Internal Revenue Bulletin 2011-34 (PDF rendition): IRS Announcements

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

Bulletin No. 201
1-34
August 22, 2011
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
Notice 2011–63, page 172.
This notice provides supplemental guidance on the determina-
tion of when state and local bonds (as defined in section 103(c)
of the Code) are considered "issued" for purposes of volume
cap limitations on private activity bonds under section 146 and
other bond volume caps under Federal law. Notice 2010-81
amended and supplemented.
Notice 2011–65, page 173.
This notice provides for the suspension of certain requirements
under section 42 of the Code for low-income housing credit
projects in order to provide emergency housing relief needed
as a result of the devastation caused by severe storms, torna-
does, straight-line winds, and flooding in Alabama beginning on
April 15, 2011.
EMPLOYEE PLANS
Notice 2011–67, page 174.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in August 2011;
the 24-month average segment rates; the funding transitional
segment rates applicable for August 2011; and the minimum
present value transitional rates for July 2011.
EXEMPT ORGANIZATIONS
Announcement 2011–45, page 178.
The IRS has revoked its determination that Bentley Foundation
of Sun City, CA; Dance Academy Stars of Marble Falls, TX; Help-
ing Hands Outreach of Victorville, CA; North American Housing
Counseling Community Development Corp., Inc., of Houston,
TX; Prevailer Community Development Corporation of Lufkin,
TX; Silverstein Family Foundation of Watertown, NY; The Sunny-
side Foundation, Inc., of Long Island City, NY; and Tradewinds
Foundation, Inc., of New Hartford, NY, qualify as organizations
described in sections 501(c)(3) and 170(c)(2) of the Code.
Announcement of Declaratory Judgment Proceedings Under Section 7428 begins on page 178.
Finding Lists begin on page ii.

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.
August 22, 20112011–34 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
State and Local Bonds:
Volume Cap and Timing of
Issuing Bonds
Notice 2011–63
SECTION 1. PURPOSE
This notice provides supplemental
guidance on the determination of when
State and local bonds (as defined in
§ 103(c) of the Internal Revenue Code (the
“Code”)) are considered “issued” for pur-
poses of volume cap limitations on private
activity bonds under § 146 and other bond
volume caps and limitations under Federal
law. This notice amends and supplements
Notice 2010–81.
SECTION 2. BACKGROUND
In Notice 2010–81, 2010–50 I.R.B. 825
(December 13, 2010), the Treasury De-
partment and the IRS provided guidance
regarding when State and local bonds (as
definedin§103(c))areconsideredissued
for purposes of various deadlines on issu-
ing bonds. Under the general rule set forth
in Notice 2010–81, a bond is treated as is-
sued on the “issue date” of the “bond” un-
der § 1.150–1(b) of the Income Tax Regu-
lations (as contrasted with the “issue date”
of the “issue” that includes the bond). This
analysis particularly affects certain financ-
ing structures, such as draw-down loans
and commercial paper, in which bonds of
the same issue are issued at different times.
Notice 2010–81 applies to various types
of deadlines on issuing bonds, including,
among others, volume caps on private ac-
tivity bonds under § 146 and other bond
volume caps under Federal law such as
national limitations for the amount and
timing of bonds issued as Qualified Zone
Academy Bonds or Qualified Gulf Oppor-
tunity Zone Bonds.
In general, § 146 imposes annual State
volume caps on private activity bonds and
allows issuers to “carry forward” unused
volume cap for use during a three-year car-
ryforward period after the calendar year in
which the original bond volume cap au-
thorization arose. Other volume caps on
bonds issued by State or local governments
may apply in a similar manner, subject
to different carryforward periods based on
statutory deadlines, depending on the par-
ticular program.
The Treasury Department and the IRS
have received comments that prior to No-
tice 2010–81, variousStates and issuers
treated a bond as issued on other than its
issue date as provided in Notice 2010–81,
creating concerns for the treatment of
draw-down loans and commercial paper
for purposes of allocation, use, and admin-
istration of volume caps on private activity
bonds under § 146.
SECTION 3. SCOPE AND
APPLICATION
01.Bond Issuance for Purposes of Vol-
ume Cap Allocations. Solely for purposes
of the private activity bond volume cap un-
der § 146 and other bond volume caps on
State and local bonds under Federal law,
an issuer may treat a bond as issued either:
(1) on the issue date of the bond under the
general rule in Notice 2010–81 or (2) in
thealternative,ontheissuedateoftheis-
sue provided that the issuer meets the ad-
ditional requirements of this § 3.01. An
issuer that treats the bonds as issued on
the issue date of the issue may not retroac-
tively alter such treatment.
The issuer meets the additional require-
ments of this § 3.01 if the issuer issues
all of the bonds of the issue, determined
for this purpose by treating each bond of
theissueasissuedontheissuedateof
that bond under the general rule in Notice
2010–81, by no later than the earlier of: (i)
the statutory deadline for issuing the bonds
or (ii) the end of the maximum carryfor-
ward period for unused volume cap under
the applicable statute, treating all of the un-
used volume cap for the issue as volume
cap arising in the year in which the issue
date of the issue occurs.
02.Example.InYear 1, an issuer receives a $1
million volume cap allocation from state volume cap
that arose inYear 1under § 146 for a draw-down bond
issue of exempt facility bonds under § 142 and issues
$50,000 inYear 1. Thus the issue date of the issue
under § 1.150–1(c)(4)(i) occurs inYear 1.InYears 2
through 4, the issuer issues the $950,000 in remain-
ing bonds of the issue. Under the general rule in No-
tice 2010–81, $50,000 of the bonds would be treated
as issued inYear 1on the issue date of those bonds,
$50,000 of volume cap would be treated as used in
Year 1, the remaining $950,000 of the bonds would be
treated as issued upon funding of the draws inYears
2 through 4, respectively, and the issuer would use
carryforward volume cap (or obtain additional vol-
ume cap) to cover those remaining bonds. Under the
alternative option, for volume cap purposes, if the is-
suer inYear 1treated all of the $1 million in bonds as
issued on the issue date of the issue, the entire $1 mil-
lion of bonds of the issue is treated as issued on the
issue date of the issue and the entire $1 million of vol-
ume cap is treated as used inYear 1. If the $1 million
in volume cap inYear 1were a carryforward volume
cap, the issuer would have three years fromYear 1to
use the carryforward because the alternative option
in § 3.01 would treat the amount of the carryforward
as volume cap arising inYear 1(the year in which
theissuedateoftheissueoccurs).Ifthebondswere
small issue bonds under § 144(a), the alternative op-
tion would not be available because under § 146 there
is no carryforward period for unused volume cap for
small issue bonds.
.03.Information Reporting. Section
1.149(e)–1(e)(2)(ii) of the Income Tax
Regulations provides guidance on appli-
cable information reporting requirements
under § 149(e) for State and local bonds
issued as draw-down bonds and commer-
cial paper. For such information reporting
purposes, in the case of issues issued after
August 3, 2011, issuers who apply the
alternative option under § 3.01 of this
notice should write or type “Filed in Ac-
cordance with Notice 2011–63 State and
Local Bonds: Volume Cap and Timing of
Issuing Bonds” at the top of the applicable
information reporting return. Pursuant to
§1.149(e)–1(e)(2)(ii), amended informa-
tion reporting returns are not required for
this purpose for bonds treated as issued
under this notice before August 3, 2011.
SECTION 4. EFFECT ON OTHER
DOCUMENTS
This notice amends and supplements
Notice 2010–81.
SECTION 5. DRAFTING
INFORMATION
The principal authors of this notice
are Vicky Tsilas and Timothy L. Jones
of the Office of Associate Chief Counsel
(Financial Institutions & Products). For
further information regarding this notice,
contact Vicky Tsilas at (202) 622–3980
(not a toll-free call).
2011–34 I.R.B.172August 22, 2011

Alabama Low-Income Housing
Credit Disaster Relief
Notice 2011–65
The Internal Revenue Service is sus-
pending certain requirements under § 42 of
the Internal Revenue Code for low-income
housing credit projects to provide emer-
gency housing relief needed as a result of
the devastation caused by severe storms,
tornadoes, straight-line winds, and flood-
ing in Alabama beginning on April 15,
2011. This relief is being granted pursuant
to the Service’s authority under § 42(n) and
§ 1.42–13(a) of the Income Tax Regula-
tions.
BACKGROUND
On April 28, 2011, the President de-
clared a major disaster for the State of
Alabama. This declaration was made un-
der the Robert T. Stafford Disaster Relief
and Emergency Assistance Act, 42 U.S.C.
5121et seq. Subsequently, the Federal
Emergency Management Agency (FEMA)
designated jurisdictions for Individual
Assistance. The State of Alabama has
requested that the Service allow owners
of low-income housingcredit projects to
provide temporary housing in vacant units
to individuals who resided in jurisdictions
designated for Individual Assistance in
Alabama and who have been displaced
because their residences were destroyed
or damaged as a result of the devastation
caused by the severe storms, tornadoes,
straight-line winds, and flooding. Based
upon this request and because of the
widespread damage to housing caused by
the severe storms, tornadoes, straight-line
winds, and flooding, the Service has
determined that the Alabama Housing
Finance Authority (Authority) may
provide approval to project owners to
provide temporary emergency housing for
displaced individuals in accordance with
this notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income projects.
The suspension will apply to low-income
housing projects approved by the Author-
ity, in which vacant units are rented to dis-
placed individuals. The Authority will de-
termine the appropriate period of tempo-
rary housing for each project, not to extend
beyond August 31, 2012 (temporary hous-
ing period).
II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and
for meeting the project’s 20–50 test or
40–60 test as elected by the project owner
under § 42(g)(1). After the end of the
temporary housing period established
by the Authority (not to extend beyond
August 31, 2012), a displaced individual
will no longer be deemed a qualified
low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Authority, the status of a
vacant unit (that is, market-rate or low-in-
come for purposes of § 42 or never previ-
ously occupied) after the first year of the
credit period that becomes temporarily oc-
cupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this no-
tice will continue to be treated as a va-
cant low-income or market rate unit. Sim-
ilarly, a unit that was never previously oc-
cupied before the effective date of this no-
tice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable frac-
tion under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60
test of § 42(g)(1). If the income of oc-
cupants in low-income units exceeds 140
percent of the applicable income limita-
tion, the temporary occupancy of a unit by
a displaced individual will not cause ap-
plication of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary
housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Author-
ity in accordance with section I of this
notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Authority. After the end of the
temporary housing period, the appli-
cable income limitations contained in
§ 42(g)(1), the available unit rule un-
der § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
to rent vacant units to low-income individ-
uals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the re-
lief in this notice, the project owner must
additionally meet all of the following re-
quirements:
(1) Major Disaster Area
The displaced individual must have
residedinanAlabamajurisdiction desig-
nated for Individual Assistance by FEMA
as a result of severe storms, tornadoes,
straight-line winds, and flooding in Al-
abama beginning on April 15, 2011.
August 22, 20111732011–34 I.R.B.

(2) Approval of the Alabama Housing
Finance Authority
The project owner must obtain approval
from the Authority for the relief described
in this notice. The Authority will deter-
mine the appropriate period of temporary
housing for each project, not to extend be-
yond August 31, 2012.
(3) Certificationsand Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required to
maintain and certify certain information
concerning each displaced individual tem-
porarily housed in the project, specifically
the following: name, address of damaged
residence, social security number, and a
statement signed under penalties of perjury
by the displaced individual that, because of
damage to the individual’s residence in an
Alabama jurisdiction designated for Indi-
vidual Assistance by FEMA as a result of
the severe storms, tornadoes, straight-line
winds, and flooding in Alabama beginning
on April 15, 2011, the individual requires
temporary housing. The owner must no-
tify the Authority that vacant units are
available for rent to displaced individuals.
The owner must also certify the date the
displaced individual began temporary oc-
cupancy and the date the project will dis-
continue providing temporary housing as
established by the Authority. The certi-
fications and recordkeeping for displaced
individuals must be maintained as part of
the annual compliance monitoring process
with the Authority.
(4) Rent Restrictions
Rents for the low-income units that
house displaced individuals must not ex-
ceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).
(5) Protection of Existing Tenants
Existing tenants in occupied low-in-
come units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
EFFECTIVE DATE
This notice is effective April 28, 2011
(the date of the President’s major disaster
declaration as a result of the severe storms,
tornadoes, straight-line winds, and flood-
ing in Alabama beginning on April 15,
2011).
PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2216.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this
notice is in the section titled “OTHER
REQUIREMENTS” under “(3) Certi-
fications and Recordkeeping.” This in-
formation is required to enable the Ser-
vice to verify whether individuals are
displaced as a result of the devasta-
tion caused by severe storms, tornadoes,
straight-line winds, and flooding in Al-
abama beginning on April 15, 2011,
and thus warrant temporary housing in
vacant low-income housing units. The
collection of information is required to
obtain a benefit. The likely respondents
are individuals and businesses.
The estimated total annual recordkeep-
ing burden is 150 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
600.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this notice is
David Selig of the Office of Associate
Chief Counsel (Passthroughs & Special
Industries). For further information
regarding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll-free call).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2011–67
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under §412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the cor-
porate bond monthly yield curve (and
the corresponding spot segment rates),
and the 24-month average segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i), as amended by the Pen-
sion Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to cal-
culate current liability and to determine
the required contribution under § 412(l)
for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conser-
vatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
2011–34 I.R.B.174August 22, 2011

apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
July 2011 is 5.36 percent. Pursuant to No-
tice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond in-
dices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
August2011
5.945.355.94
YIELD CURVE AND SEGMENT
RATES
Generally for plan years beginning
after 2007 (except for delayed effective
dates for certain plans under sections 104,
105, and 106 of PPA), § 430 of the Code
specifies the minimum funding require-
ments that apply to single employer plans
pursuant to § 412. Section 430(h)(2) spec-
ifies the interest rates that must be used
to determine a plan’s target normal cost
and funding target. Under this provision,
present value is generally determined us-
ing three 24-month average interest rates
(“segment rates”), each of which applies
to cash flows during specified periods.
However, an election may be made under
§ 430(h)(2)(D)(ii) to use the monthly yield
curve in place of the segment rates. Sec-
tion 430(h)(2)G) set forth a transitional
rule applicable to plan years beginning in
2008 and 2009 under which the segment
rates were blended with the corporate bond
weighted average described above, includ-
ing an election under § 430(h)(2)(G)(iv)
foranemployertousethesegmentrates
without the transitional rule.
Notice 2007–81, 2007–44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the tar-
get normal cost and the funding target.
Pursuant to Notice 2007–81, the monthly
corporate bond yield curve derived from
July 2011 data is in Table I at the end of
this notice. The spot first, second, and
third segment rates for the month of July
2011 are, respectively, 1.72, 4.97, and
6.28. The three 24-month average cor-
porate bond segment rates applicable for
August 2011 are as follows:
First
Segment
Second
Segment
Third
Segment
2.11
5.31
6.32
The transitional rule of § 430(h)(2)(G)
does not apply to plan years beginning af-
ter December 31, 2009. Therefore, for a
plan year beginning after 2009 with a look-
back month to August 2011, the funding
segment rates are the three 24-month aver-
age corporate bond segment rates applica-
ble for August 2011, listed above without
blending for any transitional period.
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
bleinterestrateforamonthistheannual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Trea-
sury securities for July 2011 is 4.27 per-
cent. The Service has determined this rate
as the average of the daily determinations
of yield on the 30-year Treasury bond ma-
turing in May 2041.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B) specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est rate used to calculate current liability
for this purpose must be no more than 5
percent above and no more than 10 percent
below the weighted average of the rates of
interest on 30-year Treasury securities dur-
ing the four-year period ending on the last
day before the beginning of the plan year.
Notice 88–73, 1988–2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The following rates
were determined for plan years beginning
in the month shown below.
August 22, 20111752011–34 I.R.B.

For Plan Years
Beginning inPermissible Ran
ge
MonthYear
30-Year
Treasury
Weighted
Average
90%to
105%
August20114.263.834.47
MINIMUM PRESENT
VALUE
SEGMENT RATES
Generally for p
lan years beginning af-
ter December 31
, 2007, the applicable in-
terest rates u
nder § 417(e)(3)(D) are seg-
ment rates com
puted without regard to a
24-month averag
e. For plan years begin-
ning in 2008 thr
ough 2011, the applica-
ble interest ra
tes are the monthly spot seg-
ment rates blen
ded with the applicable rate
under § 417(e)(
3)(A)(ii)(II) as in effect
for plan years
beginning in 2007. Notice
2007–81 provi
des guidelines for determin-
ing the minimum p
resent value segment
rates. Pursuan
t to that notice, the min-
imum present va
lue transitional segment
rates determin
ed for July 2011, taking into
account the Jul
y 2011 30-year Treasury
rate of 4.27 st
ated above, are as follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20102.744.69
5.48
20112.234.83
5.88
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities
Division. Mr. Montanaro may be e-mailed
atRetirementPlanQuestions@irs.gov.
2011–34 I.R.B.176August 22, 2011

Table I
Monthly Yield Curve for July 2011
Derived from July 2011 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.50.5420.55.8440.5
6.34
60.56.5180.5
6.60
1.00.7421.0
5.86
41.06.3461.0
6.51
81.06.60
1.5
0.96
21.55.8841.56.3561.56.5281.56.60
2.01.2222.05.9042.06.3662.0
6.52
82.06.60
2.51.5122.5
5.93
42.5
6.36
62.56.5282.5
6.60
3.01.8323.05.9543.06.3763.0
6.52
83.06.60
3.52.1523.5
5.96
43.5
6.37
63.56.5383.5
6.61
4.02.4624.05.9844.06.3864.0
6.53
84.06.61
4.52.7524.56.0044.56.3864.56.5384.56.61
5.0
3.02
25.0
6.02
45.0
6.39
65.06.5385.0
6.61
5.5
3.26
25.5
6.03
45.5
6.40
65.56.5485.5
6.61
6.0
3.49
26.0
6.05
46.06.4066.0
6.54
86.06.61
6.5
3.70
26.5
6.06
46.5
6.41
66.56.5486.5
6.61
7.03.8827.06.0847.06.4167.0
6.54
87.06.62
7.54.0527.5
6.09
47.56.4167.56.5587.56.62
8.04.2128.06.1148.06.4268.0
6.55
88.06.62
8.54.3528.5
6.12
48.5
6.42
68.56.5588.5
6.62
9.04.4929.0
6.13
49.0
6.43
69.0
6.55
89.0
6.62
9.54.6129.56.1449.56.4369.5
6.56
89.56.62
10.04.7230.06.16
50.0
6.4470.0
6.56
90.0
6.62
10.54.8230.56.1750.56.4470.56.5690.56.63
11.04.9231.06.18
51.06.45
71.0
6.56
91.06.63
11.55.0131.5
6.19
51.56.45 71.56.56
91.56.63
12.05.0932.06.20
52.06.45
72.0
6.57
92.0
6.63
12.55.1632.5
6.21
52.5
6.46
72.56.57
92.56.63
13.0
5.23
33.06.22
53.0
6.4673.0
6.57
93.0
6.63
13.55.2933.56.2353.56.4673.56.5793.56.63
14.0
5.35
34.06.24
54.0
6.4774.0
6.57
94.06.63
14.55.4134.56.2554.5
6.47
74.56.58
94.56.64
15.05.4635.0
6.26
55.0
6.48
75.06.58
95.06.64
15.55.5035.5
6.27
55.5
6.48
75.56.58
95.56.64
16.0
5.55
36.06.27
56.0
6.4876.0
6.58
96.0
6.64
16.55.5936.56.2856.5
6.49
76.56.5896.56.64
17.0
5.63
37.06.29
57.0
6.4977.0
6.58
97.06.64
17.55.6637.5
6.30
57.5
6.49
77.5
6.5997.56.64
18.05.6938.06.30
58.06.50
78.06.59
98.0
6.64
18.55.7338.5
6.31
58.56.5078.5
6.5998.56.64
19.0
5.76
39.0
6.3259.0
6.50
79.0
6.59
99.0
6.65
19.55.7839.56.3359.56.5079.56.5999.56.65
20.0
5.81
40.06.3360.0
6.51
80.06.59100.0
6.65
August 22, 20111772011–34 I.R.B.

Part IV. Items o
fGeneralInterest
Deletions Fro
m Cumulative
List of Organi
zations
Contribution
stoWhich
are Deductib
le Under Section
170 of the Cod
e
Announceme
nt 2011–45
The Interna
l Revenue Service has re-
voked its de
termination that the organi-
zations lis
ted below qualify as organiza-
tions descr
ibed in sections 501(c)(3) and
170(c)(2) o
f the Internal Revenue Code of
1986.
Generally
, the Service will not disallow
deduction
s for contributions made to a
listed org
anization on or before the date
of announc
ement in the Internal Revenue
Bulletin t
hat an organization no longer
qualifie
s. However, the Service is not
preclude
d from disallowing a deduction
for any co
ntributions made after an or-
ganizati
on ceases to qualify under section
170(c)(
2) if the organization has not timely
filed a s
uit for declaratory judgment under
section
7428 and if the contributor (1) had
knowled
ge of the revocation of the ruling
or deter
mination letter, (2) was aware that
such re
vocation was imminent, or (3) was
in part
responsible for or was aware of the
activi
ties or omissions of the organization
that br
ought about this revocation.
If on th
e other hand a suit for declara-
tory ju
dgment has been timely filed, con-
tribut
ions from individuals and organiza-
tions
describedinsection170(c)(2)that
are ot
herwise allowable will continue to
be ded
uctible. Protection under section
7428(
c) would begin on August 22, 2011
and wo
uld end on the date the court first
dete
rmines that the organization is not de-
scri
bed in section 170(c)(2) as more partic-
ular
ly set forth in section 7428(c)(1). For
indi
vidual contributors, the maximum de-
duct
ion protected is $1,000, with a hus-
ban
d and wife treated as one contributor.
This benefit i
s not extended to any indi-
vidual, in who
le or in part, for the acts or
omissions of t
he organization that were the
basis for revo
cation.
Bentley Foundation
Sun City, CA
Dance Academy Stars
Marble Falls, TX
Helping Hands Outreach
Victorville, CA
North American Housing Counseling
Community Development Corp., Inc.
Houston, TX
Prevailer Community Development
Corporation
Lufkin, TX
Silverstein Family Foundation
Watertown, NY
The Sunnyside Foundation, Inc.
Long Island City, NY
Tradewinds Foundation, Inc.
New Hartford, NY
Notice of Disposition of
Declaratory Judgment
Proceedings Under Section
7428
Announcement 2011–46
This announcement serves notice to
donors that on September 9, 2010, the
United States Tax Court entered a stipu-
lated decision that the organization listed
below is a private foundation described
in I.R.C. § 509(a). Accordingly, the or-
ganization continues to be recognized
as an organization described in section
501(c)(3) and exempt from tax under sec-
tion 501(a).
Fisherman’s Hospital
Marathon, FL
Section 7428(
c) Validation
of Certain Con
tributions
Made During Pe
ndency
of Declarato
ry Judgment
Proceedings
Announceme
nt 2011–47
This announ
cement serves notice to po-
tential don
ors that the organization listed
below has re
cently filed a timely declara-
tory judgme
nt suit under section 7428 of
the Code, ch
allenging revocation of its
status as a
n eligible donee under section
170(c)(2)
.
Protectio
n under section 7428(c) of the
Code begin
s on the date that the notice
of revocat
ionispublishedintheInternal
Revenue Bu
lletin and ends on the date
on which a
court first determines that an
organiza
tion is not described in section
170(c)(2
), as more particularly set forth in
section 7
428(c)(1).
In the cas
e of individual contributors,
the maxim
um amount of contributions
protect
ed during this period is limited to
$1,000.
00, with a husband and wife being
treated
as one contributor. This protection
is not ex
tended to any individual who was
respons
ible, in whole or in part, for the
acts or
omissions of the organizations that
were th
e basis for the revocation.
This pr
otection also applies (but with-
out lim
itation as to amount) to organiza-
tions d
escribed in section 170(c)(2) which
are exe
mpt from tax under section 501(a).
If the o
rganization ultimately prevails in its
decla
ratory judgment suit, deductibility of
contr
ibutions would be subject to the nor-
mal li
mitations set forth under section 170.
First
Step, Inc.
Manah
awkin, NJ
2011–34 I.R.B.178August 22, 2011

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.
August 22, 2011i2011–34 I.R.B.

Numerical Finding List
1
Bulletins 2011–27 through 2011–34
Announcements:
2011-37, 2011-27 I.R.B.37
2011-38, 2011-28 I.R.B.45
2011-39, 2011-28 I.R.B.46
2011-40, 2011-29 I.R.B.56
2011-41, 2011-28 I.R.B.47
2011-42, 2011-32 I.R.B.138
2011-44, 2011-33 I.R.B.164
2011-45, 2011-34 I.R.B.178
2011-46, 2011-34 I.R.B.178
2011-47, 2011-34 I.R.B.178
Notices:
2011-47, 2011-27 I.R.B.34
2011-50, 2011-27 I.R.B.35
2011-51, 2011-27 I.R.B.36
2011-52, 2011-30 I.R.B.60
2011-53, 2011-32 I.R.B.124
2011-54, 2011-29 I.R.B.53
2011-55, 2011-29 I.R.B.53
2011-56, 2011-29 I.R.B.54
2011-57, 2011-31 I.R.B.84
2011-58, 2011-31 I.R.B.85
2011-59, 2011-31 I.R.B.86
2011-60, 2011-31 I.R.B.90
2011-61, 2011-31 I.R.B.91
2011-62, 2011-32 I.R.B.126
2011-63, 2011-34 I.R.B.172
2011-65, 2011-34 I.R.B.173
2011-67, 2011-34 I.R.B.174
2011-70, 2011-32 I.R.B.135
Proposed Regulations:
REG-137128-08, 2011-28 I.R.B.43
REG-125592-10, 2011-32 I.R.B.137
REG-101352-11, 2011-30 I.R.B.75
REG-118809-11, 2011-33 I.R.B.162
Revenue Procedures:
2011-38, 2011-30 I.R.B.66
2011-39, 2011-30 I.R.B.68
Revenue Rulings:
2011-14, 2011-27 I.R.B.31
2011-15, 2011-30 I.R.B.57
2011-16, 2011-32 I.R.B.93
2011-17, 2011-33 I.R.B.160
Treasury Decisions:
9527, 2011-27 I.R.B.1
9528, 2011-28 I.R.B.38
9529, 2011-30 I.R.B.57
Treasury Decisions— Continued:
9530, 2011-31 I.R.B.77
9531, 2011-31 I.R.B.79
9532, 2011-32 I.R.B.95
9533, 2011-33 I.R.B.139
9534, 2011-33 I.R.B.144
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011–1 through 2011–26 is in Internal Revenue Bulletin
2011–26, dated June 27, 2011.
2011–34 I.R.B.iiAugust 22, 2011

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2011–27 through 2011–34
Notices:
2010-23
Modified and supplemented by
Notice 2011-54, 2011-29 I.R.B.53
2010-81
Amended and supplemented by
Notice 2011-63, 2011-34 I.R.B.172
2010-88
Modified by
Ann. 2011-40, 2011-29 I.R.B.56
Proposed Regulations:
REG-118761-09
Hearing scheduled by
Ann. 2011-38, 2011-28 I.R.B.45
Revenue Procedures:
2008-24
Modified and superseded by
Rev. Proc. 2011-38, 2011-30 I.R.B.66
2008-32
Superseded by
Rev. Proc. 2011-39, 2011-30 I.R.B.68
Revenue Rulings:
58-225
Obsoleted by
Rev. Rul. 2011-15, 2011-30 I.R.B.57
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011–1 through 2011–26 is in Internal Revenue Bulletin 2011–26, dated June 27, 2011.
August 22, 2011iii2011–34 I.R.B.

2011–34 I.R.B.August 22, 2011

August 22, 20112011–34 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superin-
tendent of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis andare notincluded as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly
Bulletin are notified when copies of the Cumulative Bulletin are available. Certain issues of Cumulative Bulletins are out of print
and are not available. Persons desiring available Cumulative Bulletins, which are listed on the reverse, may purchase them from the
Superintendent of Documents.
ACCESS THE INTERNAL REVENUE BULLETIN ON THE INTERNET
You may view the Internal Revenue Bulletin on the Internet at www.irs.gov. Select Businesses. Under Businesses Topics, select
More Topics. Then select Internal Revenue Bulletins.
INTERNAL REVENUE BULLETINS ON CD-ROM
Internal Revenue Bulletins are available annually as part ofPublication 1796 (Tax Products CD-ROM). The CD-ROM can be
purchased from National Technical Information Service (NTIS) on the Internet at www.irs.gov/cdorders (discount for online orders)
or by calling 1-877-233-6767. The first release is available in mid-December and the final release is available in late January.
HOW TO ORDER
Check the publications and/or subscription(s) desired on the reverse, complete the order blank, enclose the proper remittance,
detach entire page, and mail to the Superintendent of Documents, P.O. Box 979050, St. Louis, MO 63197–9000. Please allow two to
six weeks, plus mailing time, for delivery.
WE WELCOME COMMENTS ABOUT THE INTERNAL
REVENUE BULLETIN
If you have comments concerning the format or production of the Internal Revenue Bulletin or suggestions for improving it, we
would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov)
or write to the IRS Bulletin Unit, SE:W:CAR:MP:T:T:SP, Washington, DC 20224.
Internal Revenue Service
W
ashington,DC20224
Official Business
Penalty for Private Use, $300