Internal Revenue Bulletin 2014-17 (PDF rendition): IRS Revenue Rulings

Preserve advance releases and the authoritative Internal Revenue Bulletin rendition; directory timestamps are file-publication metadata, not legal effective dates. HTML bulletins begin June 2003; earlier available issues require full PDF parsing. Whole bulletin rendition: numbered items are identified below; other legal material and publisher context remain included. This is not a new standalone advance release.

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
Announcement 2014 –18, page 983.
This document contains corrections to final regulations (TD
9644) that were published in the Federal Register on Monday,
December 2, 2013 (78 FR 72394). The final regulations pro-
vide guidance on the general application of the Net Investment
Income Tax and the computation of Net Investment Income.
Announcement 2014 –19, page 984.
This document contains corrections to final regulations (TD
9644) that were published in the Federal Register on Monday,
December 2, 2013 (78 FR 72394). The final regulations pro-
vide guidance on the general application of the Net Investment
Income Tax and the computation of Net Investment Income.
Notice 2014 –25, page 981.
This notice publishes the nonconventional source fuel credit,
inflation adjustment factor, and reference price under § 45K of
the Internal Revenue Code for calendar year 2013. The inflation
adjustment factor and reference price are used to determine
the credit allowable on sales of fuel produced from a noncon-
ventional source under § 45K.
EMPLOYEE PLANS
Rev. Rul. 2014 –9, page 975.
This revenue ruling provides simplified safe harbor due dili-
gence procedures a plan administrator may use in order to be
deemed to have reasonably concluded that an amount was a
valid rollover contribution. The revenue ruling provides two new
streamlined safe harbor due diligence procedures that, in the
absence of evidence to the contrary, will give rise to the
presumption that the administrator of the receiving plan rea-
sonably concluded that a rollover was valid.
Announcement 2014 –16, page 983.
Opinion and advisory letters for pre-approved (i.e., master and
prototype (M&P;) and volume submitter (VS)) defined contribu-
tion plans that were restated for changes in plan qualification
requirements listed in Notice 2010–90, 2010–52 I.R.B. 909
(2010 Cumulative List) and that were filed with the Service for
their second submission period under the remedial amendment
cycle under Rev. Proc. 2007–44, 2007–2 C.B. 54 will be
issued soon. Employers using these pre-approved plan docu-
ments to restate a plan for the plan qualification requirements
in the 2010 Cumulative List will be required to adopt the plan
document by April 30, 2016. Starting May 1, 2014 and ending
April 30, 2016, the Service will accept applications for individ-
ual determination letters from employers under the second
six-year remedial amendment cycle for defined contribution
pre-approved plans.
Notice 2014 –19, page 979.
The purpose of this notice is to provide guidance on the
application (including the retroactive application) of the deci-
sion in United States v. Windsor, 570 U.S. ___, 133 S. Ct.
2675 (2013), and the holdings of Rev. Rul. 2013–17,
2013–38 I.R.B. 201 (Sept. 16, 2013), to retirement plans
qualified under section 401(a) of the Internal Revenue Code
(Code). Rev. Rul. 2013–17 is amplified.
Finding Lists begin on page ii.
Index for July through April begins on page iv.
Bulletin No. 2014 –17
April 21, 2014

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.
April 21, 2014Bulletin No. 2014 –17

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 401.—Qualified
Pension, Profit-Sharing,
and Stock Bonus Plans
(Also §§ 401(a)(31), 402(c), 408(d)(3); 26 CFR
1.401(a)(31)–1)
Rollovers to Qualified Plans
Rev. Rul. 2014 –9
ISSUE
In the following situations, may the plan
administrator for a plan that is qualified un-
der § 401(a) of the Internal Revenue Code
reasonably conclude that a potential rollover
contribution is a valid rollover contribution
under § 1.401(a)(31)–1, Q&A–14(b)(2), of
the Income Tax Regulations?
FACTS
Situation 1
Employer X maintains Plan M, a
profit-sharingplanqualifiedunder
§ 401(a) of the Code that covers a class of
its employees. Plan M provides that any
employee of Employer X who is in the
covered class may make a rollover contri-
bution to Plan M. Plan M does not accept
rollovercontributionsofafter-tax
amounts or amounts attributable to desig-
nated Roth contributions. Employee A is
an employee of Employer X who is eligi-
ble to make rollover contributions to Plan
M. Employee A has a vested account bal-
ance in Plan O (a retirement plan main-
tained by Employee A’s prior employer)
and is eligible for a distribution under the
terms of Plan O.
In 2014, Employee A requests a distri-
bution of her vested account balance in
Plan O and elects that it be paid to Plan M
in the form of a direct rollover. The trustee
for Plan O distributes Employee A’s
vested account balance in a direct rollover
to Plan M by issuing a check payable to
the trustee for Plan M for the benefit of
Employee A, and provides the check to
Employee A. Employee A provides the
plan administrator for Plan M with the
name of Employee A’s prior employer
and delivers the check, with an attached
check stub that identifies Plan O as the
source of the funds, to the plan adminis-
trator. Employee A also certifies that the
distribution from Plan O does not include
after-tax contributions or amounts attrib-
utable to designated Roth contributions.
The plan administrator for Plan M ac-
cesses the EFAST2 database maintained
by the Department of Labor atwww.efast.
dol.govand searches for the most recently
filed Form 5500 for Plan O. The latest
Form 5500 for Plan O that the plan ad-
ministrator for Plan M locates in the da-
tabase is the Form 5500 filed for the plan
year beginning January 1, 2012, and end-
ing December 31, 2012. On that filing,
line 8a does not include code 3C (for a
plan not intended to be qualified under
Code § 401, 403, or 408).
Situation 2
The facts are the same as in Situation 1,
except as follows.
Employee A has an account balance in
IRA N, which is titled “IRA of Employee
A.” IRA N is a traditional IRA within the
meaning of § 1.408A– 8, Q&A–1(a)(2)
(rather than a Roth IRA or a SIMPLE IRA
as described in § 408(p)), and is not an
inherited IRA within the meaning of
§ 408(d)(3)(C)(ii). Employee A requests a
distribution of her account balance in the
form of a direct payment from IRA N to
Plan M. The trustee for IRA N issues a
check payable to the trustee for Plan M for
the benefit of Employee A and provides
the check to Employee A. Employee A
delivers the check, including a check stub
that identifies “IRA of Employee A” as
the source of the funds, to the plan admin-
istrator for Plan M. Employee A certifies
that her distribution from IRA N includes
no after-tax amounts. Employee A also
certifies that she will not have attained age
70
1
⁄2by the end of the year in which the
check is issued.
LAW AND ANALYSIS
Section 401(a)(31) provides that a trust
does not constitute a qualified trust unless
the plan of which the trust is a part pro-
vides that if the distributee of any eligible
rollover distribution elects to have the dis-
tribution paid directly to an eligible retire-
ment plan and specifies the eligible retire-
ment plan to which the distribution is to
be paid, the distribution will be made in
the form of a direct trustee-to-trustee
transfer.
Section 402(a) provides generally that
any amount distributed from a trust de-
scribed in § 401(a) that is exempt from tax
under § 501(a) is taxable, in the taxable
year of the distributee in which distrib-
uted, under § 72.
Section 402(c) provides taxability rules
for an amount that is rolled over from a
qualified trust to an eligible retirement plan.
Subject to certain exceptions, § 402(c)(1)
provides that if any portion of an eligible
rollover distribution paid to the employee
from a qualified trust is transferred to an
eligible retirement plan, the portion of the
distribution so transferred is not includible
in gross income in the taxable year in which
paid.
Under § 402(c)(4), an eligible rollover
distribution for purposes of § 402(c) gen-
erally means any distribution to an em-
ployee of all or any portion of the balance
to the credit of the employee in a qualified
trust. However, certain distributions are
not eligible rollover distributions: a distri-
bution that is one of a series of substan-
tially equal periodic payments (not less
frequently than annually) made for the life
(or life expectancy) of the distributee or
the joint lives (or joint life expectancies)
of the distributee and the distributee’s des-
ignated beneficiary, or for a specified pe-
riod of 10 years or more; a distribution to
the extent such distribution is required
under § 401(a)(9) of the Code; and a hard-
ship distribution.
Section 402(c)(8) provides that an eli-
gible retirement plan is an individual re-
tirement account described in § 408(a) or
individual retirement annuity described in
§ 408(b) (IRA), a qualified trust described
in § 401(a), an annuity plan described in
§ 403(a), or an annuity contract described
in § 403(b). An eligible retirement plan
also includes an eligible plan under
§ 457(b) that is maintained by a state,
political subdivision of a state, or any
Bulletin No. 2014 –17April 21, 2014
975

agency or instrumentality of a state or
political subdivision of a state.
Sections 403(a)(4)(A), 403(b)(8)(A),
and 457(e)(16)(A) provide that if any
portion of an eligible rollover distribu-
tion from a §403(a) plan, § 403(b) plan,
or eligible governmental § 457(b) plan,
respectively, is transferred to an eligible
retirement plan, the portion of the distri-
bution so transferred is not includible in
gross income in the taxable year in which
transferred.Sections403(a)(4)(B),
403(b)(8)(B), and 457(e)(16)(B) provide
that the rules of paragraphs (2) through (7),
(9), and (11) of § 402(c) apply for purposes
of §§ 403(a)(4)(A), 403(b)(8)(A), and
457(e)(16)(A),respectively.Sections
403(a)(5), 403(b)(10), and 457(d)(1)(C)
provide that requirements similar to the re-
quirements of § 401(a)(31) apply to a
§ 403(a) plan, a § 403(b) plan, and an eli-
gible governmental § 457(b) plan, respec-
tively.
Section 408(d)(1) provides that any
amount distributed from an IRA generally
is included in the gross income of the
distributee as provided in § 72.
1
Section
408(d)(2) provides that, for purposes of
applying § 72 to a distribution from an
IRA, all IRAs of an individual shall be
treated as one contract and all distribu-
tions during any taxable year shall be
treated as one distribution.
Section 408(d)(3)(A) provides that,
subject to certain limitations, amounts dis-
tributed from an IRA that are paid into an
eligible retirement plan are not included in
gross income. Section 408(d)(3)(A)(ii)
provides that the maximum amount which
may be paid from an IRA into an eligible
retirement plan (other than an IRA) as a
rollover contribution may not exceed the
portion of the distribution that otherwise
would have been includible in income. In
the case of a rollover contribution,
§ 408(d)(3)(H) provides special rules for
determining the character of the distribu-
tion either as includible in income or as
after-tax amounts.
Section 408(d)(3) further provides that
amounts required to be distributed under
§ 408(a)(6) or (b)(3) and amounts distrib-
uted from inherited IRAs may not be
transferred to a plan as a rollover contri-
bution. In addition, § 408(d)(3)(G) pro-
vides that a distribution from a SIMPLE
IRA during the 2-year period beginning
on the date an individual first participated
in any qualified salary reduction arrange-
ment maintained by the individual’s em-
ployer under § 408(p)(2) may not be
transferred as a rollover contribution to a
plan other than another SIMPLE IRA.
Further, § 1.408A– 6, Q&A–17, provides
that any amount distributed from a Roth
IRA and contributed to another type of
retirement plan (other than a Roth IRA) is
treated as a distribution from the Roth
IRA that is neither a rollover contribution
for purposes of § 408(d)(3) nor a qualified
rollover contribution within the meaning
of § 408A(e) to the other type of retire-
ment plan. This treatment also applies to
any amount transferred from a Roth IRA
to any other type of retirement plan unless
the transfer is a recharacterization de-
scribed in § 1.408A–5.
Section 1.401(a)(31)–1, Q&A– 4, pro-
vides that a trustee of a plan may accom-
plish a direct rollover by providing a dis-
tributee with a check made payable to the
trustee of another eligible retirement plan
for the benefit of the distributee and in-
structing the distributee to deliver the
check to the eligible retirement plan.
Section 1.401(a)(31)–1, Q&A–14, pro-
vides that if a plan accepts an invalid
rollover contribution, the contribution will
be treated, for purposes of applying the
qualification requirements of § 401(a) or
403(a) to the receiving plan, as if it were
a valid rollover contribution if two condi-
tions are satisfied. First, when accepting
the amount from the employee as a roll-
over contribution, the plan administrator
for the receiving plan must reasonably
conclude that the contribution is a valid
rollover contribution. Second, if the plan
administrator for the receiving plan later
determines that the contribution was an
invalid rollover contribution, the plan ad-
ministrator must distribute the amount of
the invalid rollover contribution, plus any
earnings attributable thereto, to the em-
ployee within a reasonable time after such
determination.
Under § 1.401(a)(31)–1, Q&A–14(b)(1),
an invalid rollover contribution is an amount
accepted by a plan as a rollover that is not an
eligible rollover distribution from a quali-
fied plan or an amount that does not satisfy
the requirements of § 401(a)(31), 402(c), or
408(d)(3) for treatment as a rollover or roll-
over contribution. Under § 1.401(a)(31)–1,
Q&A–14(b)(2), a valid rollover contribution
is a contribution that is accepted by a plan as
arolloverwithinthemeaningof
§ 1.402(c)–2, Q&A–1, or as a rollover con-
tribution within the meaning of § 408(d)(3),
and that satisfies the requirements of
§ 401(a)(31), 402(c), or 408(d)(3) for treat-
ment as a rollover or a rollover contribution.
Section1.402(c)–2,Q&A–3and
Q&A– 4, provides a list of distributions
that are not eligible rollover distributions
for purposes of § 402(c).
Section 1.401(a)(31)–1, Q&A–14, pro-
vides a number of examples illustrating
situations in which the administrator for a
receiving plan may reasonably conclude
that a distributing plan is a qualified plan
and that a potential rollover contribution
is a valid rollover contribution. The regu-
lation notes that a distributing plan is not
required to have a determination letter in
order for the plan administrator for the
receiving plan to reasonably conclude that
a potential rollover contribution is a valid
rollover contribution.
The Code has been amended a number
of times since § 1.401(a)(31)–1, Q&A–14,
and § 1.402(c)–2, Q&A– 4, were first pub-
lished. For example, the Code has been
amended to provide that a rollover of a
hardship distribution is not permitted, and
that a rollover of an eligible rollover dis-
tribution from a § 403(a) plan, a § 403(b)
plan, or an eligible governmental § 457(b)
plan to an eligible retirement plan is per-
mitted. Additionally, the requirement that
a rollover of a distribution from an IRA to
a qualified plan may only be made if the
IRA is a “conduit IRA” (an IRA to which
the only contributions consist of rollover
contributions from one or more qualified
plans) has been eliminated. However, the
regulations under §§ 401(a)(31) and
402(c) have not been updated to reflect
these changes.
The Department of Labor, the Internal
Revenue Service, and the Pension Benefit
Guaranty Corporation jointly developed the
1
The transfer of funds from one IRA trustee to another without the IRA owner having direct control and use of such funds is not a distribution under § 408(d)(1). See Rev. Rul. 78 – 406,
1978 –2 C.B. 157.
April 21, 2014Bulletin No. 2014 –17
976

Form 5500 Annual Return/Report of Em-
ployee Benefit Plan and Form 5500 –SF
Short Form Annual Return/Report of Small
Employee Benefit Plan to enable employee
benefit plans to satisfy annual reporting re-
quirements under Title I and Title IV of the
Employee Retirement Income Security Act
(ERISA) and under the Code. These forms
are part of an overall reporting and disclo-
sure framework that is intended to assure
that employee benefit plans are operated and
managed in accordance with certain pre-
scribed standards.
A Form 5500 or Form 5500 –SF is re-
quired to be filed for all pension benefit
plans covered by Title I of ERISA, except as
otherwise provided in regulations, the in-
structions to such forms, or other guidance
issued by the Department of Labor. Pension
benefit plans for which a Form 5500 or a
Form 5500 –SF is required to be filed in-
clude defined benefit plans, defined contri-
bution plans, annuity arrangements under
§ 403(b)(1), custodial accounts established
under § 403(b)(7) for regulated investment
company stock, IRAs established by an em-
ployer under § 408(c), and church pension
plans electing coverage under § 410(d). The
plan administrator for the plan must enter
codes representing applicable characteristics
of the plan on Line 8a of Form 5500 or on
Line 9a of Form 5500 –SF. The 2012 In-
structions for these forms contain a List of
Plan Characteristic Codes to be used by the
plan administrator in completing these lines.
Code 3C is the code used by the plan ad-
ministrator to indicate that the plan is not
intended to be qualified under Code § 401,
403, or 408.
Certain pension benefit plans covered
by Title I of ERISA are not required to file
Form 5500 or Form 5500 –SF. These in-
clude a SIMPLE IRA plan under § 408(p)
and a simplified employee pension (SEP)
under § 408(k) that conforms to an alter-
nate method of compliance described in
29 CFR 2520.104 – 48 or 2520.104 – 49.
Other types of plans do not file Form 5500
or Form 5500 –SF because they are not
covered by Title I of ERISA. These in-
clude a governmental plan, a church pen-
sion benefit plan not electing coverage
under § 410(d), and an individual retire-
ment account or individual retirement an-
nuity not considered a pension plan under
29 CFR 2510.3–2(d). Although certain
plans that cover only owners and their
spouses are not required to file Form 5500
or Form 5500 –SF, the plan administrators
for these plans may elect to file Form
5500 –SF in lieu of the otherwise applica-
ble Form 5500 –EZ.
Effective January 1, 2010, all Form
5500 Annual Returns/Reports and Form
5500 –SF Annual Returns/Reports (in-
cluding any required schedules and at-
tachments) must be completed and filed
electronically using the EFAST2 system.
All these filings, except those filed by
plans electing to file Form 5500 –SF in
lieu of Form 5500 –EZ, are available to
the public in the EFAST2 database
through the Department of Labor Web site
www.efast.dol.gov.
In Situation 1, the plan administrator
for Plan O did not enter code 3C on line
8a of the Form 5500 filed for Plan O. By
completing the form in this manner, the
plan administrator made a representation
that Plan O is intended to be a plan qual-
ified under § 401, 403, or 408. As a result
of this filing, it is reasonable for the plan
administrator for Plan M to conclude that
Plan O is intended to be a qualified plan.
The trustee for Plan O issued a check
payable to the trustee for Plan M for the
benefit of Employee A, which indicates
that the plan administrator for Plan O
treated the distribution as an eligible roll-
over distribution to be directly rolled over.
Accordingly, it is reasonable for the plan
administrator for Plan M to conclude that
the potential rollover contribution is an
eligible rollover distribution from Plan O.
Thus, for example, if the distribution had
occurred during or after the year in which
Employee A had attained age 70
1
⁄2,it
would be reasonable for the plan admin-
istrator for Plan M to conclude that, in
accordance with § 1.402(c)–2, Q&A–7,
Plan O distributed the required minimum
amount under § 401(a)(9) for the year,
prior to making the direct rollover.
Based on the analysis of the prior para-
graph, absent any evidence to the con-
trary, it is reasonable for the plan admin-
istrator for Plan M to conclude that the
potential rollover contribution to Plan M
of the distribution from Plan O is a valid
rollover contribution.
In Situation 2, the trustee for IRA N
issued a check payable to the trustee for
Plan M for the benefit of Employee A,
which indicates that the trustee for IRA N
treated the distribution as a rollover con-
tribution paid directly to Plan M. Because
the check stub indicates that the distribut-
ing account is titled “IRA of Employee
A,” the plan administrator for Plan M can
reasonably conclude that the source of the
funds is a traditional, non-inherited IRA.
In addition, Employee A has certified that
the distribution included no after-tax
amounts and that she will not attain age
70
1
⁄2by the end of the year of the transfer.
Therefore, it is reasonable for the plan
administrator for Plan M to conclude that
the distribution from IRA N is a distribu-
tion that can be rolled over.
Based on the analysis of the prior para-
graph, absent any evidence to the con-
trary, it is reasonable for the plan admin-
istrator for Plan M to conclude that the
potential rollover contribution to Plan M
of the distribution from IRA N is a valid
rollover contribution. If Employee A had
attained age 70
1
⁄2or older by the end of
the year in which the check was issued,
the plan administrator for Plan M could
not reasonably conclude that the potential
rollover contribution was a valid rollover
contribution absent additional information
indicating that § 408(a)(6) or 408(b)(3)
had been satisfied with respect to IRA N
in the year in which the check was issued.
In Situations 1 and 2, the results would
be the same if there had been no check stub
identifying the source of the funds, as long
as the check itself identified the source of
the funds as Plan O or IRA N, respectively.
Similarly, the results would be the same if
the rollover had been accomplished through
a wire transfer or other electronic means,
provided that the plan administrator or
trustee for the sending plan or IRA had
communicated to the plan administrator for
Plan M the same information regarding the
source of the funds.
HOLDINGS
In Situation 1, absent any evidence to
the contrary, the plan administrator for
Plan M may reasonably conclude that the
potential rollover contribution by Em-
ployee A from Plan O to Plan M is a valid
rollover contribution.
In Situation 2, absent any evidence to
the contrary, the plan administrator for
Plan M may reasonably conclude that the
potential rollover contribution by Em-
Bulletin No. 2014 –17April 21, 2014
977

ployee A from IRA N to Plan M is a valid
rollover contribution.
In Situations 1 and 2, if it is later deter-
mined that the amount rolled over is an
invalid rollover contribution, the amount
rolled over plus any attributable earnings
must be distributed to Employee A within a
reasonable time after such determination.
DRAFTING INFORMATION
The principal author of this revenue ruling
is Kathleen Herrmann of the EmployeePlans,
Tax Exempt and Government Entities Divi-
sion. Ms. Herrmann may be reached by
e-mail atRetirementPlanQuestions@irs.gov.
April 21, 2014Bulletin No. 2014 –17
978

Part III. Administrative, Procedural, and Miscellaneous
Application of theWindsor
Decision and Rev. Rul.
2013–17 to Qualified
Retirement Plans
Notice 2014 –19
SECTION 1. PURPOSE
The purpose of this notice is to provide
guidance on the application (including the
retroactive application) of the decision in
United States v. Windsor, 570 U.S. ___,
133 S. Ct. 2675 (2013), and the holdings
of Rev. Rul. 2013–17, 2013–38 I.R.B. 201
(Sept. 16, 2013), to retirement plans qual-
ified under section 401(a) of the Internal
Revenue Code (Code).
SECTION 2. BACKGROUND
01. Qualified Retirement Plan Rules
Relating to Married Participants
Several Code sections provide special
rules with respect to married participants
in qualified retirement plans, including,
but not limited to, the following:
•Under section 401(a)(11), certain qual-
ified retirement plans must provide a
qualified joint and survivor annuity
(QJSA) upon retirement to married
participants (and generally must pro-
vide a qualified preretirement survivor
annuity (QPSA) to the surviving
spouse of a married participant who
dies before retirement). If a plan is
subject to these rules, the QJSA (or
QPSA) may be waived by a married
participant only with spousal consent
pursuant to section 417. If such a plan
permits loans to participants, then sec-
tion 417(a)(4) requires a plan to obtain
the consent of the spouse of a married
participant before making a loan to the
participant.
•Under section 401(a)(11)(B)(iii), cer-
tain qualified defined contribution re-
tirement plans are exempt from the
QJSA and QPSA requirements pro-
vided that a married participant’s ben-
efit is payable in full, on the death of
the participant, to the participant’s sur-
viving spouse, unless the surviving
spouse consents to the designation of a
different beneficiary.
•Under the required minimum distribu-
tion rules of section 401(a)(9) and the
rollover rules of section 402(c), addi-
tional alternatives are provided for sur-
viving spouses that are not available to
non-spousal beneficiaries.
•Under section 1563(e)(5), generally a
spouse is treated as owning shares
owned by the other spouse for pur-
poses of determining whether corpora-
tions are members of a controlled
group under section 414(b).
•Under section 318(a)(1), generally a
spouse is treated as owning shares
owned by the other spouse for pur-
poses of determining whether an em-
ployee is a key employee under sec-
tion 416(i)(1), including whether an
employee is considered a 5% owner.
•Under section 409(n), an employee
stock ownership plan (ESOP) that ac-
quires certain employer securities gen-
erally must prohibit the allocation or
accrual of those securities for the ben-
efit of certain individuals, including
the spouse of the seller and the spouse
of any individual who owns 25% or
more of the securities.
•Under section 409(p), no portion of
the assets of an ESOP attributable to
employer securities consisting of S
corporation stock may accrue during a
nonallocation year for the benefit of
any disqualified person or certain fam-
ily members of the disqualified person
(including the spouse) in certain cir-
cumstances.
•Under section 401(a)(13)(B), the anti-
alienation rules do not apply to the
creation, assignment, or recognition of
an alternate payee’s right to receive all
or a portion of the benefits payable to
a participant under a plan pursuant to a
qualified domestic relations order
(QDRO) described in section 414(p),
and, under section 402(e)(1), an alter-
nate payee who is a spouse or former
spouse of the participant is treated as
the distributee of a distribution under a
QDRO.
02. Defense of Marriage Act
Until the decision of the Supreme
Court inWindsorfound it unconstitu-
tional, section 3 of the Defense of Mar-
riage Act (DOMA) prohibited the recog-
nition of same-sex spouses for purposes of
Federal tax law. Specifically, section 3 of
DOMA provided that:
In determining the meaning of any
Act of Congress, or of any ruling,
regulation, or interpretation of the
various administrative bureaus and
agencies of the United States, the
word ‘marriage’ means only a legal
union between one man and one
woman as husband and wife, and
the word ‘spouse’ refers only to a
person of the opposite sex who is a
husband or a wife.
1 U.S.C. § 7. As a result, same-sex
spouses were not recognized for purposes
of the Code with respect to qualified re-
tirement plans.
03. Effect of theWindsorDecision and
Rev. Rul. 2013–17
In theWindsordecision, the Supreme
Court held on June 26, 2013 that section 3
of DOMA is unconstitutional because it
violates Fifth Amendment principles.
Subsequent to theWindsordecision, Rev.
Rul. 2013–17 held the following:
(1) For Federal tax purposes, the terms
“spouse,” “husband and wife,” “husband,”
and “wife” include an individual married
to a person of the same sex if the individ-
uals are lawfully married under state law,
and the term “marriage” includes such a
marriage between individuals of the same
sex.
(2) For Federal tax purposes, the Inter-
nal Revenue Service (Service) adopts a
general rule recognizing a marriage of
same-sex individuals that was validly en-
tered into in a state whose laws authorize
the marriage of two individuals of the
same sex even if the married couple is
domiciled in a state that does not recog-
nize the validity of same-sex marriages.
(3) For Federal tax purposes, the terms
“spouse,” “husband and wife,” “husband,”
and “wife” do not include individuals
(whether of the opposite sex or the same
sex) who have entered into a registered
Bulletin No. 2014 –17April 21, 2014
979

domestic partnership, civil union, or other
similar formal relationship recognized un-
der state law that is not denominated as a
marriage under the laws of that state, and
the term “marriage” does not include such
formal relationships. The holdings of Rev.
Rul. 2013–17 apply for all Federal tax
purposes, including for purposes of the
Federal tax rules that apply to qualified
retirement plans under section 401(a). The
ruling provides that the holdings will be
applied prospectively as of September 16,
2013. The ruling also provides that tax-
payers may rely on the holdings retroac-
tively with respect to any employee ben-
efit plan or arrangement (or any benefit
provided thereunder) for limited purposes
with respect to certain employer-provided
health coverage and fringe benefits that
are specified in the ruling. The ruling fur-
ther states that:
The Service intends to issue further
guidance on the retroactive applica-
tion of the Supreme Court’s opinion
inWindsorto other employee ben-
efits and employee benefit plans and
arrangements. Such guidance will
take into account the potential con-
sequences of retroactive application
to all taxpayers involved, including
the plan sponsor, the plan or ar-
rangement, employers, affected em-
ployees and beneficiaries. The Ser-
vice anticipates that the future
guidance will provide sufficient
time for plan amendments and any
necessary corrections so that the
plan and benefits will retain favor-
able tax treatment for which they
otherwise qualify.
04. Authority under Section 7805(b)(8)
Under section 7805(b)(8), the Com-
missioner is authorized to prescribe the
extent, if any, to which any judicial deci-
sion, or any administrative determination
other than by regulation, relating to the
internal revenue laws is to be applied
without retroactive effect.
05. Remedial Amendment Period under
Section 401(b)
Section 401(b) provides a period dur-
ing which a plan may be amended retro-
actively to comply with the Code’s qual-
ification requirements. The deadline for
amending a plan is generally the time pre-
scribed by law for filing the return of the
employer for its taxable year in which the
amendment was adopted or such later
time as the Secretary may designate.
Rev. Proc. 2007– 44, 2007–28 I.R.B.
54, provides rules regarding the timing of
amendments made to qualified retirement
plans. Section 5.05 of Rev. Proc. 2007– 44
provides that when there are changes to
the plan qualification requirements that
affect provisions of the written plan doc-
ument, the adoption of an interim amend-
ment generally is required by the later of
the end of the plan year in which the
change is first effective or the due date of
the employer’s tax return for the tax year
that includes the date the change is first
effective.
SECTION 3. QUESTIONS AND
ANSWERS
GENERAL RULES
Q–1. How does theWindsordecision
affect the application of the Federal tax
rules to qualified retirement plans?
A–1. In theWindsordecision, the Su-
preme Court held that section 3 of DOMA
(which applied for purposes of determin-
ing an individual’s marital status under
Federal law) is unconstitutional. In the
absence of section 3 of DOMA, any re-
tirement plan qualification rule that ap-
plies because a participant is married must
be applied with respect to a participant
who is married to an individual of the
same sex. For example, a participant in a
plan subject to the rules of section
401(a)(11) who is married to a same-sex
spouse cannot waive a QJSA without ob-
taining spousal consent pursuant to sec-
tion 417.
Q–2. As of what date are qualified retire-
ment plans required to be operated in a
manner that reflects the outcome ofWindsor
and the guidance in Rev. Rul. 2013–17?
A–2. Qualified retirement plan opera-
tions must reflect the outcome ofWindsor
as of June 26, 2013. A retirement plan will
not be treated as failing to meet the re-
quirements of section 401(a) merely be-
cause it did not recognize the same-sex
spouse of a participant as a spouse before
June 26, 2013. For Federal tax purposes,
effective as of September 16, 2013, Rev.
Rul. 2013–17 (i) adopts a general rule
recognizing a marriage of same-sex indi-
viduals that is validly entered into in a
state whose laws authorize the marriage of
two individuals of the same sex, even if
the individuals are domiciled in a state
that does not recognize the validity of
same-sex marriages, and (ii) provides that
individuals (whether part of an opposite-
sex or same-sex couple) who have entered
into a registered domestic partnership,
civil union, or other similar formal rela-
tionship recognized under state law that is
not denominated as a marriage under the
laws of that state are not treated as mar-
ried. Accordingly, a retirement plan will
not be treated as failing to meet the re-
quirements of section 401(a) merely be-
cause the plan, prior to September 16,
2013, recognized the same-sex spouse of a
participant only if the participant was do-
miciled in a state that recognized same-
sex marriages. See Q&A– 8 for the dead-
line to adopt plan amendments pursuant to
this notice.
Q–3. May a qualified retirement plan
be amended to reflect the outcome of
Windsoras of a date earlier than June 26,
2013, and, if so, may the amendment re-
flect the outcome ofWindsorfor only
certain purposes?
A–3. A qualified retirement plan will not
lose its qualified status due to an amend-
ment to reflect the outcome ofWindsorfor
some or all purposes as of a date prior to
June 26, 2013, if the amendment complies
with applicable qualification requirements
(such as section 401(a)(4)). Recognizing
same-sex spouses for all purposes under a
plan prior to June 26, 2013, however, may
trigger requirements that are difficult to
implement retroactively (such as the own-
ership attribution rules) and may create
unintended consequences. Provided that
applicable qualification requirements are
otherwise satisfied, a plan sponsor’s
choice of a date before June 26, 2013, and
the purposes for which the plan amend-
ments recognize same-sex spouses before
June 26, 2013, do not affect the qualified
status of the plan. For example, for the
period before June 26, 2013, a plan spon-
sor may choose to amend its plan to reflect
the outcome ofWindsorsolely with re-
spect to the QJSA and QPSA require-
ments of section 401(a)(11) and, for those
purposes, solely with respect to partici-
pants with annuity starting dates or dates
of death on or after a specified date.
April 21, 2014Bulletin No. 2014 –17
980

PLAN AMENDMENTS
Q– 4. For purposes of satisfying the
Federal tax rules relating to qualified re-
tirement plans, must a qualified retirement
plan be amended to reflect the outcome of
Windsorand the guidance in Rev. Rul.
2013–17 and this notice?
A– 4. Whether a plan must be amended
to reflect the outcome ofWindsorand the
guidance in Rev. Rul. 2013–17 and this
notice depends on the terms of the specific
plan, as described in Q&A–5 through
Q&A–7 of this notice.
Q–5. Must a plan sponsor amend a
qualified retirement plan if its terms with
respect to the requirements of section
401(a) define a marital relationship by ref-
erence to section 3 of DOMA or if the
plan’s terms are otherwise inconsistent
with the outcome ofWindsoror the guid-
ance in Rev. Rul. 2013–17 or this notice?
A–5. If a plan’s terms with respect to
the requirements of section 401(a) define
a marital relationship by reference to sec-
tion 3 of DOMA or are otherwise incon-
sistent with the outcome ofWindsoror the
guidance in Rev. Rul. 2013–17 or this
notice, then an amendment to the plan that
reflects the outcome ofWindsorand the
guidance in Rev. Rul. 2013–17 and this
notice is required by the date specified in
Q&A– 8 of this notice.
Q– 6. If a qualified retirement plan’s
terms are not inconsistent with the out-
come ofWindsorand the guidance in Rev.
Rul. 2013–17 and this notice (for exam-
ple, the term “spouse,” “legally married
spouse” or “spouse under Federal law” is
used in the plan without any distinction
between a same-sex spouse and an
opposite-sex spouse), must the plan be
amended to reflect the change in meaning
or interpretation of those terms to include
same-sex spouses?
A– 6. If a plan’s terms are not incon-
sistent with the outcome ofWindsorand
the guidance in Rev. Rul. 2013–17 and
this notice, an amendment generally
would not be required. If no amendment
to such a plan is made, the plan nonethe-
less must be operated in accordance with
the provisions of Q&A–2 of this notice.
(Though not required, a clarifying amend-
ment may be useful for purposes of plan
administration.)
Q–7. If a plan sponsor chooses to apply
the rules with respect to married partici-
pants in qualified retirement plans in a
manner that reflects the outcome ofWind-
sorfor a period before June 26, 2013, is
an amendment to the plan required?
A–7. Yes, if a plan sponsor chooses to
apply the rules in a manner that reflects
the outcome ofWindsorfor a period be-
fore June 26, 2013, an amendment to the
plan that specifies the date as of which,
and the purposes for which, the rules are
applied in this manner is required. The
deadline for this amendment is the date
specified in Q&A– 8 of this notice.
Q– 8. What is the deadline to adopt a
plan amendment pursuant to this notice?
A– 8. The deadline to adopt a plan
amendment pursuant to this notice is the
later of (i) the otherwise applicable dead-
line under section 5.05 of Rev. Proc.
2007– 44, or its successor, or (ii) Decem-
ber 31, 2014. Moreover, in the case of a
governmental plan, any amendment made
pursuant to this notice need not be ad-
opted before the close of the first regular
legislative session of the legislative body
with the authority to amend the plan that
ends after December 31, 2014.
Q–9. Is an amendment to a single-
employer defined benefit plan that imple-
ments the outcome ofWindsorand the
guidance in Rev. Rul. 2013–17 and this
notice subject to the requirements of sec-
tion 436(c)?
A–9. In general, under section 436(c), an
amendment to a single-employer defined
benefit plan that increases the liabilities of
the plan cannot take effect unless the plan’s
adjusted funding target attainment percent-
age is sufficient or the employer makes the
additional contribution specified under sec-
tion 436(c)(2). However, this notice pro-
vides a special rule pursuant to § 1.436 –
1(c)(4)(iii). Under this special rule, a plan
amendment that is described in Q&A–5 of
this notice and that takes effect on June 26,
2013, is not treated as an amendment to
which section 436(c) applies. In contrast, a
plan amendment that is described in
Q&A–7 of this notice is an amendment to
which section 436(c) applies.
SECTION 4. EFFECT ON OTHER
DOCUMENTS
Rev. Rul. 2013–17 is amplified by pro-
viding further guidance on the effect of
theWindsordecision with respect to qual-
ified retirement plans under section
401(a).
SECTION 5. DRAFTING
INFORMATION
The principal authors of this notice are
Angelique Carrington of the Employee
Plans, Tax Exempt and Government En-
tities Division, and Jeremy Lamb of the
Office of Division Counsel/Associate
Chief Counsel (Tax Exempt and Govern-
ment Entities). Forfurther information re-
garding this notice, contact Ms. Carrington
atRetirementPlanQuestions@irs.govor
Mr. Lamb at (202) 317-6700 (not a toll-
free number).
Nonconventional Source
Fuel Credit, 2013 Section
45K Inflation Adjustment
Factor and Section 45K
Reference Price
Notice 2014 –25
SECTION 1. PURPOSE
This notice publishes the nonconven-
tional source fuel credit, inflation adjust-
ment factor, and reference price under
§ 45K of the Internal Revenue Code for
coke or coke gas (other than from petro-
leum based products) for calendar year
2013. The inflation adjustment factor is
used to determine the credit allowable un-
der § 45K for coke or coke gas. The
calendar year 2013 inflation-adjusted
credit applies to the sales of barrel-of-oil
equivalent of coke or coke gas sold by a
taxpayer to an unrelated person during the
2013 calendar year, the domestic produc-
tion of which is attributable to the tax-
payer.
SECTION 2. BACKGROUND
Section 45K(a) provides for a credit for
producing fuel from a nonconventional
source, measured in barrel-of-oil equiva-
lent of qualified fuel, the production of
which is attributable to the taxpayer and is
sold by the taxpayer to an unrelated per-
son during the taxable year. For calendar
year 2013, the credit is available only for
coke or coke gas. The credit amount for
coke or coke gas is equal to the product of
Bulletin No. 2014 –17April 21, 2014
981

$3.00 and the appropriate inflation adjust-
ment factor.
Section 45K(d)(1) provides that the
credit applies only to sales of qualified
fuels the production of which is within the
United States (within the meaning of
§ 638(1)) or a possession of the United
States (within the meaning of § 638(2)).
Section 45K(d)(2)(A) requires that the
Secretary, not later than April 1 of each
calendar year, determine and publish in
the Federal Register the inflation adjust-
ment factor and the reference price for the
preceding calendar year.
Section 45K(d)(2)(B) defines “inflation
adjustment factor” for a calendar year as a
fraction the numerator of which is the
GNP implicit price deflator for the calen-
dar year and the denominator of which is
the GNP implicit price deflator for calen-
dar year 1979. The term “GNP implicit
price deflator” means the first revision of
the implicit price deflator for the gross
national product as computed and pub-
lished by the Department of Commerce.
Section 45K(d)(2)(C) defines “refer-
ence price” to mean with respect to a
calendar year the Secretary’s estimate of
the annual average wellhead price per bar-
rel for all domestic crude oil the price of
which is not subject to regulation by the
United States.
Section 45K(d)(5) provides that the
term “barrel-of-oil equivalent” with re-
spect to any fuel generally means that
amount of the fuel that has a Btu content
of 5.8 million.
Section 45K(g)(1) provides that in the
case of a facility for producing coke or
coke gas (other than from petroleum
based products), which was placed in ser-
vice before January 1, 1993, or after June
30, 1998, and before January 1, 2010,
§ 45K(g) shall apply with respect to coke
or coke gas produced in such facility and
sold during the period beginning on the
later of January 1, 2006, or the date that
such facility is placed in service, and end-
ing on the date which is 4 years after the
date such period began.
Section 45K(g)(2)(A) provides that the
amount of coke or coke gas sold during
any taxable year that may be taken into
account to compute the credit under § 45K
with respect to any facility shall not ex-
ceed an average barrel-of-oil equivalent of
4,000 barrels per day.
Section 45K(g)(2)(B) provides that in
determining the amount of credit allow-
able to coke or coke gas sold after 2005,
the reference to the GNP implicit price
deflator for calendar year 1979 is replaced
with the GNP implicit price deflator for
calendar year 2004 for purposes of
§ 45K(d)(2)(B). Accordingly, for pur-
poses of § 45K(g), the inflation adjust-
ment factor for a calendar year is a frac-
tion the numerator of which is the GNP
implicit price deflator for the calendar
year and the denominator of which is the
GNP implicit price deflator for calendar
year 2004.
Section 45K(g)(2)(D) provides that the
phaseout of the credit under § 45K(b)(1)
does not apply in the case of facilities
producing coke or coke gas.
SECTION 3. REFERENCE PRICE
The reference price for calendar year
2013 is $96.13.
SECTION 4. INFLATION
ADJUSTMENT AND CREDIT
AMOUNT
The inflation adjustment factor for cal-
endar year 2013 is 1.1975. The noncon-
ventional source fuel credit is $3.59 per
barrel-of-oil equivalent ($3.00 x 1.1975).
SECTION 5. DRAFTING
INFORMATION
The principal author of this notice is
Philip Tiegerman of the Office of Associate
Chief Counsel (Passthroughs & Special In-
dustries). For further information regarding
this notice contact Mr. Tiegerman on (202)
317-6853 (not a toll-free number).
April 21, 2014Bulletin No. 2014 –17
982

Part IV. Items of General Interest
Announcement 2014 –16
Issuance of Opinion and
Advisory Letters for
Pre-approved Defined
Contribution Plans for the
Second Six-Year Cycle,
Deadline for Employer
Adoption, and Opening of
Determination Letter
Program for Pre-approved
Plan Adopters
The Service will soon issue opinion
and advisory letters for pre-approved (i.e.,
master and prototype (M&P) and volume
submitter (VS)) defined contribution plans
that were restated for changes in plan
qualification requirements listed in Notice
2010 –90, 2010 –52 I.R.B. 909 (2010 Cu-
mulative List) and that were filed with the
Service during their second submission
period under the remedial amendment cy-
cle under Rev. Proc. 2007– 44, 2007–2
C.B. 54. The Service expects to issue the
letters on March 31, 2014, or, in some
cases, as soon as possible thereafter. Em-
ployers using these pre-approved plan
documents to restate a plan for the plan
qualification requirements on the 2010
Cumulative List will be required to adopt
the plan document by April 30, 2016.
Starting May 1, 2014 and ending April 30,
2016, the Service will accept applications
for individual determination letters from
employers under the second six-year re-
medial amendment cycle for defined con-
tribution pre-approved plans.
Background
Revenue Procedure 2011– 49, 2011– 44
I.R.B. 608, and Rev. Proc. 2007– 44 (both as
amended) describe a staggered remedial
amendment system for plans that are quali-
fied under § 401(a) of the Internal Revenue
Code, with five-year amendment/approval
cycles for individually designed plans and
six-year cycles for pre-approved plans. The
submission period for the second six-year
cycle for pre-approved defined contribution
plans was February 1, 2011, through Janu-
ary 31, 2012, which was extended to April
2, 2012, by Announcement 2012–3, 2012– 4
I.R.B. 335. Revenue Procedures 2011– 49
and 2007– 44 require pre-approved sponsors
and practitioners to restate their pre-
approved defined contribution plans for the
qualification requirements included on the
2010 Cumulative List and apply for new
opinion or advisory letters during this sub-
mission period.
Section 16.03 of Rev. Proc. 2007– 44
provides that when the review process for
a cycle of pre-approved plans has neared
completion, the Service will publish an
announcement providing the date by
which adopting employers must adopt the
newly approved plans. This date is in-
tended to give adopting employers a win-
dow of approximately two years in which
to adopt plans, and if necessary, to apply
for an individual determination letter.
Deadline for Employer Adoption of Pre-
approved Defined Contribution M&P
and VS Plans
The end of a pre-approved defined con-
tribution plan’s remedial amendment cy-
cle with respect to the changes in plan
qualification requirements on the 2010
Cumulative List is April 30, 2016. An
adopting employer whose defined contri-
bution plan is eligible for the six-year
remedial amendment cycle under section
17 of Rev. Proc. 2007– 44 and who
adopts, by April 30 2016, an M&P or VS
defined contribution plan that was ap-
proved based on the 2010 Cumulative
List, will be considered to have adopted
the plan within the employer’s six-year
remedial amendment cycle.
Opening of Individual Determination
Letter Program for Pre-approved
Defined Contribution Plans
An adopting employer of an M&P plan
(whether standardized or nonstandard-
ized) may not apply for a determination
letter for the plan on Form 5307. An
adopting employer of a VS plan may ap-
ply for a determination letter for the plan
on Form 5307 only if the employer has
modified the terms of the approved plan
and the modifications are not so extensive
as to cause the plan to be treated as an
individually designed plan. If an adopting
employer of a VS plan has made limited
modifications to the pre-approved defined
contribution specimen plan that received a
letter based on the 2010 Cumulative List
for the second six year cycle, the em-
ployer may apply for an individual deter-
mination letter on Form 5307 beginning
May 1, 2014 and ending April 30, 2016.
Additional information regarding determi-
nation letter applications for pre-approved
plans, including requirements for applica-
tions filed on Form 5300 and 5307, may
be found in sections 8 and 9 of Rev. Proc.
2014 – 6, 2014 –1 I.R.B. 198.
Announcement 2014 –18
Net Investment Income Tax;
Correction
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final regulations; correction.
SUMMARY: This document contains
corrections to final regulations (TD 9644)
that were published in theFederal Reg-
isteron Monday, December 2, 2013 (78
FR 72394). The final regulations provide
guidance on the general application of the
Net Investment Income Tax and the com-
putation of Net Investment Income.
DATES: This correction is effective April
1, 2014 and applicable December 2, 2013.
FOR FURTHER INFORMATION
CONTACT: Adrienne M. Mikolashek, at
(202) 317-6852 (not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9644) that are
the subject of this correction is under section
1411 of the Internal Revenue Code.
Need for Correction
As published, the final regulations (TD
9644) contain errors that may prove to be
misleading and are in need of clarification.
Bulletin No. 2014 –17April 21, 2014
983

Correction of Publication
Accordingly, the final regulations (TD
9644), that are the subject of FR Doc.
2013–28410, are corrected as follows:
1. On page 72399, first column, in the
preamble, ninth line of the first full para-
graph, the language “provides that the sec-
tion 1411 is applied” is corrected to read
“provides that section 1411 is applied”.
2. On page 72405, second column, in
the preamble, twelfth line from the top of
the page, the language “1411(c)(1)(A)(i).
See part 5.b.ii.a of this” is corrected to
read “1411(c)(1)(A)(i). See part 5.b.ii.a.
of this”.
3. On page 72405, second column, in
the preamble, fifteenth line from the top of
the page, the language “purpose of section
1411” is corrected to read “purposes of
section 1411”.
4. On page 72406, first column, in the
preamble, sixteenth line from the top of
the page, the language “1411(c)(1)(a)(iii)”
is corrected to read “1411(c)(1)(A)(iii)”.
5. On page 72406, third column, in the
preamble, fourth line from the bottom of
the page, the language “Described in Sec-
tion 1411(C)(1)(b)” is corrected to read
“Described in Section 1411(c)(1)(B)”.
6. On page 72407, first column, in the
preamble, fifteenth line from the bottom of
the page, the language “trades or business,
rents, and royalties,” is corrected to read
“trades or businesses, rents, and royalties”.
7. On page 72409, first column, in the
preamble, twelfth line of the first full para-
graph, the language “reasonable methods
may lead to” is corrected to read “reason-
able methods may lead”.
8. On page 72411, second column, in the
preamble, twentieth line of the first full
paragraph, the language “considered passive
activity. However,” is corrected to read
“considered a passive activity. However”.
9. On page 72412, second column, in
the preamble, seventh and the eighth lines
of the first full paragraph, the language
“participates in rental real estate activities
for more than 500 hours per” is corrected
to read “participates in a rental real estate
activity for more than 500 hours per”.
10. On page 72412, second column, in
the preamble, thirteenth and fourteenth
lines of the second full paragraph, the
language “taxpayer has participated in
rental real estate activities for more than
500 hours” is corrected to read “taxpayer
has participated in a rental real estate ac-
tivity for more than 500 hours”.
11. On page 72415, first column, in the
preamble, ninth line from the top of the
page, the language “469(e)(1)(A) by
§ 1.469 –2T(f)(10). In the” is corrected to
read “469(e)(1)(A) by § 1.469 –2(f)(10). In
the”.
12. On page 72415, first column, in the
preamble, eighteenth line from the bottom
of the page, the language “covered by
§ 1.469 –2T(f)(10) and” is corrected to
read “covered by § 1.469 –2(f)(10) and”.
13. On page 72420, second column, in
the preamble, third line of the first full
paragraph, the language “election under
§ 1.1411–10(g) election” is corrected to
read “election under § 1.1411–10(g)”.
Martin V. Franks,
Chief, Publications and
Regulations Branch
Legal Processing Division Associate Chief
Counsel (Procedure and Administration)
(Filed by the Office of the Federal Register on March 31,
2014, 8:45 a.m., and published in the issue of the Federal
Register for April 1, 2014, 79 F.R. 18161)
Announcement 2014 –19
Net Investment Income Tax;
Correction
AGENCY:Internal Revenue Service (IRS),
Treasury.
ACTION: Correcting amendment.
SUMMARY: This document contains
corrections to final regulations (TD 9644)
that were published in theFederal Reg-
isteron Monday, December 2, 2013 (78
FR 72394). The final regulations provide
guidance on the general application of the
Net Investment Income Tax and the com-
putation of Net Investment Income.
DATES: This correction is effective April
1, 2014 and applicable December 2, 2013.
FOR FURTHER INFORMATION
CONTACT: Adrienne M. Mikolashek, at
(202) 317-6852 (not a toll free number).
SUPPLEMENTARY INFORMATION:
Background
The final regulations (TD 9644) that
are the subject of this correction is under
section 1411 of the Internal Revenue
Code.
Need for Correction
As published, the final regulations (TD
9644) contain errors that may prove to be
misleading and are in need of clarification.
*****
Correction of Publication
Accordingly, 26 CFR part 1 is cor-
rected by making the following correcting
amendments:
PART 1— INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805***
Par. 2. Section 1.469 –11 is amended
by revising the first sentence of paragraph
(b)(3)(iv)(C)(1) and the last sentence of
paragraph (b)(3)(iv)(C)(3)Example 4.to
read as follows:
§ 1.469–11 Effective date and transition
rules.
*****
(b)***
(3)***
(iv)***
(C)***(1)***Anindividual,
estate, or trust also may regroup activities,
in the manner described in paragraph
(b)(3)(iv)(A) of this section, on an
amended return only if the changes re-
ported on such amended return cause the
taxpayer to meet the Eligibility Criteria
for the first time beginning in the taxable
year for which the amended return is ap-
plicable and that the taxable year is not
closed by the period of limitations on as-
sessments under section 6501.***
*****
(3)***
Example 4.***Third, Y may file an original or
an amended return to regroup in a manner different
from groupings in effect prior to Year 1 and different
from the Year 1 groupings (for example, Y could
choose to group Activity C and D into a single
April 21, 2014Bulletin No. 2014 –17
984

activity, thus causing Y to have two groups; Group
A–B and Group C–D).
*****
Par. 3. Section 1.1411– 0 is amended
by revising the entries in the table of con-
tents for § 1.1411–3 (c)(2)(ii) and (iii) to
read as follows:
§ 1.1411–0 Table of contents of
provisions applicable to section 1411.
*****
§ 1.1411–3 Application to Estates and
Trusts.
*****
(c)***
(2)***
(ii) Step two.
(iii) Step three.
*****
Par. 4. Section 1.1411–2 is amended by
revising the first sentence of paragraph
(b)(2) to read as follows:
§ 1.1411–2 Application to individuals.
*****
(b)***
(2)Example. During Year 1 (a year in which
section 1411 is in effect), A, an unmarried United
States citizen, has modified adjusted gross income
(as defined in paragraph (c) of this section) of
$190,000, which includes $50,000 of net investment
income.***
*****
Par. 5. Section 1.1411–3 is amended by
revising the second sentence of paragraph
(c)(3)(ii)(A) and the first sentence of para-
graph (c)(3)(iii)(B) to read as follows:
§ 1.1411–3 Application to estates and
trusts.
*****
(c)***
(3)***
(ii)***(A)***Theundistributed
net investment income for the S portion is
$27,600 and is determined as follows:
*****
(iii)***
(B) The adjusted gross income for the
ESBT is $40,000 and is determined
as follows:***
*****
Par. 6. Section 1.1411– 4 is amended as
follows:
1. The first sentence of paragraph
(d)(4)(i)(C)Example 2. (i) is revised.
2. The language “deduction” in the last
sentence of paragraph (f)(2)(v)Example
1. (iv) is removed and “deductions” is
added in its place.
3. The language “A” in the third sen-
tence of paragraph (f)(2)(v) Example 2.
(iii) is removed and “A’s” is added in its
place.
4. Paragraph (f)(3)(iii) is revised.
5. The language “§ 1.171–2T(a)(4)(i)(C)”
in paragraph (f)(3)(vii) is removed and
“§ 1.171–2(a)(4)(i)(C)” is added in its place.
6. The second sentence of paragraph
(f)(4)(ii) Example 1. (iii) is revised.
7. The language “one or more” in para-
graph (g)(7)(i) introductory text is re-
moved and “a” is added in its place.
8. The language “activities” in para-
graph (g)(7)(i) introductory text is re-
moved and “activity” is added in its place.
9. Paragraph (h)(2) introductory text is
revised.
10. The language “.2” in paragraph
(h)(5) Example 1. (ii) is removed and
added in its place “0.2”.
The revisions read as follows:
§ 1.1411–4 Definition of net investment
income.
*****
(d)***
(4)***
(i)***
(C)***
Example 2.***(i)PRS, a partnership for
Federal income tax purposes, operates an automobile
dealership.***
*****
(f)***
(3)***
(iii)Taxes described in section
164(a)(3). State, local, and foreign in-
come, war profits, and excess profit taxes
described in section 164(a)(3) that are al-
locable to net investment income pursuant
to paragraph (g)(1) of this section. Except
to the extent specifically expected from
section 275(a)(4), foreign income, war
profits, and excess profit taxes are not
allowed as deductions under section
164(a)(3) in determining net investment
income if the taxpayer claims the benefit
of the foreign tax credit under section 901
with respect to the same taxable year. For
rules applicable to refunds of taxes de-
scribed in this paragraph, see paragraph
(g)(2) of this section.
*****
(4)***
(ii)***
Example 1.***
(iii)***Pursuant to paragraph (d) of
this section, A takes into account the
$60,000 at ordinary loss from PRS and the
$50,000 of long term capital gain in the
computation of A’s net gain.***
*****
(h)***
(2)Applicable portion of a net operating
loss. In any taxable year beginning after
December 31, 2012, in which a taxpayer
incurs a net operating loss, the applicable
portion of such loss is the lesser of:
*****
Par. 7. Section 1.1411–5 is amended by
revising paragraph (b)(2)(i) and (b)(2)(iii)
to read as follows:
§ 1.1411–5 Trades or businesses to
which tax applies.
*****
(b)***
(2)***(i)Income and gain rechar-
acterization.To the extent that any in-
come or gain from a trade or business is
recharaterized as “not from a passive ac-
tivity” by reason of § 1.469 –2T(f)(2),
§ 1.469 –2(f)(5), or § 1.469 –2(f)(6), such
trade or business does not constitute a
passive activity within the meaning of
paragraph (b)(1)(ii) of this section solely
with respect to such recharaterized in-
come or gain.
*****
(iii)Exception for certain portfolio re-
characterizations.To the extent that any
income or gain from a trade or business is
recharacterized as “not from a passive ac-
tivity” and is further characterized as port-
folio income under § 1.469 –2 (f)(10) or
§ 1.469 –2(c)(2)(iii)(F), then such trade or
business constitutes a passive activity
within the meaning of paragraph (b)(1)(ii)
of this section solely with respect to such
recharacterized income or gain.
*****
Par. 8. Section 1.1411–10 is amended
as follows:
1. Revise paragraph (c)(5)(i)(B).
2. In paragraph (h)Example 2. (ii)(A),
revise the first sentence.
Bulletin No. 2014 –17April 21, 2014
985

The revisions read as follows:
§ 1.1411–10 Controlled foreign
corporations and passive foreign
investment companies.
*****
(c)***
(5)***
(i)***
(B) Decreasing the amount of invest-
ment income determined for chapter 1
purposes under section 163(d)(4)(B) by
the amount included in gross income for
chapter 1 purposes under section 951(a) or
section 1293(a) that is attributable to a
CFC or QEF with respect to which an
election under paragraph (g) of this sec-
tion is not in effect; and
*****
(h)***
Example 2.***
(ii)***(A)In2016, A does not include the
$15,000 section 951(a)(1)(A) income inclusion in A’s
net investment income under section 1411(c)(1)(A)(i)
and § 1.1411–1(a)(1)(i).***
*****
Martin V. Franks,
Chief, Publications and
Regulations Branch
Legal Processing Division Associate Chief
Counsel (Procedure and Administration)
(Filed by the Office of the Federal Register on March 31,
2014, 8:45 a.m., and published in the issue of the Federal
Register for April 1, 2014, 79 F.R. 18161)
April 21, 2014Bulletin No. 2014 –17
986

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified andclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
supersededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2014 –17April 21, 2014
i

Numerical Finding List
1
Bulletins 2014 –1 through 2014 –17
Announcements
2014-1, 2014-2 I.R.B.393
2014-2, 2014-4 I.R.B.448
2014-4, 2014-7 I.R.B.523
2014-05, 2014-6 I.R.B.507
2014-06, 2014-6 I.R.B.508
2014-07, 2014-6 I.R.B.508
2014-08, 2014-6 I.R.B.508
2014-09, 2014-6 I.R.B.508
2014-10, 2014-6 I.R.B.508
2014-11, 2014-6 I.R.B.508
2014-12, 2014-6 I.R.B.509
2014-13, 2014-10 I.R.B.620
2014-14, 2014-16 I.R.B.948
2014-15, 2014-16 I.R.B.973
2014-16, 2014-17 I.R.B.983
2014-18, 2014-17 I.R.B.983
2014-19, 2014-17 I.R.B.984
Notices
2014-1, 2014-2 I.R.B.270
2014-2, 2014-3 I.R.B.407
2014-3, 2014-3 I.R.B.408
2014-4, 2014-2 I.R.B.274
2014-5, 2014-2 I.R.B.276
2014-6, 2014-2 I.R.B.279
2014-7, 2014-4 I.R.B.445
2014-8, 2014-5 I.R.B.452
2014-9, 2014-5 I.R.B.455
2014-10, 2014-9 I.R.B.605
2014-11, 2014-13 I.R.B.880
2014-12, 2014-9 I.R.B.606
2014-13, 2014-10 I.R.B.616
2014-14, 2014-13 I.R.B.881
2014-15, 2014-12 I.R.B.661
2014-16, 2014-14 I.R.B.920
2014-17, 2014-13 I.R.B.881
2014-18, 2014-15 I.R.B.926
2014-19, 2014-17 I.R.B.979
2014-20, 2014-16 I.R.B.937
2014-21, 2014-16 I.R.B.938
2014-22, 2014-16 I.R.B.940
2014-23, 2014-16 I.R.B.942
2014-24, 2014-16 I.R.B.942
2014-25, 2014-17 I.R.B.981
Proposed Regulations
REG-154890-03, 2014-6 I.R.B.504
REG-159420-04, 2014-2 I.R.B.374
REG-144468-05, 2014-6 I.R.B.474
REG-163195-05, 2014-15 I.R.B.930
REG-119305-11, 2014-8 I.R.B.524
REG-140974-11, 2014-3 I.R.B.438
REG-121534-12, 2014-6 I.R.B.473
Proposed Regulations—Continued
REG-122706-12, 2014-11 I.R.B.647
REG-134361-12, 2014-13 I.R.B.895
REG-136984-12, 2014-2 I.R.B.378
REG-113350-13, 2014-3 I.R.B.440
REG-130967-13, 2014-13 I.R.B.884
REG-141036-13, 2014-7 I.R.B.516
REG-143172-13, 2014-2 I.R.B.383
REG-108641-14, 2014-15 I.R.B.928
Revenue Procedures
2014-1, 2014-1 I.R.B.1
2014-2, 2014-1 I.R.B.90
2014-3, 2014-1 I.R.B.111
2014-4, 2014-1 I.R.B.125
2014-5, 2014-1 I.R.B.169
2014-6, 2014-1 I.R.B.198
2014-7, 2014-1 I.R.B.238
2014-8, 2014-1 I.R.B.242
2014-9, 2014-2 I.R.B.281
2014-10, 2014-2 I.R.B.293
2014-11, 2014-3 I.R.B.411
2014-12, 2014-3 I.R.B.415
2014-13, 2014-3 I.R.B.419
2014-14, 2014-2 I.R.B.295
2014-15, 2014-5 I.R.B.456
2014-16, 2014-9 I.R.B.606
2014-17, 2014-12 I.R.B.661
2014-18, 2014-7 I.R.B.513
2014-19, 2014-10 I.R.B.619
2014-20, 2014-9 I.R.B.614
2014-21, 2014-11 I.R.B.641
2014-22, 2014-11 I.R.B.646
2014-23, 2014-12 I.R.B.685
2014-24, 2014-13 I.R.B.879
2014-25, 2014-15 I.R.B.927
2014-28, 2014-16 I.R.B.944
Revenue Rulings
2014-1, 2014-2 I.R.B.263
2014-2, 2014-2 I.R.B.255
2014-3, 2014-2 I.R.B.259
2014-4, 2014-5 I.R.B.449
2014-6, 2014-7 I.R.B.510
2014-8, 2014-11 I.R.B.624
2014-9, 2014-17 I.R.B.975
2014-10, 2014-14 I.R.B.906
2014-11, 2014-14 I.R.B.906
2014-12, 2014-15 I.R.B.923
Treasury Decisions
9649, 2014-2 I.R.B.265
9650, 2014-3 I.R.B.394
9651, 2014-4 I.R.B.441
9652, 2014-12 I.R.B.655
9653, 2014-6 I.R.B.460
9654, 2014-6 I.R.B.461
Treasury Decisions—Continued
9655, 2014-9 I.R.B.541
9656, 2014-11 I.R.B.626
9657, 2014-13 I.R.B.687
9658, 2014-13 I.R.B.748
9659, 2014-12 I.R.B.653
9660, 2014-13 I.R.B.842
9661, 2014-13 I.R.B.855
9662, 2014-16 I.R.B.933
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2013–27 through 2013–52 is in Internal Revenue Bulletin
2013–52, dated December 23, 2013.
April 21, 2014Bulletin No. 2014 –17
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2014 –1 through 2014 –17
Announcements:
2007-44
Modified by
Ann. 2014-4, 2014-7 I.R.B.523
2011-49
Modified by
Ann. 2014-4, 2014-7 I.R.B.523
Notices:
2003-37
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2006-109
Modified by
Notice 2014-4, 2014-2 I.R.B.274
2007-59
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2009-78
Superseded by
T.D. 9654 2014-6 I.R.B.461
2013-1
Superseded by
Notice 2014-22, 2014-16 I.R.B.940
2013-1
Modified by
Notice 2014-22, 2014-16 I.R.B.940
2013-13
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2013-17
Amplified by
Notice 2014-1, 2014-2 I.R.B.270
Revenue Procedures:
2003-49
Modified and superseded by
Rev. Proc. 2014-14, 2014-2 I.R.B.295
2004-42
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
2004-43
Obsoleted by
REG-163195-05 2014-15 I.R.B.930
Revenue Procedures—Continued:
2011-4
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2011-14
Modified by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2011-14
Clarified by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2011-14
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2011-44
Modified and Superseded by
Rev. Proc. 2014-11, 2014-3 I.R.B.411
2011-49
Modified by
Rev. Proc. 2014-6, 2014-1 I.R.B.198
2012-14
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2012-19
Modified by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2012-19
Superseded by
Rev. Proc. 2014-16, 2014-9 I.R.B.606
2012-20
Modified by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2012-20
Superseded by
Rev. Proc. 2014-17, 2014-12 I.R.B.661
2013-1
Superseded by
Rev. Proc. 2014-1, 2014-1 I.R.B.1
2013-2
Superseded by
Rev. Proc. 2014-2, 2014-1 I.R.B.90
2013-3
Superseded by
Rev. Proc. 2014-3, 2014-1 I.R.B.111
2013-4
Superseded by
Rev. Proc. 2014-4, 2014-1 I.R.B.125
Revenue Procedures—Continued:
2013-5
Superseded by
Rev. Proc. 2014-5, 2014-1 I.R.B.169
2013-6
Superseded by
Rev. Proc. 2014-6, 2014-1 I.R.B.198
2013-7
Superseded by
Rev. Proc. 2014-7, 2014-1 I.R.B.238
2013-8
Superseded by
Rev. Proc. 2014-8, 2014-1 I.R.B.242
2013-9
Superseded by
Rev. Proc. 2014-9, 2014-2 I.R.B.281
2013-10
Superseded by
Rev. Proc. 2014-10, 2014-2 I.R.B.293
2013-22
Modified by
Rev. Proc. 2014-28, 2014-16 I.R.B.944
2013-24
Obsoleted by
Rev. Proc. 2014-23, 2014-12 I.R.B.685
2013-27
Obsoleted by
Rev. Proc. 2014-23, 2014-12 I.R.B.685
2013-32
Superseded in part by
Rev. Proc. 2014-1, 2014-1 I.R.B.1, and
Rev. Proc. 2014-3, 2014-1 I.R.B.111
2014-1
Amplified by
Rev. Proc. 2014-18, 2014-7 I.R.B.513
2014-1 I.R.B. 111
Amplified by
Rev. Proc. 2014-24, 2014-13 I.R.B.879
2014-3
Amplified by
Rev. Proc. 2014-18, 2014-7 I.R.B.513
2014-3 I.R.B 111
Amplified by
Rev. Proc. 2014-24, 2014-13 I.R.B.879
2014-4
Modified by
Rev. Proc. 2014-19, 2014-10 I.R.B.619
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–27 through 2013–52 is in Internal Revenue Bulletin 2013–52, dated December 23,
2013.
Bulletin No. 2014 –17April 21, 2014
iii

Proposed Regulations:
209054-87
A portion withdrawn by
REG-113350-13 2014-3 I.R.B.440
Revenue Rulings:
2005-48 (2005-2 CB 259)
Obsoleted by
T.D. 9659 2014-12 I.R.B.653
2013-17
Amplified by
Notice 2014-19, 2014-17 I.R.B.979
2013-17
Amplified by
Notice 2014-25, 2014-17 I.R.B.981
Treasury Decision:
9644
Correction by
Ann. 2014-18, 2014-17 I.R.B.983
9644
Correction by
Ann. 2014-19, 2014-17 I.R.B.984
April 21, 2014Bulletin No. 2014 –17
iv

INDEX
Internal Revenue Bulletins 2014 –1 through
2014 –17
The abbreviation and number in parenthesis following the index
entry refer to the specific item; numbers in roman and italic type
following the parentheses refer to the Internal Revenue Bulletin in
which the item may be found and the page number on which it
appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
ADMINISTRATIVE
Consolidated returns; failure to p[roperly include subsidiary (RP 24)
13,879
Extension of time to file estate tax return to elect portability of a
deceased spousal unused exclusion amount under section
2010(c)(5)(A). (RP 18) 7,513
Method change procedures for dispositions of tangible deprecia-
ble property (RP 17) 12,661
Maximum Vehicle Values for which the special valuation rules of
regulations section 1.61–21(d) and (e) may be used (Notice 11)
13,880
Minimum essential coverage, information reporting (TD 9660)
13,842
Regulations:
26 CFR 1.6055–1 added. 26 CFR 1.6055–2 added. 26 CFR
1.6081– 8 amended. 26 CFR 301.6011–2 amended. 26
CFR 301.6721–1 amended. 26 CFR 1.6011– 8 amended.
26 CFR 301.6722–1 amended; minimum essential cover-
age, information reporting 13,842
Per Capita Payments from Proceeds of Settlements of Indian
Tribal Trust Cases (Notice 22) 16,940
Virtual Currency (Notice 21) 16,938
EMPLOYEE PLANS
Definition of a substantial risk of forfeiture (TD 9659) 12,653
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Excepted benefits (REG–143172–13) 2,383
Final rules to implement the 90-day waiting period limitation
(TD 9656) 11,626
EMPLOYEE PLANS—Cont.
Letter rulings:
And determination letters:
Areas which will not be issued from Associate Chief
Counsel and Division counsel (TE/GE) (RP 3) 1,111
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 1,281
And general information letters; procedures (RP 4) 1,125
User fees, request for letter rulings (RP 8) 1,242
Letter rulings and general information letters (RP 4) 1,125
Letter rulings or determination letters (RP 1) 1,1
Proposed rules to clarify length of reasonable and bona fide
employment-based orientation period, consistent with the 90-
day waiting period limitation (REG–122706 –12) 11,647
Qualification, determination letters (RP 6) 1,198
Qualified plans:
Application of the Windsor Decision and Rev. Rul. 2013–17
(Notice 19) 17,979
Discrimination (Notice 5) 2,276
Opinion letters (Ann 4) 7,523
Opinion letters (Ann 16) 17,983
Determination Letters (RP 19) 10,619
Qualified retirement plans covered compensation, permitted dis-
parity (RR 3) 2,259
Qualified retirement plans
Rollovers (RR 9) 17,975
Regulations:
26 CFR 54.9815–2708, amended; REG–122706 –12) 11,647
Removal of the Qualified Payment Card Agent Program (REG–
163195– 05) 15,930
Request for Information Regarding Provider Non-Discrimination
(REG–108641–14) 15,928
Rulings and determination letters, user fees (RP 8) 1,242
Technical advice memorandum or TAM (RP 2) 1,90
Technical advice procedures (RP 5) 1,169
Full funding limitations, weighted average interest rates, segment
rates for:
January 2014 (Notice 8) 5,452
Weighted average interest rates
Segment rates for February 2014 (Notice 13) 10,616
Segment rates for March 2014 (Notice 16) 14,920
EMPLOYMENT TAX
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Employment tax liability of agents authorized under section 3504
(TD 9649) 2,265
Employment tax obligations of a third party that enters into a
service agreement with an employer to take on the employer’s
employment tax responsibilities (TD 9662) 16,933
Regulations:
26 CFR 31–3504 –2, added; employment tax obligations of a
third party that enters into a service agreement with an
employer to take on the employer’s employment tax re-
sponsibilities (TD 9662) 16,933
Letter rulings or determination letters (RP 1) 1,1
Bulletin No. 2014 –17April 21, 2014
v

EMPLOYMENT TAX—Cont.
Regulations:
26 CFR 1.83–3 is revised; definition of a substantial risk of
forfeiture (TD 9659) 12,653
26 CFR 54.9815–2708, amended; REG–122706 –12) 11,647
26 CFR 54,9801–1, thru– 6, amended; 26 CFR 54.9802–1,
amended; 26 CFR 54.9815–2708, added; 26 CFR
54.9831–1, amended (TD 9656) 12,626
Technical Advice Memorandum (TAM) (RP 2) 1,90
Virtual Currency (Notice 21) 16,938
ESTATE TAX
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Extension of time to file estate tax return to elect portability of a
deceased spousal unused exclusion amount under section
2010(c)(5)(A) (RP 18) 7,513
Letter rulings or determination letters (RP 1) 1,1
Technical Advice Memorandum (TAM) (RP 2) 1,90
EXCISE TAX
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Final rules to implement the 90-day waiting period limitation
(TD 9656) 11,626
Information reporting by applicable large employers on health
insurance coverage offered under employer-sponsored plans
(TD 9661) 13,855
Regulations:
301.6056 –1, –2, added; Information reporting by applicable
large employers on health insurance coverage offered un-
der employer-sponsored plans (TD 9661) 13,855
Interim guidance regarding supporting organizations (Notice 4)
2,274
Letter rulings or determination letters (RP 1) 1,1
Notice for ACA Section 9010 Health Insurance Providers Fee
and expatriate plans (Notice 24) 16,942
Proposed rules to clarify length of reasonable and bona fide
employment-based orientation period, consistent with the 90-
day waiting period limitation (REG–122706 –12) 11,647
Regulations:
26 CFR 54.9815–2708, amended; REG–122706 –12) 11,647
26 CFR 54,9801–1, thru– 6, amended; 26 CFR 54.9802–1,
amended; 26 CFR 54.9815–2708, added; 26 CFR
54.9831–1, amended (TD 9656) 12,626
Technical Advice Memorandum (TAM) (RP 2) 1,90
EXEMPT ORGANIZATIONS
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Form 990 Revenue Procedure update to revoke Revenue Proce-
dure 79 – 6 (RP 22) 11,646
Interim guidance regarding supporting organizations (Notice 4)
2,274
EXEMPT ORGANIZATIONS—Cont.
Letter rulings:
And determination letters:
Areas which will not be issued from Associate Chief
Counsel and Division counsel (TE/GE) (RP 3) 1,111
Exemption application determination letter rulings under
sections 501 and 521 (RP 9) 1,281
And general information letters; procedures (RP 4) 1,125
User fees, request for letter rulings (RP 8) 1,242
Letter rulings (RP 10) 2,293; (RP 9) 2,281
Letter rulings or determination letters (RP 1) 1,1
Proposed procedures for charitable hospitals to correct and dis-
close failures to meet section 501(r) (Notice 3) 3,408
Reliance on proposed regulations for tax-exempt hospitals
(Notice 2) 3,407
Rulings and determination letters, user fees (RP 8) 1,242
Technical Advice Memorandum (TAM) (RP 2) 1,90
Technical advice procedures (RP 5) 1,169
INCOME TAX
Adequate disclosure revenue procedure (RP 15) 5,456
Advance Pricing and Mutual Agreement Program (Ann 14) 16,
948
Allocation of section 47 credits by a partnership to its partners
(RP 12) 3,415
Allocation of section 752 recourse liabilities among related par-
ties (REG–136984 –12) 2,378
Amount of the life insurance reserves taken into account under
§ 807 of the Internal Revenue Code for variable contracts (RR 7)
9,539
Areas in which rulings will not be issued; Associate Chief
Counsel (International) (RP 7) 1,238
Basis in assets of tax exempt trusts (REG–154890 – 03) 6,504
Bond premium carryforward (TD 9653) 6,460
Cafeteria plans, FSA reimbursements, and HSA contribution
limits for same-sex spouses (Notice 1) 2,270
2014 Census Count (Notice 12) 9,606
Contribution of built-in lost property to a partnership; mandatory
basis adjustments in the event of a substantial built-in loss or
substantial basis reduction; modification of basis allocation
rules (REG–144468 – 05) 6,474
Current refunding of Recovery Zone facility bonds (Notice 9) 5,
455
Declaratory judgement suits (Ann 5) 6,507; (Ann 6) 6,507;
(Ann 7) 6,508; (Ann 8) 6,508; (Ann 9) 6,508; (Ann 10) 6,
508; (Ann 12) 6,509
Definition of a substantial risk of forfeiture (TD 9659) 12,653
Definitions applicable to U.S. persons owning interests in passive
foreign investment companies (REG–113350 –13) 3,440
Depreciation deduction, limitations on certain automobiles (RP 21)
11,641
Determination of ownership in a passive foreign investment com-
pany; annual filing requirements for shareholders of passive for-
eign investment companies; filing requirements for constructive
owners in certain foreign corporations (REG–140974 –11) 3,438;
(TD 9650) 3,394
April 21, 2014Bulletin No. 2014 –17
vi

INCOME TAX—Cont.
Determining stock ownership for purposes of whether an entity is a
surrogate foreign corporation (TD 9654) 6,461; (REG–121534 –
12) 6,473
Discharge of indebtedness secured by real property (RP 20) 9,
614
Disciplinary actions involving attorneys, certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 13) 10,620
Domestic areas in which the Service will not issue letter rulings
or determination letters (RP 3) 1,111
Equity-linked instruments and dividend equivalents (Notice 14)
13,881
FATCA financial institution registration update (Ann 1) 2,393
Final FFI agreement for participating FFI and reporting Model 2
FFI (RP 13) 3,419
Foreign Earned Income Exclusion (RP 25) 15,927
2014 –2015 Guidance Priority List- Solicitation Notice (Notice
18) 15,926
Guidance regarding reinstatement following auto revocation of
tax-exempt status under section 6033(j) (RP 11) 3,411
Income tax treatment of per capita payments made from funds
held in trust by the Secretary of the Interior (Notice 17) 13,881
Information reporting by foreign financial institutions and with-
holding on payments to foreign financial institutions and other
foreign entities (REG–130967–13) 13,884
Regulation:
26 CFR 1.1471– 0, amended; 26 CFR 1.1471–1, amended; 26
CFR 1.147–2, amended; 26 CFR 1.1471–3, amended; 26
CFR 1.1471– 4, amended; 26 CFR 1.1471–5, amended; 26
CFR 1.1471– 6, amended; 26 CFR 1.1472–1, amended; 26
CFR 1.1473–1, amended; 26 CFR 1474 –1, amended; 26
CFR 1.1474 – 6, amended. (Reg–130967–13) 13,884
Information reporting by foreign financial institutions and with-
holding on payments to foreign financial institutions and other
foreign entities (TD 9657) 13,687
Regulations:
26 CFR 1.1471– 0, amended; 26 CFR 1.1471–1, amended; 26
CFR 1.147–2, amended; 26 CFR 1.1471–3, amended; 26
CFR 1.1471– 4, amended; 26 CFR 1.1471–5, amended; 26
CFR 1.1471– 6, amended; 26 CFR 1.1472–1, amended; 26
CFR 1.1473–1, amended; 26 CFR 1474 –1, amended; 26
CFR 1.1474 – 6, amended. (TD 9657) 13,687
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2014 (RR 1) 2,263
February 2014 (RR 6) 7,510
March 2014 (RR 8) 11,624
April 2014 (RR 12) 15,923
Intra-group gross receipts (REG–159420 – 04) 2,374
Insurance tax, insurance companies, interest rate tables (RR 4) 5,
449
Letter rulings or determination letters (RP 1) 1,1
Low-Income Housing Credit (Notice 15) 12,661
Maximum Vehicle Values for which the special valuation rules of
regulations section 1.61–21(d) and (e) may be used (Notice 11)
13,880
INCOME TAX—Cont.
Method change procedures for dispositions of tangible deprecia-
ble property (RP 17) 12,661
Minimum essential coverage, information reporting (TD 9660)
13,842
Regulations:
26 CFR 1.6055–1 added. 26 CFR 1.6055–2 added. 26 CFR
1.6081– 8 amended. 26 CFR 301.6011–2 amended. 26
CFR 301.6721–1 amended. 26 CFR 1.6011– 8 amended.
26 CFR 301.6722–1 amended. (TD 9660) 13,842
Net investment income tax; TD 9644 Correction (Ann 2014 –18)
17,983
Net investment income tax; TD 9644 Correction (Ann 2014 –19)
17, 984
Postponement of deadline for § 165(i) election for losses attrib-
utable to September 2013 major flooding in Colorado (Notice)
(Notice 20) 16,937
Principal residence, treatment of National Mortgage Settlement
payments (RR 2) 2,255
Qualified census tracts (RP 14) 2,295
Refundable Credit For Coverage Under a Qualified Health Plan,
Definition and Rules Relating to Applicable Taxpayer (Notice 23)
16,942
Regarding disguised sales, generally (REG–119305–11) 8,524
Regulations:
26 CFR 1.83–3 is revised; definition of a substantial risk of
forfeiture (TD 9659) 12,653
26 CFR 1.263A– 0, thru–3, amended; 1.471–3 amended;
sales-base royalties and vendor allowances (TD 9652) 12,
655
Removal of the Qualified Payment Card Agent Program (REG–
163195– 05) 15,930
Regulations:
26 CFR 301.6724 –1(c)(6), amended; 26 CFR 31.3406(g)–
1(f), 26 CFR 301.6724 –1(e)(1)(vi)(H), and 26 CFR
301.6724 –1(f)(5)(vii), removed;removal of the qualified
payment ard agent program (REG–163195– 05) 15,930
Revocations, exempt organization (Ann 11) 6,508
Sales-bases royalties and vendor allowances (TD 9652) 12,655
2013 Section 45K Inflation Adjustment Factor – Nonconven-
tional Fuel source Credit (Notice 25) 17,981
Shared responsibility for employers regarding health coverage
(TD 9655) 9,541
Shared responsibility payment for not maintaining minimum
essential coverage (REG–141036 –13) 7,516
Standard Industry Fare Level (SIFL) (RR 10) 14,906
Tangible property regulations method change guidance (RP 16)
9,606
Technical Advice Memorandum (TAM) (RP 2) 1,90
Transition relief for the tax credit for employee health insurance
expenses of certain small employers (Notice 6) 2,279
Transition relief under section 5000A for certain individuals
without minimum essential coverage (Notice 10) 9,605
Underpayment and overpayments, quarter beginning: April 1,
2014 (RR 11) 14,906
Virtual Currency (Notice 21) 16,938
Bulletin No. 2014 –17April 21, 2014
vii

INCOME TAX—Cont.
Withholding of tax on certain U.S. source income paid to foreign
persons and revision of information reporting and backup
withholding regulations (REG–134361–12) 13,895
Proposed Regulations:
26 CFR 1.871–14, amended; 26 CFR 1.1441–1, amended; 26
CFR 1.1441–3, amended; 26 CFR 1.1441–5, amended; 26
CFR 1.441– 6, amended; 26 CFR 1.1441.7, amended; 26
CFR 1.1461–1, amended; 26 CFR 1.1461–2, amended; 26
CFR 1.6041–1, amended; 26 CFR 1.6041– 4, amended; 26
CFR 1.6042–2, amended; 26 CFR 1.6042–3, amended; 26
CFR 1.6045–1, amended; 26 CFR 1.6049 – 4, amended; 26
CFR 1.6049 –5, amended; 26 CFR 31.3406(g)–1, amended;
26 CFR 31.3406(h)–2, amended; 26 CFR 301.6402–3,
amended; Withholding of tax on certain U.S. source income
paid to foreign persons and revision of information reporting
and backup withholding regulations (REG–134361–12) 13,
895
Withholding of tax on certain U.S. source income paid to foreign
persons and revision of information reporting and backup
withholding regulations (TD 9658) 13,748
Regulations:
26 CFR 1.871–14, amended; 26 CFR 1.1441–1, amended; 26
CFR 1.1441–3, amended; 26 CFR 1.1441–5, amended; 26
CFR 1.441– 6, amended; 26 CFR 1.1441.7, amended; 26
CFR 1.1461–1, amended; 26 CFR 1.1461–2, amended; 26
CFR 1.6041–1, amended; 26 CFR 1.6041– 4, amended; 26
CFR 1.6042–2, amended; 26 CFR 1.6042–3, amended; 26
CFR 1.6045–1, amended; 26 CFR 1.6049 – 4, amended; 26
CFR 1.6049 –5, amended; 26 CFR 31.3406(g)–1, amend-
ed; 26 CFR 31.3406(h)–2, amended; 26 CFR 301.6402–3,
amended; Withholding of tax on certain U.S. source in-
come paid to foreign persons and revision of information
reporting and backup withholding regulations (TD 9658)
13,748
SELF-EMPLOYMENT TAX
Virtual Currency (Notice 21) 16,938
SPECIAL ANNOUNCEMENT
Advance Pricing and Mutual Agreement Program (Ann 14) 16,
948
April 21, 2014Bulletin No. 2014 –17
viii

INTERNAL REVENUE BULLETIN
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