Internal Revenue Bulletin 2019-49 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2019–49
December 2, 2019
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
T.D. 9881, page 1288.
This document contains final regulations amending the
Health Insurance Providers Fee regulations to require cer-
tain covered entities engaged in the business of providing
health insurance for United States health risks to electron-
ically file Form 8963, “Report of Health Insurance Provider
Information.”
Rev. Proc. 2019-42, page 1298.
This revenue procedure will update Rev. Proc. 2019-09,
2019-02 I.R.B. 292, and identifies circumstances under
which the disclosure on a taxpayer’s income tax return with
respect to an item or position is adequate for the purpose
of reducing the understatement of income tax under sec-
tion 6662(d) of the Internal Revenue Code (relating to the
substantial understatement aspect of the accuracy-related
penalty), and for the purpose of avoiding the tax return
preparer penalty under section 6694(a) (relating to under-
statements due to unreasonable positions) with respect to
income tax returns. This revenue procedure will apply to
any income tax return filed on 2019 tax forms for a taxable
year beginning in 2019, and to any income tax return filed
in 2020 on 2019 tax forms for short taxable years begin-
ning in 2020.
Rev. Proc. 2019-46, page 1301.
This procedure provides the rules for substantiating the
deductible expenses of using an automobile for business,
moving, medical, or charitable purposes. The revenue pro-
cedure also provides rules for substantiating the amount
of an employee’s ordinary and necessary business expens-
es of local travel or transportation away from home that a
payor (an employer, its agent, or a third party) reimburses
using a mileage allowance. Rev. Proc. 2010-51 is modified.
EMPLOYEE PLANS
Notice 2019-60, page 1292.
Notice 2019-60 provides temporary relief with respect to
the nondiscrimination requirements relating to benefits,
rights, and features under closed defined benefit plans that
generally meet the eligibility conditions for the relief provid-
ed in Notice 2014-5, 2014-2 I.R.B. 276, as extended.
Notice 2019-61, page 1294.
This notice sets forth updates on the corporate bond month-
ly yield curve, the corresponding spot segment rates for
November 2019 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for November 2019, and
the 30-year Treasury rates, as reflected by the application
of § 430(h)(2)(C)(iv).
INCOME TAX
Rev. Rul. 2019-26, page 1286.
Federal rates; adjusted federal rates; adjusted feder-
al long-term rate, the long-term exempt rate, and the
blended annual rate. For purposes of sections 382,
1274, 1288, 7872 and other sections of the Code,
tables set forth the rates for December 2019.
T.D. 9883, page 1289.
These regulations provide rules regarding attribution for
purposes of determining whether a person is a related per-
son with respect to a controlled foreign corporation. They
also provide rules for determining whether rents are derived
in the active conduct of a trade or business for purposes of
computing foreign personal holding company income. The
regulations affect United States persons with direct or in-
direct ownership interests in certain foreign corporations.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and 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 of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
December 2, 2019 Bulletin No. 2019–49

Part I
Section 1274.--Determination of Issue
Price in the Case of Certain Debt Instru-
ments Issued for Property
(Also Sections 42, 280G, 382, 467, 468,
482, 483, 1288, 7520, 7872.)
Rev. Rul. 2019-26
This revenue ruling provides various
prescribed rates for federal income tax
purposes for December 2019 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable feder-
al rates (AFR) for the current month for
purposes of section 1274(d) of the Inter-
nal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term ad-
justed applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. Howev-
er, 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%. Final-
ly, 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. 2019-26 TABLE 1
Applicable Federal Rates (AFR) for December 2019
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR1.61%1.60%1.60%1.59%
110% AFR1.77%1.76%1.76%1.75%
120% AFR1.93%1.92%1.92%1.91%
130% AFR2.09%2.08%2.07%2.07%
Mid-term
AFR1.69%1.68%1.68%1.67%
110% AFR1.86%1.85%1.85%1.84%
120% AFR2.03%2.02%2.01%2.01%
130% AFR2.19%2.18%2.17%2.17%
150% AFR2.54%2.52%2.51%2.51%
175% AFR2.96%2.94%2.93%2.92%
Long-term
AFR2.09%2.08%2.07%2.07%
110% AFR2.30%2.29%2.28%2.28%
120% AFR2.52%2.50%2.49%2.49%
130% AFR2.72%2.70%2.69%2.68%
REV. RUL. 2019-26 TABLE 2
Adjusted AFR for December 2019
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR1.21%1.21%1.21%1.21%
Mid-term adjusted AFR1.28%1.28%1.28%1.28%
Long-term adjusted AFR1.59%1.58%1.58%1.57%
December 2, 2019 1286 Bulletin No. 2019–49

REV. RUL. 2019-26 TABLE 3
Rates Under Section 382 for December 2019
Adjusted federal long-term rate for the current month1.59%
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.)
1.59%
REV. RUL. 2019-26 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for December 2019
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 credit7.43%
Appropriate percentage for the 30% present value low-income housing credit 3.19%
REV. RUL. 2019-26 TABLE 5
Rate Under Section 7520 for December 2019
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
2.0%

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

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 December 2019. See
Rev. Rul. 2019-26, page 1286.

Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

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
December 2019. See Rev. Rul. 2019-26, page 1286.

Section 7520.—Valuation
Tables
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
December 2019. See Rev. Rul. 2019-26, page 1286.

Bulletin No. 2019–49 1287 December 2, 2019

December 2, 2019 1288 Bulletin No. 2019–49
T.D. 9881
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 57
Electronic Filing of the
Report of Health Insurance
Provider Information
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains
final regulations amending the Health
Insurance Providers Fee regulations to
require certain covered entities engaged
in the business of providing health in-
surance for United States health risks to
electronically file Form 8963, “Report of
Health Insurance Provider Information.”
These final regulations affect those enti-
ties.
DATES: Effective Date. These regulations
are effective on November 13, 2019.
FOR FURTHER INFORMATION CON-
TACT: David Bergman, (202) 317-6845
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains final regula-
tions in Title 26 of the Code of Federal
Regulations under section 9010 of the
Patient Protection and Affordable Care
Act (PPACA), Public Law 111-148, 124
Stat. 119 (2010), as amended by sec-
tion 10905 of PPACA, and as further
amended by section 1406 of the Health
Care and Education Reconciliation Act
of 2010, Public Law 111-152 (124 Stat.
1029 (2010)) (collectively, the Afford-
able Care Act or ACA). The final regu-
lations provide guidance on the annual
fee imposed on covered entities engaged
in the business of providing health insur-
ance for United States health risks, and
affect persons engaged in the business
of providing health insurance for United
States health risks.
On December 9, 2016, the Treasury
Department and the IRS published a
notice of proposed rulemaking (REG-
123829-16) in the Federal Register, 81
FR 89020, containing proposed regula-
tions that would amend section 57.3(a)
(2) of the Health Insurance Providers Fee
regulations to provide that a covered en-
tity (including a controlled group) report-
ing on a Form 8963 or corrected Form
8963 more than $25 million in net premi-
ums written must electronically file the
forms after December 31, 2017. Forms
8963 reporting $25 million or less in net
premiums written are not required to be
electronically filed. The proposed regu-
lations also provided that if a Form 8963
or corrected Form 8963 is required to be
filed electronically, any subsequent Form
8963 filed for the same fee year must also
be filed electronically, even if the subse-
quently filed Form 8963 reports $25 mil-
lion or less in net premiums written. In ad-
dition, the proposed regulations provided
that a failure to electronically file would
be treated as a failure to file for purposes
of section 57.3(b).
No comments were received in re-
sponse to the notice of proposed rulemak-
ing. No public hearing was requested or
held. This Treasury Decision adopts the
proposed regulations with no substantive
change other than the applicability date.
The rationale provided in the Explanation
of Provisions section of the notice of pro-
posed rulemaking applies equally to these
final regulations. The electronic filing re-
quirement will begin in the 2020 fee year
because the fee will not be collected in
2019.
Special Analyses
This regulation is not subject to review
under section 6(b) of Executive Order
12866 pursuant to the Memorandum of
Agreement (April 11, 2018) between the
Department of the Treasury and the Office
of Management and Budget regarding re-
view of tax regulations. It is hereby certi-
fied that the electronic filing requirement
would not have a significant economic
impact on a substantial number of small
entities pursuant to the Regulatory Flexi-
bility Act (5 U.S.C. chapter 6). The rule is
expected to affect primarily larger entities
because the electronic filing requirement
is only imposed if the filer must report
more than $25 million in net premiums.
Small entities are unlikely to report more
than $25 million in net premiums, and the
rule contains a specific exemption from
the electronic reporting requirement for
covered entities that report $25 million or
less in net premiums written. Accordingly,
this rule will not have a significant eco-
nomic impact on a substantial number of
small entities.
Pursuant to section 7805(f) of the Inter-
nal Revenue Code, the notice of proposed
rulemaking preceding these final regula-
tions was submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on the impact
on small business, and no comments were
received.
Drafting Information
The principal author of these regula-
tions is David Bergman of the Office of
the Associate Chief Counsel (Procedure
and Administration).
* * * * *
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 57 is amend-
ed to read as follows:
PART 57—HEALTH INSURANCE
PROVIDERS FEE
Paragraph 1. The authority citation for
26 CFR part 57 continues to read in part
as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 57.3 is amended by re-
vising paragraph (a)(2) to read as follows:
§57.3 Reporting requirements and
associated penalties.
(a) * * *
(2) Manner of reporting—(i) In gener-
al. The IRS may provide rules in guidance
published in the Internal Revenue Bulletin

Bulletin No. 2019–49 1289 December 2, 2019
for the manner of reporting by a covered
entity under this section, including rules
for reporting by a designated entity on be-
half of a controlled group that is treated as
a single covered entity.
(ii) Electronic Filing Required. Any
Form 8963 (including corrected forms)
filed pursuant to paragraph (a)(1) of this
section and reporting more than $25 mil-
lion in net premiums written must be filed
electronically in accordance with the in-
structions to the form. If a Form 8963
or corrected Form 8963 is required to be
filed electronically under this paragraph
(a)(2)(ii), any subsequently filed Form
8963 filed for the same fee year must also
be filed electronically. For purposes of
§57.3(b), any Form 8963 required to be
filed electronically under this section will
not be considered filed unless it is filed
electronically.
* * * * *
Par. 3 Section 57.10 is amended by re-
vising the section heading, paragraph (a),
and adding paragraph (c) to read as fol-
lows:
§57.10 Applicability date.
(a) Except as provided in paragraphs
(b) and (c) of this section, §§ 57.1 through
57.9 apply to any fee that is due on or after
September 30, 2014.
* * * * *
(c) Section 57.3(a)(2)(ii) applies
to Forms 8963, including corrected
Forms 8963, filed after December 31,
2019.
Sunita Lough,
Deputy Commissioner for Services
and Enforcement.
Approved: October 29, 2019.
David J. Kautter,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on
November 8, 2019, 4:15 p.m., and published in the
issue of the Federal Register for November 13, 2019,
84 F.R. 61547)
26 CFR 1.954-1: Foreign base company income
T.D. 9883
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Ownership Attribution for
Purposes of Determining
Whether a Person Is
Related to a Controlled
Foreign Corporation;
Rents Derived in the Active
Conduct of a Trade or
Business
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations.
SUMMARY: This document contains fi-
nal regulations regarding the attribution of
ownership of stock or other interests for
purposes of determining whether a person
is a related person with respect to a con-
trolled foreign corporation (“CFC”) under
section 954(d)(3). In addition, the final
regulations provide rules for determining
whether a CFC is considered to derive
rents in the active conduct of a trade or
business for purposes of computing for-
eign personal holding company income.
This document finalizes the proposed reg-
ulations published on May 20, 2019. The
regulations affect United States persons
with direct or indirect ownership interests
in certain foreign corporations.
DATES: Effective Date: These regula-
tions are effective on November 19, 2019.
Applicability Date: For the dates of appli-
cability, see §§1.954-1(f)(3), 1.954-2(i)
(2), and 1.958-2(h).
FOR FURTHER INFORMATION CON-
TACT: Kristine A. Crabtree at (202) 317-
6934.
SUPPLEMENTARY INFORMATION:
Background
On May 20, 2019, the Department of
the Treasury (“Treasury Department”) and
the IRS published proposed regulations
(REG-125135-15) under sections 954
and 958 in the Federal Register (84 FR
22751) (the “proposed regulations”). No
public hearing was requested or held. All
written comments received in response
to the proposed regulations are available
at www.regulations.gov or upon request.
Because no comments suggested revisions
to the proposed regulations, this Treasury
decision adopts the proposed regulations
as final regulations without change.
Summary of Comments
The proposed regulations and the final
regulations limit the application of the
section 318(a)(3) constructive ownership
rules for purposes of the definition of re-
lated person in section 954(d)(3) to avoid
inappropriately treating entities, includ-
ing CFCs, that do not have a significant
relationship to each other as related per-
sons. Comments agreed with the Treasury
Department and the IRS that limiting the
application of the downward attribution
rules of section 318(a)(3)(A) incorpo-
rated by section 958(b) for purposes of
section 954(d)(3) avoids inappropriate
results, and one comment urged the Trea-
sury Department and the IRS to provide
a similar limitation on the application of
those rules for purposes of determining
whether a foreign corporation is a CFC.
The Treasury Department and the IRS are
separately studying the application of sec-
tion 958(b) following the repeal of section
958(b)(4) by the Tax Cuts and Jobs Act,
Public Law 115-97 (2017), and the final
regulations do not address the application
of the constructive ownership rules of sec-
tion 958(b) for purposes other than section
954(d)(3).
Effect on Other Documents
Section 7(d) of Notice 2007-9, 2007-1
C.B. 401, is obsoleted.

December 2, 2019 1290 Bulletin No. 2019–49
Special Analyses
OIRA has waived review of this final
rule in accordance with section 6(a)(3)(A)
of E.O. 12866.
Because this rulemaking is an interpre-
tive rule and does not impose a collection
of information on small entities, under 5
U.S.C. 603(a) the provisions of the Reg-
ulatory Flexibility Act (5 U.S.C. chapter
6) do not apply. Accordingly, a regulatory
flexibility analysis under the Regulatory
Flexibility Act is not required.
Pursuant to section 7805(f), the notice
of proposed rulemaking preceding this
regulation was submitted to the Chief
Counsel for Advocacy of the Small Busi-
ness Administration for comment on its
impact on small businesses. No comments
were received.
Drafting Information
The principal author of the final reg-
ulations is James Beatty of the Office of
Associate Chief Counsel (Income Tax &
Accounting). However, other personnel
from the Treasury Department and the
IRS participated in the development of
these proposed regulations.
Statement of Availability of IRS
Documents
Notice 2007-9 is published in the In-
ternal Revenue Bulletin (or Cumulative
Bulletin) and is available from the Super-
intendent of Documents, U.S. Govern-
ment Publishing Office, Washington, DC
20402, or by visiting the IRS website at
http://www.irs.gov.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR part 1 is amend-
ed as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.954-1 also issued under 26
U.S.C. 954(b) and (c).
Section 1.954-2 also issued under 26
U.S.C. 954(b) and (c).
* * * * *
Par. 2. Section 1.954-0 is amended by
revising paragraph (b) by adding entries
for §§1.954-1(f)(3), (f)(3)(i) through (iii),
(g), and (g)(1) through (4) and 1.954-2(c)
(2)(v) through (viii), (d)(2)(v), (i), and (i)
(1) through (3) to read as follows:
§1.954-0 Introduction.
* * * * *
(b) * * *
§1.954-1 Foreign base company in-
come.
* * * * *
(f) * * *
(3) Applicability dates.
(i) General rule.
(ii) Option rule in paragraph (f)(2)(iv)
(B)(2) of this section.
(iii) Anti-abuse rule.
(g) Distributive share of partnership
income.
(1) Application of related person and
country of organization tests.
(2) Application of related person test
for sales and purchase transactions be-
tween a partnership and its controlled for-
eign corporation partner.
(3) Examples.
(4) Effective date.
§1.954-2 Foreign personal holding
company income.
* * * * *
(c) * * *
(2) * * *
(v) Leased in foreign commerce.
(vi) Leases acquired by the CFC lessor.
(vii) Marketing of leases.
(viii) Cost sharing arrangements
(CSAs).
* * * * *
(d) * * *
(2) * * *
(v) Cost sharing arrangements (CSAs).
* * * * *
(i) Applicability dates.
(1) Paragraphs (c)(2)(v) through (vii).
(2) Paragraphs (c)(2)(iii)(B) and (c)(2)
(iv)(A) of this section.
(3) Other paragraphs.
Par. 3. Section 1.954-1 is amended by
revising paragraph (f)(2)(iv) and adding
paragraph (f)(3) to read as follows:
§1.954-1 Foreign base company in-
come.
* * * * *
(f) * * *
(2) * * *
(iv) Direct or indirect ownership. For
purposes of section 954(d)(3) and this
paragraph (f), to determine direct or indi-
rect ownership—
(A) The principles of §1.958-1 and
section 958(a) apply without regard to
whether a corporation, partnership, trust,
or estate is foreign or domestic or whether
an individual is a citizen or resident of the
United States; and
(B) The principles of §1.958-2 and sec-
tion 958(b) apply, except that—
(1) Neither section 318(a)(3), nor
§1.958-2(d) or the principles thereof, ap-
plies to attribute stock or other interests to
a corporation, partnership, estate, or trust;
and
(2) Neither section 318(a)(4), nor
§1.958-2(e) or the principles thereof, ap-
plies to treat dividends, interest, rents, or
royalties received or accrued from a for-
eign corporation as received or accrued
from a controlled foreign corporation
payor if a principal purpose of the use of
an option to acquire stock or an equity in-
terest, or an interest similar to such an op-
tion, that causes the foreign corporation to
be a controlled foreign corporation payor
is to qualify dividends, interest, rents, or
royalties paid by the foreign corporation
for the section 954(c)(6) exception. For
purposes of this paragraph (f)(2)(iv)(B)
(2), an interest that is similar to an option
to acquire stock or an equity interest in-
cludes, but is not limited to, a warrant, a
convertible debt instrument, an instrument
other than debt that is convertible into
stock or an equity interest, a put, a stock or
equity interest subject to risk of forfeiture,
and a contract to acquire or sell stock or an
equity interest.
(3) Neither section 318(a)(4), nor
§1.958-2(e) or the principles thereof, ap-
plies to treat a person that has an option
to acquire stock or an equity interest, or
an interest similar to such an option, as
owning the stock or equity interest if a
principal purpose for the use of the option

Bulletin No. 2019–49 1291 December 2, 2019
or similar interest is to treat a person as a
related person with respect to a controlled
foreign corporation under this paragraph
(f). For purposes of this paragraph (f)(2)
(iv)(B)(3), an interest that is similar to
an option to acquire stock or an equity
interest includes, but is not limited to, a
warrant, a convertible debt instrument, an
instrument other than debt that is convert-
ible into stock or an equity interest, a put,
a stock or equity interest subject to risk of
forfeiture, and a contract to acquire or sell
stock or an equity interest.
(3) Applicability dates—(i) Gener-
al rule. Except as otherwise provided in
this paragraph (f)(3), paragraph (f)(2)(iv)
of this section applies to taxable years of
controlled foreign corporations ending on
or after November 19, 2019, and taxable
years of United States shareholders in
which or with which such taxable years
end.
(ii) Option rule in paragraph (f)(2)(iv)
(B)(2) of this section. Paragraph (f)(2)(iv)
(B)(2) of this section applies to taxable
years of controlled foreign corporations
beginning after December 31, 2006, and
ending before November 19, 2019, and
taxable years of United States sharehold-
ers in which or with which such taxable
years end.
(iii) Anti-abuse rule. Paragraphs (f)(2)
(iv)(B)(1) and (3) of this section apply to
taxable years of controlled foreign corpo-
rations ending on or after May 17, 2019,
and to taxable years of United States
shareholders in which or with which
such taxable years end, with respect to
amounts that are received or accrued by a
controlled foreign corporation on or after
May 17, 2019 to the extent the amounts
are received or accrued in advance of the
period to which such amounts are attribut-
able with a principal purpose of avoiding
the application of paragraph (f)(2)(iv)(B)
(1) or (3) of this section with respect to
such amounts.
* * * * *
Par. 4. Section 1.954-2 is amended by:
1. Revising paragraphs (c)(2)(iii)(B)
and (c)(2)(iv)(A).
2. Revising the heading of paragraph (i).
3. Redesignating paragraph (i)(2) as
paragraph (i)(3).
4. Adding new paragraph (i)(2).
The revisions and addition read as fol-
lows:
§1.954-2 Foreign personal holding
company income.
* * * * *
(c) * * *
(2) * * *
(iii) * * *
(B) Deductions for amounts (including
rents and royalties) paid or incurred by the
lessor for the right to use the property (or
a component thereof) that generated the
rental income;
* * * * *
(iv) * * *
(A) Amounts (including rents and roy-
alties) paid or incurred by the lessor for the
right to use the property (or a component
thereof) that generated the rental income;
* * * * *
(i) Applicability dates.* * *
(2) Paragraphs (c)(2)(iii)(B) and (c)
(2)(iv)(A) of this section. Paragraphs (c)
(2)(iii)(B) and (c)(2)(iv)(A) of this sec-
tion apply for taxable years of controlled
foreign corporations ending on or after
November 19, 2019, and for the taxable
years of United States shareholders in
which or with which such taxable years
end.
* * * * *
Par. 5. Section 1.958-2 is amended by
revising paragraph (d)(1) introductory text
and the first sentence of paragraph (e) and
adding paragraph (h) to read as follows:
§1.958-2 Constructive ownership of
stock.
* * * * *
(d) * * *
(1) * * * Except as otherwise provid-
ed in paragraph (d)(2) of this section and
§1.954-1(f)—
* * * * *
(e) * * * Except as otherwise provided
in §1.954-1(f), if any person has an option
to acquire stock, such stock shall be con-
sidered as owned by such person. * * *
* * * * *
(h) Applicability date. Paragraphs (d)
(1) and (e) of this section apply for taxable
years of controlled foreign corporations
ending on or after November 19, 2019,
and for the taxable years of United States
shareholders in which or with which such
taxable years end.
Sunita Lough,
Deputy Commissioner for Services
and Enforcement.
Approved: October 28, 2019
David J. Kautter,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on
November 18, 2019, 8:45 a.m., and published in the
issue of the Federal Register for November 19, 2019,
84 F.R. 63802).

December 2, 2019 1292 Bulletin No. 2019–49
Part III
Additional Temporary
Nondiscrimination Relief
for Closed Defined Benefit
Plans through 2020
Notice 2019-60
I. PURPOSE
This notice provides additional tempo-
rary nondiscrimination relief for closed
defined benefit plans (that is, defined ben-
efit plans that provide ongoing accruals
but that have been amended to limit those
accruals to some or all of the employees
who participated in the plan on a specified
date) that generally meet the eligibility
conditions for the relief provided in No-
tice 2014-5, 2014-2 I.R.B. 276, as extend-
ed. Specifically, this notice provides that,
if a plan satisfies the conditions specified
in this notice, the plan is deemed to have
satisfied certain of the nondiscrimination
requirements relating to benefits, rights,
and features.
II. BACKGROUND
A. Law and Regulations
Section 410(b) provides in general that
a plan is a qualified plan only if the clas-
sification of employees who benefit under
the plan does not discriminate in favor of
highly compensated employees (HCEs).
Section 410(b)(6)(B) provides that two or
more plans may be aggregated for purpos-
es of satisfying § 410(b), but only if those
plans are also aggregated for purposes of
§ 401(a)(4).
Under § 1.410(b)-2(b), a plan general-
ly satisfies § 410(b) with respect to em-
ployees only if the plan satisfies either the
ratio percentage test of § 1.410(b)-2(b)(2)
or the average benefit test of § 1.410(b)-
2(b)(3) (which requires satisfaction of
the nondiscriminatory classification test
of § 1.410(b)-4 and the average benefit
percentage test of § 1.410(b)-5). The ratio
percentage test and the nondiscriminato-
ry classification test are applied using a
plan’s ratio percentage, which is defined
in § 1.410(b)-9 for a plan year as the per-
centage determined by dividing the per-
centage of the nonhighly compensated
employees (NHCEs) who benefit under
the plan by the percentage of HCEs who
benefit under the plan.
Section 401(a)(4) provides in general
that a plan is a qualified plan only if the
contributions or the benefits provided un-
der the plan do not discriminate in favor of
HCEs. Compliance with § 401(a)(4) gen-
erally may be demonstrated on the basis
of either contributions or benefits (includ-
ing equivalent benefits). Section 1.401(a)
(4)-9(b) contains special rules that apply
for purposes of determining whether an
aggregated plan that includes one or more
defined benefit plans and one or more de-
fined contribution plans (referred to as a
DB/DC plan) satisfies the requirements of
§ 401(a)(4). A DB/DC plan may demon-
strate compliance with § 401(a)(4) on the
basis of equivalent benefits only if the DB/
DC plan satisfies one of three alternative
conditions set forth in § 1.401(a)(4)-9(b)
(2)(v).
Section 1.401(a)(4)-4 provides rules
regarding nondiscriminatory availability
of benefits, rights, and features. Under
§ 1.401(a)(4)-4(a), benefits, rights, and
features are provided to employees in a
nondiscriminatory manner only if each
benefit, right, or feature satisfies the cur-
rent availability requirement of § 1.401(a)
(4)-4(b) and the effective availability re-
quirement of § 1.401(a)(4)-4(c). In gen-
eral, a benefit, right, or feature satisfies
the current availability requirement if the
group of employees to whom the bene-
fit, right, or feature is currently available
during the plan year satisfies § 410(b)
(without regard to the average benefit per-
centage test of § 1.410(b)-5). Under the ef-
fective availability requirement, based on
all of the relevant facts and circumstances,
the group of employees to whom a bene-
fit, right, or feature is effectively available
must not substantially favor HCEs.
The nondiscrimination regulations
under § 401(a)(4) provide that the Com-
missioner may, in revenue rulings, notic-
es, and other guidance published in the
Internal Revenue Bulletin, provide any
additional guidance that may be necessary
or appropriate in applying the nondis-
crimination requirements of § 401(a)(4),
including additional safe harbors and al-
ternative methods and procedures for sat-
isfying those requirements. See § 1.401(a)
(4)-1(d).
B. Notice 2014-5 Temporary
Nondiscrimination Relief for Closed
Defined Benefit Plans
Notice 2014-5 addresses the increas-
ingly common situation of a defined
benefit plan that has been closed to new
entrants. The plan sponsor of a closed de-
fined benefit plan typically provides a de-
fined contribution plan for its new hires.
Under these arrangements, in the early
years after the defined benefit plan has
been closed to new entrants, the plan may
be able to satisfy the coverage requirement
of § 410(b) without being aggregated with
the defined contribution plan. However,
the § 410(b) minimum coverage test typi-
cally becomes more difficult for the closed
defined benefit plan to satisfy over time,
as the proportion of plan participants who
are HCEs increases. This might occur for
several reasons, including the tendency of
NHCEs to have higher rates of turnover
than HCEs, as well as the potential for
some of the NHCEs in the closed plan to
become HCEs as they continue employ-
ment and their compensation increases.
If the closed defined benefit plan can-
not satisfy the coverage requirement of
§ 410(b) on its own, it must be aggregat-
ed with another plan in order to satisfy
that coverage requirement. If the defined
benefit plan is aggregated with a defined
contribution plan that covers the employ-
er’s new hires to satisfy the coverage re-
quirement, then it is also required to be
aggregated with the defined contribution
plan for purposes of satisfying the nondis-
crimination requirements of § 401(a)(4).
In the typical case, the aggregated plans
will fail the requirements of § 401(a)(4)
unless they are permitted to demonstrate
compliance with the nondiscrimination re-
quirements on the basis of equivalent ben-
efits. The aggregated plans usually may
demonstrate nondiscrimination on the
basis of equivalent benefits in the initial

Bulletin No. 2019–49 1293 December 2, 2019
years of aggregation without the need for
benefit changes. However, the same de-
mographic forces that drive the increase in
the proportion of HCEs in the closed plan
over time might lead to the aggregated
plans being permitted to demonstrate non-
discrimination on the basis of equivalent
benefits only if the plans satisfy the mini-
mum aggregate allocation gateway (which
requires a minimum level of benefits to be
provided to NHCEs).
Notice 2014-5 provides temporary
nondiscrimination relief for certain closed
defined benefit pension plans. Specifical-
ly, for plan years beginning before 2016,
Section III.B of Notice 2014-5 permits
a DB/DC plan that includes a closed de-
fined benefit plan (that was closed before
December 13, 2013) and that satisfies
certain conditions set forth in the notice
to demonstrate satisfaction of the non-
discrimination in amount requirement
of § 1.401(a)(4)-1(b)(2) on the basis of
equivalent benefits even if the DB/DC
plan does not meet any of the existing eli-
gibility conditions for testing on that basis
under § 1.401(a)(4)-9(b)(2)(v). That is,
such a DB/DC plan may satisfy the non-
discrimination requirements on the basis
of equivalent benefits without being re-
quired to satisfy the minimum aggregate
allocation gateway.
A series of notices extend the tempo-
rary nondiscrimination relief provided in
Notice 2014-5 by applying that relief to
plan years beginning before 2021 if the
conditions of Notice 2014-5 are satisfied.
See Notice 2015-28, 2015-14 I.R.B. 848,
Notice 2016-57, 2016-40 I.R.B. 432, No-
tice 2017-45, 2017-38 I.R.B. 232, Notice
2018-69, 2018-37 I.R.B. 426, and Notice
2019-49, 2019-37 I.R.B. 699.
C. Proposed regulations to provide
nondiscrimination relief for closed
defined benefit pension plans
Proposed regulations relating to non-
discrimination requirements for closed
plans were published in the Federal Reg-
ister on January 29, 2016 (81 FR 4976).
The proposed regulations set forth relief
for closed plans under §§ 1.401(a)(4)-4,
1.401(a)(4)-8, and 1.401(a)(4)-9 (subject
to satisfaction of certain conditions set
forth in the regulations) and contain oth-
er proposed nondiscrimination rules. The
regulations generally are proposed to ap-
ply to plan years beginning on or after the
date of publication of the final regulations
in the Federal Register. The proposed reg-
ulations provide that taxpayers are per-
mitted to apply certain provisions of the
proposed regulations (including all of the
provisions that apply specifically to closed
plans) for certain plan years beginning be-
fore the proposed applicability date. No-
tice 2019-49 states that it is expected that
the final regulations will provide that the
reliance granted in the preamble to the
proposed regulations may be applied for
plan years beginning before 2021. Thus,
for plan years beginning before January
1, 2021, taxpayers may apply the relief
in Notice 2014-5 (as extended), as well
as the rules relating to closed plans in the
proposed regulations.
The provisions under the proposed
amendments to § 1.401(a)(4)-4 with re-
spect to defined benefit plans provide re-
lief from nondiscrimination testing with
respect to a benefit, right, or feature that
is made available only to a grandfathered
group of employees with respect to a
closed plan. Specifically, if the eligibility
conditions in the proposed regulations are
satisfied, the special testing rule treats a
benefit, right, or feature that is provided
only to a grandfathered group of employ-
ees as satisfying the current and effective
availability tests of § 1.401(a)(4)-4(b) and
(c). Because the special testing rule does
not apply until plan years that begin on or
after the fifth anniversary of the closure
date (as defined in the proposed regula-
tions), the benefit, right or feature must be
currently available to a group of employ-
ees that satisfies the minimum coverage
requirements of § 410(b) (without regard
to the average benefit percentage test of §
1.410(b)-5) for plan years that begin with-
in the 5 years immediately following the
closure date.
The relief under the proposed amend-
ments to § 1.401(a)(4)-4 is available
only if the amendment restricting the
availability of the benefit, right, or fea-
ture also resulted in a significant change
in the type of the defined benefit plan’s
formula. For example, a plan amendment
that changes the plan formula from an an-
nual percentage of final average annual
compensation to a cash balance formu-
la would be a significant change in the
type of benefit formula, so that the spe-
cial testing rule would apply to facilitate
preservation of any subsidized early re-
tirement factors for the employees who
continue to benefit under the prior benefit
formula. In addition, this proposed relief
is available only if no plan amendment
that affects the availability of the benefit,
right, or feature (other than the closure
amendment, as defined in the proposed
regulations) is adopted or made effective
during the period that began 5 years be-
fore the closure date (with exceptions for
certain types of amendments, such as an
amendment that expands or restricts the
eligibility for the benefit, right, or fea-
ture, if, as of the applicable amendment
date, the post-amendment ratio percent-
age of the group of employees eligible
for the benefit, right, or feature is not less
than the pre-amendment ratio percentage
of the group of employees eligible for the
benefit, right, or feature).
Many comments have been submitted
on the proposed regulations, including
oral comments at a public hearing held
on May 19, 2016. The Department of the
Treasury and the Internal Revenue Service
(IRS) expect that the final regulations will
include a number of significant changes in
response to those comments.
III. ADDITIONAL RELIEF FOR
CLOSED DEFINED BENEFIT
PLANS WITH RESPECT TO
BENEFITS, RIGHTS, OR FEATURES
A. Need for relief relating to benefits,
rights, or features
At the time a defined benefit plan is
closed to new entrants, the plan may pro-
vide for benefits, rights, or features that
are not available to participants in other
plans of the employer. For such a plan, the
proposed regulations provide relief from
the requirements of § 1.401(a)(4)-4 relat-
ing to benefits, rights, or features only if
the amendment restricting the availability
of the benefit, right, or feature also result-
ed in a significant change in the type of the
defined benefit plan’s formula. Thus, nei-
ther Notice 2014-5 nor the proposed regu-
lations provide relief under § 1.401(a)(4)-
4 for a defined benefit plan that is closed
to new entrants but has not undergone a
change in benefit formula with respect to

December 2, 2019 1294 Bulletin No. 2019–49
existing participants. In addition, the re-
lief in the proposed regulations relating to
benefits, rights, or features is conditioned
on compliance with requirements relating
to plan amendments that may have oc-
curred long before the proposed regula-
tions were issued.
Commenters on the proposed regula-
tions observed the need for relief relating
to benefits, rights, and features for a plan
if the plan is closed to new entrants (but
has not undergone a significant change
in the type of the plan’s benefit formula).
Commenters also observed the need for
relief relating to plan amendments that
occurred before the proposed regulations
were issued.
B. Temporary relief for certain closed
defined benefit plans with respect to
benefits, rights, or features
Pursuant to the authority under §
1.401(a)(4)-1(d) to provide alternative
methods for satisfying the nondiscrim-
ination requirements, this section III.B
provides a closed defined benefit plan
that generally meets the eligibility condi-
tions for the temporary relief under No-
tice 2014-5 (as extended) with additional
temporary relief from the requirements of
§ 1.401(a)(4)-4 relating to benefits, rights,
or features.
1. Plans to which temporary relief applies
The temporary relief under this sec-
tion III.B applies to a plan if it is a de-
fined benefit plan providing ongoing
accruals that was amended, by an amend-
ment adopted before December 13, 2013,
to provide that only employees who par-
ticipated in the defined benefit plan on a
specified date continue to accrue benefits
under the plan. Thus, this relief applies
to defined benefit plans for which the re-
lief under Notice 2014-5 (as extended)
is available (except that eligibility for
this relief does not depend on the meth-
od used to satisfy the nondiscrimination
requirements for the plan year beginning
in 2013).
2. Period of temporary relief
The temporary relief under this sec-
tion III.B applies for plan years ending
after November 13, 2019, and beginning
before January 1, 2021. Accordingly, the
last plan year for which this relief ap-
plies is the same as the last plan year for
which the relief under Notice 2014-5, as
extended most recently by Notice 2019-
49, applies.
3. Effect of temporary relief
The following treatment may be ap-
plied to a defined benefit plan described
in section III.B.1 of this notice for a plan
year described in section III.B.2 of this
notice:
The plan is treated as satisfying
§ 1.401(a)(4)-4(b) and (c) for the plan
year with respect to a benefit, right, or
feature that was provided under the plan
at the time the amendment described in
section III.B.1 of this notice was adopted.
This relief applies only if either:
(i) No amendment adopted after January
29, 2016 expands or restricts the eli-
gibility for the benefit, right, or fea-
ture; or
(ii) If any such amendment has been
adopted, then, as of the applicable
amendment date for that amendment
(determined under § 1.411(d)-3(g)
(4)),
1
the post-amendment ratio per-
centage of the group of employees el-
igible for the benefit, right, or feature
was not less than the pre-amendment
ratio percentage of the group of em-
ployees eligible for the benefit, right,
or feature.
DRAFTING INFORMATION
The principal author of this notice is
Diane S. Bloom of the Office of the Asso-
ciate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in development of
this guidance. For further information
regarding this notice, please contact Ms.
Bloom or Linda Marshall at (202) 317-
6700 (not a toll-free number).
Part III — Administrative,
Miscellaneous, and
Procedural
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2019-61
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 aver-
age 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).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
gle-employer plans (except for CSEC
plans under § 414(y)) pursuant to § 412.
Section 430(h)(2) specifies the inter-
est rates that must be used to determine
a plan’s target normal cost and funding
target. Under this provision, present val-
ue is generally determined using three
24-month average interest rates (“segment
rates”), each of which applies to cash
flows during specified periods. To the ex-
tent provided under § 430(h)(2)(C)(iv),
these segment rates are adjusted by the ap-
plicable percentage of the 25-year average
segment rates for the period ending Sep-
tember 30 of the year preceding the cal-
1
Under § 1.411(d)-3(g)(4), the term “applicable amendment date,” with respect to a plan amendment, means the later of the effective date of the amendment or the date the amendment is
adopted.

Bulletin No. 2019–49 1295 December 2, 2019
endar 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. Consistent
with the methodology specified in Notice
2007-81, the monthly corporate bond yield
curve derived from October 2019 data is in
Table 2019-10 at the end of this notice. The
spot first, second, and third segment rates
for the month of October 2019 are, respec-
tively, 2.01, 3.06, and 3.65.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant
to § 430(h)(2)(C)(iv) to be within the
applicable minimum and maximum per-
centages of the corresponding 25-year
average segment rates. For plan years be-
ginning before 2021, the applicable mini-
mum percentage is 90% and the applica-
ble maximum percentage is 110%. The
25-year average segment rates for plan
years beginning in 2018, 2019, and 2020
were published in Notice 2017-50, 2017-
41 I.R.B. 280, Notice 2018-73, 2018-40
I.R.B. 526 and Notice 2019-51, 2019-41
I.R.B. 866, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for No-
vember 2019 without adjustment for the
25-year average segment rate limits are as
follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
November 2019 2.79 3.87 4.33
Based on § 430(h)(2)(C)(iv), the
24-month averages applicable for Novem-
ber 2019, adjusted to be within the appli-
cable minimum and maximum percentag-
es of the corresponding 25-year average
segment rates, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2018November 20193.925.526.29
2019November 20193.745.356.11
2020November 20193.645.215.94
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to multi-
employer plans pursuant to § 412. Section
431(c)(6)(B) specifies a minimum amount
for the full-funding limitation described in
§ 431(c)(6)(A), based on the plan’s current
liability. Section 431(c)(6)(E)(ii)(I) pro-
vides 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 aver-
age of the rates of interest on 30-year Trea-
sury securities during the four-year period
ending on the last day before the beginning
of the plan year. Notice 88-73, 1988-2 C.B.
383, provides guidelines for determining
the weighted average interest rate. The
rate of interest on 30-year Treasury securi-
ties for October 2019 is 2.19 percent. The
Service determined this rate as the average
of the daily determinations of yield on the
30-year Treasury bond maturing in August
2049. For plan years beginning in Novem-
ber 2019, the weighted average of the rates
of interest on 30-year Treasury securities
and the permissible range of rates used to
calculate current liability are as follows:
For Plan Years
Beginning In
30-Year Treasury
Weighted Average
Permissible Range
90% to 105%
November 20192.852.57 to 3.00
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)).

December 2, 2019 1296 Bulletin No. 2019–49
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 October 2019
are as follows:
Month First Segment Second Segment Third Segment
October 2019 2.01 3.06 3.65
DRAFTING INFORMATIONciate Chief Counsel (Employee Benefits, of this guidance. For further information
Exempt Organizations, and Employment regarding this notice, contact Mr. Morgan
The principal author of this notice is Taxes). However, other personnel from at 202-317-6700 or Paul Stern at 202-317-
Tom Morgan of the Office of the Asso-the IRS participated in the development 8702 (not toll-free numbers).

Bulletin No. 2019–49 1297 December 2, 2019
Table 2019-10
Monthly Yield Curve for October 2019
Derived from October 2019 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.51.9120.53.4940.53.6760.53.7380.53.77
1.01.9321.03.5041.03.6761.03.7481.03.77
1.51.9621.53.5141.53.6761.53.7481.53.77
2.01.9722.03.5242.03.6862.03.7482.03.77
2.51.9922.53.5242.53.6862.53.7482.53.77
3.02.0023.03.5343.03.6863.03.7483.03.77
3.52.0223.53.5443.53.6863.53.7483.53.77
4.02.0624.03.5444.03.6964.03.7484.03.77
4.52.1024.53.5544.53.6964.53.7484.53.77
5.02.1525.03.5545.03.6965.03.7485.03.77
5.52.2225.53.5645.53.6965.53.7485.53.77
6.02.2926.03.5646.03.6966.03.7486.03.77
6.52.3726.53.5746.53.7066.53.7586.53.77
7.02.4527.03.5747.03.7067.03.7587.03.77
7.52.5327.53.5847.53.7067.53.7587.53.77
8.02.6228.03.5848.03.7068.03.7588.03.77
8.52.7028.53.5948.53.7068.53.7588.53.77
9.02.7729.03.5949.03.7069.03.7589.03.78
9.52.8529.53.6049.53.7169.53.7589.53.78
10.02.9130.03.6050.03.7170.03.7590.03.78
10.52.9830.53.6150.53.7170.53.7590.53.78
11.03.0431.03.6151.03.7171.03.7591.03.78
11.53.0931.53.6251.53.7171.53.7591.53.78
12.03.1432.03.6252.03.7172.03.7592.03.78
12.53.1832.53.6252.53.7172.53.7692.53.78
13.03.2233.03.6353.03.7273.03.7693.03.78
13.53.2633.53.6353.53.7273.53.7693.53.78
14.03.2934.03.6354.03.7274.03.7694.03.78
14.53.3234.53.6454.53.7274.53.7694.53.78
15.03.3435.03.6455.03.7275.03.7695.03.78
15.53.3735.53.6455.53.7275.53.7695.53.78
16.03.3836.03.6556.03.7276.03.7696.03.78
16.53.4036.53.6556.53.7276.53.7696.53.78
17.03.4237.03.6557.03.7377.03.7697.03.78
17.53.4337.53.6557.53.7377.53.7697.53.78
18.03.4538.03.6658.03.7378.03.7698.03.78
18.53.4638.53.6658.53.7378.53.7698.53.78
19.03.4739.03.6659.03.7379.03.7699.03.78
19.53.4839.53.6759.53.7379.53.7699.53.78
20.03.4940.03.6760.03.7380.03.77100.03.78

December 2, 2019 1298 Bulletin No. 2019–49
Administrative, Procedural,
and Miscellaneous
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also: Part 1, §§ 6662, 6694, 1.6662-4, 1.6694-2)
Adequate Disclosure
Revenue Procedure
Renewal
Rev. Proc. 2019-42
SECTION 1. PURPOSE
This revenue procedure updates Rev.
Proc. 2019-09, 2019-02 I.R.B. 292, and
identifies circumstances under which the
disclosure on a taxpayer’s income tax re-
turn with respect to an item or position
is adequate for the purpose of reducing
the understatement of income tax under
section 6662(d) of the Internal Revenue
Code (relating to the substantial under-
statement aspect of the accuracy-related
penalty), and for the purpose of avoiding
the tax return preparer penalty under sec-
tion 6694(a) (relating to understatements
due to unreasonable positions) with re-
spect to income tax returns. This revenue
procedure does not apply with respect to
any other penalty provisions (including
but not limited to the disregard provisions
of the section 6662(b)(1) accuracy-relat-
ed penalty, the section 6662(b)(6) accura-
cy-related penalty and the section 6662(i)
increased accuracy-related penalty in the
case of nondisclosed noneconomic sub-
stance transactions, and the section 6662(j)
increased accuracy-related penalty in the
case of undisclosed foreign financial asset
understatements). If this revenue proce-
dure does not include an item or position,
disclosure is adequate with respect to that
item or position only if made on a prop-
erly completed Form 8275 or 8275-R, as
appropriate, attached to the return for the
year or to a qualified amended return. See
Treas. Reg. § 1.6664-2(c) for information
about qualified amended returns.
This revenue procedure applies to any
income tax return filed on 2019 tax forms
for a taxable year beginning in 2019, and
to any income tax return filed in 2020 on
2019 tax forms for short taxable years be-
ginning in 2020.
SECTION 2. CHANGES FROM REV.
PROC. 2019-09
Editorial changes have been made
throughout this revenue procedure. In ad-
dition, minor changes have been made in
order to update the taxable years and tax
forms to which this revenue procedure ap-
plies. No additional substantive changes
have been made.
SECTION 3. BACKGROUND
.01 If section 6662 applies to any por-
tion of an underpayment of tax required to
be shown on a return, an amount equal to
20 percent of the portion of the underpay-
ment is added to the tax. The penalty rate
increases to 40 percent in the case of gross
valuation misstatements under section
6662(h), nondisclosed noneconomic sub-
stance transactions under section 6662(i),
or undisclosed foreign financial asset un-
derstatements under section 6662(j). Sec-
tion 6662(b)(2) applies to the portion of
an underpayment of tax that is attributable
to a substantial understatement of income
tax.
.02 Generally, there is a substantial un-
derstatement of income tax if the amount
of the understatement exceeds the great-
er of (i) 10 percent of the amount of tax
required to be shown on the return for
the taxable year or (ii) $5,000. Section
6662(d)(1). Section 6662(d)(1)(C) pro-
vides a special rule for taxpayers claiming
a section 199A deduction. In the case of
any taxpayer who claims any deduction
allowed under section 199A for the tax-
able year, there is a substantial understate-
ment of income tax if the amount of the
understatement exceeds the greater of (i)
5 percent of the amount of tax required
to be shown on the return for the taxable
year or (ii) $5,000. Section 6662(d)(1)(B)
provides a special rule for corporations.
A corporation (other than an S corpora-
tion or a personal holding company) has
a substantial understatement of income
tax if the amount of the understatement
exceeds the lesser of (i) 10 percent of the
tax required to be shown on the return for
a taxable year (or, if greater, $10,000) or
(ii) $10,000,000. Generally, an under-
statement is the excess of the amount of
tax required to be shown on the return for
the taxable year over the amount of the
tax that is shown on the return reduced
by any rebate, where the excess is deter-
mined without regard to items to which
the reportable transaction understatement
penalty under section 6662A applies.
Section 6662(d)(2)(A). For purposes of
determining whether an understatement
is substantial, the understatement deter-
mined under the general rule is increased
by the aggregate amount of any reportable
transaction understatements relating to the
return. Section 6662A(e)(1)(A).
.03 In the case of an item not attribut-
able to a tax shelter, if the taxpayer has a
reasonable basis for the tax treatment of
the item, the amount of the understate-
ment is reduced by the portion of the un-
derstatement attributable to the item with
respect to which the relevant facts affect-
ing the item’s tax treatment are adequately
disclosed in the return or in a statement
attached to the return. Section 6662(d)(2)
(B)(ii).
.04 Section 6694(a) imposes a penal-
ty on a tax return preparer who prepares
a return or claim for refund reflecting an
understatement of liability due to an “un-
reasonable position” if the tax return pre-
parer knew (or reasonably should have
known) of the position. A position (other
than a position with respect to a tax shelter
or a reportable transaction to which sec-
tion 6662A applies) is generally treated
as unreasonable unless (i) there is or was
substantial authority for the position, or
(ii) the position was properly disclosed in
accordance with section 6662(d)(2)(B)(ii)
(I) and had a reasonable basis. If the po-
sition is with respect to a tax shelter (as
defined in section 6662(d)(2)(C)(ii)) or
a reportable transaction to which section
6662A applies, the position is treated as
unreasonable unless it is reasonable to be-
lieve that the position would more likely
than not be sustained on the merits. See
Notice 2009-5, 2009-3 I.R.B. 309, for
interim penalty compliance rules for tax
shelter transactions.
.05 In general, this revenue procedure
provides guidance for determining when
disclosure by return is adequate for pur-
poses of section 6662(d)(2)(B)(ii) and

Bulletin No. 2019–49 1299 December 2, 2019
section 6694(a)(2)(B). For purposes of
this revenue procedure, the taxpayer must
furnish all required information in ac-
cordance with the applicable forms and
instructions, and the money amounts en-
tered on these forms must be verifiable.
.06 This revenue procedure may apply
to a return for a fiscal tax year that begins
in 2019 and ends in 2020. This revenue
procedure may also apply to a short year
return for a period beginning in 2020 if
the return is to be filed before the 2020
forms are available. (Note that individuals
are generally not put in this position. The
most frequent situation in which a short
year arises is when filing a decedent’s final
return for a fractional part of a year. In that
situation, the 2020 form will be available
because the final return is due the fifteenth
day of the fourth month following the
close of the 12-month period that began
with the first day of such fractional part of
the year (meaning the due date is not ac-
celerated). See Treas. Reg. § 1.6072-1(b).
In the case of fiscal year and short year re-
turns, the taxpayer must take into account
any tax law changes that are effective for
tax years beginning after December 31,
2019, even though these changes are not
reflected on the form or instructions.
.07 This document does not take into
account the effect of tax law changes ef-
fective for tax years beginning after De-
cember 31, 2019. If a line referenced in
this revenue procedure is affected by such
a change and requires additional reporting,
a taxpayer may have to file Form 8275,
Disclosure Statement, or Form 8275-R,
Regulation Disclosure Statement, until the
Service prescribes criteria for complying
with the requirement.
.08 A complete and accurate disclosure
of a tax position on the appropriate year’s
Schedule UTP, Uncertain Tax Position
Statement, will be treated as if the corpo-
ration filed a Form 8275 or Form 8275-R
regarding the tax position. The filing of
a Form 8275 or Form 8275-R, however,
will not be treated as if the corporation
filed a Schedule UTP.
SECTION 4. PROCEDURE
.01 General
(1) Additional disclosure of facts rele-
vant to, or positions taken with respect to,
issues involving any of the items set forth
below is unnecessary for purposes of re-
ducing any understatement of income tax
under section 6662(d) (except as other-
wise provided in section 4.02(3) concern-
ing Schedules M-1 and M-3), provided
that the forms and attachments are com-
pleted in a clear manner and in accordance
with their instructions.
(2) The money amounts entered on
the forms must be verifiable, and the in-
formation on the return must be disclosed
in the manner described below. For pur-
poses of this revenue procedure, a num-
ber is verifiable if, on audit, the taxpayer
can prove the origin of the amount (even
if that number is not ultimately accepted
by the Service) and the taxpayer can show
good faith in entering that number on the
applicable form.
(3) The disclosure of an amount as
provided in section 4.02 below is not ad-
equate when the understatement arises
from a transaction between parties who
are related within the meaning of section
267(b). If an entry may present a legal
issue or controversy because of a relat-
ed-party transaction, then that transaction
and the relationship must be disclosed on
a Form 8275 or Form 8275-R.
(4) When the amount of an item is shown
on a line that does not have a preprinted de-
scription identifying that item (such as on
an unnamed line under an “Other Expense”
category), the taxpayer must clearly iden-
tify the item by including the description
on that line. For example, to disclose a bad
debt for a sole proprietorship, the words
“bad debt” must be written or typed on the
line of Schedule C (Form 1040 or 1040SR)
that shows the amount of the bad debt.
Also, for Schedule M-3 (Form 1120), Part
II, line 25, Other income (loss) items with
differences, or Part III, line 38, Other ex-
pense/deduction items with differences, the
entry must provide descriptive language;
for example, “Cost of non-compete agree-
ment deductible not capitalizable,” and the
description must be provided on an attach-
ment. Similarly, for other forms, if space
limitations on a form do not allow for an
adequate description, the description must
be continued on an attachment.
(5) Although a taxpayer may literally
meet the disclosure requirements of this
revenue procedure, the disclosure will
have no effect for purposes of the section
6662 accuracy-related penalty if the item
or position on the return: (1) does not have
a reasonable basis as defined in Treas.
Reg. § 1.6662-3(b)(3); (2) is attributable
to a tax shelter item as defined in section
6662(d)(2)(C)(ii); or (3) is not proper-
ly substantiated or the taxpayer failed to
keep adequate books and records with re-
spect to the item or position.
(6) Disclosure also will have no effect
for purposes of the section 6694(a) penal-
ty as applicable to tax return preparers if
the position is with respect to a tax shelter
(as defined in section 6662(d)(2)(C)(ii)) or
a reportable transaction to which section
6662A applies.
.02 Items
(1) Form 1040, Schedule A, Itemized
Deductions:
(a) Medical and Dental Expenses:
Complete lines 1 through 4, supplying all
required information.
(b) Taxes: Complete lines 5 through 7,
supplying all required information. Line 6
must list each type of tax and the amount
paid.
(c) Interest Expenses: Complete lines 8
through 10, supplying all required infor-
mation. This section 4.02(1)(c) does not
apply to (i) amounts disallowed under sec-
tion 163(d) unless Form 4952, Investment
Interest Expense Deduction, is completed,
or (ii) amounts disallowed under section
265.
(d) Charitable Contributions: Complete
lines 11 through 14, supplying all required
information and attaching all related forms
required pursuant to statute or regulation.
(e) Casualty and Theft Losses: Com-
plete Form 4684, Casualties and Thefts,
and attach to the return. Each item or ar-
ticle for which a casualty or theft loss is
claimed must be listed on Form 4684.
(2) Certain Trade or Business Expens-
es (including, for purposes of this section,
the following six expenses as they relate
to the rental of property):
(a) Casualty and Theft Losses: The
procedure outlined in section 4.02(1)(e)
must be followed.
(b) Legal Expenses: The amount
claimed must be stated. This section does
not apply, however, to amounts properly
characterized as capital expenditures, per-
sonal expenses, or non-deductible lobby-
ing or political expenditures, including
amounts that are required to be (or that
are) amortized over a period of years.

December 2, 2019 1300 Bulletin No. 2019–49
(c) Specific Bad Debt Charge-off: The
amount written off must be stated.
(d) Officers’ Compensation: Complete
Form 1125-E, Compensation of Officers,
when its instructions require completion.
You must express the “percent of time
devoted to business” as a numerical per-
centage, rather than as a non-numerical
description such as “part” or “as needed.”
This section does not apply to “excess
parachute payments,” as defined in sec-
tion 280G. This section does not apply
to the extent that remuneration paid or
incurred exceeds an applicable employ-
ee-remuneration deduction limitation un-
der section 162(m).
(e) Repair Expenses: The amount
claimed must be stated. This section does
not apply, however, to any amount proper-
ly characterized as capital expenditures or
personal expenses.
(f) Taxes (other than foreign taxes):
The amount claimed must be stated.
(3) Differences in book and income tax
reporting:
For Schedule M-1 and all Schedules
M-3, including those listed in (a)-(f) be-
low, the information provided must rea-
sonably apprise the Service of the po-
tential controversy concerning the tax
treatment of the item. If the information
provided does not so apprise the Service, a
Form 8275 or Form 8275-R must be used
to adequately disclose the item (see Part II
of the instructions for those forms).
Note: An item reported on a line with
a pre-printed description, shown on an at-
tached schedule or “itemized” on Sched-
ule M-1, may represent the aggregate
amount of several transactions producing
that item (i.e., a group of similar items,
such as amounts paid or incurred for sup-
plies by a taxpayer engaged in business).
In some instances, a potentially contro-
versial item may involve a portion of the
aggregate amount disclosed on the sched-
ule. The Service will not be reasonably
apprised of a potential controversy by the
aggregate amount disclosed. In these in-
stances, the taxpayer must use Form 8275
or Form 8275-R regarding that portion of
the item.
Combining unlike items, whether on
Schedule M-1 or Schedule M-3 (or on an
attachment when directed by the instruc-
tions), will not constitute an adequate dis-
closure.
Additionally, taxpayers that file the
Schedule M-3 (Form 1120), Net Income
(Loss) Reconciliation for Corporations
With Total Assets of $10 Million or More,
may be required to complete Schedule B
(Form 1120), Additional Information for
Schedule M-3 Filers. For further infor-
mation, see Who Must File in the General
Instructions for Schedule B (Form 1120).
Taxpayers that file the Schedule M-3
(Form 1065), Net Income (Loss) Recon-
ciliation for Certain Partnerships, may be
required to complete Schedule C (Form
1065), Additional Information for Sched-
ule M-3 Filers. For further information,
see Who Must File in the General Instruc-
tions for Schedule C (Form 1065). When
required, these schedules are necessary to
constitute adequate disclosure:
(a) Form 1065. Schedule M-3 (Form
1065), Net Income (Loss) Reconciliation
for Certain Partnerships: Column (a),
Income (Loss) per Income Statement, of
Part II (reconciliation of income (loss)
items) and Column (a), Expense per In-
come Statement, of Part III (reconciliation
of expense/deduction items); Column (b),
Temporary Difference, and Column (c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d), Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(b) Form 1120. (i) Schedule M-1, Rec-
onciliation of Income (Loss) per Books
With Income per Return.
(ii) Schedule M-3 (Form 1120), Net
Income (Loss) Reconciliation for Corpo-
rations With Total Assets of $10 Million or
More: Column (a), Income (Loss) per In-
come Statement, of Part II (reconciliation
of income (loss) items) and Column (a),
Expense per Income Statement, of Part
III (reconciliation of expense/deduction
items); Column (b), Temporary Differ-
ence, and Column (c), Permanent Differ-
ence, of Part II (reconciliation of income
(loss) items) and Part III (reconciliation
of expense/deduction items); and Column
(d), Income (Loss) per Tax Return, of Part
II (reconciliation of income (loss) items)
and Column (d), Deduction per Tax Re-
turn, of Part III (reconciliation of expense/
deduction items).
(c) Form 1120-L. Schedule M-3 (Form
1120-L), Net Income (Loss) Reconcil-
iation for U.S. Life Insurance Compa-
nies With Total Assets of $10 Million or
More: Column (a), Income (Loss) per In-
come Statement, of Part II (reconciliation
of income (loss) items) and Column (a),
Expense per Income Statement, of Part
III (reconciliation of expense/deduction
items); Column (b), Temporary Differ-
ence, and Column (c), Permanent Differ-
ence, of Part II (reconciliation of income
(loss) items) and Part III (reconciliation
of expense/deduction items); and Column
(d), Income (Loss) per Tax Return, of Part
II (reconciliation of income (loss) items)
and Column (d), Deduction per Tax Re-
turn, of Part III (reconciliation of expense/
deduction items).
(d) Form 1120-PC. Schedule M-3
(Form 1120-PC), Net Income (Loss) Rec-
onciliation for U.S. Property and Ca-
sualty Insurance Companies With Total
Assets of $10 Million or More: Column
(a), Income (Loss) per Income Statement,
of Part II (reconciliation of income (loss)
items) and Column (a), Expense per In-
come Statement, of Part III (reconciliation
of expense/deduction items); Column (b),
Temporary Difference, and Column (c),
Permanent Difference, of Part II (recon-
ciliation of income (loss) items) and Part
III (reconciliation of expense/deduction
items); and Column (d), Income (Loss)
per Tax Return, of Part II (reconciliation
of income (loss) items) and Column (d),
Deduction per Tax Return, of Part III (rec-
onciliation of expense/deduction items).
(e) Form 1120-S. Schedule M-3 (Form
1120-S), Net Income (Loss) Reconcilia-
tion for S Corporations With Total As-
sets of $10 Million or More: Column (a),
Income (Loss) per Income Statement, of
Part II (reconciliation of income (loss)
items) and Column (a), Expense per
Income Statement, of Part III (recon-
ciliation of expense/deduction items);
Column (b), Temporary Difference, and
Column (c), Permanent Difference, of
Part II (reconciliation of income (loss)
items) and Part III (reconciliation of ex-
pense/deduction items); and Column (d),
Income (Loss) per Tax Return, of Part II
(reconciliation of income (loss) items)
and Column (d), Deduction per Tax Re-
turn, of Part III (reconciliation of ex-
pense/deduction items).

Bulletin No. 2019–49 1301 December 2, 2019
(f) Form 1120-F. Schedule M-3 (Form
1120-F), Net Income (Loss) Reconcilia-
tion for Foreign Corporations With Re-
portable Assets of $10 Million or More:
Column (b), Temporary Differences, Col-
umn (c), Permanent Differences, and Col-
umn (d), Other Permanent Differences for
Allocations to Non-ECI and ECI, of Part
II (reconciliation of income (loss) items)
and Part III (reconciliation of expense/de-
duction items).
(4) Foreign Tax Items:
(a) International Boycott Transactions:
Transactions disclosed on Form 5713,
International Boycott Report; Schedule
A, International Boycott Factor (Sec-
tion 999(c)(1)); Schedule B, Specifically
Attributable Taxes and Income (Section
999(c)(2)); and Schedule C, Tax Effect of
the International Boycott Provisions, must
be completed when required by their in-
structions.
(b) Treaty-Based Return Position:
Transactions and amounts under sec-
tion 6114 or section 7701(b) as disclosed
on Form 8833, Treaty-Based Return Po-
sition Disclosure Under Section 6114 or
7701(b), must be completed when re-
quired by its instructions.
(5) Other:
(a) Moving Expenses: Complete Form
3903, Moving Expenses, and attach to the
return.
(b) Employee Business Expenses:
Complete Form 2106, Employee Business
Expenses (for use only by Armed Forces
reservists, qualified performing artists,
fee-basis state or local government offi-
cials, and employees with impairment-re-
lated work expenses), and attach to the
return. This section does not apply to club
dues or to travel expenses for any non-em-
ployee accompanying the taxpayer on the
trip.
(c) Fuels Credit: Complete Form 4136,
Credit for Federal Tax Paid on Fuels, and
attach to the return.
(d) Investment Credit: Complete Form
3468, Investment Credit, and attach to the
return.
SECTION 5. EFFECTIVE DATE
This revenue procedure applies to any
income tax return filed on a 2019 tax form
for a taxable year beginning in 2019 and
to any income tax return filed on a 2019
tax form in 2020 for a short taxable year
beginning in 2020.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Casey R. Conrad of the Of-
fice of the Associate Chief Counsel (Pro-
cedure & Administration). For further
information regarding this revenue proce-
dure, contact Branch 2 of Procedure and
Administration at (202) 317-6844 (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, §§ 62, 67, 162, 170, 213, 217, 274,
1016; 1.62-2, 1.162-17, 1.170A-1, 1.213-1, 1.217-2,
1.274-5, 1.1016-3.)
Rev. Proc. 2019-46
SECTION 1. PURPOSE
This revenue procedure modifies Rev.
Proc. 2010-51, 2010-51 I.R.B. 883, to re-
flect changes made to §§ 67 and 217 of
the Internal Revenue Code by §§ 11045
and 11049 of Public Law No. 115-97, 131
Stat. 2054 (2017), commonly referred
to as the Tax Cuts and Jobs Act (TCJA).
This revenue procedure provides rules for
using optional standard mileage rates in
computing the deductible costs of operat-
ing an automobile for business, charitable,
medical, or moving expense purposes.
This revenue procedure also provides
rules for substantiating, under § 274(d)
and § 1.274-5 of the Income Tax Regu-
lations, the amount of an employee’s or-
dinary and necessary expenses of local
travel or transportation away from home
that a payor (an employer, its agent, or a
third party) reimburses using a mileage
allowance. Taxpayers are not required to
use the substantiation methods described
in this revenue procedure. A taxpayer may
substantiate actual allowable expense
amounts if the taxpayer maintains ade-
quate records or other sufficient evidence.
The Internal Revenue Service (IRS) pro-
spectively adjusts the standard mileage
rates for business, medical, and moving
expenses annually (to the extent warrant-
ed). The IRS publishes the standard mile-
age rates for the use of an automobile for
business, charitable, medical, and moving
expense purposes in a separate annual no-
tice.
SECTION 2. BACKGROUND AND
CHANGES
.01 Section 162(a) allows a deduction
for the ordinary and necessary expenses a
taxpayer pays or incurs during the taxable
year in carrying on any trade or business,
including the cost of operating an automo-
bile to the extent that it is used in a trade
or business.
.02 Under § 262, a taxpayer may not
deduct any portion of the cost of operating
an automobile attributable to personal use.
.03 To deduct expenses for travel or list-
ed property, a taxpayer must substantiate
the expenses under § 274(d). As amended
by the TCJA, § 280F(d)(4) continues to
provide that listed property includes pas-
senger automobiles and any other proper-
ty used as a means of transportation.
.04 Section 1.274-5(g) and (j) authoriz-
es the Commissioner of Internal Revenue
(Commissioner) to prescribe rules and
establish methods under which mileage
rates and allowances that comply with
reasonable business practice are treated
as (1) equivalent to substantiation, by ade-
quate records or other sufficient evidence,
of the amount of transportation expenses
for purposes of § 1.274-5(c), and (2) satis-
fying the requirements of an adequate ac-
counting to the employer of the amount of
the expenses for purposes of § 1.274-5(f).
.05 In computing adjusted gross in-
come, § 62(a)(1) allows an individual tax-
payer to deduct expenses paid or incurred
by the taxpayer in carrying on a trade or
business, if the trade or business does not
consist of services by the taxpayer as an
employee. Section 62(a)(2)(A), however,
allows an employee to deduct business
expenses the employee pays or incurs in
performing services as an employee under
a reimbursement or other expense allow-
ance arrangement with a payor. In addi-
tion, § 62(a)(2)(B) through (E) allows a
qualified performing artist, a fee-basis
state or local government official, an eligi-
ble educator, and an Armed Forces reserv-
ist to deduct specified business expenses
paid or incurred in performing services

December 2, 2019 1302 Bulletin No. 2019–49
as an employee. The expenses paid or in-
curred by the taxpayer that are deductible
under § 62(a)(1) or (a)(2) in computing
adjusted gross income are not miscella-
neous itemized deductions as described in
§ 67.
.06 Section 62(c) provides that an ar-
rangement is not treated as a reimburse-
ment or other expense allowance arrange-
ment for purposes of § 62(a)(2)(A) if
it—
(1) Does not require the employee to
substantiate the expenses covered under
the arrangement to the payor, or
(2) Allows the employee to retain any
amount in excess of the substantiated ex-
penses covered under the arrangement.
.07 Section 62(c) further provides,
however, that substantiation is not re-
quired for the expense to the extent pro-
vided in regulations under § 274(d).
.08 Under § 1.62-2(c), a reimburse-
ment or other expense allowance arrange-
ment satisfies the requirements of § 62(c)
if it meets the requirements of business
connection, substantiation, and returning
amounts in excess of expenses. If an ar-
rangement meets these requirements, all
amounts paid under the arrangement are
treated as paid under an accountable plan
and are excluded from income and wages.
If an arrangement does not meet one or
more of these requirements, all amounts
paid under the arrangement are treated as
paid under a nonaccountable plan and are
included in the employee’s gross income,
must be reported as wages or compensa-
tion on the employee’s Form W-2, and are
subject to the withholding and payment
of employment taxes (Federal Insurance
Contributions Act, Federal Unemploy-
ment Tax Act, Railroad Retirement Tax
Act, Railroad Unemployment Repayment
Tax, and income tax).
.09 Section 1.62-2(e)(2) provides that
the amount of a business expense substan-
tiated under § 1.274-5(g) is treated as sub-
stantiated for purposes of § 1.62-2.
.10 Under § 1.62-2(f)(2), the Commis-
sioner may prescribe rules for treating an
arrangement providing mileage allowanc-
es as satisfying the requirement of return-
ing amounts in excess of expenses if the
arrangement requires the employee to re-
turn amounts that relate to unsubstantiated
travel miles, even if the employee is not
required to return the portion of the al-
lowance for substantiated travel miles that
exceeds the deemed substantiated amount
for those miles. The allowance must be
reasonably calculated not to exceed the
amount of the employee’s expenses and
the employee must be required to return
within a reasonable period (as defined
in § 1.62-2(g)) any portion of the allow-
ance that relates to unsubstantiated trav-
el miles. Under § 1.62-2(h)(2)(i)(B), the
portion of the allowance that relates to
substantiated travel days, that exceeds the
substantiated amount for those days, and
that the employee is not required to return
is subject to withholding and payment of
employment taxes. See §§ 31.3121(a)-
3, 31.3231(e)-1(a)(5), 31.3306(b)-2, and
31.3401(a)-4 of the Employment Tax
Regulations.
.11 Under § 1.62-2(h)(2)(i)(B)(4), the
Commissioner may prescribe special rules
for the timing of withholding and paying
employment taxes on mileage allowances.
.12 Section 67(a) generally provides
that, in the case of an individual, the mis-
cellaneous itemized deductions for any
taxable year shall be allowed only to the
extent that the aggregate of such deduc-
tions exceeds 2 percent of adjusted gross
income (2-percent floor).
.13 Section 11045(a) of the TCJA
amended § 67 by adding subsection (g),
which temporarily suspends all miscella-
neous itemized deductions that are sub-
ject to the 2-percent floor for any taxable
year beginning after December 31, 2017,
and before January 1, 2026 (suspension
period). For any taxable year during the
suspension period, a taxpayer is not per-
mitted to claim miscellaneous itemized
deductions, including unreimbursed em-
ployee travel expenses. However, in com-
puting adjusted gross income, deductions
allowed for expenses that are described
in § 62(a)(1) or (2) are not miscellaneous
itemized expenses and are therefore not
suspended.
.14 Section 217(a) generally allows a
deduction for moving expenses paid or
incurred during the taxable year by the
taxpayer in connection with starting work
as an employee or as a self-employed in-
dividual at a new principal place of work
(as defined in § 1.217-2(c)(3)) (moving
expenses).
.15 Section 11049(a) of the TCJA
amended § 217 by adding subsection (k),
which temporarily suspends the deduction
for moving expenses for any taxable year
during the suspension period. However,
under § 217(g), the suspension of the de-
duction does not apply to a member of the
Armed Forces on active duty who moves
pursuant to a military order and incident
to a permanent change of station. For any
taxable year during the suspension period,
a taxpayer other than a taxpayer described
in § 217(g) is not permitted to claim a de-
duction for moving expenses.
.16 This revenue procedure modifies
Rev. Proc. 2010-51 as follows:
(1) Section 4.02 is modified to provide
that a taxpayer may not use the business
standard mileage rate to claim a miscella-
neous itemized deduction during the sus-
pension period.
(2) Sections 4.03 is modified to provide
that a taxpayer may not claim a miscella-
neous itemized deduction during the sus-
pension period for parking fees and tolls
attributable to the taxpayer using the auto-
mobile for business purposes.
(3) Section 4.04 is modified to provide
that, under § 1016(a)(2), a taxpayer must
reduce the basis of an automobile used in
business by the greater of the amount of
depreciation the taxpayer claims for the
automobile or the amount of depreciation
allowable. If a taxpayer uses the business
standard mileage rate to compute the ex-
pense of operating an automobile for any
year, a per-mile amount (published by the
IRS in an annual notice) is treated as the
depreciation claimed by the taxpayer and
the depreciation allowable for those years
in which the taxpayer used the business
standard mileage rate.
(4) Section 4.05(4) is added to provide
that a taxpayer may not use the business
standard mileage rate to claim a miscel-
laneous itemized deduction during the
suspension period for unreimbursed travel
expenses.
(5) Section 4.06 is added to provide
that a taxpayer who pays or incurs unreim-
bursed employee travel expenses during
the suspension period that are deductible
by the taxpayer in computing adjusted
gross income may use the business stan-
dard mileage rate to compute an adjust-
ment to gross income.
(6) Section 5.02 is modified to provide
that the deduction for moving expenses
during the suspension period does not ap-

Bulletin No. 2019–49 1303 December 2, 2019
ply unless the taxpayer is a member of the
Armed Forces on active duty moving pur-
suant to a military order and incident to a
permanent change of station.
(7) Section 6.03(2) is modified to pro-
vide that in using the fixed and variable
rate (FAVR) allowance, an employee may
not claim a miscellaneous itemized de-
duction during the suspension period for
parking fees and tolls attributable to the
employee driving the standard automobile
in performing services as an employee.
(8) Section 7.06 is added to provide
that if during the suspension period, an
employee’s substantiated expenses are
less than the employee’s actual expenses,
the employee may not claim an itemized
deduction for the excess amount.
(9) Section 7.08 (formerly section 7.07)
is modified to provide that an employee’s
amount computed under section 4 for the
business standard mileage rate is an item-
ized deduction subject to the 2-percent
floor and is not deductible during the sus-
pension period.
(10) Section 8.04 is added to clarify
that amounts paid under a mileage allow-
ance to an employee regardless of whether
the employee incurs deductible business
expenses are treated as paid under a non-
accountable plan.
SECTION 3. DEFINITIONS
.01 Standard mileage rate. The term
“standard mileage rate” means the amount
the IRS provides for optional use by tax-
payers to substantiate the amount of—
(1) Deductible costs of operating for
business purposes automobiles, including
vans, pickups, or panel trucks, they own
or lease, and
(2) Deductible costs of operating auto-
mobiles for charitable, medical, or mov-
ing expense purposes.
.02 Transportation expenses. The term
“transportation expenses” means the ex-
penses of operating an automobile for lo-
cal transportation or transportation away
from home.
.03 Mileage allowance. The term
“mileage allowance” means a payment
under a reimbursement or other expense
allowance arrangement that is—
(1) Paid for the ordinary and necessary
business expenses an employee incurs, or
that the payor reasonably anticipates an
employee will incur, for transportation
expenses in performing services as an em-
ployee,
(2) Reasonably calculated not to ex-
ceed the amount of the expenses or antici-
pated expenses, and
(3) Paid at the applicable standard
mileage rate, a flat rate or stated schedule,
or under any other IRS-specified rate or
schedule.
.04 Flat rate or stated schedule. A mile-
age allowance is paid at a flat rate or stat-
ed schedule if it is paid on a uniform and
objective basis for the expenses described
in section 3.03 of this revenue procedure.
The allowance may be paid periodically at
a fixed rate, at a cents-per-mile rate, at a
variable rate based on a stated schedule,
at a rate that combines any of these rates,
or on any other basis that is consistent-
ly applied and accords with reasonable
business practice. Thus, for example, a
periodic payment at a fixed rate to cover
the fixed costs, including depreciation or
lease payments, insurance, registration
and license fees, and personal property
taxes, of driving an automobile in per-
forming services as an employee, coupled
with a periodic payment at a cents-per-
mile rate to cover the variable costs, in-
cluding gasoline and all taxes thereon, oil,
tires, and routine maintenance and repairs,
of using an automobile for those purposes,
is an allowance paid at a flat rate or stated
schedule. Likewise, a periodic payment at
a variable rate based on a stated schedule
for different locations to cover the costs of
driving an automobile in performing ser-
vices as an employee is an allowance paid
at a flat rate or stated schedule.
.05 Lease period. The term “lease peri-
od” includes renewal periods.
.06 Suspension period. The term “sus-
pension period” means any taxable year
beginning after December 31, 2017, and
before January 1, 2026.
.07 Armed Forces. The term “Armed
Forces” means the Armed Forces of the
United States.
SECTION 4. BUSINESS STANDARD
MILEAGE RATE
.01 Use of the business standard mile-
age rate. A taxpayer may use the business
standard mileage rate (published by the
IRS in an annual notice) to substantiate the
amount of a deduction to compute adjust-
ed gross income for an automobile that a
taxpayer either owns or leases. A taxpayer
generally may deduct an amount equal to
either the business standard mileage rate
times the number of business miles trav-
eled, or the actual fixed and variable costs
the taxpayer pays or incurs that are allo-
cable to traveling those business miles,
subject to the limitations in section 4.05 of
this revenue procedure.
.02 Business standard mileage rate in
lieu of fixed and variable costs. A taxpay-
er computes a deduction using the busi-
ness standard mileage rate on a yearly
basis and in lieu of computing the fixed
and variable costs of the automobile al-
locable to business purposes, except as
provided in section 7.06 of this revenue
procedure. Items such as: depreciation
or lease payments; maintenance and re-
pairs; tires; gasoline, including all taxes
thereon; oil; insurance; and license and
registration fees are included in fixed and
variable costs for this purpose. However,
during the suspension period, a taxpayer
may not use the business standard mileage
rate to claim a miscellaneous itemized de-
duction. See sections 4.05(4) and 7.06 of
this revenue procedure. Notwithstanding
the suspension of miscellaneous itemized
deductions, a taxpayer may use the stan-
dard business mileage rate in computing
adjusted gross income under § 62(a)(1) or
(2). See sections 4.06 and 7.07 of this rev-
enue procedure.
.03 Parking fees, tolls, interest, and
taxes.
(1) During the suspension period, a
taxpayer may not claim a miscellaneous
itemized deduction for parking fees and
tolls attributable to the use of the automo-
bile for business purposes. See § 67(g). A
taxpayer may deduct, as separate items,
parking fees and tolls attributable to the
use of the automobile for business purpos-
es to the extent the items are deductible
in computing adjusted gross income under
§ 62(a)(1) or (2).
(2) A taxpayer may deduct interest re-
lating to the purchase of the automobile
and state and local personal property taxes
as separate items to the extent allowable
under § 163 or § 164, respectively. Under
§ 163(h)(2)(A), interest is nondeductible
personal interest if it is paid or incurred
on indebtedness properly allocable to the

December 2, 2019 1304 Bulletin No. 2019–49
trade or business of performing services
as an employee. Section 164 provides that
state and local taxes a taxpayer pays or in-
curs in connection with an acquisition or
disposition of property are treated as part
of the cost of the acquired property or as
a reduction in the amount realized on the
disposition of the property. If the automo-
bile is operated less than 100 percent for
business purposes, a taxpayer must allo-
cate the business and nonbusiness portion
of the allowable taxes and interest deduc-
tion.
.04 Depreciation. Under § 1016(a)(2),
a taxpayer must reduce the basis of an au-
tomobile used in business by the greater
of the amount of depreciation the taxpayer
claims for the automobile or the amount
of depreciation allowable. If a taxpayer
uses the business standard mileage rate to
compute the expense of operating an au-
tomobile for any year, a per-mile amount
(published by the IRS in an annual notice)
is treated as the depreciation claimed by
the taxpayer and the depreciation allow-
able for those years in which the taxpayer
used the business standard mileage rate. If
the taxpayer deducted the actual costs of
operating an automobile for one or more
of those years, the taxpayer may not use
the business standard mileage rate to de-
termine the amount treated as depreciation
for those years.
.05 Limitations.
(1) A taxpayer may not use the busi-
ness standard mileage rate to compute the
deductible expenses of five or more au-
tomobiles a taxpayer owns or leases and
uses simultaneously (such as in fleet op-
erations).
(2) A taxpayer may not use the business
standard mileage rate to compute the de-
ductible business expenses of an automo-
bile a taxpayer leases unless the taxpayer
uses either the business standard mileage
rate or FAVR allowance (as provided in
section 6 of this revenue procedure) for
the entire lease period.
(3) A taxpayer may not use the busi-
ness standard mileage rate to compute
the deductible expenses of an automobile
for which the taxpayer has (a) claimed
depreciation using a method other than
straight-line for its estimated useful life,
(b) claimed a § 179 deduction, (c) claimed
the additional first-year depreciation al-
lowance under, for example, § 168(k) or
former § 168(n), or (d) used the Accelerat-
ed Cost Recovery System (ACRS) under
former § 168 or the Modified Accelerated
Cost Recovery System (MACRS) under
current § 168. By using the business stan-
dard mileage rate, the taxpayer has elected
to exclude the automobile, if owned, from
MACRS pursuant to § 168(f)(1). If, after
using the business standard mileage rate,
the taxpayer uses actual costs, the taxpay-
er must use straight-line depreciation for
the automobile’s remaining estimated use-
ful life, subject to the applicable depreci-
ation deduction limitations under § 280F.
(4) A taxpayer may not use the business
standard mileage rate to claim a miscel-
laneous itemized deduction subject to the
2-percent floor under § 67 for unreim-
bursed travel expenses paid or incurred
during the suspension period. See § 67(g).
(5) A taxpayer who is an employee of
the United States Postal Service may not
use the business standard mileage rate or
this revenue procedure to compute the
amount of the taxpayer’s deductible au-
tomobile expenses incurred in performing
services involving the collection and de-
livery of mail on a rural route if the tax-
payer receives qualified reimbursements,
as defined in § 162(o), for the expenses.
See § 162(o) for the rules that apply to
these qualified reimbursements.
.06 Use of the business standard mile-
age rate during the suspension period in
computing adjusted gross income. A tax-
payer who pays or incurs unreimbursed
employee travel expenses that are deduct-
ible by such taxpayer in computing adjust-
ed gross income under § 62 may use the
business standard mileage rate to compute
the adjustment to gross income, notwith-
standing the suspension of miscellaneous
itemized deductions under § 67(g) during
the suspension period.
SECTION 5. CHARITABLE
AND MEDICAL AND MOVING
STANDARD MILEAGE RATES
.01 Charitable standard mileage rate.
A taxpayer may use the charitable stan-
dard mileage rate (published by the IRS
in an annual notice) to compute the chari-
table contribution deduction for use of an
automobile in rendering gratuitous ser-
vices to a charitable organization under
§ 170.
.02 Medical and moving standard mile-
age rates.
(1) A taxpayer may use the medical
standard mileage rate (published by the
IRS in an annual notice) to compute the
deduction for use of an automobile as
medical care described in § 213.
(2) During the suspension period, a
taxpayer who is a member of the Armed
Forces on active duty moving pursuant to
a military order and incident to a perma-
nent change of station may use the moving
standard mileage rate (published by the
IRS in an annual notice) to compute the
deduction for the use of an automobile as
a moving expense deductible under § 217.
No other taxpayers may claim a moving
expense deduction under § 217 during the
suspension period.
.03 Charitable, medical, or moving
standard mileage rate in lieu of variable
expenses. A deduction computed using the
applicable standard mileage rate for char-
itable, medical, or moving expense miles
is in lieu of a deduction for variable ex-
penses, including gasoline and oil, of the
automobile allocable to those purposes.
Costs for items such as depreciation or
lease payments, insurance, and license
and registration fees are not deductible for
these purposes and are not included in the
charitable, medical, or moving standard
mileage rate.
.04 Parking fees, tolls, and taxes. A tax-
payer may deduct, as separate items, park-
ing fees and tolls attributable to the use of
the automobile for deductible charitable,
medical, or moving expense purposes to
the extent otherwise allowable. State and
local personal property taxes are not de-
ductible as charitable, medical, or moving
expenses. State and local personal proper-
ty taxes may be deducted as separate items
to the extent allowable under § 164.
SECTION 6. FIXED AND VARIABLE
RATE ALLOWANCE
.01 In general.
(1) The ordinary and necessary expens-
es an employee pays or incurs in driving
an automobile the employee owns or leas-
es in performing services as an employee
of the employer are deemed substantiated,
in an amount determined under section 7
of this revenue procedure, when a payor
reimburses those expenses using a FAVR

Bulletin No. 2019–49 1305 December 2, 2019
allowance. A FAVR allowance is a mile-
age allowance using a flat rate or stated
schedule that combines periodic fixed and
variable rate payments that meet all the re-
quirements of this section 6.
(2) A payor must base the amount of
a FAVR allowance on data that (a) is de-
rived from the base locality, (b) reflects
retail prices paid by consumers, and (c)
is reasonable and statistically defensible
in approximating the actual expenses em-
ployees receiving the allowance would in-
cur as owners of the standard automobile.
.02 Computing a FAVR allowance.
(1) FAVR allowance. A FAVR allow-
ance includes periodic fixed payments and
periodic variable payments. A payor may
maintain more than one FAVR allowance.
A FAVR allowance that uses the same
payor, standard automobile or an automo-
bile of the same make and model that is
comparably equipped, retention period,
and business use percentage is considered
one FAVR allowance, even though oth-
er features of the allowance may vary. A
FAVR allowance also includes any option-
al high mileage payments. However, op-
tional high mileage payments are included
in an employee’s gross income, are report-
ed as wages or other compensation on the
employee’s Form W-2, and are subject to
withholding and payment of employment
taxes when paid. See section 7.05 of this
revenue procedure. An optional high mile-
age payment covers the additional depre-
ciation for a standard automobile attribut-
able to business miles an employee drives
and substantiates for a calendar year in
excess of the annual business mileage for
that year. If a FAVR allowance covers an
employee for less than the entire calendar
year, the annual business mileage may be
prorated on a monthly basis for purposes
of the preceding sentence.
(2) Periodic fixed payment. A periodic
fixed payment covers the projected fixed
costs (including depreciation or lease pay-
ments, insurance, registration and license
fees, and personal property taxes) of driv-
ing the standard automobile in performing
services as an employee of the employ-
er in a base locality, and must be paid at
least quarterly. A payor may compute a
periodic fixed payment by (a) dividing the
total projected fixed costs of the standard
automobile for all years of the retention
period, determined at the beginning of the
retention period, by the number of period-
ic fixed payments in the retention period,
and (b) multiplying the resulting amount
by the business use percentage.
(3) Periodic variable payment. A peri-
odic variable payment covers the project-
ed variable costs, including gasoline and
all taxes thereon, oil, tires, and routine
maintenance and repairs, of driving a stan-
dard automobile in performing services as
an employee in a base locality, and must
be paid at least quarterly. A payor may
compute a periodic variable payment
rate for a computation period by dividing
the total projected variable costs for the
standard automobile for the computation
period, determined at the beginning of
the computation period, by the computa-
tion period mileage. A computation peri-
od may be any period of a year or less.
Computation period mileage is the total
mileage, business and personal, a payor
reasonably projects a standard automobile
will be driven during a computation peri-
od and equals the retention mileage divid-
ed by the number of computation periods
in the retention period. For each business
mile an employee substantiates for the
computation period, a payor must make
a periodic variable payment at a rate that
does not exceed the rate for that computa-
tion period.
(4) Base locality. A base locality is the
particular geographic locality or region of
the United States where an employee gen-
erally pays or incurs the costs of driving
an automobile in performing services as
an employee. Thus, for purposes of deter-
mining the amount of fixed costs, the base
locality is generally the geographic local-
ity or region where the employee resides.
For purposes of determining the amount
of variable costs, the base locality is gen-
erally the geographic locality or region
where the employee drives the automobile
in performing services as an employee.
(5) Standard automobile. A standard
automobile is the automobile a payor se-
lects on which a specific FAVR allowance
is based.
(6) Standard automobile cost. The
standard automobile cost for a calendar
year may not exceed 95 percent of the sum
of (a) the retail dealer invoice cost of the
standard automobile in the base locality,
and (b) state and local sales or use taxes on
the purchase of the automobile. The maxi-
mum standard automobile cost for a given
taxable year is published by the IRS in an
annual notice.
(7) Annual mileage. Annual mileage is
the total mileage, business and personal,
a payor reasonably projects an employee
will drive a standard automobile during a
calendar year. Annual mileage equals the
annual business mileage divided by the
business use percentage.
(8) Annual business mileage. Annual
business mileage is the mileage a pay-
or reasonably projects an employee will
drive a standard automobile in performing
services as an employee during the calen-
dar year, but may not be less than 6,250
miles for a calendar year. Annual business
mileage equals the annual mileage multi-
plied by the business use percentage.
(9) Business use percentage. A payor
determines the business use percentage
by dividing the annual business mileage
by the annual mileage. The business use
percentage may not exceed 75 percent.
In lieu of demonstrating the reasonable-
ness of the business use percentage based
on records of total mileage and business
mileage driven by employees annually, a
payor may use a business use percentage
that is less than or equal to the following
percentages for a FAVR allowance that
is paid for the following annual business
mileage:
Annual business
mileage
Business use
percentage
6,250 or more but less
than 10,000
45 percent
10,000 or more but less
than 15,000
55 percent
15,000 or more but less
than 20,000
65 percent
20,000 or more 75 percent
(10) Retention period. A retention peri-
od is the period in calendar years a payor
selects during which the payor expects an
employee to drive a standard automobile
in performing services as an employee
before the automobile is replaced. The
period may not be less than two calendar
years.
(11) Retention mileage. Retention
mileage is the annual mileage multiplied
by the number of calendar years in the re-
tention period.

December 2, 2019 1306 Bulletin No. 2019–49
(12) Residual value. The residual value
of a standard automobile is the projected
amount for which it could be sold at the
end of the retention period after being
driven the retention mileage. The IRS will
accept the following safe harbor residual
values for a standard automobile comput-
ed as a percentage of the standard auto-
mobile cost:
Retention period Residual value
2 years 70 percent
3 years 60 percent
4 years 50 percent
.03 FAVR allowance in lieu of fixed and
variable costs.
(1) A reimbursement computed using a
FAVR allowance is in lieu of the employ-
ee’s deduction of all the fixed and variable
costs the employee pays or incurs in driv-
ing the automobile in performing services
as an employee, except as provided in sec-
tion 7.06 of this revenue procedure. Items
such as: depreciation or lease payments;
maintenance and repairs; tires; gasoline,
including all taxes thereon; oil; insurance;
license and registration fees; and personal
property taxes are included in fixed and
variable costs for this purpose.
(2) During the suspension period, an
employee may not claim a miscellaneous
itemized deduction for parking fees and
tolls attributable to the employee driving
the standard automobile in performing
services as an employee.
.04 Depreciation.
(1) A payor may not provide a FAVR
allowance for an automobile for which
an employee has (a) claimed depreciation
using a method other than straight-line
for its estimated useful life, (b) claimed
a § 179 deduction, (c) claimed the addi-
tional first-year depreciation allowance
under, for example, § 168(k) or former §
168(n), or (d) used ACRS under former
§ 168 or MACRS under current § 168.
If an employee uses actual costs for an
owned automobile that has been covered
by a FAVR allowance, the employee must
use straight-line depreciation for the auto-
mobile’s remaining estimated useful life,
subject to the applicable depreciation de-
duction limitations under § 280F.
(2) Except as provided in section 6.04(3)
of this revenue procedure, the total amount
of the depreciation component for the re-
tention period a payor includes in comput-
ing the periodic fixed payments for that re-
tention period may not exceed the excess of
the standard automobile cost over the resid-
ual value of the standard automobile. In ad-
dition, the total amount of the depreciation
component may not exceed the sum of the
annual § 280F limitations on depreciation
in effect at the beginning of the retention
period that apply to the standard automo-
bile during the retention period.
(3) If the depreciation component of
the periodic fixed payments exceeds the
limitations in section 6.04(2) of this reve-
nue procedure, the IRS will treat that sec-
tion as satisfied if the total annual amount
of the FAVR (periodic fixed and variable)
payments a payor makes to an employee
driving 80 percent of the annual business
mileage of the standard automobile does
not exceed the business standard mileage
rate for that year multiplied by 80 percent
of the annual business mileage of the stan-
dard automobile.
(4) The depreciation included in each
periodic fixed payment portion of a FAVR
allowance paid for an automobile reduces
the basis of the automobile, but not be-
low zero, in determining adjusted basis
as required by § 1016(a)(2). See section
6.07(2) of this revenue procedure for the
requirement that the employer report the
depreciation component of a periodic
fixed payment to the employee.
.05 FAVR allowance limitations.
(1) A payor may provide a FAVR al-
lowance only to an employee who sub-
stantiates to the payor for a calendar year
at least 5,000 miles driven in performing
services as an employee or, if greater, 80
percent of the annual business mileage of
that FAVR allowance. If the employee is
covered by the FAVR allowance for less
than the entire calendar year, the payor
may prorate these limits on a monthly ba-
sis.
(2) A payor may not provide a FAVR
allowance to a control employee, as de-
fined in § 1.61-21(f)(5) and (6), excluding
the $100,000 limitation in paragraph (f)
(5)(iii).
(3) A payor may not provide a FAVR
allowance if at any time during a calen-
dar year a majority of the employees the
FAVR allowance covers are management
employees.
(4) A payor may not provide a FAVR
allowance to any employee unless at all
times during a calendar year FAVR allow-
ances provided by the payor cover at least
five employees in total.
(5) A payor may provide a FAVR al-
lowance only for an automobile (a) the
employee receiving the payment owns
or leases, (b) the cost of which, as a new
vehicle, whether or not purchased new by
the employee, was at least 90 percent of
the standard automobile cost included in
determining the FAVR allowance for the
first calendar year the employee receives
the allowance for that automobile, and (c)
for which the model year does not differ
from the current calendar year by more
than the number of years in the retention
period.
(6) A payor may not provide a FAVR
allowance for an automobile an employee
leases for which the employee has used
actual expenses to compute the deductible
business expenses of the automobile for
any year during the lease period.
(7) The insurance cost component of
a FAVR allowance must be based on the
rates charged in the base locality for insur-
ance coverage on the standard automobile
during the current calendar year without
considering rate-increasing factors such as
poor driving records or young drivers.
(8) A payor may provide a FAVR al-
lowance only to an employee whose in-
surance coverage limits on the automobile
for which the FAVR allowance is paid are
at least equal to the insurance coverage
limits used to compute the periodic fixed
payment under that FAVR allowance.
.06 Employee reporting. Within 30 days
after a FAVR allowance initially covers an
employee’s automobile, or again covers
the automobile if coverage has lapsed,
the employee by written declaration must
provide the payor with the following in-
formation: (1) the make, model, and year
of the employee’s automobile, (2) written
proof of the insurance coverage limits on
the automobile, (3) the odometer reading
of the automobile, (4) if owned, the pur-
chase price of the automobile or, if leased,
the price at which the automobile is ordi-
narily sold by retailers (gross capitalized
cost of the automobile), and (5) if owned,
whether the employee has claimed depre-
ciation for the automobile using any of the
depreciation methods prohibited by sec-

Bulletin No. 2019–49 1307 December 2, 2019
tion 6.04(1) of this revenue procedure or,
if leased, whether the employee has com-
puted deductible business expenses for
the automobile using actual expenses. The
employee also must provide the informa-
tion in (1), (2), and (3) to the payor within
30 days after the beginning of each calen-
dar year that a FAVR allowance covers the
employee’s automobile.
.07 Payor recordkeeping and report-
ing.
(1) The payor or its agent must main-
tain written records stating (a) the statis-
tical data and projections on which the
FAVR allowance payments are based, and
(b) the information the employees pro-
vided under section 6.06 of this revenue
procedure.
(2) Within 30 days of the end of each
calendar year, the payor must provide each
employee covered by a FAVR allowance
during that year with a statement that lists
the amount of depreciation included in
each periodic fixed payment portion of the
FAVR allowance paid during that calendar
year to an automobile owner and explains
that by receiving a FAVR allowance the
employee has elected to exclude the auto-
mobile from the MACRS under § 168(f)
(1). For automobile lessees, the statement
must explain that by receiving the FAVR
allowance the employee may not compute
the deductible business expenses of the
automobile using actual expenses for the
lease period.
.08 Failure to meet section 6 require-
ments. If an employee receives a mileage
allowance that fails to meet one or more of
the requirements of this section 6, the em-
ployee may not be treated as covered by
any FAVR allowance of the payor during
the period of the failure. Nevertheless, the
expenses to which that mileage allowance
relates may be deemed substantiated us-
ing the method described in sections 4,
7.01(1), and 7.02 of this revenue proce-
dure to the extent the requirements of
those sections are met.
SECTION 7. MILEAGE
ALLOWANCES
.01 If a payor pays a mileage allow-
ance in lieu of reimbursing actual trans-
portation expenses an employee incurs or
may incur, the payor is deemed to have
substantiated either:
(1) For any mileage allowance other
than a FAVR allowance, the lesser of the
amount paid under the mileage allowance
or the business standard mileage rate mul-
tiplied by the number of substantiated
business miles; or
(2) For a FAVR allowance, the amount
paid under the FAVR allowance less the
sum of (a) any periodic variable rate pay-
ment that relates to miles in excess of the
substantiated business miles that the em-
ployee fails to return to the payor although
required to do so, (b) any portion of a peri-
odic fixed payment that relates to a period
during which the employee is treated as
not covered by the FAVR allowance and
that the employee fails to return to the
payor although required to do so, and (c)
any optional high mileage payments.
.02 An employee is deemed to satis-
fy the adequate accounting requirements
of § 1.274-5(f) and the requirement to
substantiate by adequate records or oth-
er sufficient evidence for purposes of
§ 1.274-5(c) if the amount of transporta-
tion expenses is deemed substantiated un-
der the rules provided in section 7.01 of
this revenue procedure, and the employee
actually substantiates to the payor the ele-
ments of time, place (or use), and business
purpose of the transportation expenses
under § 1.274-5T(b)(2) (travel away from
home), § 1.274-5T(b)(6) (listed property,
which includes passenger automobiles
and any other property used as a means of
transportation), and § 1.274-5(c) (rules of
substantiation).
.03 An arrangement providing mileage
allowances is treated as satisfying the re-
quirement of § 1.62-2(f)(2) on returning
amounts in excess of expenses as follows:
(1) For a mileage allowance, other than
a FAVR allowance, paid only at a cents-
per-mile rate, the requirement to return
excess amounts is treated as satisfied if
an employee is required to return within
a reasonable period of time, as defined
in § 1.62-2(g), any portion of the allow-
ance that relates to unsubstantiated travel
miles, even though the arrangement does
not require the employee to return the por-
tion of the allowance that relates to sub-
stantiated travel miles and that exceeds
the amount of the employee’s expenses
deemed substantiated. For example, a
payor provides an employee an advance
mileage allowance of $170.00 based on
an anticipated 250 business miles at 68
cents per mile, at a time when the busi-
ness standard mileage rate is 58 cents
per mile, and the employee substantiates
150 business miles. The requirement to
return excess amounts is treated as satis-
fied if the employee is required to return
the portion of the allowance that relates
to the 100 unsubstantiated business miles
($68.00) even though the employee is not
required to return the portion of the allow-
ance ($15.00) that exceeds the amount of
the employee’s expenses deemed substan-
tiated under section 7.01 of this revenue
procedure ($87.00) for the 150 substanti-
ated business miles. However, the $15.00
excess portion of the allowance is treated
as paid under a nonaccountable plan as
discussed in section 7.05 of this revenue
procedure.
(2) For a mileage allowance, other
than a FAVR allowance, paid other than
only at a cents-per-mile rate, the require-
ment to return excess amounts is treated
as satisfied if the employee is required to
return within a reasonable period of time,
as defined in § 1.62-2(g), any portion of
the allowance that exceeds the product of
the business standard mileage rate and the
number of substantiated travel miles. For
example, a payor provides an employee an
advance mileage allowance of $400 per
month plus 20 cents per mile based on an
anticipated 2000 miles for a total of $800,
at a time when the business standard mile-
age rate is 58 cents per mile, and the em-
ployee substantiates 1000 business miles.
The requirement to return excess amounts
is treated as satisfied if the employee is re-
quired to return $220, the portion of the
allowance that exceeds the product of the
standard mileage rate and the miles sub-
stantiated ($580).
(3) For a FAVR allowance, the require-
ment to return excess amounts is treated
as satisfied if the employee is required to
return, within a reasonable period of time,
as defined in § 1.62-2(g), (a) the portion,
if any, of the periodic variable payment
received that relates to miles in excess of
substantiated business miles, and (b) the
portion, if any, of a periodic fixed payment
that relates to a period during which the
employee was not covered by the FAVR
allowance.
.04 An employee is not required to
include in gross income the portion of a

December 2, 2019 1308 Bulletin No. 2019–49
mileage allowance received from a pay-
or that is less than or equal to the amount
deemed substantiated under section 7.01
of this revenue procedure, provided the
employee substantiates under section 7.02
of this revenue procedure. See § 1.274-
5T(f)(2)(i). Assuming that the remaining
requirements for an accountable plan pro-
vided in § 1.62-2 are satisfied, that portion
of the allowance is treated as paid under
an accountable plan, is not reported as
wages or other compensation on the em-
ployee’s Form W-2, and is exempt from
withholding and payment of employment
taxes. See § 1.62-2(c)(2) and (c)(4).
.05 An employee is required to include
in gross income the portion of a mileage
allowance received from a payor that ex-
ceeds the amount deemed substantiated
under section 7.01 of this revenue pro-
cedure. See § 1.274-5T(f)(2)(ii). In addi-
tion, the excess portion of the allowance
is treated as paid under a nonaccountable
plan, is reported as wages or other com-
pensation on the employee’s Form W-2,
and is subject to withholding and payment
of employment taxes. See § 1.62-2(c)(3)
(ii), (c)(5), and (h)(2)(i)(B).
.06 If during the suspension period an
employee’s substantiated expenses are
less than the employee’s actual expenses,
the employee may not claim an itemized
deduction for the amount by which the
business transportation expenses exceed
the amount that is deemed substantiated.
See § 67(g).
.07 A self-employed individual may
deduct an amount computed under section
4 of this revenue procedure in computing
adjusted gross income under § 62(a)(1).
.08 An employee may deduct an
amount computed under section 4 of this
revenue procedure only as an itemized de-
duction, unless the amount is used to com-
pute adjusted gross income under § 62(a)
(2)(B)-(a)(2)(E). This itemized deduction
is subject to the 2-percent floor on miscel-
laneous itemized deductions in § 67, and is
therefore suspended. Notwithstanding the
suspension of miscellaneous itemized de-
ductions, an employee who is a qualifying
performing artist, fee-basis state or local
government official, educator, or Armed
Forces reservist under § 62(a)(2)(B)-(a)
(2)(E) may deduct an amount computed
under section 4 of this revenue procedure.
This amount is deducted under § 62(a)(2)
in computing adjusted gross income and is
not a miscellaneous itemized deduction as
described in § 67.
SECTION 8. WITHHOLDING AND
PAYMENT OF EMPLOYMENT
TAXES
.01 The portion of a mileage allow-
ance, other than a FAVR allowance, if any,
that relates to substantiated business miles
and that exceeds the amount deemed sub-
stantiated for those miles under section
7.01(1) of this revenue procedure is treat-
ed as paid under a nonaccountable plan
and is subject to withholding and payment
of employment taxes. See § 1.62-2(h)(2)
(i)(B).
(1) For a mileage allowance paid as a
reimbursement, the excess described in
section 8.01 of this revenue procedure is
subject to withholding and payment of
employment taxes in the payroll period
in which a payor reimburses the expenses
for the substantiated business miles. See
§ 1.62-2(h)(2)(i)(B)(2).
(2) For a mileage allowance paid as an
advance, the excess described in section
8.01 of this revenue procedure is subject to
withholding and payment of employment
taxes no later than the first payroll period
following the payroll period in which the
business miles for which the advance was
paid are substantiated. See § 1.62-2(h)(2)
(i)(B)(3). If some or all of the business
miles for which the advance was paid are
not substantiated within a reasonable pe-
riod of time and the employee does not
return the portion of the allowance that
relates to those miles within a reasonable
period of time, the portion of the allow-
ance that relates to those miles is subject
to withholding and payment of employ-
ment taxes no later than the first payroll
period following the end of the reasonable
period. See § 1.62-2(h)(2)(i)(A).
(3) For a mileage allowance that is not
computed on the basis of a fixed amount
per mile of travel (for example, a mileage
allowance that combines periodic fixed
and variable rate payments, but that does
not satisfy the requirements of section 6
of this revenue procedure), the payor must
compute periodically, no less frequent-
ly than quarterly, the amount, if any, that
exceeds the amount deemed substantiat-
ed under section 7.01(1) of this revenue
procedure by comparing the total mileage
allowance paid for the period to the busi-
ness standard mileage rate multiplied by
the number of business miles the employ-
ee substantiated for the period. Any excess
is subject to withholding and payment of
employment taxes no later than the first
payroll period following the payroll peri-
od in which the excess is computed. See
§ 1.62-2(h)(2)(i)(B)(4).
(4) For example, a payor provides em-
ployees a mileage allowance under an
arrangement that otherwise meets the re-
quirements of an accountable plan at a rate
of 68 cents per mile, when the business
standard mileage rate is 58 cents per mile.
The payor does not require the return of
the portion of the allowance that exceeds
the business standard mileage rate for the
substantiated business miles (10 cents).
In June, the payor advances an employ-
ee $340.00 for 500 miles to be traveled
during the month. In July, the employee
substantiates to the payor 400 business
miles traveled in June and returns $68.00
to the payor for the 100 business miles not
traveled. The amount deemed substantiat-
ed for the 400 miles traveled is $232.00
and the employee is not required to return
$40.00. No later than the first payroll pe-
riod following the payroll period in which
the 400 business miles traveled are sub-
stantiated, the payor must withhold and
pay employment taxes on $40.00.
.02 The portion of a FAVR allowance,
if any, that exceeds the amount deemed
substantiated for those miles under section
7.01(2) of this revenue procedure is sub-
ject to withholding and payment of em-
ployment taxes. See § 1.62-2(h)(2)(i)(B).
(1) Any periodic variable rate payment
that relates to miles in excess of the busi-
ness miles an employee substantiates and
that the employee fails to return within a
reasonable period, or any portion of a pe-
riodic fixed payment that relates to a peri-
od during which the employee is treated as
not covered by the FAVR allowance and
that the employee fails to return within a
reasonable period, is subject to withhold-
ing and payment of employment taxes no
later than the first payroll period follow-
ing the end of the reasonable period. See
§ 1.62-2(h)(2)(i)(A).
(2) Any optional high mileage payment
is subject to withholding and payment of
employment taxes when paid.

Bulletin No. 2019–49 1309 December 2, 2019
.03 All payments to an employee un-
der a mileage allowance are treated as
paid under a nonaccountable plan if the
arrangement evidences a pattern of abuse.
An arrangement evidences a pattern of
abuse if, for example, it has no process to
determine when an allowance exceeds the
amount that may be deemed substantiated
and the arrangement routinely pays allow-
ances in excess of the amount that may be
deemed substantiated without (1) requir-
ing actual substantiation or repayment
of the excess amount, or (2) treating the
excess allowances as wages for employ-
ment tax purposes. See § 62(c), § 1.62-
2(k), and Rev. Rul. 2006-56, 2006-2 C.B.
874. Thus, these payments are included in
the employee’s gross income, are report-
ed as wages or other compensation on the
employee’s Form W-2, and are subject to
withholding and payment of employment
taxes. See § 1.62-2(c)(3), (c)(5), and (h)
(2).
.04 If a payor arranges to pay an
amount to an employee regardless of
whether the employee incurs (or is rea-
sonably expected to incur) deductible
business expenses or other bona fide ex-
penses related to the employer’s business
that are not deductible, the arrangement
does not meet the business connec-
tion requirement of § 1.62-2(d), and all
amounts paid under the arrangement are
treated as paid under a nonaccountable
plan. Thus, an arrangement that rechar-
acterizes taxable wages as nontaxable
reimbursements or allowances in order
to avoid the suspension of miscellaneous
itemized deductions under § 67(g) does
not satisfy the business connection re-
quirement of the accountable plan rules
under § 62(c) and the applicable regula-
tions. See § 62(c), § 1.62-2(d), and Rev.
Rul. 2012-25, 2012-37 I.R.B. 337.
SECTION 9. EFFECTIVE DATE
This revenue procedure is effective
for (1) deductible transportation expenses
paid or incurred on or after November 14,
2019, and (2) mileage allowances or reim-
bursements (a) paid to an employee or to a
charitable volunteer on or after November
14, 2019, and (b) for transportation ex-
penses the employee or charitable volun-
teer pays or incurs on or after November
14, 2019. Notwithstanding the effective
date in this section 9, amendments made
by the TCJA to §§ 67 and 217 are effec-
tive for any taxable year beginning after
December 31, 2017, and before January 1,
2026.
SECTION 10. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2010-51 is modified, and as
modified, is superseded.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Anna Gleysteen of the Office
of Associate Chief Counsel (Income Tax
and Accounting). For further information
regarding this revenue procedure, contact
Ms. Gleysteen at (202) 317-7007 (not a
toll-free number).

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI
—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2019–49 i December 2, 2019

Numerical Finding List
1
Bulletin 2019–49
AOD:
2019-02, 2019-41 I.R.B. 806
2019-03, 2019-42 I.R.B. 934
Announcements:
2019-07, 2019-27 I.R.B. 62
2019-08, 2019-32 I.R.B. 621
2019-10, 2019-46 I.R.B. 1049
Notices:
2019-12, 2019-27 I.R.B. 57
2019-40, 2019-27 I.R.B. 59
2019-41, 2019-28 I.R.B. 256
2019-42, 2019-29 I.R.B. 352
2019-27, 2019-31 I.R.B. 484
2019-43, 2019-31 I.R.B. 487
2019-24, 2019-31 I.R.B. 489
2019-45, 2019-32 I.R.B. 593
2019-48, 2019-36 I.R.B. 678
2019-46, 2019-37 I.R.B. 695
2019-49, 2019-37 I.R.B. 699
2019-50, 2019-37 I.R.B. 700
2019-47, 2019-39 I.R.B. 731
2019-51, 2019-41 I.R.B. 866
2019-52, 2019-41 I.R.B. 869
2019-54, 2019-42 I.R.B. 935
2019-55, 2019-42 I.R.B. 937
2019-58, 2019-44 I.R.B. 1022
2019-56, 2019-45 I.R.B. 1046
2019-59, 2019-47 I.R.B. 1091
2019-60, 2019-49 I.R.B. 1292
2019-61, 2019-49 I.R.B. 1294
Proposed Regulations:
REG-105476-18, 2019-27 I.R.B. 63
REG-106282-18, 2019-28 I.R.B. 259
REG-101828-19, 2019-29 I.R.B. 412
REG-106877-18, 2019-30 I.R.B. 441
REG-121508-18, 2019-30 I.R.B. 456
REG-105474-18, 2019-31 I.R.B. 493
REG-118425-18, 2019-31 I.R.B. 539
REG-130700-14, 2019-36 I.R.B. 681
REG-101378-19, 2019-37 I.R.B. 702
REG-104554-18, 2019-39 I.R.B. 737
REG-104870-18, 2019-39 I.R.B. 754
REG-102508-16, 2019-40 I.R.B. 777
REG-125710-18, 2019-40 I.R.B. 785
REG-106808-19, 2019-41 I.R.B. 912
REG-136401-18, 2019-42 I.R.B. 960
REG-104223-18, 2019-43 I.R.B. 989
REG-118784-18, 2019-44 I.R.B. 1024
REG-128246-18, 2019-44 I.R.B. 1037
REG-123112-19, 2019-47 I.R.B. 1104
Proposed Regulations:—Continued
REG-131071-18, 2019-48 I.R.B. 1217
REG-132210-18, 2019-48 I.R.B. 1232
Revenue Rulings:
2019-16, 2019-28 I.R.B. 96
2019-17, 2019-32 I.R.B. 583
2019-18, 2019-35 I.R.B. 668
2019-19, 2019-36 I.R.B. 674
2019-20, 2019-36 I.R.B. 675
2019-21, 2019-38 I.R.B. 708
2019-22, 2019-40 I.R.B. 776
2019-23, 2019-41 I.R.B. 807
2019-24, 2019-44 I.R.B. 1004
2019-25, 2019-45 I.R.B. 1042
2019-26, 2019-49 I.R.B. 1286
Revenue Procedures:
2019-24, 2019-29 I.R.B. 353
2019-28, 2019-32 I.R.B. 596
2019-29, 2019-32 I.R.B. 620
2019-30, 2019-33 I.R.B. 638
2019-31, 2019-33 I.R.B. 643
2019-32, 2019-33 I.R.B. 659
2019-33, 2019-34 I.R.B. 662
2019-34, 2019-35 I.R.B. 669
2019-23, 2019-38 I.R.B. 725
2019-36, 2019-38 I.R.B. 729
2019-37, 2019-39 I.R.B. 731
2019-35, 2019-41 I.R.B. 870
2019-38, 2019-42 I.R.B.
942
2019-39, 2019-42 I.R.B. 945
2019-40, 2019-43 I.R.B. 982
2019-41, 2019-44 I.R.B. 1022
2019-44, 2019-47 I.R.B. 1093
2019-43, 2019-48 I.R.B. 1107
2019-45, 2019-48 I.R.B. 1215
2019-42, 2019-49 I.R.B. 1298
2019-46, 2019-49 I.R.B. 1301
Treasury Decisions:
9863, 2019-27 I.R.B. 1
9864, 2019-27 I.R.B. 6
9865, 2019-27 I.R.B. 27
9867, 2019-28 I.R.B. 98
9868, 2019-28 I.R.B. 252
9866, 2019-29 I.R.B. 261
9861, 2019-30 I.R.B. 433
9869, 2019-30 I.R.B. 438
9862, 2019-31 I.R.B. 477
9872, 2019-32 I.R.B. 585
9871, 2019-33 I.R.B. 624
9873, 2019-33 I.R.B. 630
9874, 2019-41 I.R.B. 809
9875, 2019-41 I.R.B. 856
9876, 2019-44 I.R.B. 1005
9877, 2019-44 I.R.B. 1007
Treasury Decisions:—Continued
9878, 2019-45 I.R.B. 1044
9879, 2019-47 I.R.B. 1052
9880, 2019-47 I.R.B. 1085
9881, 2019-49 I.R.B. 1288
9883, 2019-49 I.R.B. 1289
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.
December 2, 2019 ii Bulletin No. 2019–49

Bulletin No. 2019–49 iii December 2, 2019
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2019–49
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

Internal Revenue Service
Washington, DC 20224
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