tribution or income attributable to such
contribution, if the distribution of such
amounts is received no later than the due
date (including extensions) for filing the
individual’s tax return for such taxable
year. Section 6433(f)(4)(B)(ii) provides
that any plan or arrangement that makes
a distribution of Saver’s Match contri-
butions that were erroneously paid is not
treated as violating section 401, 403, or
457 solely by reason of making the dis-
tribution.
Section 6433(f)(5) provides that the
Saver’s Match contribution is not subject
to certain reductions or offsets under sec-
tion 6402 and is not reduced or offset by
other assessed Federal taxes that would
otherwise be subject to levy or collection.
Section 6433(f)(6) provides that in the
case of an applicable retirement savings
vehicle to which contributions have been
made under section 6433(a)(2) and from
which a specified early distribution under
section 6433(f)(6)(B) has been made
during the taxable year, if the aggregate
amount of those contributions exceeds the
account balance of that savings vehicle at
the end of the taxable year, an additional
tax applies (Saver’s Match Recovery
tax). Section 6433(f)(6)(A) and (D) pro-
vide that this Saver’s Match Recovery
tax is equal to the amount of the excess
described in the prior sentence, reduced
by (1) the amount of the 10 percent addi-
tional tax on early distributions imposed
by section 72(t)(1) that applies to such
distribution and (2) allocable investment
losses (pursuant to such rules prescribed
by the Secretary as may be appropriate).
Section 6433(f)(6)(B) provides that a
specified early distribution is any portion
of a distribution that is (1) made from the
applicable retirement savings vehicle to
which Saver’s Match contributions have
been made, (2) includible in gross income,
and (3) subject to the 10 percent additional
tax on early distributions imposed by sec-
tion 72(t)(1).
Section 6433(f)(6)(C) provides that
an eligible individual may also reduce
the Saver’s Match Recovery tax (but not
below zero) for a taxable year during
which a specified early distribution has
been made by making additional contri-
butions not in excess of the amount of the
specified early distribution to an applica-
ble retirement savings vehicle to which
rollover contributions may be made. The
Saver’s Match Recovery tax is reduced
to the extent of the additional contri-
butions. The additional contributions
must be made by the due date (including
extensions) of the eligible individual’s
tax return for the taxable year in which
the Saver’s Match Recovery tax would
otherwise be owed. In addition, an eli-
gible individual’s additional contribu-
tions to an applicable retirement savings
vehicle that is not an IRA may only be
made to the vehicle if the individual is
otherwise eligible to make contributions
to the vehicle. Under section 6433(f)(6)
(C)(iv) and (v), these additional contri-
butions are treated as having been trans-
ferred in a direct trustee-to-trustee trans-
fer within 60 days of the specified early
distribution.
Section 103(c)(2) of the SECURE
2.0 Act provides for the amendment of
forms to require separate reporting of the
aggregate amount of Saver’s Match con-
tributions received by an applicable retire-
ment savings vehicle. Section 103(c)(2)
(A) provides for the amendment of forms
required under section 6058 of the Code
for reporting the aggregate amount of
Saver’s Match contributions received by
a retirement plan during a plan year. Sec-
tion 103(c)(2)(B) of the SECURE 2.0 Act
provides for similar reporting with respect
to IRAs.
Section 104 of the SECURE 2.0 Act
requires the Treasury Department to take
steps to increase public awareness of Sav-
er’s Match contributions, and to provide
a report to Congress no later than July 1,
2026, summarizing the anticipated pro-
motional efforts. The report must include
a description of plans for: (1) the devel-
opment and distribution of digital and
print materials, including the distribution
of such materials to states for partici-
pants in state facilitated retirement sav-
ings programs; (2) the translation of such
materials into the 10 most commonly spo-
ken languages in the United States after
English (as determined by reference to the
most recent American Community Sur-
vey of the Bureau of the Census); and (3)
communicating the adverse consequences
of early withdrawal from an applicable
retirement savings vehicle to which a
matching contribution has been paid under
section 6433(a)(2) of the Code, including
the operation of the Saver’s Match Recov-
ery tax under section 6433(f)(6) and asso-
ciated early withdrawal taxes. The report
must also include such other information
as the Secretary determines is necessary.
III. REQUEST FOR COMMENTS
Saver’s Match contributions represent
a new approach to promoting retirement
savings and an important opportunity to
improve the long-term financial security
for millions of low- to moderate-income
Americans. Thoughtful and strategic
preparation by the Treasury Department
and the IRS, as well as other stakeholders,
will be necessary for the program to reach
its full potential in improving the retire-
ment readiness of low- to moderate-in-
come Americans. The Treasury Depart-
ment and the IRS seek to implement
Saver’s Match contributions in a manner
that will minimize costs and administra-
tive burdens for all stakeholders, stream-
line the process for eligible individuals to
claim Saver’s Match contributions, and
encourage retirement plans and IRAs to
accept Saver’s Match contributions so that
Saver’s Match contributions are consoli-
dated with other retirement assets. Com-
ments are requested from the perspective
of all interested stakeholders, including
eligible individuals, volunteer and for-
profit tax preparers, organizations that

Bulletin No. 2024–39 635 September 23, 2024
serve and advise eligible individuals, IRA
custodians and trustees, and retirement
plan administrators, recordkeepers, and
sponsors, to gain a better understanding
of the issues related to the implementation
of, and compliance with, this provision.
Specifically, the Treasury Department and
the IRS request comments that address the
following questions:
A. Eligibility for Saver’s Match
Contributions
Question 1: What practical consider-
ations should the Treasury Department
and the IRS take into account in guid-
ance regarding an individual’s eligibility
for Saver’s Match contributions? In par-
ticular, what guidance would be helpful
to explain the exclusion from eligibility
for certain nonresident aliens under sec-
tion 6433(c)(3) (an exclusion that does
not apply under the Saver’s Credit under
section 25B), application of the modified
adjusted gross income limit under sec-
tion 6433(b), and the determination of
qualified retirement savings contributions
under section 6433(d) (taking into account
the effect of certain distributions under
section 6433(d)(2))?
Question 2: In order to be eligible for
a Saver’s Match contribution, an eligible
individual must make qualified retirement
savings contributions. What are the rele-
vant barriers individuals face in making
qualified retirement savings contributions,
including any unique barriers faced by
specific underserved communities? For
example, do individuals face barriers in
learning about or becoming aware of avail-
able retirement savings opportunities and
are there platforms and forums that could
be used to inform individuals of opportu-
nities and encourage retirement savings?
How can the Treasury Department and the
IRS help individuals overcome these bar-
riers and encourage individuals to make
qualified retirement savings contributions
and claim Saver’s Match contributions?
B. How Saver’s Match Contributions Are
Claimed
Question 3: What considerations should
the Treasury Department and the IRS take
into account regarding the method (such
as an IRS form or other means) by which
an eligible individual must claim Saver’s
Match contributions (including ways in
which the method used should differ from
the existing Form 8880, Credit for Qual-
ified Retirement Savings Contributions,
used to claim the Saver’s Credit under sec-
tion 25B)? If a form for claiming Saver’s
Match contributions is based on the Form
8880, how should that form be modified?
Question 4: Taking into account that
eligibility for the Saver’s Match contribu-
tion is based, in part, on an eligible indi-
vidual’s modified adjusted gross income
and filing status, should eligible individ-
uals be required to file a Form 1040, U.S.
Individual Income Tax Return, in order
to claim a Saver’s Match contribution,
or should a standalone form that requires
relevant information be provided that
does not require an accompanying Form
1040 be used (for individuals who are not
required to file a Form 1040 due to income
level)?
Question 5: What methods should the
Treasury Department and the IRS consider
in order to simplify, from the perspective
of eligible individuals, the procedure for
an eligible individual to claim Saver’s
Match contributions and designate an
applicable retirement savings vehicle?
Question 6: For an eligible individual
whose Saver’s Match contribution amount
for a year would be less than $100, what
considerations should the Treasury
Department and the IRS take into account
regarding the eligible individual’s option
to have that amount be treated as a refund-
able income tax credit? For example, what
should the default election be if an eligible
individual claims a Saver’s Match contri-
bution amount for a year that is less than
$100, but fails to affirmatively elect an
applicable retirement savings vehicle to
receive the Saver’s Match contribution?
C. How to Designate the Destination for
Saver’s Match Contributions
Question 7: How should eligible indi-
viduals designate an IRA as an applica-
ble retirement savings vehicle to receive
Saver’s Match contributions? What would
be the best method for IRA trustees and
custodians to communicate to eligible
individuals (including through existing
procedures such as using a password-pro-
tected website) the information (including
account and routing information) needed
to claim Saver’s Match contributions?
For example, should the IRS use the same
method for designating an IRA to which
tax refunds are paid via direct deposit
(using a form similar to Form 8888, Allo-
cation of Refund (Including Savings Bond
Purchases)), which requires identification
of account and routing numbers? Alter-
natively, should a method be provided
for IRA trustees and custodians (or other
service providers) to provide to the IRS
information identifying account and rout-
ing numbers without requiring the eligible
individual to provide that information,
and if so, what method should the Trea-
sury Department and the IRS consider?
Question 8: How should eligible indi-
viduals designate a retirement plan as
an applicable retirement savings vehicle
to receive Saver’s Match contributions?
What would be the best method for retire-
ment plans to communicate to eligible
individuals the information (including
account and routing information) needed
to claim Saver’s Match contributions? For
example, should a method be provided for
plan service providers to provide to the
IRS information identifying a trustee’s (or
other service provider’s) account and rout-
ing numbers without requiring the eligible
individual to provide that information?
Question 9: Should the IRS provide to
the trustee or other service provider allo-
cation directions in an addenda record
associated with an Automated Clearing
House (ACH) transaction? Are there other
approaches to providing allocation direc-
tions that the IRS should consider, such
as a participating service provider regis-
tration process in which service providers
access allocation instructions in another
format? What information would the IRS
need to provide as part of an addenda
record or other similar approach to facil-
itate Saver’s Match contributions? Would
the information required differ between
retirement plans and IRAs?
Question 10: What steps could be
taken to ensure that a Saver’s Match con-
tribution is correctly made to an eligible
individual’s applicable retirement savings
vehicle? What steps could be taken to pre-
vent the disbursement of Saver’s Match
contributions to an ineligible account,
such as a Roth IRA (which, under section
6433(e)(2)(A)(ii), may not receive Sav-

September 23, 2024 636 Bulletin No. 2024–39
er’s Match contributions and is, thus, not
an applicable retirement savings vehicle),
particularly if the eligible individual pro-
vides account and routing information to
designate the retirement account?
Question 11: If a payment is errone-
ously made to an account that is not an
applicable retirement savings vehicle,
section 6433(f)(4) requires the amount to
be treated as an underpayment of tax for
the taxable year in which the Secretary
determines the payment was erroneous.
What considerations should the Treasury
Department and the IRS take into account
regarding the treatment of erroneous Sav-
er’s Match contributions, including if an
applicable retirement savings vehicle
returns a Saver’s Match contribution to
the Treasury Department?
D. How the Treasury Department
Completes Saver’s Match Contributions
Question 12: How can the Treasury
Department and the IRS assist eligible
individuals who make qualified retirement
savings contributions to a Roth IRA and
who do not otherwise participate in an
IRA or retirement plan that accepts Sav-
er’s Match contributions? For example,
certain states require employers to pro-
vide automatic Roth IRA contributions for
individuals who do not otherwise partici-
pate in an employer-sponsored retirement
plan and do not elect out of the automatic
contributions. Would there be significant
cost savings in facilitating a streamlined
approach for opening up a traditional IRA
in state automatic Roth IRA programs
and, if so, what IRS guidance would be
helpful for these programs to realize these
cost savings?
Question 13: In connection with Form
8888 (which permits a taxpayer to desig-
nate an IRA as a recipient of tax refunds),
a Treasury Department website includes
Frequently Asked Questions (https://
www.fiscal.treasury.gov/eft/faq-tax-re-
fund.html) relating to the process for pay-
ing tax refunds via direct deposit, includ-
ing to IRAs. For example, the Frequently
Asked Questions relating to the process
for paying tax refunds to IRAs include
information on procedures that apply if
a refund is transmitted into an incorrect
account, fraud is suspected, or the refund
is returned. Should similar information be
provided with respect to the payment of
Saver’s Match contributions to a desig-
nated IRA or retirement plan or is differ-
ent or additional information needed?
Question 14: What practical or admin-
istrative considerations should be taken
into account with regard to the process for
contributing Saver’s Match contributions
to a designated IRA or retirement plan?
For example, each tax refund paid elec-
tronically is currently sent via a separate
ACH transaction, even if there are mil-
lions of separate ACH transactions sent to
the same financial institution. Would any
issues arise if each Saver’s Match contri-
bution was also sent via a separate ACH
transaction? In the alternative, should a
procedure be developed by which Saver’s
Match contributions for multiple eligi-
ble individuals are batched together with
respect to payments made to a particular
retirement savings vehicle or with respect
to payments made to a particular trustee,
custodian, or recordkeeper?
Question 15: What considerations
should the Treasury Department and the
IRS take into account if the Saver’s Match
contribution cannot be completed (for
example, if an eligible individual makes a
claim for a Saver’s Match contribution, but
does not properly designate an applicable
retirement savings vehicle to receive the
Saver’s Match contribution, makes a mis-
take in entering information relating to the
designated vehicle, or ceases to participate
in the designated vehicle prior to the pay-
ment of the Saver’s Match contribution)?
For example, should a default destination
be developed (perhaps modeled after rules
for automatic portability transactions with
respect to automatic cash-outs of small
retirement plan benefits, as described in
the preamble of the Department of Labor
proposed Automatic Portability Transac-
tion Regulations, 89 FR 5624, 5625, Jan.
29, 2024)?
Question 16: Should the Treasury
Department and the IRS consider devel-
oping a process by which the IRS sends
information in advance to an applicable
retirement savings vehicle about antic-
ipated Saver’s Match contributions,
similar to the process by which payroll
providers preview contributions to retire-
ment plans so that the plans can identify
any issues before remittance? If so, how
should this process work, and can this pro-
cess be implemented to minimize burdens
on stakeholders and address privacy risks?
E. Saver’s Match Recovery Tax on
Specified Early Distributions
Question 17: If an individual receives
a specified early distribution before reach-
ing age 59½ (and no exception to the
additional tax under section 72(t) applies),
that distribution may be subject to a Sav-
er’s Match Recovery tax under section
6433(f)(6) in addition to income tax. The
Saver’s Match Recovery tax is reduced by
the 10% additional tax liability under sec-
tion 72(t) applicable to the specified early
distribution. How can the IRS facilitate
calculating and reporting of the Saver’s
Match Recovery tax? For example, Form
5329, Additional Taxes on Qualified Plans
(Including IRAs) and Other Tax-Favored
Accounts, is used by taxpayers to claim
exceptions to the section 72(t) additional
tax and to pay additional taxes on retire-
ment plans, IRAs, and other tax-favored
accounts. Should a similar method be
used with respect to reporting the Saver’s
Match Recovery tax?
Question 18: For purposes of calculat-
ing the Saver’s Match Recovery tax, what
guidance would be helpful regarding the
treatment of rollovers and transfers from
an applicable retirement savings vehicle
that has received Saver’s Match contri-
butions (for example, with respect to the
possible application of the Saver’s Match
Recovery tax to subsequent distributions)?
Question 19: Section 6433(f)(6)(D)
provides that the Secretary may provide
rules for reducing the amount of the Sav-
er’s Match Recovery tax by the alloca-
ble investment losses in an applicable
retirement savings vehicle. What guid-
ance would be helpful with respect to the
determination of investment losses in a
particular applicable retirement savings
vehicle? For example, as an alternative to
allocating investment losses in the appli-
cable retirement savings vehicle, would it
be burdensome for retirement plans and
IRAs to have a method of accounting for
separate sources (such as maintaining a
subaccount) for Saver’s Match contribu-
tions?
Question 20: Section 6433(f)(6)(C)
provides rules for a reduction in the Sav-
er’s Match Recovery tax on account of

Bulletin No. 2024–39 637 September 23, 2024
a recontribution by an eligible individual
of a specified early distribution. What
guidance would be helpful with respect
to these recontributions? For example,
does the method of reporting recontri-
butions of qualified disaster distribu-
tions on Form 8915-F, Qualified Disas-
ter Retirement Plan Distributions and
Repayments, provide a model that could
be used for recontributions of specified
early distributions?
F. Reporting and Disclosure
Question 21: Section 103(c)(2) of the
SECURE 2.0 Act directs the Secretary to
amend forms relating to reports required
under section 6058 of the Code for retire-
ment plans (for example, Form 5500
series)
0
to require reporting of aggregate
amounts of Saver’s Match contributions
received by an applicable retirement sav-
ings vehicle during a year and to require
similar reporting relating to IRAs (for
example, Form 5498, IRA Contribution
Information). How can these forms be
amended in a manner that reduces admin-
istrative burdens for retirement plans and
IRA trustees and custodians?
Question 22: What information should
be required to be available to assist eli-
gible individuals in determining whether
a particular IRA or retirement plan will
accept Saver’s Match contributions, and
where should that information be located?
Should plan administrators and IRA trust-
ees and custodians be required to provide
an annual written notification to retire-
ment plan participants and IRA owners
describing the availability of Saver’s
Match contributions with respect to qual-
ified retirement savings contributions to
the retirement plan or IRA (and, if Saver’s
Match contributions are not accepted, that
the eligible individual can claim Saver’s
Match contributions by identifying another
applicable retirement savings vehicle)?
For example, under § 1.401(k)-3(d)(2)(ii)
(B), a safe harbor notice must describe any
contributions under a safe harbor plan for
matching contributions to another retire-
ment plan on account of elective contri-
butions or employee contributions under
the retirement plan. If an annual written
notification is required, what information
should be included to encourage eligible
individuals to claim Saver’s Match contri-
butions?
G. Miscellaneous Issues
Question 23: Other than issues under
the Code, are there any issues under appli-
cable Federal, state, or local law that are a
cause for concern regarding the operation
of the rules for Saver’s Match contribu-
tions?
Question 24: Are there any methods or
procedures not previously discussed that
would minimize costs and administrative
burdens across stakeholders implement-
ing Saver’s Match contributions, encour-
age retirement plans and IRA custodians
to accept Saver’s Match contributions,
and streamline the process for eligible
individuals to claim Saver’s Match con-
tributions?
Question 25: Retirement plans and
IRAs that accept Saver’s Match contribu-
tions will need to be amended to provide
for those contributions. What consider-
ations should the Treasury Department
and the IRS take into account regarding
the content and timing of these amend-
ments, including with respect to pre-ap-
proved retirement plans and IRAs? What
guidance would be helpful with respect to
these amendments?
Question 26: The Treasury Department
and the IRS anticipate issuing written
guidance, publications, and updated forms
and instructions. What additional efforts
would be helpful to promote and increase
public awareness for Saver’s Match con-
tributions (including with respect to differ-
ent demographic groups, such as individu-
als for whom English is not their primary
language)? Are there any online tools (for
example, calculators or social media-
based tools) that the Treasury Department
and the IRS should utilize or develop to
encourage contributions to applicable
retirement savings vehicles, promote the
claiming of Saver’s Match contributions,
and facilitate the administration of Saver’s
Match contributions?
Question 27: Are there ways that the
Treasury Department and the IRS can use
innovative technology, such as blockchain
technology, to facilitate Saver’s Match
contributions?
Question 28: What guidance, if any,
would be helpful relating to the transition
from the Saver’s Credit under section 25B
to Saver’s Match contributions under sec-
tion 6433?
Question 29: Although Saver’s Match
contributions generally are treated as elec-
tive deferrals, including for purposes of
applying distribution limitations, section
6433(f)(2)(C) provides that Saver’s Match
contributions are not treated as amounts
that may be paid, made available, or dis-
tributable to an eligible individual in the
case of a hardship distribution under sec-
tion 401(k)(2)(B)(i)(IV) or 403(b)(7)(A)
(i)(V), or an unforeseeable emergency dis-
tribution under section 457(d)(1)(A)(iii).
What guidance, if any, would be helpful
regarding implementation of this provi-
sion by plan administrators, for example,
regarding separate accounting of Saver’s
Match contributions?
IV. SUBMISSION OF COMMENTS
Written comments should be submitted
on or before November 4, 2024. Consider-
ation will be given, however, to any writ-
ten comment submitted after November 4,
2024, if such consideration will not delay
the issuance of guidance. The subject line
for the comments should include a refer-
ence to Notice 2024-65. Comments may
be submitted in one of two ways:
(1) Electronically via the Federal
eRulemaking Portal at www.regulations.
gov (type IRS-2024-0034 in the search
field on the regulations.gov homepage to
find this notice and submit comments).
(2) Alternatively, by mail to: Internal
Revenue Service, CC:PA:01:PR (Notice
2024-65), Room 5203, P.O. Box 7604,
Ben Franklin Station, Washington, DC
20044.
All commenters are strongly encour-
aged to submit comments electronically.
The Treasury Department and the IRS
will publish for public availability any
1
Form 5500 series returns include Form 5500, Annual Return/Report of Employee Benefit Plan, Form 5500-SF, Short Form Annual Return/Report of Small Employee Benefit Plan, and Form
5500-EZ, Annual Return of A One Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan.

September 23, 2024 638 Bulletin No. 2024–39
comment submitted electronically, or on
paper, to its public docket on regulations.
gov.
V. DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the Treasury Department and the IRS par-
ticipated in its development. For further
information regarding this notice, please
contact Mr. Morgan at (202) 317-6700
(not a toll-free number).
26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part 1, §§ 36B, 1.36B-2, 1.36B-3.)
Rev. Proc. 2024-35
SECTION 1. PURPOSE
This revenue procedure provides the
applicable percentage table (Applica-
ble Percentage Table) in § 36B(b)(3)(A)
of the Internal Revenue Code (Code)
1

for taxable years beginning in calendar
year 2025.
2
This table is used to calcu-
late an individual’s premium tax credit
under § 36B. This revenue procedure
also provides the indexing adjustment
for the required contribution percent-
age (Required Contribution Percentage)
in § 36B(c)(2)(C)(i)(II) for plan years
beginning in calendar year 2025. This
percentage is used to determine whether
an individual is eligible for affordable
employer-sponsored minimum essential
coverage under § 36B.
SECTION 2. ADJUSTED ITEMS
.01 Applicable Percentage Table for
2025. For taxable years beginning in cal-
endar year 2025, the Applicable Percent-
age Table for purposes of § 36B(b)(3)(A)
and § 1.36B-3(g) is:
Household income percentage of Federal poverty line:Initial percentageFinal percentage
Less than 150%0.00%0.00%
At least 150% but less than 200%0.00%2.00%
At least 200% but less than 250%2.00%4.00%
At least 250% but less than 300%4.00%6.00%
At least 300% but less than 400%6.00%8.50%
At least 400% and higher8.50%8.50%
.02 Required Contribution Percentage
for 2025.
(1) Section 9661 of the ARPA and §
12001(a) of the IRA did not amend the
rules under § 36B(c)(2)(C)(iv) relating
to the Required Contribution Percent-
age, including the rules relating to the
indexing of the Required Contribution
Percentage. See § 36B(b)(3)(A)(iii)(I).
The Required Contribution Percentage
for plan years beginning in calendar year
2025 is indexed based on the rates of
premium growth relative to the rates of
income growth in guidance issued by the
Department of Health and Human Ser-
vices (HHS).
3
In addition, the additional
adjustment provided in § 36B(b)(3)(A)(ii)
(II) is not required for plan years begin-
ning in 2025 because the Department of
the Treasury and the Internal Revenue
Service have determined that the failsafe
exception described in § 36B(b)(3)(A)(ii)
(III) applies for plan years beginning in
calendar year 2025.
(2) For plan years beginning in calen-
dar year 2025, the Required Contribution
Percentage for purposes of § 36B(c)(2)(C)
(i)(II) and § 1.36B-2(c)(3)(v)(C) is 9.02%.
SECTION 3. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2014-37, 2014-2 C.B. 363,
is supplemented.
SECTION 4. EFFECTIVE DATE
This revenue procedure is effective for
taxable years and plan years beginning in
calendar year 2025.
SECTION 5. DRAFTING
INFORMATION
The principal author of this reve-
nue procedure is Clara L. Raymond of
the Office of Associate Chief Counsel
(Income Tax and Accounting). For further
information regarding this revenue proce-
dure, contact Ms. Raymond at (202) 317-
4718 (not a toll-free number).
1

Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).
2

Section 9661 of the American Rescue Plan Act of 2021, Public Law 117-2, 135 Stat. 4, 182 (2021) (ARPA), added § 36B(b)(3)(A)(iii) to the Code to provide an Applicable Percentage Table
that applies for taxable years beginning in calendar years 2021 and 2022.

Section 12001(a) of the Inflation Reduction Act of 2022, Public Law 117-169, 136 Stat. 1818, 1905 (2022) (IRA)
extended to taxable years beginning in calendar years 2023-2025 the Applicable Percentage Table enacted by the ARPA.

Section 36B(b)(3)(A)(iii) also suspends indexing of the Applicable
Percentage Table for taxable years 2021-2025.
3
The rate of premium growth and the rate of income growth for calendar year 2025 are calculated using the NHEA Projections, 2022-2031, available at: https://www.cms.gov/Research-Sta-
tistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NationalHealthAccountsProjected, which reflect the most recent projections, and the methodology used
to calculate the same rates of growth in the Premium Adjustment Percentage guidance for the 2025 benefit year published by the Center for Medicare and Medicaid Services on November
15, 2023, available at: https://www.cms.gov/files/document/2025-papi-parameters-guidance-2023-11-15.pdf.

Bulletin No. 2024–39 639 September 23, 2024
Part IV
Deletions From Cumulative
List of Organizations,
Contributions to Which are
Deductible Under Section
170 of the Code
Announcement 2024-39
Table of Contents
The Internal Revenue Service has
revoked its determination that the organi-
zations listed below qualify as organiza-
tions described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.
Generally, the IRS will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the IRS is not pre-
cluded from disallowing a deduction for
any contributions made after an organiza-
tion ceases to qualify under section 170(c)
(2) if the organization has not timely filed
a suit for declaratory judgment under sec-
tion 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declar-
atory judgment has been timely filed,
contributions from individuals and orga-
nizations described in section 170(c)(2)
that are otherwise allowable will continue
to be deductible. Protection under section
7428(c) would begin on July 15, 2024, and
would end on the date the court first deter-
mines the organization is not described in
section 170(c)(2) as more particularly set
for in section 7428(c)(1). For individual
contributors, the maximum deduction pro-
tected is $1,000, with a husband and wife
treated as one contributor. This benefit is
not extended to any individual, in whole
or in part, for the acts or omissions of the
organization that were the basis for revo-
cation.
Name Of OrganizationEffective Date of RevocationLocation
Muse Foundation of New York Inc1/1/2020New York, NY
Ina Haynes Foundation, Inc.1/1/2020Tempe, AZ

September 23, 2024 640 Bulletin No. 2024–39
Notice of Proposed
Rulemaking
REG-111629-23
Guidance Regarding
Elections Relating to
Foreign Currency Gains
and Losses
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemak-
ing; partial withdrawal of proposed
rulemaking.
SUMMARY: This document contains
proposed regulations regarding the time
for making and revoking certain elections
relating to foreign currency gain or loss.
DATES: Written or electronic comments
and requests for a public hearing must
be received by October 21, 2024. As of
August 19, 2024, proposed §1.954-2(g)(3)
(iii) and (g)(4)(iii) and proposed §1.988-
7(c) through (e), contained in the notice
of proposed rulemaking published in the
Federal Register of December 19, 2017
(82 FR 60135), are withdrawn.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically via the Federal eRulemak-
ing Portal at www.regulations.gov (indi-
cate IRS and REG-111629-23) by follow-
ing the online instructions for submitting
comments. Once submitted to the Federal
eRulemaking Portal, comments cannot be
edited or withdrawn. The Department of
the Treasury (“Treasury Department”) and
the IRS will publish for public availability
any comments submitted to the IRS’s pub-
lic docket. Send hard copy submissions to:
CC:PA:01:PR (REG-111629-23), Room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning proposed
§1.954-2(g)(3)(ii) and (iii) and (g)(4)
(iii), Edward Tracy at (202) 317-6934;
concerning proposed §1.988-7(c) and (d),
Shane Ward at (202) 317-6938; concern-
ing submissions of comments or requests
for a public hearing, Vivian Hayes at (202)
317-6901 (not toll free numbers) or publi-
chearings@irs.gov.
SUPPLEMENTARY INFORMATION:
Background
I. Elections Under §1.954-2(g)
In general, section 954(c)(1)(D) of
the Internal Revenue Code and §1.954-
2(g) provide that foreign personal
holding company income (“FPHCI”)
includes the excess of foreign currency
gains over foreign currency losses
attributable to any section 988 trans-
actions. Under §1.954-2(g)(3) and (4),
two different elections are available to
United States shareholders (“U.S. share-
holders”) that are controlling United
States shareholders (“controlling U.S.
shareholders”) of a controlled foreign
corporation (“CFC”) with respect to
the CFC’s computation of its FPHCI.
First, under §1.954-2(g)(3), controlling
U.S. shareholders may elect to exclude
foreign currency gain or loss otherwise
includible in the CFC’s FPHCI com-
putation under §1.954-2(g) and instead
include such foreign currency gain or
loss in the category (or categories) of
subpart F income to which such gain or
loss relates (the Ҥ1.954-2(g)(3) elec-
tion”). Second, §1.954-2(g)(4) provides
that controlling U.S. shareholders may
elect to treat as FPHCI all foreign cur-
rency gains or losses attributable to any
section 988 transaction (except those
described in §1.954-2(g)(5)) and any
section 1256 contract that would be a
section 988 transaction but for section
988(c)(1)(D) (the Ҥ1.954-2(g)(4) elec-
tion” and, together with the §1.954-2(g)
(3) election, the Ҥ1.954-2(g) elec-
tions”). A §1.954-2(g)(4) election super-
sedes a §1.954-2(g)(3) election. Under
§1.954-2(g)(3)(ii) and (g)(4)(ii), con-
trolling U.S. shareholders make either
of the §1.954-2(g) elections on behalf of
the CFC by filing a statement with their
original income tax return for the “tax-
able year of [the U.S. shareholders] end-
ing with or within the taxable year of the
[CFC]” for which the election is made,
clearly indicating that the election has
been made.
II. Revocations Under §1.954-2(g)(3)(iii)
and (g)(4)(iii) and Proposed §1.954-2(g)
(3)(iii) and (g)(4)(iii)
Under §1.954-2(g)(3)(iii) and (g)(4)
(iii), a CFC’s controlling U.S. sharehold-
ers may revoke a §1.954-2(g) election by
or with the consent of the Commissioner.
As part of the 2017 notice of proposed
rulemaking in respect of §1.988-7 (the
“2017 proposed regulations”) (described
further in sections III and IV of this
Background section of the preamble),
revisions were proposed to the rules for
revoking §1.954-2(g) elections. 82 FR
60135, 60142-60143. Under the 2017
proposed regulations, a CFC’s controlling
U.S. shareholders would be permitted to
revoke the CFC’s §1.954-2(g) election
at any time. Proposed §1.954-2(g)(3)(iii)
and (g)(4)(iii). Further, the 2017 proposed
regulations would provide that if the elec-
tion is revoked, a new election cannot be
made until the sixth taxable year follow-
ing the year in which the previous election
was revoked, and the subsequent election
cannot be revoked until the sixth taxable
year following the year in which the sub-
sequent election was made. Id. Similar
to the procedure for making §1.954-2(g)
elections, a CFC’s controlling U.S. share-
holders would revoke §1.954-2(g) elec-
tions on behalf of the CFC under the 2017
proposed regulations by filing a statement
that clearly indicates that the election
has been revoked with their original or
amended income tax returns for “the tax-
able year of [the U.S. shareholders] end-
ing with or within the taxable year of the
[CFC] for which the election is revoked.”
Id. The 2017 proposed regulations permit-
ted taxpayers to rely on proposed §1.954-
2(g)(3)(iii) and (g)(4)(iii) to revoke
§1.954-2(g) elections for taxable years
ending on or after December 19, 2017,
subject to a consistency requirement. 82
FR 60135, 60141.
III. Election Under Proposed §1.988-7(c)
Under the 2017 proposed regulations,
a taxpayer, including a CFC, would be
permitted to elect to use a mark-to-market

Bulletin No. 2024–39 641 September 23, 2024
method of accounting for section 988 gain
or loss with respect to certain section 988
transactions (the “proposed §1.988-7 elec-
tion”). Proposed §1.988-7(a). Under pro-
posed §1.988-7(c) of the 2017 proposed
regulations, a taxpayer makes a proposed
§1.988-7 election by filing a statement that
clearly indicates that the election has been
made with its timely-filed original Federal
income tax return for the taxable year for
which the election is made. In the case of
a CFC, the controlling U.S. shareholders
make the proposed §1.988-7 election on
behalf of the CFC by filing a statement
that clearly indicates that the election has
been made with their timely-filed, origi-
nal Federal income tax returns for the
“taxable year of [the U.S. shareholders]
ending with or within the taxable year of
the [CFC] for which the election is made.”
The preamble to the 2017 proposed regu-
lations stated that taxpayers are permitted
to rely on proposed §1.988-7(c) to make
a proposed §1.988-7 election for taxable
years ending on or after December 19,
2017, subject to a consistency require-
ment. 82 FR 60135, 60141.
IV. Revocation Under Proposed
§1.988-7(d)
Under the 2017 proposed regulations,
a taxpayer, including a CFC, would be
permitted to revoke its proposed §1.988-7
election at any time. Proposed §1.988-
7(d). Further, the 2017 proposed regula-
tions provided that if a proposed §1.988-7
election has been revoked, a new pro-
posed §1.988-7 election cannot be made
until the sixth taxable year following the
year in which the previous election was
revoked, and a subsequent election cannot
be revoked until the sixth taxable year fol-
lowing the year in which the subsequent
election was made. Id. Under the 2017
proposed regulations, a taxpayer would
revoke a proposed §1.988-7 election by
filing a statement that clearly indicates
that the election has been revoked with its
original or amended Federal income tax
return for the taxable year for which the
election is revoked. Id. The preamble to
the 2017 proposed regulations stated that
taxpayers are permitted to rely on pro-
posed §1.988-7(d) to revoke a proposed
§1.988-7 election for taxable years ending
on or after December 19, 2017, subject to
a consistency requirement. 82 FR 60135,
60141.
Explanation of Provisions
I. Proposed Modification to §1.954-2(g)
(3)(ii) and Withdrawal and Re-Proposal
of Proposed §1.954-2(g)(3)(iii) and (g)
(4)(iii)
The Treasury Department and the IRS
have received several inquiries regarding
the procedure for making §1.954-2(g)
elections. Specifically, practitioners have
noted that the language of §1.954-2(g)
(3)(ii) is inconsistent with other filing
requirements with respect to CFCs, which
generally must be filed by U.S. sharehold-
ers for the taxable year of a CFC that ends
with or within the taxable year of the U.S.
shareholders. See, e.g., §§1.964-1(c)(3)(ii)
and 1.951A-2(c)(7)(viii)(A)(1)(i). Addi-
tionally, the practitioners noted that under
§1.954-2(g)(3)(ii), inconsistencies in
treatment can arise between a controlling
U.S. shareholder that owns a CFC with a
matching taxable year and a controlling
U.S. shareholder that owns a CFC with a
short year or whose taxable year differs
from the controlling U.S. shareholder’s
taxable year. With respect to CFCs with
short years, a controlling U.S. shareholder
will be prevented from making §1.954-
2(g) elections for those years if no year of
the controlling U.S. shareholder ends with
or within the CFC’s short year.
To address the issues raised by prac-
titioners’ inquiries, and to promote con-
sistency with other filing requirements
with respect to CFCs, these proposed
regulations would revise §1.954-2(g)
(3)(ii) to provide that controlling U.S.
shareholders make a §1.954-2(g) election
on behalf of a CFC by filing a statement
with their original income tax returns for
the taxable years of the controlling U.S.
shareholders in which or with which the
taxable year of the CFC for which the
election is made ends, clearly indicating
that the election has been made. Addition-
ally, these proposed regulations withdraw
proposed §1.954-2(g)(3)(iii) and (g)(4)
(iii) as included in the 2017 proposed reg-
ulations and re-propose them to provide
that controlling U.S. shareholders revoke
a §1.954-2(g) election on behalf of a CFC
by filing a statement with their original
income tax returns for the taxable years of
the controlling U.S. shareholders in which
or with which the taxable year of the CFC
for which the revocation is made ends,
clearly indicating that the §1.954-2(g)
election has been revoked.
Under newly proposed §1.954-2(g)(3)
(iii) and (g)(4)(iii), however, controlling
U.S. shareholders would be precluded
from revoking a §1.954-2(g) election
made on behalf of a CFC (including an
initial election) until the sixth taxable year
following the year in which the election
was made. Further, proposed §1.954-2(g)
(3)(iii) and (g)(4)(iii) would provide that
if a CFC’s controlling U.S. shareholders
revoke a §1.954-2(g) election, they may
not make a new §1.954-2(g) election on
behalf of the CFC until the sixth taxable
year following the year in which the pre-
vious election was revoked. This change
to the revocation rules under proposed
§1.954-2(g)(3)(iii) and (g)(4)(iii) would
limit taxpayers from opportunistically
making or revoking a §1.954-2(g) elec-
tion; for example, this change would limit
taxpayers’ ability to selectively recognize
certain foreign currency losses. The Trea-
sury Department and the IRS request com-
ments on this aspect of proposed §1.954-
2(g)(3)(iii) and (g)(4)(iii).
II. Proposed Amendments to Proposed
§1.988-7(c) and (d)
The Treasury Department and the IRS
are of the view that the rules for making
and revoking a proposed §1.988-7 elec-
tion under the 2017 proposed regulations
provided an excessive amount of flexibil-
ity. The 2017 proposed regulations would
have permitted a taxpayer to make a pro-
posed §1.988-7 election after the end of
the year to which the election would apply,
which would give the taxpayer the ability
to determine with certainty whether the
election would be beneficial for that year.
For example, and as one comment noted,
the ability to make and revoke an initial
election without restriction would provide
a one-time opportunity to selectively rec-
ognize foreign currency losses by making
an initial election for a particular year
after the taxpayer has determined that it
has net foreign currency losses on section
988 transactions for a taxable year and
then immediately revoking the election.

September 23, 2024 642 Bulletin No. 2024–39
Upon further consideration of the 2017
proposed regulations and the comments
received, the Treasury Department and
the IRS are of the view that the time for
making and revoking a proposed §1.988-7
election (permitting a taxpayer to use a
mark-to-market method of accounting
for section 988 gain or loss with respect
to section 988 transactions) should accord
with the time for making and revoking
an election under section 475(e) or (f)
(a “section 475 election”) (permitting a
dealer in commodities or a trader in secu-
rities or commodities to use the mark-to-
market method of accounting). The Trea-
sury Department and the IRS are of the
view that aligning proposed §1.988-7 with
the rules for making a section 475 election
will deter selectively recognizing losses.
The rules for making or revoking a section
475 election deter taxpayers from selec-
tively recognizing losses by requiring that
taxpayers generally make an election on
the tax return for the year immediately
preceding the year to which the election
applies, see section 5.03 of Rev. Proc.
99-17, 1999-1 C.B. 503, 504–505, and
then by requiring taxpayers to apply that
election to all subsequent years unless the
taxpayers obtain the consent of the Com-
missioner. See section 475(e)(3) and (f)
(3). The Treasury Department and the IRS
expect that implementing similar rules
for making a proposed §1.988-7 election
would also prevent selective recognition
of losses. The Treasury Department and
the IRS also expect that aligning the rules
for making a proposed §1.988-7 election
with the rules for making a section 475
election will foster compliance, espe-
cially for those taxpayers already making
a section 475 election, by providing the
same procedures for making or revoking
these elections to adopt a mark-to-market
method of accounting. As a result, these
proposed regulations would permit tax-
payers to make and revoke a proposed
§1.988-7 election under rules similar to
the rules for making and revoking a sec-
tion 475 election.
Proposed §1.988-7(d) would provide
that the election made pursuant to pro-
posed §1.988-7(c) is subject to rules sim-
ilar to those imposed on section 475 elec-
tions. The election would be effective for
the taxable year for which it is made and
all subsequent years. Proposed §1.988-
7(d) also would provide that a taxpayer
may revoke the election only with the con-
sent of the Commissioner.
To adopt a method of accounting as
described in proposed §1.988-7, a tax-
payer must receive the consent of the
Commissioner to implement that change
of accounting method in accordance with
the applicable administrative procedures
provided in the Internal Revenue Bulle-
tin. Section 446(e); §1.446-1(e)(2); see
also Rev. Proc. 2015-13, 2015-5 I.R.B.
419; Rev. Proc. 2024-1, 2024-1 I.R.B.
1. When these proposed regulations are
finalized, the Treasury Department and
the IRS expect to issue a revenue proce-
dure setting forth the terms and condi-
tions under which a change of method of
accounting with respect to the mark-to-
market method under §1.988-7 will be
granted. The Treasury Department and the
IRS anticipate that these terms and con-
ditions will address: whether this change
should be subject to a cutoff method
or another method requiring a section
481(a) adjustment; the appropriate cir-
cumstances under which a taxpayer must
establish a substantial business reason for
the change; whether there are appropriate
circumstances under which an automatic
change in method of accounting should be
permitted; and the extent to which these
terms and conditions should incorporate
or deviate from the terms and conditions
for changing a mark-to-market method of
accounting under section 475(e) or (f), see
section 24 of Rev. Proc. 2024-23.
The Treasury Department and the IRS
solicit comments regarding all aspects
of the rules for making and revoking the
proposed §1.988-7 election, including the
terms and conditions under which a change
of method of accounting with respect to the
mark-to-market method under §1.988-7
will be granted and whether to require that
related parties apply a proposed §1.988-7
election in a consistent manner, such as in
the case of a section 987 election under
proposed §1.987-1(g)(2) (88 FR 78134,
78164 –78165). Comments submitted pur-
suant to the 2017 proposed regulations
will also be considered.
III. Other Nonsubstantive Changes
These proposed regulations would
make nonsubstantive changes to §1.954-
2(g)(3)(ii) and re-proposed §1.954-2(g)
(3)(iii) and (g)(4)(iii). These changes
are intended to improve the clarity of
those regulations, including by updat-
ing the cross-references to the definition
of controlling U.S. shareholders from
“§1.964-1(c)(5)” to “§1.964-1(c)(5)(i)”
to more precisely reference the definition
with respect to CFCs and not other for-
eign corporations, and by providing that
a §1.954-2(g) election must be made on
a timely-filed, original Federal income
tax return for consistency with proposed
§1.988-7 elections.
IV. Applicability Dates
These proposed regulations generally
are proposed to apply to taxable years
ending on or after the date of publication
of the Treasury decision adopting these
rules as final regulations in the Federal
Register (the “finalization date”). See pro-
posed §§1.954-2(i)(3) and 1.988-7(e). The
remainder of this section of the preamble
discusses taxpayers’ ability to rely on the
proposed regulations and the treatment of
certain elections, or revocation of elec-
tions, made in earlier periods.
A. Section 954 regulations
For taxable years ending before the
finalization date, taxpayers may rely on
proposed §1.954-2(g)(3)(ii) and re-pro-
posed §1.954-2(g)(3)(iii) and (g)(4)(iii)
in making and revoking §1.954-2(g)
elections, provided that they consistently
apply proposed §1.954-2(g)(3)(ii) and
(iii) and (g)(4)(iii) to such taxable years.
Furthermore, with respect to any taxpayer
that made a §1.954-2(g) election in the
manner set forth in proposed §1.954-2(g)
(3)(ii) of these proposed regulations for
a taxable year beginning after November
6, 1995 (as provided in TD 8618, 60 FR
46517, 46527), and ending before August
19, 2024, and any taxpayer that revoked
a §1.954-2(g) election in the manner set
forth in proposed §1.954-2(g)(3)(iii) or (g)
(4)(iii) of these proposed regulations for a
taxable year ending on or after December
19, 2017, and before August 19, 2024, the
IRS will respect such election or revoca-
tion as having been timely made for the
relevant taxable year. Taxpayers may no
longer rely on proposed §1.954-2(g)(3)

Bulletin No. 2024–39 643 September 23, 2024
(iii) and (g)(4)(iii) included in the 2017
proposed regulations for taxable years
ending after August 19, 2024.
B. Section 988 regulations
For taxable years ending before the
finalization date, taxpayers may rely on
proposed §1.988-7(c) and (d) in making
and revoking the proposed §1.988-7 elec-
tion, provided that they consistently apply
proposed §1.988-7(c) and (d) to such
taxable years. Furthermore, if a taxpayer
made or revoked a proposed §1.988-7
election on behalf of a CFC pursuant to the
reliance provided by 82 FR 60135, 60141,
but filed the election or revocation in the
manner set forth in proposed §1.988-7(c)
(3)(ii), the IRS will respect such election
or revocation as having been timely made
for the relevant taxable year. However,
as of August 19, 2024, taxpayers may no
longer rely on proposed §1.988-7(c) and
(d) included in the 2017 proposed regula-
tions, except to make elections for taxable
years beginning on or before August 19,
2024.
Special Analyses
I. Regulatory Planning and Review –
Economic Analysis
Pursuant to the Memorandum of
Agreement, Review of Treasury Regula-
tions under Executive Order 12866 (June
9, 2023), tax regulatory actions issued by
the IRS are not subject to the requirements
of section 6 of Executive Order 12866, as
amended. Therefore, a regulatory impact
assessment is not required.
II. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501–3520) (‘‘PRA’’) gener-
ally requires that a Federal agency obtain
the approval of the Office of Management
and Budget (“OMB”) before collecting
information from the public, whether the
collection of information is mandatory,
voluntary, or required to obtain or retain
a benefit. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control number
assigned by the OMB.
The collections of information included
in these proposed regulations are in pro-
posed §1.954-2(g)(3)(ii) and (iii) and (g)
(4)(iii) and proposed §1.988-7(c). The
information provided will generally be
used by the IRS for tax compliance pur-
poses or by taxpayers to report making or
revoking elections.
The collection of information in these
proposed regulations is for taxpayers to
make or revoke an election as detailed
in proposed §1.954-2(g)(3)(ii) and (iii)
and (g)(4)(iii) and proposed §1.988-7(c).
Taxpayers must inform the IRS of these
elections and revocations by attaching a
statement to their tax return. The infor-
mation is required to be provided by
taxpayers that are U.S. shareholders of
CFCs and shareholders of certain for-
eign corporations that make or revoke an
election with respect to the treatment of
a foreign corporation’s foreign currency
gains and losses. The likely respondents
are individual, business, and trust and
estate filers.
For purposes of the PRA, the report-
ing and recordkeeping burden associated
with the collections of information in pro-
posed §1.954-2(g)(3)(ii) and (iii) and (g)
(4)(iii) and proposed §1.988-7(c) will be
accounted for in OMB control number
1545-0074 for individual filers and 1545-
0123 for business filers.
The IRS will seek OMB approval
under a new OMB Control Number (1545-
NEW) for trust and estate filers.
Estimated total annual reporting and
recordkeeping burden for trusts and
estates filers: 61 hours.
Estimated average annual burden per
respondent: 1 hour.
Estimated number of respondents: 61.
Estimated frequency of responses: one-
time election or revocation.
The collections of information contained
in these proposed regulations have been
submitted to OMB for review in accor-
dance with the PRA. Commenters are
strongly encouraged to submit public com-
ments electronically. Written comments
and recommendations for the proposed
information collection should be sent to
www.reginfo.gov/public/do/PRAMain,
with copies to the IRS. Find this partic-
ular information collection by selecting
“Currently under Review - Open for Pub-
lic Comments,” then by using the search
function. Submit electronic submissions
for the proposed information collection
to the IRS via email at pra.comments@
irs.gov (indicate REG-111629-23 on the
Subject line). Comments on the collection
of information should be received by Sep-
tember 19, 2024. Comments are specifi-
cally requested concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the IRS,
including whether the information will
have practical utility; the accuracy of the
estimated burden associated with the pro-
posed collection of information; how the
quality, utility, and clarity of the informa-
tion to be collected may be enhanced; how
the burden of complying with the pro-
posed collection of information may be
minimized, including through the appli-
cation of automated collection techniques
or other forms of information technology;
and estimates of capital or start-up costs
and costs of operation, maintenance, and
purchase of services to provide informa-
tion.
III. Regulatory Flexibility Act
Pursuant to the Regulatory Flexibil-
ity Act (5 U.S.C. chapter 6) (“RFA”), it
is hereby certified that these proposed
regulations would not have a significant
economic impact on a substantial num-
ber of small entities within the meaning
of section 601(6) of the RFA (“small
entities”).
Generally, the proposed regulations
affect certain U.S. taxpayers that have
foreign operations. Specifically, the pro-
posed regulations affect U.S. sharehold-
ers that make or revoke certain elections
with respect to the computation of their
CFCs’ foreign currency gains and losses.
The number of small entities potentially
affected by the proposed regulations is
unknown and cannot be reliably esti-
mated; however, it is unlikely to be a sub-
stantial number because taxpayers with
foreign operations are typically larger
businesses. Due to the low expected num-
ber of potentially affected taxpayers, and
the fact that the proposed regulations only
amend the timing of these elections and
revocations that taxpayers may already
be making, the Treasury Department and
the IRS believe the proposed regulations

September 23, 2024 644 Bulletin No. 2024–39
should not materially impact a substantial
number of small entities within the mean-
ing of the RFA.
Accordingly, the Secretary certifies that
the proposed regulations will not have a
significant economic impact on a substan-
tial number of small entities, and a regu-
latory flexibility analysis is not required.
IV. Section 7805(f)
Pursuant to section 7805(f), these pro-
posed regulations have been submitted to
the Chief Counsel for Advocacy of the
Small Business Administration for com-
ment on their impact on small businesses.
The Treasury Department and the IRS
also request comments from the public
on the analysis in part III of the Special
Analyses.
V. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires that
agencies assess anticipated costs and ben-
efits and take certain other actions before
issuing a final rule that includes any Fed-
eral mandate that may result in expendi-
tures in any one year by a State, local, or
Tribal government, in the aggregate, or by
the private sector, of $100 million in 1995
dollars, updated annually for inflation.
This proposed rule does not include any
Federal mandate that may result in expen-
ditures by State, local, or Tribal govern-
ments, or by the private sector in excess of
that threshold.
VI. Executive Order 13132: Federalism
Executive Order 13132 (entitled
“Federalism”) prohibits an agency from
publishing any rule that has federalism
implications if the rule either imposes
substantial, direct compliance costs on
State and local governments, and is not
required by statute, or preempts State
law, unless the agency meets the con-
sultation and funding requirements of
section 6 of the Executive order. These
proposed regulations do not have fed-
eralism implications and do not impose
substantial direct compliance costs on
State and local governments or preempt
State law within the meaning of the
Executive order.
Comments and Requests for Public
Hearing
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
section. The Treasury Department and
the IRS request comments on all aspects
of these proposed regulations, including
the procedures for making and revoking
a proposed §1.988-7 election. Any com-
ments submitted will be made available at
www.regulations.gov or upon request.
A public hearing will be scheduled
if requested in writing by any person
who timely submits written comments.
Requests for a public hearing are also
encouraged to be made electronically. If a
public hearing is scheduled, notice of the
date and time for the public hearing will
be published in the Federal Register.
Drafting Information
The principal authors of these regula-
tions are Edward Tracy and Shane Ward
of the Office of Associate Chief Counsel
(International). However, other personnel
from the Treasury Department and the
IRS participated in their development.
Statement of Availability of IRS
Documents
IRS Revenue Procedures, Revenue
Rulings, Notices, and other guidance
cited in this document are published in the
Internal Revenue Bulletin or Cumulative
Bulletin and are available from the Super-
intendent of Documents, U.S. Govern-
ment Publishing Office, Washington, DC
20402, or by visiting the IRS website at
www.irs.gov.
Partial Withdrawal of Proposed
Regulations
Under the authority of 26 U.S.C. 7805:
(1) proposed §1.954-2(g)(3)(iii) and (g)(4)
(iii), contained in the notice of proposed
rulemaking that was published in the Fed-
eral Register on December 19, 2017 (82
FR 60135), are withdrawn for taxable
years ending after August 19, 2024; (2)
proposed §1.988-7(d) and (e), contained
in the notice of proposed rulemaking that
was published in the Federal Register on
December 19, 2017 (82 FR 60135), are
withdrawn as of August 19, 2024; and
(3) proposed §1.988-7(c) contained in
the notice of proposed rulemaking that
was published in the Federal Register on
December 19, 2017 (82 FR 60135), is
withdrawn for taxable years beginning
after August 19, 2024.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 1 as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation
for part 1 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.954-2 is amended by:
1. Revising the first sentence of para-
graph (g)(3)(ii) introductory text;
2. Revising paragraphs (g)(3)(iii) and
(g)(4)(iii); and
3. Adding two sentences to the end of
paragraph (i)(3).
The revisions and additions read as fol-
lows:
§1.954-2 Foreign personal holding
company income.
* * * * *
(g) * * *
(3) * * *
(ii) * * * The controlling United States
shareholders, as defined in §1.964-1(c)
(5)(i), make the election on behalf of the
controlled foreign corporation by filing a
statement with their timely-filed, original
Federal income tax returns for the taxable
year of the United States shareholders
in which or with which the taxable year
of the controlled foreign corporation for
which the election is made ends, clearly
indicating that the election has been made.
* * *

Bulletin No. 2024–39 645 September 23, 2024
(iii) Revocation of election. An election
under this paragraph (g)(3) is effective for
the taxable year of the controlled foreign
corporation for which it is made and all
subsequent taxable years of such corpora-
tion unless revoked by the Commissioner
or as provided in this paragraph (g)(3)(iii)
by the controlling United States share-
holders (as defined in §1.964-1(c)(5)(i)) of
the controlled foreign corporation. Once
made, an election under this paragraph (g)
(3) cannot be revoked by the controlled
foreign corporation’s controlling United
States shareholders (as defined in §1.964-
1(c)(5)(i)) until the sixth taxable year
following the year in which the previous
election was made. Further, if an election
has been revoked under this paragraph (g)
(3)(iii), a new election may not be made
until the sixth taxable year following the
year in which the previous election was
revoked. The controlling United States
shareholders revoke an election on behalf
of a controlled foreign corporation by fil-
ing a statement that clearly indicates such
election has been revoked with their origi-
nal or amended income tax returns for the
taxable year of such United States share-
holders in which or with which the taxable
year of the controlled foreign corporation
for which the election is revoked ends.
* * * * *
(4) * * *
(iii) Revocation of election. An election
under this paragraph (g)(4) is effective for
the taxable year of the controlled foreign
corporation for which it is made and all
subsequent taxable years of such corpora-
tion unless revoked by the Commissioner
or as provided in this paragraph (g)(4)(iii)
by the controlling United States share-
holders (as defined in §1.964-1(c)(5)(i)) of
the controlled foreign corporation. Once
made, an election under this paragraph (g)
(4) cannot be revoked by the controlled
foreign corporation’s controlling United
States shareholders (as defined in §1.964-
1(c)(5)(i)) until the sixth taxable year
following the year in which the previous
election was made. Further, if an election
has been revoked under this paragraph (g)
(4)(iii), a new election may not be made
until the sixth taxable year following the
year in which the previous election was
revoked. The controlling United States
shareholders revoke an election on behalf
of a controlled foreign corporation by fil-
ing a statement that clearly indicates such
election has been revoked with their origi-
nal or amended income tax returns for the
taxable year of such United States share-
holders in which or with which the taxable
year of the controlled foreign corporation
for which the election is revoked ends.
* * * * *
(i) * * *
(3) * * * Paragraphs (g)(3)(ii) and (iii)
and (g)(4)(iii) of this section apply to
taxable years of controlled foreign cor-
porations ending on or after [DATE OF
PUBLICATION OF FINAL RULE]. For
taxable years of controlled foreign corpo-
rations ending before [DATE OF PUBLI-
CATION OF FINAL RULE], see §1.954-
2(g)(3)(ii) and (iii) and (g)(4)(iii) as in
effect and contained in 26 CFR part 1, as
revised April 1, 2024.
Par. 3. Section 1.988-7, as proposed to
be added at 82 FR 60143 (December 19,
2017), is amended by adding paragraphs
(c) through (e) to read as follows:
§1.988-7 Election to mark-to-market
foreign currency gain or loss on section
988 transactions.
* * * * *
(c) Time and manner of election--(1) In
general. Except as otherwise provided in
this paragraph (c), a taxpayer makes the
election under paragraph (a) of this sec-
tion by filing a statement that clearly indi-
cates that the election has been made with
the taxpayer’s timely-filed (excluding
extensions) original Federal income tax
return for the taxable year immediately
preceding the year for which the election
is made, or if applicable, with a request for
an extension of time to file that return.
(2) New taxpayers. In the case of a tax-
payer for which no Federal income tax
return was required to be filed for the tax-
able year immediately preceding the year
for which the election is made, the tax-
payer makes the election under paragraph
(a) of this section by preparing a statement
that clearly indicates the election has been
made and:
(i) Placing the statement in the taxpay-
er’s books and records by no later than 2
months and 15 days after the first day of
the year for which the election is made;
and
(ii) Filing the statement with the tax-
payer’s original Federal income tax return
for the taxable year for which the election
is made.
(3) Elections on behalf of CFCs. In the
case of a controlled foreign corporation,
the controlling United States shareholders
(as defined in §1.964-1(c)(5)(i)) make the
election under paragraph (a) of this sec-
tion on behalf of the controlled foreign
corporation by preparing a statement that
clearly indicates the election has been
made and:
(i) Placing the statement in the con-
trolled foreign corporation’s books and
records by no later than 2 months and 15
days after the first day of the year of the
controlled foreign corporation for which
the election is made; and
(ii) Filing the statement with their orig-
inal Federal income tax returns for the
taxable year of the United States share-
holders in which or with which the taxable
year of the controlled foreign corporation
for which the election is made ends.
(d) Revocation. An election under para-
graph (a) of this section is effective for the
taxable year for which it is made and all
subsequent taxable years unless the elec-
tion is revoked with the consent of the
Commissioner.
(e) Applicability dates. This section
applies to taxable years of taxpayers end-
ing on or after [DATE OF PUBLICA-
TION OF FINAL RULE]. Paragraph (c)
(3) of this section applies to taxable years
of controlled foreign corporations ending
on or after [DATE OF PUBLICATION
OF FINAL RULE], and to taxable years
of United States shareholders in which or
with which the taxable years of those con-
trolled foreign corporations end.
Heather C. Maloy,
Acting Deputy Commissioner.
(Filed by the Office of the Federal Register August
19, 2024, 8:45 a.m., and published in the issue of the
Federal Register for August 20, 2024, 89 FR 67336)

Bulletin No. 2024–39 i September 23, 2024
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
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future 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 previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings 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
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.

September 23, 2024 ii Bulletin No. 2024–39
Numerical Finding List
1
Bulletin 2024–39
Announcements:
2024-26, 2024-27 I.R.B. 14
2024-27, 2024-27 I.R.B. 14
2024-28, 2024-28 I.R.B. 39
2024-29, 2024-29 I.R.B. 71
2024-31, 2024-34 I.R.B. 533
2024-32, 2024-35 I.R.B. 535
2024-30, 2024-36 I.R.B. 581
2024-39, 2024-39 I.R.B. 639
Notices:
2024-47, 2024-27 I.R.B. 1
2024-52, 2024-27 I.R.B. 2
2024-53, 2024-27 I.R.B. 4
2024-54, 2024-28 I.R.B. 24
2024-55, 2024-28 I.R.B. 31
2024-56, 2024-29 I.R.B. 64
2024-57, 2024-29 I.R.B. 67
2024-58, 2024-30 I.R.B. 120
2024-59, 2024-32 I.R.B. 348
2024-60, 2024-34 I.R.B. 515
2024-61, 2024-34 I.R.B. 520
2024-62, 2024-36 I.R.B. 570
2024-63, 2024-36 I.R.B. 573
2024-64, 2024-39 I.R.B. 632
2024-65, 2024-39 I.R.B. 633
Proposed Regulations:
REG-124593-23, 2024-28 I.R.B. 40
REG-109032-23, 2024-31 I.R.B. 332
REG-120137-19, 2024-31 I.R.B. 336
REG-119283-23, 2024-32 I.R.B. 351
REG-102161-23 2024-33 I.R.B. 502
REG-103529-23, 2024-33 I.R.B. 512
REG-105128-23, 2024-35 I.R.B. 536
REG-108920-24, 2024-38 I.R.B. 607
REG-111629-23, 2024-39 I.R.B. 640
Revenue Procedures:
2024-26, 2024-27 I.R.B. 7
2024-29, 2024-30 I.R.B. 121
2024-30, 2024-30 I.R.B. 183
2024-27, 2024-31 I.R.B. 300
2024-28, 2024-31 I.R.B. 326
2024-32, 2024-34 I.R.B. 523
2024-34, 2024-38 I.R.B. 604
2024-35, 2024-39 I.R.B. 638
Revenue Rulings:
2024-13, 2024-28 I.R.B. 18
2024-14, 2024-28 I.R.B. 18
2024-15, 2024-32 I.R.B. 340
2024-16, 2024-35 I.R.B. 534
2024-17, 2024-36 I.R.B. 568
2024-18, 2024-37 I.R.B. 584
Treasury Decisions:
10002, 2024-29 I.R.B. 56
9999, 2024-30 I.R.B. 72
10000, 2024-31 I.R.B. 185
10003, 2024-32 I.R.B. 342
10001 2024-33 I.R.B. 412
10004 2024-33 I.R.B. 489
9998 2024-34 I.R.B. 412
10005 2024-34 I.R.B. 510
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2024–27 through 2024–52 is in Internal Revenue Bulletin
2024–52, dated December 30, 2024.

Bulletin No. 2024–39 iii September 23, 2024
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2024–39
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2024–27 through 2024–52 is in Internal Revenue Bulletin
2024–52, dated December 30, 2024.

Internal Revenue Service
Washington, DC 20224
Official Business
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