Internal Revenue Bulletin 2021-36 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2021–36
September 7, 2021
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.
INCOME TAX
Notice 2021-51, page 361.
The notice announces that the Treasury Department and
the IRS intend to amend certain regulations under sections
1446(a) and 1446(f) to defer the applicability date to January
1, 2023.
Rev. Rul. 2021-16, page 359.
Federal rates; adjusted federal rates; adjusted federal
long-term rate, and the long-term tax exempt rate. For
purposes of sections 382, 1274, 1288, 7872 and other
sections of the Code, tables set forth the rates for Sep-
tember 2021.
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.
September 7, 2021 Bulletin No. 2021–36

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)
Rev. Rul. 2021-16
This revenue ruling provides various
prescribed rates for federal income tax
purposes for September 2021 (the cur-
rent month). Table 1 contains the short-
term, mid-term, and long-term applica-
ble federal rates (AFR) for the current
month for purposes of section 1274(d)
of the Internal Revenue Code. Table 2
contains the short-term, mid-term, and
long-term adjusted applicable federal
rates (adjusted AFR) for the current
month for purposes of section 1288(b).
Table 3 sets forth the adjusted feder-
al long-term rate and the long-term
tax-exempt rate described in section
382(f). Table 4 contains the appropri-
ate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. How-
ever, under section 42(b)(2), the appli-
cable percentage for non-federally sub-
sidized new buildings placed in service
after July 30, 2008, shall not be less
than 9%. Finally, Table 5 contains the
federal rate for determining 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. 2021-16 TABLE 1
Applicable Federal Rates (AFR) for September 2021
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR0.17%0.17%0.17%0.17%
110% AFR0.19%0.19%0.19%0.19%
120% AFR0.20%0.20%0.20%0.20%
130% AFR0.22%0.22%0.22%0.22%
Mid-term
AFR0.86%0.86%0.86%0.86%
110% AFR 0.95%0.95%0.95%0.95%
120% AFR1.03%1.03%1.03%1.03%
130% AFR1.12%1.12%1.12%1.12%
150% AFR1.29%1.29%1.29%1.29%
175% AFR1.52%1.51%1.51%1.51%
Long-term
AFR1.73%1.72%1.72%1.71%
110% AFR1.90%1.89%1.89%1.88%
120% AFR2.07%2.06%2.05%2.05%
130% AFR2.25%2.24%2.23%2.23%
REV. RUL. 2021-16 TABLE 2
Adjusted AFR for September 2021
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR0.13%0.13%0.13%0.13%
Mid-term adjusted AFR0.65%0.65%0.65%0.65%
Long-term adjusted AFR1.31%1.31%1.31%1.31%
Bulletin No. 2021–36 359 September 7, 2021

REV. RUL. 2021-16 TABLE 3
Rates Under Section 382 for September 2021
Adjusted federal long-term rate for the current month1.31%
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.)
1.57%
REV. RUL. 2021-16 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for September 2021
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 credit7.30%
Appropriate percentage for the 30% present value low-income housing credit 3.13%
REV. RUL. 2021-16 TABLE 5
Rate Under Section 7520 for September 2021
Applicable federal rate for determining the present value of an annuity, an interest for life or a
term of years, or a remainder or reversionary interest
1.0%
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2021. See Rev. Rul. 2021-16, page 359.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
September 2021. See Rev. Rul. 2021-16, page 359.
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 September 2021. See
Rev. Rul. 2021-16, page 359.
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
September 2021. See Rev. Rul. 2021-16, page 359.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of September 2021. See Rev.
Rul. 2021-16, page 359.
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
September 2021. See Rev. Rul. 2021-16, page 359.

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
September 2021. See Rev. Rul. 2021-16, page 359.
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 September 2021. See Rev. Rul. 2021-16, page 359.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of September 2021. See Rev.
Rul. 2021-16, page 359.
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
September 2021. See Rev. Rul. 2021-16, page 359.

September 7, 2021 360 Bulletin No. 2021–36

Bulletin No. 2021–36 361 September 7, 2021
Part III
Applicability Date of
Certain Regulations Under
Sections 1446(a) and (f)
Notice 2021-51
I. PURPOSE
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to amend the regulations
under sections 1446(a) and 1446(f) to
defer the applicability date to January 1,
2023 for certain provisions relating to the
following: (i) withholding under section
1446(f) on transfers of interests in public-
ly traded partnerships (“PTP interests”);
(ii) withholding under section 1446(a) on
distributions made with respect to PTP in-
terests; and (iii) withholding under section
1446(f)(4) by partnerships on distribu-
tions to transferees. Before the issuance of
these amendments, taxpayers may rely on
the provisions of this notice regarding the
modified applicability dates.
II. BACKGROUND
Sections 864(c)(8) and 1446(f) were
added to the Code by the Tax Cuts and
Jobs Act, Pub. L. 115-97 on December
22, 2017. Section 864(c)(8) generally
provides that gain or loss derived by a
foreign person on the sale or exchange
of an interest in a partnership engaged
in a U.S. trade or business is treated as
effectively connected gain or loss and,
therefore, is subject to U.S. tax. Section
1446(f)(1) requires a transferee of an
interest in a partnership to withhold 10
percent of the amount realized if any por-
tion of the gain on the disposition would
be treated under section 864(c)(8) as ef-
fectively connected with the conduct of a
trade or business within the United States
(unless an exception applies). Section
1446(f)(4) provides that if a transferee
fails to withhold on the disposition as re-
quired under section 1446(f)(1), the part-
nership must withhold on distributions to
the transferee.
On November 30, 2020, the Treasury
Department and the IRS published final
regulations (TD 9926) in the Federal Reg-
ister (85 FR 76910, as corrected at 86 FR
13191) primarily relating to withholding
and information reporting under section
1446(f). The final regulations include
withholding and reporting requirements
under section 1446(f)(1) applicable to
brokers effecting transfers of PTP inter-
ests on behalf of foreign persons. The final
regulations also require a broker that pays
an amount realized to a foreign broker to
withhold on the amount realized, unless
the foreign broker is a qualified intermedi-
ary (QI) (or a U.S. branch treated as a U.S.
person) that assumes primary withholding
responsibility under section 1446(f)(1).
The final regulations modify certain rules
in §1.1446-4, which previously permitted
only a publicly traded partnership or a
U.S. person to be the withholding agent,
to allow a QI (or a U.S. branch treated as
a U.S. person) to assume withholding on
distributions with respect to PTP interests
under section 1446(a), in part to coordi-
nate with withholding requirements under
section 1446(f)(1). Under the final regu-
lations, a QI that assumes withholding on
a distribution under section 1446(a) must
also assume withholding on the distribu-
tion under section 1446(f). The final reg-
ulations also provide rules under section
1446(f)(4) for withholding and reporting
by partnerships (other than publicly trad-
ed partnerships) making distributions to
transferees of partnership interests who
failed to withhold as required under sec-
tion 1446(f)(1). The provisions of the fi-
nal regulations described in this paragraph
apply to transfers and distributions that
occur on or after January 1, 2022.
III. AMENDED APPLICABILITY
DATES
Following the publication of the final
regulations, the Treasury Department and
the IRS received comments noting that
taxpayers will face significant challeng-
es complying with certain provisions of
the final regulations by January 1, 2022,
and requesting a deferred applicability
date. These challenges include the follow-
ing: designing, building, and testing new
withholding and reporting infrastructure;
analyzing new forms and withholding
statements; and implementing systems
to capture required data. Brokers that are
qualified intermediaries (and U.S. branch-
es treated as U.S. persons) have the addi-
tional challenge of implementing systems
and processes to withhold and report
under section 1446(a) as well as section
1446(f).
In consideration of the concerns raised
by taxpayers, and to allow for an order-
ly implementation of the requirements of
section 1446(f) with respect to PTP in-
terests, the Treasury Department and the
IRS intend to amend certain applicability
dates of the final regulations (primarily
the applicability date in §1.1446(f)-4(f))
to provide that the provisions relating to
withholding and reporting on transfers
of PTP interests under section 1446(f)
(1) will apply to transfers that occur on
or after January 1, 2023. The Treasury
Department and the IRS also intend to
amend the applicability date of the modi-
fications to §1.1446-4 listed in §1.1446-7
to apply to distributions with respect to
PTP interests made on or after January 1,
2023. The modified applicability date for
these provisions will then align with the
modified applicability date for withhold-
ing and reporting under section 1446(f)
(1) with respect to PTP interests. In ad-
dition, in order to allow for an orderly
implementation of the withholding and
reporting requirements for partnerships
under section 1446(f)(4), the Treasury
Department and the IRS intend to amend
the applicability date in §1.1446(f)-3(f)
so that the provisions of the final regula-
tions requiring partnerships to withhold
under section 1446(f)(4) will apply to
transfers that occur on or after January 1,
2023.
IV. DRAFTING INFORMATION
The principal author of this notice is
Charles Rioux of the Office of Associate
Chief Counsel (International). For further
information regarding this notice, contact
Mr. Rioux at (202) 317-4992 (not a toll-
free number).

Bulletin No. 2021–36 i September 7, 2021
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.

September 7, 2021 ii Bulletin No. 2021–36
Numerical Finding List
1
Bulletin 2021–36
Announcements:
2021-12, 2021-31 I.R.B. 267
2021-13, 2021-33 I.R.B. 314
2021-14, 2021-33 I.R.B. 315
Notices:
2021-39, 2021-27 I.R.B. 3
2021-40, 2021-28 I.R.B. 15
2021-41, 2021-29 I.R.B. 17
2021-42, 2021-29 I.R.B. 19
2021-38, 2021-30 I.R.B. 155
2021-44, 2021-31 I.R.B. 166
2021-45, 2021-31 I.R.B. 170
2021-47, 2021-32 I.R.B. 269
2021-46, 2021-33 I.R.B. 303
2021-48, 2021-33 I.R.B. 305
2021-49, 2021-34 I.R.B. 316
2021-43, 2021-35 I.R.B. 332
2021-50, 2021-35 I.R.B. 333
2021-51, 2021-36 I.R.B. 361
Proposed Regulations:
REG-107705-21, 2021-30 I.R.B. 162
REG-102951-16, 2021-32 I.R.B. 272
Revenue Procedures:
2021-28, 2021-27 I.R.B. 5
2021-29, 2021-27 I.R.B. 12
2021-24, 2021-29 I.R.B. 19
2021-14, 2021-30 I.R.B. 158
2021-30, 2021-31 I.R.B. 172
2021-31, 2021-33 I.R.B. 324
2021-33, 2021-34 I.R.B. 327
2021-34, 2021-35 I.R.B. 337
2021-35, 2021-35 I.R.B. 355
2021-36, 2021-35 I.R.B. 357
Revenue Rulings:
2021-12, 2021-27 I.R.B. 1
2021-13, 2021-30 I.R.B. 152
2021-14, 2021-31 I.R.B. 164
2021-15, 2021-35 I.R.B. 331
2021-16, 2021-36 I.R.B. 359
Treasury Decisions:
9951, 2021-30 I.R.B. 25
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.

Bulletin No. 2021–36 iii September 7, 2021
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2021–36
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2021–27 through 2021–52 is in Internal Revenue Bulletin
2021–52, dated December 27, 2021.

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