Internal Revenue Bulletin 2013-50 (PDF rendition): IRS Notices

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HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2013–26, page 628.
Federal rates; adjusted federal rates; adjusted federal long-
term rate and the long-term exempt rate. For purposes of
sections 382, 642, 1274, 1288, and other sections of the
Code, tables set forth the rates for December 2013.
EMPLOYEE PLANS
T.D. 9641, page 622.
These final regulations contain amendments relating to certain
cash or deferred arrangements under section 401(k) and
matching contributions and employee contributions under sec-
tion 401(m). These regulations provide guidance on permitted
mid-year reductions or suspensions of safe harbor nonelective
contributions in certain circumstances for amendments ad-
opted after May 18, 2009. These regulations also revise the
requirements for permitted mid-year reductions or suspen-
sions of safe harbor matching contributions for plan years
beginning on or after January 1, 2015.
EMPLOYMENT TAX
T.D. 9646, page 630.
REG–146620 –13, page 674.
Temporary and proposed regulations under section 3402(p)(3)
relating to voluntary withholding agreements allow the Secretary
to issue guidance in the Internal Revenue Bulletin to describe
payments for which the Secretary finds that income tax withhold-
ing under a voluntary withholding agreement would be appropri-
ate. The proposed regulations also clarify that existing regulations
under section 3402(p) apply to voluntary withholding agreements
between employers and employees. Comments on the proposed
regulations are requested by February 25, 2014.
Notice 2013–77, page 632.
Under this notice, dividends and other distributions made by an
Alaska Native Corporation to its shareholders are eligible for
voluntary withholding under section 3402(p)(3)(B) of the Code
and § 31.3402(p)–1T of the Employment Tax Regulations.
ADMINISTRATIVE
Notice 2013–78, page 633.
This notice proposes for public comment a revision to the
procedures for requesting assistance from the U. S. compe-
tent authority under the provisions of an income, estate, or gift
tax treaty to which the United States is a party. Comments are
requested by March 10, 2014.
Notice 2013–79, page 653.
This notice requests comments from the public on a proposed
revision to Rev. Proc. 2006–9, the procedural guidance to
taxpayers on filing advance pricing agreement (“APA”) requests
and on the administration of APAs. Comments are requested
by March 10, 2014.
Finding Lists begin on page ii.
Bulletin No. 2013–50
December 9, 2013

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal practices and procedures that affect the rights and duties
of taxpayers are published.
Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings to
taxpayers or technical advice to Service field offices, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Sec-
retary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
December 9, 2013Bulletin No. 2013–50

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 42.—Low-Income
Housing Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term
rates are set forth for the month of December 2013.
See Rev. Rul. 2013–26, page 628.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-In Losses Following
Ownership Change
The adjusted applicable federal long-term rate is
set forth for the month of December 2013. See Rev.
Rul. 2013–26, page 628.
Section 401.—Qualified
Pension, Profit-Sharing,
and Stock Bonus Plans
T.D. 9641
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Reduction or Suspension of
Safe Harbor Contributions
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final Regulations.
SUMMARY: This document contains
amendments to regulations relating to cer-
tain cash or deferred arrangements under
section 401(k) and matching contributions
and employee contributions under section
401(m). These regulations provide guid-
ance on permitted mid-year reductions or
suspensions of safe harbor nonelective
contributions in certain circumstances for
amendments adopted after May 18, 2009.
These regulations also revise the require-
ments for permitted mid-year reductions
or suspensions of safe harbor matching
contributions for plan years beginning on
or after January 1, 2015. The regulations
affect administrators of, employers main-
taining, participants in, and beneficiaries
of certain defined contribution plans that
satisfy the nondiscrimination tests of sec-
tion 401(k) and section 401(m) using one
of the design-based safe harbors.
DATES:Effective Date: These regula-
tions are effective on November 15, 2013.
Applicability Date: These regulations
generally apply to amendments adopted
after May 18, 2009. The amendments to
the requirements for permitted mid-year
reductions or suspensions of safe harbor
matching contributions apply for plan
years beginning on or after January 1,
2015.
FOR FURTHER INFORMATION
CONTACT: William D. Gibbs at (202)
622-6060 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information con-
tained in these final regulations has been
reviewed and approved by the Office of
Management and Budget for review in
accordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)) under
control number 1545-2191. The collection
of information in these final regulations is
in §1.401(k)–3(g)(2) and §1.401(m)–
3(h)(2). Thecollection of information relates
to the new supplemental noticerequirements
in the case of a reduction or suspension of
safe harbor nonelective or matching con-
tributions and the requirement to include
additional information in the notice re-
quired by §§1.401(k)–3(d), 1.401(k)–3(g),
and 1.401(m)–3(h) for certain plans that
would be permitted to reduce or suspend
safe harbor nonelective or matching con-
tributions for a plan year even if the em-
ployer had not experienced a business
hardship. The likely recordkeepers are
businesses and other for-profit institu-
tions, nonprofit institutions, and State and
local governments.
An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less it displays a valid control number
assigned by the Office of Management
and Budget.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
Background
This document contains amendments
to regulations under sections 401(k) and
401(m) of the Internal Revenue Code.
Section 401(k)(1) provides that a profit-
sharing, stock bonus, pre-ERISA money
purchase, or rural cooperative plan will
not fail to qualify under section 401(a)
merely because it contains a qualified cash
ordeferredarrangement.Section
1.401(k)–1(a)(2) defines a cash or de-
ferred arrangement (CODA) as an ar-
rangement under which an eligible em-
ployee may make a cash or deferred
election with respect to contributions to,
or accruals or other benefits under, a plan
that is intended to satisfy the requirements
of section 401(a). Contributions that are
made pursuant to a cash or deferred elec-
tion under a qualified CODA are com-
monly referred to as elective contribu-
tions.
In order for a CODA to be a qualified
CODA, it must satisfy a number of re-
quirements. For example, contributions
under the CODA must satisfy either the
nondiscrimination test set forth in section
401(k)(3), called the actual deferral per-
centage (ADP) test, or one of the design-
based alternatives in section 401(k)(11),
401(k)(12), or 401(k)(13). Under the ADP
test, the average percentage of compensa-
tion deferred for eligible highly compen-
sated employees (HCEs) is compared to
the average percentage of compensation
December 9, 2013Bulletin No. 2013–50
622

deferred for eligible nonhighly compen-
sated employees (NHCEs), and, if certain
deferral percentage limits are exceeded
with respect to HCEs, corrective action
must be taken.
Section 401(k)(12) provides a design-
based safe harbor method under which a
CODA is treated as satisfying the ADP
test if the arrangement meets certain con-
tribution and notice requirements. A plan
satisfies this designed-based safe harbor
method if the employer makes specified
qualifiedmatchingcontributions
(QMACs) for all eligible NHCEs. The
employer can make QMACs under a basic
matching formula that provides for
QMACs on behalf of each eligible NHCE
equal to 100% of the employee’s elective
contributions that do not exceed 3% of
compensation, and 50% of the employee’s
elective contributions that exceed 3% but
do not exceed 5% of compensation. Alter-
natively, the employer can make QMACs
under an enhanced matching formula that
provides, at each rate of elective contribu-
tions, for an aggregate amount of QMACs
that is at least as generous as under the
basic matching formula, but only if the
rate of QMACs under the enhanced
matching formula does not increase as the
employee’s rate of elective contributions
increases. In lieu of QMACs, the plan is
permitted to provide qualified nonelective
contributions (QNECs) equal to 3% of
compensation for all eligible NHCEs. In
addition, under the design-based safe har-
bor methods, notice must be provided to
each eligible employee, within a reason-
able period before the beginning of the
plan year, of the employee’s rights and
obligations under the plan.
Section 401(k)(13), as added by sec-
tion 902 of the Pension Protection Act of
2006, Public Law 109 –280 (PPA ’06),
provides an alternative design-based safe
harbor for a CODA that provides for au-
tomatic contributions at a specified level
and meets certain requirements, including
employer contribution and notice require-
ments. Similar to the design-based safe
harbor under section 401(k)(12), section
401(k)(13) provides an employer the
choice between satisfying a matching con-
tribution requirement or a nonelective
contributionrequirement.Underthe
matching contribution requirement, the
employer can make matching contribu-
tions under a basic matching formula that
provides for matching contributions on
behalf of each eligible NHCE equal to
100% of the employee’s elective contri-
butions that do not exceed 1% of compen-
sation and 50% of the employee’s elective
contributions that exceed 1% but do not
exceed 6% of compensation. Alterna-
tively, the employer can make matching
contributions under an enhanced matching
formula that provides, at each rate of elec-
tive contributions, for an aggregate
amount of matching contributions that is
at least as generous as under the basic
matching formula, but only if the rate of
matching contributions under the en-
hanced matching formula does not in-
crease as the employee’s rate of elective
contributions increases. In addition, the
plan must satisfy a notice requirement un-
der section 401(k)(13) that is similar to
the notice requirement under section
401(k)(12).
Section 401(m) sets forth a nondis-
crimination requirement that applies to a
plan providing for matching contributions
or employee contributions. Such a plan
must satisfy either the nondiscrimination
test set forth in section 401(m)(2), called
the actual contribution percentage (ACP)
test, or one of the design-based alterna-
tives in section 401(m)(10), 401(m)(11),
or 401(m)(12). The ACP test in section
401(m)(2) is comparable to the ADP test
in section 401(k)(3).
Under section 401(m)(11), a defined
contribution plan is treated as satisfying
the ACP test with respect to matching
contributions if the plan satisfies the ADP
safe harbor of section 401(k)(12) and cer-
tain other requirements are satisfied. Sim-
ilarly, under section 401(m)(12), as added
by section 902 of PPA ’06, a defined
contribution plan that provides for auto-
matic contributions at a specified level is
treated as meeting the ACP test with re-
spect to matching contributions if the plan
satisfies the ADP safe harbor of section
401(k)(13) and certain other requirements
are satisfied.
Final regulations under sections 401(k)
and 401(m) were published on December
29,2004.Sections1.401(k)–3and
1.401(m)–3 set forth the requirements for
asafeharborplanundersections
401(k)(12) and 401(m)(11), respectively.
On February 24, 2009, final regulations
reflectingsections401(k)(13)and
401(m)(12) were published in theFederal
Register(74 FR 8200).
Sections1.401(k)–3(e)(1)and
1.401(m)–3(f)(1) provide that, subject to
certain exceptions, a safe harbor plan must
be adopted before the beginning of the
plan year and be maintained throughout a
full 12-month plan year. Accordingly, if,
at the beginning of the plan year, a plan
contains an allocation formula that in-
cludes safe harbor matching or safe harbor
nonelective contributions, then the plan
may not be amended to revert to ADP or
ACP testing for the same plan year (ex-
cept to the extent permitted under
§§1.401(k)–3 and 1.401(m)–3). Sections
1.401(k)–3(g) and 1.401(m)–3(h) set forth
the requirements (including a notice and
timing requirement) that must be satisfied
in order for a plan that satisfies the ADP
and ACP tests using safe harbor matching
contributions to be amended during the
plan year to reduce or suspend such con-
tributions and to satisfy ADP and ACP
tests using the current year testing
method.Sections1.401(k)–3(f)and
1.401(m)–3(g) set forth the requirements
that must be satisfied (including a notice
requirement) in order for a plan to be
amended after the first day of the plan
year to provide that it will satisfy the ADP
and ACP tests for that year using safe
harbor nonelective contributions, effec-
tive as of the first day of that plan year.
Sections 1.401(k)–3(e)(4) and 1.401(m)–
3(f)(4) provide that, if a plan terminates
during a plan year, the plan will not fail to
satisfy the requirements of §§1.401(k)–
3(e)(1) and 1.401(m)–3(f)(1) merely be-
cause the final plan year is less than 12
months, provided that the plan satisfies the
requirementsof§§1.401(k)–3and
1.401(m)–3 through the date of termina-
tion and certain other conditions are sat-
isfied (for example, the termination is in
connection with a transaction described in
section 410(b)(6)(C) or the employer in-
curs a substantial business hardship (com-
parable to a substantial business hardship
described in section 412(d)).
1
1
The definition of substantial business hardship in section 412(d) was relocated to become part of section 412(c) by section 111 of PPA ’06.
Bulletin No. 2013–50December 9, 2013
623

On May 18, 2009, proposed regula-
tions under sections 401(k) and 401(m)
were published in theFederal Register
(74 FR 23134), which would permit the
mid-year reduction or suspension of safe
harbor nonelective contributions in certain
circumstances. Written comments were
received on the proposed regulations, and
a public hearing was held September 23,
2009. After consideration of the com-
ments, these final regulations adopt the
provisions of the proposed regulations
with certain modifications, the most sig-
nificant of which are highlighted in the
Summary of Comments and Explanation
of Revisions.
Summary of Comments and
Explanation of Revisions
The proposed regulations would have
required, as a condition of the permitted
reduction or suspension of safe harbor
nonelective contributions, that the em-
ployer incur a substantial business hard-
ship (comparable to a substantial business
hardship described in section 412(c)).
Several commentators requested that the
substantial business hardship requirement
be eliminated as a condition of the reduc-
tion or suspension. The commentators ar-
gued that there were insufficient policy
reasons for the rules permitting the reduc-
tion or suspension of safe harbor nonelec-
tive contributions to be stricter than the
rules permitting the reduction or suspen-
sion of safe harbor matching contribu-
tions, that the determination of whether
the employer satisfies each of the ele-
ments of the section 412(c) definition of
substantial business hardship is unneces-
sarily burdensome, and that employers
will not have certainty that they satisfy the
substantial business hardship require-
ments.
Thefinalregulationsmaketwo
changes in response to these concerns
about demonstrating compliance with the
requirement that the employer incur a sub-
stantial business hardship (comparable to
a substantial business hardship described
in section 412(c)). First, the requirement
has been modified by replacing the stan-
dard in the proposed regulations that the
employer have a substantial business
hardship (as described in section 412(c))
with a standard that the employer be op-
erating at an economic loss as described in
section 412(c)(2)(A). This new standard
eliminates the requirement to determine
the health of the industry (as described in
section 412(c)(2)(B) and (C)) or whether
the reduction or suspension of safe harbor
nonelective contributions is needed so that
the plan will continue (as described in
section 412(c)(2)(D)). Second, the final
regulations permit an employer to reduce
or suspend safe harbor nonelective contri-
butions without regard to the financial
condition of the employer if notice is pro-
vided to participants before the beginning
of the plan year which discloses the pos-
sibility that the contributions might be re-
duced or suspended mid-year. The notice
must also provide that a supplemental no-
tice will be provided to plan participants if
a reduction or suspension does occur and
that the reduction or suspension will not
apply until at least 30 days after the sup-
plemental notice is provided. These regu-
lations do not alter the existing ability of a
safe harbor plan to use a contingent notice
(as described in §1.401(k)–3(f)(2)) before
the beginning of the plan year where the
contingent notice indicates that the plan
may be amended during the plan year to
include safe harbor nonelective contribu-
tions and that, if the plan is amended, a
follow-up notice will be provided.
In order to achieve uniformity between
the rules that apply to a mid-year reduc-
tion or suspension of safe harbor matching
contributions and the rules that apply to a
mid-year reduction or suspension of safe
harbor nonelective contributions, the final
regulations modify the rules that apply to
mid-year amendments reducing or sus-
pending safe harbor matching contribu-
tions so that the requirements that apply to
a mid-year reduction or suspension of safe
harbor nonelective contributions are not
stricter than those that apply to a mid-year
reduction or suspension of safe harbor
matching contributions. Thus, safe harbor
matching contributions may be reduced or
suspended under a mid-year amendment
only if either (i) the employer is operating
at an economic loss as described in sec-
tion 412(c)(2)(A), or (ii) the notice pro-
vided to participants before the beginning
of the plan year discloses that the contri-
butions might be reduced or suspended
mid-year, that participants will receive a
supplemental notice if that occurs, and
that the reduction or suspension will not
apply until at least 30 days after the sup-
plemental notice is provided. Because this
requirement is a new limitation on the
ability of an employer to amend its plan to
reduce or suspend safe harbor matching
contributions, the change is first effective
for plan years beginning on or after Jan-
uary 1, 2015.
2
The final regulations also provide that
guidance of general applicability pub-
lished in the Internal Revenue Bulletin
(see §601.601(d)(2)(ii)(b)) may set forth
additional situations in which a plan that
includes provisions satisfying the require-
ments of §1.401(k)–3 will not fail to sat-
isfy the requirements of section 401(k) for
a plan year even if the plan is amended
during the plan year to implement a mid-
year change to those provisions. This will
provide the IRS with greater flexibility to
develop rules to address special circum-
stances under which a mid-year change to
a section 401(k) safe harbor plan is appro-
priate, such as an amendment to the plan
in connection with a mid-year corporate
transaction. This flexibility also extends to
mid-year changes to a safe harbor plan
under section 401(m) of the Code.
Under the proposed regulations, the re-
duction or suspension of safe harbor non-
elective or matching contributions could
not be effective “earlier than the later of
30 days after eligible employees are pro-
vided the supplemental notice...andthe
date the amendment is adopted.” The final
regulations clarify the intention that the
reduction or suspension cannot be effec-
tive earlier than the later of the date the
amendment is adopted or 30 days after
eligible employees are provided the sup-
plemental notice. Thus, the minimum 30-
day waiting period applies solely with re-
spect to the date the supplemental notice
is provided and not the date the amend-
ment is adopted.
The preamble to the proposed regula-
tions stated that a plan that is amended dur-
ing the plan year to reduce or suspend safe
2
The preamble to the proposed regulations indicated that the IRS and Treasury were considering adding a requirement that employers provide advance notice regarding the possibility of
reduced or suspended safe harbor contributions.
December 9, 2013Bulletin No. 2013–50
624

harbor contributions (whether nonelective
contributions or matching contributions)
must prorate the otherwise applicable com-
pensation limit under section 401(a)(17) in
accordance with the requirements of
§1.401(a)(17)–1(b)(3)(iii)(A). Some com-
mentators asked for clarification as to how
these rules apply. Such an explanation of the
application of the rules of section 401(a)(17)
is beyond the scope of these section 401(k)
and (m) regulations.
Some commentators requested that the
regulations permitting a mid-year amend-
ment reducing or suspending safe harbor
nonelective contributions apply with respect
to amendments adopted before the proposed
regulations were published in the Federal
Register. Because the regulations in effect
before the proposed regulations were pub-
lished clearly prohibited such a plan amend-
ment, any employer that adopted such a plan
amendment violated the rules applicable un-
der section 401(k) and, if applicable, section
401(m). The Employee Plans Compliance
Resolution System (EPCRS) provides a
method to correct such a violation. See Ap-
pendixA.05(2)(d)(iii)ofRev.Proc.
2013–12 (2013– 4 I.R.B. 313, 367), see
§601.601(d)(2).
Applicability Dates
These regulations generally apply to
amendments adopted after May 18, 2009,
the effective date previously provided in the
proposed regulations. The amendments to
the requirements for permitted mid-year re-
ductions or suspensions of safe harbor
matching contributions apply for plan years
beginning on or after January 1, 2015.
Special Analyses
It has been determined that these final
regulations are not a significant regulatory
action as defined in Executive Order 12866.
Therefore, a regulatory assessment is not
required. It has also been determined that 5
U.S.C. 533(b) of the Administrative Proce-
dure Act (5 U.S.C. chapter 5) does not apply
to these regulations. It is hereby certified
that the collection of information in these
final regulations will not have a significant
economic impact on a substantial number of
small entities. This certification is based
upon the fact that small employers that take
advantage of the provisions in these regula-
tions will likely see a modest reduction in
the cost of providing pensions to their em-
ployees. Therefore, an analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter
6) is not required. Pursuant to section
7805(f) of the Internal Revenue Code, the
notice of proposed rulemaking preceding
these regulations was submitted to the Chief
Counsel of Advocacy of the Small Business
Administration for comment on its impact
on small business.
Drafting Information
The principal authors of these regula-
tions are William D. Gibbs and Pamela R.
Kinard, Office of Division Counsel/Asso-
ciate Chief Counsel (Tax Exempt and
Government Entities). However, other
personnel from the IRS and Treasury De-
partment participated in the development
of these regulations.
*****
Adoption of amendments to the
Regulations
Accordingly, 26 CFR part 1 is
amended as follows:
Part 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by revising the sectional
authority for § 1.401(k)–3 to read as fol-
lows:
Authority: 26 U.S.C. 7805***
Section 1.401(k)–3 is also issued under
26 U.S.C. 401(m)(9).
Par. 2. Section 1.401(k)– 0 is amended
by revising the entries for §1.401(k)–
3(g), (g)(1) and (g)(2) to read as follows:
§1.401(k)– 0. Table of contents.
*****
§1.401(k)–3 Safe harbor requirements.
*****
(g) Permissible reduction or suspen-
sion of safe harbor contributions.
(1) General rule.
(i) Matching contributions.
(ii) Nonelective contributions.
(2) Supplemental notice.
*****
Par. 3. Section 1.401(k)–3 is amended
by:
1.
Revising the second sentence in para-
graph (e)(1).
2.Revisingparagraphs(e)(4)(i)and
(e)(4)(ii).
3.Revising paragraph (g).
The revisions read as follows:
§1.401(k)–3 Safe harbor requirements.
*****
(e)***(1)***Inaddition, except as
provided in paragraph (g) of this section
or in guidance of general applicability
published in the Internal Revenue Bulletin
(see §601.601(d)(2)(ii)(b) of this chapter),
a plan which includes provisions that sat-
isfy the rules of this section will not sat-
isfy the requirements of §1.401(k)–1(b) if
it is amended to change such provisions
for that plan year.***
*****
(4)***
(i) The plan would satisfy the require-
ments of paragraph (g) of this section, treat-
ing the termination of the plan as a reduction
or suspension of safe harbor contributions,
other than the requirements of paragraph
(g)(1)(i)(A) or (g)(1)(ii)(A) of this section
(relating to the employer’s financial condi-
tion and information included in the initial
notice for the plan year) and paragraph
(g)(1)(i)(D) or (g)(1)(ii)(D) of this section
(requiring that employees have a reasonable
opportunity to change their cash or deferred
elections and, if applicable, employee con-
tribution elections); or
(ii) The plan termination is in connec-
tion with a transaction described in sec-
tion 410(b)(6)(C) or the employer incurs a
substantial business hardship comparable
to a substantial business hardship de-
scribed in section 412(c).
*****
(g)Permissible reduction or suspension
of safe harbor contributions—(1)General
rule—(i)Matching contributions. A plan
that provides for safe harbor matching con-
tributions intended to satisfy the require-
ments of paragraph (c) of this section for a
plan year will not fail to satisfy the require-
ments of section 401(k)(3) merely because
the plan is amended during the plan year to
reduce or suspend safe harbor matching
contributions on future elective contribu-
tions (and, if applicable, employee contribu-
tions) provided that—
Bulletin No. 2013–50December 9, 2013
625

(A) In the case of plan years beginning
on or after January 1, 2015, the employer
either—
(1) Is operating at an economic loss as
described in section 412(c)(2)(A) for the
plan year; or
(2) Includes in the notice described in
paragraph (d) of this section a statement that
the plan may be amended during the plan
year to reduce or suspend safe harbor
matching contributions and that the reduc-
tion or suspension will not apply until at
least 30 days after all eligible employees are
provided notice of the reduction or suspen-
sion;
(B) All eligible employees are pro-
vided a supplemental notice that satisfies
the requirements of paragraph (g)(2) of
this section;
(C) The reduction or suspension of safe
harbor matching contributions is effective
no earlier than the later of the date the
amendment is adopted or 30 days after
eligible employees are provided the sup-
plemental notice described in paragraph
(g)(2) of this section;
(D) Eligible employees are given a rea-
sonable opportunity (including a reason-
able period after receipt of the supplemen-
tal notice) prior to the reduction or
suspension of safe harbor matching con-
tributions to change their cash or deferred
elections and, if applicable, their em-
ployee contribution elections;
(E) The plan is amended to provide that
the ADP test will be satisfied for the entire
plan year in which the reduction or suspen-
sion occurs using the current year testing
method described in §1.401(k)–2(a)(2)(ii);
and
(F) The plan satisfies the requirements of
this section (other than this paragraph (g))
with respect to amounts deferred through
the effective date of the amendment.
(ii)Nonelective contributions. For
amendments adopted after May 18, 2009,
a plan that provides for safe harbor non-
elective contributions intended to satisfy
the requirements of paragraph (b) of this
section for the plan year will not fail to
satisfytherequirementsofsection
401(k)(3) merely because the plan is
amended during the plan year to reduce or
suspend safe harbor nonelective contribu-
tions provided that—
(A) The employer either—
(1) Is operating at an economic loss, as
described in section 412(c)(2)(A) for the
plan year; or
(2) Includes in the notice described in
paragraph (d) of this section a statement that
the plan may be amended during the plan
year to reduce or suspend safe harbor non-
elective contributions and that the reduction
or suspension will not apply until at least 30
days after all eligible employees are pro-
vided notice of the reduction or suspension;
(B) All eligible employees are pro-
vided a supplemental notice that satisfies
the requirements of paragraph (g)(2) of
this section;
(C) The reduction or suspension of safe
harbor nonelective contributions is effec-
tive no earlier than the later of the date the
amendment is adopted or 30 days after
eligible employees are provided the sup-
plemental notice described in paragraph
(g)(2) of this section;
(D) Eligible employees are given a rea-
sonable opportunity (including a reason-
able period after receipt of the supplemen-
tal notice) prior to the reduction or
suspension of nonelective contributions to
change their cash or deferred elections
and, if applicable, their employee contri-
bution elections;
(E) The plan is amended to provide that
the ADP test will be satisfied for the entire
plan year in which the reduction or sus-
pension occurs using the current year test-
ing method described in §1.401(k)–
2(a)(2)(ii); and
(F) The plan satisfies the requirements
of this section (other than this paragraph
(g)) with respect to safe harbor compen-
sation paid through the effective date of
the amendment.
(2)Supplemental notice. The supple-
mental notice requirement of this para-
graph (g)(2) is satisfied if each eligible
employee is given a notice (in writing or
such other form as prescribed by the Com-
missioner) that explains—
(i) The consequences of the amend-
ment that reduces or suspends future safe
harbor contributions;
(ii) The procedures for changing their
cash or deferred elections and, if applicable,
their employee contribution elections; and
(iii) The effective date of the amend-
ment.
*****
Par. 4. Section 1.401(m)– 0 is amended
by revising the entries for §1.401(m)–
3(h), (h)(1) and (h)(2), and adding entries
for §1.401(m)–3(h)(1)(i) and (h)(1)(ii), to
read as follows:
§1.401(m)– 0 Table of contents.
*****
§1.401(m)–3 Safe harbor requirements.
*****
(h) Permissible reduction or suspen-
sion of safe harbor contributions.
(1) General rule.
(i) Matching contributions.
(ii) Nonelective contributions.
(2) Supplemental notice.
*****
Par. 5. Section 1.401(m)–3 is amended
by:
1.
Revising the second sentence in para-
graph (f)(1).
2.Revisingparagraphs(f)(4)(i)and
(f)(4)(ii).
3.Revising paragraph (h).
The revisions read as follows:
§1.401(m)–3 Safe harbor requirements.
*****
(f)***(1)***Inaddition, except as
provided in paragraph (h) of this section
or in guidance of general applicability
published in the Internal Revenue Bulletin
(see §601.601(d)(2)(ii)(b) of this chapter),
a plan which includes provisions that sat-
isfy the rules of this section will not sat-
isfy the requirements of §1.401(m)–1(b) if
it is amended to change such provisions
for that plan year.***
*****
(4)***
(i) The plan would satisfy the require-
ments of paragraph (h) of this section,
treating the termination of the plan as a
reduction or suspension of safe harbor
contributions, other than the requirements
of paragraph (h)(1)(i)(A) or (h)(1)(ii)(A)
of this section (relating to the employer’s
financial condition and information in-
cluded in the initial notice for the plan
year) and paragraph (h)(1)(i)(D) or
(h)(1)(ii)(D) of this section (requiring that
employees have a reasonable opportunity
December 9, 2013Bulletin No. 2013–50
626

to change their cash or deferred elections
and, if applicable, employee contribution
elections); or
(ii) The plan termination is in connec-
tion with a transaction described in sec-
tion 410(b)(6)(C) or the employer incurs a
substantial business hardship, comparable
to a substantial business hardship de-
scribed in section 412(c).
*****
(h)Permissible reduction or suspension
of safe harbor contributions—(1)General
rule—(i)Matching contributions. A plan
that provides for safe harbor matching con-
tributions intended to satisfy the require-
ments of paragraph (c) of this section for a
plan year will not fail to satisfy the require-
ments of section 401(m)(2) merely because
the plan is amended during the plan year to
reduce or suspend safe harbor matching
contributions on future elective deferrals
(and, if applicable, employee contributions)
provided that—
(A) In the case of plan years beginning
on or after January 1, 2015, the employer
either—
(1) Is operating at an economic loss as
described in section 412(c)(2)(A) for the
plan year; or
(2) Includes in the notice described in
paragraph (e) of this section, a statement
that the plan may be amended during the
plan year to reduce or suspend safe harbor
matching contributions and that the reduc-
tion or suspension will not apply until at
least 30 days after all eligible employees
are provided notice of the reduction or
suspension;
(B) All eligible employees are pro-
vided a supplemental notice that satisfies
the requirements of paragraph (h)(2) of
this section;
(C) The reduction or suspension of safe
harbor matching contributions is effective
no earlier than the later of the date the
amendment is adopted or 30 days after
eligible employees are provided the sup-
plemental notice described in paragraph
(h)(2) of this section;
(D) Eligible employees are given a rea-
sonable opportunity (including a reason-
able period after receipt of the supplemen-
tal notice) prior to the reduction or
suspension of safe harbor matching con-
tributions to change their cash or deferred
elections and, if applicable, their em-
ployee contribution elections;
(E) The plan is amended to provide that the
ACP test will be satisfied for the entire plan
year in which the reduction or suspension oc-
curs using the current year testing method de-
scribed in §1.401(m)–2(a)(2)(ii); and
(F) The plan satisfies the requirements of
this section (other than this paragraph (h))
with respect to amounts deferred through
the effective date of the amendment.
(ii)Nonelective contributions. For plan
amendments adopted after May 18, 2009, a
plan that provides for safe harbor nonelec-
tive contributions intended to satisfy the re-
quirements of paragraph (b) of this section
will not fail to satisfy the requirements of
section 401(m)(2) for the plan year merely
because the plan is amended during the plan
year to reduce or suspend safe harbor non-
elective contributions provided that—
(A) The employer either—
(1) Is operating at an economic loss as
described in section 412(c)(2)(A) for the
plan year; or
(2) Includes in the notice described in
paragraph (e) of this section a statement
that the plan may be amended during the
plan year to reduce or suspend safe harbor
nonelective contributions and that the re-
duction or suspension will not apply until
at least 30 days after all eligible employ-
ees are provided notice of the reduction or
suspension;
(B) All eligible employees are pro-
vided a supplemental notice that satisfies
the requirements of paragraph (h)(2) of
this section;
(C) The reduction or suspension of safe
harbor nonelective contributions is effec-
tive no earlier than the later of the date the
amendment is adopted or 30 days after
eligible employees are provided the sup-
plemental notice described in paragraph
(h)(2) of this section;
(D) Eligible employees are given a rea-
sonable opportunity (including a reason-
able period after receipt of the supplemen-
tal notice) prior to the reduction or
suspension of nonelective contributions to
change their cash or deferred elections
and, if applicable, their employee contri-
bution elections;
(E) The plan is amended to provide that
the ACP test will be satisfied for the entire
plan year in which the reduction or suspen-
sion occurs using the current year testing
method described in §1.401(m)–2(a)(2)(ii);
and
(F) The plan satisfies the requirements
of this section (other than this paragraph
(h)) with respect to safe harbor compen-
sation paid through the effective date of
the amendment.
(2)Supplemental notice. The supplemen-
tal notice requirement of this paragraph
(h)(2) is satisfied if each eligible employee
is given a notice that satisfies the require-
ments of §1.401(k)–3(g)(2).
*****
Beth Tucker,
Deputy Commissioner for
Operations Support.
Approved June 17, 2013
Mark J. Mazur,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on November
14, 2013, 8:45 a.m., and published in the issue of the Federal
Register for November 15, 2013, 78 F.R. 68735)
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of December 2013. See Rev. Rul. 2013–26, page
628.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Bulletin No. 2013–50December 9, 2013
627

Section 482.—Allocation of
Income and Deductions
Among Taxpayers
Federal short-term, mid-term, and long-term
rates are set forth for the month of December 2013.
See Rev. Rul. 2013–26, page 628.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term
rates are set forth for the month of December 2013.
See Rev. Rul. 2013–26, page 628.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 1274.—
Determination of Issue
Price in the Case of
Certain Debt Instruments
Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Rev. Rul. 2013–26
This revenue ruling provides various pre-
scribed rates for federal income tax pur-
poses for December 2013 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable federal
rates (AFR) for the current month for pur-
poses of section 1274(d) of the Internal Rev-
enue 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). Ta-
ble 3 sets forth the adjusted federal long-
term rate and the long-term tax-exempt rate
described in section 382(f). Table 4 contains
the appropriate percentages for determining
the low-income housing credit described in
section 42(b)(1) for buildings placed in ser-
vice during the current month. However,
under section 42(b)(2), the applicable per-
centage for non-federally subsidized new
buildings placed in service after July 30,
2008, with respect to housing credit dollar
amount allocations made before January 1,
2014, shall not be less than 9%. Table 5
contains the federal rate for determining the
present value of an annuity, an interest for
life or for a term of years, or a remainder or
a reversionary interest for purposes of sec-
tion 7520. Finally, Table 6 contains the
2014 interest rate for sections 846 and 807.
REV. RUL. 2013–26 TABLE 1
Applicable Federal Rates (AFR) for December 2013
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR.25%.25%.25%.25%
110% AFR.28%.28%.28%.28%
120% AFR.30%.30%.30%.30%
130% AFR.33%.33%.33%.33%
Mid-term
AFR1.65%1.64%1.64%1.63%
110% AFR1.81%1.80%1.80%1.79%
120% AFR1.98%1.97%1.97%1.96%
130% AFR2.14%2.13%2.12%2.12%
150% AFR2.48%2.46%2.45%2.45%
175% AFR2.89%2.87%2.86%2.85%
Long-term
AFR3.32%3.29%3.28%3.27%
110% AFR3.65%3.62%3.60%3.59%
120% AFR3.99%3.95%3.93%3.92%
130% AFR4.33%4.28%4.26%4.24%
December 9, 2013Bulletin No. 2013–50
628

Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 3402.—Income
Tax Collected at Source
Dividends and other distributions made by an
Alaska Native Corporation to its shareholders are
eligible for voluntary withholding under section
3402(p)(3)(B) of the Internal Revenue Code (Code)
and § 31.3402(p)-1T of the Employment Tax Regu-
lations. See Notice 2013–77 on page 632.
Section 3402.—Income
Tax Collected at Source
Temporary and proposed regulations under sec-
tion 3402(p)(3) relating to voluntary withholding
agreements allow the Secretary to issue guidance in
the Internal Revenue Bulletin to describe payments
for which the Secretary finds that income tax with-
holding under a voluntary withholding agreement
would be appropriate. The proposed regulations also
clarify that existing regulations under section
3402(p) apply to voluntary withholding agreements
between employers and employees. See T.D. 9646
on page 630 and REG–146620 –13 on page 674.
REV. RUL. 2013–26 TABLE 2
Adjusted AFR for December 2013
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR.25%.25%.25%.25%
Mid-term adjusted AFR1.57%1.56%1.56%1.55%
Long-term adjusted AFR3.32%3.29%3.28%3.27%
REV. RUL. 2013–26 TABLE 3
Rates Under Section 382 for December 2013
Adjusted federal long-term rate for the current month3.32%
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.)3.50%
REV. RUL. 2013–26 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for December 2013
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July
30, 2008, with respect to housing credit dollar amount allocations made before January 1, 2014, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.57%
Appropriate percentage for the 30% present value low-income housing credit3.25%
REV. RUL. 2013–26 TABLE 5
Rate Under Section 7520 for December 2013
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 interest2.0%
REV. RUL. 2013–26 TABLE 6
Rates Under Sections 846 and 807
Applicable rate of interest for 2014 for purposes of sections 846 and 8071.79%
Bulletin No. 2013–50December 9, 2013
629

Section 3402.—Income
Tax Collected at Source
T.D. 9646
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 31
Authority for Voluntary
Withholding on Other
Payments
AGENCY:Internal Revenue Service (IRS),
Treasury.
ACTION: Temporary regulations.
SUMMARY:This document contains tem-
porary regulations under the Internal Reve-
nue Code (Code) relating to voluntary with-
holding agreements. The regulations allow
the Secretary to issue guidance in the Inter-
nal Revenue Bulletin to describe payments
for which the Secretary finds that income
tax withholding under a voluntary withhold-
ing agreement would be appropriate. The
text of these temporary regulations also
serves as the text of the proposed regula-
tions set forth in the notice of proposed
rulemaking on this subject in this issue of
the Bulletin. These temporary regulations
affect persons making and persons receiving
payments for which the IRS issues subse-
quent guidance authorizing the parties to
enter into voluntary withholding agreements.
DATES:Effective Date: These regula-
tions are effective on November 27, 2013.
Applicability date: For date of applica-
bility, see §31.3402(p)–1T(d).
FOR FURTHER INFORMATION
CONTACT:Linda L. Conway-Hataloski at
(202) 317-6798 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 3402(p) allows for voluntary
income tax withholding agreements. Sec-
tion 3402(p)(3) authorizes the Secretary to
provide regulations for withholding from
(A) remuneration for services performed
by an employee for the employee’s em-
ployer which does not constitute wages,
and (B) from any other payment with re-
spect to which the Secretary finds that
withholding would be appropriate, if the
employer and employee, or the person
making and the person receiving such
other type of payment, agree to such with-
holding. Section 3402(p)(3) also autho-
rizes the Secretary to prescribe in regula-
tions the form and manner of such
agreement. Section 31.3402(p)–1 of the
Employment Tax Regulations describes
how an employer and an employee may
enter into an income tax withholding
agreement under section 3402(p) for
amounts that are excepted from the defi-
nition of wages in section 3401(a).
Explanation of Provisions
These temporary regulations under sec-
tion 31.3402(p)–1T allow the Secretary to
describe other payments subject to volun-
tary withholding agreements in guidance to
be published in the Internal Revenue Bulle-
tin (IRB). The temporary regulations also
provide that the IRB guidance will set forth
requirements regarding the form and dura-
tion of the voluntary withholding agreement
specific to the type of payment from which
withholding is authorized.
Expanding the use of voluntary with-
holding agreements to payments designated
by the Secretary as eligible for voluntary
withholding will permit taxpayers to use the
withholding regime (rather than the esti-
mated tax payment process) to meet their
tax payment obligations on a timely basis,
minimize the risk of underpayment of taxes,
and achieve administrative simplification
for taxpayers and the IRS.
Special Analyses
It has been determined that this Trea-
sury decision is not a significant regula-
tory action as defined in Executive Order
12866, as supplemented by Executive Or-
der 13563. Therefore, a regulatory assess-
ment is not required. It also has been
determined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C.
chapter 5) does not apply to these regula-
tions. For the applicability of the Regula-
tory Flexibility Act (5 U.S.C. chapter 6),
refer to the cross-reference notice of pro-
posed rulemaking published elsewhere in
this Bulletin. Pursuant to section 7805(f)
of the Code, these regulations have been
submitted to the Chief Counsel for Advo-
cacy of the Small Business Administra-
tion for comment on their impact on small
business.
Drafting Information
The principal author of these regulations
is Linda L. Conway-Hataloski, Office of
Associate Chief Counsel (Tax Exempt and
Government Entities). However, other per-
sonnel from the IRS and Treasury Depart-
ment participated in their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 31 is
amended as follows:
PART 31—EMPLOYMENT TAXES
AND COLLECTION OF INCOME
TAX AT SOURCE
Paragraph 1. The authority citation for
part 31 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805***
Par. 2. §31.3402(p)–1T is added to
read as follows:
§31.3402(p)–1T Voluntary Withholding
Agreements (temporary).
(a)–(b) [Reserved] For further guid-
ance, see §31.3402(p)–1(a) and (b).
(c)Other payments. The Secretary may
issue guidance by publication in the Inter-
nal Revenue Bulletin (IRB) (which will be
available atwww.IRS.gov) describing
other payments for which withholding un-
der a voluntary withholding agreement
would be appropriate and authorizing pay-
ors to agree to withhold income tax on
such payments if requested by the payee.
Requirements regarding the form and du-
ration of voluntary withholding agree-
ments authorized by this paragraph (c)
will be provided in the IRB guidance is-
sued regarding specific types of payments.
(d)Effective/applicability date. (1)
This section applies on and after November
27, 2013.
December 9, 2013Bulletin No. 2013–50
630

(2) The applicability of this section ex-
pires on November 25, 2016.
John Dalrymple,
Deputy Commissioner
for Services and Enforcement.
Approved November 21, 2013
Mark J. Mazur,
Assistant Secretary of the Treasury
(Tax Policy).
(Filed by the Office of the Federal Register on November
27, 2013, 8:45 a.m., and published in the issue of the Federal
Register for November 29, 2013, 78 F.R. 71476)
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Section 7872.—Treatment
of Loans with Below-Market
Interest Rates
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
December 2013. See Rev. Rul. 2013–26, page 628.
Bulletin No. 2013–50December 9, 2013
631

Part III. Administrative, Procedural, and Miscellaneous
Voluntary Withholding on
Dividends and Other
Distributions by Alaska
Native Corporations
Notice 2013–77
PURPOSE
Under this Notice, dividends and other
distributions made by an Alaska Native
Corporation to its shareholders are eligi-
ble for voluntary withholding under sec-
tion 3402(p)(3)(B) of the Internal Reve-
nue Code (Code) and § 31.3402(p)–1T of
the Employment Tax Regulations.
BACKGROUND
The Alaska Native Claims Settlement
Act (ANCSA), 43 U.S.C. § 1601,et seq,
was enacted as a means to resolve the issue
of aboriginal land claims in Alaska.See43
U.S.C. § 1601. The ANCSA required the
division of Alaska into geographic regions
and the incorporation of a Regional Corpo-
ration for each region. 43 U.S.C. §§ 1606(a)
and (d). The ANCSA also authorized the
incorporation of other corporations, includ-
ing Village Corporations, Urban Corpora-
tions, and Group Corporations. 43 U.S.C.
§ 1607. Alaska Native Corporation (ANC)
means any Regional, Village, Urban, or
Group Corporation. 43 U.S.C. § 1602(m).
ANCs are incorporated under the laws of
Alaska to conduct business for profit, and
are expressly authorized to promote the
health, education, and welfare of their share-
holders. 43 U.S.C. §§ 1606(d) and (r). To
achieve these goals, the ANCSA authorizes
the issuance of stock in ANCs to Natives as
defined in 43 U.S.C. § 1602(b). The
ANCSA permits the Native shareholders to
receive dividends and other distributions
from the ANCs. 43 U.S.C. §§ 1606(g) and
(h)(1)(A)(ii).
Section 3402(p) of the Code allows for
voluntary income tax withholding agree-
ments in certain circumstances. Under sec-
tion 3402(p)(3)(B), the Secretary may pre-
scribe regulations to allow income tax
withholding from any payment which the
Secretary finds that withholding would be
appropriate if the person making and the
person receiving the payment agree to the
withholding. The agreement must be in the
form and manner that the Secretary pre-
scribes. For purposes of the income tax
withholding provisions and the related pro-
cedural provisions in subtitle F of the Code,
payments made during the period for which
a voluntary withholding agreement is in ef-
fect are treated as if they were wages paid
by an employer to an employee.
The Internal Revenue Service (IRS)
has become aware that ANCs and their
shareholders may benefit from the ability
to enter into voluntary withholding agree-
ments. Specifically, expanding the use of
voluntary withholding agreements to div-
idends and other distributions made by an
ANC to its shareholders will permit the
shareholders to use the withholding re-
gime (rather than the estimated tax pay-
ment process) to meet their tax payment
obligations on a timely basis, will mini-
mize the risk of underpayment of taxes,
and will achieve administrative simplifi-
cation for the shareholders and the IRS.
Section 31.3402(p)–1T(c), which is ef-
fective on November 27, 2013, allows the
Secretary to describe payments subject to
voluntary withholding agreements in guid-
ance to be published in the Internal Revenue
Bulletin (IRB). The temporary regulations
also provide that the requirements regarding
the form and duration of the authorized vol-
untary withholding agreements will be pro-
vided in the IRB guidance issued regarding
specific types of payments. This Notice is
guidance meeting the requirements of
§ 31.3402(p)–1T(c).
ANC PAYMENTS SUBJECT TO
VOLUNTARY WITHHOLDING
An ANC and any shareholder of the ANC
may enter into an agreement for voluntary
withholding under section 3402(p)(3)(B).
Thus, dividends and other distributions paid
by an ANC to a shareholder will be subject to
voluntary income tax withholding undersec-
tion 3402(p)(3)(B) if the shareholder re-
quests the withholding and the ANC agrees
to withhold.
The IRS designates Form W– 4V,Vol-
untary Withholding Request, as the form a
shareholder of an ANC should use to re-
quest income tax withholding from divi-
dends or other distributions made to the
shareholder by an ANC. Accordingly, a
shareholder of an ANC who desires to enter
into a voluntary withholding agreement un-
der section 3402(p)(3)(B) should furnish the
ANC with a completed Form W– 4V. The
shareholder should select the applicable per-
centage of withholding from those specified
on line 6 of the Form W– 4V (currently, 7
percent, 10 percent, 15 percent, or 25 percent).
The furnishing of a completed Form W– 4V
constitutes a request for withholding.
The IRS intends to revise Form W– 4V to
specifically reflect the withholding authorized
by this Notice. In the interim, shareholders of
an ANC may use the current Form W– 4V
available atwww.irs.govannotated as appro-
priate, or any other written instrument contain-
ing the necessary information.
No request for withholding under sec-
tion 3402(p)(3)(B) is effective as an
agreement between an ANC and its share-
holder until the ANC indicates to the
shareholder that it accepts the request,
whether by providing a written notice of
acceptance or by commencing withhold-
ing. Under section 3403 of the Code, the
ANC will be liable for any tax it is re-
quired to deduct and withhold pursuant to
a voluntary withholding agreement. An
agreement under section 3402(p)(3)(B)
applies for such period as the ANC and its
shareholder mutually agree upon or until
either the ANC or the shareholder termi-
nate the agreement by furnishing a signed
written notice to the other. For purposes of
the preceding sentence, a shareholder
should submit a revised Form W– 4V to
the ANC to effectuate a termination.
EFFECTIVE DATE
This Notice applies on and after No-
vember 27, 2013.
DRAFTING INFORMATION
The principal author of this Notice is
Linda L. Conway-Hataloski of the Office
of Division Counsel/Associate Chief
Counsel (Tax Exempt & Government En-
tities). For questions regarding this No-
tice, contact Linda L. Conway-Hataloski
at (202) 317-6798 (not a toll-free call).
December 9, 2013Bulletin No. 2013–50
632

Proposed Revision of
Procedures for Requesting
Competent Authority
Assistance Under Tax
Treaties
Notice 2013–78
PURPOSE
This notice proposes a revenue procedure
that would update and supersede Rev. Proc.
2006 –54, 2006 –2 C.B. 1035. The proposed
revenue procedure would provide guidance on
requesting assistance from the U.S. competent
authority, acting through the Advance Pricing
and Mutual Agreement program and the
Treaty Assistance and Interpretation Team,
under the provisions of U.S. tax treaties. It
would also provide guidance on determina-
tions the U.S. competent authority may make
on competent authority issues.
Theproposedrevenueprocedure
would substantially restate Rev. Proc.
2006 –54 to improve clarity, readability,
and organization. The proposed revenue
procedure also would reflect structural
changes undertaken by the IRS since
2006, including the establishment of the
Large Business & International Division,
which currently includes the office of the
U.S. competent authority, and of separate
offices under the U.S. competent authority
to handle taxpayer requests for different
types of competent authority assistance.
Additionally, the proposed revenue
procedure would effect a limited number
of significant substantive changes. These
changes may be summarized as follows:
Section of Proposed
Update to Rev. Proc.
2006–54
Nature of Addition or Changes
2.02Clarifies that competent authority issues may arise as a result of taxpayer-initiated positions.
2.05 and 2.06Makes clear that the offices of the U.S. competent authority are available, whether or not in the course
of the mutual agreement process, for informal consultations on competent authority-related issues, in-
cluding informal consultations regarding the steps necessary to achieve greater certainty that a foreign
tax paid, or to be paid, will qualify as a compulsory payment for foreign tax credit purposes.
2.07Recognizes that a mutual agreement case may arise where the U.S. competent authority notifies a for-
eign competent authority on a U.S.-initiated case raising competent authority issues. Further recognizes
that the U.S. competent authority can expand the scope of a mutual agreement case to include additional
treaty countries, competent authority issues, or taxable years.
2.10Elaborates on potential interactions of requests for competent authority assistance and advance pricing
agreements.
3.02Provides new pre-filing procedures applicable to mutual agreement cases, including mandatory submis-
sion of a pre-filing memorandum in cases raising certain issues.
3.04Clarifies that a request for competent authority assistance generally will not be accepted if barred by tax
treaty provisions imposing time limits for seeking assistance.
3.05(1)Establishes an appendix listing standard specifications for the content of a request for competent author-
ity assistance in various types of cases.
3.07Specifies that the U.S. competent authority accepts requests for assistance with respect to certain foreign
pension plan determinations.
3.08Provides for e-mail communications between the U.S. competent authority and a taxpayer’s representa-
tive pursuant to a memorandum of understanding executed by the taxpayer.
4Provides new streamlined procedures for invoking the accelerated competent authority procedure without
consent of an office conducting examinations.
5.01Generally subjects small case requests to the same requirements as other requests, subject to case-by-
case minimization of administrative burdens.
5.02Increases dollar thresholds for small case qualification to $5,000,000 for a corporation or partnership and
$1,000,000 for others.
6.01Clarifies procedures for notification of receipt of a request for competent authority assistance.
6.02(2)Specifies an example of an unreasonable taxpayer condition to acceptance of a competent authority reso-
lution, resulting in denial of assistance.
6.02(6)(b) – (d)
and 6.02(8) – (12)
States additional bases for denying U.S. competent authority assistance.
7Describes various aspects of U.S. competent authority consultations and other actions once a request for
assistance is filed, including consultation requirements in treaty limitation-on-benefits provisions, the
possibility of requiring withdrawal of a U.S.-initiated adjustment, and taxpayer requests to make a joint
presentation to the U.S. and foreign competent authorities.
8.01Specifies that the Simultaneous Appeals Procedure is the primary means for obtaining IRS Appeals and
U.S. competent authority review of the same issue.
Bulletin No. 2013–50December 9, 2013
633

The IRS and the Treasury Department
request comments on this proposed reve-
nue procedure. Comments may be submit-
ted in writing on or before March 10,
2014. Comments should be submitted to
InternalRevenueService,CC:PA:
LPD:PR (Notice 2013–78), Room 5205,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044, or electronically
toNotice.Comments@irscounsel.treas.
gov. Please include ”Notice 2013–78” in
the subject line of any electronic commu-
nications. Alternatively, comments may
be hand delivered between the hours of
8:00 a.m. and 4:00 p.m. Monday to Friday
to CC:PA:LPD:PR (Notice 2013–78),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Ave., NW, Washing-
ton, DC. All comments will be available
for public inspection and copying.
Following the issuance of the revenue
procedure proposed in this notice, the IRS
intends to update Rev. Proc. 2006 –23,
2006 –1 C.B. 900, which provides similar
guidance in obtaining competent authority
assistance with respect to the U.S. territo-
ries. The update to Rev. Proc. 2006 –23
will be generally consistent with the pro-
visions of such final revenue procedure.
The procedures for requesting compe-
tent authority assistance under tax treaties
are proposed to be revised as follows:
PROPOSED REVENUE PROCEDURE
Procedures for Requesting Competent Authority Assistance Under Tax Treaties
26 CFR 601.201: Rulings and determination letters.
Rev. Proc. [2014 –XX]
SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION.................................................
SECTION 2. PURPOSE, BACKGROUND, SCOPE, AND GENERAL APPLICATION................................
SECTION 3. PROCEDURES FOR REQUESTING ASSISTANCE FROM THE U.S. COMPETENT AUTHORITY.........
SECTION 4. ACCELERATED COMPETENT AUTHORITY PROCEDURE.........................................
SECTION 5. SMALL CASE MAP REQUESTS................................................................
SECTION 6. NOTIFICATION OF RECEIPT AND DENIAL OF ASSISTANCE.....................................
SECTION 7. CONSULTATIONS AND OTHER ACTIONS BY THE U.S. COMPETENT AUTHORITY.................
SECTION 8. SIMULTANEOUS APPEALS PROCEDURE.......................................................
SECTION 9.INTERACTION AND COORDINATION WITH OTHER ADMINISTRATIVE AND JUDICIAL PROCEEDINGS .
SECTION 10. RESULTS OF MAP CASE.....................................................................
SECTION 11. MAP REPATRIATION........................................................................
SECTION 12. ARBITRATION..............................................................................
SECTION 13. PROTECTIVE CLAIMS........................................................................
SECTION 14. TREATY NOTIFICATIONS....................................................................
SECTION 15. REQUESTS FOR RULINGS....................................................................
SECTION 16. USER FEES.................................................................................
SECTION 17. EFFECT ON OTHER DOCUMENTS............................................................
SECTION 18. EFFECTIVE DATE...........................................................................
SECTION 19. PAPERWORK REDUCTION ACT..............................................................
SECTION 20. DRAFTING INFORMATION...................................................................
APPENDIX..............................................................................................
8.02Limits the time frame for invoking Simultaneous Appeals Procedure review to within 60 days after
notification of acceptance of request for assistance.
9.01Provides that the U.S. competent authority will not accept a request for assistance if the taxpayer
has entered into a prior resolution with the IRS office conducting the taxpayer’s examination unless
the U.S. competent authority agreed in writing to the prior resolution.
9.02Provides, subject to a limited exception, that the U.S. competent authority will not accept a request
for assistance if the taxpayer seeks IRS Appeals review of a competent authority issue.
9.03(1)Clarifies the procedures applicable to accepting, or continuing to consider, a request for U.S. com-
petent authority assistance when a matter is pending in litigation.
10.01 and 10.04Describes conditions for finality of resolutions reached by the U.S. competent authority and discusses
notification to the taxpayer where no resolution is reached with respect to a foreign-initiated adjustment.
11Restates and revises U.S. competent authority procedures with respect to repatriation payments made in
the mutual agreement context.
12Describes basic procedures applicable where a tax treaty contains a provision for mandatory arbitration.
14Provides procedures applicable to required notifications under some treaties that a taxpayer has requested
competent authority assistance of the other treaty partner.
16.02Reflects that the amount of the user fee for requests for discretionary relief with respect to limitation on bene-
fits has been increased to $27,500.SeeRev. Proc. 2013–1, 2013–1 I.R.B. 1.
December 9, 2013Bulletin No. 2013–50
634

SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION
.01Definitions.For purposes of this revenue procedure, the following terms have the meanings set forth in this section.
ACAPAccelerated competent authority procedure (seesection 4)
ACAP requestA request to include ACAP years in a MAP case
ACAP yearsTaxable years covered by an ACAP request or eligible for ACAP
Ancillary issuesSubsidiary issues eligible for coverage by a MAP resolution, including MAP repatriation (see
section 11), interest on refunds and deficiencies, penalties with respect to U.S.-initiated adjust-
ments, and the determination of whether a payment is compulsory for foreign tax credit pur-
poses as provided in Treas. Reg. §1.901–2(e)(5)
APAAn advance pricing agreement within the meaning of Rev. Proc. 2014–YY
APA processThe steps involved in the process of reaching an APA, as described in Rev. Proc. 2014–YY
APA requestA request for an APA filed under Rev. Proc. 2014–YY
APMAThe Advance Pricing and Mutual Agreement Program, a representative office of the U.S. com-
petent authority and one of the divisions of TPO
ApplicantA taxpayer making a request for discretionary LOB relief
Arbitration treatyA U.S. tax treaty in which the mutual agreement procedure article includes a provision for man-
datory arbitration of certain MAP cases (seesection 12)
Bilateral APAA bilateral APA as defined in Rev. Proc. 2014–YY
CodeThe Internal Revenue Code of 1986 (26 U.S.C.), as amended
Controlled groupThe group of controlled taxpayers (as that term is defined in Treas. Reg. §1.482–1(i)) of which
the taxpayer filing the MAP request is a member
Discretionary LOB
relief
A determination issued by the U.S. competent authority extending treaty benefits to a taxpayer
that fails to meet any of the objective tests of an LOB article of a U.S. tax treaty
Examination resolutionA resolution with IRS Examination on a U.S.-initiated adjustment that is memorialized in a Fast
Track Settlement Session Report, a Form 870 waiver, a Form 870-AD offer, a closing agree-
ment, or any other similar agreement
Fast Track SettlementThe program set forth in Rev. Proc. 2003–40, 2003–1 C.B. 1044, or successor guidance
Foreign competent au-
thority
The competent authority of a treaty country
Foreign pension fundA pension fund that is a resident of a treaty country
Foreign-initiated adjust-
ment
A proposed or final adjustment to a filed tax return made by the tax authority of a treaty country
Global trading arrange-
ment
Any arrangement involving multiple associated enterprises or business unit(s) of an enterprise
that operate in more than one country and that trade or deal in securities and/or other financial
products, either on their own behalf or on behalf of clients. Global trading arrangements may
encompass functions ancillary to the foregoing activities
Intangible development
arrangement
Any arrangement for sharing the costs and risks of developing intangibles, including a cost shar-
ing arrangement as defined in Treas. Reg. §1.482–7, a qualified cost sharing arrangement as de-
fined in Treas. Reg. §1.482–7A (collectively, a “CSA”), and an arrangement (other than a CSA)
for sharing the costs and risks of developing intangibles to which the consideration of the princi-
ples, methods, comparability, and reliability considerations set forth in Treas. Reg. §1.482–7 are
relevant in determining the best method, under Treas. Reg. §1.482–4(g) or Treas. Reg. §1.482–
9(m)(3), as appropriately adjusted in light of the differences in facts and circumstances between
such an arrangement and a CSA.See alsoTreas. Reg. §1.482–1(b)(2)(iii)
IRMInternal Revenue Manual
IRSInternal Revenue Service
IRS ExaminationThefunction(s) within the IRS responsible for examining federal tax and information returns and
ascertaining the correctness of any return for purposes of determining the tax liability of taxpayers
LB&ILarge Business & International Division of the IRS
LOBLimitation on benefits
Bulletin No. 2013–50December 9, 2013
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MAPActions taken by the U.S. competent authority and consultations between the U.S. and foreign com-
petent authorities under U.S. tax treaties, principally under the mutual agreement procedure article
MAP caseA case initiated by a MAP request or by the U.S. competent authority involving one or more MAP
issues in a given MAP year or set of years
MAP issueAn issue that can be resolved by the U.S. competent authority, principally under the mutual agree-
ment procedure article of a U.S. tax treaty
MAP processAll steps in the process of reaching a MAP resolution, including steps to comply with applicable
pre-filing requirements
MAP repatriationThe treatment of repatriation payments pursuant to a MAP resolution (seesection 11)
MAP requestA request for assistance of the U.S. competent authority filed under this revenue procedure
MAP resolutionThe resolution of MAP issues constituting a MAP case
MAP yearA taxable year for which a tax return has been filed that is not an ACAP year and in which a MAP
issue has arisen that is the subject of a MAP case
Multilateral APAA multilateral APA as defined in Rev. Proc. 2014–YY
Non-U.S.-initiated
action
A foreign-initiated adjustment or a taxpayer-initiated position
Pre-filing conferenceA conference held with the U.S. competent authority before a MAP request is filed
Pre-filing memorandumAmemorandum or similar paper submitted to the U.S. competent authority before a MAP request is filed
Pre-filing requirementsThe requirements regarding pre-filing memoranda and pre-filing conferences
Primary adjustmentAn adjustment falling under the associated enterprises article of a U.S. tax treaty or an analogous adjust-
ment made pursuant to a taxpayer-initiated position that is the subject of a MAP case
Protective claimA notification to the U.S. competent authority described by section 13.02(1)
RegulationsU.S. Treasury regulations promulgated under the Code
Repatriation paymentA payment (within the meaning of section 4.01 of Rev. Proc. 99–32, 1999–2 C.B. 296) or a prepayment
offset (within the meaning of section 4.02 of Rev. Proc. 99–32) made with respect to and not exceeding
the amount of a primary adjustment
SAP reviewThe review of a MAP issue undertaken by IRS Appeals for the purpose of making a recommendation to
the U.S. competent authority under the Simultaneous Appeals Procedure (seesection 8)
Session reportThe Fast Track Settlement Session Report within the meaning of the term set forth in Rev. Proc. 2003–40,
2003–1 C.B. 1044, or successor guidance
Small case MAP requestA MAP request involving a U.S.- or foreign-initiated adjustment that falls below the dollar thresholds set
forth in section 5
TAITThe Treaty Assistance and Interpretation Team, a representative office of the U.S. competent authority,
which reports directly to the Assistant Deputy Commissioner (International)
TaxpayerA U.S. person, as defined in section 7701(a)(30) of the Code, or a non-U.S. person eligible to seek com-
petent authority assistance when permitted by the applicable U.S. tax treaty
Taxpayer-initiated
position
A position taken by a taxpayer (not in response to a proposed or actual adjustment by the IRS or a similar
action by a foreign tax authority) with respect to a tax liability in the United States or in a treaty country
that directly or indirectly results in double taxation
TPOTransfer Pricing Operations, which reports to the Deputy Commissioner (International), LB&I
Treaty countryA country other than the United States that has a U.S. tax treaty in force
Treaty notificationThe notification by a taxpayer to a competent authority, required under certain U.S. tax treaties, that a re-
quest for competent authority assistance has been made to the other competent authority, in particular such
a notification submitted to the U.S. competent authority in the manner and circumstances set forth in sec-
tion 14
U.S. competent authorityThe Deputy Commissioner (International), LB&I, the Assistant Deputy Commissioner (International), and
each other IRS official performing competent authority functions pursuant to applicable delegation orders
U.S. tax treatyA convention governing income, estate, or gift taxes to which the United States is a party and that has
entered into force, together with its implementing protocols, exchanges of diplomatic notes, memoranda of
understanding, and competent authority arrangements
U.S.-initiated adjustmentA proposed or final adjustment made by the IRS to a tax return filed by a taxpayer
December 9, 2013Bulletin No. 2013–50
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.02Section References. Unless indi-
cated by context or otherwise, section ref-
erences are to the sections of this revenue
procedure (including the appendix).
.03Deadline References. If a deadline
under this revenue procedure falls on a
Saturday, Sunday, or a legal holiday in the
District of Columbia, the deadline is ex-
tended to the next succeeding day that is
not a Saturday, Sunday, or a legal holiday
in the District of Columbia.
SECTION 2. PURPOSE,
BACKGROUND, SCOPE, AND
GENERAL APPLICATION
.01Purpose. This revenue procedure
provides guidance on filing MAP requests
and guidance on determinations the U.S.
competent authority may make on MAP
issues. This revenue procedure updates
and supersedes Rev. Proc. 2006 –54,
2006 –2 C.B. 1035.
.02Background and Scope. U.S. tax
treaties, principally through the mutual
agreement procedure article, permit tax-
payers to request the assistance of the U.S.
competent authority in alleviating double
taxation or taxation otherwise not in ac-
cordance with such treaties. For example,
U.S. tax treaties generally permit taxpay-
ers to request assistance in order to relieve
economic double taxation arising from an
allocation under section 482 of the Code
or an equivalent provision under the laws
of a treaty country. U.S. tax treaties also
authorize the U.S. and foreign competent
authorities to consult each other to resolve
other MAP issues. MAP issues typically
arise as a result of U.S.- or foreign-
initiated adjustments. MAP issues can
also arise as a consequence of taxpayer-
initiated positions. For procedures for re-
questing assistance of the U.S. competent
authority when a taxpayer is or may be
subject to inconsistent tax treatment by
the IRS and a U.S. possession tax agency,
seeRev. Proc. 2006 –23, 2006 –1 C.B. 900
(or successor guidance).
.03The U.S. Competent Authority. The
DeputyCommissioner(International),
LB&I, is the U.S. competent authority. As
such, the Deputy Commissioner (Interna-
tional) has the authority to apply U.S. tax
treaties. The Deputy Commissioner (In-
ternational) also has the authority to inter-
pret the provisions of U.S. tax treaties, but
only with the concurrence of the Associ-
ate Chief Counsel (International). The
same authority has been delegated to the
Assistant Deputy Commissioner (Interna-
tional), LB&I.SeeDelegation Order 4 –12
(Rev. 2), IRM 1.2.43. Aspects of this au-
thority have been delegated to the direc-
tors of the TPO and APMA.
.04Roles of APMA and TAIT.In general,
the U.S. competent authority endeavors to
resolve MAP issues in a manner that secures
the appropriate tax bases of the United
States and its treaty partners, prevents fiscal
evasion, and is otherwise consistent with
sound tax administration. The U.S. compe-
tent authority comprises APMA and TAIT.
APMA has primary responsibility for cases
arising under the business profits and asso-
ciated enterprises articles of U.S. income tax
treaties. TAIT has primary responsibility for
cases arising under all other articles of U.S.
income tax treaties, including, but not lim-
ited to, articles concerning residence, divi-
dends, interest, royalties, income from em-
ployment,socialsecurity,annuities,
pensions and pension funds, other income,
and limitation on benefits. TAIT also han-
dles cases arising under U.S. estate and gift
tax treaties. APMA and TAIT each can con-
sider cases arising under the permanent es-
tablishment articles of U.S. income tax trea-
ties. Regardless of the specific treaty article
or MAP issue that may be presented,
APMA and TAIT will coordinate and col-
laborate as appropriate on any given case.
.05Informal Advice Generally.As ap-
propriate, APMA and TAIT will provide
oral,informaladvicetotaxpayers,
whether or not in the course of the MAP
process, on general matters concerning
MAP issues, including whether a MAP
issue may exist. Any such informal advice
is advisory and is not binding on the IRS.
.06Informal Consultation on Noncom-
pulsory Payments for Foreign Tax Credit
Purposes. In the course of the MAP process
or outside the MAP process, the issue of
whether the taxpayer has exhausted all ef-
fective and practical remedies to reduce its
liability under foreign law for tax (includ-
ing, in appropriate cases, a request for com-
petent authority assistance) within the
meaning of Treas. Reg. §1.901–2(e)(5) and
Rev. Rul. 92–75, 1992–2 C.B. 197, may be
the subject of informal consultation with the
U.S. competent authority. Taxpayers and
their advisors must ultimately exercise their
independent judgment in developing a posi-
tion on the extent to which effective and
practical remedies have been exhausted in
light of their particular facts and circum-
stances. To assist in consideration of this
issue, the U.S. competent authority, through
the offices of APMA and TAIT, is available
to consult on these matters and, when ap-
propriate, may provide oral, informal advice
regarding necessary next steps. Any such
informal advice is advisory and is not bind-
ing on the IRS. Further, when appropriate,
APMA and TAIT will communicate with
IRS Examination regarding these matters to
ensure consistent and coordinated treatment.
It is intended that, through such consultation
processes, taxpayers and the U.S. competent
authority can achieve greater insight into mat-
ters pertaining to the application and enforce-
ment of foreign tax laws. Such consultation
processes may also inform the U.S. competent
authority in addressing these matters as ancil-
lary issues in a MAP resolution.
.07General Requirements for MAP Re-
quests. The U.S. competent authority will
consider the factors set forth in section 6 in
determining whether to provide the assis-
tance sought by the taxpayer in its MAP
request. In no event will the U.S. competent
authority provide assistance to the taxpayer
unless and until: (1) the taxpayer has met the
pre-filing requirements set forth in section
3.02, as applicable; (2) the MAP request as
initially filed is complete, as described in
section 3.05; and (3) the taxpayer has paid
the correct user fee, if required. Where they
exist, specific requirements regarding MAP
requests set forth in U.S. tax treaties take
precedence over the provisions of this rev-
enue procedure.
.08Scope of MAP Cases. Except as
otherwise provided by this revenue proce-
dure, law or treaty, the U.S. competent
authority will provide assistance with re-
spect to MAP issues and treaty countries
identified in a taxpayer’s MAP request.
However, because the U.S. competent au-
thority has a strong interest in resolving
all potential MAP issues in a timely man-
ner, APMA or TAIT may seek to initiate
a MAP case in the absence of a MAP
request or may require that the scope of a
MAP case be expanded. Examples of such
an expansion include adding treaty coun-
tries or MAP issues to the scope of the
MAP case and extending the MAP case to
include ACAP years (seesection 4). Rec-
ognizing that foreign competent authori-
Bulletin No. 2013–50December 9, 2013
637

ties may have an interest in expediting
bilateral or multilateral resolution of MAP
issues, the U.S. competent authority under
applicable exchange-of-information pro-
visions of U.S. tax treaties may also notify
foreign competent authorities of MAP
cases that could arise out of anticipated
U.S.-initiated adjustments. In such cases,
the U.S. competent authority will also no-
tify the affected taxpayers.
.09Closed Cases. A case previously
closed after examination will not be re-
opened in order to make an adjustment un-
favorable to the taxpayer except in the pres-
ence of one of the circumstances described
in Rev. Proc. 2005–32, 2005–1 C.B. 1206
(providing procedures for reopening cases if
fraud, substantial error, or certain other cir-
cumstances are present).
.10Coordination of MAP and APA
Processes. APAs and MAP resolutions
are two interconnected means by which
taxpayers can manage and address trans-
fer pricing and other cross-border tax is-
sues. In recognition of these connections,
the U.S. competent authority seeks MAP
resolutions and APAs that achieve sub-
stantive and procedural consistency and
coordination in their coverage and appli-
cation. In particular, the U.S. competent
authority may seek to roll forward a MAP
resolution to ACAP years where it is fea-
sible, practicable, and in the interest of
sound tax administration to do so. Further,
in appropriate cases, the U.S. competent
authority will encourage taxpayers to ex-
tend MAP resolutions to future years that
could be covered by an APA. For further
discussion of the relationship and inter-
sections between the MAP process, the
APA process, and ACAP,seeRev. Proc.
2014 –YY.
SECTION 3. PROCEDURES FOR
REQUESTING ASSISTANCE FROM
THE U.S. COMPETENT AUTHORITY
.01In General.This section sets forth
procedures, rules, and guidelines relevant
to filing a MAP request with the U.S.
competent authority. Instructions on pre-
paring and filing a MAP request are also
set forth in the appendix to this revenue
procedure (generally referred to as the
“appendix”).
.02Pre-filing Procedures.
(1)In General.In the interest of mak-
ing the MAP process effective and effi-
cient, the U.S. competent authority in-
vites, and in some cases requires, the
taxpayer to meet with the U.S. competent
authority in a pre-filing conference prior
to filing the MAP request. For the same
reason, the U.S. competent authority in-
vites, and in some cases requires, the tax-
payer to submit a pre-filing memorandum
prior to filing the MAP request. Pre-filing
requirements are set forth in sections
3.02(2) through 3.02(7). Questions about
pre-filing requirements may be directed to
the U.S. competent authority by one of the
means identified in the appendix.
(2)Requesting Pre-filing Conferences.
A taxpayer that wishes to hold a pre-filing
conference with the U.S. competent au-
thority must submit its request as a part of
a pre-filing memorandum filed pursuant to
section 3.02(3) or 3.02(4).
(3)Mandatory Pre-filing Memoranda.
A pre-filing memorandum must be sub-
mitted if the MAP issues will, or could
reasonably be expected to, involve any of
the following: (a) a foreign-initiated ad-
justment in which the total adjustments
exceed $10 million for all MAP years
combined; (b) a taxpayer-initiated posi-
tion; (c) the license or other transfer of
intangibles in connection with, or the de-
velopment of intangibles under, an intan-
gible development arrangement; (d) any
arrangement that qualifies as a global trad-
ingarrangement;(e)unincorporated
branches, pass-through entities, hybrid en-
tities, or entities disregarded for U.S. tax
purposes; (f) a request for discretionary
LOB relief; or (g) other circumstances in
which the taxpayer believes a MAP issue
has arisen outside the context of an exam-
ination, such as in cases involving with-
holding taxes or guidance issued by a for-
eigntaxauthority.Ifapre-filing
memorandum is not submitted in any of
the cases described in this section, the
U.S. competent authority may, among
other possible actions, require that the pre-
filing memorandum be submitted before it
will take action on the MAP request.
(4)Optional Pre-filing Memoranda.
An optional pre-filing memorandum may
be submitted in cases other than those set
forth in section 3.02(3). An optional pre-
filing memorandum may be advisable in
cases that are expected to present novel or
complex MAP issues.
(5)Contents of Pre-filing Memoran-
dum. Whether submitted pursuant to sec-
tion 3.02(3) or 3.02(4), a pre-filing mem-
orandum must have a length and content
appropriate to the stage, size, and com-
plexity of the MAP issues underlying the
proposed MAP request. The memoran-
dum must also do the following:
(a) Include a “penalties of perjury”
statement modeled on the statement set
forth in the appendix;
(b) State whether the taxpayer requests a
pre-filing conference and, if so, the particu-
lar issues the taxpayer wishes to discuss;
(c) Propose at least three possible dates
for a pre-filing conference, whether or not
the taxpayer seeks a pre-filing conference,
in case the U.S. competent authority re-
quires a pre-filing conference;
(d) List the name and contact informa-
tion for the taxpayer’s point of contact and
provide a Form 2848,Power of Attorney
and Declaration of Representative, autho-
rizing the point of contact to represent the
taxpayer in connection with the MAP re-
quest, or a Form 8821,Tax Information
Authorization, authorizing the point of
contact to inspect or receive confidential
tax information about the taxpayer in con-
nection with the MAP request; and
(e) In the case of a non-U.S.-initiated
action, explain the factual and legal basis
of the action and describe any administra-
tive, legal, or other procedural steps un-
dertaken in the applicable treaty country
and any communications with the foreign
competent authority regarding the action.
(6)Place for Submission of Pre-filing
Memorandum. Two printed copies and
one electronic copy of the pre-filing mem-
orandum must be submitted to APMA or
TAIT at the address provided in section 5
of the appendix.
(7)Actions Taken with Respect to Pre-
filing Conferences and Memoranda. The
U.S. competent authority will notify the
taxpayer whether it will accept or decline
the taxpayer’s request to hold a pre-filing
conference. The taxpayer will also be no-
tified if a pre-filing conference is required,
even if the taxpayer did not request a
conference. If a pre-filing conference is
held, it will address procedural and sub-
stantive issues pertinent to the MAP re-
quest. During the conference, the taxpayer
should be prepared to discuss the relevant
facts and circumstances surrounding the
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638

MAP issues. If the U.S. competent author-
ity declines the taxpayer’s request for a
pre-filing conference or decides no pre-
filing conference is required, it will in-
struct the taxpayer to proceed to file its
MAP request.
(8)Informal Advice in Pre-filing Con-
ference. Statements or representations
made by the U.S. competent authority in a
pre-filing conference constitute informal
advice and are, therefore, advisory only
(seesection 2.05).
.03Persons Eligible or Required to
File MAP Requests.The U.S. competent
authority will consider MAP requests
from taxpayers eligible to file MAP re-
quests under U.S. tax treaties. If a case is
presented by a foreign competent author-
ity and no corresponding MAP request
has been filed, the U.S. competent author-
ity may require the relevant U.S. taxpayer,
if any (or if none, the foreign person), to
file a corresponding MAP request in ac-
cordance with this section, preceded, if
required, by a pre-filing memorandum and
a pre-filing conference.
.04Time for Filing.
(1)In General.Subject to the require-
ments regarding pre-filing memoranda
and pre-filing conferences under section
3.02, a taxpayer may file a MAP request at
the times specified in this section.
(2)U.S.-initiated Adjustments.In gen-
eral, the U.S. competent authority will not
accept a MAP request with regard to a
U.S.-initiated adjustment before the IRS
has communicated the amount of the pro-
posed adjustment in writing to the tax-
payer, e.g., a Form 5701 (Notice of Pro-
posed Adjustment) or a Form 4549
(Income Tax Examination Changes). A
MAP request will not be accepted if the
resulting MAP case would be barred by
the time limit set forth in the U.S. tax
treaty or, if not tolled by the treaty or
protectivemeasures,limitationspre-
scribed by domestic law in the United
States or treaty country.
(3)Non-U.S.-initiated Actions.In the
case of a non-U.S.-initiated action, the
taxpayer may submit its mandatory or op-
tional pre-filing memorandum or may file
its MAP request as soon as it reasonably
believes that a MAP issue exists or is
likely to arise. A MAP request will not be
accepted if the resulting MAP case would
be barred by the time limit set forth in the
U.S. tax treaty or, if not tolled by the
treaty or by a protective claim or treaty
notification (as applicable), limitations
prescribed by domestic law in the United
States or treaty country (seesections 13
and 14).
.05Content and Form of MAP Re-
quest.
(1)In General.The appendix sets forth
the required contents of a MAP request,
identifies the order in which such contents
should be presented, and provides informa-
tion and instructions on other administrative
matters relevant to filing the request, includ-
ing requirements on translations of docu-
ments not in English. The MAP request
must comply with the requirements set forth
in the appendix before it will be considered
complete. Any questions about filing a
MAP request not addressed in this section
or in the appendix should be directed to
APMA or TAIT by one of the means iden-
tified in the appendix.
(2)MAP Requests Submitted to For-
eign Competent Authority.A MAP re-
quest filed with the U.S. competent au-
thority must include a copy of any request
filed by the taxpayer or a member of the
controlled group with a foreign competent
authority seeking assistance for the same
MAP issue. The MAP request must also
include a written explanation of the na-
ture of any such related request, includ-
ing any material differences between the
MAP request filed under this revenue
procedure and the request filed with the
foreign competent authority.See gener-
allythe appendix.
(3)Requested and Submitted Items.
The taxpayer must provide both the U.S.
and the foreign competent authority any
information or documents requested by or
submitted to either competent authority.
(4)Corrected and Updated Informa-
tion.After the MAP request is filed, any
material errors or any material omissions
in the initial submission or subsequent
submissions must be promptly corrected
or remedied. Unless instructed otherwise,
the taxpayer must update information and
documents submitted in connection with
the MAP request on a schedule acceptable
to the U.S. competent authority. The tax-
payer must also submit any other informa-
tion or documents discovered or created
during the MAP process that are, or rea-
sonably may be, material to the MAP
case.
.06Additional Requirements and Pro-
cedures Applicable to Residency and Dis-
cretionary LOB Relief Cases.
(1)Residency Cases.U.S. competent
authority assistance may be available to
dual resident taxpayers (taxpayers resi-
dent in both the United States and the
treaty country) seeking to determine their
sole residence under the treaty. In such
circumstances, the U.S. competent author-
ity will only accept MAP requests con-
cerning questions of residency under U.S.
tax treaties if both: (a) the resolution of
the residency issue is necessary to avoid
double taxation or to determine the appli-
cability of a benefit under the treaty; and
(b) the issue requires consultation with the
foreign competent authority to ensure
consistent treatment under the applica-
ble treaty. The U.S. competent authority
will not unilaterally resolve a question
of residency.
(2)Discretionary LOB Relief Cases.
(a)No Relief Where Applicant Meets
Objective Test.Most U.S. tax treaties con-
tain an LOB article that enumerates ob-
jective tests to determine whether a for-
eign resident is a qualified resident of a
treaty country eligible for benefits under
the applicable U.S. tax treaty. The U.S.
competent authority will not issue a deter-
mination regarding whether an applicant
satisfies these objective LOB tests. In ad-
dition, it will not accept a request for
discretionary LOB relief if the applicant
cannot represent, and explain, as a part of
its MAP request, why it does not meet the
relevant objective tests.Seesection 2.01
of the appendix for the additional infor-
mation applicants are required provide for
requests for discretionary LOB relief.
(b)Factors Considered.In general, if
the applicant’s case is accepted, all facts
and circumstances may be considered, in-
cluding whether the applicant previously
qualified for treaty benefits and the reason
for its current disqualification. The re-
quired pre-filing memorandum will be
useful to determine what additional facts
should be included with the actual MAP
request. To obtain a favorable determina-
tion, the applicant must present facts that
demonstrate that it has a sufficient rela-
tionship or nexus to the treaty country.
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(c)User Fee.Applicants requesting
discretionary LOB relief must remit the
user fee as provided in section 16 of this
revenue procedure as well as comply with
the instructions set forth in the appendix.
.07Determinations Regarding Foreign
Pensions.
(1)In General.Several U.S. tax trea-
ties contain provisions relating to contri-
butions to foreign pension funds. Under
these provisions, if certain requirements
are satisfied, individuals who perform ser-
vices in the United States as employees
(and in some cases as independent con-
tractors) are allowed to deduct or exclude
contributions to a foreign pension fund in
computing U.S. taxable income. Some of
these tax treaties also allow U.S. citizens
who live and work in the treaty country to
claim deductions or exclusions for U.S.
tax purposes for contributions to a foreign
pension fund. Many of these treaties allow
U.S. employers a deduction on their U.S.
income tax returns for contributions to a
foreign pension fund on behalf of employ-
ees who perform services in the United
States.
(2) “Generally Corresponds” Determi-
nations.The U.S. tax treaties described in
section 3.07(1) provide that benefits are
not available unless the U.S. competent
authority has determined that the foreign
pension plan “generally corresponds” to a
pension plan recognized for tax purposes
in the United States. In some cases, the
treaty negotiators or the competent au-
thorities have agreed on lists of types of
plans in each country that are understood
to generally correspond to a plan recog-
nized for tax purposes in the other coun-
try. In other cases, however, it will be
necessary for an employer, a plan trustee,
or an individual plan participant to request
a competent authority determination on
whether a particular plan “generally cor-
responds.” An employer, plan trustee, or
individual plan participant seeking such a
determination must file a MAP request
according to the instructions set forth in
the appendix.
.08E-mail Communications. A com-
plete MAP request must include either an
executed memorandum of understanding
permitting the U.S. competent authority to
communicate with its authorized repre-
sentatives through encrypted e-mail or a
statement that the taxpayer does not per-
mit such e-mail communications and an
explanation for its declining to do so.See
the appendix. An electronic copy of the
standard form memorandum of understand-
ing is available on the APMA or TAIT
website [link to be included when avail-
able]. This paragraph does not apply to in-
dividuals or to taxpayers eligible to file
small case MAP requests under section 5.
SECTION 4. ACCELERATED
COMPETENT AUTHORITY
PROCEDURE
.01In General. Under ACAP, a tax-
payer may request that the terms of a
MAP resolution for a given taxable period
be extended to cover subsequent taxable
periods for which it has filed tax returns.
Alternatively, the U.S. competent author-
ity may act of its own accord to expand
the scope of a taxpayer’s MAP case to
include ACAP years.Seesections 2.08
and 2.10.
.02ACAP Requests.An ACAP request
may be included in the MAP request or
made subsequently in writing to the U.S.
competent authority. An ACAP request
must include the information and docu-
ments required by section 3.05 for the
ACAP years. Whether set forth in the MAP
request or in a separate written request, an
ACAP request must include the taxpayer’s
waiver of its right to written notification
from the Secretary under section 7605(b) of
the Code of the need for more than one
inspection of its books of account and re-
cords for taxable years covered by the
ACAP request (seethe appendix).
.03Rejection of ACAP Requests.The
U.S. competent authority may reject an
ACAP request: (1) if it is not filed before
a MAP resolution is reached between the
U.S. and foreign competent authority; (2)
if the request does not comply with the
requirements of this revenue procedure; or
(3) if acting on the request would be in-
consistent with sound tax administration,
such as when the facts and circumstances
of the ACAP years materially differ from
those of the MAP years.
SECTION 5. SMALL CASE MAP
REQUESTS
.01In General. In general, the provi-
sions and requirements of this revenue
procedure apply no differently to small
case MAP requests than to other MAP
requests. Nevertheless, as appropriate, the
U.S. competent authority will endeavor to
minimize undue administrative burdens
on taxpayers eligible to file small case
MAP requests. For taxpayers filing MAP
requests with TAIT, requests to be ex-
empted from certain of the MAP request
content requirements of section 3.05
should be made in advance of filing the
MAP request by filing an optional pre-
filing memorandum (seesection 3.02) or
by contacting TAIT by one of the means
identified in section 5 of the appendix. For
taxpayers filing MAP requests with
APMA, exemptions from certain of the
MAP request content requirements are ex-
plained in section 1.04 of the appendix.
Even if it agrees to exempt the taxpayer
from including certain content in the MAP
request, the U.S. competent authority
may, subsequent to the filing of the MAP
request, require the taxpayer to submit any
or all of the information required under
section 3, as well as any other information
or documentation the U.S. competent au-
thority determines is needed for its eval-
uation of the request.
.02Dollar Thresholds. A MAP request
qualifies as a small case MAP request if
the sum of the U.S.- and foreign-initiated
adjustments does not exceed the following
dollar thresholds for all of the MAP years
combined:
Type of TaxpayerThreshold of Proposed Adjustment(s)
Corporation/Partnership$5,000,000
Other$1,000,000
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.03Ineligible Requests.IfaMAPre-
quest will involve: (1) a taxpayer-initiated
position; (2) discretionary LOB relief; or
(3) a foreign pension plan determination
filed by a person other than an individual
plan participant, then such a request will
not be exempt under section 5.01 from the
generally applicable filing procedures.
SECTION 6. NOTIFICATION OF
RECEIPT AND DENIAL OF
ASSISTANCE
.01Notification of Receipt. The U.S.
competent authority will notify the tax-
payer in writing that it has received the
MAP request and that the correct user fee
has been paid (if applicable). The letter
will also provide the name and contact
information of the APMA team leader,
TAIT analyst, or the members of the com-
bined APMA-TAIT team to which the
request has been assigned. In addition, the
letter will also state either: (1) that the
request is complete and that the MAP
process will proceed, together with any
administrative or procedural steps the tax-
payer must take pertaining to the MAP
request; (2) that the request is provision-
ally accepted but that the MAP process
will not proceed until specified deficien-
cies in the request have been addressed; or
(3) that the request is rejected and the
circumstances, if any, in which the request
might be accepted. The U.S. competent
authority will also instruct the taxpayer as
to other offices within the IRS to which
full or partial copies of the MAP request
must be provided.
.02Denial of Assistance. The U.S.
competent authority may deny assistance,
in whole or in part, at any point in the
MAP process, either at the outset by re-
jecting the MAP request or by terminating
or suspending the MAP process after it
has accepted the MAP request. The U.S.
competent authority will generally take
such action if any of the following cir-
cumstances are present:
(1) Based on all of the facts and cir-
cumstances known to the U.S. competent
authority, providing assistance to the tax-
payer would be inconsistent with the U.S.
tax treaty under which such assistance is
sought;
(2) The taxpayer has expressed that it is
willing to accept a MAP resolution only
under conditions that are unreasonable or
prejudicial to the interests of the U.S. gov-
ernment, including its refusal to accept a
MAP resolution that would encompass
ACAP years when the U.S. competent
authority has determined that including
such years is in the interest of sound tax
administration;
(3) The issue on which competent au-
thority assistance is sought is the same as
or similar to an issue considered in eval-
uating a prior MAP or bilateral or multi-
lateral APA request, where the taxpayer
rejected the resulting resolution of the is-
sue by the U.S. competent authority and
has not changed its position;
(4) The taxpayer agreed to or acqui-
esced in a foreign-initiated adjustment in-
volving significant legal or factual issues
without previously having consulted the
U.S. competent authority;
(5) The taxpayer’s conduct before fil-
ing its MAP request or after the MAP
process has been initiated has significantly
impeded the ability of the IRS to ade-
quately examine and address the MAP
issues for which assistance has been re-
quested or the ability of the U.S. compe-
tent authority to resolve the MAP case;
(6) The subject matter of the MAP
request: (a) includes an issue pending in
litigation where a court has declined to
sever MAP issues, delay trial, or stay pro-
ceedings (seesection 9.03(1)); (b) is pend-
ing in a foreign court and such proceeding
is likely to impede the conclusion or im-
plementation of a MAP resolution; (c) in-
cludes an issue and taxable period desig-
nated for litigation (seesection 9.03(1));
(d) includes an issue and taxable period
pending in a U.S. federal court that was
previously considered by IRS Appeals (see
section 9.03(1)); (e) is a listed transaction
under Treas. Reg. §§1.6011– 4(b)(2) and
301.6111–2(b)(2); (f) is a transaction of in-
terest under Treas. Reg. §1.6011-4(b)(6); or
(g) involves fraudulent activity by the tax-
payer or a member of the controlled group;
(7) The taxpayer rejected a request to
extend the period of limitations for assess-
ment of tax for the taxable periods covered
by the MAP request and any ACAP years;
(8) The MAP issue was included in a
protest to IRS Appeals and was not prop-
erly severed from such protest and transi-
tioned into a MAP request within 30 days
after the opening conference with IRS Ap-
peals (seesection 9.02);
(9) The MAP issue has been settled
pursuant to an examination resolution
without prior concurrence of the U.S.
competent authority (seesection 9.01);
(10) The MAP issues covered by the
MAP request cannot be adequately re-
solved without the involvement of one or
more additional foreign competent author-
ities and either the taxpayer fails to coop-
erate in seeking the involvement of such
additional foreign competent authorities
or such competent authorities refuse to
participate in multilateral consultations on
the MAP case;
(11) An adequate resolution of the
MAP case would require consideration of
issues directly or indirectly involving the
taxpayer and members of the controlled
group located in non-treaty jurisdictions
and the taxpayer fails to disclose such
issues in the MAP process (such as in
diagrams required of MAP requests filed
with APMA;seethe appendix); or
(12) In MAP cases involving taxpayer-
initiated positions, the request evinces
after-the-fact tax planning or fiscal eva-
sion or is otherwise inconsistent with
sound tax administration.
.03No Review of Denial of MAP Re-
quest for Assistance. The U.S. competent
authority’s decision as to whether a MAP
request is complete or to deny, suspend, or
terminate assistance is not subject to ad-
ministrative review.
SECTION 7. CONSULTATIONS AND
OTHER ACTIONS BY THE U.S.
COMPETENT AUTHORITY
.01Non-U.S.-initiated Actions. The U.S.
competent authority will evaluate a MAP
request involving a non-U.S.-initiated action
on the basis of the justification for the action
prepared by the foreign competent authority
and on the analyses of such justification
prepared by the taxpayer and by other IRS
offices. After making its evaluation, the U.S.
competent authority will proceed in any of
several ways. In typical cases involving
foreign-initiated adjustments, it will begin
consultations with the foreign competent au-
thority on the justification for correlative
relief and the extent to which such correla-
tive relief is warranted. In other cases in-
volving foreign-initiated adjustments, the
U.S. competent authority may grant correl-
ative relief without consultations.
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641

.02U.S.-initiated Adjustments. The
U.S. competent authority will address a
U.S.-initiated adjustment after evaluating
the justification for the adjustment devel-
oped by IRS Examination, recommenda-
tions (if any) it has received through SAP
review, the taxpayer’s views on the ad-
justment it sets forth in the MAP request
or otherwise provides in the MAP process,
and the views of other IRS offices on the
adjustment. Once it has made its evalua-
tion, the U.S. competent authority will
proceed in any of several ways. In most
cases, it will begin consultations with the
foreign competent authority on the justi-
fication for correlative relief and the ex-
tent to which such correlative relief is
warranted. In other cases, the U.S. com-
petent authority may recommend or re-
quire that IRS Examination revise or with-
draw the U.S.-initiated adjustment. If an
adjustment remains after taking into ac-
count the U.S. competent authority’s rec-
ommendations or requirements, then the
U.S. competent authority will continue to
work with IRS Examination or the foreign
competent authority as applicable.
.03Requests for Discretionary LOB
Relief.The LOB articles of some U.S. tax
treaties require the U.S. or foreign com-
petent authority to consult the other before
denying a request for discretionary LOB
relief. The U.S. competent authority will
comply with such consultation require-
ments.
.04Taxpayer Presentations.The U.S.
competent authority will consider requests
from, and may invite or require, the tax-
payer to make presentations jointly to the
U.S. and foreign competent authorities
during the MAP process. The U.S. com-
petent authority will consult with the for-
eign competent authority as to its interest
in joint presentations and notify the tax-
payer accordingly.
SECTION 8. SIMULTANEOUS
APPEALS PROCEDURE
.01In General. SAP review provides
taxpayers with a direct, efficient proce-
dure for involving IRS Appeals in the
U.S. competent authority’s evaluation of a
U.S.-initiated adjustment. It is the only
procedure by which a taxpayer may pres-
ent a U.S.-initiated adjustment to IRS Ap-
peals for its review and retain the possi-
bility of obtaining correlative relief for the
adjustment with assistance from the U.S.
competent authority. SAP review may be
requested by the taxpayer. Alternatively,
the U.S. competent authority may, in its
discretion, initiate SAP review to obtain
the views of IRS Appeals on the MAP
issues presented in the MAP request.
.02Requesting SAP Review. Unless the
U.S. competent authority permits other-
wise in writing, the request for SAP re-
view must be presented in the MAP re-
quest or in a separate written submission
filed no later than 60 days after the date of
the determination letter notifying the tax-
payer that the U.S. competent authority
has accepted the MAP request (seesection
1.03 for the rule applicable to deadlines).
Before filing its submission, a taxpayer
may request a pre-filing conference with
IRS Appeals and the U.S. competent au-
thority to discuss SAP review. Neither
arbitration nor mediation procedures that
otherwise would be available as part of
the IRS Appeals process are available in
SAP review.SeeRev. Proc. 2006 – 44,
2006 –2 C.B. 800, and Rev. Proc. 2009 –
44, 2009 –2 C.B. 462.
.03Actions with Respect to SAP Re-
view. The U.S. competent authority will
decide whether to accept or deny the tax-
payer’s request for SAP review after con-
sulting with IRS Appeals. If the U.S. com-
petent authority accepts the request, it will
coordinate with IRS Appeals on process
and timeframe. In general, IRS Appeals
will conduct its review of the MAP issues
presented in the MAP request in accor-
dance with standard IRS Appeals practice,
with the exception that the U.S. competent
authority will have the option of partici-
pating in meetings held between IRS Ap-
peals and the taxpayer. Upon completing
its review, IRS Appeals will recommend a
U.S. position to the U.S. competent au-
thority. If the U.S. competent authority
denies the request for SAP review, the
taxpayer may request a conference to hear
the basis for the decision.
.04Termination of SAP Review. The
taxpayer, the U.S. competent authority, or
the Chief of IRS Appeals may terminate
SAP review at any time. Termination of
SAP review by the taxpayer will not pre-
clude the U.S. competent authority from
obtaining the recommendation of IRS Ap-
peals on the MAP issues set forth in the
MAP request. If SAP review is terminated
by the U.S. competent authority or by the
Chief of IRS Appeals, the taxpayer may
request a conference with either or both
parties to hear the basis for such determi-
nation.
SECTION 9. INTERACTION AND
COORDINATION WITH OTHER
ADMINISTRATIVE AND JUDICIAL
PROCEEDINGS
.01Cases under the Jurisdiction of IRS
Examination.
(1)Examination Resolutions Gener-
ally.The U.S. competent authority will
accept a MAP request with respect to a
U.S.-initiated adjustment memorialized in
an examination resolution only if the U.S.
competent authority agreed, in writing, to
the terms of the examination resolution
prior to its execution. A taxpayer may
seek such agreement by filing an exami-
nation resolution notification with the
U.S. competent authority.
(2)Fast Track Settlement.In the case
of a Fast Track Settlement, the U.S. com-
petent authority will accept a MAP re-
quest with respect to a U.S.-initiated ad-
justment memorialized in a Session report
only if: (a) the Fast Track agreement
named a representative of the U.S. com-
petent authority as a “participant” in the
proceeding; and (b) the U.S. competent
authority was given a reasonable opportu-
nity to participate in all Fast Track Settle-
ment meetings with LB&I personnel.
(3)Action by U.S. Competent Author-
ity.After receiving the examination reso-
lution notification and consulting with the
taxpayer and IRS Examination as appro-
priate, the U.S. competent authority will
determine whether it accepts the proposed
terms. If it disagrees with the terms, it will
request that IRS Examination and the tax-
payer amend them accordingly. If the
terms are initially acceptable or are
amended to its satisfaction, the U.S. com-
petent authority will authorize the tax-
payer and IRS Examination to execute the
examination resolution and will authorize
the taxpayer to file a MAP request. The
U.S. competent authority will then seek a
MAP resolution with the applicable for-
eign competent authority, starting from
the position in the examination resolution.
Most U.S. tax treaties will allow the U.S.
competent authority to implement a MAP
resolution reached with the foreign com-
December 9, 2013Bulletin No. 2013–50
642

petent authority in such cases, even if the
terms of the MAP resolution are different
from the terms of the prior examination
resolution. A minority of U.S. tax treaties,
however, may not allow the U.S. compe-
tent authority to implement a MAP reso-
lution that varies from the terms of the
prior examination resolution.
(4)Exclusive Jurisdiction.The U.S.
competent authority will assume sole ju-
risdiction over all MAP issues set forth in
a MAP request it has accepted, whether
the request is filed pursuant to the proce-
dures set forth in this section or otherwise.
Any further administrative action by the
IRS (e.g., assessment and collection pro-
cedures) with respect to any issues under
the jurisdiction of the U.S. competent au-
thority will be postponed unless the U.S.
competent authority instructs otherwise.
Normal administrative procedures will
continue to apply to issues over which the
U.S. competent authority has not assumed
jurisdiction.
.02Cases Under the Jurisdiction of
IRS Appeals.
(1)In General.In light of the IRS’s
policy governing the availability and use
of SAP review, the U.S. competent au-
thority will not accept a MAP request
regarding MAP issues that have been in-
cluded in a protest filed with IRS Appeals
unless the following conditions are met:
(a) the taxpayer files its MAP request no
later than 30 days after its opening con-
ference with IRS Appeals (seesection
1.03 for the rule applicable to deadlines);
(b) the taxpayer properly severs the MAP
issues in its MAP request from the other
issues in its protest that will remain under
the jurisdiction of IRS Appeals; (c) the
taxpayer has not invoked the Appeals Ar-
bitration Program or the Appeals Media-
tion Program with respect to the MAP
issues; and (d) the taxpayer has not exe-
cuted a Form 870 waiver, a Form 870-AD
offer, a closing agreement, or any other
similar agreement concerning such MAP
issues. The U.S. competent authority will
assume sole jurisdiction over the MAP
issues set forth in the MAP request if
these conditions are met and if it accepts
the request. Standard IRS Appeals pro-
cedures will continue to apply to any
other issues not set forth in the MAP
request.
(2)Right of Review by IRS Appeals if
MAP Resolution Not Reached or Not Ac-
cepted by Taxpayer.Nothing in this rev-
enue procedure will abridge a taxpayer’s
rights to seek or continue review by IRS
Appeals of the MAP issues set forth in its
MAP request if: (a) the U.S. competent
authority rejects the request or terminates
assistance in the MAP case; (b) a MAP
resolution is not reached; or (c) the tax-
payer does not accept the terms of the
MAP resolution.
.03Cases in, or Designated for,
Litigation.
(1)In General.The U.S. competent
authority will not accept, and will termi-
nate any ongoing consideration of, a tax-
payer’s MAP request regarding any MAP
issue and taxable period designated for
litigation (seesection 6.02(6)(c)), or any
MAP issue and taxable period pending in
a U.S. federal court that was previously
considered by IRS Appeals (seesection
6.02(6)(d)). In other cases where litigation
is pending with respect to a taxable period
involved in a MAP request, the U.S. com-
petent authority, after consultation with
the Associate Chief Counsel (Interna-
tional), may accept, or continue to con-
sider, the MAP request. During the MAP
process, a taxpayer may be asked to join
the IRS in a motion to sever any MAP
issues, delay trial, or stay proceedings
pending the outcome of the taxpayer’s
MAP case. The Associate Chief Counsel
(International) will coordinate the filing of
any such motion on behalf of the IRS
with, as appropriate, Area Counsel, the
Department of Justice, and the taxpayer.
Final decision on severing issues, delay-
ing trial, or staying proceedings rests with
the court. Notwithstanding the foregoing,
if the court denies a motion to sever MAP
issues, delay trial, or stay proceedings, the
U.S. competent authority will terminate
any ongoing consideration of the MAP
request (seesection 6.02(6)(a)).
(2)Effect of Judicial Determinations
and Litigation Settlements. A taxpayer
may file a MAP request with respect to a
U.S. federal court’s final determination of
its tax liability. Such final determinations
include instances when taxpayers enter
into litigation settlements with the Office
of Chief Counsel or the Department of
Justice. If it accepts such a request, the
U.S. competent authority will seek correl-
ative relief from the foreign competent
authority only for the amount of, and
without departing from, such final deter-
mination. In such a case, the U.S. compe-
tent authority will not authorize MAP re-
patriation.
SECTION 10. RESULTS OF MAP
CASE
.01Notification. The outcome of most
MAP cases will be a MAP resolution,
which may be reached either through di-
rect consultations with the foreign compe-
tent authority, through arbitration, or oth-
erwise. When a tentative MAP resolution
is reached during the course of the MAP
process, the U.S. competent authority will
notify the taxpayer and outline its general
terms. Generally, a MAP resolution is not
final until it has been reviewed and ap-
proved within the office of the U.S. com-
petent authority and until the MAP case
has been formally closed by both compe-
tentauthorities.Forcasesresolved
through arbitration,seesection 12. The
taxpayer will also be notified if the com-
petent authorities have determined that a
MAP resolution will not be reached. In
that event, the taxpayer may withdraw its
MAP request and pursue all rights other-
wise available to it (seesection 10.04).
.02Implementation.If the taxpayer ac-
cepts the terms of the MAP resolution, the
U.S. competent authority will direct the
relevant offices within the IRS to imple-
ment it accordingly. To the extent autho-
rized under the applicable U.S. tax treaty,
the MAP resolution will be implemented
notwithstanding any time limits or other
procedural limitations under the Code and
regulations. If the taxpayer does not ac-
cept the MAP resolution, it may withdraw
its MAP request and pursue all rights oth-
erwise available to it (seesection 10.04).
.03Closing Agreement. When appro-
priate, the IRS may request that the tax-
payer execute a closing agreement reflect-
ing the terms of the MAP resolution. (See
Rev. Proc. 68 –16, 1968 –1 C.B. 770 (as
modified by Rev Proc. 94 – 67, 1994 –2
C.B. 800)).
.04Special Issues Where No MAP Res-
olution with Respect to Foreign-initiated
Adjustment. In any given MAP case, it is
possible that the U.S. and foreign compe-
tent authorities will not reach a MAP res-
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643

olution despite their jointly endeavoring
in good faith to do so. If such a MAP case
involves a foreign-initiated adjustment
and arbitration is not available, the tax-
payer will be notified in accordance with
section 10.01. Such notification may iden-
tify the protective measures or other steps
the taxpayer must take to establish that
amounts paid to the treaty country in con-
nection with the foreign-initiated adjust-
ment constitute compulsory payments of
tax within the meaning of Treas. Reg.
§1.901–2(e)(5) and to maintain its eligi-
bility for competent authority assistance.
Such steps may include the taxpayer’s
pursuit of administrative and judicial rem-
edies in the treaty country and, if credits
are claimed for amounts paid before the
contest is resolved, the taxpayer’s agree-
ment to extend the U.S. statute of limita-
tions on assessment while contesting the
foreign-initiated adjustment.
SECTION 11. MAP REPATRIATION
.01In General. Outside the MAP con-
text, Rev. Proc. 99 –32 prescribes specific
procedures permitting eligible U.S. tax-
payers to make repatriation payments. By
following these procedures, U.S. taxpay-
ers are able to mitigate adverse collateral
tax consequences that may otherwise re-
sult from a primary adjustment. In the
MAP context, the U.S. competent author-
ity may determine whether to grant MAP
repatriation under the mutual agreement
procedure provision of the governing
treaty. MAP repatriation will not apply to
any repatriation payments other than those
addressed in the MAP resolution.
.02Requirements for MAP Repatria-
tion. MAP repatriation will be available
only if the following conditions are satis-
fied:
(1) no person (whether or not a “United
States taxpayer” within the meaning of
Rev. Proc. 99 –32) that will make or re-
ceive repatriation payments would be
barred from making or receiving repatria-
tion payments under the principles of sec-
tion 3.01 or 3.03 of Rev. Proc. 99 –32;
(2) the request for MAP repatriation is
explicitly set forth in the MAP request or
in a supplemental written submission filed
with the U.S. competent authority prior to
a MAP resolution being reached;
(3) the primary adjustment giving rise
to the application for MAP repatriation is
a MAP issue included in a MAP request
accepted by the U.S. competent authority;
and
(4) there has been no closing action
(within the meaning of section 5.01(1) of
Rev. Proc. 99 –32) taken on the primary
adjustment.
.03Decision on MAP Repatriation.
The U.S. competent authority has sole ju-
risdiction to accept or deny a request for
MAP repatriation and the terms of such
treatment. In no event will the U.S. com-
petent authority grant MAP repatriation if:
(1) the U.S. competent authority termi-
nates assistance with respect to the MAP
request pursuant to section 6.02; (2) the
MAP request involves issues previously
decided in litigation (seesection 9.03(2));
or (3) the taxpayer rejects the MAP reso-
lution.
.04Terms of MAP Repatriation. The
U.S. competent authority will determine
the terms of MAP repatriation on a case-
by-case basis, taking into account both the
principles set forth in Rev. Proc. 99 –32
and its authority under the mutual agree-
ment procedure provision of the govern-
ing treaty. Thus, for example, in a partic-
ular MAP repatriation case, the U.S.
competent authority may determine it is
appropriate to eliminate or modify the re-
quirement for interest set forth in section
4.01(2) of Rev. Proc. 99 –32.
.05Rights Retained in Absence of Mu-
tual Agreement.The rights that a U.S.
taxpayer may have to apply Rev. Proc.
99 –32 in the absence of MAP repatriation
are neither abridged nor enhanced by this
section or other provisions of this revenue
procedure.
SECTION 12. ARBITRATION
.01In General.The mutual agreement
procedure article in arbitration treaties re-
quires that the competent authorities refer
certain MAP cases to mandatory arbitra-
tion in the event direct consultation does
not lead to a mutual agreement within a
prescribed time period. The mutual agree-
ment procedure article in arbitration trea-
ties sets forth detailed rules to be followed
regarding the resolution of cases that are
eligible for arbitration as prescribed by the
relevant treaty. This section addresses
general procedural issues associated with
mandatory arbitration that is undertaken
as part of the MAP process. Taxpayers
should consult the mutual agreement pro-
cedure article under the applicable U.S.
tax treaty and any ancillary agreements to
determine whether it is an arbitration
treaty and the extent to which mandatory
arbitration applies under such treaty.
.02Commencement Date and the Be-
ginning of Arbitration Proceedings. De-
termining the “commencement date” un-
der an arbitration treaty is important
because arbitration begins within a speci-
fied time period, typically two years, fol-
lowing the commencement date. In gen-
eral, the commencement date for a case is
the earliest date on which the information
necessary to undertake substantive con-
sideration for a mutual agreement has
been received by both competent author-
ities. The U.S. competent authority gener-
ally takes the position that it has received
information necessary to undertake sub-
stantive consideration for a mutual agree-
ment only when it has received a complete
MAP request as described in this revenue
procedure. The U.S. competent authority
will notify the U.S. taxpayer when the
commencement date is established.
.03Non-disclosure Agreement. The ar-
bitration proceedings do not begin before
the date by which both competent author-
ities have received properly executed non-
disclosure agreements from all concerned
persons, their authorized representatives,
and their agents. The U.S. competent au-
thority will provide the taxpayer with a
form for the non-disclosure agreement.
.04Notification of Unsuitability for Ar-
bitration.U.S. arbitration treaties allow
both competent authorities to agree, at any
time prior to the arbitration start date, that
a particular case is not suitable for arbi-
tration. The U.S. competent authority will
notify the taxpayer of any such determi-
nation.
.05Taxpayer Participation.The tax-
payer may submit its analysis and views
of the case to the U.S. competent authority
to the extent permitted under the applica-
ble U.S. tax treaty.
.06Notification of Arbitration Panel’s
Determination. The U.S. competent au-
thority will notify the taxpayer of the ar-
bitration panel’s determination. If the tax-
payer accepts the arbitration panel’s
determination, its terms will constitute a
MAP resolution.
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644

.07Other Taxpayer Rights.If a tax-
payer rejects the determination of an arbi-
tration panel, does not accept the determi-
nation within the deadline mandated by
the applicable arbitration guidance, or has
been notified that a case has been deter-
mined not to be suitable for arbitration, it
may pursue any rights that remain avail-
able under domestic law.
SECTION 13. PROTECTIVE CLAIMS
.01In General. Most U.S. tax treaties
provide that MAP resolutions are to be
implemented by the United States and the
treaty country notwithstanding any time
limits or other procedural limitations un-
der domestic law. A minority of U.S. tax
treaties may not allow the U.S. competent
authority to waive such limitations. In par-
ticular cases, domestic barriers may be
waived only if a MAP request is accepted
and a MAP resolution is reached. In ad-
dition, because there are circumstances
that may not be under the control of the
taxpayer or of the U.S. or foreign compe-
tent authority, it is advisable as a general
matter for the taxpayer or a related person
to take protective measures under applica-
ble domestic law to increase the likeli-
hood that a MAP resolution in its MAP
case can be implemented in both treaty
countries and to protect any rights of ac-
cess to alternative remedies outside of the
MAP process from being barred by ad-
ministrative, legal, or procedural barriers.
This section sets forth procedures and
guidelines for taking such protective mea-
sures.
.02Protective Claims Generally.
(1)In General.A protective claim is
made to ensure that time limits or admin-
istrative, legal, or procedural barriers un-
der the Code or regulations are satisfied to
protect the taxpayer’s right to a potential
credit or refund in the event that a MAP
resolution is reached and to retain the tax-
payer’s rights of access to any alternative
remedies available to it outside of the
MAP process under the Code or regula-
tions. A protective claim is distinct from a
treaty notification (seesection 14) and
does not affect the notification deadline
under a given treaty, even though a pro-
tective claim and treaty notification may
initially be made in the same submission
and may be updated annually in the same
notification (seesection 14.05).
(2)Timing of Protective Claims.Gen-
erally, a taxpayer should consider making
a protective claim when it has reason to
believe that any action of a tax authority
has resulted or is likely to result in a MAP
issue. However, it may be advisable to
make a protective claim at earlier times,
for example, when the claim concerns a
recurring MAP issue or when the taxpayer
is otherwise aware that an adjustment is
likely for a given taxable year. A taxpayer
may consult with the U.S. competent au-
thority to determine when and in what
manner it is advisable to make a protec-
tive claim.
(3)IRC § 6402 Requirements.To be a
valid protective claim for credit or refund
for purposes of this revenue procedure,
the claim must be in writing and meet the
requirements of section 6402 of the Code
and the regulations thereunder other than
therequirementinTreas.Reg.
§301.6402–3 to file the claim on the ap-
propriate form. Accordingly, a protective
claim must, at a minimum: (a) fully advise
the IRS of the grounds on which the credit
or refund is claimed; (b) contain sufficient
facts to apprise the IRS of the exact basis
of the claim; (c) describe and identify the
contingencies affecting the claim; (d) state
the year for which the claim is being
made; (e) be verified by written declara-
tion made under penalties of perjury; and
(f) be filed before the expiration of the
applicable period of limitation to which
the claim relates.
(4)Methods for Making Protective
Claims. For purposes of this revenue pro-
cedure only, a protective claim for credit
or refund may be made in any of the
following ways: (a) including the claim in
a pre-filing memorandum; (b) including
the claim in a MAP request; or (c) filing a
letter specifically stating that a protective
claim is being made. In conjunction with
any of these methods, the taxpayer may,
but is not required to, file the form spec-
ified in Treas. Reg. §301.6402–3.
.03Making Protective Claim in Pre-
Filing Memorandum or MAP Request.For
the placement of a protective claim within
a MAP request,seethe appendix. If the
protective claim is made in a pre-filing
memorandum, the memorandum must
contain a separate section captioned ”Pro-
tective Claim Pursuant to Section 13 of
Rev. Proc. 2014 –XX”. In that section, the
taxpayer must declare that it is making a
protective claim prior to filing a potential
MAP request regarding the MAP issues
set forth in the memorandum. The section
must also contain the information de-
scribed in section 13.02(3). Any pre-filing
memorandum or MAP request submitted
after a protective claim is made in the
form of a letter (seesection 13.04) should
refer to such letter. The U.S. competent
authority will notify the taxpayer it has
received the protective claim or that the
claim made by the taxpayer does not con-
stitute a valid protective claim and give
instructions as to whether, and how, the
claim can be remedied to be valid.
.04Making Protective Claim by Letter.
(1)In General.There may be situations
in which a taxpayer will be unable to
submit a pre-filing memorandum or file a
MAP request before the applicable period
of limitations expires. In such situations, a
separate protective claim in the form of a
letter should be filed. For example, a letter
would be appropriate when a foreign tax
authority is considering, but has not yet
proposed, an adjustment; a foreign tax
authority has proposed an adjustment and
administrative or judicial remedies are ex-
pected to be pursued in the treaty country
before a MAP request is filed; or the terms
of the applicable treaty require that noti-
fication of a claim be made within a cer-
tain time, independent of any action by a
tax authority.
(2)Filing of Letter.The protective
claim letter must be filed in the same place
and manner as a pre-filing memorandum
or MAP request. If a taxpayer filing a
protective claim letter is under examina-
tion by the IRS, or if an examination be-
gins after the letter is filed, the taxpayer
must send a copy of the letter to the IRS
office conducting the examination. A tem-
plate of a letter suitable for making a
protective claim is provided on the APMA
website [link to be included when avail-
able].
.05Effect of Protective Claim. A pro-
tective claim made in the form of a letter,
a pre-filing memorandum, or a MAP re-
quest that complies with the provisions of
this revenue procedure will meet the filing
requirements for a valid claim for credit or
refund under section 6402 of the Code and
the regulations thereunder with respect to
the MAP issues set forth in the claim, so
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645

long as it is filed before the expiration of
the applicable statutory period of limita-
tions for filing claims for credit or refund
under the Code.
.06Annual Notification Requirement.
After initially filing a protective claim let-
ter or after making a protective claim in a
pre-filing memorandum and before filing
its MAP request, the taxpayer must annu-
ally notify the U.S. competent authority as
to whether it may still file a MAP request.
The annual notification must be filed no
later than the date on which the taxpayer
timely files its tax return for each taxable
year ending after the taxable year in which
it filed the protective claim (seesection
1.03 for the rule applicable to deadlines).
The annual notification must: (1) be titled
“AnnualNotificationofProtective
Claim”; (2) reference the initial protective
claim; (3) contain a declaration that the
taxpayer is providing its annual notice of
protective claim pursuant to this section
13 and that it is requesting that its protec-
tive claim remain active; and (4) where
appropriate, update or otherwise correct
the information set forth in the protective
claim or any subsequent annual notifica-
tions. The annual notification must be
filed in the same place and manner as a
pre-filing memorandum or MAP request.
The U.S. competent authority may deny
assistance to a taxpayer that fails to pro-
vide the annual notification.
SECTION 14. TREATY
NOTIFICATIONS
.01In General.Some U.S. tax treaties
require that the competent authority of the
country that has not received a formal
request for competent authority assistance
be notified that such a request has been
submitted to the competent authority of
the other country. If such notice is not
provided within the number of years spec-
ified in the treaty, domestic barriers to the
implementation of a MAP resolution will
not be removed (see, e.g.,United States-
Canada Income Tax Convention (1980),
Article XXVI(2)). Therefore, a taxpayer
seeking assistance of the U.S. competent
authority under such a treaty with regard
to a foreign-initiated adjustment must sub-
mit a treaty notification to the U.S. com-
petent authority within the time set forth
in the treaty.
.02Manner of Notification.For pur-
poses of this revenue procedure, a treaty
notification to the U.S. competent author-
ity may be made as a part of a taxpayer’s
MAP request (seethe appendix) or may
take the form of a letter to the U.S. com-
petent authority. A template of a letter
suitable for making a treaty notification is
provided on the APMA website [link to be
included when available].
.03Taxpayer Responsible for Notifying
Foreign Competent Authority.With re-
gard to a U.S.-initiated adjustment under
such a treaty, the taxpayer must notify the
foreign competent authority of its having
filed a MAP request with the U.S. com-
petent authority. In making such notifica-
tion, the taxpayer should follow any ap-
plicable procedures prescribed by the
treaty country. The U.S. competent au-
thority is not responsible for notifying a
foreign competent authority that it has re-
ceived a MAP request.
.04Annual Notification Requirement.
Treaty notification in the form of a letter
must be updated on an annual basis until a
formal MAP request has been filed. The
annual notification must be submitted no
later than the date on which the taxpayer
timely files its tax return for each taxable
year ending after the taxable year in which
it submitted the treaty notification (see
section 1.03 for the rule applicable to
deadlines). The annual update must con-
tain the following subject line: “Treaty
Notification Annual Update under Rev.
Proc. 2014 –XX”. The annual update must
refer to prior treaty notifications.
.05Consolidation of Protective Claim
and Treaty Notification.The taxpayer
may consolidate an initial protective claim
and a treaty notification into a single let-
ter, pre-filing memorandum, or MAP re-
quest. A template of a letter suitable for
consolidating an initial protective claim
and treaty notification is provided on the
APMA website [link to be included when
available]. The taxpayer may also consol-
idate an annual protective claim notifica-
tion and annual treaty notification in a
single letter. In whatever manner such ini-
tial or annual notifications are consoli-
dated, the taxpayer should ensure that the
submission clearly states that it is to serve
as both a protective claim and as a treaty
notification.
SECTION 15. REQUESTS FOR
RULINGS
.01In General. Requests for advance
rulings regarding the interpretation of a
tax treaty, as distinguished from MAP re-
quests under this revenue procedure, must
be submitted to the Associate Chief Coun-
sel (International) according to the provi-
sions of the applicable revenue procedure
governing such submissions.SeeRev.
Proc. 2013–1, 2013–1 I.R.B. 1 (or succes-
sor guidance), and Rev. Proc. 2013–7,
2013–1 I.R.B. 233.
.02Foreign Tax Rulings. Neither the
U.S. competent authority nor any other
office within the IRS will issue an ad-
vance ruling on the effect of the provi-
sions of a U.S. tax treaty on the applica-
tion of the domestic tax laws of a treaty
country.
SECTION 16. USER FEES
.01In General. Except as otherwise
provided in this section 16, no user fee is
required for a MAP request.
.02Requests for Discretionary LOB
Relief. A $27,500 user fee is required for
all requests for discretionary LOB relief
as described in section 3.06(2).SeeRev.
Proc. 2013–1 (or successor guidance).
The fee must be paid according to instruc-
tions set forth in the letter from the U.S.
competent authority to the applicant for-
mally informing the applicant it is accept-
ing the request. The fee will apply regard-
less of whether the request is for an initial
determination, a renewal of a previously
issued determination, or a supplemental
determination. If a MAP request requires
discretionary LOB relief for two or more
entities, a separate user fee will be
charged for each entity.
.03Timing of User Fee Charge. Within
30 days of receipt of a complete submis-
sion for a request for discretionary LOB
relief, the U.S. competent authority will
notify the taxpayer whether it accepts or
rejects the request for assistance. No user
fee will be charged unless and until the
U.S. competent authority notifies the tax-
payer that it formally accepts the request.
If the U.S. competent authority accepts
the request, the taxpayer must pay the
applicable user fee or fees electronically
using the Pay.gov website within 60 days
of the notification of the acceptance (see
December 9, 2013Bulletin No. 2013–50
646

section 1.03 for the rule applicable to
deadlines). Upon receipt of the user fee,
the U.S. competent authority will com-
mence analysis of the case.
.04Refund of User Fee. The U.S. com-
petent authority has sole discretion over
whether it will, and the circumstances under
which it may, refund a user fee. Generally,
the U.S. competent authority will not refund
a user fee: (1) once it accepts the MAP
request and the taxpayer has remitted the
user fee, even if the taxpayer subsequently
withdraws the request; (2) if the taxpayer
fails to submit additional information that
has been requested by the U.S. competent
authority; or (3) the U.S. competent author-
ity ultimately declines to grant discretionary
LOB relief. If the U.S. competent authority
ultimately declines to grant discretionary
LOB relief, after taking into account all the
facts and circumstances, including the re-
sources devoted to the request, the U.S.
competent authority may in its sole discre-
tion determine that a refund is appropriate.
SECTION 17. EFFECT ON OTHER
DOCUMENTS
Rev. Proc. 2006 –54, 2006 –2 C.B.
1035, is modified and superseded by this
revenue procedure. Rev. Proc. 2003– 40,
2003–1 C.B. 1044, is modified. Rev. Proc.
2014 –YY, is amplified. References in this
revenue procedure to Rev. Proc. 99 –32 will
be treated as references to Rev. Proc. 65–17,
1965–1 C.B. 833, as modified, amplified,
and clarified from time to time, for taxable
years beginning before August 24, 1999.
SECTION 18. EFFECTIVE DATE
This revenue procedure is effective for
MAP requests received on or after
[DATE].
SECTION 19. PAPERWORK
REDUCTION ACT
The collection of information con-
tained in this revenue procedure has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. § 3507) under control number
1545–2044.
An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid control number.
The collection of information in this
revenue procedure is in sections 3.02(2) –
(6), 3.05, 3.08, 4.02, 5.01, 8.02, 9.01(1),
11.02(2), 13.04, 13.06, and 14.03 – 14.05
and in the appendix. This information is
required, and will be used, to evaluate and
process the request for competent author-
ity assistance. The likely respondents are
individuals or business or other for-profit
institutions.
The estimated total annual reporting
and/or recordkeeping burden is 9,000 hours.
The estimated annual burden per re-
spondent/recordkeeper is 30 hours. The
estimated number of respondents and/or
recordkeepers is 300.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by section 6103 of the Code.
SECTION 20. DRAFTING
INFORMATION
The principal authors of this revenue
procedure are John Hughes, Robert Cole,
Rebecca Kalmus, and Anthony Ferrise of
the Office of the Deputy Commissioner
(International), LB&I; and Michael Skut-
ley of the Office of the Associate Chief
Counsel (International). For further infor-
mation regarding this revenue procedure,
contact either Mr. Ferrise at (202) 515-
4349 or Mr. Skutley at (202) 317-5440
(not toll-free calls).
APPENDIX
This appendix sets forth instructions on
preparing and filing a MAP request. Un-
less the U.S. competent authority has ex-
plicitly instructed the taxpayer otherwise
in writing, the MAP request must be pre-
pared and submitted according to the in-
structions provided in this appendix. The
U.S. competent authority may reject a
MAP request that does not comply with
these instructions. Certain MAP request
requirements apply only to MAP requests
filed with APMA. Other MAP request re-
quirements apply only to MAP requests
filed with TAIT. Unless otherwise stated,
the MAP request requirements listed in
this appendix apply to MAP requests filed
with either APMA or TAIT.
A complete MAP request must include
the general MAP request items as set forth
in section 1 of this appendix and, when
applicable, the specific MAP request
items for discretionary LOB relief and
foreign pension plan determinations as set
forth in sections 2 and 3, respectively.
Instructions on filing printed and elec-
tronic copies of MAP requests are set
forth in section 4. Section 5 provides ad-
dresses and contact information.
SECTION 1. GENERAL MAP
REQUEST ITEMS
.01Overview.General MAP request
items must be presented in a cover letter
followed by the attachments, presented in
the order listed in section 1.03 of this
appendix. The cover letter and the attach-
ments must contain or respond to the re-
quired statements, descriptions, explana-
tions, and other requested information. If
the requested information is not applica-
ble to the MAP request, this must be in-
dicated by “N/A.”
.02MAP Request Cover Letter.
(1)Process.The cover letter must be
addressed to the Deputy Commissioner (In-
ternational) at the address provided in sec-
tion 5 of this appendix. An original of the
cover letter, signed and dated by a person
having authority to sign the taxpayer’s fed-
eral tax returns, must be included in one of
the three required printed copies of the
MAP request (seesection 4 of this appen-
dix). In a case involving a request for either
discretionary LOB relief or a foreign pen-
sion plan determination where the person
requesting relief does not file federal tax
returns, the cover letter may be signed and
dated by any authorized representative or
officer of such person.
(2)Content.The cover letter must con-
tain an introductory statement that the tax-
payer seeks assistance of the U.S. compe-
tent authority. The letter then must contain
or respond to each of the statements, de-
scriptions, explanations, and other re-
quested information listed under this sec-
tion 1.02, according to the instructions
and structure set forth in this section.
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Part 1. Identifying Information and Summary of Issues and Proceedings
Part 2. MAP Issue(s)
1.1U.S. competent authority office: State the office of the U.S. competent authority – APMA (transfer pricing) or
TAIT (non-transfer pricing) – to which the MAP request is directed
1.2Identifying information: List the names, addresses, country of residence for purposes of the treaty, U.S. taxpayer
identification number(s), and foreign taxpayer identification number(s) (if any) of the members of the controlled
group whose taxable incomes would be affected by a MAP resolution being reached in the taxpayer’s MAP case
1.3Authorization: List the names and contact information for the taxpayer’s point of contact for the U.S competent
authority, together with an indication as to which point of contact (if any) has been empowered by a Form 2848,
Power of Attorney and Declaration of Representative, or Form 8821,Tax Information Authorization(seeAttach-
ments, Tab 1)
1.4IRS Office: Provide the following information:
a. For U.S.-initiated adjustments, the IRS office that has made the adjustment, together with the name of and con-
tact information for the taxpayer’s IRS Examination team manager; or
b. For non-U.S.-initiated actions, the contact information for the IRS office having examination jurisdiction over the
taxpayer or U.S. members of the controlled group, together with the name of and contact information for the taxpay-
er’s IRS Examination team manager if the taxpayer is under examination when the MAP request is filed
1.5Treaty(ies): Identify the U.S. tax treaty(ies) and articles under which the request is being filed
1.6Summary of MAP issue(s): Provide a summary of the discussion in Part 2.1, setting forth the MAP issue(s) for which
assistance is being requested
1.7Years and amounts: Provide the taxable years and amounts at issue, presented in both U.S. dollars and foreign currency,
together with the exchange rate(s) that was (were) used for currency conversion during the applicable taxable years
1.8Taxpayer proceedings: Provide a summary of relevant U.S. and foreign judicial or administrative proceedings involving
the taxpayer or other members of the controlled group, including all information related to notifications provided to the
treaty country(ies)
1.9Other proceedings: To the extent known, provide a summary of relevant foreign judicial or public administrative pro-
ceedings not involving the taxpayer or members of the controlled group but concerning a similar MAP issue for which
the MAP request is being filed
1.10Statutes of limitations: Provide the expiration dates of applicable statutes of limitations in both the United States and the
treaty country(ies) for the taxable years covered by the MAP request
2.1MAP issue(s): Provide a thorough, informative explanation of the MAP issue(s) for which assistance is requested,
including, but not limited to, descriptions or discussions of the:
a. Relevant transactions, activities, or other circumstances surrounding the MAP issues for which the request is
made;
b. The taxpayer’s understanding of the legal basis for the adjustment;
c. The taxpayer’s view on the justification for assistance under the applicable U.S. tax treaty(ies); and
d. Content of any related requests for assistance submitted to the foreign competent authority, together with an
explanation of any material differences between the MAP request filed under this revenue procedure and the
request filed with the foreign competent authority
2.2Prior U.S. competent authority assistance: State whether or not the MAP issue(s) set forth in the MAP request is
(are) the same or similar to an issue(s) considered in a prior MAP or APA request covering the same or prior tax-
able years, and, if so, summarize the terms of the resolution of the issue by the U.S. competent authority
2.3Pre-filing information: Provide the following information:
a. Whether a mandatory or optional pre-filing memorandum was filed; and
b. Whether a pre-filing conference was held and, if so, the date of and attendees at the conference
December 9, 2013Bulletin No. 2013–50
648

Part 3. Assistance Requested and Required Statements
.03MAP Request Attachments. The MAP request must also include the following attachments after the cover letter, separated and
ordered as indicated in this section 1.03. If an attachment in the list below is not applicable to the MAP request, the attachment should
indicate this by “N/A.”
3.1Coordination with other proceedings: Provide the following information:
a. Whether the taxpayer seeks SAP review;
b. Whether and when the taxpayer filed an examination resolution notification pursuant to section 9.01(1) of the
revenue procedure and, if so, the date upon which the U.S. competent authority notified the taxpayer of its
agreement to the terms of such resolution; and
c. The date of any opening conference with IRS Appeals in which the MAP issue(s) in the MAP request was
(were) discussed; and the issues, if any, set forth in the taxpayer’s protest that remained within the jurisdiction
of IRS Appeals and from which the MAP issue(s) covered by the MAP request has (have) been severed
3.2ACAP years: For MAP requests filed with APMA, provide the following information:
a. Whether the taxpayer requests ACAP and, if so, the ACAP years proposed to be covered;
b. Whether the taxpayer does not seek to apply the MAP resolution to one or more ACAP years and its reasons for not
requesting ACAP (such as the transactions at issue not having occurred in subsequent taxable years); and
c. Whether the taxpayer has filed a bilateral or multilateral APA request pursuant to Rev. Proc. 2014–YY that proposes
to cover the same issues covered by the MAP request and whether it includes a rollback request for ACAP years
3.3Ancillary issues: List the ancillary issues (if any) the taxpayer requests be addressed in the MAP resolution
3.4Attachments: List any required MAP request attachments that the taxpayer has not included in its MAP request, together
with explanations as to why such items are not included (e.g., “N/A”)
Tab 1Authorization form: Include a properly executed Form 2848 (Power(s) of Attorney and Declaration of Represen-
tative) or Form 8821 (Tax Information Authorization)
Tab 2ACAP requests: If the taxpayer is requesting ACAP, provide a statement that the taxpayer agrees to the following:
a. The inspection of books of account or records under ACAP will not preclude or impede (under section 7605(b) of
the Code or any administrative provision adopted by the IRS) a later examination of a return or inspection of
books of account or records for any taxable period covered in the ACAP request; and
b. The IRS need not comply with any applicable procedural restrictions (e.g., providing notice under section 7605(b)
of the Code) before beginning such examination or inspection
Tab 3Protective claim and treaty notification: If applicable, provide the following information:
a. A statement that the MAP request is to serve as a protective claim pursuant to section 13 of the revenue procedure,
together with the information required by section 13.02(3); and
b. A statement that the MAP request is to provide treaty notification pursuant to section 14 of the revenue procedure
Tab 4Consent to disclosure: Include a declaration, dated and signed by a person having authority to sign the taxpayer’s
federal tax returns, that the taxpayer consents to the disclosure of the contents of the MAP request – other than trade
secrets, if the taxpayer so requests – to the applicable foreign competent authority(ies) within the limits contained in
the U.S. tax treaty(ies) governing the MAP request
Tab 5“Penalties of perjury” declaration: Include the following “penalties of perjury” declaration:
Under penalties of perjury, I declare that I have examined this request, including accompanying documents, and, to the best
of my knowledge and belief, the facts presented in support of the MAP request are true, correct, and complete.
The declaration must be dated and signed by the person(s) on whose behalf the request is being made and not by
the taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the
taxpayer having personal knowledge of the facts. The person signing for a trust, an estate, or a partnership must
be a trustee, an executor, or a partner, respectively, who has personal knowledge of the facts
Tab 6Written notice of adjustment: Provide the following information:
a. For U.S.-initiated adjustments, a copy of the written notice of the adjustment, e.g., the Form 5701 or Form
4549, and any related attachments received from IRS Examination; or
b. For non-U.S.-initiated actions: (1) an English translation of any official notice(s) of the adjustment to taxable
income reported in the treaty country(ies) upon which the MAP request is based; and (2) a copy of the offi-
cial notice(s) of such adjustment(s) in the original language
Bulletin No. 2013–50December 9, 2013
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.04Small Case MAP Requests Filed with APMA. Taxpayers filing small case MAP requests with APMA may exclude the
information requested in Tabs 8, 9(a), and 9(d) from their MAP requests. This section does not apply to a MAP request involving
a taxpayer-initiated position.
SECTION 2. REQUESTS FOR DISCRETIONARY LOB RELIEF
.01In General.In addition to the requirements of section 1 of this appendix, a request for discretionary LOB relief must also
include the following information.
Part 4. Additional Information for Requests for Discretionary LOB Relief
4.1Information necessary for identification and request review:
a. Statement about the type(s) of benefits requested (e.g., dividends, interest, royalties, branch profits, etc.) and the
relevant treaty provision(s) and amount of income at issue;
b. Date on which the applicant requests that the determination become effective; and
c. Statement as to whether the applicant made a previous request and the ultimate disposition of that request
4.2Applicant organization information:
a. Narrative description of the business activities of the applicant’s U.S., foreign, and group holdings that describes the
ownership structure and any recent restructurings in ownership and the purposes therefor relevant to the applicant and
its ultimate owner(s), including the tax reasons for the use of any hybrid entities in the structure;
b. In the case of a country that applies a territorial or exemption system for relieving double taxation on income or gain
attributable to an office or branch in a third country, whether the applicant conducts business in the United States
through such an office or permanent establishment, and if so, the name of the country in which the office or branch
is located, the type of income or gain derived by the office or branch, and the applicable rate of tax applied to that
income in that third jurisdiction;
c. Name, address, and U.S. taxpayer identification number of U.S. entities related to the applicant from whom income
covered by the request was or will be received;
d. A chart with the name and country of tax residence or organization of every entity, along with its ownership interest
in any intermediate entity, including its entity classification under U.S. and foreign law, between the applicant and
ultimate owners of the applicant, (e.g., publicly traded corporations, pensions or other tax-exempt entities, govern-
ments, or individuals);
e. Description of the control and business relationships between the applicant and relevant persons for the years in issue,
including any changes in such relationships prior to the date of the request; and
f. Description of the relevant transactions, activities, or other circumstances involved in the matter covered by the request
Tab 7E-mail authorization: Except for individuals or for taxpayers eligible to file small case MAP requests under section 5
of the revenue procedure, include a signed original of the memorandum of understanding authorizing communica-
tions with the U.S. competent authority via e-mail, or a statement that the taxpayer does not authorize e-mail commu-
nications, together with a brief explanation for declining to do so (seesection 3.08 of the revenue procedure)
Tab 8Information or documents in a foreign language: List any information or documents in a foreign language that are
submitted to a foreign tax authority or foreign competent authority in connection with, or that are otherwise relevant
to, the MAP request and for which a full translation in English is not provided
Tab 9MAP requests filed with APMA: For MAP requests filed with APMA, provide the following information:
a. A copy of documentation prepared pursuant to section 6662 of the Code or other documentation analyzing the
MAP issues for the taxable years covered by the MAP request;
b. Financial data prepared for official statutory, regulatory, or other reporting purposes for the taxpayer’s controlled
group (whether corporate parent is a U.S. person or not) for all taxable years covered by the MAP request;
c. Income statements and balance sheets, segmented as necessary to demonstrate the effect of the MAP issue(s) on
taxable income for the taxpayer and the members of the controlled group for all taxable years covered by the MAP
request and, as applicable, for the three taxable years ending before and the three taxable years ending after the
years covered by the MAP request; and
d. Diagrams similar to “covered issue diagrams” required for APA requests, as described in the appendix to Rev.
Proc. 2014–YY
Tab 10Pre-filing submissions: Include any pre-filing memoranda or other materials submitted in connection with the MAP
request
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4.3Applicant financial statement information:
a. Financial statements, if available, for the years in issue of the applicant and any U.S. branch or related entity
that paid or will pay income to the applicant during the period covered by the request; and
b. Annual reports of any publicly traded shareholder that directly or indirectly owns stock in the applicant for the
years in issue, and an English translation of any similar filings with securities regulators reflecting the structure
or transaction that is the subject of the request for the years in issue, if applicable
4.4Additional applicant information:
a. Analysis of why the applicant does not meet each of the objective tests listed in the treaty LOB article (e.g., if
the company fails the base erosion test because it pays more than half of its gross income in the form of de-
ductible expenses to persons not authorized by the treaty, including an explanation as to the reasons for making
payments to such persons, or if a company is engaged in the active conduct of a trade or business in its country
of residence, an explanation of what specifically prevents the company from meeting the active trade or busi-
ness test in the treaty, or if the applicant’s parent was recently delisted from a recognized stock exchange and
why, or if the applicant’s parent is publicly traded on a stock exchange not recognized under the treaty);
b. Explanation of the non-tax business reasons why the applicant was formed or maintained in the particular treaty
country (e.g., that the country is the source of raw materials, the customer base is located in the country, sub-
stantial functions of the company’s business are located in the country, a substantial amount of services are per-
formed in the country, or rents or royalties are derived from such country), and an explanation for any recent
changes in these activities;
c. Detailed description of the facts and circumstances that demonstrate that the applicant has a sufficient relation-
ship or nexus to the treaty country;
d. Analysis of any relevant factor for determining whether to grant a request for discretionary LOB relief, as indi-
cated, for example, by the applicable U.S. tax treaty and Treasury Department Technical Explanation to the
U.S. tax treaty;
e. Statement from the applicant as to whether any entity in the ownership chain between the applicant and the
publicly held entity (including the publicly held entity) is a nominee, agent, or otherwise a conduit, and if so,
why it is arranged in that manner;
f. English translations of all tax rulings or tax concessions issued to the applicant by the country in which it is
organized, or a statement of whether the applicant otherwise benefits from a special tax regime in that country,
and a description of the benefits;
g. If the applicant has requested a certification from its country of residence regarding entitlement to the benefits
of the treaty, where applicable, a copy of all correspondence from the treaty country;
h. Statement from the applicant whether an examination by any tax authority has been or is currently in process
that is related to the relief request;
i. Whether a request for an APA has been or is anticipated to be made with respect to the income that is covered
by the request;
j. Statement whether each entity between the applicant and the ultimate shareholders meets the base erosion test of
the treaty;
k. If the requested treaty benefits relate to dividends, a description of the capital structure of the applicant and of
the U.S. entity paying the dividends, including details about each class of shares and associated rights (e.g.,
voting, conversion, dividend rate, etc.), the period during which the structure was in effect, and any reorganiza-
tions in the United States or of the applicant abroad, including change of residence;
l. If the requested treaty benefits relate to interest, a general description of the terms of indebtedness, the method
used to calculate interest, and the existence of embedded options or other derivative structures; whether the debt
is registered or in bearer form; whether it is publicly traded and, if so, on which exchange; whether it is held by
a hedge fund or other type of investment vehicle; and whether the ultimate owners are known to the applicant;
m. If the requested treaty benefits relate to royalties, a description of the intangible property generating the royalty
payments, when the applicant gained the rights to this property, and the terms of the royalty agreement;
n. In the case of an applicant that is a hybrid entity, or that owns an interest in a hybrid entity through which it
derives income, profit, or gain with respect to which it seeks treaty benefits, a detailed explanation of why the
applicant derives the income in accordance with the relevant treaty provisions; and
o. Statement of understanding that if the request for discretionary LOB relief is accepted by the U.S. competent
authority the applicant is required to remit the user fee as provided by section 16 of the revenue procedure
Bulletin No. 2013–50December 9, 2013
651

.02Pre-filing Memorandum.The applicant must submit a pre-filing memorandum indicating whether a pre-filing conference is
requested in accordance with section 3.02(3)(f) of the revenue procedure.
SECTION 3. “GENERALLY CORRESPONDS” PENSION DETERMINATIONS
In addition to the requirements of section 1 of this appendix, a request seeking a determination that a foreign pension plan generally corresponds
to a pension plan recognized for tax purposes in the United States must also include the following information:
Part 5. Additional Information for Requests for “Generally Corresponds” Pension Determinations
SECTION 4. MANNER OF FILING MAP REQUESTS
.01In General.The taxpayer must provide four copies of its MAP request as follows: one (1) original, bound printed submission
containing signed originals of the cover letter, “penalties of perjury” declaration, consent to disclosure, and, as applicable,
authorization forms, including e-mail authorization, along with printed copies of all other required information; two (2) bound
photocopies of the contents of the original printed submission; and one (1) electronic copy of the contents of the original printed
submission on CD or flash drive or similar acceptable electronic storage medium. All four (4) copies of the MAP request must be
filed with the U.S. competent authority at the address set forth in section 5 of this appendix.
.02Exemptions for Small Case Filings with TAIT. Unless otherwise instructed by the U.S. competent authority, taxpayers filing
small case MAP requests with TAIT are only required to file a single printed copy of the request. Also, such taxpayers may, but are
not required to, file an electronic copy of the MAP request.
.03Format of Printed Copies.Each printed copy may be filed in one or more bound volumes. The attachments must be tabbed
or separated and identified and ordered as presented in section 1 of this appendix. If an attachment is not applicable to the MAP
request, a statement to this effect must be included in the relevant tabbed section.
.04Content and Format of Electronic Copy.
(1)Content. The electronic copy of the MAP request must contain: (1) the cover letter to the MAP request, with all required
statements, declarations, explanations, documents, information, data, and all other requested materials; and (2) all required
attachments. The attachments should consist of separate electronic files named in a manner that corresponds to the tab numbers
presented in section 1 of this appendix. If an attachment is not applicable to the MAP request, a statement to this effect must be
included in the electronic file.
(2)Format.Suitable formats for the documents in the electronic copy include Microsoft Word, Excel, PowerPoint, and Adobe
Portable Document Format. Any document that is readily available in Microsoft Word, Excel, or PowerPoint format should be
provided in that format rather than, or in addition to, Adobe Portable Document format.
SECTION 5. ADDRESSES AND CONTACT INFORMATION
.01APMA Contact Information.
5.1Copies of the Plan Documents (translated into English). For this purpose, the Plan Documents include the plan
itself, the trust agreement, the summary plan description or similar document provided to participants, and any
other document that will assist the U.S. competent authority in making its determination.
5.2If the plan at issue relates to another plan of the employer, copies of the Plan Documents (as defined above) for
that other plan (translated into English)
5.3Copies of all applicable statutory provisions that govern the foreign pension plan (translated into English)
5.4An explanation of why the foreign pension plan should be deemed to “generally correspond” to a pension plan
recognized for tax purposes in the United States.
Telephone number:TBD
Mailing address:Deputy Commissioner (International)
Large Business and International Division
Internal Revenue Service
1111 Constitution Avenue, N.W.
Routing: M3-370
Washington, D.C. 20224
(Attention: APMA)
December 9, 2013Bulletin No. 2013–50
652

All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS,
FedEx, UPS, or any other carrier.
.02TAIT Contact Information.
All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS,
FedEx, UPS, or any other carrier.
Proposed Revision of
Procedures for Advance
Pricing Agreements
Notice 2013–79
PURPOSE
This notice proposes a revenue proce-
dure that would update and supersede
Rev. Proc. 2006 –9, 2006 –1 C.B. 278, as
modified by Rev. Proc. 2008 –31, 2008 –1
C.B. 1133, which is also superseded. The
proposed revenue procedure would pro-
vide guidance and instructions on APAs
and guidance and information on the
IRS’s administration of APAs.
Theproposedrevenueprocedure
would substantially restate Rev. Proc.
2006-9 to improve clarity, readability, and
organization. The proposed revenue pro-
cedure also would reflect structural
changes undertaken by the IRS since
2006, including the establishment of the
Large Business & International Division,
the realignment and consolidation of IRS
transfer pricing resources under the Direc-
tor, Transfer Pricing Operations, and the
creation of the Advance Pricing and Mu-
tual Agreement Program, the office re-
sponsible for evaluating, executing, and
administering APAs on behalf of the IRS.
Additionally, the proposed revenue
procedure would effect a limited number
of significant substantive changes. These
changes may be summarized as follows:
Website:[link to be included when available]
Office location:801 Ninth Street, N.W., Washington, D.C. 20001.
Mail should not be sent to this address.
Telephone number:TBD
Mailing address:Deputy Commissioner (International)
Large Business and International Division
Internal Revenue Service
1111 Constitution Avenue, N.W.
Routing: M4-365
Washington, D.C. 20224
(Attention: TAIT)
Website:[link to be included when available]
Office location:801 Ninth Street, N.W., Washington, D.C. 20001.
Mail should not be sent to this address.
Bulletin No. 2013–50December 9, 2013
653

Section of Proposed
Update to Rev. Proc.
2006–9
Nature of Addition or Changes
2.02(3)Explains potential interactions between requests for advance pricing agreements and requests for compe-
tent authority assistance. Recognizes that APMA may, in appropriate circumstances, condition its accep-
tance of an APA request upon taxpayer’s agreeing to roll back the terms of the proposed APA. Further
recognizes that APMA may, in appropriate circumstances, encourage a taxpayer that has sought AP-
MA’s assistance for a MAP case to extend the MAP resolution to APA years.
2.02(4)Restates a preference for bilateral and multilateral APAs over unilateral APAs and makes clear that
APMA may reject a unilateral APA request if its acceptance would be inconsistent with procedures and
practices established with particular treaty partners.
2.03(3)Requires that the taxpayer execute consent agreement(s) as necessary to extend the period of limitations
for assessment of tax for each proposed APA year and each proposed APA rollback year.
3.02Provides expanded pre-filing procedures, including mandatory submission of a pre-filing memorandum
in cases raising certain issues.
3.02(2)Provides that a taxpayer filing an APA request eligible for the small case APA user fee may seek per-
mission to submit an abbreviated APA request.
3.03(3)–(5)Provides for a new filing deadline for bilateral and multilateral APA requests.
3.04(1)Establishes an appendix listing revised specifications for the content of APA requests.
3.06Provides for e-mail communications between APMA and a taxpayer’s representative pursuant to a mem-
orandum of understanding executed by the taxpayer.
3.07Provides that a protective claim for credit or refund may be made by including the claim in a bilateral or
multilateral APA request.
3.08Clarifies that a complete APA request (updated and supplemented as required) will be a factor in deter-
mining whether the taxpayer has met the documentation requirements of Treas. Reg. §1.6662–
6(d)(2)(iii) for the proposed APA years.
4.01Describes procedures for notification of receipt of an APA request.
4.02States circumstances in which APMA may deny assistance with respect to an APA request or during the
APA process.
4.02(3)Clarifies that APMA’s decision as to whether an APA request is complete or to deny, suspend or termi-
nate assistance is not subject to administrative review.
4.03Describes general practices that APMA will follow after an APA request has been filed with respect to,
among other things, issuing case plans, conducting due diligence, and conveying its views on APA re-
quests to the taxpayer.
4.05Clarifies that mandatory arbitration may apply to certain bilateral or multilateral APA requests.
5.01Elaborates on potential coordination between requests for advance pricing agreements and requests for compe-
tent authority assistance. Provides that a taxpayer may seek permission to submit an abbreviated APA request
if the relevant factors surrounding its proposed APA years and any proposed APA rollback years are substan-
tially the same as those in its MAP years or its MAP and ACAP years covered by a MAP resolution. Pres-
ents protocols for seeking permission to file an abbreviated APA request in these circumstances.
5.02(4)States that APMA reserves the right to coordinate with applicable IRS offices to pursue an APA rollback to
any or all of the taxpayer’s open pre-APA years, regardless of whether the taxpayer requests an APA rollback.
5.02(5)Clarifies that an APA rollback request submitted in connection with a bilateral or multilateral APA request
and involving a taxable year under the jurisdiction of IRS Appeals will constitute a request for the Simultane-
ous Appeals Procedure, provided that the taxpayer provides an affirmative statement requesting SAP review.
5.02(6)Clarifies that, except in unusual circumstances, an APA rollback will not be made to a taxable year whose
period of limitations for assessment of tax has expired in the United States.
7.02Restates and revises the treatment of and procedures regarding repatriation payments for bilateral or multilat-
eral APAs and unilateral APAs.
8.01Provides that a taxpayer may seek permission to submit an abbreviated APA request in cases involving
renewals of current APAs if the relevant factors of the current APA are substantially the same as those
in the proposed renewal APA years. Presents protocols for seeking permission to file an abbreviated
APA request in these circumstances.
Appendix – 3.04Revises qualifications for small case APA user fee eligibility.
December 9, 2013Bulletin No. 2013–50
654

The IRS and the Treasury Department
request comments on this proposed rev-
enue procedure. Comments may be sub-
mitted in writing on or before March 10,
2014. Comments should be submitted to
Internal Revenue Service, CC:PA:LP-
D:PR (Notice 2013–79), Room 5203,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044, or electronically
toNotice.Comments@irscounsel.treas.gov.
Please include ”Notice 2013–79” in the sub-
ject line of any electronic communications.
Alternatively, comments may be hand de-
livered between the hours of 8:00 a.m. and
4:00 p.m. Monday to Friday to CC:PA:LP-
D:PR (Notice 2013–79), Courier’s Desk, In-
ternal Revenue Service, 1111 Constitution
Ave., NW, Washington, DC. All comments
will be available for public inspection and
copying.
The procedures for APAs are proposed
to be revised as follows:
PROPOSED REVENUE PROCEDURE
ProceduresforAdvancePricing
Agreements
Internal Revenue Code § 482: Alloca-
tion of income and deductions among tax-
payers
Rev. Proc. [2014–YY]
SECTION 1: DEFINTIONS AND RULES OF CONSTRUCTION..............................................
SECTION 2: PURPOSE, BACKGROUND, SCOPE, AND GENERAL CONDITIONS UNDER WHICH THIS
PROCEDURE APPLIES................................................................................
SECTION 3: PROCEDURES FOR FILING APA REQUESTS.................................................
SECTION 4: ACTIONS ON APA REQUESTS..............................................................
SECTION 5: APA ROLLBACKS AND COORDINATION WITH REV. PROC. 2014-XX..........................
SECTION 6: LEGAL EFFECT OF AN APA...............................................................
SECTION 7: ADMINISTERING AN APA.................................................................
SECTION 8: RENEWING AN APA......................................................................
SECTION 9: DISCLOSURE.............................................................................
SECTION 10: EFFECT ON OTHER DOCUMENTS.........................................................
SECTION 11: EFFECTIVE DATE........................................................................
SECTION 12: PAPERWORK REDUCTION ACT...........................................................
SECTION 13: DRAFTING INFORMATION................................................................
APPENDIX...........................................................................................
Bulletin No. 2013–50December 9, 2013
655

SECTION 1. DEFINITIONS AND RULES OF CONSTRUCTION
.01Definitions.For purposes of this revenue procedure, the following terms have the meanings set forth in this section.
Abbreviated APA
request
An APA request from which APMA has explicitly authorized the taxpayer to omit otherwise re-
quired information, documents, or content, in contrast to a complete APA request, which must
meet all of the requirements discussed in section 3.04 and as set forth in the appendix
ACAPAccelerated competent authority procedure (seesection 4 of Rev. Proc. 2014–XX)
ACAP requestA request filed under section 4 of Rev. Proc. 2014–XX to include ACAP years in a MAP case
ACAP yearsTaxable years covered by an ACAP request or eligible for ACAP
Ancillary issuesSubsidiary issues eligible for coverage by an APA, including APA repatriation (seesection 7),
interest on refunds and deficiencies, penalties with respect to U.S.-initiated adjustments, and the
determination of whether a payment is compulsory for foreign tax credit purposes as provided in
Treas. Reg. §1.901–2(e)(5)
APAAn advance pricing agreement
APA annual
report
The report prepared for each APA year demonstrating the taxpayer’s compliance with the cov-
ered method(s) and APA terms and conditions
APA primary
adjustment
An adjustment made to a taxpayer’s actual results such that its reported taxable income is consis-
tent with the application of the covered method(s)
APA processThe series of formal or informal steps described in this revenue procedure or established by the
APA team during the course of its evaluation of an APA request that are involved in reaching an
APA, including steps involved in meeting pre-filing requirements
APA repatriationThe treatment of repatriation payments under an APA
APA requestA request for a unilateral, bilateral, or multilateral APA submitted under this revenue procedure
APA rollbackThe application (with appropriate modifications, if necessary) of the covered method(s) of an
APA to specific pre-APA years
APA rollback
request
A request for an APA rollback submitted under this revenue procedure
APA teamThe IRS team assembled to process an APA request
APA team leaderThe designated APMA team leader who serves as the taxpayer’s point of contact during the APA
process
APA termAll of the APA years covered by an APA
APA terms and
conditions
The terms and conditions of the APA, including the APA years, operational and compliance pro-
visions, critical assumptions, and record-keeping and annual reporting responsibilities
APA yearA taxable year covered by an APA
APMAThe Advance Pricing and Mutual Agreement Program, a representative office of the U.S. compe-
tent authority and one of the divisions of TPO
Arbitration treatyA U.S. tax treaty in which the mutual agreement procedure article includes a provision for man-
datory arbitration of certain cases, as described in section 12 of Rev. Proc. 2014–XX
Bilateral APAAn APA in which the covered issue(s), covered method(s), and APA terms and conditions are
premised on an underlying MAP resolution reached between the U.S. competent authority and a
foreign competent authority
Bilateral APA
request
A request for a bilateral APA submitted under this revenue procedure
CodeThe Internal Revenue Code of 1986 (26 U.S.C.), as amended
Controlled groupThe group of controlled taxpayers, within the meaning of the term set forth in Treas. Reg.
§1.482-1(i), of which the taxpayer filing the APA request is a member
Coverable issuesThe issues eligible to be covered by an APA, including issues arising under section 482 of the
Code; certain MAP issues, notably those arising under the business profits and associated enter-
prises articles of U.S. income tax treaties; determinations of the income effectively connected
with the conduct of a trade or business within the United States; determinations of the respective
amounts of income sourced from within and without the United States in the case of income de-
rived from both such sources; ancillary issues; and any other issues for which transfer pricing
principles may be relevant to their resolution by APMA
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656

Covered groupThe group of U.S.- and non-U.S. taxpayers within a controlled group, including the taxpayer fil-
ing the APA request, whose intercompany transactions or other business activities are within the
scope of the covered issue(s)
Covered issue
diagrams
Diagrams, charts, or similar representations described in the appendix that depict, among other
items, the legal structure, tax structure, business unit structure, intercompany flows, and value
chain of the controlled group and proposed covered group
Covered issue(s)The coverable issue(s) that is (are) covered by the APA
Covered meth-
od(s)
The transfer pricing method(s) or other method(s) set forth in the APA for determining the tax-
able income of each member of the covered group in relation to the covered issue(s)
Critical assump-
tion
Any fact the continued existence of which is material to the issue(s) and method(s) covered by
an APA, whether related to the taxpayer, a third party, an industry, or business and economic
conditions
Dollar file re-
quest
An APA request for which the required user fee is paid before, and which is then submitted by,
the deadline set forth in section 3.03(4)
Filed yearA taxable year for which a U.S. federal income tax return has been filed, determined by reference
to the stage in the APA process at which the characterization as filed or not filed is relevant
Foreign compe-
tent authority
The competent authority of a treaty country
Global trading
arrangement
Global trading arrangement: Any arrangement involving multiple associated enterprises or the
business unit(s) of an enterprise that operate in more than one country and that trade or deal in
securities and/or other financial products, either on their own behalf or on behalf of clients.
Global trading arrangements may encompass functions ancillary to the foregoing activities.
Intangible devel-
opment arrange-
ment
Any arrangement for sharing the costs and risks of developing intangibles, including a cost shar-
ing arrangement as defined in Treas. Reg. §1.482–7 or a qualified cost sharing arrangement as
defined in Treas. Reg. §1.482–7A (collectively, a “CSA”), or an arrangement (other than a CSA)
for sharing the costs and risks of developing intangibles to which the consideration of the princi-
ples, methods, comparability, and reliability considerations set forth in Treas. Reg. §1.482–7 is
relevant in determining the best method, under Treas. Reg. §1.482–4(g) or Treas. Reg. §1.482–
9(m)(3), as appropriately adjusted in light of the differences in the facts and circumstances be-
tween such arrangement and a CSA.See alsoTreas. Reg. §1.482–1(b)(2)(iii)
IRSInternal Revenue Service
IRS ExaminationThefunction(s) within the IRS responsible for examining federal tax and information returns and as-
certaining the correctness of any return for purposes of determining the tax liability of taxpayers
LB&ILarge Business & International Division of the IRS
MAPActions taken by the U.S. competent authority and consultations between the U.S. and foreign compe-
tent authorities under U.S. tax treaties, principally the mutual agreement procedure article
MAP caseA case initiated by a MAP request or by the U.S. competent authority under Rev. Proc. 2014–XX
involving one or more MAP issues in a given MAP year or set of years
MAP issueAn issue that can be resolved by the U.S. competent authority, principally under the mutual agreement
procedure article of a U.S. tax treaty
MAP processAll steps in the process of reaching a MAP resolution of a MAP case under Rev. Proc. 2014–XX
MAP repatriationThe treatment of repatriation payments pursuant to a MAP resolution, as defined in Rev. Proc.
2014–XX
MAP requestA request for assistance of the U.S. competent authority filed under Rev. Proc. 2014–XX
MAP resolutionAresolution of (i) MAP issues constituting a MAP case under Rev. Proc. 2014–XX or (ii)
MAP issues constituting a case initiated by a bilateral or multilateral APA request under this
revenue procedure
MAP yearA MAP year, as defined in Rev. Proc. 2014–XX
Multilateral
APA
An APA in which the covered issue(s), covered method(s), and APA terms and conditions
are premised on one or more underlying MAP resolutions reached between the U.S. compe-
tent authority and more than one foreign competent authority
Multilateral
APA request
A request for a multilateral APA submitted under this revenue procedure
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OECD
Guidelines
The transfer pricing guidelines promulgated by the Organisation for Economic Cooperation and
Development
Opening
conference
The first meeting between the taxpayer and an APA team after an APA request has been submit-
ted
Pre-APA yearAny taxable year ending before the first APA year
Pre-filing
conference
A conference held with APMA before an APA request is filed
Pre-filing
memorandum
A memorandum or similar paper submitted to APMA before an APA request is filed
Pre-filing
requirements
The requirements regarding pre-filing memoranda and pre-filing conferences as described in sec-
tion 3
Protective claimA notification to the U.S. competent authority described in section 13 of Rev. Proc. 2014–XX
and section 3.07
RegulationsU.S. Treasury regulations promulgated under the Code
Repatriation
payment
A payment (within the meaning of section 4.01 of Rev. Proc. 99–32) or prepayment offset
(within the meaning of section 4.02 of Rev. Proc. 99–32) made with respect to and not exceeding
the amount of an APA primary adjustment
Rev. Proc.
2014–XX
Rev. Proc. 2014–XX, 2014–Y I.R.B. ZZ
Rev. Proc. 99–32Rev. Proc. 99–32, 1999–2 C.B. 296
SAP reviewThe review of a MAP issue undertaken by IRS Appeals for the purpose of making a recommen-
dation to the U.S. competent authority under the Simultaneous Appeals Procedure of Rev. Proc.
2014–XX
Small case APA
user fee
The user fee required for APA requests that meet the criteria set forth in the appendix
TaxpayerUnless indicated otherwise by context, the member of the covered group that (i) submits the APA
request, (ii) executes the APA with the IRS, and (iii) is either a U.S. person, as defined in section
7701(a)(30) of the Code, or a non-U.S. person that is expected to file U.S. federal income tax
returns during the proposed APA years
TPOTransfer Pricing Operations, the director of which reports to the Deputy Commissioner (Interna-
tional), LB&I
Treas. Reg.U.S. Treasury regulations promulgated under the Code
Treaty countryA country other than the United States that has a U.S. income tax treaty in force
U.S. competent
authority
The Deputy Commissioner (International), LB&I, the Assistant Deputy Commissioner (Interna-
tional), and each other IRS official performing competent authority functions pursuant to applica-
ble delegation orders (seesection 2.03 of Rev. Proc. 2014–XX)
U.S. tax treatyA convention governing income, estate, or gift taxes to which the United States is a party and
that has entered into force, together with its implementing protocols, exchanges of diplomatic
notes, memoranda of understanding, and competent authority arrangements
U.S.-initiated
adjustment
A proposed or final adjustment made by the IRS to the taxable income reported by a taxpayer on
its U.S. federal income tax return
Unilateral APAAn APA in which the covered issue(s), covered method(s), and APA terms and conditions are
not premised upon an underlying MAP resolution
Unilateral APA
request
A request to enter into a unilateral APA under this revenue procedure
December 9, 2013Bulletin No. 2013–50
658

.02Section References.Unless indi-
cated by context or otherwise, section ref-
erences are to the sections of this revenue
procedure (including the appendix).
.03Deadline References. If a deadline
under this revenue procedure falls on a
Saturday, Sunday, or a legal holiday in the
District of Columbia, the deadline is ex-
tended to the next succeeding day that is
not a Saturday, Sunday, or a legal holiday
in the District of Columbia.
SECTION 2: PURPOSE,
BACKGROUND, SCOPE, AND
GENERAL CONDITIONS UNDER
WHICH THIS PROCEDURE APPLIES
.01 Purpose. This revenue procedure
provides taxpayers with guidance and in-
structions on filing APA requests and
guidance and information on the adminis-
tration of APAs. This revenue procedure
updatesandsupersedesRev.Proc.
2006 –9, 2006 –1 C.B. 278, as modified by
Rev. Proc. 2008-31, 2008-1 C.B. 1133,
which is also superseded.
.02Background and Principles.
(1) In February 2012, the IRS estab-
lished APMA to oversee its APA program
and to act as the representative office of
the U.S. competent authority responsible
for handling MAP cases arising under the
business profits and associated enterprises
articles of U.S. tax treaties. APMA also
has shared responsibility for cases arising
under the permanent establishment arti-
cles of U.S. income tax treaties. (Seesec-
tion 2.04 of Rev. Proc. 2014 –XX.) In
accordance with its mission, APMA en-
deavors to administer the programs within
its jurisdiction in a manner that secures
the appropriate tax bases of the United
States and its treaty partners, prevents fis-
cal evasion, and is otherwise consistent
with sound tax administration.
(2) APMA’s APA program provides a
voluntary process whereby the IRS and
taxpayers may resolve transfer pricing is-
sues and issues for which transfer pricing
principles may be relevant in a principled
and cooperative manner on a prospective
basis. APMA is committed to conducting
the APA process in a manner that is fair,
timely, and consistent with principles of
sound tax administration. The APA pro-
cess increases the efficiency of tax admin-
istration by encouraging taxpayers to
come forward and present all the facts
necessary for a proper evaluation of their
coverable issues and to work towards a
resolution of such issues in a spirit of
openness and cooperation. The voluntary
and prospective nature of the APA pro-
cess lessens the burden of compliance by
giving taxpayers greater certainty regard-
ing their covered issues and promotes the
principled resolution of these issues by
allowing for their discussion and resolu-
tion in advance before the consequences
of such resolution are fully known to ei-
ther taxpayers or the IRS.
(3) APAs and MAP resolutions of MAP
cases are two interconnected means by
which taxpayers can manage and address
transfer pricing and other cross-border tax
issues. In recognition of these connections,
APMA seeks to resolve APA and MAP
requests to achieve substantive and proce-
dural consistency and coordination in their
coverage and application. For example,
when warranted by similarity of facts and
circumstances across taxable years, APMA
will encourage a taxpayer to expand the
scope of its APA request to include an APA
rollback (with appropriate modifications, if
necessary) when a comprehensive resolu-
tion of coverable issues would further the
interests of sound tax administration.
APMA may also condition its acceptance of
an APA request upon the taxpayer’s agree-
ment to roll back the terms of its proposed
APA (with appropriate modifications, if
necessary) where APMA has clear interests
in doing so and the taxpayer does not offer
clear reasons against doing so. Conversely,
APMA may require a taxpayer that has
sought APMA’s assistance for a MAP case
to pursue ACAP to extend the MAP reso-
lution of the MAP case to one or more of its
ACAP years. APMA may also encourage
the taxpayer to extend the MAP resolution
even further into APA years. The relation-
ship between APAs, MAP cases, and
ACAP is addressed in more detail in section
5 and in Rev. Proc. 2014 –XX.
(4) APMA’s interest in coordinating
APAs and MAP cases is also reflected in its
preference for bilateral and multilateral
APAs over unilateral APAs. To minimize
taxpayer and governmental uncertainty and
administrative cost, bilateral and multilat-
eral APAs are generally preferable to uni-
lateral APAs, particularly when a contem-
poraneous bilateral or multilateral APA
request would have been effective and prac-
tical (within the meaning of Treas. Reg.
§1.901–2(e)(5)(i)) to obtain consistent treat-
ment of the covered issue(s) with a treaty
country or treaty countries. Furthermore, in
some circumstances, APMA may reject a
unilateral APA request if accepting it would
be inconsistent with procedures and prac-
tices established with particular treaty part-
ners. For these reasons, the taxpayer must
explain in a pre-filing memorandum why a
unilateral APA is appropriate to cover an
issue that could be covered by a bilateral or
multilateral APA (seesection 3.02(4)).
(5) Additionally, because APMA has a
strong interest in resolving transfer pric-
ing and other coverable issues in a timely
manner, APMA may encourage the tax-
payer to expand the scope of the proposed
APA to include coverable issues relevant
to the proposed covered issues when a
comprehensive resolution of coverable is-
sues would further the interests of sound
tax administration. APMA may also con-
dition its acceptance of an APA request
upon the taxpayer’s agreement to include
such other issues among the covered is-
sues, when APMA has clear interests in
doing so and the taxpayer does not offer
clear reasons against doing so.
(6) As appropriate, APMA will provide
oral,informaladvicetotaxpayers,
whether or not in the course of the APA
process, on general and specific matters
concerning APAs, including whether an
issue may be covered by an APA. Any
such informal advice is advisory and is
not binding on the IRS.
.03General Requirements for Initiat-
ing and Continuing the APA Process.
(1) To initiate the APA process, the
taxpayer must (i) meet the pre-filing re-
quirements set forth in section 3.02, as
applicable; (ii) submit a complete APA
request, as described in section 3.04; and
(iii) pay the correct user fee, as described
in section 3.05 and as instructed in the
appendix to this revenue procedure (gen-
erally referred to as the “appendix”).
(2) Throughout the APA process, the
taxpayer must supplement its APA re-
quest and provide updated information in
accordance with sections 3.10 and 3.11.
(3) Throughout the APA process, the
taxpayer and the IRS will execute consent
agreement(s) as necessary to extend the
period of limitations for assessment of tax
for each proposed APA year and for each
Bulletin No. 2013–50December 9, 2013
659

proposed APA rollback year. The tax-
payer will be instructed as to the type of
consent to execute, viz., general or re-
stricted, and the duration of the extension
for each proposed APA year and each
proposed APA rollback year. Any general
questions regarding the execution of con-
sents required by this section may be di-
rected to APMA by one of the means
identified in the appendix.
SECTION 3: PROCEDURES FOR
FILING APA REQUESTS
.01General. This section sets forth
procedures, rules, and guidelines relevant
to filing an APA request. This section also
addresses the taxpayer’s obligations be-
fore and after filing the request. Instruc-
tions on preparing and filing an APA re-
quest are also set forth in the appendix.
.02Pre-filing Requirements and Re-
quests for Pre-filing Guidance.
(1)General. In the interest of making
the APA process effective and efficient,
APMA invites, and in some cases re-
quires, the taxpayer to meet with APMA
in a pre-filing conference prior to filing
the APA request. For the same reason,
APMA invites, and in some cases re-
quires, the taxpayer to submit a pre-filing
memorandum prior to filing the APA re-
quest. Pre-filing requirements are set forth
in sections 3.02(3) through 3.02(7). Ques-
tions about pre-filing requirements may be
directed to APMA by one of the means
identified in the appendix.
(2)APA Requests Eligible for Small
Case APA User Fee.The pre-filing require-
ments set forth in sections 3.02(3) through
3.02(7) do not apply to APA requests that
are eligible for the small case APA user fee.
A taxpayer that seeks to file such an APA
request may submit the small case APA user
fee together with a complete APA request or
may contact APMA by one of the means
identified in the appendix to discuss filing an
abbreviated APA request.
(3)Requesting Pre-filing Conferences.A
taxpayer that wishes to hold a pre-filing
conference with APMA must submit its re-
quest as part of a pre-filing memorandum
filed pursuant to section 3.02(4) or 3.02(5).
(4)Mandatory Pre-filing Memoranda.
A pre-filing memorandum must be filed if
(a) the taxpayer wishes to file a unilateral
APA request to cover an issue that is
eligible for coverage by a bilateral or mul-
tilateral APA (seesection 2.02(4)); (b) the
taxpayer seeks permission to file an ab-
breviated APA request (seesection 5.01
or 8); or (c) the covered issue(s) proposed
by the taxpayer will, or could reasonably
be expected to, involve any of the follow-
ing: (i) the license or other transfer of
intangibles in connection with, or the de-
velopment of intangibles under, an intan-
gible development arrangement; (ii) any
arrangement that qualifies as a global trad-
ing arrangement; or (iii) unincorporated
branches, pass-through entities, hybrid en-
tities, or entities disregarded for U.S. tax
purposes. If a pre-filing memorandum is
not filed in the cases described in this
section, APMA may, among other possi-
ble actions, require that a pre-filing mem-
orandum be submitted before it will take
action on the APA request from the tax-
payer. APMA will not accept anonymous
pre-filing memoranda in the cases de-
scribed in this section.
(5)Optional Pre-filing Memoranda.A
taxpayer may voluntarily submit a pre-filing
memorandum in cases other than those set
forth in section 3.02(4). Although not re-
quired, APMA recommends that a pre-filing
memorandum be submitted for APA re-
quests that may present novel or complex
substantive or procedural issues. Optional
pre-filing memoranda may be submitted on
an anonymous basis. APMA generally rec-
ommends, however, that optional pre-filing
memoranda be provided on a named basis
so as to facilitate a more informed understand-
ing of the procedural and substantive issues
that may arise during the APA process.
(6)Contents of Pre-filing Memoran-
dum. If submitted pursuant to section
3.02(4), a pre-filing memorandum must
have a length and content appropriate to
the size and complexity of the covered
issue(s) proposed by the taxpayer. If sub-
mitted pursuant to section 3.02(5), the
pre-filing memorandum must have a
length and content appropriate to the sub-
stantive or procedural issues the taxpayer
wishes to raise with APMA. The memo-
randum must also do the following:
(a) Include a “penalties of perjury” state-
ment modeled on the statement set forth in
the appendix (unless the memorandum is
submitted on an anonymous basis);
(b) State whether the taxpayer seeks a
pre-filing conference and, if so, the issues
the taxpayer wishes to discuss;
(c) Propose at least three possible dates for
a pre-filing conference, whether or not the
taxpayer seeks a pre-filing conference, in case
APMA requires a pre-filing conference;
(d) Include covered issue diagrams if
the pre-filing memorandum is required
under section 3.02(4);
(e) If the pre-filing memorandum is sub-
mitted pursuant to section 3.02(4)(b), it
must (i) present the taxpayer’s arguments
that the applicable law, facts and circum-
stances, economic conditions, and other fac-
tors surrounding its proposed covered is-
sue(s) and method(s) for the proposed APA
years are substantially the same as those
surrounding the current APA or surrounding
the MAP resolution in the MAP case, (ii)
specify any information, documents, or other
materials the taxpayer proposes to omit from
its APA request, and (iii) discuss the taxpay-
er’s arguments that the information, docu-
ments, or other materials the taxpayer pro-
poses to omit from its APA request are not
necessary for APMA’s evaluation of the APA
request (seesections 5.01 and 8);
(f) List the name and contact informa-
tion for the taxpayer’s point of contact
and, unless the pre-filing memorandum is
submitted on an anonymous basis, pro-
vide a Form 2848 authorizing the point of
contact to represent the taxpayer in con-
nection with the APA request or a Form
8821 authorizing the point of contact to
inspect or receive confidential tax infor-
mation about the taxpayer in connection
with the APA request; and
(g) Identify all open pre-APA years of
the taxpayer and which of such years, if
any, are under examination by the IRS.
(7)Place for Submission of Pre-filing
Memorandum. Two printed copies and one
electronic copy of the pre-filing memorandum
must be submitted to APMA at the address
provided in section 4 of the appendix.
(8)Actions Taken with Respect to Pre-
filing Conferences and Memoranda.
(a) APMA will notify the taxpayer
whether it will accept or decline the tax-
payer’s request to hold a pre-filing confer-
ence. The taxpayer will also be notified if
a pre-filing conference is required, even if
the taxpayer did not request a conference.
If a pre-filing conference is held, it will
address procedural and substantive issues
pertinent to the APA request. During the
conference, the taxpayer should be pre-
pared to discuss the relevant facts and
December 9, 2013Bulletin No. 2013–50
660

circumstances surrounding the issue(s),
method(s), and terms and conditions it
proposes to cover in the APA. If APMA
declines the taxpayer’s request for a pre-
filing conference or decides that no pre-
filing conference is required, APMA will
direct the taxpayer as to how to proceed
with its APA request.
(b) Unless the taxpayer is required to
submit a pre-filing memorandum pursuant
to section 3.02(4), a pre-filing conference
may be held on an anonymous basis.
APMA generally recommends, however,
that pre-filing conferences be held on a
named basis so as to facilitate a more
informed discussion of procedural and
substantive issues that may arise during
the APA process.
(9)Informal Advice in Pre-filing Con-
ference. Statements or representations
made by APMA in a pre-filing conference
constitute informal advice and are, there-
fore, advisory only (seesection 2.02(6)).
.03Time for filing.
(1)In General. An APA request must
be filed by the applicable deadline set
forth in this section.
(2)Unilateral APA Requests. Except as
provided in section 3.03(4), the taxpayer
must file a complete unilateral APA re-
quest no later than the due date prescribed
by statute (including extensions) for filing
its Federal income tax return (or, if the
taxpayer receives an extension to file its
Federal income tax return, a date no later
than the actual filing date of the return)
(“return due date”) for the first proposed
APA year.
(3)Bilateral and Multilateral APA Re-
quests. A complete bilateral or multilat-
eral APA request must be filed no later
than the earlier of (i) the return due date
for the first proposed APA year, except as
provided in section 3.03(4), and (ii) within
60 days after the bilateral or multilateral
APA request regarding the same proposed
covered issue(s) and APA years has been
filed with a foreign competent authority,
except as provided in section 3.03(5).
(4)“Dollar File” Requests.APMA
will consider an APA request as having
been filed on the return due date for the
first proposed APA year if (i) the correct
user fee is paid (within the meaning of
section 7502(a) of the Code) by the return
due date for the first proposed APA year,
and (ii) a complete APA request is filed
within 120 days of the return due date for
the first proposed APA year. APMA may
agree to extend the 120-day filing dead-
line by 30 days if the taxpayer requests
such an extension before the 120-day fil-
ing deadline expires. This paragraph does
not apply to APA requests that must meet
the filing deadline set forth in section
3.03(3)(ii) or 3.03(5).
(5)Transition Rule for Bilateral and
Multilateral APA Requests. For some tax-
payers, the filing deadline set forth in sec-
tion 3.03(3)(ii) will be on a date before the
effective date of this revenue procedure
(seesection 11). This paragraph presents a
transition rule that provides such taxpay-
ers with a grace period by which to submit
the correct user fee and complete APA
request, as follows. If (a) the taxpayer
intends to file a bilateral or multilateral
APA request that must meet the filing
deadline set forth in section 3.03(3)(ii),
and (b) the filing deadline set forth in
section 3.03(3)(ii) is before the effective
date of this revenue procedure, then
APMA will consider the APA request as
having been filed by the deadline set forth
in section 3.03(3)(ii) so long as all of the
following conditions are met: (i) the tax-
payer pays the correct user fee no later
than the earlier of (A) 30 days from the
effective date of this revenue procedure,
and (B) the return due date for the first
proposed APA year; and (ii) the taxpayer
submits a complete bilateral or multilat-
eral APA request no later than the earlier
of (A) 120 days from the effective date of
this revenue procedure, and (B) 120 days
from the return due date for the first pro-
posed APA year.
.04Content and Form of Complete
APA Requests.
(1)In General.The appendix sets forth
the required contents of a complete APA
request, identifies the order in which such
contents should be presented, and pro-
vides information and instructions on
other administrative matters relevant to
filing a request. An APA request must
comply with the requirements set forth in
the appendix before it will be considered
complete. Any questions about filing an
APA request not addressed in this section
or in the appendix should be directed to
APMA by one of the means identified in
the appendix.
(2) Any information submitted by a
taxpayer in connection with its APA re-
quest must be true, correct, and complete
(seethe appendix). All documents in or
described in the APA request must be
explained in sufficient detail to make their
contents readily understandable. Such an
explanation might include, for example,
definitions of terms used, explanations of
the goal and flow of calculations, the
sources of data, and the identity of a doc-
ument’s creator and the purpose for which
it was created.
.05User Fees.
(1) The user fee requirements and rules
of application are set forth in the appen-
dix. A taxpayer that seeks a decision on
the user fee applicable to its APA request
must contact APMA or submit a pre-filing
memorandum.
(2) The taxpayer must pay the applica-
ble user fee no later than the date it files
the APA request. User fees must be paid
through the Pay.gov website. APMA will
consider an APA request to be complete
only when the correct user fee has been
paid through the Pay.gov website.
(3) APMA will notify the taxpayer if it
has paid less than the correct user fee. In
such a case, the taxpayer has the option of
making up the difference or withdrawing
its APA request and receiving a refund of
the amount it has paid.
.06E-mail Communications. A com-
plete APA request must include either an
executed memorandum of understanding
permitting APMA to communicate with
the taxpayer’s authorized representatives
through encrypted e-mail or a statement
that the taxpayer does not permit such
e-mail communications and an explana-
tion for its declining to do so.Seethe
appendix. An electronic copy of the stan-
dard form memorandum of understanding
is available on the APMA website [link to
be included when available].
.07 APA Request as Protective Claim.
For purposes of this revenue procedure
only, a protective claim for credit or re-
fund may be made by including the claim
in a bilateral or multilateral APA request.
To be a valid protective claim for credit or
refund, the protective claim must fulfill
the requirements of section 13.02(3) of
Rev. Proc. 2014 –XX.Seesection 13 of
Rev. Proc. 2014 –XX and the appendix.
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.08 Effect of Filing. The submission of
a complete APA request, updated and sup-
plemented in accordance with the require-
ments of this section 3, will be a factor
taken into account in determining whether
the taxpayer has met the documentation
requirements of Treas. Reg. §1.6662–
6(d)(2)(iii) for the proposed APA years.
Submission of a complete APA request
does not, in itself, suspend examination or
enforcementproceedings.Although
APMA will coordinate within the IRS to
minimize duplicative requests in conduct-
ing its due diligence, the taxpayer remains
obligated to respond to information docu-
ment requests issued, and according to
deadlines set, by other IRS offices in any
examination or enforcement proceedings.
.09APA Term. In its APA request, the
taxpayer must propose a term for the APA
that is appropriate to the proposed covered
issue(s) and to the commercial factors sur-
rounding the taxpayer’s industry and line(s)
of business. Although the appropriate APA
term will be determined on a case-by-case
basis, a request for an APA should propose
an APA term of at least five years, unless
the taxpayer states a compelling reason for a
shorter term. Additionally, it is in the inter-
est of sound tax administration for APMA
to seek to have at least three prospective
taxable years remaining in the APA term
upon the execution of an APA (in the case
of a unilateral APA) or upon the execution
of a MAP resolution (in the case of a bilat-
eral or multilateral APA). Accordingly,
APMA may require that the taxpayer agree
to extend the APA term in order to ensure
such prospectivity. In the case of a bilateral
or multilateral APA, any proposed term ex-
tension will be coordinated with the relevant
foreign competent authority(ies).
.10Requested and Supplemental Items.
(1) The information, documents, and
materials required of APA requests that
are identified in the appendix may not
exhaust items relevant to an APA team’s
evaluation of a given APA request. If the
APA team determines that it needs addi-
tional information to analyze the APA re-
quest, the taxpayer will be asked, and
thereby required, to provide such informa-
tion. The taxpayer must respond similarly
to requests made by a foreign competent
authority, as applicable.
(2) In general, the taxpayer must pro-
vide to all relevant competent authorities
any responses, information, documents, or
analyses that it provides to one competent
authority, whether such responses, infor-
mation, documents, or analyses are pro-
vided in response to a request from a
competent authority or are submitted vol-
untarily by the taxpayer in support of its
APA request. In the interest of minimizing
administrative burdens, the APA team
will work with the taxpayer during the
APA process to find efficient procedures
for disseminating responses, information,
documents, or analyses to the competent
authorities, such as using indexes to cata-
logue information, documents, or analyses
the taxpayer will make available to the
competent authorities upon request.
.11Corrected and Updated Information.
(1) After the APA request is filed, any
material errors or any material omissions
in the APA request or in supplemental
submissions must be promptly corrected
or remedied. The taxpayer must also sub-
mit any information or documents discov-
ered or created during the APA process
that are, or reasonably may be, relevant to
the APA request.
(2) The taxpayer must notify APMA of
all material changes and updates to infor-
mation previously submitted in connec-
tion with the APA request.
(3) Any financial data produced in con-
nection with the APA request during the
APA process must be updated annually or
on a schedule that is mutually acceptable
to the taxpayer and to APMA. In addition,
the APA request must be supplemented
with a demonstration of the application of
the proposed covered method(s) to the
actual financial results of the applicable
members of the proposed covered group
for each taxable year completed while the
APA request is pending. Such a supple-
mental submission must be provided
within 180 days of the close of the taxable
year. APMA may, at its discretion, grant
an extension or modify these requirements
if the taxpayer provides written notifica-
tion before the date the supplemental sub-
mission would otherwise be due.
.12Withdrawing the Request.The tax-
payer may withdraw its APA request at
any time before it executes the APA.
APMA generally will not refund user fees
if the taxpayer withdraws its APA request
after APMA has begun its due diligence.
SECTION 4: ACTIONS ON APA
REQUESTS
.01Decision Letter and Contact Infor-
mation. APMA will notify the taxpayer in
writing that it has received the APA request.
The letter will also provide the name and
contact information of the assigned APA
team leader to which the request has been
assigned. In addition, the letter will state
either: (1) that the request is complete and
that the APA process will proceed, together
with any administrative or procedural steps
the taxpayer must take pertaining to the
APA request; (2) that the request is provi-
sionally accepted but that the APA process
will not proceed until specified deficiencies
in the request have been addressed; or (3)
that the request is rejected and the circum-
stances, if any, under which the request
might be accepted. APMA will also instruct
the taxpayer as to other offices within the
IRS to which full or partial copies of the
APA request must be provided.
.02Denial of Assistance.
(1) APMA may deny assistance, in
whole or in part, at any point in the APA
process, either at the outset by rejecting
the APA request or by terminating or sus-
pending the APA process after it has ac-
cepted an APA request. APMA will gen-
erally take such actions if any of the
circumstances described in, or similar to
those described in, section 6.02 of Rev.
Proc. 2014 –XX are present, including
failure to include the materials required by
this revenue procedure in the APA request
(seesection 3) or the materials requested
by the APA team during the APA process.
(2) If APMA denies assistance, it will
determine whether to refund the taxpay-
er’s user fee. APMA will base its decision
on various considerations, including the
extent of the due diligence and analysis
the APA team had undertaken before fur-
ther assistance is denied.
(3) APMA’s decision as to whether an
APA request is complete or to deny, sus-
pend, or terminate assistance is not subject
to administrative review.
.03Formation of APA Team, Opening
Conference, Case Plan, and Taxpayer Review
(1) Once APMA has determined that
the APA request is complete and that it
will continue with the APA process, the
APA team leader will contact the taxpayer
to set a date for an opening conference or,
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depending on the nature of the proposed
covered issue(s) and method(s) and other
aspects of the APA request, to inform the
taxpayer that an opening conference may
be unnecessary before the APA team
moves forward with its analysis. If the
opening conference is held, the taxpayer
may be asked to respond to questions
from the APA team about the APA re-
quest by a given date before the opening
conference or at the opening conference
itself. The APA team leader may postpone
the opening conference if the responses
are not provided by the date set or agreed
to by the APA team leader.
(2) The primary purpose of an opening
conference is to give the taxpayer an op-
portunity to acquaint the APA team with
the APA request and the issue(s), meth-
od(s), and terms and conditions the tax-
payer is proposing to be covered by the
APA. The meeting may also include a
more detailed discussion of particular as-
pects of the taxpayer’s proposals. Accord-
ingly, the taxpayer should be prepared to
discuss the APA request in detail and re-
spond as fully as possible to questions
about its proposals.
(3) The opening conference will also
cover general procedural issues, including
whether a case plan is appropriate and, if
so, when it may be useful in the APA
process for a case plan to be implemented,
in light of the due diligence and analysis
the APA team expects to undertake in the
APA process. If feasible in light of the
scope and complexity of the proposed
APA, the APA team may also provide an
estimate of the time it will take to com-
plete its evaluation of the APA request.
Whether this estimate holds true in any
given case will primarily depend upon a
variety of factors: the quality of the APA
request; the extent of the taxpayer’s coop-
eration with the APA team, including the
completeness and timeliness of its re-
sponses to information requests and other
due diligence inquiries during the APA
process; and, in the case of bilateral or
multilateral APAs, the speed with which
the foreign competent authority is able to
be prepared to discuss the case with the
APA team. Accordingly, any timetable
discussed or set forth in a case plan is only
an estimate and is subject to revision and
extension.
(4) For a bilateral or multilateral APA
request, APMA will consider requests
from, and may invite or require, the tax-
payer to make presentations jointly to the
U.S. and foreign competent authorities
during the APA process. APMA will con-
sult with the foreign competent authority
as to its interest in joint presentations and
notify the taxpayer accordingly.
(5) At the conclusion of the APA
team’s due diligence and evaluation of a
bilateral or multilateral APA request, the
APA team leader will provide to the tax-
payer a memorandum conveying the sub-
stance of the APA team’s views on the
proposed APA. The memorandum will
have a length, content, and format appro-
priate to the size and complexity of the
proposed covered issue(s) and method(s)
and other relevant facts and circumstances
surrounding the case. The taxpayer will be
invited to respond to the memorandum by
a deadline set by the APA team leader.
.04Finalizing the APA.In the case of a
unilateral APA, the APA team and tax-
payer will proceed to finalize an APA
after the APA team has completed its due
diligence and evaluation of the APA re-
quest. In the case of a bilateral or multi-
lateral APA, the APA team and the tax-
payer will proceed to finalize an APA
after a MAP resolution has been reached
in the case.
.05Arbitration.The mutual agreement
procedure article in arbitration treaties re-
quires that the competent authorities refer
certain cases to mandatory arbitration in
the event direct consultation does not lead
to a mutual agreement within a prescribed
time period. Taxpayers requesting bilat-
eral or multilateral APAs should consult
the mutual agreement procedure article
under the applicable U.S. tax treaty and
any ancillary agreements to determine
whether it is an arbitration treaty and the
extent to which mandatory arbitration ap-
plies to cases initiated by bilateral or mul-
tilateral APA requests under such treaty.
Seesection 12 of Rev. Proc. 2014 –XX.
.06Execution of Agreement.The APA
will enter into force as of the date it is
executed by APMA and by the taxpayer
and have effect as provided therein. In the
case of an APA that includes a member of
a consolidated group other than the com-
mon parent (as defined in Treas. Reg.
§1.1502–1), the common parent must also
sign the APA as provided in Treas. Reg.
§1.1502–77. The person signing the APA
must be an authorized officer of the tax-
payer, have personal knowledge of the
APA’s covered issue(s), covered meth-
od(s), and terms and conditions, perform
duties not limited to obtaining letter rul-
ings or determination letters from the IRS
or entering into APAs, and have authori-
zation to sign the taxpayer’s income tax
return pursuant to section 6062 of the
Code. The person signing for any non-
corporate taxpayer must be an individual
having personal knowledge of the APA’s
covered issue(s), covered method(s), and
terms and conditions and have authoriza-
tion to sign the taxpayer’s income tax
return pursuant to sections 6061 or 6063
of the Code, as applicable.
.07Not an Examination.APMA’s
evaluation of the APA request will not
constitute an examination or inspection of
the taxpayer’s books and records under
section 7605(b) or other provisions of the
Code.
SECTION 5: APA ROLLBACKS AND
COORDINATION WITH REV. PROC.
2014 –XX
.01Extension from MAP or ACAP
Years to APA Years
(1) Under Rev. Proc. 2014 –XX,
APMA may propose that a taxpayer pur-
sue ACAP to extend a MAP resolution in
its MAP case to one or more ACAP years.
APMA may also affirmatively seek of its
own accord to roll forward a MAP reso-
lution in a MAP case to the taxpayer’s
ACAP years where it is feasible, practica-
ble, and in the interest of sound tax ad-
ministration to do so. APMA may also
discuss with the taxpayer the possibility of
extending the MAP resolution into APA
years. A request to extend a MAP resolu-
tion into APA years may be made either
by filing a complete APA request or by
filing an abbreviated APA request. A tax-
payer must file a complete APA request
unless it has obtained APMA’s permis-
sion to file an abbreviated APA request.
APMA will grant permission to file an
abbreviated APA request only if (i) the
taxpayer satisfies the pre-filing require-
ments set forth in section 3 and detailed in
this section 5, and (ii) the applicable law,
facts and circumstances, economic condi-
tions, and other relevant factors surround-
Bulletin No. 2013–50December 9, 2013
663

ing the taxpayer’s proposed APA years
and proposed APA rollback years are rea-
sonably expected to be substantially the
same as such factors surrounding its MAP
years or its MAP and ACAP years cov-
ered by the MAP resolution. If either of
these requirements is not satisfied, the tax-
payer must file a complete APA request
and otherwise comply with all other pro-
visions of this revenue procedure.
(2) As noted in section 3.02(4), a tax-
payer that seeks to file an abbreviated
APA request to extend a MAP resolution
in a MAP case to APA years must submit
a pre-filing memorandum. Among the
other required items, the pre-filing mem-
orandum must (i) present the taxpayer’s
arguments that the applicable law, facts
and circumstances, economic conditions,
and other factors surrounding its proposed
covered issue(s) and method(s) for the
proposed APA years and any proposed
APA rollback years are substantially the
same as those surrounding the MAP res-
olution in the MAP case, (ii) specify any
information, documents, or other materi-
als the taxpayer proposes to omit in its
submission, and (iii) discuss the taxpay-
er’s arguments that the information, doc-
uments, or other materials the taxpayer
proposes to omit from its APA request are
not necessary for APMA’s evaluation of
the APA request.
(3) In accordance with section 3.02(8),
APMA will determine whether to hold a
pre-filing conference after reviewing the
pre-filing memorandum. APMA may de-
termine that no pre-filing conference is
required and that an abbreviated APA re-
quest will be acceptable. In that event,
APMA will provide the taxpayer with in-
structions on preparing the request. If
APMA determines that a pre-filing con-
ference is required, the taxpayer will be
expected to discuss the arguments pre-
sented in its pre-filing memorandum. If
APMA decides to accept an abbreviated
APA request after the pre-filing confer-
ence, it will provide the taxpayer with
instructions on preparing the abbreviated
APA request. If APMA decides that it will
not accept an abbreviated APA request,
the taxpayer will be instructed to file a
complete APA request.
.02APA Rollbacks
(1) A taxpayer may request an APA
rollback to cover one or more of its pre-
APA years. An APA rollback request
should be included in the taxpayer’s APA
request. APMA may consider a later re-
quest for an APA rollback only if the APA
rollback request is submitted in writing
within 3 months after the APA request is
filed, unless APMA agrees otherwise.
(2) Whether included in the APA re-
quest or in a subsequent written request,
the APA rollback request must include the
same information for the pre-APA years
that is required to be submitted for the
APA years proposed by the taxpayer.
(3) After coordinating and collaborat-
ing with other offices within the IRS,
APMA will inform the taxpayer whether
its APA rollback request has been ac-
cepted.
(4) Regardless of whether the taxpayer
pursues an APA rollback request, APMA
reserves the right to coordinate with ap-
plicable IRS offices to pursue an APA
rollback to any or all of the taxpayer’s
open pre-APA years. In general, APMA
will consider taking such action where
there is sufficient similarity in relevant
facts and circumstances across the taxpay-
er’s APA and pre-APA years. APMA will
inform the taxpayer in writing, either be-
fore the APA process begins or at any
time during the APA process, whether it
will pursue an APA rollback and the pre-
APA years it will seek to cover. If the
taxpayer refuses to accept an APA roll-
back, APMA may decline to initiate the
APA process or suspend or terminate the
process if it has already begun.
(5) An APA rollback request submitted
in connection with a bilateral or multilat-
eral APA request and involving a taxable
year under the jurisdiction of IRS Appeals
will be deemed to constitute a request for
SAP review, provided that an affirmative
statement requesting SAP review is in-
cluded in the APA request or in the sub-
sequent written APA rollback request (see
the appendix). Any request for SAP re-
view made in connection with an APA
request will be subject to the provisions
governing SAP review set forth in section
8 of Rev. Proc. 2014 –XX.
(6) Except in unusual circumstances,
APMA will not accept a rollback to a
taxable year whose period of limitations
for assessment of tax has expired in the
United States.
SECTION 6: LEGAL EFFECT OF THE
APA
.01 Binding Agreement.An APA is a
binding agreement between the taxpayer
and the IRS.
.02 Effect of Compliance.If the tax-
payer complies with the APA terms and
conditions, the IRS will not contest the
application of the covered method(s) to
the covered issue(s) of the APA except as
provided in this revenue procedure. The
taxpayer remains otherwise subject to
U.S. income tax laws and applicable U.S.
income tax treaties.
.03 Scope of Agreement.An APA will
have no legal effect except with respect to
the taxpayer, taxable years, and issues to
which the APA specifically relates.
.04 Use as Evidence.Unless provided
otherwise by written agreement or regula-
tions, the IRS and the taxpayer may not
introduce the APA or non-factual oral and
written representations made in conjunction
with the APA request as evidence in any
judicial or administrative proceeding re-
garding any tax year, issue, or person not
covered by the APA. This paragraph does
not preclude the IRS and the taxpayer from
agreeing to roll back the APA covered
method(s), or the IRS’s use of any non-
factual material otherwise discoverable or
obtained other than in the APA process merely
because the parties considered the same or
similar material in the APA process.
.05 Use as Admissions.Unless provided
otherwise by written agreement or regula-
tions, the IRS and the taxpayer may not
introduce a proposed, cancelled, or revoked
APA, or any non-factual oral or written rep-
resentations or submissions made during the
APA process, as an admission by the other
party, in any judicial or administrative pro-
ceeding regarding any taxable year of the
requested APA term. This paragraph does
not preclude the IRS’s use of any non-
factual material otherwise discoverable or
obtained other than in the APA process
merely because APMA and the taxpayer
considered the same or similar material in
the APA process.
SECTION 7: ADMINISTERING THE
APA
.01 Annual Reports
(1) An APA annual report must be filed
for each APA year. The report must dem-
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onstrate the taxpayer’s compliance with
the APA terms and conditions, including
the amount of any APA primary adjust-
ment for a given APA year. The report
must also include all other items required
by the APA and disclose any pending or
contemplated requests to renew, modify,
or cancel the APA. In addition, the report
must identify and correct any materially
false, incorrect, or incomplete information
submitted during the APA process that the
taxpayer discovers during the APA year.
(2) The taxpayer must file two printed
copies and one electronic copy of the an-
nual report before the later of (i) the fif-
teenth day of the twelfth month following
the close of the APA year, and (ii) 90 days
after the effective date of the APA.
APMA may agree to alternative filing
dates if requested by the taxpayer. The
taxpayer must file all three copies of the
annual report with APMA at the address
set forth in the appendix. For bilateral and
multilateral APAs, APMA may require
the taxpayer to simultaneously file a copy
of the annual report with the applicable
foreign competent authority(ies).
(3) The taxpayer will be notified if it is
necessary to clarify or complete the infor-
mation submitted in the annual report. The
taxpayer must supply the additional infor-
mation by the date specified in the notice.
(4) Any request the taxpayer receives
to clarify or complete information in an
annual report is not an examination or the
commencement of an examination of the
taxpayer for purposes of section 7605(b)
of the Code or any other provision of the
Code.
(5) The taxpayer must amend its an-
nual report within 45 days after becoming
aware of any incomplete or incorrect in-
formation or any incorrect application of
the covered method(s) presented in the
report.
(6) APMA may, at its discretion, grant
an extension to submit the annual report if
the taxpayer provides written notification
of its request before the due date and
explains the circumstances necessitating
the extension.
(7) The annual report must contain the
following declarations, as applicable:
Under penalties of perjury, I declare
that I have examined this annual
report including accompanying doc-
uments, and, to the best of my
knowledge and belief, this annual
report contains all the relevant facts
relating to the annual reporting re-
quirements pursuant to the APA,
and such facts are true, correct, and
complete.
[If applicable: An adjustment to
conform taxable income and other
relevant items to reflect the results
reported herein has been reported to
IRS Examination.]
[If applicable: An amended income
tax return to conform taxable income
and other relevant items to reflect the
results reported herein [has been]
[will be] filed with the appropriate
Internal Revenue Service Center.]
(8) The taxpayer must sign the decla-
ration according to the instructions in the
appendix regarding perjury statements.
(9) Failure to file a timely, complete, or
accurate annual report may be grounds for
canceling or revoking the APA under sec-
tion 7.06.
.02APA Repatriation
(1)Bilateral and Multilateral APAs.
Subject to the requirements of section
7.02(2), APMA will apply the rules and
principles set forth in section 11 of Rev.
Proc. 2014 –XX governing MAP repatria-
tion to determine the terms of APA repa-
triation for bilateral and multilateral
APAs. When MAP repatriation is not
agreed to as part of the MAP resolution,
APMA will instead determine the terms of
APA repatriation for bilateral and multi-
lateral APAs by following the terms under
which repatriation payments may be made
under Rev. Proc. 99 –32.
(2)Requirements Pertaining to Repa-
triation in Bilateral or Multilateral APAs.
APMA will not apply the rules and prin-
ciples set forth in section 11 of Rev. Proc.
2014 –XX governing MAP repatriation to
determine the terms of APA repatriation
in a bilateral or multilateral APA unless
the following conditions are satisfied: (i)
no person (whether or not a “United States
taxpayer” within the meaning of Rev.
Proc. 99 –32) that will make or receive
repatriation payments would be barred
from making or receiving repatriation
payments under the principles of section
3.01 or 3.03 of Rev. Proc. 99 –32; and (ii)
the taxpayer explicitly requests MAP re-
patriation in its APA request or in a sup-
plemental written submission filed with
APMA prior to a MAP resolution being
reached in its case.
(3)Unilateral APAs. APMA will de-
termine the terms of APA repatriation for
unilateral APAs by following the terms
under which repatriation payments may
be made under Rev. Proc. 99 –32.
.03 Examination
(1) With respect to the covered issue(s)
in the APA, the IRS will not reconsider
the covered method(s) but will instead
limit the examination of a taxpayer’s in-
come tax return in any given APA year to,
and may require that the taxpayer estab-
lish, the following: (i) the taxpayer’s com-
pliance with the APA terms and condi-
tions; (ii) the accuracy of the APA annual
report’s material representations; and (iii)
the correctness of the supporting data and
computations used to apply the covered
method(s).
(2) The IRS may audit and propose
adjustments to the taxpayer’s results as
determined under the covered method(s)
of the APA without affecting the APA’s
validity or applicability. The taxpayer
may agree with the proposed adjustments
in the same manner as any other adjust-
ment, in which case the IRS will assess
any resulting additional tax or refund any
resulting overpayment of tax accordingly.
If it does not agree with the proposed
adjustment, the taxpayer may contest it
through available administrative and judi-
cial procedures. The taxpayer must in-
clude the audit adjustments as finally de-
termined for the purpose of applying the
covered method(s). As necessary, it must
also make any APA primary adjustments,
unless otherwise determined by APMA.
.04 Record Retention
(1) The taxpayer must maintain books
and records that are sufficiently detailed to
verify that it has complied with the APA
terms and conditions. The taxpayer’s
compliance with this paragraph fulfills the
record-keeping requirements of sections
6038A and 6038C of the Code as applied
to the covered issue(s).
(2) Upon examination, IRS may re-
quest that the taxpayer submit additional
information or translate specific docu-
ments within 30 days. The IRS may ex-
tend this period for good cause. The fact
that a non-U.S. jurisdiction may impose a
penalty upon the taxpayer or other person
for disclosing any such requested material
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665

will not constitute reasonable cause for
noncompliance with the IRS’s request.
.05 Revising the APA
(1) An APA may be revised by agree-
ment of the parties (including the foreign
competent authority(ies) in the case of a
bilateral or multilateral APA) and any
such revision is effective upon the date of
the execution of the revision. APMA may
agree to revise an APA in lieu of cancel-
ing or revoking it.
(2) If APMA agrees to revise a bilateral
or multilateral APA, it will submit the re-
vised APA to obtain the consent of the ap-
plicable foreign competent authority(ies) to
do the same. If the foreign competent au-
thority(ies) refuse(s) to accept the revised
APA, or if the competent authorities cannot
agree on a revised APA acceptable to all
parties, APMA and the taxpayer may agree
to (i) apply the existing APA or the revised
APA for domestic U.S. purposes to one or
more APA years, or (ii) seek to cancel the
APA as of a specific date.
.06 Revoking or Canceling the APA
(1) APMA may revoke an APA due to
fraud or malfeasance (as defined in section
7121 of the Code), or disregard (as defined
in sections 6662(b)(1) and (c) of the Code)
by the taxpayer in connection with the APA,
including, but not limited to, fraud, malfea-
sance, or disregard involving (i) material
facts in the request or subsequent submis-
sions (including an annual report) or (ii) lack
of good faith compliance with the APA
terms and conditions.
(2) APMA may cancel an APA due to
the taxpayer’s misrepresentation, mistake
with respect to a material fact, failure to
state a material fact, failure to file a timely
annual report, or lack of good faith compli-
ance with the APA terms and conditions.
(3) Unless the parties agree to revise the
APA, APMA will cancel an APA in the
event of a failure of a critical assumption or
a material change in governing case law,
statute, regulation, or applicable treaty.
(4) For purposes of this section 7.06(1)
and (2), APMA will consider facts mate-
rial if, for example, knowledge of the facts
could reasonably have resulted in an APA
with significantly different terms and con-
ditions. With respect to annual reports,
APMA will consider facts material if, for
example, knowledge of the facts would
have resulted in (a) a materially different
allocation of income, deductions, or cred-
its than those reported in the annual re-
port, or (b) the failure to meet a critical
assumption.
(5) APMA may waive cancellation if
the taxpayer can show good faith and rea-
sonable cause and agrees to make all ad-
justments proposed to correct for the mis-
representation,mistakeregardinga
material fact, failure to state a material
fact, or noncompliance.
(6) If APMA revokes an APA, the re-
vocation relates back to the first day of the
first APA year. The IRS may (a) deter-
mine deficiencies in income taxes and ad-
ditions thereto; (b) deny relief under Rev.
Proc. 99 –32; (c) allow the taxpayer relief
under Rev. Proc. 99 –32, but determine
the interest on any account receivable es-
tablished under section 4.01 of Rev. Proc.
99 –32 without mutual agreement or cor-
relative relief; (d) revoke the APA as an
”egregious case” under Rev. Rul. 80 –231,
1980 –2 C.B. 219, to deny the taxpayer a
foreign tax credit; and (e) deny a request
for relief submitted under Rev. Proc.
2014 –XX. APMA will seek to coordinate
these or any other action concerning revo-
cation of a bilateral or multilateral APA
with the foreign competent authority(ies).
(7) APMA’s cancellation of an APA
generally is effective as of the beginning
of the taxable year in which the critical
assumption failed or the beginning of the
year to which the misrepresentation, mis-
take regarding a material fact, failure to
state a material fact, or noncompliance
relates. If, however, the cancellation re-
sults from a change in case law, statute,
regulation, U.S. income tax treaty, or co-
ordination agreement, the cancellation
generally is effective at the beginning of
the year that contains the effective date of
the change in case law, statute, regulation,
U.S. income tax treaty, or coordination
agreement.
(8) For periods following the effective
date of the cancellation, the APA has no
further force and effect with respect to the
IRS and the taxpayer for U.S. income tax
purposes. APMA will seek to coordinate
any action concerning the cancellation of
a bilateral or multilateral APA with the
foreign competent authority(ies).
.07Change in Case Law, Statute, Reg-
ulation, or Treaty.If applicable U.S. case
law, statutes, regulations, or treaties
change the federal income tax treatment
of any matter covered by the APA, the
new case law, statute, regulation, or treaty
provision supersedes any inconsistent
terms and conditions of the APA.
SECTION 8: RENEWING THE APA
.01 General. A request to renew a cur-
rent APA may be made either by filing a
complete APA request or by filing an ab-
breviated APA request. A taxpayer must
file a complete APA request unless it has
obtained APMA’s permission to file an
abbreviated APA request. APMA will
grant permission to file an abbreviated
APA request only if (i) the taxpayer sat-
isfies the pre-filing requirements set forth
in section 3 and detailed in this section 8,
and (ii) the applicable law, facts and cir-
cumstances, economic conditions, and
other relevant factors surrounding the
covered issue(s), covered method(s), and
terms and conditions of the current APA
are reasonably expected to be substan-
tially the same as those in the proposed
renewal APA years. If either of these re-
quirements is not satisfied, the taxpayer
must file a complete APA request and
otherwise comply with all other provi-
sions of this revenue procedure.
.02 Timing.Taxpayers are encouraged
to file a request to renew a current APA
nine months before the expiration of the
final APA year.
.03 Pre-filing Memorandum Require-
ment for Abbreviated APA Requests.As
noted in section 3.02(4), a taxpayer that
seeks to file an abbreviated APA request
to renew an APA must submit a pre-filing
memorandum. Among the other required
items, the pre-filing memorandum must (i)
present the taxpayer’s arguments that the
applicable law, facts and circumstances,
economic conditions, and other factors
surrounding its proposed covered issue(s)
and method(s) for the proposed APA
years are substantially the same as those
surrounding the current APA, (ii) specify
any information, documents, or other ma-
terials the taxpayer proposes to omit from
its submission, and (iii) discuss the tax-
payer’s arguments that the information,
documents, or other materials the taxpayer
proposes to omit from its APA request are
not necessary for APMA’s evaluation of
the APA request.
.04 Actions Taken on APA Renewal Re-
quests.In accordance with section 3.02(8),
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APMA will determine whether to hold a
pre-filing conference after reviewing the
pre-filing memorandum. APMA may deter-
mine that no pre-filing conference is re-
quired and that an abbreviated APA request
will be acceptable. In that event, APMA
will provide the taxpayer with instructions
on preparing the abbreviated APA request.
If APMA determines that a pre-filing con-
ference is required, the taxpayer will be ex-
pected to discuss the arguments presented in
its pre-filing memorandum. If after the pre-
filing conference APMA decides that an ab-
breviated APA request is acceptable, it will
provide the taxpayer with instructions on
preparing the request. If APMA decides that
it will not accept an abbreviated APA re-
quest, the taxpayer will be instructed to file
a complete APA request.
SECTION 9: DISCLOSURE
.01 Confidentiality.An APA, any back-
ground information relating to an APA, and
the taxpayer’s APA request and any supple-
mentary materials submitted in conjunction
with the APA request are return information
and are confidential.Seesections 6103,
6105, 894, and 7852(d) of the Code.
.02 Not “Written Determinations”.An
APA, background information related to
the APA, an APA request, and supple-
mentary materials submitted in conjunc-
tion with the APA request are not “written
determinations” and are not open to public
inspection.Seesection 6110 of the Code.
.03 Statutory Report.The Secretary must
prepare an annual report for public disclo-
sure.Seesection 521(b) of the Ticket to
Work and Work Incentives Improvement
Act of 1999, Pub. L. 106 –170, 113 Stat.
1860, 1925. That report includes specifically
designated information concerning all APAs,
in a form that does not identify taxpayers, their
trade secrets, or proprietary or confidential
business or financial information.
.04 Exchange of Information.APAs,
annual reports, and factual information
contained in APA requests are subject to
exchange of information under U.S. in-
come tax treaties or U.S. income tax in-
formation exchange agreements in accor-
dance with the terms of such treaties and
agreements (including terms regarding
relevancy, confidentiality and the protec-
tion of trade secrets). In cases in which the
exchange of information would be discre-
tionary, information may be exchanged to
the extent consistent with sound tax ad-
ministration and the practices of the rele-
vant foreign competent authority.
SECTION 10: EFFECT ON OTHER
DOCUMENTS
Rev. Procs. 2006 – 09, 2006 –1 C.B. 278,
and 2008 –31, 2008 –1C.B. 1133, are mod-
ified and superseded by this revenue proce-
dure. Rev. Proc. 2014 –XX is amplified.
SECTION 11: EFFECTIVE DATE
This revenue procedure will apply to
all APA requests, including requests for
renewal, received on or after [DATE]. By
agreement, this revenue procedure may
apply to any APA resulting from an APA
request pending on [DATE].
SECTION 12: PAPERWORK
REDUCTION ACT
The collection of information contained
in this revenue procedure has been reviewed
and approved by the Office of Management
and Budget in accordance with the Paper-
work Reduction Act (44 U.S.C. 3507) under
control number 1545 – 1503.
An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid control number.
The collection of information in this
revenue procedure is in sections 3.02,
3.04, 3.10, 3.11, 5.01, 7.01, 7.04, 8.01 and
8.03 and in the appendix. This informa-
tion is required, and will be used, to pro-
vide the IRS sufficient information to
evaluate and process the APA request or
to determine whether the taxpayer is in
compliance with the terms and conditions
of an APA. APMA will use this informa-
tion to evaluate the proposed covered
method(s) and the taxpayer’s compliance
with the terms and conditions of any APA
to which it is a party. The collection of
information is required to obtain an APA.
The likely respondents are business or
other for-profit institutions.
The estimated total annual reporting and/or
recordkeeping burden is 10900 hours.
The estimated average burden for an
APA pre-filing conference is 10 hours; the
estimated average burden for an APA re-
quest is 60 hours; and the estimated aver-
age burden for preparation of an annual
report by a party to an APA is 15 hours.
The estimated number of respondents
and/or recordkeepers is 390.
The estimated annual frequency of re-
sponses is one request or report per year
per applicant or party to an APA, except
that a taxpayer requesting an APA may
also submit a pre-filing memorandum.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally tax returns and tax
return information are confidential, as re-
quired by section 6103 of the Code.
DRAFTING INFORMATION
The principal authors of this document
are John Hughes and Rebecca Kalmus of
the Office of the Deputy Commissioner
(International), LB&I; and Angela Hol-
land of the Office of the Associate Chief
Counsel (International). For further infor-
mation regarding this revenue procedure,
please contact Ms. Kalmus at (202) 515-
4746 or Ms. Holland at (202) 317-5474
(not toll free numbers).
APPENDIX
This appendix sets forth instructions on
preparing and filing an APA request. Unless
APMA has explicitly instructed the tax-
payer in writing to file an abbreviated APA
request pursuant to section 5 or 8 of this
revenue procedure, the APA request must
be prepared and submitted according to the
instructions provided in this appendix.
APMA may reject an APA request that does
not comply with these instructions.
A complete APA request will provide
the information specified below and all
other information reasonably necessary to
permit the APA team to evaluate fully the
proposed covered method(s). The level of
detail required will depend on the facts
and circumstances of each case and will
be governed by relevancy and materiality
considerations (keeping in mind that the
APA request should provide enough in-
formation to allow the reader to concur
that a matter is not relevant or material).
The information in the APA request
should be tailored to the facts relating to
the proposed covered group, the proposed
covered issue(s) (including information
supporting the inclusion of any proposed
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APA rollback years), and relevant legal
authority. It should also take into account
discussions with APMA in any pre-filing
memorandum or pre-filing conference.
Section 1 of this appendix addresses the
required content of APA requests. Section 2
sets forth instructions on submitting printed
and electronic copies of APA requests. Sec-
tion 3 presents instructions on paying user
fees for APA requests. Section 4 provides
addresses and contact information.
SECTION 1. CONTENT OF APA
REQUESTS
.01General.An APA request must in-
clude a cover letter followed by the ex-
hibits presented in the order as listed in
this section. An original of the cover let-
ter, signed and dated by the taxpayer or
the taxpayer’s authorized representative,
must be included in one of the three re-
quired printed copies of the APA request
(seesection 2 of this appendix). If the
taxpayer’s authorized representative signs
the original of the cover letter, the tax-
payer and authorized representative must
satisfy the relevant instructions on signa-
tures in Rev. Proc. 2005–1, 2005–1 I.R.B.
1 (or its successor). The cover letter and
the exhibits must contain or respond to the
required statements, descriptions, expla-
nations, and other requested information.
If the requested information is not appli-
cable to the APA request, a suitable ex-
planation must be provided.
.02Cover Letter.The cover letter to the
APA request must be presented according
to the instructions and structure set forth
below.
Part 1.Executive Summary
Part 2.Administrative Information
1.1Identifying information: List the name, address, and taxpayer identification number(s) of each member of the pro-
posed covered group and the Standard Industrial Classification (“SIC”) and the North American Industry Classifi-
cation System (“NAICS”) codes (number and code description) of the controlled group as reported on the taxpay-
er’s most recently filed federal tax returns
1.2Summary of APA request: Provide an executive summary of the content of the APA request that addresses the following:
a. Whether the taxpayer proposes a unilateral APA or a bilateral or multilateral APA, and, if applicable, the U.S. tax treaty(ies)
and treaty articles governing the APA request;
b. Whether the APA request proposes a renewal of an existing APA or the extension of a MAP resolution from MAP or
ACAP years into APA years;
c. The proposed APA years and the proposed APA rollback years;
d. The proposed covered issue(s) and an estimated dollar value of such issue(s) in the proposed APA years and, if relevant,
the dollar values of the proposed covered issue(s) in the prior three pre-APA years; and
e. The proposed covered method(s), including, as applicable, the proposed tested party(ies), profit level indicator(s), and inter-
quartile range(s)
2.1Authorization: List the names of and contact information for all individuals authorized by a Form 2848 to repre-
sent the taxpayer in connection with the APA request and all individuals authorized by a Form 8821 to inspect or
receive confidential tax information about the taxpayer in connection with the APA request, along with a designa-
tion as to which individual will serve as the point of contact for the APA team
2.2IRS Office: Identify the IRS office having examination jurisdiction over the taxpayer, together with the name of
and contact information for the taxpayer’s IRS Examination team manager if the taxpayer is under examination
when the APA request is filed
2.3Filed Years: Provide a table with the following information for each member of the proposed covered group:
a. All open filed years in the United States and the relevant treaty country(ies), whether or not such years are cur-
rently under examination by the IRS or a foreign tax authority;
b. All open filed years in which a proposed covered issue or a substantially similar issue is under review by IRS
Appeals or its equivalent in the relevant treaty country(ies);
c. All open filed years in which an actual or proposed adjustment has been made by either the IRS or a foreign
tax authority relating to the proposed covered issue(s) or to substantially similar issues; and
d. The expiration dates of statutes of limitations for all open filed years in the United States and in the relevant
treaty country(ies)
2.4Request for SAP Review: If applicable, include a statement that the APA request is intended to serve as a request for
SAP review for such taxable years specified by the taxpayer pursuant to section 5.02(5) of this revenue procedure
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Part 3. Proposed Covered Issue(s)
3.1Pre-filing information: Provide the following information:
a. Whether a mandatory or optional pre-filing memorandum was filed; and
b. Whether a pre-filing conference was held and, if so, the date of and attendees at the conference
3.2APA rollback: Provide the following information:
a. If the taxpayer is seeking consideration of an APA rollback, list the open pre-APA years to which the APA
rollback would apply; and
b. If the taxpayer is not seeking consideration of an APA rollback to one or more of its open pre-APA years, dis-
cuss the reasons as to why an APA rollback is not appropriate
3.3Background on proposed covered group: Provide background on the following points, with reference to the cov-
ered issue diagrams:
a. The general history of the business operations of the proposed covered group and of the controlled group;
b. The worldwide gross revenue of the controlled group in the most recent taxable year available;
c. The functional currency of each member of the proposed covered group;
d. For each member of the proposed covered group, any business line(s) that is (are) outside the scope of the pro-
posed covered issue(s); and
e. The industry in which the proposed covered group operates, including discussion of relevant macroeconomic
and other industry-wide factors affecting the proposed covered group, the commercial features of the markets
and geographical areas in which the proposed covered group operates, and the participants and competitors in
the proposed covered group’s industry
3.4Covered issue diagrams: Provide a detailed discussion of each proposed covered issue with reference to the cov-
ered issue diagrams:
a. The functions performed by each member of the proposed covered group in relation to the proposed covered
issue;
b. The assets employed by each member of the proposed covered group in relation to the proposed covered issue;
c. The risks assumed by each member of the proposed covered group in relation to the proposed covered issue;
d. Transactional or commercial flows between and among members of the proposed covered group, between mem-
bers of the proposed covered group and customers and other uncontrolled parties, and between members of the
proposed covered group and members of the controlled group outside of the proposed covered group;
e. Principal intercompany contracts or other agreements, written or otherwise, between and among members of the
proposed covered group; and
f. Unless the proposed covered method involves a profit split (within the meaning of Treas. Reg. § 1.482– 6 or
Chapter II of the OECD Guidelines) between two or more members of the proposed covered group, the identity
of the member of the controlled group that is proposed to be regarded as the principal in relation to the pro-
posed covered issue, whether or not it is a member of the proposed covered group
3.5Rulings, determinations, and proceedings: Provide information on the following:
a. Current or expired rulings issued by a relevant foreign tax authority covering intercompany transactions or busi-
ness activities of members of the proposed covered group that are within the scope of the proposed covered
issue(s);
b. The terms of any MAP resolution of a MAP case addressing intercompany transactions or business activities of
members of the proposed covered group that are within the scope of the proposed covered issue(s); and
c. Any judicial or administrative proceedings in the United States or in the relevant treaty country(ies) to which
any members of the proposed covered group are or have been parties involving intercompany transactions or
business activities that are within the scope of the proposed covered issue(s)
3.6Ancillary issues: List the ancillary issues (if any) included in or among the proposed covered issue(s) of the APA
request, e.g., terms of APA repatriation
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Part 4. Proposed Covered Method(s)
Part 5. Proposed APA Terms and Conditions
.03Exhibits.The APA request must also include the following exhibits after the cover letter, separated and ordered as indicated.
While all of the exhibits must be included as part of a complete APA request, certain exhibits are required to be produced in both
printed and electronic forms; other exhibits need be produced only in electronic form (seesection 2 of this appendix).
4.1Selection of proposed covered method(s): Discuss the selection of the proposed covered method(s) with reference
to the standards governing the selection of the “best method” under Treas. Reg. § 1.482-1(c) and, in the case of
bilateral or multilateral APA requests, the selection of the “most appropriate” method under Chapter I of the
OECD Guidelines
4.2Search and screening process: Describe the research and screening process and criteria used to identify and select
independent comparable agreements or independent companies upon which the proposed covered method is based,
including the initial search universe, the qualitative and quantitative screens used to accept or reject potential com-
parable agreements or companies, and the numbers of potential comparable agreements or companies accepted and
rejected at the different stages of the search and screening process
4.3Adjustments within proposed covered method(s): Provide a detailed explanation of any adjustments made to the
selected proposed comparable agreements or results of independent companies or to the results of the tested party,
such as adjustments relating to product line segregations; differences in accounting practices; differences in func-
tions performed, assets employed, or risks assumed; volume or scale differences; or differences in economic or
market conditions
4.4Demonstration of proposed covered method(s): Provide a table summarizing the results of applying the proposed
covered method(s) to the relevant members of the proposed covered group for (i) the most recent three pre-APA
years (or to as many pre-APA years as are available, if fewer than three are available), (ii) the first proposed APA
year, and (iii) to the extent available, forecasted data of the relevant members of the proposed covered group for
the proposed APA years
4.5Segmentation of financial results: If the proposed covered method(s) is(are) applied to a subset of the assets, lia-
bilities, income, and expenses in the financial statements (seeExhibit 17), provide a segmentation of the financial
statements and describe in detail (i) those items in the segmented financial statements that have been allocated or
apportioned to the applicable proposed covered issue(s) and to other issues, and (ii) the method(s) of allocation or
apportionment applied
5.1Review of Proposed APA: Provide a detailed discussion and explanation of the proposed APA terms and condi-
tions as reflected in the draft APA submitted with the APA request, noting, in particular, any proposed APA terms
and conditions that differ from the APA terms and conditions as reflected in the model APA available on the
APMA website [link to be provided when available]
Exhibit 1Contents of exhibits: Provide a table or similar comprehensive list of the exhibits submitted in both printed
and electronic form and those submitted in only electronic form
Exhibit 2Authorization form: Include a properly executed Form 2848 (Power of Attorney and Declaration of Repre-
sentative) or Form 8821 (Tax Information Authorization)
Exhibit 3Protective claim: In the case of a bilateral or multilateral APA request, provide a statement affirming
whether the APA request is to serve as a protective claim pursuant to section 13 of Rev. Proc. 2014-XX
and, if so, include the information required by section 13.02(3) of Rev. Proc. 2014-XX
Exhibit 4Waiver of ex parte communication: If the APA request involves a rollback to pre-APA years in which the
proposed covered issue(s) or a related issue is unresolved and under consideration by IRS Appeals, include
a waiver, modeled on the following language, of the taxpayer’s right to be present during communications
between IRS Appeals and members of the APA team:
Waiver of Ex Parte Communication: [Name of taxpayer(s)] agrees to the participation of IRS Appeals in the consid-
eration of this APA request and hereby waives its right to be present during, or to participate in, meetings relating to
the APA request or to be a party to discussions concerning the proposed covered issue(s) between IRS Appeals and
members of the APA team
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Exhibit 5Consent to disclosure: In the case of a bilateral or multilateral APA request, include a declaration, dated and
signed by an authorized officer of the taxpayer having personal knowledge of the facts concerning the pro-
posed covered issue(s), that the taxpayer consents to the disclosure of the contents of the APA request –
other than trade secrets, if the taxpayer so requests – to the applicable foreign competent authority(ies)
within the limits contained in the U.S. tax treaty(ies) governing the APA request
Exhibit 6“Penalties of perjury” declaration: Include the following “penalties of perjury” declaration:
Under penalties of perjury, I declare that I have examined this [APA request] [supplemental submission relating to
this APA request], including accompanying documents, and, to the best of my knowledge and belief, the [APA re-
quest] [supplemental submission] contains all the relevant facts relating to the [APA request] [supplemental submis-
sion], and such facts are true, correct, and complete.
The declaration must be signed by the taxpayer on whose behalf the request is being made and not by the
taxpayer’s representative. The person signing for a corporate taxpayer must be an authorized officer of the
taxpayer who has personal knowledge of the facts, whose duties are not limited to obtaining letter rulings or
determination letters from the IRS or negotiating APAs, and who is authorized to sign the taxpayer’s in-
come tax return pursuant to section 6062 of the Code. The person signing for any non-corporate taxpayer
must be an individual who has personal knowledge of the facts and who is authorized to sign in accordance
with sections 6061 or 6063 of the Code, as applicable
Exhibit 7E-mail authorization: Include a signed original of the memorandum of understanding authorizing communi-
cations with APMA via e-mail; or a statement that the taxpayer does not authorize e-mail communications,
together with a brief explanation for its declining to do so (seesection 3.06 of this revenue procedure)
Exhibit 8User fee receipt: Include a copy of the receipt obtained after paying the required APA user fee (seesection
3 of this appendix)
Exhibit 9Documents submitted to foreign competent authorities: List all information or documents submitted to a for-
eign tax authority or foreign competent authority in connection with the APA request, either prior to or con-
currently with the submission of the APA request to APMA, noting the information or documents for which
English translations are available and any information or documents submitted to a foreign tax authority or
foreign competent authority in connection with the APA request that are not included in the APA request
submitted to APMA
Exhibit 10Pre-filing Submissions: Include any pre-filing memoranda or other materials submitted in connection with
the APA request
Exhibit 11Covered issue diagrams: Include diagrams, charts, or similar representations depicting the following infor-
mation, each presented in a manner similar to and with a degree of detail no less than that presented in the
diagrams accompanying the case studies “Alpha” through “Foxtrot” in Joint Committee on Taxation,Pres-
ent Law and Background Related to Possible Income Shifting and Transfer Pricing(JCX-37-10), July 20,
2010 (available atwww.jct.gov;see alsoAPMA website [link to be included when available]):
a. The controlled group’s legal structure, with clear indications as to the members of the proposed covered group;
b. The controlled group’s tax structure, with clear indications as to, among other items, ownership relationships and tax
filing characterizations of members of the proposed covered group under the Code and under applicable rules in the
relevant treaty country(ies) (e.g., partnerships, branches, or disregarded entities);
c. The controlled group’s and proposed covered group’s business units or similar organizational divisions as used for
management purposes, together with a table or other reconciliation showing the relationship between such business
units and the legal entities comprising the controlled and proposed covered groups;
d. The value chain of the proposed covered group, comprising commercial or transactional flows between and among
members or business units of the proposed covered group, between members or business units of the proposed cov-
ered group and customers and other uncontrolled parties, and between members or business units of the proposed
covered group and any other members or business units of the controlled group outside the proposed covered group;
e. Organization or similar charts identifying executive-level functional or occupational roles within the business
units or within members of the proposed covered group that are relevant to the proposed covered issue(s) (e.g.,
vice president of marketing for transactions involving sales of tangible goods), together with (i) the names of
individuals occupying such executive-level functional roles at the time the APA request is filed, and (ii) head-
counts for the relevant business units or members of the proposed covered group; and
f. Intercompany contracts or agreements, whether written or implied, between and among members of the pro-
posed covered group and between and among members of the proposed covered group and members of the
controlled group outside the proposed covered group
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SECTION 2. MANNER AND MEDIA OF APA REQUEST FILINGS
.01General.The taxpayer must provide four copies of its APA request as follows: one (1) original, bound printed submission
containing signed originals of the cover letter and “penalties of perjury” declaration and, as applicable, of the authorization forms,
consent to disclosure, and e-mail authorization, together with copies of all other required printed information; two (2) bound
photocopies of the contents of the original printed submission; and one (1) electronic copy of the contents of the original printed
submission, together with the required electronic-only attachments, on CD or flash drive or similar acceptable electronic storage
medium. All four copies of the APA request must be filed with APMA at the address set forth in section 4 of this appendix.
.02Contents and Format of Printed Submissions.Each printed copy of the APA request must contain (i) the cover letter to the
APA request, and (ii) Exhibits 1 through 11. If possible, each printed copy should contain all such content in a single, bound volume.
The exhibits must be tabbed or separated and identified and ordered as presented in section 1 of this appendix. If an exhibit is not
applicable to the APA request, a statement to this effect must be included in the relevant tabbed section.
Exhibit 12APAs: Include a copy of any prior or current APA the taxpayer or another member of the proposed covered
group has entered into with the IRS or with a foreign tax authority involving intercompany transactions or
business activities within the scope of the proposed covered issue(s)
Exhibit 13Selection process: Provide a table or similar report on the step-by-step results of applying criteria for select-
ing comparable agreements or independent comparable companies (seepart 4.2)
Exhibit 14Information on selected comparables: Include a detailed discussion or detailed presentation, as applicable, of the follow-
ing: the contractual terms (within the meaning of Treas. Reg. § 1.482–1(d)(3)(ii)) of selected comparable agreements,
including the form of consideration charged or paid; and for APA requests in which the proposed covered method(s)
involve(s) an application of the comparable profits method (as defined in Treas. Reg. § 1.482–5) or the transactional net
margin method (as defined in the OECD Guidelines), (i) unadjusted income statement data for the most recent five
taxable years (or as many years as are available, if fewer than five years are available) and balance sheet data for the
most recent six taxable years (or as many years as are available, if fewer than six years are available) of the selected
independent comparable companies, and (ii) (if applicable) the application to such financial data of any adjustments
pursuant to the proposed covered method(s) (seeparts 4.3 and 4.4)
Exhibit 15Application of APA template: For APA requests in which the proposed covered method involves an application of the
comparable profits method (as defined in Treas. Reg. § 1.482–5) or the transactional net margin method (as defined in
the OECD Guidelines), provide income statement data for the most recent five taxable years (or as many years as are
available, if fewer than five years are available) and balance sheet data for the most recent six taxable years (or as many
years as are available, if fewer than six years are available) for the relevant member(s) of the proposed covered group
in the APA template (available on the APMA website [link to be included when available])
Exhibit 16Federal income tax filings: Provide copies of the following federal income tax forms for each of the three most recent
filed years of the taxpayer:
a. Form 1120 or applicable equivalent;
b. Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations);
c. Form 5472 (Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a
U.S. Trade or Business); and
d. Form 8858 (Information Return of U.S. Persons With Respect to Foreign Disregarded Entities)
Exhibit 17Financial statements: Provide copies of financial statements (audited, if available) for each relevant member of the pro-
posed covered group for each of the most recent three pre-APA years and specify the accounting standard used (e.g.,
U.S. GAAP)
Exhibit 18Section 6662 documentation: Include a copy of the documentation prepared in consideration of section 6662(e) of the
Code relating to intercompany transactions or business activities that are within the scope of the proposed covered is-
sue(s) for each relevant member of the proposed covered group for each of the most recent three pre-APA years
Exhibit 19Regulatory filings: Include a copy of the Form 10-K or similar annual SEC filing submitted for U.S. regulatory pur-
poses by the controlled group for each of the most recent three pre-APA years
Exhibit 20APA annual reports: For renewal APA requests, provide all APA annual reports filed with APMA with respect to the
current APA
Exhibit 21Proposed draft APA: Provide a proposed draft APA in a form substantially similar to APMA’s current model APA
(available on the APMA website [link to be included when available]), together with a “redline” version of the same
showing the differences between the model APA and the proposed draft APA
Exhibit 22Intercompany agreements: Include copies of intercompany contracts or agreements between the taxpayer and other
members of the proposed covered group that are within the scope of the proposed covered issue(s)
December 9, 2013Bulletin No. 2013–50
672

.03Contents and Format of Electronic Copy.
(1) The electronic copy of the APA request must contain (i) the cover letter to the APA request, and (ii) Exhibits 1 through 22.
The exhibits should consist of separate electronic files named in a manner that corresponds to the exhibit numbers presented in
section 1 of this appendix. If an exhibit is not applicable to the APA request, a statement to this effect must be included in the
electronic file.
(2) The electronic copy of the APA request must include the cover letter to the APA request in both Microsoft Word (“Word”) and in
Adobe Portable Document (“.pdf”) formats. Exhibit 21 must be provided in Word format. All other exhibits readily available in Word or
Microsoft Excel (“Excel”) format should be provided in those forms, as applicable, instead of, or in addition to, .pdf format.
(3) All electronic documents provided in conjunction with an APA request and throughout the APA process must be searchable,
unless the file is not readily available in searchable form (e.g., a photocopy of an intercompany agreement).
(4) All documents presented in Excel format must be provided with formulas and linkages intact.
SECTION 3. USER FEES
.01General.User fees must be paid through the Pay.gov website. Instructions on making user fee payments are available on the
IRS website athttp://www.irs.gov/Individuals/International-Taxpayers/ChangestoAPAandLOBUserFeeFilingProcedures. APMA will not
consider APA request complete, and will hold the APA request in suspense, until the correct user fee is paid through the Pay.gov website.
.02Separate Fees.Subject to the provisions of this section, a separate user fee is required for each unilateral, bilateral, or
multilateral APA request.
.03Amounts.The user fee amounts are as follows:
(1) $50,000 for each unilateral, bilateral, or multilateral APA request;
(2) $35,000 for each renewal APA request;
(3) $22,500 for each APA request eligible for the small case APA user fee; and
(4) $10,000 for each amendment to a current unilateral, bilateral, or multilateral APA
.04Small Case APA User Fee Eligibility.An APA request is eligible for the small case APA user fee only if all of the following
apply: (i) the controlled group has sales revenues, within the meaning of Treas. Reg. §1.482–5(d)(1), of less than $500 million in
each of its most recent three pre-APA years; (ii) the aggregate value of the proposed covered issue(s) is not expected to exceed $50
million in any given year of the proposed APA years; (iii) the aggregate value of any transfer of rights in, or rights to use, intangibles
is not expected to exceed $10 million in any given year of the proposed APA years; and (iv) no proposed covered issue involves
intangible property arising from, or otherwise related to, an intangible development arrangement.
.05Fees for Amendments.For purposes of section 3.03 of this appendix, an amendment includes coverage of additional issues or other
determinations and material changes to a proposed covered method. APMA will not impose this amendment fee if APMA or a foreign
competent authority initiates the request to amend the proposed covered issue(s) or method(s).
SECTION 4. ADDRESSES AND CONTACT INFORMATION
All mail should be sent to this mailing address, including regular mail, express mail, overnight mail, and mail sent by USPS,
FedEx, UPS, or any other carrier.
Phone number:TBD
Mailing address:Deputy Commissioner (International)
Large Business and International Division
Internal Revenue Service
1111 Constitution Avenue, N.W.
Routing: M3-370
Washington, D.C. 20224
(Attention: APMA)
Website:[link to be included when available]
Office location:801 Ninth Street, N.W., Washington, D.C. 20001.
Mail should not be sent to this address.
Bulletin No. 2013–50December 9, 2013
673

Part IV. Items of General Interest
Notice of Proposed
Rulemaking
Authority for Voluntary
Withholding on Other
Payments
REG–146620 –13
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking
and notice of proposed rulemaking by
cross reference to temporary regulations.
SUMMARY: This document contains
proposed regulations under the Internal
Revenue Code (Code) relating to volun-
tary withholding agreements. In this issue
of the Bulletin, the IRS is also issuing
temporary regulations to allow the Sec-
retary to issue guidance in the Internal
Revenue Bulletin to describe payments
for which the Secretary finds that in-
come tax withholding under a voluntary
withholding agreement would be appro-
priate. The text of those temporary reg-
ulations also generally serves as the text
of these proposed regulations. The reg-
ulations affect persons making and per-
sons receiving payments for which the
IRS issues subsequent guidance autho-
rizing the parties to enter into voluntary
withholding agreements.
DATES: Written or electronic comments
and requests for a public hearing must be
received by February 25, 2014.
ADDRESSES: Send submissions to: CC:
PA:LPD:PR (REG–146620 –13), room
5203, Internal Revenue Service, PO Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand-
delivered Monday through Friday be-
tween the hours of 8 a.m. and 4 p.m. to
CC:PA:LPD:PR(REG–146620 –13),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue NW, Washing-
ton, DC, or sent electronically via the Fed-
eral eRulemaking Portal athttp://www.
regulations.gov(IRS REG–146620 –13).
FOR FURTHER INFORMATION
CONTACT: Concerning the proposed
regulations, Linda L. Conway-Hataloski
at (202) 317-6798; concerning submission
of comments and request for hearing, Olu-
wafunmilayo (Funmi) Taylor at (202)
317-5179 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
Section 3402(p) allows for voluntary
income tax withholding agreements. Sec-
tion 3402(p)(3) authorizes the Secretary to
provide regulations for withholding from
(A) remuneration for services performed
by an employee for the employee’s em-
ployer which does not constitute wages,
and (B) from any other payment with re-
spect to which the Secretary finds that
withholding would be appropriate, if the
employer and employee, or the person
making and the person receiving such
other type of payment, agree to such with-
holding. Section 3402(p)(3) also autho-
rizes the Secretary to prescribe in regula-
tions the form and manner of such
agreement. Section 31.3402(p)–1 of the
Employment Tax Regulations describes
how an employer and an employee may
enter into an income tax withholding
agreement under section 3402(p) for
amounts that are excepted from the defi-
nition of wages in section 3401(a).
Explanation of Provisions
The proposed regulations amend the
headings to paragraphs (a) and (b) of
§31.3402(p)–1 to clarify that those para-
graphs apply to voluntary withholding
agreements between an employer and em-
ployee. Temporary regulations in this is-
sue of the Bulletin also amend the Em-
ployment Tax Regulations (26 CFR part
31) under section 3402(p). The text of
those temporary regulations also serves as
the text of these proposed regulations. The
preamble to the temporary regulations ex-
plains the amendments.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a signifi-
cant regulatory action as defined in Exec-
utive Order 12866, as supplemented by
Executive Order 13563. Therefore, a reg-
ulatory assessment is not required. It has
also been determined that 5 U.S.C. 533(b)
of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply to these
regulations and because the regulation
does not impose a collection of informa-
tion on small entities, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does
not apply. Pursuant to section 7805(f) of
the Internal Revenue Code, these regula-
tions have been submitted to the Office of
Chief Counsel for Advocacy of the Small
Business Administration for comment on
their impact on small business.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are
submitted timely to the IRS as prescribed
in the Addresses heading in this preamble.
The IRS and Treasury Department request
comments on all aspects of the proposed
regulations. All comments will be avail-
able atwww.regulations.govor upon re-
quest.
A public hearing will be scheduled if
requested in writing by any person that
timely submits written comments. If a
public hearing is scheduled, notice of the
date, time, and place for the public hear-
ing will be published in theFederal Reg-
ister.
Drafting Information
The principal author of these regula-
tions is Linda L. Conway-Hataloski, Of-
fice of Associate Chief Counsel (Tax Ex-
empt and Government Entities). However,
other personnel from the IRS and Trea-
sury Department participated in their de-
velopment.
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 31 is pro-
posed to be amended as follows:
December 9, 2013Bulletin No. 2013–50
674

PART 31—EMPLOYMENT TAXES
AND COLLECTION OF INCOME
TAX AT SOURCE
Paragraph 1. The authority citation for
part 31 continues to read in part as fol-
lows:
Authority: 26 U.S.C. 7805***
Par.2.Section31.3402(p)–1is
amended by:
1. Revising the headings of paragraphs
(a) and (b).
2. Removing the language “3402(b)” in
the first sentence and “3402(p)” in the third
sentence and adding “3402(p)(3)(A)” in its
place as it appears in paragraph (a) and the
five places “3402(p)” as it appears in para-
graph (b).
3. Adding paragraphs (c) and (d).
The revisions and additions read as fol-
lows:
§31.3402(p)–1 Voluntary Withholding
Agreements.
(a)Employer-employee agreement.***
*****
(b)Form and duration of employer-
employee agreement.***
*****
(c) [The text of this paragraph (c) is the
same as the text of paragraph (c) of
§31.3402(p)–1T published elsewhere in
this issue of the Bulletin].
(d) [The text of this paragraph (d) is the
same as the text of paragraph (d)(1) of
§31.3402(p)–1T published elsewhere in
this issue of the Bulletin].
John Dalrymple,
Deputy Commissioner
for Services and Enforcement.
(Filed by the Office of the Federal Register on November
27, 2013, 8:45 a.m. and published in the issue of the Federal
Register for November 29, 2013, 78 F.R. 71542)
Bulletin No. 2013–50December 9, 2013
675

Definition of Terms
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Revenue rulings and revenue proce-
dures (hereinafter referred to as “rul-
ings”) that have an effect on previous
rulings use the following defined terms to
describe the effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified andclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
supersededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Abbreviations
The following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2013–50December 9, 2013
i

Numerical Finding List
1
Bulletins 2013–27 through 2013–50
Announcements
2013-35, 2013-27 I.R.B.46
2013-36, 2013-33 I.R.B.142
2013-37, 2013-34 I.R.B.155
2013-38, 2013-36 I.R.B.185
2013-39, 2013-35 I.R.B.167
2013-40, 2013-38 I.R.B.226
2013-41, 2013-40 I.R.B.322
2013-42, 2013-44 I.R.B.464
2013-43, 2013-46 I.R.B.524
2013-44, 2013-47 I.R.B.545
2013-45, 2013-47 I.R.B.546
2013-46, 2013-48 I.R.B.593
2013-47, 2013-49 I.R.B.620
2013-48, 2013-49 I.R.B.620
2013-49, 2013-49 I.R.B.621
Notices
2013-41, 2013-29 I.R.B.60
2013-42, 2013-29 I.R.B.61
2013-43, 2013-31 I.R.B.113
2013-44, 2013-29 I.R.B.62
2013-45, 2013-31 I.R.B.116
2013-46, 2013-31 I.R.B.117
2013-47, 2013-31 I.R.B.120
2013-48, 2013-31 I.R.B.120
2013-49, 2013-32 I.R.B.127
2013-50, 2013-32 I.R.B.133
2013-51, 2013-34 I.R.B.153
2013-52, 2013-35 I.R.B.159
2013-53, 2013-36 I.R.B.173
2013-54, 2013-40 I.R.B.287
2013-55, 2013-38 I.R.B.207
2013-56, 2013-39 I.R.B.262
2013-57, 2013-40 I.R.B.293
2013-58, 2013-40 I.R.B.294
2013-59, 2013-40 I.R.B.297
2013-60, 2013-44 I.R.B.431
2013-61, 2013-44 I.R.B.432
2013-62, 2013-45 I.R.B.466
2013-63, 2013-44 I.R.B.436
2013-64, 2013-44 I.R.B.438
2013-65, 2013-44 I.R.B.440
2013-66, 2013-46 I.R.B.498
2013-67, 2013-45 I.R.B.470
2013-68, 2013-46 I.R.B.501
2013-69, 2013-46 I.R.B.503
2013-70, 2013-47 I.R.B.528
2013-71, 2013-47 I.R.B.532
2013-72, 2013-48 I.R.B.592
2013-73, 2013-49 I.R.B.598
2013-75, 2013-49 I.R.B.599
2013-77, 2013-50 I.R.B.632
2013-78, 2013-50 I.R.B.633
2013-79, 2013-50 I.R.B.653
Proposed Regulations
REG-124148-05, 2013-44 I.R.B.444
REG-161948-05, 2013-44 I.R.B.449
REG-148659-07, 2013-45 I.R.B.473
REG-132251-11, 2013-37 I.R.B.191
REG-148812-11, 2013-45 I.R.B.484
REG-111753-12, 2013-40 I.R.B.302
REG-112815-12, 2013-35 I.R.B.162
REG-114122-12, 2013-35 I.R.B.163
REG-136630-12, 2013-40 I.R.B.303
REG-140789-12, 2013-32 I.R.B.136
REG-144990-12, 2013-39 I.R.B.264
REG-110732-13, 2013-43 I.R.B.405
REG-111837-13, 2013-39 I.R.B.266
REG-113792-13, 2013-38 I.R.B.211
REG-115300-13, 2013-37 I.R.B.197
REG-120927-13, 2013-49 I.R.B.618
REG-146620-13, 2013-50 I.R.B.674
Revenue Procedures
2013-28, 2013-27 I.R.B.28
2013-29, 2013-33 I.R.B.141
2013-30, 2013-36 I.R.B.173
2013-31, 2013-38 I.R.B.208
2013-32, 2013-28 I.R.B.55
2013-33, 2013-38 I.R.B.209
2013-34, 2013-43 I.R.B.398
2013-35, 2013-47 I.R.B.537
2013-36, 2013-49 I.R.B.602
2013-37, 2013-49 I.R.B.612
Revenue Rulings
2013-13, 2013-32 I.R.B.124
2013-15, 2013-28 I.R.B.47
2013-16, 2013-40 I.R.B.275
2013-17, 2013-38 I.R.B.201
2013-18, 2013-37 I.R.B.186
2013-19, 2013-39 I.R.B.240
2013-20, 2013-40 I.R.B.272
2013-21, 2013-43 I.R.B.396
2013-22, 2013-46 I.R.B.496
2013-23, 2013-48 I.R.B.590
2013-24, 2013-49 I.R.B.594
2013-26, 2013-50 I.R.B.628
Treasury Decisions
9620, 2013-27 I.R.B.1
9621, 2013-28 I.R.B.49
9622, 2013-30 I.R.B.64
9623, 2013-30 I.R.B.73
9624, 2013-31 I.R.B.86
9625, 2013-34 I.R.B.147
9626, 2013-34 I.R.B.149
9627, 2013-35 I.R.B.156
9628, 2013-36 I.R.B.169
9629, 2013-37 I.R.B.188
9630, 2013-38 I.R.B.199
Treasury Decisions—Continued
9631, 2013-38 I.R.B.205
9632, 2013-39 I.R.B.241
9633, 2013-39 I.R.B.227
9634, 2013-40 I.R.B.272
9635, 2013-40 I.R.B.273
9636, 2013-43 I.R.B.331
9637, 2013-44 I.R.B.427
9638, 2013-46 I.R.B.487
9639, 2013-48 I.R.B.588
9640, 2013-48 I.R.B.548
9641, 2013-50 I.R.B.622
9646, 2013-50 I.R.B.630
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin
2013–26, dated June 24, 2013.
December 9, 2013Bulletin No. 2013–50
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–27 through 2013–50
Notices:
2004-23
Clarified by
Notice 2013-57, 2013-40 I.R.B.293
2004-50
Clarified by
Notice 2013-57, 2013-40 I.R.B.293
2005-70
Obsoleted by
T.D. 9633 2013-39 I.R.B.227
2006-09
Modified and superseded by
Notice 2013-79, 2013-50 I.R.B.653
2006-40
Superseded by
Notice 2013-68, 2013-46 I.R.B.501
2006-54
Proposed update and supersession to by
Notice 2013-78, 2013-50 I.R.B.633
2008-31
Modified and superseded by
Notice 2013-79, 2013-50 I.R.B.653
2009-41
Clarified and amplified by
Notice 2013-70,
2009-53
Clarified and amplified by
Notice 2013-70,
2012-74
Obsoleted by
Notice 2013-51, 2013-34 I.R.B.153
2013-16
Superseded by
Notice 2013-55, 2013-38 I.R.B.207
2013-29
Clarified by
Notice 2013-60, 2013-44 I.R.B.431
2013-36
Appendix updated by
Notice 2013-55, 2013-38 I.R.B.207
Superseded by
Notice 2013-55, 2013-38 I.R.B.207
2013-39
Amplified by
Notice 2013-47, 2013-31 I.R.B.120
2013-40
Amplified by
Notice 2013-47, 2013-31 I.R.B.120
Revenue Procedures:
81-60
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
83-59
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
86-42
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
90-52
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
96-30
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
97-48
Situation 1 superseded, Situation 2 obsoleted by
Rev. Proc. 2013-30, 2013-36 I.R.B.173
2003-43
Modified and superseded by
Rev. Proc. 2013-30, 2013-36 I.R.B.173
2003-48
Obsoleted in part and superseded in part by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
2003-61
Superseded by
Rev. Proc. 2013-34, 2013-43 I.R.B.398
2004-34
Modified and clarified by
Rev. Proc. 2013-29, 2013-33 I.R.B.141
2004-48
Modified and superseded by
Rev. Proc. 2013-30, 2013-36 I.R.B.173
2004-49
Sections 4.01 & 4.02 modified and superseded,
Section 4.03 obsoleted by
Rev. Proc. 2013-30, 2013-36 I.R.B.173
2007-44
Modified by
Ann. 2013-37, 2013-34 I.R.B.155
2007-62
Modified and superseded by
Rev. Proc. 2013-30, 2013-36 I.R.B.173
2009-25
Pilot program discontinued by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
Revenue Procedures—Continued:
2011-18
Modified and clarified by
Rev. Proc. 2013-29, 2013-33 I.R.B.141
2011-49
Modified by
Ann. 2013-37, 2013-34 I.R.B.155
2012-25
Obsoleted in part by
Rev. Proc. 2013-28, 2013-27 I.R.B.28
2013-1
Amplified and modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
2013-3
Amplified and modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.55
Proposed Regulations:
112815-12
Corrected by
Ann. 2013-45, 2013-47 I.R.B.546
Revenue Rulings:
58-66
Amplified and clarified by
Rev. Rul. 2013-17, 2013-38 I.R.B.201
2012-33
Supplemented and superseded by
Rev. Rul. 2013-23, 2013-48 I.R.B.590
2013-17
Supplemented by
Notice 2013-61, 2013-44 I.R.B.432
Treasury Decisions:
9610
Corrected by
Ann. 2013-41, 2013-40 I.R.B.322
9612
Corrected by
Ann. 2013-35, 2013-27 I.R.B.46
9622
Corrected by
Ann. 2013-39, 2013-35 I.R.B.167
9627
Corrected by
Ann. 2013-44, 2013-37 I.R.B.545
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013.
Bulletin No. 2013–50December 9, 2013
iii

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