Internal Revenue Bulletin 2009-14 (PDF rendition): IRS Revenue Rulings

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Bulletin No. 200
9-14
April 6, 2009
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
Rev. Rul. 2009–9, page 735.
Tax treatment of losses.This ruling addresses the tax
treatment of losses from criminally fraudulent investment
arrangements that take the form of “Ponzi” schemes. Rev.
Rul. 71–381 obsoleted in part.
Rev. Rul. 2009–10, page 738.
Federal rates; adjusted federal rates; adjusted federal
long-termrateandthelong-termexemptrate.For pur-
poses of sections 382, 642, 1274, 1288, and other sections
of the Code, tables set forth the rates for April 2009.
Rev. Proc. 2009–19, page 747.
This procedure provides guidance to taxpayers on electing the
3, 4, or 5-year carryback of net operating losses of small busi-
nesses under section 1211 of the American Recovery and Rein-
vestment Tax Act of 2009.
Rev. Proc. 2009–20, page 749.
This procedure provides an optional safe harbor method for
eligible taxpayers to deduct theft losses from criminally fraud-
ulent investment arrangements that take the form of “Ponzi”
schemes.
EMPLOYEE PLANS
Notice 2009–22, page 741.
Asset valuation under section 430(g)(3)(B) as amended
by WRERA. This notice provides interim rules regarding as-
set valuation methods that are permitted to be used by single
employer defined benefit pension plans for minimum funding
purposes pursuant to changes made by the Worker, Retiree,
and Employer Recovery Act of 2008, Public Law 110–458
(WRERA). This notice also provides automatic approval for a
change in asset valuation method for plan years beginning
during 2009 to adopt any permissible asset valuation method.
EXEMPT ORGANIZATIONS
Announcement 2009–25, page 755.
This announcement invites public comments on how to improve
the Internal Revenue Service’s Exempt Organizations website
(www.irs.gov/eo).
Announcement 2009–26, page 755.
This announcement invites public comments on the implemen-
tation and content of the Exempt Organization Academic Insti-
tution Initiative.
(Continued on the next page)
Finding Lists begin on page ii.

Announcement 2009–27, page 756.
The IRS has revoked it determination that Rocky Mountain Big
Horn Sheep Foundation of Red River, MN; Skippers Learning
Center of Lake City, SC; Reliable Cash Management Associa-
tion of Buffalo Grove, IL; Pecan Park Learning Center of Jack-
son, MS; Brucker Charitable Foundation of Mountain Home, TX;
N. U. Yoga Ashrama in America of Winter, WI; Housing Develop-
ment Group of Denver, CO; National Business Fellowship Foun-
dation of Raeford, NC; GIK Foundation of Bellevue, WA; Debt
Free Foundation, Inc., of Provo, UT; Urban Light Community De-
velopment of Houston, TX; Sweet Life Program of Las Vegas,
NV; Ladoras Family Services, Inc., of Compton, CA; Robert and
Donna Herbolich Charitable Supporting of Hudson, OH; Three
Point Volunteer Fire Department, Inc., of Williamsburg, KY; Ad-
vance Practice Foundation, Inc., of Basking Ridge, NJ; Goodwill
Industries of Greater Cleveland, Inc., of Cleveland, OH; World
Project, Inc., of Temecula, CA; Sandton Lifestyles of Los An-
geles, CA; Dunn-Mason Foundation of Farmington Hills, MI; and
Walter E & Romell A King Foundation of Gary, IN; qualify as
organizations described in sections 501(c)(3) and 170(c)(2) of
the Code.
ADMINISTRATIVE
Announcement 2009–29, page 757.
This announcement provides notice of a public hearing on pro-
posed regulations (REG-158747–06, 2009–4 I.R.B. 362) relat-
ing to withholding under section 3402(t) of the Code. The reg-
ulations reflect changes in the law made by the Tax Increase
Prevention and Reconciliation Act of 2005 that require Fed-
eral, State, and local government entities to withhold income
tax when making payments to persons providing property or
services. The regulations provide guidance to assist the gov-
ernment entities in complying with section 3402(t). The regu-
lations also provide certain guidance to persons receiving pay-
ments for property or services from government entities. The
public hearing is scheduled for April 16, 2009.
April 6, 20092009–14 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d meet their tax responsibilities and by applying
the tax law with
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.
2009–14 I.R.B.April 6, 2009

April 6, 20092009–14 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 42.—Low-Income
Housing Credit
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 165.—Losses.
26 CFR 1.165–8: Theft losses.
(Also: §§ 63, 67, 68, 172, 1311, 1312, 1313, 1314,
1341.)
Tax treatment of losses.This rul-
ing addresses the tax treatment of losses
from criminally fraudulent investment ar-
rangements that take the form of “Ponzi”
schemes. Rev. Rul. 71–381 obsoleted in
part.
Rev. Rul. 2009–9
ISSUES
(1) Is a loss from criminal fraud or em-
bezzlement in a transaction entered into for
profit a theft loss or a capital loss under
§ 165 of the Internal Revenue Code?
(2) Is such a loss subject to either the
personal loss limits in § 165(h) or the limits
on itemized deductions in §§ 67 and 68?
(3) In what year is such a loss de-
ductible?
(4) How is the amount of such a loss
determined?
(5) Can such a loss create or increase a
net operating loss under § 172?
(6) Does such a loss qualify for the com-
putation of tax provided by § 1341 for
the restoration of an amount held under a
claim of right?
(7) Does such a loss qualify for the ap-
plication of §§ 1311–1314 to adjust tax lia-
bility in years that are otherwise barred by
the period of limitations on filing a claim
for refund under § 6511?
FACTS
Ais an individual who uses the cash
receipts and disbursements method of ac-
counting and files federal income tax re-
turns on a calendar year basis.Bholds
himself out to the public as an investment
advisor and securities broker.
In Year 1,A, in a transaction entered
into for profit, opened an investment ac-
count withB, contributed $100xto the ac-
count, and providedBwithpowerofattor-
neytousethe$100xto purchase and sell
securities onA’s behalf.AinstructedBto
reinvest any income and gains earned on
the investments. In Year 3,Acontributed
an additional $20xto the account.
Bperiodically issued account state-
ments toAthat reported the securities pur-
chases and sales thatBpurportedly made
inA’s investment account and the balance
of the account.Balso issued tax reporting
statements toAandtotheInternalRev-
enue Service that reflected purported gains
and losses onA’s investment account.B
also reported toAthat no income was
earned in Year 1 and that for each of the
Years 2 through 7 the investments earned
$10xof income (interest, dividends, and
capital gains), whichAincluded in gross
income onA’s federal income tax returns.
At all times prior to Year 8 and part way
through Year 8,Bwasabletomakedistri-
butions to investors who requested them.
Atook a single distribution of $30xfrom
the account in Year 7.
In Year 8, it was discovered thatB’s
purported investment advisory and broker-
age activity was in fact a fraudulent in-
vestment arrangement known as a “Ponzi”
scheme. Under this scheme,Bpurported
to invest cash or property on behalf of each
investor, includingA, in an account in the
investor’s name. For each investor’s ac-
count,Breported investment activities and
resulting income amounts that were par-
tially or wholly fictitious. In some cases,
in response to requests for withdrawal,B
made payments of purported income or
principal to investors. These payments
were made, at least in part, from amounts
that other investors had invested in the
fraudulent arrangement.
WhenB’s fraud was discovered in Year
8,Bhad only a small fraction of the funds
thatBreported on the account statements
thatBissued toAand other investors.A
did not receive any reimbursement or other
recovery for the loss in Year 8. The period
of limitation on filing a claim for refund
under § 6511 has not yet expired for Years
5 through 7, but has expired for Years 1
through 4.
B’s actions constituted criminal fraud or
embezzlement under the law of the juris-
diction in which the transactions occurred.
At no time prior to the discovery didA
know thatB’s activities were a fraudulent
scheme. The fraudulent investment ar-
rangement was not a tax shelter as defined
in § 6662(d)(2)(C)(ii) with respect toA.
LAW AND ANALYSIS
Issue 1. Theft loss.
Section 165(a) allows a deduction for
losses sustained during the taxable year
and not compensated by insurance or oth-
erwise. For individuals, § 165(c)(2) al-
lows a deduction for losses incurred in
a transaction entered into for profit, and
§ 165(c)(3) allows a deduction for certain
losses not connected to a transaction en-
tered into for profit, including theft losses.
Under § 165(e), a theft loss is sustained in
the taxable year the taxpayer discovers the
loss. Section 165(f) permits a deduction
for capital losses only to the extent allowed
in §§ 1211 and 1212. In certain circum-
stances, a theft loss may be taken into ac-
count in determining gains or losses for a
taxable year under § 1231.
For federal income tax purposes,
“theft” is a word of general and broad
connotation, covering any criminal appro-
priation of another’s property to the use
of the taker, including theft by swindling,
false pretenses and any other form of
guile.Edwards v. Bromberg, 232 F.2d 107
(5th Cir. 1956);see also§ 1.165–8(d)
of the Income Tax Regulations (“theft”
includes larceny and embezzlement). A
taxpayer claiming a theft loss must prove
that the loss resulted from a taking of
property that was illegal under the law
of the jurisdiction in which it occurred
and was done with criminal intent. Rev.
Rul. 72–112, 1972–1 C.B. 60. However,
a taxpayer need not show a conviction for
theft.Vietzke v. Commissioner,37T.C.
504, 510 (1961),acq., 1962–2 C.B. 6.
The character of an investor’s loss re-
lated to fraudulent activity depends, in
part, on the nature of the investment. For
example, a loss that is sustained on the
2009–14 I.R.B.735April 6, 2009

worthlessness or disposition of stock ac-
quired on the open market for investment
is a capital loss, even if the decline in
the value of the stock is attributable to
fraudulent activities of the corporation’s
officers or directors,because the officers
or directors did not have the specific intent
to deprive the shareholder of money or
property.SeeRev. Rul. 77–17, 1977–1
C.B. 44.
In the present situation, unlike the sit-
uation in Rev. Rul. 77–17,Bspecifically
intended to, and did, depriveAof money
by criminal acts.B’s actions constituted a
theft fromA, as theft is defined for § 165
purposes. Accordingly,A’s loss is a theft
loss, not a capital loss.
Issue 2. Deduction limitations.
Section 165(h) imposes two limitations
on casualty loss deductions, including
theft loss deductions, for property not con-
nected either with a trade or business or
with a transaction entered into for profit.
Section 165(h)(1) provides that a de-
duction for a loss described in § 165(c)(3)
(including a theft) is allowable only to the
extent that the amount exceeds $100 ($500
for taxable years beginning in 2009 only).
Section 165(h)(2) provides that if per-
sonal casualty losses for any taxable year
(including theft losses) exceed personal
casualty gains for the taxable year, the
lossesareallowedonlytotheextentof
the sum of the gains, plus so much of the
excess as exceeds ten percent of the indi-
vidual’s adjusted gross income.
Rev. Rul. 71–381, 1971–2 C.B. 126,
concludes that a taxpayer who loans
moneytoacorporationinexchangefor
a note, relying on financial reports that
are later discovered to be fraudulent, is
entitled to a theft loss deduction under
§ 165(c)(3). However, § 165(c)(3) sub-
sequently was amended to clarify that the
limitations applicable to personal casualty
and theft losses under § 165(c)(3) apply
only to those losses that are not connected
with a trade or business or a transaction
entered into for profit. Tax Reform Act of
1984, Pub. L. No. 98–369, § 711 (1984).
As a result, Rev. Rul. 71–381 is obsolete
to the extent that it holds that theft losses
incurred in a transaction entered into for
profit are deductible under § 165(c)(3),
rather than under § 165(c)(2).
Inopeninganinvestment account with
B,Aentered into a transaction for profit.
A’s theft loss therefore is deductible un-
der § 165(c)(2) and is not subject to the
§ 165(h) limitations.
Section 63(d) provides that itemized de-
ductions for an individual are the allow-
able deductions other than those allowed
in arriving at adjusted gross income (un-
der § 62) and the deduction for personal
exemptions. A theft loss is not allowable
under § 62 and is therefore an itemized de-
duction.
Section 67(a) provides that miscella-
neous itemized deductions may be de-
ducted only to the extent the aggregate
amount exceeds two percent of adjusted
gross income. Under § 67(b)(3), losses
deductible under § 165(c)(2) or (3) are
excepted from the definition of miscella-
neous itemized deductions.
Section 68 provides an overall limit on
itemized deductions based on a percentage
of adjusted gross income or total itemized
deductions. Under § 68(c)(3), losses de-
ductible under § 165(c)(2) or (3) are ex-
cepted from this limit.
Accordingly,A’stheftlossisanitem-
ized deduction that is not subject to the
limits on itemized deductions in §§ 67 and
68.
Issue 3. Year of deduction.
Section 165(e) provides that any
loss arising from theft is treated as sus-
tained during the taxable year in which
the taxpayer discovers the loss. Under
§§ 1.165–8(a)(2) and 1.165–1(d), how-
ever, if, in the year of discovery, there
exists a claim for reimbursement with
respect to which there is a reasonable
prospect of recovery, no portion of the loss
for which reimbursement may be received
is sustained until the taxable year in which
it can be ascertained with reasonable cer-
tainty whether or not the reimbursement
will be received, for example, by a settle-
ment, adjudication, or abandonment of the
claim. Whether a reasonable prospect of
recovery exists is a question of fact to be
determined upon examination of all facts
and circumstances.
Amay deduct the theft loss in Year 8,
the year the theft loss is discovered, pro-
vided that the loss is not covered by a claim
for reimbursement or other recovery as to
whichAhas a reasonable prospect of re-
covery. To the extent thatA’s deduction
is reduced by such a claim, recoveries on
the claim in a later taxable year are not in-
cludible inA’s gross income. IfArecov-
ers a greater amount in a later year, or an
amount that initially was not covered by
a claim as to which there was a reason-
able prospect of recovery, the recovery is
includible inA’s gross income in the later
year under the tax benefit rule, to the ex-
tent the earlier deduction reducedA’s in-
come tax.See§ 111; § 1.165–1(d)(2)(iii).
Finally, ifArecovers less than the amount
that was covered by a claim as to which
there was a reasonable prospect of recov-
ery that reduced the deduction for theft in
Year 8, an additional deduction is allowed
in the year the amount of recovery is ascer-
tained with reasonable certainty.
Issue 4.Amount of deduction.
Section 1.165–8(c) provides that the
amount deductible in the case of a theft
loss is determined consistently with the
manner described in § 1.165–7 for de-
termining the amount of a casualty loss,
considering the fair market value of the
property immediately after the theft to be
zero. Under these provisions, the amount
of an investment theft loss is the basis of
the property (or the amount of money) that
was lost, less any reimbursement or other
compensation.
The amount of a theft loss resulting
from a fraudulent investment arrangement
is generally the initial amount invested in
the arrangement, plus any additional in-
vestments, less amounts withdrawn, if any,
reduced by reimbursements or other recov-
eries and reduced by claims as to which
there is a reasonable prospect of recovery.
If an amount is reported to the investor as
income in years prior to the year of discov-
ery of the theft, the investor includes the
amount in gross income, and the investor
reinvests the amount in the arrangement,
this amount increasesthe deductible theft
loss.
Accordingly, the amount ofA’s theft
loss for purposes of § 165 includesA
’s
original Year 1 investment ($100x)andad-
ditional Year 3 investment ($20x).A’s loss
also includes the amounts thatAreported
as gross income onA’s federal income tax
returns for Years 2 through 7 ($60x).A’s
loss is reduced by the amount of money
distributed toAin Year 7 ($30x). IfAhas
April 6, 20097362009–14 I.R.B.

a claim for reimbursement with respect to
which there is a reasonable prospect of re-
covery,Amay not deduct in Year 8 the por-
tion of the loss that is covered by the claim.
Issue 5. Net operating loss.
Section 172(a) allows as a deduction for
the taxable year the aggregate of the net
operating loss carryovers and carrybacks
to that year. In computing a net operating
loss under § 172(c) and (d)(4), nonbusi-
ness deductions of noncorporate taxpay-
ers are generally allowed only to the ex-
tent of nonbusiness income. For this pur-
pose, however, any deduction for casualty
or theft losses allowable under § 165(c)(2)
or (3) is treated as a business deduction.
Section 172(d)(4)(C).
Under § 172(b)(1)(A), a net operating
loss generally may be carried back 2 years
and forward 20 years. However, under
§ 172(b)(1)(F), theportion of an individ-
ual’s net operating loss arising from casu-
alty or theft may be carried back 3 years
and forward 20 years.
Section 1211 of the American
Recovery and Reinvestment Act of
2009, Pub. L. No. 111–5, 123 Stat.
115 (February 17, 2009), amends
§ 172(b)(1)(H) of the Internal Revenue
Code to allow any taxpayer that is an
eligible small business to elect either a 3, 4,
or 5-year net operating loss carryback for
an “applicable 2008 net operating loss.”
Section 172(b)(1)(H)(iv) provides that
the term “eligible small business” has
the same meaning given that term by
§ 172(b)(1)(F)(iii), except that § 448(c)
is applied by substituting “$15 million”
for “$5 million” in each place it appears.
Section 172(b)(1)(F)(iii) provides that a
small business is a corporation or partner-
ship that meets the gross receipts test of
§ 448(c) for the taxable year in which the
loss arose (or in the case of a sole propri-
etorship, that would meet such test if the
proprietorship were a corporation).
Because § 172(d)(4)(C) treats any
deduction for casualty or theft losses al-
lowable under § 165(c)(2) or (3) as a
business deduction, a casualty or theft
loss an individual sustains after Decem-
ber 31, 2007, is considered a loss from
a “sole proprietorship” within the mean-
ing of § 172(b)(1)(F)(iii). Accordingly,
an individual may elect either a 3, 4, or
5-year net operating loss carryback for
an applicable 2008 net operating loss,
provided the gross receipts test provided
in § 172(b)(1)(H)(iv) is satisfied.See
Rev. Proc. 2009–19, 2009–14 I.R.B. 747
(April 6, 2009).
To the extentA’s theft loss deduction
creates or increases a net operating loss in
the year the loss is deducted,Amay carry
back up to 3 years and forward up to 20
years the portion of the net operating loss
attributable to the theft loss. IfA’s loss is
an applicable 2008 net operating loss and
the gross receipts test in § 172(b)(1)(H)(iv)
is met,Amay elect either a 3, 4, or 5-year
net operating loss carryback for the appli-
cable 2008 net operating loss.
Issue 6. Restoration of amount held under
claim of right.
Section 1341 provides an alternative tax
computation formula intended to mitigate
against unfavorabletax consequences that
may arise as a result of including an item in
gross income in a taxable year and taking a
deduction for the item in a subsequent year
when it is established that the taxpayer did
not have a right to the item. Section 1341
requires that: (1) an item was included in
gross income for a prior taxable year or
years because it appeared that the taxpayer
had an unrestricted right to the item, (2) a
deduction is allowable for the taxable year
because it was established after the close
of the prior taxable year or years that the
taxpayer did not have a right to the item or
to a portion of the item, and (3) the amount
of the deduction exceeds $3,000. Section
1341(a)(1) and (3).
If § 1341 applies, the tax for the tax-
able year is the lesser of: (1) the tax for the
taxable year computed with the current de-
duction, or (2) the tax for the taxable year
computed without the deduction, less the
decrease in tax for the prior taxable year or
years that would have occurred if the item
or portion of the item had been excluded
from gross income in the prior taxable year
or years. Section 1341(a)(4) and (5).
To satisfy the requirements of
§ 1341(a)(2), a deduction must arise
because the taxpayer is under an obli-
gation to restore the income. Section
1.1341–1(a)(1)–(2);Alcoa, Inc. v. United
States, 509 F.3d 173, 179 (3d Cir. 2007);
Kappel v. United States, 437 F.2d 1222,
1226 (3d Cir.),cert. denied,404U.S.830
(1971).
WhenAincurs a loss from criminal
fraud or embezzlement byBin a transac-
tion entered into for profit, any theft loss
deduction to whichAmay be entitled does
not arise from an obligation onA’s part to
restore income. Therefore,Ais not entitled
to the tax benefits of § 1341 with regard to
A’s theft loss deduction.
Issue 7. Mitigation provisions.
The mitigation provisions of
§§ 1311–1314 permit the Service or a tax-
payer in certain circumstances to correct
an error made in a closed year by adjusting
the tax liability in years that are other-
wise barred by the statute of limitations.
O’Brien v. United States, 766 F.2d 1038,
1041 (7th Cir. 1995). The party invoking
these mitigation provisions has the burden
of proof to show that the specific require-
ments are satisfied.Id. at 1042.
Section 1311(a) provides that if a de-
termination(asdefinedin§1313)isde-
scribed in one or more of the paragraphs
of § 1312 and, on the date of the determi-
nation, correction of the effect of the error
referred to in § 1312 is prevented by the
operation of any law or rule of law (other
than §§ 1311–1314 or § 7122), then the ef-
fect of the error is corrected by an adjust-
ment made in the amount and in the man-
ner specified in § 1314.
Section 1311(b)(1) provides in relevant
part that an adjustment may be made under
§§ 1311–1314 only if, in cases when the
amount of the adjustment would be cred-
ited or refunded under § 1314, the deter-
mination adopts a position maintained by
the Secretary that is inconsistent with the
erroneous prior tax treatment referred to in
§ 1312.
Acannot use the mitigation provisions
of §§ 1311–1314 to adjust tax liability in
Years 2 through 4 because there is no in-
consistency in the Service’s position with
respect toA’s prior inclusion of income in
Years 2 through 4.See§ 1311(b)(1). The
Service’s position thatA
is entitled to an
investment theft loss under § 165 in Year
8 (as computed in Issue 4, above), when
the fraud loss is discovered, is consistent
with the Service’s position thatAproperly
included in income the amounts credited
toA’s account in Years 2 through 4.See
§ 1311(b)(1)(A).
2009–14 I.R.B.737April 6, 2009

HOLDINGS
(1) A loss from criminal fraud or em-
bezzlement in a transaction entered into for
profit is a theft loss, not a capital loss, un-
der § 165.
(2) A theft loss in a transaction en-
tered into for profit is deductible under
§ 165(c)(2), not § 165(c)(3), as an item-
ized deduction that is not subject to the per-
sonal loss limits in § 165(h), or the limits
on itemized deductions in §§ 67 and 68.
(3) A theft loss in a transaction entered
into for profit is deductible in the year the
loss is discovered, provided that the loss is
not covered by a claim for reimbursement
or recovery with respect to which there is
a reasonable prospect of recovery.
(4) The amount of a theft loss in a trans-
action entered into for profit is generally
the amount invested in the arrangement,
less amounts withdrawn, if any, reduced
by reimbursements or recoveries, and re-
duced by claims as to which there is a rea-
sonable prospect of recovery. Where an
amount is reported to the investor as in-
come prior to discovery of the arrangement
and the investor includes that amount in
gross income and reinvests this amount in
the arrangement, the amount of the theft
loss is increased by the purportedly rein-
vested amount.
(5) A theft loss in a transaction entered
into for profit may create or increase a net
operating loss under § 172 that can be car-
ried back up to 3 years and forward up to
20 years. An eligible small business may
elect either a 3, 4, or 5-year net operating
loss carryback for an applicable 2008 net
operating loss.
(6) A theft loss in a transaction entered
into for profit does not qualify for the com-
putation of tax provided by § 1341.
(7) A theft loss in a transaction entered
into for profit does not qualify for the ap-
plication of §§ 1311–1314 to adjust tax lia-
bility in years that are otherwise barred by
the period of limitations on filing a claim
for refund under § 6511.
DISCLOSURE OBLIGATION UNDER
§1.6011–4
A theft loss in a transaction entered
into for profit that is deductible under
§ 165(c)(2) is not taken into account in
determining whether a transaction is a loss
transaction under § 1.6011–4(b)(5).See
§ 4.03(1) of Rev. Proc. 2004–66, 2004–2
C.B. 966.
EFFECT ON OTHER DOCUMENTS
Rev. Rul. 71–381 is obsoleted to the
extent that it holds that a theft loss incurred
in a transaction entered into for profit is
deductible under § 165(c)(3) rather than
§ 165(c)(2).
DRAFTING INFORMATION
The principal author of this revenue
ruling is Andrew M. Irving of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue ruling, contact
Mr. Irving at (202) 622–5020 (not a
toll-free call.)
Section 280G.—Golden
Parachute Payments
Federal short-term, mid-term, and long-term rates
are set forth for the month of April 2009. See Rev.
Rul. 2009-10, page 738.
Section 382.—Limitation
on Net Operating Loss
Carryforwards and Certain
Built-in Lossess Following
Ownershi
p Change
The adjus
ted applicable federal long-term rate is
set forth
for the month of April 2009. See Rev. Rul.
2009-10
, page 738.
Section 412.—Minimum
Funding Standards
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 467.—Certain
Payments for the Use of
Property or Services
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 468.—Special
Rules for Mining and Solid
Waste Reclamation and
Closing Costs
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 482.—Allocation
of Income and Deductions
Among Taxpayers
Federal short-term, mid-term, and long-term rates
are set forth for the month of April 2009. See Rev.
Rul. 2009-10, page 738.
Section 483.—Interest on
Certain Deferred Payments
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 642.—Special
Rules for Credits and
Deductions
Federal short-term, mid-term, and long-term rates
are set forth for the month of April 2009. See Rev.
Rul. 2009-10, page 738.
Section 807.—Rules for
Certain Reserves
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 846.—Discounted
Unpaid Losses Defined
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 1274.—Determi-
nation of Issue Price in the
Case of Certain Debt Instru-
ments Issued for Property
(Also Sections 42, 280G, 382, 412, 467, 468, 482,
483, 642, 807, 846, 1288, 7520, 7872.)
Federal rates; adjusted federal rates;
adjusted federal long-term rate and the
long-term exempt rate.For purposes of
sections 382, 642, 1274, 1288, and other
sections of the Code, tables set forth the
rates for April 2009.
April 6, 20097382009–14 I.R.B.

Rev. Rul. 2009–10
This revenue ruling provides vari-
ous prescribed rates for federal income
tax purposes for April 2009 (the current
month). Table 1 contains the short-term,
mid-term, and long-term applicable fed-
eral rates (AFR) for the current month
for purposes of section 1274(d) of the
Internal Revenue Code. Table 2 contains
the short-term, mid-term, and long-term
adjusted applicable federal rates (adjusted
AFR) for the current month for purposes
of section 1288(b). Table 3 sets forth the
adjusted federal long-term rate and the
long-term tax-exempt rate described in
section 382(f). Table 4 contains the ap-
propriate percentages for determining the
low-income housing credit described in
section 42(b)(1) for buildings placed in
service during the current month. How-
ever, under section 42(b)(2), the applicable
percentage for non-federally subsidized
new buildings placed in service after July
30, 2008, and before December 31, 2013,
shall not be less than 9%. Finally, Table
5 contains the federal rate for determining
the present value of an annuity, an interest
for life or for a term of years, or a remain-
der or a reversionary interest for purposes
of section 7520.
REV. RUL. 2009–10 TABLE 1
Applicable Federal Rates (AFR) for April 2009
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term
AFR.83%.83%.83%.83%
110% AFR.91%.91%.91%.91%
120% AFR1.00%1.00%1.00%1.00%
130% AFR1.08%1.08%1.08%1.08%
Mid-term
AFR
2.15%
2.14%2.13%2.13%
110% AFR2.36%
2.35%
2.34%2.34%
120% AFR
2.59%2.57%2.56%2.56%
130% AFR2.80%2.78%2.77%2.76%
150% AFR
3.24%3.21%3.20%3.19%
175% AFR
3.79%
3.75%
3.73%3.72%
Long-term
AFR3.67%3.64%3.62%3.61%
110% AFR4.04%4.00%3.98%3.97%
120% AFR4.42%4.37%
4.35%
4.33%
130% AFR4.79%4.73%4.70%4.68%
REV. RUL. 2009–10 TABLE 2
Adjusted AFR for April 2009
Period for Compounding
AnnualSemiannualQuarterlyMonthly
Short-term adjusted
AFR
.87%.87%.87%.87%
Mid-te
rm adjusted AFR
2.39%2.38%2.37%2.37%
Long-term adjusted
AFR
4.61%
4.56%4.53%4.52%
2009–14 I.R.B.739April 6, 2009

REV. RUL. 2009–10 TABLE 3
Rates Under Section 382 for April 2009
Adjusted federal long-term rate for the current month4.61%
Long-term tax-exempt rate for ownership changes during the current month (the highest of the adjusted
federal long-term rates for the current month and the prior two months.)5.27%
REV. RUL. 2009–10 TABLE 4
Appropriate Percentages Under Section 42(b)(1) for April 2009
Note: Under Section 42(b)(2), the applicable percentage for non-federally subsidized new buildings placed in service after July
30, 2008, and before December 31, 2013, shall not be less than 9%.
Appropriate percentage for the 70% present value low-income housing credit7.67%
Appropriate p
ercentage for the 30% present value low-income housing credit
3.29%
REV. RUL. 2009
–10 TABLE 5
Rate Under Section 7520 for April 2009
Applicable f
ederal rate for determining the present value of an annuity, an interest for life or a term of years,
or a remainde
r or reversionary interest
2.6%
Section 1288.—Treatment
of Original Issue Discount
on Tax-Exempt Obligations
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 6411.—Tentative
Carryback and Refund
Adjustmen
ts
Guidance i
s provided for taxpayers to elect the
3, 4, or 5-y
ear carryback of net operating losses of
small businesses under section 1211 of the Ameri-
can Recovery and Reinvestment Tax Act of 2009 by
filing Form 1045, Application for Tentative Refund,
or Form 1139, Corporation Application for Tentative
Refund. See Rev. Proc. 2009-19, page 747.
Section 7520.—Valuation
Tables
The adjusted applicable federal short-term, mid-
term, and long-term rates are set forth for the month
of April 2009. See Rev. Rul. 2009-10, page 738.
Section 7872
.—Treatment
of Loans With
Below-Market
Interest Rat
es
The adjuste
d applicable federal short-term, mid-
term, and lo
ng-term rates are set forth for the month
of April 200
9. See Rev. Rul. 2009-10, page 738.
April 6, 20097402009–14 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Asset Valuation under Section
430(g)(3)(B) as amended by
WRERA
Notice 2009–22
I. PURPOSE
This notice provides interim rules
regarding asset valuation methods that
are permitted to be used by single em-
ployer defined benefit pension plans for
minimum funding purposes pursuant to
changes made by the Worker, Retiree, and
Employer Recovery Act of 2008, Public
Law 110–458 (WRERA). This notice also
provides automatic approval for a change
in asset valuation method for plan years
beginning during 2009 to adopt any per-
missible asset valuation method.
II. BACKGROUND
Section 412 of the Internal Revenue
Code (the Code) provides minimum fund-
ing requirements that generally apply for
defined benefit pension plans. Section
412(d)(1) provides that any change in
funding method is permitted to take effect
only if it is approved by the Secretary.
A change in the plan’s funding method
includes a change in the method for de-
termining the value of the plan’s assets, a
change in the method for determining the
plan’s liabilities, or a change in the plan’s
valuation date.
Section 430, which was added by the
Pension Protection Act of 2006, Public
Law 109–280 (PPA ’06), provides rules
for the determination of the minimum re-
quired contribution applicable to single
employer pension plans (including mul-
tiple employer plans) pursuant to § 412.
Section 430 is generally effective for plan
years beginning on or after January 1,
2008.
Section 430(g)(1) provides that all de-
terminations made under § 430 for a plan
year must be made as of the plan’s val-
uation date. Section 430(g)(2) provides
that the valuation date for a plan year must
be the first day of the plan year, except
in the case of a plan with 100 or fewer
participants (determined as provided in
§ 430(g)(2)(B) and (C)).
Section 430(g)(3) provides rules re-
garding the determination of the value of
plan assets for purposes of § 430. Un-
der § 430(g)(3)(A), except as provided in
§ 430(g)(3)(B), the fair market value of
plan assets must be used for this purpose.
As an alternative to the use of fair market
value, § 430(g)(3)(B) permits the use of
an actuarial value of assets based on the
average of fair market values, but only
if such method is permitted under regu-
lations prescribed by the Secretary, does
not provide for averaging of such values
over more than the period beginning on
the last day of the 25th month preceding
the month in which the valuation date oc-
curs and ending on the valuation date (or
a similar period in the case of a valuation
date that is not the 1st day of a month), and
does not result in a determination of the
actuarial value of plan assets that, at any
time, is lower than 90 percent or greater
than 110 percent of the fair market value
of plan assets as of the valuation date.
Section 436 provides certain limitations
on a defined benefit plan that are based on
the funded status of the plan. For this pur-
pose, the funding status of the plan is based
on the adjusted funding target attainment
percentage, which in turn is based in part
on the value of plan assets as determined
under § 430.
Prior to amendment by WRERA, the
last sentence of § 430(g)(3)(B) provided
that any averaging under § 430(g)(3)(B)
must be adjusted for contributions and dis-
tributions (as provided by the Secretary).
Section 121(b) of WRERA amended the
last sentence of § 430(g)(3)(B) to provide
that any averaging under § 430(g)(3)(B)
must be adjusted for contributions, dis-
tributions, and expected earnings (as
determined by the plan’s actuary on the
basis of an assumed earnings rate speci-
fied by the actuary, but not in excess of
the third segment rate applicable under
§ 430(h)(2)(C)(iii)), as specified by the
Secretary. This WRERA change is effec-
tive for the same periods as the PPA ’06
provision that it amends.
On December 31, 2007, proposed reg-
ulations under §§ 430(d), 430(g), 430(h),
and 430(i) were published in the Federal
Register (REG–139236–07, 2008–9 I.R.B.
491 [72 FR 74215]) (the proposed regu-
lations). Section 1.430(g)–1(c)(2) of the
proposed regulations provides rules for a
permissible asset valuation method based
on the average of fair market values of plan
assets, in accordance with § 430(g)(3)(B),
prior to amendment by WRERA. Under
this asset valuation method, the actuar-
ial value of assets is the average of the
fair market value of assets on the valua-
tion date and the adjusted fair market value
of assets determined as of one or more
earlier determination dates. The adjusted
fair market value of assets as of a de-
termination date is the fair market value
of plan assets on that date, increased for
contributions included in the plan’s asset
balance on the valuation date that were
not included in the plan’s asset balance
on the determination date, and decreased
for benefits and administrative expenses
paid from plan assets between that deter-
mination date and the valuation date. Be-
cause the proposed regulations were issued
prior to the enactment of WRERA, the pro-
posed regulations do not provide for an
adjustment for expected earnings in deter-
mining the adjusted fair market value as
of an earlier determination date. Section
1.430(g)–1(f)(4) of the proposed regula-
tions provides that any change in a plan’s
valuation date or asset valuation method
that is made for the first plan year for
which § 430 applies to the plan and that
is not inconsistent with the requirements
of § 430 is treated as having been ap-
proved by the Commissioner and does not
require the Commissioner’s specific prior
approval.
The proposed regulations are proposed
to be effective for plan years beginning
on or after January 1, 2009. The pream-
ble of the proposed regulations provides
that plans may rely on the proposed reg-
ulations for plan years beginning during
2008. Notice 2008–21, 2008–7 I.R.B. 431,
states generally that the Service will not
challenge a reasonable interpretation of an
applicable statutory provision under § 430
or § 436 for plan years beginning during
2008, but noted that the use of averag-
ing methods in determining the value of
plan assets under § 430(g)(3)(B) is permit-
ted only in accordance with a method pre-
scribed in regulations.
2009–14 I.R.B.741April 6, 2009

Part III of this notice describes the
rules expected to be incorporated in fu-
ture regulations for adjusting asset val-
ues for expected earnings, pursuant to
§430(g)(3)(B),asamendedbyWRERA,
using an assumed rate of return. Taxpay-
ers may rely on the rules described in Part
III of this notice for plan years beginning
during 2008 and 2009.
The rules in Part III of this notice mod-
ify the determination of the adjusted fair
market value of plan assets for a prior de-
termination date that is used in determin-
ing the average of fair market values under
§ 430(g)(3)(B) as provided in the proposed
regulations. The other rules for the asset
valuation method under § 430(g)(3)(B) set
forth in the proposed regulations continue
to apply. For example, the period of time
between each of the determination dates
(treating the valuation date as a determi-
nation date) must be equal and the method
of determining the value of plan assets (in-
cluding the selection of the determination
dates) is part of the plan’s funding method.
The guidance provided in this notice
with respect to § 430(g)(3)(B) of the Code
also applies for purposes of the parallel
provision in section 303(g)(3)(B) of the
Employee Retirement Income Security
Act of 1974, as amended (ERISA). (Un-
der section 101 of the Reorganization
Plan No. 4 of 1978 (43 FR 47713), the
Secretary of the Treasury has interpretive
authority over the subject matter addressed
in this notice for purposes of ERISA, as
well as the Code.)
III. INTERIM RULES FOR
APPLICATION OF NEW ASSET
VALUATION METHOD
A. Adjustment for expected earnings.
The adjustment for expected earnings
that is made to the fair market value of plan
assets for a determination date is the sum
of the expected earnings separately deter-
mined for each period between the deter-
mination date and the valuation date. The
expected earnings for a period that is 12
months in length is equal to the product
oftheassumedrateofreturnforthe12
months and the fair market value of as-
sets as of the determination date that is
the beginning of the period, adjusted to re-
flect any contributions, benefits, and ad-
ministrative expenses paid during the pe-
riod (other than contributions for a plan
year that ends with or prior to the deter-
mination date). If the period for which ex-
pected earnings is being determined is less
than 12 months, then the expected earnings
must be reduced to reflect the length of the
shorter period. The fair market value of
assets as of a determination date includes
any contribution for a plan year that ends
with or prior to the determination date that
is receivable as of the determination date
(provided that the contribution is actually
made within 8
1
/2months after the end of
the applicable plan year). If the contribu-
tion that is receivable as of a determination
date is for a plan year beginning on or af-
ter January 1, 2008, then only the present
value as of that determination date (deter-
mined using the effective interest rate for
the plan year for which the contribution is
made) is included in the fair market value
of assets. The adjustment to the calcula-
tion of expected earnings for a period to re-
flect any other contributions, and to reflect
benefits and administrative expenses paid
during the period must take into account
the timing of those contributions, benefits,
and expenses.
The assumed rate of return for a period
must be the actuary’s best estimate of the
anticipated annual rate of return on plan as-
sets from the valuation date until all bene-
fits are expected to be paid, limited so that
the assumed rate of return does not exceed
the interest rate limitation determined un-
der section III.B or III.C of this notice, as
applicable for the plan year that contains
the period. If the period between one de-
termination date and the next includes por-
tions of more than one plan year, then the
limitation on the assumed rate of return is
the lower of the applicable limitations for
those plan years.
B. Determination of the limitation on
the assumed rate of return for periods
within plan years for which either the
funding target or the target normal cost
is determined using the three segment
interest rates under § 430(h)(2)(C).
If either the funding target or target nor-
mal cost for a plan year is determined (ei-
ther for purposes of determining minimum
required contributions under § 430 or for
purposes of the disclosure requirement un-
der section 101(f) of ERISA) using the
three segment interest rates described in
§ 430(h)(2)(C) (determined with or with-
out the application of the transition rule un-
der § 430(h)(2)(G)), then the assumed rate
of return applicable for periods within the
plan year must be limited so that it does
not exceed the third segment interest rate
used in that determination. This rule does
not apply when the full yield curve is used
to determine the funding target and tar-
get normal cost, but the rule does apply in
most other cases with respect to periods in
plan years beginning on or after January 1,
2008.
C. Determination of the limitation
ontheassumedrateofreturnfor
periods within plan years for which
neither the funding target nor the
target normal cost is determined using
the three segment interest rates under
§ 430(h)(2)(C).
If neither the funding target nor the
target normal cost for a plan year is de-
termined using the three segment interest
rates described in § 430(h)(2)(C) (deter-
mined with or without the application of
the transition rule under § 430(h)(2)(G)),
then the limitation on the assumed rate of
return applicable for periods within the
plan year cannot be determined using the
rules described in section III.B of this no-
tice. This is the case, for example, when:
(1) the plan year which contains the period
for which expected earnings are being de-
termined begins before January 1, 2008;
(2) the funding target and target normal
cost are determined using the full yield
curve described in § 430(h)(2)(D)(ii); or
(3) in the case of a plan with respect to
which an election has been made under
section 402(a)(1) of PPA ’06 (which is
generally available only for the pension
plan of a commercial passenger airline
under which accruals are frozen), the min-
imum required contribution is determined
under section 402(e) of PPA ’06.
If the limitation on the assumed rate
of return applicable for periods within the
plan year cannot be determined using the
rules described in section III.B of this no-
tice, then the assumed rate of return for pe-
riods within the plan year generally must
be limited so that it does not exceed the
average of the third segment rates for the
24-month period ending with the month
preceding the month that contains the val-
uation date for the plan year. However, if
April 6, 20097422009–14 I.R.B.

the Service has not published the 24-month
average of the third segment rate for the
month preceding the month that contains
the valuation date for the plan year (i.e.,
the 24-month period ends before August
2007), then the spot third segment rate for
the month preceding the month that con-
tains the valuation date is used as the limi-
tation on the assumed rate of return for the
plan year.
D. Application of the 90 to 110 percent
corridor.
The rules for accounting for contribu-
tion receipts under § 430(g)(4) are applied
prior to the application of the 90 to 110
percent corridor under § 430(g)(3)(B)(iii).
Thus, for example, in the case of a plan
with a calendar plan year, a contribution
receivable for the 2008 plan year which is
made in 2009 will increase the upper end
of the 90 to 110 percent corridor by 110%
of the present value, determined as of Jan-
uary 1, 2009, of that contribution receiv-
able.
E. Special rule for plan years beginning
during 2008.
The actuarial value of plan assets for
a plan year that begins during 2008 is
permitted to be determined using an asset
averaging method that complies with the
rules described in § 1.430(g)–1(f)(4) of
the proposed regulations (notwithstand-
ing that this determination results in a
lower value of plan assets than under
§ 430(g)(3)(B) as amended by WRERA).
Accordingly, no adjustment for expected
earnings is required to be applied for pur-
poses of determining the actuarial value of
assets under § 430(g)(3)(B) for a plan year
that begins during 2008. Thus, for a plan
year that begins in 2008, no retroactive
changes to the actuarial value of assets
need be made to comply with the amend-
ments to § 430(g)(3)(B) made by WRERA
in the case of a plan that has complied
with applicable requirements for that plan
year (such as quarterly contribution re-
quirements under § 430(j) and benefit
restrictions under § 436) based on the as-
set averaging method permitted before the
enactment of WRERA.
For a plan year that begins in 2008,
a plan for which the actuarial value of
plan assets for purposes of §§ 430 and
436 was determined based on the pro-
posed regulations is permitted to have
the actuarial value of plan assets rede-
termined pursuant to § 430(g)(3)(B), as
amended by WRERA. However, plans
should take into account the risk that
any such redetermination may result in
plan operations for the plan year having
been inconsistent with the requirements
of section 206(g) of ERISA (the provision
that parallels § 436 of the Code).
F. Examples.
The following examples illustrate the
application of this section III:
Example 1 — Actuarial value of assets calculated
as of January 1, 2009, using the average of the
value on the valuation date and the two prior val-
uation dates
Facts
All assets of Plan A are invested in a trust fund,
the plan year is the calendar year, and the valuation
date is January 1. The actuarial value of assets is de-
termined by averaging the fair market value as of the
valuation date and the adjusted fair market values as
of the preceding two valuation dates. Benefit pay-
ments and administrative expenses are paid evenly
throughout the year, and accordingly are assumed to
be made mid-year. The plan is not required to make
quarterly contributions, and contributions for a plan
year are made on September 15 following each plan
year.
The fair market value of assets in trust and the
contribution amounts are summarized below:
200720082009
Fair market value Jan. 1:
AssetsintrustasofJan.1..............
$135,500$176,000$162,000
Contribution for prior
planyearpaidSept.15...............
$ 61,000$ 62,000$ 68,781
Effective interest rate
forpriorplanyear...................
N/AN/A6.00%
Discounted prior plan year
contribution receivable
asofJan.1.........................
$ 61,000$ 62,000$ 66,000
Fair market value as of Jan. 1
including contrib. receivable. . . . . . . . . . .
$196,500$238,000$228,000
An actuarial valuation is performed as of January
1, 2009. The fair market value of assets, plan contri-
butions, benefit payments, and other relevant items for January 1, 2007 through January 1, 2009 are as
follows:
20072008
FairmarketvalueJanuary1includingcontributionsreceivable..................
$196,500$238,000
Contributionsforcurrentyear ............................................
$ 62,000$ 66,000*
Benefitpayments......................................................
$ (24,000)$ (25,000)
Expenses.............................................................
$ (7,000)$ (7,500)
Interestanddividends...................................................
$ 7,500$ 7,000
Netrealizedgains(losses)...............................................
$ 6,000$ (8,500)
Balancingitem........................................................
$ (3,000)$ (42,000)
Fairmarketvalue:Dec.31...............................................
$238,000$228,000
*Present value as of January 1, 2009
2009–14 I.R.B.743April 6, 2009

Computation of expected earnings
The plan sponsor elects to determine present
values and other computations under § 430 using the
24-month average of segment rates for the fourth
month preceding the month that contains the valu-
ation date, without applying the transition rules in
§ 430(h)(2)(G). The actuary’s best estimate of the
anticipated rate of return on plan assets is 6.25% for
2007 and is 6.25% for 2008. However, the assumed
rate of return used for determining expected earnings
for each of these plan years is equal to the lesser of
the anticipated rate of return on assets for the plan
year and the applicable limitation for the plan year.
The January 1, 2007 valuation was performed
based on the funding rules in effect prior to
PPA ’06, and therefore did not use the segment rates.
Accordingly, the limitation on the assumed rate of
return for 2007 is determined under section III.C of
this notice. Furthermore, the Service did not publish
the 24-month average of the third segment rates for
the 24-month period that ended with the month prior
to the valuation date (December 2006). Therefore,
in accordance with section III.C of this notice, the
assumed rate of return applicable for periods in 2007
is limited so that it does not exceed the spot third
segment rate for the month prior to the valuation
date (December 2006), or 6.09% (per Table II of
Notice 2007–81, 2007–2 C.B. 899). Because this
rate is lower than the actuary’s best estimate of the
anticipated rate of return on plan assets for 2007, the
assumed rate of return for 2007 is limited to 6.09%.
For 2008, the third segment rate used to limit the
assumed rate of return is the rate used for the Jan-
uary 1, 2008 valuation. Because the plan sponsor has
elected to use the segment rates for the fourth month
preceding the valuation date (September 2007) with-
out transition, the third segment rate is 6.38%. Be-
cause this rate is higher than the actuary’s best esti-
mate of the anticipated rate of return on plan assets for
2008, the assumed rate of return for 2008 is equal to
6.25% (the actuary’s best estimate of the anticipated
rate of return on plan assets).
Expected earnings are calculated as follows for
each year:
2007: ($196,500 x .0609) + [$62,000 x (1.0609
0
- 1)] - [($24,000 + $7,000) x (1.0609
(1/2)
-1)] = $11,037
2008: ($238,000 x .0625) + [$66,000 x (1.0625
0
- 1)] - [($25,000 + $7,500) x (1.0625
(1/2)
-1)] = $13,875
Computation of adjusted fair market value of as-
sets
The adjusted fair market values of assets for the
January 1, 2007 and January 1, 2008 determination
dates are computed as follows:
Adjusted values20072008
Fair market value January 1:
$196,500$238,000
Net adjustments:
Contributionsfor2007 .............................................
$ 62,000
n/a
Contributionsfor2008 .............................................
$ 66,000*$ 66,000*
Benefitpaymentsfor2007 ..........................................
$ (24,000)
n/a
Benefitpaymentsfor2008 ..........................................
$ (25,000)$ (25,000)
Expensesfor2007.................................................
$ (7,000)
n/a
Expensesfor2008.................................................
$ (7,500)$ (7,500)
Expectedearningsfor2007..........................................
$ 11,037
n/a
Expectedearningsfor2008..........................................
$ 13,875$ 13,875
Adjustedfairmarketvalue ..........................................
$285,912$285,375
*Present value as of January 1, 2009
Computation of actuarial value of assets
Average of adjusted fair market value at earlier
determination dates and fair market value at valuation
date:
($285,912 + $285,375 + $228,000) ÷ 3 = $266,429
This preliminary average as of January 1, 2009
must be l
imited so that it satisfies the 90–110 per-
cent corridor rules under § 430(g)(3)(B)(iii). Be-
cause 110% of $228,000 equals $250,800, the actu-
arial va
lue of assets for Plan A must be limited to
$250,800 (rather than $266,429). Thus, the actuar-
ial value of assets as of January 1, 2009 is $250,800.
Algebraically equivalent determination of actuar-
ial valu
eofassets
Note that the above calculation of the preliminary
average a
s of January 1, 2009 is algebraically equiv-
alent to the method under Approval 15 of Rev. Proc.
2000–40, 2000–2 C.B. 357, using the assumed rate of
return for each year as described above and a smooth-
ing peri
od of three years. This equivalency is demon-
strated as follows:
April 6, 20097442009–14 I.R.B.

20072008
Actual earnings:
Interestanddividends..............................................
$ 7,500$ 7,000
Netrealizedgains(losses) ..........................................
$ 6,000$ (8,500)
Balancingitem....................................................
$(3
,000)$(42,000)
Totalactualearnings....................................................
$ 10,500$ (43,500)
Expectedearnings......................................................
$1
1,037$13,875
Gain(loss)equaltoactualearningsminusexpectedearnings....................
$ (537)$ (57,375)
Preliminary actuarial value of assets as of January 1, 2009 equals:
$228,000 + one-third of the 2007 loss (1/3 x $537) + two-thirds of the 2008 loss (2/3 x $57,375) = $266,429
As noted above, this preliminary actuarial value
of assets must be limited so that the actuarial value
of assets as of January 1, 2009 satisfies the 90–110
percent corridor rules under § 430(g)(3)(B)(iii). Be-
cause the preliminary actuarial value of assets ex-
ceeds 110% of the fair market value of plan assets as
of the valuation date, the actuarial value of assets as
of January 1, 2009 is $250,800.
Example 2 — Actuarial value of assets calculated
as of January 1, 2010, using the average of the
value on the valuation date and four earlier quar-
terly determination dates
Facts
The facts are the same as in Example 1, except
that the actuarial value of assets is calculated by av-
eraging the fair market value as of the current valua-
tion date and adjusted fair market values as of the be-
ginning of the four preceding calendar quarters. Two
contributions are made for the 2009 plan year—a con-
tribution of $10,000 made on May 1, 2009, and a con-
tribution of $60,000 made on September 15, 2010.
The effective interest rate for the 2009 plan year is
6.10%. Benefits are paid on the 15
th
day of each
month, and so benefits for the quarter are assumed
to be made at the midpoint of each quarter. During
2009, administrative expenses are paid at the begin-
ning of each quarter.
An actuarial valuation is performed as of January
1, 2010. For each determination date for which the
contribution of $68,781 paid on September 15, 2009
is a contribution receivable for the 2008 plan year, the
contribution receivable is discounted to the determi-
nation date using the 2008 effective interest rate of
6.00%. The contribution of $60,000 paid on Septem-
ber 15, 2010 for the 2009 plan year is reflected in the
fair market value of assets as of January 1, 2010, dis-
counted to that date using the 2009 effective interest
rate of 6.1% ($60,000 ÷ 1.061
(8.5/12)
= $57,536), as
illustrated in the table below:
Quarter beginning1/1/20094/1/20097/1/200910/1/20091/1/2010
Fair market value:
Assets in trust at beginning
ofquarter.....................
$162,000$143,232$153,649$215,300$216,900
Contributions receivable for
priorplanyear.................
$ 68,781$ 68,781$ 68,781$0$ 60,000
Effective interest rate for
priorplanyear.................
6.00%6.00%6.00%6.00%6.10%
Discounted prior plan year
contributions receivable
atbeginningofquarter ..........
$ 66,000$ 66,968$ 67,951$0$ 57,536
Total fair market value at
beginning of quarter,
including
contributions
receivable.....................
$228,000$210,200$221,600$215,300$274,436
The fair market value of assets, plan contribu-
tions, benefit payments, and other relevant items for
the four quarters of 2009 are shown in the table be-
low:
Quarter be
ginning
1/1/20094/1/20097/1/200910/1/2009
Total fair market value at beginning of quarter,
including c
ontributionsreceivable .....................
$228,000$210,200$221,600$215,300
Contributions.......................................
$0$ 10,000$0$ 57,536**
Benefitpayments....................................
$ (6,000)$ (6,500)$ (6,300)$ (6,400)
Expenses...........................................
$ (2,100)$ (1,900)$ (2,300)$ (1,800)
Interestanddividends.................................
$ 2,300$ 1,800$ 2,000$ 2,800
Netrealizedgains(losses).............................
$ 3,000$ 3,000$ 3,000$ 3,000
Balancin
gitem*.....................................
$(
15,000)$5,000$(2,700)$4,000
Fair market value at end of quarter, including
contributionsreceivable .............................
$210,200$221,600$215,300$274,436
2009–14 I.R.B.745April 6, 2009

* Includes the change in discounted value of the contribution receivable.
** Discounted value of contribution receivable forthe 2009 plan year, paid after the end of the 2009 plan year. This discounted amount is treated as if itispaidon
December 31, 2009, for the purpose of calculating the fair market value and the average value of assets.
Computation of expected earnings
The plan sponsor elects to determine present val-
ues and other computations under § 430 using the
24-month segment rates for the fourth month preced-
ing the month that contains the valuation, without
applying the transition rules in § 430(h)(2)(G). The
actuary’s best estimate of the anticipated rate of re-
turn on plan assets is 6.25% for 2009. This rate is
compared with the third segment rate for the 2009
plan year of 6.56% (based on the rates published for
September 2008); because the third segment rate is
higher than the actuary’s best estimate of the antici-
pated rate of return on plan assets, the actuary’s as-
sumed rate of return is not restricted.
Expected earnings are calculated for each quar-
ter, taking into account the timing of contributions,
benefit payments, and administrative expenses dur-
ing each quarter, as follows:
Quarter beginning 1/1/2009:
[$228,000 x (1.0625
(3/12)
-1)] - [$6,000 x (1.0625
(1.5/12)
-1)] - [$2,100 x (1.0625
(3/12)
-1)] = $3,404
Quarter beginning 4/1/2009:
[$210,200 x (1.0625
(3/12)
-1)] + [$10,000 x (1.0625
(2/12)
-1)] - [$6,500 x (1.0625
(1.5/12)
-1)] - [$1,900 x (1.0625
(3/12)
-1)] = $3,233
Quarter beginning 7/1/2009:
[$221,600 x (1.0625
(3/12)
-1)] - [$6,300 x (1.0625
(1.5/12)
-1)] - [$2,300 x (1.0625
(3/12)
-1)] = $3,301
Quarter beginning 10/1/2009:
[$215,300 x (1.0625
(3/12)
-1)] + [$57,536 x (1.0625
0
-1)] - [$6,400 x (1.0625
(1.5/12)
-1)] - [$1,800 x (1.0625
(3/12)
-1)] = $3,212
Computation of average value of assetsThe average value of assets as of January 1, 2010,
is computed as follows:
Determination date1/1/20094/1/20097/1/200910/1/2009
Total fair market value at beginning of quarter, including
contributionsreceivable .............................
$228,000$210,200$221,600$215,300
Net adjustments*
Contributions...................................
$ 67,536$ 67,536$ 57,536$ 57,536*
Benefitpayments................................
$ (25,200)$ (19,200)$ (12,700)$ (6,400)
Expenses......................................
$ (8,100)$ (6,000)$ (4,100)$ (1,800)
Expected earnings:
1/1/2009-3/31/2009 .........................
$ 3,404
N/AN/AN/A
4/1/2009-6/30/2009 .........................
$ 3,233$ 3,233
N/AN/A
7/1/2009-9/30/2009 .........................
$ 3,301$ 3,301$ 3,301
N/A
10/2009-12/31/2009.........................
$3,212$3,212$3,212$3,212
Adjustedfairmarketvalue.............................
$275,386$262,282$268,849$267,848
* Entries reflect the sum of the amounts for the current and later quarters, as illustrated for expected earnings.
Average of adjusted fair market value of assets at earlier determination dates and fair market value at valuation date:
($275,386 + $262,282 + $268,849 + $267,848 + $274,436) ÷ 5 = $269,760
This average must be limited so that the ac-
tuarial value of assets as of January 1, 2010 sat-
isfies the 90–110 percent corridor rules under
§ 430(g)(3)(B)(iii). Because the average of adjusted
fair market values of $269,760 falls between 90%
and 110% of $274,436, the actuarial value of assets
as of January 1, 2010 is $269,760.
IV. AUTOMATIC APPROVAL FOR
CHANGE IN ASSET VALUATION
METHOD
This notice provides approval by the
Commissioner for a change in a plan’s
asset valuation method to adopt an asset
valuation method that is permitted under
§ 430(g)(3), as amended by WRERA, that
is made for a plan year that begins during
2009. In addition, the approval that would
apply under the proposed regulations for a
change in funding method for a plan year
that begins during 2008 will apply to a
change in a plan’s asset valuation method
made to adopt the asset valuation method
permitted by § 430(g)(3)(B), as amended
by WRERA, that is made for such a plan
year.
V. DRAFTING INFORMATION
The principal authors of this notice
are Carolyn Zimmerman of the Employee
April 6, 20097462009–14 I.R.B.

Plans, Tax Exempt and Government En-
tities Division, and Michael P. Brewer
and Linda S. F. Marshall of the Office
of the Division Counsel/Associate Chief
Counsel (Tax Exempt and Government
Entities). For further information regard-
ing this notice, please contact the Em-
ployee Plans taxpayer assistance answer-
ing service at 1–877–829–5500 (a toll-free
number), Mr. Brewer or Ms. Marshall
at (202) 622–6090 (not a toll-free
number), or e-mail Ms. Zimmerman, at
RetirementPlanQuestions@irs.gov.
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also Part I, §§ 172, 6411.)
Rev. Proc. 2009–19
SECTION 1. PURPOSE
.01 This revenue procedure provides
guidance under § 1211 of the American
Recovery and Reinvestment Tax Act of
2009, Div. B of Pub. L. No. 111–5,
123 Stat. 115 (February 17, 2009) (the
Act). Section 1211 of the Act amends
§ 172(b)(1)(H) of the Internal Revenue
Code to allow any taxpayer that is an el-
igible small business (ESB) to elect a 3, 4,
or 5-year net operating loss (NOL) carry-
back for a taxable year ending after 2007.
.02 Specifically, this revenue procedure
provides guidance to taxpayers as to the
time and manner for making an election
under § 172(b)(1)(H), including the elec-
tion of a 3, 4, or 5-year carryback period
and an election to apply § 172(b)(1)(H)
to an NOL for a taxable year beginning
in 2008, instead of an NOL for a taxable
year ending in 2008. This revenue proce-
dure provides guidance on when and how
to elect § 172(b)(1)(H) if the taxpayer pre-
viously filed an election under § 172(b)(3)
to forgo the NOL carryback period.
.03 This revenue procedure also pro-
vides guidance on how a taxpayer makes
the election if the taxpayer is a partner of
an ESB that is a partnership, a shareholder
of an ESB that is an S corporation, or a sole
proprietor.
SECTION 2. BACKGROUND
.01 Section 172(a) allows a deduction
equal to the aggregate of the NOL carry-
overs and carrybacks to the taxable year.
Section 172(b)(1)(A)(i) provides that an
NOL for any taxable year generally must
be carried back to each of the 2 years
preceding the taxable year of the NOL.
Section 172(b)(3) provides that any tax-
payer entitled to a carryback period under
§ 172(b)(1) may make an irrevocable elec-
tion to relinquish the carryback period with
respect to an NOL for any taxable year.
.02 Section 6411(a) provides that a tax-
payer may file an application for a tenta-
tive carryback adjustment of the tax for
the prior taxable year affected by an NOL
carryback from any taxable year. Section
6411(a) also provides that the application
must be filed on or after the date of fil-
ing for the return forthe taxable year of
the NOL from which the carryback results
and within a period of 12 months after that
taxable year or, with respect to any portion
of a business credit carryback attributable
to an NOL from a subsequent taxable year,
within a period of 12 months from the end
of the subsequent taxable year. Section
6411(b) provides a 90-day period during
which the Internal Revenue Service will
make a limited examination of the appli-
cation to discover omissions and errors of
computation and determine the amount of
the decrease in tax attributable to the car-
ryback. The Service may disallow, with-
out further action, any application that con-
tains errors of computation that cannot be
corrected within the 90-day period or that
contains material omissions. The decrease
in tax attributable to the carryback will
be applied against unpaid amounts of tax.
Any remainder of the decrease will, within
the 90-day period, be credited or refunded.
.03 Section 172(b)(1)(H) permits an
ESB to carry back itsapplicable 2008
NOL to 3, 4, or 5 years preceding the tax-
able year of the NOL, as the ESB elects.
.04 Section 172(b)(1)(H)(iv) provides
that the term “eligible small business” has
the meaning given by § 172(b)(1)(F)(iii),
except that § 448(c) is applied by substi-
tuting “$15 million” for “$5 million” each
place it appears. Section 172(b)(1)(F)(iii)
provides that a small business is a corpora-
tion or partnership that meets the gross re-
ceipts test of § 448(c) for the taxable year
in which the loss arose (or in the case of a
sole proprietorship, that would meet such
test if the proprietorship were a corpora-
tion).
.05 Section 448 generally prohibits cer-
tain taxpayers from using the cash receipts
and disbursements method of accounting.
Section 448(b)(3) provides an exception to
this requirement in the case of any corpo-
ration or partnership if, for all prior taxable
years beginning after December 31, 1985,
the entity (or any predecessor) met the $5
million gross receipts test of § 448(c). Sec-
tion 448(c)(1) provides that a corporation
or partnership meets the $5 million gross
receipts test for any prior taxable year if
the average annual gross receipts of the en-
tity for the 3-taxable-year period ending
with that prior taxable year does not ex-
ceed $5 million. Section 448(c)(2) (ag-
gregation rules) generally provides that all
persons treated as a single employer under
subsection (a) or (b) of § 52 or subsection
(m) or (o) of § 414 are treated as one per-
son for purposes of § 448(c)(1).
.06 The $5 million gross receipts test
of § 448(c) is applied to a taxpayer’s prior
taxable year by determining the aver-
age annual gross receipts for the 3-year
period that ends with that prior taxable
year. Under §172(b)(1)(F)(iii), in order
to be a small business, a taxpayer must
meet the gross receipts test of § 448(c)
for the taxable year in which the NOL
arose. Consequently, to determine if a
taxpayer is a small business for purposes
of § 172(b)(1)(F)(iii), the taxable year in
which the NOL arose is the last taxable
year of the 3-year period to which the test
is applied.
.07 Section 172(b)(1)(H)(ii)(I) provides
that the term “applicable 2008 net operat-
ing loss” means the taxpayer’s NOL for
any taxable year ending in 2008. However,
under § 172(b)(1)(H)(ii)(II), the taxpayer
may elect instead to have the term mean
the taxpayer’s NOL for any taxable year
beginning in 2008.
.08 Section 172(b)(1)(H)(iii) provides
that any election under § 172(b)(1)(H) is
requiredtobemadeinsuchamanneras
may be prescribed by the Secretary, and
must be made by the due date (including
extension of time) for filing the taxpayer’s
return for the taxable year of the NOL. The
election is irrevocable and may be made
only for one taxable year.
.09 Section 1211(d)(2) of the Act pro-
vides that in the case of an applicable 2008
NOL for a taxable year ending before the
date of enactment of the Act (February 17,
2009), (A) a previous election made un-
2009–14 I.R.B.747April 6, 2009

der § 172(b)(3) for the NOL may be re-
voked on or before April 17, 2009; (B)
the § 172(b)(1)(H) election for the NOL
is treated as timely if made on or before
April 17, 2009; and (C) an application un-
der § 6411(a) with respect to the NOL is
treated as timely if filed on or before April
17, 2009.
SECTION 3. SCOPE
This revenue procedure applies to any
taxpayer that is an ESB, a partner of a part-
nership that is an ESB, a shareholder in an
S corporation that is an ESB, or a sole pro-
prietor of a business that is an ESB, and
that incurred an NOL for any taxable year
ending in 2008 or beginning in 2008.
SECTION 4. APPLICATION
.01Eligible small businesses that have
not filed a return for the applicable 2008
NOL taxable year.
(1) A taxpayer within the scope of this
revenue procedure that has not filed a re-
turn for the taxable year in which the appli-
cable 2008 NOL arises makes the election
under § 172(b)(1)(H) by attaching a state-
ment to the taxpayer’s federal income tax
return for the taxable year in which the ap-
plicable 2008 NOL arises. The statement
must—
(a) Clearly state that the taxpayer is
electing to apply §172(b)(1)(H);
(b) Describe the length of the NOL car-
ryback period elected by the taxpayer (3,
4, or 5 years); and
(c) If applicable, state that the taxpayer
is electing to apply § 172(b)(1)(H) to
the taxpayer’s taxable year that begins in
2008.
(2) The taxpayer’s return must be filed
by the due date (including extensions of
time) for filing the taxpayer’s return for
the taxable year of the applicable 2008
NOL. In the case of a late election, relief
may be available under § 301.9100–2(b)
of the Procedure and Administration Reg-
ulations. Notwithstanding this due date,
an election to apply § 172(b)(1)(H) to an
applicable 2008 NOL for a taxable year
ending before February 17, 2009, will be
treated as timely if the election is filed on
or before April 17, 2009.
.02Eligible small businesses that have
filed a return for the applicable 2008 NOL
taxable year and did not elect to forgo the
NOL carryback period.
(1) A taxpayer within the scope of this
revenue procedure that previously filed a
return for the applicable 2008 NOL taxable
year and did not elect to forgo the NOL car-
ryback period under § 172(b)(3) makes the
election under § 172(b)(1)(H) as follows:
(a)What to file.
(i) The taxpayer must file the appropri-
ate form including a statement of the car-
ryback period the taxpayer elects (3, 4, or
5 years). The appropriate form is—
(A) For corporations, Form 1139,Cor-
poration Application for Tentative Refund,
or Form 1120X,Amended U.S. Corpora-
tion Income Tax Return;
(B) For individuals, Form 1045,Ap-
plication for Tentative Refund,orForm
1040X,Amended U.S. Individual Income
Tax Return;and
(C) For estates or trusts, Form 1045,
or amended Form 1041,U.S. Income Tax
Return for Estates and Trusts.
(ii) A taxpayer that makes the election
by filing an amended return must file the
return for the earliest taxable year to which
the taxpayer is carrying back the applica-
ble 2008 NOL. The taxpayer should not
file an amended return for the applicable
2008 NOL taxable year.
(b)Labels. The taxpayer should type or
print across the top of the appropriate form
“2008 NOL Carryback Election Pursuant
to Rev. Proc. 2009–19.” If the taxpayer
previously filed an application for a tenta-
tive carryback adjustment or an amended
return applying an NOL carryback pe-
riod that did not qualify for the election
under § 172(b)(1)(H), the taxpayer also
should type or print across the top of the
appropriate form “Amended NOL Car-
ryback Election Pursuant to Rev. Proc.
2009–19.” In addition to the labels listed
above, a taxpayer that elects pursuant to
§ 172(b)(1)(H)(ii)(II) to treat its NOL aris-
inginataxableyearbeginningin2008as
the applicable 2008 NOL, must include a
statement that the taxpayer is electing to
apply § 172(b)(1)(H)to a taxable year that
begins in 2008.
(c)When to file. The taxpayer must file
the appropriate form by the later of the date
that is 6 months after the due date (exclud-
ing extensions) for filing the taxpayer’s re-
turn for the taxable year of the applicable
2008 NOL, or on or before April 17, 2009.
(2) If a taxpayer makes the election
under § 172(b)(1)(H) by filing an appli-
cable form that amends a prior refund
claim, the amendment also will apply to
a carryback of any alternative tax NOL
for the same taxable year. In the case of
an amended application for a tentative
carryback adjustment, the 90-day period
described in § 6411(b) will begin on the
date the amended application is filed.
.03Eligible small businesses that
elected to forgo the NOL carryback pe-
riod under § 172(b)(3). A taxpayer within
the scope of this revenue procedure that
previously elected under § 172(b)(3) to
forgo the carryback period for an applica-
ble 2008 NOL for a taxable year ending
before February 17, 2009, may revoke
that election and make the election under
§ 172(b)(1)(H). Any revocation of the
election to forgo the NOL carryback pe-
riod also will apply to a carryback of any
alternative tax NOL for the same taxable
year. The taxpayer makes the revocation
and election by following the procedures
of section 4.02 of this revenue procedure.
However, instead of the label required in
section 4.02(1)(b) of this revenue proce-
dure, the taxpayer should type or print
across the top of the appropriate form
“2008 NOL Carryback Election and Revo-
cation of NOL Carryback Waiver Pursuant
to Rev. Proc. 2009–19.” The taxpayer
must file the revocation and new election
under § 172(b)(1)(H) on or before April
17, 2009.
.04Partnerships, S corporations, and
sole proprietorships.
(1) If the taxpayer is a partner in a
partnership that qualifies as an ESB, the
taxpayer may make the § 172(b)(1)(H)
election for its distributive share of the
qualifying ESB partnership income, gain,
loss, and deduction that is both allocable
to the taxpayer under § 704 and allowed in
calculating the taxpayer’s applicable 2008
NOL.
(2) If the taxpayer is a shareholder in
an S corporation that qualifies as an ESB,
the taxpayer may make the § 172(b)(1)(H)
election for itspro ratashare of the qual-
ifying ESB S corporation income, gain,
loss, and deduction under § 1366 that is al-
lowed in calculating the shareholder’s ap-
plicable 2008 NOL.
(3) If the taxpayer is an owner of a sole
proprietorship that qualifies as an ESB,
the taxpayer may make the § 172(b)(1)(H)
April 6, 20097482009–14 I.R.B.

election for the qualifying ESB sole pro-
prietorship income, gain, loss, and deduc-
tion that is allowed in calculating the tax-
payer’s applicable 2008 NOL.
(4) In determining whether a partner-
ship, S corporation, or sole proprietorship
qualifies as an ESB, the gross receipts test
applies at the partnership, corporate, or
sole proprietorship level. The aggrega-
tion rules of § 448(c)(2) apply to deter-
mine whether the partnership, S corpora-
tion, or sole proprietorship meets the gross
receipts test of § 448(c).
(5) The amount of the taxpayer’s ap-
plicable 2008 NOL that the taxpayer may
carry back under §172(b)(1)(H) is limited
to the lesser of:
(a) The taxpayer’s items of income,
gain, loss or deduction that are allowed
in calculating the taxpayer’s applicable
2008 NOL and are from one or more
partnerships, S corporations or sole pro-
prietorships that qualify as ESBs, or
(b) The taxpayer’s applicable 2008
NOL.
(6)Examples.
(a)Example 1. Partnerships A, B, and C have
average annual gross receipts of $10 million, $12
million, and $14 million, respectively. Partner T
owns a 40% interest in each partnership. None of
the partnerships is required to be aggregated with
any other entity for purposes of the aggregation
rules of § 448(c)(2). Subject to the limitations in
section 4.04(5) of this revenue procedure, Partner T
may apply its election under § 172(b)(1)(H) to the
portion of its applicable 2008 NOL attributable to
its distributive share of the income, gain, loss, and
deduction of each of Partnerships A, B, and C.
(b)Example 2. ThefactsarethesameasinEx-
ample 1, except that Partnerships A and B are under
common control within the meaning of § 52(b)(1).
Accordingly, Partnerships A and B are treated as one
person under the aggregation rules of § 448(c)(2).
Because the aggregated average annual gross receipts
of Partnerships A and B exceed $15 million, Part-
nerships A and B do not qualify as ESBs. Partner
T may not apply its election under § 172(b)(1)(H) to
the portion of its applicable 2008 NOL attributable
to its distributive share of the income, gain, loss, and
deduction of Partnerships A and B. However, subject
to the limitations in section 4.04(5) of this revenue
procedure, Partner T may apply its election under
§ 172(b)(1)(H) to the portion of its applicable 2008
NOL attributable to its distributive share of income,
gain, loss, and deduction of Partnership C.
SECTION 5. EFFECTIVE DATE
This revenue procedure is effective for
NOLs arising in taxable years ending after
December 31, 2007.
SECTION 6. 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 in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under the following
control numbers: 1545–0074 Form 1040
(U.S. Individual Income Tax Return)and
Form 1040X (Amended U.S. Individual
Income Tax Return); 1545–0123 Form
1120 (U.S. Corporation Income Tax
Return); 1545–0132 Form 1120X
(Amended U.S. Corporation Income Tax
Return); 1545–0092 Form 1041 (U.S.
Income Tax Return for Estates and Trusts);
1545–0098 Form 1045 (Application for
Tentative Refund); 1545–0582 Form 1139
(Corporation Application for Tentative
Refund). For further information, please
refer to the Paperwork Reduction Act
statements accompanying these forms.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Seoyeon Park of the Office of
the Associate Chief Counsel (Income Tax
and Accounting). For further information
regarding this notice, contact Ms. Park at
(202) 622–4960 (not a toll-free call).
26 CFR 601.105: Examination of returns and claims
for refund, credit or abatement; determination of cor-
rect tax liability.
(Also Part I, §§ 165; 1.165–8(c).)
Rev. Proc. 2009–20
SECTION 1. PURPOSE
This revenue procedure provides an op-
tional safe harbor treatment for taxpayers
that experienced losses in certain invest-
ment arrangements discovered to be crim-
inally fraudulent. This revenue procedure
also describes how the Internal Revenue
Service will treat a return that claims a de-
duction for such a loss and does not use the
safe harbor treatment described in this rev-
enue procedure.
SECTION 2. BACKGROUND
.01 The Service and Treasury Depart-
ment are aware of investment arrange-
ments that have been discovered to be
fraudulent, resulting in significant losses
to taxpayers. These arrangements of-
ten take the form of so-called “Ponzi”
schemes, in which the party perpetrating
the fraud receives cash or property from
investors, purports to earn income for the
investors, and reports to the investors in-
come amounts that are wholly or partially
fictitious. Payments, if any, of purported
income or principal to investors are made
from cash or property that other investors
invested in the fraudulent arrangement.
The party perpetrating the fraud criminally
appropriates some or all of the investors’
cash or property.
.02 Rev. Rul. 2009–9, 2009–14 I.R.B.
735 (April 6, 2009), describes the proper
income tax treatment for losses resulting
from these Ponzi schemes.
.03 The Service and Treasury Depart-
ment recognize that whether and when in-
vestors meet the requirements for claiming
a theft loss for an investment in a Ponzi
scheme are highly factual determinations
that often cannot be made by taxpayers
with certainty in the year the loss is dis-
covered.
.04 In view of the number of invest-
ment arrangements recently discovered to
be fraudulent and the extent of the po-
tential losses, this revenue procedure pro-
vides an optional safe harbor under which
qualified investors (as defined in § 4.03 of
this revenue procedure) may treat a loss as
a theft loss deduction when certain con-
ditions are met. This treatment provides
qualified investors with a uniform manner
for determining their theft losses. In addi-
tion, this treatment avoids potentially diffi-
cult problems of proof in determining how
much income reported in prior years was
fictitious or a return of capital, and alle-
viates compliance and administrative bur-
dens on both taxpayers and the Service.
SECTION 3. SCOPE
The safe harbor procedures of this rev-
enue procedure apply to taxpayers that are
qualified investors within the meaning of
section 4.03 of this revenue procedure.
SECTION 4. DEFINITIONS
The following definitions apply solely
forpurposesofthisrevenue procedure.
2009–14 I.R.B.749April 6, 2009

.01Specified fraudulent arrangement.
A specified fraudulent arrangement is an
arrangement in which a party (the lead
figure) receives cash or property from
investors; purports to earn income for
the investors; reports income amounts to
the investors that are partially or wholly
fictitious; makes payments, if any, of
purported income or principal to some in-
vestors from amounts that other investors
invested in the fraudulent arrangement;
and appropriates some or all of the in-
vestors’ cash or property. For example,
the fraudulent investment arrangement de-
scribed in Rev. Rul. 2009–9 is a specified
fraudulent arrangement.
.02Qualified loss. A qualified loss is a
loss resulting from a specified fraudulent
arrangement in which, as a result of the
conduct that caused the loss—
(1) The lead figure (or one of the lead
figures, if more than one) was charged by
indictment or information (not withdrawn
or dismissed) under state or federal law
with the commission of fraud, embezzle-
ment or a similar crime that, if proven,
would meet the definition of theft for pur-
poses of § 165 of the Internal Revenue
Code and § 1.165–8(d) of the Income Tax
Regulations, under the law of the jurisdic-
tion in which the theft occurred; or
(2) The lead figure was the subject of
a state or federal criminal complaint (not
withdrawn or dismissed) alleging the com-
mission of a crime described in section
4.02(1) of this revenue procedure, and ei-
ther—
(a) The complaint alleged an admission
by the lead figure, or the execution of an af-
fidavit by that person admitting the crime;
or
(b) A receiver or trustee was appointed
with respect to the arrangement or assets
of the arrangement were frozen.
.03Qualified investor. A qualified in-
vestor means a United States person, as de-
finedin§7701(a)(30)—
(1) That generally qualifies to deduct
theft losses under § 165 and § 1.165–8;
(2) That did not have actual knowledge
of the fraudulent nature of the investment
arrangement prior to it becoming known to
the general public;
(3) With respect to which the specified
fraudulent arrangement is not a tax shelter,
as defined in § 6662(d)(2)(C)(ii); and
(4) That transferred cash or property
to a specified fraudulent arrangement. A
qualified investor does not include a per-
sonthatinvestedsolelyinafundorother
entity (separate from the investor for fed-
eral income tax purposes) that invested
in the specified fraudulent arrangement.
However, the fund or entity itself may be a
qualified investor within the scope of this
revenue procedure.
.04Discovery year. A qualified in-
vestor’s discovery year is the taxable year
of the investor in which the indictment, in-
formation, or complaint described in sec-
tion 4.02 of this revenue procedure is filed.
.05Responsible group. Responsible
group means, for any specified fraudulent
arrangement, one or more of the following:
(1) The individual or individuals (in-
cluding the lead figure) who conducted the
specified fraudulent arrangement;
(2) Any investment vehicle or other en-
tity that conducted the specified fraudulent
arrangement, and employees, officers, or
directors of that entity or entities;
(3) A liquidation, receivership, bank-
ruptcy or similar estate established with re-
spect to individuals or entities who con-
ducted the specifiedfraudulent arrange-
ment, in order to recover assets for the ben-
efit of investors and creditors; or
(4) Parties that are subject to claims
brought by a trustee, receiver, or other
fiduciary on behalf of the liquidation, re-
ceivership, bankruptcy or similar estate de-
scribed in section 4.05(3) of this revenue
procedure.
.06Qualified investment.
(1) Qualified investment means the ex-
cess, if any, of —
(a) The sum of —
(i) The total amount of cash, or the basis
of property, that the qualified investor in-
vested in the arrangement in all years; plus
(ii) The total amount of net income with
respect to the specified fraudulent arrange-
ment that, consistent with information re-
ceived from the specified fraudulent ar-
rangement, the qualified investor included
in income for federal tax purposes for all
taxable years prior to the discovery year,
including taxable years for which a refund
is barred by the statute of limitations; over
(b) The total amount of cash or prop-
erty that the qualified investor withdrew in
all years from the specified fraudulent ar-
rangement (whether designated as income
or principal).
(2) Qualified investment does not in-
clude any of the following—
(a) Amounts borrowed from the respon-
sible group and invested in the specified
fraudulent arrangement, to the extent the
borrowed amounts were not repaid at the
time the theft was discovered;
(b) Amounts such as fees that were paid
to the responsible group and deducted for
federal income tax purposes;
(c) Amounts reported to the qualified
investor as taxable income that were not
included in gross income on the investor’s
federal income tax returns; or
(d) Cash or property that the qualified
investor invested in a fund or other entity
(separate from the qualified investor for
federal income tax purposes) that invested
in a specified fraudulent arrangement.
.07Actual recovery. Actual recovery
means any amount a qualified investor ac-
tually receives in the discovery year from
any source as reimbursement or recovery
for the qualified loss.
.08Potential insurance/SIPC recovery.
Potential insurance/SIPC recovery means
the sum of the amounts of all actual or
potential claims for reimbursement for a
qualified loss that, as of the last day of the
discovery year, are attributable to—
(1) Insurance policies in the name of the
qualified investor;
(2) Contractual arrangements other
than insurance that guaranteed or other-
wise protected against loss of the qualified
investment; or
(3) Amounts payable from the Se-
curities Investor Protection Corporation
(SIPC), as advances for customer claims
under 15 U.S.C. § 78fff–3(a) (the Securi-
ties Investor Protection Act of 1970), or by
a similar entity under a similar provision.
.09Potential direct recovery. Potential
direct recovery means the amount of all ac-
tual or potential claims for recovery for a
qualified loss, as of the last day of the dis-
covery year, against the responsible group.
.10Potential third-party recovery.Po-
tential third-party recovery means the
amount of all actual or potential claims
for recovery for a qualified loss, as of the
last day of the discovery year, that are not
describedinsection4.08or4.09ofthis
revenue procedure.
SECTION 5. APPLICATION
.01In general
. If a qualified investor
follows the procedures described in sec-
tion 6 of this revenue procedure, the Ser-
April 6, 20097502009–14 I.R.B.

vice will not challenge the following treat-
ment by the qualified investor of a quali-
fied loss—
(1) The loss is deducted as a theft loss;
(2) The taxable year in which the theft
was discovered within the meaning of
§ 165(e) is the discovery year described
in section 4.04 of this revenue procedure;
and
(3) The amount of the deduction is the
amount specified in section 5.02 of this
revenue procedure.
.02Amount to be deducted. The amount
specified in this section 5.02 is calculated
as follows—
(1) Multiply the amount of the qualified
investment by—
(a) 95 percent, for a qualified investor
that does not pursue any potential third-
party recovery; or
(b) 75 percent, for a qualified investor
that is pursuing or intends to pursue any
potential third-party recovery; and
(2) Subtract from this product the sum
of any actual recovery and any potential
insurance/SIPC recovery.
The amount of the deduction calculated
under this section 5.02 is not further re-
duced by potential direct recovery or po-
tential third-party recovery.
.03Future recoveries. The qualified
investor may have income or an addi-
tional deduction in a year subsequent to
the discovery year depending on the ac-
tual amount of the loss that is eventually
recovered.See§ 1.165–1(d); Rev. Rul.
2009–9.
SECTION 6. PROCEDURE
.01 A qualified investor that uses the
safe harbor treatment described in section
5 of this revenue procedure must—
(1) Mark “Revenue Procedure
2009–20” at the top of the Form 4684,Ca-
sualties and Thefts, for the federal income
tax return for the discovery year. The
taxpayer must enter the “deductible theft
loss” amount from line 10 in Part II of
Appendix A of this revenue procedure on
line 34, section B, Part I, of the Form 4684
and should not complete the remainder of
section B, Part I, of the Form 4684;
(2) Complete and sign the statement
provided in Appendix A of this revenue
procedure; and
(3) Attach the executed statement pro-
vided in Appendix A of this revenue proce-
dure to the qualified investor’s timely filed
(including extensions) federal income tax
return for the discovery year. Notwith-
standing the preceding sentence, if, before
April 17, 2009, the taxpayer has filed a re-
turn for the discovery year or an amended
return for a prior year that is inconsistent
with the safe harbor treatment provided by
this revenue procedure, the taxpayer must
indicate this fact on the executed statement
and must attach the statement to the return
(or amended return) for the discovery year
that is consistent with the safe harbor treat-
ment provided by this revenue procedure
and that is filed on or before May 15, 2009.
.02 By executing thestatement pro-
vided in Appendix A of this revenue
procedure, the taxpayer agrees—
(1) Not to deduct in the discovery year
any amount of the theft loss in excess of
the deduction permitted by section 5 of this
revenue procedure;
(2) Not to file returns or amended re-
turns to exclude or recharacterize income
reported with respect to the investment ar-
rangement in taxable years preceding the
discovery year;
(3) Not to apply the alternative compu-
tation in § 1341 with respect to the theft
loss deduction allowed by this revenue
procedure; and
(4) Not to apply the doctrine of equi-
table recoupment or the mitigation pro-
visionsin§§1311–1314withrespectto
income from the investment arrangement
that was reported in taxable years that are
otherwise barred by the period of limita-
tions on filing a claim for refund under
§6511.
SECTION 7. EFFECTIVE DATE
This revenue procedure applies to
losses for which the discovery year is a
taxable year beginning after December 31,
2007.
SECTION 8. TAXPAYERS THAT
DO NOT USE THE SAFE HARBOR
TREATMENT PROVIDED BY THIS
REVENUE PROCEDURE
.01 A taxpayer that chooses not to apply
the safe harbor treatment provided by this
revenue procedure to a claimed theft loss
is subject to all of the generally applica-
ble provisions governing the deductibility
of losses under § 165. For example, a tax-
payer seeking a theft loss deduction must
establish that the loss was from theft and
that the theft was discovered in the year
the taxpayer claims the deduction. The
taxpayer must also establish, through suf-
ficient documentation, the amount of the
claimed loss and must establish that no
claim for reimbursement of any portion of
the loss exists with respect to which there
is a reasonable prospect of recovery in the
taxable year in which the taxpayer claims
the loss.
.02 A taxpayer that chooses not to apply
the safe harbor treatment of this revenue
procedure to a claimed theft loss and that
files or amends federal income tax returns
for years prior to the discovery year to
exclude amounts reported as income to the
taxpayer from the investment arrangement
must establish that the amounts sought to
be excluded in fact were not income that
was actually or constructively received by
the taxpayer (or accrued by the taxpayer,
in the case of a taxpayer using an accrual
method of accounting). However, pro-
vided a taxpayer can establish the amount
of net income from the investment ar-
rangement that was reported and included
in the taxpayer’s gross income consistent
with information received from the spec-
ified fraudulent arrangement in taxable
years for which the period of limitation
on filing a claim for refund under § 6511
has expired, the Service will not challenge
the taxpayer’s inclusion of that amount in
basis for determining the amount of any
allowable theft loss, whether or not the
income was genuine.
.03 Returns claiming theft loss deduc-
tions from fraudulent investment arrange-
ments are subject to examination by the
Service.
SECTION 9. 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 in accor-
dance with the Paperwork Reduction Act
(44 U.S.C. 3507) under the following
control numbers: 1545–0074 Form 1040
(Individual Income Tax Return)andForm
1040X (Amended U.S. Individual Income
Tax Return); 1545–0123 Form 1120
(U.S. Corporation Income Tax Return);
1545–0132 Form 1120X (Amended
2009–14 I.R.B.751April 6, 2009

U.S. Corporation Income Tax Return);
1545–0092 Form 1041 (U.S. Income Tax
Return for Estates and Trusts); 1545–0099
Form 1065 (U.S. Return of Partnership
Income); 1545–0130 Form 1120S (U.S.
IncomeTaxReturnforanSCorporation).
Please refer to the Paperwork Reduction
Act statements accompanying these forms
for further information.
DRAFTING INFORMATION
The principal author of this revenue
procedure is Norma Rotunno of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Ms. Rotunno at (202) 622–7900.
April 6, 20097522009–14 I.R.B.

APPENDIX A
Statement by Taxpayer Using the Procedures in Rev. Proc. 2009–20 to Determine a Theft Loss
Deduction Related to a Fraudulent Investment Arrangement
Part 1.Identification
1. Name of Taxpayer
2. Taxpayer Identification Number
Part II.Computation of deduction
(See Rev. Proc. 2009–20 for the definitions of the terms used in this worksheet.)
LineComputation of Deductible Theft Loss Pursuant to Rev. Proc. 2009–20
1Initial investment
2Plus: Subsequent investments
3Plus: Income reported in prior years
4Less: Withdrawals()
5
Total qualified investment (combine lines 1 through 4)
6Percentage of qualified investment
(95% of line 5 for investors with no potential third-party recovery; 75% of line 5 for investors with
potential third-party recovery)
7Actual recovery
8Potential insurance/SIPC recovery
9Total recoveries (add lines 7 and 8)()
10Deductible theft loss (line 6 minus line 9)
Part III.Required statements and declarations
1. I am claiming a theft loss deduction pursuant to Rev. Proc. 2009–20 from a specified fraudulentarrangement conducted by the
following individual or entity (provide the name, address, and taxpayer identification number (if known)).
2. I have written documentation to support the amounts reported in Part II of this document.
3. I am a qualified investor as defined in § 4.03 of Rev. Proc. 2009–20.
4. If I have determined the amount of my theft loss deduction under § 5.02(1)(a) of Rev. Proc. 2009–20, I declare that I have not
pursued and do not intend to pursue any potential third-party recovery, as that term is defined in § 4.10 of Rev. Proc. 2009–20.
5. If I have already filed a return or amended return that does not satisfy the conditions in § 6.02 of Rev. Proc 2009–20, I agree to
all adjustments or actions that are necessary to comply with those conditions. The tax year or years for which I filed the return(s)
or amended return(s) and the date(s) on which they were filed are as follows:
2009–14 I.R.B.753April 6, 2009

Part IV.Signature
I make the following agreements and declarations:
1. I agree to comply with the conditions and agreements set forth in Rev. Proc. 2009–20 and this document.
2. Under penalties of perjury, I declare that the information provided in Parts I-III of this document is, to the best of my
knowledge and belief, true, correct and complete.
Your signature here
Date signed:
Your spouse’s signature hereDate signed:
Corporate Name
Corporate Officer’s signature
Title
Date signed
Entity Name
S-corporation, Partnership, Limited Liability Company, Trust
Entity Offi
cer’s signature
Date signed
Signature of executor
Date signed
April 6, 20097542009–14 I.R.B.

Part IV. Items o
fGeneralInterest
Request for Pu
blic
Comments Rega
rding Exempt
Organization
s Division Web
Site
Announcemen
t 2009–25
Purpose
This Announc
ement invites public
comments on h
ow to improve the Internal
Revenue Ser
vice’s Exempt Organizations
Division We
bsite(www.irs.gov/eo).
Background
The Custome
r Education and Outreach
(CE&O) func
tion of the Exempt Organiza-
tions Divis
ion (EO), Internal Revenue Ser-
vice (IRS)
, is responsible for managing the
EO Web site
(www.irs.gov/eo). CE&O has
found that
, as the site has grown, display-
ing inform
ation in a logical and easy-to-
use format
has become challenging.
In an effor
ttoimprovetheWebsite,the
IRS is seek
ing comments from the public
in two spe
cific areas:
•Reorgani
zing existing information to
make it ea
sier to find.
•Adding co
ntent that serve the needs of
tax-exem
pt organizations.
The publi
c should consider the follow-
ing quest
ions when making comments:
•How do you
access the irs.gov web
site?
•Type in ir
s.gov as the URL
•Via a sear
ch engine (Google,
Yahoo, et
c.)
•Through a
bookmark, favorites, or
history v
iew to reach a specific
page
•Do you hav
e another preferred site
entry pag
e? If so, what is it?
•How do you
find material on the site?
•Do you use
the irs.gov search en-
gine?
•Do you go d
irectly to the Charities
and Non-P
rofits page to browse?
•Do you use
theFrequently Asked
Question
s for Exempt Organiza-
tions?
•Do you use
any of ourLife Cycle
pages?
•Do you use theM
ore Topicspage?
•Do you use theCh
arities & Non-Prof-
its Topicslist
ed on the navigation bar
at the left sid
e of the page? If not, are
there other to
pics that should be substi-
tuted?
•What types of a
udience or role would
be the most hel
pful to you for organiz-
ing informati
on?
•Level of sophi
stication (i.e.,new
organization
s and established orga-
nizations)
•Practitione
rs
•Managers and e
xecutives
•Types of tax-e
xempt organizations
•What do you com
etotheirs.govweb-
site to do?
•Find general i
nformation on stay-
ing tax-exemp
t
•Find a specifi
c publication or
brochure
•Find step-by-
step filing instruc-
tions
•What topics or
type of content should
be available t
o suit your needs?
•Do you subscri
be to theEO Update
electronic ne
wsletter? If not, why? If
so:
•How did you lea
rn about it?
•How can we expa
nd our reader-
ship?
•What other con
tent should be in-
cluded?
Request for Comments
Members of t
he public may submit
comments by
electronic message, by mail,
or by hand de
livery. All comments should
refer to Ann
ouncement 2009–25, and may
be mailed to
:
Internal Revenue Service
Attn: Amelia Henchey
CE&O, T:EO:CEO (3B6)
1111 Constitution Avenue, N.W.
Washington, DC 20224
Hand-del
ivered items may be delivered
Monday th
rough Friday between the hours
of 8:00 a
.m. and 5:00 p.m. to:
Courier’s Des
k
Internal Reve
nue Service
1111 Constitu
tion Ave., N.W.
Washington, D
C 20224
Attn: Amelia H
enchey
CE&O, T:EO:C
EO (3B6)
Comments may b
e submitted electroni-
cally to:
EO.Web.Comme
nts@irs.gov.Please in-
clude Announ
cement 2009–25 in the sub-
ject line of a
ny electronic communications.
All comments
will be available for pub-
lic inspecti
on and copying in their entirety.
Considerati
on will be given to any written
public comme
nts that are received by May
25, 2009. EO
regretsthatitwillbeun-
able to resp
ond individually to comments
or drafts.
Drafting In
formation
The principa
l author of this announce-
ment is Ameli
a Henchey of Exempt
Organizati
ons. For further information
regarding t
his announcement, contact
Amelia Henc
hey at 202–283–8856 (not a
toll-free c
all).
Request for Pu
blic Comments
on New Academi
c Institution
Initiative
Announcemen
t 2009–26
The Customer E
ducation and Outreach
(CE&O) functi
on of the Exempt Organiza-
tion divisio
n of the Internal Revenue Ser-
vice (IRS) wa
s established in 2000 to de-
velop the str
ategic direction of the nation-
wide educati
on and outreach programs for
exempt orga
nizations. Specifically, this
office deve
lops and delivers programs and
products de
signed to assist exempt orga-
nizations t
o better understand their tax re-
sponsibili
ties that are required by the Inter-
nal Revenu
eCode.
Many academ
ic institutions offer de-
gree progr
ams that develop, cultivate, and
promote pr
ofessionals who shape the ex-
empt organ
ization sector. The student pop-
ulations o
f these academic institutions may
one day be t
he leaders and managers of the
exempt or
ganizations that makeup the non-
profit se
ctor. Hence, CE&O believes that
2009–14 I.R.B.755April 6, 2009

the students of these academic institutions
are an important audience to reach with ed-
ucation and outreach programs.
Therefore, CE&O is in the process of
developing a new academic program ini-
tiative that will reach out directly to aca-
demic institutions that offer degrees re-
lated to the non-profit sector. Through
the use of our existing tools and the pos-
sible development of additional resources,
CE&O proposes to collaborate with these
institutions to promote the education of ex-
empt organization tax law.
The IRS invites comments and sugges-
tions for the implementation and content
of the proposed initiative. First, the IRS is
requesting general responses to this initia-
tive. Second, the IRS is seeking individ-
uals and/or institution volunteers willing
to provide more extensive input into and
feedback on the proposed initiative. While
the IRS might not be able to accommodate
all volunteers, it will take steps to ensure
that a diverse range of viewpoints are rep-
resented.
The IRS invites interested members of
the public to submit written suggestions
to help shape this initiative. All submis-
sions will be available for public inspec-
tion and copying in their entirety. Mem-
bers of the public may submit suggestions
or drafts by email, mail, or hand-delivery.
All comments should refer to Announce-
ment 2009–26, and may be mailed to:
Internal Revenue Service
Attn: Pilar Oberwetter
CE&O, T:EO:CEO (3D1)
1111 Constitution Avenue
Washington, DC 20224
Hand delivered items may be delivered
Monday through Friday between the hours
of 8:00 a.m. and 5:00 p.m., to:
Courier’s Desk
Internal Revenue Service
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Attn: Pilar Oberwetter
CE&O, T:EO:CEO (3D1)
Comments may be submitted electron-
ically to:academic.initiative@irs.gov.
Please include Announcement 2009–26 in
the subject line of any electronic commu-
nications.
Exempt Organizations regrets that it
will be unable to respond individually
to suggestions or drafts. All comments
should be received by June 6, 2009.
DRAFTING INFORMATION
The principal author of this announce-
mentisPilarOberwetterofExempt
Organizations. For further information
regarding this announcement, contact
Pilar Oberwetter at (202) 283–8946 (not a
toll-free call).
Deletions From Cumulative
List of Organizations
Contributions to Which
are Deductible Under Section
170 of the Code
Announcement 2009–27
The Internal Revenue Service has re-
voked its determination that the organi-
zations listed below qualify as organiza-
tions described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.
Generally, the Service will not disallow
deductions for contributions made to a
listed organization on or before the date
of announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the Service is not
precluded from disallowing a deduction
for any contributions made after an or-
ganization ceases to qualify under section
170(c)(2) if the organization has not timely
filed a suit for declaratory judgment under
section 7428 and if the contributor (1) had
knowledge of the revocation of the ruling
or determination letter, (2) was aware that
such revocation was imminent, or (3) was
in part responsible for or was aware of the
activities or omissions of the organization
that brought about this revocation.
If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on April 6, 2009, and
would end on the date the court first deter-
mines that the organization is not described
in section 170(c)(2) as more particularly
set forth in section 7428(c)(1). For indi-
vidual contributors, the maximum deduc-
tion protected is $1,000, with a husband
and wife treated as one contributor. This
benefit is not extended to any individual, in
wholeorinpart,fortheactsoromissions
of the organization that were the basis for
revocation.
Rocky Mountain Big Horn Sheep
Foundation
Red River, MN
Skippers Learning Center
Lake City, SC
Reliable Cash Management Association
Buffalo Grove, IL
Pecan Park Learning Center
Jackson, MS
Brucker Charitable Foundation
Mountain Home, TX
N. U. Yoga Ashrama in America
Winter, WI
Housing Development Group
Denver, CO
National Business Fellowship Foundation
Raeford, NC
GIK Foundation
Bellevue, WA
Debt Free Foundation, Inc.
Provo, UT
Urban Light Community Development
Houston, TX
Sweet Life Program
Las Vegas, NV
Ladoras Family Services Inc
Compton, CA
Robert and Donna Herbolich Charitable
Supporting
Hudson, OH
Three Point Volunteer Fire Department,
Inc.
Williamsburg, KY
Advance Practice Foundation, Inc.
Basking Ridge, NJ
Goodwill Industries of Greater Cleveland,
Inc.
Cleveland, OH
World Project Inc.
Temecula, CA
Sandton Lifestyles
Los Angeles, CA
Dunn-Mason Foundation
Farmington Hills, MI
Walter E & Romell A King Foundation
Gary, IN
April 6, 20097562009–14 I.R.B.

Withholding Under Internal
Revenue Code Section
3402(t); Hearing
Announcement 2009–29
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Notice of public hearing on pro-
posed rulemaking.
SUMMARY: This document provides
notice of public hearing on a notice of
proposed rulemaking (REG–158747–06,
2009–4 I.R.B. 362) relating to withhold-
ing under section 3402(t) of the Internal
Revenue Code. The proposed regulations
reflect changes in the law made by the Tax
Increase Prevention and Reconciliation
Act of 2005 that require Federal, State,
and local government entities to withhold
incometaxwhenmakingpaymentsto
persons providing property or services.
These proposed regulations provide guid-
ance to assist the government entities in
complying with section 3402(t). The reg-
ulations also provide certain guidance to
persons receiving payments for property
or services from government entities.
DATES: The public hearing is being held
on April 16, 2009, at 10 a.m. The IRS must
receive outlines of the topics to be dis-
cussed at the hearing by March 25, 2009.
ADDRESSES: The public hearing is being
held in the auditorium, Internal Revenue
Building, 1111 Constitution Avenue, NW,
Washington, DC. Send submissions to:
CC:PA:LPD:PR (REG–158747–06), room
5203, Internal Revenue Service, P.O. Box
7604, Ben Franklin Station, Washing-
ton, DC 20044. Submissions may be
hand-delivered Monday through Friday
betweenthehoursof8a.m. and4p.m.
to CC:PA:LPD:PR (REG–158747–06),
Courier’s Desk, Internal Revenue Service,
1111 Constitution Avenue, NW, Wash-
ington, DC. Alternatively, taxpayers may
submit electronic outlines of oral com-
ments via the Federal eRulemaking Portal
athttp://www.regulations.gov.
FOR FURTHER INFORMATION
CONTACT: Concerning these pro-
posed regulations, Jean Casey, (202)
622–6040; concerning submissions of
comments, the hearing, and/or to be
placed on the building access list to at-
tend the hearing, Richard A. Hurst at
Richard.A.Hurst@irscounsel.treas.govor
(202) 622–7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
The subject of the public hearing is
the notice of proposed rulemaking
(REG–158747–06) that was published in
theFederal Registeron Friday, Decem-
ber 5, 2008 (73 FR 74082).
Persons,whowishtopresentoralcom-
ments at the hearing that submitted writ-
ten comments, must submit an outline of
the topics to be discussed and the amount
of time to be devoted to each topic (signed
original and eight (8) copies) by March 25,
2009.
A period of 10 minutes is allotted to
each person for presenting oral comments.
After the deadline for receiving out-
lines has passed, the IRS will prepare an
agenda containing the schedule of speak-
ers. Copies of the agenda will be made
available, free of charge, at the hearing or
in the Freedom of Information Reading
Room (FOIA RR) (Room 1621) which
is located at the 11
th
and Pennsylvania
Avenue NW entrance, 1111 Constitution
Avenue, NW, Washington, DC.
Because of access restrictions, the IRS
will not admit visitors beyond the imme-
diateentranceareamorethan30minutes
before the hearing starts. For informa-
tion about having your name placed on the
building access list to attend the hearing,
see the FOR FURTHER INFORMATION
CONTACT section of this document.
LaNita Van Dyke,
Chief, Publications and
Regulations Branch,
Legal Processing Division,
Associate Chief Counsel
(Procedure and Administration).
(Filed by the Office of the Federal Register on March 18,
2009, 8:45 a.m., and published in the issue of the Federal
Register for March 19, 2009, 74 F.R. 11699)
2009–14 I.R.B.757April 6, 2009

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.
April 6, 2009i2009–14 I.R.B.

Numerical Finding List
1
Bulletins 2009–1 through 2009–14
Announcements:
2009-1, 2009-1 I.R.B.242
2009-2, 2009-5 I.R.B.424
2009-3, 2009-6 I.R.B.459
2009-4, 2009-8 I.R.B.597
2009-5, 2009-8 I.R.B.569
2009-6, 2009-9 I.R.B.643
2009-7, 2009-10 I.R.B.663
2009-8, 2009-8 I.R.B.598
2009-9, 2009-9 I.R.B.643
2009-10, 2009-9 I.R.B.644
2009-11, 2009-10 I.R.B.663
2009-12, 2009-11 I.R.B.686
2009-13, 2009-11 I.R.B.686
2009-14, 2009-11 I.R.B.687
2009-15, 2009-11 I.R.B.687
2009-16, 2009-11 I.R.B.691
2009-17, 2009-12 I.R.B.714
2009-18, 2009-12 I.R.B.714
2009-19, 2009-12 I.R.B.715
2009-20, 2009-12 I.R.B.716
2009-21, 2009-13 I.R.B.730
2009-22, 2009-13 I.R.B.731
2009-23, 2009-13 I.R.B.731
2009-24, 2009-13 I.R.B.732
2009-25, 2009-14 I.R.B.755
2009-26, 2009-14 I.R.B.755
2009-27, 2009-14 I.R.B.756
2009-29, 2009-14 I.R.B.757
Notices:
2009-1, 2009-2 I.R.B.250
2009-2, 2009-4 I.R.B.344
2009-3, 2009-2 I.R.B.250
2009-4, 2009-2 I.R.B.251
2009-5, 2009-3 I.R.B.309
2009-6, 2009-3 I.R.B.311
2009-7, 2009-3 I.R.B.312
2009-8, 2009-4 I.R.B.347
2009-9, 2009-5 I.R.B.419
2009-10, 2009-5 I.R.B.419
2009-11, 2009-5 I.R.B.420
2009-12, 2009-6 I.R.B.446
2009-13, 2009-6 I.R.B.447
2009-14, 2009-7 I.R.B.516
2009-15, 2009-6 I.R.B.449
2009-16, 2009-8 I.R.B.572
2009-17, 2009-8 I.R.B.575
2009-18, 2009-10 I.R.B.648
2009-19, 2009-10 I.R.B.660
2009-20, 2009-12 I.R.B.711
2009-21, 2009-13 I.R.B.724
Notices— Continued:
2009-22, 2009-14 I.R.B.741
Proposed Regulations:
REG-144615-02, 2009-7 I.R.B.561
REG-148568-04, 2009-5 I.R.B.421
REG-160872-04, 2009-4 I.R.B.358
REG-158747-06, 2009-4 I.R.B.362
REG-116699-07, 2009-13 I.R.B.727
REG-138326-07, 2009-9 I.R.B.638
REG-143686-07, 2009-8 I.R.B.579
REG-150670-07, 2009-4 I.R.B.378
REG-113462-08, 2009-4 I.R.B.379
REG-147636-08, 2009-9 I.R.B.641
REG-150066-08, 2009-5 I.R.B.423
Revenue Procedures:
2009-1, 2009-1 I.R.B.1
2009-2, 2009-1 I.R.B.87
2009-3, 2009-1 I.R.B.107
2009-4, 2009-1 I.R.B.118
2009-5, 2009-1 I.R.B.161
2009-6, 2009-1 I.R.B.189
2009-7, 2009-1 I.R.B.226
2009-8, 2009-1 I.R.B.229
2009-9, 2009-2 I.R.B.256
2009-10, 2009-2 I.R.B.267
2009-11, 2009-3 I.R.B.313
2009-12, 2009-3 I.R.B.321
2009-13, 2009-3 I.R.B.323
2009-14, 2009-3 I.R.B.324
2009-15, 2009-4 I.R.B.356
2009-16, 2009-6 I.R.B.449
2009-17, 2009-7 I.R.B.517
2009-18, 2009-11 I.R.B.670
2009-19, 2009-14 I.R.B.747
2009-20, 2009-14 I.R.B.749
Revenue Rulings:
2009-1, 2009-2 I.R.B.248
2009-2, 2009-2 I.R.B.245
2009-3, 2009-5 I.R.B.382
2009-4, 2009-5 I.R.B.408
2009-5, 2009-6 I.R.B.432
2009-6, 2009-12 I.R.B.694
2009-7, 2009-13 I.R.B.717
2009-8, 2009-10 I.R.B.645
2009-9, 2009-14 I.R.B.735
2009-10, 2009-14 I.R.B.738
Tax Conventions:
2009-5, 2009-8 I.R.B.569
Treasury Decisions:
9434, 2009-4 I.R.B.339
9435, 2009-4 I.R.B.333
Treasury Decisions— Continued:
9436, 2009-3 I.R.B.268
9437, 2009-4 I.R.B.341
9438, 2009-5 I.R.B.387
9439, 2009-5 I.R.B.416
9440, 2009-5 I.R.B.409
9441, 2009-7 I.R.B.460
9442, 2009-6 I.R.B.434
9443, 2009-8 I.R.B.564
9444, 2009-9 I.R.B.603
9445, 2009-9 I.R.B.635
9446, 2009-9 I.R.B.607
9447, 2009-12 I.R.B.694
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin
2008–52, dated December 29, 2008.
2009–14 I.R.B.iiApril 6, 2009

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2009–1 through 2009–14
Notices:
99-35
Obsoleted by
Notice 2009-15, 2009-6 I.R.B.449
2001-55
Modified by
Notice 2009-1, 2009-2 I.R.B.250
2002-27
Modified by
Notice 2009-9, 2009-5 I.R.B.419
2005-74
Obsoleted by
T.D. 9446, 2009-9 I.R.B.607
2007-26
Modified by
Notice 2009-15, 2009-6 I.R.B.449
2007-54
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
2008-11
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
2008-12
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
Rev. Proc. 2009-11, 2009-3 I.R.B.313
2008-13
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
List of forms modified and superseded by
Rev. Proc. 2009-11, 2009-3 I.R.B.313
Modified and clarified by
Notice 2009-5, 2009-3 I.R.B.309
2008-46
Obsoleted by
T.D. 9436, 2009-3 I.R.B.268
Rev. Proc. 2009-11, 2009-3 I.R.B.313
2008-100
Amplified and superseded by
Notice 2009-14, 2009-7 I.R.B.516
Proposed Regulations:
REG-144615-02
Corrected by
Ann. 2009-19, 2009-12 I.R.B.715
REG-149519-03
Withdrawn by
Ann. 2009-4, 2009-8 I.R.B.597
Proposed Regulations— Continued:
REG-148326-05
Corrected by
Ann. 2009-14, 2009-11 I.R.B.687
REG-158747-06
Hearing scheduled by
Ann. 2009-29, 2009-14 I.R.B.757
Revenue Procedures:
2007-17
Superseded by
Rev. Proc. 2009-14, 2009-3 I.R.B.324
2007-68
Superseded by
Rev. Proc. 2009-17, 2009-7 I.R.B.517
2007-71
Modified by
Notice 2009-3, 2009-2 I.R.B.250
2008-1
Superseded by
Rev. Proc. 2009-1, 2009-1 I.R.B.1
2008-2
Superseded by
Rev. Proc. 2009-2, 2009-1 I.R.B.87
2008-3
Superseded by
Rev. Proc. 2009-3, 2009-1 I.R.B.107
2008-4
Superseded by
Rev. Proc. 2009-4, 2009-1 I.R.B.118
2008-5
Superseded by
Rev. Proc. 2009-5, 2009-1 I.R.B.161
2008-6
Superseded by
Rev. Proc. 2009-6, 2009-1 I.R.B.189
2008-7
Superseded by
Rev. Proc. 2009-7, 2009-1 I.R.B.226
2008-8
Superseded by
Rev. Proc. 2009-8, 2009-1 I.R.B.229
2008-9
Superseded by
Rev. Proc. 2009-9, 2009-2 I.R.B.256
2008-17
Obsoleted in part by
Rev. Proc. 2009-18, 2009-11 I.R.B.670
2008-61
Superseded by
Rev. Proc. 2009-3, 2009-1 I.R.B.107
Revenue Procedures— Continued:
2008-65
Amplified and supplemented by
Rev. Proc. 2009-16, 2009-6 I.R.B.449
2008-68
Amplified and superseded by
Rev. Proc. 2009-15, 2009-4 I.R.B.356
Revenue Rulings:
65-286
Obsoleted by
T.D. 9435, 2009-4 I.R.B.333
71-381
Obsoleted in part by
Rev. Rul. 2009-9, 2009-14 I.R.B.735
76-54
Obsoleted by
T.D. 9435, 2009-4 I.R.B.333
92-19
Supplemented by
Rev. Rul. 2009-3, 2009-5 I.R.B.382
2008-19
Modified by
Rev. Rul. 2009-3, 2009-5 I.R.B.382
Treasury Decisions:
9436
Corrected by
Ann. 2009-15, 2009-11 I.R.B.687
9439
Corrected by
Ann. 2009-12, 2009-11 I.R.B.686
9441
Corrected by
Ann. 2009-18, 2009-12 I.R.B.714
9442
Corrected by
Ann. 2009-13, 2009-11 I.R.B.686
Ann. 2009-20, 2009-12 I.R.B.716
9446
Corrected by
Ann. 2009-23, 2009-13 I.R.B.731
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2008–27 through 2008–52 is in Internal Revenue Bulletin 2008–52, dated December 29,
2008.
April 6, 2009iii2009–14 I.R.B.

INTERNAL REVENUE BULLETIN
The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletin is sold on a yearly subscription basis by the Superintendent of Documents. Current subscribers are notified by the Superin-
tendent of Documents when their subscriptions must be renewed.
CUMULATIVE BULLETINS
The contents of this weekly Bulletin are consolidated semiannually into a permanent, indexed, Cumulative Bulletin. These are
sold on a single copy basis andare notincluded as part of the subscription to the Internal Revenue Bulletin. Subscribers to the weekly
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HOW TO ORDER
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would be pleased to hear from you. You can email us your suggestions or comments through the IRS Internet Home Page (www.irs.gov)
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