Internal Revenue Bulletin 2011-21 (PDF rendition): IRS Revenue Procedures

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Bulletin No. 201
1-21
May 23, 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
REG–118761–09, page 803.
Proposed regulations under section 267 of the Code provide
guidance concerning the time for taking into account deferred
losses on the sale or exchange of property between members
of a controlled group.
EMPLOYEE PLANS
Notice 2011–41, page 798.
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 May 2011;
the 24-month average segment rates; the funding transitional
segment rates applicable for May 2011; and the minimum
present value transitional rates for April 2011.
EXCISE TAX
Notice 2011–36, page 792.
The notice contains a request for comments regarding the em-
ployer responsibility provisions in section 4980H of the Code.
Section 4980H, which was added to the Code by the Patient
Protection and Affordable Care Act, provides that an applica-
ble large employer (ALE) may be liable for an assessable pay-
ment if it fails to meet certain standards with respect to of-
fering coverage to its full-time employees and at least one of
its full-time employees is certified to the employer as having
enrolled in health insurance through a State Exchange with re-
spect to which an applicable premium tax credit or cost-sharing
reduction is allowed or paid. Comments must be submitted by
June 17, 2011.
ADMINISTRATIVE
Rev. Proc. 2011–30, page 802.
Nonshareholder contribution to capital under section
118(a).This procedure provides a safe harbor under section
118(a) of the Code for certain awards received by corporate
taxpayers under Department of Energy clean coal technology
programs.
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.
May 23, 20112011–21 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Request for Comments on
Shared Responsibility for
Employers Regarding Health
Coverage (Section 4980H)
Notice 2011–36
Many provisions of the Patient Protec-
tion and Affordable Care Act (Affordable
Care Act) that are designed to promote
expanded, affordable health coverage be-
come effective beginning in 2014. These
include provisions for shared respon-
sibility for employers regarding health
coverage, coverage to be offered by State
Exchanges, premium tax credits to as-
sist individuals in purchasing coverage
through State Exchanges, and related pro-
visions. As part of the process of planning
for implementation of these provisions,
the Department of the Treasury (Trea-
sury), the Department of Labor (DOL)
and the Department of Health and Human
Services (HHS) (collectively, the three
Departments) are working in concert to de-
velop regulations and other administrative
guidance that will respond to questions
and assist stakeholders with implementa-
tion.
I. PURPOSE
This request for comments is intended
to initiate and inform the process of devel-
oping regulatory guidance regarding the
shared employer responsibility provisions
in § 4980H of the Internal Revenue Code
(Code). Those provisions, which apply
for months beginning after December 31,
2013, refer to certain standards relating to
the offering of health coverage by employ-
ers to their full-time employees. Under
§ 4980H, an “applicable large employer”
that does not meet those standards may
be liable for an “assessable payment” if at
least one of its full-time employees is certi-
fied as having enrolled in health insurance
through a State Exchange with respect to
which a premium tax credit under § 36B
of the Code, a cost-sharing reduction under
§ 1402 of the Affordable Care Act, or an
advance payment of such credit or reduc-
tion under § 1412 of the Affordable Care
Act is allowed or paid.
This notice does not constitute guid-
ance. Instead, it describes potential ap-
proaches, which could be incorporated
in future proposed regulations, to certain
discrete issues under § 4980H, particularly
theissueofwhoisafull-timeemployee,
and invites comments on these approaches.
Treasury and the Internal Revenue Service
(IRS)intendtopublishsuchproposed
regulations both on the § 4980H issues
addressed in this notice and on a broader
set of issues under § 4980H. This notice
also invites comments on the interpreta-
tion of the 90-day limitation on waiting
periods for group health plans and health
insurance issuers offering group health
insurance coverage under § 2708 of the
Public Health Service (PHS) Act, and on
how the interpretations of that section and
of § 4980H should be coordinated. The
three Departments are coordinating their
efforts in developing the regulations and
other guidance on the shared employer
responsibility provisions (Treasury/IRS
guidance), the 90-day limitation on wait-
ing periods (three Department guidance),
automatic enrollment for employees of
large employers (DOL guidance),
1
and
other Affordable Care Act provisions.
II. BACKGROUND
Section 4980H was added to the Code
by § 1513 of the Affordable Care Act
enacted March 23, 2010, Pub. L. No.
111–148, and amended by § 1003 of the
Health Care and Education Reconciliation
Act of 2010, enacted March 30, 2010,
Pub. L. No. 111–152. Section 4980H
is effective for months beginning after
December 31, 2013.
Generally, § 4980H provides that an
applicable large employer is liable for an
assessable payment if any full-time em-
ployee is certified to receive an applicable
premium tax credit or cost-sharing reduc-
tion and either (1) the employer fails to
offer to its full-time employees (and their
dependents) the opportunity to enroll in
minimum essential coverage (MEC) un-
der an eligible employer-sponsored plan
(§ 4980H(a) liability)
2
;or(2)theem-
ployer offers its full-time employees (and
their dependents) the opportunity to enroll
in MEC under an eligible employer-spon-
sored plan that, with respect to a full-time
employee who has been certified for the
advance payment of an applicable pre-
mium tax credit or cost-sharing reduction,
either is unaffordable within the meaning
of § 36(B)(c)(2)(C)(i) or does not provide
minimum value within the meaning of
§ 36(B)(c)(2)(C)(ii) (§4980H(b) liability).
The definition of full-time employee is key
in determining whether and, if so, to what
extent, an employer may incur § 4980H(a)
liability or § 4980H(b) liability. The an-
nual assessable payment under § 4980H(a)
is based on all (excluding the first 30)
full-time employees, while the annual
assessable payment under § 4980H(b) is
based on the number of full-time employ-
ees who are certified to receive an advance
payment of an applicable premium tax
credit or cost-sharing reduction.
Section 4980H(c)(4) provides that a
full-time employee with respect to any
month is an employee who is employed
on average at least 30 hours of service
per week. An applicable large employer
with respect to a calendar year is defined
in section 4980H(c)(2) as an employer
who employed an average of at least 50
full-time employees on business days dur-
ing the preceding calendar year.
3
For pur-
poses of determining whether an employer
is an applicable large employer, full-time
equivalent employees (FTEs), which are
determined based on the hours of service
of employees who are not full-time, are
taken into account.
1
Section 18A of the Fair Labor Standards Act (FLSA), as added by § 1511 of the Affordable Care Act, requires employers subject to the FLSA that have more than 200 full-time employees
and that offer enrollment in one or more health benefit plans to automatically enroll new full-time employees in one of the plans offered (subject to any waiting period authorized by law), and
to continue the enrollment of current employees in the employer’s plan. Under FLSA § 18A, which is enforced by the DOL, any automatic enrollment program must include adequate notice
and the opportunity to opt out of any coverage in which the individual was automatically enrolled. Treasury/IRS and the DOL are coordinating the development of their respective guidance
on the definitions of full-time employee for purposes of § 4980H and FLSA § 18A.
2
MEC is defined in § 5000A(f) of the Code. The definition of “eligible employer-sponsored plan” in § 5000A(f)(2) applies for purposes of § 4980H.
3
Section 4980H is effective for months beginning after December 31, 2013. For2014, the first calendar year in which an employer could be an applicable large employer, the preceding
calendar year is 2013.
2011–21 I.R.B.792May 23, 2011

This notice invites comments on a
number of possible rules, definitions and
approaches for interpreting and applying
§ 4980H. Section III of the notice ad-
dresses potential definitions of employer,
employee and hours of service. Section IV
describes a possible method for determin-
ing whether an employer is an applicable
large employer for a calendar year, and
thereby subject to § 4980H. Section V out-
lines possible rules that could be used to
determine an employee’s full-time status
for purposes of calculating an employer’s
assessable payment under § 4980H. Sec-
tion VI contains a more general request for
comments, including comments on the in-
teraction of the rules under § 4980H with
certain other provisions of the Affordable
Care Act.
III. DEFINITION OF EMPLOYER,
EMPLOYEE, HOURS OF SERVICE
In the interests of simplicity and con-
sistency, it is contemplated that the defi-
nitions of employer, employee and hours
of service and the rules for calculating
hours of service (as outlined below) would
generally conform, to the extent consis-
tent with the provisions and purposes
of § 4980H, to well-established regula-
tory definitions and rules applicable to
employer-provided health and pension
benefits. Comments are invited on the
following possible approaches to defining
those terms.
A. How “Employer” Would Be Defined
For purposes of § 4980H, as under
Code provisions generally, “employer”
would mean the entity that is the employer
of an employee under the common-law
test. In addition, § 4980H provides that all
entities treated as a single employer under
§ 414(b), (c), (m), or (o) are treated as a
single employer for purposes of § 4980H.
Section 4980H(c)(2)(C)(i). Thus, all
employees of a controlled group under
§ 414(b) or (c), or an affiliated service
group under § 414(m), are to be taken
into account in determining whether any
member of the controlled group or affili-
ated service group is an applicable large
employer. Section 4980H also provides
that an employer includes a predecessor
employer (§ 4980H(c)(2)(C)(iii)) and that
an employer not in existence during an
entire preceding calendar year will be an
applicable large employer for the current
calendar year if it is reasonably expected to
employ an average of at least 50 full-time
employees (taking into account FTEs) on
business days during the current calendar
year. Section 4980H(c)(2)(C)(ii). (Section
IV.C describes how FTEs are calculated
for purposes of determining whether an
employer is an applicable large employer.)
B. How “Employee” Would Be Defined
For purposes of § 4980H, as under Code
provisions generally, “employee” would
mean a worker who is an employee under
the common-law test. (See Section IV.D
for a special rule regarding seasonal em-
ployees described in § 4980H(c)(2)(B).)
Section 414(n), which treats “leased em-
ployees”, as defined in § 414(n)(2), as
employees of the service recipient for var-
ious purposes, does not cross-reference
§ 4980H and accordingly would not apply
to § 4980H.
C. Definition of “Hours of Service”
In general, § 4980H treats, with respect
to a month, an employee who has an av-
erage of at least 30 hours of service per
week as a full-time employee. It is con-
templated that, for this purpose, proposed
regulations would provide that 130 hours
of service in a calendar month would be
treated as the monthly equivalent of at least
30 hours of service per week.
4
As under
existing Labor Regulations, an employee’s
hours of service would include the follow-
ing: (1) each hour for which an employee
is paid, or entitled to payment, for the per-
formance of duties for the employer; and
(2) each hour for which an employee is
paid, or entitled to payment by the em-
ployer on account of a period of time dur-
ing which no duties are performed due to
vacation, holiday, illness, incapacity (in-
cluding disability), layoff, jury duty, mil-
itary duty or leave of absence (29 C.F.R.
§ 2530.200b–2(a)) (except that it is con-
templated that no more than 160 hours of
service would be counted for an employee
on account of any single continuous pe-
riod during which the employee was paid
or entitled to payment but performed no
duties). The potential rules for determin-
ing hours of service in this Section III.C
and section III.D, which are based on prior
guidance under other provisions of the Af-
fordable Care Act, would apply in deter-
mining an employee’s status as full-time
or not full-time and in calculating an em-
ployer’s FTEs.
D. How Hours of Service Would Be
Calculated
1. Calculation of hours for service for
hourly employees
For employees paid on an hourly basis
(hourly employees), the employer would
be required to calculate actual hours of
service from records of hours worked and
hours for which payment is made or due
(payment is made or due for vacation, hol-
iday, illness, incapacity, etc., as described
above).
2. Calculation of hours for service for
non-hourly employees
For employees not paid on an hourly ba-
sis (non-hourly employees), the employer
would be permitted to calculate the num-
ber of hours of service under any of the
following three methods: (1) counting ac-
tual hours of servicefrom records of hours
worked and hours for which payment is
made or due for vacation, holiday, illness,
incapacity, etc., as described above; (2)
using a days-worked equivalency method
whereby the employee is credited with
eight hours of service for each day for
which the employee would be required to
be credited with at least one hour of ser-
vice under the rule in Section III.C above;
or (3) using a weeks-worked equivalency
of 40 hours of service per week for each
week for which the employee would be
required to be credited with at least one
hour of service under the rule in Sec-
tion III.C above. These equivalents are
based on Labor regulations at 29 C.F.R.
§ 2530.200b–2(a), modified as under prior
guidance under other provisions of the
Affordable Care Act.
Although an employer would be re-
quired to use one of these three meth-
ods for counting hours of service for
4
This possible proposed standard of 130 hours of service per calendar month would take into account thatthe average month consists of more than four weeks (52x30/12=130).
May 23, 20117932011–21 I.R.B.

all non-hourly employees, an employer
need not use the same method for all
non-hourly employees, but may apply
different methods for different classifi-
cations of non-hourly employees, if the
classifications are reasonable and consis-
tently applied. In addition, an employer
may change the method of calculating
non-hourly employees’ hours of service
for each calendar year. For example, for
all non-hourly employees, an employer
may use the actual hours worked method
for the calendar year 2014, but may use
the days-worked equivalency method for
counting hours of service for the calendar
year 2015.
The number of hours of service cal-
culated using the days-worked or weeks-
worked equivalency method would be re-
quired to reflect generally the hours actu-
ally worked and the hours for which pay-
ment is made or due. An employer would
not be permitted to use the days-worked or
weeks-worked equivalency method if the
result would be to substantially understate
an employee’s hours of service in a man-
ner that would cause that employee not to
be treated as full-time.
IV. DETERMINATION OF WHETHER
AN EMPLOYER IS AN APPLICABLE
LARGE EMPLOYER
This section of the notice describes the
process for determining whether an em-
ployer is an applicable large employer in
accordance with § 4980H. Comments are
welcome.
A. Applicable Large Employer Status
Determined Based upon Sum of Full-Time
Employees and FTEs
Under § 4980H, an employer would not
be subject to an assessable payment un-
less the employer is an applicable large
employer. As noted above, § 4980H de-
fines an applicable large employer, with re-
spect to a calendar year, as an employer
that employed an average of at least 50
FT employees on business days during the
preceding calendar year. For purposes of
this Section IV, the term “FT employees”
means the sum of the employer’s full-time
employees and FTEs.
B. Full-Time Employees for Determining
Applicable Large Employer Status
Section 4980H provides that full-time
employee status is determined on a
monthly basis. Under § 4980H, a full-time
employee with respect to any month is an
employee (including a seasonal employee)
who is employed, on average, at least 30
hours of service per week (or, under the
rules contemplated to be included in pro-
posed regulations, at least 130 hours of
service in the calendar month). An em-
ployee who is not a full-time employee
under this standard (including a seasonal
employee) for a given month is taken into
account in the FTE calculation. Section
4980H(c)(2)(E).
C. Full-Time Equivalents for Determining
Applicable Large Employer Status
In determining whether an employer is
an applicable large employer for the cur-
rent calendar year, § 4980H provides that
the employer is required to calculate the
number of FTEs it employed during the
preceding calendar year and count each
such FTE as one FT employee for that
year. All employees (including seasonal
employees) who were not full-time em-
ployees for any month in the preceding
calendar year are included in calculating
the employer’s FTEs for that month. The
number of FTEs for each calendar month
in the preceding calendar year would be
determined using the following steps:
(1) Calculate the aggregate number
of hours of service (but not more than
120 hours of service for any employee)
for all employees who were not full-time
employees for that month.
(2) Divide the total hours of service in
step (1) by 120. This is the number of
FTEs for the calendar month.
In determining the number of FTEs for
each calendar month, fractions would be
taken into account. For example, if in a
calendar month employees who are not
full-time employees work 1,260 hours,
there would be 10.5 FTEs for that month.
However, after adding the 12 monthly
full-time employee and FTE totals, and
dividing by 12 (the amount in Section
IV.E, step (4) below), all fractions would
be disregarded. For example, 49.9 FT
employees for the preceding calendar year
would be rounded down to 49 FT employ-
ees (and thus the employer would not be
an applicable large employer in the current
calendar year).
D. Seasonal Employees
Section 4980H provides that seasonal
employees are employees who perform
labor or services on a seasonal basis as
defined by the Secretary of Labor, in-
cluding seasonal workers covered by
29 C.F.R. § 500.20(s)(1) and retail workers
employed exclusively during holiday
seasons. Section 4980H(c)(2)(B)(ii). If
an employer’s workforce exceeds 50 FT
employees for 120 days or fewer during
a calendar year, and the employees in
excess of 50 who were employed during
that period of no more than 120 days were
seasonal employees, the employer would
not be an applicable large employer. It is
contemplated that, for this purpose only,
four calendar months would be treated as
the equivalent of 120 days.
E. Calculating the Number of FT
Employees
The steps in calculating the number of
FT employees in the preceding calendar
year, and thus whether the employer is an
applicable large employer for the current
calendar year, would be as follows:
(1) Calculate the number of full-time
employees (including seasonal employ-
ees) for each calendar month in the pre-
ceding calendar year.
(2)CalculatethenumberofFTEs(in-
cluding seasonal employees) for each cal-
endar month in the preceding calendar year
(as described in Section IV.C above).
(3) Add the number of full-time em-
ployees and FTEs calculated in steps (1)
and (2) for each of the 12 months in the
preceding calendar year.
(4) Add up the 12 monthly numbers in
step (3) and divide the sum by 12. This is
the average number of the employer’s FT
employees for the preceding calendar year.
See Section IV.C above for rule regarding
fractions and rounding.
(5)IfthenumberofFTemployeesin
step (4) is less than 50, the employer is
not an applicable large employer for the
current calendar year.
(6)IfthenumberofFTemployeesin
step (4) is 50 or more, determine whether
the seasonal employee exception, as de-
scribed in Section IV.D above, applies. If
2011–21 I.R.B.794May 23, 2011

the seasonal employee exception applies,
the employer is not an applicable large em-
ployer for the current calendar year. If the
seasonal exception does not apply, the em-
ployer is an applicable large employer for
the current calendar year.
Examples. In all of the examples in
this notice, employees are common law
employees of the employer, and hours of
service are computed following the rules
in Section III.D above.
Example 1 — Hourly-paid employees.(i)Em-
ployer K’s taxable year is the calendar year. Em-
ployer K’s payroll records indicate that Employee
A was an hourly employee who worked 173 hours
per month for January through November of 2014,
worked 93 hours in December of 2014 and was paid
for 80 hours of annual leave in December of 2014 (for
a total of 173 hours for December of 2014).
(ii) Employee A had more than 130 hours of ser-
vice in each month in calendar year 2014.
(iii) Employee A was a full-time employee of Em-
ployer K for each month during calendar year 2014.
Example 2 — Non-hourly employee: days-
worked equivalency. (i) Same facts asExample 1,
except that in calendar year 2014, Employee B is
a non-hourly employee who worked for Employer
K five days per week for 50 weeks, and was paid
80 hours of vacation leave for two weeks (40 hours
per week). Employer K applies the days-worked
equivalency for Employee B.
(ii) Employee B is credited with 40 hours of ser-
vice for each week in the 2014 calendar year (50
weeks worked and 2 weeks for which payment was
made).
(iii) Employee B averaged at least 30 hours of
service per week during each month in calendar year
2014.
(iv) Employee B is a full-time employee of Em-
ployer K in each month in calendar year 2014.
Example 3 — Applicable large employer.(i)In
each month in calendar year 2014, Employer L has
20 full-time employees, 30 FTEs, and no seasonal
employees.
(ii) Because Employer L has 50 FT employees (20
full-time employees + 30 FTEs) during each month of
2014 and the seasonal employee exception is not ap-
plicable, Employer L is an applicable large employer
for calendar year 2015.
Example 4 — Seasonal employees. (i) In calendar
year 2014, Employer N has 40 full-time employees
for January through December none of whom are sea-
sonal employees. In addition, Employer N also has
80 seasonal full-time employees that work for Em-
ployer N from September through December. Em-
ployer N has no FTEs.
(ii) Before applying the seasonal employee ex-
emption, Employer N has 40 full-time employees
during each of eight calendar months of 2014, and
120 full-time employees during each of four cal-
endar months of 2014, resulting in an average of
66.5 employees for the year (rounded down to 66
full-time employees), an average greater than the
average of at least 50 full-time employees required
for applicable large employer status. However, in
this example, Employer N’s workforce exceeded 50
full-time employees (counting seasonal employees)
for no more than four calendar months (treated as the
equivalent of 120 days) in calendar year 2014, and
the employees in excess of 50 during those months
were seasonal workers.
(iii) Accordingly, because of the seasonal em-
ployee exemption, Employer N is not an applicable
large employer for calendar year 2015.
Example 5 — Seasonal and other FTEs.(i)Same
factsasinExample 4, except that Employer N has 20
FTEs in August, some of whom are seasonal employ-
ees.
(ii) The seasonal employee exemption is not
available if the number of an employer’s FT em-
ployees (including seasonal employees) exceeds 50
employees for more than 120 days during the calen-
dar year. Employer N has at least 50 FT employees
for a period greater than four calendar months
(treated as the equivalent of 120 days) in calendar
year 2014. Therefore, Employer N is not eligible
for the seasonal employee exception. As a result,
Employer N averages 68 FT employees in 2014: [(40
x 7) + (60 x 1) + (120 x 4)] ÷ 12 = 68.33, rounded
down to 68.
(iii) Accordingly, Employer N is an ap-
plicable large employer for calendar year
2015.
V. POTENTIAL METHODS FOR
DETERMINING FULL-TIME
EMPLOYEES UNDER § 4980H
An applicable large employer’s poten-
tial § 4980H(a) liability is determined by
reference to the number of full-time em-
ployees employed for a given month, and
an applicable large employer’s potential
§ 4980H(b) liability is determined by refer-
ence to the number of full-time employees
with respect to whom an applicable pre-
mium tax credit or cost-sharing reduction
is allowed or paid for a given month. Un-
der a month-to-month method for deter-
mining an applicable large employer’s po-
tential § 4980H liability, each employee’s
full-time status would be determined on a
monthly basis (i.e., an employee would be
considered full-time for a month if the em-
ployee averaged at least 30 hours of ser-
vice per week for the month (or, under the
rules contemplated to be included in pro-
posed regulations, had at least 130 hours
ofserviceforthemonth)).
A determination of full-time employee
status on a monthly basis for purposes
of calculating an employer’s potential
§ 4980H liability may cause practical dif-
ficulties for employers, employees, and
the State Exchanges. These difficulties
include uncertainty and inability to pre-
dictably identify which employees are
considered full-time and, consequently,
inability to forecast or avoid potential
§ 4980H liability. This issue is particularly
acute in circumstances in which employ-
ees have varying hours or employment
schedules (e.g., employees whose hours
vary from month to month or who are
employed for a limited period). If em-
ployer-sponsored coverage were limited
to employees who satisfied the definition
of full-time employee during a month,
employees might move in and out of em-
ployer coverage as frequently as monthly,
which would be undesirable from both the
employee’s and the employer’s perspec-
tive, and could also create administrative
challenges for the State Exchanges.
In order to address these concerns for
employees and employers, and to give plan
sponsors flexible and workable options as
well as greater predictability, Treasury and
the IRS are considering proposing possi-
ble alternatives to a month-by-month de-
termination of full-time employee status
for purposes of calculating an applicable
large employer’s potential assessable pay-
ment. One possible alternative would per-
mit applicable large employers, at their op-
tion, to use a look-back/stability period
safe harbor that would provide certainty
as to which employees would be consid-
ered full-time for a particular coverage pe-
riod. Such an approach also would be de-
signed to give effect to the statutory pro-
visions while accommodating a wide va-
riety of current eligibility and enrollment
practices in group health plans. Accord-
ingly, this notice requests comments on
the look-back/stability period safe harbor
method described below, which Treasury
and the IRS believe represents a reason-
able interpretation of the statute.
Under the possible look-back/stabil-
ity period safe harbor method, an em-
ployer would determine each employee’s
full-time status by looking back at a de-
fined period of not less than three but
not more than twelve consecutive calen-
dar months, as chosen by the employer
(the measurement period), to determine
whether the employee averaged at least
30 hours of service per week (or, under
the rules contemplated to be included in
proposed regulations, at least 130 hours
of service per calendar month) during the
measurement period. If the employee were
determined to be a full-time employee
during the measurement period, then the
employee would be treated as a full-time
employee during a subsequent “stability
May 23, 20117952011–21 I.R.B.

period”, regardless of the number of the
employee’s hours of service during the
stability period, so long as he or she re-
mained an employee. For an employee
who was determined to be a full-time em-
ployee during the measurement period,
the stability period would be a period of at
least six consecutive calendar months that
follows the measurement period and is no
shorter in duration than the measurement
period. If the employee was determined
not to be a full-time employee during the
measurement period,the employer would
be permitted to treat the employee as not
a full-time employee during a stability
period that followed the measurement
period, but the stability period could not
exceed the measurement period.
Example 6 — Measurement period/stability pe-
riod.(i) Employer M, an applicable large employer,
did not hire any new employees in calendar year
2014. Employer M elects to use a 6-month mea-
surement period and a 6-month stability period for
purposes of determining its full-time employees. The
first measurement period runs from January 1, 2014
through June 30, 2014 and the associated stability
period runs from July 1, 2014 through December 31,
2014.
(ii) Employer M determines each employee’s full-
time status by looking back to determine whether the
employee averaged at least 30 hours of service per
week from January 1, 2014 through June 30, 2014
by totaling each employee’s hours of service during
that measurement period and dividing that total by the
number of weeks in that measurement period.
(iii) The employees determined to be full-time
based on their hours of service during the first mea-
surement period are considered to be full-time for
each month in the stability period from July 1, 2014
through December 31, 2014 for purposes of calculat-
ing Employer M’s potential assessable payment un-
der § 4980H for those months.
Treasury and IRS also request com-
ments on other possible alternative meth-
ods of determining full-time employee
status for purposes of calculating an appli-
cable large employer’s potential assessable
payment.
For new employees who might not have
been employed by the employer during the
entire measurement period, or employees
who move into full-time status during the
year, it is currently anticipated that this
safe harbor may apply only in a limited
form. Comments are requested on poten-
tial rules for determining the full-time sta-
tus of such employees. See also Section
VI, below, which requests comments re-
garding the 90-day waiting period and its
application to newlyeligible employees.
In addition, comments are invited on
the following possible provisions:
•To allow reasonable administrative
time to perform the look-back cal-
culation, notify employees of their
eligibility, and enroll them in cover-
age, the stability period might not be
required to commence immediately
following the end of the measurement
period. Instead, plans might be given
the option of taking an administra-
tive interval (forexample, up to one
month) between the end of the mea-
surement period and the beginning of
the stability period.
•Employers who select a measurement
period of less than a year but select a
stability period that is designed to pro-
vide coverage to employees on a plan
year basis might be permitted to pro-
vide different stability periods for dif-
ferent groups of employees depending
on the point during the plan year in
which the employee is determined to
be full-time. For example, employers
using a three-month measurement pe-
riodmightbepermittedtouseasta-
bility period of at least six consecutive
months or, if greater, the number of
calendar months remaining in the plan
year.
•Employers might be given the op-
tion of starting the first measurement
period for an employee on the em-
ployee’s date of hire rather than on the
first day of a calendar month, provided
that the duration of the measurement
period was uniform for all employees.
•To minimize opportunities for manip-
ulation, employers might be limited in
the frequency with which they could
change their measurement and stabil-
ity period.
If employers could use different mea-
surement and stability periods for different
portions of their work force, the potential
for manipulation could be greater, and the
resources required for the IRS to review
and confirm employer compliance would
be materially increased. The use of a
single measurement period and a single
stability period for all of an employer’s
employees would minimize these con-
cerns. Accordingly, commenters are re-
quested to take these issues into account in
commenting on whether applicable large
employers should generally be required to
use the same measurement and stability
periods for all employees. Comments are
requested on whether there are circum-
stances (such as corporate transactions
bringing new entities into the applicable
large employer’s controlled group or the
use of different payroll systems for dif-
ferent groups of employees) in which it
may be appropriate for the employer to
apply different measurement and stability
periods for different classifications of em-
ployees or for different entities within its
controlled group.
VI. REQUEST FOR COMMENTS
A. General Request for Comments
As noted, the IRS and Treasury intend
to issue proposed regulations on the em-
ployer shared responsibility provisions
under § 4980H. To help inform those pro-
posed regulations, comments are invited
on the issues addressed in this notice. In
addition, employers and other stakehold-
ers have requested clarification of how
the § 4980H(a) assessable payment pro-
visions will be interpreted and applied,
and how they should work together with
the § 4980H(b) assessable payment pro-
visions. As noted earlier, § 4980H(a)
provides that the assessable payment under
§ 4980H(a) may apply to an employer that
“fails to offer its full-time employees (and
their dependents) the opportunity to enroll
in minimum essential coverage under an
employer-sponsored plan.” It is contem-
plated that the proposed regulations would
make clear that an employer offering cov-
erage to all, or substantially all, of its
full-time employees would not be subject
to the § 4980H(a) assessable payment pro-
visions. Comments are requested on the
challenges employers may face in being
able to offer coverage to certain categories
of employees even after implementation of
the changes made by the Affordable Care
Act to the group insurance market, and on
other situations where application of the
§ 4980H(a) assessable payment may not
be appropriate. Comments are requested
on whether there are appropriate excep-
tions that should be provided for under the
employer responsibility provisions (for
example, an exception to permit employ-
ers not to offer coverage to nonresident
alien employees, who not are required to
have coverage under the Affordable Care
Act, or not to offer coverage to certain sea-
sonal employees) and how any proposed
2011–21 I.R.B.796May 23, 2011

exceptions would be consistent with the
structure and purpose of the § 4980H(a)
assessable payment provisions.
B. Request for Comments on the 90-Day
Waiting Period Limitation
Section 1201 of the Affordable Care
Act added a new § 2708 of the PHS Act,
which provides that a group health plan
and health insurance issuer offering group
health insurance coverage shall not apply
any waiting period that exceeds 90 days.
5
PHS Act § 2708 (42 U.S.C. § 300gg–7)
is incorporated by reference into the Em-
ployee Retirement Income Security Act of
1974 (ERISA) under § 715 and into the
Code under § 9815, enacted by § 1563 of
the Affordable Care Act. Accordingly, the
interpretation and application of § 2708 of
the PHS Act is subject to the shared juris-
diction of the three Departments. Viola-
tions by group health plans are subject to
the excise tax under § 4980D of the Code,
as well as other civil enforcement remedies
under ERISA and the PHS Act.
For purposes of § 2708 of the PHS
Act, “waiting period” is defined under
§ 2704(b)(4) of the PHS Act to mean
“with respect to a group health plan and
an individual who is a potential participant
or beneficiary in the plan, the period that
must pass with respect to the individual
before the individual is eligible to be cov-
ered for benefits under the terms of the
plan.” Identical definitions of “waiting pe-
riod”appearintheCodeandERISA.See
Code § 9801(b)(4); ERISA § 701(b)(4).
6
Joint final regulations under these three
identical statutory provisions (which were
added by HIPAA) define the term “wait-
ing period” as “the period that must pass
before coverage for an employee or de-
pendent who isotherwise eligibleto enroll
under the terms of a group health plan can
become effective [emphasis added].” See
Treas. Reg. § 54.9801–3(a)(3)(iii); DOL
Reg. 29 CFR 701–3(a)(3)(iii); HHS Reg.
45 CFR 146.111(a)(3)(iii).
The Departments request comments
on the 90-day limitation on any waiting
period under PHS Act § 2708, including
comments on which employees are subject
to the limitation, when a waiting period
may apply consistent with the limitation,
and how the 90-day limitation should be
calculated. Comments are also requested
on the application of the 90-day waiting
period under PHS Act § 2708 to com-
mon employer eligibility and enrollment
practices and the interaction between the
interpretation of the Code § 4980H em-
ployer responsibility provisions and the
calculation of the maximum permissible
waiting period under PHS Act § 2708,
including the following:
1. On April 8, 2011, the DOL held an
open forum on issues relating to im-
plementation of the automatic enroll-
ment provisions of § 18A of the Fair
Labor Standards Act. At that open
forum and in other contexts, stake-
holders have described arrangements
or practices currently used by some
group health plans to determine when
an employee is eligible to enroll in
the plan and when enrollment occurs.
Comments are requested on how the
90-day waiting period under PHS Act
§ 2708 should be applied in the fol-
lowing situations (including appropri-
ate modifications, if any, that should
be made to an employer group health
plan’s eligibility and enrollment prac-
tices):
a. Employees become eligible to
enroll in the employer’s group
health plan when they are deter-
minedtohaveworkedanaverage
of a specified number of hours
(e.g., 30 hours per week) during
a look-back measurement period
(e.g., a quarterly look-back mea-
surement period) and are there-
fore considered to satisfy the
plan’s eligibility requirements.
Once an employee is determined
to be eligible to enroll in the
group health plan, he or she is
enrolled at the end of a 90-day
waiting period during which the
employer and the plan or issuer,
as applicable, complete the en-
rollment process.
b. Employeeswhoarehiredtowork
a full-time schedule become eli-
gible to enroll in the employer’s
group health plan, subject to a
90-day service requirement, cal-
culated from the date of hire. The
plan or issuer does not permit
mid-month enrollment but per-
mits employees to enroll on the
first day of the month (or the first
day of a quarter) after completing
90 days of service.
c. Employees covered by a collec-
tive bargaining agreement be-
come eligible for coverage under
a multiemployer health plan for a
period (such as a calendar quar-
ter) if they completed a specified
number of hours during an ear-
lier period (such as the previous
calendar quarter, or the calendar
quarter that began six months be-
fore the coverage quarter). The
multiemployer health plan col-
lects such an employee’s hours
worked from different employers
that contribute to the plan. Under
the terms of the multiemployer
plan, excess hours may or may
not be “banked” and available
to maintain coverage for future
quarters in which the employee
does not meet the hours require-
ment.
d. Employees become eligible to
enroll in the employer’s group
health plan after completing a
service-based “probationary” pe-
riod of, for example, three to six
months. The plan enrolls em-
ployees 90 days after the comple-
tion of the probationary period.
e. Employees hired as seasonal
workers or into certain other
temporary or variable-hour cate-
gories of employment are not el-
igible to enroll in the employer’s
group health plan, even if such
an employee works a sufficient
number of hours to satisfy the
plan’s eligibility requirement for
non-seasonal employees. To the
extent that the status of this em-
ployee changes to one that is
eligible to enroll in the plan, the
employee is permitted to enroll
90 days after the change in sta-
5
PHS Act § 2708 is effective for plan years beginning on or after January 1,2014 and applies to both grandfathered and non-grandfathered plans.
6
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) added the definition of waiting period to the PHS Act, ERISA and the Code as part of the portability provisions.
Under the HIPAA portability provisions, a waiting period is not taken into account in determining whether an individual has had a significant break incoverage (i.e., a break of 63 or more
days) that would nullify prior creditable coverage that would otherwise reduce the length of an allowed preexisting condition exclusion period.
May 23, 20117972011–21 I.R.B.

tus. In some instances, the same
seasonal or temporary employees
may be rehired annually.
f. Part-time employees are offered
coverage, but only after having
worked for longer than a 90-day
period.
2. What, if any, other service-based el-
igibility conditions do employers,
plans, or issuers currently impose that
could raise compliance issues under
PHS Act § 2708? Are there any clari-
fications or interpretations that would
be helpful to facilitate compliance?
Should the 90-day waiting period
provision be interpreted to require
aggregation of discrete periods of ser-
vice or should plans be permitted to
require continuous service to satisfy
the waiting period?
3. How should § 4980H be coordinated
with the 90-day waiting period provi-
sion?
Comments must be submit-
ted by June 17, 2011. Comments
should include a reference to Notice
2011–36.Send submissions to
CC:PA:LPD:PR (Notice 2011–36),
Room 5203, Internal Revenue Service,
P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand deliveredMonday
through Fridaybetween the hours of
8 a.m. and 4 p.m. to CC:PA:LPD:PR
(Notice 2011–36), Courier’s Desk,
Internal Revenue Service, 1111
Constitution Avenue, NW, Washington,
DC 20044, or sent electronically,
via the following e-mail address:
Notice.comments@irscounsel.treas.gov.
Please include “Notice 2011–36” in
the subject line of any electronic
communication. All material submitted
will be available for public inspection and
copying.
NO INFERENCE
No inference should be drawn from any
provision of this notice concerning any
other provision of § 4980H or any other
section of the Affordable Care Act.
DRAFTING INFORMATION
The principal author of this notice is
Mireille Khoury 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. Khoury at (202) 622–6080 (not a
toll-free call).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2011–41
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
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
April 2011 is 5.58 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%
May20116.03
5.43
6.03
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
2011–21 I.R.B.798May 23, 2011

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, 2007–2 C.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
April 2011 data is in Table I at the end
of this notice. The spot first, second, and
third segment rates for the month of April
2011 are, respectively, 1.93, 5.23, and
6.44. The three 24-month average cor-
porate bond segment rates applicable for
May 2011 are as follows:
First
Segment
Second
Segment
Third
Segment
2.38
5.51
6.36
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 May 2011, the funding seg-
ment rates are the three 24-month average
corporate bond segment rates applicable
for May 2011, listed above without blend-
ing 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 April 2011 is 4.50 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 February 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 mini-
mum amount for the full-funding limi-
tation described in section 431(c)(6)(A),
based on the plan’s current liability.
Section 431(c)(6)(E)(ii)(I) provides that
the interest rate used to calculate cur-
rent 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 during the four-year
period ending on the last day before the
beginning of the plan year. Notice 88–73,
1988–2 C.B. 383, provides guidelines for
determining the weighted average interest
rate. The following rates were determined
for plan years beginning in the month
shown below.
For Plan Years
Beginning inPermissible Range
MonthYear
30-Year
Treasury
Weighted
Average
90%to
105%
May20114.293.86
4.50
MINIMUM PRESENT VALUE
SEGMENT RATES
Generally for plan years beginning af-
ter December 31, 2007, the applicable in-
terest rates under § 417(e)(3)(D) are seg-
ment rates computed without regard to a
24-month average. For plan years be-
ginning in 2008 through 2011, the appli-
cable interest rates are the monthly spot
segment rates blended with the applicable
rate under § 417(e)(3)(A)(ii)(II) as in ef-
fect for plan years beginning in 2007. No-
tice 2007–81 provides guidelines for de-
termining the minimum present value seg-
ment rates. Pursuant to that notice, the
minimum present value transitional seg-
ment rates determined for April 2011, tak-
ing into account theApril 2011 30-year
Treasury rate of 4.50 stated above, are as
follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20102.964.94
5.66
20112.44
5.086.05
May 23, 20117992011–21 I.R.B.

DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities Di-
vision. Mr. Montanaro may be e-mailed at
RetirementPlanQuestions@irs.gov.
2011–21 I.R.B.800May 23, 2011

Table I
Monthly Yield Curve for April 2011
Derived from April 2011 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.5
0.44
20.5
6.03
40.5
6.49
60.56.6580.5
6.73
1.0
0.75
21.0
6.05
41.0
6.50
61.06.6681.06.73
1.51.0721.56.0741.56.5161.56.6681.56.74
2.01.4122.06.0942.0
6.51
62.06.6682.06.74
2.5
1.76
22.5
6.11
42.56.5262.5
6.66
82.5
6.74
3.02.1223.06.1343.0
6.52
63.06.6783.06.74
3.5
2.47
23.56.1543.56.5363.5
6.67
83.5
6.74
4.0
2.79
24.06.1744.0
6.53
64.06.6784.06.74
4.5
3.09
24.56.1844.56.5464.56.6784.56.74
5.0
3.36
25.0
6.20
45.06.5465.0
6.67
85.06.75
5.5
3.61
25.5
6.21
45.56.5565.5
6.68
85.56.75
6.03.8426.06.2346.0
6.55
66.06.6886.0
6.75
6.5
4.04
26.5
6.24
46.56.5666.5
6.68
86.56.75
7.04.2227.0
6.25
47.0
6.56
67.06.6887.0
6.75
7.54.3827.56.2747.56.5667.5
6.69
87.56.75
8.0
4.53
28.06.2848.0
6.57
68.06.6988.0
6.75
8.5
4.66
28.5
6.29
48.56.5768.5
6.69
88.56.75
9.04.7929.0
6.30
49.0
6.58
69.06.6989.0
6.76
9.5
4.90
29.56.3149.5
6.58
69.5
6.69
89.56.76
10.0
5.00
30.06.33
50.06.58
70.06.70
90.0
6.76
10.55.1030.56.3450.56.5970.56.7090.56.76
11.05.1931.0
6.3551.0
6.5971.06.7091.06.76
11.55.2731.5
6.36
51.5
6.60
71.5
6.7091.56.76
12.0
5.34
32.06.37
52.0
6.6072.06.70
92.0
6.76
12.55.4132.5
6.38
52.5
6.60
72.5
6.7192.56.76
13.0
5.47
33.06.38
53.0
6.6173.06.71
93.0
6.76
13.55.5333.5
6.39
53.56.6173.56.7193.56.77
14.0
5.58
34.06.40
54.0
6.6174.06.7194.06.77
14.55.6334.5
6.41
54.5
6.62
74.5
6.7194.56.77
15.05.6835.0
6.42
55.0
6.62
75.0
6.7195.06.77
15.55.7235.5
6.43
55.5
6.62
75.5
6.7295.56.77
16.0
5.76
36.06.43
56.0
6.6376.06.72
96.0
6.77
16.55.8036.56.4456.56.6376.56.7296.56.77
17.0
5.84
37.0
6.4557.0
6.6377.06.7297.06.77
17.55.8737.5
6.46
57.5
6.64
77.5
6.7297.56.77
18.05.9038.06.46
58.0
6.6478.06.72
98.0
6.78
18.5
5.93
38.5
6.47
58.5
6.64
78.5
6.7398.56.78
19.0
5.96
39.0
6.4859.06.64
79.0
6.73
99.0
6.78
19.55.9839.56.4859.56.6579.56.7399.56.78
20.06.0140.06.4960.0
6.65
80.06.73100.06.78
May 23, 20118012011–21 I.R.B.

26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of
correct tax liability.
(Also Part I, §§ 118, 362.)
Rev. Proc. 2011–30
SECTION 1. PURPOSE
This revenue procedure provides a safe
harbor under section 118(a) of the Inter-
nal Revenue Code for the treatment of cer-
tain awards regarding clean coal technol-
ogymadebytheNationalEnergyTech-
nology Laboratory (NETL), United States
Department of Energy (DOE) to corporate
taxpayers.
SECTION 2. BACKGROUND
Section 118(a) of the Code provides
that in the case of a corporation, gross in-
come does not include a contribution to the
capital of the taxpayer.
Section 1.118–1 of the Income Tax
Regulations provides that section 118 ap-
plies to contributions to capital made by a
person other than a shareholder, for exam-
ple, property contributed to a corporation
by a governmental unit for the purpose
of enabling the corporation to expand its
operating facilities.
Section 362(c)(2) of the Code requires a
basis reduction in a corporation’s property
when the corporation receives money from
a nonshareholder as a contribution to its
capital.
42 U.S.C. 15962 directs DOE to pro-
vide assistance for projects that advance
efficiency, environmental performance,
and cost competitiveness well beyond the
level of technologies that are in commer-
cial service or have been demonstrated
on a scale that DOE determines is suf-
ficient to demonstrate that commercial
service is viable as of August 8, 2005. To
implement this program, NETL issued a
Financial Assistance Funding Opportunity
Announcement for Clean Coal Power Ini-
tiative - Round 3 (DE-PS26–08NT43181
and DE-FOA–0000042, dated August 11,
2008, as amended by Amendment 005,
dated June 9, 2009, and Amendment 006,
dated July 16, 2009) (CCPI - Round 3).
This guidance may be accessed electron-
ically at:http://www.energy.gov/recov-
ery/documents/vDE-FOA–0000042.pdf.
42 U.S.C. 17251 directs DOE to carry
out a program to demonstrate technolo-
gies for the large-scale capture of carbon
dioxide from industrial sources. To im-
plement this program, NETL issued a
Financial Assistance Funding Opportu-
nity Announcement for Carbon Capture
and Sequestration from Industrial Sources
and Innovative Concepts for Benefi-
cial CO
2
Use (DE-FOA–0000015, dated
June 8, 2009, as amended by Amendment
001, dated July 17, 2009) (ICCS). This
guidance may be accessed electronically
at:http://www.energy.gov/recovery/
documents/DE-FOA–0000015.pdf.
On September 27, 2010, NETL
awarded assistance for a commer-
cial-scale,oxy-combustion power
plant and carbon dioxide seques-
tration facility (FutureGen 2.0). A
project summary may be accessed
electronically at:http://www.re-
covery.gov/Transparency/Recipi-
entReportedData/pages/Recipient-
ProjectSummary508.aspx?AwardId-
Sur=115412&AwardType=Grants.
Division A, Title IV of the American
Recovery and Reinvestment Act of 2009
(Pub. L. 111–5) (ARRA) appropriated
$3.4 billion for Fossil Energy Research
and Development, of which DOE allo-
cated approximately $796 million to CCPI
- Round 3, approximately $703 million to
ICCS, and approximately $995 million to
FutureGen 2.0.
SECTION 3. SCOPE
This revenue procedure applies to cor-
porate taxpayers that receive an award
from DOE funded in whole or in part by
ARRA under CCPI - Round 3, ICCS, or
FutureGen 2.0. This revenue procedure
applies only if the corporate taxpayer has
the right to retain ownership of its in-
ventions made under an award, either by
statute or under a waiver of patent rights
from DOE.
This revenue procedure does not apply
to noncorporate taxpayers. In addition,
this revenue procedure does not apply to
the portion of an award paid or incurred
for non-capital expenditures (such as op-
erating expenses) or for research and ex-
perimental expenditures under section 174
of the Code.
SECTION 4. PROCEDURE
The Internal Revenue Service will not
challenge a corporate taxpayer’s treat-
ment of an award from DOE under CCPI
- Round 3, ICCS, or FutureGen 2.0 as a
nonshareholder contribution to the capital
of the corporation under section 118(a)
of the Code if the corporate taxpayer
properly reduces the basis of its property
under section 362(c)(2) and the regula-
tions thereunder.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective
April 14, 2011.
SECTION 6. DRAFTING
INFORMATION
The principal author of this rev-
enue procedure is David McDonnell of
the Office of Associate Chief Counsel
(Passthroughs & Special Industries). For
further information regarding this revenue
procedure, contact Mr. McDonnell at
(202) 622–3040 (not a toll-free call).
2011–21 I.R.B.802May 23, 2011

Part IV. Items o
fGeneralInterest
Notice of Prop
osed
Rulemaking
Controlled Gr
oups; Deferral of
Losses
REG–118761–
09
AGENCY: Inte
rnal Revenue Service
(IRS), Treas
ury.
ACTION: Noti
ce of proposed rulemaking.
SUMMARY: Thi
s document contains pro-
posed regula
tions that provide guidance
concerning t
he time for taking into account
deferred lo
sses on the sale or exchange of
property be
tween members of a controlled
group. Thes
e proposed regulations affect
members of a
controlled group and their
sharehold
ers.
DATES: Wri
tten and electronic comments
and reques
ts for a public hearing must be
received b
yJuly20,2011.
ADDRESSES
: Send submissions to:
CC:PA:LPD
:PR(REG–118761–09),
Internal R
evenue Service, PO Box
7604, Ben
Franklin Station, Washington,
DC 20044.
Submissions may be
hand deli
vered to: CC:PA:LPD:PR
Monday th
rough Friday between
the hours
of 8 a.m. and 4 p.m. to
CC:PA:L
PD:PR(REG–118761–09),
Courier
’s Desk, Internal Revenue
Service
, 1111 Constitution Avenue, NW,
Washing
ton, DC, or sent electronically
viatheF
ederaleRulemaking
Portal
atwww.regulations.gov(IRS
REG–11
8761–09).
FOR FUR
THER INFORMATION
CONTAC
T: Concerning the pro-
posed r
egulations, Bruce A. Decker
(202) 6
22–7790; concerning sub-
missi
ons of comments and/or
reque
sts for a public hearing,
Richa
rd.A.Hurst@irscounsel.treas.gov,or
(202)
622–7180.
SUPPL
EMENTARY INFORMATION:
Backg
round
This d
ocument provides guidance con-
cerni
ng the Federal income tax treatment
of deferred lo
sses on the sale or exchange
of property be
tween members of a con-
trolled group
, including transactions in
which the memb
er acquiring the property
subsequently
recognizes a corresponding
gain with res
pect to the property.
Section 267(a
)(1) provides that no de-
duction shal
l be allowed for any loss on
thesaleorex
change of property between
certain rela
ted persons. Section 267(f)(2)
contains an e
xception for a loss on the sale
or exchange
of property between mem-
bers of a con
trolled group. For this pur-
pose, “cont
rolled group” has the mean-
ing defined
in section 1563(a) except that
“more than
50 percent” is substituted for
“at least 8
0 percent” each place it appears.
In the case
ofasaleorexchangeofloss
property b
etween members of a controlled
group, the
loss is deferred rather than dis-
allowed.
Under section 267(f)(2)(B), the
loss is de
ferred until the property is trans-
ferred ou
tside of the controlled group and
there wou
ld be recognition of loss under
consoli
dated return principles or until such
other ti
me as may be prescribed in regula-
tions.
The regu
lations under section 267(f)
provide
that the timing principles for in-
tercomp
any sales or exchanges between
members
of a consolidated group (see
genera
lly §1.1502–13(c)(2)) apply to sales
or exch
anges of property at a loss be-
tween m
embers of controlled group. See
§1.267
(f)–1(a)(2). The attribute rede-
termin
ation rules applicable to transac-
tions
between members of a consolidated
group
(see §1.1502–13(c)(1)), however,
do not
apply to sales or exchanges be-
tween
members of a controlled group. See
§1.26
7(f)–1(a)(2)(i)(B)). For example, if
amem
ber of a consolidated group (S)
hold
s land for investment and sells the
land
at a loss to another member of its
cons
olidated group (B), and B develops
the l
and and sells developed lots to un-
rel
ated customers, S’s intercompany loss
wil
l be taken into account when B sells the
pro
perty to the unrelated person. Further-
mor
e, S’s loss will be recharacterized as an
ord
inary loss, even though S’s loss would
oth
erwise be a capital loss given its sepa-
ra
te-entity status as holding the property
fo
r investment. See §1.1502–13(c)(4)(i),
(c
)(7)(ii),Example 2.IfBandSwere
members of a co
ntrolled group but not a
consolidated
group, S’s loss would also be
taken into acc
ount when B sells the parcel
to an unrelate
d person, but S’s loss would
retain its cha
racter as a capital loss.
The attribute
redetermination rule ap-
plicable to in
tercompany transactions
between cons
olidated group members
may have the e
ffect of eliminating an
intercompan
y loss with respect to a corpo-
ration’s sto
ck. For example, assume that S,
a subsidiar
y in a consolidated group,
owns 100 per
centofthestockofT,a
solvent cor
poration. S sells 30 percent
of T’s stock
at a loss to B, the common
parent of t
he consolidated group that
includes S
. In a subsequent, unrelated
transacti
on (and before any change in
the value o
f the T stock), T liquidates.
The attrib
ute redetermination rule of
§1.1502–
13(c)(1) recharacterizes S’s
intercom
pany loss to produce the same
results t
o the consolidated group as a
whole as i
f S and B were divisions
of a sing
le corporation. Under these
facts, t
he subsequent liquidation of T,
tax-fre
e under section 332, would cause
S’s inte
rcompany loss to be treated as a
noncapi
tal nondeductible amount. See
§1.150
2–13(f)(7),Example 5(c).
Althoug
h the attribute redetermina-
tion ru
le generally does not apply to
sales o
r exchanges between members of
acontr
olled group, §1.267(f)–1(c)(1)(iv)
contai
ns a special rule with respect to
losses
that would have been redeter-
mined
to be a noncapital, nondeductible
amoun
t if the consolidated return attribute
redet
ermination rule did apply. Under
§1.26
7(f)–1(c)(1)(iv), if an intercompany
loss b
etween members of a consolidated
grou
p would have been redetermined to
bean
oncapital, nondeductible amount as
ares
ult of the attribute redetermination
rule
applicable to consolidated groups, but
is no
t redetermined because the sale or
exc
hange occurred between members of
aco
ntrolled group (to which the attribute
red
etermination rule does not apply), then
the
loss will be deferred until S and B are
no l
onger in a controlled group relation-
shi
p. Thus, if the facts in the example in
th
e preceding paragraph were the same,
ex
cept that B was the parent of a controlled
gr
oup that included S, rather than a con-
May 23, 20118032011–21 I.R.B.

solidated group, under the principles of
section 267(f), the IRS and Treasury De-
partment believe that S’s loss on the sale
or exchange of T stock should be deferred
until S and B (and their successors) are no
longer in a controlled group relationship.
Furthermore, assume S1 and S2, both
members of a consolidated group, each
own 50 percent of the stock of T. If the ba-
sis of the T stock is greater than its value,
a liquidation of T would generally result in
non-recognition of the loss through the ap-
plication of §1.1502–34 and section 332.
In an attempt to avoid the non-recognition
of the loss, either S1 or S2 may sell more
than 20 percent of T’s stock to a noncon-
solidated, controlled group member in a
transaction that is treated as a sale or ex-
change for federal income tax purposes.
Thereafter, T is liquidated in an attempt
to recognize a loss on 100 percent of the
subsidiary’s stock. The IRS and Treasury
Department believe that in these situations,
the loss should similarly be deferred un-
til the buying and selling members are no
longer in a controlled group relationship.
In a controlled group setting, taxpay-
ers have noted that the current regulations
do not allow S to take into account any
amount of the intercompany loss when B
recognizes a corresponding gain. For ex-
ample, if S sells 30 percent of T’s stock to
B at a loss (in a transaction that is treated
as a sale or exchange for federal income
tax purposes) and T’s stock appreciates be-
tween the time of the intercompany sale
and a subsequent event that results in B’s
recognition of gain (that is T’s liquidation),
B would recognize a gain under section
331 at that time, but S’s loss would remain
deferred in its entirety. Accordingly, the
IRS and the Treasury Department propose
to modify the current regulations and al-
low S’s intercompany loss to be taken into
account to the extent that B recognizes a
corresponding gain, in addition to the other
events that result in acceleration.
Explanation of Provisions
These proposed regulations provide
that, for purposes of determining whether
a loss would be determined to be a non-
capital, nondeductible amount under the
principles of §1.1502–13, stock held by
the selling member, stock held by the
buying member, and stock held by all
members of the seller’s consolidated group
as well as stock held by any member of a
controlled group of which the seller is a
member that was acquired from a member
of the seller’s consolidated group must be
taken into account. In addition, certain
losses on the sale or exchange of property
between members of a controlled group,
which have been deferred, are taken into
account upon the occurrence of either of
two events. The deferred loss is taken into
account to the extent of any correspond-
ing gain that the member acquiring the
property recognizes with respect to the
property. Alternatively, the deferred loss
is taken into account when the parties to
the transaction cease to be in a controlled
group relationship. In the example, under
the proposed regulations, S’s loss will be
recognized to the extent of the amount of
corresponding gain recognized by B upon
the event that results in recognition of that
gain (that is T’s liquidation).
Proposed Effective/Applicability Date
These proposed regulations will apply
to loss redetermination events that occur
after the date the regulations are published
as final regulations in theFederal Regis-
ter.
Special Analyses
It has been determined that this notice
of proposed rulemaking is not a significant
regulatory action as defined in Executive
Order 12866. Therefore, a regulatory
assessment is not required. It is hereby cer-
tified that these proposed regulations will
not have a significant economic impact on
a substantial number of small entities. This
certification is based on the fact that these
regulations primarily affect controlled
groups of corporations which tend to be
larger businesses. Therefore, a Regulatory
Flexibility Analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is not
required. Pursuant to section 7805(f) of
the Internal Revenue Code, this regulation
has been submitted to the Small Business
Administration for comment on its impact
on small governmental jurisdictions.
Comments and Requests for Public
Hearing
Before these proposed regulations are
adopted as final regulations, consideration
will be given to any written (a signed origi-
nal and eight (8) copies)orelectroniccom-
ments that are submitted timely to the IRS.
The IRS and the Treasury Department re-
quest comments on the clarity of the pro-
posed rules and how they can be made
easier to understand. All comments are
available atwww.regulations.govor upon
request. A public hearing will be sched-
uled if requested in writing by any person
that timely submits written comments. If
a public hearing is scheduled, notice of the
date, time, and place for the public hearing
will be published in theFederal Register.
Drafting Information
The principal author of these regula-
tions is Bruce A. Decker, Office of As-
sociate Chief Counsel (Corporate), IRS.
However, other personnel from the Trea-
sury Department and the IRS participated
in their development.
*****
Proposed Amendments to the
Regulations
Accordingly, 26 CFR part 1 is proposed
to be amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.267(f)–1 is amended
as follows:
1. Paragraph (c)(1)(iv) is revised.
2. Paragraph (l)(3) is redesignated as
paragraph (l)(4) and paragraph (l)(3) is
added.
The addition and revision read as fol-
lows:
§1.267(f)–1 Controlled Groups.
*****
(c) * * *
(1) * * *
(iv)B’s item is excluded from gross in-
come or noncapital and nondeductible.To
the extent S’s loss would be redetermined
to be a noncapital, nondeductible amount
under the principles of §1.1502–13, but
is not redetermined because of paragraph
(c)(2) of this section (which generally ren-
ders the attribute redetermination rule in-
applicable to sales between members of
2011–21 I.R.B.804May 23, 2011

a controlled group), S’s loss continues to
be deferred. The preceding sentence does
not apply, however, to the extent paragraph
(c)(1)(iii) of this section applies as a re-
sult of a transfer of the property to certain
related persons. If the loss is deferred, it
is taken into account when S and B (in-
cluding their successors) are no longer in a
controlled group relationship or to the ex-
tent of any corresponding income or gain
recognized by B with respect to the prop-
erty, whichever occurs first. For exam-
ple, if S sells all of the stock of corpora-
tion T to B at a loss (in a transaction that
is treated as a sale or exchange for federal
income tax purposes), and T subsequently
liquidates in an unrelated transaction that
qualifies under section 332, S’s loss is de-
ferred until S and B are no longer in a con-
trolled group relationship. Similarly, if S
owns all of the T stock, sells 30 percent
of T’s stock to B at a loss (in a transac-
tion that is treated as a sale or exchange for
federal income tax purposes), and T subse-
quently liquidates into S and B, S’s loss on
the sale is deferred until S and B (includ-
ing their successors) are no longer in a con-
trolled group relationship. If B recognizes
any income or gain on amounts received
in a distribution in complete liquidation of
T, S will take into account its deferred loss
on its sale of T stock to the extent of B’s
gain. For purposes of this paragraph, stock
held by S, stock held by B, and stock held
by all members of S’s consolidated group
as well as stock held by any member of a
controlled group of which S is a member
that was acquired from a member of S’s
consolidated group must be taken into ac-
count in determining whether a loss would
be determined to be a noncapital, nond-
eductible amount under the principles of
§1.1502–13.
*****
(l) * * *
*****
(3)Loss redetermination events.Para-
graph (c)(1)(iv) of this section applies to
loss redetermination events occurring after
the date these regulations are published as
final regulations in theFederal Register.
Steven T. Miller,
Deputy Commissioner For
Services and Enforcement.
(Filed by the Office of the Federal Register on April 20, 2011,
8:45 a.m., and published in the issue of the Federal Register
for April 21, 2011, F.R. 22336)
May 23, 20118052011–21 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.
2011–21 I.R.B.iMay 23, 2011

Numerical Finding List
1
Bulletin 2011–1 through 2011–21
Announcements:
2011-1, 2011-2 I.R.B.304
2011-2, 2011-3 I.R.B.324
2011-3, 2011-3 I.R.B.324
2011-4, 2011-4 I.R.B.424
2011-5, 2011-4 I.R.B.430
2011-6, 2011-4 I.R.B.433
2011-7, 2011-5 I.R.B.446
2011-8, 2011-5 I.R.B.446
2011-9, 2011-7 I.R.B.499
2011-10, 2011-7 I.R.B.499
2011-11, 2011-7 I.R.B.500
2011-12, 2011-9 I.R.B.532
2011-13, 2011-8 I.R.B.525
2011-14, 2011-9 I.R.B.532
2011-15, 2011-8 I.R.B.526
2011-16, 2011-7 I.R.B.500
2011-17, 2011-9 I.R.B.532
2011-18, 2011-12 I.R.B.567
2011-19, 2011-11 I.R.B.553
2011-20, 2011-10 I.R.B.542
2011-21, 2011-12 I.R.B.567
2011-22, 2011-16 I.R.B.672
2011-23, 2011-12 I.R.B.568
2011-24, 2011-12 I.R.B.569
2011-25, 2011-14 I.R.B.608
2011-26, 2011-14 I.R.B.608
2011-27, 2011-15 I.R.B.651
2011-28, 2011-18 I.R.B.748
2011-29, 2011-18 I.R.B.748
2011-30, 2011-20 I.R.B.791
Notices:
2011-1, 2011-2 I.R.B.259
2011-2, 2011-2 I.R.B.260
2011-3, 2011-2 I.R.B.263
2011-4, 2011-2 I.R.B.282
2011-5, 2011-3 I.R.B.314
2011-6, 2011-3 I.R.B.315
2011-7, 2011-5 I.R.B.437
2011-8, 2011-8 I.R.B.503
2011-9, 2011-6 I.R.B.459
2011-10, 2011-6 I.R.B.463
2011-11, 2011-7 I.R.B.497
2011-12, 2011-8 I.R.B.514
2011-13, 2011-9 I.R.B.529
2011-14, 2011-11 I.R.B.544
2011-15, 2011-10 I.R.B.539
2011-16, 2011-17 I.R.B.720
2011-17, 2011-10 I.R.B.540
2011-18, 2011-11 I.R.B.549
2011-19, 2011-11 I.R.B.550
Notices— Continued:
2011-20, 2011-16 I.R.B.652
2011-21, 2011-19 I.R.B.761
2011-22, 2011-12 I.R.B.557
2011-23, 2011-13 I.R.B.588
2011-24, 2011-14 I.R.B.603
2011-25, 2011-14 I.R.B.604
2011-26, 2011-17 I.R.B.720
2011-27, 2011-17 I.R.B.723
2011-28, 2011-16 I.R.B.656
2011-29, 2011-16 I.R.B.663
2011-30, 2011-17 I.R.B.724
2011-31, 2011-17 I.R.B.724
2011-32, 2011-18 I.R.B.737
2011-33, 2011-19 I.R.B.761
2011-34, 2011-19 I.R.B.765
2011-36, 2011-21 I.R.B.792
2011-37, 2011-20 I.R.B.785
2011-38, 2011-20 I.R.B.785
2011-39, 2011-20 I.R.B.786
2011-41, 2011-21 I.R.B.798
Proposed Regulations:
REG-140108-08, 2011-13 I.R.B.591
REG-149335-08, 2011-6 I.R.B.468
REG-118761-09, 2011-21 I.R.B.803
REG-146097-09, 2011-8 I.R.B.516
REG-153338-09, 2011-14 I.R.B.606
REG-154159-09, 2011-19 I.R.B.777
REG-124018-10, 2011-2 I.R.B.301
REG-131151-10, 2011-8 I.R.B.519
REG-131947-10, 2011-8 I.R.B.521
REG-132724-10, 2011-7 I.R.B.498
Revenue Procedures:
2011-1, 2011-1 I.R.B.1
2011-2, 2011-1 I.R.B.90
2011-3, 2011-1 I.R.B.111
2011-4, 2011-1 I.R.B.123
2011-5, 2011-1 I.R.B.167
2011-6, 2011-1 I.R.B.195
2011-7, 2011-1 I.R.B.233
2011-8, 2011-1 I.R.B.237
2011-9, 2011-2 I.R.B.283
2011-10, 2011-2 I.R.B.294
2011-11, 2011-4 I.R.B.329
2011-12, 2011-2 I.R.B.297
2011-13, 2011-3 I.R.B.318
2011-14, 2011-4 I.R.B.330
2011-15, 2011-3 I.R.B.322
2011-16, 2011-5 I.R.B.440
2011-17, 2011-5 I.R.B.441
2011-18, 2011-5 I.R.B.443
2011-19, 2011-6 I.R.B.465
2011-20, 2011-11 I.R.B.551
2011-21, 2011-12 I.R.B.560
Revenue Procedures— Continued:
2011-22, 2011-18 I.R.B.737
2011-23, 2011-15 I.R.B.626
2011-24, 2011-20 I.R.B.787
2011-25, 2011-17 I.R.B.725
2011-26, 2011-16 I.R.B.664
2011-27, 2011-18 I.R.B.740
2011-28, 2011-18 I.R.B.743
2011-29, 2011-18 I.R.B.746
2011-30, 2011-21 I.R.B.802
Revenue Rulings:
2011-1, 2011-2 I.R.B.251
2011-2, 2011-2 I.R.B.256
2011-3, 2011-4 I.R.B.326
2011-4, 2011-6 I.R.B.448
2011-5, 2011-13 I.R.B.577
2011-6, 2011-10 I.R.B.537
2011-7, 2011-10 I.R.B.534
2011-8, 2011-12 I.R.B.554
2011-9, 2011-12 I.R.B.554
2011-10, 2011-14 I.R.B.597
2011-11, 2011-19 I.R.B.758
Treasury Decisions:
9507, 2011-3 I.R.B.305
9508, 2011-7 I.R.B.495
9509, 2011-6 I.R.B.450
9510, 2011-6 I.R.B.453
9511, 2011-6 I.R.B.455
9512, 2011-7 I.R.B.473
9513, 2011-8 I.R.B.501
9514, 2011-9 I.R.B.527
9515, 2011-14 I.R.B.599
9516, 2011-13 I.R.B.575
9517, 2011-15 I.R.B.610
9518, 2011-17 I.R.B.710
9519, 2011-18 I.R.B.734
9520, 2011-18 I.R.B.730
9521, 2011-19 I.R.B.750
9522, 2011-20 I.R.B.780
9523, 2011-20 I.R.B.781
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin
2010–52, dated December 27, 2010.
May 23, 2011ii2011–21 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2011–1 through 2011–21
Announcements:
85-88
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
2008-11
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2009-62
Obsoleted by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
Notices:
2006-87
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-25
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2007-77
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2008-107
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2009-23
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-24
Modified by
Notice 2011-24, 2011-14 I.R.B.603
2009-83
Modified by
Notice 2011-25, 2011-14 I.R.B.604
2009-93
Modified by
Notice 2011-38, 2011-20 I.R.B.785
2010-27
Superseded by
Notice 2011-8, 2011-8 I.R.B.503
2010-32
Modified and superseded by
Notice 2011-37, 2011-20 I.R.B.785
2010-59
Modified by
Notice 2011-5, 2011-3 I.R.B.314
Notices— Continued:
2010-60
Supplemented and superseded by
Notice 2011-34, 2011-19 I.R.B.765
2010-71
Modified and superseded by
Notice 2011-9, 2011-6 I.R.B.459
2010-79
Clarified and modified by
Notice 2011-4, 2011-2 I.R.B.282
Proposed Regulations:
REG-132554-08
Corrected by
Ann. 2011-11, 2011-7 I.R.B.500
REG-149335-08
Hearing scheduled by
Ann. 2011-26, 2011-14 I.R.B.608
REG-146097-09
Hearing rescheduled by
Ann. 2011-30, 2011-20 I.R.B.791
Revenue Procedures:
72-50
Modified and superseded by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
76-34
Modified and supersed by
Rev. Proc. 2011-10, 2011-2 I.R.B.294
83-23
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
94-17
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
97-27
Clarified and modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2001-10
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2002-28
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2003-21
Modified and superseded by
Rev. Proc. 2011-15, 2011-3 I.R.B.322
2004-34
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
Modified and clarified by
Rev. Proc. 2011-18, 2011-5 I.R.B.443
Revenue Procedures— Continued:
2006-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2006-56
Modified by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2008-52
Modified by
Notice 2011-4, 2011-2 I.R.B.282
Rev. Proc. 2011-17, 2011-5 I.R.B.441
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-39
Superseded in part by
Rev. Proc. 2011-14, 2011-4 I.R.B.330
2009-44
Modified by
Ann. 2011-6, 2011-4 I.R.B.433
2010-1
Superseded by
Rev. Proc. 2011-1, 2011-1 I.R.B.1
2010-2
Superseded by
Rev. Proc. 2011-2, 2011-1 I.R.B.90
2010-3
Superseded by
Rev. Proc. 2011-3, 2011-1 I.R.B.111
2010-4
Superseded by
Rev. Proc. 2011-4, 2011-1 I.R.B.123
2010-5
Superseded by
Rev. Proc. 2011-5, 2011-1 I.R.B.167
2010-6
Superseded by
Rev. Proc. 2011-6, 2011-1 I.R.B.195
2010-7
Superseded by
Rev. Proc. 2011-7, 2011-1 I.R.B.233
2010-8
Superseded by
Rev. Proc. 2011-8, 2011-1 I.R.B.237
2010-9
Superseded by
Rev. Proc. 2011-9, 2011-2 I.R.B.283
2010-15
Updated by
Rev. Proc. 2011-13, 2011-3 I.R.B.318
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2010–27 through 2010–52 is in Internal Revenue Bulletin 2010–52, dated December 27,
2010.
2011–21 I.R.B.iiiMay 23, 2011

Revenue Procedures— Continued:
2010-18
Amplified and modified by
Rev. Proc. 2011-21, 2011-12 I.R.B.560
2010-25
Obsoleted in part by
Rev. Proc. 2011-23, 2011-15 I.R.B.626
2011-1
Corrected by
Ann. 2011-7, 2011-5 I.R.B.446
2011-8
Corrected by
Ann. 2011-8, 2011-5 I.R.B.446
2011-11
Corrected by
Ann. 2011-9, 2011-7 I.R.B.499
2011-14
Modified by
Rev. Proc. 2011-27, 2011-18 I.R.B.740
Rev. Proc. 2011-28, 2011-18 I.R.B.743
Modified and amplified by
Rev. Proc. 2011-22, 2011-18 I.R.B.737
2011-21
Amplified by
Rev. Proc. 2011-26, 2011-16 I.R.B.664
Revenue Rulings:
81-100
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2004-67
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2008-40
Modified by
Rev. Rul. 2011-1, 2011-2 I.R.B.251
2011-3
Corrected by
Ann. 2011-16, 2011-7 I.R.B.500
Treasury Decisions:
9391
Corrected by
Ann. 2011-12, 2011-9 I.R.B.532
9505
Corrected by
Ann. 2011-10, 2011-7 I.R.B.499
May 23, 2011iv2011–21 I.R.B.

2011–21 I.R.B.May 23, 2011

May 23, 20112011–21 I.R.B.

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