us-irs-revenue-rulings-irb-2016-14-pdf•Internal Revenue Bulletin 2016-14 (PDF rendition): IRS Revenue Rulings
Internal Revenue Bulletin 2016-14 (PDF rendition): IRS Revenue Rulings
us-irs-revenue-rulings-irb-2016-14-pdfInternal Revenue Bulletin 2016-14 (PDF rendition): IRS Revenue RulingsGuidance
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HIGHLIGHTS OF THIS ISSUE These synopses are intended only as aids to the reader in identifying the subject matter covered. They may not be relied upon as authoritative interpretations. SPECIAL ANNOUNCEMENT Notice 2016 –26, page 533. The Department of Treasury and Internal Revenue Service invite public comment on recommendations for items that should be included on the 2016 –2017 Priority Guidance Plan. INCOME TAX REG–109822–15, page 535. These proposed regulations provide guidance on the informa- tion required to be reported for country-by-country (CbC) re- porting. The proposed regulations generally require United States persons (other than individuals) that are the ultimate parent of a U.S. multinational enterprise (MNE) group earning annual revenues of $850,000,000 or more to report certain financial information on a tax jurisdiction-by-tax jurisdiction ba- sis. The regulations require the U.S. ultimate parent to list the U.S. MNE group’s business entities indicating each entity’s tax jurisdiction (if any), country of organization, tax identification number (if any), and main business activity, as well as CbC financial information for each tax jurisdiction in which the U.S. MNE does business. The CbC financial information includes income, profits, income taxes, stated capital, accumulated earnings, number of employees, and tangible assets other than cash. Rev. Rul. 2016 – 06, page 519. Interest rates: underpayment and overpayments. The rates for interest determined under section 6621 of the code for the calendar quarter beginning April 1, 2016, will be 4 percent for overpayments (3 percent in the case of a corporation), 4 percent for the underpayments, and 6 percent for large cor- poration underpayments. The rate of interest paid on the por- tion of a corporation overpayment exceeding $10,000 will be 1.5 percent. Rev. Rul. 2016 – 09, page 530. Federal rates; adjusted federal rates; adjusted federal long- term rate and the long-term exempt rate. For purposes of sections 382, 642, 1274, 1288, and other sections of the Code, tables set forth the rates for April 2016. Rev. Proc. 2016 –21, page 533. Guidance is provided to individuals who fail to meet the eligi- bility requirements of section 911(d)(1) of the Internal Revenue Code because adverse conditions in a foreign country preclude the individual from meeting those requirements. Revenue Pro- cedure 2016 –21 provides a country for tax year 2015 and the date that country is subject to the section 911(d)(4) waiver. EXEMPT ORGANIZATIONS T.D. 9746, page 515. This document contains final regulations regarding the distri- bution requirement for non-functionally integrated Type III sup- porting organizations. The regulations reflect changes to the law made by the Pension Protection Act of 2006. The regula- tions will affect non-functionally integrated Type III supporting organizations and their supported organizations. (Continued on the next page) Finding Lists begin on page ii. Bulletin No. 2016 –14 April 4, 2016 ADMINISTRATIVE Announcement 2016 –14, page 535. Announcement 2016 –14 informs taxpayers and practitioners that the IRS has revised Form 3115, Application for Change in Accounting Method, and its instructions. The Form 3115 (Rev. December 2015) replaces the December 2009 version. The announcement also provides a transition period and transition guidance. Notice 2016 –26, page 533. The Department of Treasury and Internal Revenue Service invite public comment on recommendations for items that should be included on the 2016 –2017 Priority Guidance Plan. The IRS Mission Provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and en- force the law with integrity and fairness to all. Introduction The Internal Revenue Bulletin is the authoritative instrument of the Commissioner of Internal Revenue for announcing official rulings and procedures of the Internal Revenue Service and for publishing Treasury Decisions, Executive Orders, Tax Conven- tions, legislation, court decisions, and other items of general interest. It is published weekly. It is the policy of the Service to publish in the Bulletin all substantive rulings necessary to promote a uniform application of the tax laws, including all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin. All published rulings apply retroactively unless other- wise indicated. Procedures relating solely to matters of internal management are not published; however, statements of inter- nal practices and procedures that affect the rights and duties of taxpayers are published. Revenue rulings represent the conclusions of the Service on the application of the law to the pivotal facts stated in the revenue ruling. In those based on positions taken in rulings to taxpayers or technical advice to Service field offices, identify- ing details and information of a confidential nature are deleted to prevent unwarranted invasions of privacy and to comply with statutory requirements. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. Unpublished rulings will not be relied on, used, or cited as precedents by Service personnel in the disposition of other cases. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered, and Service personnel and others concerned are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is divided into four parts as follows: Part I.—1986 Code. This part includes rulings and decisions based on provisions of the Internal Revenue Code of 1986. Part II.—Treaties and Tax Legislation. This part is divided into two subparts as follows: Subpart A, Tax Conventions and Other Related Items, and Subpart B, Legisla- tion and Related Committee Reports. Part III.—Administrative, Procedural, and Miscellaneous. To the extent practicable, pertinent cross references to these subjects are contained in the other Parts and Subparts. Also included in this part are Bank Secrecy Act Administrative Rul- ings. Bank Secrecy Act Administrative Rulings are issued by the Department of the Treasury’s Office of the Assistant Sec- retary (Enforcement). Part IV.—Items of General Interest. This part includes notices of proposed rulemakings, disbar- ment and suspension lists, and announcements. The last Bulletin for each month includes a cumulative index for the matters published during the preceding months. These monthly indexes are cumulated on a semiannual basis, and are published in the last Bulletin of each semiannual period. The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate. April 4, 2016Bulletin No. 2016 –14 Part I. Rulings and Decisions Under the Internal Revenue Code of 1986 T.D. 9746 DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 1 Payout Requirements for Type III Supporting Organizations That Are Not Functionally Integrated AGENCY:Internal Revenue Service (IRS), Treasury. ACTION: Final regulations and removal of temporary regulations. SUMMARY: This document contains fi- nal regulations regarding the distribution requirement for non-functionally inte- grated Type III supporting organizations. The regulations reflect changes to the law made by the Pension Protection Act of 2006. The regulations will affect non- functionally integrated Type III support- ing organizations and their supported organizations. DATES:Effective Date: These regula- tions are effective on December 21, 2015. FOR FURTHER INFORMATION CONTACT: Jonathan Carter at (202) 317- 4394 or Mike Repass at (202) 317-6176 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background 1. Overview This document contains amendments to the Income Tax Regulations (26 CFR part 1) regarding organizations described in section 509(a)(3) of the Internal Reve- nue Code (Code). An organization de- scribed in section 501(c)(3) is classified as either a private foundation or a public charity. To be classified as a public char- ity, an organization must be described in section 509(a)(1), (2), or (3). Organiza- tions described in section 509(a)(3) are known as “supporting organizations.” Supporting organizations achieve their public charity status by supporting one or more organizations described in section 509(a)(1) or (2), which in this context are referred to as “supported organizations.” To be described in section 509(a)(3), an organization must satisfy (1) an orga- nizational test, (2) an operational test, (3) a relationship test, and (4) a disqualified person control test. The organizational and operational tests require that a sup- porting organization be organized and at all times thereafter operated exclusively for the benefit of, to perform the functions of, or to carry out the purposes of one or more supported organizations. The rela- tionship test requires a supporting organi- zation to establish one of three types of relationships with one or more supported organizations. Finally, the disqualified per- son control test requires that a supporting organization not be controlled directly or indirectly by certain disqualified persons. Each of the described tests is a neces- sary requirement for an organization to establish that it qualifies as a supporting organization. These final regulations, however, focus primarily on the relation- ship test for supporting organizations that are “operated in connection with” their supporting organization(s), other- wise known as “Type III” supporting or- ganizations. Specifically, the final regula- tions reflect statutory changes enacted by the Pension Protection Act of 2006, P.L. 109–280 (120 Stat. 780 (2006) (PPA)). Section 1241(d)(1) of the PPA directed the Secretary of the Treasury to promul- gate regulations under section 509 that establish a new distribution requirement for Type III supporting organizations that are not “functionally integrated” to ensure that a “significant amount” is paid to sup- ported organizations. For this purpose, the term “functionally integrated” means a Type III supporting organization that is not required under Treasury regulations to make payments to supported organiza- tions because the supporting organization engages in activities that relate to per- forming the functions of, or carrying out the purposes of, its supported organiza- tion(s). These final regulations address the amount that a Type III supporting organi- zation that is not functionally integrated (a non-functionally integrated (NFI) Type III supporting organization) must annually distribute to its supported organization(s). 2. Prior Rulemaking On August 2, 2007, the Treasury Depart- ment and the IRS published in theFederal Register(72 FR 42335) an advance notice of proposed rulemaking (ANPRM) (REG– 155929–06) in response to the PPA. The ANPRM described proposed rules to imple- ment the changes made by the PPA to the Type III supporting organization require- ments and solicited comments regarding those proposed rules. On September 24, 2009, the Treasury Department and the IRS published in the Federal Register(74 FR 48672) a notice of proposed rulemaking (the 2009 NPRM) (REG–155929–06). The 2009 NPRM contained proposed regulations (the 2009 proposed regulations) setting forth the re- quirements to qualify as a Type III sup- porting organization under the PPA. On December 28, 2012, the Treasury Department and the IRS published in the Federal Register(77 FR 76382) a Trea- sury decision (TD 9605) containing final and temporary regulations (the 2012 TD) regarding the requirements to qualify as a Type III supporting organization. Based on the comments received, the 2012 TD made certain changes to the rules pro- posed in the 2009 NPRM, included in the temporary regulations significant changes to the distribution requirement, and re- served certain topics for further consider- ation. The 2012 TD was effective and applicable on December 28, 2012. The applicability of the temporary regulations expires on or before December 21, 2015. On December 28, 2012, the Treasury De- partment and the IRS also published in the Federal Register(77 FR 76426) a notice of proposed rulemaking (the 2012 NPRM) (REG–155929–06) that incorporated the text of the temporary regulations in the 2012 TD by cross-reference. The IRS re- ceived five comments on the 2012 NPRM. The comments were considered in devel- Bulletin No. 2016 –14April 4, 2016 515 oping these final regulations and are avail- able for public inspection atwww.regula- tions.govor upon request. No public hearing was requested. Under the 2012 TD, an NFI Type III supporting organization must annually distribute to or for the use of one or more supported organizations an amount equal- ing or exceeding the supporting organiza- tion’s “distributable amount” for the tax- able year. See § 1.509(a)–4(i)(5)(ii). The temporary regulations contained in the 2012 TD defined an NFI Type III support- ing organization’s “distributable amount” as equal to the greater of (1) 85 percent of the supportingorganization’s adjusted net income or (2) its “minimum asset amount,” in each case for the immediately preceding taxable year. The temporary regulations de- fined “minimum asset amount” as 3.5 per- cent of the excess of the aggregate fair mar- ket value of the supporting organization’s non-exempt-use assets over the acquisition indebtedness with respect to such nonex- empt use assets. Additionally, the temporary regulations provided that the determination of the aggregate fair market value of an NFI Type III supporting organization’s non- exempt-use assets would be made using the valuation methods generally applicable to pri- vate foundations under § 53.4942(a)–2(c). The temporary regulations also provided that, consistent with the private foundation rules, the “non-exempt use” assets of a supporting organization do not include certain investment assets described in § 53.4942(a)–2(c)(2) or assets used (or held for use) to carry out the exempt pur- poses of the supported organization(s) (as determined by applying the principles de- scribed in § 53.4942(a)–2(c)(3)). After consideration of all the com- ments received in response to the 2012 NPRM, this Treasury decision adopts the 2012 NPRM without change, except to (1) conform the provision regarding the val- uation of non-exempt-use assets to the section 4942 regulation provision that it cross-references (§ 53.4942(a)–2(c)(2)), and (2) replace references in § 1.509(a)–4 to the temporary regulations with refer- ences to these final regulations. Thus, other than the change conforming the pro- vision in the final regulations regarding the valuation of non-exempt-use assets to the provision in the section 4942 regula- tions, these final regulations are the same as the temporary regulations that have been applicable to Type III supporting organizations since December 28, 2012. Additionally, this Treasury decision re- moves the temporary regulations. The Treasury Department and the IRS intend to publish a notice of proposed rulemaking for Type III supporting orga- nizations in the near future. Among other proposals, the new proposed regulations would make one change to these final regulations. Specifically, the new pro- posed regulations will propose removal of the provision in these final regulations that reduces the distributable amount by the amount of taxes subtitle A of the Code imposes on asupporting organization dur- ing the immediately preceding taxable year. In addition, the new proposed regulations will propose specific rules regarding the re- quirements for Type III supporting organi- zations that support governmental supported organizations to be treated as functionally integrated Type III supporting organiza- tions. In addition, the new proposed regula- tions would provide transition relief beyond the period provided in Notice 2014–4, 2014–2 IRB 274. Supporting organizations may continue to rely on the transitional rule described in Section 3.01 of Notice 2014–4 until the date that the notice of proposed rulemaking prescribing the new proposed regulations under § 1.509(a)–4(i)(4)(iv) is published in the Federal Register. In the notice of proposed rulemaking publishing the new proposed regulations, the Treasury Department and the IRS will request com- ments on all proposed changes. Explanation of Provisions and Summary of Comments This section discusses the comments received in response to the 2012 NPRM. 1.Distributable Amount The PPA directed the promulgation of Treasury regulations requiring NFI Type III supporting organizations to make dis- tributions of a percentage of either income or assets to their supported organizations to ensure that a significant amount is paid to those supported organizations. Under the Treasury regulations in effect when PPA was enacted, certain Type III sup- porting organizations were required to distribute “substantially all” of their in- come to one or more publicly supported organizations. For this purpose, “substan- tially all” had the same meaning of 85 per- cent or more that it had in § 53.4942(b)–1(c) (defining “substantially all” for purposes of the income test for private operating foun- dations).SeeRev. Rul. 76–208, 1976–1 C.B. 161. The 2009 NPRM had proposed to re- place the income-based distribution re- quirement with an asset-based distribution requirement of 5 percent of the fair market value of an organization’s non-exempt- use assets. In response to comments, the 2012 NPRM instead proposed to keep the historic income-based distribution re- quirement, and proposed to combine it with a reduced percentage-of-assets distri- bution requirement. Therefore, the tempo- rary and proposed distributable amount for NFI Type III supporting organizations was the greater of 85 percent of adjusted net income or 3.5 percent of the net fair market value of non-exempt-use assets, in each case as determined for the immedi- ately preceding taxable year. One commenter stated that a distribu- tion requirement based on 3.5 percent of assets is sufficient to achieve the goals of Congress and that the distribution require- ment based on 85 percent of income should be removed. The commenter stated that a distribution requirement based on income would prevent a supporting orga- nization from smoothing its returns in high-earning years with low-earning years, and could result in organizations shifting investments away from income- producing assets toward appreciating as- sets to avoid erosion of an endowment even if that investment strategy results in forgoing higher returns. The commenter also said that having two tests increases administrative costs for a supporting or- ganization by requiring it to make two calculations rather than one to determine its distributable amount, thus reducing the amount distributed for true charitable pur- poses. Another commenter suggested that organizations that were not previously iden- tified as avoiding the prior substantially-all- of-income distribution requirement should be exempted from the asset-based distribu- tion requirement because it potentially harms entities that are invested primarily in non-liquid assets. April 4, 2016Bulletin No. 2016 –14 516 The Treasury Department and the IRS believe that a distribution requirement equal to the greater of 85 percent of ad- justed net income or 3.5 percent of the net fair market value of an organization’s non-exempt-use assets strikes an appro- priate balance. It ensures that NFI Type III supporting organizations distribute signif- icant amounts to their supported organiza- tions, as Congress directed in the PPA. Further, the 85 percent of income test will make it more likely that supported orga- nizations will timely benefit from higher returns received by their supporting orga- nizations. Conversely, in years with lower returns or for organizations that invest in assets that produce largely appreciation rather than income, a 3.5-percent of assets distribution requirement will apply, which is less than the 5-percent of assets distri- bution requirement that applies to private non-operating foundations. With respect to the suggestion that certain organiza- tions be permitted to comply only with the income-based distribution requirement, the Treasury Department and the IRS be- lieve it would be inequitable and admin- istratively difficult to apply one require- ment to some NFI Type III supporting organizations but another requirement to others. Therefore, the final regulations adopt the annual distributable amount rule of the 2012 NPRM without changes. 2.Income from Distributions from Subsidiary The 2012 NPRM provided that, for purposes of the calculation of the annual distributable amount, a supporting organi- zation’s adjusted net income would be determined using the principles of section 4942(f) and § 53.4942(a)–2(d). These pro- visions apply the principles of subtitle A of the Code. One commenter requested that the def- inition of adjusted net income exclude dividend income resulting from a distribu- tion of long-term capital gain property to a supporting organization by a corporate subsidiary. The commenter noted that without this exclusion, the receipt of dis- tributed property could result in a much higher distribution requirement for that one year, but without producing any liquid assets to satisfy the higher distribution requirement. The 2012 NPRM provided that ad- justed net income be determined by ap- plying the principles that apply in calcu- lating the adjusted net income of private operating foundations under sections 4942(d) and 4942(j)(3) and are generally based on long-standing principles under subtitle A of the Code. The Treasury De- partment and the IRS believe that the rules for calculating adjusted net income should be applied consistently for all taxpayers and do not believe that there is a justifi- cation for the rules to be altered solely for supporting organizations. Therefore, the final regulations do not adopt this com- ment. 3.Real Property Valuations The 2012NPRM provided that for pur- poses of determining the distributable amount for a taxable year, non-exempt-use assets would be valued using the principles generally applicable to private foundations under § 53.4942(a)–2(c). One commenter suggested allowing the use of state property tax valuations for purposes of valuing real property under § 53.4942(a)–2(c). Section 53.4942(a)–2(c) applies the principles of regulations under section 2031, which generally apply for estate tax purposes, to the valuation of real property. Section 20.2031–1(b) provides that the value at which property is assessed for local tax purposes may be considered only if that value represents the fair market value as of the valuation date. Section 20.2031–3 further provides that if real property is leased or otherwise used in a business, special valuation rules may apply. The Treasury Department and the IRS continue to believe that the same valuation principles that apply to private foundations should apply to NFI Type III supporting organizations. Therefore, the final regulations do not adopt this comment. Effective Date These regulations are effective on De- cember 21, 2015. Statement of Availability of IRS Documents The IRS Notice 2014–4 cited in this preamble is published in the Internal Rev- enue Bulletin and is available from the Superintendent of Documents, U.S. Gov- ernment Printing Office, Washington, DC 20402, or by visiting the IRS Web site at http://www.irs.gov. Special Analyses Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory impact assessment is not required. It has also been deter- mined that section 553(b) of the Admin- istrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because these regulations do not impose a collection of information on small entities, a Regulatory Flexibility Analysis under the Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to section 7805(f) of the Code, the temporary and proposed regulations preceding these final regulations were submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on their impact on small business, and no comments were received. Drafting Information The principal authors of these regula- tions are Mike Repass and Jonathan Carter, Office of Associate Chief Counsel (Tax-Exempt and Government Entities). However, other personnel from the Trea- sury Department and the IRS participated in their development. List of Subjects in 26 CFR Part 1 Income taxes, Reporting and record- keeping requirements. Adoption of Amendments to the Regulations Accordingly, 26 CFR part 1 is amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 continues to read in part as follows: Bulletin No. 2016 –14April 4, 2016 517 Authority: 26 U.S.C. 7805*** Par. 2. Section 1.509(a)–4 is amended by: 1. Amending the second sentence of para- graph(i)(4)(ii)(C) to remove the lan- guage “§ 1.509(a)–4T(i)(8)(ii)” and add- ing “paragraph (i)(8)(ii) of this section” in its place. 2. Amending paragraph (i)(5)(ii)(A) to remove the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 3. Revising paragraph (i)(5)(ii)(B). 4. Revising paragraph (i)(5)(ii)(C). 5. Amending the last sentence of para- graph (i)(5)(ii)(D) to remove the lan- guage “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 6. Amending the first sentence ofExam- ple 1of paragraph (i)(5)(iii)(D) to re- move the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 7. Amending the first sentence ofExam- ple 2of paragraph (i)(5)(iii)(D) to re- move the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 8. Amending the third sentence ofExam- ple 3of paragraph (i)(5)(iii)(D) to re- move the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 9. Amending thefourth sentence ofExam- ple 4of paragraph (i)(5)(iii)(D) to re- move the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 10. Amendingparagraph (i)(6)(iv) to re- move the language “§ 1.509(a)– 4T(i)(8)(ii)” andadding “paragraph (i)(8)(ii) of this section” in its place. 11. Amending paragraph (i)(7)(ii) to re- move the language “§ 1.509(a)– 4T(i)(5)(ii)(B)” and adding “paragraph (i)(5)(ii)(B) of this section” in its place. 12. Revising paragraph (i)(8). 13. Revising paragraph (l). The revisions and additions read as fol- lows: § 1.509(a)– 4 Supporting organizations. ***** (i)*** (5)*** (ii)*** (B)Distributable amount. Except as provided in paragraphs (i)(5)(ii)(D) and (E) of this section, the distributable amount for a taxable year is an amount equal to the greater of 85 percent of the supporting organization’s adjusted net in- come (as determined by applying the principles of section 4942(f) and § 53.4942(a)–2(d) of this chapter) for the taxable year immediately preceding the taxable year of the required distribution (immediately preceding taxable year) or its minimum asset amount (as defined in paragraph (i)(5)(ii)(C) of this section) for the immediately preceding taxable year, reduced by theamount of taxes imposed on the supporting organization under subtitle A of the Internal Revenue Code during the immediately preceding taxable year. (C)Minimum asset amount. For pur- poses of this paragraph (i)(5), a supporting organization’s minimum asset amount for the immediately preceding taxable year is 3.5 percent of the excess of the aggregate fair market value of all of the supporting organization’s non-exempt-use assets (de- termined under paragraph (i)(8) of this section) in that immediately preceding taxable year over the acquisition indebt- edness with respect to such non-exempt- use assets (determined under section 514(c)(1) without regard to the taxable year in which the indebtedness was in- curred), increased by— (1) Amounts received or accrued dur- ing the immediately preceding taxable year as repayments of amounts which were taken into account by the organiza- tion to meet the distribution requirement imposed in this paragraph (i)(5)(ii) for any taxable year; (2) Amounts received or accrued dur- ing the immediately preceding taxable year from the sale or other disposition of property to the extent that the acquisition of such property was taken into account by the organization to meet the distribu- tion requirement imposed in this para- graph (i)(5)(ii) for any taxable year; and (3) Any amount set aside under para- graph (i)(6)(v) of this section to the extent it is determined during the immediately preceding taxable year that such amount is not necessary for the purposes for which it was set aside and such amount was taken into account by the organization to meet the distribution requirement imposed in this paragraph (i)(5)(ii) for any taxable year. ***** (8)Valuation of non-exempt-use as- sets. For purposes of determining its dis- tributable amount for a taxable year, a supporting organization determines its minimum asset amount, as defined in paragraph (i)(5)(ii)(C) of this section, by determining the aggregate fair market value of all of its non-exempt-use assets in the immediately preceding taxable year. For these purposes, the determination of the aggregate fair market value of all non- exempt-use assets shall be made using the valuation methods described in § 53.4942(a)–2(c) of this chapter. The ag- gregate fair market value of the support- ing organization’s non-exempt-use assets shall not be reduced by any amount that is set aside under paragraph (i)(6)(v) of this section. For these purposes, the non- exempt use assets of the supporting orga- nization are all assets of the supporting organization other than— (i) Assets described in § 53.4942(a)– 2(c)(2)(i) through (iv) of this chapter (with the term “supporting organization” being substituted for “foundation” or “pri- vate foundation” and the date “August 17, 2006” being substituted for “December 31, 1969”); and (ii) Exempt-use assets, which are assets that are used (or held for use) directly in carrying out the exempt purposes of the supporting organization’s supported orga- nization(s) (determined by applying the principles described in § 53.4942(a)– 2(c)(3) of this chapter) by either— (A) The supporting organization; or (B) One or more supported organiza- tions, but only if the supporting organiza- tion makes the asset available to the sup- ported organization(s) at no cost (or nominal rent) to the supported organiza- tion(s). ***** (l)Effective/applicability dates. Para- graphs (a)(6), (f)(5), (i)(1) through (i)(4)(ii)(B), (i)(4)(ii)(D) through (i)(5)(i), (i)(5)(ii)(E) through (i)(5)(iii)(C), (i)(6)(i) through (iii), (i)(6)(v) through (i)(7)(i), and (i)(9) through (11) of this section are applicable on December 28, 2012. Para- graphs (i)(4)(ii)(C), (i)(5)(ii)(A) through (i)(5)(ii)(D), (i)(5)(iii)(D), (i)(6)(iv), April 4, 2016Bulletin No. 2016 –14 518 (i)(7)(ii) and (i)(8) of this section are ap- plicable on December 21, 2015. See para- graphs (i)(5)(ii)(B), (i)(5)(ii)(C), and (i)(8) of § 1.509(a)–4T contained in 26 CFR part 1, revised as of April 1, 2015, for certain rules regarding non- functionally integrated Type III support- ing organizations effective before Decem- ber 21, 2015. ***** Section 1.509(a)–4T [Removed]. Par. 3. Section 1.509(a)–4T is removed. John Dalrymple Deputy Commissioner for Services and Enforcement. Approved: December 14, 2015. Mark J. Mazur Assistant Secretary of the Treasury (Tax Policy). (Filed by the Office of the Federal Register on December 21, 2015, 4:15 p.m., and published in the issue of the Federal Register for December 23, 2015, 80 F.R. 79684) Section 6621.— Determination of Rate of Interest 26 CFR 301.6621–1: Interest rate. Rev. Rul. 2016 – 06 Rev. Rul. 2016–06 Section 6621 of the Internal Revenue Code establishes the interest rates on overpayments and underpayments of tax. Under section 6621(a)(1), the overpay- ment rate is the sum of the federal short- term rate plus 3 percentage points (2 per- centage points in the case of a corporation), except the rate for the por- tion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the sum of the federal short-term rate plus 0.5 of a percentage point. Under section 6621(a)(2), the underpayment rate is the sum of the federal short-term rate plus 3 percentage points. Section 6621(c) provides that for pur- poses of interest payable under section 6601 on any large corporate underpay- ment, the underpayment rate under section 6621(a)(2) is determined by substituting “5 percentage points” for “3 percentage points.” See section 6621(c) and section 301.6621–3 of the Regulations on Proce- dure and Administration for the definition of a large corporate underpayment and for the rules for determining the applicable date. Section 6621(c) and section 301.6621–3 are generally effective for pe- riods after December 31, 1990. Section 6621(b)(1) provides that the Secretary will determine the federal short- term rate for the first month in each cal- endar quarter. Section 6621(b)(2)(A) pro- vides that the federal short-term rate determined under section 6621(b)(1) for any month applies during the first calen- dar quarter beginning after that month. Section 6621(b)(2)(B) provides that in de- termining the addition to tax under section 6654 for failure to pay estimated tax for any taxable year, the federal short-term rate that applies during the third month following the taxable year also applies during the first 15 days of the 4th month following the taxable year. Section 6621(b)(3) provides that the federal short- term rate for any month is the federal short-term rate determined during that month by the Secretary in accordance with section 1274(d), rounded to the near- est full percent (or, if a multiple of 1/2 of 1 percent, the rate is increased to the next highest full percent). Notice 88–59, 1988–1 C.B. 546, an- nounced that in determining the quarterly interest rates to be used for overpayments and underpayments of tax under section 6621, the Internal Revenue Service will use the federal short-term rate based on daily compounding because that rate is most consistent with section 6621 which, pursuant to section 6622, is subject to daily compounding. The federal short-term rate determined in accordance with section 1274(d) during January 2016 is the rate published in Rev- enue Ruling 2016–4, 2016–6 IRB 299 to take effect beginning February 1, 2016. The federal short-term rate, rounded to the nearest full percent, based on daily com- pounding determined during the month of April 2016 is 1 percent. Accordingly, an overpayment rate of 4 percent (3 percent in the case of a corporation) and an un- derpayment rate of 4 percent are estab- lished for the calendar quarter beginning April 1, 2016. The overpayment rate for the portion of a corporate overpayment exceeding $10,000 for the calendar quar- ter beginning April 1, 2016 is 1.5 percent. The underpayment rate for large corporate underpayments for the calendar quarter beginning April 1, 2016, is 6 percent. These rates apply to amounts bearing in- terest during that calendar quarter. Under section 6621(b)(2)(B), the 3 per- cent rate that applies to estimated tax un- derpayments for the first calendar quarter in 2016, as provided in Rev. Rul. 2015– 23, 2015–52 I.R.B., dated Dec. 28, 2015, also applies to such underpayments for the first 15 days in April 2016. Interest factors for daily compound in- terest for annual rates of 1.5 percent, 3 percent, 4 percent and 6 percent are pub- lished in Tables 56, 59, 61, and 65 of Rev. Proc. 95–17, 1995–1 C.B. 610, 613, 615, and 619. Annual interest rates to be com- pounded daily pursuant tosection 6622 that apply for prior periods are set forth in the tables accompanying this revenue ruling. DRAFTING INFORMATION The principal author of this revenue ruling is Deborah Colbert-James of the Office of Associate Chief Counsel (Proce- dure & Administration). For further infor- mation regarding this revenue ruling, con- tact Ms. Colbert-James at (202) 317-3400 (not a toll-free number). Bulletin No. 2016 –14April 4, 2016 519 TABLE OF INTEREST RATES PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986 OVERPAYMENTS AND UNDERPAYMENTS PERIODRATEIn 1995–1 C.B. DAILY RATE TABLE Before Jul. 1, 19756%Table 2, pg. 557 Jul. 1, 1975—Jan. 31, 19769%Table 4, pg. 559 Feb. 1, 1976—Jan. 31, 19787%Table 3, pg. 558 Feb. 1, 1978—Jan. 31, 19806%Table 2, pg. 557 Feb. 1, 1980—Jan. 31, 198212%Table 5, pg. 560 Feb. 1, 1982—Dec. 31, 198220%Table 6, pg. 560 Jan. 1, 1983—Jun. 30, 198316%Table 37, pg. 591 Jul. 1, 1983—Dec. 31, 198311%Table 27, pg. 581 Jan. 1, 1984—Jun. 30, 198411%Table 75, pg. 629 Jul. 1, 1984—Dec. 31, 198411%Table 75, pg. 629 Jan. 1, 1985—Jun. 30, 198513%Table 31, pg. 585 Jul. 1, 1985—Dec. 31, 198511%Table 27, pg. 581 Jan. 1, 1986—Jun. 30, 198610%Table 25, pg. 579 Jul. 1, 1986—Dec. 31, 19869%Table 23, pg. 577 TABLE OF INTEREST RATES FROM JAN. 1, 1987 — DEC. 31, 1998 OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATETABLEPGRATETABLEPG Jan. 1, 1987—Mar. 31, 19878%215759%23577 Apr. 1, 1987—Jun. 30, 19878%215759%23577 Jul. 1, 1987—Sep. 30, 19878%215759%23577 Oct. 1, 1987—Dec. 31, 19879%2357710%25579 Jan. 1, 1988—Mar. 31, 198810%7362711%75629 Apr. 1, 1988—Jun. 30, 19889%7162510%73627 Jul. 1, 1988—Sep. 30, 19889%7162510%73627 Oct. 1, 1988—Dec. 31, 198810%7362711%75629 Jan. 1, 1989—Mar. 31, 198910%2557911%27581 Apr. 1, 1989—Jun. 30, 198911%2758112%29583 Jul. 1, 1989—Sep. 30, 198911%2758112%29583 Oct. 1, 1989—Dec. 31, 198910%2557911%27581 Jan. 1, 1990—Mar. 31, 199010%2557911%27581 Apr. 1, 1990—Jun. 30, 199010%2557911%27581 Jul. 1, 1990—Sep. 30, 199010%2557911%27581 Oct. 1, 1990—Dec. 31, 199010%2557911%27581 Jan. 1, 1991—Mar. 31, 199110%2557911%27581 Apr. 1, 1991—Jun. 30, 19919%2357710%25579 Jul. 1, 1991—Sep. 30, 19919%2357710%25579 Oct. 1, 1991—Dec. 31, 19919%2357710%25579 Jan. 1, 1992—Mar. 31, 19928%696239%71625 Apr. 1, 1992—Jun. 30, 19927%676218%69623 April 4, 2016Bulletin No. 2016 –14 520 TABLE OF INTEREST RATES FROM JAN. 1, 1987 — DEC. 31, 1998 OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATETABLEPGRATETABLEPG Jul. 1, 1992—Sep. 30, 19927%676218%69623 Oct. 1, 1992—Dec. 31, 19926%656197%67621 Jan. 1, 1993—Mar. 31, 19936%175717%19573 Apr. 1, 1993—Jun. 30, 19936%175717%19573 Jul. 1, 1993—Sep. 30, 19936%175717%19573 Oct. 1, 1993—Dec. 31, 19936%175717%19573 Jan. 1, 1994—Mar. 31, 19946%175717%19573 Apr. 1, 1994—Jun. 30, 19946%175717%19573 Jul. 1, 1994—Sep. 30, 19947%195738%21575 Oct. 1, 1994—Dec. 31, 19948%215759%23577 Jan. 1, 1995—Mar. 31, 19958%215759%23577 Apr. 1, 1995—Jun. 30, 19959%2357710%25579 Jul. 1, 1995—Sep. 30, 19958%215759%23577 Oct. 1, 1995—Dec. 31, 19958%215759%23577 Jan. 1, 1996—Mar. 31, 19968%696239%71625 Apr. 1, 1996—Jun. 30, 19967%676218%69623 Jul. 1, 1996—Sep. 30, 19968%696239%71625 Oct. 1, 1996—Dec. 31, 19968%696239%71625 Jan. 1, 1997—Mar. 31, 19978%215759%23577 Apr. 1, 1997—Jun. 30, 19978%215759%23577 Jul. 1, 1997—Sep. 30, 19978%215759%23577 Oct. 1, 1997—Dec. 31, 19978%215759%23577 Jan. 1, 1998—Mar. 31, 19988%215759%23577 Apr. 1, 1998—Jun. 30, 19987%195738%21575 Jul. 1, 1998—Sep. 30, 19987%195738%21575 Oct. 1, 1998—Dec. 31, 19987%195738%21575 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS 1995–1 C.B. RATETABLEPAGE Jan. 1, 1999—Mar. 31, 19997%19573 Apr. 1, 1999—Jun. 30, 19998%21575 Jul. 1, 1999—Sep. 30, 19998%21575 Oct. 1, 1999—Dec. 31, 19998%21575 Jan. 1, 2000—Mar. 31, 20008%69623 Apr. 1, 2000—Jun. 30, 20009%71625 Jul. 1, 2000—Sep. 30, 20009%71625 Oct. 1, 2000—Dec. 31, 20009%71625 Jan. 1, 2001—Mar. 31, 20019%23577 Bulletin No. 2016 –14April 4, 2016 521 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS 1995–1 C.B. RATETABLEPAGE Apr. 1, 2001—Jun. 30, 20018%21575 Jul. 1, 2001—Sep. 30, 20017%19573 Oct. 1, 2001—Dec. 31, 20017%19573 Jan. 1, 2002—Mar. 31, 20026%17571 Apr. 1, 2002—Jun. 30, 20026%17571 Jul. 1, 2002—Sep. 30, 20026%17571 Oct. 1, 2002—Dec. 31, 20026%17571 Jan. 1, 2003—Mar. 31, 20035%15569 Apr. 1, 2003—Jun. 30, 20035%15569 Jul. 1, 2003—Sep. 30, 20035%15569 Oct. 1, 2003—Dec. 31, 20034%13567 Jan. 1, 2004—Mar. 31, 20044%61615 Apr. 1, 2004—Jun. 30, 20045%63617 Jul. 1, 2004—Sep. 30, 20044%61615 Oct. 1, 2004—Dec. 31, 20045%63617 Jan. 1, 2005—Mar. 31, 20055%15569 Apr. 1, 2005—Jun. 30, 20056%17571 Jul. 1, 2005—Sep. 30, 20056%17571 Oct. 1, 2005—Dec. 31, 20057%19573 Jan. 1, 2006—Mar. 31, 20067%19573 Apr. 1, 2006—Jun. 30, 20067%19573 Jul. 1, 2006—Sep. 30, 20068%21575 Oct. 1, 2006—Dec. 31, 20068%21575 Jan. 1, 2007—Mar. 31, 20078%21575 Apr. 1, 2007—Jun. 30, 20078%21575 Jul. 1, 2007—Sep. 30, 20078%21575 Oct. 1, 2007—Dec. 31, 20078%21575 Jan. 1, 2008—Mar. 31, 20087%67621 Apr. 1, 2008—Jun. 30, 20086%65619 Jul. 1, 2008—Sep. 30, 20085%63617 Oct. 1, 2008—Dec. 31, 20086%65619 Jan. 1, 2009—Mar. 31, 20095%15569 Apr. 1, 2009—Jun. 30, 20094%13567 Jul. 1, 2009—Sep. 30, 20094%13567 Oct. 1, 2009—Dec. 31, 20094%13567 Jan. 1, 2010—Mar. 31, 20104%13567 Apr. 1, 2010—Jun. 30, 20104%13567 Jul. 1, 2010—Sep. 30, 20104%13567 Oct. 1, 2010—Dec. 31, 20104%13567 Jan. 1, 2011—Mar. 31, 20113%11565 Apr. 1, 2011—Jun. 30, 20114%13567 Jul. 1, 2011—Sep. 30, 20114%13567 April 4, 2016Bulletin No. 2016 –14 522 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS 1995–1 C.B. RATETABLEPAGE Oct. 1, 2011—Dec. 31, 20113%11565 Jan. 1, 2012—Mar. 31, 20123%59613 Apr. 1, 2012—Jun. 30, 20123%59613 Jul. 1, 2012—Sep. 30, 20123%59613 Oct. 1, 2012—Dec. 31, 20123%59613 Jan. 1, 2013—Mar. 31, 20133%11565 Apr. 1, 2013—Jun. 30, 20133%11565 Jul. 1, 2013—Sep. 30, 20133%11565 Oct. 1, 2013—Dec. 31, 20133%11565 Jan. 1, 2014—Mar. 31, 20143%11565 Apr. 1, 2014—Jun. 30, 20143%11565 Jul. 1, 2014—Sep. 30, 20143%11565 Oct. 1, 2014—Dec. 31, 20143%11565 Jan. 1, 2015—Mar. 31, 20153%11565 Apr. 1, 2015—Jun. 30, 20153%11565 Jul. 1, 2015—Sep. 30, 20153%11565 Oct. 1, 2015—Dec. 31, 20153%11565 Jan. 1, 2016—Mar. 31, 20163%59613 Apr. 1, 2016—Jun. 30, 20164%61615 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATETABLEPGRATETABLEPG Jan. 1, 1999—Mar. 31, 19996%175717%19573 Apr. 1, 1999—Jun. 30, 19997%195738%21575 Jul. 1, 1999—Sep. 30, 19997%195738%21575 Oct. 1, 1999—Dec. 31, 19997%195738%21575 Jan. 1, 2000—Mar. 31, 20007%676218%69623 Apr. 1, 2000—Jun. 30, 20008%696239%71625 Jul. 1, 2000—Sep. 30, 20008%696239%71625 Oct. 1, 2000—Dec. 31, 20008%696239%71625 Jan. 1, 2001—Mar. 31, 20018%215759%23577 Apr. 1, 2001—Jun. 30, 20017%195738%21575 Jul. 1, 2001—Sep. 30, 20016%175717%19573 Oct. 1, 2001—Dec. 31, 20016%175717%19573 Jan. 1, 2002—Mar. 31, 20025%155696%17571 Apr. 1, 2002—Jun. 30, 20025%155696%17571 Jul. 1, 2002—Sep. 30, 20025%155696%17571 Bulletin No. 2016 –14April 4, 2016 523 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATETABLEPGRATETABLEPG Oct. 1, 2002—Dec. 31, 20025%155696%17571 Jan. 1, 2003—Mar. 31, 20034%135675%15569 Apr. 1, 2003—Jun. 30, 20034%135675%15569 Jul. 1, 2003—Sep. 30, 20034%135675%15569 Oct. 1, 2003—Dec. 31, 20033%115654%13567 Jan. 1, 2004—Mar. 31, 20043%596134%61615 Apr. 1, 2004—Jun. 30, 20044%616155%63617 Jul. 1, 2004—Sep. 30, 20043%596134%61615 Oct. 1, 2004—Dec. 31, 20044%616155%63617 Jan. 1, 2005—Mar. 31, 20054%135675%15569 Apr. 1, 2005—Jun. 30, 20055%155696%17571 Jul. 1, 2005—Sep. 30, 20055%155696%17571 Oct. 1, 2005—Dec. 31, 20056%175717%19573 Jan. 1, 2006—Mar. 31, 20066%175717%19573 Apr. 1, 2006—Jun. 30, 20066%175717%19573 Jul. 1, 2006—Sep. 30, 20067%195738%21575 Oct. 1, 2006—Dec. 31, 20067%195738%21575 Jan. 1, 2007—Mar. 31, 20077%195738%21575 Apr. 1, 2007—Jun. 30, 20077%195738%21575 Jul. 1, 2007—Sep. 30, 20077%195738%21575 Oct. 1, 2007—Dec. 31, 20077%195738%21575 Jan. 1, 2008—Mar. 31, 20086%656197%67621 Apr. 1, 2008—Jun. 30, 20085%636176%65619 Jul. 1, 2008—Sep. 30, 20084%616155%63617 Oct. 1, 2008—Dec. 31, 20085%636176%65619 Jan. 1, 2009—Mar. 31, 20094%135675%15569 Apr. 1, 2009—Jun. 30, 20093%115654%13567 Jul. 1, 2009—Sep. 30, 20093%115654%13567 Oct. 1, 2009—Dec. 31, 20093%115654%13567 Jan. 1, 2010—Mar. 31, 20103%115654%13567 Apr. 1, 2010—Jun. 30, 20103%115654%13567 Jul. 1, 2010—Sep. 30, 20103%115654%13567 Oct. 1, 2010—Dec. 31, 20103%115654%13567 Jan. 1, 2011—Mar. 31, 20112%95633%11565 Apr. 1, 2011—Jun. 30, 20113%115654%13567 Jul. 1, 2011—Sep. 30, 20113%115654%13567 Oct. 1, 2011—Dec. 31, 20112%95633%11565 Jan. 1, 2012—Mar. 31, 20122%576113%59613 Apr. 1, 2012—Jun. 30, 20122%576113%59613 Jul. 1, 2012—Sep. 30, 20122%576113%59613 Oct. 1, 2012—Dec. 31, 20122%576113%59613 April 4, 2016Bulletin No. 2016 –14 524 TABLE OF INTEREST RATES FROM JANUARY 1, 1999 — PRESENT CORPORATE OVERPAYMENTS AND UNDERPAYMENTS OVERPAYMENTSUNDERPAYMENTS 1995–1 C.B.1995–1 C.B. RATETABLEPGRATETABLEPG Jan. 1, 2013—Mar. 31, 20132%95633%11565 Apr. 1, 2013—Jun. 30, 20132%95633%11565 Jul. 1, 2013—Sep. 30, 20132%95633%11565 Oct. 1, 2013—Dec. 31, 20132%95633%11565 Jan. 1, 2014—Mar. 31, 20142%95633%11565 Apr. 1, 2014—Jun. 30, 20142%95633%11565 Jul. 1, 2014—Sep. 30, 20142%95633%11565 Oct. 1, 2014—Dec. 31, 20142%95633%11565 Jan. 1, 2015—Mar. 31, 20152%95633%11565 Apr. 1, 2015—Jun. 30, 20152%95633%11565 Jul. 1, 2015—Sep. 30, 20152%95633%11565 Oct. 1, 2015—Dec. 31, 20152%95633%11565 Jan. 1, 2016—Mar. 31, 20162%576113%59613 Apr. 1, 2016—Jun. 30, 20163%596134%61615 TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 — PRESENT 1995–1 C.B. RATETABLEPG Jan. 1, 1991—Mar. 31, 199113%31585 Apr. 1, 1991—Jun. 30, 199112%29583 Jul. 1, 1991—Sep. 30, 199112%29583 Oct. 1, 1991—Dec. 31, 199112%29583 Jan. 1, 1992—Mar. 31, 199211%75629 Apr. 1, 1992—Jun. 30, 199210%73627 Jul. 1, 1992—Sep. 30, 199210%73627 Oct. 1, 1992—Dec. 31, 19929%71625 Jan. 1, 1993—Mar. 31, 19939%23577 Apr. 1, 1993—Jun. 30, 19939%23577 Jul. 1, 1993—Sep. 30, 19939%23577 Oct. 1, 1993—Dec. 31, 19939%23577 Jan. 1, 1994—Mar. 31, 19949%23577 Apr. 1, 1994—Jun. 30, 19949%23577 Jul. 1, 1994—Sep. 30, 199410%25579 Oct. 1, 1994—Dec. 31, 199411%27581 Jan. 1, 1995—Mar. 31, 199511%27581 Apr. 1, 1995—Jun. 30, 199512%29583 Jul. 1, 1995—Sep. 30, 199511%27581 Oct. 1, 1995—Dec. 31, 199511%27581 Jan. 1, 1996—Mar. 31, 199611%75629 Bulletin No. 2016 –14April 4, 2016 525 TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 — PRESENT 1995–1 C.B. RATETABLEPG Apr. 1, 1996—Jun. 30, 199610%73627 Jul. 1, 1996—Sep. 30, 199611%75629 Oct. 1, 1996—Dec. 31, 199611%75629 Jan. 1, 1997—Mar. 31, 199711%27581 Apr. 1, 1997—Jun. 30, 199711%27581 Jul. 1, 1997—Sep. 30, 199711%27581 Oct. 1, 1997—Dec. 31, 199711%27581 Jan. 1, 1998—Mar. 31, 199811%27581 Apr. 1, 1998—Jun. 30, 199810%25579 Jul. 1, 1998—Sep. 30, 199810%25579 Oct. 1, 1998—Dec. 31, 199810%25579 Jan. 1, 1999—Mar. 31, 19999%23577 Apr. 1, 1999—Jun. 30, 199910%25579 Jul. 1, 1999—Sep. 30, 199910%25579 Oct. 1, 1999—Dec. 31, 199910%25579 Jan. 1, 2000—Mar. 31, 200010%73627 Apr. 1, 2000—Jun. 30, 200011%75629 Jul. 1, 2000—Sep. 30, 200011%75629 Oct. 1, 2000—Dec. 31, 200011%75629 Jan. 1, 2001—Mar. 31, 200111%27581 Apr. 1, 2001—Jun. 30, 200110%25579 Jul. 1, 2001—Sep. 30, 20019%23577 Oct. 1, 2001—Dec. 31, 20019%23577 Jan. 1, 2002—Mar. 31, 20028%21575 Apr. 1, 2002—Jun. 30, 20028%21575 Jul. 1, 2002—Sep. 30, 20028%21575 Oct. 1, 2002—Dec. 31, 20028%21575 Jan. 1, 2003—Mar. 31, 20037%19573 Apr. 1, 2003—Jun. 30, 20037%19573 Jul. 1, 2003—Sep. 30, 20037%19573 Oct. 1, 2003—Dec. 31, 20036%17571 Jan. 1, 2004—Mar. 31, 20046%65619 Apr. 1, 2004—Jun. 30, 20047%67621 Jul. 1, 2004—Sep. 30, 20046%65619 Oct. 1, 2004—Dec. 31, 20047%67621 Jan. 1, 2005—Mar. 31, 20057%19573 Apr. 1, 2005—Jun. 30, 20058%21575 Jul. 1, 2005—Sep. 30, 20058%21575 Oct. 1, 2005—Dec. 31, 20059%23577 Jan. 1, 2006—Mar. 31, 20069%23577 Apr. 1, 2006—Jun. 30, 20069%23577 Jul. 1, 2006—Sep. 30, 200610%25579 Oct. 1, 2006—Dec. 31, 200610%25579 Jan. 1, 2007—Mar. 31, 200710%25579 April 4, 2016Bulletin No. 2016 –14 526 TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS FROM JANUARY 1, 1991 — PRESENT 1995–1 C.B. RATETABLEPG Apr. 1, 2007—Jun. 30, 200710%25579 Jul. 1, 2007—Sep. 30, 200710%25579 Oct. 1, 2007—Dec. 31, 200710%25579 Jan. 1, 2008—Mar. 31, 20089%71625 Apr. 1, 2008—Jun. 30, 20088%69623 Jul. 1, 2008—Sep. 30, 20087%67621 Oct. 1, 2008—Dec. 31, 20088%69623 Jan. 1, 2009—Mar. 31, 20097%19573 Apr. 1, 2009—Jun. 30, 20096%17571 Jul. 1, 2009—Sep. 30, 20096%17571 Oct. 1, 2009—Dec. 31, 20096%17571 Jan. 1, 2010—Mar. 31, 20106%17571 Apr. 1, 2010—Jun. 30, 20106%17571 Jul. 1, 2010—Sep. 30, 20106%17571 Oct. 1, 2010—Dec. 31, 20106%17571 Jan. 1, 2011—Mar. 31, 20115%15569 Apr. 1, 2011—Jun. 30, 20116%17571 Jul. 1, 2011—Sep. 30, 20116%17571 Oct. 1, 2011—Dec. 31, 20115%15569 Jan. 1, 2012—Mar. 31, 20125%63617 Apr. 1, 2012—Jun. 30, 20125%63617 Jul. 1, 2012—Sep. 30, 20125%63617 Oct. 1, 2012—Dec. 31, 20125%63617 Jan. 1, 2013—Mar. 31, 20135%15569 Apr. 1, 2013—Jun. 30, 20135%15569 Jul. 1, 2013—Sep. 30, 20135%15569 Oct. 1, 2013—Dec. 31, 20135%15569 Jan. 1, 2014—Mar. 31, 20145%15569 Apr. 1, 2014—Jun. 30, 20145%15569 Jul. 1, 2014—Sep. 30, 20145%15569 Oct. 1, 2014—Dec. 31, 20145%15569 Jan. 1, 2015—Mar. 31, 20155%15569 Apr. 1, 2015—Jun. 30, 20155%15569 Jul. 1, 2015—Sep. 30, 20155%15569 Oct. 1, 2015—Dec. 31, 20155%15569 Jan. 1, 2016—Mar. 31, 20165%63617 Apr. 1, 2016—Jun. 30, 20166%65619 Bulletin No. 2016 –14April 4, 2016 527 TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 — PRESENT 1995–1 C.B. RATETABLEPG Jan. 1, 1995—Mar. 31, 19956.5%18572 Apr. 1, 1995—Jun. 30, 19957.5%20574 Jul. 1, 1995—Sep. 30, 19956.5%18572 Oct. 1, 1995—Dec. 31, 19956.5%18572 Jan. 1, 1996—Mar. 31, 19966.5%66620 Apr. 1, 1996—Jun. 30, 19965.5%64618 Jul. 1, 1996—Sep. 30, 19966.5%66620 Oct. 1, 1996—Dec. 31, 19966.5%66620 Jan. 1, 1997—Mar. 31, 19976.5%18572 Apr. 1, 1997—Jun. 30, 19976.5%18572 Jul. 1, 1997—Sep. 30, 19976.5%18572 Oct. 1, 1997—Dec. 31, 19976.5%18572 Jan. 1, 1998—Mar. 31, 19986.5%18572 Apr. 1, 1998—Jun. 30, 19985.5%16570 Jul. 1. 1998—Sep. 30, 19985.5%16570 Oct. 1, 1998—Dec. 31, 19985.5%16570 Jan. 1, 1999—Mar. 31, 19994.5%14568 Apr. 1, 1999—Jun. 30, 19995.5%16570 Jul. 1, 1999—Sep. 30, 19995.5%16570 Oct. 1, 1999—Dec. 31, 19995.5%16570 Jan. 1, 2000—Mar. 31, 20005.5%64618 Apr. 1, 2000—Jun. 30, 20006.5%66620 Jul. 1, 2000—Sep. 30, 20006.5%66620 Oct. 1, 2000—Dec. 31, 20006.5%66620 Jan. 1, 2001—Mar. 31, 20016.5%18572 Apr. 1, 2001—Jun. 30, 20015.5%16570 Jul. 1, 2001—Sep. 30, 20014.5%14568 Oct. 1, 2001—Dec. 31, 20014.5%14568 Jan. 1, 2002—Mar. 31, 20023.5%12566 Apr. 1, 2002—Jun. 30, 20023.5%12566 Jul. 1, 2002—Sep. 30, 20023.5%12566 Oct. 1, 2002—Dec. 31, 20023.5%12566 Jan. 1, 2003—Mar. 31, 20032.5%10564 Apr. 1, 2003—Jun. 30, 20032.5%10564 Jul. 1, 2003—Sep. 30, 20032.5%10564 Oct. 1, 2003—Dec. 31, 20031.5%8562 Jan. 1, 2004—Mar. 31, 20041.5%56610 Apr. 1, 2004—Jun. 30, 20042.5%58612 Jul. 1, 2004—Sep. 30, 20041.5%56610 Oct. 1, 2004—Dec. 31, 20042.5%58612 Jan. 1, 2005—Mar. 31, 20052.5%10564 Apr. 1, 2005—Jun. 30, 20053.5%12566 Jul. 1, 2005—Sep. 30, 20053.5%12566 April 4, 2016Bulletin No. 2016 –14 528 TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 — PRESENT 1995–1 C.B. RATETABLEPG Oct. 1, 2005—Dec. 31, 20054.5%14568 Jan. 1, 2006—Mar. 31, 20064.5%14568 Apr. 1, 2006—Jun. 30, 20064.5%14568 Jul. 1, 2006—Sep. 30, 20065.5%16570 Oct. 1, 2006—Dec. 31, 20065.5%16570 Jan. 1, 2007—Mar. 31, 20075.5%16570 Apr. 1, 2007—Jun. 30, 20075.5%16570 Jul. 1, 2007—Sep. 30, 20075.5%16570 Oct. 1, 2007—Dec. 31, 20075.5%16570 Jan. 1, 2008—Mar. 31, 20084.5%62616 Apr. 1, 2008—Jun. 30, 20083.5%60614 Jul. 1, 2008—Sep. 30, 20082.5%58612 Oct. 1, 2008—Dec. 31, 20083.5%60614 Jan. 1, 2009—Mar. 31, 20092.5%10564 Apr. 1, 2009—Jun. 30, 20091.5%8562 Jul. 1, 2009—Sep. 30, 20091.5%8562 Oct. 1, 2009—Dec. 31, 20091.5%8562 Jan. 1, 2010—Mar. 31, 20101.5%8562 Apr. 1, 2010—Jun. 30, 20101.5%8562 Jul. 1, 2010—Sep. 30, 20101.5%8562 Oct. 1, 2010—Dec. 31, 20101.5%8562 Jan. 1, 2011—Mar. 31, 20110.5%* Apr. 1, 2011—Jun. 30, 20111.5%8562 Jul. 1, 2011—Sep. 30, 20111.5%8562 Oct. 1, 2011—Dec. 31, 20110.5%* Jan. 1, 2012—Mar. 31, 20120.5%* Apr. 1, 2012—Jun. 30, 20120.5%* Jul. 1, 2012—Sep. 30, 20120.5%* Oct. 1, 2012—Dec. 31, 20120.5%* Jan. 1, 2013—Mar. 31, 20130.5%* Apr. 1, 2013—Jun. 30, 20130.5%* Jul. 1, 2013—Sep. 30, 20130.5%* Oct. 1, 2013—Dec. 31, 20130.5%* Jan. 1, 2014—Mar. 31, 20140.5%* Apr. 1, 2014—Jun. 30, 20140.5%* Jul. 1, 2014—Sep. 30, 20140.5%* Oct. 1, 2014—Dec. 31, 20140.5%* Jan. 1, 2015—Mar. 31, 20150.5%* Apr. 1, 2015—Jun. 30, 20150.5%* Jul. 1, 2015—Sep. 30, 20150.5%* Oct. 1, 2015—Dec. 31, 20150.5%* Bulletin No. 2016 –14April 4, 2016 529 TABLE OF INTEREST RATES FOR CORPORATE OVERPAYMENTS EXCEEDING $10,000 FROM JANUARY 1, 1995 — PRESENT 1995–1 C.B. RATETABLEPG Jan. 1, 2016—Mar. 31, 20160.5%* Apr. 1, 2016—Jun. 30, 20161.5% * The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent, which are published in Appendix A of Rev. Rul. 2015–23, 2015–52 I.R.B., dated Dec. 28, 2015. Section 1274.— Determination of Issue Price in the Case of Certain Debt Instruments Issued for Property (Also Sections 42, 280G, 382, 412, 467, 468, 482, 483, 642, 807, 846, 1288, 7520, 7872.) Rev. Rul. 2016 – 09 This revenue ruling provides various prescribed rates for federal income tax purposes for April 2016 (the current month). Table 1 contains the short-term, mid-term, and long-term applicable fed- eral rates (AFR) for the current month for purposes of section 1274(d) of the Internal Revenue Code. Table 2 contains the short- term, mid-term, and long-term adjusted applicable federal rates (adjusted AFR) for the current month for purposes of sec- tion 1288(b). Table 3 sets forth the ad- justed federal long-term rate and the long- term tax-exempt rate described in section 382(f). Table 4 contains the appropriate percentages for determining the low- income housing credit described in sec- tion 42(b)(1) for buildings placed in ser- vice during the current month. However, under section 42(b)(2), the applicable per- centage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Finally, Table 5 contains the federal rate for de- termining the present value of an annuity, an interest for life or for a term of years, or a remainder or a reversionary interest for purposes of section 7520. REV. RUL. 2016–09 TABLE 1 Applicable Federal Rates (AFR) for April 2016 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term AFR.70%.70%.70%.70% 110% AFR.77%.77%.77%.77% 120% AFR.84%.84%.84%.84% 130% AFR.91%.91%.91%.91% Mid-term AFR1.45%1.44%1.44%1.44% 110% AFR1.59%1.58%1.58%1.57% 120% AFR1.74%1.73%1.73%1.72% 130% AFR1.88%1.87%1.87%1.86% 150% AFR2.17%2.16%2.15%2.15% 175% AFR2.54%2.52%2.51%2.51% Long-term AFR2.25%2.24%2.23%2.23% 110% AFR2.48%2.46%2.45%2.45% 120% AFR2.71%2.69%2.68%2.68% 130% AFR2.93%2.91%2.90%2.89% April 4, 2016Bulletin No. 2016 –14 530 REV. RUL. 2016–09 TABLE 2 Adjusted AFR for April 2016 Period for Compounding AnnualSemiannualQuarterlyMonthly Short-term adjusted AFR.46%.46%.46%.46% Mid-term adjusted AFR1.12%1.12%1.12%1.12% Long-term adjusted AFR2.25%2.24%2.23%2.23% REV. RUL. 2016–09 TABLE 3 Rates Under Section 382 for April 2016 Adjusted federal long-term rate for the current month2.25% Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal long-term rates for the current month and the prior two months.) 2.53% REV. RUL. 2016–09 TABLE 4 Appropriate Percentages Under Section 42(b)(1) for April 2016 Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July 30, 2008, shall not be less than 9%. Appropriate percentage for the 70% present value low-income housing credit7.42% Appropriate percentage for the 30% present value low-income housing credit3.18% REV. RUL. 2016–09 TABLE 5 Rate Under Section 7520 for April 2016 Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years, or a remainder or reversionary interest 1.8% Section 42.—Low-Income Housing Credit The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 280G.—Golden Parachute Payments Federal short-term, mid-term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 382.—Limitation on Net Operating Loss Carryforwards and Certain Built-In Losses Following Ownership Change The adjusted applicable federal long-term rate is set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 412.—Minimum Funding Standards The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 467.—Certain Payments for the Use of Property or Services The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 468.—Special Rules for Mining and Solid Waste Reclamation and Closing Costs The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 482.—Allocation of Income and Deductions Among Taxpayers Federal short-term, mid-term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 483.—Interest on Certain Deferred Payments The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 642.—Special Rules for Credits and Deductions Federal short-term, mid-term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Bulletin No. 2016 –14April 4, 2016 531 Section 807.—Rules for Certain Reserves The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 846.—Discounted Unpaid Losses Defined The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 1288.—Treatment of Original Issue Discount on Tax-Exempt Obligations The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 7520.—Valuation Tables The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. Section 7872.—Treatment of Loans With Below- Market Interest Rates The adjusted applicable federal short-term, mid- term, and long-term rates are set forth for the month of April 2016. See Rev. Rul. 2016–09, page 530. April 4, 2016Bulletin No. 2016 –14 532 Part III. Administrative, Procedural, and Miscellaneous Public Comment Invited on Recommendations for 2016 –2017 Priority Guidance Plan Notice 2016 –26 The Department of Treasury and Inter- nal Revenue Service (Service) invite pub- lic comment on recommendations for items that should be included on the 2016–2017 Priority Guidance Plan. The Treasury Department’s Office of Tax Policy and the Service use the Prior- ity Guidance Plan each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. The 2016–2017 Priority Guidance Plan will identify guidance projects that the Treasury Department and the Service in- tend to work on as priorities during the period from July 1, 2016, through June 30, 2017. The Treasury Department and the Service recognize the importance of pub- lic input in formulating a Priority Guid- ance Plan that focuses resources on guid- ance items that are most important to taxpayers and tax administration. Pub- lished guidance plays an important role in increasing voluntary compliance by help- ing to clarify ambiguous areas of the tax law. The published guidance process is most successful if the Treasury Depart- ment and the Service have the benefit of the experience and knowledge of taxpay- ers and practitioners who must apply the rules implementing the internal revenue laws. As is the case whenever significant leg- islation is enacted, the Treasury Depart- ment and the Service have continued to dedicate substantial resources during the current plan year to published guidance projects necessary to implement the pro- visions of various tax legislative acts that have been enacted over the past several years. The Treasury Department and the Service will continue to evaluate the pri- ority of each guidance project taking into account this tax legislation, as well as other developments occurring during the 2016–2017 plan year. In reviewing recommendations and se- lecting projects for inclusion on the 2016– 2017 Priority Guidance Plan, the Treasury Department and the Service will consider the following: 1. Whether the recommended guidance resolves significant issues relevant to many taxpayers; 2. Whether the recommended guidance promotes sound tax administration; 3. Whether the recommended guidance can be drafted in a manner that will enable taxpayers to easily understand and apply the guidance; 4. Whether the recommended guidance involves regulations that are out- moded, ineffective, insufficient, or ex- cessively burdensome and that should be modified, streamlined, expanded, or repealed; 5. Whether the Service can administer the recommended guidance on a uniform basis; and 6. Whether the recommended guidance reduces controversy and lessens the burden on taxpayers or the Service. Please submit recommendations by May 16, 2016, for possible inclusion on the original 2016–2017 Priority Guidance Plan. Taxpayers may, however, submit recommendations for guidance at any time during the year. The Treasury De- partment and the Service may update the 2016–2017 Priority Guidance Plan peri- odically to reflect additional guidance that the Treasury Department and the Service intend to publish during the plan year. The periodic updates allow the Treasury De- partment and the Service to respond to the need for additional guidance that may arise during the plan year. Taxpayers are not required to submit recommendations for guidance in any par- ticular format. Taxpayers should, how- ever, briefly describe the recommended guidance and explain the need for the guidance. In addition, taxpayers may in- clude an analysis of how the issue should be resolved. It would be helpful if taxpay- ers suggesting more than one guidance project prioritize the projects by order of importance. If a large number of projects are being suggested, it would be helpful if the projects were grouped in terms of high, medium, or low priority. Requests for guidance in the form of petitions for rulemaking will be considered with other recommendations for guidance in accor- dance with the considerations described in this notice. Taxpayers may mail comments to: Internal Revenue Service Attn: CC:PA:LPD:PR (Notice 2016–26) Room 5203 P.O. Box 7604 Ben Franklin Station Washington, D.C. 20044 or hand deliver comments Monday through Friday between the hours of 8 a.m. and 4 p.m. to: Courier’s Desk Internal Revenue Service Attn: CC:PA:LPD:PR (Notice 2016–26) 1111 Constitution Avenue, N.W. Washington, D.C. 20224 Alternatively, taxpayers may submit comments electronically via the Federal eRulemaking Portal atwww.regulations. gov(type IRS–2016–0012 in the search field on the regulations.gov homepage to find this notice and submit comments). All recommendations for guidance submitted by the public in response to this notice will be available for public inspection and copying in their entirety. For further information regarding this notice, contact Charles A. Hall of the Of- fice of Associate Chief Counsel (Proce- dure and Administration) at (202) 317- 3400 (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 I, §§ 911; 1.911–1.) Rev. Proc. 2016 –21 SECTION 1. PURPOSE .01 This revenue procedure provides information to any individual who failed to meet the eligibility requirements of sec- tion 911(d)(1) of the Internal Revenue Code because adverse conditions in a for- eign country precluded the individual from meeting those requirements for tax- able year 2015. Bulletin No. 2016 –14April 4, 2016 533 .02 This revenue procedure lists the countries for which the eligibility require- ments of section 911(d)(1) are waived for taxable year 2015. SECTION 2. BACKGROUND .01 Sections 911(a) and (c)(4) of the Code allow a “qualified individual,” as defined in section 911(d), to exempt from taxation the individual’s foreign earned income and the housing cost amount. .02 Section 911(d)(1) of the Code de- fines the term “qualified individual” as an individual whose tax home is in a foreign country and who is (A) a citizen of the United States and establishes to the satis- faction of the Secretary of the Treasury that the individual has been abona fide resident of a foreign country or countries for an uninterrupted period that includes an entire taxable year, or (B) a citizen or resident of the United States who, during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days. .03 Section 911(d)(4) of the Code pro- vides an exception to the eligibility re- quirements of section 911(d)(1). An indi- vidual will be treated as a qualified individual with respect to a period in which the individual was abona fideres- ident of, or was present in, a foreign coun- try if the individual left the country during a period for which the Secretary of the Treasury, after consultation with the Sec- retary of State, determines that individuals were required to leave because of war, civil unrest, or similar adverse conditions that precluded the normal conduct of busi- ness. An individual must establish that but for those conditions the individual could reasonably have been expected to meet the eligibility requirements SECTION 3. APPLICATION .01 For 2015, the Secretary of the Trea- sury, in consultation with the Secretary of State, has determined that war, civil un- rest, or similar adverse conditions pre- cluded the normal conduct of business in the following country beginning on the specified date: Country Date of Departure On or After BurundiMay 14, 2015 Accordingly, for purposes of section 911 of the Code, an individual who left the Burundi on or after May 14, 2015, will be treated as a qualified individual with respect to the period during which that individual was present in, or was abona fideresident of, Burundi if the individual establishes a reasonable expectation of meeting the requirements of section 911(d) but for those conditions. .02 To qualify for relief under section 911(d)(4) of the Code, an individual must have established residency, or have been physically present, in the foreign country on or prior to the date that the Secretary of the Treasury determines that individuals were required to leave the foreign country. Individuals who establish residency, or are first physically present, in the foreign country after the date that the Secretary prescribes will not be treated as qualified individuals under section 911(d)(4) of the Code. For example, individuals who were first physically present or established res- idency in Burundi after May 14, 2015, are not eligible to qualify for the exception provided in section 911(d)(4) of the Code for taxable year 2015. SECTION 4. INQUIRIES A taxpayer who needs assistance on how to claim this exclusion, or on how to file an amended return, should contact a local IRS Office or consult the section under the headingHow to Get Tax Helpathttps://www.irs.gov/Individuals/ International-Taxpayers/U.S.-Citizens-and- Resident-Aliens-Abroad. SECTION 4. DRAFTING INFORMATION The principal author of this revenue procedure is Kate Y. Hwa of the Office of Associate Chief Counsel (International). For further information regarding this rev- enue procedure contact Kate Y. Hwa on (202) 317-5001 (not a toll-free number). April 4, 2016Bulletin No. 2016 –14 534 Part IV. Items of General Interest December 2015 Revision of Form 3115 Announcement 2016 –14 The Internal Revenue Service (IRS) has revised Form 3115,Application for Change in Accounting Method, and its instructions. The Form 3115 (Rev. De- cember 2015) is thecurrentForm 3115 and replaces the December 2009 version of the Form 3115. Ordinarily, a taxpayer applies for consent to change a method of accounting for federal income tax purposes by completing and filing acurrentForm 3115. Treas. Reg. § 1.446–1(e)(3)(i). To allow a reasonable transition to the December 2015 Form 3115, the IRS will accept either the December 2015 Form 3115 or the December 2009 Form 3115 filed on or before April 19, 2016, except where the use of the December 2015 Form 3115 is specifically required in guidance published in the Internal Revenue Bulletin. Taxpayers filing Forms 3115 after April 19, 2016, must use the December 2015 Form 3115. The IRS encourages taxpayers to use the December 2015 Form 3115 prior to April 20, 2016. Regardless of the form used, taxpayers must provide all the information required by Rev. Proc. 2015–13 (or Rev. Proc. 2011–14, 2011–4 I.R.B. 330, if the taxpayer is making a change under the tran- sition rule in section 15.02(1)(a)(ii) of Rev. Proc. 2015–13, 2015–5 I.R.B. 419, as mod- ified by Rev. Proc. 2015–33, 2015–24 I.R.B. 1067).Seesections 6.02 and 14 of Rev. Proc. 2015–13 or sections 6 and 11 of Rev. Proc. 2011–14. Section 6.03(1)(a)(i) of Rev. Proc. 2015–13 requires a taxpayer filing a re- quest for an automatic change to file its original Form 3115 with its return and a duplicate of that Form 3115 with the IRS in Ogden, Utah. Beginning in January 2016, the duplicate copy of Form 3115 for an automatic change request is filed with the IRS in Covington, Kentucky.SeeRev. Proc. 2016–1, 2016–1 I.R.B. 1, section 9.05(2). The address of the IRS office in Covington, Kentucky, is: Internal Revenue Service 201 West Rivercenter Blvd. PIN Team Mail Stop 97 Covington, KY 41011-1424 If prior to April 20, 2016, a taxpayer filed its duplicate copy of Form 3115 with the IRS in either Ogden, Utah, or Coving- ton, Kentucky, using the December 2009 Form 3115, the taxpayer may file its orig- inal Form 3115 with its return on either the December 2009 Form 3115 or the December 2015 Form 3115. Taxpayers may download the Decem- ber 2015 Form 3115 and its instructions from the IRS website,www.irs.gov/formspubs,or order them from the IRS websitewww.irs. gov/orderforms. The principal author of this announce- ment is Charles Magee of the Office of Associate Chief Counsel (Income Tax & Accounting). For further information re- garding this announcement contact Mr. Magee at (202) 317-7005 (not a toll-free number). Notice of Proposed Rulemaking Country-by-Country Reporting REG–109822–15 AGENCY:Internal Revenue Service (IRS), Treasury. ACTION:Notice of proposed rulemaking. SUMMARY: This document contains proposed regulations that would require annual country-by-country reporting by United States persons (U.S. persons) that are the ultimate parent entity of a multi- national enterprise (MNE) group. These proposed regulations affect U.S. persons that are the ultimate parent entity of an MNE group that has annual revenue for the preceding annual accounting period of $850,000,000 or more. This document in- vites comments from the public on all aspects of the proposed rules and provides the opportunity for the public to request a public hearing. DATES: Written or electronic comments and requests for a public hearing must be received by March 22, 2015. ADDRESSES: Send submissions to: CC: PA:LPD:PR (REG–109822–15), Room 5203, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand- delivered Monday through Friday be- tween the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG–109822–15), Couri- er’s Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Washington, DC, or sent electronically via the Federal eRule- making Portal athttp://www.regulations. gov(indicate IRS REG–109822–15). FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, Melinda E. Harvey, (202) 317-6934; concerning submissions of comments or requests for a public hearing, Oluwafunmilayo (Funmi) Taylor, (202) 317-6901 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Background 1.Objectives of Proposed Regulatory Action Pursuant to the authority granted under sections 6001, 6011, 6012, 6031, 6038, and 7805, these proposed regulations de- scribe a new requirement for certain U.S. persons that are the ultimate parent entity of an MNE group (U.S. MNE group) earning substantial annual revenue to file an annual report (U.S. CbC report) con- taining information on a country-by- country basis related to the MNE group’s income and taxes paid, together with cer- tain indicators of the location of economic activity within the MNE group. Because the reporting form is currently under de- velopment by the IRS and yet to be offi- cially numbered, it is referred to in this preamble and the proposed regulations as Form XXXX,Country-by-Country Re- port. The categories of information re- quired to be reported on the U.S. CbC report were developed in coordination with other member countries of the Group of Twenty (G20) and the Organisation for Economic Co-operation and Development (OECD). As discussed later in this pream- ble, the Treasury Department and the IRS have determined that the information re- quired under these proposed regulations will assist in better enforcement of U.S. tax laws. Bulletin No. 2016 –14April 4, 2016 535 The G20 and OECD members, in co- ordination with other countries, developed a model template for the collection of country-by-country information from large MNE groups. The model template is intended to promote consistent and effec- tive implementation of country-by- country reporting across tax jurisdictions (including countries and jurisdictions that are not countries but that have fiscal au- tonomy). The Treasury Department and the IRS anticipate that other tax jurisdic- tions will adopt information reporting re- quirements based on the model template that will mandate the filing of a country- by-country report (foreign CbC report) by MNE groups with an ultimate parent en- tity that is not a U.S. person (foreign MNE groups) that have substantial revenues. In developing these proposed regulations, the Treasury Department and the IRS de- termined that it is appropriate to use the model template as a guide because the model template was developed taking into account extensive consultations with stakeholders, including in particular U.S. MNE groups, in order to appropriately balance the benefits to tax administrations of collecting the information about an MNE group’s global operations against the compliance costs and burdens im- posed on MNE groups. These consulta- tions significantly affected both the scope of the information included in the model template as well as the flexibility afforded to MNE groups in determining how to compile that information in light of their different system capabilities. In addition, the model template reflects an agreed in- ternational standard for reporting by MNE groups that will promote consistency of reporting obligations across tax jurisdic- tions and reduce the risk that other coun- tries will depart from the agreed standard by imposing inconsistent and overlapping reporting obligations on U.S. MNE groups. In this respect, the Treasury De- partment and the IRS note that clear and widely adopted documentation rules for MNE groups also help to reduce compli- ance costs. While the proposed regula- tions generally are consistent with the in- ternational standard, the proposed regulations also are tailored to be consis- tent with the preexisting information re- porting requirements applicable to U.S. persons under sections 6001, 6011, 6012, 6031, and 6038. The Treasury Department and the IRS have determined that the information re- quired under these proposed regulations will assist in better enforcement of the federal income tax laws by providing the IRS with greater transparency regarding the operations and tax positions taken by U.S. MNE groups. In addition to this di- rect benefit expected from collecting U.S. CbC reports, as discussed in Part 2 of this preamble, pursuant to income tax conven- tions and other conventions and bilateral agreements relating to the exchange of tax information (collectively, information ex- change agreements), a U.S. CbC report filed with the IRS may be exchanged by the United States with other tax jurisdic- tions in which the U.S. MNE group oper- ates that have agreed to provide the IRS with foreign CbC reports filed in their jurisdiction by foreign MNE groups that have operations in the United States. For- eign CbC reports will provide the IRS with information that will assist the IRS in performing risk assessment of foreign MNE groups operating in the United States. In particular, it is expected that CbC reports filed by both U.S. MNE groups and foreign MNE groups (collectively CbC reports) will help the IRS perform high-level transfer pricing risk identifica- tion and assessment. The information in a CbC report will not itself constitute con- clusive evidence that transfer pricing practices are or are not consistent with the arm’s length standard. Accordingly, the information in a CbC report will not be used as a substitute for an appropriate transfer pricing determination based on a best method analysis (including a full comparability analysis of factors such as functions performed, resources employed, and risks assumed) as required by the arm’s length standard set forth in the reg- ulations under section 482, and transfer pricing adjustments will not be based solely on a CbC report. However, a CbC report may be used as the basis for making further inquiries into transfer pricing prac- tices or other tax matters in the course of an examination of a member of an MNE group, and adjustments may be based on additional information developed through those inquiries in accordance with appli- cable law. 2.Exchange of Information, Confidentiality, and Improper Use of Information Information reported pursuant to these proposed regulations is return information under section 6103. Section 6103 imposes strict confidentiality rules with respect to all return information. Moreover, section 6103(k)(4) allows the IRS to exchange return information with a competent au- thority of a tax jurisdiction only to the extent provided in, and subject to the terms and conditions of, an information exchange agreement. It is expected that the U.S. competent authority will enter into competent authority arrangements for the automatic exchange of CbC reports under the authority of information ex- change agreements to which the United States is a party. Consistent with established interna- tional standards, all of the information exchange agreements to which the United States is a party require the information exchanged to be treated as confidential by both parties, and disclosure and use of the information must be in accordance with the terms of the relevant information ex- change agreement. Information exchange agreements generally prohibit the parties from using any information received for any purpose other than for the administra- tion of taxes (e.g., assessment or collec- tion of, or enforcement or prosecution in respect of, the taxes covered by the infor- mation exchange agreement). Accord- ingly, under the terms of information ex- change agreements, neither tax jurisdiction is permitted to disclose the information received under the informa- tion exchange agreement or use such in- formation for any non-tax purpose. Under the contemplated competent authority ar- rangements for the exchange of CbC re- ports, the competent authorities of the United States and other tax jurisdictions intend to further limit the permissible uses of exchanged CbC reports to assessing high-level transfer pricing and other tax risks and, where appropriate, for eco- nomic and statistical analysis. Prior to entering into an information exchange agreement with another tax April 4, 2016Bulletin No. 2016 –14 536 jurisdiction, the Treasury Department and the IRS closely review the tax jurisdic- tion’s legal framework for maintaining confidentiality of taxpayer information and its track record of complying with that legal framework. In order to conclude an information exchange agreement with an- other tax jurisdiction, the Treasury De- partment and the IRS must be satisfied that the tax jurisdiction has the necessary legal safeguards in place to protect ex- changed information, such protections are enforced, and adequate penalties apply to any breach of that confidentiality. More- over, even when these conditions have been met and an information exchange agreement is in effect, the U.S. competent authority will notenter into a reciprocal automatic exchange of information relation- ship with a tax jurisdiction unless it has reviewed the tax jurisdiction’s policies and procedures regarding confidentiality protec- tions and has determined that such an ex- change relationship is appropriate. If the United States determines that a tax jurisdiction is not in compliance with confidentiality requirements, data safe- guards, and the appropriate use standards provided for under the information ex- change agreement or the competent au- thority arrangement, the United States will pause automatic exchange of CbC reports with that tax jurisdiction until such time as the United States is satisfied that the tax jurisdiction is meeting its obligations un- der the applicable information exchange or competent authority agreement or ar- rangement. Explanation of Provisions 1.U.S. Persons Required to File Form XXXX, Country-by-Country Report The proposed regulations generally re- quire a U.S. business entity that is the ultimate parent entity of a U.S. MNE group to file Form XXXX,Country-by- CountryReport. However, proposed § 1.6038–4(h) provides an exception from filing by a U.S. MNE group for an annual accounting period if the U.S. MNE group had revenues of less than $850,000,000 for the preceding annual ac- counting period. Generally, an ultimate parent entity of a U.S. MNE group is a U.S. business entity that controls a group of business entities, at least one of which is organized or tax resident outside of the United States, that are required to consol- idate their accounts for financial reporting purposes under U.S. generally accepted accounting principles (GAAP), or that would be required to consolidate their ac- counts if equity interests in the U.S. busi- ness entity were publicly traded on a U.S. securities exchange. For purposes of the proposed regulations, the term business entity means a person as defined in section 7701(a) that is not an individual, as well as a permanent establishment that pre- pares financial statements separate from those of its owner for financial reporting, regulatory, tax reporting, or internal man- agement control purposes. Under proposed § 1.6038–4(b)(6), a business entity generally is considered resident in a tax jurisdiction if, under the laws of that tax jurisdiction, the business entity is liable to tax therein based on place of management, place of organiza- tion, or another similar criterion. How- ever, a business entity will not be consid- ered resident in a tax jurisdiction if it is liable to tax in such jurisdiction solely with respect to income from sources in such jurisdiction, or capital situated in such jurisdiction. The proposed regula- tions also provide rules for determining the tax jurisdiction of residence of a busi- ness entity that is resident in more than one tax jurisdiction or that is a permanent establishment. Proposed § 1.6038–4(b)(4) defines a U.S. MNE group as a group of business entities, including the U.S. business entity that is the ultimate parent entity, that are required to consolidate their accounts un- der U.S. GAAP, or would be required to consolidate their accounts if equity inter- ests in the ultimate parent entity were pub- licly traded on a U.S. securities exchange. Generally, under U.S. GAAP, if an entity owns a majority voting interest in another legal entity, the majority owner must com- bine the financial statements of the majority-owned entity with its own finan- cial statements in consolidated financial statements. Financial Accounting Stan- dards Board,Accounting Standards Cod- ification 810 –10 –15, “Consolidation – Overall – Scope and Scope Exceptions.” A U.S. MNE group does not include busi- ness entities that are accounted for under the equity method (because those entities do not consolidate their accounts with the equity owner), notwithstanding that the equity owner’s proportionate share of the business income of such entities is in- cluded in the equity owner’s consolidated financial statements. The ultimate parent entity of a U.S. MNE group that is re- quired to file Form XXXX,Country-by- Country Report, may be required to con- solidate under U.S. GAAP one or more affiliated groups as defined in section 1504(a) that file a consolidated income tax return even though the ultimate parent en- tity is not an includible corporation as defined under section 1504(b) with re- spect to any of such consolidated groups. In such cases, the ultimate parent entity would report country-by-country informa- tion with respect to all such affiliated group entities (and any other business en- tities in the U.S. MNE group) on Form XXXX,Country-by-Country Report, and the parent corporations of the respective consolidated groups would not file a Form XXXX,Country-by-Country Report. The Treasury Department and the IRS request comments on whether additional guidance is needed for determining which U.S. persons must file Form XXXX, Country-by-Country Report, or which en- tities are considered constituent entities of the filer. Specifically, the Treasury De- partment and the IRS request comments on whether additional guidance on the definition of U.S. MNE group is necessary to address situations where U.S. GAAP or regulations governing securities publicly traded on a U.S. securities exchange (U.S. securities regulations) permit or require consolidated financial accounting for rea- sons other than majority ownership and situations, if any, where U.S. GAAP or U.S. securities regulations permit separate financial accounting of majority-owned enterprises. Additionally, consideration has been given to the possible need for an exception to filing some or all of the in- formation required on Form XXXX, Country-by-Country Report, for national security reasons. Requests by a U.S. per- son otherwise subject to the requirements to file Form XXXX,Country-by-Country Report, for an exception would require the Treasury Department and affected U.S. persons to coordinate with other federal agencies, such as the Department of De- fense, to determine whether such an ex- Bulletin No. 2016 –14April 4, 2016 537 ception is warranted. The Treasury De- partment and the IRS request comments with respect to the procedures that a U.S. person should be required to follow in order to demonstrate a national security reason to receive an exception from filing some or all of the information otherwise required by Form XXXX,Country-by- Country Report. Generally, a constituent entity will have a tax jurisdiction of residence as determined under proposed § 1.6038– 4(b)(6). However, a business entity that is treated as a partnership in the tax jurisdic- tion in which it is organized and that does not own or create a permanent establish- ment in another tax jurisdiction generally will have no tax jurisdiction of residence under the definition in proposed § 1.6038– 4(b)(6)(other than for purposes of deter- mining the ultimate parent entity of a U.S. MNE group). In these cases, it is expected that the partners will report their share of the partnership’s items in the partners’ respective tax jurisdictions of residence in order to determine the aggregate amounts reported on Form XXXX,Country-by-Country Report, re- gardless of whether the partnership has elected to be treated as an association for U.S. federal tax purposes. The Trea- sury Department and the IRS continue to consider whether a different rule is needed in the case of entities that are not treated as fiscally transparent in the owner or owners’ tax jurisdiction(s) of residence but are treated as fiscally transparent in the entity’s country of organization. The Treasury Department and the IRS request comments on the treatment of such entities in the CbC Report. In the case of a permanent es- tablishment owned or created by a busi- ness entity that is treated as a partner- ship in the tax jurisdiction in which it is organized, the tax jurisdiction of resi- dence of the permanent establishment for purposes of Form XXXX,Country- by-Country Report, is the location of the permanent establishment regardless of whether the permanent establishment is treated as a permanent establishment of the partnership or of the partners of the partnership by the tax jurisdiction in which the permanent establishment is located. 2.Information Required on Form XXXX, Country-by-Country Report A.Constituent entity information. Proposed § 1.6038–4(d)(1) describes the information that Form XXXX, Country-by-Country Report, may require with respect to each constituent entity of the U.S. MNE group. Generally, each business entity of a U.S. MNE group is considered a separate constituent entity of that U.S. MNE group; however, the term constituent entity does not include a for- eign corporation or foreign partnership for which the ultimate parent entity is not required to furnish information under sec- tion 6038(a), determined without regard to § 1.6038–2(j) and § 1.6038–3(c) (excep- tions to information reporting for certain constructive owners and when more than one person otherwise would be required to submit the same information), or any per- manent establishment of such foreign cor- poration or foreign partnership. For exam- ple, if none of the constituent entities owned by the ultimate parent entity di- rectly, indirectly, or constructively owns enough stock in a foreign corporation to be considered a United States shareholder of a controlled foreign corporation, the foreign corporation is not a constituent entity. However, if the ultimate parent en- tity of a U.S. MNE group constructively owns more than 50 percent of the voting stock of a foreign corporation because a wholly-owned domestic subsidiary di- rectly owns such stock and the domestic subsidiary reports information with re- spect to theforeign corporation pursuant to section 6038(a), the foreign corporation is a constituent entity of the U.S. MNE group notwithstanding that under § 1.6038–2(j)(2) the ultimate parent entity itself is not re- quired to report information under section 6038(a). The IRS requests comments on whether additional guidance is needed re- garding which business entities of a U.S. MNE group are considered constituent en- tities, particularly with respect to the exclu- sion of foreign corporations and partner- ships for which an ultimate parent entity would not be required to furnish information under section 6038(a) without regard to §§ 1.6038–2(j) and 1.6038–3(c). The information required with respect to each constituent entity includes identi- fication of the tax jurisdiction, if any, in which the constituent entity is resident for tax purposes, the tax jurisdiction in which the constituent entity is organized or incor- porated (if different from the tax jurisdiction of residence), and the main business activity or activities of the constituent entity. The tax identification number of each constituent entity used by the tax administration in its jurisdiction of tax residence also will be reported on Form XXXX,Country-by- Country Report. B.Financial and employee information. Proposed § 1.6038–4(d)(2) requires certain information to be reported for each tax jurisdiction in which one or more con- stituent entities of the MNE group is res- ident. The information for each tax juris- diction must be presented on Form XXXX,Country-by-Country Report,as an aggregate of the requested information from all of the constituent entities that are resident in the tax jurisdiction. In addition, proposed § 1.6038–4(d)(3)(i) provides that the information must be reported, in the aggregate, for any constituent entity or entities of a U.S. MNE group that have no tax jurisdiction of residence. Specifically, the information required to be reported for each tax jurisdiction includes: (i) revenues generated from transactions with other constituent entities of the U.S. MNE group; (ii) revenues not generated from transactions with other constituent entities of the U.S. MNE group; (iii) profit (or loss) before income tax; (iv) income tax paid on a cash basis to all tax jurisdictions, including any taxes withheld on payments received; (v) ac- crued tax expense recorded on taxable profits (or losses), reflecting only the op- erations in the relevant annual accounting period and excluding deferred taxes or provisions for uncertain tax positions; (vi) stated capital; (vii)accumulated earnings; (viii) number of employees on a full-time equivalent basis in the relevant tax jurisdic- tion; and (ix) net book value of tangible assets other than cash or cash equivalents. The Treasury Department and the IRS have sought to minimize deviations from the model template that was developed by G20 and OECD member countries based on extensive consultations with stakehold- ers. Nonetheless, the Treasury Depart- April 4, 2016Bulletin No. 2016 –14 538 ment and the IRS understand that there may be areas where further clarification or refinement is warranted to take into ac- count the purpose of these proposed reg- ulations to collect relevant information for high-level risk assessment while minimiz- ing the burdens imposed. For example, the report seeks information on the taxes paid or accrued by MNE groups and their con- stituent entities on taxable income earned in the relevant accounting period. The Treasury Department and the IRS specif- ically solicit comments on the manner in which the proposed regulations request that information. The Treasury Depart- ment and the IRS also request comments on whether any of the other items should be further refined or whether additional guidance is needed with respect to how to determine any of the items in proposed § 1.6038–4(d)(2)(i)–(ix). Proposed § 1.6038–4(d)(3)(iii) pro- vides that the number of employees on a full-time equivalent basis may be deter- mined as of the end of the accounting period, on the basis of average employ- ment levels for the annual accounting pe- riod, or on any other reasonable basis, and that independent contractors that partici- pate in the ordinary operating activities of a constituent entity may be considered employees of such constituent entity for this purpose. The number of full-time equivalent employees in a tax jurisdiction of residence should be determined by ref- erence to the employees that perform their activities for the U.S. MNE group within such tax jurisdiction of residence. U.S. MNE groups should use a reasonable ba- sis to determine the tax jurisdiction of residence for which to report employees that perform activities for the U.S. MNE group in more than one tax jurisdiction or in a tax jurisdiction in which none of the constituent entities of the U.S. MNE group is resident. For example, a reason- able basis may be to report a travelling employee as part of the home office juris- diction, as part of the tax jurisdiction in which the travelling employee spends the majority of his or her time, or as a fraction of one full-time equivalent employee in multiple tax jurisdictions based on the em- ployee’s time spent working in those ju- risdictions. The Treasury Department and the IRS request comments on whether guidance is needed regarding the treat- ment of other employment situations. The number of employees that a U.S. MNE group has in a particular tax jurisdiction should be determined on a consistent basis across entities, tax jurisdictions in which the U.S. MNE operates, and from year to year. It is not expected that the basis on which a U.S. MNE group determines the number of employees in a tax jurisdiction of residence will change from year to year. However, it is expected that Form XXXX,Country-by-Country Report, will provide a section for additional informa- tion that the ultimate parent entity of the U.S. MNE group will use to explain, among other things, any new approach adopted to determine the number of em- ployees and why it was necessary or ap- propriate. Proposed § 1.6038–4(e)(2) provides that the financial information reported on Form XXXX,Country-by-Country Re- port, may be based on certified financial statements, books and records maintained with respect to each constituent entity, or records used for tax reporting purposes. It is not necessary to reconcile the revenue, profit, and tax reported in the aggregate or with respect to a specific tax jurisdiction on Form XXXX,Country-by-Country Re- port, to the consolidated financial state- ments of the U.S. MNE group or to the tax returns filed in any particular tax jurisdic- tion. Additionally, there is no need to make adjustments for differences in ac- counting principles applied from tax juris- diction to tax jurisdiction. It is expected that Form XXXX,Country-by-Country Report, will include a section to provide additional information, including a brief description of the sources of data used in preparing the form, and, if a change is made in the source of data used from year to year, an explanation of the reasons for the change and its consequences. Permis- sion to change the accounting principles, to make new or different adjustments for differences in accounting principles, or to change the source of data used in prepar- ing Form XXXX,Country-by-Country Report, is not required. C.Template for Form XXXX, Country- by-Country Report. The template on which Form XXXX, Country-by-Country Report, will be based is provided below. Bulletin No. 2016 –14April 4, 2016 539 Name of the MNE group: Fiscal year concerned: TaxConstitueTaxMain business activity(ies) Jurisdiction Entities resident in the Tax Jurisdiction Jurisdiction of organiza- tion or incor- poration if different from Tax Jurisdic- tion of Resi- dence Research and Development Holding or Managing intellectual property Purchasing or Procurement Manufacturing or Production Sales, Marketing, or Distribution Administrative, Management or Support Services Provision of Services to unrelated parties Internal Group Finance Regulated Financial Services Insurance Holding shares or other equity instruments Dormant Other* 1. 2. 3. 1. 2. 3. *Please specify the nature of the activity of the constituent entity in the “Additional Information” section. Name of the MNE group: Fiscal year concerned: Currency used: Tax Juris- diction RevenuesProfit (Loss) Before In- come Tax Income Tax Paid (on cash basis) Income Tax Ac- crued – Current Year Stated Capital Accumu- lated Earn- ings Number of Em- ployees Tangible Assets other than Cash and Cash Equiva- lents Unrelated Party Related Party Total April 4, 2016Bulletin No. 2016 –14 540 Name of the MNE group: Fiscal year concerned: Additional Information.Please include any further brief information or explanation you consider necessary or that would facilitate the understanding of the compulsory information provided in the Country-by-Country Report. 3.Manner of Filing and Maintenance of Records for Form XXXX, Country-by- Country Report. Proposed § 1.6038–4(f) requires that Form XXXX,Country-by-Country Re- port, be filed with the ultimate parent en- tity’s timely-filed income tax return (with extensions). The proposed regulations do not require any U.S. business entity to provide notification that it is a constituent entity of a U.S. MNE group that is re- quired to file a Form XXXX,Country-by- Country Report. While a U.S. business entity is not re- quired to reconcile information reported on Form XXXX,Country-by-Country Re- port, with its financial statements or in- come tax returns, proposed § 1.6038–4(g) provides that a U.S. person required to file as an ultimate parent entity of a U.S. MNE group must maintain records to support the information provided on Form XXXX, Country-by-Country Report. Proposed Effective/Applicability Date These regulations are proposed to be applicable to taxable years of ultimate parent entities of US MNE groups that begin on or after the date of publication of the Treasury decision adopting these rules as final regulations in theFederal Regis- terand that include annual accounting periods determined under section 6038(e)(4) of all foreign constituent enti- ties and taxable years of all domestic con- stituent entities beginning on or after the date of publication of the Treasury deci- sion adopting these rules as final regula- tions in theFederal Register. Special Analyses Certain IRS regulations, including this one, are exempt from the requirements of Executive Order 12866, as supplemented and reaffirmed by Executive Order 13563. Therefore, a regulatory impact assessment is not required. It also has been deter- mined that section 553(b) and (d) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regula- tions. The IRS intends that the information collection requirements in these proposed regulations will be satisfied by submitting a new reporting form with an income tax return. The new reporting form has not yet been numbered and is referred to as Form XXXX,Country-by-Country Report,in this Preamble and the proposed regula- tions. For purposes of the Paperwork Re- duction Act, the reporting burden associ- ated with the collection of information in these proposed regulations will be re- flected in the OMB Form 83–1,Paper- work Reduction Act Submission, associ- ated with Form XXXX,Country-by- Country Report. It is hereby certified that this regulation will not have a significant economic im- pact on a substantial number of small en- tities within the meaning of section 601(6) of the Regulatory Flexibility Act (5 U.S.C. chapter 6). Accordingly, a regula- tory flexibility analysis is not required. This certification is based on the fact that these regulations will only affect U.S. cor- porations, partnerships, and trusts that have foreign operations when the com- bined annual revenue of the business en- tities owned by the U.S. person meets or exceeds $850,000,000. Pursuant to sec- tion 7805(f), these regulations have been submitted to the Chief Counsel for Advo- cacy of the Small Business Administra- tion for comment on their impact on small business. 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” heading. The Treasury Department and the IRS request comments on aspects of the proposed rules for which additional guidance is desired. All comments will be available at www.regulations.gov or upon request. A public hearing will be sched- uled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, then notice of the date, time, and place for the public hearing will be published in theFederal Register. Drafting Information The principal author of these proposed regulations is Melinda E. Harvey of the Office of Associate Chief Counsel (Inter- national). However, other personnel from the IRS and the Department of the Trea- sury participated in their development. ***** Proposed Amendments to the Regulations Accordingly, 26 CFR part 1 is pro- posed to be amended as follows: PART 1—INCOME TAXES Paragraph 1. The authority citation for part 1 is amended by adding the following entry in numerical order to read in part as follows: Authority: 26 U.S.C. 7805*** ***** Section 1.6038–4 also issued under 26 U.S.C. 6038. ***** Par. 2. Section 1.6038–4 is added to read as follows: § 1.6038 – 4 Information returns required of certain United States persons with respect to such person’s U.S. multinational enterprise group. (a)Requirement of return. Except as provided in paragraph (h) of this section, every United States person (U.S. person) that is an ultimate parent entity of a U.S. Bulletin No. 2016 –14April 4, 2016 541 multinational enterprise (MNE) group as defined in paragraph (b)(1) of this section must make an annual return on Form XXXX,Country-by-Country Report, set- ting forth the information described in this section and any other information re- quired by Form XXXX,Country-by- Country Report, with respect to each an- nual accounting period described in paragraph (c) of this section. (b)Definitions—(1)Ultimate parent entity of a U.S. MNE group. An ultimate parent entity of a U.S. MNE group is a U.S. business entity that: (i) Owns directly or indirectly a suffi- cient interest in one or more other busi- ness entities, at least one of which is or- ganized or tax resident in a tax jurisdiction other than the United States, such that the U.S. business entity is required to consol- idate the accounts of the other business entities with its own accounts under U.S. generally accepted accounting principles, or would be so required if equity interests in the U.S. business entity were publicly traded on a U.S. securities exchange; and (ii) Is not owned directly or indirectly by another business entity that consoli- dates the accounts of such U.S. business entity with its own accounts under gener- ally accepted accounting principles in the other business entity’s tax jurisdiction of residence, or would be so required if eq- uity interests in the other business entity were traded on a public securities ex- change in its tax jurisdiction of residence. (2)Business entity. For purposes of this section, a business entity is a person as defined in section 7701(a)(1) that is not an individual, and includes any entity that has a single owner and that is disregarded as a separate entity from its owner under § 301.7701–3 of this chapter. Also for purposes of this section, the term business entity includes a business establishment in a jurisdiction that is treated as a perma- nent establishment under an income tax convention to which that jurisdiction is a party or that would be treated as a perma- nent establishment under the Organisation for Economic Co-operation and Develop- ment (OECD) Model Tax Convention on Income and on Capital 2014 and that pre- pares financial statements separate from those of its owner for financial reporting, regulatory, tax reporting, or internal man- agement control purposes. (3)U.S. business entity. A U.S. busi- ness entity is a business entity that is organized or has its tax jurisdiction of residence in the United States. (4)U.S. MNE group. A U.S. MNE group comprises the ultimate parent entity of a U.S. MNE group as defined in para- graph (b)(1) of this section and all of the business entities required to consolidate their accounts with the ultimate parent entity’s accounts under U.S. generally ac- cepted accounting principles, or that would be so required if equity interests in the ultimate parent entity were publicly traded on a U.S. securities exchange, re- gardless of whether any such business en- tities could be excluded from consolida- tion solely on size or materiality grounds. (5)Constituent entity. With respect to a U.S. MNE group, a constituent entity is any separate business entity of such U.S. MNE group, except that the term constit- uent entity does not include a foreign cor- poration or foreign partnership for which the ultimate parent entity is not required to furnish information under section 6038(a) (determined without regard to § 1.6038– 2(j) and § 1.6038–3(c)) or any permanent establishment of such foreign corporation or foreign partnership. (6)Tax jurisdiction of residence. For purposes of this section, a tax jurisdiction is a country or a jurisdiction that is not a country but that has fiscal autonomy. A business entity is considered a resident in a tax jurisdiction if, under the laws of that tax jurisdiction, the business entity is lia- ble to tax therein based on place of man- agement, place of organization, or another similar criterion. However, a business en- tity will not be considered a resident in a tax jurisdiction if such business entity is liable to tax in such tax jurisdiction solely with respect to income from sources in such tax jurisdiction, or capital situated in such tax jurisdiction. If a business entity is resident in more than one tax jurisdiction, then the applicable income tax convention rules, if any, should be applied to deter- mine the business entity’s tax jurisdiction of residence. If a business entity is resi- dent in more than one tax jurisdiction and no applicable income tax convention ex- ists between those tax jurisdictions, or if the applicable income tax convention pro- vides that the determination of residence is based on a determination by the com- petent authorities of the relevant tax juris- dictions and no such determination has been made, the business entity’s tax juris- diction of residence is the tax jurisdiction of the business entity’s place of effective management determined in accordance with Article 4 of the OECD Model Tax Convention on Income and on Capital 2014. The tax jurisdiction of residence of a permanent establishment is the jurisdic- tion in which the permanent establishment is located. If a business entity does not have a tax jurisdiction of residence, then solely for purposes of paragraph (b)(1) of this section, the tax jurisdiction of resi- dence is the business entity’s country of organization. (7)Applicable financial statements.An applicable financial statement is a certified audited financial statement that is accom- panied by a report of an independent cer- tified public accountant or similarly qual- ified independent professional that is used for purposes of reporting to shareholders, partners, or similar persons; for purposes of reporting to creditors in connection with securing or maintaining financing; or for any other substantial non-tax purpose. (c)Period covered by return. The in- formation required under paragraph (d) of this section with respect to a U.S. MNE group must be furnished for the annual accounting period with respect to which the ultimate parent entity prepares its ap- plicable financial statements ending with or within the ultimate parent entity’s tax- able year for which the Form XXXX, Country-by-CountryReport, is filed. However, if the ultimate parent entity does not prepare applicable financial statements that consolidate the accounts of all constituent entities, the ultimate par- ent entity may provide the information required under paragraph (d) of this sec- tion based on applicable financial state- ments of constituent entities for their ac- counting period or periods that end with or within the ultimate parent entity’s tax- able year. (d)Contents of return—(1)Constituent entity information. The return on Form XXXX,Country-by-Country Report, must contain so much of the following informa- tion with respect to each constituent en- tity, and in such form or manner, as the form prescribes: April 4, 2016Bulletin No. 2016 –14 542 (i) The tax jurisdiction, if any, in which the constituent entity is resident for tax purposes; (ii) The tax jurisdiction in which the constituent entity is organized or incorpo- rated (if different from the tax jurisdiction of residence); (iii) The taxidentification number, if any, used for the constituent entity by the tax administration of the constituent entity’s tax jurisdiction of residence; and (iv) The main business activity or ac- tivities of the constituent entity. (2)Tax jurisdiction of residence infor- mation. The return on Form XXXX, Country-by-Country Report, will contain so much of the following information with respect to each tax jurisdiction in which one or more constituent entities of a U.S. MNE group is resident, and in such form or manner, as the form prescribes: (i) Revenues generated from transac- tions with other constituent entities; (ii) Revenues not generated from trans- actions with other constituent entities; (iii) Profit or loss before income tax; (iv) Total income tax paid on a cash basis to all tax jurisdictions, and any taxes withheld on payments received by the constituent entities; (v) Total accrued taxexpense re- corded on taxable profits or losses, re- flecting only operations in the relevant annual accounting period and excluding deferred taxes or provisions for uncer- tain tax liabilities; (vi) Stated capital of all the constituent entities, except that the stated capital of a permanent establishment must be reported by the legal entity of which it is a perma- nent establishment unless there is a de- fined capital requirement in the permanent establishment tax jurisdiction for regula- tory purposes; (vii) Total accumulated earnings, ex- cept that accumulated earnings of a per- manent establishment must be reported by the legal entity of which it is a permanent establishment; (viii) Total number of employees on a full-time equivalent basis in the relevant tax jurisdiction; and (ix) Net book value of tangible assets other than cash or cash equivalents. (3)Special rules—(i)Constituent en- tity with no tax jurisdiction of residence. The information listed in paragraph (d)(2) of this section also must be provided, in the aggregate, for any constituent entity or entities that have no tax jurisdiction of residence. (ii)Definition of revenue. For purposes of this section, the term revenue in- cludes all amounts of revenue, including revenue from sales of inventory and property, services, royalties, interest, and premiums. The term revenue does not include payments received from other constituent entities that are treated as dividends in the payor’s tax jurisdic- tion of residence. (iii)Number of employees. For pur- poses of this section, the number of em- ployees on a full-time equivalent basis may be reported as of the end of the accounting period, on the basis of average employment levels for the annual ac- counting period, or on any other reason- able basis consistently applied across tax jurisdictions and from year to year. Inde- pendent contractors participating in the ordinary operating activities of a constit- uent entity may be reported as employees of such constituent entity. Reasonable rounding or approximation of the number of employees is permissible, provided that such rounding or approximation does not materially distort the relative distribution of employees across the various tax juris- dictions. Consistent approaches should be applied from year to year and across en- tities. (iv)Income tax paid and accrued tax expense of permanent establishment.In the case of a constituent entity that is a permanent establishment, the amount of income tax paid and the amount of ac- crued tax expense referred to in para- graphs (d)(2)(iv) and (v) of this section should not include the income tax paid or tax expense accrued by the business entity of which the permanent establishment would be a part but for the second sen- tence of paragraph (b)(2) of this section in that business entity’s tax jurisdiction of residence on the income derived by the permanent establishment. (v)Certain transportation income.Ifa constituent entity of a U.S. MNE group derives income from international trans- portation or transportation in inland wa- terways that is covered by income tax convention provisions that are specific to such income and under which the taxing rights on such income are allocated exclu- sively to one tax jurisdiction, then the U.S. MNE group should report the information required under paragraph (d)(2) of this section with respect to such income for the tax jurisdiction to which the relevant income tax convention provisions allocate these taxing rights. (e)Reporting of financial amounts.— (1)Reporting in U.S. dollars required. All amounts furnished under paragraph (d)(2) of this section, other than paragraph (d)(2)(viii) of this section, must be ex- pressed in U.S. dollars. If an exchange rate is used other than in accordance with U.S. generally accepted accounting prin- ciples for conversion to U.S. dollars, the exchange rate must be indicated. (2)Sources of financial amounts. All amounts furnished under paragraph (d)(2) of this section, other than paragraph (d)(2)(viii) of this section, should be based on applicable financial statements, books and records maintained with respect to the constituent entity, or records used for tax reporting purposes. (f)Time and manner for filing. Returns on Form XXXX,Country-by-Country Re- port, required under paragraph (a) of this section for a taxable year will be filed with the ultimate parent entity’s income tax return for the taxable year on or before the due date (including extensions) for filing that person’s income tax return. (g)Maintenance of records. The U.S. person filing Form XXXX,Country-by- Country Report, as an ultimate parent en- tity of a U.S. MNE group must maintain records to support the information pro- vided on Form XXXX,Country-by- Country Report. However, the U.S. per- son is not required to have or maintain records that reconcile the amounts pro- vided on Form XXXX,Country-by- Country Report,with the tax returns of any tax jurisdiction or applicable financial statements. (h)Exceptions to furnishing informa- tion. A U.S. person that is an ultimate parent entity of a U.S. MNE group is not required to report information under this section for an annual accounting period described in paragraph (c) of this section if the annual revenue of the U.S. MNE group for the immediately preceding an- Bulletin No. 2016 –14April 4, 2016 543 nual accounting period was less than $850,000,000. (j)Effective/applicability dates. The rules of this section apply to taxable years of ultimate parent entities of U.S. MNE groups that begin on or after the date of publication of the Treasury decision adopting these rules as final regulations in theFederal Registerand that include an- nual accounting periods determined under section 6038(e)(4) of all foreign constitu- ent entities and taxable years of all domes- tic constituent entities beginning on or after the date of publication of the Trea- sury decision adopting these rules as final regulations in theFederal Register. John Dalrymple, Deputy Commissioner for Services and Enforcement. (Filed by the Office of the Federal Register on December 21, 2015, 4:15 p.m., and published in the issue of the Federal Register for December 23, 2015, 80 F.R. 79795) April 4, 2016Bulletin No. 2016 –14 544 Definition of Terms Revenue rulings and revenue procedures (hereinafter referred to as “rulings”) that have an effect on previous rulings use the following defined terms to describe the effect: Amplifieddescribes a situation where no change is being made in a prior pub- lished position, but the prior position is being extended to apply to a variation of the fact situation set forth therein. Thus, if an earlier ruling held that a principle ap- plied to A, and the new ruling holds that the same principle also applies to B, the earlier ruling is amplified. (Compare with modified, below). Clarifiedis used in those instances where the language in a prior ruling is being made clear because the language has caused, or may cause, some confu- sion. It is not used where a position in a prior ruling is being changed. Distinguisheddescribes a situation where a ruling mentions a previously pub- lished ruling and points out an essential difference between them. Modifiedis used where the substance of a previously published position is being changed. Thus, if a prior ruling held that a principle applied to A but not to B, and the new ruling holds that it applies to both A and B, the prior ruling is modified because it corrects a published position. (Compare with amplified andclarified, above). Obsoleteddescribes a previously pub- lished ruling that is not considered deter- minative with respect to future transac- tions. This term is most commonly used in a ruling that lists previously published rul- ings that are obsoleted because of changes in laws or regulations. A ruling may also be obsoleted because the substance has been included in regulations subsequently adopted. Revokeddescribes situations where the position in the previously published ruling is not correct and the correct position is being stated in a new ruling. Supersededdescribes a situation where the new ruling does nothing more than restate the substance and situation of a previously published ruling (or rulings). Thus, the term is used to republish under the 1986 Code and regulations the same position published under the 1939 Code and regulations. The term is also used when it is desired to republish in a single ruling a series of situations, names, etc., that were previously published over a pe- riod of time in separate rulings. If the new ruling does more than restate the sub- stance of a prior ruling, a combination of terms is used. For example, modified and supersededdescribes a situation where the substance of a previously published ruling is being changed in part and is continued without change in part and it is desired to restate the valid portion of the previously published ruling in a new ruling that is self contained. In this case, the previously published ruling is first modified and then, as modified, is superseded. Supplementedis used in situations in which a list, such as a list of the names of countries, is published in a ruling and that list is expanded by adding further names in subsequent rulings. After the original ruling has been supplemented several times, a new ruling may be published that includes the list in the original ruling and the additions, and supersedes all prior rul- ings in the series. Suspendedis used in rare situations to show that the previous published rulings will not be applied pending some future action such as the issuance of new or amended regulations, the outcome of cases in litigation, or the outcome of a Service study. Abbreviations The following abbreviations in current use and formerly used will appear in ma- terial published in the Bulletin. A—Individual. Acq.—Acquiescence. B—Individual. BE—Beneficiary. BK—Bank. B.T.A.—Board of Tax Appeals. C—Individual. C.B.—Cumulative Bulletin. CFR—Code of Federal Regulations. CI—City. COOP—Cooperative. Ct.D.—Court Decision. CY—County. D—Decedent. DC—Dummy Corporation. DE—Donee. Del. Order—Delegation Order. DISC—Domestic International Sales Corporation. DR—Donor. E—Estate. EE—Employee. E.O.—Executive Order. ER—Employer. ERISA—Employee Retirement Income Security Act. EX—Executor. F—Fiduciary. FC—Foreign Country. FICA—Federal Insurance Contributions Act. FISC—Foreign International Sales Company. FPH—Foreign Personal Holding Company. F.R.—Federal Register. FUTA—Federal Unemployment Tax Act. FX—Foreign corporation. G.C.M.—Chief Counsel’s Memorandum. GE—Grantee. GP—General Partner. GR—Grantor. IC—Insurance Company. I.R.B.—Internal Revenue Bulletin. LE—Lessee. LP—Limited Partner. LR—Lessor. M—Minor. Nonacq.—Nonacquiescence. O—Organization. P—Parent Corporation. PHC—Personal Holding Company. PO—Possession of the U.S. PR—Partner. PRS—Partnership. PTE —Prohibited Transaction Exemption. Pub. L.—Public Law. REIT—Real Estate Investment Trust. Rev. Proc.—Revenue Procedure. Rev. Rul.—Revenue Ruling. S—Subsidiary. S.P.R.—Statement of Procedural Rules. Stat.—Statutes at Large. T—Target Corporation. T.C.—Tax Court. T.D.—Treasury Decision. TFE—Transferee. TFR—Transferor. T.I.R.—Technical Information Release. TP—Taxpayer. TR—Trust. TT—Trustee. U.S.C.—United States Code. X—Corporation. Y—Corporation. Z—Corporation. Bulletin No. 2016 –14April 4, 2016 i Numerical Finding List 1 Bulletins 2016–1 through 2016–14 Announcements: 2016-1, 2016-3 I.R.B.283 2016-2, 2016-3 I.R.B.283 2016-3, 2016-4 I.R.B.294 2016-4, 2016-6 I.R.B.313 2016-5, 2016-8 I.R.B.356 2016-6, 2016-10 I.R.B.409 2016-7, 2016-8 I.R.B.356 2016-8, 2016-9 I.R.B.367 2016-9, 2016-9 I.R.B.367 2016-10, 2016-9 I.R.B.367 2016-11, 2016-10 I.R.B.411 2016-13, 2016-13 I.R.B.514 2016-14, 2016-14 I.R.B.535 Notices: 2016-1, 2016-2 I.R.B.265 2016-2, 2016-2 I.R.B.265 2016-3, 2016-3 I.R.B.278 2016-4, 2016-3 I.R.B.279 2016-5, 2016-6 I.R.B.302 2016-6, 2016-4 I.R.B.287 2016-7, 2016-5 I.R.B.296 2016-8, 2016-6 I.R.B.304 2016-9, 2016-6 I.R.B.306 2016-10, 2016-6 I.R.B.307 2016-11, 2016-6 I.R.B.312 2016-12, 2016-6 I.R.B.312 2016-13, 2016-7 I.R.B.314 2016-14, 2016-7 I.R.B.315 2016-15, 2016-13 I.R.B.486 2016-16, 2016-7 I.R.B.318 2016-17, 2016-9 I.R.B.358 2016-18, 2016-9 I.R.B.359 2016-19, 2016-9 I.R.B.362 2016-20, 2016-9 I.R.B.362 2016-21, 2016-12 I.R.B.465 2016-22, 2016-13 I.R.B.488 2016-23, 2016-13 I.R.B.490 2016-24, 2016-13 I.R.B.492 2016-25, 2016-13 I.R.B.493 2016-26, 2016-14 I.R.B.533 Proposed Regulations: REG-118867-10, 2016-10 I.R.B.411 REG-147310-12, 2016-7 I.R.B.336 REG-150349-12, 2016-11 I.R.B.440 REG-138344-13, 2016-4 I.R.B.294 REG-123867-14, 2016-12 I.R.B.484 REG-125761-14, 2016-7 I.R.B.322 REG-100861-15, 2016-8 I.R.B.356 REG-109822-15, 2016-14 I.R.B.535 REG-127923-15, 2016-12 I.R.B.473 REG-129067-15, 2016-10 I.R.B.421 Proposed Regulations:—Continued REG-134122-15, 2016-7 I.R.B.334 REG-101701-16, 2016-9 I.R.B.368 Revenue Procedures: 2016-1, 2016-1 I.R.B.1 2016-2, 2016-1 I.R.B.102 2016-3, 2016-1 I.R.B.126 2016-4, 2016-1 I.R.B.142 2016-5, 2016-1 I.R.B.188 2016-6, 2016-1 I.R.B.200 2016-7, 2016-1 I.R.B.239 2016-8, 2016-1 I.R.B.243 2016-10, 2016-2 I.R.B.270 2016-11, 2016-2 I.R.B.274 2016-13, 2016-4 I.R.B.290 2016-14, 2016-9 I.R.B.365 2016-16, 2016-10 I.R.B.394 2016-15, 2016-11 I.R.B.435 2016-17, 2016-11 I.R.B.436 2016-19, 2016-13 I.R.B.497 2016-20, 2016-13 I.R.B.499 2016-21, 2016-14 I.R.B.533 Revenue Rulings: 2016-1, 2016-2 I.R.B.262 2016-2, 2016-4 I.R.B.284 2016-3, 2016-3 I.R.B.282 2016-4, 2016-6 I.R.B.299 2016-5, 2016-8 I.R.B.344 2016-6, 2016-14 I.R.B.519 2016-7, 2016-10 I.R.B.391 2016-8, 2016-11 I.R.B.426 2016-9, 2016-14 I.R.B.530 Treasury Decisions: 9745, 2016-2 I.R.B.256 9746, 2016-14 I.R.B.515 9748, 2016-8 I.R.B.347 9749, 2016-10 I.R.B.373 9750, 2016-10 I.R.B.374 9751, 2016-10 I.R.B.379 9752, 2016-10 I.R.B.385 9753, 2016-11 I.R.B.426 9754, 2016-11 I.R.B.432 9755, 2016-12 I.R.B.442 9756, 2016-12 I.R.B.450 9757, 2016-12 I.R.B.462 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–27 through 2015–52 is in Internal Revenue Bulletin 2015–52, dated December 28, 2015. April 4, 2016Bulletin No. 2016 –14 ii Finding List of Current Actions on Previously Published Items 1 Bulletins 2016–1 through 2016–14 Announcements: 2007-21 Modified by Ann. 2016-1, 2016-3 I.R.B.283 Notices: 2005-50 Modified by Notice 2016-2, 2016-2 I.R.B.265 2007-59 Revoked by Notice 2016-16, 2016-7 I.R.B.318 2013-54 Supplemented by Notice 2016-17, 2016-9 I.R.B.358 2014-79 Superseded by Notice 2016-1, 2016-2 I.R.B.265 2015-52 Supplemented by Notice 2016-17, 2016-9 I.R.B.358 2015-87 Supplemented by Notice 2016-17, 2016-9 I.R.B.358 Revenue Procedures: 2003-36 Superseded by Rev. Proc. 2016-19, 2016-13 I.R.B.497 2014-56 Superseded by Rev. Proc. 2016-20, 2016-13 I.R.B.499 2015-1 Superseded by Rev. Proc. 2016-2, 2016-1 I.R.B.1 2015-2 Superseded by Rev. Proc. 2016-2, 2016-1 I.R.B.102 2015-3 Superseded by Rev. Proc. 2016-3, 2016-1 I.R.B.126 2015-5 Superseded by Rev. Proc. 2016-5, 2016-1 I.R.B.142 Revenue Procedures:—Continued 2015-7 Superseded by Rev. Proc. 2016-7, 2016-1 I.R.B.188 2015-8 Superseded by Rev. Proc. 2016-8, 2016-1 I.R.B.200 2015-9 Superseded by Rev. Proc. 2016-5, 2016-1 I.R.B.239 2015-10 Superseded by Rev. Proc. 2016-10, 2016-2 I.R.B.270 2015-22 Superseded by Rev. Proc. 2016-8, 2016-01 I.R.B.243 2015-53 Modified by Rev. Proc. 2016-11, 2016-2 I.R.B.274 Revenue Rulings: 2005-3 Modified by Rev. Rul. 2016-8, 2016-11 I.R.B.426 2008-15 Revoked by Rev. Rul. 2016-3, 2016-3 I.R.B.282 1 A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–27 through 2015–52 is in Internal Revenue Bulletin 2015–52, dated December 28, 2015. Bulletin No. 2016 –14April 4, 2016 iii INTERNAL REVENUE BULLETIN The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue Bulletins are available atwww.irs.gov/irb/. We Welcome Comments About the Internal Revenue Bulletin If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov) or write to the Internal Revenue Service, Publishing Division, IRB Publishing Program Desk, 1111 Constitution Ave. NW, IR-6230 Washington, DC 20224. Internal Revenue Service Washington, DC 20224 Official Business Penalty for Private Use, $300
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