Internal Revenue Bulletin 2010-39 (PDF rendition): IRS Announcements

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Bulletin No. 201
0-39
September 27, 20
10
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2010–21, page 388.
Interest rates; underpayments and overpayments.The
rates for interest determined under section 6621 of the Code
for the calendar quarter beginning October 1, 2010, will be 4
percent for overpayments (3 percent in the case of a corpo-
ration), 4 percent for underpayments, and 6 percent for large
corporate underpayments. The rate of interest paid on the por-
tion of a corporate overpayment exceeding $10,000 will be 1.5
percent.
Rev. Rul. 2010–22, page 388.
Fringe benefits aircraft valuation formula.The Standard
Industry Fare Level (SIFL) cents-per-mile rates and terminal
charge in effect for the second half of 2010 are set forth for
purposes of determining the value of noncommercial flights
on employer-provided aircraft under section 1.61–2(g) of the
regulations.
Rev. Rul. 2010–23, page 388.
Revenue ruling obsoleted.This ruling obsoletes Rev. Rul.
2003–102, 2003–2 C.B. 559, which provides guidance on
employer reimbursements of amounts paid by an employee to
purchase nonprescription medicines or drugs.
Notice 2010–59, page 396.
This notice provides guidance on new section 106(f) of the
Code, which requires that an over-the-counter medicine or drug
be prescribed to be a medical expense for purposes of section
105. Notices 96–53, 2004–2, 2004–50, 2008–51, 2008–52
modified. Notice 2006–69 amplified.
Announcement 2010–56, page 398.
The results of the 2009–10 allocation round of the qualifying
advanced coal project program and the qualifying gasification
project program provide the identity of the applicants that have
been awarded credits and the amount of credits awarded to
each applicant. This announcement also serves notice to ap-
plicants that the 2010–11 allocation round is currently open for
the Code section 48A program pursuant to Notice 2009–24.
The Service will not conduct a 2010–11 allocation round for
the Code section 48B program because the total amount of
available credits were allocated during the 2009–10 round.
ADMINISTRATIVE
Announcement 2010–59, page 399.
This document contains a correction to Notice 2009–80,
2009–51 I.R.B. 859, which contained an incorrect name.
Fi
nding Lists begin on page ii.
Index for July through September begins on page iv.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
September 27, 20102010–39 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 61.—G
ross Income
Defined
26 CFR 1.61–21
: Taxation of fringe benefits.
Fringe benefi
ts aircraft valuation for-
mula.The Sta
ndard Industry Fare Level
(SIFL) cents
-per-mile rates and terminal
charge in eff
ect for the second half of 2010
are set forth
for purposes of determining
the value of n
oncommercial flights on
employer-p
rovided aircraft under section
1.61–2(g) o
f the regulations.
Rev. Rul. 2010
–22
For purposes o
f the taxation of fringe
benefits unde
rsection61oftheInter-
nal Revenue Co
de, section 1.61–21(g) of
the Income Ta
x Regulations provides a
rule for valu
ing noncommercial flights
on employer-
provided aircraft. Section
1.61–21(g)(
5) provides an aircraft valua-
tion formul
a to determine the value of such
flights. Th
e value of a flight is determined
under the ba
se aircraft valuation formula
(also known
as the Standard Industry Fare
Level formula
or SIFL) by multiplying
the SIFL cents
-per-mile rates applicable
for the period
during which the flight was
takenbythea
ppropriate aircraft multiple
provided in s
ection 1.61–21(g)(7) and then
adding the ap
plicable terminal charge. The
SIFL cents-p
er-mile rates in the formula
and the term
inal charge are calculated by
the Departm
ent of Transportation and are
reviewed se
mi-annually.
The followi
ng chart sets forth the termi-
nal charge a
nd SIFL mileage rates:
Period During Which
the Flight Is Taken
Terminal
Charge
SIFL Mileage
Rates
7/1/10 – 12/31/10
$41.00
Up to 500 miles
= $.2243 per mile
501–1500 mi
les
= $.1710 per
mile
Over 1500 miles
= $.1644 per mile
DRAFTING IN
FORMATION
The princip
al author of this revenue
ruling is Ka
thleen Edmondson of the
Office of Di
vision Counsel/Associate
Chief Coun
sel (Tax Exempt/Govern-
ment Entit
ies). For further information
regarding
this revenue ruling, contact
Ms. Edmond
son at (202) 622–0047 (not a
toll-fre
e call).
Section 105.—Amounts
Received Under Accident
and Health Plans
Revenue ruling obsoleted.This ruling
obsoletes Rev. Rul. 2003–102, 2003–2
C.B. 559, which provides guidance on em-
ployer reimbursements of amounts paid by
an employee to purchase nonprescription
medicines or drugs.
Rev. Rul. 2010–23
Rev. Rul. 2003–102, 2003–2 C.B.
559, holds that reimbursements by the em-
ployer of amounts expended for medicines
or drugs ava
ilable without a prescription
are excluda
ble from gross income under
§105(b).
Section 900
3 of the Patient Protec-
tion and Aff
ordable Care Act (Afford-
able Care A
ct), Pub. L. No. 111–148
(March 23,
2010), adds § 106(f) and
amends §§ 2
23(d)(2)(A) and 220(d)(2)(A).
These sect
ions revise the definition of
medical e
xpenses after December 31,
2010, and
apply to health flexible spending
arrangem
ents, health reimbursement
arrangem
ents, Health Savings Accounts,
and Arche
r Medical Savings Accounts.
These se
ctions provide that a medicine or
adrugsh
all be treated as medical expenses
only if s
uch medicine or drug is prescribed
(regard
less of whether the medicine or
drug req
uires a prescription). Because the
defini
tion of medical expenses has been
change
d, the Internal Revenue Service
has con
cluded that the ruling position
stated
in Rev. Rul. 2003–102 is no
longer
determinative. Accordingly, Rev.
Rul. 20
03–102 is declared obsolete as of
the ef
fective date of section 9003 of the
Affor
dable Care Act.
DRAFTING IN
FORMATION
The princip
al author of this revenue rul-
ing is Robin
Ehrenberg of the Office of
Division C
ounsel/Associate Chief Coun-
sel (Tax Ex
empt & Government Entities).
For furthe
r information regarding this rev-
enue rulin
g, contact Ms. Ehrenberg at
(202) 622
–6080 (not a toll-free call).
Section 6621.—Determina-
tion of Rate of Interest
26 CFR 301.6621–1: Interest rate.
Interest rates; underpayments and
overpayments.The rates for interest de-
termined under section 6621 of the Code
for the calendar quarter beginning Octo-
ber 1, 2010, will be 4 percent for over-
payments (3 percent in the case of a cor-
poration), 4 percent for underpayments,
and 6 percent for large corporate underpay-
ments. The rate of interest paid on the por-
tion of a corporate overpayment exceeding
$10,000 will be 1.5 percent.
2010–39 I.R.B.388September 27, 2010

Rev. Rul. 2010–21
Section 6621 of the Internal Revenue
Code establishes the rates for interest
on tax overpayments and tax underpay-
ments. Under section 6621(a)(1), the
overpayment rate is the sum of the federal
short-term rate plus 3 percentage points
(2 percentage points in the case of a cor-
poration), except the rate for the portion
of a corporate overpayment of tax exceed-
ing $10,000 for a taxable period is the
sum of the federal short-term rate plus
0.5 of a percentage point. Under section
6621(a)(2), the underpayment rate is the
sum of the federal short-term rate plus 3
percentage points.
Section 6621(c) provides that for pur-
poses of interest payable under section
6601 on any large corporate underpay-
ment, the underpayment rate under section
6621(a)(2) is determined by substituting
“5 percentage points” for “3 percentage
points.” See section 6621(c) and section
301.6621–3 of the Regulations on Proce-
dure and Administration for the definition
of a large corporate underpayment and
for the rules for determining the appli-
cable date. Section 6621(c) and section
301.6621–3 are generally effective for
periods after December 31, 1990.
Section 6621(b)(1) provides that the
Secretary will determine the federal
short-term rate for the first month in each
calendar quarter. Section 6621(b)(2)(A)
provides that the federal short-term rate
determined under section 6621(b)(1) for
any month applies during the first calen-
dar quarter beginning after that month.
Section 6621(b)(3) provides that the fed-
eral short-term rate for any month is the
federal short-term rate determined during
that month by the Secretary in accordance
with section 1274(d), rounded to the near-
est full percent (or, if a multiple of
1
/2of
1 percent, the rate is increased to the next
highest full percent).
Notice 88–59, 1988–1 C.B. 546, an-
nounced that, in determining the quarterly
interest rates to be used for overpayments
and underpayments of tax under section
6621, the Internal Revenue Service will
use the federal short-term rate based on
daily compounding because that rate is
most consistent with section 6621 which,
pursuant to section 6622, is subject to daily
compounding.
The federal short-term rate determined
in accordance with section 1274(d) dur-
ing July 2010 is the rate published in Rev-
enue Ruling 2010–19, 2010–31 I.R.B. 174
to take effect beginning August 1, 2010.
The federal short-term rate, rounded to the
nearest full percent, based on daily com-
pounding determined during the month of
July 2010 is 1 percent. Accordingly, an
overpayment rate of 4 percent (3 percent
in the case of a corporation) and an under-
payment rate of 4 percent are established
for the calendar quarter beginning October
1, 2010. The overpayment rate for the por-
tion of a corporate overpayment exceeding
$10,000 for the calendar quarter beginning
October 1, 2010, is 1.5 percent. The un-
derpayment rate for large corporate under-
payments for the calendar quarter begin-
ning October 1, 2010, is 6 percent. These
rates apply to amounts bearing interest dur-
ing that calendar quarter.
Interest factors for daily compound in-
terest for annual rates of 1.5 percent, 3 per-
cent, 4 percent, and 6 percent are published
in Tables 8, 11, 13, and 17 of Rev. Proc.
95–17, 1995–1 C.B. 556, 562, 565, 567,
and 571.
Annual interest rates to be compounded
daily pursuant to section 6622 that apply
for prior periods are set forth in the tables
accompanying this revenue ruling.
DRAFTING INFORMATION
The principal author of this revenue rul-
ing is Deborah Colbert-James of the Of-
fice of Associate Chief Counsel (Proce-
dure & Administration). For further infor-
mation regarding this revenue ruling, con-
tact Ms. Colbert-James at (202) 622–8143
(not a toll-free call).
TABLE OF INTEREST RATES
PERIODS BEFORE JUL. 1, 1975 — PERIODS ENDING DEC. 31, 1986
OVERPAYMENTS AND UNDERPAYMENTS
PERIODRATE
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, 19787%
Table 3, pg. 558
Feb. 1, 1978—Jan. 31, 19806%
Table 2, pg. 557
Feb. 1, 1980—Jan. 31, 198212%
Table 5, pg. 560
Feb. 1, 1982—Dec. 31, 198220%
Table 6, pg. 560
Jan. 1, 1983—Jun. 30, 198316%
Table 37, pg. 591
Jul. 1, 1983—Dec. 31, 198311%
Table 27, pg. 581
Jan. 1, 1984—Jun. 30, 198411%
Table 75, pg. 629
Jul. 1, 1984—Dec. 31, 198411%
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, 198610%
Table 25, pg. 579
Jul. 1, 1986—Dec. 31, 19869%
Table 23, pg. 577
September 27, 20103892010–39 I.R.B.

TABLE OF INTEREST RATES
FROM JAN. 1, 1987 — DEC. 31, 1998
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1987—Mar. 31, 19878%21
575
9%23
577
Apr. 1, 1987—Jun
. 30, 1987
8%21
575
9%23
577
Jul. 1, 1987—Sep. 30, 19878%21
575
9%23
577
Oct. 1, 1987—Dec. 31, 19879%23
577
10%
25579
Jan. 1, 1988—Ma
r. 31, 1988
10%7362711%
75
629
Apr. 1, 1988—Jun. 30, 19889%71
625
10%73627
Jul. 1, 1988—Sep. 30, 19889%71
625
10%73627
Oct. 1, 1988—D
ec. 31, 1988
10%7362711%
75
629
Jan. 1, 1989—Mar. 31, 198910%
25579
11%27
581
Apr. 1, 1989—Jun. 30, 198911%27
581
12%29
583
Jul. 1, 1989—
Sep. 30, 1989
11%27
581
12%29
583
Oct. 1, 1989—Dec. 31, 198910%
25579
11%27
581
Jan. 1, 1990—Mar. 31, 199010%
25579
11%27
581
Apr. 1, 1990
—Jun. 30, 1990
10%
25579
11%27
581
Jul. 1, 1990—Sep. 30, 199010%
25579
11%27
581
Oct. 1, 1990—Dec. 31, 199010%
25579
11%27
581
Jan. 1, 199
1—Mar. 31, 1991
10%
25579
11%27
581
Apr. 1, 1991—Jun. 30, 19919%23
577
10%
25579
Jul. 1, 1991—Sep. 30, 19919%23
577
10%
25579
Oct. 1, 19
91—Dec. 31, 1991
9%23
577
10%
25579
Jan. 1, 1992—Mar. 31, 19928%696239%71
625
Apr. 1, 1992—Jun. 30, 19927%676218%69623
Jul. 1, 1
992—Sep. 30, 1992
7%676218%69623
Oct. 1, 1992—Dec. 31, 19926%
65
6197%67621
Jan. 1, 1993—Mar. 31, 19936%17
571
7%19
573
Apr. 1,
1993—Jun. 30, 1993
6%17
571
7%19
573
Jul. 1, 1993—Sep. 30, 19936%17
571
7%19
573
Oct. 1, 1993—Dec. 31, 19936%17
571
7%19
573
Jan. 1,
1994—Mar. 31, 1994
6%17
571
7%19
573
Apr. 1, 1994—Jun. 30, 19946%17
571
7%19
573
Jul. 1, 1994—Sep. 30, 19947%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%
25579
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, 19968%696239%71
625
Apr
. 1, 1996—Jun. 30, 1996
7%676218%69623
Jul. 1, 1996—Sep. 30, 19968%696239%71
625
Oct. 1, 1996—Dec. 31, 19968%696239%71
62
5
Ja
n. 1, 1997—Mar. 31, 1997
8%21
575
9%23
577
Apr. 1, 1997—Jun. 30, 19978%21
575
9%23
577
Jul. 1, 1997—Sep. 30, 19978%21
57
5
9%23
57
7
Oc
t. 1, 1997—Dec. 31, 1997
8%21
575
9%23
577
Jan. 1, 1998—Mar. 31, 19988%21
575
9%23
577
Apr. 1, 1998—Jun. 30, 19987%19
5
73
8%21
5
75
J
ul. 1, 1998—Sep. 30, 1998
7
%
1
9
573
8
%
2
1
575
Oct. 1, 1998—Dec. 31, 19987%19
573
8%21
575
2010–39 I.R.B.390September 27, 2010

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
NONCORPORATE OVERPAYMENTS AND UNDERPAYMENTS
1995–1 C.B.
RATETABLEPG
Jan. 1, 1999—Mar. 31, 19997%19
573
Apr. 1, 1999—Jun. 30, 19998%21
575
Jul. 1, 1999—Sep. 30, 19998%21
575
Oct. 1, 1999—Dec. 31, 19998%21
575
Jan. 1, 2000—Mar. 31, 20008%69623
Apr. 1, 2000—Jun. 30, 20009%71
625
Jul. 1, 2000—Sep. 30, 20009%71
625
Oct. 1, 2000—Dec. 31, 20009%71
625
Jan. 1, 2001—Mar. 31, 20019%23
577
Apr. 1, 2001—Jun. 30, 20018%21
575
Jul. 1, 2001—Sep. 30, 20017%19
573
Oct. 1, 2001—Dec. 31, 20017%19
573
Jan. 1, 2002—Mar. 31, 20026%17
571
Apr. 1, 2002—Jun. 30, 20026%17
571
Jul. 1, 2002—Sep. 30, 20026%17
571
Oct. 1, 2002—Dec. 31, 20026%17
571
Jan. 1, 2003—Mar. 31, 2003
5%15569
Apr. 1, 2003—Jun. 30, 2003
5%15569
Jul. 1, 2003—Sep. 30, 2003
5%15569
Oct. 1, 2003—Dec. 31, 20034%13
567
Jan. 1, 2004—Mar. 31, 20044%61
615
Apr. 1, 2004—Jun. 30, 2004
5%
63617
Jul. 1, 2004—Sep. 30, 20044%61
615
Oct. 1, 2004—Dec. 31, 2004
5%
63617
Jan. 1, 2005—Mar. 31, 20055%15569
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, 20067%19
573
Apr. 1, 2006—Jun. 30, 20067%19
573
Jul. 1, 2006—Sep. 30, 20068%21
575
Oct. 1, 2006—Dec. 31, 20068%21
575
Jan. 1, 2007—Mar. 31, 20078%21
575
Apr. 1, 2007—Jun. 30, 20078%21
575
Jul. 1, 2007—Sep. 30, 20078%21
575
Oct. 1, 2007—Dec. 31, 20078%21
575
Jan. 1, 2008—Mar. 31, 20087%67621
Apr. 1, 2008—Jun. 30, 20086%
65
619
Jul. 1, 2008—Sep. 30, 2008
5%
63617
Oct. 1, 2008—Dec. 31, 20086%
65
619
Jan. 1, 2009—Mar. 31, 2009
5%15569
Apr. 1, 2009—Jun. 30, 20094%13
567
Jul. 1, 2009—Sep. 30, 20094%13
567
Oct. 1, 2009—Dec. 31, 20094%13
567
Jan. 1, 2010—Mar. 31, 20104%13
567
Apr. 1, 2010—Jun. 30, 20104%13
567
Jul. 1, 2010—Sep. 30, 20104%13
567
Oct. 1, 2010—Dec. 31, 20104%13
567
September 27, 20103912010–39 I.R.B.

TABLE OF INTEREST RATES
FROM JANUARY 1, 1999 — PRESENT
CORPORATE OVERPAYMENTS AND UNDERPAYMENTS
OVERPAYMENTSUNDERPAYMENTS
1995–1 C.B.1995–1 C.B.
RATE TABLEPGRATE TABLEPG
Jan. 1, 1999—Mar. 31, 19996%17
571
7%19
573
Apr. 1, 1999—Jun. 30, 19997%19
573
8%21
575
Jul. 1, 1999—Sep. 30, 19997%19
573
8%21
575
Oct. 1, 1999—Dec. 31, 19997%19
573
8%21
575
Jan. 1, 2000—Mar. 31, 20007%676218%69623
Apr. 1, 2000—Jun. 30, 20008%696239%71
625
Jul. 1, 2000—Sep. 30, 20008%696239%71
625
Oct. 1, 2000—Dec. 31, 20008%696239%71
625
Jan. 1, 2001—Mar. 31, 20018%21
575
9%23
577
Apr. 1, 2001—Jun. 30, 20017%19
573
8%21
575
Jul. 1, 2001—Sep. 30, 20016%17
571
7%19
573
Oct. 1, 2001—Dec. 31, 20016%17
571
7%19
573
Jan. 1, 2002—Mar. 31, 2002
5%15569
6%17
571
Apr. 1, 2002—Jun. 30, 2002
5%15569
6%17
571
Jul. 1, 2002—Sep. 30, 2002
5%15569
6%17
571
Oct. 1, 2002—Dec. 31, 2002
5%15569
6%17
571
Jan. 1, 2003—Mar. 31, 20034%13
5675%15569
Apr. 1, 2003—Jun. 30, 20034%13
5675%15569
Jul. 1, 2003—Sep. 30, 20034%13
5675%15569
Oct. 1, 2003—Dec. 31, 20033%11
565
4%13
567
Jan. 1, 2004—Mar. 31, 20043%
59
6134%61
615
Apr. 1, 2004—Jun. 30, 20044%61
6155%
63617
Jul. 1, 2004—Sep. 30, 20043%
59
6134%61
615
Oct. 1, 2004—Dec. 31, 20044%61
6155%
63617
Jan. 1, 2005—Mar. 31, 2005
4%13
5675%15569
Apr. 1, 2005—Jun. 30, 20055%15569
6%17
571
Jul. 1, 2005—Sep. 30, 20055%15569
6%17
571
Oct. 1, 2005—Dec. 31, 2005
6%17
571
7%19
573
Jan. 1, 2006—Mar. 31, 20066%17
571
7%19
573
Apr. 1, 2006—Jun. 30, 20066%17
571
7%19
573
Jul. 1, 2006—Sep. 30, 20067%19
573
8%21
575
Oct. 1, 2006—Dec. 31, 20067%19
573
8%21
575
Jan. 1, 2007—Mar. 31, 20077%19
573
8%21
575
Apr. 1, 2007—Jun. 30, 20077%19
573
8%21
575
Jul. 1, 2007—Sep. 30, 20077%19
573
8%21
575
Oct. 1, 2007—Dec. 31, 20077%19
573
8%21
575
Jan. 1, 2008—Mar. 31, 20086%
65
6197%67621
Apr. 1, 2008—Jun. 30, 2008
5%
636176%
65
619
Jul. 1, 2008—Sep. 30, 20084%61
6155%
63617
Oct. 1, 2008—Dec. 31, 2008
5%
636176%
65
619
Jan. 1, 2009—Mar. 31, 20094%13
5675%15569
Apr. 1, 2009—Jun. 30, 20093%11
565
4%13
567
Jul. 1, 2009—Sep. 30, 20093%11
565
4%13
567
Oct. 1, 2009—Dec. 31, 20093%11
565
4%13
567
Jan. 1, 2010—Mar. 31, 20103%11
565
4%13
567
Apr. 1, 2010—Jun. 30, 20103%11
565
4%13
567
Jul. 1, 2010—Sep. 30, 20103%11
565
4%13
567
Oct. 1, 2010—Dec. 31, 20103%11
565
4%13
567
2010–39 I.R.B.392September 27, 2010

TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT
1995–1 C.B.
RATETABLEPG
Jan. 1, 1991—Mar. 31, 199113%31
585
Apr. 1, 1991—Jun. 30, 199112%29
583
Jul. 1, 1991—Sep. 30, 199112%29
583
Oct. 1, 1991—Dec. 31, 199112%29
583
Jan. 1, 1992—Mar. 31, 199211%
75
629
Apr. 1, 1992—Jun. 30, 199210%73627
Jul. 1, 1992—Sep. 30, 199210%73627
Oct. 1, 1992—Dec. 31, 19929%71
625
Jan. 1, 1993—Mar. 31, 19939%23
577
Apr. 1, 1993—Jun. 30, 19939%23
577
Jul. 1, 1993—Sep. 30, 19939%23
577
Oct. 1, 1993—Dec. 31, 19939%23
577
Jan. 1, 1994—Mar. 31, 19949%23
577
Apr. 1, 1994—Jun. 30, 19949%23
577
Jul. 1, 1994—Sep. 30, 199410%
25579
Oct. 1, 1994—Dec. 31, 199411%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, 199611%
75
629
Apr. 1, 1996—Jun. 30, 199610%73627
Jul. 1, 1996—Sep. 30, 199611%
75
629
Oct. 1, 1996—Dec. 31, 199611%
75
629
Jan. 1, 1997—Mar. 31, 199711%27
581
Apr. 1, 1997—Jun. 30, 199711%27
581
Jul. 1, 1997—Sep. 30, 199711%27
581
Oct. 1, 1997—Dec. 31, 199711%27
581
Jan. 1, 1998—Mar. 31, 199811%27
581
Apr. 1, 1998—Jun. 30, 199810%
25579
Jul. 1, 1998—Sep. 30, 199810%
25579
Oct. 1, 1998—Dec. 31, 199810%
25579
Jan. 1, 1999—Mar. 31, 19999%23
577
Apr. 1, 1999—Jun. 30, 199910%
25579
Jul. 1, 1999—Sep. 30, 199910%
25579
Oct. 1, 1999—Dec. 31, 199910%
25579
Jan. 1, 2000—Mar. 31, 200010%73627
Apr. 1, 2000—Jun. 30, 200011%
75
629
Jul. 1, 2000—Sep. 30, 200011%
75
629
Oct. 1, 2000—Dec. 31, 200011%
75
629
Jan. 1, 2001—Mar. 31, 200111%27
581
Apr. 1, 2001—Jun. 30, 200110%
25579
Jul. 1, 2001—Sep. 30, 20019%23
577
Oct. 1, 2001—Dec. 31, 20019%23
577
Jan. 1, 2002—Mar. 31, 20028%21
575
Apr. 1, 2002—Jun. 30, 20028%21
575
Jul. 1, 2002—Sep. 30, 20028%21
575
Oct. 1, 2002—Dec. 30, 20028%21
575
Jan. 1, 2003—Mar. 31, 20037%19
573
Apr. 1, 2003—Jun. 30, 20037%19
573
Jul. 1, 2003—Sep. 30, 20037%19
573
Oct. 1, 2003—Dec. 31, 20036%17
571
Jan. 1, 2004—Mar. 31, 20046%
65
619
Apr. 1, 2004—Jun. 30, 20047%67621
Jul. 1, 2004—Sep. 30, 20046%
65
619
Oct. 1, 2004—Dec. 31, 20047%67621
September 27, 20103932010–39 I.R.B.

TABLE OF INTEREST RATES FOR
LARGE CORPORATE UNDERPAYMENTS
FROM JANUARY 1, 1991 — PRESENT – Continued
1995–1 C.B.
RATETABLEPG
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, 20069%23
577
Apr. 1, 2006—Jun. 30, 20069%23
577
Jul. 1, 2006—Sep. 30, 200610%
25579
Oct. 1, 2006—Dec. 31, 200610%
25579
Jan. 1, 2007—Mar. 31, 200710%
25579
Apr. 1, 2007—Jun. 30, 200710%
25579
Jul. 1, 2007—Sep. 30, 200710%
25579
Oct. 1, 2007—Dec. 31, 200710%
25579
Jan. 1, 2008—Mar. 31, 20089%71
625
Apr. 1, 2008—Jun. 30, 20088%69623
Jul. 1, 2008—Sep. 30, 20087%67621
Oct. 1, 2008—Dec. 31, 20088%69623
Jan. 1, 2009—Mar. 31, 20097%19
573
Apr. 1, 2009—Jun. 30, 20096%17
571
Jul. 1, 2009—Sep. 30, 20096%17
571
Oct. 1, 2009—Dec. 31, 20096%17
571
Jan. 1, 2010—Mar. 31, 20106%17
571
Apr. 1, 2010—Jun. 30, 20106%17
571
Jul. 1, 2010—Sep. 30, 20106%17
571
Oct. 1, 2010—Dec. 31, 20106%17
571
TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS EXCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT
1995–1
C.B.
RATETABLEPG
Jan. 1, 1995—Mar. 31, 19956.5%
18
572
Apr. 1, 1995—Jun. 30, 19957.5%
20
574
Jul. 1
, 1995—Sep. 30, 1995
6.5%
18
572
Oct. 1, 1995—Dec. 31, 19956.5%
18
572
Jan. 1, 1996—Mar. 31, 1996
6.5%
66620
Apr. 1, 1996—Jun. 30, 1996
5.5%
64618
Jul.
1, 1996—Sep. 30, 1996
6.5%
66620
Oct. 1, 1996—Dec. 31, 1996
6.5%
66620
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
57
2
Ja
n. 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
57
0
Oc
t. 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
5
70
J
ul. 1, 1999—Sep. 30, 1999
5.5%
1
6
570
Oct. 1, 1999—Dec. 31, 1999
5.5%
16
570
Jan. 1, 2000—Mar. 31, 2000
5.5%
64618
Apr. 1, 2000—Jun. 30, 2000
6.5%
66620
Jul. 1, 2000—Sep. 30, 2000
6.5%
66620
2010–39 I.R.B.394September 27, 2010

TABLE OF INTEREST RATES FOR CORPORATE
OVERPAYMENTS E
XCEEDING $10,000
FROM JANUARY 1, 1995 — PRESENT – Continued
1995–1 C.B.
RATETABLEPG
Oct. 1, 2000—Dec. 31, 2000
6.5%
66620
Jan. 1, 2001—Ma
r. 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, 200
4—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, 20
04—Dec. 31, 2004
2.5%58
612
Jan. 1, 2005—Mar. 31, 20052.5%
10
564
Apr. 1, 2
005—Jun. 30, 2005
3.5%
12
566
Jul. 1, 2005—Sep. 30, 20053.5%
12
566
Oct. 1, 2005—Dec. 31, 20054.5%
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%
62616
Apr. 1, 2008—Jun. 30, 2008
3.5%
60614
Jul
. 1, 2008—Sep. 30, 2008
2.5%58
612
Oct. 1, 2008—Dec. 31, 2008
3.5%
60614
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
56
2
Ja
n. 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
5
62
O
ct. 1, 2010—Dec. 31, 2010
1.5%
8
562
September 27, 20103952010–39 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Section 105 — Amounts
Received Under Accident and
Health Plans, Section 106 —
Contributions by Employers
to Accident and Health Plans,
Section 125 — Cafeteria
Plans, Section 220 — Archer
MSAs, Section 223 — Health
Savings Accounts
Notice 2010–59
I. PURPOSE
This notice provides guidance on
§ 9003 of the Patient Protection and
Affordable Care Act (Affordable Care
Act), Pub. L. No. 111–148, enacted
March 23, 2010, which revises the defi-
nition of medical expenses as it relates to
over-the-counter drugs. Section 9003 gen-
erally applies after December 31, 2010.
II. BACKGROUND
Section 9003 of the Affordable Care
Act adds new § 106(f) of the Internal Rev-
enue Code, which revises the definition
of medical expenses for employer-pro-
vided accident and health plans, including
health flexible spending arrangements
(health FSAs) and health reimbursement
arrangements (HRAs). Section 9003 also
revises the definition of qualified medical
expenses for Health Savings Accounts
(HSAs) and Archer Medical Savings Ac-
counts (Archer MSAs).
III. PAYMENT OR REIMBURSEMENT
OF MEDICINES OR DRUGS
RESTRICTED TO PRESCRIBED
DRUGS, INSULIN, AND
OVER-THE-COUNTER DRUGS
THAT ARE PRESCRIBED
Section 106 provides that the gross in-
come of an employee does not include em-
ployer-provided coverage under an acci-
dent or health plan. Section 105(b) gen-
erally provides that the gross income of an
employee does not include amounts paid
as reimbursements for medical care under
an employer-provided accident or health
plan. New § 106(f), as added by the Af-
fordable Care Act, provides that, for pur-
poses of §§ 106 and 105, beginning af-
ter December 31, 2010, expenses incurred
for a medicine or a drug shall be treated
as a reimbursement for medical expenses
only if such medicine or drug is a pre-
scribed drug (determined without regard
to whether such drug is available without
a prescription) or is insulin. Thus, un-
der new § 106(f), expenses incurred for
medicines or drugs may be paid or re-
imbursed by an employer-provided plan,
including a health FSA or HRA, only if
(1) the medicine or drug requires a pre-
scription, (2) is available without a pre-
scription (an over-the-counter medicine or
drug) and the individual obtains a pre-
scription, or (3) is insulin. Expenses in-
curred for over-the-counter medicines or
drugs purchased without a prescription be-
fore January 1, 2011 may be reimbursed
tax-free at any time, pursuant to the terms
of the employer’s plan.
The Affordable Care Act also amends
§ 223(d)(2)(A) withrespect to HSAs and
§ 220(d)(2)(A) with respect to Archer
MSAs, to provide that for amounts paid
after December 31, 2010, a distribu-
tionfromanHSAorArcherMSAfora
medicine or drug is a tax-free qualified
medical expense only if the medicine or
drug is a prescribed drug (determined
without regard to whether such drug is
available without a prescription) or is in-
sulin. Thus, under new § 223(d)(2)(A)
and new § 220(d)(2)(A), a distribution
fromanHSAoranArcherMSAfora
medicine or drug is a tax-free qualified
medical expense only if (1) the medicine
or drug requires a prescription, (2) is an
over-the-counter medicine or drug and the
individual obtains a prescription, or (3) is
insulin. If amounts are distributed from an
HSA or Archer MSA for any medicine or
drug which does not satisfy this require-
ment, the amounts will be distributions
for nonqualified medical expenses, which
are includable in gross income and gen-
erally subject to a 20 percent additional
tax. This change does not affect HSA or
Archer MSA distributions for medicines
or drugs made before January 1, 2011,
nor does it affect distributions made af-
ter December 31, 2010, for medicines or
drugs purchased on or before that date.
See Revenue Ruling 2003–102, 2003–2
C.B. 559.
Section 213(d)(3) defines a prescribed
drug as a drug or biological that requires
a prescription of a physician for its use by
an individual. In contrast, under §§ 106(f),
223(d)(2)(A) and 220(d)(2)(A), an indi-
vidual may be reimbursed for over-the-
counter medicines or drugs, so long as
the individual obtains a prescription for
the medicines or drugs. For purposes of
§§ 106(f), 223(d)(2)(A) and 220(d)(2)(A)
only, a “prescription” means a written or
electronic order for amedicine or drug that
meets the legal requirements of a prescrip-
tion in the state in which the medical ex-
pense is incurred and that is issued by an
individual who is legally authorized to is-
sue a prescription in that state.
The rules in §§ 106(f), 223(d)(2)(A)
and 220(d)(2)(A) do not apply to items
that are not medicines or drugs, includ-
ing equipment such ascrutches, supplies
such as bandages, anddiagnostic devices
such as blood sugar test kits. Such items
may qualify as medical care if they other-
wise meet the definition of medical care in
§ 213(d)(1), which includes expenses for
the diagnosis, cure, mitigation, treatment,
or prevention of disease, or for the purpose
of affecting any structure or function of the
body. However, expenses for items that
are merely beneficial to the general health
of an individual, such as an expenditure for
a vacation, are not expenses for medical
care. Treas. Reg. § 1.213–1(e)(1)(ii).
IV.HEALTHFSAANDHRADEBIT
CARDS AND OVER-THE-COUNTER
DRUG EXPENSES
The current rules for use of health
FSA or HRA debit cards are set forth
in Prop. Treas. Reg. § 1.125–6 and
in Rev. Rul. 2003–43, 2003–1 C.B.
935; Notice 2006–69, 2006–2 C.B. 107;
Notice 2007–2, 2007–1 C.B. 254; and
Notice 2008–104, 2008–2 C.B. 1298.
Current debit card systems are not capable
of substantiating compliance with new
§ 106(f), which is effective for expenses
incurred after December 31, 2010, with
respect to over-the-counter medicines
or drugs because the systems are inca-
pable of recognizing and substantiating
that the medicines or drugs were pre-
2010–39 I.R.B.396September 27, 2010

scribed. Therefore, except as provided
below, for expenses incurred on and af-
ter January 1, 2011, health FSA and
HRA debit cards may not be used to
purchase over-the-counter medicines or
drugs. Notwithstanding the preceding sen-
tence, in order to facilitate the significant
changes to existing systems necessary to
reflect the statutory change, the IRS will
not challenge the use of health FSA and
HRA debit cards for expenses incurred
through January 15, 2011 if the use of the
debit cards complies with the guidance
specified in the first sentence of this para-
graph. However, on and after January 16,
2011, over-the-counter medicine or drug
purchases at all providers and merchants
(whether or not they have an inventory
information approval system (IIAS)) must
be substantiated before reimbursement
may be made. Substantiation is accom-
plished by submitting the prescription (or
a copy of the prescription or other doc-
umentation that a prescription has been
issued) for the over-the-counter medicine
or drug, and other information from an
independent third party that satisfies the
requirements under Prop. Treas. Reg.
§ 1.125–6(b)(3)(i). Thus, for example, a
customer receipt issued by a pharmacy
which identifies the name of the purchaser
(or the name of the person for whom the
prescription applies), the date and amount
of the purchase and an Rx number sat-
isfies the substantiation requirements for
over-the-counter medicines or drugs, as
does a receipt without an Rx number
accompanied by a copy of the related pre-
scription. Debit cards may continue to
be used for medical expenses other than
over-the-counter medicines or drugs.
Notice 2007–2 provides that health
FSA and HRA debit cards may be used at
a pharmacy that does not have an IIAS if
90 percent of the store’s gross receipts dur-
ing the prior taxable year consists of items
which qualify as expenses for medical care
under § 213(d). Until further guidance
is issued, debit cards may be used at a
pharmacy that satisfies the 90-percent test
to purchase over-the-counter medicines or
drugs that have been prescribed, provided
that substantiation is properly submitted,
in accordance with the terms of the plan,
including the prescription (or a copy of the
prescription or other documentation that a
prescription has beenissued) and other in-
formation from an independent third party
that satisfies the requirements under Prop.
Treas. Reg. § 1.125–6(b)(3)(i). Solely
for the purpose of determining whether a
pharmacy meets this 90-percent test, sales
of over-the-counter medicines and drugs
at the pharmacy may continue to be taken
into account after December 31, 2010.
V. EFFECTIVE DATES
For expenses incurred after
December 31, 2010, payments or
reimbursements for medicines or drugs
from an employer-provided accident and
health plan, including a health FSA or an
HRA,arerestrictedtoprescribeddrugs,
insulin, and over-the-counter medicines or
drugs that are prescribed. This effective
date applies regardless of whether the
plan year for the employer’s plan is a
fiscal or calendar year or whether there is
no plan year (or other coverage period in
the case of an HRA), and regardless of
any applicable grace period for a health
FSA (as provided in Prop. Treas. Reg.
§ 1.125–1(e)).
Tax-free distributions for qualified
medical expenses from an HSA or
Archer MSA for medicines or drugs pur-
chased after December 31, 2010, are
restricted to prescribed drugs, insulin, and
over-the-counter medicines or drugs that
are prescribed.
VI. TRANSITION RULE FOR
CAFETERIA PLAN AMENDMENTS
Cafeteria plans may need to be
amended to conform to the new
over-the-counter drug requirements. Pur-
suant to Prop. Treas. Reg. § 1.125–1(c),
cafeteria plan amendments may be effec-
tive only prospectively. Notwithstanding
the rule against retroactive amendments,
an amendment to conform a cafeteria plan
to the requirements set forth in this no-
tice that is adopted no later than June 30,
2011, may be made effective retroactively
for expenses incurred after December 31,
2010 (or after January 15, 2011 for health
FSA and HRA debit card purchases).
VII. EFFECT ON OTHER
DOCUMENTS
The IRS intends to amend the regula-
tions under §§ 1.105–1, 1.105–2, 1.106–1,
1.125–1 and 1.125–5 to provide for the
new definition of medical expenses. Tax-
payersmayrelyonthisnoticependingthe
issuance of the amended regulations. See
also Revenue Ruling 2010–23 in this issue
of the Internal Revenue Bulletin, which
states that Revenue Ruling 2003–102,
2003–2 C.B. 559, is obsoleted. Also,
the following guidance concerning the
definition of qualified medical expenses
under § 220(d)(2) (Archer MSAs) and
§ 223(d)(2) (HSAs) is modified: Notice
96–53, Q&A 22, 1996–2 C.B. 219; No-
tice 2004–2, Q&A 26, 2004–1 C.B. 269;
Notice 2004–50, Q&A 38, 2004–1 C.B.
196; Notice 2008–51, 2008–1 C.B. 1163;
and Notice 2008–52, 2008–1 C.B. 1166.
Notice 2006–69, 2006–2 C.B. 107, is am-
plified.
REQUEST FOR COMMENTS
The IRS and Treasury invite comments
on further guidance that may be needed
on § 9003 of the Affordable Care Act (for
example, on new designs for debit card
systems that could provide substantia-
tion that an over-the-counter medicine or
drug was prescribed). Comments should
be submitted on or before December 27,
2010, and should include a reference to
Notice 2010–59. Send submissions to
CC:PA:LPD:PR (Notice 2010–59), Room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand
deliveredMonday through Fridaybe-
tween the hours of 8 a.m. and 4 p.m.
to CC:PA:LPD:PR (Notice 2010–59),
Courier’s Desk, Internal Revenue Ser-
vice, 1111 Constitution Avenue, NW,
Washington, DC 20044, or sent electron-
ically, via the following e-mail address:
Notice.comments@irscounsel.treas.gov.
Please include “Notice 2010–59” in
the subject line of any electronic
communication. All material submitted
will be available for public inspection and
copying.
DRAFTING INFORMATION
The principal author of this notice is
Robin Ehrenberg of the Office of Division
Counsel/Associate Chief Counsel (Tax Ex-
empt and Government Entities). For fur-
ther information regarding this notice, con-
tact Ms. Ehrenberg at (202) 622–6080 (not
a toll-free call).
September 27, 20103972010–39 I.R.B.

Part IV. Items o
fGeneralInterest
Announcement of the Results
of 2009–10 Allocation Round
of the Qualifying Advanced
Coal Project Program and the
Qualifying Gasification Project
Program
Announcement 2010–56
This announcement discloses the re-
sults of the 2009–10 allocation round
under the qualifying advanced coal project
program of § 48A and the qualifying gasi-
fication project program of § 48B of the
Internal Revenue Code. This announce-
ment also serves notice to applicants that
a 2010–11 allocation round under the
qualifying advanced coal project pro-
gram is currently openpursuanttoNotice
2009–24, 2009–16 I.R.B. 817. No allo-
cation round will be conducted under the
qualifying gasification project program.
QUALIFYING ADVANCED COAL
PROJECT PROGRAM
Section 48A provides a qualifying ad-
vanced coal project credit in an amount
equal to (1) 20 percent of the qualified in-
vestment (as defined in § 48A(b)) for that
taxable year in qualifying advanced coal
projects (as defined in § 48A(c)(1) and
(e)) described in § 48A(d)(3)(B)(i), (2) 15
percent of the qualified investment for that
taxable year in qualified advanced coal
projects described in § 48A(d)(3)(B)(ii),
and (3) 30 percent of the qualified in-
vestment for that taxable year in qualify-
ing advanced coal projects described in
§ 48A(d)(3)(B)(iii).
On April 20, 2009, the Internal Rev-
enue Service (“Service”) issued Notice
2009–24 to announce an allocation round
for the qualifying advanced coal projects
described in § 48A(d)(3)(B)(iii) (“the
Phase II advanced coal program”). The
Service will certify $1.25 billion of credits
to qualifying projects under the Phase II
advanced coal program.
Section 48A(d)(5) provides that the
Secretary shall, upon making a certifica-
tion under § 48A(d) or § 48B(d), publicly
disclose the identity of the applicant and
the amount of the credit certified with
respect to such applicant.
Section 10.01 of Notice 2009–24 pro-
vides that the Service intends to publish
the results of the allocation process, and
disclose the following information in the
event a qualifying advanced coal project
credit under § 48A is allocated to the tax-
payer’s project: (a) the name of the tax-
payer and (b) the amount of the qualify-
ing advanced coal project credit allocated
to the project.
Accordingly, the results of the 2009–10
allocation round under the Phase II ad-
vanced coal program are as follows:
ProgramTaxpayerAmount of Credit AwardedTotal Credit Awarded
§ 48A
Christian County Generation, LLC
$417,000,000
Summit Texas Clean Energy, LLC
$313,436,000
Mississippi Power Company
$279,000,000
$1,009,436,000
Based on the results shown above,
the available credit amount for 2010–11
allocation round under the Phase II ad-
vanced coal program is $240,564,000, out
of which $103,564,000 is available for
advanced coal projects that use sub-bitu-
minous coal as a primary feedstock, and
$138,000,000 is available for advanced
coal projects that use lignite as a primary
feedstock. No credit amount is avail-
able for advanced coal projects that use
bituminous coal as a primary feedstock.
The allocation round for 2010–11 will
be conducted in the manner and under
the procedures as provided under Notice
2009–24. Under the notice, the application
period for the 2010–11 allocation round
begins on March 2, 2010, and ends on
March 1, 2011, and the applications must
be submitted to the Department of Energy
(DOE) on or before October 31, 2010, and
to the Service on or before March 2, 2011.
QUALIFYING GASIFICATION
PROJECT PROGRAM
Section 48B provides that the qualify-
ing gasification project credit for a tax-
able year is an amount equal to (1) 20 per-
cent of the qualified investment (as de-
fined in § 48B(b)) for that taxable year
in qualifying gasification projects (as de-
fined in § 48B(c)(1)) for which the credit
is allocated under § 48B(d)(1)(A), and (2)
30 percent of the qualified investment for
that taxable year in qualifying gasification
projects for which the credit is allocated
under § 48B(d)(1)(B).
On April 20, 2009, the Service issued
Notice 2009–23, 2009–16 I.R.B. 802,
to announce an allocation round for the
qualifying gasification project program
described in § 48B(d)(1)(B) (“the Phase II
gasification program”). The Service will
certify $250 million of credits to qualify-
ing projects under the Phase II gasification
program.
Section 48B(d)(5) provides that the
Secretary shall, upon making a certifica-
tion under § 48B(d), publicly disclose the
identity of the applicant and the amount
of the credit certified with respect to such
applicant.
Section 10.01 of Notice 2009–23 pro-
vides that the Service intends to publish the
results of the allocation process, and dis-
close the following return information in
the event a qualifying gasification project
credit under § 48B is allocated to the tax-
payer’s project: (a) the name of the tax-
payer and (b) the amount of the qualifying
gasification project credit allocated to the
project.
Accordingly, the results of the 2009–10
allocation round under the Phase II gasifi-
cation program are as follows:
2010–39 I.R.B.398September 27, 2010

ProgramTaxpayerAmount of Credit AwardedTotal Credit Awarded
§ 48BFaustina Hydrogen Products
$121,660,000
Lake Charles Gasification, LLC
$128,340,000
$250,000,000
Because the total credit amount of $250
million was allocated, the Service will not
conduct an allocation round in 2010–11
under the Phase II gasification program.
DRAFTING INFORMATION
The principal author of this announce-
ment is Jennifer C. Bernardini of the Office
of Associate Chief Counsel (Passthroughs
& Special Industries). For further informa-
tion regarding this announcement, contact
Jennifer C. Bernardini at (202) 622–3110
(not a toll-free call).
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code; Correction
Announcement 2010–59
This document contains a correction
to Notice 2009–80, 2009–51 I.R.B. 859,
which contained an incorrect name. The
taxpayer name incorrectly read: “Thorek
Hospital & Medical Center in Chicago,
IL”.
The taxpayer name should have read:
“Thorek Hospital & Medical Center Self
Insurance Trust Fund in Chicago, IL”.
FOR FURTHER INFORMATION
CONTACT:
Flora McClain
1100 Commerce Street
MS 4920DAL
Dallas, TX 75242
214–413–5462
September 27, 20103992010–39 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
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—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2010–39 I.R.B.iSeptember 27, 2010

Numerical Finding List
1
Bulletins 2010–27 through 2010–39
Announcements:
2010-43, 2010-27 I.R.B.42
2010-44, 2010-28 I.R.B.54
2010-45, 2010-29 I.R.B.87
2010-46, 2010-29 I.R.B.87
2010-47, 2010-30 I.R.B.173
2010-48, 2010-32 I.R.B.234
2010-49, 2010-34 I.R.B.272
2010-50, 2010-33 I.R.B.260
2010-51, 2010-33 I.R.B.261
2010-52, 2010-36 I.R.B.315
2010-53, 2010-36 I.R.B.323
2010-54, 2010-38 I.R.B.386
2010-55, 2010-37 I.R.B.346
2010-56, 2010-39 I.R.B.398
2010-57, 2010-38 I.R.B.386
2010-58, 2010-38 I.R.B.387
2010-59, 2010-39 I.R.B.399
Notices:
2010-48, 2010-27 I.R.B.9
2010-49, 2010-27 I.R.B.10
2010-50, 2010-27 I.R.B.12
2010-51, 2010-29 I.R.B.83
2010-52, 2010-30 I.R.B.88
2010-53, 2010-31 I.R.B.182
2010-55, 2010-33 I.R.B.253
2010-56, 2010-33 I.R.B.254
2010-57, 2010-34 I.R.B.267
2010-58, 2010-37 I.R.B.326
2010-59, 2010-39 I.R.B.396
2010-60, 2010-37 I.R.B.329
Proposed Regulations:
REG-139343-08, 2010-33 I.R.B.256
REG-151605-09, 2010-31 I.R.B.184
REG-112841-10, 2010-27 I.R.B.41
REG-118412-10, 2010-29 I.R.B.85
REG-120391-10, 2010-35 I.R.B.310
REG-120399-10, 2010-32 I.R.B.239
Revenue Procedures:
2010-25, 2010-27 I.R.B.16
2010-26, 2010-30 I.R.B.91
2010-27, 2010-31 I.R.B.183
2010-28, 2010-34 I.R.B.270
2010-29, 2010-35 I.R.B.309
2010-30, 2010-36 I.R.B.316
2010-32, 2010-36 I.R.B.320
2010-33, 2010-38 I.R.B.347
Revenue Rulings:
2010-18, 2010-27 I.R.B.1
2010-19, 2010-31 I.R.B.174
2010-20, 2010-36 I.R.B.312
2010-21, 2010-39 I.R.B.388
2010-22, 2010-39 I.R.B.388
2010-23, 2010-39 I.R.B.388
Tax Conventions:
2010-48, 2010-32 I.R.B.234
2010-52, 2010-36 I.R.B.315
Treasury Decisions:
9486, 2010-27 I.R.B.3
9487, 2010-28 I.R.B.48
9488, 2010-28 I.R.B.51
9489, 2010-29 I.R.B.55
9490, 2010-31 I.R.B.176
9491, 2010-32 I.R.B.186
9492, 2010-33 I.R.B.242
9493, 2010-35 I.R.B.273
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2010–1 through 2010–26 is in Internal Revenue Bulletin
2010–26, dated June 28, 2010.
September 27, 2010ii2010–39 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2010–27 through 2010–39
Notices:
96-53
Modified by
Notice 2010-59, 2010-39 I.R.B.396
2003-19
Revoked by
Notice 2010-53, 2010-31 I.R.B.182
2004-2
Modified by
Notice 2010-59, 2010-39 I.R.B.396
2004-50
Modified by
Notice 2010-59, 2010-39 I.R.B.396
2006-69
Amplified by
Notice 2010-59, 2010-39 I.R.B.396
2008-51
Modified by
Notice 2010-59, 2010-39 I.R.B.396
2008-52
Modified by
Notice 2010-59, 2010-39 I.R.B.396
2009-47
Obsoleted by
Rev. Proc. 2010-28, 2010-34 I.R.B.270
2009-80
Corrected by
Ann. 2010-59, 2010-39 I.R.B.399
Revenue Procedures:
81-18
Obsoleted by
Rev. Proc. 2010-27, 2010-31 I.R.B.183
2007-44
Modified by
Notice 2010-48, 2010-27 I.R.B.9
2009-18
Obsoleted in part by
Rev. Proc. 2010-25, 2010-27 I.R.B.16
2009-30
Superseded by
Rev. Proc. 2010-26, 2010-30 I.R.B.91
2009-35
Superseded by
Rev. Proc. 2010-33, 2010-38 I.R.B.347
Revenue Rulings:
2003-102
Obsoleted by
Rev. Rul. 2010-23, 2010-39 I.R.B.388
Treasury Decisions:
9487
Corrected by
Ann. 2010-50, 2010-33 I.R.B.260
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–1 through 2010–26 is in Internal Revenue Bulletin 2010–26, dated June 28, 2010.
2010–39 I.R.B.iiiSeptember 27, 2010

INDEX
Internal Revenue Bulletins 2010–27 through
2010–39
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Disaster relief, qualified plans (Notice 48) 27,9
Excise taxes on prohibited tax shelter transactions and related
provisions (TD 9492) 33,242
Full funding, weighted average interest rates, segment rates for:
July 2010 (Notice 52) 30,88
August 2010 (Notice 57) 34,267
Proposed Regulations:
26 CFR 54.9815–1251, added; rules relating to status as
grandfathered health plans for group health plans and
health insurance coverage (REG–118412–10) 29,85
26 CFR 54.9815–2704, –2711, –2712, –2719A, added; re-
quirements for group healthplans and health insurance
issuers under the Patient Protection and Affordable Care
Act relating to preexisting condition exclusions, lifetime
and annual limits, rescissions, and patient protections
(REG–120399–10) 32,239
26 CFR 54.9815–2713, added; rules relating to coverage of
preventive health services (REG–120391–10) 35,310
Qualified plans:
Alternative amortization schedules for single-employer plans
under PRA 2010 (Notice 55) 33,253
Special funding rules for multiemployer plans under PRA
2010 (Notice 56) 33,254
Regulations:
26 CFR 1.6033–5, added; 1.6033–5T, removed; 53.4965–1
thru –9, added; 53.6071–1, revised; 53.6071–1T(g) &
(h), removed; 54.6011–1, revised; 54.6011–1T(c) & (d),
removed; 301.6011(g)–1, added; 301.6033–5, added;
301.6033–5T, removed; 602.101, amended; excise taxes
on prohibited tax shelter transactions and related disclo-
sure requirements, disclosure requirements with respect to
EMPLOYEE PLANS—Cont.
prohibited tax shelter transactions, requirement of return
and time for filing (TD 9492) 33,242
26 CFR 54.9801–2, –3, amended; 54.9815–2704T, –2711T,
–2712T, added; –2719AT, added; 602.101(b), amended;
requirements for group healthplans and health insurance
issuers under the Patient Protection and Affordable Care
Act relating to preexisting condition exclusions, lifetime
and annual limits, rescissions, and patient protections (TD
9491) 32,186
26 CFR 54.9815–1251T, added; rules relating to status as
grandfathered health plans for group health plans and health
insurance coverage (TD 9489) 29,55
26 CFR 54.9815–2713T, added; rules relating to coverage of
preventive health services (TD 9493) 35,273
Revocation of Notice 2003-19 (Notice 53) 31,182
Rules relating to coverage of preventive health services (TD
9493) 35,273; (REG–120391–10) 35,310
Rules relating to preexisting condition exclusions, lifetime and
annual limits, rescissions, and patient protections (TD 9491)
32,186; (REG–120399–10) 32,239
Rules relating to status as grandfathered health plans for group
health plans and health insurance coverage (TD 9489) 29,55;
(REG–118412–10) 29,85
EMPLOYMENT TAX
Examination of returns and claims for refund, credit or abate-
ment, determination of correct tax liability (RP 27) 31,183
Revocation of Notice 2003-19 (Notice 53) 31,182
ESTATE TAX
Revocation of Notice 2003-19 (Notice 53) 31,182
EXCISE TAX
Examination of returns and claims for refund, credit or abate-
ment, determination of correct tax liability (RP 27) 31,183
Excise taxes on prohibited tax shelter transactions and related
provisions (TD 9492) 33,242
Guidance on section 5000B, indoor tanning services excise tax
(TD 9486) 27,3; (REG–112841–10) 27,41
Proposed Regulations:
26 CFR 40.0–1, amended; 40.6302(c)–1, amended; 49.0–3,
added; 49.5000B–1, added; indoor tanning services excise
tax (REG–112841–10) 27,41
26 CFR 54.9815–1251, added; rules relating to status as
grandfathered health plans for group health plans and
health insurance coverage (REG–118412–10) 29,85
26 CFR 54.9815–2704, –2711, –2712, –2719A, added; re-
quirements for group health plans and health insurance
issuers under the Patient Protection and Affordable Care
Act relating to preexisting condition exclusions, lifetime
and annual limits, rescissions, and patient protections
(REG–120399–10) 32,239
September 27, 2010iv2010–39 I.R.B.

EXCISE TAX—Cont.
26 CFR 54.9815–2713, added; rules relating to coverage of
preventive health services (REG–120391–10) 35,310
Regulations:
26 CFR 1.6033–5, added; 1.6033–5T, removed; 53.4965–1
thru –9, added 53.6071–1, revised; 53.6071–1T(g) &
(h), removed; 54.6011–1, revised; 54.6011–1T(c) & (d),
removed; 301.6011(g)–1, added; 301.6033–5, added;
301.6033–5T, removed; 602.101, amended; excise taxes
on prohibited tax shelter transactions and related disclo-
sure requirements, disclosure requirements with respect to
prohibited tax shelter transactions, requirement of return
and time for filing (TD 9492) 33,242
26 CFR 40.0–1, amended; 40.0–1T, added; 40.6302(c)–1,
amended; 40.6302(c)–1T, added; 49.0–3T, added;
49.5000B–1T, added; 602.101, amended; indoor tanning
services excise tax (TD 9486) 27,3
26 CFR 54.9801–2, –3, amended; 54.9815–2704T, –2711T,
–2712T, –2719AT, added; 602.101(b) amended; require-
ments for group health plans and health insurance issuers
under the Patient Protection and Affordable Care Act relat-
ing to preexisting condition exclusions, lifetime and annual
limits, rescissions, and patient protections (TD 9491) 32,
186
26 CFR 54.9815–1251T, added; rules relating to status as
grandfathered healthplans for group health plans and health
insurance coverage (TD 9489) 29,55
26 CFR 54.9815–2713T, added; rules relating to coverage of
preventive health services (TD 9493) 35,273
Revocation of Notice 2003-19 (Notice 53) 31,182
Rules relating to coverage of preventive health services (TD
9493) 35,273; (REG–120391–10) 35,310
Rules relating to preexisting condition exclusions, lifetime and
annual limits, rescissions, and patient protections (TD 9491)
32,186; (REG–120399–10) 32,239
Rules relating to status as grandfathered health plans for group
health plans and health insurance coverage (TD 9489) 29,55;
(REG–118412–10) 29,85
EXEMPT ORGANIZATIONS
Excise taxes on prohibited tax shelter transactions and related
provisions (TD 9492) 33,242
Regulations:
26 CFR 1.6033–5, added; 1.6033–5T, removed; 53.4965–1
thru –9, added 53.6071–1, revised; 53.6071–1T(g) &
(h), removed; 54.6011–1, revised; 54.6011–1T(c) & (d),
removed; 301.6011(g)–1, added; 301.6033–5, added;
301.6033–5T, removed; 602.101, amended; excise taxes
on prohibited tax shelter transactions and related disclo-
sure requirements, disclosure requirements with respect to
prohibited tax shelter transactions, requirement of return
and time for filing (TD 9492) 33,242
Revocation of Notice 2003-19 (Notice 53) 31,182
Revocations (Ann 44) 28,54;(Ann45)29,87; (Ann 47) 30,173;
(Ann 49) 34,272; (Ann 55) 37,346; (Ann 57) 38,386
INCOME TAX
Bonds, application by cooperative electrical companies to issue
clean renewable energy bonds (Ann 54) 38,386
Corporations, section 382 treatment of prepaid income under
built-in gain provisions of section 382(h) (TD 9487) 28,48;
corrections (Ann 50) 33,260
Declaratory Judgment Suits (Ann 46) 29,87
Disciplinary actionsinvolving attorneys,certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 43) 27,42;
(Ann 51) 33,261; (Ann 53) 36,323
Examination of returns and claims for refund, credit or abate-
ment, determination of correct tax liability (RP 27) 31,183
Extended carryback of losses to or from a consolidated group
(TD 9490) 31,176; (REG–151605–09) 31,184
Foreign eligible entities, Section 301.9100 relief (RP 32) 36,320
Forms:
1042-S, Foreign Persons’s U.S. Source Income Subject to
Withholding, specifications for filing electronically (RP 33)
38,347
1097, 1098, 1099, 3921, 3922, 5498, 8935, and W-2G, re-
quirements for filing electronically, 2010 revision (RP 26)
30,91
Guidance and request for comments regarding implementation
of new chapter 4 of the Code (Notice 60) 37,329
Information reporting under the amendments to section 6041 for
gross proceeds paid and for payments to corporations (Notice
51) 29,83
Insurance companies:
Effectively connected income, insurance (RP 29) 35,309
Safe harbor under sections 7702 and 7702A for contracts with
a maturity date of 100, life insurance (RP 28) 34,270
Interest:
Investment:
Federal short-term, mid-term, and long-term rates for:
July 2010 (RR 18) 27,1
August 2010 (RR 19) 31,174
September 2010 (RR 20) 36,312
Underpayment and overpayments, quarter beginning:
October 1, 2010 (RR 21) 39,388
Interest and penalty suspension provisions under section 6404(g)
of the Code (TD 9488) 28,51
Net operating losses (Notice 58) 37,326
Over-the-counter drugs:
Amounts received under accident and health plans ((RR 23)
39,388
Revised definition of medical expense under section 106(f)
(Notice 59) 39,396
Proposed Regulations:
26 CFR 1.1502–21, revised; extended carryback of losses to
or from a consolidated group (REG–151605–09) 31,184
26 CFR 300.0 thru 300.8, amended; 300.9, added; user fees
relating to enrollment and preparer tax identification num-
ber (REG–139343–08) 33,256
Publications:
1187, Specifications for Filing Forms 1042-S, Foreign Per-
son’s U.S. Source Income Subject to Withholding, Elec-
tronically, revised (RP 33) 38,347
2010–39 I.R.B.vSeptember 27, 2010

INCOME TAX—Cont.
1220, Specifications for Filing Forms 1097, 1098, 1099, 3921,
3922, 5498, 8935, and W-2G Electronically, 2010 revision
(RP 26) 30,91
Qualified mortgage bonds (QMBs) and mortgage credit certifi-
cate (MCCs), average area housing purchase price for 2010
(RP 25) 27,16
Qualifying advanced coal project program, qualifying gasifica-
tion project program (Ann 56) 39,398
Regulations:
26 CFR 1.382–1, amended; 1.382–1T, added; 1.382–7, added;
1.382–7T, removed; built-in gains and losses under section
382(h) (TD 9487) 28,48; 1.382–2T, amended, correction
(Ann 50) 33,260
26 CFR 1.1502–21, amended; 1.1502–2T, revised; 602.101,
revised; extended carryback of losses to or from a consoli-
dated group (TD 9490) 31,176
26 CFR 301.6404–0, –4, added; 301.6404–4T, removed;
interest and penalty suspension provisions under section
6404(g) of the Code (TD 9488) 28,51
Releases of liens on mortgage loans held by REMICs (RP 30)
36,316
Revocation of Notice 2003-19 (Notice 53) 31,182
Revocations, exempt organizations (Ann 44) 28,54;(Ann45)
29,87;(Ann47)30,173;(Ann49)34,272; (Ann 55) 37,346;
(Ann 57) 38,386
Section 382 limitation:
Fluctuation in value, ownership changes (Notice 50) 27,12
Ownership changes, small shareholders (Notice 49) 27,10
Standard Industry Fare Level (SIFL) formula (RR 22) 39,388
Tax Convention:
U.S. –Belgium, agreement with respect to fellowship pay-
ments made to researchers (Ann 52) 36,315
U.S. –Greenland reciprocal exemption agreement (Ann 48)
32,234
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September 27, 2010vi2010–39 I.R.B.

2010–39 I.R.B.September 27, 2010

September 27, 20102010–39 I.R.B.

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