Internal Revenue Bulletin 2026-6 (PDF rendition): IRS Revenue Rulings

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HIGHLIGHTS
OF THIS ISSUE
Bulletin No. 2026–6
February 2, 2026
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
ADMINISTRATIVE
Announcement 2026-4, page 533.
This announcement contains a correction to Announcement
2000-80, 2000-40 I.R.B. 320-321, which contains an out-
dated phone number. This announcement corrects that
error. In the section labelled TOLL-FREE NUMBER FOR THE
APPEALS OFFICER (CUSTOMER SERVICE/OUTREACH) PRO-
GRAM, a customer service phone number is provided for
Appeals. That number is outdated and no longer in use. The
current phone number is (855) 865-3401.
EMPLOYEE PLANS
Notice 2026-12, page 496.
This notice sets forth updates on the corporate bond
monthly yield curve, the corresponding spot segment rates
for December 2025 used under § 417(e)(3)(D), the 24-month
average segment rates applicable for January 2026, and the
30-year Treasury rates, as reflected by the application of
§ 430(h)(2)(C)(iv).
Notice 2026-13, page 499.
This notice provides two safe harbor explanations that retire-
ment plans may use to satisfy the requirement under section
402(f) to provide certain information to recipients of eligible
rollover distributions. One safe harbor explanation describes
the rollover rules for distributions that are not from a desig-
nated Roth account, and the other safe harbor explanation
describes the rollover rules for distributions from a desig-
nated Roth account. The safe harbor explanations in the
notice modify the two safe harbor explanations provided in
Notice 2020-62 to reflect certain legislative changes related
to the SECURE 2.0 Act and improve readability and useful-
ness for recipients.
INCOME TAX
Notice 2026-11, page 491.
This notice announces that the Department of the Treasury
(Treasury Department) and the Internal Revenue Service (IRS)
intend to issue proposed regulations (forthcoming proposed
regulations) that would implement the additional first year
depreciation deduction under § 168(k) of the Internal Revenue
Code (Code), as amended by §§ 70301 and 70434(g) of Pub-
lic Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known
as the One, Big, Beautiful Bill Act (OBBBA), including proposed
regulations that would modify § 1.168(k)-2 to include appli-
cable qualified sound recording productions commencing in
taxable years ending after July 4, 2025. The Treasury Depart-
ment and IRS expect the forthcoming proposed regulations to
be consistent with the interim guidance provided in sections 3
through 5 of this notice.
Rev. Rul. 2026-3, page 485.
Federal rates; adjusted federal rates; adjusted federal long-
term rate, and the long-term tax exempt rate. For purposes of
sections 382, 1274, 1288, 7872 and other sections of the
Code, tables set forth the rates for February 2026.
Rev. Rul. 2026-4, page 487.
This revenue ruling concludes that, under section 149(c)(2)(C)
(ii), bonds issued by the Railroad Corporation, a public corpo-
ration of a State, to finance the construction, acquisition, and
improvement of certain property are not required to satisfy
the rules in sections 141 through 147 to qualify as tax-ex-
empt bonds under section 103(a). However, such bonds are
required to satisfy the rules in sections 148, 149, and 150 to
qualify as tax-exempt bonds under section 103(a).
Finding Lists begin on page ii.

TAX CONVENTIONS
Announcement 2026-3, page 518.
The competent authorities of the United States of America
and the Kingdom of Spain have entered into an arrange-
ment regarding the implementation of the arbitration pro-
cess provided for in paragraphs 5 and 6 of Article 26 of the
Convention between the Kingdom of Spain and the United
States of America for the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion with respect to Taxes on
Income.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and
enforce the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing offi-
cial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
February 2, 2026 Bulletin No. 2026–6

Part I
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7702, 7872.)
Rev. Rul. 2026-3
This revenue ruling provides vari-
ous prescribed rates for federal income
tax purposes for February 2026 (the
current month). Table 1 contains the
short-term, mid-term, and long-term
applicable federal rates (AFR) for the
current month for purposes of section
1274(d) of the Internal Revenue Code.
Table 2 contains the short-term, mid-
term, and long-term adjusted applica-
ble federal rates (adjusted AFR) for the
current month for purposes of section
1288(b). Table 3 sets forth the adjusted
federal long-term rate and the long-
term tax-exempt rate described in sec-
tion 382(f). Table 4 contains the appro-
priate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. How-
ever, under section 42(b)(2), the appli-
cable percentage for non-federally sub-
sidized new buildings placed in service
after July 30, 2008, shall not be less
than 9%. Finally, Table 5 contains the
federal rate for determining the present
value of an annuity, an interest for life
or for a term of years, or a remainder or
a reversionary interest for purposes of
section 7520.
REV. RUL. 2026-3 TABLE 1
Applicable Federal Rates (AFR) for February 2026
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR3.56%3.53%3.51%3.50%
110% AFR3.92%3.88%3.86%3.85%
120% AFR4.28%4.24%4.22%4.20%
130% AFR4.64%4.59%4.56%4.55%
Mid-term
AFR3.86%3.82%3.80%3.79%
110% AFR 4.24%4.20%4.18%4.16%
120% AFR4.63%4.58%4.55%4.54%
130% AFR5.03%4.97%4.94%4.92%
150% AFR5.81%5.73%5.69%5.66%
175% AFR6.80%6.69%6.63%6.60%
Long-term
AFR4.70%4.65%4.62%4.61%
110% AFR5.19%5.12%5.09%5.07%
120% AFR5.66%5.58%5.54%5.52%
130% AFR6.14%6.05%6.00%5.98%
REV. RUL. 2026-3 TABLE 2
Adjusted AFR for February 2026
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR2.70%2.68%2.67%2.67%
Mid-term adjusted AFR2.92%2.90%2.89%2.88%
Long-term adjusted AFR3.56%3.53%3.51%3.50%
Bulletin No. 2026–6 485 February 2, 2026

REV. RUL. 2026-3 TABLE 3
Rates Under Section 382 for February 2026
Adjusted federal long-term rate for the current month3.56%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted federal
long-term rates for the current month and the prior two months.)
3.56%
REV. RUL. 2026-3 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for February 2026
Note: Under section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after
July 30, 2008, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.99%
Appropriate percentage for the 30% present value low-income housing credit 3.43%
REV. RUL. 2026-3 TABLE 5
Rate Under Section 7520 for February 2026
Applicable federal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainder or reversionary interest
4.6%

Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.
Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and
Certain Built-In Losses
Following Ownership
Change
The adjusted applicable federal long-term rate
is set forth for the month of February 2026. See
Rev. Rul. 2026-3, page 485.
Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term rates are set
forth for the month of February 2026. See Rev. Rul.
2026-3, page 485.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.
Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.
Section 7520.—Valuation
Tables
The applicable federal mid-term rates are set
forth for the month of February 2026. See Rev. Rul.
2026-3, page 485.
Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
February 2026. See Rev. Rul. 2026-3, page 485.

February 2, 2026 486 Bulletin No. 2026–6

Bulletin No. 2026–6 487 February 2, 2026
Section 149.—Bonds
Must Be Registered To
Be Tax Exempt; Other
Requirements
(Also §§ 103, 141-148, 150)
Rev. Rul. 2026-4
ISSUE
Whether bonds issued by the Alaska
Railroad Corporation (Railroad Corpora-
tion) to finance the construction, acquisi-
tion, and improvement of certain property
are required to satisfy the rules in §§ 141
through 147 of the Internal Revenue Code
of 1986 (Code)
1
to qualify as tax-exempt
bonds under § 103(a)?
FACTS
The Federal government built a rail-
road in the State of Alaska (State) to
serve the transportation and development
needs of the State and later transferred the
assets of that railroad (State Railroad) to
the State pursuant to the Alaska Railroad
Transfer Act of 1982, Title VI of Public
Law 97-468, 96 Stat. 2543, 2556 (1983)
(Railroad Act). The Railroad Act contem-
plates that the State continue to operate the
railroad as a rail carrier after the transfer.
By statute, the State established the Rail-
road Corporation as a public corporation
to operate the State Railroad.
In connection with a project in the
State to extract, process, liquify, and trans-
port natural gas (LNG Project), the Rail-
road Corporation intends to issue bonds
to finance the construction, acquisition,
and improvement of facilities and other
property that are located within the State
and that are directly related to the LNG
Project. Such facilities and other property
are collectively referred to in this revenue
ruling as the “Property” and consist of:
• The facilities and other related project
infrastructure described in Section I,
Background and Proposal, of the
Order Granting Authorization Under
Section 3 of the Natural Gas Act
issued by the Federal Energy Regu-
latory Commission on May 21, 2020,
see 171 FERC ¶ 61,134 (2020);
• Railroad tracks and embankment, rail
sidings, rail extensions, rail terminal
yards, locomotives and rail cars to
transport materials and equipment
necessary for pipeline construction
and project operations, as well as
trains equipped to carry liquified nat-
ural gas (LNG);
• Port facilities to import pipe and trans-
port construction materials (including
supplies, fuel, and equipment), and
infrastructure equipped to store LNG,
to serve LNG carrier ships, to transfer
LNG to carrier ships, to transfer LNG
from carrier ships to LNG storage,
and to regasify LNG;
• Airports and helicopter pads;
• Roads, highways, causeways,
bridges;
• Power generation facilities;
• Communications infrastructure;
• Construction-related housing; and
• Other facilities directly related to the
LNG Project.
For the avoidance of doubt, a facility or
property does not qualify as Property
solely because it uses natural gas pro-
duced by the LNG Project.
L AW
Internal Revenue Code of 1986
Section 103(a) generally provides that,
except as otherwise provided in § 103(b),
gross income does not include interest on
any State or local bond. Section 103(b)
provides that § 103(a) does not apply to
any private activity bond that is not a qual-
ified bond (within the meaning of § 141),
to any arbitrage bond (within the mean-
ing of § 148), or to any bond that does
not meet the applicable requirements of
§ 149. Section 103(c)(1) defines a “State
or local bond” as an obligation of a State
or political subdivision thereof.
Section 141(a) defines the term “pri-
vate activity bond” as any bond issued as
part of an issue that meets the private busi-
ness use test of § 141(b)(1) and the private
security or payment test of § 141(b)(2) or
that meets the private loan financing test
of § 141(c).
Section 141(b)(1) provides that, except
as provided in that subsection, an issue
meets the private business use test if more
than 10 percent of the proceeds of the
issue are to be used for any private busi-
ness use. Under § 141(b)(6)(A), the term
“private business use” means use (directly
or indirectly) in a trade or business carried
on by any person other than a governmen-
tal unit, although use as a member of the
general public is not taken into account.
Under § 141(b)(6)(B), any activity carried
on by a person other than a natural person
is treated as a trade or business.
Section 141(c) provides that an issue
meets the private loan financing test if
the amount of the proceeds of the issue
that are to be used (directly or indirectly)
to make or finance loans (other than cer-
tain loans described in paragraph (c)(2))
to persons other than governmental units
exceeds the lesser of five percent of such
proceeds or $5,000,000.
Section 141(e) defines a “qualified
bond” as any private activity bond if such
bond is: an exempt facility bond as defined
in § 142, a qualified mortgage bond as
defined in § 143(a), a qualified veterans’
mortgage bond as defined in § 143(b), a
qualified small issue bond as defined in
§ 144(a), a qualified student loan bond as
defined in § 144(b), a qualified redevel-
opment bond as defined in § 144(c), or
a qualified 501(c)(3) bond as defined in
§ 145. A qualified bond must also meet
the requirements of § 146 relating to vol-
ume cap and certain other requirements in
§ 147.
Under § 148(a), the term “arbitrage
bond” means any bond issued as part of
an issue any portion of the proceeds of
which are reasonably expected at the
time of issuance to be used (or is inten-
tionally used after issuance) to acquire
higher yielding investments or to replace
funds that were used directly or indirectly
to acquire higher yielding investments.
Under § 148(b), “higher yielding invest-
ments” means investment property with
a yield that is materially higher than the
yield on the issue of which the bond is a
part.
1
Unless otherwise specified, all “Section” or “§” references are to sections of the Code.

February 2, 2026 488 Bulletin No. 2026–6
Section 149 generally enumerates cer-
tain additional requirements for a bond to
qualify as tax-exempt under § 103(a). Sec-
tion 149(b) generally provides that, sub-
ject to certain exceptions, § 103(a) does
not apply to any State or local bond if
such bond is federally guaranteed. For this
purpose, a bond is federally guaranteed if:
(A) the payment of principal or interest
with respect to such bond is guaranteed
(in whole or in part) by the United States
(or any agency or instrumentality thereof);
(B) such bond is issued as part of an issue
and five percent or more of the proceeds
of such issue is to be (i) used in making
loans the payment of principal or interest
with respect to which is to be guaranteed
(in whole or in part) by the United States
(or any agency or instrumentality thereof),
or (ii) invested (directly or indirectly) in
federally insured deposits or accounts; or
(C) the payment of principal or interest on
such bond is otherwise indirectly guaran-
teed (in whole or in part) by the United
States (or an agency or instrumentality
thereof).
Section 149(c)(1) provides that, except
as provided in paragraph (c)(2), no inter-
est on any bond shall be exempt from tax-
ation under the Code unless such interest
is exempt from taxation under the Code
without regard to any provision of law that
is not contained in the Code and that is not
contained in a revenue Act.
Section 149(c)(2)(A) provides that for
purposes of the Code, notwithstanding
any provision of §§ 141 through 150, any
bond the interest on which is exempt from
taxation under the Code by reason of any
provision of law (other than a provision of
the Code) that is in effect on January 6,
1983, shall be treated as a bond described
in § 103(a).
Section 149(c)(2)(B) provides that
paragraph (c)(2)(A) shall not apply to a
bond (not described in paragraph (c)(2)
(C)) issued after 1983 if the appropriate
requirements of §§ 141 through 150 (or
the corresponding provisions of prior law)
are not met with respect to such bond.
Section 149(c)(2)(C) provides that
bonds issued under or pursuant to three
specific statutory provisions are treated
as described in section 149(c)(2)(A). Sec-
tion 149(c)(2)(C)(ii) provides that a bond
is described in paragraph (c)(2)(C) (and
treated as described in paragraph (c)(2)
(A)) if such bond is issued pursuant to
§ 608(a)(6)(A) of the Railroad Act, as in
effect on October 22, 1986, the date of
the enactment of the Tax Reform Act of
1986, Public Law 99-514, 100 Stat. 2085
(1986).
Section 150 contains definitions and
special rules that are used for purposes of
applying the requirements of §§ 103 and
141 through 149.
The Railroad Act as in Effect on October
22, 1986
Section 602(4) of the Railroad Act, as
in effect on October 22, 1986,
2
states that
the transfer of the railroad and provision
for its operation by the State in the man-
ner contemplated by §§ 601 through 616
of the Railroad Act is made pursuant to
the Federal goal and ongoing program of
transferring appropriate activities to the
States.
Section 608(a)(1) of the Railroad Act
provides in part that, after the date of trans-
fer to the State pursuant to § 604 of the
Railroad Act, the “State-owned railroad”
shall be a rail carrier engaged in inter-
state and foreign commerce subject to the
jurisdiction of the Interstate Commerce
Commission under chapter 105 of subtitle
IV of title 49, United States Code, and all
other Acts applicable to rail carriers sub-
ject to that chapter. Section 603(14) of the
Railroad Act defines “State-owned rail-
road” as the authority, agency, corporation
or other entity which the State designates
or contracts with to own, operate or man-
age the rail properties of the railroad or, as
the context requires, the railroad owned,
operated, or managed by such authority,
agency, corporation, or other entity.
Section 608(a)(2) of the Railroad Act
provides in part that the transfer to the
State authorized by § 604 of the Railroad
Act and the conferral of jurisdiction to the
Interstate Commerce Commission pursu-
ant to § 608(a)(1) of the Railroad Act are
intended to confer upon the State-owned
railroad all business opportunities avail-
able to comparable railroads.
Section 608(a)(6)(A) of the Railroad
Act states:
After the date of transfer, continued
operation of the Alaska Railroad by a
public corporation, authority or other
agency of the State shall be deemed to
be an exercise of an essential govern-
mental function, and revenue derived
from such operation shall be deemed to
accrue to the State for the purposes of
section 115(a)(1) of the Internal Reve-
nue Code of 1954 (26 U.S.C. 115(a)(1).
Obligations issued by such entity shall
also be deemed obligations of the State
for the purposes of section 103(a)(1) of
the Internal Revenue Code of 1954 (26
U.S.C. 103(a)(1)), but not obligations
within the meaning of section 103(b)
(2) of the Internal Revenue Code of
1954 (26 U.S.C. 103(b)(2)).
Section 609(a) of the Railroad Act
provides that the State or State-owned
railroad may request the Secretary of the
Interior or the Secretary of Agriculture,
as appropriate under law, to expeditiously
approve an application for a right-of-way
in order that the State-owned railroad may
have access across federal lands for trans-
portation and related purposes.
Section 610(b) of the Railroad Act pro-
vides that, if the State discontinues use of
any land within the right-of-way (defined
as an area extending a certain distance on
both sides of the center line of any main
line or branch line of the railroad), the
State’s interest in such land shall revert
to the United States. For this purpose, the
State shall be considered to have discon-
tinued use when, among other circum-
stances, the State has made no use of the
land for a continuous period of eighteen
years for transportation, communication,
or transmission purposes.
Internal Revenue Code of 1954
Section 103(a)(1) of the Internal Rev-
enue Code of 1954 (1954 Code), as in
effect from the date of enactment of the
Railroad Act until the date of enactment
of the Tax Reform Act of 1986, provided
that gross income does not include interest
2
References to the Railroad Act in the balance of this notice are to the Railroad Act as in effect on October 22, 1986.

Bulletin No. 2026–6 489 February 2, 2026
on the obligations of a State, a Territory,
or possession of the United States, or any
political subdivision of any of the forego-
ing, or of the District of Columbia.
Section 103(b)(2) of the 1954 Code, as
in effect from the date of enactment of the
Railroad Act until the date of enactment
of the Tax Reform Act of 1986, defined
an “industrial development bond” as any
obligation (A) which is issued as part of
an issue all or a major portion of the pro-
ceeds of which are to be used directly or
indirectly in any trade or business carried
on by any person who is not an exempt
person, and (B) the payment of the princi-
pal or interest on which (under the terms
of such obligation or any underlying
arrangement) is, in whole or in major part,
(i) secured by any interest in property used
or to be used in a trade or business or in
payments in respect of such property, or
(ii) to be derived from payments in respect
of property, or borrowed money, used or
to be used in a trade or business.
Section 103 of the 1954 Code, as
in effect immediately prior to the date
of enactment of the Tax Reform Act of
1986, imposed additional requirements
on tax-exempt bonds, including rules in
§ 103(c) of the 1954 Code related to arbi-
trage bonds and rules in § 103(h) of the
1954 Code related to federally guaranteed
bonds.
Under the Tax Reform Act of 1986,
§§ 103 and 103A of the 1954 Code were
recodified into §§ 103 and 141 through
150 of the Code. Section 103(a)(1) of the
1954 Code was recodified into § 103(a)
of the Code. Section 103(b) of the 1954
Code (defining and governing industrial
development bonds) was recodified into
§§ 141 through 147 of the Code (defin-
ing and governing private activity bonds).
Section 103(c) of the 1954 Code (defin-
ing and governing arbitrage bonds) was
recodified into § 148 of the Code. Section
103(h) of the 1954 Code (defining and
governing federally guaranteed bonds)
was recodified into § 149(b) of the Code.
ANALYSIS
Under § 149(c)(1), except as provided
in § 149(c)(2)(A), a bond is not tax-ex-
empt unless the exemption is derived from
the Code without regard to any provision
of law that is not contained in the Code
and that is not contained in a revenue act
(Non-Code Provision). Under § 149(c)
(2)(A), a bond that is tax-exempt by rea-
son of a Non-Code Provision in effect
on January 6, 1983, is treated as a State
or local bond that is tax-exempt under §
103(a). Under § 149(c)(2)(B), the benefi-
cial treatment provided in § 149(c)(2)(A)
generally does not apply to a bond issued
after 1983, unless the bond is described in
§ 149(c)(2)(C). Bonds “issued pursuant to
section 608(a)(6)(A)” of the Railroad Act,
a Non-Code Provision enacted after Janu-
ary 6, 1983, are described in § 149(c)(2)
(C)(ii) and thus are treated as described in
§ 149(c)(2)(A). Consequently, § 149(c)(2)
(C)(ii) makes clear that even though the
Railroad Act was enacted after January 6,
1983, bonds issued pursuant to § 608(a)
(6)(A) of the Railroad Act are nonetheless
covered by § 149(c)(2)(A) and not subject
to the issue date limitation in § 149(c)(2)
(B).
The phrase “pursuant to” in § 149(c)(2)
(C)(ii) signals that the content of § 608(a)
(6)(A) of the Railroad Act circumscribes
the nature of bonds to which § 149(c)(2)
(C)(ii) applies. Under § 608(a)(6)(A) of
the Railroad Act, bonds issued by “a pub-
lic corporation, authority or other agency
of the State” that is engaged in “the contin-
ued operation of the [State Railroad]” are
“obligations of the State for the purposes
of section 103(a)(1) of the Internal Reve-
nue Code of 1954 (26 U.S.C. 103(a)(1)),
but not obligations within the meaning of
section 103(b)(2) of the Internal Revenue
Code of 1954 (26 U.S.C. 103(b)(2)).”
The Railroad Corporation is a public
corporation formed by State statute to
operate the State Railroad. The Railroad
Act contemplates that operation of the
State Railroad entails operating as “a rail
carrier engaged in interstate and foreign
commerce” (§ 608(a)(1) of the Railroad
Act), engaging in “all business opportu-
nities available to comparable railroads”
(§ 608(a)(2) of the Railroad Act), deploy-
ing the State Railroad’s assets for “trans-
portation and related purposes” (§ 609(a)
of the Railroad Act), and for “transpor-
tation, communication, or transmission
purposes” (§ 610(b) of the Railroad Act).
To the extent the Railroad Corporation
engages in activities consistent with and
related to the operation of the State Rail-
road as contemplated by the Railroad
Act, the Railroad Corporation is an entity
described in § 608(a)(6)(A) of the Rail-
road Act.
Therefore, under § 608(a)(6)(A) of the
Railroad Act, bonds issued by the Railroad
Corporation for purposes consistent with
and related to the operation of the State
Railroad as contemplated by the Railroad
Act (Railroad-Related Bonds) are obliga-
tions of the State for purposes of § 103(a)
(1) of the 1954 Code and are not industrial
development bonds under § 103(b)(2) of
the 1954 Code or private activity bonds
under § 141(a) of the Code. Railroad-Re-
lated Bonds are also “issued pursuant to
section 608(a)(6)(A)” of the Railroad Act
within the meaning of § 149(c)(2)(C)(ii)
and, therefore, under § 149(c)(2)(A), are
treated as tax-exempt under § 103(a), not-
withstanding any failure to comply with
the rules in §§ 141 through 147 governing
private activity bonds. Because § 608(a)
(6)(A) of the Railroad Act exempts Rail-
road-Related Bonds only from the rules
in §§ 141 through 147 governing private
activity bonds, Railroad-Related Bonds
must still satisfy the rules in §§ 148, 149,
and 150 to qualify as tax-exempt bonds
under § 103(a).
In connection with the LNG Proj-
ect, the Railroad Corporation intends to
engage in activities to finance the con-
struction, acquisition, and improvement
of the Property. Because the Railroad Cor-
poration’s engagement in these activities
is consistent with and related to the opera-
tion of the State Railroad as contemplated
by the Railroad Act, the bonds issued by
the Railroad Corporation to finance the
construction, acquisition, and improve-
ment of the Property are Railroad-Related
Bonds and are not required to satisfy the
rules in §§ 141 through 147 to qualify as
tax-exempt bonds under § 103(a). This
conclusion is limited to bonds issued by
the Railroad Corporation to finance the
construction, acquisition, and improve-
ment of the Property, all of which must
be located within the State and directly
related to the LNG Project. For example,
this conclusion would not apply if the
Railroad Corporation were to issue bonds
to finance construction of a facility that
uses natural gas generated by the LNG
Project but has no other relationship to the
LNG Project because such a facility does
not qualify as Property.

February 2, 2026 490 Bulletin No. 2026–6
HOLDING
Because financing the construction,
acquisition, and improvement of the Prop-
erty constitutes an activity consistent with
and related to the operation of the State
Railroad as contemplated by the Railroad
Act, bonds issued by the Railroad Corpo-
ration to finance the construction, acqui-
sition, and improvement of the Property
are not required to satisfy the rules in §§
141 through 147 to qualify as tax-exempt
bonds under § 103(a). However, such
bonds are required to satisfy the rules in
§§ 148, 149, and 150 to qualify as tax-ex-
empt bonds under § 103(a).
DRAFTING INFORMATION
The principal author of this revenue
ruling is the Office of the Associate Chief
Counsel (Financial Institutions and Prod-
ucts). For further information regarding
this revenue ruling, call (202) 317-3900
(not a toll-free number).

Bulletin No. 2026–6 491 February 2, 2026
Part III
Interim Guidance on
Additional First Year
Depreciation Deduction
under § 168(k)
Notice 2026-11
SECTION 1. OVERVIEW
This notice announces that the
Department of the Treasury (Treasury
Department) and the Internal Revenue
Service (IRS) intend to issue proposed
regulations (forthcoming proposed regu-
lations) that would implement the addi-
tional first year depreciation deduction
under § 168(k) of the Internal Revenue
Code (Code)
1
, as amended by §§ 70301
and 70434(g) of Public Law 119-21,
139 Stat. 72 (July 4, 2025), commonly
known as the One, Big, Beautiful Bill
Act (OBBBA), including proposed reg-
ulations that would modify § 1.168(k)-2
to include applicable qualified sound
recording productions commencing in
taxable years ending after July 4, 2025.
The Treasury Department and IRS expect
the forthcoming proposed regulations to
be consistent with the interim guidance
provided in sections 3 through 5 of this
notice. Section 3 of this notice addresses
property eligible for the additional
first year depreciation deduction under
§ 168(k) as amended by the OBBBA.
Section 4 of this notice addresses the
elections under § 168(k)(5) and (10).
Section 5 of this notice addresses the
addition of qualified sound recording
productions to qualified property under
§ 168(k)(2) for productions commenc-
ing in taxable years ending after July 4,
2025. Section 6 of this notice addresses
the expected applicability date of the
forthcoming proposed regulations and
the ability of taxpayers to rely on the
interim guidance provided in this notice
for property placed in service in tax-
able years beginning before the date the
forthcoming proposed regulations are
published in the Federal Register.
SECTION 2. BACKGROUND
.01 Section 168(k) prior to amendment
by the OBBBA. Section 168(k)(1), as in
effect after amendment by § 13201 of Pub-
lic Law 115-97, 131 Stat. 2054 (Dec. 22,
2017), commonly known as the Tax Cuts
and Jobs Act (TCJA) (TCJA § 168(k)),
allows an additional first year depreci-
ation deduction, based on the applicable
percentage under TCJA § 168(k)(6) for
qualified property acquired after Septem-
ber 27, 2017, and placed in service before
January 1, 2027 (January 1, 2028, for cer-
tain property having longer production
periods and certain aircraft), and for spec-
ified plants planted or grafted after Sep-
tember 27, 2017, and before January 1,
2027, for which a section 168(k)(5) elec-
tion is made. The applicable percentage
under TCJA § 168(k)(6) was 100 percent
for qualified property placed in service, or
specified plants planted or grafted, after
September 27, 2017, and before January
1, 2023, and has phased down by 20 per-
centage points annually beginning with
qualified property acquired after Septem-
ber 27, 2017, and placed in service after
December 31, 2022 (December 31, 2023,
for certain property having longer produc-
tion periods or certain aircraft), and speci-
fied plants planted or grafted after Decem-
ber 31, 2022. Pursuant to TCJA § 168(k)
(6), the applicable percentage is (i) 40 per-
cent for qualified property placed in ser-
vice during 2025 (60 percent for certain
property having longer production periods
or certain aircraft) and (ii) 40 percent for
specified plants planted or grafted during
2025.
.02 Amendments made by the OBBBA.
(1) Amendments to § 168(k) by § 70301
of the OBBBA. Section 70301 of the
OBBBA (OBBBA § 70301) made several
amendments to § 168(k) to provide tax-
payers with a permanent 100 percent addi-
tional first year depreciation deduction for
qualified property acquired and placed in
service, and specified plants planted or
grafted, after January 19, 2025. Specifi-
cally, OBBBA § 70301: (i) removed the
general requirement that qualified prop-
erty must be placed in service, and spec-
ified plants must be planted or grafted,
before January 1, 2027, (ii) removed the
requirement that certain property having
longer production periods or certain air-
craft must be placed in service before Jan-
uary 1, 2028, and acquired before January
1, 2027, (iii) removed the provision spec-
ifying that the requirement that certain
property having longer production peri-
ods and certain aircraft be acquired before
January 1, 2027 is treated as met if the tax-
payer begins manufacturing, constructing,
or producing self-constructed property
before January 1, 2027, and (iv) replaced
the annual phasedown of the applicable
percentage for the § 168(k) additional
first year depreciation deduction with a
permanent 100 percent additional first
year depreciation deduction for qualified
property acquired, or specified plants
planted or grafted, after January 19, 2025.
Additionally, OBBBA § 70301 amended
§ 168(k)(10) to allow taxpayers to elect to
deduct 40 percent (60 percent for certain
property having longer production periods
or certain aircraft), instead of 100 percent,
additional first year depreciation for qual-
ified property placed in service, or speci-
fied plants planted or grafted, during the
first taxable year ending after January 19,
2025.
OBBBA § 70301(c) provides that,
except as otherwise provided in that sub-
section, the amendments made by OBBBA
§ 70301 apply to property acquired, or
specified plants planted or grafted, after
January 19, 2025. OBBBA § 70301(c)(4)
contains language similar to § 13201(h)(1)
of the TCJA, stating that for purposes of
the effective date in OBBBA § 70301(c)
(1), property is not treated as acquired
after the date a written binding contract is
entered into for such acquisition.
(2) Amendments to §§ 181 and 168(k)
made by § 70434 of the OBBBA.
(a) Amendments to § 181(a) made by
§ 70434 of the OBBBA. Section 181, as in
effect prior to amendment by § 70434 of
the OBBBA (OBBBA § 70434), allows
taxpayers to elect to deduct up to $15 mil-
lion of the aggregate production costs of
1
Unless otherwise specified, all “section” or “§” references are to sections of the Code or the Income Tax Regulations (26 CFR part 1).

February 2, 2026 492 Bulletin No. 2026–6
any qualified film, television or live theat-
rical production commencing before Janu-
ary 1, 2026, but did not allow a deduction
for sound recording productions. OBBBA
§ 70434(a) and (b) amended § 181(a) and
(g) (redesignated as § 181(h)) to allow
taxpayers to deduct the cost of any qual-
ified sound recording production, subject
to a cap on the aggregate cost of any qual-
ified sound recording production, or on
the aggregate, cumulative cost of all
such qualified sound recording produc-
tions in the taxable year, of $150,000, for
productions commencing before Janu-
ary 1, 2026, in taxable years ending after
July 4, 2025. Following the amendments
by OBBBA § 70434(e), § 181(f) defines
“qualified sound recording production” as
a sound recording, as defined in 17 U.S.C.
101, produced and recorded in the United
States.
(b) OBBBA § 70434(g) amendments to
§ 168(k). OBBBA § 70434(g) amended
§ 168(k) by expanding the definition of
qualified property in § 168(k)(2) to include
qualified sound recording productions
for which a deduction would have been
allowable under § 181, without regard to
§ 181(a)(2) and (h) (respectively, the lim-
itation on deductible aggregate production
costs and the termination date for § 181) or
§ 168(k). OBBBA § 70434(g)(2) amended
§ 168(k)(2)(H) to provide that a qualified
sound recording production is considered
placed in service at the time of the initial
release or broadcast.
(c) Effective date of OBBBA § 70434
amendments. OBBBA § 70434(i) pro-
vides that the amendments to § 168(k) and
§ 181 made by OBBBA § 70434 apply to
sound recording productions commencing
in taxable years ending after July 4, 2025,
the date of enactment of the OBBBA.
.03 Existing regulations under § 168(k).
(1) In general. Section 1.168(k)-2,
published in the Federal Register as T.D.
9874 (84 FR 50108) on September 24,
2019, and amended by T.D. 9916 (85 FR
71734) on November 10, 2020, provides
rules for determining whether certain
depreciable property is qualified property
eligible for the additional first year depre-
ciation deduction under TCJA § 168(k).
Section 1.168(k)-2(h)(1) provides that, in
general, the rules in § 1.168(k)-2 apply
to (i) depreciable property acquired after
September 27, 2017, and placed in ser-
vice during or after the taxpayer’s tax-
able year that begins on or after January
1, 2021, (ii) specified plants planted, or
grafted to a plant that was previously
planted, during or after the taxpayer’s
taxable year that begins on or after Jan-
uary 1, 2021, for which an election under
§ 168(k)(5) was made, and (iii) compo-
nents of eligible larger self-constructed
property that are acquired or self-con-
structed after September 27, 2017, and
placed in service by the taxpayer during
or after the taxpayer’s taxable year that
begins on or after January 1, 2021. Sec-
tion 1.1502-68 provides rules governing
the availability of the additional first year
depreciation deduction allowable under
TCJA § 168(k) for depreciable prop-
erty acquired and placed in service after
September 27, 2017, by a member of a
consolidated group. Except as otherwise
provided in § 1.1502-68(c), the rules in
§ 1.168(k)-2 apply to depreciable prop-
erty acquired by members of a consoli-
dated group in addition to the rules in
§ 1.1502-68.
(2) Section 1.168(k)-2(b)(5) acquisi-
tion date requirement.
(a) In general. Section 1.168(k)-2(b)
(5) provides rules for the acquisition date
requirement in § 13201(h) of the TCJA,
which provides that the amendments made
by § 13201 of the TCJA apply to property
which is acquired, or planted or grafted,
after September 27, 2017, and is placed in
service after such date. Under § 13201(h)
of the TCJA, property is not treated as
acquired after the date on which a writ-
ten binding contract is entered into for
such acquisition. Section 1.168(k)-2(b)(5)
states that these rules apply to all depre-
ciable property, including self-constructed
property, certain property having longer
production periods, and certain aircraft.
Pursuant to § 1.168(k)-2(b)(5)(ii)(A),
except for qualified film, television, or live
theater productions, depreciable property
will meet the acquisition date requirement
if the property is acquired by the taxpayer
after September 27, 2017, or is acquired
by the taxpayer pursuant to a written bind-
ing contract entered into by the taxpayer
after September 27, 2017.
(b) Written binding contracts. Section
1.168(k)-2(b)(5)(ii)(B) provides that the
acquisition date of property that the tax-
payer acquired pursuant to a written bind-
ing contract is the later of: (i) the date the
contract was entered into; (ii) the date the
contract is enforceable under State law;
(iii) if the contract has one or more can-
cellation periods, the date all cancellation
periods end; or (iv) if the contract has one
or more contingency clauses, the date all
conditions subject to such clauses are sat-
isfied.
Section 1.168(k)-2(b)(5)(iii) defines a
written binding contract for purposes of
§ 1.168(k)-2(b)(5) as a contract enforce-
able under State law against the taxpayer
or a predecessor that does not limit dam-
ages to a specified amount (for example,
by use of a liquidated damages provision).
Additionally, property that is manufac-
tured, constructed, or produced for the
taxpayer by another person pursuant to
a written binding contract that is entered
into prior to the manufacture, construction
or production of the property for use by
the taxpayer in its trade or business or for
its production of income is considered to
be self-constructed property subject to the
written binding contract rules provided in
§ 1.168(k)-2(b)(5)(iv).
(c) Self-constructed property. Sec-
tion 1.168(k)-2(b)(5)(iv) provides rules
to determine the acquisition date for
self-constructed property for purposes of
§ 1.168(k)-2(b)(5). In general, self-con-
structed property meets the acquisition
date requirement in § 1.168(k)-2(b)(5)(ii)
if the taxpayer (or third party) begins man-
ufacture, construction, or production after
September 27, 2017.
Section 1.168(k)-2(b)(5)(iv)(B) pro-
vides that manufacture, construction, or
production of property begins when phys-
ical work of a significant nature begins.
The determination of when physical work
of a significant nature begins depends
on the facts and circumstances. Section
1.168(k)-2(b)(5)(iv)(B)(2) provides a
safe harbor allowing physical work of a
significant nature to begin at the time the
taxpayer incurs (in the case of an accrual
basis taxpayer) or pays (in the case of a
cash basis taxpayer) more than 10 percent
of the total cost of the property, excluding
the cost of any land and preliminary activ-
ities such as planning or designing, secur-
ing financing, exploring, or researching.
(d) Property acquired pursuant
to a non-binding contract. Section
1.168(k)-2(b)(5)(v) provides the rules

Bulletin No. 2026–6 493 February 2, 2026
for determining the acquisition date for
property acquired pursuant to a non-bind-
ing contract. In general, the acquisition
date for property acquired pursuant to a
non-binding contract (and property con-
structed for the taxpayer by another per-
son under a non-binding contract) is the
date the taxpayer paid or incurred more
than 10 percent of the total cost of the
property, excluding the cost of any land
and preliminary activities.
(e) Acquisition date requirement for
qualified film, television, or live theatrical
productions. Section 1.168(k)-2(b)(5)(vi)
provides that, for purposes of § 13201(h)
of the TCJA: (i) a qualified film or tele-
vision production is treated as acquired
on the date principal photography com-
mences, and (ii) a qualified live theatrical
production is treated as acquired on the
date when all the necessary elements for
producing the live theatrical production
are secured.
(f) Specified plants. Section
1.168(k)-2(b)(5)(vii) provides that a
specified plant meets the acquisition date
requirement of § 1.168(k)-2(b)(5)(ii) if
it is planted or grafted after September
27, 2017, by the taxpayer in the ordinary
course of the taxpayer’s farming business
(as defined in § 263A(e)(4)).
(3) Component election. Section
1.168(k)-2(c)(1) allows a taxpayer to
make an election to treat any acquired
or self-constructed component, as
described in § 1.168(k)-2(c)(3), of larger
self-constructed property, as described in
§ 1.168(k)-2(c)(2), for which the taxpayer
begins the manufacture, construction, or
production before September 28, 2017, as
being eligible for the additional first year
depreciation deduction, if the component
is qualified property under § 168(k)(2)
and § 1.168(k)-2, and the taxpayer either
acquires or begins the manufacture, con-
struction, or production of the component
after September 27, 2017. The rules and
procedures for making the component
election are set forth in § 1.168(k)-2(c)
(6) and provide that the taxpayer must
attach a statement to the timely filed return
(including extensions) for the taxable year
in which the taxpayer placed in service
the larger self-constructed property indi-
cating: (i) that the taxpayer is making
the election in § 1.168(k)-2(c), and (ii)
whether the taxpayer is making the elec-
tion for all or some of the components
described in § 1.168(k)-2(c)(3).
.04 Section 168(k)(5) election.
(1) TCJA § 168(k)(5). TCJA § 168(k)
(5)(A) allows a taxpayer to make an
election to deduct additional first year
depreciation for one or more specified
plants planted by January 1, 2027, or
grafted before such date to a plant that
has already been planted by the taxpayer
in the ordinary course of the taxpayer’s
farming business (as defined in § 263A(e)
(4) (TCJA § 168(k)(5) election). If a tax-
payer makes the TCJA § 168(k)(5) elec-
tion, the additional first year depreciation
deduction is allowable for the specified
plant in the taxable year in which that
plant was planted or grafted, subject to
the applicable percentage phase down
requirements in TCJA § 168(k)(6)(C).
The rules and procedures for making
the TCJA § 168(k)(5) election are set
forth in § 1.168(k)-2(f)(2) and provide
that the taxpayer makes the election in
the manner prescribed on Form 4562,
“Depreciation and Amortization,” and its
instructions. The instructions to the cur-
rent Form 4562 provide generally that a
taxpayer makes the election by attaching
a statement to the timely filed Federal tax
return (including extensions) for the tax-
able year the taxpayer planted or grafted
the specified plant to which the election
applies indicating the taxpayer is electing
to apply TCJA § 168(k)(5) and identify-
ing the specified plant(s) for which the
taxpayer is making the election.
(2) OBBBA § 70301 amendments to
§ 168(k)(5). For specified plants planted
or grafted after January 19, 2025, OBBBA
§ 70301(a)(4) and (b) removed the appli-
cable percentage phase down in § 168(k)
(6) and amended § 168(k)(5) by (i) elimi-
nating the date by which a specified plant
must be planted or grafted by the taxpayer
under § 168(k)(5)(A), and (ii) adding a
permanent 100 percent additional first
year depreciation deduction for specified
plants for which the taxpayer makes a
§ 168(k)(5) election for the taxable year.
.05 Section 168(k)(7) election. Sec-
tion 168(k)(7) (which the OBBBA does
not amend) allows a taxpayer to make
an election not to deduct additional first
year depreciation for any class of prop-
erty (a term defined in § 1.168(k)-2(f)(1)
(ii)) that is qualified property placed in
service during the taxable year. The rules
and procedures for making the election
not to deduct additional first year depre-
ciation are set forth in § 1.168(k)-2(f)(1)
and provide that the taxpayer makes the
election in the manner prescribed on Form
4562, “Depreciation and Amortization,”
and its instructions. The instructions to the
current Form 4562 generally provide that
the taxpayer makes the election by attach-
ing a statement to its timely filed Federal
tax return (including extensions) for the
taxable year in which the property at issue
is placed in service indicating the class of
property for which the taxpayer is mak-
ing the election and that, for such class,
the taxpayer is not claiming the additional
first year depreciation.
.06 Section 168(k)(10) election.
(1) TCJA § 168(k)(10). TCJA § 168(k)
(10) allowed taxpayers to elect to deduct
50 percent, instead of 100 percent, addi-
tional first year depreciation for (i) all
qualified property acquired by the taxpayer
after September 27, 2017, and placed in
service by the taxpayer in its taxable year
that includes September 28, 2017, and
(ii) all specified plants that are planted,
or grafted to a plant that has already been
planted, after September 27, 2017, by the
taxpayer in the ordinary course of the of
the taxpayer’s farming business during
its taxable year that includes September
28, 2017 (TCJA § 168(k)(10) election).
The rules and procedures for making the
TCJA § 168(k)(10) election are set forth in
§ 1.168(k)-2(f)(3), which provides that the
taxpayer makes the election in the man-
ner prescribed on the 2017 Form 4562,
“Depreciation and Amortization,” and its
instructions. Those instructions provide
that the taxpayer makes the election by
attaching a statement to the timely filed
Federal tax return (including extensions)
for the taxable year that includes Septem-
ber 28, 2017, indicating the taxpayer is
electing to apply TCJA § 168(k)(10).
(2) OBBBA § 70301 amendments to
§ 168(k)(10). OBBBA § 70301(b)(3)
amended § 168(k)(10) to allow taxpayers
to elect to deduct 40 percent (60 percent
for certain property having longer produc-
tion periods or certain aircraft), instead of
100 percent, for qualified property placed
in service or plants planted or grafted, as
applicable, by the taxpayer during its first
taxable ending after January 19, 2025.

February 2, 2026 494 Bulletin No. 2026–6
SECTION 3. INTERIM GUIDANCE
.01 Purpose. This section 3 provides
interim guidance for determining whether
depreciable property is qualified prop-
erty eligible for the additional first year
depreciation deduction under § 168(k), as
amended by the OBBBA, and for deter-
mining the additional first year deprecia-
tion deduction allowable under § 168(k),
as amended by the OBBBA. The Treasury
Department and IRS intend to issue forth-
coming proposed regulations consistent
with the interim guidance provided in this
section 3.
.02 In general. Except as otherwise
provided in this notice, to determine
whether depreciable property is quali-
fied property eligible for the § 168(k)
additional first year depreciation deduc-
tion for property acquired, or specified
plants planted or grafted, after January
19, 2025, and to determine the associ-
ated § 168(k) additional first year depre-
ciation deduction, a taxpayer applies
rules consistent with the rules con-
tained in §§ 1.168(k)-2 and 1.1502-68,
with the substitutions and modifications
described in this notice.
.03 Acquisition date requirement
in OBBBA § 70301(c). In determining
whether depreciable property is acquired
after January 19, 2025, for purposes of
OBBBA § 70301(c), taxpayers apply rules
consistent with § 1.168(k)-2(b)(5) and
1.1502-68(a) through (d), by substituting
“January 19, 2025” for “September 27,
2017” each place it appears, and by substi-
tuting “January 20, 2025” for “September
28, 2017” each place it appears.
.04 Property described in § 168(k)(2)
(B) or (C). Because OBBBA § 70301(a)
(2)(A) removed the requirement under
TCJA § 168(k)(2)(B)(i)(III) and (C)(i)
that certain long production period prop-
erty must be acquired by the taxpayer
(or acquired pursuant to a written bind-
ing contract entered into) before January
1, 2027, in order to be qualified prop-
erty, § 1.168(k)-2(d) (providing rules for
determining if such qualified property is
acquired before January 1, 2027) does not
apply in determining whether such prop-
erty is qualified property under § 168(k),
as amended by the OBBBA.
.05 Certain components of larger
self-constructed property.
(1) In general. A taxpayer may make
an election under rules consistent with
§ 1.168(k)-2(c), by substituting “Janu-
ary 19, 2025” and “January 20, 2025”
for “September 27, 2017” and “Septem-
ber 28, 2017”, respectively, to treat an
eligible component of an eligible larger
self-constructed property as eligible for
the additional first year depreciation
deduction under § 168(k), as amended by
the OBBBA (component election). The
eligible component must satisfy all the
requirements set forth in § 1.168(k)-2(c).
(2) Making the component election.
A taxpayer makes the component elec-
tion provided in section 3.05(1) of this
notice by following rules and proce-
dures consistent with those described in
§ 1.168(k)-2(c)(6).
.06 Placed in service date requirement.
Because OBBBA § 70301(a) removed
the § 168(k)(2)(A)(iii), (B)(i)(II), (C)(i)
and (k)(5)(A) requirements that qualified
property must be placed in service before
January 1, 2027 (January 1, 2028, for cer-
tain property having longer production
periods and certain aircraft), and a spec-
ified plant must be planted, or grafted
to a plant that has already been planted,
before January 1, 2027, § 1.168(k)-2(b)(4)
(relating to placed-in-service dates) does
not apply for purposes of determining
whether depreciable property acquired,
or plants planted or grafted (for which the
taxpayer made the § 168(k)(5) election),
after January 19, 2025, is qualified prop-
erty under § 168(k).
.07 Applicable percentage. In applying
§ 168(k) to qualified property acquired,
and specified plants planted or grafted
(for which the taxpayer made the § 168(k)
(5) election), after January 19, 2025, sub-
stitute “100 percent” for “the applica-
ble percentage” each place it appears in
§ 1.168(k)-2, except for the examples pro-
vided in § 1.168(k)-2(g)(2)(iv).
SECTION 4. SECTION 168(k)(5) AND
(10) ELECTIONS
.01 Purpose. This section 4 provides
interim guidance for making the elections
provided in § 168(k)(5) and (10), for qual-
ified property placed in service or plants
planted or grafted, as applicable, after
January 19, 2025, the effective date for
the amendments to § 168(k) by OBBBA
§ 70301. The Treasury Department and
IRS intend to issue forthcoming proposed
regulations consistent with the interim
guidance provided in this section 4.
.02 Section 168(k)(5) election. A tax-
payer makes the § 168(k)(5) election
by following rules and procedures con-
sistent with the rules and procedures in
§ 1.168(k)-2(f)(2).
.03 Section 168(k)(10) election. A
taxpayer makes the § 168(k)(10) elec-
tion by following rules and procedures
consistent with the rules and procedures
in § 1.168(k)-2(f)(3), with the following
modifications: (a) substitute “January 19,
2025” for “September 27, 2017” each
place it appears, (b) substitute “January
20, 2025” for “September 28, 2017” each
place it appears, (c) substitute “40 per-
cent” (“60 percent” in the case of qual-
ified property described in § 168(k)(2)
(B) or (C)) for “50 percent” each place
it appears, and (d) substitute “applicable
Form 4562, Depreciation and Amortiza-
tion,” for “2017 Form 4562, “Deprecia-
tion and Amortization,”.”
SECTION 5. QUALIFIED SOUND
RECORDING PRODUCTIONS
.01 Purpose. This section 5 provides
interim guidance relating to certain treat-
ment of qualified sound recording pro-
ductions under § 168(k) following the
amendments made by OBBBA § 70434.
The Treasury Department and IRS intend
to issue forthcoming proposed regulations
consistent with the interim guidance pro-
vided in this section 5.
.02 Qualified sound recording produc-
tions as qualified property.
(1) Qualified sound recording produc-
tion acquired before January 20, 2025.
In applying § 168(k) to a qualified sound
recording production acquired before Jan-
uary 20, 2025, and in a taxable year end-
ing after July 4, 2025, a taxpayer applies
§ 1.168(k)-2 by adding to the list of quali-
fied property described in § 1.168(k)-2(b)
(2)(i) “a qualified sound recording pro-
duction (as defined in § 181(f)) for which
a deduction would have been allowable
under § 181 without regard to § 181(a)(2)
or (h) or § 168(k)).”
(2) Qualified sound recording produc-
tions acquired after January 19, 2025.
A qualified sound recording production

Bulletin No. 2026–6 495 February 2, 2026
described in § 168(k)(2)(A)(i)(VI), com-
mencing in a taxable year ending after
July 4, 2025, and acquired, as determined
under section 5.03(1) of this notice, after
January 19, 2025, is qualified property eli-
gible for the additional first year deprecia-
tion deduction under § 168(k), as amended
by the OBBBA.
.03 Acquisition date requirement and
placed in service date for qualified sound
recordings.
(1) Acquisition date requirement in
OBBBA § 70301(c). In determining when
a qualified sound recording production is
acquired for purposes of the effective date
rules in OBBBA § 70301(c), a qualified
sound recording production is treated as
acquired on the date that principal record-
ing commences.
(2) Placed in service date. For pur-
poses of determining the additional first
year depreciation deduction for a quali-
fied sound recording production under §
168(k), a qualified sound recording pro-
duction is considered placed in service at
the time of its initial release or broadcast
under § 168(k)(2)(H)(iii).
.04 Election not to deduct additional
first year depreciation for a qualified
sound recording production. A taxpayer
may make an election under § 168(k)(7)
not to deduct additional first year depre-
ciation for a qualified sound recording
production using rules and procedures
consistent with the rules and proce-
dures in § 1.168(k)-2(f)(1), with the
modification that the definition of class
of property in § 1.168(k)-2(f)(1)(ii) is
expanded to include each separate pro-
duction, defined using rules consistent
with § 1.181-3(b), of a qualified sound
recording production.
SECTION 6. APPLICABILITY DATE
AND RELIANCE
.01 Applicability date. It is anticipated
that the forthcoming proposed regulations
will propose rules consistent with the
rules described in sections 3 through 5 of
this notice for property:
(a) that is placed in service in a taxable
year beginning on or after the date the
final regulations are published in the Fed-
eral Register, and
(b) that is (i) depreciable property
acquired by the taxpayer after January 19,
2025 (or, in the case of a qualified sound
recording production, a production com-
mencing in a taxable year ending after July
4, 2025), (ii) specified plants for which
taxpayers properly made the § 168(k)(5)
election that are planted, or grafted to a
plant that was previously planted, after
January 19, 2025, and (iii) components
acquired or self-constructed after January
19, 2025, of larger self-constructed prop-
erty described in § 1.168(k)-2(c)(2), with
the substituted dates in section 3.05 of this
notice.
.02 Reliance on this notice. A tax-
payer may rely on the guidance pro-
vided in sections 3 through 5 of this
notice for the property described in sec-
tion 6.01(b) of this notice that is placed
in service in a taxable year beginning
before the date the forthcoming pro-
posed regulations are published in the
Federal Register, provided that the tax-
payer follows the guidance provided in
sections 3 through 5 of this notice in its
entirety for all eligible property placed
in service in such taxable years, begin-
ning with the first taxable year with
respect to which the taxpayer relies
on the guidance provided in sections 3
through 5 of this notice.
SECTION 7. PAPERWORK
REDUCTION ACT
The Paperwork Reduction Act of 1995
(44 U.S.C. 3501-3520) (PRA) generally
requires that a federal agency obtain the
approval of the Office of Management and
Budget (OMB) before collecting infor-
mation from the public, whether such
collection of information is mandatory,
voluntary, or required to obtain or retain
a benefit. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control number
assigned by the OMB.
The collections of information in this
notice are in sections 3.02, 3.05, 4.02, and
4.03 of this notice.
The collection in section 3.02 of this
notice is an election under § 1.1502-
68(c)(4) that a taxpayer may make to not
claim the additional first year deprecia-
tion deduction for qualified property, and
which § 1.1502-68(c)(1) or (2) would
otherwise require the taxpayer to claim
such deduction when a member of a con-
solidated group acquires from another
member property eligible for the addi-
tional first year depreciation deduction
(or stock of a third member holding such
property), and the acquirer member (and
acquired member, if applicable) then
leaves the consolidated group. The cor-
poration makes the election by attaching
a statement to its timely filed Federal
income tax return (including extensions)
for the taxable year that begins after the
date on which it leaves the consolidated
group. The likely respondents are corpo-
rations.
The collection in section 3.02 of this
notice also allows a taxpayer to make a
§ 168(k)(7) election not to deduct addi-
tional first year depreciation for a qualified
sound recording production under § 168(k)
(7). A taxpayer makes the election by fol-
lowing the rules in § 1.168(k)-2(f)(1),
which requires that the election be made
by the due date, including extensions, of
the Federal tax return for the taxable year
in which the qualified property is placed in
service by the taxpayer in the instructions
for Form 4562. The likely respondents are
businesses and individuals.
The collection in section 3.05 of this
notice is an election that allows a taxpayer
to treat one or more components acquired
or self-constructed after January 19, 2025,
of certain larger self-constructed prop-
erty as being eligible for the 100 percent
additional first year depreciation deduc-
tion under § 168(k). See § 1.168(k)-2(c)
(6). The election is made by attaching a
statement to a Federal income tax return
indicating that the taxpayer is making
the election under § 1.168(k)-2(c) and
whether the election is for all or some of
the components. The likely respondents
are businesses and individuals.
The collection in section 4.02 of this
notice is an election in § 168(k)(5) that
allows a taxpayer to deduct additional first
year depreciation for one or more speci-
fied plants which is planted or grafted
after January 19, 2025. A taxpayer makes
the election by following § 1.168(k)-2(f)
(2), which requires a statement to be
attached to the timely filed Federal tax
return (including extensions) for the tax-
able year the taxpayer planted or grafted
the specified plant, and follow the manner
of making the election in the instructions

February 2, 2026 496 Bulletin No. 2026–6
for Form 4562, Depreciation and Amor-
tization (Including Information on Listed
Property). The likely respondents are
businesses and individuals.
The collection in section 4.03 of
this notice allows a taxpayer to make a
§ 168(k)(10) election to deduct 40 per-
cent (60 percent for certain property hav-
ing longer production periods or certain
aircraft), instead of 100 percent, addi-
tional first year depreciation for all qual-
ified property acquired by the taxpayer
after January 19, 2025, (or, in the case
of specified plants, grafted or planted)
and placed in service by the taxpayer
in its taxable year that includes January
20, 2025. A taxpayer makes the § 168(k)
(10) election by following the rules in
§ 1.168(k)-2(f)(3), which requires a
statement attached to the timely filed
Federal tax return (including extensions)
for the taxable year that includes Janu-
ary 20, 2025, and in the manner provided
in the instructions for Form 4562. The
likely respondents are businesses and
individuals.
This information requested in sections
3.02, 3.05, 4.02, and 4.03 of this notice
will be used by the IRS to identify the
taxpayer, taxable year, the subject of the
election (such as, transaction (section
3.02 of the notice) or components (sec-
tion 3.05 of the notice), and property
subject to the election (such as specified
plant(s) (section 4.02 of this notice) or
class of property (section 4.03 of this
notice).
The burden associated with these infor-
mation collections will be included within
OMB control numbers 1545-0047 for
tax-exempt filers, 1545-0074 for individ-
ual filers, 1545-0092 for trust and estate
filers, and 1545-0123 for business filers
in accordance with the PRA procedures
under 5 CFR 1320.10.
Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential, as
required by 26 U.S.C. 6103.
SECTION 8. DRAFTING AND
CONTACT INFORMATION
The principal author of this notice is
Christian Lagorio of the Office of Asso-
ciate Chief Counsel (Income Tax and
Accounting). For further information
regarding this notice, contact Mr. Lagorio
at (202) 317-7005 (not a toll-free number).
Update for Weighted
Average Interest Rates,
Yield Curves, and Segment
Rates
Notice 2026-12
This notice provides guidance on the
corporate bond monthly yield curve, the
corresponding spot segment rates used
under § 417(e)(3), and the 24-month aver-
age segment rates under § 430(h)(2) of the
Internal Revenue Code. In addition, this
notice provides guidance as to the inter-
est rate on 30-year Treasury securities
under § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008 and the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I).
YIELD CURVE AND SEGMENT
RATES
Section 430 specifies the minimum
funding requirements that apply to sin-
gle-employer plans (except for CSEC plans
under § 414(y)) pursuant to § 412. Section
430(h)(2) specifies the interest rates that
must be used to determine a plan’s target
normal cost and funding target. Under
this provision, present value is generally
determined using three 24-month average
interest rates (“segment rates”), each of
which applies to cash flows during speci-
fied periods. To the extent provided under
§ 430(h)(2)(C)(iv), these segment rates
are adjusted by the applicable percentage
of the 25-year average segment rates for
the period ending September 30 of the
year preceding the calendar year in which
the plan year begins.
1
However, an elec-
tion may be made under § 430(h)(2)(D)
(ii) to use the monthly yield curve in place
of the segment rates.
Section 1.430(h)(2)-1(d) provides
rules for determining the monthly cor-
porate bond yield curve,
2
and § 1.430(h)
(2)-1(c) provides rules for determining
the 24-month average corporate bond
segment rates used to compute the target
normal cost and the funding target. Con-
sistent with the methodology specified in
§ 1.430(h)(2)-1(d), the monthly corporate
bond yield curve derived from Decem-
ber 2025 data is in Table 2025-12 at the
end of this notice. The spot first, second,
and third segment rates for the month of
December 2025 are, respectively, 4.03,
5.17, and 6.11.
The 24-month average segment rates
determined under § 430(h)(2)(C)(i)
through (iii) must be adjusted pursuant to
§ 430(h)(2)(C)(iv) to be within the appli-
cable minimum and maximum percent-
ages of the corresponding 25-year aver-
age segment rates. Those percentages are
95% and 105% for plan years beginning
in 2024, 2025 and 2026. For this purpose,
any 25-year average segment rate that is
less than 5% is deemed to be 5%. The
25-year average segment rates for plan
years beginning in 2024, 2025 and 2026
were published in Notice 2023-66, 2023-
40 I.R.B. 992, Notice 2024-67, 2024-41
I.R.B. 726 and Notice 2025-47, 2025-40
I.R.B. 441, respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for January
2026 without adjustment for the 25-year
average segment rate limits are as follows:
1
Pursuant to § 433(h)(3)(A), the third segment rate determined under § 430(h)(2)(C) is used to determine the current liability of a CSEC plan (which is used to calculate the minimum amount
of the full funding limitation under § 433(c)(7)(C)).
2
For months before February 2024, the monthly corporate bond yield curve was determined in accordance with Notice 2007-81, 2007-44 I.R.B. 899. Section 1.430(h)(2)-1(d) generally adopts
the methodology for determining the monthly corporate bond yield curve under Notice 2007-81 but includes two enhancements to take into account subsequent changes in the bond market.
Those enhancements are described in the preamble to TD 9986 (89 FR 2127).

Bulletin No. 2026–6 497 February 2, 2026
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second Segment Third Segment
January 2026 4.57 5.26 5.74
The adjusted 24-month average seg-
ment rates set forth in the chart below
reflect § 430(h)(2)(C)(iv) of the Code. The
24-month averages applicable for January
2026, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates in accordance with § 430(h)(2)
(C)(iv), are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2024January 20264.755.265.74
2025January 20264.755.265.74
2026January 20264.755.255.74
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to mul-
tiemployer plans pursuant to § 412. Sec-
tion 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation
described in § 431(c)(6)(A), based on the
plan’s current liability. Section 431(c)
(6)(E)(ii)(I) provides that the interest
rate used to calculate current liability for
this purpose must be no more than 5 per-
cent above and no more than 10 percent
below the weighted average of the rates
of interest on 30-year Treasury securi-
ties during the four-year period ending
on the last day before the beginning of
the plan year. Notice 88-73, 1988-2 C.B.
383, provides guidelines for determin-
ing the weighted average interest rate.
The rate of interest on 30-year Treasury
securities for December 2025 is 4.80
percent. The Service determined this
rate as the average of the daily determi-
nations of yield on the 30-year Treasury
bond maturing in November 2055. For
plan years beginning in January 2026,
the weighted average of the rates of
interest on 30-year Treasury securities
and the permissible range of rates used
to calculate current liability are as fol-
lows:
Treasury Weighted Average Rates
For Plan Years Beginning In30-Year Treasury Weighted AveragePermissible Range 90% to 105%
January 20264.363.93 to 4.58
MINIMUM PRESENT VALUE
SEGMENT RATES
In general, the applicable interest rates
under § 417(e)(3)(D) are segment rates
computed without regard to a 24-month
average. Section 1.417(e)-1(d)(3) pro-
vides guidelines for determining the
minimum present value segment rates.
Pursuant to that section, the minimum
present value segment rates determined
for December 2025 are as follows:
Minimum Present Value Segment Rates
Month First Segment Second Segment Third Segment
December 2025 4.03 5.17 6.11
DRAFTING INFORMATION
The principal author of this notice
is Tom Morgan of the Office of Associ-
ate Chief Counsel (Employee Benefits,
Exempt Organizations, and Employment
Taxes). However, other personnel from
the IRS participated in the development
of this guidance. For further information
regarding this notice, contact Mr. Morgan
at 202-317-6700 or Tony Montanaro at
626-927-1475 (not toll-free calls).

February 2, 2026 498 Bulletin No. 2026–6
Table 2025-12
Monthly Yield Curve for December 2025
Derived from December 2025 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.53.8620.55.7740.56.1560.56.3080.56.37
1.03.8921.05.7941.06.1661.06.3081.06.37
1.53.9221.55.8041.56.1661.56.3081.56.37
2.03.9522.05.8242.06.1762.06.3182.06.38
2.53.9922.55.8442.56.1762.56.3182.56.38
3.04.0323.05.8543.06.1863.06.3183.06.38
3.54.0923.55.8743.56.1863.56.3183.56.38
4.04.1424.05.8844.06.1964.06.3184.06.38
4.54.2024.55.8944.56.1964.56.3284.56.38
5.04.2725.05.9045.06.2065.06.3285.06.38
5.54.3425.55.9145.56.2065.56.3285.56.38
6.04.4126.05.9246.06.2166.06.3286.06.39
6.54.4826.55.9346.56.2166.56.3386.56.39
7.04.5527.05.9447.06.2167.06.3387.06.39
7.54.6227.55.9547.56.2267.56.3387.56.39
8.04.6928.05.9648.06.2268.06.3388.06.39
8.54.7628.55.9748.56.2368.56.3388.56.39
9.04.8329.05.9849.06.2369.06.3489.06.39
9.54.8929.55.9949.56.2369.56.3489.56.39
10.04.9530.06.0050.06.2470.06.3490.06.40
10.55.0130.56.0150.56.2470.56.3490.56.40
11.05.0731.06.0251.06.2471.06.3491.06.40
11.55.1331.56.0351.56.2571.56.3491.56.40
12.05.1832.06.0452.06.2572.06.3592.06.40
12.55.2332.56.0452.56.2572.56.3592.56.40
13.05.2833.06.0553.06.2673.06.3593.06.40
13.55.3233.56.0653.56.2673.56.3593.56.40
14.05.3734.06.0754.06.2674.06.3594.06.40
14.55.4134.56.0854.56.2774.56.3594.56.40
15.05.4535.06.0855.06.2775.06.3695.06.41
15.55.4935.56.0955.56.2775.56.3695.56.41
16.05.5236.06.1056.06.2776.06.3696.06.41
16.55.5536.56.1056.56.2876.56.3696.56.41
17.05.5937.06.1157.06.2877.06.3697.06.41
17.55.6237.56.1257.56.2877.56.3697.56.41
18.05.6538.06.1258.06.2978.06.3698.06.41
18.55.6738.56.1358.56.2978.56.3798.56.41
19.05.7039.06.1459.06.2979.06.3799.06.41
19.55.7239.56.1459.56.2979.56.3799.56.41
20.05.7540.06.1560.06.3080.06.37100.06.41

Bulletin No. 2026–6 499 February 2, 2026
Safe Harbor
Explanations – Eligible
Rollover Distributions
Notice 2026-13
I. PURPOSE
This notice provides two safe harbor
explanations that plan administrators may
use to satisfy the requirement under sec-
tion 402(f) of the Internal Revenue Code
(Code) to provide certain information to
recipients of eligible rollover distribu-
tions. One safe harbor explanation is for
distributions that are not from a designated
Roth account, and the other safe harbor
explanation is for distributions from a des-
ignated Roth account. These safe harbor
explanations modify the two safe harbor
explanations provided in Notice 2020-62,
2020-35 IRB 476. The modifications to
the safe harbor explanations take into
consideration certain legislative changes
made by Division T of the Consolidated
Appropriations Act, 2023, Pub. L. 117-
328, 136 Stat. 4459 (2022), known as the
SECURE 2.0 Act of 2022 (SECURE 2.0
Act), and implement a recommendation
from the U.S. Government Accountability
Office (GAO).
II. BACKGROUND
A. Section 402(f)
Section 402(f) requires the plan admin-
istrator of a plan qualified under sec-
tion 401(a) to provide the written expla-
nation described in section 402(f)(1)
(section 402(f) notice) to any recipient of
an eligible rollover distribution, as defined
in section 402(c)(4). In addition, sec-
tion 403(a)(4)(B) requires the plan admin-
istrator of a section 403(a) plan to provide
the section 402(f) notice to any recipient
of an eligible rollover distribution, section
457(e)(16)(B) requires the plan adminis-
trator of a governmental section 457(b)
plan
1
to provide the section 402(f) notice
to any recipient of an eligible rollover
distribution, and section 403(b)(8)(B)
requires a payor under a section 403(b)
plan to provide the section 402(f) notice
to any recipient of an eligible rollover dis-
tribution.
Section 1.402(f)-1, Q&A-1(a), pro-
vides that the plan administrator of a qual-
ified plan is required, within a reasonable
period of time before making an eligible
rollover distribution, to provide the dis-
tributee with the section 402(f) notice.
Notice 2020-62 sets forth two safe har-
bor explanations that may be used to sat-
isfy the requirements for a section 402(f)
notice based on the relevant law as of
August 6, 2020: one safe harbor explana-
tion is for payments not from a designated
Roth account and the other safe harbor
explanation is for payments from a desig-
nated Roth account. Notice 2020-62 pro-
vides, however, that those two safe har-
bor explanations will not satisfy section
402(f) to the extent the explanations are
no longer accurate because of a change in
the relevant law occurring after August 6,
2020.
B. Recent Statutory Changes Related
to Distributions
1. Section 72(t)
Section 72(t)(1) generally provides for
a 10% additional tax on the portion of a
distribution from a qualified retirement
plan (as defined in section 4974(c)) that
is includible in gross income, unless the
distribution qualifies for one of the excep-
tions in section 72(t)(2).
a. Distributions for Emergency Personal
Expenses
Section 115 of the SECURE 2.0 Act
amended section 72(t)(2) of the Code by
adding section 72(t)(2)(I), which provides
a new exception to the 10% additional
tax for a distribution from an applicable
eligible retirement plan to an individual
for emergency personal expenses. For
a description of the rules relating to the
exception to the 10% additional tax for
emergency personal expense distributions
and the optional adoption of emergency
personal expense distribution provisions,
see Notice 2024-55, 2024-28 IRB 31.
Section 72(t)(2)(I)(viii) generally pro-
vides that the special rules in section 72(t)
(2)(H)(vi)(II) (for qualified birth or adop-
tion distributions) also apply for emer-
gency personal expense distributions.
Thus, an emergency personal expense dis-
tribution is not treated as an eligible roll-
over distribution for purposes of the direct
rollover rules of section 401(a)(31), the
notice requirement under section 402(f),
or the mandatory withholding rules under
section 3405.
b. Certain Distributions to Qualified
Public Safety Employees and
Private‑Sector Firefighters
Prior to the enactment of the SECURE
2.0 Act, section 72(t)(10)(A) of the Code
provided that, in the case of a distribution
to a qualified public safety employee (as
defined in section 72(t)(10)(B)) from a
governmental plan (as defined in section
414(d)), the exception to the 10% addi-
tional tax in section 72(t)(2)(A)(v) (relat-
ing to separation from service) is applied
by substituting age 50 for age 55. The
SECURE 2.0 Act made changes to the
exception to the 10% additional tax for
qualified public safety employees in sec-
tion 72(t)(10). Sections 308 and 329 of
the SECURE 2.0 Act modified the excep-
tion to the 10% additional tax under sec-
tion 72(t)(10) of the Code by providing
that the exception applies to a distribu-
tion either from a governmental plan to a
qualified public safety employee or from
a qualified plan, section 403(a) annuity,
or section 403(b) plan to a private-sector
employee who provides firefighting ser-
vices, if the distribution is received after
the employee’s separation from service
and the earlier of the attainment of age 50
or 25 years of service under the plan. In
addition, section 330 of the SECURE 2.0
Act amended section 72(t)(10)(B)(i) of the
Code by adding State or local correction
officers and forensic security employees
providing for the care, custody, and con-
trol of forensic patients to the definition of
qualified public safety employee.
1
A governmental section 457(b) plan is an eligible section 457(b) plan maintained by a governmental employer described in section 457(e)(1)(A).

February 2, 2026 500 Bulletin No. 2026–6
c. Distributions to Domestic Abuse
Victims
Section 314 of the SECURE 2.0 Act
amended section 72(t)(2) of the Code by
adding section 72(t)(2)(K), which pro-
vides a new exception to the 10% addi-
tional tax for an eligible distribution to
a domestic abuse victim (domestic abuse
victim distribution). For a description of
the rules relating to the exception to the
10% additional tax for domestic abuse
victim distributions and the optional
adoption of domestic abuse victim dis-
tribution provisions, see Notice 2024-55.
Section 72(t)(2)(K)(vi)(II) provides that
a domestic abuse victim distribution is
not treated as an eligible rollover distri-
bution for purposes of the direct rollover
rules of section 401(a)(31), the notice
requirement under section 402(f), or the
mandatory withholding rules under sec-
tion 3405.
d. Distributions to Terminally Ill
Individuals
Section 326 of the SECURE 2.0 Act
amended section 72(t)(2) of the Code by
adding a new exception to the 10% addi-
tional tax for distributions made to a ter-
minally ill individual. Section 72(t)(2)(L)
provides that an employee who is a termi-
nally ill individual and receives a distribu-
tion (terminally ill individual distribution)
on or after the date on which the employee
has been certified by a physician as hav-
ing a terminal illness will not be subject
to the 10% additional tax with respect to
the distribution. For a description of the
rules relating to the exception to the 10%
additional tax for terminally ill individual
distributions, see Part F of Notice 2024-2,
2024-2 IRB 316. A terminally ill indi-
vidual distribution is an eligible rollover
distribution for purposes of the direct roll-
over rules of section 401(a)(31), the notice
requirement under section 402(f), and the
mandatory withholding rules under sec-
tion 3405.
Although section 72(t)(2)(L) provides
an exception to the 10% additional tax, it
does not provide an exception from the
distribution restriction requirements in
sections 401(k)(2)(B)(i), 403(b)(7)(A)
(i), and 403(b)(11). Therefore, a plan that
is subject to these distribution restric-
tion requirements may only make a ter-
minally ill individual distribution to an
employee who is otherwise eligible for
a permissible distribution. For example,
a section 401(k) plan may distribute a
terminally ill individual distribution to
an employee who is otherwise eligible
for a permissible distribution and meets
the requirements of that permissible dis-
tribution, such as a distribution after the
employee separates from service, with-
out violating the distribution restriction
requirements under section 401(k)(2)
(B)(i). For the distribution to also meet
the requirements of a terminally ill indi-
vidual distribution, the distribution must
meet the applicable requirements in
Notice 2024-2, for a terminally ill indi-
vidual distribution, including the content
requirement for the certification described
in Q&A F-6, the timing requirement for
the certification described in Q&A F-7,
and the documentation requirement
described in Q&A F-13 of Notice 2024-2.
In the example above, when distributing
the terminally ill individual distribu-
tion, the plan administrator of the sec-
tion 401(k) plan would need to provide
a section 402(f) notice for the separated
employee requesting a terminally ill indi-
vidual distribution.
e. Qualified Disaster Recovery
Distributions
Section 331 of the SECURE 2.0 Act
amended section 72(t) of the Code by
(1) adding section 72(t)(2)(M), which
provides a new exception to the 10%
additional tax for any qualified disaster
recovery distribution, and (2) adding sec-
tion 72(t)(11), which provides additional
rules related to qualified disaster recovery
distributions. Section 72(t)(11)(A) and
(B) permits an individual whose princi-
pal place of abode at any time during the
incident period of a qualified disaster is
located in the qualified disaster area and
who has sustained an economic loss by
reason of the qualified disaster to receive
a distribution of up to $22,000 (a quali-
fied disaster recovery distribution) on or
after the first day of the incident period of
the qualified disaster and before the date
that is 180 days after the applicable date
with respect to the disaster. A qualified
disaster is defined in section 72(t)(11)(E)
as any disaster with respect to which a
major disaster has been declared by the
President under section 401 of the Rob-
ert T. Stafford Disaster Relief and Emer-
gency Assistance Act, Pub. L. 100-707,
102 Stat. 4689 (1988), after December
27, 2020. The term applicable date is
defined in section 72(t)(11)(F)(iii) as the
latest of December 29, 2022 (the date of
enactment of section 72(t)(11)(F)), the
first day of the incident period (as speci-
fied by the Federal Emergency Manage-
ment Agency) with respect to the qual-
ified disaster, or the date of the disaster
declaration with respect to the qualified
disaster. Section 72(t)(11)(G)(i) provides
that a qualified disaster recovery distribu-
tion is not treated as an eligible rollover
distribution for purposes of the direct
rollover rules of section 401(a)(31), the
notice requirement under section 402(f),
or the mandatory withholding rules under
section 3405.
For a description of the rules relating to
the exception to the 10% additional tax for
qualified disaster recovery distributions
and the optional adoption of qualified
disaster recovery distribution provisions,
see IRS Fact Sheet 2024-19, Disaster
relief frequently asked questions: Retire-
ment plans and IRAs under the SECURE
2.0 Act of 2022 (IR-2024-132, May 3,
2024).
f. Distributions from Pension‑Linked
Emergency Savings Accounts
Section 127(e)(2) of the SECURE 2.0
Act amended section 72(t)(2) of the Code
by adding section 72(t)(2)(J), which pro-
vides that the 10% additional tax does
not apply to distributions from a pen-
sion-linked emergency savings account
(PLESA) pursuant to section 402A(e).
See section II.B.3.c of this notice for a
general description of PLESAs, includ-
ing the application of section 402(f)
notice requirements to PLESA distribu-
tions.
g. Qualified Long‑Term Care
Distributions
Section 334 of the SECURE 2.0 Act
amended section 72(t)(2) of the Code by
adding section 72(t)(2)(N) to provide a
new exception to the 10% additional tax

Bulletin No. 2026–6 501 February 2, 2026
for qualified long-term care distributions,
which are generally distributions made
to an employee during the taxable year
to pay for certified long-term care insur-
ance for the employee or the employee’s
spouse. Section 334 of the SECURE 2.0
Act also added section 401(a)(39) of the
Code, which provides that a trust form-
ing part of a qualified defined contribu-
tion plan will not be treated as failing to
constitute a qualified trust solely because
the plan permits qualified long-term care
distributions, if certain requirements are
met.
2
Section 334 of the SECURE 2.0 Act
is effective for distributions made after
December 29, 2025.
Section 72(t)(2)(N)(iii) provides that a
qualified long-term care distribution is not
treated as an eligible rollover distribution
for purposes of the direct rollover rules of
section 401(a)(31), the notice requirement
under section 402(f), or the mandatory
withholding rules under section 3405.
2. Required Minimum Distributions
Section 401(a)(9) establishes a manda-
tory date, known as the “required begin-
ning date,” by which required minimum
distributions to a plan participant must
start. Under section 402(c)(4)(B), required
minimum distributions are not eligible
rollover distributions.
a. Applicable Ages for Required
Minimum Distributions
Section 107 of the SECURE 2.0 Act
amended section 401(a)(9) of the Code
to increase the ages at which required
minimum distributions must begin. Sec-
tion 401(a)(9)(C)(i) provides that the
required beginning date for required min-
imum distributions is April 1 of the calen-
dar year following the later of (I) the cal-
endar year in which the employee attains
the applicable age, or (II) the calendar
year in which the employee retires. Sec-
tion 401(a)(9)(C)(v) provides that, (I) in
the case of an individual who attains age
72 after December 31, 2022, and age 73
before January 1, 2033, the applicable age
is 73, and (II) in the case of an individ-
ual who attains age 74 after December 31,
2032, the applicable age is 75.
b. Required Minimum Distributions Not
Required from Designated Roth Account
in a Plan
Section 325 of the SECURE 2.0 Act
amended section 402A(d) of the Code by
adding section 402A(d)(5), which pro-
vides that neither required minimum dis-
tributions under section 401(a)(9)(A) nor
the incidental death benefit requirements
of section 401(a) apply to any designated
Roth account in a plan.
c. Surviving Spouse Election to Be
Treated as Employee
Section 327 of the SECURE 2.0 Act
amended the special rule for the surviv-
ing spouse of an employee under sec-
tion 401(a)(9)(B)(iv) of the Code. Under
section 401(a)(9)(B)(iv), if the designated
beneficiary in section 401(a)(9)(B)(iii)(I)
is the surviving spouse of the employee
and the surviving spouse will be taking
annual distributions over a period of lon-
ger than 10 years, then those distributions
are not required to start until the year in
which the employee would have attained
the applicable age. If the surviving spouse
dies before required minimum distribu-
tions to the surviving spouse begin, favor-
able required minimum distribution rules
in section 401(a)(9)(B)(iii) would apply
as if the surviving spouse is the employee.
In addition, a surviving spouse may
elect to be treated as if the surviving
spouse were the employee for purposes of
determining the amount of each required
minimum distribution. If this election
is made, then the surviving spouse may
take distributions over a longer number of
years than the surviving spouse’s remain-
ing life expectancy. If this election is not
made, required minimum distributions
will be made over the life of the surviv-
ing spouse (or over a period not extending
beyond the life expectancy of the surviv-
ing spouse).
3. Other Statutory and Regulatory
Changes Related to Distributions
a. Mandatory Distributions
Section 304 of the SECURE 2.0 Act
increased from $5,000 to $7,000 the
dollar thresholds related to distributions
under sections 411(a)(11) and 401(a)(31)
(B) of the Code. Section 411(a)(11) gen-
erally permits plans qualified under sec-
tion 401(a) to include provisions allowing
for the immediate distribution of a sepa-
rating participant’s benefit without such
participant’s consent if the present value
of the nonforfeitable accrued benefit does
not exceed $7,000 (mandatory distribu-
tions). Plans may provide that amounts
attributable to previous rollovers into the
plan are excluded for purposes of deter-
mining whether the present value of the
nonforfeitable accrued benefit does not
exceed $7,000.
If a distributee does not make an affir-
mative election to have a mandatory dis-
tribution of more than $1,000 paid from
a plan qualified under section 401(a)
3

in a direct rollover to an eligible retire-
ment plan or to receive the distribution
directly, section 401(a)(31)(B) requires
that such mandatory distribution be paid
in a direct rollover to an individual retire-
ment plan, i.e., an individual retirement
account as described in section 408(a) or
an individual retirement annuity described
in section 408(b) (IRA), of a designated
trustee or issuer. Section 401(a)(31)(B)(i)
requires that the plan administrator notify
the distributee in writing (either separately
or as part of the section 402(f) notice) that
the distribution may be paid in a direct
rollover to an IRA.
b. Distributions from Governmental
Plans to Eligible Retired Public Safety
Officers for Health and Long‑Term Care
Insurance
Section 402(l) provides special rules
regarding distributions from governmental
plans to eligible retired public safety offi-
cers for health and long-term care insur-
2
Qualified long-term care distributions are also permitted from section 401(k) plans pursuant to section 401(k)(2)(B)(i)(VII), qualified annuity contracts pursuant to section 403(a)(6), sec-
tion 403(b) custodial accounts pursuant to section 403(b)(7)(A)(i)(VII), section 403(b) annuity contracts pursuant to section 403(b)(11)(E), and governmental section 457(b) plans pursuant
to section 457(d)(1)(A)(v).
3
The mandatory distribution rules in section 401(a)(31)(B) also apply to 403(b) plans pursuant to section 403(b)(10) and governmental section 457(b) plans pursuant to section 457(d)(1)(C).

February 2, 2026 502 Bulletin No. 2026–6
ance. Section 402(l)(1) provides that, in
general, in the case of an employee who is
an eligible retired public safety officer and
who makes an election under section 402(l)
(6) with respect to any taxable year, the
employee’s gross income for that taxable
year does not include any distribution from
an eligible retirement plan to the extent
that the aggregate amount of the distribu-
tions does not exceed the amount paid by
the employee for qualified health insur-
ance premiums for the taxable year. Sec-
tion 402(l)(2) limits the amount that may
be excluded from gross income for the tax-
able year under section 402(l)(1) to $3,000.
Prior to the enactment of the SECURE
2.0 Act, section 402(l)(5)(A) of the Code
provided that insurance premiums may
be excluded from gross income only if
the payment of the premiums is made
directly to the provider of the accident or
health plan or qualified long-term insur-
ance contract by deduction from a dis-
tribution from the retirement plan (the
direct payment requirement). As amended
by section 328 of the SECURE 2.0 Act,
section 402(l)(5)(A)(i) of the Code elim-
inates the direct payment requirement.
Instead, section 402(l)(5)(A)(i) provides
that the tax treatment under section 402(l)
(1) applies to a distribution without regard
to whether payment of the premiums is
made directly to the provider of the acci-
dent or health plan or qualified long-term
care insurance contract by deduction from
a distribution from the eligible retirement
plan, or is made to the employee.
c. Pension‑Linked Emergency Savings
Accounts
Section 127 of the SECURE 2.0 Act
amended title I of the Employee Retire-
ment Income Security Act of 1974
(ERISA) and section 402A of the Code to
provide that certain retirement plans may
include PLESAs. In general, PLESAs are
short-term savings accounts established
and maintained in connection with a
defined contribution plan and are treated
as a type of designated Roth account.

Section 402A(e)(10)(A) provides that
distributions from PLESAs generally are
not treated as eligible rollover distribu-
tions for purposes of section 402(f), except
as provided in section 402A(e)(10)(B).
Pursuant to section 402A(e)(10)(B), in the
case of termination of employment of the
participant or termination of the PLESA
by the plan sponsor, a distribution may be
transferred under section 402A(e)(8)(A)
(i)
4
to another designated Roth account
in the defined contribution plan, and, if
so transferred, the distribution from the
PLESA is treated as an eligible rollover
distribution for purposes of section 402(f).
d. Collectibles
On July 19, 2024, the Treasury Depart-
ment and the Internal Revenue Service
(IRS) published TD 10001 (89 FR 58886),
which sets forth final regulations under
section 401(a)(9) that, among other things,
updated the list of distributions and deemed
distributions that are not eligible rollover
distributions. Specifically, § 1.402(c)-2(c)
(3)(x) provides that amounts treated as dis-
tributed as a result of the purchase of a col-
lectible pursuant to section 408(m) are not
eligible rollover distributions.
C. Government Accountability Office
Report
On May 22, 2024, the GAO released a
report, titled 401(k) Retirement Plan Tax
Notices: Federal Actions Can Help Par-
ticipants Understand Their Distribution
Options, GAO-24-107167 (GAO Report).
The GAO Report examines the effective-
ness of section 402(f) notices in helping
participants understand their distribution
options and associated tax consequences.
The GAO Report made several rec-
ommendations to the Department of the
Treasury (Treasury Department) to mit-
igate the challenges section 401(k) plan
participants face regarding section 402(f)
notices. The GAO Report recommended
that the section 402(f) notices provide
clearer and more concise information
about each of the following four distribu-
tion options and their associated tax con-
sequences: (1) leave their savings in their
former employer’s plan, (2) roll over their
savings into a plan sponsored by their new
employer in a plan-to-plan rollover, (3)
roll over their savings into an IRA, or (4)
take a lump-sum distribution.
The GAO Report also recommended
that the Treasury Department address the
timing requirements for plans to provide
the section 402(f) notice to ensure the
section 402(f) notice is provided to par-
ticipants when they leave their jobs and
become eligible to take distributions. The
GAO Report acknowledged that the Trea-
sury Department informed the GAO that
there is no statutory authority to require a
section 402(f) notice to a participant upon
separation from service.
Under § 1.402(f)-1, Q&A-2(b), a
plan administrator may provide a par-
ticipant with a section 402(f) notice ear-
lier than is required (for example, upon
a participant’s separation from service).
Then, rather than providing the full sec-
tion 402(f) notice a second time within the
required section 402(f) notice timeframe,
a plan administrator would be permitted to
provide the participant with a summary of
the section 402(f) notice within that time-
frame. However, if the participant requests
the full section 402(f) notice after receiv-
ing the summary, the plan administrator
would need to provide the section 402(f)
notice without charge.
The Treasury Department and the IRS
encourage plan administrators to consider
implementing the GAO Report’s recommen-
dation to provide the section 402(f) notice in
connection with a participant’s separation
from service under the options described in
§ 1.402(f)-1, Q&A-2(b), in order to provide
the participant with information about distri-
bution options at the point in time when the
participant is facing an important decision
about retirement savings.
III. MODIFICATIONS TO THE SAFE
HARBOR EXPLANATIONS
Two updated safe harbor explana-
tions are appended to this notice (see the
Appendix). The safe harbor explanations
modify the safe harbor explanations in
Notice 2020-62 to reflect certain legisla-
tive changes made after August 6, 2020,
including: (1) various changes relating
to the exceptions under section 72(t)
(2) to the 10% additional tax under sec-
4
Under section 402A(e)(8)(A)(i), a participant may elect to transfer the PLESA account balance, in whole or in part, into another designated Roth account of the participant under the defined
contribution plan.

Bulletin No. 2026–6 503 February 2, 2026
tion 72(t)(1), (2) changes relating to the
required minimum distribution rules for
surviving spouses, (3) the increased age
for determining required beginning dates
for required minimum distributions under
section 401(a)(9), (4) the elimination
of required minimum distributions with
respect to designated Roth accounts in a
plan, (5) the increased dollar thresholds
related to small lump-sum distributions
under sections 411(a)(11) and 401(a)(31)
(B), (6) changes to the rules relating to
distributions from governmental plans for
health and long-term care insurance, and
(7) rules relating to PLESA distributions.
The safe harbor explanations also include
a paragraph setting forth the options gener-
ally available to plan participants receiving
eligible rollover distributions. As noted in
the GAO Report, providing clear and con-
cise information will allow notice recipi-
ents to fully consider the implications of
their distribution options before they make
decisions about their plan savings. Finally,
the safe harbor explanations include other
minor modifications to improve clarity,
including a limitation on rollovers to SIM-
PLE IRA plans under section 408(p)(1)(B)
and a table of contents to help a recipient
easily identify information and topics that
are relevant to the recipient’s decision.
The updated safe harbor explanations
provided in this notice may be used by
plan administrators and payors to satisfy
section 402(f). The updated safe harbor
explanations will not, however, satisfy
section 402(f) to the extent the explana-
tions are no longer accurate because of a
change in the relevant law occurring after
January 15, 2026. The IRS anticipates
updating the safe harbor explanations to
reflect relevant future changes, including
provisions of the SECURE 2.0 Act that
are not effective until taxable years begin-
ning after December 31, 2026.
5
The first safe harbor explanation reflects
the rules relating to distributions not from
a designated Roth account. Thus, the first
safe harbor explanation should be used
only if the participant is eligible to receive
an eligible rollover distribution that is not
from a designated Roth account. The sec-
ond safe harbor explanation reflects the
rules relating to distributions from a desig-
nated Roth account. Thus, the second safe
harbor explanation should be used only if
the participant is eligible to receive an eligi-
ble rollover distribution from a designated
Roth account. Both explanations should be
provided to a participant if the participant is
eligible to receive eligible rollover distribu-
tions from both a designated Roth account
and an account other than a designated
Roth account.
The safe harbor explanation in this
notice for distributions not from a desig-
nated Roth account meets the requirements
of section 402(f) for an eligible rollover
distribution that is not from a designated
Roth account if it is provided to the recip-
ient of the eligible rollover distribution
within a reasonable period of time before
the distribution is made. Similarly, the safe
harbor explanation in this notice for dis-
tributions from a designated Roth account
meets the requirements of section 402(f)
for an eligible rollover distribution from a
designated Roth account if it is provided to
the recipient of the eligible rollover distri-
bution within a reasonable period of time
before the distribution is made.
Section 1.402(f)-1, Q&A-2, currently
provides, in general, that a reasonable
period of time for providing an explana-
tion is no less than 30 days (subject to
waiver by the distributee) and no more
than 90 days before the date on which the
distribution is made. However, proposed
§ 1.402(f)-1, Q&A-2(a), pursuant to sec-
tion 1102(a)(1)(B) of the Pension Protec-
tion Act of 2006, Pub. L. 109-280, 120
Stat. 780, provides that a notice required
to be provided under section 402(f) may
be provided to a participant as much as
180 days before the date on which the dis-
tribution is made (or the annuity starting
date). The proposed regulations further
provide that, with respect to the extended
period for notices, plans may rely on the
proposed regulations for notices provided
during the period beginning on the first
day of the first plan year beginning on or
after January 1, 2007, and ending on the
effective date of final regulations. Thus,
the section 402(f) notice may be provided
as many as 180 days before the date on
which the distribution is made (or the
annuity starting date).
A plan administrator or payor may
customize a safe harbor explanation
by omitting any information that does
not apply to the plan, and the Treasury
Department and IRS encourage that
customization. For example, if the plan
does not hold after-tax employee con-
tributions, it would be appropriate to
eliminate the section “If your payment
includes after-tax contributions” in the
explanation for payments not from a des-
ignated Roth account. Similarly, if the
plan does not provide for distributions of
employer stock or other employer securi-
ties, it would be appropriate to eliminate
the section “If your payment includes
employer stock that you do not roll
over.” Other information that may not be
relevant to a particular plan includes, for
example, the sections “If your payment is
from a governmental section 457(b) plan”
and “If you are an eligible retired public
safety officer and your payment is used
to pay for health coverage or qualified
long-term care insurance.” In addition,
the plan administrator or payor may pro-
vide additional information with a safe
harbor explanation if the information is
not inconsistent with section 402(f).
Alternatively, a plan administrator or
payor may satisfy section 402(f) by pro-
viding an explanation that is different
from a safe harbor explanation provided
in this notice. To satisfy section 402(f), an
explanation must include the information
required by section 402(f) and must be
written in a manner designed to be easily
understood.
IV. EFFECT ON OTHER
DOCUMENTS
Notice 2020-62 is superseded.
DRAFTING INFORMATION
The principal authors of this notice are
Jordan D. Kohl and Christina M. Cerasale
of the Office of Associate Chief Counsel
(Employee Benefits, Exempt Organiza-
tions, and Employment Taxes). For fur-
ther information regarding this notice,
contact Ms. Kohl at (312) 292-2170 (not
a toll-free number).
5
The SECURE 2.0 Act includes the following provisions that are not effective until taxable years beginning after December 31, 2026: section 103 (adding Code section 6433, which provides
for Saver’s Match contributions) and section 309 (adding Code section 139C, which provides for the exclusion from income of certain disability-related qualified first responder retirement
payments).

February 2, 2026 504 Bulletin No. 2026–6
Appendix
For Payments Not From a
Designated Roth Account
YOUR OPTIONS FOR ELIGIBLE ROLLOVER DISTRIBUTIONS
You are receiving this notice because you are eligible to receive a payment from the [INSERT NAME OF PLAN] (the “Plan”) that
you can transfer (roll over) to an IRA or another employer plan. This notice is intended to help you decide whether to roll over the
payment (or some portion of it).
CONTENTS
GENERAL INFORMATION ABOUT ROLLOVERS
What can I do with an amount that is eligible for rollover?
How can a payment affect my taxes?
How can a rollover affect my taxes?
What types of retirement accounts and plans may accept my rollover?
How do I do a rollover?
How much may I roll over?
If I don’t do a rollover, will I have to pay the 10% additional tax on distributions before age 59½?
If I do a rollover to an IRA, will the 10% additional tax apply to a later distribution from the IRA before age 59½?
Will I owe state income taxes?
SPECIAL RULES AND OPTIONS
If your payment includes after-tax contributions
If you miss the 60-day rollover deadline
If your payment includes employer stock that you don’t roll over
If you have an outstanding loan that is being offset
If you receive a payment and you were born on or before January 1, 1936
If your payment is from a governmental section 457(b) plan
If you are an eligible retired public safety officer and your payment is used to pay for health coverage or qualified long-term care
insurance
If you roll over your payment to a SIMPLE IRA
If you roll over your payment to a Roth IRA
If you roll over your payment to a designated Roth account in the Plan
If you aren’t a Plan participant
If you are a nonresident alien
Other special rules
FOR MORE INFORMATION
GENERAL INFORMATION ABOUT ROLLOVERS
This notice describes the rollover rules that apply to payments from the Plan that are not from a designated Roth account (a type of
account in some employer plans that is subject to special tax rules). If you also receive a payment from a designated Roth account
in the Plan, you will be provided a different notice for that payment, and the Plan administrator or the payor will tell you the amount
that is being paid from each account.
Rules that apply to most payments from a plan are described in this “General Information About Rollovers” section. Special rules
that only apply in certain circumstances are described in the “Special Rules and Options” section, including rules if your Plan is a
governmental section 457(b) plan, you have after-tax contributions, or your benefit doesn’t exceed $7,000.
What can I do with an amount that is eligible for rollover?
When an amount payable (that is, an amount you are eligible to take as a payment from the Plan) is eligible for rollover, you generally
may choose some combination of the following:

Bulletin No. 2026–6 505 February 2, 2026
• Leave it in the Plan, that is, do not take the payment,
• Roll it over into another employer plan,
• Roll it over into an IRA, or
• Take it, don’t roll it over, and pay any required taxes.
Whether these options are available to you depends on your circumstances and the terms of the Plan. For example, you may be
required to take a payment (and not roll it over) based on your age or if your benefit is below a certain threshold.
How can a payment affect my taxes?
If you don’t do a rollover, you will be taxed on a payment from the Plan, and, if you are under age 59½, you will also have to pay a
10% additional tax (unless an exception applies).
How can a rollover affect my taxes?
If you do a rollover, you won’t have to pay tax until you receive payments later.
What types of retirement accounts and plans may accept my rollover?
You may roll over the payment to either an IRA (an individual retirement account or individual retirement annuity) or an employer
plan (a tax-qualified plan (such as a section 401(k) plan), a section 403(b) plan, or a governmental section 457(b) plan) that will accept
the rollover. The rules of the IRA or employer plan that receives the rollover will determine your investment options, fees, and rights
to payment from the IRA or employer plan (for example, IRAs aren’t subject to spousal consent rules, and IRAs may not provide
loans). Further, the amount rolled over will become subject to the tax rules that apply to the IRA or employer plan. For additional
information on IRAs, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), and IRS Publication
590-B, Distributions from Individual Retirement Arrangements (IRAs).
How do I do a rollover?
There are two ways to do a rollover. You can do either a direct rollover or a 60-day rollover.
If you do a direct rollover, the Plan will make the payment directly to your IRA or an employer plan. You should contact the IRA
provider or the administrator of the employer plan for information on how to do a direct rollover.
If you do a 60-day rollover, you will receive a payment from the Plan and then make a deposit into an IRA or eligible employer plan
that will accept it. Generally, you will have 60 days after you receive the payment to make the deposit. If you don’t do a direct roll-
over, the Plan is required to withhold 20% of the payment for federal income taxes (up to the amount of cash and property received
other than employer stock). This means that, in order to roll over the entire payment in a 60-day rollover, you must use other funds
to make up for the amount withheld. If you don’t roll over the entire amount of the payment, the portion not rolled over will be taxed
and will be subject to the 10% additional tax on early distributions if you are under age 59½ (unless an exception applies).
How much may I roll over?
You may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover, except:
• Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the joint lives or joint life
expectancies of you and your beneficiary);
• Required minimum distributions;
• Hardship distributions;
• Payments of employee stock ownership plan (ESOP) dividends;
• Corrective distributions of contributions that exceeded tax law limitations;
• Loans treated as deemed distributions (for example, loans in default due to missed payments before your employment ends);
• Cost of life insurance paid by the Plan;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
• Amounts treated as distributed because of a prohibited allocation of S corporation stock under an ESOP;
• Distributions used to pay certain premiums for health and accident insurance; and
• Amounts treated as distributed as a result of the purchase of a collectible.

February 2, 2026 506 Bulletin No. 2026–6
The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover.
If I don’t do a rollover, will I have to pay the 10% additional tax on distributions before age 59½?
If you are under age 59½, you will have to pay the 10% additional tax on early distributions for any payment from the Plan (including
amounts withheld for income tax) that you don’t roll over, unless one of the exceptions listed below applies. This tax applies to the
part of the distribution that you must include in income and is in addition to the regular income tax on the payment not rolled over.
The 10% additional tax doesn’t apply to the following payments from the Plan:
• Payments made after you separate from service if you are at least age 55 in the year of the separation;
• Payments that start after you separate from service if paid at least annually in substantially equal amounts over your life or life
expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
• Payments from a governmental plan made after you separate from service as a qualified public safety employee and, in the year
of separation, have reached age 50 or 25 years of service under the Plan;
• Payments from a private-sector plan made after you separate from service as a private-sector firefighter and, in the year of sepa-
ration, have reached age 50 or 25 years of service under the Plan;
• Payments made due to disability;
• Payments made after your death;
• Payments of ESOP dividends;
• Corrective distributions of contributions that exceed tax law limitations;
• Cost of life insurance paid by the Plan;
• Payments made directly to the government to satisfy a federal tax levy;
• Payments made under a qualified domestic relations order (QDRO);
• Payments from a defined contribution plan that are qualified birth or adoption distributions;
• Payments from a defined contribution plan for purposes of meeting unforeseeable or immediate financial needs relating to per-
sonal or family emergency expenses (emergency personal expense distributions);
• Payments to a victim of domestic abuse from a defined contribution plan that isn’t subject to the qualified joint survivor annuity
or qualified preretirement survivor annuity rules (domestic abuse victim distributions);
• Payments after you receive a certification from a physician that you have a terminal illness (terminal illness distributions);
• Payments that are qualified disaster recovery distributions;
• Payments made from a defined contribution plan that are qualified long-term care distributions;
• Payments up to the amount of your deductible medical expenses (without regard to whether you itemize deductions for the tax-
able year);
• Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September
11, 2001, for more than 179 days;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
• Phased retirement payments made to federal employees; and
• Payments from a pension-linked emergency savings account.
For more information about the 10% additional tax and the exceptions to the 10% additional tax, see IRS Publication 575, Pension
and Annuity Income, under the heading Tax on Early Distributions. For information on how to claim an exception, see the Instructions
for IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
If I do a rollover to an IRA, will the 10% additional tax apply to a later distribution from the IRA before age 59½?
If you receive a payment from an IRA when you are under age 59½, you will have to pay the 10% additional tax on early distributions
on the part of the payment that you must include in income, unless an exception applies. In general, the exceptions to the 10% addi-
tional tax for early distributions from an IRA are the same as the exceptions listed above for early distributions from a plan. However,
there are a few differences for payments from an IRA, including:
• The exception for payments from a plan made after you separate from service if you are at least age 55 in the year of the sep-
aration (or the earlier of age 50 or attainment of 25 years of service under the Plan for qualified public safety employees and
private-sector firefighters) doesn’t apply to payments from an IRA;
• The exception for payments made pursuant to a QDRO under a plan doesn’t apply to an IRA (although a special rule applies
under which, as part of a divorce or separation agreement, a tax-free transfer may be made directly to an IRA of a spouse or
former spouse); and

Bulletin No. 2026–6 507 February 2, 2026
• The exception for substantially equal periodic payments from a plan also applies to payments from an IRA but without regard to
whether you have had a separation from service.
Also, there are exceptions to the 10% additional tax that do not apply to payments from a plan but that do apply to payments from
an IRA, including:
• Payments for qualified higher education expenses;
• Payments up to $10,000 used in a qualified first-time home purchase; and
• Payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or
would have been eligible to receive unemployment compensation but for self-employed status).
For more general information about the 10% additional tax and the exceptions to the 10% additional tax on payments from an IRA,
see the Instructions to IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. See
also, IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), under the heading Early Distributions.
Will I owe state income taxes?
This notice doesn’t address any state or local income tax rules (including withholding rules).
SPECIAL RULES AND OPTIONS
If your payment includes after-tax contributions
After-tax contributions included in a payment aren’t taxed. If you receive a partial payment of your total benefit, an allocable portion
of your after-tax contributions is included in the payment, so you can’t take a payment of only after-tax contributions. However, if you
have pre-1987 after-tax contributions maintained in a separate account, a special rule may apply to determine whether the after-tax
contributions are included in the payment. In addition, special rules apply when you do a rollover, as described below.
You may roll over to an IRA a payment that includes after-tax contributions through either a direct rollover or a 60-day rollover. You
must keep track of the aggregate amount of the after-tax contributions in all of your IRAs (in order to determine your taxable income
for later payments from the IRAs). If you do a direct rollover of only a portion of the amount paid from the Plan and at the same time
the rest is paid to you, the portion rolled over consists first of the amount that would be taxable if not rolled over. For example, assume
you are receiving a payment of $12,000, of which $2,000 is after-tax contributions. In this case, if you directly roll over $10,000 to an
IRA that isn’t a Roth IRA, no amount is taxable because the $2,000 amount not rolled over is treated as being after-tax contributions.
If you do a direct rollover of the entire amount paid from the Plan to two or more destinations at the same time, you can choose which
destination receives the after-tax contributions.
Similarly, if you do a 60-day rollover to an IRA of only a portion of a payment made to you, the portion rolled over consists first of
the amount that would be taxable if not rolled over. For example, assume you are receiving a payment of $12,000, of which $2,000
is after-tax contributions, and no part of the payment is directly rolled over. In this case, if you roll over $10,000 to an IRA that isn’t
a Roth IRA in a 60-day rollover, no amount is taxable because the $2,000 amount not rolled over is treated as being after-tax contri-
butions.
You may roll over to an employer plan all of a payment that includes after-tax contributions, but only through a direct rollover (and
only if the receiving plan separately accounts for after-tax contributions and isn’t a governmental section 457(b) plan). You can do a
60-day rollover to an employer plan of part of a payment that includes after-tax contributions, but only up to the amount of the pay-
ment that would be taxable if not rolled over.
If you miss the 60-day rollover deadline
Generally, the 60-day rollover deadline can’t be extended. However, the IRS has authority to waive the deadline under certain extraor-
dinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline.
Under certain circumstances, you may claim eligibility for a waiver of the 60-day rollover deadline by making a written self-certifi-
cation. Otherwise, to apply for a waiver from the IRS, you must file a private letter ruling request with the IRS. Private letter ruling
requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions to Indi-
vidual Retirement Arrangements (IRAs), under the heading Rollovers.

February 2, 2026 508 Bulletin No. 2026–6
If your payment includes employer stock that you don’t roll over
If you don’t do a rollover, you can apply a special rule to payments of employer stock (or other employer securities) that are either
attributable to after-tax contributions or paid in a lump sum after separation from service (or after age 59½, disability, or the partic-
ipant’s death). Under the special rule, the net unrealized appreciation on the stock won’t be taxed when distributed from the Plan
and will be taxed at capital gain rates when you sell the stock. Net unrealized appreciation is generally the increase in the value of
employer stock after it was acquired by the Plan. If you do a rollover to an IRA or an employer plan for a payment that includes
employer stock (for example, by selling the stock and rolling over the proceeds within 60 days of the payment), the special rule relat-
ing to the distributed employer stock won’t apply to any later payments from the IRA or, generally, the plan. The Plan administrator
can tell you the amount of any net unrealized appreciation.
If you have an outstanding loan that is being offset
If you have an outstanding loan from the Plan, your Plan benefit may be offset by the outstanding amount of the loan (offset amount),
typically when your employment ends. The offset amount is treated as a distribution to you at the time of the offset, even though you
will not receive the offset amount. Generally, you may roll over all or any portion of the offset amount using other funds. Any offset
amount that isn’t rolled over will be taxed (including the 10% additional tax on early distributions, unless an exception applies). You
may roll over offset amounts to an IRA or an employer plan (if the terms of the employer plan permit the plan to receive plan loan
offset rollovers).
How long you have to complete the rollover depends on what kind of plan loan offset you have. If you have a qualified plan loan
offset, you will have until your tax return due date (including extensions) for the tax year during which the offset occurs to complete
your rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset because your employer plan terminates,
or because you separate from service. If your plan loan offset occurs for any other reason (such as a failure to make level loan repay-
ments that results in a deemed distribution), then you have 60 days from the date the offset occurs to complete your rollover.
If you receive a payment and you were born on or before January 1, 1936
If you were born on or before January 1, 1936, and receive a lump sum payment that you don’t roll over, special rules for calculating
the amount of the tax on the payment might apply to you. For more information, see IRS Publication 575, Pension and Annuity Income.
If your payment is from a governmental section 457(b) plan
If the Plan is a governmental section 457(b) plan, the same rules described elsewhere in this notice generally apply, allowing you
to roll over the payment to an IRA or an employer plan that accepts rollovers. One difference is that, if you don’t do a rollover, you
won’t have to pay the 10% additional tax on early distributions from the Plan even if you are under age 59½ (unless the payment is
from a separate account holding rollover contributions that were made to the Plan from a tax-qualified plan, a section 403(b) plan,
or an IRA). However, if you do a rollover to an IRA or to an employer plan that isn’t a governmental section 457(b) plan, a later
distribution made before age 59½ will be subject to the 10% additional tax on early distributions (unless an exception applies). Other
differences include that you can’t do a rollover if the payment is an “unforeseeable emergency” distribution, and that the special rules
under the sections “If your payment includes employer stock that you don’t roll over” and “If you were born on or before January 1,
1936” don’t apply.
If you are an eligible retired public safety officer and your payment is used to pay for health coverage or qualified long-term
care insurance
If the Plan is a governmental plan, you retired as a public safety officer, and your retirement was by reason of disability or was after
normal retirement age, you can exclude from your taxable income, not to exceed $3,000, the amounts, (1) that were paid by the Plan
directly to an insurer of health coverage or qualified long-term care insurance or (2) that were received by you from the Plan and used
to pay for premiums to an accident or health plan (or a qualified long-term care insurance contract) that your employer maintains for
you, your spouse, or your dependents. For this purpose, a public safety officer is a law enforcement officer, firefighter, chaplain, or
member of a rescue squad or ambulance crew.
If you roll over your payment to a SIMPLE IRA
You can only roll over a payment from the Plan to a SIMPLE IRA plan after the end of the 2-year period beginning on the date you
first participated in the SIMPLE IRA plan.

Bulletin No. 2026–6 509 February 2, 2026
If you roll over your payment to a Roth IRA
If you roll over a payment from the Plan to a Roth IRA (which, for purposes of this explanation, includes a Roth SIMPLE IRA), a
special rule applies under which the amount of the payment rolled over, reduced by any after-tax amounts, will be taxed. In general,
the 10% additional tax on early distributions won’t apply. However, if you take the amount rolled over out of the Roth IRA within the
5-year period that begins on January 1 of the year of the rollover, the 10% additional tax will apply on the amount includible in gross
income (unless an exception applies).
If you roll over the payment to a Roth IRA, you won’t have to take required minimum distributions from the Roth IRA during your
lifetime. Later payments from the Roth IRA that are qualified distributions won’t be taxed, including earnings after the rollover. A
qualified distribution from a Roth IRA is a payment made after you are age 59½ (or after your death or disability, or as a qualified
first-time homebuyer distribution of up to $10,000) and after you have had a Roth IRA for at least 5 years. In applying this 5-year
rule, you count from January 1 of the year for which your first contribution was made to a Roth IRA. Payments from the Roth IRA
that aren’t qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional tax on early
distributions (unless an exception applies). For more information, see IRS Publication 590-A, Contributions to Individual Retirement
Arrangements (IRAs), and IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).
If you roll over your payment to a designated Roth account in the Plan
You can’t roll over a payment to a designated Roth account in another employer’s plan. However, you can roll the payment over into
a designated Roth account in the distributing Plan. If you roll over a payment from the Plan to a designated Roth account in the Plan,
the amount of the payment rolled over, reduced by any after-tax amounts directly rolled over, will be taxed. In general, the 10% addi-
tional tax on early distributions won’t apply. However, if you take the amount rolled over out of the designated Roth account within
the 5-year period that begins on January 1 of the year of the rollover, the 10% additional tax will apply on the amount includible in
gross income (unless an exception applies).
If you roll over the payment to a designated Roth account in the Plan, you won’t have to take required minimum distributions from
the designated Roth account during your lifetime. Later payments from the designated Roth account that are qualified distributions
won’t be taxed, including earnings after the rollover. A qualified distribution from a designated Roth account is a payment made both
after you are age 59½ (or after your death or disability) and after you have had a designated Roth account in the Plan for at least 5
years. In applying this 5-year rule, you count from January 1 of the year of the first contribution to your designated Roth account.
However, if you made a direct rollover to a designated Roth account in the Plan from a designated Roth account in a plan of another
employer, the 5-year period begins on January 1 of the year you made the first contribution to the designated Roth account in the Plan
or, if earlier, to the designated Roth account in the plan of the other employer. Payments from the designated Roth account that aren’t
qualified distributions will be taxed to the extent of earnings after the rollover, including the 10% additional tax on early distributions
(unless an exception applies).
If you aren’t a Plan participant
Payments after death of the participant. If you receive a payment after the participant’s death that you don’t roll over, the payment
generally will be taxed in the same manner described elsewhere in this notice. However, the 10% additional tax on early distributions
and the special rules for public safety officers don’t apply, and the special rule described under the section “If you were born on or
before January 1, 1936” applies only if the deceased participant was born on or before January 1, 1936.
If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have
the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to
do a rollover to an IRA, you may treat the IRA either as your own or as an inherited IRA.
An IRA you treat as your own is treated like any other IRA of yours, so that payments made to you before you are age 59½ will
be subject to the 10% additional tax on early distributions (unless an exception applies) and required minimum distributions from
your IRA will be based on your age.
If you treat the IRA as an inherited IRA, payments from the IRA won’t be subject to the 10% additional tax on early distributions.
However, if the participant had started taking required minimum distributions from the Plan, required minimum distributions must
continue to be made from the inherited IRA. If the participant had not started taking required minimum distributions from the
Plan, distributions from the inherited IRA must begin when the participant would have been required to begin required minimum
distributions.

February 2, 2026 510 Bulletin No. 2026–6
If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death
and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to an
inherited IRA. Payments from the inherited IRA won’t be subject to the 10% additional tax on early distributions. You will have
to take required minimum distributions from the inherited IRA.
For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), and IRS Publication
590-B, Distributions from Individual Retirement Arrangements (IRAs).
Payments under a qualified domestic relations order (QDRO). If you are the spouse or former spouse of the participant who receives
a payment from the Plan under a QDRO, you generally have the same options and the same tax treatment that the participant would
have (for example, you may roll over the payment to your own IRA or an eligible employer plan that will accept it). However, pay-
ments under the QDRO won’t be subject to the 10% additional tax on early distributions.
For more information, see IRS Publication 504, Divorced or Separated Individuals.
If you are a nonresident alien
If you are a nonresident alien and you don’t do a direct rollover to a U.S. IRA or U.S. employer plan, instead of withholding 20%,
the Plan is generally required to withhold 30% of the payment for federal income taxes. If the amount withheld exceeds the amount
of tax you owe (as may happen if you do a 60-day rollover), you may request an income tax refund by filing IRS Form 1040NR, U.S.
Nonresident Alien Income Tax Return, and attaching your IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to With-
holding. See IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting
(Individuals), for claiming that you are entitled to a reduced rate of withholding under an income tax treaty. For more information,
see also IRS Publication 519, U.S. Tax Guide for Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and
Foreign Entities.
Other special rules
If a payment is one in a series of payments for less than 10 years, your choice whether to do a direct rollover will apply to all later
payments in the series (unless you make a different choice for later payments).
If your payments for the year are less than $200, not including payments from a designated Roth account in the Plan, the Plan isn’t
required to allow you to do a direct rollover and isn’t required to withhold federal income taxes. However, you may do a 60-day
rollover.
Unless you elect otherwise, a mandatory cashout of more than $1,000, not including payments from a designated Roth account in the
Plan, will be directly rolled over to an IRA chosen by the Plan administrator or the payor. A mandatory cashout is a payment from a
plan to a participant made before age 62 (or normal retirement age, if later) without the participant’s consent. Generally, a mandatory
cashout is only allowed if the participant’s benefit doesn’t exceed $7,000.
You may have the ability to repay certain distributions from your retirement plan. If you took a qualified reservist distribution, a qual-
ified disaster recovery distribution, a qualified birth or adoption distribution, an emergency personal expense distribution, a domestic
abuse victim distribution, or a terminal illness distribution, you generally may repay that distribution to an eligible retirement plan
within a certain time period. For more information on repayments of qualified reservist distributions, see IRS Publication 3, Armed
Forces’ Tax Guide. For more information on other repayments, see IRS Publication 575, Pension and Annuity Income, or consult a
professional tax advisor.
FOR MORE INFORMATION
You may wish to consult with the Plan administrator or payor, or a professional tax advisor, before taking a payment from the Plan.
Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575,
Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publica-
tion 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans
(403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

Bulletin No. 2026–6 511 February 2, 2026
For Payments From a
Designated Roth Account
YOUR OPTIONS FOR ELIGIBLE ROLLOVER DISTRIBUTIONS
You are receiving this notice because you are eligible to receive a payment from the [INSERT NAME OF PLAN] (the “Plan”) that
you can transfer (roll over) to a Roth IRA or designated Roth account in an employer plan. This notice is intended to help you decide
whether to roll over the payment (or some portion of it).
CONTENTS
GENERAL INFORMATION ABOUT ROLLOVERS
What can I do with an amount that is eligible for rollover?
How can a payment affect my taxes?
How can a rollover affect my taxes?
What types of retirement accounts and plans may accept my rollover?
How do I do a rollover?
How much may I roll over?
If I don’t do a rollover, will I have to pay the 10% additional tax on distributions before age 59½?
If I do a rollover to a Roth IRA, will the 10% additional tax apply to a later distribution from the IRA before age 59½?
Will I owe state income taxes?
SPECIAL RULES AND OPTIONS
If you miss the 60-day rollover deadline
If your payment includes employer stock that you don’t roll over
If you have an outstanding loan that is being offset
If you receive a payment and you were born on or before January 1, 1936
If your payment is from a governmental section 457(b) plan
If you are an eligible retired public safety officer and your payment is used to pay for health coverage or qualified long-term care
insurance
If you roll over your payment to a Roth SIMPLE IRA
If you aren’t a Plan participant
If you are a nonresident alien
If you receive a payment from a pension-linked emergency savings account
Other special rules
FOR MORE INFORMATION
GENERAL INFORMATION ABOUT ROLLOVERS
This notice describes the rollover rules that apply to payments from the Plan that are from a designated Roth account. If you also
receive a payment from the Plan that isn’t from a designated Roth account, you will be provided a different notice for that payment,
and the Plan administrator or the payor will tell you the amount that is being paid from each account.
Rules that apply to most payments from a designated Roth account are described in this “General Information About Rollovers” sec-
tion. Special rules that only apply in certain circumstances are described in the “Special Rules and Options” section, including rules
if your Plan is a governmental section 457(b) plan, you have after-tax contributions, or your benefit doesn’t exceed $7,000.
What can I do with an amount that is eligible for rollover?
When an amount payable (that is, an amount you are eligible to take as a payment from the Plan) is eligible for rollover, you generally
may choose some combination of the following:
• Leave it in the Plan, that is, do not take the payment,
• Roll it over into a designated Roth account in another plan,
• Roll it over into a Roth IRA, or
• Take it, don’t roll it over, and pay any required taxes.

February 2, 2026 512 Bulletin No. 2026–6
Whether these options are available to you depends on your circumstances and the terms of the Plan. For example, you may be
required to take a payment (and not roll it over) based on your age or if your benefit is below a certain threshold.
How can a payment affect my taxes?
After-tax contributions included in a payment from a designated Roth account aren’t taxed, but earnings might be taxed. The tax
treatment of earnings included in the payment depends on whether the payment is a qualified distribution. If a payment is only part of
your designated Roth account, the payment will include an allocable portion of the earnings in your designated Roth account.
If the payment from the Plan isn’t a qualified distribution and you don’t do a rollover to a Roth IRA or a designated Roth account in
an employer plan, you will be taxed on the portion of the payment that is earnings. If you are under age 59½, a 10% additional tax
on early distributions (generally, distributions made before age 59½) will also apply to the earnings (unless an exception applies).
If the payment from the Plan is a qualified distribution, you won’t be taxed on any part of the payment even if you don’t do a rollover.
A qualified distribution from a designated Roth account in the Plan is a payment made after you are age 59½ (or after your death or
disability) and after you have had a designated Roth account in the Plan for at least 5 years. In applying the 5-year rule, you count
from January 1 of the year the first contribution was made to the designated Roth account. However, if you did a direct rollover to
a designated Roth account in the Plan from a designated Roth account in another employer plan, your participation will count from
January 1 of the year the first contribution was made to the designated Roth account in the Plan or, if earlier, to the designated Roth
account in the other employer plan.
How can a rollover affect my taxes?
If the payment isn’t a qualified distribution and you do a rollover, you won’t have to pay taxes currently on the earnings and you won’t
have to pay taxes later on payments that are qualified distributions. If the payment is a qualified distribution and you do a rollover, you
won’t be taxed on the amount you roll over and any earnings on the amount you roll over won’t be taxed when paid later.
What types of retirement accounts and plans may accept my rollover?
You may roll over the payment to either a Roth IRA (a Roth individual retirement account or Roth individual retirement annuity) or
a designated Roth account in an employer plan (a tax-qualified plan, section 403(b) plan, or governmental section 457(b) plan) that
will accept the rollover. The rules of the Roth IRA or employer plan that holds the rollover will determine your investment options,
fees, and rights to payment from the Roth IRA or employer plan (for example, Roth IRAs cannot provide loans). Further, the amount
rolled over will become subject to the tax rules that apply to the Roth IRA or the designated Roth account in the employer plan. In
general, these tax rules are similar to those described elsewhere in this notice, but differences include:
• If you do a rollover to a Roth IRA, all of your Roth IRAs will be considered for purposes of determining whether you have sat-
isfied the 5-year rule (counting from January 1 of the year for which your first contribution was made to any of your Roth IRAs).
• If you do a rollover to a Roth IRA, you must keep track of the aggregate amount of the after-tax contributions in all of your Roth
IRAs (in order to determine your taxable income for later Roth IRA payments that aren’t qualified distributions).
• Eligible rollover distributions from a Roth IRA can only be rolled over to another Roth IRA.
How do I do a rollover?
There are two ways to do a rollover. You can either do a direct rollover or a 60-day rollover.
If you do a direct rollover, the Plan will make the payment directly to your Roth IRA or designated Roth account in an employer plan.
You should contact the Roth IRA sponsor or the administrator of the employer plan for information on how to do a direct rollover.
If you do a direct rollover of only a portion of the amount paid from the Plan and a portion is paid to you at the same time, the por-
tion directly rolled over consists first of earnings. For example, assume you are receiving a nonqualified distribution of $12,000, of
which $2,000 is earnings. In this case, if you directly roll over $10,000 to an IRA that is a Roth IRA, no amount is taxable because
the $10,000 amount rolled over includes the $2,000 in earnings and the remaining $2,000 paid to you is attributable to after-tax con-
tributions.
If you do a 60-day rollover, you will receive a payment from the Plan and then make a deposit (generally within 60 days) into a Roth
IRA, whether the payment is a qualified or nonqualified distribution. In addition, you can do a rollover by making a deposit within 60

Bulletin No. 2026–6 513 February 2, 2026
days into a designated Roth account in an employer plan if the payment is a nonqualified distribution and the rollover doesn’t exceed
the amount of the earnings in the payment. You can’t do a 60-day rollover to an employer plan of any part of a qualified distribution.
If you do a 60-day rollover and the payment isn’t a qualified distribution, the Plan is required to withhold 20% of the earnings for
federal income taxes (up to the amount of cash and property received other than employer stock). This means that, in order to roll over
the entire payment in a 60-day rollover to a Roth IRA, you must use other funds to make up for the amount withheld.
How much may I roll over?
You may roll over all or part of the amount eligible for rollover. Any payment from the Plan is eligible for rollover, except:
• Certain payments spread over a period of at least 10 years or over your life or life expectancy (or the joint lives or joint life
expectancies of you and your beneficiary);
• Required minimum distributions to a beneficiary;
• Hardship distributions;
• Payments of employee stock ownership plan (ESOP) dividends;
• Corrective distributions of contributions that exceeded tax law limitations;
• Loans treated as deemed distributions (for example, loans in default due to missed payments before your employment ends);
• Cost of life insurance paid by the Plan;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
• Amounts treated as distributed because of a prohibited allocation of S corporation stock under an ESOP;
• Distributions used to pay certain premiums for health and accident insurance; and
• Amounts treated as distributed as a result of the purchase of a collectible.
The Plan administrator or the payor can tell you what portion of a payment is eligible for rollover.
If I don’t do a rollover, will I have to pay the 10% additional tax on distributions before age 59½?
If a payment isn’t a qualified distribution and you are under age 59½, you will have to pay the 10% additional tax on early distri-
butions with respect to the earnings allocated to the payment that you don’t roll over (including amounts withheld for income tax),
unless one of the exceptions listed below applies. This tax is in addition to the regular income tax on the earnings not rolled over.
The 10% additional tax doesn’t apply to the following payments from the Plan:
• Payments made after you separate from service if you are at least age 55 in the year of the separation;
• Payments that start after you separate from service if paid at least annually in equal or close to equal amounts over your life or
life expectancy (or the joint lives or joint life expectancies of you and your beneficiary);
• Payments from a governmental plan made after you separate from service as a qualified public safety employee and, in the year
of separation, have reached age 50 or 25 years of service under the Plan;
• Payments from a private-sector plan made after you separate from service as a private-sector firefighter and, in the year of sepa-
ration, have reached age 50 or 25 years of service under the Plan;
• Payments made due to disability;
• Payments made after your death;
• Payments of ESOP dividends;
• Corrective distributions of contributions that exceed tax law limitations;
• Cost of life insurance paid by the Plan;
• Payments made directly to the government to satisfy a federal tax levy;
• Payments made under a qualified domestic relations order (QDRO);
• Payments from a defined contribution plan that are qualified birth or adoption distributions;
• Payments from a defined contribution plan for purposes of meeting unforeseeable or immediate financial needs relating to per-
sonal or family emergency expenses (emergency personal expense distributions);
• Payments to a victim of domestic abuse from a defined contribution plan that isn’t subject to the qualified joint survivor annuity
or qualified preretirement survivor annuity rules (domestic abuse victim distributions);
• Payments after you receive a certification from a physician that you have a terminal illness (terminal illness distributions);
• Payments that are qualified disaster recovery distributions;
• Payments made from a defined contribution plan that are qualified long-term care distributions;

February 2, 2026 514 Bulletin No. 2026–6
• Payments up to the amount of your deductible medical expenses (without regard to whether you itemize deductions for the tax-
able year);
• Certain payments made while you are on active duty if you were a member of a reserve component called to duty after September
11, 2001, for more than 179 days;
• Payments of certain automatic enrollment contributions that you request to withdraw within 90 days of your first contribution;
and
• Payments from a pension-linked emergency savings account.
For more information about the 10% additional tax and the exceptions to the 10% additional tax, see IRS Publication 575, Pension
and Annuity Income, under the heading Tax on Early Distributions. For information on how to claim an exception, see the Instructions
for IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
If I do a rollover to a Roth IRA, will the 10% additional tax apply to a later distribution from the Roth IRA before age 59½?
If you receive a payment from a Roth IRA when you are under age 59½, you will have to pay the 10% additional tax on early dis-
tributions on the earnings paid from the Roth IRA, unless an exception applies or the payment is a qualified distribution. In general,
the exceptions to the 10% additional tax for early distributions from a Roth IRA listed above are the same as the exceptions for early
distributions from a designated Roth account in an employer plan. However, there are a few differences for payments from a Roth
IRA, including:
• The exception for payments from a plan made after you separate from service if you are at least age 55 in the year of the sep-
aration (or the earlier of age 50 or attainment of 25 years of service under the Plan for qualified public safety employees and
private-sector firefighters) doesn’t apply to payments from an IRA;
• The exception for payments made pursuant to a QDRO under a plan doesn’t apply to an IRA (although a special rule applies
under which, as part of a divorce or separation agreement, a tax-free transfer may be made directly to a Roth IRA of a spouse or
former spouse); and
• The exception for substantially equal periodic payments from a plan also applies to payments from an IRA but without regard to
whether you have had a separation from service.
Also, there are exceptions to the 10% additional tax that do not apply to payments from a plan but that do apply to payments from a
Roth IRA, including:
• Payments for qualified higher education expenses;
• Payments up to $10,000 used in a qualified first-time home purchase; and
• Payments for health insurance premiums after you have received unemployment compensation for 12 consecutive weeks (or
would have been eligible to receive unemployment compensation but for self-employed status).
For more general information about the 10% additional tax and the exceptions to the 10% additional tax on payments from an IRA,
see the Instructions to IRS Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts. See
also, IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs), under the heading Early Distributions.
Will I owe state income taxes?
This notice doesn’t address any state or local income tax rules (including withholding rules).
SPECIAL RULES AND OPTIONS
If you miss the 60-day rollover deadline
Generally, the 60-day rollover deadline can’t be extended. However, the IRS has authority to waive the deadline under certain extraor-
dinary circumstances, such as when external events prevented you from completing the rollover by the 60-day rollover deadline.
Under certain circumstances, you may claim eligibility for a waiver of the 60-day rollover deadline by making a written self-certifi-
cation. Otherwise, to apply for a waiver from the IRS, you must file a private letter ruling request with the IRS. Private letter ruling
requests require the payment of a nonrefundable user fee. For more information, see IRS Publication 590-A, Contributions to Indi-
vidual Retirement Arrangements (IRAs), under the heading Rollovers.

Bulletin No. 2026–6 515 February 2, 2026
If your payment includes employer stock that you don’t roll over
If you receive a payment that isn’t a qualified distribution and you don’t roll it over, you can apply a special rule to payments of
employer stock (or other employer securities) that are paid in a lump sum after separation from service (or after age 59½, disability,
or the participant’s death). Under the special rule, the net unrealized appreciation on the stock included in the earnings in the pay-
ment won’t be taxed when distributed to you from the Plan and will be taxed at capital gain rates when you sell the stock. If you do a
rollover to a Roth IRA or a designated Roth account in another employer plan for a nonqualified distribution that includes employer
stock (for example, by selling the stock and rolling over the proceeds within 60 days of the distribution), you won’t have any taxable
income and the special rule relating to the distributed employer stock won’t apply to any later payments from the Roth IRA or, gen-
erally, the plan. Net unrealized appreciation is generally the increase in the value of the employer stock after it was acquired by the
Plan. The Plan administrator can tell you the amount of any net unrealized appreciation.
If you receive a payment that is a qualified distribution that includes employer stock and you don’t roll it over, your basis in the stock
(used to determine gain or loss when you later sell the stock) will equal the fair market value of the stock at the time of the payment
from the Plan.
If you have an outstanding loan that is being offset
If you have an outstanding loan from the Plan, your Plan benefit may be offset by the outstanding amount of the loan (offset amount),
typically when your employment ends. The offset amount is treated as a distribution to you at the time of the offset. Generally, you
may roll over all or any portion of the offset amount. If the distribution attributable to the offset isn’t a qualified distribution and you
don’t roll over the offset amount, you will be taxed on any earnings included in the distribution (including the 10% additional tax on
early distributions, unless an exception applies). You may roll over the earnings included in the loan offset to a Roth IRA or desig-
nated Roth account in an employer plan (if the terms of the employer plan permit the plan to receive plan loan offset rollovers). You
may also roll over the full amount of the offset to a Roth IRA.
How long you have to complete the rollover depends on what kind of plan loan offset you have. If you have a qualified plan loan
offset, you will have until your tax return due date (including extensions) for the tax year during which the offset occurs to complete
your rollover. A qualified plan loan offset occurs when a plan loan in good standing is offset because your employer plan terminates,
or because you separate from service. If your plan loan offset occurs for any other reason (such as a failure to make level repayments
that results in a deemed distribution), then you have 60 days from the date the offset occurs to complete your rollover.
If you receive a payment and you were born on or before January 1, 1936
If you were born on or before January 1, 1936, and receive a lump sum payment that isn’t a qualified distribution and that you don’t
roll over, special rules for calculating the amount of the tax on the earnings in the payment might apply to you. For more information,
see IRS Publication 575, Pension and Annuity Income.
If your payment is from a governmental section 457(b) plan
If the Plan is a governmental section 457(b) plan, the same rules described elsewhere in this notice generally apply, allowing you to
roll over the payment to a Roth IRA or a designated Roth account in an employer plan that accepts rollovers. One difference is that,
if you receive a payment that isn’t a qualified distribution and you don’t roll it over, you won’t have to pay the 10% additional tax
on early distributions with respect to the earnings allocated to the payment that you don’t roll over, even if you are under age 59½
(unless the payment is from a separate account holding rollover contributions that were made to the Plan from a tax-qualified plan,
a section 403(b) plan, or an IRA). However, if you do a rollover to a Roth IRA or to a designated Roth account in an employer plan
that isn’t a governmental section 457(b) plan, a later distribution that isn’t a qualified distribution made before age 59½ will be sub-
ject to the 10% additional tax on earnings allocated to the payment (unless an exception applies). Other differences include that you
can’t do a rollover if the payment is an “unforeseeable emergency” distribution and that the special rules under the sections “If your
payment includes employer stock that you don’t roll over” and “If you receive a nonqualified distribution and you were born on or
before January 1, 1936” don’t apply.
If you are an eligible retired public safety officer and your payment is used to pay for health coverage or qualified long-term
care insurance
If the Plan is a governmental plan, you retired as a public safety officer, and your retirement was by reason of disability or was after
normal retirement age, you can exclude from your taxable income, up to a maximum of $3,000 annually, nonqualified distributions

February 2, 2026 516 Bulletin No. 2026–6
(1) that were paid by the Plan directly to an insurer of health coverage or qualified long-term care insurance or (2) that were received
by you from the Plan and used to pay for premiums to an accident or health plan (or a qualified long-term care insurance contract)
that your employer maintains for you, your spouse, or your dependents. For this purpose, a public safety officer is a law enforcement
officer, firefighter, chaplain, or member of a rescue squad or ambulance crew.
If you roll over your payment to a Roth SIMPLE IRA
You can only roll over a payment from the Plan to a Roth SIMPLE IRA plan after the end of the 2-year period beginning on the date
you first participated in the Roth SIMPLE IRA plan.
If you aren’t a Plan participant
Payments after death of the participant. If you receive a payment after the participant’s death that you don’t roll over, the payment
generally will be taxed in the same manner described elsewhere in this notice. However, whether the payment is a qualified distribu-
tion generally depends on when the participant first made a contribution to the designated Roth account in the Plan. Also, the 10%
additional tax on early distributions and the special rules for public safety officers don’t apply, and the special rule described under
the section “If you receive a nonqualified distribution and you were born on or before January 1, 1936” applies only if the deceased
participant was born on or before January 1, 1936.
If you are a surviving spouse. If you receive a payment from the Plan as the surviving spouse of a deceased participant, you have
the same rollover options that the participant would have had, as described elsewhere in this notice. In addition, if you choose to
do a rollover to a Roth IRA, you may treat the Roth IRA either as your own or as an inherited Roth IRA.
A Roth IRA you treat as your own is treated like any other Roth IRA of yours, so that you won’t have to take any required min-
imum distributions during your lifetime and earnings paid to you in a nonqualified distribution before you are age 59½ will be
subject to the 10% additional tax on early distributions unless an exception applies.
If you treat the Roth IRA as an inherited Roth IRA, payments from the Roth IRA won’t be subject to the 10% additional tax on
early distributions. An inherited Roth IRA is subject to required minimum distributions.
If you are a surviving beneficiary other than a spouse. If you receive a payment from the Plan because of the participant’s death
and you are a designated beneficiary other than a surviving spouse, the only rollover option you have is to do a direct rollover to
an inherited Roth IRA. Payments from the inherited Roth IRA, even if made in a nonqualified distribution, won’t be subject to
the 10% additional tax on early distributions. You will have to take required minimum distributions from the inherited Roth IRA.
For more information, see IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs), and IRS Publication
590-B, Distributions from Individual Retirement Arrangements (IRAs).
Payments under a qualified domestic relations order (QDRO). If you are the spouse or a former spouse of the participant who receives
a payment from the Plan under a QDRO, you generally have the same options and the same tax treatment that the participant would
have (for example, you may roll over the payment to your own Roth IRA or to a designated Roth account in an eligible employer
plan that will accept it).
For more information, see IRS Publication 504, Divorced or Separated Individuals.
If you are a nonresident alien
If you are a nonresident alien, the payment isn’t a qualified distribution, and you don’t do a direct rollover to a U.S. Roth IRA or
designated Roth account in a U.S. employer plan, the Plan is generally required to withhold 30% (instead of withholding 20%) of
the earnings for federal income taxes. If the amount withheld exceeds the amount of tax you owe (as may happen if you do a 60-day
rollover), you may request an income tax refund by filing IRS Form 1040NR, U.S. Nonresident Alien Income Tax Return, and attach-
ing your IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding. See IRS Form W-8BEN, Certificate of
Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals), for claiming that you are entitled
to a reduced rate of withholding under an income tax treaty. For more information, see also IRS Publication 519, U.S. Tax Guide for
Aliens, and IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Bulletin No. 2026–6 517 February 2, 2026
If you receive a payment from a pension-linked emergency savings account
In general, if you receive a payment from a pension-linked emergency savings account (PLESA), the rules for other payments from
a designated Roth account apply. However, several special rules apply to payments from PLESAs. First, all payments from PLESAs
are treated as qualified distributions, even if, for example, the payment is made before you reach age 59½ and before you have had a
PLESA for at least 5 years. Second, if you terminate employment or your employer terminates your PLESA, you may elect, in addi-
tion to your usual rollover options, to roll over all or part of your PLESA into another designated Roth account in the Plan.
Other special rules
If a payment is one in a series of payments for less than 10 years, your choice whether to do a direct rollover will apply to all later
payments in the series (unless you make a different choice for later payments).
If your payments for the year (only including payments from the designated Roth account in the Plan) are less than $200, the Plan
isn’t required to allow you to do a direct rollover and isn’t required to withhold federal income taxes. However, you can do a 60-day
rollover.
Unless you elect otherwise, a mandatory cashout from the designated Roth account in the Plan of more than $1,000 will be directly
rolled over to a Roth IRA chosen by the Plan administrator or the payor. A mandatory cashout is a payment from a plan to a partici-
pant made before age 62 (or normal retirement age, if later) without the participant’s consent. Generally, a mandatory cashout is only
allowed if the participant’s benefit doesn’t exceed $7,000.
You may have the ability to repay certain distributions from your retirement plan. If you took a qualified reservist distribution, a qual-
ified disaster recovery distribution, a qualified birth or adoption distribution, an emergency personal expense distribution, a domestic
abuse victim distribution, or a terminal illness distribution, you generally may repay that distribution to an eligible retirement plan
within a certain time period. For more information on repayments of qualified reservist distributions, see IRS Publication 3, Armed
Forces’ Tax Guide. For more information on other repayments, see IRS Publication 575, Pension and Annuity Income, or consult a
professional tax advisor.
FOR MORE INFORMATION
You may wish to consult with the Plan administrator or payor, or a professional tax advisor, before taking a payment from the Plan.
Also, you can find more detailed information on the federal tax treatment of payments from employer plans in: IRS Publication 575,
Pension and Annuity Income; IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs); IRS Publica-
tion 590-B, Distributions from Individual Retirement Arrangements (IRAs); and IRS Publication 571, Tax-Sheltered Annuity Plans
(403(b) Plans). These publications are available from a local IRS office, on the web at www.irs.gov, or by calling 1-800-TAX-FORM.

February 2, 2026 518 Bulletin No. 2026–6
Part IV
U.S.-Spain Competent
Authority Arrangement
Regarding Treaty
Arbitration Clause
Announcement 2026-3
The following is a copy of the Compe-
tent Authority Arrangement entered into
by the competent authorities of the United
States of America and the Kingdom of
Spain, with respect to the implementa-
tion of the arbitration process provided
for in paragraphs 5 and 6 of Article 26
of the Convention between the Kingdom
of Spain and the United States of Amer-
ica for the Avoidance of Double Taxation
and the Prevention of Fiscal Evasion with
respect to Taxes on Income, and its Pro-
tocol, signed at Madrid on February 22,
1990 (“the Convention” and “the Proto-
col”), as amended by the Protocol signed
January 14, 2013 (“the 2013 Protocol”)
and the Memorandum of Understanding
accompanying the 2013 Protocol.
The text of the Competent Authority
Arrangement is as follows:
IMPLEMENTING ARRANGEMENT
REGARDING PARAGRAPHS 5 AND
6 OF ARTICLE 26 OF THE CONVEN-
TION BETWEEN THE KINGDOM OF
SPAIN AND THE UNITED STATES
OF AMERICA FOR THE AVOID-
ANCE OF DOUBLE TAXATION AND
THE PREVENTION OF FISCAL EVA-
SION WITH RESPECT TO TAXES
ON INCOME, AND ITS PROTOCOL,
SIGNED AT MADRID ON FEBRU-
ARY 22, 1990 AS AMENDED BY THE
PROTOCOL SIGNED JANUARY 14,
2013 AND THE MEMORANDUM OF
UNDERSTANDING ACCOMPANY-
ING THE 2013 PROTOCOL WHICH
FORMS AN INTEGRAL PART OF
THE CONVENTION
The competent authorities of Spain
and the United States of America have
established this arrangement (hereinaf-
ter referred to as the “Arrangement”) to
implement the arbitration process pro-
vided for in paragraphs 5 and 6 of Arti-
cle 26 of the Convention between the
Kingdom of Spain and the United States
of America for the Avoidance of Double
Taxation and the Prevention of Fiscal
Evasion with respect to Taxes on Income,
and its Protocol, signed at Madrid on Feb-
ruary 22, 1990 (hereinafter referred to as
“the Convention” and “the Protocol”), as
amended by the Protocol signed January
14, 2013 (hereinafter referred to as “the
2013 Protocol”) and the Memorandum of
Understanding accompanying the 2013
Protocol which forms an integral part of
the Convention.
Subject to certain exceptions described
in paragraph III, this arbitration process
applies to cases that the competent author-
ities of Spain and the United States have
determined are suitable for assistance
under the mutual agreement procedure
of Article 26 of the Convention in accor-
dance with published guidance, in the
case of Spain, Royal Decree 1794/2008
of 3 November, or any amendment or suc-
cessor provisions thereof, and in the case
of the United States, Revenue Procedure
2015-40, or any amendment or successor
provisions thereof.
This Arrangement is adopted in accor-
dance with subparagraph (g) of paragraph
6 of Article 26 of the Convention.
Both competent authorities intend to fol-
low the procedures in this Arrangement in
good faith, and ensure that the presenter of
the case and the arbitrators follow the pro-
cedures in this Arrangement in good faith.
I. Definitions and General Matters
A. “MAP” is the abbreviation for the
Mutual Agreement Procedure pro-
ceedings, which are proceedings of
the competent authorities under Arti-
cle 26 of the Convention.
B. The term “Concerned Person” means
the presenter of a case to a compe-
tent authority for consideration under
Article 26 of the Convention and all
other persons, if any, whose tax liabil-
ity to either Contracting State may be
directly affected by a mutual agree-
ment arising from that consideration.
C. The “Commencement Date” for a
case is the earliest date on which
the information necessary to under-
take substantive consideration for a
mutual agreement has been received
by both competent authorities. The
Commencement Date should be
determined in accordance with para-
graph IV.
II. Cases Eligible for Arbitration
A. According to paragraphs 5 and 6 of
Article 26 of the Convention, arbitra-
tion should be available where:
1. the case has been presented to the
competent authority of the Con-
tracting State of which the pre-
senter is a resident or national on
the basis that the actions of one
or both of the Contracting States
have resulted for that person in
taxation not in accordance with
the provisions of the Convention,
and the competent authorities
have endeavoured but are unable
to reach an agreement to resolve
the case; and
2. all the requirements prescribed
in paragraphs 5 and 6 of Article
26 of the Convention and in this
Arrangement are satisfied.
B. In determining whether arbitration is
available for a case, it is understood
that:
1. for the purpose of paragraph 5 of
Article 26 of the Convention, an
action of either Contracting State
that has resulted in taxation not
in accordance with the provisions
of the Convention includes a
Notice of Proposed Adjustment,
a Notification of the Adminis-
trative Act of Assessment, or in
the case of taxes at source, a pay-
ment or withholding of tax;
2. the fact that tax collection proce-
dures may have been suspended
during MAP should not affect a
determination that taxation not in
accordance with the provisions
of the Convention has resulted

Bulletin No. 2026–6 519 February 2, 2026
from the actions of one or both
Contracting States; and
3. the fact that there have been
discussions between the com-
petent authorities regarding tax
years of a Concerned Person in
connection with a request for
an Advance Pricing Agreement
should not preclude a MAP pro-
ceeding under Article 26 of the
Convention, including the pos-
sible application of paragraphs
5 and 6, following a Notice of
Proposed Adjustment, a Notifi-
cation of the Administrative Act
of Assessment, or in the case of
taxes at source, a payment or
withholding of tax, regarding
those tax years.
III. Cases Not Eligible for Arbitration
According to paragraphs 5 and 6 of Article
26 of the Convention, arbitration should
not be available:
A. for non-taxpayer specific cases;
B. for a case for which both competent
authorities have decided that the case
is not suitable for resolution through
arbitration and have notified the pre-
senter of the case of such decision
before the date on which arbitration
proceedings would otherwise have
begun;
C. for a case if a decision with respect
to such case has been rendered by a
court or administrative tribunal of
either Contracting State;
D. for a case concerning the application
of paragraph 3 of Article 4 (Resi-
dence) of the Convention; or
E. for the elimination of double taxation
in cases not provided for in the Con-
vention.
IV. Commencement Date
A. The term “information necessary to
undertake substantive consideration
for a mutual agreement” in subpara-
graph (b) of paragraph 6 of Article 26
of the Convention means:
1. in the United States, the infor-
mation required to be submitted
to the Internal Revenue Service
under section 3 (Procedures
for Filing Competent Authority
Requests) of Revenue Procedure
2015-40 (or any applicable sub-
sequent guidance); and
2. in Spain, the information is that
which would be required under
Article 9 of the Royal Decree
1794/2008 of 3 November (or
any applicable subsequent guid-
ance).
B. Both competent authorities should
confirm to each other the date on
which all the information referred
to in this paragraph was received by
both competent authorities, i.e., the
Commencement Date of a case.
C. Once the Commencement Date of a
case has been confirmed by both com-
petent authorities under subparagraph
B, the competent authority to whom
that case has been presented under
paragraph 1 of Article 26 of the Con-
vention should notify the presenter of
the case of that date.
V. Request for Submission of Case to
Arbitration
A. An arbitration proceeding with
respect to a case should begin on
a date (hereinafter referred to as
the “Date Arbitration Proceedings
Begin”) as identified according to
subparagraph (c) of paragraph 6 of
Article 26 of the Convention. The
Date Arbitration Proceedings Begin
with respect to a case is the latest of:
1. two years after the Commence-
ment Date of that case, unless
both competent authorities have
decided on a different date and
notified the presenter of the case
(as provided in subparagraphs E
and F);
2. the date upon which the pre-
senter of the case to a competent
authority of a Contracting State
has submitted a written request
to that competent authority for
a resolution of the case through
arbitration, in the format speci-
fied in subparagraph B;
3. the date upon which all Con-
cerned Persons and their autho-
rized representatives or agents
agree in writing not to disclose to
any other person any information
received during the course of
the arbitration proceeding from
either Contracting State or the
arbitration panel, other than the
determination of such panel, as
provided for in subparagraph C;
and
4. the date on which all legal actions
or suits pending before the courts
of either Contracting State con-
cerning any issue involved in the
case are suspended or withdrawn
as applicable under the laws of
the Contracting State in which
such legal actions or suits are
pending.
B. A request for arbitration must be
made in writing and accompanied by
the documents described in subpara-
graph C. Any request for arbitration
made prior to the date established in
clause 1 of subparagraph A should not
be accepted.
C. The request for arbitration must be
accompanied by:
1. sufficient information to identify
the case;
2. a written confirmation that no
decision with respect to such
case has already been rendered
by a court or administrative tri-
bunal of either Contracting State;
3. written statements regarding
confidentiality as required in
clause 3 of subparagraph A from
all the Concerned Persons and
their authorized representatives
or agents according to the for-
mats specified by both competent
authorities; and
4. written agreements from all Con-
cerned Persons authorizing the
release of information relating to
the case to non-tax administra-
tion personnel insofar as is neces-
sary to reach and implement the
arbitration panel determination
according to the formats speci-
fied by the competent authorities.
D. After the receipt of the request for
arbitration, the competent authority
who received it should immediately
inform the other competent authority
of the fact that the request was sub-
mitted and send a copy of the request
and the accompanying information
and statements within 10 days to the
other competent authority.

February 2, 2026 520 Bulletin No. 2026–6
E. According to clause (i) of subpara-
graph (c) of paragraph 6 of Article
26 of the Convention, both com-
petent authorities may decide in
appropriate situations that the Date
Arbitration Proceedings Begin with
respect to a case should be earlier or
later than what it would have been
without such decision. Such appro-
priate situations could be, for exam-
ple, where the competent authorities
are close to reaching a mutual agree-
ment to resolve the case or where
they are certain they cannot reach
an agreement, where there has been
a delay by a Concerned Person in
providing information in the MAP of
the case, where MAP is suspended
by a request from the presenter of
the case, or where a Concerned Per-
son has provided significant new
information after the Commence-
ment Date of the case. Unless other-
wise decided between the competent
authorities, the competent authori-
ties should make the decision by the
later date of:
1. two years after the Commence-
ment Date of the case; or
2. the date when the request for
arbitration is received by at least
one competent authority.
F. If both competent authorities decide
the Date Arbitration Proceedings
Begin with respect to a case under
subparagraph E, then the competent
authority to whom that case has been
presented should immediately notify
the presenter of the case of the date so
decided.
G. If both competent authorities deter-
mine that the case is not suitable
for resolution through arbitration,
the competent authority to whom
that case has been presented should
immediately notify the presenter of
the case of that determination.
VI. Confidentiality
According to subparagraph (e) of para-
graph 5 and clause (iii) of subparagraph
(c) of paragraph 6 and subparagraphs (e)
and (f) of paragraph 6 of Article 26 of the
Convention, the confidentiality of a case
is expected to be maintained in the follow-
ing manner:
A. All Concerned Persons and their
authorized representatives or agents
must agree, when the request for
arbitration is submitted, not to dis-
close to any other person (except
other Concerned Persons) any infor-
mation received during the course of
the arbitration proceeding from either
competent authority or the arbitration
panel, other than the determination of
the panel.
B. For purposes of an arbitration pro-
ceeding under paragraphs 5 and 6
of Article 26 of the Convention, the
members of the arbitration panel
(hereinafter referred to as “arbitra-
tors”) and their staffs should be con-
sidered to be “persons or authorities”
to whom information may be dis-
closed under Article 27 of the Con-
vention.
C. No information relating to an arbitra-
tion proceeding (including the deter-
mination of the arbitration panel)
may be disclosed by the competent
authorities, except as permitted by the
Convention and the domestic laws of
the Contracting States. In addition, all
material prepared in the course of, or
relating to, an arbitration proceeding
should be considered to be informa-
tion exchanged between the compe-
tent authorities pursuant to Article 27
of the Convention.
D. Both competent authorities should
ensure that all arbitrators (and any
of their staff which are expected to
assist them in carrying on the arbi-
tration), prior to their acting in an
arbitration proceeding, agree in the
form(s) specified by both compe-
tent authorities not to disclose any
information relating to an arbitration
proceeding (including the determi-
nation of the arbitration panel), and
to abide by and be subject to the con-
fidentiality and nondisclosure provi-
sions of Article 27 of the Convention
and similar provisions of relevant
domestic laws of the Contracting
States. However, the arbitrators or
their staff are expected to disclose
the determination of the arbitration
panel to the competent authorities. In
the event those provisions conflict,
the most restrictive condition should
apply.
VII. Eligibility of Arbitrators
A. According to subparagraph (a) of
paragraph 21 of the Protocol, in order
for an individual to be eligible as an
arbitrator:
1. the individual is not an employee
nor has been an employee within
the twelve-month period prior to
the Date Arbitration Proceedings
Begin of the tax administration,
the Treasury Department, or
Ministry of Finance of the Con-
tracting State which identifies
him or her;
2. the individual does not have any
prior involvement with the spe-
cific matters at issue in the arbi-
tration proceeding for which he
or she is being considered as an
arbitrator; and
3. in addition, the individual who
is expected to serve as the chair
of the arbitration panel (hereinaf-
ter “the Chair”) is not a national,
citizen or lawful permanent resi-
dent of either Contracting State.
B. Both competent authorities should
each prepare and exchange a list of
individuals who may be eligible and
are willing to serve as the Chair. The
competent authorities should prepare
and exchange such list every two
years or more often as necessary.
C. Both competent authorities should
ensure that the staff person of an arbi-
trator meets the same requirements
described in subparagraph A.
VIII. Appointment of Arbitrators
A. According to subparagraph (a) of
paragraph 21 of the Protocol, the
arbitration panel should consist of
three individual members.
B. Each competent authority should
select one arbitrator to the arbitra-
tion panel by sending a copy of the
form(s) identified in subparagraph D
of paragraph VI, signed by the arbi-
trator, to the other competent author-
ity within 60 days after the Date Arbi-
tration Proceedings Begin.
C. In the event that the competent author-
ity fails to make such selection in the
manner and within the time period
in subparagraph B, the other compe-

Bulletin No. 2026–6 521 February 2, 2026
tent authority should, within 90 days
after the Date Arbitration Proceed-
ings Begin, select a second arbitrator
from the list of possible Chair persons
prepared in accordance with subpara-
graph B of paragraph VII.
D. The procedure in subparagraph C
should not apply, where the failure of
such selection within the time period
in subparagraph B is due to the fact
that an individual who had agreed to
serve as an arbitrator becomes unable
to serve because of circumstances
outside of his or her control (for
example, death, serious illness or nat-
ural disaster). Both competent author-
ities should determine the appropriate
time period for the selection of an
arbitrator in such a case.
E. Within 60 days after the latter appoint-
ment of the two initial arbitrators
who were selected by the competent
authorities under subparagraphs B, C,
and D (hereinafter referred to as “two
initial arbitrators”), the two initial
arbitrators so appointed should select
a third arbitrator, who should serve as
the Chair. The two initial arbitrators
should contact each other to discuss
the selection of the third arbitrator
who should serve as Chair within 5
business days after the latter appoint-
ment of the two initial arbitrators.
The third arbitrator so selected should
inform both competent authorities of
his or her appointment as soon as pos-
sible. In order to help the two initial
arbitrators make that selection, the
competent authorities should provide
the two initial arbitrators with a con-
sensus list of individuals derived from
the list described in subparagraph B
of paragraph VII (that is, candidates
to be the Chair) who appear to be
best qualified to decide the case under
consideration.
F. If the two initial arbitrators fail to
select the third arbitrator in the man-
ner and within the time period in sub-
paragraph E, the two initial arbitrators
should be dismissed, and each com-
petent authority should select a new
arbitrator of the arbitration panel.
G. The procedure in subparagraph F
should not apply, where the failure of
such selection within the time period
in subparagraph E is due to the fact
that the individual selected to serve
as Chair becomes unable to serve
because of circumstances outside of
his or her control (for example, death,
serious illness or natural disaster). In
such a case, unless otherwise decided,
both competent authorities should
provide the two initial arbitrators with
a revised consensus list of candidates
to be Chair within 20 days after the
end of the period in subparagraph
E. The two initial arbitrators should
select a third arbitrator from among
the candidates so proposed within
10 days after the receipt of the list of
candidates.
H. The arbitrators should be selected
from individuals who:
1. satisfy the eligibility require-
ments identified in subparagraph
A of paragraph VII at the time
of accepting an appointment
to serve, and are reasonably
expected to remain so during
the entire Arbitration Proceeding
and for a reasonable time there-
after; and
2. have significant experience in
international tax matters (he or
she need not, however, have
experience as either a judge or
arbitrator).
I. An arbitrator should be deemed
appointed on the date on which he or
she signs the agreements required by
subparagraph D of paragraph VI.
J. Where one of the two initial arbitra-
tors becomes ineligible for service as
an arbitrator or for any other reason
it is necessary to replace an arbitra-
tor after the arbitrator was appointed,
the competent authority who had
selected that individual should select
a replacement as soon as possible and
no later than 60 days after the posi-
tion becomes vacant.
K. Where the third arbitrator (the Chair)
becomes ineligible for service as an
arbitrator or for any other reason it is
necessary to replace the Chair after he
or she was appointed, the two initial
arbitrators should select a replace-
ment as soon as possible and no
later than 30 days after the position
becomes vacant.
L. If any arbitrator is unable to fulfill his
or her duties, the competent authori-
ties should consult with the remaining
panel members to determine a new
timetable, if necessary.
M. Should it come to light that an arbitra-
tor (including the Chair) has a conflict
of interest which would prevent that
arbitrator’s original appointment, the
arbitrator must recuse himself or her-
self from consideration of the case and
inform both competent authorities.
In such cases if an arbitrator has not
already recused himself or herself, the
competent authority who had selected
the individual may remove him or her,
informing the other competent author-
ity and the Chair. If it is the Chair who
has not recused himself or herself, he
or she can be removed by decision of
both competent authorities, informing
the two initial arbitrators.
IX. Procedures and Terms of Reference
A. As soon as possible after the Date
Arbitration Proceedings Begin, both
competent authorities should develop
a brief Statement of Information
which should identify the Concerned
Persons and contain a general descrip-
tion of the proposed adjustments or
similar issues to be resolved in a case.
The competent authority, or an arbi-
trator appointed by the competent
authority, may disclose the Statement
of Information, if the confidentiality
of the information is ensured by first
obtaining a Nondisclosure Statement
of Candidate to be an Arbitrator (see,
e.g., Attachment 5 to this Arrange-
ment) and such disclosure is permitted
by the law of the Contracting State,
to a potential arbitrator of the case to
check whether that person satisfies the
eligibility requirements identified in
subparagraph A of paragraph VII.
B. Both competent authorities should
undertake to develop, within sixty
(60) days after the Date Arbitra-
tion Proceedings Begin, a mutually
decided “Terms of Reference” for a
case to include:
1. a description of the relevant busi-
ness activities of the Concerned
Persons;
2. a description of the adjustments
or similar issues in dispute in the
case;

February 2, 2026 522 Bulletin No. 2026–6
3. a description of the matters to be
considered for the resolution of
the case, including identification
of all matters in the case previ-
ously decided between the com-
petent authorities; and
4. a description of the final position
taken by each competent author-
ity in the negotiation of the unre-
solved matters which prevent the
mutual agreement between the
competent authorities.
The competent authorities may also
provide logistical or procedural infor-
mation in the Terms of Reference.
C. The Terms of Reference should be
communicated to the Chair on the
date his or her appointment is com-
municated to both competent authori-
ties, or as soon thereafter as possible.
D. If the Terms of Reference has not
been completed by the date for sub-
mission of the proposed resolutions
and position papers, both competent
authorities should send to each other
and to the Chair their most recent
written proposals for the Terms of
Reference along with their proposed
resolutions and position papers. All
the matters identified as unresolved
in these draft Terms of References
should be treated as unresolved for
the purpose of the subsequent pro-
ceedings.
E. According to subparagraph (c) of
paragraph 21 of the Protocol, each
of the competent authorities should
be permitted to submit a proposed
resolution, not to exceed five pages,
addressing each adjustment or similar
issue raised in a case. Such proposed
resolution should be a resolution of
the entire case, and should reflect,
without modification, all matters in
the case previously decided between
both competent authorities. Such pro-
posed resolution should be limited
to a disposition of specific monetary
amounts (for example, income, profit,
gain or expense) or, where specified,
the maximum rate of tax charged
pursuant to the Convention, for each
adjustment or similar issue in the
case, based on the application of the
Convention to the case. Each of the
competent authorities should also
be permitted to submit a supporting
position paper, not to exceed 30 pages
plus annexes, for consideration by the
arbitration panel.
F. The submission of a proposed reso-
lution and supporting position paper
by the competent authority should
be made by posting it (or similarly
sending via express delivery service)
to the Chair within 60 days after the
appointment of the Chair. Unless
alternative arrangements are made,
the Chair should in turn send a copy
of each competent authority’s pro-
posed resolution and supporting posi-
tion paper to the other panel members
and the other competent authority
within 5 days after the receipt of the
later submission by the panel. If the
competent authority submits a pro-
posed resolution (and supporting
position paper) within the allotted
time and chooses to submit a trans-
lation of the proposed resolution (and
supporting position paper) in the offi-
cial language of the other Contracting
State, the submission of the transla-
tion should be made by posting it to
the Chair within 90 days after the
appointment of the Chair.
G. In the event that only one of the com-
petent authorities submits a proposed
resolution within the allotted time,
then that proposed resolution should
be deemed to be the determination of
the arbitration panel in that case.
H. According to subparagraph (f) of
paragraph 21 of the Protocol, each
of the competent authorities should
be permitted to submit a reply sub-
mission, not to exceed 10 pages, plus
annexes, to the arbitration panel in
order to address any points raised by
the proposed resolution or supporting
position paper submitted by the other
competent authority. In this reply
submission, the competent authority
may also comment upon any Pre-
senter Position Paper submitted under
the provisions of paragraph X. If the
competent authority exercises its
option to also comment upon a Pre-
senter Position Paper, its reply sub-
mission should not exceed 20 pages,
plus annexes. The submission of a
reply submission by the competent
authority should be made by posting
it (or similarly sending it via express
delivery service) to the Chair within
120 days of appointment of the Chair.
Unless alternative arrangements are
made, the Chair should send a copy
of each competent authority’s reply
submission paper to the other panel
members and the other competent
authority within 5 days of receipt of
the later reply by the panel. If the
competent authority submits a reply
submission within the allotted time
and chooses to submit a translation
of the reply submission in the offi-
cial language of the other Contracting
State, the submission of the transla-
tion should be made by posting it to
the Chair within 150 days after the
appointment of the Chair.
I. In a particular case, both competent
authorities may decide to use a differ-
ent presentation or page limitation for
the proposed resolutions, supporting
position papers or reply submissions,
such as is provided in paragraphs XV
and XVI.
J. Any annex to a supporting position
paper or reply submission must be a
document previously made available
for both competent authorities to use
in negotiation. Any factual informa-
tion used in a supporting position
paper or reply submission must be
what was contained in a document
previously made available for both
competent authorities to use in nego-
tiation, or otherwise reflect informa-
tion widely available to the general
public.
K. Except with respect to the final posi-
tion taken by the other competent
authority as described in clause 4 of
subparagraph B of paragraph IX, the
competent authority should only be
permitted to refer to a proposal for
resolution made by either competent
authority during negotiations if that
proposal is submitted to the arbitra-
tion panel for consideration as a pro-
posed resolution.
L. Within 90 days after receipt of the pro-
posed resolutions from both compe-
tent authorities, the arbitration panel
may ask both competent authorities
in writing for additional information.
Such additional information may be
submitted to the arbitration panel only
at its request, and should be provided

Bulletin No. 2026–6 523 February 2, 2026
within 90 days after the request. If the
competent authority submits addi-
tional information within the allotted
time and chooses to submit a transla-
tion of the additional information in
the official language of the other Con-
tracting State, the submission of the
translation should be provided within
90 days after the request. Copies of
the arbitration panel’s request and
the competent authority’s response
should be provided to the other com-
petent authority on the date on which
the request or the response is submit-
ted. If the panel requests informa-
tion or analyses that have not previ-
ously been available or considered
for purposes of the negotiation, the
competent authorities should consult
with each other to determine how to
respond to the panel’s request. The
panel should not request additional
information from the presenter of the
case.
M. Unless otherwise decided between
both competent authorities and the
Chair, the competent authorities
should send to the Chair four copies
of each document submitted to the
arbitration panel, for distribution to
the other panel members and other
competent authority.
N. Unless otherwise decided between
both competent authorities, any infor-
mation (including any information
provided by the presenter of a case or
his or her authorized representatives
or agents in writing or orally) that
was not available to both competent
authorities before the Date Arbitra-
tion Proceedings Begin should not be
taken into account for purposes of the
arbitration decision. Furthermore, any
reply submission or any additional
information that was provided to the
panel after the deadlines specified in
subparagraphs H and L respectively
should not be taken into account for
purposes of the arbitration decision.
O. To the extent needed, the arbitration
panel may adopt any additional pro-
cedures necessary for the conduct of
its business, provided that the proce-
dures are not inconsistent with any
provision of Article 26 of the Con-
vention, paragraphs 18 and 21 of
the Protocol or this Arrangement or
any other procedural rules decided
between both competent authori-
ties. If the arbitration panel adopts
any additional procedures, the Chair
should provide a written copy of them
to the competent authorities.
X. Participation of the Person Who
Requested the Arbitration
A. According to subparagraph (g) of
paragraph 21 of the Protocol, the pre-
senter of a case is permitted to submit
for consideration by the arbitration
panel a paper setting forth its analysis
and views of the case (a “Presenter
Position Paper”) by transmitting it to
the competent authority of which the
presenter is resident within 30 days
after a request for arbitration made in
conformance with the provisions of
paragraph V.
B. Both competent authorities should
advise the presenter that the Presenter
Position Paper should not exceed 30
pages, plus annexes. The information,
positions, arguments, or analyses
contained in the Presenter Position
Paper must have been previously pre-
sented, and any annexes must be doc-
uments previously made available, to
both competent authorities for their
consideration prior to the beginning
of arbitration. The competent author-
ities may decide a specific format, on
a case-by-case basis, for the Presenter
Position Paper.
C. The competent authority which
receives the Presenter Position Paper
should coordinate distribution of the
copies with the Chair and other the
competent authority immediately.
That competent authority may ask the
presenter of the case to submit addi-
tional copies as necessary.
XI. Communication
A. Before the Chair is appointed, both
competent authorities should send
any correspondence concurrently to
both arbitrators. After the Chair is
appointed, unless otherwise decided
between the Chair and competent
authorities, the competent authorities
should send any correspondence to
the Chair. Similarly, the Chair should
send any correspondence concur-
rently to the competent authorities.
B. Except for administrative or logisti-
cal matters, no competent authority
should have any ex parte communi-
cations with an arbitrator.
C. All communication, except for logis-
tical matters, between both compe-
tent authorities and the arbitration
panel should be in writing. Written
communication by facsimile or email
is allowed, however, no information
that may identify the taxpayer(s)
may be included in an email unless
other security precautions to protect
taxpayer information are decided
upon by both competent authorities.
Express mail or air mail should be
used for all correspondence other
than that sent via facsimile or email.
D. The arbitrators may communicate by
telephone, videoconference, facsim-
ile or face-to-face meetings. Arbi-
trators may communicate by email;
however, they must not include any
taxpayer information in the email.
E. No substantive discussion should be
done, unless all arbitrators are present
(physically or remotely).
F. No arbitrator should have communi-
cations regarding the issues or mat-
ters before the arbitration panel with
the presenter of the case, the taxpay-
ers involved in the case, or their rep-
resentatives during or subsequent to
the arbitration process.
XII. Costs and Logistical
Arrangements
A. According to subparagraph (j) of
paragraph 21 of the Protocol, the
fees and expenses of the arbitrators,
as well as any costs incurred in con-
nection with the proceeding by the
Contracting States, should be borne
equitably by the Contracting States in
the following manner:
1. each competent authority of the
Contracting States should bear
the cost of its selected arbitrator
and its own expenses, and
2. the cost of the Chair and other
expenses associated with the
conduct of the proceedings
should be borne by the competent
authorities in equal shares. The

February 2, 2026 524 Bulletin No. 2026–6
term “other expenses associated
with the conduct of the proceed-
ings” does not include indirect
costs incurred for any logistical
arrangements described in sub-
paragraph D.
B. The fees and expenses of members
of the arbitration panel should be set
in accordance with the International
Centre for Settlement of Investment
Disputes (ICSID) Schedule of Fees
for arbitrators, as in effect on the
Date Arbitration Proceedings Begin.
This applies in particular for hotel,
meals, travel expenses, and inciden-
tal costs.
C. Neither competent authority should
charge any Concerned Person for
costs associated with arbitration.
D. Unless otherwise decided by both
competent authorities, the compe-
tent authority to which a case giving
rise to the arbitration was initially
presented should be responsible for
the logistical arrangements for any
face-to-face meetings of the arbi-
tration panel and should provide the
administrative personnel necessary
for the support of such meetings. The
administrative personnel so provided
should report only to the Chair con-
cerning any matter related to that pro-
cess. In the event that both competent
authorities have received a MAP
request, the competent authority the
actions of which resulted in taxation
not in accordance with the provisions
of the Convention should carry out
the logistical arrangements described
in this subparagraph. The competent
authority responsible for the logisti-
cal arrangements may arrange meet-
ing facilities in a location that min-
imizes the panel’s travel time and
expenses. Each competent authority
may arrange a meeting in the other’s
meeting facilities, as needed.
E. In general, each arbitrator should
be compensated for no more than
seven days of work on the arbitration
(e.g., five days of preparation and
for two meeting days). If the arbitra-
tors feel they require additional time
to properly consider the case, the
Chair should contact both competent
authorities to request additional time.
Both competent authorities anticipate
that panel members should be able to
perform their duties without the use
of staff. Both competent authorities
should not compensate a staff mem-
ber of an arbitrator.
F. As a general rule, both competent
authorities should encourage the arbi-
tration panel to complete their joint
consideration of the case through
telecommunications. The Chair must
obtain approval from both compe-
tent authorities prior to incurring any
expenses relating to a face-to-face
meeting.
XIII. Arbitration Panel Determination
A. Within 180 days after the appoint-
ment of the Chair (or, where sub-
paragraph J or K of paragraph VIII
applies, unless otherwise decided by
both competent authorities, within
180 days after the appointment of
the new arbitrator), the Chair should
transmit the written determination
of the arbitration panel, concurrently
to each competent authority. This
period may be extended up to 270
days where subparagraph L of para-
graph IX applies. As soon as possible
after the receipt of the determination,
the competent authority to which the
request for arbitration was submitted
should write to the presenter of the
case to request whether that person
accepts the determination.
B. In the event that the determination
has not been communicated to both
competent authorities within the
period provided for in subparagraph
A, the competent authorities should
consult to determine whether to
extend the period for the arbitration
panel to transmit a determination, or
to dismiss the panel and appoint new
arbitrators in accordance with para-
graph VIII.
C. Issues should be decided by the arbi-
trators in accordance with the Con-
vention and applicable rules of inter-
national law.
D. According to subparagraph (d) of
paragraph 6 of Article 26 of the Con-
vention, unless the presenter of the
case does not accept the determina-
tion of the arbitration panel, such
determination should constitute a
resolution by mutual agreement of
the entire case under Article 26 of the
Convention at the time it is timely
accepted by the presenter and be
binding on both Contracting States.
E. A mutual agreement that results
from the determination of an arbi-
tration panel should be implemented
notwithstanding any time limits or
procedural limitations in the law of
the Contracting States, concluded
through an exchange of letters, and
implemented as expeditiously as pos-
sible in the same manner as a mutual
agreement that results from a negoti-
ated mutual agreement.
F. The determination of the arbitration
panel should be decided on the basis
of a majority vote.
G. The arbitration panel should not
determine the treatment of any asso-
ciated interest or penalties; rather that
treatment should be determined under
the respective taxation laws of the
Contracting States.
H. According to subparagraph (h) of
paragraph 21 of the Protocol:
1. The arbitration panel should
deliver a determination in writ-
ing to both competent authori-
ties.
2. The determination of the arbi-
tration panel should be limited
to one of the proposed resolu-
tions submitted by the competent
authorities for each adjustment
or similar issue and any thresh-
old questions, and should not
include a rationale or any other
explanation of the determination.
3. The determination of the arbi-
tration panel has no precedential
value with respect to the appli-
cation of the Convention in any
other case.
I. According to subparagraph (i) of
paragraph 21 of the Protocol:
1. Unless both competent author-
ities decide to provide a longer
time period, the presenter of the
case should have 45 days after
receiving the determination of
the arbitration panel to notify, in
writing, the competent authority
to whom the case was presented,
of his or her acceptance of the
determination.

Bulletin No. 2026–6 525 February 2, 2026
2. If the presenter of the case fails
to so advise the relevant compe-
tent authority, the determination
should be considered not to be
accepted.
3. In the event the case is pending
in litigation or appeal, the deter-
mination of the arbitration panel
should be considered not to be
accepted by the presenter of the
case if any Concerned Person
who is a party to the litigation or
appeal does not withdraw from
consideration by the relevant
court or administrative tribu-
nal, within the same timeframe
described above, the issues
resolved in the arbitration pro-
ceeding.
4. Where the determination of the
arbitration panel is not accepted,
the case should be closed and
should not be eligible for any
subsequent further consideration
by the competent authorities.
XIV. Terminating Proceedings
A. According to subparagraph (b) of
paragraph 21 of the Protocol, the
arbitration proceeding and MAP with
respect to a case should terminate if at
any time before the arbitration panel
delivers a determination to the com-
petent authorities:
1. the competent authorities reach a
mutual agreement to resolve the
case;
2. the presenter of the case with-
draws the request for arbitration;
3. any Concerned Person, or any of
their representatives or agents,
wilfully violates the written state-
ment of nondisclosure referred to
in clause (iii) of subparagraph (c)
of paragraph 6 of Article 26 of
the Convention, and both com-
petent authorities decide that
such violation should result in
the termination of the arbitration
proceeding; or
4. any Concerned Person initiates
a legal action or suit before the
courts of either Contracting State
concerning any issue involved in
the case, unless such legal action
or suit is suspended according to
the applicable laws of the Con-
tracting State.
B. If the arbitration proceeding and MAP
with respect to the case is terminated
under clauses 2, 3 or 4 of subpara-
graph A, both competent authorities
should exchange letters to close the
MAP case unagreed.
C. If a taxpayer terminates an arbitra-
tion proceeding by withdrawing its
request for assistance, the taxpayer
should not be allowed access to the
competent authority procedures for
the same matter and same years.
D. At the termination of any proceed-
ing each arbitrator must immediately
destroy all documents or other infor-
mation received from either compe-
tent authority, or that otherwise reflect
the considerations or discussions of
the arbitration panel, and delete all
information that may be stored on
any computer, personal data assistant
or other electronic device or media.
XV. Multiple Adjustments
A. According to subparagraph (e) of
paragraph 21 of the Protocol, where
an arbitration proceeding concerns
a case comprising multiple adjust-
ments or similar issues each requir-
ing a disposition of specific monetary
amounts (for example, of income,
profit, gains or expense) or where
specified, the maximum rate of tax
charged pursuant to the Convention,
the proposed resolution may propose
a separate disposition for each adjust-
ment or similar issue.
B. Unless both competent authorities
decide upon a different presentation
to the arbitration panel, the proposed
resolution and supporting position
paper in such a case should address
each adjustment separately, within
the overall page limitation.
C. The arbitration panel should make
a determination on each adjustment
or similar issue separately. Thus,
the final determination of the arbi-
tration panel may be comprised of a
proposed resolution from the com-
petent authority on one adjustment
and a proposed resolution from the
other competent authority on another
adjustment.
XVI. Permanent Establishment,
Residency, and Other Threshold
Questions
A. According to subparagraph (d) of
paragraph 21 of the Protocol, in the
case of an arbitration proceeding con-
cerning:
1. the taxation of an individual with
respect to whom the competent
authorities have been unable
to reach a mutual agreement
regarding the Contracting State
of which the individual is a res-
ident;
2. the taxation of the business prof-
its of an enterprise with respect
to which the competent authori-
ties have been unable to reach a
mutual agreement on whether a
permanent establishment exists;
or
3. such other issues the determina-
tion of which are contingent on
resolution of similar threshold
questions;
the competent authorities may
submit proposed resolutions sep-
arately addressing the relevant
threshold questions as described
in clause 1, 2 or 3 above (for
example, the question of whether
a permanent establishment
exists), and the contingent deter-
minations (for example, the
determination of the amount of
profit attributable to such perma-
nent establishment).
B. In such a case, the competent author-
ity is allowed to submit a proposed
resolution and supporting position
paper which addresses each issue
separately, taking alternative posi-
tions as appropriate. For example,
the competent authority is allowed
to take a position that no permanent
establishment exists in one proposed
resolution, and to propose an amount
of business profit to be attributable to
a permanent establishment in another
proposed resolution in case the arbi-
tration panel determines that a perma-
nent establishment exists.
C. The arbitration panel should make a
determination on the threshold ques-
tion and the contingent determination
separately.

February 2, 2026 526 Bulletin No. 2026–6
XVII. Timeframes
A. Notwithstanding the above para-
graphs, in an exceptional case both
competent authorities may decide to
utilize different procedural periods.
B. Both competent authorities should
confirm the period so extended and
notify the Concerned Person in each
Contracting State of that extended
period in writing.
XVIII: Miscellaneous
A. In computing the days necessary for
an action in this Arrangement, the
day when the event beginning this
computation occurred should not be
counted.
B. Any due date that falls upon a week-
end or holiday for either competent
authority should be extended to the
next calendar day which is a business
day for both competent authorities.
XIX. Coordination with Protocol Entry
into Force
A. As provided in section 3 of Article
XV of the 2013 Protocol, “paragraphs
5 and 6 of Article 26 (Mutual Agree-
ment Procedure) of the Convention
shall not have effect with respect to
cases that are under consideration by
the competent authorities of the Con-
tracting States on the date on which
this Protocol enters into force [i.e.,
on or before November 27, 2019].
With respect to cases that come
under consideration by the competent
authorities after the date on which
this Protocol enters into force [i.e.,
November 27, 2019], the provisions
of paragraphs 5 and 6 of Article 26
of the Convention, as amended by
this Protocol, shall have effect on the
date on which the competent author-
ities agree in writing on a mode of
application pursuant to subparagraph
(g) of paragraph 6 of Article 26. For
cases that come under consideration
by the competent authorities of the
Contracting States after entry into
force of this Protocol [i.e., November
27, 2019], but before such provisions
have effect, the [C]ommencement
[D]ate shall be the date on which the
competent authorities have agreed in
writing on a mode of application.”
B. Both competent authorities may mod-
ify or supplement this Arrangement
by an exchange of letters between
them.
For the Competent Authority of For the Competent Authority of
the United States of America: the Kingdom of Spain:
___________________________ _____________________________
for Holly O. Paz Maria José Garde Garde
Commissioner, Large Business and Director-General of
International Division, Taxation at the Ministry of Finance
Internal Revenue Service
November 20, 2025 December 12, 2025
___________________________ _____________________________
Date: Date:

Bulletin No. 2026–6 527 February 2, 2026
Attachment 1
TAXPAYER [REQUEST AND]
1
NONDISCLOSURE STATEMENT FOR MAP ARBITRATION
_______________________________________________________________
NAME OF TAXPAYER
_______________________________________________________________
ADDRESS
_______________________________________________________________
CITY STATE COUNTRY POSTAL CODE (ZIP CODE)
The above-named taxpayer hereby [requests and] consents to the competent authorities of the United States and Spain undertaking an
arbitration proceeding described in paragraphs 5 and 6 of Article 26 (Mutual Agreement Procedure) of the Convention Between the
Kingdom of Spain and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with
Respect to Taxes on Income, and its Protocol signed at Madrid, on February 22, 1990, as amended by the Protocol signed January 14,
2013 and the Memorandum of Understanding accompanying the 2013 Protocol, as necessary in order to reach a mutual agreement
under Article 26 regarding the request filed with the [United States/Spain] Competent Authority on [date] .
This consent and nondisclosure statement also covers the following concerned persons
2
that the taxpayer has the legal authority to
bind:
[Enter name and address of each such concerned person. If none, enter “Not Applicable.”]
The following concerned persons, if any, are not covered by this consent and nondisclosure statement (and therefore must submit a
separate consent and nondisclosure statement on their own behalf):
[Enter name and address of each such concerned person. If none, enter “Not Applicable.”]
In making this consent, the taxpayer and, if applicable, each of the concerned persons covered by this consent and nondisclosure state-
ment, agrees not to disclose to any person (other than the taxpayer’s authorized representative or agent, another concerned person,
its authorized representative or agent, or one of the competent authorities or its authorized representative
3
) any information received
during the course of the arbitration proceeding from either Contracting State or the arbitration panel, other than the determination of
such panel.
The following persons are all of the representatives or agents of the taxpayer or, if applicable, the specified concerned person, who
have been authorized to assist the taxpayer or specified concerned person in the mutual agreement procedure to which this consent
and nondisclosure statement applies. Attached to this consent and nondisclosure statement are the nondisclosure statements of each
of these representatives and agents, as is required by paragraph 6 of Article 26 of the above-mentioned Convention.
[Enter name and address of each such representative or agent and the concerned person(s) for which each is acting. If none, enter
“Not Applicable.”]
The information, positions, arguments, or analyses contained in any position paper submitted for consideration of the arbitration
panel will be previously presented, and any annexes to such position paper will be documents previously made available, to both
competent authorities for their consideration during negotiations prior to the beginning of arbitration.
1
A taxpayer may make a request for MAP arbitration in a separate letter, but must make its nondisclosure statement in this form.
2
As defined in the relevant treaty provisions, the term “concerned person” means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 26
and any other person whose tax liability to either the United States or Spain may be directly affected by the mutual agreement arising from that request. A concerned person that has the legal
authority to bind any other concerned person(s) on this matter may do so in a comprehensive statement.
3
The U.S. Competent Authority has authorized the International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association, to act on its behalf with respect to
certain designated matters concerning the arbitration proceeding.

February 2, 2026 528 Bulletin No. 2026–6
[Under penalties of perjury,]
4
I declare that I have examined this consent and nondisclosure statement and any accompanying attach-
ments and to the best of my knowledge and belief, they are true, correct, and complete. Furthermore, I certify that I have the legal
authority to execute this consent and nondisclosure statement on behalf of each concerned person covered by it and to bind each
concerned person to its terms.
_________________________________________
Date Signature
_________________________________________
Printed Name
_________________________________________
Position
4
Only in the United States.

Bulletin No. 2026–6 529 February 2, 2026
Attachment 2
NONDISCLOSURE STATEMENT OF TAXPAYER’S AUTHORIZED REPRESENTATIVE
I hereby agree that neither I nor any member of my firm’s office staff nor any other person who may assist me or the firm in the mutual
agreement proceeding requested in the letter of [date] submitted by [name of taxpayer] to the competent authorities of the
United States and Spain will disclose to any person (other than the taxpayer, another concerned person,
1
its authorized representative
or agent, or one of the competent authorities or its authorized representative
2
) any information received during the course of the arbi-
tration proceeding from either Contracting State or the arbitration panel, other than the determination of such panel.
_________________________________________
Date Signature
_________________________________________
Printed Name
_________________________________________
Position
1
As defined in the relevant treaty provisions, the term “concerned person” means the taxpayer requesting mutual agreement procedure assistance from a competent authority under the Article
26 of the Convention Between the Kingdom of Spain and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes
on Income, and its Protocol signed at Madrid, on February 22, 1990, as amended by the Protocol signed January 14, 2013 and the Memorandum of Understanding accompanying the 2013
Protocol, and any other person whose tax liability to either the United States or Spain may be directly affected by the mutual agreement arising from that request.
2
The U.S. Competent Authority has authorized the International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association to act on its behalf with respect to
certain designated matters concerning the arbitration proceeding.

February 2, 2026 530 Bulletin No. 2026–6
Attachment 3
TAXPAYER AUTHORIZATION TO DISCLOSE TAX INFORMATION FOR PURPOSES OF TREATY MAP
ARBITRATION PROCEEDINGS
_______________________________________________________________
NAME OF TAXPAYER
_______________________________________________________________
ADDRESS
_______________________________________________________________
CITY STATE COUNTRY POSTAL CODE (ZIP CODE)
The above-named taxpayer, in accordance with its request of [date] that the competent authorities of the United States and Spain under-
take an arbitration proceeding described in paragraphs 5 and 6 of Article 26 of the Convention Between the Kingdom of Spain and the
United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income, and
its Protocol signed at Madrid, on February 22, 1990, as amended by the Protocol signed January 14, 2013 and the Memorandum of Under-
standing accompanying the 2013 Protocol, consents to the disclosure by the competent authorities of Spain and the United States of any and
all returns and return information with respect to the taxpayer’s mutual agreement procedure (MAP) request submitted to the competent
authorities on [date] , to the individuals appointed (or identified for potential appointment pending clearance) by the respective competent
authorities to arbitrate the MAP case, the individual appointed (or identified for potential appointment pending clearance) as the Chair of
the arbitration panel, and the following representatives, if any, of the respective competent authorities who are authorized by the competent
authority to act on its behalf with respect to certain designated matters concerning the arbitration proceeding:
In the case of the United States: International Centre for Dispute Resolution (ICDR), a division of the American Arbitration Association
In the case of Spain: _________________________________________.
In the case of a consolidated group of U.S. corporations, this consent is made in regard to all such information concerning the follow-
ing members of the consolidated group, who are the subjects of the mutual agreement request:
[Enter name and address of each consolidated group member, if any, who is a concerned person.
1
If none, enter “Not Applicable.”]
I certify that I have the legal authority to execute a request for or consent to disclose a return or return information to disclose infor-
mation to third parties (as described in Treas. Reg. §301.6103(c)-1(e)(4)) and I hereby make this consent on behalf of the taxpayer,
including each of the members of the consolidated group listed above.
2
_________________________________________
Date Signature
_________________________________________
Printed Name
_________________________________________
Position
1
As defined in the relevant treaty provisions, the term “concerned person” means the taxpayer requesting mutual agreement procedure assistance from a competent authority under Article 26
and any other person whose tax liability to either the United States or Spain may be directly affected by the mutual agreement arising from that request.
2
Each taxpayer or concerned person (as defined in footnote 1) whose U.S. tax liability may be directly affected by the mutual agreement procedure request must sign a consent. In the case
of a consolidated group (as defined in Treas. Reg. 1.1502-1(h)), a person authorized by law to act for the common parent should execute the consent on behalf of the group. See Treas. Reg.
§1.1502-77(a).

Bulletin No. 2026–6 531 February 2, 2026
Attachment 4
DECLARATION OF ARBITRATOR
In the matter of the Mutual Agreement Procedure case under Article 26 of the Convention Between the Kingdom of Spain and the
United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on
Income, and its Protocol signed at Madrid, on February 22, 1990 as amended by the Protocol signed January 14, 2013 (Convention)
and the Memorandum of Understanding accompanying the 2013 Protocol involving the following Concerned Persons:
[Names and Addresses of taxpayers that will be directly affected by the decision]
Paragraphs 5 and 6 of Article 26 (Mutual Agreement Procedure) of the Convention, paragraphs 18 and 21 of the Protocol to that
Convention, and the Implementing Arrangement between the Competent Authorities of Spain and the United States (Implementing
Arrangement) provide rules and procedures under which the Spain – U.S. arbitration process (the Proceeding) will operate.
I certify that I can serve impartially in this case, meet the conditions of paragraph VII.A of the Implementing Arrangement at this
time, and shall remain independent of the Contracting States and Concerned Persons during the entire arbitration proceeding and
for a reasonable period of time thereafter.
Past or existing facts or circumstances that might be likely to give rise to justifiable doubts as to my impartiality or independence, if
any, are identified in an Attachment to this Declaration.
Notwithstanding such relationships and interests, if any, I believe that I can be impartial and can exercise independent judgment in
making my decisions in the Proceeding and thus to the best of my knowledge and belief, there is no reason why I should not serve as
an Arbitrator with respect to the above-noted case.

If, at any stage during the Proceeding, any new fact or circumstance arises that
might give rise to such doubts, I shall promptly disclose such fact or circumstance to both competent authorities.
I understand that with regard to any information received from International Centre for Dispute Resolution, a division of the Amer-
ican Arbitration Association, the Spanish administration, and the U.S. Internal Revenue Service in connection with the Proceeding,
I and my staff, if any, are considered to be among the “persons or authorities” involved in the administration of taxes covered by
Article 27 (Exchange of Information) of the Convention. I and my staff agree to abide by and be subject to the confidentiality and
nondisclosure provisions of Articles 26 [MAP] and 27 [EOI] of the Convention and the applicable domestic laws of Spain and the
United States concerning the confidentiality of tax information. In the event those provisions conflict, the most restrictive condition
shall apply. I confirm that I have the legal authority to bind my staff in this matter and will ensure they are aware of their obligations
regarding confidentiality and non-disclosure. In particular, I agree that I may not disclose any information relating to the Proceeding,
except as permitted by the Convention and the domestic laws of Spain and the United States. In addition, all material received and
prepared in the course of, or relating to the Proceeding shall be considered to be information exchanged between the Spain and the
United States and shall be destroyed in accordance with paragraph XIV.D of the Implementing Arrangement referenced above.
[Under penalties of perjury]
1
I hereby accept appointment as an Arbitrator in this case, and will fairly decide the matters in contro-
versy between the Competent Authorities of Spain and the United States in accordance with the Convention and the related agree-
ments referred to above. I declare that these statements and any accompanying attachments are, to the best of my knowledge and
belief, true, correct, and complete.
_________________________________________
Date Signature
_________________________________________
Printed Name
_________________________________________
Address
Sworn before me this __________ day of ________, 20___
1
Only in the United States.

February 2, 2026 532 Bulletin No. 2026–6
Attachment 5
NONDISCLOSURE STATEMENT OF CANDIDATE TO BE AN ARBITRATOR
This nondisclosure statement is provided in order to consider the acceptance of an appointment as an arbitrator in the matter of the
Mutual Agreement Procedure case number # (hereinafter referred to as the Proceeding) under Article 26 of the Convention between
the Kingdom of Spain and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion
with Respect to Taxes on Income, and its Protocol signed at Madrid, on February 22, 1990 as amended by the Protocol signed January
14, 2013 (Convention) and the Memorandum of Understanding accompanying the 2013 Protocol.
I hereby agree that I will not disclose to any person (other than the other appointed arbitrators or one of the competent authorities)
any information received with respect to the Proceeding in order to verify whether I satisfy the eligibility requirements of arbitrators
and to certify that I can serve impartially in this case, meeting the conditions of paragraph VII.A of the Implementing Arrangement
between the Competent Authorities of Spain and the United States.
I agree to abide by and be subject to the confidentiality and nondisclosure provisions in the applicable domestic laws of Spain and
the United States concerning the confidentiality of tax information. In the event those provisions conflict, the most restrictive con-
dition shall apply. In particular, I agree that I may not disclose any information relating to the Proceeding, except as permitted by
the Convention and the domestic laws of Spain and the United States. In addition, all material received and prepared in the course
of, or relating to the Proceeding shall be considered to be information exchanged between Spain and the United States and shall be
destroyed in accordance with paragraph XIV.D of the Implementing Arrangement referenced above.
I declare that these statements and any accompanying attachments are, to the best of my knowledge and belief, true, correct, and
complete.
_________________________________________
Date Signature
_________________________________________
Printed Name
_________________________________________
Position

Bulletin No. 2026–6 533 February 2, 2026
Correction to Announcement 2000-80, 2000-40 I.R.B. 320-321
Announcement 2026-4
Announcement 2000-80, 2000-40 I.R.B. 320-321 provides an outdated and incorrect phone number in the section labelled TOLL-
FREE NUMBER FOR THE APPEALS OFFICER (CUSTOMER SERVICE/OUTREACH) PROGRAM. This phone number is for
Customer Service/Outreach. The current IRS Independent Office of Appeals customer service phone number is (855) 865-3401.

Bulletin No. 2026–6 i February 2, 2026
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus,
if an earlier ruling held that a principle
applied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is
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.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the 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.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations
to show that the previous published rul-
ings will not be applied pending some
future action such as the issuance of new
or amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in
material published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.
—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

February 2, 2026 ii Bulletin No. 2026–6
Numerical Finding List
1
Bulletin 2026–6
Announcements:
2026-01, 2026-04 I.R.B. 402
2026-02, 2026-05 I.R.B. 447
2026-03, 2026-06 I.R.B. 518
2026-04, 2026-06 I.R.B. 533
Notices:
2026-2, 2026-02 I.R.B. 304
2026-3, 2026-02 I.R.B. 307
2026-5, 2026-02 I.R.B. 309
2026-6, 2026-02 I.R.B. 313
2026-1, 2026-04 I.R.B. 365
2026-8, 2026-04 I.R.B. 368
2026-10, 2026-04 I.R.B. 378
2026-11, 2026-06 I.R.B. 491
2026-12, 2026-06 I.R.B. 496
2026-13, 2026-06 I.R.B. 499
Proposed Regulations:
REG-101952-24, 2026-03 I.R.B. 345
REG-110519-25, 2026-03 I.R.B. 353
REG-132251-11; REG-134219-08,
2026-03 I.R.B. 358
REG-103430-24, 2026-05 I.R.B. 447
REG-112829-25, 2026-05 I.R.B. 452
REG-113515-25, 2026-05 I.R.B. 455
Revenue Procedures:
2026-1, 2026-01 I.R.B. 1
2026-2, 2026-01 I.R.B. 119
2026-3, 2026-01 I.R.B. 143
2026-4, 2026-01 I.R.B. 160
2026-5, 2026-01 I.R.B. 258
2026-6, 2026-02 I.R.B. 314
2026-7, 2026-02 I.R.B. 316
2026-8, 2026-04 I.R.B. 380
2026-9, 2026-04 I.R.B. 393
2026-10, 2026-04 I.R.B. 394
Revenue Rulings:
2026-1, 2026-02 I.R.B. 299
2026-2, 2026-03 I.R.B. 342
2026-3, 2026-06 I.R.B. 485
2026-4, 2026-06 I.R.B. 487
Treasury Decisions:
10042, 2026-03 I.R.B. 320
10041, 2026-04 I.R.B. 360
10039, 2026-05 I.R.B. 403
10040, 2026-05 I.R.B. 416
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.

Bulletin No. 2026–6 iii February 2, 2026
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2026–6
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2025–27 through 2025–52 is in Internal Revenue Bulletin
2024–52, dated December 22, 2024.

Internal Revenue Service
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