Internal Revenue Bulletin 2023-23 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2023–23
June 5, 2023
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
Rev. Rul. 2023-11, page 886.
Interest rates: underpayments and overpayments. The rates
for interest determined under Section 6621 of the code for
the calendar quarter beginning July 1, 2023, will be 7 per-
cent for overpayments (6 percent in the case of a corpora-
tion), 7 percent for underpayments, and 9 percent for large
corporate underpayments. The rate of interest paid on the
portion of a corporate overpayment exceeding $10,000 will
be 4.5 percent.
INCOME TAX
Notice 2023-41, page 905.
The notice provides the applicable reference price for qual-
ified natural gas production from qualified marginal wells
during taxable years beginning in calendar year 2022 for the
purpose of determining the marginal well production credit
under § 45I. The applicable reference price for taxable years
beginning in calendar year 2022 is $3.43 per 1,000 cubic
feet. The notice also provides the credit amount used for the
purpose of determining the marginal well production credit.
The credit amount for taxable years beginning in calendar
year 2022 is $0.00 per 1,000 cubic feet.
REG-108054-21, page 907.
This document contains proposed regulations providing guid-
ance on the application of the transfer for valuable consid-
eration rules under section 101 and associated information
reporting requirements for reportable policy sales of inter-
ests in life insurance contracts under section 6050Y. The
proposed regulations would amend the rules for exchanges
of life insurance contracts qualifying for nonrecognition of
gain or loss, as well as for certain acquisitions of interests in
life insurance contracts in transactions that qualify as corpo-
rate reorganizations. The proposed regulations affect parties
involved in these life insurance contract transactions, includ-
ing with respect to payments of reportable death benefits.
Rev. Rul. 2023-10, page 884.
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 June 2023.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
June 5, 2023 Bulletin No. 2023–23

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. 2023-10
This revenue ruling provides vari-
ous prescribed rates for federal income
tax purposes for June 2023 (the current
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 fed-
eral long-term rate and the long-term
tax-exempt rate described in section
382(f). Table 4 contains the appropriate
percentages for determining the low-in-
come housing credit described in sec-
tion 42(b)(1) for buildings placed
in service during the current month.
However, under section 42(b)(2), the
applicable percentage for non-federally
subsidized new buildings placed in ser-
vice 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 inter-
est for life or for a term of years, or a
remainder or a reversionary interest for
purposes of section 7520.
REV. RUL. 2023-10 TABLE 1
Applicable Federal Rates (AFR) for June 2023
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR4.43%4.38%4.36%4.34%
110% AFR4.88%4.82%4.79%4.77%
120% AFR5.33%5.26%5.23%5.20%
130% AFR5.77%5.69%5.65%5.62%
Mid-term
AFR3.56%3.53%3.51%3.50%
110% AFR 3.92%3.88%3.86%3.85%
120% AFR4.28%4.24%4.22%4.20%
130% AFR4.64%4.59%4.56%4.55%
150% AFR5.37%5.30%5.27%5.24%
175% AFR6.28%6.18%6.13%6.10%
Long-term
AFR3.79%3.75%3.73%3.72%
110% AFR4.17%4.13%4.11%4.09%
120% AFR4.55%4.50%4.47%4.46%
130% AFR4.94%4.88%4.85%4.83%
REV. RUL. 2023-10 TABLE 2
Adjusted AFR for June 2023
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR3.36%3.33%3.32%3.31%
Mid-term adjusted AFR2.70%2.68%2.67%2.67%
Long-term adjusted AFR2.87%2.85%2.84%2.83%
June 5, 2023 884 Bulletin No. 2023–23

REV. RUL. 2023-10 TABLE 3
Rates Under Section 382 for June 2023
Adjusted federal long-term rate for the current month2.87%
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.)
3.04%
REV. RUL. 2023-10 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for June 2023
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 credit7.85%
Appropriate percentage for the 30% present value low-income housing credit 3.36%
REV. RUL. 2023-10 TABLE 5
Rate Under Section 7520 for June 2023
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
4.20%
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2023. See Rev. Rul. 2023-10, page 884.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2023. See Rev. Rul. 2023-10, page 884.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2023. See Rev. Rul. 2023-10, page 884.
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
June 2023. See Rev. Rul. 2023-10, page 884.
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
June 2023. See Rev. Rul. 2023-10, page 884.
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
June 2023. See Rev. Rul. 2023-10, page 884.
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
June 2023. See Rev. Rul. 2023-10, page 884.
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 June 2023. See Rev. Rul. 2023-10, page
884.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of June 2023. See Rev. Rul.
2023-10, page 884.
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
June 2023. See Rev. Rul. 2023-10, page 884.

Bulletin No. 2023–23 885 June 5, 2023

June 5, 2023 886 Bulletin No. 2023–23
Section 6621.—
Determination of Rate of
Interest
26 CFR 301.6621-1: Interest rate.
Rev. Rul. 2023-11
Section 6621 of the Internal Revenue
Code establishes the interest rates on
overpayments and underpayments of
tax. Under section 6621(a)(1), the over-
payment rate is the sum of the federal
short-term rate plus 3 percentage points
(2 percentage points in the case of a cor-
poration), except the rate for the portion of
a corporate overpayment of tax exceeding
$10,000 for a taxable period is the sum
of the federal short-term rate plus 0.5 of
a percentage point. Under section 6621(a)
(2), the underpayment rate is the sum of
the federal short-term rate plus 3 percent-
age points.
Section 6621(c) provides that for
purposes of interest payable under sec-
tion 6601 on any large corporate under-
payment, the underpayment rate under
section 6621(a)(2) is determined by sub-
stituting “5 percentage points” for “3 per-
centage points.” See section 6621(c) and
section 301.6621-3 of the Regulations
on Procedure and Administration for the
definition of a large corporate underpay-
ment and for the rules for determining the
applicable date. Section 6621(c) and sec-
tion 301.6621-3 are generally effective for
periods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal
short-term rate for the first month in
each calendar quarter. Section 6621(b)
(2)(A) provides that the federal short-
term rate determined under section
6621(b)(1) for any month applies during
the first calendar quarter beginning after
that month. Section 6621(b)(3) provides
that the federal short-term rate for any
month is the federal short-term rate
determined during that month by the
Secretary in accordance with section
1274(d), rounded to the nearest full per-
cent (or, if a multiple of 1/2 of 1 percent,
the rate is increased to the next highest
full percent).
Notice 88-59, 1988-1 C.B. 546,
announced that in determining the quar-
terly interest rates to be used for over-
payments and underpayments of tax
under section 6621, the Internal Revenue
Service will use the federal short-term rate
based on daily compounding because that
rate is most consistent with section 6621
which, pursuant to section 6622, is subject
to daily compounding.
The federal short-term rate deter-
mined in accordance with section 1274(d)
during April 2023 is the rate published
in Revenue Ruling 2023-9, 2023-19 IRB
835, to take effect beginning May 1, 2023.
The federal short-term rate, rounded to the
nearest full percent, based on daily com-
pounding determined during the month
of April 2023 is 4 percent. Accordingly,
an overpayment rate of 7 percent (6 per-
cent in the case of a corporation) and an
underpayment rate of 7 percent are estab-
lished for the calendar quarter beginning
July 1, 2023. The overpayment rate for
the portion of a corporate overpayment
exceeding $10,000 for the calendar quar-
ter beginning July 1, 2023, is 4.5 percent.
The underpayment rate for large corporate
underpayments for the calendar quarter
beginning July 1, 2023, is 9 percent. These
rates apply to amounts bearing interest
during that calendar quarter.
Sections 6654(a)(1) and 6655(a)
(1) provide that the underpayment rate
established under section 6621 applies
in determining the addition to tax under
sections 6654 and 6655 for failure to pay
estimated tax for any taxable year. Thus,
the 7 percent rate also applies to estimated
tax underpayments for the third calendar
quarter beginning July 1, 2023. In addi-
tion, pursuant to section 6603(d)(4), the
rate of interest on section 6603 deposits is
4 percent for the third calendar quarter in
2023.
Interest factors for daily compound
interest for annual rates of 4.5 percent, 6
percent, 7 percent and 9 percent are pub-
lished in Tables 14, 17, 19 and 23 of Rev.
Proc. 95-17, 1995-1 C.B. 568, 571, 573,
and 577.
Annual interest rates to be compounded
daily pursuant to section 6622 that apply
for prior periods are set forth in the tables
accompanying this revenue ruling.
DRAFTING INFORMATION
The principal author of this revenue
ruling is Casey R. Conrad of the Office of
the Associate Chief Counsel (Procedure
and Administration). For further informa-
tion regarding this revenue ruling, contact
Mr. Conrad at (202) 317-6844 (not a toll-
free number).

Bulletin No. 2023–23 887 June 5, 2023
APPENDIX A
365 Day Year
0.5% Compound Rate 184 Days
DaysFactorDaysFactorDaysFactor
10.000013699630.0008633801250.001713784
20.000027397640.0008770911260.001727506
30.000041096650.0008908011270.001741228
40.000054796660.0009045121280.001754951
50.000068495670.0009182231290.001768673
60.000082195680.0009319341300.001782396
70.000095894690.0009456461310.001796119
80.000109594700.0009593571320.001809843
90.000123294710.0009730691330.001823566
100.000136995720.0009867811340.001837290
110.000150695730.0010004931350.001851013
120.000164396740.0010142061360.001864737
130.000178097750.0010279181370.001878462
140.000191798760.0010416311380.001892186
150.000205499770.0010553441390.001905910
160.000219201780.0010690571400.001919635
170.000232902790.0010827701410.001933360
180.000246604800.0010964841420.001947085
190.000260306810.0011101971430.001960811
200.000274008820.0011239111440.001974536
210.000287711830.0011376251450.001988262
220.000301413840.0011513391460.002001988
230.000315116850.0011650541470.002015714
240.000328819860.0011787681480.002029440
250.000342522870.0011924831490.002043166
260.000356225880.0012061981500.002056893
270.000369929890.0012199131510.002070620
280.000383633900.0012336291520.002084347
290.000397336910.0012473441530.002098074
300.000411041920.0012610601540.002111801
310.000424745930.0012747761550.002125529
320.000438449940.0012884921560.002139257
330.000452154950.0013022081570.002152985
340.000465859960.0013159251580.002166713
350.000479564970.0013296411590.002180441
360.000493269980.0013433581600.002194169
370.000506974990.0013570751610.002207898
380.0005206801000.0013707921620.002221627
390.0005343861010.0013845101630.002235356
400.0005480921020.0013982271640.002249085
410.0005617981030.0014119451650.002262815

June 5, 2023 888 Bulletin No. 2023–23
420.0005755041040.0014256631660.002276544
430.0005892111050.0014393811670.002290274
440.0006029171060.0014531001680.002304004
450.0006166241070.0014668181690.002317734
460.0006303311080.0014805371700.002331465
470.0006440391090.0014942561710.002345195
480.0006577461100.0015079751720.002358926
490.0006714541110.0015216941730.002372657
500.0006851611120.0015354141740.002386388
510.0006988691130.0015491331750.002400120
520.0007125781140.0015628531760.002413851
530.0007262861150.0015765731770.002427583
540.0007399951160.0015902931780.002441315
550.0007537031170.0016040141790.002455047
560.0007674121180.0016177341800.002468779
570.0007811211190.0016314551810.002482511
580.0007948311200.0016451761820.002496244
590.0008085401210.0016588971830.002509977
600.0008222501220.0016726191840.002523710
610.0008359601230.001686340
620.0008496701240.001700062

Bulletin No. 2023–23 889 June 5, 2023
366 Day Year
0.5% Compound Rate 184 Days
DaysFactorDaysFactorDaysFactor
10.000013661630.0008610201250.001709097
20.000027323640.0008746931260.001722782
30.000040984650.0008883661270.001736467
40.000054646660.0009020401280.001750152
50.000068308670.0009157131290.001763837
60.000081970680.0009293871300.001777522
70.000095632690.0009430611310.001791208
80.000109295700.0009567351320.001804893
90.000122958710.0009704091330.001818579
100.000136620720.0009840841340.001832265
110.000150283730.0009977581350.001845951
120.000163947740.0010114331360.001859638
130.000177610750.0010251081370.001873324
140.000191274760.0010387831380.001887011
150.000204938770.0010524591390.001900698
160.000218602780.0010661341400.001914385
170.000232266790.0010798101410.001928073
180.000245930800.0010934861420.001941760
190.000259595810.0011071621430.001955448
200.000273260820.0011208391440.001969136
210.000286924830.0011345151450.001982824
220.000300590840.0011481921460.001996512
230.000314255850.0011618691470.002010201
240.000327920860.0011755461480.002023889
250.000341586870.0011892231490.002037578
260.000355252880.0012029001500.002051267
270.000368918890.0012165781510.002064957
280.000382584900.0012302561520.002078646
290.000396251910.0012439341530.002092336
300.000409917920.0012576121540.002106025
310.000423584930.0012712911550.002119715
320.000437251940.0012849691560.002133405
330.000450918950.0012986481570.002147096
340.000464586960.0013123271580.002160786
350.000478253970.0013260061590.002174477
360.000491921980.0013396851600.002188168
370.000505589990.0013533651610.002201859
380.0005192571000.0013670441620.002215550
390.0005329251010.0013807241630.002229242
400.0005465941020.0013944041640.002242933
410.0005602621030.0014080851650.002256625
420.0005739311040.0014217651660.002270317

June 5, 2023 890 Bulletin No. 2023–23
430.0005876001050.0014354461670.002284010
440.0006012691060.0014491271680.002297702
450.0006149391070.0014628081690.002311395
460.0006286081080.0014764891700.002325087
470.0006422781090.0014901701710.002338780
480.0006559481100.0015038521720.002352473
490.0006696181110.0015175331730.002366167
500.0006832891120.0015312151740.002379860
510.0006969591130.0015448971750.002393554
520.0007106301140.0015585801760.002407248
530.0007243011150.0015722621770.002420942
540.0007379721160.0015859451780.002434636
550.0007516431170.0015996281790.002448331
560.0007653151180.0016133111800.002462025
570.0007789861190.0016269941810.002475720
580.0007926581200.0016406781820.002489415
590.0008063301210.0016543611830.002503110
600.0008200031220.0016680451840.002516806
610.0008336751230.001681729
620.0008473481240.001695413

Bulletin No. 2023–23 891 June 5, 2023
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 - PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATEIn 1995-1 C.B.
DAILY RATE TABLE
Before Jul. 1, 19756%Table2,pg.557
Jul. 1, 1975–Jan. 31, 19769%Table4,pg.559
Feb. 1, 1976–Jan. 31, 19787%Table3,pg.558
Feb. 1, 1978–Jan. 31, 19806%Table2,pg.557
Feb. 1, 1980–Jan. 31, 198212%Table5,pg.560
Feb. 1, 1982–Dec. 31, 198220%Table6,pg.560
Jan. 1, 1983–Jun. 30, 198316%Table37,pg.591
Jul. 1, 1983–Dec. 31, 198311%Table27,pg.581
Jan. 1, 1984–Jun. 30, 198411%Table75,pg.629
Jul. 1, 1984–Dec. 31, 198411%Table75,pg.629
Jan. 1, 1985–Dec. 31, 198513%Table31,pg.585
Jul. 1, 1985–Dec. 31, 198511%Table27,pg.581
Jan. 1, 1986–Jun. 30, 198610%Table25,pg.579
Jul. 1, 1986–Dec. 31, 19869%Table23,pg.577
TABLE OF INTEREST RATES
FROM JAN. 1, 1987 – Dec. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995-1 C.B.1995-1 C.B. RATE
RATETABLEPGRATETABLEPG
Jan. 1, 1987–Mar. 31, 19878%215759%23577
Apr. 1, 1987–Jun. 30, 19878%215759%23577
Jul. 1, 1987–Sep. 30, 19878%215759%23577
Oct. 1, 1987–Dec. 31, 19879%2357710%25579
Jan. 1, 1988–Mar. 31, 198810%7362711%75629
Apr. 1, 1988–Jun. 30, 19889%7162510%73627
Jul. 1, 1988–Sep. 30, 19889%7162510%73627
Oct. 1, 1988–Dec. 31, 198810%7362711%75629
Jan. 1, 1989–Mar. 31, 198910%2557911%27581
Apr. 1, 1989–Jun. 30, 198911%2758112%29583
Jul. 1, 1989–Sep. 30, 198911%2758112%29583
Oct. 1, 1989–Dec. 31, 198910%2557911%27581
Jan. 1, 1990–Mar. 31, 199010%2557911%27581
Apr. 1, 1990–Jun. 30, 199010%2557911%27581
Jul. 1, 1990–Sep. 30, 199010%2557911%27581
Oct. 1, 1990–Dec. 31, 199010%2557911%27581
Jan. 1, 1991–Mar. 31, 199110%2557911%27581

June 5, 2023 892 Bulletin No. 2023–23
Apr. 1, 1991–Jun. 30, 19919%2357710%25579
Jul. 1, 1991–Sep. 30, 19919%2357710%25579
Oct. 1, 1991–Dec. 31, 19919%2357710%25579
Jan. 1, 1992–Mar. 31, 19928%696239%71625
Apr. 1, 1992–Jun. 30, 19927%676218%69623
Jul. 1, 1992–Sep. 30, 19927%676218%69623
Oct. 1, 1992–Dec. 31, 19926%656197%67621
Jan. 1, 1993–Mar. 31, 19936%175717%19573
Apr. 1, 1993–Jun. 30, 19936%175717%19573
Jul. 1, 1993–Sep. 30, 19936%175717%19573
Oct. 1, 1993–Dec. 31, 19936%175717%19573
Jan. 1, 1994–Mar. 31, 19946%175717%19573
Apr. 1, 1994–Jun. 30, 19946%175717%19573
Jul. 1, 1994–Sep. 30, 19947%195738%21575
Oct. 1, 1994–Dec. 31, 19948%215759%23577
Jan. 1, 1995–Mar. 31, 19958%215759%23577
Apr. 1, 1995–Jun. 30, 19959%2357710%25579
Jul. 1, 1995–Sep. 30, 19958%215759%23577
Oct. 1, 1995–Dec. 31, 19958%215759%23577
Jan. 1, 1996–Mar. 31, 19968%696239%71625
Apr. 1, 1996–Jun. 30, 19967%676218%69623
Jul. 1, 1996–Sep. 30, 19968%696239%71625
Oct. 1, 1996–Dec. 31, 19968%696239%71625
Jan. 1, 1997–Mar. 31, 19978%215759%23577
Apr. 1, 1997–Jun. 30, 19978%215759%23577
Jul. 1, 1997–Sep. 30, 19978%215759%23577
Oct. 1, 1997–Dec. 31, 19978%215759%23577
Jan. 1, 1998–Mar. 31, 19988%215759%23577
Apr. 1, 1998–Jun. 30, 19987%195738%21575
Jul. 1, 1998–Sep. 30, 19987%195738%21575
Oct. 1, 1998–Dec. 31, 19987%195738%21575

Bulletin No. 2023–23 893 June 5, 2023
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 - PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995-1 C.B.
RATETABLEPAGE
Jan. 1, 1999–Mar. 31, 19997%19573
Apr. 1, 1999–Jun. 30, 19998%21575
Jul. 1, 1999–Sep. 30, 19998%21575
Oct. 1, 1999–Dec. 31, 19998%21575
Jan. 1, 2000–Mar. 31, 20008%69623
Apr. 1, 2000–Jun. 30, 20009%71625
Jul. 1, 2000–Sep. 30, 20009%71625
Oct. 1, 2000–Dec. 31, 20009%71625
Jan. 1, 2001–Mar. 31, 20019%23577
Apr. 1, 2001–Jun. 30, 20018%21575
Jul. 1, 2001–Sep. 30, 20017%19573
Oct. 1, 2001–Dec. 31, 20017%19573
Jan. 1, 2002–Mar. 31, 20026%17571
Apr. 1, 2002–Jun. 30, 20026%17571
Jul. 1, 2002–Sep. 30, 20026%17571
Oct. 1, 2002–Dec. 31, 20026%17571
Jan. 1, 2003–Mar. 31, 20035%15569
Apr. 1, 2003–Jun. 30, 20035%15569
Jul. 1, 2003–Sep. 30, 20035%15569
Oct. 1, 2003–Dec. 31, 20034%13567
Jan. 1, 2004–Mar. 31, 20044%61615
Apr. 1, 2004–Jun. 30, 20045%63617
Jul. 1, 2004–Sep. 30, 20044%61615
Oct. 1, 2004–Dec. 31, 20045%63617
Jan. 1, 2005–Mar. 31, 20055%15569
Apr. 1, 2005–Jun. 30, 20056%17571
Jul. 1, 2005–Sep. 30, 20056%17571
Oct. 1, 2005–Dec. 31, 20057%19573
Jan. 1, 2006–Mar. 31, 20067%19573
Apr. 1, 2006–Jun. 30, 20067%19573
Jul. 1, 2006–Sep. 30, 20068%21575
Oct. 1, 2006–Dec. 31, 20068%21575
Jan. 1, 2007–Mar. 31, 20078%21575
Apr. 1, 2007–Jun. 30, 20078%21575
Jul. 1, 2007–Sep. 30, 20078%21575
Oct. 1, 2007–Dec. 31, 20078%21575
Jan. 1, 2008–Mar. 31, 20087%67621
Apr. 1, 2008–Jun. 30, 20086%65619
Jul. 1, 2008–Sep. 30, 20085%63617
Oct. 1, 2008–Dec. 31, 20086%65619

June 5, 2023 894 Bulletin No. 2023–23
Jan. 1, 2009–Mar. 31, 20095%15569
Apr. 1, 2009–Jun. 30, 20094%13567
Jul. 1, 2009–Sep. 30, 20094%13567
Oct. 1, 2009–Dec. 31, 20094%13567
Jan. 1, 2010–Mar. 31, 20104%13567
Apr. 1, 2010–Jun. 30, 20104%13567
Jul. 1, 2010–Sep. 30, 20104%13567
Oct. 1, 2010–Dec. 31, 20104%13567
Jan. 1, 2011–Mar. 31, 20113%11565
Apr. 1, 2011–Jun. 30, 20114%13567
Jul. 1, 2011–Sep. 30, 20114%13567
Oct. 1, 2011–Dec. 31, 20113%11565
Jan. 1, 2012–Mar. 31, 20123%59613
Apr. 1, 2012–Jun. 30, 20123%59613
Jul. 1, 2012–Sep. 30, 20123%59613
Oct. 1, 2012–Dec. 31, 20123%59613
Jan. 1, 2013–Mar. 31, 20133%11565
Apr. 1, 2013–Jun. 30, 20133%11565
Jul. 1, 2013–Sep. 30, 20133%11565
Oct. 1, 2013–Dec. 31, 20133%11565
Jan. 1, 2014–Mar. 31, 20143%11565
Apr. 1, 2014–Jun. 30, 20143%11565
Jul. 1, 2014–Sep. 30, 20143%11565
Oct. 1, 2014–Dec. 31, 20143%11565
Jan. 1, 2015–Mar. 31, 20153%11565
Apr. 1, 2015–Jun. 30, 20153%11565
Jul. 1, 2015–Sep. 30, 20153%11565
Oct. 1, 2015–Dec. 31, 20153%11565
Jan. 1, 2016–Mar. 31, 20163%59613
Apr. 1, 2016–Jun. 30, 20164%61615
Jul. 1, 2016–Sep. 30, 20164%61615
Oct. 1, 2016–Dec. 31, 20164%61615
Jan. 1, 2017–Mar. 31, 20174%13567
Apr. 1, 2017–Jun. 30, 20174%13567
Jul. 1, 2017–Sep. 30, 20174%13567
Oct. 1, 2017–Dec. 31, 20174%13567
Jan. 1, 2018–Mar. 31, 20184%13567
Apr. 1, 2018–Jun. 30, 20185%15569
Jul. 1, 2018–Sep. 30, 20185%15569
Oct. 1, 2018–Dec. 31, 20185%15569
Jan. 1, 2019–Mar. 31, 20196%17571
Apr. 1, 2019–Jun. 30, 20196%17571
Jul. 1, 2019–Sep. 30, 20195%15569
Oct. 1, 2019–Dec. 31, 20195%15569
Jan. 1, 2020–Mar. 31, 20205%63617

Bulletin No. 2023–23 895 June 5, 2023
Apr. 1, 2020–Jun. 30, 20205%63617
Jul. 1, 2020–Sep. 30, 20203%59613
Oct. 1, 2020–Dec. 31, 20203%59613
Jan. 1, 2021–Mar. 31, 20213%11565
Apr. 1, 2021–Jun. 30, 20213%11565
Jul. 1, 2021–Sep. 30, 20213%11565
Oct. 1, 2021–Dec. 31, 20213%11565
Jan. 1, 2022–Mar. 31, 20223%11565
Apr. 1, 2022–Jun. 30, 20224%13567
Jul. 1, 2022–Sep. 30, 20225%15569
Oct. 1, 2022–Dec. 31, 20226%17571
Jan. 1, 2023–Mar. 31, 20237%19573
Apr. 1, 2023–Jun. 30, 20237%19573
Jul. 1, 2023–Sep. 30, 2023 7%19573

June 5, 2023 896 Bulletin No. 2023–23
TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 - PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995-1 C.B.1995-1 C.B.
RATETABLEPGRATETABLEPG
Jan. 1, 1999–Mar. 31, 19996%175717%19573
Apr. 1, 1999–Jun. 30, 19997%195738%21575
Jul. 1, 1999–Sep. 30, 19997%195738%21575
Oct. 1, 1999–Dec. 31, 19997%195738%21575
Jan. 1, 2000–Mar. 30, 20007%676218%69623
Apr. 1, 2000–Jun. 30, 20008%696239%71625
Jul. 1, 2000–Sep. 30, 20008%696239%71625
Oct. 1, 2000–Dec. 31, 20008%696239%71625
Jan. 1, 2001–Mar. 31, 20018%215759%23577
Apr. 1, 2001–Jun. 30, 20017%195738%21575
Jul. 1, 2001–Sep. 30, 20016%175717%19573
Oct. 1, 2001–Dec. 31, 20016%175717%19573
Jan. 1, 2002–Mar. 31, 20025%155696%17571
Apr. 1, 2002–Jun. 30, 20025%155696%17571
Jul. 1, 2002–Sep. 30, 20025%155696%17571
Oct. 1, 2002–Dec. 31, 20025%155696%17571
Jan. 1, 2003–Mar. 31, 20034%135675%15569
Apr. 1, 2003–Jun. 30, 20034%135675%15569
Jul. 1, 2003–Sep. 30, 20034%135675%15569
Oct. 1, 2003–Dec. 31, 20033%115654%13567
Jan. 1, 2004–Mar. 31, 20043%596134%61615
Apr. 1, 2004–Jun. 30, 20044%616155%63617
Jul. 1, 2004–Sep. 30, 20043%596134%61615
Oct. 1, 2004–Dec. 31, 20044%616155%63617
Jan. 1, 2005–Mar. 31, 20054%135675%15569
Apr. 1, 2005–Jun. 30, 20055%155696%17571
Jul. 1, 2005–Sep. 30, 20055%155696%17571
Oct. 1, 2005–Dec. 31, 20056%175717%19573
Jan. 1, 2006–Mar. 31, 20066%175717%19573
Apr. 1, 2006–Jun. 30, 20066%175717%19573
Jul. 1, 2006–Sep. 30, 20067%195738%21575
Oct. 1, 2006–Dec. 31, 20067%195738%21575
Jan. 1, 2007–Mar. 31, 20077%195738%21575
Apr. 1, 2007–Jun. 30, 20077%195738%21575
Jul. 1, 2007–Sep. 30, 20077%195738%21575
Oct. 1, 2007–Dec. 31, 20077%195738%21575
Jan. 1, 2008–Mar. 31, 20086%656197%67621
Apr. 1, 2008–Jun. 30, 20085%636176%65619
Jul. 1, 2008–Sep. 30, 20084%616155%63617
Oct. 1, 2008–Dec. 31, 20085%636176%65619

Bulletin No. 2023–23 897 June 5, 2023
Jan. 1, 2009–Mar. 31, 20094%135675%15569
Apr. 1, 2009–Jun. 30, 20093%115654%13567
Jul. 1, 2009–Sep. 30, 20093%115654%13567
Oct. 1, 2009–Dec. 31, 20093%115654%13567
Jan. 1, 2010–Mar. 31, 20103%115654%13567
Apr. 1, 2010–Jun. 30, 20103%115654%13567
Jul. 1, 2010–Sep. 30, 20103%115654%13567
Oct. 1, 2010–Dec. 31, 20103%115654%13567
Jan. 1, 2011–Mar. 31, 20112%95633%11565
Apr. 1, 2011–Jun. 30, 20113%115654%13567
Jul. 1, 2011–Sep. 30, 20113%115654%13567
Oct. 1, 2011–Dec. 31, 20112%95633%11565
Jan. 1, 2012–Mar. 31, 20122%576113%59613
Apr. 1, 2012–Jun. 30, 20122%576113%59613
Jul. 1, 2012–Sep. 30, 20122%576113%59613
Oct. 1, 2012–Dec. 31, 20122%576113%59613
Jan. 1, 2013–Mar. 31, 20132%95633%11565
Apr. 1, 2013–Jun. 30, 20132%95633%11565
Jul. 1, 2013–Sep. 30, 20132%95633%11565
Oct. 1, 2013–Dec. 31, 20132%95633%11565
Jan. 1, 2014–Mar. 31, 20142%95633%11565
Apr. 1, 2014–Jun. 30, 20142%95633%11565
Jul. 1, 2014–Sep. 30, 20142%95633%11565
Oct. 1, 2014–Dec. 31, 20142%95633%11565
Jan. 1, 2015–Mar. 31, 20152%95633%11565
Apr. 1, 2015–Jun. 30, 20152%95633%11565
Jul. 1, 2015–Sep. 30, 20152%95633%11565
Oct. 1, 2015–Dec. 31, 20152%95633%11565
Jan. 1, 2016–Mar. 31, 20162%576113%59613
Apr. 1, 2016–Jun. 30, 20163%596134%61615
Jul. 1, 2016–Sep. 30, 20163%596134%61615
Oct. 1, 2016–Dec. 31, 20163%596134%61615
Jan. 1, 2017–Mar. 31, 20173%115654%13567
Apr. 1, 2017–Jun. 30, 20173%115654%13567
Jul. 1, 2017–Sep. 30, 20173%115654%13567
Oct. 1, 2017–Dec. 31, 20173%115654%13567
Jan. 1, 2018–Mar. 31, 20183%115654%13567
Apr. 1, 2018–Jun. 30, 20184%135675%15569
Jul. 1, 2018–Sep. 30, 20184%135675%15569
Oct. 1, 2018–Dec. 31, 20184%135675%15569
Jan. 1, 2019–Mar. 31, 20195%155696%17571
Apr. 1, 2019–Jun. 30, 20195%155696%17571
Jul. 1, 2019–Sep. 30, 20194%135675%15569
Oct. 1, 2019–Dec. 31, 20194%135675%15569
Jan. 1, 2020–Mar. 31, 20204%616155%63617

June 5, 2023 898 Bulletin No. 2023–23
Apr. 1, 2020–Jun. 30, 20204%616155%63617
Jul. 1, 2020–Sep. 30, 20202%576113%59613
Oct. 1, 2020–Dec. 31, 20202%576113%59613
Jan. 1, 2021–Mar. 31, 20212%95633%11565
Apr. 1, 2021–Jun. 30, 20212%95633%11565
Jul. 1, 2021–Sep. 30, 20212%95633%11565
Oct. 1, 2021–Dec. 31, 20212%95633%11565
Jan. 1, 2022–Mar. 31, 20222%95633%11565
Apr. 1, 2022–Jun. 30, 20223%115654%13567
Jul. 1, 2022–Sep. 30, 20224%135675%15569
Oct. 1, 2022–Dec. 31, 20225%155696%17571
Jan. 1, 2023–Mar. 31, 20236%175717%19573
Apr. 1, 2023–Jun. 30, 20236%175717%19573
Jul. 1, 2023–Sep. 30, 20236%175717%19573

Bulletin No. 2023–23 899 June 5, 2023
TABLE OF INTEREST RATES
FOR LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 - PRESENT
1995-1 C.B.
RATETABLEPG
Jan. 1, 1991–Mar. 31, 199113%31585
Apr. 1, 1991–Jun. 30, 199112%29583
Jul. 1, 1991–Sep. 30, 199112%29583
Oct. 1, 1991–Dec. 31, 199112%29583
Jan. 1, 1992–Mar. 31, 199211%75629
Apr. 1, 1992–Jun. 30, 199210%73627
Jul. 1, 1992–Sep. 30, 199210%73627
Oct. 1, 1992–Dec. 31, 19929%71625
Jan. 1, 1993–Mar. 31, 19939%23577
Apr. 1, 1993–Jun. 30, 19939%23577
Jul. 1, 1993–Sep. 30, 19939%23577
Oct. 1, 1993–Dec. 31, 19939%23577
Jan. 1, 1994–Mar. 31, 19949%23577
Apr. 1, 1994–Jun. 30, 19949%23577
Jul. 1, 1994–Sep. 30, 199410%25579
Oct. 1, 1994–Dec. 31, 199411%27581
Jan. 1, 1995–Jun. 30, 199511%27581
Apr. 1, 1995–Jun. 30, 199512%29583
Jul. 1, 1995–Sep. 30, 199511%27581
Oct. 1, 1995–Dec. 31, 199511%27581
Jan. 1, 1996–Mar. 31, 199611%75629
Apr. 1, 1996–Jun. 30, 199610%73627
Jul. 1, 1996–Sep. 30, 199611%75629
Oct. 1, 1996–Dec. 31, 199611%75629
Jan. 1, 1997–Mar. 31, 199711%27581
Apr. 1, 1997–Jun. 30, 199711%27581
Jul. 1, 1997–Sep. 30, 199711%27581
Oct. 1, 1997–Dec. 31, 199711%27581
Jan. 1, 1998–Mar. 31, 199811%27581
Apr. 1, 1998–Jun. 30, 199810%25579
Jul. 1, 1998–Sep. 30, 199810%25579
Oct. 1, 1998–Dec. 31, 199810%25579
Jan. 1, 1999–Mar. 31, 19999%23577
Apr. 1, 1999–Jun. 30, 199910%25579
Jul. 1, 1999–Sep. 30, 199910%25579
Oct. 1, 1999–Dec. 31, 199910%25579
Jan. 1, 2000–Mar. 31, 200010%73627
Apr. 1, 2000–Jun. 30, 200011%75629
Jul. 1, 2000–Sep. 30, 200011%75629
Oct. 1, 2000–Dec. 31, 200011%75629
Jan. 1, 2001–Mar. 31, 200111%27581

June 5, 2023 900 Bulletin No. 2023–23
Apr. 1, 2001–Jun. 30, 200110%25579
Jul. 1, 2001–Sep. 30, 20019%23577
Oct. 1, 2001–Dec. 31, 20019%23577
Jan. 1, 2002–Mar. 31, 20028%21575
Apr. 1, 2002–Sep. 30, 20028%21575
Jul. 1, 2002–Sep. 30, 20028%21575
Oct. 1, 2002–Dec. 31, 20028%21575
Jan. 1, 2003–Mar. 31, 20037%19573
Apr. 1, 2003–Jun. 30, 20037%19573
Jul. 1, 2003–Sep. 30, 20037%19573
Oct. 1, 2003–Dec. 31, 20036%17571
Jan. 1, 2004–Mar. 31, 20046%65619
Apr. 1, 2004–Jun. 30, 20047%67621
Jul. 1, 2004–Sep. 30, 20046%65619
Oct. 1, 2004–Dec. 31, 20047%67621
Jan. 1, 2005–Mar. 31, 20057%19573
Apr. 1, 2005–Jun. 30, 20058%21575
Jul. 1, 2005–Sep. 30, 20058%21575
Oct. 1, 2005–Dec. 31, 20059%23577
Jan. 1, 2006–Mar. 31, 20069%23577
Apr. 1, 2006–Jun. 30, 20069%23577
Jul. 1, 2006–Sep. 30, 200610%25579
Oct. 1, 2006–Dec. 31, 200610%25579
Jan. 1, 2007–Mar. 31, 200710%25579
Apr. 1, 2007–Jun. 30, 200710%25579
Jul. 1, 2007–Sep. 30, 200710%25579
Oct. 1, 2007–Dec. 31, 200710%25579
Jan. 1, 2008–Mar. 31, 20089%71625
Apr. 1, 2008–Sep. 30, 20088%69623
Jul. 1, 2008–Sep. 30, 20087%67621
Oct. 1, 2008–Dec. 31, 20088%69623
Jan. 1, 2009–Mar. 31, 20097%19573
Apr. 1, 2009–Jun. 30, 20096%17571
Jul. 1, 2009–Sep. 30, 20096%17571
Oct. 1, 2009–Dec. 31, 20096%17571
Jan. 1, 2010–Mar. 31, 20106%17571
Apr. 1, 2010–Jun. 30, 20106%17571
Jul. 1, 2010–Sep. 30, 20106%17571
Oct. 1, 2010–Dec. 31, 20106%17571
Jan. 1, 2011–Mar. 31, 20115%15569
Apr. 1, 2011–Jun. 30, 20116%17571
Jul. 1, 2011–Sep. 30, 20116%17571
Oct. 1, 2011–Dec. 31, 20115%15569
Jan. 1, 2012–Mar. 31, 20125%63617
Apr. 1, 2012–Jun. 30, 20125%63617

Bulletin No. 2023–23 901 June 5, 2023
Jul. 1, 2012–Sep. 30, 20125%63617
Oct. 1, 2012–Dec. 31, 20125%63617
Jan. 1, 2013–Mar. 31, 20135%15569
Apr. 1, 2013–Jun. 30, 20135%15569
Jul. 1, 2013–Sep. 30, 20135%15569
Oct. 1, 2013–Dec. 31, 20135%15569
Jan. 1, 2014–Mar. 31, 20145%15569
Apr. 1, 2014–Jun. 30, 20145%15569
Jul. 1, 2014–Sep. 30, 20145%15569
Oct. 1, 2014–Dec. 31, 20145%15569
Jan. 1, 2015–Mar. 31, 20155%15569
Apr. 1, 2015–Jun. 30, 20155%15569
Jul. 1, 2015–Sep. 30, 20155%15569
Oct. 1, 2015–Dec. 31, 20155%15569
Jan. 1, 2016–Mar. 31, 20165%63617
Apr. 1, 2016–Jun. 30, 20166%65619
Jul. 1, 2016–Sep. 30, 20166%65619
Oct. 1, 2016–Dec. 31, 20166%65619
Jan. 1, 2017–Mar. 31, 20176%17571
Apr. 1, 2017–Jun. 30, 20176%17571
Jul. 1, 2017–Sep. 30, 20176%17571
Oct. 1, 2017–Dec. 31, 20176%17571
Jan. 1, 2018–Mar. 31, 20186%17571
Apr. 1, 2018–Jun. 30, 20187%19573
Jul. 1, 2018–Sep. 30, 20187%19573
Oct. 1, 2018–Dec. 31, 20187%19573
Jan. 1, 2019–Mar. 31, 20198%21575
Apr. 1, 2019–Jun. 30, 20198%21575
Jul. 1, 2019–Sep. 30, 20197%19573
Oct. 1, 2019–Dec. 31, 20197%19573
Jan. 1, 2020–Mar. 31, 20207%67621
Apr. 1, 2020–Jun. 30, 20207%67621
Jul. 1, 2020–Sep. 30, 20205%63617
Oct. 1, 2020–Dec. 31, 20205%63617
Jan. 1, 2021–Mar. 31, 20215%15569
Apr. 1, 2021–Jun. 30, 20215%15569
Jul. 1, 2021–Sep. 30, 20215%15569
Oct. 1, 2021–Dec. 31, 20215%15569
Jan. 1, 2022–Mar. 31, 20225%15569
Apr. 1, 2022–Jun. 30, 20226%17571
Jul. 1, 2022–Sep. 30, 20227%19573
Oct. 1, 2022–Dec. 31, 20228%21575
Jan. 1, 2023–Mar. 31, 20239%23577
Apr. 1, 2023–Jun. 30, 20239%23577
Jul. 1, 2023–Sep. 30, 20239%23577

June 5, 2023 902 Bulletin No. 2023–23
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 – PRESENT
1995-1 C.B.
RATETABLEPG
Jan. 1, 1995–Mar. 31, 19956.5%18572
Apr. 1, 1995–Jun. 30, 19957.5%20574
Jul. 1, 1995–Sep. 30, 19956.5%18572
Oct. 1, 1995–Dec. 31, 19956.5%18572
Jan. 1, 1996–Mar. 31, 19966.5%66620
Apr. 1, 1996–Jun. 30, 19965.5%64618
Jul. 1, 1996–Sep. 30, 19966.5%66620
Oct. 1, 1996–Dec. 31, 19966.5%66620
Jan. 1, 1997–Mar. 31, 19976.5%18572
Apr. 1, 1997–Jun. 30, 19976.5%18572
Jul. 1, 1997–Sep. 30, 19976.5%18572
Oct. 1, 1997–Dec. 31, 19976.5%18572
Jan. 1, 1998–Mar. 31, 19986.5%18572
Apr. 1, 1998–Jun. 30, 19985.5%16570
Jul. 1, 1998–Sep. 30, 19985.5%16570
Oct. 1, 1998–Dec. 31, 19985.5%16570
Jan. 1, 1999–Mar. 31, 19994.5%14568
Apr. 1, 1999–Sep. 30, 19995.5%16570
Jul. 1, 1999–Sep. 30, 19995.5%16570
Oct. 1, 1999–Dec. 31, 19995.5%16570
Jan. 1, 2000–Mar. 31, 20005.5%64618
Apr. 1, 2000–Jun. 30, 20006.5%66620
Jul. 1, 2000–Sep. 30, 20006.5%66620
Oct. 1, 2000–Dec. 31, 20006.5%66620
Jan. 1, 2001–Mar. 31, 20016.5%18572
Apr. 1, 2001–Jun. 30, 20015.5%16570
Jul. 1, 2001–Sep. 30, 20014.5%14568
Oct. 1, 2001–Dec. 31, 20014.5%14568
Jan. 1, 2002–Mar. 31, 20023.5%12566
Apr. 1, 2002–Jun. 30, 20023.5%12566
Jul. 1, 2002–Sep. 30, 20023.5%12566
Oct. 1, 2002–Dec. 31, 20023.5%12566
Jan. 1, 2003–Mar. 31, 20032.5%10564
Apr. 1, 2003–Jun. 30, 20032.5%10564
Jul. 1, 2003–Sep. 30, 20032.5%10564
Oct. 1, 2003–Dec. 31, 20031.5%8562
Jan. 1, 2004–Mar. 31, 20041.5%56610
Apr. 1, 2004–Jun. 30, 20042.5%58612

Bulletin No. 2023–23 903 June 5, 2023
Jul. 1, 2004–Sep. 30, 20041.5%56610
Oct. 1, 2004–Dec. 31, 20042.5%58612
Jan. 1, 2005–Mar. 31, 20052.5%10564
Apr. 1, 2005–Jun. 30, 20053.5%12566
Jul. 1, 2005–Sep. 30, 20053.5%12566
Oct. 1, 2005–Dec. 31, 20054.5%14568
Jan. 1, 2006–Mar. 31, 20064.5%14568
Apr. 1, 2006–Jun. 30, 20064.5%14568
Jul. 1, 2006–Sep. 30, 20065.5%16570
Oct. 1, 2006–Dec. 31, 20065.5%16570
Jan. 1, 2007–Mar. 31, 20075.5%16570
Apr. 1, 2007–Jun. 30, 20075.5%16570
Jul. 1, 2007–Sep. 30, 20075.5%16570
Oct. 1, 2007–Dec. 31, 20075.5%16570
Jan. 1, 2008–Mar. 31, 20084.5%62616
Apr. 1, 2008–Jun. 30, 20083.5%60614
Jul. 1, 2008–Sep. 30, 20082.5%58612
Oct. 1, 2008–Dec. 31, 20083.5%60614
Jan. 1, 2009–Mar. 31, 20092.5%10564
Apr. 1, 2009–Jun. 30, 20091.5%8562
Jul. 1, 2009–Sep. 30, 20091.5%8562
Oct. 1, 2009–Dec. 31, 20091.5%8562
Jan. 1, 2010–Mar. 31, 20101.5%8562
Apr. 1, 2010–Jun. 30, 20101.5%8562
Jul. 1, 2010–Sep. 30, 20101.5%8562
Oct. 1, 2010–Dec. 31, 20101.5%8562
Jan. 1, 2011–Mar. 31, 20110.5%*
Apr. 1, 2011–Jun. 30, 20111.5%8562
Jul. 1, 2011–Sep. 30, 20111.5%8562
Oct. 1, 2011–Dec. 31, 20110.5%*
Jan. 1, 2012–Mar. 31, 20120.5%*
Apr. 1, 2012–Jun. 30, 20120.5%*
Jul. 1, 2012–Sep. 30, 20120.5%*
Oct. 1, 2012–Dec. 31, 20120.5%*
Jan. 1, 2013–Mar. 31, 20130.5%*
Apr. 1, 2013–Jun. 30, 20130.5%*
Jul. 1, 2013–Sep. 30, 20130.5%*
Oct. 1, 2013–Dec. 31, 20130.5%*
Jan. 1, 2014–Mar. 31, 20140.5%*
Apr. 1, 2014–Jun. 30, 20140.5%*
Jul. 1, 2014–Sep. 30, 20140.5%*
Oct. 1, 2014–Dec. 31, 20140.5%*

June 5, 2023 904 Bulletin No. 2023–23
Jan. 1, 2015–Mar. 31, 20150.5%*
Apr. 1, 2015–Jun. 30, 20150.5%*
Jul. 1, 2015–Sep. 30, 20150.5%*
Oct. 1, 2015–Dec. 31, 20150.5%*
Jan. 1, 2016–Mar. 31, 20160.5%*
Apr. 1, 2016–Jun. 30, 20161.5%56610
Jul. 1, 2016–Sep. 30, 20161.5%56610
Oct. 1, 2016–Dec. 31, 20161.5%56610
Jan. 1, 2017–Mar. 31, 20171.5%8562
Apr. 1, 2017–Jun. 30, 20171.5%8562
Jul. 1, 2017–Sep. 30, 20171.5%8562
Oct. 1, 2017–Dec. 31, 20171.5%8562
Jan. 1, 2018–Mar. 31, 20181.5%8562
Apr. 1, 2018–Jun. 30, 20182.5%10564
Jul. 1, 2018–Sep. 30, 20182.5%10564
Oct. 1, 2018–Dec. 31, 20182.5%10564
Jan. 1, 2019–Mar. 31, 20193.5%12566
Apr. 1, 2019–Jun. 30, 20193.5%12566
Jul. 1, 2019–Sep. 30, 20192.5%10564
Oct. 1, 2019–Dec. 31, 20192.5%10564
Jan. 1, 2020–Mar. 31, 20202.5%58612
Apr. 1, 2020–Jun. 30, 20202.5%58612
Jul. 1, 2020–Sep. 30, 20200.5%*
Oct. 1, 2020–Dec. 31, 20200.5%*
Jan. 1, 2021–Mar. 31, 20210.5%*
Apr. 1, 2021–Jun. 30, 20210.5%*
Jul. 1, 2021–Sep. 30, 20210.5%*
Oct. 1, 2021–Dec. 31, 20210.5%*
Jan. 1, 2022–Mar. 31, 20220.5%*
Apr. 1, 2022–Jun. 30, 20221.5%8562
Jul. 1, 2022–Sep. 30, 20222.5%10564
Oct. 1, 2022–Dec. 31, 20223.5%12566
Jan. 1, 2023–Mar. 31, 20234.5%14568
Apr. 1, 2023–Jun. 30, 20234.5%14568
Jul. 1, 2023–Sep. 30, 2023 4.5%14568
* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent published in Appendix A of
this Revenue Ruling.

Bulletin No. 2023–23 905 June 5, 2023
Part III
Reference Price for Section
45I Credit for Production of
Natural Gas from Marginal
Wells During Taxable Years
Beginning in Calendar Year
2022
Notice 2023-41
SECTION 1. PURPOSE
This notice provides the applicable
reference price for qualified natural gas
production from qualified marginal wells
during taxable years beginning in calen-
dar year 2022 for the purpose of deter-
mining the marginal well production
credit (MWC) under § 45I of the Internal
Revenue Code. The applicable reference
price for taxable years beginning in cal-
endar year 2022 is $3.43 per 1,000 cubic
feet (Mcf).
This notice also provides the credit
amount used for the purpose of determin-
ing the MWC for taxable years begin-
ning in calendar year 2022. The credit
amount is determined using the 2022
inflation adjustment factor of 1.3950 and
the applicable reference price of $3.43 per
Mcf. The credit amount for taxable years
beginning in calendar year 2022 is $0.00
per Mcf.
SECTION 2. BACKGROUND
Section 45I(a), as it relates to quali-
fied natural gas production, provides that,
for purposes of § 38, the MWC for any
taxable year is an amount equal to the
product of (1) the credit amount and (2)
the qualified natural gas production that is
attributable to the taxpayer.
Section 45I(c)(1) provides that “qual-
ified natural gas production” means
domestic natural gas produced from a
qualified marginal well. Section 45I(c)(3)
(A) provides that a qualified marginal well
is a domestic well (i) the production from
which during the taxable year is treated as
marginal production under § 613A(c)(6),
or (ii) which, during the taxable year (I)
has average production of not more than
25 barrel-of-oil equivalents per day, and
(II) produces water at a rate not less than
95 percent of total well effluent.
Section 613A(c)(6)(D) and (E) pro-
vide that “marginal production” means
domestic natural gas produced during
any taxable year from a property which
is a stripper well property for the calendar
year in which the taxable year begins. A
“stripper well property” is, with respect to
any calendar year, any property producing
not more than 15 barrel equivalents per
day, determined by dividing the average
daily production of domestic crude oil
and domestic natural gas from producing
wells on the property for such calendar
year by the number of such wells.
Section 45I(c)(2)(A) provides that
generally only the first 1,095 barrels or
barrel-of-oil equivalents (as defined in §
45K(d)(5)) produced during the taxable
year qualify for the MWC. This limitation
is proportionately reduced in the case of a
short taxable year or in the case of a well
that is not capable of production each day
of a taxable year. See § 45I(c)(2)(B). The
number of wells on which a taxpayer may
claim the MWC is not limited.
Section 45I(d)(2) provides that to claim
the credit a taxpayer must hold an operat-
ing interest in the qualified marginal well
producing the natural gas to which the
credit relates. Under § 45I(d)(1) if a well
is owned by more than one owner and the
natural gas production exceeds the lim-
itation under § 45I(c)(2), the qualifying
natural gas production attributable to the
taxpayer is determined on the basis of the
ratio which taxpayer’s revenue interest in
the production bears to the aggregate of the
revenue interests of all operating interest
owners in the production. Finally, § 45I(d)
(3) provides that the MWC is not allowable
if the taxpayer is also eligible to claim the §
45K nonconventional sources credit for the
taxable year, unless the taxpayer elects not
to claim the credit under § 45K for the well.
For purposes of § 45I(a)(1), the credit
amount is 50 cents (adjusted for inflation)
per Mcf of qualified natural gas produc-
tion (tentative credit amount). See § 45I(b)
(1)(B) and (b)(2)(B).
Section 45I(b)(2)(A) and (B) provide
that the tentative credit amount (adjusted
for inflation) is reduced (but not below
zero) to the extent that the applicable
reference price exceeds $1.67 (adjusted
for inflation). More specifically, § 45I(b)
(2)(A) provides that the tentative credit
amount (adjusted for inflation) is reduced
by an amount which bears the same ratio
to the tentative credit amount (adjusted
for inflation) as the excess (if any) of
the applicable reference price over $1.67
(adjusted for inflation), bears to $0.33
(adjusted for inflation). As a result, the
MWC is not available if the applicable
reference price for qualified natural gas
production is $2.00 (adjusted for inflation)
or more.
Section 45I(b)(2)(A) also provides that
the applicable reference price for a taxable
year is the reference price for the calendar
year preceding the calendar year in which
the taxable year begins. Section 45I(b)(2)
(C)(ii) provides that the term “reference
price” means, with respect to any calendar
year, in the case of qualified natural gas
production, the Secretary’s estimate of the
annual average wellhead price per Mcf for
all domestic natural gas.
Section 45I(b)(2)(B) provides that in
the case of any taxable year beginning in a
calendar year after 2005, each of the dollar
amounts contained in § 45I(b)(2)(A) will
be increased to an amount equal to such
dollar amount multiplied by the inflation
adjustment factor for such calendar year
(determined under § 43(b)(3)(B) by sub-
stituting “2004” for “1990”).
SECTION 3. INFLATION
ADJUSTMENT FACTOR AND
REFERENCE PRICE
.1 Inflation Adjustment. The inflation
adjustment factor under § 45I(b)(2)(B) for
calendar year 2022 is 1.3950.
.2 Reference Price. The Secretary’s
estimate of the calendar year 2021 annual
average wellhead price per Mcf for all
domestic natural gas under § 45I(b)(2)
(C)(ii) was calculated by applying the
Producer Price Index commodity index
for “Natural Gas from the Wellhead”

June 5, 2023 906 Bulletin No. 2023–23
(WPU053101051)
1
published by the
Bureau of Labor Statistics (BLS) as part
of its Producer Price Index program, to
the 2020 annual average wellhead price
($1.52) published in Notice 2022-18,
2022-18 I.R.B. 1048. The annual Producer
Price Index commodity index for natu-
ral gas published by the BLS was 47.4 in
2020 and 106.8 in 2021, which implies a
ratio of 2021 to 2020 average wellhead
prices of 2.253 (106.8/47.4). Therefore,
the Secretary’s estimate of the calendar
year 2021 annual average wellhead price
per Mcf for all domestic natural gas is
$3.43 per Mcf (2.253 x $1.52 per Mcf).
For years after 2021, the Secretary
intends to continue calculating the refer-
ence price by application of the Producer
Price Index commodity index for “Natural
Gas from the Wellhead” (WPU053101051)
published by the BLS to the previous year’s
reference price.
SECTION 4. CALCULATION OF
CREDIT AMOUNT
Under § 45I(b)(1)(B) and (2)(B), the
tentative credit amount used to calculate
the MWC for taxable years beginning
in calendar year 2022 is $0.70 per Mcf
($0.50 x 1.3950 inflation adjustment fac-
tor). Pursuant to the reduction specified in
§ 45I(b)(2)(A), the tentative credit amount
for taxable years beginning in calendar
year 2022 is reduced to zero.
Specifically, pursuant § 45I(b)(2)(A), the
tentative credit amount is reduced (but not
below zero) by an amount (the Reduction
Amount) which bears the same ratio to such
amount as (i) the excess (if any) of the appli-
cable reference price over $2.33 ($1.67 x
1.3950 inflation adjustment factor), bears to
(ii) $0.46 ($0.33 x 1.3950 inflation adjust-
ment factor). The Reduction Amount (as
adjusted for inflation) is computed as follows:
ReductionAmount
TentativeCreditAmount
ApplicableReferen

=
ccePrice
Reduction Amount
$
$$
$
−
−
=
$.
$.
.
..
.
233
046
070
343233
046
The Reduction Amount is $1.67 ($1.10
÷ $0.46 x $0.70) and it exceeds the tenta-
tive credit amount ($0.70). Therefore, the
credit amount used to calculate the MWC
for taxable years beginning in calendar
year 2022 is $0.00 per Mcf.
SECTION 5. EFFECTIVE DATE
This notice is effective for qualified
natural gas production during taxable
years beginning in calendar year 2022.
SECTION 6. DRAFTING AND
CONTACT INFORMATION
The principal author of this notice is
Boris Kukso of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries). For further information
regarding this notice contact Mr. Kukso at
(202) 317-6853 (not a toll-free number).
1
https://data.bls.gov/cgi-bin/srgate. The BLS publishes indexes and not actual or average prices.

Bulletin No. 2023–23 907 June 5, 2023
Part IV
Notice of Proposed
Rulemaking
Information Reporting
and Transfer for Valuable
Consideration Rules for
Section 1035 Exchanges of
Life Insurance and Certain
Other Life Insurance
Contract Transactions
REG-108054-21
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations providing guid-
ance on the application of the transfer for
valuable consideration rules and associ-
ated information reporting requirements
for reportable policy sales of interests
in life insurance contracts to exchanges
of life insurance contracts qualifying for
nonrecognition of gain or loss, as well
as to certain acquisitions of interests in
life insurance contracts in transactions
that qualify as corporate reorganizations.
The proposed regulations affect parties
involved in these life insurance contract
transactions, including with respect to
payments of reportable death benefits.
This document also invites comments on
these proposed regulations.
DATES: Written or electronic comments
and requests for a public hearing must be
received by July 10, 2023. Requests for a
public hearing must be submitted as pre-
scribed in the “Comments and Requests
for a Public Hearing” section.
ADDRESSES: Commenters are strongly
encouraged to submit public comments
electronically. Submit electronic submis-
sions via the Federal eRulemaking Portal
at www.regulations.gov (indicate IRS
and REG-108054-21) by following the
online instructions for submitting com-
ments. Once submitted to the Federal
eRulemaking Portal, comments cannot be
edited or withdrawn. The Department of
the Treasury (Treasury Department) and
the IRS will publish for public availabil-
ity any comments submitted to the IRS’s
public docket. Send paper submissions
to: CC:PA:LPD:PR (REG-108054-21),
Room 5203, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044.
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Kathryn M. Sneade, (202)
317-6995 (not a toll-free number); con-
cerning submissions of comments or
requests for a public hearing, Vivian
Hayes, (202) 317-6902 (not a toll-free
number) or by email to publichearings@
irs.gov (preferred).
SUPPLEMENTARY INFORMATION:
Background
This document contains pro-
posed amendments to the Income Tax
Regulations (26 CFR part 1) under sec-
tions 101 and 6050Y of the Internal
Revenue Code (Code). The proposed reg-
ulations under sections 101 and 6050Y
(proposed regulations) would provide
guidance on the application of the rules
for determining the amount of death ben-
efits excluded from gross income follow-
ing reportable policy sales of interests in
life insurance contracts under section 101
and the associated information reporting
requirements for reportable policy sales
under section 6050Y to the exchange of
a life insurance contract for another life
insurance contract qualifying for non-
recognition of gain or loss under section
1035 (section 1035 exchange), as well as
to certain acquisitions of interests in life
insurance contracts in transactions that
qualify as reorganizations under section
368(a) (reorganizations). The proposed
regulations would amend final regulations
under sections 101 and 6050Y (T.D. 9879)
published in the Federal Register (84 FR
58460) on October 31, 2019, as corrected
(84 FR 68042) on December 13, 2019
(final regulations). Following the publica-
tion of the final regulations in the Federal
Register, the Treasury Department and
the IRS received letters relating to the
application of sections 101 and 6050Y
to section 1035 exchanges and reorgani-
zations. The proposed regulations would
modify the final regulations to address the
issues raised in these letters.
Development of the Final Regulations
The Treasury Department and the IRS
published the final regulations to imple-
ment legislative changes to the Code
made by sections 13520 and 13522 of
Public Law 115-97, 131 Stat. 2054, 2148,
2151 (2017), commonly known as the Tax
Cuts and Jobs Act (TCJA).
Section 13522 of the TCJA amended
section 101 by adding new section 101(a)
(3) to the Code, which defines the term
“reportable policy sale” and provides
rules for determining the amount of death
benefits excluded from gross income fol-
lowing a reportable policy sale.
1
The final
regulations under section 101 provide
definitions applicable under sections 101
and 6050Y and guidance for determining
the amount of death benefits excluded
from gross income. For example, §1.101-
1(c)(1) of the final regulations defines
“reportable policy sale” to mean, subject
1
Generally, under section 101(a)(1), gross income does not include amounts received (whether in a single sum or otherwise) under a life insurance contract if such amounts are paid by reason
of the death of the insured. However, the first sentence of section 101(a)(2) (the transfer for value rule) provides that, in the case of a transfer for a valuable consideration, by assignment or
otherwise, of a life insurance contract or any interest therein, the amount excluded from gross income by section 101(a)(1) cannot exceed an amount equal to the sum of the actual value of such
consideration and the premiums and other amounts subsequently paid by the transferee. The second sentence of section 101(a)(2) provides that the transfer for value rule does not apply in the
case of transfers described in section 101(a)(2)(A) or (B). Section 101(a)(2)(A) (the carryover basis exception) applies if the contract or interest therein has a basis for determining gain or loss
in the hands of a transferee determined in whole or in part by reference to such basis of such contract or interest therein in the hands of the transferor. Section 101(a)(2)(B) applies if the transfer
is to the insured, to a partner of the insured, to a partnership in which the insured is a partner, or to a corporation in which the insured is a shareholder or officer. However, section 101(a)(3)(A)
provides that the exceptions in the second sentence of section 101(a)(2) do not apply in the case of a transfer of a life insurance contract, or any interest therein, that is a reportable policy sale.

June 5, 2023 908 Bulletin No. 2023–23
to certain exceptions, any direct or indi-
rect acquisition of an interest in a life
insurance contract if the acquirer has, at
the time of the acquisition, no substantial
family, business, or financial relationship
with the insured apart from the acquirer’s
interest in the life insurance contract.
Section 13520 of the TCJA added sec-
tion 6050Y to chapter 61 (Information and
Returns) in subtitle F of the Code. Section
6050Y(a) requires a person who acquires
a life insurance contract or any interest in
a life insurance contract in a reportable
policy sale to report certain information
about payments made in the sale. Section
6050Y(b) requires issuers of life insur-
ance contracts to report certain informa-
tion upon notice of a reportable policy sale
or a transfer of a life insurance contract
to a foreign person. Section 6050Y(c)
requires a payor of reportable death ben-
efits (defined by section 6050Y(d)(4) as
amounts paid by reason of the death of the
insured under a life insurance contract that
has been transferred in a reportable policy
sale) to report certain information about
such payments. Section 6050Y provides
that each of the returns required by section
6050Y is to be made “at such time and in
such manner as the Secretary shall pre-
scribe.”
2
The final regulations under sec-
tion 6050Y implement section 6050Y by
specifying the manner in which and time
at which the information reporting obliga-
tions imposed by section 6050Y must be
satisfied. The final regulations also pro-
vide definitions and rules that govern the
application of the information reporting
obligations.
The final regulations were adopted
after consideration of public comments
received on proposed regulations under
sections 101 and 6050Y (REG-103083-
18) published in the Federal Register
(84 FR 11009) on March 25, 2019 (2019
proposed regulations), and a public hear-
ing held on June 5, 2019. Additionally, the
Treasury Department and the IRS received
comments in response to Notice 2018-41,
2018-20 I.R.B. 584, which described the
regulations the Treasury Department and
the IRS expected to propose under sec-
tions 101 and 6050Y, and considered these
comments in developing the rules in the
2019 proposed regulations.
Development of the Section 1035
Exchange Provisions of the Final
Regulations
Prior to amendment in 2019, the regu-
lations under section 101 did not explic-
itly address section 1035 exchanges.
Comments received on Notice 2018-41
suggested that the person to whom a life
insurance contract is issued (that is, the
original policyholder) should not be con-
sidered an “acquirer” for purposes of sec-
tion 6050Y(a), which imposes reporting
obligations on any person who acquires
a life insurance contract or any interest
in a life insurance contract in a report-
able policy sale. See 84 FR 11009, 11016.
In response, §1.101-1(e)(2) of the 2019
proposed regulations clarified that the
issuance of a life insurance contract to a
policyholder, other than the issuance of a
policy in an exchange pursuant to section
1035, is not a transfer of an interest in a
life insurance contract.
The preamble to the 2019 proposed
regulations requested comments on
whether the regulations should include
additional provisions regarding the treat-
ment of section 1035 exchanges of life
insurance contracts. See 84 FR 11009,
11019. As described in the preamble to the
final regulations, one commenter on the
2019 proposed regulations recommended
that no additional provisions be added
to the regulations for this circumstance,
stating that the acquirer of a life insur-
ance contract in a reportable policy sale
would be unlikely to meet the state law
requirements for an insurable interest in
the insured and, consequently, would not
be able to make a section 1035 exchange.
See 84 FR 58460, 58465. Another com-
menter recommended that the statement in
§1.101-1(e)(2) of the 2019 proposed regu-
lations regarding section 1035 exchanges
be deleted or amended to eliminate any
suggestion that such transactions, by
themselves, can be reportable policy sales.
The commenter acknowledged that in a
section 1035 exchange, the new carrier
acquires an interest in the old policy, but
advocated against treating that acquisition
as a reportable policy sale.
As explained in the preamble to
the final regulations, the reference in
§1.101-1(e)(2) to section 1035 exchanges
was not intended to imply that the transfer
of a policy to an insurance company in a
section 1035 exchange would be a report-
able policy sale. See 84 FR 58460, 58465.
Rather, the concern prompting the refer-
ence to section 1035 exchanges related
to the possibility that a policy transferred
in a reportable policy sale subsequently
could be exchanged for a new policy in
an exchange pursuant to section 1035 and
that, absent the reference in §1.101-1(e)
(2), the death benefits paid under the new
policy might not be reported under section
6050Y(c).
Section 1.101-1(e)(2) of the 2019 pro-
posed regulations was adopted as proposed
in the final regulations, but in response to
the comments received on section 1035
exchanges, §1.101-1(c)(2)(iv) of the final
regulations provides that the acquisition
of a life insurance contract by an insur-
ance company in an exchange pursuant
to section 1035 is not a reportable pol-
icy sale. Additionally, §1.101-1(c)(2)(v)
of the final regulations provides that the
acquisition of a life insurance contract by
a policyholder in an exchange pursuant to
section 1035 is not a reportable policy sale
if the policyholder has a substantial fam-
ily, business, or financial relationship with
the insured, apart from its interest in the
life insurance contract, at the time of the
exchange. Based on a comment received
on the 2019 proposed regulations, a sit-
uation in which the policyholder making
a section 1035 exchange does not have a
substantial family, business, or financial
relationship with the insured should rarely
arise due to state law insurable interest
requirements. Should this situation arise,
however, the final regulations provide cer-
tain exceptions to the reporting require-
ments that generally apply to reportable
policy sales. See §1.6050Y-2(f)(3) of the
final regulations (providing that, with
respect to the issuance of a life insurance
contract in a section 1035 exchange, the
acquirer is not required to file the informa-
tion return required by section 6050Y(a)
(1) and §1.6050Y-2(a) of the final regula-
tions); §1.6050Y-3(f)(3) of the final regu-
lations (providing that the issuer of a new
life insurance contract in a section 1035
exchange is not required to file a return or
2
Section 7701(a)(11)(B) provides that when used in the Code, the term “Secretary” means the Secretary of the Treasury or her delegate.

Bulletin No. 2023–23 909 June 5, 2023
furnish a statement to the seller under sec-
tion 6050Y(b) and §1.6050Y-3 of the final
regulations). Additionally, the final reg-
ulations provide certain rules applicable
to section 1035 exchanges to clarify the
reporting required with respect to section
1035 exchanges that are reportable policy
sales. See §1.6050Y-1(a)(8)(ii) (providing
that, in the case of the issuance of a life
insurance contract to a policyholder in an
exchange pursuant to section 1035, the
issuer of the new contract is the 6050Y(a)
issuer with respect to whom the acquirer
has reporting obligations under section
6050Y(a) and §1.6050Y-2 of the final
regulations).
Letters Received on the Section 1035
Exchange Provisions of the Final
Regulations
Following the publication of the final
regulations in the Federal Register,
the Treasury Department and the IRS
received letters relating to the application
of sections 101 and 6050Y to section 1035
exchanges under the final regulations.
One letter indicated that, in at least
some cases, the final regulations under
section 101 regarding reportable pol-
icy sales appear to treat a section 1035
exchange as a transfer for value that can
cause the death benefits to become taxable.
The letter said that this treatment appears
to arise even when neither the contract
given in the exchange nor any predeces-
sor contract has been involved in a report-
able policy sale. The author of the letter
requested guidance that the issuance of a
life insurance contract in a section 1035
exchange is not a transfer of an interest
in the contract to the owner for purposes
of the transfer for value rule and provided
support for the position that treating a sec-
tion 1035 exchange as a transfer for value
is inconsistent with the relevant statutes,
congressional intent, sound tax policy, and
long-standing interpretations of the law.
The author of another letter took a con-
trary position, stating that a section 1035
exchange has always (before the TCJA
was enacted, as well as after) constituted a
transfer of a life insurance contract for pur-
poses of section 101(a)(2) that qualifies for
the exception set forth in section 101(a)(2)
(A) to the transfer for value rule for con-
tracts held with a transferred basis, com-
monly referred to as the “carryover basis”
exception. This author advocated against
guidance concluding that the issuance of
a life insurance contract in a section 1035
exchange is not a transfer of an interest in
the contract to the owner for purposes of
the transfer for value rule, suggesting that
to do so would be to adopt a policy choice
that was specifically rejected by Congress
with the enactment of section 101(j).
3

The author remarked that section 101(j)
was enacted in response to concerns that
despite state insurable interest rules, com-
panies were acquiring insurance on per-
sons whose relationship with the company
was too attenuated and were doing so
without the consent (or even knowledge)
of such persons.
Development of Exceptions Related to
Ordinary Course Trade or Business
Acquisitions in the Final Regulations
Several commenters on Notice 2018-
41 suggested that acquisitions of life
insurance contracts, or interests therein,
in ordinary course business transactions
in which one trade or business acquires
another trade or business that owns life
insurance on the lives of former employ-
ees or directors should not be reportable
policy sales. The 2019 proposed regu-
lations included provisions that exclude
certain of these transactions from the defi-
nition of reportable policy sales. Public
comments remarked favorably on these
provisions, which were adopted by the
final regulations. See §1.101-1(d)(2) of the
final regulations (defining the term “sub-
stantial business relationship” to include
the relationship between an insured and an
acquirer in certain circumstances involv-
ing the acquirer’s acquisition of an active
trade or business with respect to which the
insured is an employee within the meaning
of section 101(j)(5)
4
or was a director,
highly compensated employee, or highly
compensated individual); §1.101-1(d)(4)
(i) of the final regulations (providing a
special rule for indirect acquisitions that
deems the acquirer of an interest in a life
insurance contract to have a substantial
business or financial relationship with the
insured if the direct holder of the interest
in the life insurance contract has such a
relationship); and §1.101-1(e)(3)(ii) of
the final regulations (defining the term
“indirect acquisition of an interest in a life
insurance contract” to exclude an acqui-
sition through ownership of stock in a C
corporation provided that no more than
50 percent of the gross value of the assets
of the C corporation consists of life insur-
ance contracts).
As described in the preamble to the
final regulations, one commenter on the
2019 proposed regulations remarked that
§1.101-1(e)(3)(ii) results in the disparate
treatment of policies transferred directly
in asset reorganizations and indirectly in
stock reorganizations. See 84 FR 58460,
58466-58468. That is, with respect to pol-
icies held by a C corporation, not more
than 50 percent of the gross value of the
assets of which consists of life insurance
contracts, an indirect acquisition of the
policies, such as through a stock reorgani-
zation under section 368(a)(1)(B), would
not result in a reportable policy sale, but
a direct acquisition of the policies, such
as through an asset reorganization under
section 368(a)(1)(A), could result in a
reportable policy sale. The commenter
asserted that this disparate treatment is
inappropriate and not warranted as a mat-
ter of good tax policy and requested that
the 2019 proposed regulations be revised
to provide that any transfer of an inter-
est in a life insurance contract as part of
a reorganization of a C corporation con-
ducted in the ordinary course of business
is eligible for an exception to being treated
as a reportable policy sale under section
101(a)(3)(B), regardless of whether the
target C corporation survives the reorga-
nization transaction unless, immediately
3
Section 101(j) generally provides that in the case of an employer-owned life insurance contract, the amount of death benefits excluded from gross income under section 101(a) is limited,
unless certain notice and consent requirements are met and either an exception based on the insured’s status applies (because the insured was an employee in the twelve months preceding
death or the insured was, at the time the life insurance contract was issued, a director, highly compensated employee, or highly compensated individual) or an exception for amounts paid to
the insured’s heirs applies.
4
Section 101(j)(5) defines the term “employee” to include an officer, director, and highly compensated employee (within the meaning of section 414(q)).

June 5, 2023 910 Bulletin No. 2023–23
prior to the acquisition, more than 50 per-
cent of the gross value of the assets of the
C corporation consists of life insurance
contracts.
The commenter acknowledged that the
2019 proposed regulations provide certain
exceptions that could apply to mergers
qualifying as reorganizations in which
the target goes out of existence and the
surviving corporation continues to hold
the life insurance contract, but asserted
that having to determine in these types of
mergers whether a particular exception
applies on a contract-by-contract basis is
unduly complex and a trap for the unwary.
The commenter further asserted that this
burdensome exercise does not serve the
purpose of the change in the statute.
The commenter’s recommendation
was not adopted in the final regulations
for reasons further described in the pre-
amble to the final regulations. Briefly, the
final regulations preserve the different
results for stock and asset reorganizations
because the Treasury Department and the
IRS concluded that significant differences
between the two types of reorganization
justify different treatment for purposes of
sections 101 and 6050Y. For instance, an
acquirer of an interest in an entity may
have limited ability to determine what
types of assets an entity owns, or to obtain
from the entity information necessary to
report on the entity’s assets. Further, the
Treasury Department and the IRS had not
identified any clear policy reason why
the complete exclusion of death benefits
from policies held by a corporation should
carry over when ownership of the insur-
ance policy is transferred but a substantial
business or financial relationship does not
exist between the acquirer and insured.
Regarding the commenter’s remark on the
burden of a case-by-case review of policies
in certain types of transactions, the pre-
amble to the final regulations noted that,
in asset reorganizations, it would in any
case be necessary to review the life insur-
ance contracts directly acquired on a con-
tract-by-contract basis in order to update
insurance contract ownership and benefi-
ciary information with the relevant insur-
ance company.
Letter Received on Exceptions Related
to Ordinary Course Trade or Business
Acquisitions in the Final Regulations
Following the publication of the final
regulations in the Federal Register, the
Treasury Department and the IRS received
a letter relating to the disparate treatment
of different types of ordinary course trade
or business acquisitions under the final
regulations.
The author noted that, since the issuance
of the final regulations, the life insurance
industry has seen a number of circumstances
in which transactions that are wholly unre-
lated to the transfer of life insurance are
nevertheless subject to negative outcomes
under the reportable policy sale rules as a
result of the transactions’ legal form, even
though transactions with identical or nearly
identical economic substance but a different
legal form would be treated more favorably.
The author noted that the ordinary course
acquisitive transactions of concern do not
in any way turn on tax outcomes pertaining
to the meagre amounts of life insurance that
are commonly at issue, and asserted that
there are a number of legal, economic, and
business practice reasons why it is highly
unlikely that these same transactions can
simply be restructured to meet the form-
driven rules of the final regulations. The
author suggested the addition of an excep-
tion from the reportable policy sale rules
for acquisitive transactions involving enti-
ties that own a de minimis amount of life
insurance (for example, as a proportion of
the total value of the transaction). More
specifically, the author proposed that the
Treasury Department and the IRS consider
a further exception for transactions in which
the amount of life insurance acquired as a
result of the acquisitive transaction (and
any related acquisitions) is five percent or
less of the value of the stock, assets, or both
acquired.
Explanation of Provisions
Section 1035 Exchanges
As stated in the preamble to the final
regulations, the concern prompting the ref-
erences to section 1035 exchanges in the
2019 proposed regulations and the final
regulations related to the possibility that
a policy transferred in a reportable pol-
icy sale subsequently could be exchanged
for a new policy in an exchange pursuant
to section 1035 and that the death bene-
fits paid under the new policy might not
be reported under section 6050Y(c). See
84 FR 58460, 58465. The section 1035
exchange provisions were not intended to
change the treatment under section 101 of
the policyholder’s new contract if the pol-
icyholder’s old contract was never trans-
ferred in a reportable policy sale.
However, the Treasury Department
and the IRS have determined that such a
change was inadvertently effected by the
final regulations. Prior to the issuance of
the final regulations, the transfer for value
rule of section 101(a)(2) did not apply as
the result of a section 1035 exchange of a
life insurance contract by the original pol-
icyholder of the contract. However, under
§1.101-1(e)(2) of the final regulations, the
issuance of a new policy in a section 1035
exchange is a transfer of an interest in a
life insurance contract. Because the new
policy is issued in exchange for an old
policy, the exchange is a transfer for valu-
able consideration under §1.101-1(f)(5) of
the final regulations. Therefore, the new
policy is subject to the transfer for value
rule of section 101(a)(2), unless one of
the exceptions in section 101(a)(2)(A) and
(B) applies. For either exception to apply,
there must be a substantial business, fam-
ily, or financial relationship between the
insured and the acquirer of the new pol-
icy. The Treasury Department and the
IRS have determined that the carryover
basis exception of section 101(a)(2)(A)
would not apply in this case.
5
Therefore,
the application of the transfer for value
5
The Code recognizes two categories of substituted basis property: transferred basis property and exchanged basis property. See section 7701(a)(42). Property has a “transferred basis” for
Federal tax purposes when the same property is transferred from one person to another but keeps the same basis. See section 7701(a)(43). Property has an “exchanged basis” for Federal
tax purposes when a person’s basis in new property is determined by reference to other property held by that same person. See section 7701(a)(44). The section 101(a)(2) “carryover basis”
exception applies to a transfer if the transferred life insurance contract or interest therein has a basis for determining gain or loss in the hands of a transferee determined in whole or in part by
reference to such basis of such contract or interest therein in the hands of the transferor. That is, the exception applies if the contract is transferred basis property. However, the basis of a new
policy issued in a section 1035 exchange to the same taxpayer is the same as the basis of the old policy held by that taxpayer, decreased in the amount of any money received by the taxpayer
and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange. See sections 1035(d)(2) and 1031(d). The new policy is thus
exchanged basis property, not transferred basis property. It is therefore ineligible for the carryover basis exception of section 101(a)(2)(A).

Bulletin No. 2023–23 911 June 5, 2023
rule would generally limit the amount of
death benefits excludable under section
101(a)(1), even in the absence of a report-
able policy sale, unless one of the section
101(a)(2)(B) exceptions applies (that is,
the transfer is to the insured, to a partner
of the insured, to a partnership in which
the insured is a partner, or to a corpora-
tion in which the insured is a shareholder
or officer). The Treasury Department and
the IRS have determined that this result
is inconsistent with the prior treatment
of new policies issued in section 1035
exchanges.
Accordingly, the proposed regulations
are intended to correct the unintended
change effected by the final regulations
to the treatment under section 101 of a
life insurance contract issued to a pol-
icyholder in a section 1035 exchange,
while continuing to address the concern
that the reporting of death benefits paid
under section 6050Y(c) could be avoided
by exchanging a policy transferred in a
reportable policy sale for a new policy in
a section 1035 exchange, as well as the
concern that a policyholder could attempt
to avoid the limitation on the excludabil-
ity of death benefits resulting from the
application of the transfer for value rule
through a section 1035 exchange. The
proposed regulations would accomplish
these objectives by revising the final regu-
lations in four ways.
1. Modify definition of a transfer of an
interest in a life insurance contract
First, proposed §1.101-1(e)(2) would
revise the definition of a transfer of an
interest in a life insurance contract in
§1.101-1(e)(2) of the final regulations
to exclude the issuance of a life insur-
ance contract to a policyholder, without
qualification. As such, any issuance of a
life insurance contract to a policyholder,
including in a section 1035 exchange, is
not a transfer of an interest in a life insur-
ance contract and therefore cannot be a
reportable policy sale under §1.101-1(c)
(1) of the final regulations. The Treasury
Department and the IRS do not view this
position as inconsistent with the purpose
of section 101(j). See Public Law 109-
280, §863(d), 120 Stat. 780, 1024 (2006)
(providing that section 101(j) generally
applies to life insurance contracts issued
after August 17, 2006, “except for a con-
tract issued after such date pursuant to an
exchange described in section 1035...for
a contract issued on or prior to that date”);
Notice 2009-48, 2009-1 C.B. 1085 (pro-
viding that further notice and consent is
not required by section 101(j) with regard
to a contract received in a section 1035
exchange for an employer-owned life
insurance contract issued after August 17,
2006, for which the notice and consent
requirements were previously satisfied
if either (1) the existing consent remains
valid, or (2) the exchange does not result
in a material change in the death benefit
or other material change in the contract).
The proposed regulations make con-
forming changes to remove the exception
in §1.101-1(c)(2)(v) of the final regula-
tions (providing that the acquisition of a
life insurance contract by a policyholder
in a section 1035 exchange is not a report-
able policy sale if the policyholder has a
substantial family, business, or financial
relationship with the insured, apart from
its interest in the life insurance contract,
at the time of the exchange); to remove
§§1.6050Y-2(f)(3) and 1.6050Y-3(f)(3)
of the final regulations (providing cer-
tain reporting requirement exceptions
related to section 1035 exchanges that
are no longer necessary); and to remove
§1.6050Y-1(a)(8)(ii) of the final regula-
tions (providing a definitional rule related
to section 1035 exchanges that is no lon-
ger necessary).
2. New rule addressing section 1035
exchanges
Second, proposed §1.101-1(b)(2)(iv)
provides a new rule that would apply to the
exchange of an interest in a life insurance
contract (old interest) in a section 1035
exchange for an interest in a newly issued
life insurance contract (new interest) and
provides guidance on how to determine the
amount of the proceeds attributable to the
new interest that is excludable from gross
income under section 101(a), provided
the new interest is not subsequently trans-
ferred or exchanged. If the new interest is
subsequently transferred or exchanged,
the amount excludable from gross income
under section 101(a) would be determined
under the rule in §1.101-1(b) applicable to
the type of transfer or exchange involved.
The limitation (or lack of any limitation)
on the amount of the proceeds attribut-
able to the old interest that is excludable
from gross income applies under proposed
§1.101-1(b)(2)(iv) to the new interest for
which it is exchanged, just as the basis of
the old interest applies to the new interest.
See sections 1031(d) and 1035(d)(2) (pro-
viding that a contract acquired in a section
1035 exchange has the same basis as the
contract for which it was exchanged).
The IRS has previously treated certain
attributes of contracts exchanged in sec-
tion 1035 exchanges as applying to the
new contracts acquired. See, e.g., Rev.
Rul. 92-95, 1992-2 C.B. 43 (for purposes
of section 72(q)(2)(I) and 72(u)(4), the
“date of purchase” of an annuity contract
acquired in a section 1035 exchange for
another annuity contract is the date of
purchase of the annuity contract that was
exchanged for the new contract). See also
section 7702A(a)(2) (defining a modified
endowment contract to include any con-
tract exchanged for a contract that is a
modified endowment contract under sec-
tion 7702A(a)(1)).
Proposed §1.101-1(b)(2)(iv) ensures
that the acquirer of an interest in a life
insurance contract in a reportable policy
sale cannot avoid any limit imposed by
section 101(a)(2) and (a)(3) on the amount
of the proceeds attributable to the interest
that is excludable from gross income under
section 101(a)(1) by simply exchanging
the interest for a new life insurance con-
tract. Under proposed §1.101-1(b)(2)(iv)
(A), if the entire amount of the proceeds
attributable to the old interest would have
been excludable from gross income under
section 101(a) at the time of the section
1035 exchange, the entire amount of the
proceeds attributable to the new interest
is excludable from gross income. Under
proposed §1.101-1(b)(2)(iv)(B), if less
than the entire amount of the proceeds
attributable to the old interest would have
been excludable from gross income under
section 101(a) at the time of the section
1035 exchange, the amount of the pro-
ceeds attributable to the new interest that
is excludable from gross income is limited
to the sum of the amount of the proceeds
attributable to the old interest that would
have been excludable at the time of the
section 1035 exchange, and the premiums
and other amounts subsequently paid with

June 5, 2023 912 Bulletin No. 2023–23
respect to the new interest by the policy-
holder. Proposed §1.101-1(b)(2)(iv)(B)
also provides that, when determining the
premiums and other amounts subsequently
paid by the policyholder with respect to
the new interest, the amounts paid by the
policyholder are reduced, but not below
zero, by amounts received by the policy-
holder under the new life insurance con-
tract that are not received as an annuity, to
the extent excludable from gross income
under section 72(e). The proposed regu-
lations also make conforming changes to
§1.101-1(a)(1) of the final regulations and
the headings of §1.101-1(b) and (b)(2) of
the final regulations to reflect the addition
of proposed §1.101-1(b)(2)(iv). The pro-
posed regulations also add two examples
to illustrate the application of the rules set
forth in proposed §1.101-1(b)(2)(iv). See
proposed §1.101-1(g)(17) and (18).
3. Modification to definition of reportable
policy sale
Third, the proposed regulations would
modify the definition of “reportable policy
sale” to address section 1035 exchanges.
Specifically, proposed §1.101-1(c)(3)
addresses situations in which an old
interest is exchanged in a section 1035
exchange for a new interest, and the old
interest was previously transferred for
valuable consideration in a reportable
policy sale or is treated, under proposed
§1.101-1(c)(3), as an interest in a life
insurance contract that was previously
transferred for valuable consideration in a
reportable policy sale. In such cases, the
new interest is treated, for purposes of
§1.101-1, as an interest in a life insurance
contract that was previously transferred
for valuable consideration in a reportable
policy sale.
Under the proposed rule, the old inter-
est’s attribute of having been previously
transferred for valuable consideration
in a reportable policy sale applies to the
new interest acquired in a section 1035
exchange. Whether or not an interest in a
life insurance policy was previously trans-
ferred in a reportable policy sale is rele-
vant for the purpose of determining the
applicability of certain provisions in the
final regulations. See, e.g., §1.101-1(b)(1)
(ii)(B)(1) of the final regulations (applies
only if the interest was not previously
transferred for valuable consideration
in a reportable policy sale); §1.101-1(b)
(1)(ii)(B)(2) and (3) of the final regula-
tions (apply if the interest was previously
transferred for valuable consideration in a
reportable policy sale); §1.101-1(b)(2)(i)
of the final regulations (includes a special
rule for interests that have not previously
been transferred for value in a reportable
policy sale). The Treasury Department and
the IRS have previously treated (and con-
tinue to treat) other attributes of contracts
exchanged in section 1035 exchanges as
applying to the new contracts acquired, so
the new contract is treated the same as the
old contract. See, e.g., Rev. Rul. 92-95.
Similarly, the proposed rule ensures that
the new interest is treated the same as the
old interest when applying rules that con-
sider whether an interest in a life insur-
ance contract was previously transferred
in a reportable policy sale. See proposed
§1.101-1(c)(3).
Proposed §1.101-1(c)(3) also provides
that, for purposes of §§1.6050Y-3 and
1.6050Y-4, the section 1035 exchange is
treated as the transfer of an interest in the
life insurance contract in a reportable pol-
icy sale if the old interest previously was
transferred for valuable consideration in a
reportable policy sale (or is treated, under
proposed §1.101-1(c)(3), as an interest in a
life insurance contract that previously was
transferred for valuable consideration in a
reportable policy sale). Accordingly, the
designation of death benefits as reportable
death benefits is an attribute that transfers
from the old interest to the new interest
in a section 1035 exchange. See also pro-
posed §1.6050Y-1(a)(12). The Treasury
Department and the IRS previously
have treated other attributes of contracts
exchanged in section 1035 exchanges as
transferring to the new contracts acquired.
In this case, the proposed rule ensures that
death benefits under the new interest are
treated the same as under the old interest
for purposes of reporting under section
6050Y(c) and §1.6050Y-4. These rules
are necessary to ensure that the acquirer
of an interest in a life insurance contract in
a reportable policy sale cannot avoid the
designation of the death benefits as report-
able death benefits and the associated
reporting of the payment of the reportable
death benefits by simply exchanging the
interest for a new life insurance contract.
The proposed regulations also make con-
forming changes to §1.101-1(c)(1) of the
final regulations to reflect the addition of
proposed §1.101-1(c)(3).
4. Conforming modifications to
§§1.6050Y-1 through 1.6050Y-4
Finally, consistent with proposed
§1.101-1(c)(3), the proposed regula-
tions would modify several definitions
in §1.6050Y-1 of the final regulations
and modify the reporting rules under
§§1.6050Y-3 and 1.6050Y-4 of the final
regulations to ensure proper reporting of
reportable death benefits paid under con-
tracts issued in section 1035 exchanges.
Notably, however, the section 1035
exchange rules of proposed §1.101-1(c)(3)
do not apply for purposes of §1.6050Y-2
of the final regulations, and no report-
ing is required under §1.6050Y-2 of the
final regulations at the time of a section
1035 exchange, even if the new interest is
exchanged for an old interest that was pre-
viously transferred for valuable consider-
ation in a reportable policy sale.
Proposed §1.6050Y-1(a)(14) provides
that the term “reportable policy sale”
has the meaning given to it in §1.101-
1(c)(1), except as otherwise provided in
§1.6050Y-1. Proposed §1.6050Y-1(a)
(12) provides that the term “reportable
death benefits” means amounts paid by
reason of the death of the insured under
a life insurance contract that are attrib-
utable to an interest in the contract that
was transferred in a reportable policy sale
described in §1.101-1(c)(1) of the final
regulations or proposed §1.101-1(c)(3).
Accordingly, payors of such amounts are
subject to the reporting requirements of
section 6050Y(c) and §1.6050Y-4 of the
final regulations. Proposed §1.6050Y-
1(a)(1) and (2) modify the definitions of
“acquirer” and “buyer,” respectively, to
treat as a buyer for purposes of reporting
under section 6050Y(c) and §1.6050Y-4
a person to whom an interest in a life
insurance contract is issued in a section
1035 exchange treated as the transfer of
an interest in the life insurance contract
in a reportable policy sale under proposed
§1.101-1(c)(3). See §1.6050Y-4(a)(5) of
the final regulations (requiring a payor of
reportable death benefits to report the pay-
or’s estimate of investment in the contract

Bulletin No. 2023–23 913 June 5, 2023
with respect to the buyer, limited to the
payor’s estimate of the buyer’s investment
in the contract with respect to the interest
for which the reportable death benefits
payment recipient was paid).
To ensure proper reporting of report-
able death benefits paid under contracts
issued in section 1035 exchanges, pro-
posed §1.6050Y-3(a) requires report-
ing by each “6050Y(b) issuer” that is
a “section 1035 issuer” with respect to
each “seller” at the time of the exchange.
Proposed §1.6050Y-1(a)(8)(iii)(C) pro-
vides that the term “6050Y(b) issuer”
includes any person that is a section 1035
issuer or the designee of a section 1035
issuer. Proposed §1.6050Y-1(a)(8)(v)
defines the term “section 1035 issuer” to
include the issuer of the old interest (old
issuer) and the issuer of the new interest
(new issuer) in a section 1035 exchange
that is treated as the transfer of an interest
in the life insurance contract in a report-
able policy sale under proposed §1.101-
1(c)(3). The old issuer is a section 1035
issuer described in proposed §1.6050Y-
1(a)(8)(v)(A), and the new issuer is a
section 1035 issuer described in proposed
§1.6050Y-1(a)(8)(v)(B). However, an
issuer is not considered a section 1035
issuer if it never received information
indicating that the interest in a life insur-
ance contract with respect to which it is
an issuer was transferred in a reportable
policy sale under §1.101-1(c)(1) or (3).
See proposed §1.6050Y-1(a)(8)(v)(A) and
(B). Proposed §1.6050Y-1(a)(18) provides
that, for purposes of reporting by both the
old issuer and the new issuer, the term
“seller” includes any person that holds an
interest in a life insurance contract that has
been transferred in a reportable policy sale
under §1.101-1(c)(1) or (3) and exchanges
that interest for an interest in a new life
insurance contract in an exchange pursu-
ant to section 1035. The information to be
provided by a section 1035 issuer includes
the name, address, and taxpayer identifi-
cation number of the seller, the investment
in the contract with respect to the seller,
and any other information that is required
by the form or its instructions. It is antici-
pated that this reporting will be completed
on Form 1099-SB, “Seller’s Investment in
Life Insurance Contract”, and the infor-
mation to be provided will also include the
policy number (old or new, as applicable)
and identification of the transaction as a
section 1035 exchange. Under proposed
§1.6050Y-3(a)(3), section 1035 issuers are
not required to report the amount the seller
would have received if the seller had sur-
rendered the life insurance contract.
The proposed regulations make con-
forming changes to §1.6050Y-3(c) of the
final regulations to provide the time and
place for filing returns required to be
made by section 1035 issuers. See pro-
posed §1.6050Y-3(c) (section 1035 issu-
ers file returns at the same time and place
as other 6050Y(b) issuers). Proposed
§1.6050Y-3(d)(1) provides that each sec-
tion 1035 issuer must furnish a statement
to each seller who makes a section 1035
exchange, just as other 6050Y(b) issu-
ers are required to furnish a statement to
sellers, and proposed §1.6050Y-3(d)(2)
imposes the same deadline for doing so.
Additionally, proposed §1.6050Y-3(d)(1)
requires the old issuer to furnish a state-
ment to the new issuer in a section 1035
exchange providing information about
the interest being exchanged. This state-
ment serves to provide notice to the new
issuer that the old interest was transferred
in a reportable policy sale and, therefore,
that the new interest will be treated as an
interest in a life insurance contract that
has been transferred in a reportable policy
sale and that death benefits paid under the
new interest are reportable death benefits.
Proposed §1.6050Y-3(d)(2) provides that
this statement must be furnished within 30
days of the section 1035 exchange.
The proposed regulations also mod-
ify the exception to reporting set forth
in §1.6050Y-4(e)(3) of the final regu-
lations. Section 1.6050Y-4(e)(3) of the
final regulations provides an exception
from reporting under §1.6050Y-4 of
the final regulations if the payor never
received, and has no knowledge of any
issuer having received, a reportable pol-
icy sale statement (RPSS) with respect
to the interest in a life insurance contract
with respect to which the reportable death
benefits are paid. However, death benefits
paid with respect to the new interest may
be reportable death benefits even though
an RPSS was never furnished with respect
to the new interest. Accordingly, the exist-
ing exception would apply too broadly in
the context of section 1035 exchanges.
Proposed §1.6050Y-4(e)(3) therefore
imposes an additional requirement if the
reportable death benefits are paid with
respect to an interest in a life insurance
contract issued in a section 1035 exchange.
In that case, the exception applies only if
the payor also never received, and has no
knowledge of any issuer having received,
a statement described in §1.6050Y-3(d)(1)
from a section 1035 issuer or other infor-
mation indicating that the issuance of the
contract is treated as a transfer of an inter-
est in the contract in a reportable policy
sale under §1.101-1(c)(3).
Ordinary Course Trade or Business
Acquisitions
As noted in the preamble to the final
regulations, C corporations are not fre-
quently used as vehicles for investing in
life insurance contracts covering insureds
with respect to which the corporation does
not have a substantial business, financial,
or family relationship at the time the con-
tract is issued because a corporate level
income tax applies to corporate earn-
ings in addition to income tax on distri-
butions at the shareholder level. See 84
FR 58460, 58467. After consideration of
the comments and letter received on the
2019 proposed regulations and the final
regulations, respectively, regarding ordi-
nary course trade or business acquisitions,
the Treasury Department and the IRS are
proposing an exception for certain direct
acquisitions of interests in life insurance
contracts from a C corporation.
Proposed §1.101-1(c)(2)(v) provides
that the direct acquisition of an inter-
est in a life insurance contract from
a C corporation by a C corporation is
not a reportable policy sale if (1) the
acquisition results from a transaction
that qualifies as a reorganization under
section 368(a); (2) immediately before
the acquisition, (i) the interest is held by
a C corporation that conducts an active
trade or business within the meaning
of §1.367(a)-2(d)(2) and (3), (ii) the C
corporation does not engage in a trade
or business of investing in interests in
life insurance contracts, and (iii) no
more than 5 percent of the gross value
of the assets of the C corporation con-
sists of life insurance contracts; and (3)
immediately after the acquisition, (i)
the acquiring C corporation does not

June 5, 2023 914 Bulletin No. 2023–23
engage in a trade or business of invest-
ing in interests in life insurance con-
tracts, and (ii) not more than 5 percent
of the gross value of the assets of the
C corporation consists of life insurance
contracts. This exception would pro-
vide relief from the reportable policy
sale rules for acquisitions of interests in
life insurance contracts through certain
ordinary course trade or business acqui-
sitions while preserving different treat-
ment for direct and indirect acquisitions
of interests in life insurance contracts in
other cases. The proposed regulations
modify Example 11 in §1.101-1(g)
(11) of the final regulations to reflect
the addition of the exception in pro-
posed §1.101-1(c)(2)(v). See proposed
§1.101-1(g)(11).
Applicability Dates
Proposed §§1.101-1(b)(2)(iv) and (c)
(3) are proposed to apply to section 1035
exchanges occurring on or after the date
the Treasury decision adopting these reg-
ulations as final regulations is published
in the Federal Register, and proposed
§1.101-1(c)(2)(v) is proposed to apply
to any acquisition of an interest in a life
insurance contract occurring on or after
the date the Treasury decision adopting
these regulations as final regulations is
published in the Federal Register. See
proposed §1.101-6(c). However, it is pro-
posed that a taxpayer may choose to apply
§1.101-1(b)(2)(iv), (c)(2)(v), and (c)(3) of
the regulations set forth in the Treasury
decision adopting these regulations as
final regulations to all section 1035
exchanges and acquisitions occurring after
December 31, 2017, and before the date
of publication of the Treasury decision
adopting these rules as final regulations in
the Federal Register. See section 7805(b)
(7) of the Code. Alternatively, a taxpayer
may rely on proposed §1.101-1(b)(2)(iv),
(c)(2)(v), and (c)(3) for all section 1035
exchanges and acquisitions occurring
after December 31, 2017, and before the
date of publication of the Treasury deci-
sion adopting these rules as final regula-
tions in the Federal Register.
The reporting obligations under pro-
posed §1.6050Y-3 are proposed to apply
to any section 1035 exchange treated as
a reportable policy sale under proposed
§1.101-1(c)(3) if the exchange occurs
on or after the date the Treasury deci-
sion adopting these regulations as final
regulations is published in the Federal
Register. See proposed §1.6050Y-1(b)
(2). The reporting obligations under
proposed §1.6050Y-4 are proposed to
apply to reportable death benefits paid
with respect to an interest in a life insur-
ance contract issued in a section 1035
exchange treated as a reportable policy
sale under proposed §1.101-1(c)(3) if the
exchange occurs on or after the date the
Treasury decision adopting these regu-
lations as final regulations is published
in the Federal Register. See proposed
§1.6050Y-1(b)(2). Any person with a
reporting obligation under proposed
§1.6050Y-3 or proposed §1.6050Y-4
may, however, rely on the proposed
regulations with respect to all section
1035 exchanges occurring after May 10,
2023, and before the date of publication
of the Treasury decision adopting these
rules as final regulations in the Federal
Register.
Special Analyses
I. Regulatory Planning and Review
The proposed regulations are not subject
to review under section 6(b) of Executive
Order 12866, as amended pursuant to the
Memorandum of Agreement (April 11,
2018) between the Treasury Department
and the Office of Management and Budget
regarding review of tax regulations.
II. Paperwork Reduction Act
The additional collection of informa-
tion relating to this notice of proposed
rulemaking will be submitted to the Office
of Management and Budget for review
under OMB Control Number 1545-2281 in
accordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)). In gen-
eral, the additional collection of infor-
mation is required under section 6050Y.
When an interest in a life insurance con-
tract that was previously transferred in or
is treated as having been previously trans-
ferred in a reportable policy sale (original
contract) is exchanged by a policyholder
under section 1035 for a new life insur-
ance contract (new contract), proposed
§1.6050Y-3(a) would require the issuer
of the original contract (original issuer) to
notify the issuer of the new contract (new
issuer), the policyholder, and the IRS of
the status of the original contract as a con-
tract transferred in or treated as having
been transferred in a reportable policy sale
and to provide the investment in the con-
tract for the original contract. Proposed
§1.6050Y-3(a) would also require any
new issuer receiving such notification
with respect to a section 1035 exchange to
provide the policyholder and the IRS with
the policy number of the new contract and
the investment in the contract. This infor-
mation is necessary to carry out the pur-
pose of section 6050Y(c), which requires
a payor of reportable death benefits to
report certain information about payments
of reportable death benefits.
The likely respondents to the collec-
tion of information are life insurance
companies.
The burden for the additional collec-
tion of information contained in proposed
§1.6050Y-3 will be reflected in the burden
on Form 1099-SB, “Seller’s Investment
in Life Insurance Contract”, when the
burden is revised to reflect the additional
collection of information in proposed
§1.6050Y-3. The OMB Control Number
for this form is 1545-2281.
Comments on the collection of infor-
mation should be sent to the Office of
Management and Budget, Attn: Desk
Officer for the Department of the Treasury,
Office of Information and Regulatory
Affairs, Washington, DC 20503, with
copies to the Internal Revenue Service,
Attn: IRS Reports Clearance Officer,
SE:CAR:MP:T:T:SP, Washington, DC
20224. Comments on the collection of
information should be received by July
10, 2023.
Comments are specifically requested
concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the IRS,
including whether the information will
have practical utility;
The accuracy of the estimated burden
associated with the proposed collection of
information;
How the quality, utility, and clarity of
the information to be collected may be
enhanced;

Bulletin No. 2023–23 915 June 5, 2023
How the burden of complying with
the proposed collection of information
may be minimized, including through the
application of automated collection tech-
niques or other forms of information tech-
nology; and
Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
An agency may not conduct or sponsor,
and a person is not required to respond to,
a collection of information unless it dis-
plays a valid control number assigned by
the Office of Management and Budget.
III. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
requires agencies to “prepare and make
available for public comment an initial
regulatory flexibility analysis,” which
will “describe the impact of the proposed
rule on small entities.” 5 U.S.C. 603(a).
Section 605(b) of the RFA allows an
agency to certify a rule, in lieu of prepar-
ing an analysis, if the proposed rulemak-
ing is not expected to have a significant
economic impact on a substantial number
of small entities.
Pursuant to the RFA, it is hereby cer-
tified that the proposed regulations will
not have a significant economic impact
on a substantial number of small entities,
because any effect on small entities by
the rules proposed in this document flows
directly from section 13520 of the TCJA.
In addition, it is anticipated that require-
ments in the proposed regulations, which
implement the statutory requirements
under section 13520 of the TCJA, will fall
primarily on financial and insurance firms
with annual receipts greater than $41.5
million and, therefore, on no small entities.
Therefore, the Commissioner of the IRS
hereby certifies that the proposed regula-
tions will not have a significant economic
impact on a substantial number of small
entities. The Treasury Department and the
IRS request comments on the impacts of
this proposed rule on small entities.
Pursuant to section 7805(f) of the
Code, this notice of proposed rulemaking
will be submitted to the Chief Counsel
for the Office of Advocacy of the Small
Business Administration for comment on
its impact on small entities.
IV. Unfunded Mandates Reform Act
Section 202 of the Unfunded Mandates
Reform Act of 1995 (UMRA) requires
that agencies assess anticipated costs and
benefits and take certain other actions
before issuing a final rule that includes
any Federal mandate that may result in
expenditures in any one year by a state,
local, or tribal government, in the aggre-
gate, or by the private sector, of $100
million in 1995 dollars, updated annually
for inflation. This proposed rule does not
include any Federal mandate that may
result in expenditures by state, local, or
tribal governments, or by the private sec-
tor in excess of that threshold.
V. Executive Order 13132: Federalism
Executive Order 13132 (Federalism)
prohibits an agency from publishing any
rule that has federalism implications if
the rule either imposes substantial, direct
compliance costs on state and local gov-
ernments, and is not required by statute,
or preempts state law, unless the agency
meets the consultation and funding
requirements of section 6 of the Executive
Order. These proposed regulations do
not have federalism implications and do
not impose substantial direct compliance
costs on state and local governments or
preempt state law within the meaning of
the Executive Order.
Comments and Requests for a Public
Hearing
Before these proposed amendments to
the final regulations are adopted as final
regulations, consideration will be given to
comments that are submitted timely to the
IRS as prescribed in this preamble under
the ADDRESSES heading. The Treasury
Department and the IRS request comments
on all aspects of the proposed regulations.
Any electronic comments submitted, and
to the extent practicable any paper com-
ments submitted, will be made available
at www.regulations.gov or upon request.
A public hearing will be scheduled if
requested in writing by any person who
timely submits electronic or written com-
ments. Requests for a public hearing are
also encouraged to be made electronically.
If a public hearing is scheduled, notice of
the date and time for the public hearing
will be published in the Federal Register.
Drafting Information
The principal author of these reg-
ulations is Kathryn M. Sneade, Office
of Associate Chief Counsel (Financial
Institutions and Products), IRS. However,
other personnel from the Treasury
Department and the IRS participated in
their development.
Availability of IRS Documents
The revenue rulings, notices, and other
guidance cited in this document are pub-
lished in the Internal Revenue Bulletin (or
Cumulative Bulletin) and are available
from the Superintendent of Documents,
U.S. Government Publishing Office,
Washington, DC 20402, or by visiting the
IRS website at www.irs.gov.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and record-
keeping requirements.
Proposed Amendments to the
Regulations
Accordingly, the Treasury Department
and the IRS propose to amend 26 CFR
part 1 as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.101-1 is amended by:
1. Adding a heading for paragraph (a)
introductory text.
2. In paragraph (a)(1), adding a sentence
after the fourth sentence.
3. In paragraphs (b) introductory text
and (b)(2), revising the headings.
4. Adding paragraph (b)(2)(iv).
5. Adding a sentence at the end of para-
graph (c)(1).
6. Revising paragraph (c)(2)(v).
7. Adding paragraph (c)(3).
8. In paragraph (e)(2), removing “, other
than the issuance of a policy in an
exchange pursuant to section 1035”
in the last sentence.

June 5, 2023 916 Bulletin No. 2023–23
9. In paragraph (g)(11), adding two sen-
tences after the fourth sentence.
10. Adding paragraphs (g)(17) through
(g)(19).
The additions and revisions read as
follows:
§1.101-1 Exclusion from gross income
of proceeds of life insurance contracts
payable by reason of death.
(a) Exclusion from gross income—(1)
In general. * * * The extent to which this
exclusion applies in cases where life insur-
ance policies have been gratuitously trans-
ferred or issued in an exchange pursuant
to section 1035 (section 1035 exchange) is
stated in paragraph (b)(2) of this section.
* * *
* * * * *
(b) Transfers and exchanges of life
insurance policies.
* * * * *
(2) Other transfers and exchanges—*
* *
* * * * *
(iv) Section 1035 exchanges. When an
interest in a life insurance contract (old
interest) is exchanged in a section 1035
exchange for an interest in a newly issued
life insurance contract (new interest),
except as otherwise provided by this sec-
tion with respect to any portion of the new
interest that is transferred or exchanged
subsequent to the section 1035 exchange,
the amount of the proceeds attributable to
the new interest that is excludable from
gross income under section 101(a) is
determined as follows:
(A) If, at the time of the exchange, the
entire amount of the proceeds attribut-
able to the old interest would have been
excludable from gross income under sec-
tion 101(a), the entire amount of the pro-
ceeds attributable to the new interest is
excludable from gross income; and
(B) If, at the time of the exchange, less
than the entire amount of the proceeds
attributable to the old interest would have
been excludable from gross income under
section 101(a), the amount of the proceeds
attributable to the new interest that is
excludable from gross income is limited
to the sum of the amount of the proceeds
attributable to the old interest that would
have been excludable at the time of the
exchange and the premiums and other
amounts subsequently paid with respect
to the new interest by the policyholder,
reduced (but not below zero) by amounts
received by the policyholder under the life
insurance contract that are not received as
an annuity, to the extent excludable from
gross income under section 72(e).
* * * * *
(c) * * *
(1) * * * See paragraph (c)(3) of this
section for special rules applicable to sec-
tion 1035 exchanges.
(2) * * *
(v) The direct acquisition of an interest
in a life insurance contract by a C corpo-
ration if:
(A) Immediately before the acquisition,
the interest is held by another C corpora-
tion (target C corporation) that actively
conducts a trade or business within the
meaning of §1.367(a)-2(d)(2) and (3);
(B) Immediately before the acquisition,
the target C corporation does not engage
in a trade or business of investing in inter-
ests in life insurance contracts;
(C) Immediately before the acquisi-
tion, no more than 5 percent of the gross
value of the assets (as determined under
paragraph (f)(4) of this section) of the
target C corporation consists of life insur-
ance contracts;
(D) The acquisition results from a
transaction that qualifies as a reorganiza-
tion under section 368(a) with respect to
which the target C corporation and the
acquiring C corporation each is a party to
the reorganization (within the meaning of
section 368(b));
(E) Immediately after the acquisition,
the acquiring C corporation does not
engage in a trade or business of investing
in interests in life insurance contracts, and
(F) Immediately after the acquisi-
tion, no more than 5 percent of the gross
value of the assets (as determined under
paragraph (f)(4) of this section) of the
acquiring C corporation consists of life
insurance contracts.
(3) Section 1035 exchanges. This
paragraph (c)(3) applies if an interest in
a life insurance contract (old interest) is
exchanged in a section 1035 exchange for
an interest in a newly issued life insurance
contract (new interest), and the old inter-
est previously was transferred for valuable
consideration in a reportable policy sale
under paragraph (c)(1) of this section or
is treated as an interest in a life insurance
contract that previously was transferred
for valuable consideration in a report-
able policy sale under this paragraph (c)
(3). For purposes of this section, the new
interest is treated as an interest in a life
insurance contract that previously was
transferred for valuable consideration in
a reportable policy sale. For purposes of
§§1.6050Y-3 and 1.6050Y-4, the section
1035 exchange is treated as the transfer of
an interest in the life insurance contract in
a reportable policy sale.
* * * * *
(g) * * *
(11) * * * Also, the exception in para-
graph (c)(2)(v) of this section applies,
provided Corporation X satisfies the
requirements of paragraph (c)(2)(v)(A)
through (C) of this section immediately
before the acquisition by Corporation Y,
and Corporation Y satisfies the require-
ments of paragraph (c)(2)(v)(E) and (F) of
this section immediately after the acqui-
sition. This would be the case even if A
were no longer employed by Corporation
X at the time of the transfer. * * *
* * * * *
(17) Example 17. The facts are the same as in
Example 4 in paragraph (g)(4) of this section except
that, before A’s death, C exchanges the policy on
A’s life for a new policy on A’s life in a section
1035 exchange. The amount of the proceeds C may
exclude from C’s gross income under this section is
limited under paragraph (b)(2)(iv)(B) of this section
to $6,000 plus any premiums and other amounts paid
by C with respect to the original policy subsequent
to the transfer and any premiums and other amounts
paid by C with respect to the new policy subsequent
to the exchange.
(18) Example 18. The facts are the same as in
Example 17 in paragraph (g)(17) of this section
except that, before A’s death, C sells the new pol-
icy to A for fair market value. A’s estate receives the
proceeds of $100,000 on A’s death. Under paragraph
(b)(1)(ii)(B)(3)(i) of this section, the amount of the
proceeds A’s estate may exclude from gross income
is not limited by paragraph (b) of this section.
(19) Example 19. A is the initial policyholder of a
$100,000 insurance policy on A’s life. A transfers the
policy for $6,000, its fair market value, to an indi-
vidual, C, who does not have a substantial family,
business, or financial relationship with A at the time
of the transfer. The transfer from A to C is a report-
able policy sale. C also is the initial policyholder
of a $200,000 insurance policy on A’s life. Before
A’s death, C exchanges the two policies on A’s life
for a single new policy on A’s life in a section 1035
exchange. C receives the proceeds from the new pol-
icy on A’s death. The entire amount of the proceeds
attributable to the interest in the new policy that was
issued in exchange for the policy originally issued to
C is excludable from gross income under paragraph

Bulletin No. 2023–23 917 June 5, 2023
(b)(2)(iv)(A) of this section. The amount of the pro-
ceeds attributable to the interest in the new policy
that was issued in exchange for the policy originally
issued to A that is excludable from gross income is
limited under paragraph (b)(2)(iv)(B) of this section
to $6,000 plus any premiums and other amounts paid
by C with respect to the policy originally issued to
A subsequent to the transfer and any premiums and
other amounts paid by C with respect to the interest
in the new policy that was issued in exchange for the
policy originally issued to A.
Par. 3. Section 1.101-6 is amended by
adding paragraph (c) to read as follows:
§1.101-6 Effective date.
* * * * *
(c) Notwithstanding paragraphs (a)
and (b) of this section, §1.101-1(b)(2)
(iv) and (c)(3) apply to any interest in a
life insurance contract issued in a section
1035 exchange occurring on or after the
date these regulations are published as
final regulations in the Federal Register,
and §1.101-1(c)(2)(v) applies to any
acquisition of an interest in a life insur-
ance contract occurring on or after the
date these regulations are published as
final regulations in the Federal Register.
However, under section 7805(b)(7), a
taxpayer may choose to apply the rules
in §1.101-1(b)(2)(iv), (c)(2)(v), and (c)
(3) to all exchanges and acquisitions
occurring after December 31, 2017, and
before the date these regulations are pub-
lished as final regulations in the Federal
Register.
Par. 4. Section 1.6050Y-1 is amended
by:
1. In paragraph (a)(1), adding a sentence
at the end of the paragraph.
2. In paragraph (a)(2), adding “under
§1.101-1(c)(1) or treated as such an
interest under §1.101-1(c)(3)” before
the second comma.
3. In paragraph (a)(8)(ii), removing the
last sentence.
4. In paragraph (a)(8)(iii)(A), removing
“or” at the end.
5. In paragraph (a)(8)(iii)(B)(2), remov-
ing the period at the end of the para-
graph and adding in its place “; or”.
6. Adding paragraph (a)(8)(iii)(C).
7. Adding paragraph (a)(8)(v).
8. In paragraph (a)(12), adding “under
§1.101-1(c)(1) or (3)” before the
period at the end of the paragraph.
9. In paragraph (a)(14), removing
“§1.101-1(c)” before the period at the
end of the paragraph, and adding in
its place Ҥ1.101-1(c), except as oth-
erwise provided in this section”.
10. In paragraph (a)(18)(i), removing
“or” at the end of the paragraph.
11. In paragraph (a)(18)(ii), removing the
period at the end of the paragraph and
adding in its place “; or”.
12. Adding paragraph (a)(18)(iii).
13. Redesignating paragraphs (b)(1)
through (5) as paragraphs (b)(1)(i)
through (v); redesignating paragraph
(b) introductory text as paragraph (b)
(1); adding a heading to paragraph (b)
introductory text; revising the heading
for the newly redesignated paragraph
(b)(1); revising the first two sentences
of newly redesignated paragraph (b)
(1); and adding paragraph (b)(2).
The additions and revisions read as
follows:
§1.6050Y-1 Information reporting for
reportable policy sales, transfers of life
insurance contracts to foreign persons,
and reportable death benefits.
(a) * * *
(1) * * * For purposes of determin-
ing the buyer under paragraph (a)(2)
of this section, the term acquirer also
includes any person to whom an interest
in a life insurance contract is issued in an
exchange pursuant to section 1035 (sec-
tion 1035 exchange) that is treated as the
transfer of an interest in the life insurance
contract in a reportable policy sale under
§1.101-1(c)(3).
* * * * *
(8) * * *
(iii) * * *
(C) Any person that is a section 1035
issuer or the designee of a section 1035
issuer.
* * * * *
(v) Section 1035 issuer. A section 1035
issuer is any person that, on the date of a
section 1035 exchange of an interest in
an existing life insurance contract for an
interest in a newly issued life insurance
contract that is treated as the transfer of
an interest in a life insurance contract in
a reportable policy sale under §1.101-1(c)
(3), is:
(A) An issuer with respect to the exist-
ing life insurance contract, provided the
issuer received an RPSS, a statement
required by §1.6050Y-3(d)(1), or other
information indicating that the existing
life insurance contract or interest therein
was transferred in a reportable policy sale
under §1.101-1(c)(1) or (3); or
(B) An issuer with respect to the newly
issued life insurance contract, provided
the issuer receives the statement required
by §1.6050Y-3(d)(1) or other information
indicating that existing life insurance con-
tract or interest therein was transferred in
a reportable policy sale under §1.101-1(c)
(1) or (3).
* * * * *
(18) * * *
(iii) For purposes of reporting under
§1.6050Y-3 by both the section 1035
issuer described in paragraph (a)(8)(v)(A)
of this section and the section 1035 issuer
described in paragraph (a)(8)(v)(B) of this
section, holds an interest in a life insur-
ance contract that has been transferred in
a reportable policy sale under §1.101-1(c)
(1) or (3) and exchanges that interest for
an interest in a new life insurance contract
in a section 1035 exchange.
(b) Applicability date—(1) In general.
Except as otherwise provided in para-
graph (b)(2) of this section, this section
and §§1.6050Y-2 through 1.6050Y-3
apply to reportable policy sales made after
December 31, 2018. Except as otherwise
provided in paragraph (b)(2) of this sec-
tion, this section and §1.6050Y-4 apply
to reportable death benefits paid after
December 31, 2018. * * *
* * * * *
(2) Section 1035 exchanges. Section
1.6050Y-3 applies to a section 1035
exchange treated as a reportable policy
sale under §1.101-1(c)(3) if the exchange
occurs on or after the date these regula-
tions are published as final regulations in
the Federal Register. Section 1.6050Y-4
applies to reportable death benefits paid
with respect to an interest in a life insur-
ance contract issued in a section 1035
exchange treated as a reportable policy
sale under §1.101-1(c)(3) if the exchange
occurs on or after the date these regula-
tions are published as final regulations in
the Federal Register.
§1.6050Y-2 [Amended]
Par. 5. Section 1.6050Y-2 is amended
by removing paragraph (f)(3).

June 5, 2023 918 Bulletin No. 2023–23
Par. 6. Section 1.6050Y-3 is amended
by:
1. In paragraph (a) introductory text,
removing “that receives an RPPS or
any notice of a transfer to a foreign
person” in the first sentence and
adding in its place “that receives an
RPSS, receives any notice of a trans-
fer to a foreign person, or is a section
1035 issuer”.
2. In paragraph (a)(3), removing “The”
at the beginning of the paragraph and
adding in its place “For 6050Y(b)
issuers other than section 1035 issu-
ers, the”.
3. In paragraph (c), removing “report-
able policy sale or the transfer to a
foreign person occurred” before the
period at the end of the first sentence
and adding in its place “reportable
policy sale, transfer to a foreign
person, or section 1035 exchange
occurred”.
4. In paragraph (d)(1), removing “is a
reportable policy sale payment recip-
ient or makes a transfer to a foreign
person” in the first sentence and add-
ing in its place “is a reportable pol-
icy sale payment recipient, makes a
transfer to a foreign person, or makes
a section 1035 exchange”, and adding
a sentence at the end of the paragraph.
5. In paragraph (d)(2), removing
“reportable policy sale or transfer to
a foreign person occurred” before the
period at the end of the first sentence
and adding in its place “reportable
policy sale, transfer to a foreign
person, or section 1035 exchange
occurred”, and adding a sentence
after the second sentence.
6. In paragraph (f), removing “para-
graph (f)(1), (2), or (3) of this section
applies” before the period at the end
of the paragraph and adding in its
place “paragraph (f)(1) or (2) of this
section applies”.
7. Removing paragraph (f)(3).
The additions read as follows:
§1.6050Y-3 Information reporting by
6050Y(b) issuers for reportable policy
sales and transfers of life insurance
contracts to foreign persons.
* * * * *
(d) * * *
(1) * * * In addition, every section
1035 issuer described in §1.6050Y-1(a)
(8)(v)(A) filing a return required by para-
graph (a) of this section with respect to
a section 1035 exchange must furnish
to each section 1035 issuer described in
§1.6050Y-1(a)(8)(v)(B) with respect to
that exchange a written statement showing
the information required by paragraph (a)
of this section with respect to the seller in
the exchange and the name, address, and
phone number of the information contact
of the person filing the return.
(2) Time for furnishing statement. * *
* Each statement required by paragraph
(d)(1) of this section to be furnished to
any section 1035 issuer described in
§1.6050Y-1(a)(8)(v)(B) must be furnished
within 30 days of the date of the section
1035 exchange. * * *
* * * * *
Par. 7. Section 1.6050Y-4 is amended
by adding a sentence at the end of para-
graph (e)(3) to read as follows:
§1.6050Y-4 Information reporting by
payors for reportable death benefits.
* * * * *
(e) * * *
(3) * * * Additionally, if the reportable
death benefits are paid with respect to an
interest in a life insurance contract issued
in a section 1035 exchange, the payor
never received, and has no knowledge of
any issuer having received, a statement
described in §1.6050Y-3(d)(1) from a sec-
tion 1035 issuer or other information indi-
cating that the issuance of the contract is
treated as a transfer of an interest in the
contract in a reportable policy sale under
§1.101-1(c)(3).
* * * * *
Douglas W. O’Donnell,
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register May 9,
2023, 8:45a.m., and published in the issue of the
Federal Register for May 10, 2023, 88 FR 30058)

Bulletin No. 2023–23 i June 5, 2023
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 rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

June 5, 2023 ii Bulletin No. 2023–23
Numerical Finding List
1
Bulletin 2023–23
Announcements:
2023-2, 2023-2 I.R.B. 344
2023-1, 2023-3 I.R.B. 422
2023-3, 2023-5 I.R.B. 447
2023-4, 2023-7 I.R.B. 470
2023-5, 2023-9 I.R.B. 499
2023-6, 2023-9 I.R.B. 501
2023-8, 2023-14 I.R.B. 632
2023-9, 2023-15 I.R.B. 639
2023-10, 2023-16 I.R.B. 663
2023-7, 2023-17 I.R.B. 797
2023-11, 2023-17 I.R.B. 798
2023-12, 2023-17 I.R.B. 799
2023-13, 2023-18 I.R.B. 833
2023-14, 2023-19 I.R.B. 853
2023-16, 2023-20 I.R.B. 854
2023-15, 2023-21 I.R.B. 856
AOD:
2023-1, 2023-10 I.R.B. 502
2023-2, 2023-11 I.R.B. 529
Notices:
2023-4, 2023-2 I.R.B. 321
2023-5, 2023-2 I.R.B. 324
2023-6, 2023-2 I.R.B. 328
2023-8, 2023-2 I.R.B. 341
2023-1, 2023-3 I.R.B. 373
2023-2, 2023-3 I.R.B. 374
2023-3, 2023-3 I.R.B. 388
2023-7, 2023-3 I.R.B. 390
2023-9, 2023-3 I.R.B. 402
2023-10, 2023-3 I.R.B. 403
2023-11, 2023-3 I.R.B. 404
2023-12, 2023-6 I.R.B. 450
2023-13, 2023-6 I.R.B. 454
2023-16, 2023-8 I.R.B. 479
2023-17, 2023-10 I.R.B. 505
2023-18, 2023-10 I.R.B. 508
2023-20, 2023-10 I.R.B. 523
2023-19, 2023-11 I.R.B. 560
2023-21, 2023-11 I.R.B. 563
2023-22, 2023-12 I.R.B. 569
2023-23, 2023-13 I.R.B. 571
2023-24, 2023-13 I.R.B. 571
2023-26, 2023-13 I.R.B. 577
2023-25, 2023-14 I.R.B. 629
2023-27, 2023-15 I.R.B. 634
2023-28, 2023-15 I.R.B. 635
2023-31, 2023-16 I.R.B. 661
2023-30, 2023-17 I.R.B. 766
2023-33, 2023-18 I.R.B. 803
Notices:—Continued
2023-34, 2023-19 I.R.B. 837
2023-38, 2023-22 I.R.B. 872
2023-39, 2023-22 I.R.B. 877
2023-40, 2023-22 I.R.B. 879
2023-41, 2023-23 I.R.B. 905
Proposed Regulations:
REG-100442-22, 2023-3 I.R.B. 423
REG-146537-06, 2023-3 I.R.B. 436
REG-114666-22, 2023-4 I.R.B. 437
REG 122286-18, 2023-11 I.R.B. 565
REG-120653-22, 2023-15 I.R.B. 640
REG-105954-22, 2023-16 I.R.B. 713
REG-120080-22, 2023-16 I.R.B. 746
REG 109309-22, 2023-17 I.R.B. 770
REG 121709-19, 2023-17 I.R.B. 789
REG-124064-19, 2023-17 I.R.B. 789
REG-108054-21, 2023-23 I.R.B. 907
Revenue Procedures:
2023-1, 2023-1 I.R.B. 1
2023-2, 2023-1 I.R.B. 120
2023-3, 2023-1 I.R.B. 144
2023-4, 2023-1 I.R.B. 162
2023-5, 2023-1 I.R.B. 265
2023-7, 2023-1 I.R.B. 305
2023-8, 2023-3 I.R.B. 407
2023-10, 2023-3 I.R.B. 411
2023-11, 2023-3 I.R.B. 417
2023-14, 2023-6 I.R.B. 466
2023-9, 2023-7 I.R.B. 471
2023-13, 2023-13 I.R.B. 581
2023-17, 2023-13 I.R.B. 604
2023-18, 2023-13 I.R.B. 605
2023-19, 2023-13 I.R.B. 626
2023-20, 2023-15 I.R.B. 636
2023-12, 2023-17 I.R.B. 768
2023-15, 2023-18 I.R.B. 806
2023-21, 2023-19 I.R.B. 837
2023-22, 2023-19 I.R.B. 838
2023-23, 2023-22 I.R.B. 883
Revenue Rulings:
2023-1, 2023-2 I.R.B. 309
2023-3, 2023-6 I.R.B. 448
2023-4, 2023-9 I.R.B. 480
2023-5, 2023-10 I.R.B. 503
2023-6, 2023-14 I.R.B. 627
2023-7, 2023-15 I.R.B. 633
2023-2, 2023-16 I.R.B. 658
2023-8, 2023-18 I.R.B. 801
2023-9, 2023-19 I.R.B. 835
2023-10, 2023-23 I.R.B. 884
2023-11, 2023-23 I.R.B. 886
Treasury Decisions:
9970, 2023-2 I.R.B. 311
9771, 2023-3 I.R.B. 346
9772, 2023-11 I.R.B. 530
9773, 2023-11 I.R.B. 557
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

Bulletin No. 2023–23 iii June 5, 2023
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2023–23
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2022–27 through 2022–52 is in Internal Revenue Bulletin
2022–52, dated December 27, 2022.

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