Internal Revenue Bulletin 2016-35 (PDF rendition): IRS Revenue Rulings

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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.
EMPLOYEE PLANS
Notice 2016–47 page 276.
This notice provides guidance on the corporate bond monthly
yield curve, the corresponding spot segment rates used under
§ 417(e)(3), and the 24-month average segment rates under
§ 430(h)(2) of the Internal Revenue Code. In addition, this
notice provides guidance as to the interest rate on 30-year
Treasury securities under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008 and the 30-year Treasury
weighted average rate under § 431(c)(6)(E)(ii)(I).
ESTATE TAX
Rev. Rul. 2016–19 page 273.
The 2016 interest rates to be used in computing the special
use value of farm real property for which an election is made
under section 2032A of the Code are listed for estate of
decedents.
ADMINISTRATIVE
T.D. 9781 page 274.
This document contains final regulations that adopt without
change proposed regulations that, by cross-reference to tem-
porary regulations, proposed to reduce the amount of the user
fee to obtain or renew a PTIN from $50 to $33 for each original
and renewal application.
Finding Lists begin on page ii.
Bulletin No. 2016–35
August 29, 2016

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.
August 29, 2016Bulletin No. 2016–35

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 2032A—Valuation
of Certain Farm, Etc., Real
Property
26 CFR 20.2032A– 4: Method of valuing farm real
property.
Rev. Rul. 2016–19
This revenue ruling contains a list of
the average annual effective interest rates
on new loans under the Farm Credit Sys-
tem. This revenue ruling also contains a
list of the states within each Farm Credit
System Bank Territory.
Under § 2032A(e)(7)(A)(ii) of the In-
ternal Revenue Code, rates on new Farm
Credit System Bank loans are used in
computing the special use value of real
property used as a farm for which an
election is made under § 2032A. The rates
in Table 1 of this revenue ruling may be
used by estates that value farmland under
§ 2032A as of a date in 2016.
Average annual effective interest rates,
calculated in accordance with § 2032A(e)
(7)(A) and § 20.2032A– 4(e) of the Estate
Tax Regulations, to be used under
§ 2032A(e)(7)(A)(ii), are set forth in the
accompanying Table of Interest Rates
(Table 1). The states within each Farm
Credit System Bank Territory are set forth
in the accompanying Table of Farm Credit
System Bank Territories (Table 2).
Rev. Rul. 81–170, 1981–1 C.B. 454,
contains an illustrative computation of an
average annual effective interest rate. The
rates applicable for valuation in 2015 are
in Rev. Rul. 2015–18, 2015–34 I.R.B.
209. For rate information for years prior to
2015, see Rev. Rul. 2014 –21, 2014 –34
I.R.B. 381, and other revenue rulings that
are referenced therein.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Lane Damazo of the Office of the
Associate Chief Counsel (Passthroughs
and Special Industries). For further infor-
mation regarding this revenue ruling, con-
tact Lane Damazo at (202) 317-4628 (not
a toll-free number).
REV. RUL. 2016-19 TABLE 1
TABLE OF INTEREST RATES
(Year of Valuation 2016)
Farm Credit System Bank Servicing State in Which Property is LocatedRate
AgFirst, FCB .................................................................................................................................................................5.11
AgriBank, FCB .............................................................................................................................................................4.44
CoBank, ACB ...............................................................................................................................................................4.01
Texas, FCB ....................................................................................................................................................................4.69
REV. RUL. 2016-19 TABLE 2
TABLE OF FARM CREDIT SYSTEM BANK TERRITORIES
Farm Credit System BankLocation of Property
AgFirst, FCB.................................................................................Delaware, District of Columbia,
Florida, Georgia, Maryland,
North Carolina, Pennsylvania,
South Carolina, Virginia, West Virginia.
AgriBank, FCB..............................................................................Arkansas, Illinois, Indiana, Iowa,
Kentucky, Michigan, Minnesota,
Missouri, Nebraska, North Dakota,
Ohio, South Dakota, Tennessee,
Wisconsin, Wyoming.
CoBank, ACB................................................................................Alaska, Arizona, California, Colorado,
Connecticut, Hawaii, Idaho, Kansas,
Maine, Massachusetts, Montana,
New Hampshire, New Jersey, New
Mexico, New York, Nevada, Oklahoma,
Oregon, Rhode Island, Utah, Vermont, Washington.
Texas, FCB.....................................................................................Alabama, Louisiana, Mississippi, Texas.
Bulletin No. 2016–35August 29, 2016
273

T.D. 9781
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 300
Preparer Tax Identification
Number (PTIN) User Fee Update
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations and removal
of temporary regulations.
SUMMARY: This document contains fi-
nal regulations relating to the imposition
of certain user fees on tax return prepar-
ers. The final regulations supersede and
adopt the text of temporary regulations
that reduced the user fee to apply for or
renew a preparer tax identification number
(PTIN) from $50 to $33. The final regu-
lations affect individuals who apply for or
renew a PTIN. The Independent Offices
Appropriations Act of 1952 authorizes the
charging of user fees.
DATES:Effective Date: These regula-
tions are effective on September 9, 2016.
Applicability Date: For date of applicabil-
ity, see § 300.13(d).
FOR FURTHER INFORMATION CON-
TACT: Concerning the final regulations,
Hollie M. Marx at (202) 317-6844; con-
cerning cost methodology, Eva J. Wil-
liams at (202) 803-9728 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background and Summary of
Comments
This document contains final regula-
tions relating to the imposition of a user
fee to apply for or renew a PTIN. The
Independent Offices Appropriations Act
of 1952 (IOAA), which is codified at 31
U.S.C. 9701, authorizes agencies to pre-
scribe regulations that establish user fees
for services provided by the agency. The
charges must be fair and must be based on
the costs to the government, the value of
the service to the recipient, the public
policy or interest served, and other rele-
vant facts. The IOAA provides that regu-
lations implementing user fees are subject
to policies prescribed by the President;
these policies are set forth in the Office of
Management and Budget Circular A–25,
58 FR 38142 (July 15, 1993) (OMB
Circular A–25).
Under OMB Circular A–25, federal
agencies that provide services that confer
special benefits on identifiable recipients
beyond those accruing to the general pub-
lic are to establish user fees that recover
the full cost of providing the special ben-
efit. An agency that seeks to impose a user
fee for government-provided services
must calculate the full cost of providing
those services, review user fees bienni-
ally, and update them as necessary.
Section 6109(a)(4) of the Internal Rev-
enue Code (Code) authorizes the Secre-
tary to prescribe regulations for the inclu-
sion of a tax return preparer’s identifying
number on a return, statement, or other
document required to be filed with the
IRS. On September 30, 2010, the Treasury
Department and the IRS published final
regulations under section 6109 (REG–
134235– 08) in theFederal Register(TD
9501) (75 FR 60315) (PTIN regulations)
to provide that, for returns or claims for
refund filed after December 31, 2010, the
identifying number of a tax return pre-
parer is the individual’s PTIN or such
other number prescribed by the IRS in
forms, instructions, or other appropriate
guidance. The PTIN regulations require a
tax return preparer who prepares or who
assists in preparing all or substantially all
of a tax return or claim for refund after
December 31, 2010 to have a PTIN. Final
regulations (REG–139343– 08) published
in theFederal Register(TD 9503) (75
FR 60316) on September 30, 2010, estab-
lished a $50 user fee to apply for or renew
a PTIN. The ability to prepare tax returns
and claims for refund for compensation is
a special benefit, for which the IRS may
charge a user fee to recover the full costs
of providing the special benefit.
Pursuant to the guidelines in OMB Cir-
cular A–25, the IRS recalculated its cost
of providing services under the PTIN ap-
plication and renewal process and deter-
mined that the full cost of administering
the PTIN program going forward is re-
duced from $50 to $33 per application or
renewal. On October 30, 2015, the Trea-
sury Department and the IRS published in
theFederal Register(80 FR 66851– 01) a
notice of proposed rulemaking by cross-
reference to temporary regulations (REG–
121496 –15) proposing amendments to
regulations under 26 CFR part 300. On the
same date, the Treasury Department and
the IRS published in theFederal Register
(80 FR 66792– 01) temporary regulations
(TD 9742) that reduced the amount of the
user fee to obtain or renew a PTIN from
$50 to $33 per original or renewal appli-
cation. Five electronic public comments
were submitted under the regulation num-
ber for the proposed regulations, but their
contents related to issues other than a user
fee for applying for or renewing a PTIN
and are not relevant to these regulations.
The comments are available for public
inspection at http://www.regulations.gov
or upon request. The IRS received no re-
quests for a public hearing, and none was
held. The final regulations adopt the pro-
posed regulations without change. The
temporary regulations are hereby made
obsolete and removed.
Effect on Other Documents
Temporary regulations § 300.13T are
obsolete as of September 9, 2016.
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.
The Administrative Procedure Act pro-
vides that substantive rules generally will
not be effective until thirty days after the
final regulations are published in theFed-
eral Register(5 U.S.C. 553(d)). The
Treasury Department and the IRS have
determined that section 5 U.S.C. 553(d) of
the Administrative Procedure Act applies
to these final regulations.
The notice of proposed rulemaking
(REG–121496 –15) included an initial
regulatory flexibility analysis. The Trea-
sury Department and the IRS concluded in
the initial regulatory flexibility analysis
that the proposed regulations, if promul-
gated, may have a significant economic
impact on a substantial number of small
entities. None of the public comments
submitted under the regulation number for
August 29, 2016Bulletin No. 2016–35
274

the proposed regulation addressed the ini-
tial regulatory flexibility analysis. After
further consideration, the Treasury De-
partment and the IRS conclude that no
final regulatory flexibility analysis is re-
quired. The Treasury Department and the
IRS certify that the final regulations will
not have a significant economic impact on
a substantial number of small entities. Al-
though the final regulations will likely af-
fect a substantial number of small entities,
the economic impact on those entities is
not significant. The final regulations es-
tablish a $33 fee to apply for or renew a
PTIN per original or renewal application,
which is a reduction from the previously
established fee of $50 per original or re-
newal application, and the $33 fee will not
have a significant economic impact on a
small entity.
Pursuant to section 7805(f) of the
Code, the notice of proposed rulemaking
that preceded these final regulations was
submitted to the Chief Counsel for Advo-
cacy of the Small Business Administra-
tion for comment on its impact on small
business. No comments were received on
the proposed regulations.
Drafting Information
The principal author of these final reg-
ulations is Hollie M. Marx, Office of the
Associate Chief Counsel (Procedure and
Administration). However, other person-
nel from the Treasury Department and the
IRS participated in their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 300 is
amended as follows:
PART 300 —USER FEES
Paragraph 1. The authority citation for
part 300 continues to read as follows:
Authority: 31 U.S.C. 9701.
Par. 2. Section 300.13 is amended by
adding paragraph (b) and revising para-
graph (d) to read as follows:
§ 300.13 Fee for obtaining a preparer
tax identification number.
*****
(b)Fee. The fee to apply for or renew
a preparer tax identification number is $33
per year, which is the cost to the govern-
ment for processing the application for a
preparer tax identification number and
does not include any fees charged by the
vendor.
*****
(d)Applicability date. This section will
be applicable for applications for and re-
newal of a preparer tax identification
number filed on or after September 9,
2016.
§ 300.13T [Removed]
Par. 3. Section 300.13T is removed.
John Dalrymple,
Deputy Commissioner for
Services and Enforcement.
Approved: July 14, 2016.
Mark J. Mazur,
Assistant Secretary of the
Treasury (Tax Policy).
(Filed by the Office of the Federal Register on August 9,
2016, 8:45 a.m., and published in the issue of the Federal
Register for August 10, 2016, 81 F.R. 52766)
Bulletin No. 2016–35August 29, 2016
275

Part III. Administrative, Procedural, and Miscellaneous
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2016–47
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used un-
der § 417(e)(3), and the 24-month average
segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the interest
rate on 30-year Treasury securities under
§ 417(e)(3)(A)(ii)(II) as in effect for plan
years beginning before 2008 and the 30-
year Treasury weighted average rate un-
der § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Generally, except for certain plans un-
der sections 104 and 105 of the Pension
Protection Act of 2006 and CSEC plans
under § 414(y), § 430 of the Code speci-
fies the minimum funding requirements
that apply to single-employer plans pursu-
ant to § 412. Section 430(h)(2) specifies
the interest rates that must be used to
determine a plan’s target normal cost and
funding target. Under this provision, pres-
ent value is generally determined using
three 24-month average interest rates
(“segment rates”), each of which applies
to cash flows during specified periods. To
the extent provided under § 430(h)(2)
(C)(iv), these segment rates are adjusted
by the applicable percentage of the 25-
year average segment rates for the period
ending September 30 of the year preced-
ing the calendar year in which the plan
year begins.
1
However, an election may
be made under§ 430(h)(2)(D)(ii) to use
the monthly yield curve in place of the
segment rates.
Notice 2007– 81, 2007– 44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond seg-
ment rates used to compute the target nor-
mal cost and the funding target. Consis-
tent with the methodology specified in
Notice 2007– 81, the monthly corporate
bond yield curve derived from July 2016
data is in Table I at the end of this notice.
The spot first, second, and third segment
rates for the month of July 2016 are, re-
spectively, 1.36, 3.26, and 4.16.
The 24-month average segment rates
determinedunder§430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the appli-
cable minimum and maximum percent-
ages of the corresponding 25-year average
segment rates. For plan years beginning
before 2018, the applicable minimum per-
centage is 90% and the applicable maxi-
mum percentage is 110%. The 25-year
average segment rates for plan years be-
ginning in 2014, 2015, and 2016 were
published in Notice 2013–58, 2013– 40
I.R.B. 294, Notice 2014 –50, 2014 – 40
I.R.B. 590, and Notice 2015– 61, 2015–39
I.R.B. 408, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for August
2016 without adjustment for the 25-year
average segment rate limits are as follows:
Applicable
Month
First
Segment
Second
Segment
Third
Segment
August 20161.513.834.82
Based on § 430(h)(2)(C)(iv), the 24-month averages applicable for August 2016 adjusted to be within the applicable minimum
and maximum percentages of the corresponding 25-year average segment rates, are as follows:
For Plan
Years
Beginning In
Adjusted 24-Month Average Segment
Rates
Applicable Month
First
Segment
Second
Segment
Third
Segment
2015August20164.726.116.81
2016August20164.435.916.65
30-YEAR TREASURY SECURITIES
INTEREST RATES
Generally for plan years beginning af-
ter 2007, § 431 specifies the minimum
funding requirements that apply to mul-
tiemployer plans pursuant to § 412. Sec-
tion 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation de-
scribed in § 431(c)(6)(A), based on the
plan’s current liability. Section 431(c)
(6)(E)(ii)(I) provides that the interest rate
used to calculate current liability for this
purpose must be no more than 5 percent
above and no more than 10 percent below
the weighted average of the rates of inter-
est on 30-year Treasury securities during
the four-year period ending on the last day
1
Pursuant to § 433(h)(3)(A), the 3
rd
segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
August 29, 2016Bulletin No. 2016–35
276

before the beginning of the plan year.
Notice 88 –73, 1988 –2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The rate of interest
on 30-year Treasury securities for July
2016 is 2.23 percent. The Service deter-
mined this rate as the average of the daily
determinations of yield on the 30-year
Treasury bond maturing in May 2046. For
plan years beginning in the month shown
below, the weighted average of the rates
of interest on 30-year Treasury securities
and the permissible range of rate used to
calculate current liability are as follows:
For Plan Years
Beginning in
30-Year
Treasury
Weighted
Average
Permissible Range
MonthYear90%to105%
August20162.992.703.14
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Notice 2007– 81 provides guide-
lines for determining the minimum pres-
ent value segment rates. Pursuant to that
notice, the minimum present value seg-
ment rates determined for July 2016 are as
follows:
First
Segment
Second
Segment
Third
Segment
1.363.264.16
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of the Associ-
ate Chief Counsel (Tax Exempt and Gov-
ernment Entities). However, other person-
nel from the IRS participated in the
development of this guidance. For further
information regarding this notice, contact
Mr. Morgan at 202-317-6700 or Tony
Montanaro at 202-317-8698 (not toll-free
numbers).
Table I
Monthly Yield Curve for July 2016
Derived from July 2016 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.50.7520.53.9340.54.1960.54.2880.54.33
1.00.9621.03.9441.04.1961.04.2881.04.33
1.51.1421.53.9541.54.1961.54.2881.54.33
2.01.2822.03.9642.04.2062.04.2882.04.33
2.51.3822.53.9742.54.2062.54.2982.54.33
3.01.4623.03.9843.04.2063.04.2983.04.33
3.51.5323.53.9943.54.2163.54.2983.54.33
4.01.6124.04.0044.04.2164.04.2984.04.33
4.51.6924.54.0144.54.2164.54.2984.54.33
5.01.7925.04.0145.04.2165.04.2985.04.33
5.51.9025.54.0245.54.2265.54.2985.54.34
6.02.0226.04.0346.04.2266.04.3086.04.34
6.52.1526.54.0446.54.2266.54.3086.54.34
7.02.2927.04.0447.04.2367.04.3087.04.34
7.52.4227.54.0547.54.2367.54.3087.54.34
8.02.5528.04.0648.04.2368.04.3088.04.34
8.52.6828.54.0748.54.2368.54.3088.54.34
9.02.8129.04.0749.04.2469.04.3089.04.34
9.52.9229.54.0849.54.2469.54.3089.54.34
10.03.0330.04.0950.04.2470.04.3190.04.34
Bulletin No. 2016–35August 29, 2016
277

Table I
Monthly Yield Curve for July 2016
Derived from July 2016 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
10.53.1330.54.0950.54.2470.54.3190.54.34
11.03.2231.04.1051.04.2471.04.3191.04.34
11.53.3131.54.1051.54.2571.54.3191.54.34
12.03.3832.04.1152.04.2572.04.3192.04.35
12.53.4532.54.1252.54.2572.54.3192.54.35
13.03.5233.04.1253.04.2573.04.3193.04.35
13.53.5733.54.1353.54.2573.54.3193.54.35
14.03.6234.04.1354.04.2674.04.3194.04.35
14.53.6634.54.1454.54.2674.54.3294.54.35
15.03.7035.04.1455.04.2675.04.3295.04.35
15.53.7435.54.1555.54.2675.54.3295.54.35
16.03.7736.04.1556.04.2676.04.3296.04.35
16.53.7936.54.1556.54.2776.54.3296.54.35
17.03.8237.04.1657.04.2777.04.3297.04.35
17.53.8437.54.1657.54.2777.54.3297.54.35
18.03.8638.04.1758.04.2778.04.3298.04.35
18.53.8738.54.1758.54.2778.54.3298.54.35
19.03.8939.04.1759.04.2879.04.3299.04.35
19.53.9039.54.1859.54.2879.54.3399.54.35
20.03.9240.04.1860.04.2880.04.33100.04.36
August 29, 2016Bulletin No. 2016–35
278

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. 2016–35August 29, 2016
i

Numerical Finding List
1
Bulletin 2016 –27 through 2016 –35
Action on Decision:
2016-01, 2016-16 I.R.B.580
2016-02, 2016-31 I.R.B.193
Announcements:
2016-21, 2016-27 I.R.B.8
2016-23, 2016-27 I.R.B.10
2016-24, 2016-30 I.R.B.170
2016-25, 2016-31 I.R.B.205
2016-27, 2016-33 I.R.B.238
2016-28, 2016-34 I.R.B.272
2016-29, 2016-34 I.R.B.272
Notices:
2016-40, 2016-27 I.R.B.4
2016-41, 2016-27 I.R.B.5
2016-42, 2016-29 I.R.B.67
2016-43, 2016-29 I.R.B.132
2016-44, 2016-29 I.R.B.132
2016-45, 2016-29 I.R.B.135
2016-47, 2016-35 I.R.B.276
2016-46, 2016-31 I.R.B.202
2016-48, 2016-33 I.R.B.235
2016-49, 2016-34 I.R.B.265
Proposed Regulations:
REG-102516-15, 2016-32 I.R.B.231
REG-103058-16, 2016-33 I.R.B.238
REG-109086-15, 2016-30 I.R.B.171
REG-101689-16, 2016-30 I.R.B.170
REG-123854-12, 2016-28 I.R.B.15
REG-134016-15, 2016-31 I.R.B.205
REG-131418-14, 2016-33 I.R.B.248
REG-147196-07, 2016-29 I.R.B.32
Revenue Procedures:
2016-37, 2016-29 I.R.B.136
2016-39, 2016-30 I.R.B.164
2016-40, 2016-32 I.R.B.228
2016-41, 2016-30 I.R.B.165
2016-42, 2016-34 I.R.B.269
Revenue Rulings:
2016-17, 2016-27 I.R.B.1
2016-18, 2016-31 I.R.B.194
2016-19, 2016-35 I.R.B.273
Treasury Decisions:
9773, 2016-29 I.R.B.56
9774, 2016-30 I.R.B.151
9775, 2016-30 I.R.B.159
9776, 2016-32 I.R.B.222
9778, 2016-31 I.R.B.196
9779, 2016-33 I.R.B.233
9781, 2016-35 I.R.B.274
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2016 – 01 through 2016 –26 is in Internal Revenue Bulletin
2016 –26, dated June 27, 2016.
August 29, 2016Bulletin No. 2016–35
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2016 –27 through 2016 –35
Notices:
2013-1
Modified by
Notice 2016-41, 2016-27 I.R.B.5
2013-1
Superseded by
Notice 2016-41, 2016-27 I.R.B.5
Revenue Procedures:
2007-44
Clarified by
Rev. Proc. 2016-37, 2016-29 I.R.B.136
2007-44
Modified by
Rev. Proc. 2016-37, 2016-29 I.R.B.136
2007-44
Superseded by
Rev. Proc. 2016-37, 2016-29 I.R.B.136
2015-36
Modified by
Rev. Proc. 2016-37, 2016-29 I.R.B.136
2016-3
Modified by
Rev. Proc. 2016-40, 2016-32 I.R.B.228
2016-29
Modified by
Rev. Proc. 2016-39, 2016-30 I.R.B.164
Treasury Decisions:
2014-12
Modified by
T.D. 9776 2016-32 I.R.B.222
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2016 – 01 through 2016 –26 is in Internal Revenue Bulletin
2016 –26, dated June 27, 2016.
Bulletin No. 2016–35August 29, 2016
iii

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