Internal Revenue Bulletin 2019-23 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 2019–23
June 3, 2019
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
EMPLOYEE PLANS
NOT 2019-35, page 1277.
This notice sets forth updates on the corporate bond monthly
yield curve, the corresponding spot segment rates for May
2019 used under § 417(e)(3)(D), the 24-month average seg-
ment rates applicable for May 2019, and the 30-year Treasury
rates, as reflected by the application of § 430(h)(2)(C)(iv).
INCOME TAX
REV RUL 2019-14, page 1275.
Federal rates; adjusted federal rates; adjusted federal long-
term rate, the long-term exempt rate, and the blended annual
rate. For purposes of sections 382, 1274, 1288, 7872 and
other sections of the Code, tables set forth the rates for
June 2019.
NOT 2019-36, page 1280.
The notice announces the inflation adjustment factor and
phase-out amount for the enhanced oil recovery credit for tax-
able years beginning in the 2019 calendar year. The notice
concludes that because the reference price for the 2019 cal-
endar year ($61.41) exceeds $28 multiplied by the inflation
adjustment factor for the 2018 calendar year ($28 multiplied
by 1.7334 = $12.88), the enhanced oil recovery credit for
qualified costs paid or incurred in 2019 is phased out com-
pletely by using a particular ratio.
NOT 2019-37, page 1283.
The Notice publishes Treasury’s estimate of the annual aver-
age wellhead price per 1000 cubic feet for all domestic nat-
ural gas. This estimate is the “reference price” for purposes
of the credit in § 45I. The Treasury Department estimate, for
calendar year 2018, is $2.68 per 1000 cubic feet, meaning
the § 45I credit is $0.00 per 1,000 cubic feet of qualified
natural gas produced from marginal wells
NOT 2019-38, page 1284.
The notice announces that under § 613A(c)(6)(C) of the Inter-
nal Revenue Code, the applicable percentage for purposes of
determining percentage depletion on marginal properties for
calendar year 2019 is 15 percent. The format of the notice
is identical to the format of notices previously published on
this issue.
REG-125135-15, page 1286.
These proposed regulations provide rules regarding attribu-
tion for purposes of determining whether a person is a related
person with respect to a controlled foreign corporation. They
also provide rules for determining whether rents are derived
in the active conduct of a trade or business for purposes of
computing foreign personal holding company income. The
regulations would affect United States persons with direct or
indirect ownership interests in certain foreign corporations.
Finding Lists begin on page ii.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the law with integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument
of the Commissioner of Internal Revenue for announcing of-
ficial rulings and procedures of the Internal Revenue Service
and for publishing Treasury Decisions, Executive Orders, Tax
Conventions, legislation, court decisions, and other items of
general interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of inter-
nal management are not published; however, statements of
internal practices and procedures that affect the rights and
duties of taxpayers are published.
Revenue rulings represent the conclusions of the Service
on the application of the law to the pivotal facts stated in
the revenue ruling. In those based on positions taken in rul-
ings to taxpayers or technical advice to Service field offices,
identifying details and information of a confidential nature are
deleted to prevent unwarranted invasions of privacy and to
comply with statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions
of the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B,
Legislation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative
Rulings. Bank Secrecy Act Administrative Rulings are issued
by the Department of the Treasury’s Office of the Assistant
Secretary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
June 3, 2019 Bulletin No. 2019–23

Part I.
Section 1274.—
Determination of Issue
Price in the Case of Certain
Debt Instruments Issued for
Property
(Also Sections 42, 280G, 382, 467, 468, 482, 483,
1288, 7520, 7872.)
Rev. Rul. 2019-14
This revenue ruling provides vari-
ous prescribed rates for federal income
tax purposes for June 2019 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable feder-
al rates (AFR) for the current month for
purposes of section 1274(d) of the Inter-
nal Revenue Code. Table 2 contains the
short-term, mid-term, and long-term ad-
justed applicable 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
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. Howev-
er, 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%. Final-
ly, Table 5 contains the federal rate for de-
termining 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. 2019-14 TABLE 1
Applicable Federal Rates (AFR) for June 2019
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR 2.37%2.36%2.35% 2.35%
110% AFR 2.62%2.60%2.59%2.59%
120% AFR 2.85%2.83%2.82%2.81%
130% AFR 3.09%3.07%3.06%3.05%
Mid-term
AFR2.38%2.37%2.36%2.36%
110% AFR2.63%2.61%2.60%2.60%
120% AFR2.86%2.84%2.83%2.82%
130% AFR3.10%3.08%3.07%3.06%
150% AFR3.59%3.56%3.54%3.53%
175% AFR4.19%4.15%4.13%4.11%
Long-term
AFR2.76% 2.74%2.73%2.72%
110% AFR3.03%3.01%3.00%2.99%
120% AFR3.32%3.29%3.28%3.27%
130% AFR3.59%3.56%3.54%3.53%
REV. RUL. 2019-14 TABLE 2
Adjusted AFR for June 2019
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted AFR1.80%1.79%1.79%1.78%
Mid-term adjusted AFR1.81%1.80%1.80%1.79%
Long-term adjusted AFR 2.09% 2.08%2.07%2.07%
Bulletin No. 2019–23 1275 June 3, 2019

REV. RUL. 2019-14 TABLE 3
Rates Under Section 382 for June 2019
Adjusted federal long-term rate for the current month2.09%
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.)
2.19%
REV. RUL. 2019-14 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for June 2019
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 credit7.59%
Appropriate percentage for the 30% present value low-income housing credit 3.25%
REV. RUL. 2019-14 TABLE 5
Rate Under Section 7520 for June 2019
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
2.8%
Section 42.—Low-Income
Housing Credit
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

Section 280G.—Golden
Parachute Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

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 June 2019. See Rev.
Rul. 2019-14, page 1275.

Section 467.—Certain
Payments for the Use of
Property or Services
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

Section 482.—Allocation
of Income and Deductions
Among Taxpayers
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

Section 483.—Interest on
Certain Deferred Payments
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of June 2019. See Rev. Rul. 2019-14, page 1275.

Section 7520.—Valuation
Tables
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

Section 7872.—Treatment
of Loans With Below-
Market Interest Rates
The applicable federal short-term, mid-term,
and long-term rates are set forth for the month of
June 2019. See Rev. Rul. 2019-14, page 1275.

June 3, 2019 1276 Bulletin No. 2019–23

Bulletin No. 2019–23 1277 June 3, 2019
Part III.
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2019-35
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 interest
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 inter-
est rates that must be used to determine
a plan’s target normal cost and funding
target. Under this provision, present val-
ue is generally determined using three
24-month average interest rates (“seg-
ment rates”), each of which applies to
cash flows during specified 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 preced-
ing the calendar year in which the plan
year begins.
1
However, an election may
be made under § 430(h)(2)(D)(ii) to use
the monthly yield curve in place of the
segment rates.
Notice 2007-81, 2007-44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
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
Notice 2007-81, the monthly corporate
bond yield curve derived from April 2019
data is in Table 2019-4 at the end of this
notice. The spot first, second, and third
segment rates for the month of April 2019
are, respectively, 2.79, 3.88, and 4.33.
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 percentag-
es of the corresponding 25-year average
segment rates. For plan years beginning
before 2021, the applicable minimum per-
centage is 90% and the applicable maxi-
mum percentage is 110%. The 25-year
average segment rates for plan years be-
ginning in 2018 and 2019 were published
in Notice 2017-50, 2017-41 I.R.B. 280,
and Notice 2018-73, 2018-40 I.R.B. 526,
respectively.
24-MONTH AVERAGE CORPORATE
BOND SEGMENT RATES
The three 24-month average corporate
bond segment rates applicable for May
2019 without adjustment for the 25-year
average segment rate limits are as follows:
24-Month Average Segment Rates Without 25-Year Average Adjustment
Applicable Month First Segment Second SegmentThird Segment
May 2019 2.713.964.45
Based on § 430(h)(2)(C)(iv), the
24-month averages applicable for May
2019, adjusted to be within the applicable
minimum and maximum percentages of
the corresponding 25-year average seg-
ment rates, are as follows:
Adjusted 24-Month Average Segment Rates
For Plan Years
Beginning InApplicable MonthFirst SegmentSecond SegmentThird Segment
2018May 20193.925.526.29
2019May 20193.745.356.11
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 431 specifies the minimum
funding requirements that apply to multi-
employer plans pursuant to § 412. Section
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) pro-
vides that the interest rate used to calculate
current liability for this purpose must be
no more than 5 percent above and no more
than 10 percent below the weighted aver-
age of the rates of interest on 30-year Trea-
sury securities 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 determining
the weighted average interest rate. The rate
of interest on 30-year Treasury securities
1
Pursuant to § 433(h)(3)(A), the 3
rd
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)).

June 3, 2019 1278 Bulletin No. 2019–23
for April 2019 is 2.94 percent. The Service
determined this rate as the average of the
daily determinations of yield on the 30-year
Treasury bond maturing in February 2049.
For plan years beginning in May 2019, the
weighted average of the rates of interest on
30-year Treasury securities and the permis-
sible range of rates used to calculate current
liability are as follows:
Treasury Weighted Average Rates
For Plan Years
Beginning In
30-Year Treasury
Weighted Average
Permissible Range
90% to 105%
May 20192.942.65 to 3.09
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. Notice 2007-81 provides guide-
lines for determining the minimum pres-
ent value segment rates. Pursuant to that
notice, the minimum present value seg-
ment rates determined for April 2019 are
as follows:
Minimum Present Value Segment Rates
Month First Segment Second SegmentThird Segment
April 20192.793.884.33
DRAFTING INFORMATION
The principal author of this notice is
Tom Morgan of the Office of the Asso-
ciate 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 Paul Stern at 202-317-
8702 (not toll-free numbers).

Bulletin No. 2019–23 1279 June 3, 2019
Table 2019-4
Monthly Yield Curve for April 2019
Derived from April 2019 Data
MaturityYieldMaturityYieldMaturityYieldMaturityYieldMaturityYield
0.52.6520.54.2640.54.3460.54.3780.54.39
1.02.7021.04.2641.04.3461.04.3781.04.39
1.52.7421.54.2641.54.3461.54.3781.54.39
2.02.7722.04.2742.04.3462.04.3782.04.39
2.52.7922.54.2742.54.3462.54.3882.54.39
3.02.8023.04.2743.04.3563.04.3883.04.39
3.52.8223.54.2743.54.3563.54.3883.54.39
4.02.8424.04.2844.04.3564.04.3884.04.39
4.52.8924.54.2844.54.3564.54.3884.54.39
5.02.9425.04.2845.04.3565.04.3885.04.39
5.53.0125.54.2845.54.3565.54.3885.54.39
6.03.0826.04.2846.04.3566.04.3886.04.39
6.53.1726.54.2946.54.3566.54.3886.54.39
7.03.2627.04.2947.04.3567.04.3887.04.39
7.53.3427.54.2947.54.3567.54.3887.54.39
8.03.4328.04.2948.04.3668.04.3888.04.39
8.53.5228.54.3048.54.3668.54.3888.54.39
9.03.6029.04.3049.04.3669.04.3889.04.40
9.53.6829.54.3049.54.3669.54.3889.54.40
10.03.7530.04.3050.04.3670.04.3890.04.40
10.53.8230.54.3150.54.3670.54.3890.54.40
11.03.8831.04.3151.04.3671.04.3891.04.40
11.53.9331.54.3151.54.3671.54.3891.54.40
12.03.9832.04.3152.04.3672.04.3892.04.40
12.54.0232.54.3152.54.3672.54.3892.54.40
13.04.0633.04.3253.04.3673.04.3993.04.40
13.54.0933.54.3253.54.3673.54.3993.54.40
14.04.1234.04.3254.04.3774.04.3994.04.40
14.54.1534.54.3254.54.3774.54.3994.54.40
15.04.1735.04.3255.04.3775.04.3995.04.40
15.54.1835.54.3355.54.3775.54.3995.54.40
16.04.2036.04.3356.04.3776.04.3996.04.40
16.54.2136.54.3356.54.3776.54.3996.54.40
17.04.2237.04.3357.04.3777.04.3997.04.40
17.54.2337.54.3357.54.3777.54.3997.54.40
18.04.2438.04.3358.04.3778.04.3998.04.40
18.54.2438.54.3358.54.3778.54.3998.54.40
19.04.2539.04.3459.04.3779.04.3999.04.40
19.54.2539.54.3459.54.3779.54.3999.54.40
20.04.2640.04.3460.04.3780.04.39100.04.40

June 3, 2019 1280 Bulletin No. 2019–23
2019 Section 43 Inflation
Adjustment
Notice 2019-36
Section 43(a) provides that for purpos-
es of section 38, the enhanced oil recovery
credit for any taxable year is an amount
equal to 15 percent of the taxpayer’s qual-
ified enhanced oil recovery costs for such
taxable year.
Section 43(b)(1) provides that the
amount of the credit determined under
subsection (a) for any taxable year shall
be reduced by an amount which bears the
same ratio to the amount of such credit
(determined without regard to this para-
graph) as – (A) the amount by which
the reference price for the calendar year
preceding the calendar year in which the
taxable years begins exceeds $28, bears to
(B) $6.
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor.
The enhanced oil recovery credit under
§ 43 for any taxable year is reduced if
the “reference price,” determined under
§ 45K(d)(2)(C), for the calendar year
preceding the calendar year in which the
taxable year begins is greater than $28
multiplied by the inflation adjustment
factor for that year.
The term “inflation adjustment factor”
means, with respect to any calendar year,
a fraction the numerator of which is the
GNP implicit price deflator for the preced-
ing calendar year and the denominator of
which is the GNP implicit price deflator
for 1990.
Because the reference price for the
2018 calendar year ($61.41) exceeds $28
multiplied by the inflation adjustment fac-
tor for the 2018 calendar year ($28 mul-
tiplied by 1.7334 = $48.5352) by $12.88,
the enhanced oil recovery credit for qual-
ified costs paid or incurred in 2019 is
phased out completely.
Table 1 contains the GNP implicit price
deflator used for the 2019 calendar year,
as well as the previously published GNP
implicit price deflators used for the 1991
through 2018 calendar years.

Bulletin No. 2019–23 1281 June 3, 2019
Notice 2019-36 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
Calendar YearGNP Implicit Price Deflator
1990 112.9 (used for 1991)
1991 117.0 (used for 1992)
1992 120.9 (used for 1993)
1993 124.1 (used for 1994)
1994 126.0 (used for 1995)*
1995 107.5 (used for 1996)
1996 109.7 (used for 1997)**
1997 112.35 (used for 1998)
1998 112.64 (used for 1999)***
1999 104.59 (used for 2000)
2000 106.89 (used for 2001)
2001 109.31 (used for 2002)
2002 110.63 (used for 2003)
2003 105.67 (used for 2004)****
2004 108.23 (used for 2005)
2005 112.129 (used for 2006)
2006 116.036 (used for 2007)
2007 119.656 (used for 2008)
2008 122.407 (used for 2009)
2009 109.764 (used for 2010)*****
2010 110.654 (used for 2011)
2011 113.347 (used for 2012)******
2012 115.387 (used for 2013)
2013 106.710 (used for 2014)*******
2014 108.407 (used for 2015)********
2015 109.868 (used for 2016)
2016 111.528 (used for 2017)
2017 113.500 (used for 2018)
2018 110.308 (used for 2019)
* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price deflator used to compute the 1996 § 43
inflation adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price deflator used to compute the 1998 § 43
inflation adjustment factor is 93.63.
*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator used to compute the 2000 § 43
inflation adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2004 § 43 inflation adjust-
ment factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2010 § 43 inflation adjust-
ment factor is 72.199.
****** Beginning in 2011, the 1990 GNP implicit price deflator used to compute the 2012 § 43 inflation adjustment factor is 72.260.
******* Beginning in 2013, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to compute the 2014 § 43 inflation adjust-
ment factor is 66.803.
******** Beginning in 2014, the 1990 GNP implicit price deflator used to compute the 2015 § 43 inflation adjustment factor is 66.732.

June 3, 2019 1282 Bulletin No. 2019–23
Table 2 contains the inflation adjustment factor and the phase-out amount for taxable years beginning in the 2019 calendar year as
well as the previously published inflation adjustment factors and phase-out amounts for taxable years beginning in the 1991 through
2018 calendar years.
DRAFTING INFORMATION
Notice 2019-36 TABLE 2
INFLATION ADJUSTMENT FACTORS AND
PHASE-OUT AMOUNTS
Calendar Year Inflation Adjustment Factor Phase-out Amount
19911.00000
19921.03630
19931.07080
19941.09920
19951.11600
19961.14850
19971.17200
19981.19990
19991.20300
20001.20870
20011.23530
20021.26330
20031.27850
20041.29520
20051.32660
20061.3743100 percent
20071.4222100 percent
20081.4666100 percent
20091.5003100 percent
20101.5203100 percent
20111.5326100 percent
2012 1.5686100 percent
2013 1.5968100 percent
2014 1.5974100 percent
2015 1.6245100 percent
2016 1.64640
2017 1.67130
2018 1.70081.069 percent
2019 1.7334100 percent
The principal author of this notice is Phil Tiegerman of the Office of Associate Chief Counsel (Passthroughs and Special Indus-
tries). For further information regarding this notice, contact Phil Tiegerman at (202) 317-6853

Bulletin No. 2019–23 1283 June 3, 2019
Reference Price for Section
45I Credit for Production of
Natural Gas from Marginal
Wells During Taxable Years
Beginning in Calendar Year
2018
Notice 2019-37
SECTION 1. PURPOSE
This notice provides the applicable
reference price for qualified natural gas
production from qualified marginal wells
during taxable years beginning in cal-
endar year 2018 for the purpose of de-
termining the marginal well production
credit (MWC) under § 45I of the Internal
Revenue Code. The applicable reference
price for taxable years beginning in cal-
endar year 2018 is $2.68 per 1,000 cubic
feet (mcf).
This notice also provides the credit
amount used for the purpose of determin-
ing the MWC for taxable years beginning
in calendar year 2018. The credit amount
is determined using the 2018 inflation
adjustment factor of 1.2739 and the ap-
plicable reference price of $2.68 per mcf.
The credit amount for taxable years be-
ginning in calendar year 2018 is $0. per
mcf.
SECTION 2. BACKGROUND
Section 45I(a), as it relates to quali-
fied natural gas production, provides that,
for purposes of § 38, the MWC for any
taxable year is an amount equal to the
product of (1) the credit amount and (2)
the qualified natural gas production that is
attributable to the taxpayer.
Section 45I(c)(1) provides that “qual-
ified natural gas production” means do-
mestic natural gas produced from a qual-
ified marginal well. Section 45I(c)(3)(A)
provides that a qualified marginal well is
a domestic well (i) the production from
which during the taxable year is treated
as marginal production under § 613A(c)
(6), or (ii) which during the taxable year
(I) has average production of not more
than 25 barrel-of-oil equivalents per day,
and (II) produces water at a rate of not less
than 95 percent of total well effluent.
Section 613A(c)(6)(D) and (E) provide
that “marginal production” means domes-
tic natural gas produced during any tax-
able year from a property that is a strip-
per well property for the calendar year in
which the taxable year begins. A “stripper
well property” is, with respect to any cal-
endar year, any property producing not
more than 15 barrel equivalents per day,
determined by dividing the average daily
production of domestic crude oil and do-
mestic natural gas from producing wells
on the property for such calendar year by
the number of such wells on the property.
Section 45I(c)(2)(A) provides that
generally only the first 1,095 barrels or
barrel-of- oil-equivalents (as defined in §
45K(d)(5)) produced during the taxable
year qualify for the MWC. This limitation
is proportionately reduced in the case of a
short taxable year or in the case of a well
that is not capable of production each day
of a taxable year.
See § 45I(c)(2)(B). The number of
wells on which a taxpayer can claim the
MWC is not limited.
Section 45I(d)(2) provides that to
claim the credit a taxpayer must hold an
operating interest in the qualified margin-
al well producing the natural gas to which
the credit relates. Under § 45I(d)(1) if a
well is owned by more than one owner
and the natural gas production exceeds the
limitation under § 45I(c)(2), the qualify-
ing natural gas production attributable to
the taxpayer is determined on the basis of
the ratio the taxpayer’s revenue interest in
the production bears to the aggregate of
the revenue interests of all operating in-
terest owners in the production. Finally,
§ 45I(d)(3) provides that the MWC is not
allowable if the taxpayer is also eligible to
claim the § 45K nonconventional sources
credit for the taxable year, unless the tax-
payer elects not to claim the credit under §
45K for the well.
For purposes of § 45I(a)(1), the credit
amount is 50 cents (adjusted for inflation)
per mcf of qualified natural gas production
(tentative credit amount). See § 45I(b)(1)
(B) and (b)(2)(B).
Section 45I(b)(2)(A) and (B) provide
that the tentative credit amount (adjusted
for inflation) is reduced (but not below
zero) to the extent that the applicable
reference price exceeds $1.67 (adjusted
for inflation). More specifically, § 45I(b)
(2)(A) provides that the tentative credit
amount (adjusted for inflation) is reduced
by an amount that bears the same ratio
to such amount as the excess (if any) of
the applicable reference price over $1.67
(adjusted for inflation), bears to $0.33 (ad-
justed for inflation). As a result, the MWC
is not available if the applicable reference
price for qualified natural gas production
exceeds $2 (adjusted for inflation).
Section 45I(b)(2)(A) also provides that
the applicable reference price for a taxable
year is the reference price for the calendar
year preceding the calendar year in which
the taxable year begins. Section 45I(b)(2)
(C)(ii) provides the term “reference price”
means, with respect to any calendar year,
in the case of qualified natural gas produc-
tion, the Secretary’s estimate of the annual
average wellhead price per mcf for all do-
mestic natural gas.
Section 45I(b)(2)(B) provides that in
the case of any taxable year beginning in a
calendar year after 2005, each of the dol-
lar amounts contained in § 45I(b)(2)(A)
will be increased to an amount equal to
such dollar amount multiplied by the in-
flation adjustment factor for such calendar
year (determined under § 43(b)(3)(B) by
substituting “2004” for “1990”).
SECTION 3. INFLATION
ADJUSTMENT FACTOR AND
REFERENCE PRICE
.1 Inflation Adjustment. The inflation
adjustment factor under § 45I(b)(2)(B) for
calendar year 2018 is 1.2739
.2 Reference Price. The Secretary’s
estimate of the calendar year 2017 an-
nual average wellhead price per mcf for
all domestic natural gas under § 45I(b)
(2)(C)(ii) was calculated by applying
the Producer Price Index commodity in-
dex for “Natural Gas from the Wellhead”
(WPU053101051)
1
published by the Bu-
reau of Labor Statistics (BLS) as part
of its Producer Price Index program, to
the 2016 annual average wellhead price
($2.17) published in Notice 2018-52,
2018-22 I.R.B. 629. The annual Produc-
1
https://data.bls.gov/cgi-bin/srgate. BLS publishes indexes and not actual or average prices.

June 3, 2019 1284 Bulletin No. 2019–23
er Price Index commodity index for nat-
ural gas published by the BLS was 67.5
in 2016 and 83.4 in 2017, which implies
a ratio of 2017 to 2016 average wellhead
prices of 1.236 (83.4/67.5). Therefore, the
Secretary’s estimate of the calendar year
2017 annual average wellhead price per
mcf for all domestic natural gas is $2.68
per mcf (1.236 x $2.17 per mcf).
For years after 2017, the Secretary in-
tends to continue calculating the reference
price by application of the Producer Price
Index commodity index for “Natural Gas
from the Wellhead” (WPU053101051)
published by the BLS to the previous
year’s reference price.
SECTION 4. CALCULATION OF
CREDIT AMOUNT
Under § 45I(b)(1)(B) and(2)(B), the
tentative credit amount used to calculate
the MWC for taxable years beginning in
calendar year 2018 is 64 cents per mcf
($0.50 x 1.2739 inflation adjustment fac-
tor). However, in order to determine the
credit amount for purposes of § 45I(a)(1),
the tentative credit amount must be re-
duced as provided by § 45I(b)(2)(A).
Pursuant to § 45I(b)(2)(A), the tenta-
tive credit amount for taxable years begin-
ning in calendar year 2018 is reduced (but
not below zero) by an amount (§ 45I(b)(2)
Reduction Amount) which bears the same
ratio to such amount as (i) the excess (if
any) of the applicable reference price over
$2.09 ($1.67 x 1.2739 inflation adjustment
factor), bears to (ii) $0.44 ($0.33 x 1.2739
adjustment factor). Accordingly, the §
45I(b)(2) Reduction Amount (as adjusted
for inflation) is computed as follows:
$ 451(b)(2) Red. AmountApp. Ref. Price – 2.09
=
0.640.42
Solving for the $ 451(b)(2) Red. Amount yields the following formula:
$ 451(b)(2) Red. Amount = 0.64 x App. Ref. Price – 2.13
0.42
Using the applicable reference price of
$2.68, the § 45I(b)(2) Reduction Amount
is $0.84 Therefore, the credit amount used
to calculate the MWC for taxable years
beginning in calendar year 2018 is $0. per
mcf ($0.64 - $0.84).
SECTION 5. EFFECTIVE DATE
This notice is effective for qualified
natural gas production during taxable
years beginning in calendar year 2018.
SECTION 6. DRAFTING AND
CONTACT INFORMATION
The principal author of this notice is
Philip Tiegerman of the Office of Associ-
ate Chief Counsel (Passthroughs & Spe-
cial Industries). For further information
regarding this notice contact Philip Tieg-
erman at (202) 317-6853 (not a toll-free
number).
2019 Marginal Production
Rates
Notice 2019-38
This notice announces the applicable
percentage under § 613A of the Internal
Revenue Code to be used in determining
percentage depletion for marginal proper-
ties for the 2019 calendar year.
Section 613A(c)(6)(C) defines the term
“applicable percentage” for purposes of
determining percentage depletion for oil
and gas produced from marginal prop-
erties. The applicable percentage is the
percentage (not greater than 25 percent)
equal to the sum of 15 percent, plus one
percentage point for each whole dollar
by which $20 exceeds the reference price
(determined under § 45K(d)(2)(C)) for
crude oil for the calendar year preceding
the calendar year in which the taxable year
begins. The reference price determined
under § 45K(d)(2)(C) for the 2018 calen-
dar year is $61.41.
The following table contains the appli-
cable percentages for marginal production
for taxable years beginning in calendar
years 1991 through 2019.

Bulletin No. 2019–23 1285 June 3, 2019
Notice 2019-
APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION
Calendar Year Applicable Percentage
1991 15 percent
1992 18 percent
1993 19 percent
1994 20 percent
1995 21 percent
1996 20 percent
1997 16 percent
1998 17 percent
1999 24 percent
2000 19 percent
2001 15 percent
2002 15 percent
2003 15 percent
2004 15 percent
2005 15 percent
2006 15 percent
2007 15 percent
2008 15 percent
2009 15 percent
2010 15 percent
2011 15 percent
201215 percent
201315 percent
201415 percent
201515 percent
201615 percent
201715 percent
2018 15 percent
2019 15 percent
The principal author of this notice is Phil Tiegerman of the Office of Associate Chief Counsel (Passthroughs and Special Indus

June 3, 2019 1286 Bulletin No. 2019–23
Part IV.
Notice of Proposed
Rulemaking
REG-125135-15
Ownership Attribution for
Purposes of Determining
Whether a Person Is
Related to a Controlled
Foreign Corporation;
Rents Derived in the Active
Conduct of a Trade or
Business
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations that provide rules
regarding the attribution of ownership of
stock or other interests for purposes of
determining whether a person is a related
person with respect to a controlled foreign
corporation (CFC) under section 954(d)
(3). In addition, the proposed regulations
provide rules for determining whether a
CFC is considered to derive rents in the
active conduct of a trade or business for
purposes of computing foreign personal
holding company income (FPHCI). The
regulations would affect United States
persons with direct or indirect ownership
interests in certain foreign corporations.
DATES: Written or electronic comments
and requests for a public hearing must be
received by July 19, 2019.
ADDRESSES: Send submissions to:
CC:PA:LPD:PR (REG-125135-15), room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station, Wash-
ington, DC 20044. Submissions may be
hand-delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (REG-125135-15),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue, NW, Washing-
ton, DC 20224, or sent electronically via
the Federal eRulemaking Portal at www.
regulations.gov (indicate IRS and REG-
125135-15).
FOR FURTHER INFORMATION CON-
TACT: Concerning the proposed regula-
tions, Rose E. Jenkins at (202) 317-6934;
concerning submissions of comments and
requests for a public hearing, Regina L.
Johnson at 202-317-6901 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
This document contains proposed
amendments to 26 CFR part 1 under sec-
tions 954 and 958 of the Internal Revenue
Code (Code). Section 954(a) defines for-
eign base company income (FBCI), which
is a category of subpart F income. Subpart
F income generally is income earned by
a CFC that is taken into account in com-
puting the amount that a United States
shareholder (as defined in section 951(b))
of the CFC must include in income under
section 951(a)(1)(A). FBCI includes for-
eign personal holding company income,
as defined in section 954(c), as well as
certain types of income from sales and
services. The determination of wheth-
er certain types of sales and services in-
come constitute FBCI depends, in part,
on whether the income is earned from a
transaction that involves a related person,
as defined under section 954(d)(3). See
section 954(d) and (e). The definition of
related person under section 954(d)(3) is
also relevant in determining whether cer-
tain income qualifies for an exception to
FPHCI. See, for example, sections 954(c)
(2)(A), 954(c)(3), and 954(c)(6). As pro-
vided in section 952(a)(2), subpart F in-
come also includes insurance income (as
defined under section 953), and the rules
in section 953 similarly reference the defi-
nition of related person in section 954(d)
(3). The definition of related person under
section 954(d)(3) is also relevant in deter-
mining whether an exception to the defi-
nition of United States property applies
for purposes of section 956. See section
956(c)(2)(L)(ii)(II). Additionally, certain
provisions outside of subpart F
1
reference
the definition of related person in section
954(d)(3). See, for example, sections
267A, 904(d)(2)(I), 988(a)(3)(C), 1297(b)
(2), and 1471(e)(2).
Section 954(d)(3) provides that a per-
son is a related person with respect to a
CFC if the person is (i) an individual who
controls the CFC; (ii) a corporation, a
partnership, a trust, or an estate that con-
trols or is controlled by the CFC; or (iii)
a corporation, a partnership, a trust, or an
estate that is controlled by the same per-
son or persons that control the CFC. With
respect to a corporation, control means
the ownership, directly or indirectly, of
stock possessing more than 50 percent of
(i) the total voting power of all classes of
stock entitled to vote or (ii) the total value
of stock of the corporation. With respect
to a partnership, trust, or estate, control
means the ownership, directly or indirect-
ly, of more than 50 percent (by value) of
the beneficial interests in the partnership,
trust, or estate. Section 954(d)(3) states
that “rules similar to the rules of section
958 shall apply” for purposes of deter-
mining ownership. Section 958 provides
rules for determining direct, indirect, and
constructive stock ownership and states
that such rules “shall apply” for purposes
of section 954(d)(3) to the extent that the
effect is to treat a person as a related per-
son within the meaning of section 954(d)
(3). See section 958(b). Sections 954(d)
(3) and 958 were added to the Code in
1962, as part of the legislation that en-
acted the subpart F regime, and section
954(d)(3) provided as originally enacted
that “the rules for determining ownership
of stock prescribed by section 958 shall
apply.” Revenue Act of 1962 (Public Law
87-834, 76 Stat. 960). The change in the
language of section 954(d)(3) to provide
for the application of rules “similar to the
rules of” section 958 was made in 1986,
but no corresponding change was made to
the language in section 958. Tax Reform
1
References in this preamble to subpart F are references to subpart F, part III, subchapter N, chapter 1 of the Code.

Bulletin No. 2019–23 1287 June 3, 2019
Act of 1986 (Public Law 99-514, 100 Stat.
2085).
Final regulations published in the Fed-
eral Register on May 15, 1964 (T.D.
6734, 29 FR 6385), cross-referenced sec-
tion 958 and the regulations thereunder for
purposes of determining ownership under
section 954(d)(3) as then in effect. Final
regulations published in the Federal Reg-
ister on September 7, 1995 (T.D. 8618, 60
FR 46500), and corrected on December 4,
1995 (60 FR 62024), revised the regula-
tions, in part to provide that the principles
of section 958, modified to apply to do-
mestic as well as foreign entities, applied
for purposes of determining direct and
indirect ownership under section 954(d)
(3). Thus, under current §1.954-1(f)(2)
(iv), the principles of section 958(a) and
(b) apply, without regard to whether an
entity is foreign or domestic, to determine
direct and indirect ownership for section
954(d)(3) purposes. The existing regula-
tions do not provide any additional guid-
ance beyond this general statement. These
proposed regulations would revise the
existing regulations under section 954(d)
(3) to provide some specific guidance on
the application of principles similar to the
constructive ownership rules in section
958(b).
This document also proposes to revise
rules under section 954(c). FPHCI, as de-
fined in section 954(c), generally includes
rents. Section 954(c)(1)(A). However,
rents are excluded from FPHCI if they are
received from a person other than a related
person and derived in the active conduct
of a trade or business within the meaning
of section 954(c)(2)(A) and §1.954-2(c)
(the active rents exception). These regu-
lations propose to revise the rules under
section 954(c) to provide guidance on the
treatment of amounts (including royalties)
paid or incurred by a CFC in connection
with the CFC’s rental income for purposes
of the active rents exception.
Explanation of Provisions
1. Definition of Related Person in Section
954(d)(3)
Section 1.954-1(f)(1), like section
954(d)(3), provides that a person is a re-
lated person with respect to a CFC if the
person is (i) an individual who controls
the CFC; (ii) a corporation, a partnership,
a trust, or an estate that controls or is con-
trolled by the CFC; or (iii) a corporation,
a partnership, a trust, or an estate that is
controlled by the same person or persons
that control the CFC. Section 1.954-1(f)
(2) provides that, with respect to a cor-
poration, control means the ownership,
directly or indirectly, of stock possessing
more than 50 percent of the total voting
power of all classes of stock entitled to
vote or the total value of stock of the cor-
poration. With respect to a trust or estate,
control means the ownership, directly or
indirectly, of more than 50 percent (by
value) of the beneficial interests of the
trust or estate. With respect to a partner-
ship, control means the ownership, direct-
ly or indirectly, of more than 50 percent
(by value) of the capital or profits interest
in the partnership.
Section 954(d)(3) provides that rules
similar to the rules of section 958 apply
for purposes of determining whether a
person is a related person. Similarly, cur-
rent §1.954-1(f)(2)(iv) states that the prin-
ciples of section 958 apply to determine
direct or indirect ownership for purposes
of §1.954-1(f) and further provides that
the principles of section 958 apply without
regard to whether a corporation, partner-
ship, trust, or estate is foreign or domestic
or whether an individual is a citizen or res-
ident of the United States.
Under section 958(a)(1), stock is con-
sidered owned by a person if it is owned
directly or indirectly through certain for-
eign entities under section 958(a)(2). In
relevant part, section 958(b) provides
that section 318(a) (relating to the con-
structive ownership of stock) applies for
purposes of section 954(d)(3), subject to
certain modifications, to the extent that the
effect is to treat a person as a related per-
son within the meaning of section 954(d)
(3). Section §1.958-2 sets forth the rules
in section 318(a) as modified by section
958(b).
Section 318 provides rules that at-
tribute the ownership of stock to certain
family members, between certain entities
and their owners, and to holders of op-
tions to acquire stock. Section 318(a)(1)
provides rules attributing stock ownership
among members of a family, and section
318(a)(2) provides rules attributing stock
ownership “upward” from an entity to the
owner of an entity. In addition, section
318(a)(3) provides specific rules that attri-
bute the ownership of stock “downward”
from the owner of an entity to the entity.
In particular, section 318(a)(3)(A) pro-
vides that stock owned, directly or indi-
rectly, by or for a partner in a partnership
or a beneficiary of an estate is considered
owned by the partnership or estate. This
provision applies to all partners and bene-
ficiaries without regard to the size of their
interest in the partnership or estate. See
also §1.958-2(d)(1)(i). Section 318(a)(3)
(B) similarly provides, subject to certain
exceptions, that stock owned, directly or
indirectly, by or for a beneficiary of a trust
(or a person who is considered an own-
er of a trust) is considered owned by the
trust. See also §1.958-2(d)(1)(ii). In com-
parison, section 318(a)(3)(C) attributes
stock owned, directly or indirectly, by or
for a person to a corporation only if 50
percent or more in value of the stock in
the corporation is owned, directly or indi-
rectly, by the person. See also §1.958-2(d)
(1)(iii). Section 318(a)(4) provides that a
person that has an option to acquire stock
is considered to own the stock. See also
§1.958-2(e).
The Department of the Treasury
(Treasury Department) and the IRS are
concerned that, in certain situations, the
application of the section 318(a)(3)(A)
and (B) constructive ownership rules, if
incorporated into §1.954-1(f) by the ref-
erence to section 958, could produce in-
appropriate results when defining related
person for purposes of section 954(d)
(3). For example, if two otherwise unre-
lated domestic corporations each owned
interests in a partnership, the partnership
would be treated under section 318(a)(3)
(A) as owning any stock owned directly
or indirectly by the unrelated domestic
corporations. Thus, for purposes of sec-
tion 954(d)(3), the partnership would be
treated as controlling any corporations,
including CFCs, in which one of the do-
mestic corporations owned more than 50
percent of the stock, regardless of the size
of the domestic corporation’s ownership
interest in the partnership, such that a CFC
of one of the domestic corporations would
be treated as related to a CFC of the other
domestic corporation.
Treatment of the domestic corpora-
tions’ CFCs as related persons with re-

June 3, 2019 1288 Bulletin No. 2019–23
spect to one another under section 954(d)
(3) could be relied upon by taxpayers, for
example, to treat payments of interest be-
tween the otherwise unrelated CFCs as in-
terest that is eligible for the exception from
FPHCI in section 954(c)(6). Similarly, a
sale of personal property between a CFC
of one domestic corporation and a CFC of
the other domestic corporation could give
rise to foreign base company sales income
under section 954(d). The Treasury De-
partment and the IRS do not believe that
either of these results is appropriate when
the domestic corporations each own 50
percent or less of the partnership because
the domestic corporations (and thus their
CFCs) do not have a significant relation-
ship to each other, for purposes of section
954(d)(3), which itself refers to ownership
of “more than 50 percent” of stock or oth-
er ownership interests, and subpart F more
generally.
Similarly, when two unrelated do-
mestic corporations each own exactly
50 percent of the stock of a joint venture
corporation, that joint venture corporation
would be treated under section 318(a)(3)
(C) as owning other stock owned by the
domestic corporations (including stock of
CFCs) and, accordingly, could be treated
as controlling the domestic corporations’
CFCs, such that a CFC of one of the do-
mestic corporations would be treated as
related to a CFC of the other domestic cor-
poration. The Treasury Department and
the IRS do not believe that section 954(d)
(3) was intended to treat the CFCs of the
domestic corporations as related persons
with respect to each other or with respect
to the joint venture corporation in these
circumstances, given that no person owns
more than 50 percent of both the joint
venture corporation and one of the CFCs
directly or indirectly, as directly or indi-
rectly would commonly be understood.
Accordingly, the Treasury Department
and the IRS interpret section 954(d)(3) to
qualify the application of the constructive
ownership rules in section 318(a)(3).
Concerns about the application of
the downward attribution rules of sec-
tion 318(a)(3) similar to those discussed
in this Part 1 were raised in connection
with proposed regulations under section
385 (REG-108060-15) (the section 385
proposed regulations) published by the
Treasury Department and the IRS in the
Federal Register on April 8, 2016 (81
FR 20912), as discussed in the preamble
to the final regulations under section 385
(TD 9790) (the section 385 final regula-
tions) published by the Treasury Depart-
ment and the IRS in the Federal Register
on October 21, 2016 (81 FR 72858). See
Part III.B.2.c.v of the Summary of Com-
ments and Explanation of Revisions (81
FR 72866-72867). Accordingly, the sec-
tion 385 final regulations revised the rules
in the section 385 proposed regulations
concerning the definition of an expanded
group to provide that section 318(a)(3)
generally does not apply for such purpose.
See §1.385-1(c)(4)(iii)(A).
As noted in the Background section of
this preamble, until 1986, section 954(d)
(3) and section 958(b) both provided for
the rules in section 958(b) to apply for
purposes of section 954(d)(3). Although
section 958(b) was not changed in 1986,
when section 954(d)(3) was amended to
provide that rules “similar to” those in
section 958 would apply, the change to
section 954(d)(3) indicates that Congress
intended for the Treasury Department and
the IRS to prescribe rules regarding the in-
corporation of section 958(b) into the defi-
nition of a related person under section
954(d)(3) with such modifications as may
be appropriate. For the foregoing reasons,
and consistent with the section 385 final
regulations, the Treasury Department and
the IRS propose, pursuant to the grant of
regulatory authority to the Secretary under
section 7805(a), to revise §1.954-1(f) to
provide that the rules of section 318(a)(3)
and §1.958-2(d) do not apply for purpos-
es of section 954(d)(3) and §1.954-1(f).
Section 1.958-2 is also proposed to be
revised to cross-reference the limitations
on its applicability in §1.954-1(f). How-
ever, the revision to §1.954-1(f) does not
preclude a corporation, partnership, trust,
or estate from being treated as controlled
by the same person or persons that con-
trol the CFC under the other rules that
remain applicable for purposes of section
954(d)(3) and §1.954-1(f). For example,
if one domestic corporation (USP1) held
51 percent of the stock of a joint venture
corporation, while an unrelated domestic
corporation (USP2) held 49 percent of its
stock, the joint venture corporation would
continue to be a related person with re-
spect to a CFC in which USP1 owned 51
percent of the stock (CFC1) as a result of
USP1’s direct ownership of more than 50
percent of both entities, notwithstanding
the fact that the joint venture corporation
would no longer be treated as owning the
stock of CFC1 owned by USP1.
The Treasury Department and the IRS
also are concerned that the application
of the option attribution rule in section
318(a)(4) in the context of section 954(d)
(3) could lead to inappropriate results.
If, for example, two otherwise unrelated
domestic corporations owned 51 percent
and 49 percent, respectively, of the total
value of the stock of a joint venture CFC,
and the 49-percent owner also held an
option to acquire an additional 2 percent
of the corporation, the 49-percent owner
could take the position that it, as well as
the 51-percent owner, controlled the CFC
for purposes of section 954(d)(3). Based
on this position, payments of interest be-
tween the joint venture CFC and another
CFC of the 49-percent owner would be
eligible for the exception from FPHCI
in section 954(c)(6). The Treasury De-
partment and the IRS have determined
that it would be inappropriate to allow
taxpayers to effectively elect related per-
son status using options in this manner.
Accordingly, these proposed regulations
provide that section 318(a)(4) does not
apply to treat a person that has an option
to acquire stock or an equity interest, or
an interest similar to such an option, as
owning the stock or equity interest for
purposes of the section 954(d) related
person definition if a principal purpose
for the use of the option or similar inter-
est is to cause a person to be treated as a
related person with respect to a CFC (the
option anti-abuse rule).
Section 7(d) of Notice 2007-9, 2007-
1 C.B. 401, stated that regulations con-
taining a similar rule would be issued,
providing that if a principal purpose for
the use of the option or similar interest
is to qualify dividends, interest, rents, or
royalties paid by a foreign corporation
for the section 954(c)(6) exception, the
dividends, interest, rents, or royalties
received or accrued from such foreign
corporation will not be treated as being
received or accrued from a CFC payor
and, therefore, will not be eligible for
the section 954(c)(6) exception. Notice
2007-9 indicated that section 7(d) would

Bulletin No. 2019–23 1289 June 3, 2019
be effective for taxable years of foreign
corporations beginning after December
31, 2006. Accordingly, these proposed
regulations also contain, pursuant to the
grant of regulatory authority to the Sec-
retary under section 954(c)(6), the rule
described in Notice 2007-9 (the Notice
2007-9 option anti-abuse rule), which
is proposed to apply for taxable years
of CFCs beginning after December 31,
2006, and ending before the date of pub-
lication in the Federal Register of the
Treasury decision adopting these rules
as final regulations, and for the taxable
years of United States shareholders in
which or with which such years end. Sec-
tion 7(d) of Notice 2007-9 will be obso-
leted upon finalization of these proposed
regulations.
Comments with respect to the section
385 proposed regulations also raised con-
cerns regarding the application of section
318(a)(4) to options in a joint venture
corporation. See Part III.B.2.c.vi of the
Summary of Comments and Explanation
of Revisions (81 FR 72867). The section
385 final regulations address those com-
ments by providing that section 318(a)(4)
applies only to options that are reasonably
certain to be exercised as described in
§1.1504-4(g). See §1.385-1(c)(4)(iii)(C).
Comments are requested as to whether the
concerns of the Treasury Department and
the IRS concerning the application of sec-
tion 318(a)(4) for purposes of the defini-
tion of related person in section 954(d)(3)
would be better addressed by the proposed
option anti-abuse rule or a rule similar to
§1.385-1(c)(4)(iii)(C).
2. Active Rent Exception to FPHCI
Although rents generally are includ-
ed in FPHCI under section 954(c)(1)
(A), rents derived in the active conduct
of a trade or business and received from
a person that is not a related person are
excluded from FPHCI under the active
rents exception in section 954(c)(2)(A)
and §1.954-2(b)(6). The section 954 reg-
ulations provide the exclusive rules for
determining whether rents are derived in
the active conduct of a trade or business
for purposes of section 954(c)(2)(A). Spe-
cifically, §1.954-2(c) provides four alter-
native ways for rents to be derived in the
active conduct of a trade or business, one
of which applies to rents derived by a CFC
from leasing property as a result of per-
forming marketing activities. Under this
rule, the CFC derives rents in the active
conduct of a trade or business when the
CFC satisfies an “active marketing” test,
which, among other things, requires the
CFC to operate in a foreign country or
countries an organization that is regularly
engaged in the business of marketing, or
marketing and servicing, the leased prop-
erty, and that is “substantial” in relation to
the amount of rents derived from the prop-
erty. See §1.954-2(c)(1)(iv). Pursuant to a
safe harbor in the regulations, an organi-
zation is “substantial” if its active leasing
expenses equal or exceed 25 percent of the
adjusted leasing profit. See §1.954-2(c)
(2)(ii). The regulations generally define
active leasing expenses to mean, subject
to certain exceptions, deductions that are
properly allocable to rental income and
that would be allowable under section 162
if the CFC were a domestic corporation.
See §1.954-2(c)(2)(iii). The regulations
generally define adjusted leasing profit
to mean the gross income of the lessor
from rents, reduced by certain items. See
§1.954-2(c)(2)(iv).
A CFC may derive rent from leas-
ing property that it does not own. In that
case, the CFC likely will make payments
to the owner of the property, which may
be characterized as rent. For purposes of
applying the safe harbor, the regulations
provide that rents paid or incurred by the
CFC with respect to the rental income (i)
are not taken into account in determining
active leasing expenses (in other words,
are excluded from the definition of ac-
tive leasing expenses); and (ii) are taken
into account for purposes of determining
adjusted leasing profit (in other words, re-
duce the CFC’s gross income for purposes
of determining adjusted leasing profit).
Section 1.954-2(c)(2)(iii)(B) and (iv)(A).
These rules reflect the principle that when
a lessor CFC derives rents from property
that it does not own, the substantiality of
the CFC’s marketing organization should
be determined under the safe harbor on the
basis of the CFC’s income and expenses
net of any payments that it makes for the
use of the property.
The Treasury Department and the IRS
are aware that in cases in which a lessor
CFC derives rent from leasing property
that it does not own, the CFC may make
payments to the owner of the property
that are characterized as royalties rather
than rent. For purposes of the safe harbor,
there is no reason to distinguish between
payments made by the CFC for the use of
property based on their characterization as
rents or royalties. For example, if a CFC
pays $100 for the transfer of a computer
program, and in turn transfers the com-
puter program to an unrelated person for
$150 in a transaction that is treated as a
lease under §1.861-18, the determination
of whether the CFC satisfies the safe har-
bor in §1.954-2(c)(2)(ii) should not de-
pend on whether the transaction pursuant
to which the CFC received the computer
program is characterized under §1.861-
18 as a license, under which the CFC
pays royalties, or a lease, under which the
CFC pays rents. In both cases, the CFC’s
$100 payment for use of the computer
program should be excluded from active
leasing expenses and reduce the CFC’s
adjusted leasing profit, in order to ensure
that only expenses related to the market-
ing organization are taken into account in
assessing its substantiality. Accordingly,
the Treasury Department and the IRS pro-
pose to revise §1.954-2(c)(2)(iii)(B) and
§1.954-2(c)(2)(iv)(A) to apply generally
to amounts paid or incurred, including
both rents and royalties, by the lessor CFC
for the right to use the property (or a com-
ponent thereof) that generated the rental
income.
3. Proposed Applicability Dates
These regulations generally are pro-
posed to apply for taxable years of CFCs
ending on or after the date of publication
in the Federal Register of the Treasury
decision adopting these rules as final
regulations, and for the taxable years
of United States shareholders in which
or with which such taxable years end.
However, pursuant to the authority under
section 7805(b)(1)(C), the Notice 2007-9
option anti-abuse rule is proposed to ap-
ply for taxable years of CFCs beginning
after December 31, 2006, and ending be-
fore the date of publication in the Fed-
eral Register of the Treasury decision
adopting these rules as final regulations,
and for the taxable years of United States
shareholders in which or with which

June 3, 2019 1290 Bulletin No. 2019–23
such years end. Furthermore, pursuant
to the authority under section 7805(b)(1)
(B), the rules in proposed §1.954-1(f)(2)
(iv)(B)(1) and (3) will apply to taxable
years of CFCs ending on or after May
17, 2019, and to taxable years of Unit-
ed States shareholders in which or with
which such taxable years end, with re-
spect to amounts that are received or ac-
crued by a CFC on or after May 17, 2019
to the extent the amounts are received or
accrued by the CFC in advance of the pe-
riod to which such amounts are attribut-
able with a principal purpose of avoiding
the application of §1.954-1(f)(2)(iv)(B)
(1) or (3) with respect to such amounts.
As discussed in Part 1 of this Explana-
tion of Provisions, these rules would pre-
vent taxpayers from effectively electing
related person status in inappropriate
situations, including to qualify payments
for the exception from FPHCI in section
954(c)(6). Accordingly, the Treasury De-
partment and the IRS have determined
that an immediate applicability date for
these rules is appropriate to address the
possibility of acceleration of payments to
a period before these rules are adopted as
final regulations. Until the effective date
of the final regulations, CFCs may rely
on the rules in proposed §1.954-1(f)(2)
(iv) for taxable years ending on or after
May 17, 2019, provided that they consis-
tently apply the rules in §§1.954-1(f)(2)
(iv) and 1.958-2(d) and (e) for all such
taxable years.
Special Analyses
Executive Orders 13563 and 12866
direct agencies to assess costs and ben-
efits of available regulatory alternatives
and, if regulation is necessary, to select
regulatory approaches that maximize net
benefits (including potential economic,
environmental, public health and safety
effects, distributive impacts, and equity).
Executive Order 13563 emphasizes the
importance of quantifying both costs and
benefits, of reducing costs, of harmoniz-
ing rules, and of promoting flexibility.
The Treasury Department will submit
the final regulations to the Office of Man-
agement and Budget’s Office of Informa-
tion and Regulatory Affairs (OIRA) for
Executive Order 12866 review consider-
ation. The Treasury Department requests
comment and any potential data regarding
the expected impacts of this proposed reg-
ulation, including whether the impacts of
this proposed regulation will have an an-
nual effect on the economy of $100 mil-
lion or more.
Because this rulemaking is an interpre-
tive rule and does not impose a collection
of information on small entities, under 5
U.S.C. 603(a) the provisions of the Reg-
ulatory Flexibility Act (5 U.S.C. chapter
6) do not apply. Accordingly, a regulatory
flexibility analysis under the Regulatory
Flexibility Act is not required.
Pursuant to section 7805(f), this notice
of proposed rulemaking has been submit-
ted to the Chief Counsel for Advocacy of
the Small Business Administration for
comment on its impact on small business.
The Treasury Department requests com-
ment on the impacts of this proposed reg-
ulation on small entities and businesses.
Comments and Requests for a Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any comments that are
submitted timely to the IRS as prescribed
in this preamble under the “ADDRESS-
ES” heading. The Treasury Department
and the IRS request comments on all as-
pects of the proposed rules, as well as
whether modifications to the attribution
rules similar to those proposed to be made
to §1.954-1(f) should apply for purposes
other than the definition of related person
under section 954(d)(3) and §1.954-1(f).
All comments will be available at www.
regulations.gov or upon request. A public
hearing will be scheduled if requested in
writing by any person that timely submits
written comments. If a public hearing is
scheduled, notice of the date, time, and
place for the public hearing will be pub-
lished in the Federal Register.
Drafting Information
The principal author of these proposed
regulations is Rose E. Jenkins of the Of-
fice of Associate Chief Counsel (Interna-
tional). However, other personnel from
the Treasury Department and the IRS par-
ticipated in the development of these pro-
posed regulations.
* * * * *
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is pro-
posed to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.954-1 also issued under 26
U.S.C. 954(b) and (c).
Section 1.954-2 also issued under 26
U.S.C. 954(b) and (c).
* * * * *
Par. 2. Section 1.954-0 is amended
in paragraph (b) by adding entries for
§§1.954-1(f)(3), (f)(3)(i) through (iii), (g),
and (g)(1) through (4) and 1.954-2(c)(2)
(v) through (viii), (d)(2)(v), (i), and (i)(1)
through (3) to read as follows:
§1.954-0 Introduction.
* * * * *
(b) * * *
§1.954-1 Foreign base company in-
come.
* * * * *
(f) * * *
(3) Applicability dates.
(i) General rule.
(ii) Option rule in paragraph (f)(2)(iv)
(B)(2) of this section.
(iii) Anti-abuse rule.
(g) Distributive share of partnership
income.
(1) Application of related person and
country of organization tests.
(2) Application of related person test
for sales and purchase transactions be-
tween a partnership and its controlled for-
eign corporation partner.
(3) Examples.
(4) Effective date.
§1.954-2 Foreign personal holding
company income.
* * * * *
(c) * * *
(2) * * *
(v) Leased in foreign commerce.
(vi) Leases acquired by the CFC lessor.
(vii) Marketing of leases.

Bulletin No. 2019–23 1291 June 3, 2019
(viii) Cost sharing arrangements
(CSAs).
* * * * *
(d) * * *
(2) * * *
(v) Cost sharing arrangements (CSAs).
* * * * *
(i) Applicability dates.
(1) Paragraphs (c)(2)(v) through (vii).
(2) Paragraphs (c)(2)(iii)(B) and (c)(2)
(iv)(A) of this section.
(3) Other paragraphs.
Par. 3. Section 1.954-1 is amended by
revising paragraph (f)(2)(iv) and adding
paragraph (f)(3) to read as follows:
§1.954-1 Foreign base company in-
come.
* * * * *
(f) * * *
(2) * * *
(iv) Direct or indirect ownership. For
purposes of section 954(d)(3) and this
paragraph (f), to determine direct or indi-
rect ownership--
(A) The principles of §1.958-1 and
section 958(a) apply without regard to
whether a corporation, partnership, trust,
or estate is foreign or domestic or whether
an individual is a citizen or resident of the
United States; and
(B) The principles of §1.958-2 and sec-
tion 958(b) apply, except that--
(1) Neither section 318(a)(3), nor
§1.958-2(d) or the principles thereof, ap-
plies to attribute stock or other interests to
a corporation, partnership, estate, or trust;
and
(2) Neither section 318(a)(4), nor
§1.958-2(e) or the principles thereof, ap-
plies to treat dividends, interest, rents, or
royalties received or accrued from a for-
eign corporation as received or accrued
from a controlled foreign corporation
payor if a principal purpose of the use of
an option to acquire stock or an equity in-
terest, or an interest similar to such an op-
tion, that causes the foreign corporation to
be a controlled foreign corporation payor
is to qualify dividends, interest, rents, or
royalties paid by the foreign corporation
for the section 954(c)(6) exception. For
purposes of this paragraph (f)(2)(iv)(B)
(2), an interest that is similar to an option
to acquire stock or an equity interest in-
cludes, but is not limited to, a warrant, a
convertible debt instrument, an instrument
other than debt that is convertible into
stock or an equity interest, a put, a stock or
equity interest subject to risk of forfeiture,
and a contract to acquire or sell stock or an
equity interest.
(3) Neither section 318(a)(4), nor
§1.958-2(e) or the principles thereof, ap-
plies to treat a person that has an option
to acquire stock or an equity interest, or
an interest similar to such an option, as
owning the stock or equity interest if a
principal purpose for the use of the option
or similar interest is to treat a person as a
related person with respect to a controlled
foreign corporation under this paragraph
(f). For purposes of this paragraph (f)(2)
(iv)(B)(3), an interest that is similar to
an option to acquire stock or an equity
interest includes, but is not limited to, a
warrant, a convertible debt instrument, an
instrument other than debt that is convert-
ible into stock or an equity interest, a put,
a stock or equity interest subject to risk of
forfeiture, and a contract to acquire or sell
stock or an equity interest.
(3) Applicability dates--(i) Gener-
al rule. Except as otherwise provided in
this paragraph (f)(3), paragraph (f)(2)(iv)
of this section applies to taxable years of
controlled foreign corporations ending
on or after the date of publication in the
Federal Register of the Treasury decision
adopting these rules as final regulations,
and taxable years of United States share-
holders in which or with which such tax-
able years end.
(ii) Option rule in paragraph (f)(2)(iv)
(B)(2) of this section. Paragraph (f)(2)(iv)
(B)(2) of this section applies to taxable
years of controlled foreign corporations
beginning after December 31, 2006, and
ending before the date of publication in
the Federal Register of the Treasury de-
cision adopting these rules as final regula-
tions, and taxable years of United States
shareholders in which or with which such
taxable years end.
(iii) Anti-abuse rule. Paragraphs (f)(2)
(iv)(B)(1) and (3) of this section apply to
taxable years of controlled foreign corpo-
rations ending on or after May 17, 2019,
and to taxable years of United States
shareholders in which or with which
such taxable years end, with respect to
amounts that are received or accrued by a
controlled foreign corporation on or after
May 17, 2019 to the extent the amounts
are received or accrued in advance of the
period to which such amounts are attribut-
able with a principal purpose of avoiding
the application of paragraph (f)(2)(iv)(B)
(1) or (3) of this section with respect to
such amounts.
* * * * *
Par. 4. Section 1.954-2 is amended by:
1. Revising paragraphs (c)(2)(iii)
(B) and (c)(2)(iv)(A).
2. Revising the heading of para-
graph (i).
3. Redesignating paragraph (i)(2)
as paragraph (i)(3).
2. Adding new paragraph (i)(2).
The revisions and addition read as fol-
lows:
§1.954-2 Foreign personal holding
company income.
* * * * *
(c) * * *
(2) * * *
(iii) * * *
(B) Deductions for amounts (including
rents and royalties) paid or incurred by the
lessor for the right to use the property (or
a component thereof) that generated the
rental income;
* * * * *
(iv) * * *
(A) Amounts (including rents and roy-
alties) paid or incurred by the lessor for the
right to use the property (or a component
thereof) that generated the rental income;
* * * * *
(i) Applicability dates.* * *
(2) Paragraphs (c)(2)(iii)(B) and (c)
(2)(iv)(A) of this section. Paragraphs (c)
(2)(iii)(B) and (c)(2)(iv)(A) of this section
apply for taxable years of controlled for-
eign corporations ending on or after the
date of publication in the Federal Reg-
ister of the Treasury decision adopting
these rules as final regulations, and for the
taxable years of United States sharehold-
ers in which or with which such taxable
years end.
* * * * *
Par. 5. Section 1.958-2 is amended by
revising paragraph (d)(1) introductory text
and the first sentence of paragraph (e) and
adding paragraph (h) to read as follows:
§1.958-2 Constructive ownership of
stock.
* * * * *

June 3, 2019 1292 Bulletin No. 2019–23
(d) * * *
(1) * * * Except as otherwise provid-
ed in paragraph (d)(2) of this section and
§1.954-1(f)--
* * * * *
(e) * * * Except as otherwise provided
in §1.954-1(f), if any person has an option
to acquire stock, such stock shall be con-
sidered as owned by such person. * * *
* * * * *
(h) Applicability date. Paragraphs (d)
(1) and (e) of this section apply for tax-
able years of controlled foreign corpora-
tions ending on or after the date of pub-
lication in the Federal Register of the
Treasury decision adopting these rules
as final regulations, and for the taxable
years of United States shareholders in
which or with which such taxable years
end.
Kirsten Wielobob,
Deputy Commissioner for Services
and Enforcement.
(Filed by the Office of the Federal Register on May
17, 2019, 8:45 a.m., and published in the issue of the
Federal Register for May 20, 2019, 84 F.R. 22751)

Bulletin No. 2019–23 i June 3, 2019
Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarified is used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion. It
is not used where a position in a prior rul-
ing is being changed.
Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modified is used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
with amplified and clarified, above).
Obsoleted describes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transactions.
This term is most commonly used in a ruling
that lists previously published rulings that
are obsoleted because of changes in laws or
regulations. A ruling may also be obsoleted
because the substance has been included in
regulations subsequently adopted.
Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a
period of time in separate rulings. If the
new ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previous-
ly published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cas-
es in litigation, or the outcome of a Ser-
vice study.
Abbreviations
The following abbreviations in current use
and formerly used will appear in material
published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.

June 3, 2019 ii Bulletin No. 2019–23
Numerical Finding List
1
Bulletin 2019–23
Action on Decision:
2019-1, 2019-08 I.R.B. 569
Announcements:
2019-1, 2019-06 I.R.B. 566
2019-2, 2019-12 I.R.B. 910
2019-3, 2019-15 I.R.B. 965
Notices:
2019-01, 2019-02 I.R.B. 275
2019-02, 2019-02 I.R.B. 281
2019-03, 2019-03 I.R.B. 350
2019-04, 2019-02 I.R.B. 282
2019-05, 2019-02 I.R.B. 283
2019-06, 2019-03 I.R.B. 353
2019-07, 2019-09 I.R.B. 740
2019-08, 2019-03 I.R.B. 354
2019-09, 2019-04 I.R.B. 403
2019-10, 2019-13 I.R.B. 913
2019-11, 2019-05 I.R.B. 430
2019-13, 2019-08 I.R.B. 580
2019-16, 2019-10 I.R.B. 763
2019-17, 2019-12 I.R.B. 907
2019-18, 2019-13 I.R.B. 915
2019-19, 2019-12 I.R.B. 907
2019-20, 2019-14 I.R.B. 927
2019-21, 2019-14 I.R.B. 927
2019-22, 2019-14 I.R.B. 931
2019-23, 2019-15 I.R.B. 941
2019-24, 2019-14 I.R.B. 932
2019-25, 2019-15 I.R.B. 942
2019-26, 2019-15 I.R.B. 943
2019-28, 2019-18 I.R.B. 1077
2019-29, 2019-19 I.R.B. 1083
2019-35, 2019-23 I.R.B. 1277
2019-36, 2019-23 I.R.B. 1280
2019-37, 2019-23 I.R.B. 1283
2019-38, 2019-23 I.R.B. 1284
Proposed Regulations:
REG-104259-18, 2019-02 I.R.B. 300
REG-104352-18, 2019-03 I.R.B. 357
REG-106089-18, 2019-05 I.R.B. 431
REG-134652-18, 2019-09 I.R.B. 747
REG-141739-08, 2019-09 I.R.B. 757
REG-121694-16, 2019-16 I.R.B. 1032
REG-135671-17, 2019-16 I.R.B. 1035
REG-103083-18, 2019-17 I.R.B. 1046
REG-113943-17, 2019-17 I.R.B. 1067
REG-143686-07, 2019-17 I.R.B. 1072
REG-124627-11, 2019-17 I.R.B. 1073
REG-117062-18, 2019-19 I.R.B. 1074
REG-125435-15, 2019-23 I.R.B. 1286
Revenue Procedures:
2019-1, 2019-01 I.R.B. 1
2019-2, 2019-01 I.R.B. 106
2019-3, 2019-01 I.R.B. 130
2019-4, 2019-01 I.R.B. 146
2019-5, 2019-01 I.R.B. 230
2019-6, 2019-02 I.R.B. 284
2019-7, 2019-01 I.R.B. 268
2019-8, 2019-03 I.R.B. 347
2019-9, 2019-02 I.R.B. 293
2019-10, 2019-02 I.R.B. 296
2019-11, 2019-09 I.R.B. 742
2019-12, 2019-04 I.R.B. 401
2019-13, 2019-09 I.R.B. 744
2019-14, 2019-15 I.R.B. 948
2019-15, 2019-14 I.R.B. 939
2019-17, 2019-17 I.R.B. 1045
2019-18, 2019-18 I.R.B. 1077
2019-19, 2019-19 I.R.B. 1086
Revenue Rulings:
2019-03, 2019-02 I.R.B. 272
2019-04, 2019-07 I.R.B. 567
2019-05, 2019-11 I.R.B. 766
2019-06, 2019-14 I.R.B. 919
2019-07, 2019-10 I.R.B. 761
2019-08, 2019-14 I.R.B. 923
2019-09, 2019-14 I.R.B. 925
2019-10, 2019-16 I.R.B. 1010
2019-11, 2019-17 I.R.B. 1041
2019-12, 2019-19 I.R.B. 1081
2019-14, 2019-23 I.R.B. 1275
Treasury Decisions:
9844, 2019-11 I.R.B. 781
9845, 2019-08 I.R.B. 570
9846, 2019-09 I.R.B. 583
9847, 2019-09 I.R.B. 670
9848, 2019-11 I.R.B. 897
9850, 2019-12 I.R.B. 904
9852, 2019-16 I.R.B. 1010
9853, 2019-16 I.R.B. 1026
9855, 2019-17 I.R.B. 1042
9854, 2019-18 I.R.B. 1075
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

Bulletin No. 2019–23 iii June 3, 2019
Finding List of Current Actions on
Previously Published Items
1
Bulletin 2019–23
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2018–27 through 2018–52 is in Internal Revenue Bulletin
2018–52, dated December 27, 2018.

Internal Revenue Service
Washington, DC 20224
Official Business
Penalty for Private Use, $300
INTERNAL REVENUE BULLETIN
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