Internal Revenue Bulletin 2013-36 (PDF rendition): IRS Revenue Procedures

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
3-36
September 3, 201
3
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
T.D. 9628, page 169.
Section 6103(l)(21) of the Code was enacted under the Patient
Protection and Affordable Care Act, Public Law 111–148 (124
Stat. 119 (2010)) to permit the disclosure of return information
in order to determine a taxpayer’s eligibility in certain health in-
surance affordability programs. In addition to items specifically
enumerated in the statute, section 6103(l)(21)(A)(v) permits the
disclosure of items prescribed by the Secretary by regulation
as might indicate whether the taxpayer is eligible for a tax credit
under section 36B of the Code, or a cost-sharing reduction un-
der section 1402 of the Affordable Care Act. This document
contains final regulations detailing items of return information
that may be disclosed under section 6103(l)(21).
Notice 2013–53, page 173.
2013 Marginal Production Rates. This notice announces that
under § 613A(c)(6)(C) of the Code, the applicable percentage
for purposes of determining percentage depletion on marginal
properties for calendar year 2013 is 15 percent.
Rev. Proc. 2013–30, page 173.
This revenue procedure provides the exclusive simplified meth-
ods for taxpayers to request relief for late S corporation elec-
tions, ESBT elections, QSST elections, QSub elections, and
late corporate classification elections which the taxpayer in-
tended to take effect on the same date that the taxpayer in-
tended that an S corporation election for the entity should take
effect. This revenue procedure facilitates the grant of relief to
taxpayers that request relief previously provided in numerous
other revenue procedures by consolidating the provisions of
those revenue procedures into one revenue procedure and ex-
tending relief in certain circumstances. Rev. Procs. 97–48,
2003–43, 2004–48, 2004–49, and 2007–62 are affected.
ESTATE TAX
T.D. 9628, page 169.
Section 6103(l)(21) of the Code was enacted under the Patient
Protection and Affordable Care Act, Public Law 111–148 (124
Stat. 119 (2010)) to permit the disclosure of return information
in order to determine a taxpayer’s eligibility in certain health in-
surance affordability programs. In addition to items specifically
enumerated in the statute, section 6103(l)(21)(A)(v) permits the
disclosure of items prescribed by the Secretary by regulation
as might indicate whether the taxpayer is eligible for a tax credit
under section 36B of the Code, or a cost-sharing reduction un-
der section 1402 of the Affordable Care Act. This document
contains final regulations detailing items of return information
that may be disclosed under section 6103(l)(21).
GIFT TAX
T.D. 9628, page 169.
Section 6103(l)(21) of the Code was enacted under the Patient
Protection and Affordable Care Act, Public Law 111–148 (124
Stat. 119 (2010)) to permit the disclosure of return information
in order to determine a taxpayer’s eligibility in certain health in-
surance affordability programs. In addition to items specifically
enumerated in the statute, section 6103(l)(21)(A)(v) permits the
disclosure of items prescribed by the Secretary by regulation
as might indicate whether the taxpayer is eligible for a tax credit
under section 36B of the Code, or a cost-sharing reduction un-
der section 1402 of the Affordable Care Act. This document
contains final regulations detailing items of return information
that may be disclosed under section 6103(l)(21).
(Continued on the next page)
Finding Lists begin on page ii.

EMPLOYMENT TAX
T.D. 9628, page 169.
Section 6103(l)(21) of the Code was enacted under the Patient
Protection and Affordable Care Act, Public Law 111–148 (124
Stat. 119 (2010)) to permit the disclosure of return information
in order to determine a taxpayer’s eligibility in certain health in-
surance affordability programs. In addition to items specifically
enumerated in the statute, section 6103(l)(21)(A)(v) permits the
disclosure of items prescribed by the Secretary by regulation
as might indicate whether the taxpayer is eligible for a tax credit
under section 36B of the Code, or a cost-sharing reduction un-
der section 1402 of the Affordable Care Act. This document
contains final regulations detailing items of return information
that may be disclosed under section 6103(l)(21).
EXCISE TAX
T.D. 9628, page 169.
Section 6103(l)(21) of the Code was enacted under the Patient
Protection and Affordable Care Act, Public Law 111–148 (124
Stat. 119 (2010)) to permit the disclosure of return information
in order to determine a taxpayer’s eligibility in certain health in-
surance affordability programs. In addition to items specifically
enumerated in the statute, section 6103(l)(21)(A)(v) permits the
disclosure of items prescribed by the Secretary by regulation
as might indicate whether the taxpayer is eligible for a tax credit
under section 36B of the Code, or a cost-sharing reduction un-
der section 1402 of the Affordable Care Act. This document
contains final regulations detailing items of return information
that may be disclosed under section 6103(l)(21).
TAX CONVENTIONS
Announcement 2013–38, page 185.
This announcement provides a copy of the Competent Author-
ity Agreement entered into by the competent authorities of the
United States and Belgium regarding application of the princi-
ples set forth in the Organization for Economic Cooperation and
Development Report on the Attribution of Profits to Permanent
Establishments in the interpretation of Article 7 (Business Prof-
its) of the Convention Between the Government of the United
States of America and the Government of the Kingdom of Bel-
gium for the Avoidance of Double Taxation and the Prevention
ofFiscalEvasionwithRespecttoTaxesonIncome,andaccom-
panying Protocol, signed at Brussels on November 27, 2006.
ADMINISTRATIVE
T.D. 9628, page 169.
Section 6103(l)(21) of the Code was enacted under the Patient
Protection and Affordable Care Act, Public Law 111–148 (124
Stat. 119 (2010)) to permit the disclosure of return information
in order to determine a taxpayer’s eligibility in certain health in-
surance affordability programs. In addition to items specifically
enumerated in the statute, section 6103(l)(21)(A)(v) permits the
disclosure of items prescribed by the Secretary by regulation
as might indicate whether the taxpayer is eligible for a tax credit
under section 36B of the Code, or a cost-sharing reduction un-
der section 1402 of the Affordable Care Act. This document
contains final regulations detailing items of return information
that may be disclosed under section 6103(l)(21).
September 3, 20132013–36 I.R.B.

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.
It is the poli
cy of the Service to publish in the Bulletin all sub-
stantive ru
lings necessary to promote a uniform application of
the tax laws
, including all rulings that supersede, revoke, mod-
ify, or amen
d any of those previously published in the Bulletin.
All publish
ed rulings apply retroactively unless otherwise indi-
cated. Pro
cedures relating solely to matters of internal man-
agement ar
e 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.—1986 Code.
This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, 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 part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The cont
ents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
2013–36 I.R.B.September 3, 2013

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 6103.
—Confi-
dentiality an
dDisclosure
of Returns and Return
Information
T.D. 9628
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 301
Regulations Pertaining to
theDisclosureofReturn
Information to Carry Out
Eligibility Requirements for
Health Insurance Affordability
Programs
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final Regulations.
SUMMARY: This document contains final
regulations relating to the disclosure of re-
turn information under section 6103(l)(21)
of the Internal Revenue Code, as enacted
by the Patient Protection and Affordable
Care Act and the Health Care and Edu-
cation Reconciliation Act of 2010. The
regulations define certain terms and pre-
scribe certain items of return information
in addition to those items prescribed by
statute that will be disclosed, upon written
request, under section 6103(l)(21).
DATES:Effective Date:These regulations
are effective on August 14, 2013.
Applicability Date:For date of applica-
bility, see §301.6103(l)(21)–1(d).
FOR FURTHER INFORMATION
CONTACT: Steven Karon, (202)
622–4570 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Sec
tion 6103(l)(21) of the Internal Rev-
en
ue Code (the Code) permits the disclo-
su
re of return information to assist Ex-
ch
anges in performing certain functions
set forth in th
e Patient Protection and Af-
fordable Care
Act, Public Law 111–148
(124 Stat. 119
(2010)) (the Affordable
Care Act) for
which income verification is
required (in
cluding determinations of eli-
gibility for
the insurance affordability pro-
grams descri
bed in the Affordable Care
Act), as wel
l as to assist State agencies ad-
ministerin
g a State Medicaid program un-
der title XI
X of the Social Security Act,
a State’s ch
ildren’s health insurance pro-
gram under t
itle XXI of the Social Se-
curity Act
(CHIP), or a basic health pro-
gram (BHP)
under section 1331 of the Af-
fordable C
are Act (if applicable). Section
6103(l)(2
1) identifies specific items of re-
turn info
rmation that will be disclosed. For
taxpayer
s whose income is relevant in de-
terminin
g eligibility for an insurance af-
fordabil
ity program, Medicaid, CHIP, or
BHP, sect
ion 6103(l)(21) explicitly autho-
rizes th
e disclosure of the following items
of retur
n information: taxpayer identity
informa
tion, filing status, the number of
individ
uals for whom a deduction is al-
lowed u
nder section 151 of the Code, the
taxpay
er’s modified adjusted gross income
as defi
ned under section 36B of the Code
(MAGI)
, and the taxable year to which any
such in
formation relates or, alternatively,
that su
ch information is not available. Sec-
tion 6
103(l)(21) also authorizes the disclo-
sure o
f such other information prescribed
by reg
ulation that might indicate whether
an ind
ividual is eligible for the premium
tax cr
edit under section 36B of the Code, or
cost
-sharing reductions under section 1402
of th
e Affordable Care Act, and the amount
ther
eof.
The T
reasury Department and the IRS
publ
ished a notice of proposed rulemak-
ing (
REG–119632–11) in theFederal
Regi
ster,77 FR 25378, on April 30,
201
2, proposing additional items to be
dis
closed pursuant to section 6103(l)(21).
Apu
blic hearing was scheduled for
Aug
ust 31, 2012. The IRS did not re-
cei
ve any requests to testify at the pub-
lic
hearing, and the public hearing was
ca
ncelled. Five written comments re-
sp
onding to the proposed regulations
we
re received. All comments were con-
si
dered and are available for public in-
sp
ection athttp://www.regulations.gov
or upon reques
t. Additionally, the IRS
received info
rmation from the Department
of Health and H
uman Services (HHS)
that pertain
s to the disclosure of items
pursuant to s
ection 6103(l)(21). After
considerati
on of the written comments
and the infor
mationprovidedtotheIRS
by HHS, the p
roposed regulations under
section 610
3(l)(21) are adopted as revised
by this fina
l regulation. The public
comments, t
he information HHS provided
to the IRS, a
nd the revisions are discussed
in the foll
owing section.
Summary of
Comments and
Explanati
on of Provisions
The IRS re
ceived five written com-
ments in r
esponse to the proposed reg-
ulations
. Two commentators expressed
support f
or the proposed regulations and
had no su
ggested changes. A third com-
mentato
r provided a comment, discussed
in this s
ection, concerning the items dis-
closed u
nder section 6103(l)(21) and the
propos
ed regulations. The remaining com-
mentat
ors made comments, also discussed
in this
section, pertaining to section 6103
genera
lly, but did not make comments
specif
ic to the proposed regulations un-
der sec
tion 6103(l)(21) and the additional
items
to be disclosed under that section.
Acomm
entator stated that the pre-
mium t
ax credit under section 36B applies
to low
income filers. The commentator
state
d that, when a filer’s income exceeds
the ma
ximum income allowable for the
cred
it, the IRS should only disclose that
the i
ndividual’s income is above the max-
imum
allowable amount, and not provide
the r
eturn information as described by
sect
ion 6103(l)(21) or the proposed regu-
lati
ons. As noted in the preamble to the
pro
posed regulations, the Affordable Care
Act
and HHS’s final regulations (77 FR
at 1
8456–18458) require that Exchanges
use
alternative means to verify income
whe
re information is not available from,
or v
erified by, the IRS. Providing the spe-
ci
fic delineated items described by section
61
03(l)(21) and these regulations, as op-
po
sed to simply stating that an applicant’s
in
come is above the threshold for a pre-
mi
um tax credit, will inform an Exchange
2013–36 I.R.B.169September 3, 2013

of the degree to which alternative verifica-
tion may be needed. Therefore, disclosing
these items to an Exchange will assist the
Exchange in determining an individual’s
eligibility for, and the amount of, any ad-
vance payment of the premium tax credit
or cost-sharing reductions. Accordingly,
after careful consideration of the com-
ment, the regulations remain unchanged.
The commentator additionally noted
that taxpayers should be able to request
that the IRS tell themif anyone requested
information about their return using this
regulation. No changes were made to these
regulations as a result of this comment.
Section 6103(l)(21) and these regulations
concern the disclosure of items of return
information to HHS, Exchanges, and cer-
tain State agencies, and not the disclosure
of whether anyone requested a taxpayer’s
return information under section 6103
in general. Section 6103(p)(3) describes
certain requirements with respect to the
maintenance of a system of records or ac-
countings of all requests for inspection or
disclosure of return or return information
under section 6103 generally.
The commentator also stated that the
regulation should contain a penalty for
individuals that fraudulently request in-
formation. The commentator further sug-
gested that the regulation should contain
a penalty for HHS, Exchanges, and any
other organizations that do not comply
with the data protection requirements. No
changes were made in response to these
comments. Section 6103(l)(21) does not
permit the Treasury Department or the
IRS to establish penalties under these
regulations. The Treasury Department
and the IRS note, however, that section
1411(h)(1)(B) of the Affordable Care Act
states that any person who knowingly
and willfully provides false or fraudulent
information shall be subject to a penalty
of not more than $250,000 in addition
to any other penalties prescribed by law.
Additionally, penalties may be imposed
under sections 7213, 7213A, and 7431 of
the Code for unauthorized disclosures of
return information obtained under section
6103(l)(21).
One commentator expressed concerns
about taxpayer privacy and wanted as-
surances that HHS and other agencies
receiving return information are required
to adopt the safeguarding requirements
of section 6103. By operation of law,
the safeguards established by section
6103(p)(4) apply to those entities de-
scribed in section 6103(l)(21), namely
HHS, the Exchanges established under
theAffordableCareAct,andtheState
agencies administering a State program
described under section 6103(l)(21), as
well as their contractors. No regula-
tory changes are needed to have sec-
tion 6103(p)(4) apply to those entities.
The commentator also noted that section
1411(g)(2)(b) of the Affordable Care Act
imposes penalties on HHS employees
and contractors who improperly use or
disclose tax return information, and sug-
gested that the regulations should clarify
that this penalty may be imposed in addi-
tion to the penalty imposed under section
7213 of the Code when there are certain
unauthorized disclosures of return infor-
mation. The commentator is correct that
both statutory provisions provide for civil
or criminal penalties for the improper use
or disclosure of tax return information.
Because those provisions govern the im-
position of those penalties, no changes are
needed with respect to these regulations.
Finally, another commentator remarked
about the timing and characteristics of
particular communications made from
Exchanges to an applicant, stating that
notices should be sent throughout the ap-
plication process. The commentator stated
the notices should be in language appro-
priate for all populations, suggesting that
existing guidance from the Department
of Justice (DOJ) and HHS on providing
appropriate documents to limited English
proficiency populations may be helpful.
These comments regarding the timing and
characteristics of such communications
are outside the scope of section 6103(l)(21)
and these regulations.
After the Treasury Department and the
IRS published the proposed regulations,
HHS informed the IRS that it may be re-
ceiving certain items of information from
the Social Security Administration (SSA).
One of the items that HHS expects to re-
ceive from SSA is the total amount of the
social security benefits for each individual
whose income is relevant to the determina-
tion of eligibility for health insurance af-
fordability programs described in the Af-
fordable Care Act. If the IRS also pro-
vides HHS with the amount of social se-
curity benefits included in gross income
under section 86, an Exchange or State
agency will be generally able to determine
the amount of social security benefits not
included in gross income under section 86.
This amount is one of the components of
an individual’s MAGI. Eligibility for the
premium tax credit, and advance payments
of the credit, is based on the household in-
come of the applicant, which is the sum of
the MAGI of those individuals who com-
prise the household. As a result, providing
the amount of social security benefits in-
cluded in gross income under section 86,
along with other items contained in these
regulations, will help an Exchange deter-
mine whether a taxpayer is eligible for
the premium tax credit under section 36B
or cost-sharing reductions under section
1402 of the Affordable Care Act, and the
amount of the credit or reductions. Section
301.6103(l)(21)–1(a) of these final regula-
tions, therefore, includes the amount of so-
cial security benefits included in gross in-
come under section 86 as an item that will
be disclosed to HHS pursuant to section
6103(l)(21).
In the proposed regulations, a rele-
vant taxpayer, for whom return informa-
tion would be disclosed under section
6103(l)(21), was defined as any individual
listed by name and social security number
or adoption taxpayer identification num-
ber (ATIN) on an application submitted
pursuant to Title I, Subtitle E, of the Af-
fordable Care Act whose income may bear
upon a determination of eligibility for a
health insurance affordability program.
Subsequent to the publication of the pro-
posed regulations, the IRS recognized that
requests relating to ATINs would not be
received because individuals’ identifica-
tion numbers will first be verified against
SSA records. Under section 1411(c) of the
Affordable Care Act, HHS is to provide
the name, date of birth, and social security
number of each individual on the applica-
tion to the SSA for a determination that the
information provided is consistent with
the information in SSA records. HHS will
only request return information for those
individuals whose numbers are verified.
Since the SSA has no records of ATINs,
these numbers will not be verified and
HHS will not request return information
for individuals using adoption taxpayer
identification numbers. While the income
of an individual with an ATIN may be
relevant for determining household in-
come and, therefore, eligibility for a health
September 3, 20131702013–36 I.R.B.

insurance affordability program, an Ex-
change or State agency will use alternate
verification procedures as provided under
regulations prescribed by HHS, including
procedures under part 155.320 of chapter
45 of the Code of Federal Regulations,
instead of getting return information un-
der section 6103(l)(21). Accordingly,
§301.6103(l)(21)–1(b) of these final regu-
lations removes the reference to ATINs.
Special Analyses
It has been determined that these fi-
nal regulations are not a significant regu-
latory action as defined in Executive Order
12866, as supplemented by Executive Or-
der 13563. Therefore, a regulatory assess-
ment is not required. It has also been de-
termined that, because the regulations pro-
posed do not impose a collection of infor-
mation on small entities, the Regulatory
Flexibility Act (5 U.S.C. chapter 6) does
not apply. Pursuant to section 7805(f) of
the Code, the notice of proposed rulemak-
ing was submitted to the Chief Counsel for
Advocacy of the Small Business Adminis-
tration for comment on its impact on small
business, and no comments were received
from that office.
Drafting Information
The principal author of the regulations
is Steven L. Karon of the Office of the
Associate Chief Counsel, Procedure and
Administration.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR part 301 is
amended as follows:
PART 301 — PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation for
part301isamendedbyaddingtheentryfor
§301.6103(l)(21) to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6103(l)(21)-(1) also issued
under 26 U.S.C. 6103(l)(21) and 6103(q).
***
Par. 2. Add §301.6103(l)(21)–1 to read
as follows:
§301.6103(l)(21)–1 Disclosure of return
information to the Department of
Health and Human Services to carry
out eligibility requirements for health
insurance affordability programs.
(a)General rule. Pursuant to the pro-
visions of section 6103(l)(21)(A) of the
Internal Revenue Code, officers and em-
ployees of the Internal Revenue Service
will disclose, upon written request, for
each relevant taxpayer on a single applica-
tion those items of return information that
are described under section 6103(l)(21)(A)
and paragraphs (a)(1) through (7) of this
section, for the reference tax year, as
applicable, to officers, employees, and
contractors of the Department of Health
and Human Services.Such information
shall be provided solely for purposes of,
and to the extent necessary in, establishing
an individual’s eligibility for participation
in an Exchange established under the Pa-
tient Protection and Affordable Care Act,
verifying the appropriate amount of any
premium tax credit under section 36B or
cost-sharing reduction under section 1402
of the Patient Protection and Affordable
Care Act, or determining eligibility for
the State programs described in section
6103(l)(21)(A).
1. With respect to each relevant taxpayer
for the reference tax year where the
amount of social security benefits not
included in gross income under sec-
tion 86 of the Internal Revenue Code
of that relevant taxpayer is unavail-
able:
i. The aggregate amount of the fol-
lowing items of return informa-
tion —
A. Adjusted gross income, as
defined by section 62 of the
Internal Revenue Code;
B. Any amount excluded from
gross income under section
911 of the Internal Revenue
Code; and
C. Any amount of interest re-
ceived or accrued by the tax-
payer during the taxable year
that is exempt from tax.
ii. Information indicating that the
amount of social security bene-
fits not included in gross income
under section 86 of the Internal
Revenue Code is unavailable.
2. Adjusted gross income, as defined by
section 62 of the Internal Revenue
Code, of a relevant taxpayer for the
reference tax year, in circumstances
where the modified adjusted gross in-
come (MAGI), as defined by section
36B(d)(2)(B) of the Internal Rev-
enue Code, of that relevant taxpayer
is unavailable, as well as informa-
tion indicating that the components
of MAGI other than adjusted gross
income must be taken into account to
determine MAGI;
3. The amount of social security bene-
fits of the relevant taxpayer that is in-
cluded in gross income under section
86 of the Internal Revenue Code for
the reference tax year;
4. Information indicating that certain
return information of a relevant tax-
payer is unavailable for the reference
tax year because the relevant taxpayer
jointly filed a U.S. Individual Income
Tax Return for that year with a spouse
who is not a relevant taxpayer listed
on the same application;
5. Information indicating that, although
a return for an individual identified on
the application as a relevant taxpayer
for the reference tax year is available,
return information is not being pro-
vided because of possible authentica-
tion issues with respect to the identity
of the relevant taxpayer;
6. Information indicating that a relevant
taxpayer who is identified as a depen-
dent for the tax year in which the pre-
mium tax credit under section 36B of
the Internal Revenue Code would be
claimed, did not have a filing require-
ment for the reference tax year based
upon the U.S. Individual Income Tax
Return the relevant taxpayer filed for
the reference tax year; and
7. Information indicating that a relevant
taxpayer who received advance pay-
ments of the premium tax credit in the
reference tax year did not file a tax
return for the reference tax year rec-
onciling the advance payments of the
premium tax credit with any premium
tax credit under section 36B of the In-
ternal Revenue Code available for that
year.
(b)Relevant taxpayer defined.Forpur-
poses of paragraph (a) of this section, a
relevant taxpayer is defined to be any in-
dividual listed, by name and social secu-
rity number, on an application submitted
2013–36 I.R.B.171September 3, 2013

pursuant to Title I, Subtitle E, of the Pa-
tient Protection and Affordable Care Act,
whose income may bear upon a determi-
nation of any advance payment of any pre-
mium tax credit under section 36B of the
Internal Revenue Code, cost-sharing re-
duction under section 1402 of the Patient
Protection and Affordable Care Act, or el-
igibility for any program described in sec-
tion 6103(l)(21)(A) of the Internal Rev-
enue Code.
(c)Reference tax year defined. For pur-
poses of section 6103(l)(21)(A) of the In-
ternal Revenue Code and this section, the
reference tax year is the first calendar year
or, where no return information is avail-
able in that year, the second calendar year,
prior to the submission of an application
pursuant to Title I, Subtitle E, of the Pa-
tient Protection and Affordable Care Act.
(d)Effective/applicability date.This
section applies to disclosures to the De-
partment of Health and Human Services on
or after August 14, 2013.
Beth Tucker,
Acting Deputy Commissioner for
Services and Enforcement.
Approved July 10, 2013.
Mark J. Mazur,
Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on August 13,
2013, 8:45 a.m., and published in the issue of the Federal
Register for August 14, 2013, 78 F.R. 49367)
September 3, 20131722013–36 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
2013 Marginal Production
Rates
Notice 2013–53
This notice announces the applicable
percentage under § 613A of the Internal
RevenueCodetobeusedindetermining
percentage depletion for marginal proper-
ties for the 2013 calendar year.
Section 613A(c)(6)(C) defines the term
“applicable percentage” for purposes of
determining percentage depletion for oil
and gas produced from marginal proper-
ties. The applicable percentage is the per-
centage (not greater than 25 percent) equal
to the sum of 15 percent, plus one per-
centage point for each whole dollar by
which $20 exceeds the reference price (de-
termined under § 45K(d)(2)(C)) for crude
oil for the calendar year preceding the cal-
endar year in which the taxable year be-
gins. The reference price determined un-
der § 45K(d)(2)(C) for the 2012 calendar
year is $94.53.
The following table contains the ap-
plicable percentages for marginal produc-
tion for taxable years beginning in calen-
dar years 1991 through 2013.
Notice 2013–53
APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION
Calendar YearApplicable Percentage
1991
15 percent
199218 percent
199319 percent
199420 percent
1995
21 percent
199620 percent
199716 percent
199817 percent
199924 percent
200019 percent
2001
15 percent
2002
15 percent
2003
15 percent
2004
15 percent
200515 percent
2006
15 percent
2007
15 percent
2008
15 percent
2009
15 percent
2010
15 percent
2011
15 percent
2012
15 percent
2013
15 percent
The principal author of this notice
is Martha M. Garcia of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice contact
Ms. Garcia at (202) 622–3110 (not a
toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of
correct tax liability.
(Also: Part I, §§ 1361, 1362; 1.1361–1, 1.1361–3,
1.1362–4, 1.1362–6, 301.7701–3, 301.9100–1,
301.9100–3.)
Rev. Proc. 2013–30
S
ECTION 1. PURPOSE
This revenue procedure facilitates the
grant of relief to taxpayers that request
relief previously provided in numerous
other revenue procedures by consolidating
theprovisionsofthose revenue procedures
into one revenue procedure and extending
relief in certain circumstances. This rev-
enue procedure modifies and supersedes
Rev. Proc. 2003–43, 2003–1 C.B. 998;
Rev. Proc. 2004–48, 2004–2 C.B. 172;
and Rev. Proc. 2007–62, 2007–2 C.B. 786
for taxpayers to make late S corporation
elections, Electing Small Business Trust
(ESBT) elections, Qualified Subchapter
S Trust (QSST) elections, Qualified Sub-
chapter S Subsidiary (QSub) elections,
and late corporate classification elections
which the taxpayer intended to take ef-
fect on the same date that the taxpayer
intended that an S corporation election for
the entity should take effect. This rev-
enue procedure also incorporates certain
relief provisions included in Rev. Proc.
97–48, 1997–2 C.B. 521, and supersedes
2013–36 I.R.B.173September 3, 2013

thereliefprovidedinSituation1ofRev.
Proc. 97–48. This revenue procedure ob-
soletes the relief provided in Situation 2
of Rev. Proc. 97–48 because such relief
is no longer available. Furthermore, this
revenue procedure incorporates certain
relief provisions included in Rev. Proc.
2004–49, 2004–2 C.B. 210, and modifies
and supersedes the relief provided in sec-
tions 4.01 and 4.02 of Rev. Proc. 2004–49.
This revenue procedure obsoletes the re-
lief provided in section 4.03 of Rev. Proc.
2004–49 because the time period for its
narrow scope of relief has expired.
This revenue procedure provides the
exclusive simplified methods for taxpay-
ers to request relief for late S corporation
elections, ESBT elections, QSST elec-
tions, QSub elections, and late corporate
classification elections which the taxpayer
intended to take effect on the same date
that the taxpayer intended that an S corpo-
ration election for the entity should take
effect. This revenue procedure provides
relief if the taxpayer satisfies the general
requirements of Section 4 and the specific
requirements applicable to that taxpayer
under Sections 5 through 7 of this revenue
procedure. Accompanying this document
is a flowchart designed to aid taxpayers in
applying this revenue procedure.
SECTION 2. BACKGROUND
.01S Corporation Elections.
(1)In General. Section 1361(a)(1) of
the Internal Revenue Code (Code) pro-
vides that the term “S corporation” means,
with respect to any taxable year, a small
business corporation forwhichanelection
under § 1362(a) is in effect for that year.
Section 1362(b)(1) provides that a
small business corporation may make an
election to be an S corporation for any
taxable year (A) at any time during the
preceding taxable year, or (B) at any time
during the taxable year and on or before
the 15th day of the 3rd month of the tax-
able year. Section 1.1362–6(a)(2) of the
Income Tax Regulations provides that a
small business corporation makes an elec-
tion to be an S corporation by filing a
completed Form 2553,Election by a Small
Business Corporation.
Under § 1362(b)(3), if an S corporation
election is made after the 15th day of the
3rd month of the taxable year and on or be-
fore the 15th day of the 3rd month of the
following taxable year, then the S corpo-
ration election is treated as made for that
following taxable year.
(2)Late S Corporation Elections. Sec-
tion 1362(b)(5) provides that if (A) an
election under § 1362(a) is made for any
taxable year (determined without regard
to § 1362(b)(3)) after the date prescribed
by § 1362(b) for making the election for
the taxable year, or no election is made for
any taxable year, and (B) the Secretary de-
termines that there was reasonable cause
for the failure to timely make the elec-
tion, the Secretarymay treat the election
as timely made for the taxable year (and
§ 1362(b)(3) shall not apply).
Rev. Proc. 97–48 and Rev. Proc.
2003–43 provide simplified methods for
taxpayers to request relief for a late S cor-
poration election in certain circumstances.
.02ESBT and QSST Elections.
(1)In General. Section 1361(b)(1)(B)
limits the permitted shareholders of an S
corporation to domestic individuals, es-
tates, certain trusts, and certain exempt or-
ganizations.
Section 1361(d)(1)(A) provides that a
QSST is a permitted S corporation share-
holder if the beneficiary of the QSST
makes an election under § 1361(d)(2).
A QSST is defined in § 1361(d)(3) as a
trust that (1) distributes or is required to
distribute all of its income to a citizen or
resident of the United States, (2) has cer-
tain trust terms, including the requirement
that there be only one income beneficiary,
(3) does not distribute any portion of the
trust corpus to anyone other than the cur-
rent income beneficiaryduringtheincome
beneficiary’s lifetime, including the time
at which the trust terminates, and (4) the
income interest of the current income
beneficiary ceases on the earlier of such
beneficiary’s death or the termination of
the trust. Section 1361(d)(1) provides, in
pertinent part, that in the case of a QSST
with respect to which a beneficiary makes
an election under § 1361(d)(2): (A) the
trust is treated as owned by a citizen or
resident of the United States, and (B) for
purposes of § 678(a), the beneficiary of the
trust is treated as the owner of that portion
of the trust that consists of stock in an S
corporation with respect to which the elec-
tion under § 1361(d)(2) is made. A QSST
election is made by signing and filing
an election statement with the applicable
Internal Revenue Service (IRS) Service
Center. Section 1.1361–1(j)(6)(iii)(A)
provides that the QSST election must
be made within the 16-day-and-2-month
period beginning on the day that the S cor-
poration stock is transferred to the trust.
Section 1361(c)(2)(A)(v) provides that
an ESBT (as defined in § 1361(e)) is a
permitted S corporation shareholder. Sec-
tion 1361(e)(1) defines an Electing Small
Business Trust (ESBT) as any trust if: (1)
the trust does not have as a beneficiary
any person other than an individual, an
estate, or an organization described in
§ 170(c)(2) through (5); (2) no interest in
the trust was acquired by purchase; and
(3) an election has been made with respect
to the trust. To qualify as an ESBT, the
trustee of the trust must make an ESBT
election by signing and filing an election
statement with the applicable IRS Service
Center. Section 1.1361–1(m)(2)(iii) pro-
vides that the ESBT election must be filed
within the time requirements prescribed
in § 1.1361–1(j)(6)(iii) for filing a QSST
election (described above).
(2)Late ESBT and QSST Elections.
Failure to properly make an election to
be treated as an ESBT or a QSST may
result in a shareholder who is not an el-
igible S corporation shareholder under
§ 1361(b)(1)(B) holding stock of the
corporation. As a result, the failure to
properly file an ESBT or QSST election
may result in an inadvertently invalid S
corporation election,or in an inadvertent
termination of an S corporation election.
Section 1362(f) grants the Secretary au-
thority to provide relief if a corporation’s S
corporation election was not effective for
the taxable year for which it was made by
reason of a failure to meet the requirements
of § 1361(b) or to acquire the required
shareholder consents. Under § 1362(f),
the Secretary may also grant relief if the
corporation’s S corporation election termi-
nated under § 1362(d)(2) or (3). A corpo-
ration is eligible for relief under this pro-
vision if (1) the Secretary determines that
the circumstances resulting in the ineffec-
tiveness or termination were inadvertent,
(2) no later than a reasonable period of
time after discovery of the circumstances
resulting in the ineffectiveness or termi-
nation, steps were taken (i) so that the S
corporation is a small business corpora-
tion, or (ii) to acquirethe required share-
holder consents, and (3) the corporation,
and each person who was a shareholder of
September 3, 20131742013–36 I.R.B.

the corporation at any time during the pe-
riod specified pursuant to § 1362(f), agrees
to make any adjustments (consistent with
the treatment of the corporation as an S
corporation) as may be required by the
Secretary with respect to the period. If
a corporation is eligible for relief under
this provision, then, notwithstanding the
circumstances resulting in the ineffective-
ness or termination, the corporation will be
treated as an S corporation during the pe-
riod specified by the Secretary.
Section 1.1362–4 sets forth additional
guidance regarding inadvertent termina-
tion relief. Section 1.1362–4(b) provides
that the corporation has the burden of es-
tablishing that, underthe relevant facts and
circumstances, the Commissioner should
determine that the termination was inad-
vertent. The fact that the terminating event
was not reasonably within the control of
the corporation and was not part of a plan
to terminate the election, or the fact that
the event took place without the knowl-
edge of the corporation, notwithstanding
its due diligence to safeguard against such
an event, tends to establish that the termi-
nation was inadvertent.
Section 1.1362–4(c) provides that a cor-
poration may request inadvertent termi-
nation relief by submitting a request for
a letter ruling. Section 1.1362–4(d) pro-
vides that the Commissioner may condi-
tion the granting of a ruling request on
any adjustments that are appropriate. Sec-
tion 1.1362–4(e) requires that the corpora-
tion and all persons who were shareholders
of the corporation at any time during the
time specified by the Commissioner con-
sent to any adjustments that the Commis-
sioner may require.
The IRS will grant relief for both the
late ESBT and QSST elections and the in-
advertently invalid S corporation election
or inadvertent termination of the S corpo-
ration election if the standard described in
§ 1362(f) for an inadvertently invalid S
corporation election or an inadvertent ter-
minationofanScorporationelectionis
satisfied.
Rev. Proc. 2003–43 provides a simpli-
fied method for taxpayers to request relief
for late ESBT and QSST elections if the
request for relief is filed within 24 months
of the due date of the election.
.03Qualified Subchapter S Subsidiary
(QSub) Elections.(1)In General. Sec-
tion 1361 generally provides that an S cor-
poration may elect to treat certain wholly
owned subsidiaries as QSubs (as defined
in § 1361(b)(3)(B)). Section 1361(b)(3)(B)
defines a QSub as a domestic corporation
that is not an ineligible corporation if (1)
an S corporation holds 100 percent of the
stock of the corporation, and (2) that S cor-
poration elects to treat the subsidiary as
a QSub. Section 1361(b)(3)(A) provides
that a corporation that is a QSub is not
treated as a separate corporation, and all
assets, liabilities, and items of income, de-
duction, and credit of the QSub are treated
as assets, liabilities, and items of income,
deduction, and credit of the parent S cor-
poration. Section 1.1361–3 describes the
time and manner for a corporation to make
a QSub election. Section 1.1361–3(a)(2)
provides that an S corporation may make a
QSub election by filing the election form
with the applicable IRS Service Center.
Form 8869,Qualified Subchapter S Sub-
sidiary Election, is used to make a QSub
election. Under § 1.1361–3(a)(3), the elec-
tion to treat a subsidiary as a QSub may be
filed at any time during the taxable year.
Section 1.1361–3(a)(4) provides that the
effective date is the date specified on the
form (provided the date specified is not
earlier than 2 months and 15 days before
the date of the filing and the date specified
is not more than 12 months after the date of
the filing), or on the date the election form
is filed if no date is specified. If an election
form specifies an effective date more than
2 months and 15 days prior to the date on
which the election form is filed, it will be
effective 2 months and 15 days prior to the
date it is filed. If an election form specifies
an effective date more than 12 months af-
ter the date on which the election is filed,
it will be effective 12 months after the date
it is filed.
(2)Late QSub Elections.Under
§ 301.9100–1(c), the Commissioner may
grant a reasonable extension of time under
the rules set forth in §§ 301.9100–2 and
301.9100–3 to make a regulatory election,
or a statutory election, under all subtitles
of the Code, except subtitles E, G, H, and
I.
Section 301.9100–1(b) defines the term
“regulatory election” as an election whose
due date is prescribed by a regulation
published in theFederal Register,ora
revenue ruling, revenue procedure, no-
tice, or announcement published in the
Internal Revenue Bulletin. Because a
QSub election is a regulatory election, the
Commissioner may permit a late QSub
election under the rules set forth in section
301.9100–3.
Sections301.9100–1through
301.9100–3 provide the standards that
the Commissioner will use to determine
whether to grant an extension of time to
make an election. Section 301.9100–2
provides automatic extensions of time
for making certain elections. Section
301.9100–3 provides extensions of time
for making elections that do not meet the
requirements of § 301.9100–2.
Requests for relief under § 301.9100–3
will be granted when the taxpayer pro-
vides the evidence to establish to the sat-
isfaction of the Commissioner that the tax-
payer acted reasonably and in good faith,
and the grant of relief will not prejudice
the interests of the Government. Section
301.9100–3(b)(1) provides that subject to
paragraphs (b)(3)(i) through (b)(3)(iii) of
§ 301.9100–3, a taxpayer is deemed to
have acted reasonably and in good faith
if the taxpayer meets one of the require-
ments in § 301.9100–3(b)(1)(i)-(v). Sec-
tion 301.9100–3(b)(1)(v) includes situa-
tions in which the taxpayer reasonably re-
lied on a qualified tax professional (includ-
ing a tax professionalemployed by the tax-
payer), and the tax professional failed to
make, or advise the taxpayer to make, the
election.
Rev. Proc. 2003–43 provides a simpli-
fied method for taxpayers to request relief
for a late QSub election if the request for
relief is filed within 24 months of the due
date of the election. Rev. Proc. 2004–49
provides alternative relief when the QSub
election terminated as a result of a trans-
fer (whether by sale or as part of a reor-
ganization under § 368(a)(1)(A), (C), or
(D) (but not as part of a reorganization un-
der § 368(a)(1)(F)) by the S corporation of
100 percent of the QSub stock to another
S corporation. Section 4.01 of Rev. Proc.
2004–49 allows the acquiring S corpora-
tion to request prospective relief by attach-
ingacompletedForm8869toitstimely
filed return (including extensions) for the
taxable year during which the transfer oc-
curred, and section 4.02 of Rev. Proc.
2004–49 provides alternative relief as pro-
vided by Rev. Proc. 2003–43. Section
4.03 of Rev. Proc 2004–49 also provides
retroactive relief for such transactions if
they occurred prior to August 16, 2004,
2013–36 I.R.B.175September 3, 2013

provided that the relief requests were filed
before August 16, 2005.
.04Entity Classification Elections.
(1)In General. Section 301.7701–2(a)
of the Procedure and Administration Reg-
ulations defines a “business entity” as any
entity recognized for federal tax purposes
that is not properly classified as a trust un-
der § 301.7701–4 or otherwise subject to
special treatment under the Code.
Section 301.7701–3(a) provides that a
business entity that is not classified as a
corporation under § 301.7701–2(b)(1), (3),
(4), (5), (6), (7), or (8) (an “eligible entity”)
can elect its classification for federal tax
purposes.
Section 301.7701–3(b)(1) provides
that, except as otherwise provided in
§ 301.7701–3(b)(3), unless the entity
elects otherwise, a domestic eligible entity
is (i) a partnership if it has two or more
members, or (ii) disregarded as an entity
separate from its owner if it has a single
owner.
Section 301.7701–3(c)(1)(i) pro-
vides that, except as provided in
§ 301.7701–3(c)(1)(iv) and (v), an eligible
entity may elect to be classified other than
as provided in § 301.7701–3(b) by filing
Form 8832,Entity Classification Election,
with the applicable IRS Service Center
designated on Form 8832.
Section 301.7701–3(c)(1)(iii) provides
that the entity classification election will
be effective on the date specified by the
entity on the Form 8832 or on the date
filed if no date is specified on the election
form. The effective date specified on Form
8832 cannot be more than 75 days prior
to the date on which the election is filed
and cannot be more than 12 months after
the date on which the election is filed. If
an election specifies an effective date more
than 75 days prior to the date on which
the election is filed, the election will be
effective 75 days prior to the date it was
filed. If an election specifies an effective
date more than 12 months from the date
on which the election is filed, the election
will be effective 12 months after the date
the election was filed.
(2)Late Entity Classification Elections.
Under § 301.9100–1(c), the Commissioner
may grant a reasonable extension of time
under the rules set forth in §§ 301.9100–2
and 301.9100–3 to make a regulatory elec-
tion, or a statutory election, under all sub-
titles of the Code, except subtitles E, G, H,
and I.
Section 301.9100–1(b) defines the term
“regulatory election” as an election whose
due date is prescribed by a regulation
published in theFederal Register,ora
revenue ruling, revenue procedure, notice,
or announcement published in the Internal
Revenue Bulletin. Because an entity clas-
sification election is a regulatory election,
the Commissioner may permit a late entity
classification election under the rules set
forth in § 301.9100–3.
Sections301.9100–1through
301.9100–3 provide the standards that
the Commissioner will use to determine
whether to grant an extension of time to
make an election. Section 301.9100–2
provides automatic extensions of time
for making certainelections. Section
301.9100–3 provides extensions of time
for making elections that do not meet the
requirements of § 301.9100–2. Requests
for relief under § 301.9100–3 will be
granted when the taxpayer provides the
evidence to establish to the satisfaction of
the Commissioner that the taxpayer acted
reasonably and in good faith, and the grant
of relief will not prejudice the interests of
the Government.
Rev. Proc. 2009–41, 2009–2 C.B.
439, provides relief with respect to late
entity classification elections for an eligi-
ble entity’s initial classification election or
change in classification election. Eligi-
ble entities meeting the requirements un-
der Section 4 of that revenue procedure
must request relief within 3 years and 75
days of the requested effective date of the
eligible entity’s classification election.
Under § 301.7701–3(c)(1)(v)(C), an
eligible entity that timely elects to be an S
corporation under § 1362(a)(1) is treated
as having made an election to be classi-
fied as an association, provided that (as
of the effective date of the election under
§ 1362(a)(1)) the entity meets all other
requirements to qualify as a small busi-
ness corporation under § 1361(b). Section
301.7701–3(c)(1)(v)(C) further provides
that, subject to § 301.7701–3(c)(1)(iv),
the deemed election to be classified as
an association generally will apply as of
the effective date of the S corporation
election and will remain in effect until
the entity makes a valid election under
§ 301.7701–3(c)(1)(i) to be classified as
other than an association.
Rev. Proc. 2004–48 and Rev. Proc
2007–62 provide simplified methods for
taxpayers to request relief for a late S cor-
poration election and a late corporate clas-
sification election intended to be effective
on the same date as the S corporation elec-
tion.
SECTION 3. SCOPE
.01In General. This revenue proce-
dure expands and consolidates relief provi-
sions included in prior revenue procedures
that provide a simplified method for tax-
payers to request relief for late S corpora-
tion elections, ESBT elections, QSST elec-
tions, QSub elections, and corporate clas-
sification elections intended to be effective
on the same date as the S corporation elec-
tion for the entity.
This revenue procedure provides pro-
cedures for situations within its scope
that are in lieu of the letter ruling process
ordinarily used to obtain relief for a
late Election Under Subchapter S (as
defined in Section 4.01(5)) pursuant to
§ 1362(b)(5), § 1362(f), or § 301.9100–1
and § 301.9100–3. Accordingly, user fees
do not apply to corrective actions under
this revenue procedure.
Section 4.01 of this revenue procedure
provides a glossary of certain terms used
in this revenue procedure. Section 4.02
of this revenue procedure provides the
general requirements for relief for all late
Elections Under Subchapter S. Section
4.03 of this revenue procedure provides
procedural requirements for relief for all
late Elections Under Subchapter S. Section
4.04 of this revenue procedure provides
additional procedural requirements for re-
lief when one or more Requesting Entities
(as defined in Section 4.01(6)) request re-
lief for multiple late elections with respect
to a single S corporation. Section 5 of this
revenue procedure provides a simplified
method for taxpayers to request relief for
late S corporation elections (which may
or may not include a Deemed Entity Clas-
sification Election (as defined in Section
4.01(1) of this revenue procedure)). Sec-
tion 6 of this revenue procedure provides a
simplified method for taxpayers to request
relief for late ESBT and QSST elections.
Section 7 of this revenue procedure pro-
vides a simplified method for taxpayers to
request relief for late QSub elections.
September 3, 20131762013–36 I.R.B.

.02Relief if this Revenue Procedure is
not Applicable. An entity that does not
meet the requirements for relief or is de-
nied relief under this revenue procedure
may seek relief by requesting a letter rul-
ing. The procedural requirements for re-
questing a letter ruling are described in
Rev. Proc. 2013–1, 2013–1 I.R.B. 1, or
its successors.
SECTION 4. DEFINITIONS
AND REQUIREMENTS FOR
RELIEF UNDER THIS REVENUE
PROCEDURE.
.01Definitions.
(1)Deemed Entity Classification Elec-
tion. For purposes of this revenue proce-
dure, a Deemed Entity Classification Elec-
tion occurs when an eligible entity that
timely elects to be an S corporation under
§ 1362(a)(1) is treated as having made an
election to be classified as an association
under § 301.7701–3(c)(1)(v)(C), provided
that (as of the Effective Date of the elec-
tion under § 1362(a)(1)) the entity meets
all other requirements to qualify as a small
business corporation under § 1361(b).
(2)DueDateoftheElectionUnder
Subchapter S. For purposes of this revenue
procedure, the Due Date of the Election
Under Subchapter S will vary depending
on the type of election sought. For a cor-
poration (or an eligible entity to which
a Deemed Entity Classification Election
under § 301.7701–3(c)(1)(v)(C) applies)
that requests to be treated as an S corpora-
tion, the Due Date of the Election Under
Subchapter S is specified by § 1362(b).
For ESBT or QSST elections, the Due
Date of the Election Under Subchapter S
is specified by § 1.1361–1(m)(2)(iii) or
§ 1.1361–1(j)(6)(iii), respectively. The
Due Date of the Election Under Sub-
chapter S for a parent S corporation to
make an election to treat a subsidiary as
a QSub on a given date is specified by
§ 1.1361–3(a)(3).
(3)Effective Date. For purposes of this
revenue procedure, the Effective Date is
the date on which the S corporation elec-
tion, ESBT election(s), QSST election(s),
QSub election(s), or corporate classifica-
tion election is intended to be effective.
(4)Election Form. For purposes of
this revenue procedure, the Election
Form refers to Form 2553 for S cor-
poration elections (including a Deemed
Entity Classification Election under
§ 301.7701–3(c)(1)(v)(C)), separate state-
ments made by electing ESBTs under
§ 1.1361–1(m)(2), Form 2553 and sepa-
rate statements made by electing QSSTs
under § 1.1361–1(j)(6), and Form 8869
for QSub Elections.
(5)Election Under Subchapter S.For
purposes of this revenue procedure, Elec-
tion Under Subchapter S refers to an elec-
tion by a corporation (or an eligible entity
to which a Deemed Entity Classification
Election under § 301.7701–3(c)(1)(v)(C)
will apply), an election by a trustee to treat
a trust as an ESBT under § 1361(e), an
election by a trust beneficiary to treat a
trust as a QSST under § 1361(d), or an
election by a parent S corporation to treat a
subsidiary as a QSub under § 1361(b)(3).
(6)Requesting Entity. For purposes of
this revenue procedure, the Requesting En-
tity is a corporation (or an eligible entity
to which a Deemed Entity Classification
Election under § 301.7701–3(c)(1)(v)(C)
will apply) seeking to be treated as an S
corporation under § 1362, a trustee seeking
to treat a trust as an ESBT under § 1361(e),
a trust beneficiary seeking to treat a trust as
a QSST under § 1361(d), or a parent S cor-
poration seeking to treat a subsidiary as a
QSub under § 1361(b)(3).
.02General Requirements for Relief.In
addition to the specific requirements for
relief described in Sections 5, 6, or 7 of this
revenue procedure, the following require-
ments must be met:
(1) The Requesting Entity intended to
be classified as an S corporation, intended
the trust to be an ESBT, intended the trust
to be a QSST, or intended to treat a sub-
sidiary corporation as a QSub as of the Ef-
fective Date;
(2) The Requesting Entity requests re-
lief under this revenue procedure within 3
years and 75 days after the Effective Date
(except in the case of corporations request-
ing relief under Section 5.04 of this rev-
enue procedure);
(3) The failure to qualify as an S corpo-
ration, ESBT, QSST, or QSub as of the Ef-
fective Date was solely because the Elec-
tion Under Subchapter S was not timely
filed by the Due Date of the Election Un-
der Subchapter S; and
(4) In the case of a request for relief for
a late S corporation or QSub election, the
Requesting Entity has reasonable cause for
its failure to make thetimely Election Un-
der Subchapter S and has acted diligently
to correct the mistake upon its discovery.
In the case of a request for relief for an
inadvertently invalid S corporation elec-
tion or an inadvertent termination of an S
corporation election due to the failure to
make the timely ESBT or QSST election,
the failure to file the timely Election Un-
der Subchapter S was inadvertent and the S
corporation and the person or entity seek-
ing relief acted diligently to correct the
mistake upon its discovery.
.03General Procedural Requirements
for Relief.
(1)In general. The Requesting En-
tity may request relief for a late Election
Under Subchapter S by properly complet-
ing the Election Form(s) and attaching
the supporting documents as described
in Sections 5, 6, and 7, as applicable.
In addition to any supporting documents
described in Sections 5, 6, and 7, as ap-
plicable, a properlycompleted Election
Form must include a statement (the “Rea-
sonable Cause/Inadvertence Statement”)
from the Requesting Entity that complies
with Section 4.03(3) of this revenue pro-
cedure and that describes (i) its reasonable
cause for failure to timely file the Election
Under Subchapter S (in the case of late S
corporation or QSub elections) or that the
failure to timely file the Election Under
Subchapter S was inadvertent (in the case
of late QSST or ESBT elections), and
(ii) its diligent actions to correct the mis-
take upon its discovery. The applicable
Election Form must state at the top of the
document “FILED PURSUANT TO REV.
PROC. 2013–30.”
(2)Filing the Election Form with the
IRS Service Center. The Requesting En-
tity must file the applicable Election Form
with the applicable IRS Service Center by
either:
(a)AttachingtheElectionFormtothe
S corporation’s current year Form 1120S.
In the case of an S corporation that has
filed all Forms 1120S for tax years be-
tween the Effective Date and the current
year, the Election Form(s) can be attached
to the current year Form 1120S as long
as the current year Form 1120S is filed
within 3 years and 75 days after the Effec-
tive Date. An extension of time to file the
current year Form 1120S will not extend
the due date for relief under this revenue
procedure beyond 3 years and 75 days fol-
lowing the Effective Date. For example,
2013–36 I.R.B.177September 3, 2013

if the extended due date of tax year 2016
Form 1120S is September 15, 2017, an
Election Form for a late QSST Election
with an Effective Date of June 1, 2014
can be attached to the 2016 Form 1120S
only if the 2016 Form 1120S is filed be-
fore August 15, 2017 (which is 3 years
and75daysfollowingtheJune1,2014
Effective Date). The Form 1120S must
state at the top “INCLUDES LATE ELEC-
TION(S) FILED PURSUANT TO REV.
PROC. 2013–30” or comply with specific
instructions included with the Form 1120S
instructions;
(b)Attaching the Election Form to one
of the S corporation’s late filed prior year
Forms 1120S.In the case of an S corpo-
ration that has not filed Form 1120S (or
any other income tax return or informa-
tion return (within the meaning of Subpart
A of Part III of Subchapter A of Chap-
ter 61)) for the tax year including the Ef-
fective Date or any year following the Ef-
fective Date, an Election Form may be at-
tached to the Form 1120S for the year in-
cluding the Effective Date as long as (i) the
Form 1120S for the year including the Ef-
fective Date is filed within 3 years and 75
days after the Effective Date, and (ii) all
other delinquent Forms 1120S are filed si-
multaneously and consistently with the re-
quested relief. For example, if an S cor-
porationintendedtomakeaQSubElec-
tion with an Effective Date of June 1, 2012,
but it failed to file any income tax returns,
it can attach an Election Form to a late
filed 2012 Form 1120S only if the late filed
2012 Form 1120S is filed before August
15, 2015 (which is 3 years and 75 days
following the June 1, 2012 Effective Date)
and all other delinquent Forms 1120S are
filed simultaneously and consistently with
the requested relief. The Form 1120S must
state at the top “INCLUDES LATE ELEC-
TION(S) FILED PURSUANT TO REV.
PROC. 2013–30” or comply with specific
instructions included with the Form 1120S
instructions; or
(c)Filing Election Form independent of
Form 1120S. The Requesting Entity can
submit the Election Form directly to the
applicable IRS Service Center within 3
years and 75 days after the Effective Date.
(3)Supporting statements must be
signed under Penalties of Perjury.The
Reasonable Cause/Inadvertence Statement
(required by Section 4.03(1)) and other
statements required by Sections 5, 6, and
7, as applicable, must each contain a dated
declaration that states: “Under penalties
of perjury, I (we) declare that I (we) have
examined this election, including accom-
panying documents, and, to the best of my
(our) knowledge and belief, the election
contains all the relevant facts relating to
the election, and such facts are true, cor-
rect, and complete.” An officer of the S
corporation authorized to sign, the trustee
of the ESBT, the current income benefi-
ciary of the QSST, or a shareholder, as
applicable, must sign the declaration.
.04Supplemental procedural require-
ments when seeking relief for multiple
late elections. If one or more Requesting
Entities are seeking relief under this rev-
enue procedure with respect to a single
S corporation, all of the Election Forms
can be filed at the same time using one of
the methods described in Section 4.03(2).
When multiple requests for relief are sub-
mitted simultaneously, each application
for relief must independently comply with
the procedural requirements in Section
4.03(1). However, there is no require-
ment that all Requesting Entities must
file requests for relief under this revenue
procedure with respect to a single S cor-
poration simultaneously. An application
for relief under this revenue procedure
by a Requesting Entity will not prejudice
subsequent relief requests by the same
Requesting Entity, or other Requesting
Entities, with respect to a single S corpo-
ration.
.05Relief for Late Election Under Sub-
chapter S. Upon receipt of a completed re-
quest for relief under this revenue proce-
dure, the IRS will determine whether the
requirements for granting additional time
to file the Election Under Subchapter S
have been satisfied and will notify the Re-
questing Entity(s) of the result of this de-
termination.
SECTION 5. RELIEF FOR LATE S
CORPORATION ELECTIONS.
.01Form 2553. A Requesting Entity
seeking relief for a late S corporation elec-
tion must file a completed Form 2553,
signed by (1) an officer of the corporation
authorized to sign, and (2) all persons who
were shareholders at any time during the
period that began on the first day of the tax-
able year for which the election is to be ef-
fective and ends on the day the completed
Election Form is filed.
.02Supplemental materials. The com-
pleted Election Form must include state-
ments from all shareholders during the pe-
riod between the date the S corporation
election was to have become effective and
the date the completed Election Form is
filed that they have reported their income
on all affected returns consistent with the S
corporation election for the year the elec-
tion should have been filed and for all sub-
sequent years. Such statements must com-
ply with the requirement in Section 4.03(3)
of this revenue procedure.
.03Additional materials for a late cor-
porate classification election intended to
be effective on the same date that the S
corporation election was intended to be
effective. In addition to the materials re-
quired under Section 5.02 of this revenue
procedure, in the case of a late corporate
classification election intended to be effec-
tiveonthesamedatethattheScorpora-
tion election was intended to be effective,
the completed Election Form must also in-
clude the following representations, which
must comply with the requirement in Sec-
tion 4.03(3) of this revenue procedure:
(1) The Requesting Entity is an eligible
entity as defined in § 301.7701–3(a);
(2) The Requesting Entity intended to
be classified as a corporation as of the Ef-
fective Date of the S corporation status;
(3) The Requesting Entity fails to
qualify as a corporation solely because
Form 8832 was not timely filed under
§ 301.7701–3(c)(1)(i), or Form 8832 was
not deemed to have been filed under
§ 301.7701–3(c)(1)(v)(C);
(4) The Requesting Entity fails to qual-
ify as an S corporation on the Effective
Date of the S corporation status solely be-
cause the S corporation election was not
timely filed pursuant to § 1362(b); and
(5)(i) The Requesting Entity timely
filed all required federal tax returns and
information returns consistent with its re-
quested classification as an S corporation
for all of the years the entity intended to
be an S corporation and no inconsistent
tax or information returns have been filed
by or with respect to the entity during any
of the taxable years, or
(ii) The Requesting Entity has not filed
a federal tax or information return for the
first year in which the election was in-
tended to be effective because the due date
September 3, 20131782013–36 I.R.B.

has not passed for that year’s federal tax or
information return.
.04Relief where all returns filed as an
S corporation. The requirement for relief
imposed by Section 4.02(2) (providing that
relief must be sought within three years
and 75 days of the Effective Date) is not
applicable in the case of corporations if the
following conditions are met:
(1) The corporation is not seeking late
corporate classification election relief con-
currently with a late S corporation election
under this revenue procedure;
(2) The corporation fails to qualify as
an S corporation solely because the Form
2553 was not timely filed;
(3) The corporation and all of its share-
holders reported their income consistent
with S corporation status for the year the
S corporation election should have been
made, and for every subsequent taxable
year (if any);
(4) At least 6 months have elapsed since
the date on which the corporation filed its
tax return for the first year the corporation
intended to be an S corporation; and
(5) Neither the corporation nor any of
its shareholders was notified by the IRS
of any problem regarding the S corpora-
tion status within 6 months of the date on
which the Form 1120S for the first year
was timely filed, and
(6) The completed Election Form in-
cludes the statement(s) described in Sec-
tion 5.02 of this revenue procedure.
SECTION 6. RELIEF FOR LATE ESBT
AND QSST ELECTIONS.
.01ESBT or QSST Election. The trustee
of an ESBT or the current income benefi-
ciary of a QSST must sign and file the ap-
propriate Election Form. The completed
Election Form must include the following
statements (each of which must comply
with the requirement in Section 4.03(3) of
this revenue procedure):
(1) A statement from the trustee of the
ESBT or the current income beneficiary of
the QSST that includesthe information re-
quired by § 1.1361–1(m)(2)(ii) (in the case
of ESBT elections) or § 1.1361–1(j)(6)(ii)
(in the case of QSST elections);
(2) In the case of a QSST, a statement
from the trustee that the trust satisfies the
QSST requirements of § 1361(d)(3) and
that the income distribution requirements
have been and will continue to be met;
(3) In the case of an ESBT, a statement
from the trustee that all potential current
beneficiaries meet the shareholder require-
ments of § 1361(b)(1) and that the trust sat-
isfies the requirements of an ESBT under
§ 1361(e)(1) other than the requirement to
make an ESBT election; and
(4) Statements from all shareholders
during the period between the date the S
corporation election was to have become
effective or was terminated and the date
the completed Election Form is filed that
they have reported their income on all
affected returns consistent with the S cor-
poration election for the year the election
should have been made and for all subse-
quent years.
SECTION 7. RELIEF FOR LATE QSUB
ELECTIONS.
.01Form 8869. An S corporation seek-
ing relief for a late QSub election for a sub-
sidiary must file a completed Form 8869.
.02Supplemental materials.Thecom-
pleted Election Form must include a
statement signed by an officer of the S
corporation, which complies with the
requirement in Section 4.03(3) of this
revenue procedure, that the subsidiary cor-
poration satisfies the QSub requirements
of § 1361(b)(3)(B), and that all assets,
liabilities, and items of income, deduction,
and credit of the QSub have been treated
as assets, liabilities, and items of income,
deduction, and credit of the S corporation
on all affected returns consistent with the
QSub election for the year the election
was intended to be effective and for all
subsequent years.
SECTION 8. EFFECTIVE DATE
.01In general. Except as provided in
Section 8.02, this revenue procedure is ef-
fective September 3, 2013, the date of pub-
lication of this revenue procedure in the In-
ternal Revenue Bulletin. This revenue pro-
cedure applies to requests pending with the
IRS Service Center pursuant to Rev. Procs.
97–48, 2003–43, 2004–48, and 2007–62
on September 3, 2013, and to requests re-
ceived thereafter. It also applies to all rul-
ing requests pending in the IRS national
office on September 3, 2013, and to re-
quests for relief received thereafter.
.02Transition rule for pending letter
ruling requests.Ifanentityhasfiledare-
quest for a letter ruling seeking relief for a
late Election Under Subchapter S covered
by this revenue procedure that is pend-
ing in the national office on September 3,
2013, the entity may rely on this revenue
procedure, withdrawthat letter ruling re-
quest, and receive a refund of its user fee.
However, the national office will process
letter ruling requests pending on Septem-
ber 3, 2013, unless, prior to the earlier of
October 18, 2013, or the issuance of the
letter ruling, the entity notifies the national
office that it will rely on this revenue pro-
cedure and withdraw its letter ruling re-
quest.
SECTION 9. EFFECT ON OTHER
DOCUMENTS
This revenue procedure modifies
and supersedes Rev. Procs. 2003–43,
2004–48, and 2007–62. This revenue
procedure supersedesSituation 1 and ob-
soletes Situation 2 of Rev. Proc. 97–48.
Thisrevenueproceduremodifiesandsu-
persedes sections 4.01 and 4.02 and obso-
letes section 4.03 of Rev. Proc. 2004–49.
SECTION 10. PAPERWORK
REDUCTION ACT
The collection of information con-
tained in this revenue procedure has been
reviewed and approved by the Office of
Management and Budget (OMB) in accor-
dance with the Paperwork Reduction Act
of 1995 (44 U.S.C. 3507(d)) under control
number 1545–1548.
The collection of information in this
revenue procedure is in Section 4.03 and
Sections 5 through 7. The information will
help the IRS to determine whether a tax-
payer has met the requirements of Sec-
tions 4 through 7 of this revenue proce-
dure and whether a taxpayer has reason-
able cause for failing to make a timely
election. The collection of information is
required to make a late election pursuant
to this revenue procedure. This informa-
tion will be used to determine whether the
eligibility requirements for obtaining relief
have been met. The collection of informa-
tion is required to obtain a benefit. The
likely respondents are business or other
for-profit institutions.
The estimated total annual reporting
burden is 50,000 hours.
2013–36 I.R.B.179September 3, 2013

The estimated annual burden per re-
spondent varies from .5 hours to 1 hour, de-
pending on individual circumstances, with
an estimated average burden of 1 hour to
complete the statement. The estimated
number of respondents is 50,000.
The estimated annual frequency of re-
sponses is on occasion.
Books or records relating to a collection
of information must be retained as long
as their contents may become material in
the administration of any internal revenue
law. Generally tax returns and tax return
information are confidential, as required
by section 6103.
SECTION 11. DRAFTING
INFORMATION
The principal author of this revenue
procedure is David H. Kirk of the Office
of Associate Chief Counsel (Passthroughs
& Special Industries). For further infor-
mation regarding this revenue procedure
contact Mr. Kirk on (202) 622–3060 (not
a toll-free call).
September 3, 20131802013–36 I.R.B.

2013–36 I.R.B.181September 3, 2013

September 3, 20131822013–36 I.R.B.

2013–36 I.R.B.183September 3, 2013

September 3, 20131842013–36 I.R.B.

Part IV. Items o
fGeneralInterest
U.S.-Belgium
Agreement
Regarding OEC
DReporton
the Attributi
on of Profits to
Permanent Es
tablishments
Announcemen
t 2013–38
The followin
g is a copy of the Com-
petent Autho
rity Agreement entered into
by the compe
tent authorities of the United
States and B
elgium regarding application
of the princ
iples set forth in the Organiza-
tion for Eco
nomic Cooperation and Devel-
opment Rep
ort on the Attribution of Prof-
its to Perm
anent Establishments in the in-
terpretat
ion of Article 7 (Business Profits)
of the Conv
ention Between the Govern-
ment of the
United States of America and
the Gover
nment of the Kingdom of Bel-
gium for t
he Avoidance of Double Taxa-
tion and t
he Prevention of Fiscal Evasion
with Resp
ect to Taxes on Income, and ac-
company
ing Protocol, signed at Brussels
on Novem
ber 27, 2006.
The text
of the Competent Authority
Agreeme
nt is as follows:
Competent Authority Agreement
The competent authorities of the United
States and Belgium hereby enter into the
following agreement regarding the appli-
cation of Article 7 (Business Profits) of the
Convention between the Government of
the United States of America and the Gov-
ernment of the Kingdom of Belgium for
the Avoidance of Double Taxation and the
Prevention of Fiscal Evasion with respect
to Taxes on Income, and accompanying
Protocol, signed at Brussels on November
27, 2006 in view of the agreed understand-
ing set out in paragraph 1 of the Protocol.
This agreement is entered into under para-
graph 3 of Article 24 (Mutual Agreement
Procedure) of the Convention.
With referenc
e to Article 7 of the Con-
vention, para
graph 1 of the Protocol refers
to the applica
bility of the Organization for
Economic Coop
eration and Development
(the “OECD”) T
ransfer Pricing Guide-
lines, by ana
logy, for the purposes of de-
termining th
e business profits attributable
to a permanen
t establishment. The OECD
Report on the
Attribution of Profits to
Permanent E
stablishments (the “Report”)
was finaliz
ed in 2008 and revised in 2010
without cha
nge to the conclusions of the
Report (the
“authorized OECD approach”
(“full AOA
”)). The competent author-
ities of th
e United States and Belgium
understoo
d at the time of the adoption of
the Protoc
ol that the principles of the full
AOA as set o
ut in the Report would apply
even thou
gh the Report was not finalized
at that ti
me.
The compe
tent authorities of the United
States an
d Belgium therefore agree that,
under par
agraph 1 of the Protocol, Arti-
cle 7 of th
e Convention is to be interpreted
in a mann
er entirely consistent with the
full AOA
as set out in the Report. All
other pr
ovisions of the Convention that re-
quiread
etermination of whether an asset
or amoun
t is effectively connected or at-
tribut
able to a permanent establishment are
also to
be interpreted in a manner entirely
consis
tent with the full AOA as set out in
the Rep
ort.
Where,
in accordance with the full
AOA as s
et out in the Report, a Con-
tracti
ng State adjusts the profits that are
attri
butable to a permanent establishment
of an e
nterprise of one of the Contracting
State
s and taxes accordingly profits of the
enter
prise that have been charged to tax in
the ot
her State, the competent authorities
of th
e United States and Belgium agree
that
the other Contracting State shall, to
the e
xtent necessary to eliminate double
taxa
tion, make an appropriate adjustment
if it agrees wi
th the adjustment made
by the first-m
entioned State; if the other
Contracting S
tate does not so agree, the
Contracting S
tates shall eliminate any
double taxati
on resulting therefrom by
mutual agree
ment.
The competent
authorities understand
that this agr
eement will not alter the
process by wh
ich double taxation arising
due to the app
lication of Article 7(2) and
(3) is elimin
ated in accordance with Arti-
cle 22 (Reli
ef from Double Taxation) of
the Convent
ion. Therefore, for example,
when double
taxation arises due to the
applicatio
n of the principles of the full
AOA, the Un
ited States will continue to
eliminate
double taxation by allowing the
foreign ta
x credit provided by the laws
of the Unit
ed States, subject to the limi-
tations of
those laws. Where a taxpayer
can demon
strate to the U.S. competent
authorit
y that such double taxation has
been left
unrelieved after the application
of mechan
isms under U.S. law such as the
utiliza
tion of foreign tax credit limitation
created
by other transactions, the United
States w
ill relieve such additional double
taxatio
n.
This agr
eement generally applies to tax-
able yea
rs that begin on or after January 1,
2013; ho
wever, a taxpayer may choose to
apply t
he entirety of this agreement in both
Contra
cting States for all taxable years be-
ginnin
g after December 31, 2008.
Agreed
to by the undersigned compe-
tent au
thorities:
Michael Danilack,
United States Competent Authority
Date: June 17, 2013
Sandra Knaepen,
Belgian Competent Authority
Date: July 16, 2013
2013–36 I.R.B.185September 3, 2013

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.
September 3, 2013i2013–36 I.R.B.

Numerical Finding List
1
Bulletins 2013–27 through 2013–36
Announcements:
2013-35, 2013-27 I.R.B.46
2013-36, 2013-33 I.R.B.142
2013-37, 2013-34 I.R.B.155
2013-38, 2013-36 I.R.B.185
2013-39, 2013-35 I.R.B.167
Notices:
2013-41, 2013-29 I.R.B.60
2013-42, 2013-29 I.R.B.61
2013-43, 2013-31 I.R.B.113
2013-44, 2013-29 I.R.B.62
2013-45, 2013-31 I.R.B.116
2013-46, 2013-31 I.R.B.117
2013-47, 2013-31 I.R.B.120
2013-48, 2013-31 I.R.B.120
2013-49, 2013-32 I.R.B.127
2013-50, 2013-32 I.R.B.133
2013-51, 2013-34 I.R.B.153
2013-52, 2013-35 I.R.B.159
2013-53, 2013-36 I.R.B.173
Proposed Regulations:
REG-112815-12, 2013-35 I.R.B.162
REG-114122-12, 2013-35 I.R.B.163
REG-140789-12, 2013-32 I.R.B.136
Revenue Procedures:
2013-28, 2013-27 I.R.B.28
2013-29, 2013-33 I.R.B.141
2013-30, 2013-36 I.R.B.173
2013-32, 2013-28 I.R.B.55
Revenue Rulings:
2013-13, 2013-32 I.R.B.124
2013-15, 2013-28 I.R.B.47
Treasury Decisions:
9620, 2013-27 I.R.B.1
9621, 2013-28 I.R.B.49
9622, 2013-30 I.R.B.64
9623, 2013-30 I.R.B.73
9624, 2013-31 I.R.B.86
9625, 2013-34 I.R.B.147
9626, 2013-34 I.R.B.149
9627, 2013-35 I.R.B.156
9628, 2013-36 I.R.B.169
1
A cumulative list of all revenue rulings, revenueprocedures, Treasury decisions, etc., publishedin Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin
2013–26, dated June 24, 2013.
2013–36 I.R.B.iiSeptember 3, 2013

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2013–27 through 2013–36
Notices:
2012-74
Obsoleted by
Notice 2013-51, 2013-34 I.R.B.
153
2013-39
Amplified by
Notice 2013-47, 2013-31 I.R.B.
120
2013-40
Amplified by
Notice 2013-47, 2013-31 I.R.B.
120
Revenue Procedures:
81-60
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
83-59
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
86-42
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
90-52
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
96-30
Modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
97-48
Situation 1 superseded, Situation 2 obsoleted by
Rev. Proc. 2013-30, 2013-36 I.R.B.
173
2003-43
Modified and superseded by
Rev. Proc. 2013-30, 2013-36 I.R.B.
173
2003-48
Obsoleted in part and superseded in part by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2004-34
Modified and clarified by
Rev. Proc. 2013-29, 2013-33 I.R.B.
141
2004-48
Modified and superseded by
Rev. Proc. 2013-30, 2013-36 I.R.B.
173
2004-49
Sections 4.01 & 4.02 modified and superseded,
Section 4.03 obsoleted by
Rev. Proc. 2013-30, 2013-36 I.R.B.
173
Revenue Procedures— Continued:
2007-44
Modified by
Ann. 2013-37, 2013-34 I.R.B.
155
2007-62
Modified and superseded by
Rev. Proc. 2013-30, 2013-36 I.R.B.
173
2009-25
Pilot program discontinued by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2011-18
Modified and clarified by
Rev. Proc. 2013-29, 2013-33 I.R.B.
141
2011-49
Modified by
Ann. 2013-37, 2013-34 I.R.B.
155
2012-25
Obsoleted in part by
Rev. Proc. 2013-28, 2013-27 I.R.B.
28
2013-1
Amplified and modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
2013-3
Amplified and modified by
Rev. Proc. 2013-32, 2013-28 I.R.B.
55
Treasury Decisions:
9612
Corrected by
Ann. 2013-35, 2013-27 I.R.B.
46
9622
Corrected by
Ann. 2013-39, 2013-35 I.R.B.
167
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2013–1 through 2013–26 is in Internal Revenue Bulletin 2013–26, dated June 24, 2013.
September 3, 2013iii2013–36 I.R.B.

Internal Revenue Service
W
ashington,DC20224
Official Business
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