highlights bulletin no. 2016–14 of this issuetions will affect non-functionally integrated type...

HIGHLIGHTSOF THIS ISSUEThese synopses are intended only as aids to the reader inidentifying the subject matter covered. They may not berelied upon as authoritative interpretations.

SPECIAL ANNOUNCEMENT

Notice 2016–26, page 533.The Department of Treasury and Internal Revenue Serviceinvite public comment on recommendations for items thatshould be included on the 2016–2017 Priority Guidance Plan.

INCOME TAX

REG–109822–15, page 535.These proposed regulations provide guidance on the informa-tion required to be reported for country-by-country (CbC) re-porting. The proposed regulations generally require UnitedStates persons (other than individuals) that are the ultimateparent of a U.S. multinational enterprise (MNE) group earningannual revenues of $850,000,000 or more to report certainfinancial information on a tax jurisdiction-by-tax jurisdiction ba-sis. The regulations require the U.S. ultimate parent to list theU.S. MNE group’s business entities indicating each entity’s taxjurisdiction (if any), country of organization, tax identificationnumber (if any), and main business activity, as well as CbCfinancial information for each tax jurisdiction in which the U.S.MNE does business. The CbC financial information includesincome, profits, income taxes, stated capital, accumulatedearnings, number of employees, and tangible assets other thancash.

Rev. Rul. 2016–06, page 519.Interest rates: underpayment and overpayments. The rates forinterest determined under section 6621 of the code for thecalendar quarter beginning April 1, 2016, will be 4 percent foroverpayments (3 percent in the case of a corporation), 4percent for the underpayments, and 6 percent for large cor-poration underpayments. The rate of interest paid on the por-tion of a corporation overpayment exceeding $10,000 will be1.5 percent.

Rev. Rul. 2016–09, page 530.Federal rates; adjusted federal rates; adjusted federal long-term rate and the long-term exempt rate. For purposes ofsections 382, 642, 1274, 1288, and other sections of theCode, tables set forth the rates for April 2016.

Rev. Proc. 2016–21, page 533.Guidance is provided to individuals who fail to meet the eligi-bility requirements of section 911(d)(1) of the Internal RevenueCode because adverse conditions in a foreign country precludethe individual from meeting those requirements. Revenue Pro-cedure 2016–21 provides a country for tax year 2015 and thedate that country is subject to the section 911(d)(4) waiver.

EXEMPT ORGANIZATIONS

T.D. 9746, page 515.This document contains final regulations regarding the distri-bution requirement for non-functionally integrated Type III sup-porting organizations. The regulations reflect changes to thelaw made by the Pension Protection Act of 2006. The regula-tions will affect non-functionally integrated Type III supportingorganizations and their supported organizations.

(Continued on the next page)

Finding Lists begin on page ii.

Bulletin No. 2016–14April 4, 2016

ADMINISTRATIVE

Announcement 2016–14, page 535.Announcement 2016–14 informs taxpayers and practitionersthat the IRS has revised Form 3115, Application for Change inAccounting Method, and its instructions. The Form 3115 (Rev.December 2015) replaces the December 2009 version. Theannouncement also provides a transition period and transitionguidance.

Notice 2016–26, page 533.The Department of Treasury and Internal Revenue Serviceinvite public comment on recommendations for items thatshould be included on the 2016–2017 Priority Guidance Plan.

The IRS MissionProvide America’s taxpayers top-quality service by helpingthem understand and meet their tax responsibilities and en-force the law with integrity and fairness to all.

IntroductionThe Internal Revenue Bulletin is the authoritative instrument ofthe Commissioner of Internal Revenue for announcing officialrulings and procedures of the Internal Revenue Service and forpublishing Treasury Decisions, Executive Orders, Tax Conven-tions, legislation, court decisions, and other items of generalinterest. It is published weekly.

It is the policy of the Service to publish in the Bulletin allsubstantive rulings necessary to promote a uniform applicationof the tax laws, including all rulings that supersede, revoke,modify, or amend any of those previously published in theBulletin. All published rulings apply retroactively unless other-wise indicated. Procedures relating solely to matters of internalmanagement are not published; however, statements of inter-nal practices and procedures that affect the rights and dutiesof taxpayers are published.

Revenue rulings represent the conclusions of the Service onthe application of the law to the pivotal facts stated in therevenue ruling. In those based on positions taken in rulings totaxpayers or technical advice to Service field offices, identify-ing details and information of a confidential nature are deletedto prevent unwarranted invasions of privacy and to comply withstatutory requirements.

Rulings and procedures reported in the Bulletin do not have theforce and effect of Treasury Department Regulations, but theymay be used as precedents. Unpublished rulings will not berelied on, used, or cited as precedents by Service personnel inthe disposition of other cases. In applying published rulings andprocedures, 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 unlessthe 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 ofthe Internal Revenue Code of 1986.

Part II.—Treaties and Tax Legislation.This part is divided into two subparts as follows: Subpart A, TaxConventions and Other Related Items, and Subpart B, Legisla-tion and Related Committee Reports.

Part III.—Administrative, Procedural, and Miscellaneous.To the extent practicable, pertinent cross references to thesesubjects are contained in the other Parts and Subparts. Alsoincluded in this part are Bank Secrecy Act Administrative Rul-ings. Bank Secrecy Act Administrative Rulings are issued bythe Department of the Treasury’s Office of the Assistant Sec-retary (Enforcement).

Part IV.—Items of General Interest.This part includes notices of proposed rulemakings, disbar-ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index forthe matters published during the preceding months. Thesemonthly indexes are cumulated on a semiannual basis, and arepublished in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

April 4, 2016 Bulletin No. 2016–14

Part I. Rulings and Decisions Under the Internal Revenue Codeof 1986T.D. 9746

DEPARTMENT OF THETREASURYInternal Revenue Service26 CFR Part 1

Payout Requirements forType III SupportingOrganizations That Are NotFunctionally Integrated

AGENCY: Internal Revenue Service (IRS),Treasury.

ACTION: Final regulations and removalof temporary regulations.

SUMMARY: This document contains fi-nal regulations regarding the distributionrequirement for non-functionally inte-grated Type III supporting organizations.The regulations reflect changes to the lawmade by the Pension Protection Act of2006. The regulations will affect non-functionally integrated Type III support-ing organizations and their supportedorganizations.

DATES: Effective Date: These regula-tions are effective on December 21, 2015.

FOR FURTHER INFORMATIONCONTACT: Jonathan Carter at (202) 317-4394 or Mike Repass at (202) 317-6176(not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

1. Overview

This document contains amendmentsto the Income Tax Regulations (26 CFRpart 1) regarding organizations describedin section 509(a)(3) of the Internal Reve-nue Code (Code). An organization de-scribed in section 501(c)(3) is classified aseither a private foundation or a publiccharity. To be classified as a public char-ity, an organization must be described insection 509(a)(1), (2), or (3). Organiza-tions described in section 509(a)(3) areknown as “supporting organizations.”

Supporting organizations achieve theirpublic charity status by supporting one ormore organizations described in section509(a)(1) or (2), which in this context arereferred to as “supported organizations.”

To be described in section 509(a)(3),an organization must satisfy (1) an orga-nizational test, (2) an operational test, (3)a relationship test, and (4) a disqualifiedperson control test. The organizationaland operational tests require that a sup-porting organization be organized and atall times thereafter operated exclusivelyfor the benefit of, to perform the functionsof, or to carry out the purposes of one ormore supported organizations. The rela-tionship test requires a supporting organi-zation to establish one of three types ofrelationships with one or more supportedorganizations. Finally, the disqualified per-son control test requires that a supportingorganization not be controlled directly orindirectly by certain disqualified persons.

Each of the described tests is a neces-sary requirement for an organization toestablish that it qualifies as a supportingorganization. These final regulations,however, focus primarily on the relation-ship test for supporting organizationsthat are “operated in connection with”their supporting organization(s), other-wise known as “Type III” supporting or-ganizations. Specifically, the final regula-tions reflect statutory changes enacted bythe Pension Protection Act of 2006, P.L.109–280 (120 Stat. 780 (2006) (PPA)).Section 1241(d)(1) of the PPA directedthe Secretary of the Treasury to promul-gate regulations under section 509 thatestablish a new distribution requirementfor Type III supporting organizations thatare not “functionally integrated” to ensurethat a “significant amount” is paid to sup-ported organizations. For this purpose, theterm “functionally integrated” means aType III supporting organization that isnot required under Treasury regulations tomake payments to supported organiza-tions because the supporting organizationengages in activities that relate to per-forming the functions of, or carrying outthe purposes of, its supported organiza-tion(s). These final regulations address the

amount that a Type III supporting organi-zation that is not functionally integrated (anon-functionally integrated (NFI) Type IIIsupporting organization) must annuallydistribute to its supported organization(s).

2. Prior Rulemaking

On August 2, 2007, the Treasury Depart-ment and the IRS published in the FederalRegister (72 FR 42335) an advance noticeof proposed rulemaking (ANPRM) (REG–155929–06) in response to the PPA. TheANPRM described proposed rules to imple-ment the changes made by the PPA to theType III supporting organization require-ments and solicited comments regardingthose proposed rules.

On September 24, 2009, the TreasuryDepartment and the IRS published in theFederal Register (74 FR 48672) a noticeof proposed rulemaking (the 2009 NPRM)(REG–155929–06). The 2009 NPRMcontained proposed regulations (the 2009proposed regulations) setting forth the re-quirements to qualify as a Type III sup-porting organization under the PPA.

On December 28, 2012, the TreasuryDepartment and the IRS published in theFederal Register (77 FR 76382) a Trea-sury decision (TD 9605) containing finaland temporary regulations (the 2012 TD)regarding the requirements to qualify as aType III supporting organization. Basedon the comments received, the 2012 TDmade certain changes to the rules pro-posed in the 2009 NPRM, included in thetemporary regulations significant changesto the distribution requirement, and re-served certain topics for further consider-ation. The 2012 TD was effective andapplicable on December 28, 2012. Theapplicability of the temporary regulationsexpires on or before December 21, 2015.On December 28, 2012, the Treasury De-partment and the IRS also published in theFederal Register (77 FR 76426) a noticeof proposed rulemaking (the 2012 NPRM)(REG–155929–06) that incorporated thetext of the temporary regulations in the2012 TD by cross-reference. The IRS re-ceived five comments on the 2012 NPRM.The comments were considered in devel-

Bulletin No. 2016–14 April 4, 2016515

oping these final regulations and are avail-able for public inspection at www.regula-tions.gov or upon request. No publichearing was requested.

Under the 2012 TD, an NFI Type IIIsupporting organization must annuallydistribute to or for the use of one or moresupported organizations an amount equal-ing or exceeding the supporting organiza-tion’s “distributable amount” for the tax-able year. See § 1.509(a)–4(i)(5)(ii). Thetemporary regulations contained in the2012 TD defined an NFI Type III support-ing organization’s “distributable amount”as equal to the greater of (1) 85 percent ofthe supporting organization’s adjusted netincome or (2) its “minimum asset amount,”in each case for the immediately precedingtaxable year. The temporary regulations de-fined “minimum asset amount” as 3.5 per-cent of the excess of the aggregate fair mar-ket value of the supporting organization’snon-exempt-use assets over the acquisitionindebtedness with respect to such nonex-empt use assets. Additionally, the temporaryregulations provided that the determinationof the aggregate fair market value of an NFIType III supporting organization’s non-exempt-use assets would be made using thevaluation methods generally applicable to pri-vate foundations under § 53.4942(a)–2(c). Thetemporary regulations also provided that,consistent with the private foundationrules, the “non-exempt use” assets of asupporting organization do not includecertain investment assets described in§ 53.4942(a)–2(c)(2) or assets used (orheld for use) to carry out the exempt pur-poses of the supported organization(s) (asdetermined by applying the principles de-scribed in § 53.4942(a)–2(c)(3)).

After consideration of all the com-ments received in response to the 2012NPRM, this Treasury decision adopts the2012 NPRM without change, except to (1)conform the provision regarding the val-uation of non-exempt-use assets to thesection 4942 regulation provision that itcross-references (§ 53.4942(a)–2(c)(2)),and (2) replace references in § 1.509(a)–4to the temporary regulations with refer-ences to these final regulations. Thus,other than the change conforming the pro-vision in the final regulations regardingthe valuation of non-exempt-use assets tothe provision in the section 4942 regula-tions, these final regulations are the same

as the temporary regulations that havebeen applicable to Type III supportingorganizations since December 28, 2012.Additionally, this Treasury decision re-moves the temporary regulations.

The Treasury Department and the IRSintend to publish a notice of proposedrulemaking for Type III supporting orga-nizations in the near future. Among otherproposals, the new proposed regulationswould make one change to these finalregulations. Specifically, the new pro-posed regulations will propose removal ofthe provision in these final regulations thatreduces the distributable amount by theamount of taxes subtitle A of the Codeimposes on a supporting organization dur-ing the immediately preceding taxable year.In addition, the new proposed regulationswill propose specific rules regarding the re-quirements for Type III supporting organi-zations that support governmental supportedorganizations to be treated as functionallyintegrated Type III supporting organiza-tions. In addition, the new proposed regula-tions would provide transition relief beyondthe period provided in Notice 2014–4,2014–2 IRB 274. Supporting organizationsmay continue to rely on the transitional ruledescribed in Section 3.01 of Notice 2014–4until the date that the notice of proposedrulemaking prescribing the new proposedregulations under § 1.509(a)–4(i)(4)(iv) ispublished in the Federal Register. In thenotice of proposed rulemaking publishingthe new proposed regulations, the TreasuryDepartment and the IRS will request com-ments on all proposed changes.

Explanation of Provisions andSummary of Comments

This section discusses the commentsreceived in response to the 2012 NPRM.

1. Distributable Amount

The PPA directed the promulgation ofTreasury regulations requiring NFI TypeIII supporting organizations to make dis-tributions of a percentage of either incomeor assets to their supported organizationsto ensure that a significant amount is paidto those supported organizations. Underthe Treasury regulations in effect whenPPA was enacted, certain Type III sup-porting organizations were required todistribute “substantially all” of their in-

come to one or more publicly supportedorganizations. For this purpose, “substan-tially all” had the same meaning of 85 per-cent or more that it had in § 53.4942(b)–1(c)(defining “substantially all” for purposes ofthe income test for private operating foun-dations). See Rev. Rul. 76–208, 1976–1C.B. 161.

The 2009 NPRM had proposed to re-place the income-based distribution re-quirement with an asset-based distributionrequirement of 5 percent of the fair marketvalue of an organization’s non-exempt-use assets. In response to comments, the2012 NPRM instead proposed to keep thehistoric income-based distribution re-quirement, and proposed to combine itwith a reduced percentage-of-assets distri-bution requirement. Therefore, the tempo-rary and proposed distributable amountfor NFI Type III supporting organizationswas the greater of 85 percent of adjustednet income or 3.5 percent of the net fairmarket value of non-exempt-use assets, ineach case as determined for the immedi-ately preceding taxable year.

One commenter stated that a distribu-tion requirement based on 3.5 percent ofassets is sufficient to achieve the goals ofCongress and that the distribution require-ment based on 85 percent of incomeshould be removed. The commenter statedthat a distribution requirement based onincome would prevent a supporting orga-nization from smoothing its returns inhigh-earning years with low-earningyears, and could result in organizationsshifting investments away from income-producing assets toward appreciating as-sets to avoid erosion of an endowmenteven if that investment strategy results inforgoing higher returns. The commenteralso said that having two tests increasesadministrative costs for a supporting or-ganization by requiring it to make twocalculations rather than one to determineits distributable amount, thus reducing theamount distributed for true charitable pur-poses. Another commenter suggested thatorganizations that were not previously iden-tified as avoiding the prior substantially-all-of-income distribution requirement shouldbe exempted from the asset-based distribu-tion requirement because it potentiallyharms entities that are invested primarily innon-liquid assets.


The Treasury Department and the IRSbelieve that a distribution requirementequal to the greater of 85 percent of ad-justed net income or 3.5 percent of the netfair market value of an organization’snon-exempt-use assets strikes an appro-priate balance. It ensures that NFI Type IIIsupporting organizations distribute signif-icant amounts to their supported organiza-tions, as Congress directed in the PPA.Further, the 85 percent of income test willmake it more likely that supported orga-nizations will timely benefit from higherreturns received by their supporting orga-nizations. Conversely, in years with lowerreturns or for organizations that invest inassets that produce largely appreciationrather than income, a 3.5-percent of assetsdistribution requirement will apply, whichis less than the 5-percent of assets distri-bution requirement that applies to privatenon-operating foundations. With respectto the suggestion that certain organiza-tions be permitted to comply only with theincome-based distribution requirement,the Treasury Department and the IRS be-lieve it would be inequitable and admin-istratively difficult to apply one require-ment to some NFI Type III supportingorganizations but another requirement toothers.

Therefore, the final regulations adoptthe annual distributable amount rule of the2012 NPRM without changes.

2. Income from Distributions fromSubsidiary

The 2012 NPRM provided that, forpurposes of the calculation of the annualdistributable amount, a supporting organi-zation’s adjusted net income would bedetermined using the principles of section4942(f) and § 53.4942(a)–2(d). These pro-visions apply the principles of subtitle Aof the Code.

One commenter requested that the def-inition of adjusted net income excludedividend income resulting from a distribu-tion of long-term capital gain property to asupporting organization by a corporatesubsidiary. The commenter noted thatwithout this exclusion, the receipt of dis-tributed property could result in a muchhigher distribution requirement for thatone year, but without producing any liquid

assets to satisfy the higher distributionrequirement.

The 2012 NPRM provided that ad-justed net income be determined by ap-plying the principles that apply in calcu-lating the adjusted net income of privateoperating foundations under sections4942(d) and 4942(j)(3) and are generallybased on long-standing principles undersubtitle A of the Code. The Treasury De-partment and the IRS believe that the rulesfor calculating adjusted net income shouldbe applied consistently for all taxpayersand do not believe that there is a justifi-cation for the rules to be altered solely forsupporting organizations. Therefore, thefinal regulations do not adopt this com-ment.

3. Real Property Valuations

The 2012 NPRM provided that for pur-poses of determining the distributableamount for a taxable year, non-exempt-useassets would be valued using the principlesgenerally applicable to private foundationsunder § 53.4942(a)–2(c). One commentersuggested allowing the use of state propertytax valuations for purposes of valuing realproperty under § 53.4942(a)–2(c).

Section 53.4942(a)–2(c) applies theprinciples of regulations under section2031, which generally apply for estate taxpurposes, to the valuation of real property.Section 20.2031–1(b) provides that thevalue at which property is assessed forlocal tax purposes may be considered onlyif that value represents the fair marketvalue as of the valuation date. Section20.2031–3 further provides that if realproperty is leased or otherwise used in abusiness, special valuation rules mayapply. The Treasury Department and theIRS continue to believe that the samevaluation principles that apply to privatefoundations should apply to NFI TypeIII supporting organizations. Therefore,the final regulations do not adopt thiscomment.

Effective Date

These regulations are effective on De-cember 21, 2015.

Statement of Availability of IRSDocuments

The IRS Notice 2014–4 cited in thispreamble is published in the Internal Rev-enue Bulletin and is available from theSuperintendent of Documents, U.S. Gov-ernment Printing Office, Washington, DC20402, or by visiting the IRS Web site athttp://www.irs.gov.

Special Analyses

Certain IRS regulations, including thisone, are exempt from the requirements ofExecutive Order 12866, as supplementedand reaffirmed by Executive Order 13563.Therefore, a regulatory impact assessmentis not required. It has also been deter-mined that section 553(b) of the Admin-istrative Procedure Act (5 U.S.C. chapter5) does not apply to these regulations, andbecause these regulations do not impose acollection of information on small entities,a Regulatory Flexibility Analysis underthe Regulatory Flexibility Act (5 U.S.C.chapter 6) is not required. Pursuant tosection 7805(f) of the Code, the temporaryand proposed regulations preceding thesefinal regulations were submitted to theChief Counsel for Advocacy of the SmallBusiness Administration for comment ontheir impact on small business, and nocomments were received.

Drafting Information

The principal authors of these regula-tions are Mike Repass and JonathanCarter, Office of Associate Chief Counsel(Tax-Exempt and Government Entities).However, other personnel from the Trea-sury Department and the IRS participatedin their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and record-keeping requirements.

Adoption of Amendments to theRegulations

Accordingly, 26 CFR part 1 isamended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation forpart 1 continues to read in part as follows:


Authority: 26 U.S.C. 7805 * * *Par. 2. Section 1.509(a)–4 is amended

by:1. Amending the second sentence of para-

graph (i)(4)(ii)(C) to remove the lan-guage “§ 1.509(a)–4T(i)(8)(ii)” and add-ing “paragraph (i)(8)(ii) of this section”in its place.

2. Amending paragraph (i)(5)(ii)(A)to remove the language “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph(i)(5)(ii)(B) of this section” in its place.

3. Revising paragraph (i)(5)(ii)(B).4. Revising paragraph (i)(5)(ii)(C).5. Amending the last sentence of para-

graph (i)(5)(ii)(D) to remove the lan-guage “§ 1.509(a)–4T(i)(5)(ii)(B)” andadding “paragraph (i)(5)(ii)(B) of thissection” in its place.

6. Amending the first sentence of Exam-ple 1 of paragraph (i)(5)(iii)(D) to re-move the language “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph(i)(5)(ii)(B) of this section” in its place.

7. Amending the first sentence of Exam-ple 2 of paragraph (i)(5)(iii)(D) to re-move the language “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph(i)(5)(ii)(B) of this section” in its place.

8. Amending the third sentence of Exam-ple 3 of paragraph (i)(5)(iii)(D) to re-move the language “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph(i)(5)(ii)(B) of this section” in its place.

9. Amending the fourth sentence of Exam-ple 4 of paragraph (i)(5)(iii)(D) to re-move the language “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph(i)(5)(ii)(B) of this section” in its place.

10. Amending paragraph (i)(6)(iv) to re-move the language “§ 1.509(a)–4T(i)(8)(ii)” and adding “paragraph(i)(8)(ii) of this section” in its place.

11. Amending paragraph (i)(7)(ii) to re-move the language “§ 1.509(a)–4T(i)(5)(ii)(B)” and adding “paragraph(i)(5)(ii)(B) of this section” in its place.

12. Revising paragraph (i)(8).13. Revising paragraph (l).

The revisions and additions read as fol-lows:

§ 1.509(a)–4 Supporting organizations.

* * * * *(i) * * *(5) * * *

(ii) * * *(B) Distributable amount. Except as

provided in paragraphs (i)(5)(ii)(D) and(E) of this section, the distributableamount for a taxable year is an amountequal to the greater of 85 percent of thesupporting organization’s adjusted net in-come (as determined by applying theprinciples of section 4942(f) and§ 53.4942(a)–2(d) of this chapter) for thetaxable year immediately preceding thetaxable year of the required distribution(immediately preceding taxable year) orits minimum asset amount (as defined inparagraph (i)(5)(ii)(C) of this section) forthe immediately preceding taxable year,reduced by the amount of taxes imposed onthe supporting organization under subtitle Aof the Internal Revenue Code during theimmediately preceding taxable year.

(C) Minimum asset amount. For pur-poses of this paragraph (i)(5), a supportingorganization’s minimum asset amount forthe immediately preceding taxable year is3.5 percent of the excess of the aggregatefair market value of all of the supportingorganization’s non-exempt-use assets (de-termined under paragraph (i)(8) of thissection) in that immediately precedingtaxable year over the acquisition indebt-edness with respect to such non-exempt-use assets (determined under section514(c)(1) without regard to the taxableyear in which the indebtedness was in-curred), increased by—

(1) Amounts received or accrued dur-ing the immediately preceding taxableyear as repayments of amounts whichwere taken into account by the organiza-tion to meet the distribution requirementimposed in this paragraph (i)(5)(ii) for anytaxable year;

(2) Amounts received or accrued dur-ing the immediately preceding taxableyear from the sale or other disposition ofproperty to the extent that the acquisitionof such property was taken into accountby the organization to meet the distribu-tion requirement imposed in this para-graph (i)(5)(ii) for any taxable year; and

(3) Any amount set aside under para-graph (i)(6)(v) of this section to the extentit is determined during the immediatelypreceding taxable year that such amount isnot necessary for the purposes for which itwas set aside and such amount was takeninto account by the organization to meet

the distribution requirement imposed inthis paragraph (i)(5)(ii) for any taxableyear.

* * * * *(8) Valuation of non-exempt-use as-

sets. For purposes of determining its dis-tributable amount for a taxable year, asupporting organization determines itsminimum asset amount, as defined inparagraph (i)(5)(ii)(C) of this section, bydetermining the aggregate fair marketvalue of all of its non-exempt-use assets inthe immediately preceding taxable year.For these purposes, the determination ofthe aggregate fair market value of all non-exempt-use assets shall be made using thevaluation methods described in§ 53.4942(a)–2(c) of this chapter. The ag-gregate fair market value of the support-ing organization’s non-exempt-use assetsshall not be reduced by any amount that isset aside under paragraph (i)(6)(v) of thissection. For these purposes, the non-exempt use assets of the supporting orga-nization are all assets of the supportingorganization other than—

(i) Assets described in § 53.4942(a)–2(c)(2)(i) through (iv) of this chapter(with the term “supporting organization”being substituted for “foundation” or “pri-vate foundation” and the date “August 17,2006” being substituted for “December31, 1969”); and

(ii) Exempt-use assets, which are assetsthat are used (or held for use) directly incarrying out the exempt purposes of thesupporting organization’s supported orga-nization(s) (determined by applying theprinciples described in § 53.4942(a)–2(c)(3) of this chapter) by either—

(A) The supporting organization; or(B) One or more supported organiza-

tions, but only if the supporting organiza-tion makes the asset available to the sup-ported organization(s) at no cost (ornominal rent) to the supported organiza-tion(s).

* * * * *(l) Effective/applicability dates. Para-

graphs (a)(6), (f)(5), (i)(1) through(i)(4)(ii)(B), (i)(4)(ii)(D) through (i)(5)(i),(i)(5)(ii)(E) through (i)(5)(iii)(C), (i)(6)(i)through (iii), (i)(6)(v) through (i)(7)(i),and (i)(9) through (11) of this section areapplicable on December 28, 2012. Para-graphs (i)(4)(ii)(C), (i)(5)(ii)(A) through(i)(5)(ii)(D), (i)(5)(iii)(D), (i)(6)(iv),


(i)(7)(ii) and (i)(8) of this section are ap-plicable on December 21, 2015. See para-graphs (i)(5)(ii)(B), (i)(5)(ii)(C), and(i)(8) of § 1.509(a)–4T contained in 26CFR part 1, revised as of April 1, 2015,for certain rules regarding non-functionally integrated Type III support-ing organizations effective before Decem-ber 21, 2015.

* * * * *

Section 1.509(a)–4T [Removed].

Par. 3. Section 1.509(a)–4T is removed.

John DalrympleDeputy Commissioner for

Services and Enforcement.

Approved: December 14, 2015.

Mark J. MazurAssistant Secretary of the

Treasury (Tax Policy).

(Filed by the Office of the Federal Register on December 21,2015, 4:15 p.m., and published in the issue of the FederalRegister for December 23, 2015, 80 F.R. 79684)

Section 6621.—Determination of Rate ofInterest26 CFR 301.6621–1: Interest rate.

Rev. Rul. 2016–06

Rev. Rul. 2016–06

Section 6621 of the Internal RevenueCode establishes the interest rates onoverpayments and underpayments of tax.Under section 6621(a)(1), the overpay-ment rate is the sum of the federal short-term rate plus 3 percentage points (2 per-centage points in the case of acorporation), except the rate for the por-tion of a corporate overpayment of taxexceeding $10,000 for a taxable period isthe sum of the federal short-term rate plus0.5 of a percentage point. Under section

6621(a)(2), the underpayment rate is thesum of the federal short-term rate plus 3percentage points.

Section 6621(c) provides that for pur-poses of interest payable under section6601 on any large corporate underpay-ment, the underpayment rate under section6621(a)(2) is determined by substituting“5 percentage points” for “3 percentagepoints.”

See section 6621(c) and section301.6621–3 of the Regulations on Proce-dure and Administration for the definitionof a large corporate underpayment and forthe rules for determining the applicabledate. Section 6621(c) and section301.6621–3 are generally effective for pe-riods after December 31, 1990.

Section 6621(b)(1) provides that theSecretary will determine the federal short-term rate for the first month in each cal-endar quarter. Section 6621(b)(2)(A) pro-vides that the federal short-term ratedetermined under section 6621(b)(1) forany month applies during the first calen-dar quarter beginning after that month.Section 6621(b)(2)(B) provides that in de-termining the addition to tax under section6654 for failure to pay estimated tax forany taxable year, the federal short-termrate that applies during the third monthfollowing the taxable year also appliesduring the first 15 days of the 4th monthfollowing the taxable year. Section6621(b)(3) provides that the federal short-term rate for any month is the federalshort-term rate determined during thatmonth by the Secretary in accordancewith section 1274(d), rounded to the near-est full percent (or, if a multiple of 1/2 of1 percent, the rate is increased to the nexthighest full percent).

Notice 88–59, 1988–1 C.B. 546, an-nounced that in determining the quarterlyinterest rates to be used for overpaymentsand underpayments of tax under section6621, the Internal Revenue Service willuse the federal short-term rate based ondaily compounding because that rate ismost consistent with section 6621 which,

pursuant to section 6622, is subject todaily compounding.

The federal short-term rate determinedin accordance with section 1274(d) duringJanuary 2016 is the rate published in Rev-enue Ruling 2016–4, 2016–6 IRB 299 totake effect beginning February 1, 2016.The federal short-term rate, rounded to thenearest full percent, based on daily com-pounding determined during the month ofApril 2016 is 1 percent. Accordingly, anoverpayment rate of 4 percent (3 percentin the case of a corporation) and an un-derpayment rate of 4 percent are estab-lished for the calendar quarter beginningApril 1, 2016. The overpayment rate forthe portion of a corporate overpaymentexceeding $10,000 for the calendar quar-ter beginning April 1, 2016 is 1.5 percent.The underpayment rate for large corporateunderpayments for the calendar quarterbeginning April 1, 2016, is 6 percent.These rates apply to amounts bearing in-terest during that calendar quarter.

Under section 6621(b)(2)(B), the 3 per-cent rate that applies to estimated tax un-derpayments for the first calendar quarterin 2016, as provided in Rev. Rul. 2015–23, 2015–52 I.R.B., dated Dec. 28, 2015,also applies to such underpayments for thefirst 15 days in April 2016.

Interest factors for daily compound in-terest for annual rates of 1.5 percent, 3percent, 4 percent and 6 percent are pub-lished in Tables 56, 59, 61, and 65 of Rev.Proc. 95–17, 1995–1 C.B. 610, 613, 615,and 619.

Annual interest rates to be com-pounded daily pursuant to section 6622that apply for prior periods are set forthin the tables accompanying this revenueruling.

DRAFTING INFORMATION

The principal author of this revenueruling is Deborah Colbert-James of theOffice of Associate Chief Counsel (Proce-dure & Administration). For further infor-mation regarding this revenue ruling, con-tact Ms. Colbert-James at (202) 317-3400(not a toll-free number).


TABLE OF INTEREST RATESPERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986

OVERPAYMENTS AND UNDERPAYMENTS

PERIOD RATE In 1995–1 C.B.DAILY RATE TABLE

Before Jul. 1, 1975 6% Table 2, pg. 557

Jul. 1, 1975—Jan. 31, 1976 9% Table 4, pg. 559

Feb. 1, 1976—Jan. 31, 1978 7% Table 3, pg. 558

Feb. 1, 1978—Jan. 31, 1980 6% Table 2, pg. 557

Feb. 1, 1980—Jan. 31, 1982 12% Table 5, pg. 560

Feb. 1, 1982—Dec. 31, 1982 20% Table 6, pg. 560

Jan. 1, 1983—Jun. 30, 1983 16% Table 37, pg. 591

Jul. 1, 1983—Dec. 31, 1983 11% Table 27, pg. 581

Jan. 1, 1984—Jun. 30, 1984 11% Table 75, pg. 629

Jul. 1, 1984—Dec. 31, 1984 11% Table 75, pg. 629

Jan. 1, 1985—Jun. 30, 1985 13% Table 31, pg. 585

Jul. 1, 1985—Dec. 31, 1985 11% Table 27, pg. 581

Jan. 1, 1986—Jun. 30, 1986 10% Table 25, pg. 579

Jul. 1, 1986—Dec. 31, 1986 9% Table 23, pg. 577

TABLE OF INTEREST RATES

FROM JAN. 1, 1987 — DEC. 31, 1998

OVERPAYMENTS UNDERPAYMENTS

1995–1 C.B. 1995–1 C.B.RATE TABLE PG RATE TABLE PG

Jan. 1, 1987—Mar. 31, 1987 8% 21 575 9% 23 577

Apr. 1, 1987—Jun. 30, 1987 8% 21 575 9% 23 577

Jul. 1, 1987—Sep. 30, 1987 8% 21 575 9% 23 577

Oct. 1, 1987—Dec. 31, 1987 9% 23 577 10% 25 579

Jan. 1, 1988—Mar. 31, 1988 10% 73 627 11% 75 629

Apr. 1, 1988—Jun. 30, 1988 9% 71 625 10% 73 627

Jul. 1, 1988—Sep. 30, 1988 9% 71 625 10% 73 627

Oct. 1, 1988—Dec. 31, 1988 10% 73 627 11% 75 629

Jan. 1, 1989—Mar. 31, 1989 10% 25 579 11% 27 581

Apr. 1, 1989—Jun. 30, 1989 11% 27 581 12% 29 583

Jul. 1, 1989—Sep. 30, 1989 11% 27 581 12% 29 583

Oct. 1, 1989—Dec. 31, 1989 10% 25 579 11% 27 581

Jan. 1, 1990—Mar. 31, 1990 10% 25 579 11% 27 581

Apr. 1, 1990—Jun. 30, 1990 10% 25 579 11% 27 581

Jul. 1, 1990—Sep. 30, 1990 10% 25 579 11% 27 581

Oct. 1, 1990—Dec. 31, 1990 10% 25 579 11% 27 581

Jan. 1, 1991—Mar. 31, 1991 10% 25 579 11% 27 581

Apr. 1, 1991—Jun. 30, 1991 9% 23 577 10% 25 579

Jul. 1, 1991—Sep. 30, 1991 9% 23 577 10% 25 579

Oct. 1, 1991—Dec. 31, 1991 9% 23 577 10% 25 579

Jan. 1, 1992—Mar. 31, 1992 8% 69 623 9% 71 625

Apr. 1, 1992—Jun. 30, 1992 7% 67 621 8% 69 623



FROM JAN. 1, 1987 — DEC. 31, 1998



Jul. 1, 1992—Sep. 30, 1992 7% 67 621 8% 69 623

Oct. 1, 1992—Dec. 31, 1992 6% 65 619 7% 67 621

Jan. 1, 1993—Mar. 31, 1993 6% 17 571 7% 19 573

Apr. 1, 1993—Jun. 30, 1993 6% 17 571 7% 19 573

Jul. 1, 1993—Sep. 30, 1993 6% 17 571 7% 19 573

Oct. 1, 1993—Dec. 31, 1993 6% 17 571 7% 19 573

Jan. 1, 1994—Mar. 31, 1994 6% 17 571 7% 19 573

Apr. 1, 1994—Jun. 30, 1994 6% 17 571 7% 19 573

Jul. 1, 1994—Sep. 30, 1994 7% 19 573 8% 21 575

Oct. 1, 1994—Dec. 31, 1994 8% 21 575 9% 23 577

Jan. 1, 1995—Mar. 31, 1995 8% 21 575 9% 23 577

Apr. 1, 1995—Jun. 30, 1995 9% 23 577 10% 25 579

Jul. 1, 1995—Sep. 30, 1995 8% 21 575 9% 23 577

Oct. 1, 1995—Dec. 31, 1995 8% 21 575 9% 23 577

Jan. 1, 1996—Mar. 31, 1996 8% 69 623 9% 71 625

Apr. 1, 1996—Jun. 30, 1996 7% 67 621 8% 69 623

Jul. 1, 1996—Sep. 30, 1996 8% 69 623 9% 71 625

Oct. 1, 1996—Dec. 31, 1996 8% 69 623 9% 71 625

Jan. 1, 1997—Mar. 31, 1997 8% 21 575 9% 23 577

Apr. 1, 1997—Jun. 30, 1997 8% 21 575 9% 23 577

Jul. 1, 1997—Sep. 30, 1997 8% 21 575 9% 23 577

Oct. 1, 1997—Dec. 31, 1997 8% 21 575 9% 23 577

Jan. 1, 1998—Mar. 31, 1998 8% 21 575 9% 23 577

Apr. 1, 1998—Jun. 30, 1998 7% 19 573 8% 21 575

Jul. 1, 1998—Sep. 30, 1998 7% 19 573 8% 21 575

Oct. 1, 1998—Dec. 31, 1998 7% 19 573 8% 21 575


FROM JANUARY 1, 1999 — PRESENT

NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS

1995–1 C.B.RATE TABLE PAGE

Jan. 1, 1999—Mar. 31, 1999 7% 19 573

Apr. 1, 1999—Jun. 30, 1999 8% 21 575

Jul. 1, 1999—Sep. 30, 1999 8% 21 575

Oct. 1, 1999—Dec. 31, 1999 8% 21 575

Jan. 1, 2000—Mar. 31, 2000 8% 69 623

Apr. 1, 2000—Jun. 30, 2000 9% 71 625

Jul. 1, 2000—Sep. 30, 2000 9% 71 625

Oct. 1, 2000—Dec. 31, 2000 9% 71 625

Jan. 1, 2001—Mar. 31, 2001 9% 23 577






Apr. 1, 2001—Jun. 30, 2001 8% 21 575

Jul. 1, 2001—Sep. 30, 2001 7% 19 573

Oct. 1, 2001—Dec. 31, 2001 7% 19 573

Jan. 1, 2002—Mar. 31, 2002 6% 17 571

Apr. 1, 2002—Jun. 30, 2002 6% 17 571

Jul. 1, 2002—Sep. 30, 2002 6% 17 571

Oct. 1, 2002—Dec. 31, 2002 6% 17 571

Jan. 1, 2003—Mar. 31, 2003 5% 15 569

Apr. 1, 2003—Jun. 30, 2003 5% 15 569

Jul. 1, 2003—Sep. 30, 2003 5% 15 569

Oct. 1, 2003—Dec. 31, 2003 4% 13 567

Jan. 1, 2004—Mar. 31, 2004 4% 61 615

Apr. 1, 2004—Jun. 30, 2004 5% 63 617

Jul. 1, 2004—Sep. 30, 2004 4% 61 615

Oct. 1, 2004—Dec. 31, 2004 5% 63 617

Jan. 1, 2005—Mar. 31, 2005 5% 15 569

Apr. 1, 2005—Jun. 30, 2005 6% 17 571

Jul. 1, 2005—Sep. 30, 2005 6% 17 571

Oct. 1, 2005—Dec. 31, 2005 7% 19 573

Jan. 1, 2006—Mar. 31, 2006 7% 19 573

Apr. 1, 2006—Jun. 30, 2006 7% 19 573

Jul. 1, 2006—Sep. 30, 2006 8% 21 575

Oct. 1, 2006—Dec. 31, 2006 8% 21 575

Jan. 1, 2007—Mar. 31, 2007 8% 21 575

Apr. 1, 2007—Jun. 30, 2007 8% 21 575

Jul. 1, 2007—Sep. 30, 2007 8% 21 575

Oct. 1, 2007—Dec. 31, 2007 8% 21 575

Jan. 1, 2008—Mar. 31, 2008 7% 67 621

Apr. 1, 2008—Jun. 30, 2008 6% 65 619

Jul. 1, 2008—Sep. 30, 2008 5% 63 617

Oct. 1, 2008—Dec. 31, 2008 6% 65 619

Jan. 1, 2009—Mar. 31, 2009 5% 15 569

Apr. 1, 2009—Jun. 30, 2009 4% 13 567

Jul. 1, 2009—Sep. 30, 2009 4% 13 567

Oct. 1, 2009—Dec. 31, 2009 4% 13 567

Jan. 1, 2010—Mar. 31, 2010 4% 13 567

Apr. 1, 2010—Jun. 30, 2010 4% 13 567

Jul. 1, 2010—Sep. 30, 2010 4% 13 567

Oct. 1, 2010—Dec. 31, 2010 4% 13 567

Jan. 1, 2011—Mar. 31, 2011 3% 11 565

Apr. 1, 2011—Jun. 30, 2011 4% 13 567

Jul. 1, 2011—Sep. 30, 2011 4% 13 567






Oct. 1, 2011—Dec. 31, 2011 3% 11 565

Jan. 1, 2012—Mar. 31, 2012 3% 59 613

Apr. 1, 2012—Jun. 30, 2012 3% 59 613

Jul. 1, 2012—Sep. 30, 2012 3% 59 613

Oct. 1, 2012—Dec. 31, 2012 3% 59 613

Jan. 1, 2013—Mar. 31, 2013 3% 11 565

Apr. 1, 2013—Jun. 30, 2013 3% 11 565

Jul. 1, 2013—Sep. 30, 2013 3% 11 565

Oct. 1, 2013—Dec. 31, 2013 3% 11 565

Jan. 1, 2014—Mar. 31, 2014 3% 11 565

Apr. 1, 2014—Jun. 30, 2014 3% 11 565

Jul. 1, 2014—Sep. 30, 2014 3% 11 565

Oct. 1, 2014—Dec. 31, 2014 3% 11 565

Jan. 1, 2015—Mar. 31, 2015 3% 11 565

Apr. 1, 2015—Jun. 30, 2015 3% 11 565

Jul. 1, 2015—Sep. 30, 2015 3% 11 565

Oct. 1, 2015—Dec. 31, 2015 3% 11 565

Jan. 1, 2016—Mar. 31, 2016 3% 59 613

Apr. 1, 2016—Jun. 30, 2016 4% 61 615



CORPORATE OVERPAYMENTS AND UNDERPAYMENTS



Jan. 1, 1999—Mar. 31, 1999 6% 17 571 7% 19 573

Apr. 1, 1999—Jun. 30, 1999 7% 19 573 8% 21 575

Jul. 1, 1999—Sep. 30, 1999 7% 19 573 8% 21 575

Oct. 1, 1999—Dec. 31, 1999 7% 19 573 8% 21 575

Jan. 1, 2000—Mar. 31, 2000 7% 67 621 8% 69 623

Apr. 1, 2000—Jun. 30, 2000 8% 69 623 9% 71 625

Jul. 1, 2000—Sep. 30, 2000 8% 69 623 9% 71 625

Oct. 1, 2000—Dec. 31, 2000 8% 69 623 9% 71 625

Jan. 1, 2001—Mar. 31, 2001 8% 21 575 9% 23 577

Apr. 1, 2001—Jun. 30, 2001 7% 19 573 8% 21 575

Jul. 1, 2001—Sep. 30, 2001 6% 17 571 7% 19 573

Oct. 1, 2001—Dec. 31, 2001 6% 17 571 7% 19 573

Jan. 1, 2002—Mar. 31, 2002 5% 15 569 6% 17 571

Apr. 1, 2002—Jun. 30, 2002 5% 15 569 6% 17 571

Jul. 1, 2002—Sep. 30, 2002 5% 15 569 6% 17 571







Oct. 1, 2002—Dec. 31, 2002 5% 15 569 6% 17 571

Jan. 1, 2003—Mar. 31, 2003 4% 13 567 5% 15 569

Apr. 1, 2003—Jun. 30, 2003 4% 13 567 5% 15 569

Jul. 1, 2003—Sep. 30, 2003 4% 13 567 5% 15 569

Oct. 1, 2003—Dec. 31, 2003 3% 11 565 4% 13 567

Jan. 1, 2004—Mar. 31, 2004 3% 59 613 4% 61 615

Apr. 1, 2004—Jun. 30, 2004 4% 61 615 5% 63 617

Jul. 1, 2004—Sep. 30, 2004 3% 59 613 4% 61 615

Oct. 1, 2004—Dec. 31, 2004 4% 61 615 5% 63 617

Jan. 1, 2005—Mar. 31, 2005 4% 13 567 5% 15 569

Apr. 1, 2005—Jun. 30, 2005 5% 15 569 6% 17 571

Jul. 1, 2005—Sep. 30, 2005 5% 15 569 6% 17 571

Oct. 1, 2005—Dec. 31, 2005 6% 17 571 7% 19 573

Jan. 1, 2006—Mar. 31, 2006 6% 17 571 7% 19 573

Apr. 1, 2006—Jun. 30, 2006 6% 17 571 7% 19 573

Jul. 1, 2006—Sep. 30, 2006 7% 19 573 8% 21 575

Oct. 1, 2006—Dec. 31, 2006 7% 19 573 8% 21 575

Jan. 1, 2007—Mar. 31, 2007 7% 19 573 8% 21 575

Apr. 1, 2007—Jun. 30, 2007 7% 19 573 8% 21 575

Jul. 1, 2007—Sep. 30, 2007 7% 19 573 8% 21 575

Oct. 1, 2007—Dec. 31, 2007 7% 19 573 8% 21 575

Jan. 1, 2008—Mar. 31, 2008 6% 65 619 7% 67 621

Apr. 1, 2008—Jun. 30, 2008 5% 63 617 6% 65 619

Jul. 1, 2008—Sep. 30, 2008 4% 61 615 5% 63 617

Oct. 1, 2008—Dec. 31, 2008 5% 63 617 6% 65 619

Jan. 1, 2009—Mar. 31, 2009 4% 13 567 5% 15 569

Apr. 1, 2009—Jun. 30, 2009 3% 11 565 4% 13 567

Jul. 1, 2009—Sep. 30, 2009 3% 11 565 4% 13 567

Oct. 1, 2009—Dec. 31, 2009 3% 11 565 4% 13 567

Jan. 1, 2010—Mar. 31, 2010 3% 11 565 4% 13 567

Apr. 1, 2010—Jun. 30, 2010 3% 11 565 4% 13 567

Jul. 1, 2010—Sep. 30, 2010 3% 11 565 4% 13 567

Oct. 1, 2010—Dec. 31, 2010 3% 11 565 4% 13 567

Jan. 1, 2011—Mar. 31, 2011 2% 9 563 3% 11 565

Apr. 1, 2011—Jun. 30, 2011 3% 11 565 4% 13 567

Jul. 1, 2011—Sep. 30, 2011 3% 11 565 4% 13 567

Oct. 1, 2011—Dec. 31, 2011 2% 9 563 3% 11 565

Jan. 1, 2012—Mar. 31, 2012 2% 57 611 3% 59 613

Apr. 1, 2012—Jun. 30, 2012 2% 57 611 3% 59 613

Jul. 1, 2012—Sep. 30, 2012 2% 57 611 3% 59 613

Oct. 1, 2012—Dec. 31, 2012 2% 57 611 3% 59 613







Jan. 1, 2013—Mar. 31, 2013 2% 9 563 3% 11 565

Apr. 1, 2013—Jun. 30, 2013 2% 9 563 3% 11 565

Jul. 1, 2013—Sep. 30, 2013 2% 9 563 3% 11 565

Oct. 1, 2013—Dec. 31, 2013 2% 9 563 3% 11 565

Jan. 1, 2014—Mar. 31, 2014 2% 9 563 3% 11 565

Apr. 1, 2014—Jun. 30, 2014 2% 9 563 3% 11 565

Jul. 1, 2014—Sep. 30, 2014 2% 9 563 3% 11 565

Oct. 1, 2014—Dec. 31, 2014 2% 9 563 3% 11 565

Jan. 1, 2015—Mar. 31, 2015 2% 9 563 3% 11 565

Apr. 1, 2015—Jun. 30, 2015 2% 9 563 3% 11 565

Jul. 1, 2015—Sep. 30, 2015 2% 9 563 3% 11 565

Oct. 1, 2015—Dec. 31, 2015 2% 9 563 3% 11 565

Jan. 1, 2016—Mar. 31, 2016 2% 57 611 3% 59 613

Apr. 1, 2016—Jun. 30, 2016 3% 59 613 4% 61 615

TABLE OF INTEREST RATES FOR LARGE CORPORATE UNDERPAYMENTS

FROM JANUARY 1, 1991 — PRESENT1995–1 C.B.

RATE TABLE PG

Jan. 1, 1991—Mar. 31, 1991 13% 31 585

Apr. 1, 1991—Jun. 30, 1991 12% 29 583

Jul. 1, 1991—Sep. 30, 1991 12% 29 583

Oct. 1, 1991—Dec. 31, 1991 12% 29 583

Jan. 1, 1992—Mar. 31, 1992 11% 75 629

Apr. 1, 1992—Jun. 30, 1992 10% 73 627

Jul. 1, 1992—Sep. 30, 1992 10% 73 627

Oct. 1, 1992—Dec. 31, 1992 9% 71 625

Jan. 1, 1993—Mar. 31, 1993 9% 23 577

Apr. 1, 1993—Jun. 30, 1993 9% 23 577

Jul. 1, 1993—Sep. 30, 1993 9% 23 577

Oct. 1, 1993—Dec. 31, 1993 9% 23 577

Jan. 1, 1994—Mar. 31, 1994 9% 23 577

Apr. 1, 1994—Jun. 30, 1994 9% 23 577

Jul. 1, 1994—Sep. 30, 1994 10% 25 579

Oct. 1, 1994—Dec. 31, 1994 11% 27 581

Jan. 1, 1995—Mar. 31, 1995 11% 27 581

Apr. 1, 1995—Jun. 30, 1995 12% 29 583

Jul. 1, 1995—Sep. 30, 1995 11% 27 581

Oct. 1, 1995—Dec. 31, 1995 11% 27 581

Jan. 1, 1996—Mar. 31, 1996 11% 75 629




RATE TABLE PG

Apr. 1, 1996—Jun. 30, 1996 10% 73 627

Jul. 1, 1996—Sep. 30, 1996 11% 75 629

Oct. 1, 1996—Dec. 31, 1996 11% 75 629

Jan. 1, 1997—Mar. 31, 1997 11% 27 581

Apr. 1, 1997—Jun. 30, 1997 11% 27 581

Jul. 1, 1997—Sep. 30, 1997 11% 27 581

Oct. 1, 1997—Dec. 31, 1997 11% 27 581

Jan. 1, 1998—Mar. 31, 1998 11% 27 581

Apr. 1, 1998—Jun. 30, 1998 10% 25 579

Jul. 1, 1998—Sep. 30, 1998 10% 25 579

Oct. 1, 1998—Dec. 31, 1998 10% 25 579

Jan. 1, 1999—Mar. 31, 1999 9% 23 577

Apr. 1, 1999—Jun. 30, 1999 10% 25 579

Jul. 1, 1999—Sep. 30, 1999 10% 25 579

Oct. 1, 1999—Dec. 31, 1999 10% 25 579

Jan. 1, 2000—Mar. 31, 2000 10% 73 627

Apr. 1, 2000—Jun. 30, 2000 11% 75 629

Jul. 1, 2000—Sep. 30, 2000 11% 75 629

Oct. 1, 2000—Dec. 31, 2000 11% 75 629

Jan. 1, 2001—Mar. 31, 2001 11% 27 581

Apr. 1, 2001—Jun. 30, 2001 10% 25 579

Jul. 1, 2001—Sep. 30, 2001 9% 23 577

Oct. 1, 2001—Dec. 31, 2001 9% 23 577

Jan. 1, 2002—Mar. 31, 2002 8% 21 575

Apr. 1, 2002—Jun. 30, 2002 8% 21 575

Jul. 1, 2002—Sep. 30, 2002 8% 21 575

Oct. 1, 2002—Dec. 31, 2002 8% 21 575

Jan. 1, 2003—Mar. 31, 2003 7% 19 573

Apr. 1, 2003—Jun. 30, 2003 7% 19 573

Jul. 1, 2003—Sep. 30, 2003 7% 19 573

Oct. 1, 2003—Dec. 31, 2003 6% 17 571

Jan. 1, 2004—Mar. 31, 2004 6% 65 619

Apr. 1, 2004—Jun. 30, 2004 7% 67 621

Jul. 1, 2004—Sep. 30, 2004 6% 65 619

Oct. 1, 2004—Dec. 31, 2004 7% 67 621

Jan. 1, 2005—Mar. 31, 2005 7% 19 573

Apr. 1, 2005—Jun. 30, 2005 8% 21 575

Jul. 1, 2005—Sep. 30, 2005 8% 21 575

Oct. 1, 2005—Dec. 31, 2005 9% 23 577

Jan. 1, 2006—Mar. 31, 2006 9% 23 577

Apr. 1, 2006—Jun. 30, 2006 9% 23 577

Jul. 1, 2006—Sep. 30, 2006 10% 25 579

Oct. 1, 2006—Dec. 31, 2006 10% 25 579

Jan. 1, 2007—Mar. 31, 2007 10% 25 579




RATE TABLE PG

Apr. 1, 2007—Jun. 30, 2007 10% 25 579

Jul. 1, 2007—Sep. 30, 2007 10% 25 579

Oct. 1, 2007—Dec. 31, 2007 10% 25 579

Jan. 1, 2008—Mar. 31, 2008 9% 71 625

Apr. 1, 2008—Jun. 30, 2008 8% 69 623

Jul. 1, 2008—Sep. 30, 2008 7% 67 621

Oct. 1, 2008—Dec. 31, 2008 8% 69 623

Jan. 1, 2009—Mar. 31, 2009 7% 19 573

Apr. 1, 2009—Jun. 30, 2009 6% 17 571

Jul. 1, 2009—Sep. 30, 2009 6% 17 571

Oct. 1, 2009—Dec. 31, 2009 6% 17 571

Jan. 1, 2010—Mar. 31, 2010 6% 17 571

Apr. 1, 2010—Jun. 30, 2010 6% 17 571

Jul. 1, 2010—Sep. 30, 2010 6% 17 571

Oct. 1, 2010—Dec. 31, 2010 6% 17 571

Jan. 1, 2011—Mar. 31, 2011 5% 15 569

Apr. 1, 2011—Jun. 30, 2011 6% 17 571

Jul. 1, 2011—Sep. 30, 2011 6% 17 571

Oct. 1, 2011—Dec. 31, 2011 5% 15 569

Jan. 1, 2012—Mar. 31, 2012 5% 63 617

Apr. 1, 2012—Jun. 30, 2012 5% 63 617

Jul. 1, 2012—Sep. 30, 2012 5% 63 617

Oct. 1, 2012—Dec. 31, 2012 5% 63 617

Jan. 1, 2013—Mar. 31, 2013 5% 15 569

Apr. 1, 2013—Jun. 30, 2013 5% 15 569

Jul. 1, 2013—Sep. 30, 2013 5% 15 569

Oct. 1, 2013—Dec. 31, 2013 5% 15 569

Jan. 1, 2014—Mar. 31, 2014 5% 15 569

Apr. 1, 2014—Jun. 30, 2014 5% 15 569

Jul. 1, 2014—Sep. 30, 2014 5% 15 569

Oct. 1, 2014—Dec. 31, 2014 5% 15 569

Jan. 1, 2015—Mar. 31, 2015 5% 15 569

Apr. 1, 2015—Jun. 30, 2015 5% 15 569

Jul. 1, 2015—Sep. 30, 2015 5% 15 569

Oct. 1, 2015—Dec. 31, 2015 5% 15 569

Jan. 1, 2016—Mar. 31, 2016 5% 63 617

Apr. 1, 2016—Jun. 30, 2016 6% 65 619


TABLE OF INTEREST RATES FOR CORPORATEOVERPAYMENTS EXCEEDING $10,000


RATE TABLE PG

Jan. 1, 1995—Mar. 31, 1995 6.5% 18 572

Apr. 1, 1995—Jun. 30, 1995 7.5% 20 574

Jul. 1, 1995—Sep. 30, 1995 6.5% 18 572

Oct. 1, 1995—Dec. 31, 1995 6.5% 18 572

Jan. 1, 1996—Mar. 31, 1996 6.5% 66 620

Apr. 1, 1996—Jun. 30, 1996 5.5% 64 618

Jul. 1, 1996—Sep. 30, 1996 6.5% 66 620

Oct. 1, 1996—Dec. 31, 1996 6.5% 66 620

Jan. 1, 1997—Mar. 31, 1997 6.5% 18 572

Apr. 1, 1997—Jun. 30, 1997 6.5% 18 572

Jul. 1, 1997—Sep. 30, 1997 6.5% 18 572

Oct. 1, 1997—Dec. 31, 1997 6.5% 18 572

Jan. 1, 1998—Mar. 31, 1998 6.5% 18 572

Apr. 1, 1998—Jun. 30, 1998 5.5% 16 570

Jul. 1. 1998—Sep. 30, 1998 5.5% 16 570

Oct. 1, 1998—Dec. 31, 1998 5.5% 16 570

Jan. 1, 1999—Mar. 31, 1999 4.5% 14 568

Apr. 1, 1999—Jun. 30, 1999 5.5% 16 570

Jul. 1, 1999—Sep. 30, 1999 5.5% 16 570

Oct. 1, 1999—Dec. 31, 1999 5.5% 16 570

Jan. 1, 2000—Mar. 31, 2000 5.5% 64 618

Apr. 1, 2000—Jun. 30, 2000 6.5% 66 620

Jul. 1, 2000—Sep. 30, 2000 6.5% 66 620

Oct. 1, 2000—Dec. 31, 2000 6.5% 66 620

Jan. 1, 2001—Mar. 31, 2001 6.5% 18 572

Apr. 1, 2001—Jun. 30, 2001 5.5% 16 570

Jul. 1, 2001—Sep. 30, 2001 4.5% 14 568

Oct. 1, 2001—Dec. 31, 2001 4.5% 14 568

Jan. 1, 2002—Mar. 31, 2002 3.5% 12 566

Apr. 1, 2002—Jun. 30, 2002 3.5% 12 566

Jul. 1, 2002—Sep. 30, 2002 3.5% 12 566

Oct. 1, 2002—Dec. 31, 2002 3.5% 12 566

Jan. 1, 2003—Mar. 31, 2003 2.5% 10 564

Apr. 1, 2003—Jun. 30, 2003 2.5% 10 564

Jul. 1, 2003—Sep. 30, 2003 2.5% 10 564

Oct. 1, 2003—Dec. 31, 2003 1.5% 8 562

Jan. 1, 2004—Mar. 31, 2004 1.5% 56 610

Apr. 1, 2004—Jun. 30, 2004 2.5% 58 612

Jul. 1, 2004—Sep. 30, 2004 1.5% 56 610

Oct. 1, 2004—Dec. 31, 2004 2.5% 58 612

Jan. 1, 2005—Mar. 31, 2005 2.5% 10 564

Apr. 1, 2005—Jun. 30, 2005 3.5% 12 566

Jul. 1, 2005—Sep. 30, 2005 3.5% 12 566




RATE TABLE PG

Oct. 1, 2005—Dec. 31, 2005 4.5% 14 568

Jan. 1, 2006—Mar. 31, 2006 4.5% 14 568

Apr. 1, 2006—Jun. 30, 2006 4.5% 14 568

Jul. 1, 2006—Sep. 30, 2006 5.5% 16 570

Oct. 1, 2006—Dec. 31, 2006 5.5% 16 570

Jan. 1, 2007—Mar. 31, 2007 5.5% 16 570

Apr. 1, 2007—Jun. 30, 2007 5.5% 16 570

Jul. 1, 2007—Sep. 30, 2007 5.5% 16 570

Oct. 1, 2007—Dec. 31, 2007 5.5% 16 570

Jan. 1, 2008—Mar. 31, 2008 4.5% 62 616

Apr. 1, 2008—Jun. 30, 2008 3.5% 60 614

Jul. 1, 2008—Sep. 30, 2008 2.5% 58 612

Oct. 1, 2008—Dec. 31, 2008 3.5% 60 614

Jan. 1, 2009—Mar. 31, 2009 2.5% 10 564

Apr. 1, 2009—Jun. 30, 2009 1.5% 8 562

Jul. 1, 2009—Sep. 30, 2009 1.5% 8 562

Oct. 1, 2009—Dec. 31, 2009 1.5% 8 562

Jan. 1, 2010—Mar. 31, 2010 1.5% 8 562

Apr. 1, 2010—Jun. 30, 2010 1.5% 8 562

Jul. 1, 2010—Sep. 30, 2010 1.5% 8 562

Oct. 1, 2010—Dec. 31, 2010 1.5% 8 562

Jan. 1, 2011—Mar. 31, 2011 0.5%*

Apr. 1, 2011—Jun. 30, 2011 1.5% 8 562

Jul. 1, 2011—Sep. 30, 2011 1.5% 8 562

Oct. 1, 2011—Dec. 31, 2011 0.5%*

Jan. 1, 2012—Mar. 31, 2012 0.5%*

Apr. 1, 2012—Jun. 30, 2012 0.5%*

Jul. 1, 2012—Sep. 30, 2012 0.5%*

Oct. 1, 2012—Dec. 31, 2012 0.5%*

Jan. 1, 2013—Mar. 31, 2013 0.5%*

Apr. 1, 2013—Jun. 30, 2013 0.5%*

Jul. 1, 2013—Sep. 30, 2013 0.5%*

Oct. 1, 2013—Dec. 31, 2013 0.5%*

Jan. 1, 2014—Mar. 31, 2014 0.5%*

Apr. 1, 2014—Jun. 30, 2014 0.5%*

Jul. 1, 2014—Sep. 30, 2014 0.5%*

Oct. 1, 2014—Dec. 31, 2014 0.5%*

Jan. 1, 2015—Mar. 31, 2015 0.5%*

Apr. 1, 2015—Jun. 30, 2015 0.5%*

Jul. 1, 2015—Sep. 30, 2015 0.5%*

Oct. 1, 2015—Dec. 31, 2015 0.5%*




RATE TABLE PG

Jan. 1, 2016—Mar. 31, 2016 0.5%*

Apr. 1, 2016—Jun. 30, 2016 1.5%

* The asterisk reflects the interest factors for daily compound interest for annual rates of 0.5 percent, which are publishedin Appendix A of Rev. Rul. 2015–23, 2015–52 I.R.B., dated Dec. 28, 2015.

Section 1274.—Determination of IssuePrice in the Case ofCertain Debt InstrumentsIssued for Property(Also Sections 42, 280G, 382, 412, 467, 468, 482,483, 642, 807, 846, 1288, 7520, 7872.)

Rev. Rul. 2016–09

This revenue ruling provides variousprescribed rates for federal income tax

purposes for April 2016 (the currentmonth). Table 1 contains the short-term,mid-term, and long-term applicable fed-eral rates (AFR) for the current month forpurposes of section 1274(d) of the InternalRevenue Code. Table 2 contains the short-term, mid-term, and long-term adjustedapplicable federal rates (adjusted AFR)for the current month for purposes of sec-tion 1288(b). Table 3 sets forth the ad-justed federal long-term rate and the long-term tax-exempt rate described in section382(f). Table 4 contains the appropriate

percentages for determining the low-income housing credit described in sec-tion 42(b)(1) for buildings placed in ser-vice during the current month. However,under section 42(b)(2), the applicable per-centage for non-federally subsidized newbuildings placed in service after July 30,2008, shall not be less than 9%. Finally,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, ora remainder or a reversionary interest forpurposes of section 7520.

REV. RUL. 2016–09 TABLE 1

Applicable Federal Rates (AFR) for April 2016

Period for CompoundingAnnual Semiannual Quarterly Monthly

Short-term

AFR .70% .70% .70% .70%

110% AFR .77% .77% .77% .77%

120% AFR .84% .84% .84% .84%

130% AFR .91% .91% .91% .91%

Mid-term

AFR 1.45% 1.44% 1.44% 1.44%

110% AFR 1.59% 1.58% 1.58% 1.57%

120% AFR 1.74% 1.73% 1.73% 1.72%

130% AFR 1.88% 1.87% 1.87% 1.86%

150% AFR 2.17% 2.16% 2.15% 2.15%

175% AFR 2.54% 2.52% 2.51% 2.51%

Long-term

AFR 2.25% 2.24% 2.23% 2.23%

110% AFR 2.48% 2.46% 2.45% 2.45%

120% AFR 2.71% 2.69% 2.68% 2.68%

130% AFR 2.93% 2.91% 2.90% 2.89%


REV. RUL. 2016–09 TABLE 2Adjusted AFR for April 2016

Period for CompoundingAnnual Semiannual Quarterly Monthly

Short-term adjusted AFR .46% .46% .46% .46%

Mid-term adjusted AFR 1.12% 1.12% 1.12% 1.12%

Long-term adjusted AFR 2.25% 2.24% 2.23% 2.23%

REV. RUL. 2016–09 TABLE 3Rates Under Section 382 for April 2016

Adjusted federal long-term rate for the current month 2.25%

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.)

2.53%

REV. RUL. 2016–09 TABLE 4Appropriate Percentages Under Section 42(b)(1) for April 2016

Note: Under section 42(b)(2), the applicable percentage for non-federally subsidizednew buildings placed in service after July 30, 2008, shall not be less than 9%.

Appropriate percentage for the 70% present value low-income housing credit 7.42%

Appropriate percentage for the 30% present value low-income housing credit 3.18%

REV. RUL. 2016–09 TABLE 5Rate Under Section 7520 for April 2016

Applicable federal rate for determining the present value of an annuity, an interest forlife or a term of years, or a remainder or reversionary interest

1.8%

Section 42.—Low-IncomeHousing Credit

The adjusted applicable federal short-term, mid-term, and long-term rates are set forth for the monthof April 2016. See Rev. Rul. 2016–09, page 530.

Section 280G.—GoldenParachute Payments

Federal short-term, mid-term, and long-termrates are set forth for the month of April 2016. SeeRev. Rul. 2016–09, page 530.

Section 382.—Limitationon Net Operating LossCarryforwards and CertainBuilt-In Losses FollowingOwnership Change

The adjusted applicable federal long-term rate isset forth for the month of April 2016. See Rev. Rul.2016–09, page 530.

Section 412.—MinimumFunding Standards


Section 467.—CertainPayments for the Use ofProperty or Services


Section 468.—SpecialRules for Mining and SolidWaste Reclamation andClosing Costs


Section 482.—Allocation ofIncome and DeductionsAmong Taxpayers


Section 483.—Interest onCertain Deferred Payments


Section 642.—SpecialRules for Credits andDeductions



Section 807.—Rules forCertain Reserves


Section 846.—DiscountedUnpaid Losses Defined


Section 1288.—Treatmentof Original Issue Discounton Tax-Exempt Obligations


Section 7520.—ValuationTables


Section 7872.—Treatmentof Loans With Below-Market Interest Rates



Part III. Administrative, Procedural, and MiscellaneousPublic Comment Invited onRecommendations for2016–2017 PriorityGuidance Plan

Notice 2016–26

The Department of Treasury and Inter-nal Revenue Service (Service) invite pub-lic comment on recommendations foritems that should be included on the2016–2017 Priority Guidance Plan.

The Treasury Department’s Office ofTax Policy and the Service use the Prior-ity Guidance Plan each year to identifyand prioritize the tax issues that should beaddressed through regulations, revenuerulings, revenue procedures, notices, andother published administrative guidance.The 2016–2017 Priority Guidance Planwill identify guidance projects that theTreasury Department and the Service in-tend to work on as priorities during theperiod from July 1, 2016, through June 30,2017. The Treasury Department and theService recognize the importance of pub-lic input in formulating a Priority Guid-ance Plan that focuses resources on guid-ance items that are most important totaxpayers and tax administration. Pub-lished guidance plays an important role inincreasing voluntary compliance by help-ing to clarify ambiguous areas of the taxlaw. The published guidance process ismost successful if the Treasury Depart-ment and the Service have the benefit ofthe experience and knowledge of taxpay-ers and practitioners who must apply therules implementing the internal revenuelaws.

As is the case whenever significant leg-islation is enacted, the Treasury Depart-ment and the Service have continued todedicate substantial resources during thecurrent plan year to published guidanceprojects necessary to implement the pro-visions of various tax legislative acts thathave been enacted over the past severalyears. The Treasury Department and theService will continue to evaluate the pri-ority of each guidance project taking intoaccount this tax legislation, as well asother developments occurring during the2016–2017 plan year.

In reviewing recommendations and se-lecting projects for inclusion on the 2016–2017 Priority Guidance Plan, the TreasuryDepartment and the Service will considerthe following:1. Whether the recommended guidance

resolves significant issues relevant tomany taxpayers;

2. Whether the recommended guidancepromotes sound tax administration;

3. Whether the recommended guidancecan be drafted in a manner that willenable taxpayers to easily understandand apply the guidance;

4. Whether the recommended guidanceinvolves regulations that are out-moded, ineffective, insufficient, or ex-cessively burdensome and that shouldbe modified, streamlined, expanded, orrepealed;

5. Whether the Service can administer therecommended guidance on a uniformbasis; and

6. Whether the recommended guidancereduces controversy and lessens theburden on taxpayers or the Service.Please submit recommendations by

May 16, 2016, for possible inclusion onthe original 2016–2017 Priority GuidancePlan. Taxpayers may, however, submitrecommendations for guidance at anytime during the year. The Treasury De-partment and the Service may update the2016–2017 Priority Guidance Plan peri-odically to reflect additional guidance thatthe Treasury Department and the Serviceintend to publish during the plan year. Theperiodic updates allow the Treasury De-partment and the Service to respond to theneed for additional guidance that mayarise during the plan year.

Taxpayers are not required to submitrecommendations for guidance in any par-ticular format. Taxpayers should, how-ever, briefly describe the recommendedguidance and explain the need for theguidance. In addition, taxpayers may in-clude an analysis of how the issue shouldbe resolved. It would be helpful if taxpay-ers suggesting more than one guidanceproject prioritize the projects by order ofimportance. If a large number of projectsare being suggested, it would be helpful ifthe projects were grouped in terms ofhigh, medium, or low priority. Requests

for guidance in the form of petitions forrulemaking will be considered with otherrecommendations for guidance in accor-dance with the considerations described inthis notice.

Taxpayers may mail comments to:

Internal Revenue ServiceAttn: CC:PA:LPD:PR (Notice 2016–26)Room 5203P.O. Box 7604Ben Franklin StationWashington, D.C. 20044

or hand deliver comments Mondaythrough Friday between the hours of 8a.m. and 4 p.m. to:

Courier’s DeskInternal Revenue ServiceAttn: CC:PA:LPD:PR (Notice 2016–26)1111 Constitution Avenue, N.W.Washington, D.C. 20224

Alternatively, taxpayers may submitcomments electronically via the FederaleRulemaking Portal at www.regulations.gov (type IRS–2016–0012 in the searchfield on the regulations.gov homepage tofind this notice and submit comments). Allrecommendations for guidance submittedby the public in response to this noticewill be available for public inspection andcopying in their entirety.

For further information regarding thisnotice, contact Charles A. Hall of the Of-fice of Associate Chief Counsel (Proce-dure and Administration) at (202) 317-3400 (not a toll-free number).

26 CFR 601.105: Examination of returns and claimsfor refund, credit, or abatement; determination ofcorrect tax liability.(Also: Part I, §§ 911; 1.911–1.)

Rev. Proc. 2016–21

SECTION 1. PURPOSE

.01 This revenue procedure providesinformation to any individual who failedto meet the eligibility requirements of sec-tion 911(d)(1) of the Internal RevenueCode because adverse conditions in a for-eign country precluded the individualfrom meeting those requirements for tax-able year 2015.


.02 This revenue procedure lists thecountries for which the eligibility require-ments of section 911(d)(1) are waived fortaxable year 2015.

SECTION 2. BACKGROUND

.01 Sections 911(a) and (c)(4) of theCode allow a “qualified individual,” asdefined in section 911(d), to exempt fromtaxation the individual’s foreign earnedincome and the housing cost amount.

.02 Section 911(d)(1) of the Code de-fines the term “qualified individual” as anindividual whose tax home is in a foreigncountry and who is (A) a citizen of theUnited States and establishes to the satis-faction of the Secretary of the Treasurythat the individual has been a bona fideresident of a foreign country or countriesfor an uninterrupted period that includesan entire taxable year, or (B) a citizen orresident of the United States who, duringany period of 12 consecutive months, ispresent in a foreign country or countriesduring at least 330 full days.

.03 Section 911(d)(4) of the Code pro-vides an exception to the eligibility re-quirements of section 911(d)(1). An indi-vidual will be treated as a qualifiedindividual with respect to a period inwhich the individual was a bona fide res-ident of, or was present in, a foreign coun-try if the individual left the country duringa period for which the Secretary of theTreasury, after consultation with the Sec-

retary of State, determines that individualswere required to leave because of war,civil unrest, or similar adverse conditionsthat precluded the normal conduct of busi-ness. An individual must establish that butfor those conditions the individual couldreasonably have been expected to meetthe eligibility requirements

SECTION 3. APPLICATION

.01 For 2015, the Secretary of the Trea-sury, in consultation with the Secretary ofState, has determined that war, civil un-rest, or similar adverse conditions pre-cluded the normal conduct of business inthe following country beginning on thespecified date:

CountryDate of DepartureOn or After

Burundi May 14, 2015

Accordingly, for purposes of section911 of the Code, an individual who leftthe Burundi on or after May 14, 2015, willbe treated as a qualified individual withrespect to the period during which thatindividual was present in, or was a bonafide resident of, Burundi if the individualestablishes a reasonable expectation ofmeeting the requirements of section911(d) but for those conditions.

.02 To qualify for relief under section911(d)(4) of the Code, an individual musthave established residency, or have been

physically present, in the foreign countryon or prior to the date that the Secretary ofthe Treasury determines that individualswere required to leave the foreign country.Individuals who establish residency, orare first physically present, in the foreigncountry after the date that the Secretaryprescribes will not be treated as qualifiedindividuals under section 911(d)(4) of theCode. For example, individuals who werefirst physically present or established res-idency in Burundi after May 14, 2015, arenot eligible to qualify for the exceptionprovided in section 911(d)(4) of the Codefor taxable year 2015.

SECTION 4. INQUIRIES

A taxpayer who needs assistance onhow to claim this exclusion, or on how tofile an amended return, should contact alocal IRS Office or consult the sectionunder the heading How to Get TaxHelp at https://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad.

SECTION 4. DRAFTINGINFORMATION

The principal author of this revenueprocedure is Kate Y. Hwa of the Office ofAssociate Chief Counsel (International).For further information regarding this rev-enue procedure contact Kate Y. Hwa on(202) 317-5001 (not a toll-free number).


Part IV. Items of General InterestDecember 2015 Revisionof Form 3115

Announcement 2016–14

The Internal Revenue Service (IRS)has revised Form 3115, Application forChange in Accounting Method, and itsinstructions. The Form 3115 (Rev. De-cember 2015) is the current Form 3115and replaces the December 2009 versionof the Form 3115. Ordinarily, a taxpayerapplies for consent to change a method ofaccounting for federal income tax purposesby completing and filing a current Form3115. Treas. Reg. § 1.446–1(e)(3)(i).

To allow a reasonable transition to theDecember 2015 Form 3115, the IRS willaccept either the December 2015 Form3115 or the December 2009 Form 3115filed on or before April 19, 2016, exceptwhere the use of the December 2015 Form3115 is specifically required in guidancepublished in the Internal Revenue Bulletin.Taxpayers filing Forms 3115 after April 19,2016, must use the December 2015 Form3115. The IRS encourages taxpayers to usethe December 2015 Form 3115 prior toApril 20, 2016. Regardless of the form used,taxpayers must provide all the informationrequired by Rev. Proc. 2015–13 (or Rev.Proc. 2011–14, 2011–4 I.R.B. 330, if thetaxpayer is making a change under the tran-sition rule in section 15.02(1)(a)(ii) of Rev.Proc. 2015–13, 2015–5 I.R.B. 419, as mod-ified by Rev. Proc. 2015–33, 2015–24I.R.B. 1067). See sections 6.02 and 14 ofRev. Proc. 2015–13 or sections 6 and 11 ofRev. Proc. 2011–14.

Section 6.03(1)(a)(i) of Rev. Proc.2015–13 requires a taxpayer filing a re-quest for an automatic change to file itsoriginal Form 3115 with its return and aduplicate of that Form 3115 with the IRSin Ogden, Utah. Beginning in January2016, the duplicate copy of Form 3115 foran automatic change request is filed withthe IRS in Covington, Kentucky. See Rev.Proc. 2016–1, 2016–1 I.R.B. 1, section9.05(2). The address of the IRS office inCovington, Kentucky, is:

Internal Revenue Service201 West Rivercenter Blvd.PIN Team Mail Stop 97Covington, KY 41011-1424

If prior to April 20, 2016, a taxpayerfiled its duplicate copy of Form 3115 withthe IRS in either Ogden, Utah, or Coving-ton, Kentucky, using the December 2009Form 3115, the taxpayer may file its orig-inal Form 3115 with its return on eitherthe December 2009 Form 3115 or theDecember 2015 Form 3115.

Taxpayers may download the Decem-ber 2015 Form 3115 and its instructions fromthe IRS website, www.irs.gov/formspubs, ororder them from the IRS website www.irs.gov/orderforms.

The principal author of this announce-ment is Charles Magee of the Office ofAssociate Chief Counsel (Income Tax &Accounting). For further information re-garding this announcement contact Mr.Magee at (202) 317-7005 (not a toll-freenumber).

Notice of ProposedRulemakingCountry-by-CountryReporting

REG–109822–15

AGENCY: Internal Revenue Service (IRS),Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document containsproposed regulations that would requireannual country-by-country reporting byUnited States persons (U.S. persons) thatare the ultimate parent entity of a multi-national enterprise (MNE) group. Theseproposed regulations affect U.S. personsthat are the ultimate parent entity of anMNE group that has annual revenue forthe preceding annual accounting period of$850,000,000 or more. This document in-vites comments from the public on allaspects of the proposed rules and providesthe opportunity for the public to request apublic hearing.

DATES: Written or electronic commentsand requests for a public hearing must bereceived by March 22, 2015.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG–109822–15), Room

5203, Internal Revenue Service, P.O. Box7604, Ben Franklin Station, Washington,DC 20044. Submissions may be hand-delivered Monday through Friday be-tween the hours of 8 a.m. and 4 p.m. toCC:PA:LPD:PR (REG–109822–15), Couri-er’s Desk, Internal Revenue Service, 1111Constitution Avenue NW, Washington, DC,or sent electronically via the Federal eRule-making Portal at http://www.regulations.gov (indicate IRS REG–109822–15).

FOR FURTHER INFORMATIONCONTACT: Concerning the proposedregulations, Melinda E. Harvey, (202)317-6934; concerning submissions ofcomments or requests for a public hearing,Oluwafunmilayo (Funmi) Taylor, (202)317-6901 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

1. Objectives of Proposed RegulatoryAction

Pursuant to the authority granted undersections 6001, 6011, 6012, 6031, 6038,and 7805, these proposed regulations de-scribe a new requirement for certain U.S.persons that are the ultimate parent entityof an MNE group (U.S. MNE group)earning substantial annual revenue to filean annual report (U.S. CbC report) con-taining information on a country-by-country basis related to the MNE group’sincome and taxes paid, together with cer-tain indicators of the location of economicactivity within the MNE group. Becausethe reporting form is currently under de-velopment by the IRS and yet to be offi-cially numbered, it is referred to in thispreamble and the proposed regulations asForm XXXX, Country-by-Country Re-port. The categories of information re-quired to be reported on the U.S. CbCreport were developed in coordinationwith other member countries of the Groupof Twenty (G20) and the Organisation forEconomic Co-operation and Development(OECD). As discussed later in this pream-ble, the Treasury Department and the IRShave determined that the information re-quired under these proposed regulationswill assist in better enforcement of U.S.tax laws.


The G20 and OECD members, in co-ordination with other countries, developeda model template for the collection ofcountry-by-country information fromlarge MNE groups. The model template isintended to promote consistent and effec-tive implementation of country-by-country reporting across tax jurisdictions(including countries and jurisdictions thatare not countries but that have fiscal au-tonomy). The Treasury Department andthe IRS anticipate that other tax jurisdic-tions will adopt information reporting re-quirements based on the model templatethat will mandate the filing of a country-by-country report (foreign CbC report) byMNE groups with an ultimate parent en-tity that is not a U.S. person (foreign MNEgroups) that have substantial revenues. Indeveloping these proposed regulations,the Treasury Department and the IRS de-termined that it is appropriate to use themodel template as a guide because themodel template was developed taking intoaccount extensive consultations withstakeholders, including in particular U.S.MNE groups, in order to appropriatelybalance the benefits to tax administrationsof collecting the information about anMNE group’s global operations againstthe compliance costs and burdens im-posed on MNE groups. These consulta-tions significantly affected both the scopeof the information included in the modeltemplate as well as the flexibility affordedto MNE groups in determining how tocompile that information in light of theirdifferent system capabilities. In addition,the model template reflects an agreed in-ternational standard for reporting by MNEgroups that will promote consistency ofreporting obligations across tax jurisdic-tions and reduce the risk that other coun-tries will depart from the agreed standardby imposing inconsistent and overlappingreporting obligations on U.S. MNEgroups. In this respect, the Treasury De-partment and the IRS note that clear andwidely adopted documentation rules forMNE groups also help to reduce compli-ance costs. While the proposed regula-tions generally are consistent with the in-ternational standard, the proposedregulations also are tailored to be consis-tent with the preexisting information re-porting requirements applicable to U.S.

persons under sections 6001, 6011, 6012,6031, and 6038.

The Treasury Department and the IRShave determined that the information re-quired under these proposed regulationswill assist in better enforcement of thefederal income tax laws by providing theIRS with greater transparency regardingthe operations and tax positions taken byU.S. MNE groups. In addition to this di-rect benefit expected from collecting U.S.CbC reports, as discussed in Part 2 of thispreamble, pursuant to income tax conven-tions and other conventions and bilateralagreements relating to the exchange of taxinformation (collectively, information ex-change agreements), a U.S. CbC reportfiled with the IRS may be exchanged bythe United States with other tax jurisdic-tions in which the U.S. MNE group oper-ates that have agreed to provide the IRSwith foreign CbC reports filed in theirjurisdiction by foreign MNE groups thathave operations in the United States. For-eign CbC reports will provide the IRSwith information that will assist the IRS inperforming risk assessment of foreignMNE groups operating in the UnitedStates.

In particular, it is expected that CbCreports filed by both U.S. MNE groupsand foreign MNE groups (collectivelyCbC reports) will help the IRS performhigh-level transfer pricing risk identifica-tion and assessment. The information in aCbC report will not itself constitute con-clusive evidence that transfer pricingpractices are or are not consistent with thearm’s length standard. Accordingly, theinformation in a CbC report will not beused as a substitute for an appropriatetransfer pricing determination based on abest method analysis (including a fullcomparability analysis of factors such asfunctions performed, resources employed,and risks assumed) as required by thearm’s length standard set forth in the reg-ulations under section 482, and transferpricing adjustments will not be basedsolely on a CbC report. However, a CbCreport may be used as the basis for makingfurther inquiries into transfer pricing prac-tices or other tax matters in the course ofan examination of a member of an MNEgroup, and adjustments may be based onadditional information developed through

those inquiries in accordance with appli-cable law.

2. Exchange of Information,Confidentiality, and Improper Use ofInformation

Information reported pursuant to theseproposed regulations is return informationunder section 6103. Section 6103 imposesstrict confidentiality rules with respect toall return information. Moreover, section6103(k)(4) allows the IRS to exchangereturn information with a competent au-thority of a tax jurisdiction only to theextent provided in, and subject to theterms and conditions of, an informationexchange agreement. It is expected thatthe U.S. competent authority will enterinto competent authority arrangements forthe automatic exchange of CbC reportsunder the authority of information ex-change agreements to which the UnitedStates is a party.

Consistent with established interna-tional standards, all of the informationexchange agreements to which the UnitedStates is a party require the informationexchanged to be treated as confidential byboth parties, and disclosure and use of theinformation must be in accordance withthe terms of the relevant information ex-change agreement. Information exchangeagreements generally prohibit the partiesfrom using any information received forany purpose other than for the administra-tion of taxes (e.g., assessment or collec-tion of, or enforcement or prosecution inrespect of, the taxes covered by the infor-mation exchange agreement). Accord-ingly, under the terms of information ex-change agreements, neither taxjurisdiction is permitted to disclose theinformation received under the informa-tion exchange agreement or use such in-formation for any non-tax purpose. Underthe contemplated competent authority ar-rangements for the exchange of CbC re-ports, the competent authorities of theUnited States and other tax jurisdictionsintend to further limit the permissible usesof exchanged CbC reports to assessinghigh-level transfer pricing and other taxrisks and, where appropriate, for eco-nomic and statistical analysis.

Prior to entering into an informationexchange agreement with another tax


jurisdiction, the Treasury Department andthe IRS closely review the tax jurisdic-tion’s legal framework for maintainingconfidentiality of taxpayer informationand its track record of complying with thatlegal framework. In order to conclude aninformation exchange agreement with an-other tax jurisdiction, the Treasury De-partment and the IRS must be satisfiedthat the tax jurisdiction has the necessarylegal safeguards in place to protect ex-changed information, such protections areenforced, and adequate penalties apply toany breach of that confidentiality. More-over, even when these conditions havebeen met and an information exchangeagreement is in effect, the U.S. competentauthority will not enter into a reciprocalautomatic exchange of information relation-ship with a tax jurisdiction unless it hasreviewed the tax jurisdiction’s policies andprocedures regarding confidentiality protec-tions and has determined that such an ex-change relationship is appropriate.

If the United States determines that atax jurisdiction is not in compliance withconfidentiality requirements, data safe-guards, and the appropriate use standardsprovided for under the information ex-change agreement or the competent au-thority arrangement, the United States willpause automatic exchange of CbC reportswith that tax jurisdiction until such time asthe United States is satisfied that the taxjurisdiction is meeting its obligations un-der the applicable information exchangeor competent authority agreement or ar-rangement.

Explanation of Provisions

1. U.S. Persons Required to File FormXXXX, Country-by-Country Report

The proposed regulations generally re-quire a U.S. business entity that is theultimate parent entity of a U.S. MNEgroup to file Form XXXX, Country-by-Country Report. However, proposed§ 1.6038–4(h) provides an exceptionfrom filing by a U.S. MNE group for anannual accounting period if the U.S. MNEgroup had revenues of less than$850,000,000 for the preceding annual ac-counting period. Generally, an ultimateparent entity of a U.S. MNE group is aU.S. business entity that controls a groupof business entities, at least one of which

is organized or tax resident outside of theUnited States, that are required to consol-idate their accounts for financial reportingpurposes under U.S. generally acceptedaccounting principles (GAAP), or thatwould be required to consolidate their ac-counts if equity interests in the U.S. busi-ness entity were publicly traded on a U.S.securities exchange. For purposes of theproposed regulations, the term businessentity means a person as defined in section7701(a) that is not an individual, as wellas a permanent establishment that pre-pares financial statements separate fromthose of its owner for financial reporting,regulatory, tax reporting, or internal man-agement control purposes.

Under proposed § 1.6038–4(b)(6), abusiness entity generally is consideredresident in a tax jurisdiction if, under thelaws of that tax jurisdiction, the businessentity is liable to tax therein based onplace of management, place of organiza-tion, or another similar criterion. How-ever, a business entity will not be consid-ered resident in a tax jurisdiction if it isliable to tax in such jurisdiction solelywith respect to income from sources insuch jurisdiction, or capital situated insuch jurisdiction. The proposed regula-tions also provide rules for determiningthe tax jurisdiction of residence of a busi-ness entity that is resident in more thanone tax jurisdiction or that is a permanentestablishment.

Proposed § 1.6038–4(b)(4) defines aU.S. MNE group as a group of businessentities, including the U.S. business entitythat is the ultimate parent entity, that arerequired to consolidate their accounts un-der U.S. GAAP, or would be required toconsolidate their accounts if equity inter-ests in the ultimate parent entity were pub-licly traded on a U.S. securities exchange.Generally, under U.S. GAAP, if an entityowns a majority voting interest in anotherlegal entity, the majority owner must com-bine the financial statements of themajority-owned entity with its own finan-cial statements in consolidated financialstatements. Financial Accounting Stan-dards Board, Accounting Standards Cod-ification 810–10–15, “Consolidation –Overall – Scope and Scope Exceptions.”A U.S. MNE group does not include busi-ness entities that are accounted for underthe equity method (because those entities

do not consolidate their accounts with theequity owner), notwithstanding that theequity owner’s proportionate share of thebusiness income of such entities is in-cluded in the equity owner’s consolidatedfinancial statements. The ultimate parententity of a U.S. MNE group that is re-quired to file Form XXXX, Country-by-Country Report, may be required to con-solidate under U.S. GAAP one or moreaffiliated groups as defined in section1504(a) that file a consolidated income taxreturn even though the ultimate parent en-tity is not an includible corporation asdefined under section 1504(b) with re-spect to any of such consolidated groups.In such cases, the ultimate parent entitywould report country-by-country informa-tion with respect to all such affiliatedgroup entities (and any other business en-tities in the U.S. MNE group) on FormXXXX, Country-by-Country Report, andthe parent corporations of the respectiveconsolidated groups would not file a FormXXXX, Country-by-Country Report.

The Treasury Department and the IRSrequest comments on whether additionalguidance is needed for determining whichU.S. persons must file Form XXXX,Country-by-Country Report, or which en-tities are considered constituent entities ofthe filer. Specifically, the Treasury De-partment and the IRS request commentson whether additional guidance on thedefinition of U.S. MNE group is necessaryto address situations where U.S. GAAP orregulations governing securities publiclytraded on a U.S. securities exchange (U.S.securities regulations) permit or requireconsolidated financial accounting for rea-sons other than majority ownership andsituations, if any, where U.S. GAAP orU.S. securities regulations permit separatefinancial accounting of majority-ownedenterprises. Additionally, considerationhas been given to the possible need for anexception to filing some or all of the in-formation required on Form XXXX,Country-by-Country Report, for nationalsecurity reasons. Requests by a U.S. per-son otherwise subject to the requirementsto file Form XXXX, Country-by-CountryReport, for an exception would require theTreasury Department and affected U.S.persons to coordinate with other federalagencies, such as the Department of De-fense, to determine whether such an ex-


ception is warranted. The Treasury De-partment and the IRS request commentswith respect to the procedures that a U.S.person should be required to follow inorder to demonstrate a national securityreason to receive an exception from filingsome or all of the information otherwiserequired by Form XXXX, Country-by-Country Report.

Generally, a constituent entity willhave a tax jurisdiction of residence asdetermined under proposed § 1.6038–4(b)(6). However, a business entity that istreated as a partnership in the tax jurisdic-tion in which it is organized and that doesnot own or create a permanent establish-ment in another tax jurisdiction generallywill have no tax jurisdiction of residenceunder the definition in proposed § 1.6038–4(b)(6) (other than for purposes of deter-mining the ultimate parent entity of aU.S. MNE group). In these cases, it isexpected that the partners will reporttheir share of the partnership’s items inthe partners’ respective tax jurisdictionsof residence in order to determine theaggregate amounts reported on FormXXXX, Country-by-Country Report, re-gardless of whether the partnership haselected to be treated as an associationfor U.S. federal tax purposes. The Trea-sury Department and the IRS continueto consider whether a different rule isneeded in the case of entities that are nottreated as fiscally transparent in theowner or owners’ tax jurisdiction(s) ofresidence but are treated as fiscallytransparent in the entity’s country oforganization. The Treasury Departmentand the IRS request comments on thetreatment of such entities in the CbCReport. In the case of a permanent es-tablishment owned or created by a busi-ness entity that is treated as a partner-ship in the tax jurisdiction in which it isorganized, the tax jurisdiction of resi-dence of the permanent establishmentfor purposes of Form XXXX, Country-by-Country Report, is the location of thepermanent establishment regardless ofwhether the permanent establishment istreated as a permanent establishment ofthe partnership or of the partners of thepartnership by the tax jurisdiction inwhich the permanent establishment islocated.

2. Information Required on Form XXXX,Country-by-Country Report

A. Constituent entity information.

Proposed § 1.6038–4(d)(1) describesthe information that Form XXXX,Country-by-Country Report, may requirewith respect to each constituent entity ofthe U.S. MNE group. Generally, eachbusiness entity of a U.S. MNE group isconsidered a separate constituent entity ofthat U.S. MNE group; however, the termconstituent entity does not include a for-eign corporation or foreign partnership forwhich the ultimate parent entity is notrequired to furnish information under sec-tion 6038(a), determined without regard to§ 1.6038–2(j) and § 1.6038–3(c) (excep-tions to information reporting for certainconstructive owners and when more thanone person otherwise would be required tosubmit the same information), or any per-manent establishment of such foreign cor-poration or foreign partnership. For exam-ple, if none of the constituent entitiesowned by the ultimate parent entity di-rectly, indirectly, or constructively ownsenough stock in a foreign corporation tobe considered a United States shareholderof a controlled foreign corporation, theforeign corporation is not a constituententity. However, if the ultimate parent en-tity of a U.S. MNE group constructivelyowns more than 50 percent of the votingstock of a foreign corporation because awholly-owned domestic subsidiary di-rectly owns such stock and the domesticsubsidiary reports information with re-spect to the foreign corporation pursuant tosection 6038(a), the foreign corporation is aconstituent entity of the U.S. MNE groupnotwithstanding that under § 1.6038–2(j)(2)the ultimate parent entity itself is not re-quired to report information under section6038(a). The IRS requests comments onwhether additional guidance is needed re-garding which business entities of a U.S.MNE group are considered constituent en-tities, particularly with respect to the exclu-sion of foreign corporations and partner-ships for which an ultimate parent entitywould not be required to furnish informationunder section 6038(a) without regard to§§ 1.6038–2(j) and 1.6038–3(c).

The information required with respectto each constituent entity includes identi-

fication of the tax jurisdiction, if any, inwhich the constituent entity is resident fortax purposes, the tax jurisdiction in whichthe constituent entity is organized or incor-porated (if different from the tax jurisdictionof residence), and the main business activityor activities of the constituent entity. The taxidentification number of each constituententity used by the tax administration in itsjurisdiction of tax residence also will bereported on Form XXXX, Country-by-Country Report.

B. Financial and employee information.

Proposed § 1.6038–4(d)(2) requirescertain information to be reported for eachtax jurisdiction in which one or more con-stituent entities of the MNE group is res-ident. The information for each tax juris-diction must be presented on FormXXXX, Country-by-Country Report, asan aggregate of the requested informationfrom all of the constituent entities that areresident in the tax jurisdiction. In addition,proposed § 1.6038–4(d)(3)(i) providesthat the information must be reported, inthe aggregate, for any constituent entity orentities of a U.S. MNE group that have notax jurisdiction of residence.

Specifically, the information requiredto be reported for each tax jurisdictionincludes: (i) revenues generated fromtransactions with other constituent entitiesof the U.S. MNE group; (ii) revenues notgenerated from transactions with otherconstituent entities of the U.S. MNEgroup; (iii) profit (or loss) before incometax; (iv) income tax paid on a cash basis toall tax jurisdictions, including any taxeswithheld on payments received; (v) ac-crued tax expense recorded on taxableprofits (or losses), reflecting only the op-erations in the relevant annual accountingperiod and excluding deferred taxes orprovisions for uncertain tax positions; (vi)stated capital; (vii) accumulated earnings;(viii) number of employees on a full-timeequivalent basis in the relevant tax jurisdic-tion; and (ix) net book value of tangibleassets other than cash or cash equivalents.

The Treasury Department and the IRShave sought to minimize deviations fromthe model template that was developed byG20 and OECD member countries basedon extensive consultations with stakehold-ers. Nonetheless, the Treasury Depart-


ment and the IRS understand that theremay be areas where further clarification orrefinement is warranted to take into ac-count the purpose of these proposed reg-ulations to collect relevant information forhigh-level risk assessment while minimiz-ing the burdens imposed. For example, thereport seeks information on the taxes paidor accrued by MNE groups and their con-stituent entities on taxable income earnedin the relevant accounting period. TheTreasury Department and the IRS specif-ically solicit comments on the manner inwhich the proposed regulations requestthat information. The Treasury Depart-ment and the IRS also request commentson whether any of the other items shouldbe further refined or whether additionalguidance is needed with respect to how todetermine any of the items in proposed§ 1.6038–4(d)(2)(i)–(ix).

Proposed § 1.6038–4(d)(3)(iii) pro-vides that the number of employees on afull-time equivalent basis may be deter-mined as of the end of the accountingperiod, on the basis of average employ-ment levels for the annual accounting pe-riod, or on any other reasonable basis, andthat independent contractors that partici-pate in the ordinary operating activities ofa constituent entity may be consideredemployees of such constituent entity forthis purpose. The number of full-timeequivalent employees in a tax jurisdictionof residence should be determined by ref-erence to the employees that perform theiractivities for the U.S. MNE group withinsuch tax jurisdiction of residence. U.S.MNE groups should use a reasonable ba-

sis to determine the tax jurisdiction ofresidence for which to report employeesthat perform activities for the U.S. MNEgroup in more than one tax jurisdiction orin a tax jurisdiction in which none of theconstituent entities of the U.S. MNEgroup is resident. For example, a reason-able basis may be to report a travellingemployee as part of the home office juris-diction, as part of the tax jurisdiction inwhich the travelling employee spends themajority of his or her time, or as a fractionof one full-time equivalent employee inmultiple tax jurisdictions based on the em-ployee’s time spent working in those ju-risdictions. The Treasury Department andthe IRS request comments on whetherguidance is needed regarding the treat-ment of other employment situations. Thenumber of employees that a U.S. MNEgroup has in a particular tax jurisdictionshould be determined on a consistent basisacross entities, tax jurisdictions in whichthe U.S. MNE operates, and from year toyear. It is not expected that the basis onwhich a U.S. MNE group determines thenumber of employees in a tax jurisdictionof residence will change from year toyear. However, it is expected that FormXXXX, Country-by-Country Report, willprovide a section for additional informa-tion that the ultimate parent entity of theU.S. MNE group will use to explain,among other things, any new approachadopted to determine the number of em-ployees and why it was necessary or ap-propriate.

Proposed § 1.6038–4(e)(2) providesthat the financial information reported on

Form XXXX, Country-by-Country Re-port, may be based on certified financialstatements, books and records maintainedwith respect to each constituent entity, orrecords used for tax reporting purposes. Itis not necessary to reconcile the revenue,profit, and tax reported in the aggregate orwith respect to a specific tax jurisdictionon Form XXXX, Country-by-Country Re-port, to the consolidated financial state-ments of the U.S. MNE group or to the taxreturns filed in any particular tax jurisdic-tion. Additionally, there is no need tomake adjustments for differences in ac-counting principles applied from tax juris-diction to tax jurisdiction. It is expectedthat Form XXXX, Country-by-CountryReport, will include a section to provideadditional information, including a briefdescription of the sources of data used inpreparing the form, and, if a change ismade in the source of data used from yearto year, an explanation of the reasons forthe change and its consequences. Permis-sion to change the accounting principles,to make new or different adjustments fordifferences in accounting principles, or tochange the source of data used in prepar-ing Form XXXX, Country-by-CountryReport, is not required.

C. Template for Form XXXX, Country-by-Country Report.

The template on which Form XXXX,Country-by-Country Report, will be basedis provided below.


Name of the MNE group:Fiscal year concerned:

Tax Constitue Tax Main business activity(ies)

Jurisdiction Entitiesresident inthe TaxJurisdiction

Jurisdictionof organiza-tion or incor-poration ifdifferent fromTax Jurisdic-tion of Resi-dence

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*Please specify the nature of the activity of the constituent entity in the “Additional Information” section.

Name of the MNE group:Fiscal year concerned:

Currency used:

Tax Juris-diction

Revenues Profit (Loss)Before In-come Tax

IncomeTax Paid(on cash

basis)

IncomeTax Ac-crued –Current

Year

StatedCapital

Accumu-lated Earn-

ings

Numberof Em-ployees

TangibleAssets

other thanCash and

CashEquiva-

lents

UnrelatedParty

RelatedParty

Total


Name of the MNE group:

Fiscal year concerned:

Additional Information. Please include any further brief information or explanation you consider necessary or that wouldfacilitate the understanding of the compulsory information provided in the Country-by-Country Report.

3. Manner of Filing and Maintenance ofRecords for Form XXXX, Country-by-Country Report.

Proposed § 1.6038–4(f) requires thatForm XXXX, Country-by-Country Re-port, be filed with the ultimate parent en-tity’s timely-filed income tax return (withextensions). The proposed regulations donot require any U.S. business entity toprovide notification that it is a constituententity of a U.S. MNE group that is re-quired to file a Form XXXX, Country-by-Country Report.

While a U.S. business entity is not re-quired to reconcile information reportedon Form XXXX, Country-by-Country Re-port, with its financial statements or in-come tax returns, proposed § 1.6038–4(g)provides that a U.S. person required to fileas an ultimate parent entity of a U.S. MNEgroup must maintain records to supportthe information provided on Form XXXX,Country-by-Country Report.

Proposed Effective/Applicability Date

These regulations are proposed to beapplicable to taxable years of ultimateparent entities of US MNE groups thatbegin on or after the date of publication ofthe Treasury decision adopting these rulesas final regulations in the Federal Regis-ter and that include annual accountingperiods determined under section6038(e)(4) of all foreign constituent enti-ties and taxable years of all domestic con-stituent entities beginning on or after thedate of publication of the Treasury deci-sion adopting these rules as final regula-tions in the Federal Register.

Special Analyses

Certain IRS regulations, including thisone, are exempt from the requirements ofExecutive Order 12866, as supplementedand reaffirmed by Executive Order 13563.Therefore, a regulatory impact assessmentis not required. It also has been deter-

mined that section 553(b) and (d) of theAdministrative Procedure Act (5 U.S.C.chapter 5) does not apply to these regula-tions.

The IRS intends that the informationcollection requirements in these proposedregulations will be satisfied by submittinga new reporting form with an income taxreturn. The new reporting form has not yetbeen numbered and is referred to as FormXXXX, Country-by-Country Report, inthis Preamble and the proposed regula-tions. For purposes of the Paperwork Re-duction Act, the reporting burden associ-ated with the collection of information inthese proposed regulations will be re-flected in the OMB Form 83–1, Paper-work Reduction Act Submission, associ-ated with Form XXXX, Country-by-Country Report.

It is hereby certified that this regulationwill not have a significant economic im-pact on a substantial number of small en-tities within the meaning of section 601(6)of the Regulatory Flexibility Act (5U.S.C. chapter 6). Accordingly, a regula-tory flexibility analysis is not required.This certification is based on the fact thatthese regulations will only affect U.S. cor-porations, partnerships, and trusts thathave foreign operations when the com-bined annual revenue of the business en-tities owned by the U.S. person meets orexceeds $850,000,000. Pursuant to sec-tion 7805(f), these regulations have beensubmitted to the Chief Counsel for Advo-cacy of the Small Business Administra-tion for comment on their impact on smallbusiness.

Comments and Requests for PublicHearing

Before these proposed regulations areadopted as final regulations, considerationwill be given to any comments that aresubmitted timely to the IRS as prescribedin this preamble under the “Addresses”heading. The Treasury Department and

the IRS request comments on aspects ofthe proposed rules for which additionalguidance is desired. All comments will beavailable at www.regulations.gov or uponrequest. A public hearing will be sched-uled if requested in writing by any personthat timely submits written comments. If apublic hearing is scheduled, then notice ofthe date, time, and place for the publichearing will be published in the FederalRegister.

Drafting Information

The principal author of these proposedregulations is Melinda E. Harvey of theOffice of Associate Chief Counsel (Inter-national). However, other personnel fromthe IRS and the Department of the Trea-sury participated in their development.

* * * * *

Proposed Amendments to theRegulations

Accordingly, 26 CFR part 1 is pro-posed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation forpart 1 is amended by adding the followingentry in numerical order to read in part asfollows:

Authority: 26 U.S.C. 7805 * * ** * * * *Section 1.6038–4 also issued under 26

U.S.C. 6038.* * * * *Par. 2. Section 1.6038–4 is added to

read as follows:

§ 1.6038–4 Information returnsrequired of certain United Statespersons with respect to such person’sU.S. multinational enterprise group.

(a) Requirement of return. Except asprovided in paragraph (h) of this section,every United States person (U.S. person)that is an ultimate parent entity of a U.S.


multinational enterprise (MNE) group asdefined in paragraph (b)(1) of this sectionmust make an annual return on FormXXXX, Country-by-Country Report, set-ting forth the information described in thissection and any other information re-quired by Form XXXX, Country-by-Country Report, with respect to each an-nual accounting period described inparagraph (c) of this section.

(b) Definitions—(1) Ultimate parententity of a U.S. MNE group. An ultimateparent entity of a U.S. MNE group is aU.S. business entity that:

(i) Owns directly or indirectly a suffi-cient interest in one or more other busi-ness entities, at least one of which is or-ganized or tax resident in a tax jurisdictionother than the United States, such that theU.S. business entity is required to consol-idate the accounts of the other businessentities with its own accounts under U.S.generally accepted accounting principles,or would be so required if equity interestsin the U.S. business entity were publiclytraded on a U.S. securities exchange; and

(ii) Is not owned directly or indirectlyby another business entity that consoli-dates the accounts of such U.S. businessentity with its own accounts under gener-ally accepted accounting principles in theother business entity’s tax jurisdiction ofresidence, or would be so required if eq-uity interests in the other business entitywere traded on a public securities ex-change in its tax jurisdiction of residence.

(2) Business entity. For purposes of thissection, a business entity is a person asdefined in section 7701(a)(1) that is not anindividual, and includes any entity thathas a single owner and that is disregardedas a separate entity from its owner under§ 301.7701–3 of this chapter. Also forpurposes of this section, the term businessentity includes a business establishment ina jurisdiction that is treated as a perma-nent establishment under an income taxconvention to which that jurisdiction is aparty or that would be treated as a perma-nent establishment under the Organisationfor Economic Co-operation and Develop-ment (OECD) Model Tax Convention onIncome and on Capital 2014 and that pre-pares financial statements separate fromthose of its owner for financial reporting,regulatory, tax reporting, or internal man-agement control purposes.

(3) U.S. business entity. A U.S. busi-ness entity is a business entity that isorganized or has its tax jurisdiction ofresidence in the United States.

(4) U.S. MNE group. A U.S. MNEgroup comprises the ultimate parent entityof a U.S. MNE group as defined in para-graph (b)(1) of this section and all of thebusiness entities required to consolidatetheir accounts with the ultimate parententity’s accounts under U.S. generally ac-cepted accounting principles, or thatwould be so required if equity interests inthe ultimate parent entity were publiclytraded on a U.S. securities exchange, re-gardless of whether any such business en-tities could be excluded from consolida-tion solely on size or materiality grounds.

(5) Constituent entity. With respect to aU.S. MNE group, a constituent entity isany separate business entity of such U.S.MNE group, except that the term constit-uent entity does not include a foreign cor-poration or foreign partnership for whichthe ultimate parent entity is not required tofurnish information under section 6038(a)(determined without regard to § 1.6038–2(j) and § 1.6038–3(c)) or any permanentestablishment of such foreign corporationor foreign partnership.

(6) Tax jurisdiction of residence. Forpurposes of this section, a tax jurisdictionis a country or a jurisdiction that is not acountry but that has fiscal autonomy. Abusiness entity is considered a resident ina tax jurisdiction if, under the laws of thattax jurisdiction, the business entity is lia-ble to tax therein based on place of man-agement, place of organization, or anothersimilar criterion. However, a business en-tity will not be considered a resident in atax jurisdiction if such business entity isliable to tax in such tax jurisdiction solelywith respect to income from sources insuch tax jurisdiction, or capital situated insuch tax jurisdiction. If a business entity isresident in more than one tax jurisdiction,then the applicable income tax conventionrules, if any, should be applied to deter-mine the business entity’s tax jurisdictionof residence. If a business entity is resi-dent in more than one tax jurisdiction andno applicable income tax convention ex-ists between those tax jurisdictions, or ifthe applicable income tax convention pro-vides that the determination of residenceis based on a determination by the com-

petent authorities of the relevant tax juris-dictions and no such determination hasbeen made, the business entity’s tax juris-diction of residence is the tax jurisdictionof the business entity’s place of effectivemanagement determined in accordancewith Article 4 of the OECD Model TaxConvention on Income and on Capital2014. The tax jurisdiction of residence ofa permanent establishment is the jurisdic-tion in which the permanent establishmentis located. If a business entity does nothave a tax jurisdiction of residence, thensolely for purposes of paragraph (b)(1) ofthis section, the tax jurisdiction of resi-dence is the business entity’s country oforganization.

(7) Applicable financial statements. Anapplicable financial statement is a certifiedaudited financial statement that is accom-panied by a report of an independent cer-tified public accountant or similarly qual-ified independent professional that is usedfor purposes of reporting to shareholders,partners, or similar persons; for purposesof reporting to creditors in connectionwith securing or maintaining financing; orfor any other substantial non-tax purpose.

(c) Period covered by return. The in-formation required under paragraph (d) ofthis section with respect to a U.S. MNEgroup must be furnished for the annualaccounting period with respect to whichthe ultimate parent entity prepares its ap-plicable financial statements ending withor within the ultimate parent entity’s tax-able year for which the Form XXXX,Country-by-Country Report, is filed.However, if the ultimate parent entitydoes not prepare applicable financialstatements that consolidate the accountsof all constituent entities, the ultimate par-ent entity may provide the informationrequired under paragraph (d) of this sec-tion based on applicable financial state-ments of constituent entities for their ac-counting period or periods that end withor within the ultimate parent entity’s tax-able year.

(d) Contents of return—(1) Constituententity information. The return on FormXXXX, Country-by-Country Report, mustcontain so much of the following informa-tion with respect to each constituent en-tity, and in such form or manner, as theform prescribes:


(i) The tax jurisdiction, if any, in whichthe constituent entity is resident for taxpurposes;

(ii) The tax jurisdiction in which theconstituent entity is organized or incorpo-rated (if different from the tax jurisdictionof residence);

(iii) The tax identification number, ifany, used for the constituent entity bythe tax administration of the constituententity’s tax jurisdiction of residence;and

(iv) The main business activity or ac-tivities of the constituent entity.

(2) Tax jurisdiction of residence infor-mation. The return on Form XXXX,Country-by-Country Report, will containso much of the following information withrespect to each tax jurisdiction in whichone or more constituent entities of a U.S.MNE group is resident, and in such formor manner, as the form prescribes:

(i) Revenues generated from transac-tions with other constituent entities;

(ii) Revenues not generated from trans-actions with other constituent entities;

(iii) Profit or loss before income tax;(iv) Total income tax paid on a cash

basis to all tax jurisdictions, and any taxeswithheld on payments received by theconstituent entities;

(v) Total accrued tax expense re-corded on taxable profits or losses, re-flecting only operations in the relevantannual accounting period and excludingdeferred taxes or provisions for uncer-tain tax liabilities;

(vi) Stated capital of all the constituententities, except that the stated capital of apermanent establishment must be reportedby the legal entity of which it is a perma-nent establishment unless there is a de-fined capital requirement in the permanentestablishment tax jurisdiction for regula-tory purposes;

(vii) Total accumulated earnings, ex-cept that accumulated earnings of a per-manent establishment must be reported bythe legal entity of which it is a permanentestablishment;

(viii) Total number of employees on afull-time equivalent basis in the relevanttax jurisdiction; and

(ix) Net book value of tangible assetsother than cash or cash equivalents.

(3) Special rules—(i) Constituent en-tity with no tax jurisdiction of residence.

The information listed in paragraph (d)(2)of this section also must be provided, inthe aggregate, for any constituent entity orentities that have no tax jurisdiction ofresidence.

(ii) Definition of revenue. For purposesof this section, the term revenue in-cludes all amounts of revenue, includingrevenue from sales of inventory andproperty, services, royalties, interest,and premiums. The term revenue doesnot include payments received fromother constituent entities that are treatedas dividends in the payor’s tax jurisdic-tion of residence.

(iii) Number of employees. For pur-poses of this section, the number of em-ployees on a full-time equivalent basismay be reported as of the end of theaccounting period, on the basis of averageemployment levels for the annual ac-counting period, or on any other reason-able basis consistently applied across taxjurisdictions and from year to year. Inde-pendent contractors participating in theordinary operating activities of a constit-uent entity may be reported as employeesof such constituent entity. Reasonablerounding or approximation of the numberof employees is permissible, provided thatsuch rounding or approximation does notmaterially distort the relative distributionof employees across the various tax juris-dictions. Consistent approaches should beapplied from year to year and across en-tities.

(iv) Income tax paid and accrued taxexpense of permanent establishment. Inthe case of a constituent entity that is apermanent establishment, the amount ofincome tax paid and the amount of ac-crued tax expense referred to in para-graphs (d)(2)(iv) and (v) of this sectionshould not include the income tax paid ortax expense accrued by the business entityof which the permanent establishmentwould be a part but for the second sen-tence of paragraph (b)(2) of this section inthat business entity’s tax jurisdiction ofresidence on the income derived by thepermanent establishment.

(v) Certain transportation income. If aconstituent entity of a U.S. MNE groupderives income from international trans-portation or transportation in inland wa-terways that is covered by income taxconvention provisions that are specific to

such income and under which the taxingrights on such income are allocated exclu-sively to one tax jurisdiction, then the U.S.MNE group should report the informationrequired under paragraph (d)(2) of thissection with respect to such income forthe tax jurisdiction to which the relevantincome tax convention provisions allocatethese taxing rights.

(e) Reporting of financial amounts.—(1) Reporting in U.S. dollars required. Allamounts furnished under paragraph (d)(2)of this section, other than paragraph(d)(2)(viii) of this section, must be ex-pressed in U.S. dollars. If an exchangerate is used other than in accordance withU.S. generally accepted accounting prin-ciples for conversion to U.S. dollars, theexchange rate must be indicated.

(2) Sources of financial amounts. Allamounts furnished under paragraph (d)(2)of this section, other than paragraph(d)(2)(viii) of this section, should be basedon applicable financial statements, booksand records maintained with respect to theconstituent entity, or records used for taxreporting purposes.

(f) Time and manner for filing. Returnson Form XXXX, Country-by-Country Re-port, required under paragraph (a) of thissection for a taxable year will be filed withthe ultimate parent entity’s income taxreturn for the taxable year on or before thedue date (including extensions) for filingthat person’s income tax return.

(g) Maintenance of records. The U.S.person filing Form XXXX, Country-by-Country Report, as an ultimate parent en-tity of a U.S. MNE group must maintainrecords to support the information pro-vided on Form XXXX, Country-by-Country Report. However, the U.S. per-son is not required to have or maintainrecords that reconcile the amounts pro-vided on Form XXXX, Country-by-Country Report, with the tax returns ofany tax jurisdiction or applicable financialstatements.

(h) Exceptions to furnishing informa-tion. A U.S. person that is an ultimateparent entity of a U.S. MNE group is notrequired to report information under thissection for an annual accounting perioddescribed in paragraph (c) of this sectionif the annual revenue of the U.S. MNEgroup for the immediately preceding an-


nual accounting period was less than$850,000,000.

(j) Effective/applicability dates. Therules of this section apply to taxable yearsof ultimate parent entities of U.S. MNEgroups that begin on or after the date ofpublication of the Treasury decisionadopting these rules as final regulations in

the Federal Register and that include an-nual accounting periods determined undersection 6038(e)(4) of all foreign constitu-ent entities and taxable years of all domes-tic constituent entities beginning on orafter the date of publication of the Trea-sury decision adopting these rules as finalregulations in the Federal Register.

John Dalrymple,Deputy Commissioner for Services and

Enforcement.

(Filed by the Office of the Federal Register on December 21,2015, 4:15 p.m., and published in the issue of the FederalRegister for December 23, 2015, 80 F.R. 79795)


Definition of TermsRevenue rulings and revenue procedures(hereinafter referred to as “rulings”) thathave an effect on previous rulings use thefollowing defined terms to describe theeffect:

Amplified describes a situation whereno change is being made in a prior pub-lished position, but the prior position isbeing extended to apply to a variation ofthe fact situation set forth therein. Thus, ifan earlier ruling held that a principle ap-plied to A, and the new ruling holds thatthe same principle also applies to B, theearlier ruling is amplified. (Compare withmodified, below).

Clarified is used in those instanceswhere the language in a prior ruling isbeing made clear because the languagehas caused, or may cause, some confu-sion. It is not used where a position in aprior ruling is being changed.

Distinguished describes a situationwhere a ruling mentions a previously pub-lished ruling and points out an essentialdifference between them.

Modified is used where the substanceof a previously published position is beingchanged. Thus, if a prior ruling held that aprinciple applied to A but not to B, and thenew ruling holds that it applies to both A

and B, the prior ruling is modified becauseit corrects a published position. (Comparewith amplified and clarified, above).

Obsoleted describes a previously pub-lished ruling that is not considered deter-minative with respect to future transac-tions. This term is most commonly used ina ruling that lists previously published rul-ings that are obsoleted because of changesin laws or regulations. A ruling may alsobe obsoleted because the substance hasbeen included in regulations subsequentlyadopted.

Revoked describes situations where theposition in the previously published rulingis not correct and the correct position isbeing stated in a new ruling.

Superseded describes a situation wherethe new ruling does nothing more thanrestate the substance and situation of apreviously published ruling (or rulings).Thus, the term is used to republish underthe 1986 Code and regulations the sameposition published under the 1939 Codeand regulations. The term is also usedwhen it is desired to republish in a singleruling a series of situations, names, etc.,that were previously published over a pe-riod of time in separate rulings. If the newruling does more than restate the sub-

stance of a prior ruling, a combination ofterms is used. For example, modified andsuperseded describes a situation where thesubstance of a previously published rulingis being changed in part and is continuedwithout change in part and it is desired torestate the valid portion of the previouslypublished ruling in a new ruling that isself contained. In this case, the previouslypublished ruling is first modified and then,as modified, is superseded.

Supplemented is used in situations inwhich a list, such as a list of the names ofcountries, is published in a ruling and thatlist is expanded by adding further namesin subsequent rulings. After the originalruling has been supplemented severaltimes, a new ruling may be published thatincludes the list in the original ruling andthe additions, and supersedes all prior rul-ings in the series.

Suspended is used in rare situations toshow that the previous published rulingswill not be applied pending some futureaction such as the issuance of new oramended regulations, the outcome ofcases in litigation, or the outcome of aService study.

AbbreviationsThe following abbreviations in currentuse and formerly used will appear in ma-terial published in the Bulletin.

A—Individual.Acq.—Acquiescence.B—Individual.BE—Beneficiary.BK—Bank.B.T.A.—Board of Tax Appeals.C—Individual.C.B.—Cumulative Bulletin.CFR—Code of Federal Regulations.CI—City.COOP—Cooperative.Ct.D.—Court Decision.CY—County.D—Decedent.DC—Dummy Corporation.DE—Donee.Del. Order—Delegation Order.DISC—Domestic International Sales Corporation.DR—Donor.E—Estate.EE—Employee.E.O.—Executive Order.ER—Employer.

ERISA—Employee Retirement Income Security Act.EX—Executor.F—Fiduciary.FC—Foreign Country.FICA—Federal Insurance Contributions Act.FISC—Foreign International Sales Company.FPH—Foreign Personal Holding Company.F.R.—Federal Register.FUTA—Federal Unemployment Tax Act.FX—Foreign corporation.G.C.M.—Chief Counsel’s Memorandum.GE—Grantee.GP—General Partner.GR—Grantor.IC—Insurance Company.I.R.B.—Internal Revenue Bulletin.LE—Lessee.LP—Limited Partner.LR—Lessor.M—Minor.Nonacq.—Nonacquiescence.O—Organization.P—Parent Corporation.PHC—Personal Holding Company.PO—Possession of the U.S.PR—Partner.PRS—Partnership.

PTE—Prohibited Transaction Exemption.Pub. L.—Public Law.REIT—Real Estate Investment Trust.Rev. Proc.—Revenue Procedure.Rev. Rul.—Revenue Ruling.S—Subsidiary.S.P.R.—Statement of Procedural Rules.Stat.—Statutes at Large.T—Target Corporation.T.C.—Tax Court.T.D.—Treasury Decision.TFE—Transferee.TFR—Transferor.T.I.R.—Technical Information Release.TP—Taxpayer.TR—Trust.TT—Trustee.U.S.C.—United States Code.X—Corporation.Y—Corporation.Z—Corporation.

Bulletin No. 2016–14 April 4, 2016i

Numerical Finding List1

Bulletins 2016–1 through 2016–14

Announcements:

2016-1, 2016-3 I.R.B. 2832016-2, 2016-3 I.R.B. 2832016-3, 2016-4 I.R.B. 2942016-4, 2016-6 I.R.B. 3132016-5, 2016-8 I.R.B. 3562016-6, 2016-10 I.R.B. 4092016-7, 2016-8 I.R.B. 3562016-8, 2016-9 I.R.B. 3672016-9, 2016-9 I.R.B. 3672016-10, 2016-9 I.R.B. 3672016-11, 2016-10 I.R.B. 4112016-13, 2016-13 I.R.B. 5142016-14, 2016-14 I.R.B. 535

Notices:

2016-1, 2016-2 I.R.B. 2652016-2, 2016-2 I.R.B. 2652016-3, 2016-3 I.R.B. 2782016-4, 2016-3 I.R.B. 2792016-5, 2016-6 I.R.B. 3022016-6, 2016-4 I.R.B. 2872016-7, 2016-5 I.R.B. 2962016-8, 2016-6 I.R.B. 3042016-9, 2016-6 I.R.B. 3062016-10, 2016-6 I.R.B. 3072016-11, 2016-6 I.R.B. 3122016-12, 2016-6 I.R.B. 3122016-13, 2016-7 I.R.B. 3142016-14, 2016-7 I.R.B. 3152016-15, 2016-13 I.R.B. 4862016-16, 2016-7 I.R.B. 3182016-17, 2016-9 I.R.B. 3582016-18, 2016-9 I.R.B. 3592016-19, 2016-9 I.R.B. 3622016-20, 2016-9 I.R.B. 3622016-21, 2016-12 I.R.B. 4652016-22, 2016-13 I.R.B. 4882016-23, 2016-13 I.R.B. 4902016-24, 2016-13 I.R.B. 4922016-25, 2016-13 I.R.B. 4932016-26, 2016-14 I.R.B. 533

Proposed Regulations:

REG-118867-10, 2016-10 I.R.B. 411REG-147310-12, 2016-7 I.R.B. 336REG-150349-12, 2016-11 I.R.B. 440REG-138344-13, 2016-4 I.R.B. 294REG-123867-14, 2016-12 I.R.B. 484REG-125761-14, 2016-7 I.R.B. 322REG-100861-15, 2016-8 I.R.B. 356REG-109822-15, 2016-14 I.R.B. 535REG-127923-15, 2016-12 I.R.B. 473REG-129067-15, 2016-10 I.R.B. 421

Proposed Regulations:—Continued

REG-134122-15, 2016-7 I.R.B. 334REG-101701-16, 2016-9 I.R.B. 368

Revenue Procedures:

2016-1, 2016-1 I.R.B. 12016-2, 2016-1 I.R.B. 1022016-3, 2016-1 I.R.B. 1262016-4, 2016-1 I.R.B. 1422016-5, 2016-1 I.R.B. 1882016-6, 2016-1 I.R.B. 2002016-7, 2016-1 I.R.B. 2392016-8, 2016-1 I.R.B. 2432016-10, 2016-2 I.R.B. 2702016-11, 2016-2 I.R.B. 2742016-13, 2016-4 I.R.B. 2902016-14, 2016-9 I.R.B. 3652016-16, 2016-10 I.R.B. 3942016-15, 2016-11 I.R.B. 4352016-17, 2016-11 I.R.B. 4362016-19, 2016-13 I.R.B. 4972016-20, 2016-13 I.R.B. 4992016-21, 2016-14 I.R.B. 533

Revenue Rulings:

2016-1, 2016-2 I.R.B. 2622016-2, 2016-4 I.R.B. 2842016-3, 2016-3 I.R.B. 2822016-4, 2016-6 I.R.B. 2992016-5, 2016-8 I.R.B. 3442016-6, 2016-14 I.R.B. 5192016-7, 2016-10 I.R.B. 3912016-8, 2016-11 I.R.B. 4262016-9, 2016-14 I.R.B. 530

Treasury Decisions:

9745, 2016-2 I.R.B. 2569746, 2016-14 I.R.B. 5159748, 2016-8 I.R.B. 3479749, 2016-10 I.R.B. 3739750, 2016-10 I.R.B. 3749751, 2016-10 I.R.B. 3799752, 2016-10 I.R.B. 3859753, 2016-11 I.R.B. 4269754, 2016-11 I.R.B. 4329755, 2016-12 I.R.B. 4429756, 2016-12 I.R.B. 4509757, 2016-12 I.R.B. 462

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–27 through 2015–52 is in Internal Revenue Bulletin2015–52, dated December 28, 2015.

April 4, 2016 Bulletin No. 2016–14ii

Finding List of Current Actions onPreviously Published Items1

Bulletins 2016–1 through 2016–14

Announcements:

2007-21Modified byAnn. 2016-1, 2016-3 I.R.B. 283

Notices:

2005-50Modified byNotice 2016-2, 2016-2 I.R.B. 265

2007-59Revoked byNotice 2016-16, 2016-7 I.R.B. 318

2013-54Supplemented byNotice 2016-17, 2016-9 I.R.B. 358

2014-79Superseded byNotice 2016-1, 2016-2 I.R.B. 265



Revenue Procedures:

2003-36Superseded byRev. Proc. 2016-19, 2016-13 I.R.B. 497






Revenue Procedures:—Continued






2015-53Modified byRev. Proc. 2016-11, 2016-2 I.R.B. 274

Revenue Rulings:

2005-3Modified byRev. Rul. 2016-8, 2016-11 I.R.B. 426

2008-15Revoked byRev. Rul. 2016-3, 2016-3 I.R.B. 282

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2015–27 through 2015–52 is in Internal Revenue Bulletin2015–52, dated December 28, 2015.

Bulletin No. 2016–14 April 4, 2016iii

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