Internal Revenue Bulletin 2018-18 (PDF rendition): IRS Revenue Rulings

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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.
Administrative
Notice 2018–38, page 522.
This notice provides guidance to corporations on changes
made by recent legislation to federal income tax rates for
corporations under § 11(b) of the Internal Revenue Code
(Code) and the alternative minimum tax for corporations under
§ 55 and the application of § 15 in determining the federal
income tax (including the alternative minimum tax) of a corpo-
ration for a tax year that begins before January 1, 2018 and
ends after December 31, 2017.
Rev. Proc. 2018–22, page 524.
This procedure modifies and supersedes sections 3.08 and
3.10 of Rev. Proc. 2018 –18, 2018 –10 I.R.B. 392. Section
3.08 is amended to reflect an increase in the state housing
credit ceiling enacted pursuant to Division T, of the Consoli-
dated Appropriations Act, 2018, P.L. 115–141. Section 3.10
is amended to correct an error concerning the alternative
minimum tax phaseout threshold amount for estates and
trusts.
Rev. Proc. 2018–25, page 543.
This revenue procedure provides: (1) tables of limitations on
depreciation deductions for owners of passenger automobiles
first placed in service by the taxpayer during calendar year
2018; and (2) a table of amounts that must be included in
income by lessees of passenger automobiles first leased by
the taxpayer during calendar year 2018. For purposes of this
revenue procedure, the term “passenger automobiles” in-
cludes trucks and vans.
Employment Tax
Rev. Proc. 2018–24, page 525.
This procedure provides general rules and specifications from
the IRS for paper and computer– generated substitutes for
Form 941, Schedule B (Form 941), Schedule D (Form 941),
Schedule R (Form 941) and Form 8974. This procedure will be
reproduced as the next revision of Publication 4436. 2017–
32, 2017–17 I.R.B. 1109, dated April 24, 2017, is super-
seded.
Estate Tax
Rev. Proc. 2018–22, page 524.
This procedure modifies and supersedes sections 3.08 and
3.10 of Rev. Proc. 2018 –18, 2018 –10 I.R.B. 392. Section
3.08 is amended to reflect an increase in the state housing
credit ceiling enacted pursuant to Division T, of the Consoli-
dated Appropriations Act, 2018, P.L. 115–141. Section 3.10
is amended to correct an error concerning the alternative
minimum tax phaseout threshold amount for estates and
trusts.
Income Tax
Notice 2018–35, page 520.
This notice provides transitional guidance relating to advance
payments under Rev. Proc. 2004 –34, 2004 –1 C.B. 991, as
modified and clarified by Rev. Proc. 2011–18, 2011–5 I.R.B.
443, and Rev. Proc. 2013–29, 2013–33 I.R.B. 141, and as
modified by Rev. Proc. 2011–14, 2011– 4 I.R.B. 330. Section
13221 of “An Act to provide for reconciliation pursuant to titles
II and V of the concurrent resolution on the budget for fiscal
year 2018,” Pub. L. 115–97, amended section 451 of the
Finding Lists begin on page ii.
Bulletin No. 2018–18
April 30, 2018

Internal Revenue Code. This notice provides that taxpayers,
with or without applicable financial statements, receiving ad-
vance payments may continue to rely on Rev. Proc. 2004 –34
until future guidance is effective.
Notice 2018–37, page 521.
This notice announces that the Department of the Treasury and
the Internal Revenue Service intend to issue regulations pro-
viding clarification of the application of the effective date pro-
visions concerning the repeal of section 682 of the Internal
Revenue Code enacted on December 22, 2017, by “An Act to
provide for reconciliation pursuant to titles II and V of the
concurrent resolution of the budget for fiscal year 2018,” P.L.
115–97 (Act). The regulations will provide that section 682, as
in effect prior to December 22,2017, will continue to apply with
regard to trust income payable to a former spouse who was
divorced or legally separated under a divorce or separation
instrument (as defined in section 71(b)(2)) executed on or
before December 31, 2018, unless such instrument is modi-
fied after that date and the modification provides that the
changes made by the Act apply to the modification. The notice
also requests comments on whether guidance is needed with
respect to the application of sections 672(e)(1)(A), 674(d), and
677 of the Code to trusts for the benefit of a spouse following
a divorce or separation.
Rev. Proc. 2018–22, page 524.
This procedure modifies and supersedes sections 3.08 and
3.10 of Rev. Proc. 2018 –18, 2018 –10 I.R.B. 392. Section
3.08 is amended to reflect an increase in the state housing
credit ceiling enacted pursuant to Division T, of the Consoli-
dated Appropriations Act, 2018, P.L. 115–141. Section 3.10
is amended to correct an error concerning the alternative
minimum tax phaseout threshold amount for estates and
trusts.
Rev. Proc. 2018–24, page 525.
This procedure provides general rules and specifications from
the IRS for paper and computer– generated substitutes for
Form 941, Schedule B (Form 941), Schedule D (Form 941),
Schedule R (Form 941) and Form 8974. This procedure will be
reproduced as the next revision of Publication 4436. 2017–
32, 2017–17 I.R.B. 1109, dated April 24, 2017, is super-
seded.
Rev. Proc. 2018–26, page 546.
This revenue procedure provides certain remedial actions that
issuers of State and local tax-exempt bonds and other tax-
advantaged bonds (as defined in § 1.150 –1(b) of the Income
Tax Regulations) may take to preserve the tax-advantaged
status of the bonds when certain nonqualified uses of the bond
proceeds occur.
Rev. Rul. 2018–11, page 518.
The revenue ruling provides the dollar amounts, increased by
the 2018 adjustment for inflation, to determine whether a debt
instrument is a qualified debt instrument or a cash method debt
instrument under section 1274A of the Internal Revenue Code.

The IRS Mission
Provide America’s taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
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Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly.
It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal 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, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—1986 Code.
This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion 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 Sec-
retary (Enforcement).
Part IV.—Items of General Interest.
This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
April 30, 2018Bulletin No. 2018–18

Part I. Rulings and Decisions Under the Internal Revenue Code
of 1986
Section 1274A.—Special
Rules for Certain Trans-
actions Where Stated
Principal Amount Does
Not Exceed $2,800,000
26 CFR 1.1274A–1: Special rules for certain trans-
actions where stated principal amount does not ex-
ceed $2,800,000. (Also §§ 483, 1274.)
Rev. Rul. 2018–11
This revenue ruling provides the dollar
amounts, increased by the 2018 adjust-
ment for inflation, for § 1274A of the
Internal Revenue Code.
BACKGROUND
In general, §§ 483 and 1274 determine
the principal amount of a debt instrument
given in consideration for the sale or ex-
change of nonpublicly traded property. In
addition, any interest on a debt instrument
subject to § 1274 is taken into account
under the original issue discount provi-
sions of the Code. Section 1274A, how-
ever, modifies the rules under §§ 483 and
1274 for certain types of debt instruments.
In the case of a “qualified debt instru-
ment,” the discount rate used for purposes
of §§ 483 and 1274 may not exceed nine
percent, compounded semiannually. Sec-
tion 1274A(b) defines a qualified debt in-
strument as any debt instrument given in
consideration for the sale or exchange of
property (other than new § 38 property
within the meaning of § 48(b), as in effect
on the day before the date of enactment of
the Revenue Reconciliation Act of 1990)
if the stated principal amount of the in-
strument does not exceed the amount
specified in § 1274A(b). For debt instru-
ments arising out of sales or exchanges
before January 1, 1990, this amount is
$2,800,000.
In the case of a “cash method debt
instrument,” as defined in § 1274A(c), the
borrower and lender may elect to use the
cash receipts and disbursements method
of accounting. In particular, for any cash
method debt instrument, § 1274 does not
apply, and interest on the instrument is
accounted for by both the borrower and
the lender under the cash receipts and
disbursements method of accounting. A
cash method debt instrument is a qualified
debt instrument that meets the following
additional requirements: (A) in the case of
a debt instrument arising out of a sale or
exchange before January 1, 1990, the
stated principal amount does not exceed
$2,000,000; (B) thelender does not use an
accrual method of accounting and is not a
dealer with respect to the property sold or
exchanged; (C) § 1274 would have applied
to the debt instrument but for an election
under § 1274A(c); and (D) an election under
§ 1274A(c) is jointly made with respect to
the debt instrument by the borrower and the
lender. Section 1.1274A–1(c)(1) of the In-
come Tax Regulations provides rules con-
cerning the time for, and manner of, making
this election.
For taxable years beginning on or be-
fore December 31, 2017, § 1274A(d)(2)
provided that, for any debt instrument
arising out of a sale or exchange during
any calendar year after 1989, the dollar
amounts stated in § 1274A(b) and
§ 1274A(c)(2)(A) were increased by the
inflation adjustment for the calendar year.
Any increase due to the inflation adjust-
ment was rounded to the nearest multiple
of $100 (or, if the increase was a multiple
of $50 and not of $100, the increase was
increased to the nearest multiple of $100).
The inflation adjustment for any calendar
year was the percentage (if any) by which
the CPI for the preceding calendar year
exceeded the CPI for calendar year 1988.
Section 1274A(d)(2)(B) defined the CPI
for any calendar year as the average of the
Consumer Price Index as of the close of
the 12-month period ending on September
30 of that calendar year.
For taxable years beginning after De-
cember 31, 2017, section 11002(d)(10) of
An Act to provide for reconciliation pursu-
ant to titles II and V of the concurrent
resolution on the budget for fiscal year
2018, Pub. L. 115–97 (the Act), amended
§ 1274A(d)(2) to change the calculation of
the adjustments for inflation. As amended
by the Act, § 1274A(d)(2) provides that the
dollar amounts stated in § 1274A(b) and
(c)(2)(A) areeach increased by an adjust-
ment for inflation determined by multi-
plying the stated amount by the cost-of-
living (COL) adjustment determined
under § 1(f)(3) for the calendar year in
which the taxable year begins, by sub-
stituting “calendar year 1988” for “cal-
endar year 2016” in § 1(f)(3)(A)(ii).
Thus, for purposes of § 1274A(d)(2), the
COL adjustment for any calendar year is
the percentage (if any) by which (i) the
C-CPI-U for the preceding calendar year
exceeds (ii) the CPI for calendar year
1988, multiplied by the amount deter-
mined in § 1(f)(3)(B). The amount de-
termined in § 1(f)(3)(B) is the C-CPI-U
for calendar year 2016 divided by the
CPI for calendar year 2016. Section
1(f)(4) defines the CPI for any calendar
year as the average of the Consumer
Price Index for All Urban Consumers as
of the close of the 12-month period end-
ing on August 31 of that calendar year.
Section 1(f)(6)(B) defines the C-CPI-U
for any calendar year as the average of the
Chained Consumer Price Index for All Ur-
ban Consumers as of the close of the 12-
month period ending on August 31 of such
calendar year. Under § 1274A(d)(2), any
increase in an adjustment for inflation is
rounded to the nearest multiple of $100 (or,
if such increase is a multiple of $50, such
increase shall be increased to the nearest
multiple of $100).
INFLATION-ADJUSTED AMOUNTS
UNDER § 1274A
For debt instruments arising out of
sales or exchanges after December 31,
1989, the inflation-adjusted amounts un-
der § 1274A are shown in Table 1.
April 30, 2018Bulletin No. 2018–18
518

Rev. Rul. 2018–11 Table 1
Inflation-Adjusted Amounts Under Section 1274A
Calendar Year of Sale
or Exchange
1274A(b) Amount (qualified
debt instrument)
1274A(c)(2)(A) Amount (cash
method debt instrument)
1990$2,933,200$2,095,100
1991$3,079,600$2,199,700
1992$3,234,900$2,310,600
1993$3,332,400$2,380,300
1994$3,433,500$2,452,500
1995$3,523,600$2,516,900
1996$3,622,500$2,587,500
1997$3,723,800$2,659,900
1998$3,823,100$2,730,800
1999$3,885,500$2,775,400
2000$3,960,100$2,828,700
2001$4,085,900$2,918,500
2002$4,217,500$3,012,500
2003$4,280,800$3,057,700
2004$4,381,300$3,129,500
2005$4,483,000$3,202,100
2006$4,630,300$3,307,400
2007$4,800,800$3,429,100
2008$4,913,400$3,509,600
2009$5,131,700$3,665,500
2010$5,115,100$3,653,600
2011$5,201,300$3,715,200
2012$5,339,300$3,813,800
2013$5,468,200$3,905,900
2014$5,557,200$3,969,500
2015$5,647,300$4,033,800
2016$5,664,800$4,046,300
2017$5,717,400$4,083,800
2018$5,831,500
1
$4,165,300
2
Notes:The inflation adjustments for 1990-2017 were computed using the All-Urban, Consumer Price Index, 1982–1984
base, published by the Bureau of Labor Statistics.
For taxable years beginning after December 31, 2017, the adjustment for inflation is computed using the Chained
Consumer Price Index for All Urban Consumers, 1999 base, and the All-Urban, Consumer Price Index, 1982–1984
base, both published by the Bureau of Labor Statistics.
EFFECT ON OTHER DOCUMENTS
Rev. Rul. 2016–30, 2016–52 I.R.B.
876, is supplemented and superseded.
DRAFTING INFORMATION
The author of this revenue ruling is Jason
Eisenberg of the Office of Associate Chief
Counsel (Financial Institutions & Products).
For further information regarding this reve-
nue ruling, contact Jason Eisenberg at (202)
317-7053 (not a toll-free number).
1
For a debt instrument arising out of a sale or exchange that occurs after December 31, 2017, and before April 30, 2018, or for a debt instrument arising out of a sale or exchange that occurs
on or after April 30, 2018, pursuant to a binding written contract entered into before April 30, 2018, a taxpayer, however, may use $5,834,700 as the section 1274A(b) amount to determine
whether the debt instrument is a qualified debt instrument. The methodology used prior to January 1, 2018, was used to compute the inflation-adjusted amount for a qualified debt instrument
in the preceding sentence.
2
For a debt instrument arising out of a sale or exchange that occurs after December 31, 2017, and before April 30, 2018, or for a debt instrument arising out of a sale or exchange that occurs
on or after April 30, 2018, pursuant to a binding written contract entered into before April 30, 2018, a taxpayer, however, may use $4,167,600 as the section 1274A(c)(2)(A) amount to
determine whether the debt instrument is a cash method debt instrument. The methodology used prior to January 1, 2018, was used to compute the inflation-adjusted amount for a cash method
debt instrument in the preceding sentence.
Bulletin No. 2018–18April 30, 2018
519

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.204: Changes in accounting periods
and method of accounting.(Also: Part I, Sections
446, 451; 1.451–1.)
Notice 2018–35
SECTION 1. PURPOSE
This notice provides transitional guid-
ance relating to advance payments under
Rev. Proc. 2004–34, 2004–1 C.B. 991, as
modified and clarified by Rev. Proc.
2011–18, 2011–5 I.R.B. 443, and Rev.
Proc. 2013–29, 2013–33 I.R.B. 141, and
as modified by Rev. Proc. 2011–14,
2011–4 I.R.B. 330. Section 13221 of “An
Act to provide for reconciliation pursuant
to titles II and V of the concurrent reso-
lution on the budget for fiscal year 2018,”
Pub. L. No. 115–97 (December 22, 2017)
(the “Act”) amended § 451 of the Internal
Revenue Code. The amendments included
a new section 451(c), which allows ac-
crual method taxpayers to elect a limited
deferral of the inclusion of income asso-
ciated with certain advance payments. The
rules in new § 451(c) largely track the
approach in Rev. Proc. 2004–34. The De-
partment of the Treasury (Treasury De-
partment) and the Internal Revenue Ser-
vice (the Service) expect to issue future
guidance regarding the treatment of ad-
vance payments to implement this legis-
lative change. Taxpayers, with or without
applicable financial statements, receiving
advance payments may continue to rely
on Rev. Proc. 2004–34 until future guid-
ance is effective.
SECTION 2. BACKGROUND
Section 451(a) provides that the
amount of any item of gross income is
included in gross income for the taxable
year in which received by the taxpayer,
unless, under the method of accounting
used in computing taxable income, the
amount is to be properly accounted for as
of a different period.
Section 1.451–1(a) of the Income Tax
Regulations provides that, under an ac-
crual method of accounting, income is
includible in gross income when all the
events have occurred that fix the right to
receive the income and the amount can be
determined with reasonable accuracy. All
the events that fix the right to receive
income generally occur when: (1) the pay-
ment is earned through performance, (2)
payment is due to the taxpayer, or (3)
payment is received by the taxpayer,
whichever happens earliest.SeeRev. Rul.
2003–10, 2003–1 C.B. 288.
Rev. Proc. 2004–34 provides a full
inclusion method (the Full Inclusion
Method) and a deferral method (the De-
ferral Method) of accounting for the treat-
ment of advance payments for goods, ser-
vices, and other items. Under the Full
Inclusion Method, advance payments are
included in income in the year of receipt.
Under the Deferral Method, an advance
payment is included in gross income for
the taxable year of receipt to the extent
recognized in revenue in a taxpayer’s ap-
plicable financial statement for that tax-
able year or earned (for taxpayers without
an applicable financial statement) in that
taxable year, and the remaining amount of
the advance payment is included in the
next succeeding taxable year after the tax-
able year in which the payment is re-
ceived.
Section 13221 of the Act amends § 451
by redesignating subsections (b) through
(i) as (d) through (k), respectively, and by
inserting new subsections (b) and (c), ef-
fective generally for taxable years begin-
ning after December 31, 2017. Section
451(b)(1)(A)(i) provides that for an ac-
crual method taxpayer, the all events test
for any item of gross income shall not be
treated as met any later than when the
item is taken into account as revenue in an
applicable financial statement of the tax-
payer. Section 451(c)(1)(A) generally pro-
vides that an accrual method taxpayer
shall include an advance payment in gross
income in the taxable year of receipt. Al-
ternatively, under § 451(c)(1)(B), an ac-
crual method taxpayer may elect to defer
the recognition of all or a portion of an
advance payment to the taxable year fol-
lowing the taxable year in which the pay-
ment is received, except any portion of
such advance payment that is required un-
der § 451(b) to be included in gross in-
come in the taxable year in which the
payment is received.
Section 451(c)(4)(A) defines an ad-
vance payment as any payment: (1) the
full inclusion of which in the gross in-
come of the taxpayer for the taxable year
of receipt is a permissible method of ac-
counting, (2) any portion of which is in-
cluded in revenue by the taxpayer in an
applicable financial statement, or such
other financial statement as the Secretary
may specify, for a subsequent taxable
year, and (3) which is for goods, services,
or such other items as may be identified
by the Secretary. Section 451(c) generally
contains rules similar to Rev. Proc. 2004–
34.SeeH.R. Rep. No. 115–466, at 429
(2017) (Conf. Rep.).
SECTION 3. INTERIM GUIDANCE
FOR REV. PROC. 2004 –34
The Treasury Department and the
Service expect to issue guidance for the
treatment of advance payments to im-
plement the changes made to § 451 by
the Act. Until further guidance for the
treatment of advance payments is appli-
cable, taxpayers may continue to rely on
Rev. Proc. 2004–34 for the treatment of
advance payments. During this time, the
Service will not challenge a taxpayer’s
use of Rev. Proc. 2004–34 to satisfy the
requirements of § 451, although the Ser-
vice will continue to verify on examina-
tion that taxpayers are properly applying
Rev. Proc. 2004–34. In addition, the
Service intends to modify section 16.07
of Rev. Proc. 2017–30, 2017–18 I.R.B.
1131, to provide a waiver of the eligi-
bility rule in section 5.01(1)(f) of Rev.
Proc. 2015–13, 2015–5 I.R.B. 419, to
enable taxpayers to make a change to a
method of accounting that is permitted
under Rev. Proc. 2004–34.
SECTION 4. REQUEST FOR
COMMENTS ON ADVANCE
PAYMENTS
The Treasury and Service invite com-
ments containing suggestions for future
guidance under § 451(b) and (c). In par-
ticular, comments are requested concern-
ing the following issues under § 451(c):
(1) whether taxpayers without an applica-
ble financial statement may continue to
use the Deferral Method, as provided in
Rev. Proc. 2004–34; (2) whether clarity is
needed for the definition of an applicable
financial statement under § 451(b)(3); (3)
April 30, 2018Bulletin No. 2018–18
520

whether the definition of applicable finan-
cial statement under § 451(b) and (c)
should be the same as the definition in
section 4.06 of Rev. Proc. 2004–34; (4)
whether other items in addition to those
listed in section 4.01(3) of Rev. Proc.
2004–34 should be included in the defi-
nition of an advance payment; (5) whether
certain payments other than those listed in
section 4.02 of Rev. Proc. 2004–34
should be excluded from the definition of
an advance payment; (6) whether any new
procedural rules for changing a method of
accounting for advance payments would
be appropriate and helpful; and (7) the
extent, if any, to which the Service may
provide procedures expanding the rules of
§ 451(c) to apply to additional taxpayers
and types of income.
WHERE TO SEND COMMENTS
Comments must be submitted by May
14, 2018. Comments, identified by Notice
2018–35, may be sent by one of the fol-
lowing methods:
•By Mail:
Internal Revenue Service
Attn: CC:PA:LPD:PR (Notice 2018–
35)
Room 5203
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044
•By Hand or Courier Delivery: Sub-
missions may be hand-delivered
Monday through Friday between the
hours of 8 a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:PR
(Notice 2018–35)
1111 Constitution Avenue, NW
Washington, DC 20224
•Electronic: Alternatively, persons
may submit comments electronically to
Notice.Comments@irscounsel.treas.gov.
Please include “Notice 2018–35)” in the
subject line of any electronic communi-
cations.
All submissions will be available for
public inspection and copying in room
1621, 1111 Constitution Avenue, NW,
Washington, DC, from 9 a.m. to 4 p.m.
SECTION 5. DRAFTING INFORMA-
TION
The principal author of this notice is
Peter E. Ford of the Office of Associate
Chief Counsel (Income Tax & Account-
ing). For further information regarding
this notice, contact Peter E. Ford, at (202)
317-7011 (not a toll-free number).
Guidance in Connection
with the Repeal of Section
682
Notice 2018–37
SECTION 1. OVERVIEW
This notice announces that the Depart-
ment of the Treasury (Treasury Depart-
ment) and the Internal Revenue Service
(IRS) intend to issue regulations provid-
ing clarification of the application of the
effective date provisions concerning the
repeal of § 682 of the Internal Revenue
Code (Code) enacted on December 22,
2017, by “An Act to provide for reconcil-
iation pursuant to titles II and V of the
concurrent resolution on the budget for
fiscal year 2018,” P.L. 115–97 (Act). This
notice also requests comments on whether
guidance is needed with respect to the
application of §§ 672(e)(1)(A), 674(d),
and 677 of the Code to trusts for the
benefit of a spouse following a divorce or
separation.
SECTION 2. BACKGROUND
Section 71 of the Code as in effect prior
to the Act provides rules regarding the tax
treatment of alimony and separate mainte-
nance payments, with § 71(a) providing that
gross income includes amounts received as
alimony or separate maintenance payments.
Along with certain restrictions, § 71(b)(1)
defines the term “alimony or separate main-
tenance payment” to mean any payment in
cash if such payment is received by (or on
behalf of) a spouse under a divorce or sep-
aration instrument. Section 71(b)(2) defines
the term “divorce or separation instrument”
to mean (A) a decree of divorce or separate
maintenance or a written instrument inci-
dent to such a decree, (B) a written separa-
tion agreement, or (C) a decree (not de-
scribed in former § 71(b)(2)(A)) requiring a
spouse to make payments for the support
and maintenance of the other spouse.
Section 682 of the Code as in effect
prior to the Act provides rules regarding
the tax treatment of the income of certain
trusts payable to a former spouse who was
divorced or legally separated. Section
682(a) provides that there shall be in-
cluded in the gross income of a wife who
is divorced or legally separated under a
decree of divorce or of separate mainte-
nance (or who is separated from her hus-
band under a written separation agree-
ment) the amount of the income of any
trust which such wife is entitled to receive
and which, except for former § 682,
would be includible in the gross income of
her husband, and such amount shall not,
despite any other provision of subtitle A
of the Code, be includible in the gross
income of such husband. Section 682(a),
however, does not apply to any trust in-
come payable under the terms of such
decree or agreement or the trust instru-
ment for the support of the husband’s mi-
nor children.
Section 682(b) provides that, for pur-
poses of computing the taxable income of
the trust and the taxable income of a wife
to whom § 682(a) applies, such wife shall
be considered as the beneficiary specified
in part I of subchapter J of chapter 1 of the
Code.
Section 7701(a)(17) as in effect prior
to the Act provides that, as used in § 682,
if the husband and wife therein referred to
are divorced, wherever appropriate to the
meaning of former § 682, the term “wife”
shall be read “former wife” and the term
“husband” shall be read “former hus-
band;” and, if the payments described in
former § 682 are made by or on behalf of
the wife or former wife to the husband or
former husband instead of vice versa,
wherever appropriate to the meaning of
former § 682, the term “husband” shall be
read “wife” and the term “wife” shall be
read “husband.”
Section 11051(b)(1)(B) and (C) of the
Act prospectively repeal §§ 71 and 682,
and § 11051(b)(4)(A) makes conforming
amendments to § 7701(a)(17). Section
11051(c) of the Act provides that the
amendments made by § 11051 shall apply
to: (1) any divorce or separation instru-
ment (as defined in former § 71(b)(2))
executed after December 31, 2018, and
Bulletin No. 2018–18April 30, 2018
521

(2) any divorce or separation instrument
(as so defined) executed on or before such
date and modified after such date if the
modification expressly provides that the
amendments made by such section apply
to such modification.
SECTION 3. TRUSTS TO WHICH
SECTION 682 CONTINUES TO APPLY
The regulations will provide that § 682,
as in effect prior to December 22, 2017,
will continue to apply with regard to trust
income payable to a former spouse who
was divorced or legally separated under a
divorce or separation instrument (as de-
fined in § 71(b)(2)) executed on or before
December 31, 2018, unless such instru-
ment is modified after that date and the
modification provides that the changes
made by § 11051 of the Act apply to
the modification.
SECTION 4. REQUEST FOR
COMMENTS
Section 672(e)(1)(A) of the Code pro-
vides that the grantor of a trust shall be
treated as holding any power or interest in
such trust held by any individual who was
the spouse of the grantor at the time of the
creation of such power or interest.
Section 674(a) of the Code provides, in
general, that the grantor shall be treated as
the owner of any portion of a trust in
respect of which the beneficial enjoyment
of the corpus or the income therefrom is
subject to a power of disposition, exercis-
able by the grantor or a nonadverse party
(as defined in § 672(b)), or both, without
the approval or consent of any adverse
party (as defined in § 672(a)). However,
§ 674(d) provides that § 674(a) shall not
apply to a power solely exercisable (with-
out the approval or consent of any other
person) by a trustee or trustees, none of
whom is the grantor or spouse living with
the grantor, to distribute, apportion, or
accumulate income to or for a beneficiary
or beneficiaries, or to, for, or within a
class of beneficiaries, whether or not the
conditions of § 674(b)(6) or (7) are satis-
fied, if such power is limited by a reason-
ably definite external standard which is set
forth in the trust instrument.
Section 677(a) of the Code provides
that the grantor of a trust shall be treated
as the owner of any portion of a trust,
whether or not the grantor is treated as
such owner under § 674, whose income
without the approval or consent of any
adverse party is, or, in the discretion of the
grantor or a nonadverse party, or both,
may be distributed to the grantor or the
grantor’s spouse, or held or accumulated
for future distribution to the grantor or the
grantor’s spouse.
The Treasury Department and IRS re-
quest comments on whether guidance is
needed regarding the application of
§§ 672(e)(1)(A), 674(d), and 677 follow-
ing a divorce or separation in light of the
repeal of former § 682.
Written comments may be submitted by
July 11, 2018 to Internal Revenue Service,
CC:PA:LPD:PR (Notice 2018–37), Room
5203, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044, or electronically
to Notice.Comments@irscounsel.treas.gov
(please include “Notice 2018–37” in the
subject line). Alternatively, comments may
be hand delivered between the hours of 8:00
a.m. and 4:00 p.m. Monday to Friday to
CC:PA:LPD:PR (Notice 2018–37), Couri-
er’s Desk, Internal Revenue Service, 1111
Constitution Avenue NW, Washington,
D.C. Comments will be available for public
inspection and copying.
SECTION 5. CONTACT
INFORMATION
The principal author of this notice is Jen-
nifer N. Keeney of the Office of Associate
Chief Counsel (Passthroughs & Special In-
dustries). For further information regarding
this notice contact Jennifer N. Keeney at
(202) 317-6850 (not a toll-free number).
2018 Fiscal-year Blended
Tax Rates for Corporations
Notice 2018–38
PURPOSE
This notice provides guidance on the
changes made by “An Act to provide for
reconciliation pursuant to titles II and V of
the concurrent resolution on the budget
for fiscal year 2018,” P.L. 115–97 (the
Act), to federal income tax rates for cor-
porations under § 11(b) of the Internal
Revenue Code (Code) and to the alterna-
tive minimum tax for corporations under
§ 55 and on the application of § 15 in
determining the federal income tax (in-
cluding the alternative minimum tax) of a
corporation for a taxable year that begins
before January 1, 2018, and ends after
December 31, 2017.
BACKGROUND
Section 11(a) of the Code imposes a
tax on the taxable income of every corpo-
ration (corporate tax). Prior to changes
made by the Act, § 11(b) provided that the
amount of tax imposed was based on a
graduated rate structure starting at 15 per-
cent of the corporation’s taxable income
and increasing to 35 percent of taxable
income. In addition, § 55(a) imposed a tax
(the “alternative minimum tax” or AMT)
equal to the excess, if any, of the tentative
minimum tax (TMT) for the taxable year,
over the corporate tax for the taxable year.
Section 55(b)(1)(B) provided that in the
case of a corporation, the TMT for the
taxable year is 20 percent of so much of
the alternative minimum taxable income
(AMTI) for the taxable year as exceeds
the exemption amount, reduced by the
alternative minimum tax foreign tax credit
for the taxable year.
Section 13001(a) of the Act amended
§ 11(b) of the Code to provide that the
amount of tax imposed by § 11(a) shall be
21 percent of a corporation’s taxable in-
come. Section 13001(c)(1) provides gen-
erally that this change in the tax rate for
corporations is effective for taxable years
beginning after December 31, 2017.
Section 12001(a) of the Act amended
§ 55(a) of the Code by limiting the appli-
cation of the AMT to non-corporate tax-
payers, thereby repealing the AMT for
corporations. Section 12001(c) of the Act
provides that the changes made by
§ 12001 apply to taxable years beginning
after December 31, 2017.
Section 15(a) of the Code provides that
if any rate of tax imposed by chapter 1 of
the Code changes, and if the taxable year
includes the effective date of the change
(unless that date is the first day of the
taxable year), then –
(1) tentative taxes shall be computed
by applying the rate for the period before
the effective date of the change, and the
rate for the period on and after such date,
to the taxable income for the entire tax-
able year; and
April 30, 2018Bulletin No. 2018–18
522

(2) the tax for such taxable year shall
be the sum of that proportion of each
tentative tax which the number of days in
each period bears to the number of days in
the entire taxable year.
Section 15(b) of theCode provides that
for purposes of § 15(a), if a tax is repealed,
the repeal shall be considered a change of
rate, and the rate for the period after the
repeal shall be zero. Section 15(c) provides
in part that for purposes of § 15(a) and (b),
if the rate changes for taxable years “begin-
ning after” or “ending after” a certain date,
the following day shall be considered the
effective date of the change.
APPLICATION
Corporate Tax under § 11
The changes made by § 13001 of the
Act to the federal income tax rates im-
posed on corporations under § 11(b) of the
Code are effective for taxable years be-
ginning after December 31, 2017. Under
§ 15(c), for purposes of § 15(a) and (b),
the effective date of the change made by
§ 13001 of the Act is January 1, 2018. The
computation of tax provided under § 15(a)
applies to a change in any rate of tax
imposed by chapter 1 of the Code if the
taxable year includes the effective date of
the change, unless that date is the first day
of the taxable year. The tax under § 11 is
a tax imposed by chapter 1 of the Code.
Consequently, a corporation with a tax-
able year that includes January 1, 2018,
but does not start on that day, must apply
§ 15(a) todetermine the amount of federal
income tax imposed under § 11 for that
taxable year. Pursuant to § 15(a), a tentative
tax of a corporation for the taxable year that
includes January 1, 2018, shall be computed
by applying the rates of tax imposed under
§ 11(b) prior to the change of the tax rate
under § 13001 of the Act, and a tentative tax
for a corporation shall be computed by ap-
plying the 21 percent rate of tax imposed
under § 11(b) as amended by § 13001 of the
Act. The tax imposed under § 11 for the
taxable year that includes January 1, 2018,
is the sum of that proportion of each tenta-
tive tax which the number of days in each
period bears to the number of days in the
entire taxable year.
Other Applications using § 11(b) Rates
Certain taxpayers, such as life insur-
ance companies and regulated investment
companies, are not subject to the tax im-
posed under § 11(a), but are nonetheless
taxed under other Code provisions that
use the rates of tax set forth in § 11(b).
The application of § 15 will apply in de-
termining the chapter 1 tax for these tax-
payers in the same manner as described
above for corporations subject to the tax
imposed by § 11(a).
Alternative Minimum Tax under § 55
Section 12001 of the Act repealed the
application of the AMT imposed under
§ 55 to corporations effective for taxable
years beginning after December 31, 2017.
Under § 15(b), the repeal of a tax shall be
considered a change of tax rate, and the
rate for the period after the repeal is zero
for purposes of § 15(a). As a result, the
repeal of the AMT for corporations is a
change in the TMT rate from 20 percent to
zero. Further, under § 15(c), the effective
date of this change of rate is January 1,
2018. The computation of tax provided
under § 15(a) applies to a change in any
rate of tax imposed by chapter 1 of the
Code if the taxable year includes the ef-
fective date of the change, unless that date
is the first day of the taxable year. The tax
under § 55 is a tax imposed by chapter 1
of the Code. Consequently, a corporation
with a taxable year that includes January
1, 2018, but does not start on that day,
must apply § 15(a) to determine the
amount of its TMT for that taxable year.
Pursuant to § 15(a), a tentative TMT for
the corporation shall be computed by ap-
plying the 20 percent TMT rate provided
under § 55(b)(1)(B) prior to the change
under § 12001 of the Act, and a tentative
TMT shall be computed by applying
the zero percent TMT rate resulting from
the repeal under § 12001 of the Act of the
AMT for corporations. The corporation’s
TMT for the taxable year that includes
January 1, 2018, is the sum of that pro-
portion of each tentative TMT which the
number of days in each period bears to the
number of days in the entire taxable year.
EXAMPLE
The following example illustrates the
application of § 15(a) of the Code in de-
termining the tax under §§ 11 and 55 of a
corporation using a fiscal year as its tax-
able year for the taxable year that includes
January 1, 2018.
Example. Corporation X, a subchapter C corpo-
ration, uses a June 30 taxable year. For its taxable
year beginning July 1, 2017, and ending June 30,
2018, X’s taxable income is $1,000,000, and its
AMTI in excess of its AMT exemption amount is
$2,000,000.
Computation under § 11
Corporation X’s corporate tax under § 11
of the Code is computed by applying
§ 15(a) as follows:
1) Taxable income (Line 30, Form 1120)$1,000,000
2) Tax on Line 1 amount using § 11(b) rates before the Act340,000
3) Number of days in Corporation X’s taxable year before January, 1, 2018184
4) Multiply Line 2 by Line 362,560,000
5) Tax on Line 1 amount using § 11(b) rate after the Act210,000
6) Number of days in the taxable year after December 31, 2017181
7) Multiply Line 5 by Line 638,010,000
8) Divide Line 4 by total number of days in the taxable year171,397
9) Divide Line 7 by total number of days in the taxable year104,137
10) Sum of Line 8 and Line 9$275,534
Bulletin No. 2018–18April 30, 2018
523

Under § 15(a), Corporation X’s corpo-
rate tax for its taxable year ending June
30, 2018 is $275,534.
Computation under § 55
Corporation X’s TMT and resulting
AMT under § 55 of the Code is computed
by applying § 15(a) as follows:
1) AMTI in excess of AMT exemption amount (Line 9, Form 4626)$ 2,000,000
2) TMT on Line 1 amount using § 55(b)(1)(B) rate before the Act400,000
3) Number of days in Corporation X’s taxable year before January, 1, 2018184
4) Multiply Line 2 by Line 373,600,000
5) Divide Line 4 by total number of days in the taxable year$201,644
It is unnecessary to compute a TMT for
the portion of the taxable year beginning
on and after the effective date of § 12001
of the Act because the TMT is repealed as
of the effective date for purposes of ap-
plying § 15(a). Corporation X’s TMT for
its taxable year ending June 30, 2018 is
$201,644. Because this TMT amount for
the taxable year does not exceed Corpo-
ration X’s corporate tax amount of
$275,534, Corporation X does not have an
AMT liability for its taxable year ending
June 30, 2018.
APPLICABILITY DATE
This notice applies to taxable years of
corporations that begin before January 1,
2018, and end after December 31, 2017.
CONTACT INFORMATION
For further information regarding this
notice, contact Bill Jackson at (202) 317-
4731 or Forest Boone at (202) 317-4904
(not a toll-free number).
26 CFR 601.602: Tax forms and instructions. (Also
Part I, §§ 42, 55.)
Rev. Proc. 2018–22
SECTION 1. PURPOSE
This revenue procedure modifies and
supersedes section 3.08 of Rev. Proc.
2018–18, 2018–10 I.R.B. 392, to reflect
the statutory amendment by section 102,
of Division T, of the Consolidated Appro-
priations Act, 2018, P.L. 115–141 (H.R.
1625) to increase the state housing credit
ceiling. This revenue procedure also mod-
ifies and supersedes section 3.10 of Rev.
Proc. 2018–18 to correct the alternative
minimum tax phaseout threshold amount
for estates and trusts.
SECTION 2. MODIFICATION OF
SECTION 3.08 and SECTION 3.10
OF REV. PROC. 2018 –18
Section 3.08 of Rev. Proc. 2018–18 is
modified and superseded to read as fol-
lows:
.08Low-Income Housing Credit. For
calendar year 2018, the amount used un-
der § 42(h)(3)(C)(ii) to calculate the State
housing credit ceiling for the low-income
housing credit is the greater of (1) $2.70
multiplied by the State population, or (2)
$3,105,000.
Section 3.10 of Rev. Proc. 2018–18 is
modified and superseded to read as fol-
lows:
.10Exemption Amounts for Alternative
Minimum Tax. For taxable years begin-
ning in 2018, the exemption amounts un-
der § 55(d)(1) are:
Joint Returns or Surviving Spouses$109,400
Unmarried Individuals (other than Surviving Spouses)$70,300
Married Individuals Filing Separate Returns$54,700
Estates and Trusts$24,600
For taxable years beginning in 2018,
under § 55(b)(1), the excess taxable in-
come above which the 28 percent tax rate
applies is:
Married Individuals Filing Separate Returns$95,550
Joint Returns, Unmarried Individuals (other than surviving spouses), and Estates and Trusts$191,100
April 30, 2018Bulletin No. 2018–18
524

For taxable years beginning in 2018,
the amounts used under § 55(d)(3) to de-
termine the phaseout of the exemption
amounts are:
Joint Returns or Surviving Spouses$1,000,000
Unmarried Individuals (other than Surviving Spouses)$500,000
Married Individuals Filing Separate Returns$500,000
Estates and Trusts$81,900
SECTION 3. EFFECT ON OTHER
DOCUMENTS
This revenue procedure modifies and
supersedes sections 3.08 and 3.10 of
Rev. Proc. 2018–18, which modified
and superseded certain sections of Rev.
Proc. 2017–58, 2017–45 I.R.B. 489.
SECTION 4. EFFECTIVE DATE
Sections 3.08 and 3.10 of Rev. Proc.
2018–18 are modified and superseded for
taxable years beginning in 2018.
SECTION 5. DRAFTING
INFORMATION
The principal author of this revenue
procedure is William Ruane of the Office
of Associate Chief Counsel (Income Tax
& Accounting). For further information
regarding this revenue procedure, contact
Mr. Ruane at (202) 317-4718 (not a toll-
free number).
NOTE.This revenue procedure will be reproduced as the next revision of IRS Publication 4436, General Rules and Specifications
for Substitute Form 941, Schedule B (Form 941), Schedule D (Form 941), Schedule R (Form 941), and Form 8974.
Rev. Proc. 2018–24
TABLE OF CONTENTS
Part 1 –
Section 1.1 – Purpose....................................................................................................................................................................525
Section 1.2 – Reminders................................................................................................................................................................527
Section 1.3 – General Requirements for Reproducing IRS Official Form 941, Schedule B,
Schedule D, Schedule R, and Form 8974..............................................................................................................527
Section 1.4 – Reproducing Form 941, Schedule B, Schedule D, Schedule R, and Form 8974
for Software-Generated Paper Forms.....................................................................................................................529
Section 1.5 – Specific Instructions for Schedule D......................................................................................................................530
Section 1.6 – Specific Instructions for Schedule R......................................................................................................................531
Section 1.7 – Specific Instructions for Form 8974 ......................................................................................................................531
Section 1.8 – OMB Requirements for Substitute Forms .............................................................................................................532
Section 1.9 – Order Forms and Instructions.................................................................................................................................532
Section 1.10 – Effect on Other Documents..................................................................................................................................532
Section 1.11 – Helpful Information ..............................................................................................................................................533
Section 1.12 – Exhibits..................................................................................................................................................................534
Part 1
Section 1.1 – Purpose
0.1The purpose of this revenue procedure is to provide general rules and specifications from the
IRS for paper and computer-generated substitutes for Form 941, Employer’s QUARTERLY
Federal Tax Return; Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule
Depositors (referred to in this revenue procedure as “Schedule B”); Schedule D (Form 941),
Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or Consolidations (referred
to in this revenue procedure as “Schedule D”); Schedule R (Form 941), Allocation Schedule for
Bulletin No. 2018–18April 30, 2018
525

Aggregate Form 941 Filers (referred to in this revenue procedure as “Schedule R”); and Form
8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.
Before creating a substitute Form 941, see Pub. 1167, General Rules and Specifi-
cations for Substitute Forms and Schedules, for additional rules and specifications
for payment vouchers (Vouchers), printing in margins (Marginal Printing), and
additional instructions (Additional Instructions for All Forms).
Note.Substitute territorial forms (941–PR, Planilla para la Declaración Federal TRIMESTRAL
del Patrono; 941–SS, Employer’s QUARTERLY Federal Tax Return (American Samoa, Guam,
the Commonwealth of the Northern Mariana Islands, and the U.S. Virgin Islands); and Anexo B
(Formulario 941–PR), Registro de la Obligación Contributiva para los Despositantes de Itinerario
Bisemanal) should also conform to the specifications outlined in this revenue procedure.
0.2This revenue procedure provides information for substitute Form 941, Schedule B, Schedule
D, Schedule R, and Form 8974. If you need more in-depth information on who must complete
these forms and how to complete them, see the Instructions for Form 941, Instructions for
Schedule B, Instructions for Schedule D, instructions included with Schedule R, Instructions for
Form 8974, and Pub. 15, Employer’s Tax Guide, or visit IRS.gov.
Note.Failure to produce acceptable substitutes of the forms and schedules listed in this revenue
procedure may result in delays in processing and penalties.
0.3Forms that completely follow the guidelines in this revenue procedure and are exact replicas
of the official IRS forms do not need to be submitted to the IRS for specific approval. Substitute
forms and schedules need to be scanned using IRS scanning equipment.
If you are uncertain of any specification and want clarification, do the following.
1. Submit a letter citing the specification.
2. State your understanding of the specification.
3. Enclose an example (if appropriate) of how the form would appear if produced using your
understanding.
4. Be sure to include your name, complete address, phone number, and, if applicable, your
email address with your correspondence. Send your request toSCRIPS@IRS.govor
SubstituteForms@IRS.gov, or use the following address.
Internal Revenue Service
Attn: Substitute Forms Program SE:W:CAR:MP:P:TP
5000 Ellin Road, C6–440 Lanham, MD 20706
Note.Allow at least 30 days for the IRS to respond.
0.4However, software developers and form producers should send a blank copy of their substitute
Form 941 and Schedule B in Portable Document Format (PDF) toSCRIPS@IRS.gov. The purpose
is not specifically for approval but to assist the IRS in preparing to scan these forms. Submitters
will only receive comments if a significant problem is discovered through this process. Submitters
are not expected to delay marketing their forms in order to receive feedback. Submitters must not
include any “live” taxpayer data on any substitute form submitted for review.
0.5The following six-digit form ID codes are used on Form 941, the schedules for Form 941, and
Form 8974.
•Official paper forms:950117 (Form 941, page 1); 950217 (Form 941, page 2); 960311 (Schedule
B); 950417 (Schedule R, page 1); 950517 (Schedule R, page 2); 950613 (Schedule R, page 3); and
950817 (Form 8974).
April 30, 2018Bulletin No. 2018–18
526

•Substitute 6x10 grids:970117 (Form 941, page 1); 970217 (Form 941, page 2); 970311
(Schedule B); 970417 (Schedule R, page 1); 970517 (Schedule R, page 2); 970617 (Schedule R,
page 3); and 970817 (Form 8974).
Generally, the last two digits of the form ID code represent the last year in which the IRS made
major formatting changes to the layout of the form.
Note.Page 3 of Schedule R is not required to be filed with the IRS as part of a substitute Schedule
R. However, if page 3 of the substitute Schedule R is filed, it must include the form ID code.
0.6This revenue procedure will be updated only if there are major formatting changes to the
layout of the forms or there are other changes that impact the processing of substitute forms.
Section 1.2 – Reminders
0.1 Qualified small business payroll tax credit for increasing research activities.For tax years
beginning after December 31, 2015, a qualified small business may elect to claim up to $250,000
of its credit for increasing research activities as a payroll tax credit against the employer’s share
of social security tax. The portion of the credit used against the employer’s share of social security
tax is allowed in the first calendar quarter beginning after the date that the qualified small business
filed its income tax return. The election and determination of the credit amount that will be used
against the employer’s share of social security tax is made on Form 6765, Credit for Increasing
Research Activities. The amount from Form 6765, line 44, must then be reported on Form 8974,
Qualified Small Business Payroll Tax Credit for Increasing Research Activities. Form 8974 is
used to determine the amount of the credit that can be used in the current quarter. The amount
from Form 8974, line 12, is reported on Form 941, line 11. If you are claiming the research payroll
tax credit on your Form 941, you must attach Form 8974 to that Form 941.
0.2 New certification program for professional employer organizations.The Tax Increase
Prevention Act of 2014 required the IRS to establish a voluntary certification program for
professional employer organizations (PEOs). PEOs handle various payroll administration and tax
reporting responsibilities for their business clients and are typically paid a fee based on payroll
costs. To become and remain certified under the certification program, certified professional
employer organizations (CPEOs) must meet tax status, background, experience, business loca-
tion, financial reporting, bonding and other requirements described in sections 3511 and 7705 and
related published guidance. The IRS began accepting applications for PEO certification in July
2016. Certification as a CPEO affects the employment tax liabilities of both the CPEO and its
customers. A CPEO is generally treated as the employer of any individual performing services for
a customer of the CPEO and covered by a contract described in section 7705(e)(2) between the
CPEO and the customer (CPEO contract), but only for wages and other compensation paid to the
individual by the CPEO. For more information, visit the IRS website atIRS.gov/CPEO.
CPEOs generally must file Form 941 and Schedule R electronically. For more information about
a CPEO’s requirement to file electronically, see Rev. Proc. 2017–14, 2017–3 I.R.B. 426, available
atIRS.gov/irb/2017-03_IRB/ar14.html.
Section 1.3 – General Requirements for Reproducing IRS Official Form 941, Schedule B, Schedule D, Schedule R, and
Form 8974
0.1Submit substitute Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 to the IRS
for specifications review. Substitute Form 941, Schedule B, Schedule D, Schedule R, and Form
8974 thatcompletely conformto the specifications contained in this revenue procedure do not
require prior approval from the IRS, but should be submitted toSCRIPS@IRS.govto ensure that
they conform to IRS format and scanning specifications.
Bulletin No. 2018–18April 30, 2018
527

0.2Print the form on standard 8.5 inches wide by 11-inch paper.
0.3Use white paper that meets generally accepted weight, color, and quality standards (minimum
20 lb. white bond paper).
Note.Reclaimed fiber in any percentage is permitted provided that the requirements of this
standard are met.
0.4The IRS prefers printing Form 941 on both sides of a single sheet of paper, but it is acceptable
to print on one side of each of two separate sheets of paper.
0.5Make the substitute paper form as identical to the official form as possible.
0.6Print the substitute form using nonreflective black (not blue or other-colored) ink. Printing in
an ink color other than black may reduce readability in the scanning process. This may result in
figures being too faint to be recognizable.
0.7Use typefaces that are substantially identical in size and shape to the official form and use
rules and shading (if used) that are substantially identical to those on the official form. Use font
size as large as possible within the fields.
0.8In the same location as shown on the official IRS forms, print the six-digit form ID code (if
one exists on the official form) on each form using nonreflective black, carbon-based, 12-point.
The use of non-OCR-A font may reduce readability for scanning. Use the official form to develop
your substitute form.
Note.Maintain as much white space as possible around the form ID code. Do not allow character
strings to print adjacent to the code.
The year digits represent the last year in which the IRS made major formatting changes to the
layout of the form. Therefore, the last two digits may not be the same as the current tax year. For
tax year 2018 and until this revenue procedure is superseded, print “950117” on Form 941, page
1; “950217” on Form 941, page 2; “960311” on Schedule B; “950417” on Schedule R, page 1;
“950517” on Schedule R, page 2; “950617” on Schedule R, page 3; and “950817” on Form 8974.
SeeSection 1.4for information on form ID codes for software-generated forms.
Note.Page 3 of Schedule R is not required to be filed with the IRS as part of a substitute Schedule
R. However, if page 3 of the substitute Schedule R is filed, it must include the form ID code.
0.9Print the OMB number in the same location as on the official form. Be sure to include the
OMB number on Form 941, Schedule B, Schedule D, Schedule R, and Form 8974.
.10Print all entry boxes and checkboxes exactly as shown(location and size)on the official
forms.
Note.Instead of a four-sided checkbox for the entry, just the bottom line of the box can be used
as long as the location and size remain the same.
.11Print “For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment
Voucher.” at the bottom of page 1 of Form 941.
.12Print “For Paperwork Reduction Act Notice, see separate instructions.” at the bottom of
Schedule B and Schedule D.
.13Print “For Paperwork Reduction Act Notice, see the instructions.” at the bottom of Schedule
R.
.14Print “Paperwork Reduction Act Notice, see the separate instructions.” at the bottom of Form
8974.
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.15 Do notprint the form catalog number (“Cat. No.”) at the bottom of the forms or instructions.
Instead, print your IRS-issued three letter substitute form source code in place of the catalog
number on the left at the bottom of page 1 of Form 941, Schedule B, Schedule D, Schedule R,
and Form 8974.
Note.You can obtain a three-letter substitute form source code by requesting it by email at
SubstituteForms@IRS.gov. Please enter “Substitute Forms” on the subject line.
.16 Do notprint the Government Printing Office (GPO) symbol at the bottom of the forms or
instructions.
Section 1.4 – Reproducing Form 941, Schedule B, Schedule D, Schedule R, and Form 8974 for Software-Generated Paper
Forms
0.1You may use the PDF files to develop the layout for your forms. Draft forms found at
IRS.gov/DraftFormscan be used to develop interim formats until the forms are finalized. When
forms become finalized, they are posted and can be found atIRS.gov/Forms. You may use 6x10
grid formats to develop software versions of Form 941, Schedule B, Schedule D, Schedule R, and
Form 8974. Please follow the specifications exactly to develop the fields.
0.2If you are developing software using the 6x10 grid, you may make the following modifica-
tions.
•“970117” for Form 941, page 1; “970217” for Form 941, page 2; “970311” for Schedule B;
“970417” for Schedule R, page 1; “970517” for Schedule R, page 2; “970617” for Schedule R,
page 3; and “970817” for Form 8974, as the form ID codes.
Note.Maintain as much white space as possible around the form ID code. Do not allow
character strings to print adjacent to the code.
•Place all 6x10 grid boxes and entry spaces in the same field locations as indicated on the official
forms.
•Use single lines for “Employer Identification Number (EIN)” and other entry areas in the entity
section of Form 941, page 1; Schedule B; Schedule R, pages 1 and 2; and Form 8974.
•Reverse type is not needed as shown on the official form.
•Do notpre-print decimal points in the data boxes. However, where the amounts are required, the
amounts should be printed with decimal points and place holders for cents.
•Delete the pre-printed formatting in any “date” boxes.
•Use a single box for “Personal Identification Number (PIN)” on Form 941.
•You may delete all shading when using the 6x10 grid format.
0.3If producing both the form and the data or the form only, print your three-letter source code
at the bottom of Form 941, page 1; Schedule B; Schedule D; Schedule R, page 1; or Form 8974.
SeeSection 1.3.15.
0.4If producing only the data on the form, print your four-digit software industry vendor code on
Form 941. The four-digit vendor code preceded by four zeros and a slash (0000/9876) must be
pre-printed. If you have a valid vendor code issued to you through the National Association of
Computerized Tax Processors (NACTP), you should use that code. If you do not have a valid
vendor code, contact the NATCP via email atpresident@natcp.orgfor information on these
codes.
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0.5Print “For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment
Voucher.” at the bottom of Form 941, page 1.
0.6Print “For Paperwork Reduction Act Notice, see separate instructions.” at the bottom of
Schedule B and Schedule D.
0.7Print “For Paperwork Reduction Act Notice, see the instructions.” at the bottom of Schedule
R, page 1.
0.8Print “For Paperwork Reduction Act Notice, see the separate instructions.” at the bottom of
Form 8974.
0.9Be sure to print the OMB number in the same location as on the official forms on substitute
Form 941, Schedule B, Schedule D, Schedule R, and Form 8974.
.10 Do notprint the form catalog number (“Cat. No.”) at the bottom of the forms or instructions.
.11 Do notprint the Government Printing Office (GPO) symbol at the bottom of the forms or
instructions.
.12To ensure accurate scanning and processing, enter data on Form 941, Schedule B, Schedule
D, Schedule R, and Form 8974 as follows.
•Display/print the name and EIN on all pages and attachments in the proper associated fields.
•Use 12-point (minimum 10-point) Courier font (where possible). Omit dollar signs, but use
commas when showing amounts.
•Except for Form 941, lines 1 and 2, leave blank any data field with a value of zero.
•Enter negative amounts with a minus sign. For example, report “–10.59” instead of “(10.59).”
Note.The IRS prefers that you use a minus sign for negative amounts instead of parentheses
or some other means. However, if your software only allows for parentheses in reporting
negative amounts, you may use them.
Section 1.5 – Specific Instructions for Schedule D
0.1To properly file and to reduce delays and contact from the IRS, Schedule D must be produced
as close as possible to the official form.
0.2Use Schedule D to explain why you have certain discrepancies. See the Instructions for
Schedule D for more information. In many cases, the information on Schedule D helps the IRS
resolve discrepancies without contacting you.
0.3If a substitute Schedule D is not submitted in similar format to the official IRS schedule, the
substitutes may be returned, you may be contacted by the IRS, delays in processing may occur,
and you may be subject to penalties.
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Section 1.6 – Specific Instructions for Schedule R
0.1To properly file and to reduce delays and contact from the IRS, Schedule R and Continuation
Sheets for Schedule R must be produced as close as possible to the official form.
Note. Do notpresent the information in spreadsheet or similar format. We may not be able to
properly process nonconforming documents with an excessive number of entries. Complete as
many Continuation Sheets for Schedule R (Schedule R, page 2) as necessary. If Continuation
Sheets are not used or they vary in form from the official form, processing may be delayed and
you may be subject to penalties.
0.2Use Schedule R to allocate the aggregate information reported on Form 941 to each client. If
you have more than 10 clients, complete as many Continuation Sheets for Schedule R as
necessary. Attach Schedule R, including any Continuation Sheets, to your aggregate Form 941
and file it with your return. Enter your business information carefully.
Make sure all information exactly matches the information shown on the aggregate Form 941.
Compare the total of each column on Schedule R, line 14 (including your information on line 13),
to the amounts reported on the aggregate Form 941. For each column total of Schedule R, the
relevant line from Form 941 is noted in the column heading. If the totals on Schedule R, line 14,
do not match the totals on Form 941, there is an error that must be corrected before submitting
Form 941 and Schedule R.
0.3 Do:
•Develop and submit only conforming Schedules R.
•Follow the format and fields exactly as on the official Schedule R.
•Maintain the same number of entry lines on the substitute Schedule R as on the official form.
0.4 Do not:
•Add or delete entry lines.
•Submit spreadsheets, database printouts, or similar formatted documents instead of using the
Schedule R format to report data.
•Reduce or expand font size to add or delete extra data or lines.
0.5If substitute Schedules R and Continuation Sheets for Schedule R are not submitted in similar
format to the official schedule, the substitutes may be returned, you may be contacted by the IRS,
delays in processing may occur, and you may be subject to penalties.
Section 1.7 – Specific Instructions for Form 8974
0.1To properly file and to reduce delays and contact from the IRS, Form 8974 must be produced
as close as possible to the official form.
0.2Use Form 8974 only if you are claiming the qualified small business payroll tax credit for
increasing research activities.
Bulletin No. 2018–18April 30, 2018
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0.3If a substitute Form 8974 is not submitted in similar format to the official IRS form, the
substitutes may be returned, you may be contacted by the IRS, delays in processing may occur,
and you may be subject to penalties.
Section 1.8 – OMB Requirements for Substitute Forms
0.1The Paperwork Reduction Act (the Act) of 1995 (Public Law 104–13) requires the following.
•The Office of Management and Budget (OMB) approves all IRS tax forms that are subject to the
Act.
•Each IRS form contains the OMB approval number, if assigned. The official OMB numbers may
be found on the official IRS-printed forms. Each IRS form (or its instructions) states:
1. Why the IRS needs the information,
2. How it will be used, and
3. Whether or not the information is required to be furnished to the IRS.
0.2This information must be provided to any users of official or substitute IRS forms or
instructions.
0.3The OMB requirements for substitute IRS forms are the following.
•Any substitute form or substitute statement to a recipient must show the OMB number as it
appears on the official form.
•For Form 941, Schedule B, Schedule D, Schedule R, and Form 8974, the OMB number
(1545-0029) must appear exactly as shown on the official form.
•For Form 941, Schedule B, Schedule D, Schedule R, and Form 8974, the OMB number must use
one of the following formats.
1. OMB No. 1545–0029 (preferred).
2. OMB # 1545–0029 (acceptable).
0.4If no instructions are provided to users of your forms, you must furnish to them the exact text
of the Privacy Act and Paperwork Reduction Act Notice.
Section 1.9 – Order Forms and Instructions
.01You can order forms and instructions atIRS.gov/orderforms.
Section 1.10 – Effect on Other Documents
.01Revenue Procedure 2017–32, 2017–17 I.R.B. 1109, dated April 24, 2017, is superseded.
April 30, 2018Bulletin No. 2018–18
532

Section 1.11 – Helpful Information
0.1Please follow the specifications and guidelines to produce substitute Form 941, Schedule B,
Schedule D, Schedule R, and Form 8974.
0.2These forms are subject to review and possible changes as required. Therefore, employers are
cautioned against overstocking supplies of privately printed substitutes.
0.3Here is a review of references that were listed throughout this document.
•Form 941, Employer’s QUARTERLY Federal Tax Return. Schedule B (Form 941), Report of Tax
Liability for Semiweekly Schedule Depositors (referred to in this revenue procedure as “Schedule
B”).
•Schedule D (Form 941), Report of Discrepancies Caused by Acquisitions, Statutory Mergers, or
Consolidations (referred to in this revenue procedure as “Schedule D”).
•Schedule R (Form 941), Allocation Schedule for Aggregate Form 941 Filers (referred to in this
revenue procedure as “Schedule R”).
•Form 8974, Qualified Small Business Payroll Tax Credit for Increasing Research Activities.
•Substitute territorial forms (941–PR, 941–SS, and Anexo B (Formulario 941–PR)).
•Instructions for Form 941.
•Instructions for Schedule B (Form 941). Instructions for Form 8974.
•Pub. 15, Employer’s Tax Guide.
•SCRIPS@IRS.govfor submissions.
•SubstituteForms@IRS.govfor questions.
•For questions:
Internal Revenue Service
Attn: Substitute Forms Program
SE:W:CAR:MP:P:TP
5000 Ellin Road, C6–440
Lanham, MD 20706
•IRS.gov/DraftFormsfor draft forms.
•IRS.gov/Formsfor final forms.
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Section 1.12 – Exhibits
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26 CFR 601.105: Examination of returns and claims
for refund, credit, or abatement; determination of cor-
rect tax liability. (Also Part I, §§ 280F; 1.280F–7.)
Rev. Proc. 2018–25
SECTION 1. PURPOSE
This revenue procedure provides: (1)
tables of limitations on depreciation de-
ductions for owners of passenger automo-
biles first placed in service by the taxpayer
during calendar year 2018; and (2) a table
of amounts that must be included in in-
come by lessees of passenger automobiles
first leased by the taxpayer during calen-
dar year 2018. For purposes of this reve-
nue procedure, the term “passenger auto-
mobiles” includes trucks and vans.
SECTION 2. BACKGROUND
.01 For owners of passenger automobiles,
§ 280F(a), as modified by § 13202(a)(1) of
“An Act to provide for reconciliation pursuant
to titles II and V of the concurrent resolution
on the budget for fiscal year 2018”, Pub. L.
No. 115–97 (Dec. 22, 2017) (the “Act”), im-
poses dollar limitations on the depreciation
deduction for the year the taxpayer places
the passenger automobile in service and for
each succeeding year. The dollar limitation
amounts in this revenue procedure reflect
the new limits provided in § 13202(a)(1) of
the Act and are applicable to passenger au-
tomobiles placed in service during calendar
year 2018.
.02 Section 13201 of the Act amended
§ 168(k) to extend and modify the addi-
tional first year depreciation deduction for
qualified property acquired and placed in
service after September 27, 2017, and be-
fore January 1, 2027. Section 168(k)(1)
provides that, in the case of qualified
property, the depreciation deduction al-
lowed under § 167(a) for the taxable year
in which the property is placed in service
includes an allowance equal to the appli-
cable percentage of the property’s ad-
justed basis (hereinafter, referred to as
Ҥ 168(k) additional first year deprecia-
tion deduction”). Pursuant to § 168(k)(6)
(A), the applicable percentage is 100 per-
cent for qualified property acquired and
placed in service after September 27,
2017, and placed in service before January
1, 2023, and is phased down 20 percent
each year for property placed in service
through December 31, 2026. However, if
a taxpayer elects to apply § 168(k)(10) in
the case of qualified property placed in
service by the taxpayer during the first
taxable year ending after September 27,
2017, the depreciation deduction allowed
under § 167(a) for the taxable year in-
cludes an allowance equal to 50 percent of
the property’s adjusted basis. Pursuant to
§ 168(k)(8)(B)(i), the applicable percent-
age is 40 percent for qualified property
acquired before September 28, 2017, and
placed in service in 2018. For qualified
property acquired and placed in service
after September 27, 2017, § 168(k)(2)(F)
(i) increases the first year depreciation
allowed under § 280F(a)(1)(A)(i) by
$8,000. For qualified property acquired by
the taxpayer before September 28, 2017,
and placed in service by the taxpayer dur-
ing 2018, § 168(k)(2)(F)(iii) increases the
first year depreciation allowed under
§ 280F(a)(1)(A)(i) by $6,400.
.03 Tables 1 through 3 of this revenue
procedure provide depreciation limita-
tions for passenger automobiles placed in
service during calendar year 2018. Table 1
provides depreciation limitations for pas-
senger automobiles acquired by the tax-
payer before September 28, 2017, and
placed in service by the taxpayer during
calendar year 2018, for which the § 168(k)
additional first year depreciation deduc-
tion applies. Table 2 provides depreciation
limitations for passenger automobiles ac-
quired by the taxpayer after September 27,
2017, and placed in service by the tax-
payer during calendar year 2018, for
which the § 168(k) additional first year
depreciation deduction applies. Table 3
provides depreciation limitations for pas-
senger automobiles placed in service dur-
ing calendar year 2018 for which no
§ 168(k) additional first year depreciation
deduction applies. The § 168(k) additional
first year depreciation deduction does not
apply for 2018 if the taxpayer: (1) did not
use the passenger automobile during 2018
more than 50 percent for business pur-
poses; (2) elected out of the § 168(k)
additional first year depreciation deduc-
tion pursuant to § 168(k)(7) for the class
of property that includes passenger auto-
mobiles; or (3) acquired the passenger au-
tomobile used and the acquisition of such
property did not meet the acquisition re-
quirements in § 168(k)(2)(E)(ii).
.04 Section 280F(c)(2) requires a re-
duction to the amount of deduction al-
lowed to the lessee of a leased passenger
automobile. Pursuant to § 280F(c)(3), the
reduction must be substantially equivalent
to the limitations on the depreciation de-
ductions imposed on owners of passenger
automobiles. Under § 1.280F–7(a) of the
Income Tax Regulations, this reduction
requires a lessee to include in gross in-
come an amount determined by applying a
formula to the amount obtained from a
table. Table 4 applies to lessees of passen-
ger automobiles. This table shows income
inclusion amounts for a range of fair mar-
ket values for each taxable year after the
passenger automobile is first leased.
SECTION 3. SCOPE
.01 The limitations on depreciation de-
ductions in section 4.01(2) of this revenue
procedure apply to passenger automo-
biles, other than leased passenger automo-
biles, that are placed in service by the
taxpayer in calendar year 2018, and con-
tinue to apply for each taxable year that
the passenger automobile remains in ser-
vice.
.02 The table in section 4.02 of this
revenue procedure applies to leased pas-
senger automobiles for which the lease
term begins during calendar year 2018.
Lessees of these passenger automobiles
must use these tables to determine the
inclusion amount for each taxable year
during which the passenger automobile is
leased. See Rev. Proc. 2013–21, 2013–12
I.R.B. 660, for passenger automobiles first
leased during calendar year 2013; Rev.
Proc. 2014–21, 2014–11 I.R.B. 641, as
amplified and modified by section 4.03 of
Rev. Proc. 2015–19, 2015–8 I.R.B. 656,
for passenger automobiles first leased dur-
ing calendar year 2014; Rev. Proc. 2015–
19, as amplified and modified by section
4.03 of Rev. Proc. 2016–23, 2016–16
I.R.B. 581, for passenger automobiles first
Bulletin No. 2018–18April 30, 2018
543

leased during calendar year 2015, Rev.
Proc. 2016–23 for passenger automobiles
first leased during calendar year 2016, and
Rev. Proc. 2017–29, 2017–14 I.R.B.
1065, for passenger automobiles first
leased during calendar year 2017.
SECTION 4. APPLICATION
.01Limitations on Depreciation
Deductions for Certain Automobiles.
(1)Amount of the inflation adjustment.
Section 280F(a), as amended by § 13202(a)(1)
of the Act, provides the limitation on depreci-
ation for passenger automobilesplaced in ser-
vice during calendar year 2018. Accord-
ingly, no adjustment for inflation applies to
calendar year 2018.See§ 280F(d)(7)(A), as
amended by § 13202(a)(2)(B) of the Act.
(2)Amount of the limitation. Tables 1
through 3 contain the dollar amount of the
depreciation limitation for each taxable
year for passenger automobiles a taxpayer
places in service during calendar year
2018. Use Table 1 for a passenger auto-
mobile to which the § 168(k) additional
first year depreciation deduction applies
that is acquired before September 28,
2017, and placed in service during calen-
dar year 2018; Table 2 for a passenger
automobile to which the § 168(k) addi-
tional first year depreciation deduction ap-
plies that is acquired after September 27,
2017, and placed in service during calen-
dar year 2018; and Table 3 for a passenger
automobile for which no § 168(k) addi-
tional first year depreciation deduction ap-
plies.
REV. PROC. 2018–25 TABLE 1
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES
ACQUIRED BEFORE SEPTEMBER 28, 2017, AND PLACED IN SERVICE DURING
CALENDAR YEAR 2018 FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR
DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year$ 16,400
2nd Tax Year$ 16,000
3rd Tax Year$ 9,600
Each Succeeding Year$ 5,760
REV. PROC. 2018–25 TABLE 2
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES ACQUIRED AFTER
SEPTEMBER 27, 2017, AND PLACED IN SERVICE DURING CALENDAR YEAR 2018,
FOR WHICH THE § 168(k) ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year$ 18,000
2nd Tax Year$ 16,000
3rd Tax Year$ 9,600
Each Succeeding Year$ 5,760
REV. PROC. 2018–25 TABLE 3
DEPRECIATION LIMITATIONS FOR PASSENGER AUTOMOBILES
PLACED IN SERVICE DURING CALENDAR YEAR 2018 FOR WHICH NO § 168(k)
ADDITIONAL FIRST YEAR DEPRECIATION DEDUCTION APPLIES
Tax YearAmount
1st Tax Year$ 10,000
2nd Tax Year$ 16,000
3rd Tax Year$ 9,600
Each Succeeding Year$ 5,760
.02Inclusions in Income of Lessees of
Passenger Automobiles.
A taxpayer must follow the procedures
in § 1.280F–7(a) for determining the in-
come inclusion amounts for passenger au-
tomobiles first leased in calendar year
2018. In applying these procedures, les-
sees of passenger automobiles should use
Table 4 of this revenue procedure.
April 30, 2018Bulletin No. 2018–18
544

REV. PROC. 2018–25 TABLE 4
DOLLAR AMOUNTS FOR PASSENGER AUTOMOBILES
WITH A LEASE TERM BEGINNING IN CALENDAR YEAR 2018
Fair Market Value
of Passenger AutomobileTax Year During Lease
OverNot Over1
st
2
nd
3
rd
4
th
5
th
& later
$50,000$51,0001355 6
51,00052,00049131619
52,00053,000715222731
53,00054,0001021313744
54,00055,0001227404856
55,00056,0001533495968
56,00057,0001839586981
57,00058,0002045678093
58,00059,00023517691105
59,00060,000265785101117
60,00062,000306698118135
62,00064,0003678116139160
64,00066,0004190134160185
66,00068,00046102152181210
68,00070,00052114169203235
70,00072,00057126187225259
72,00074,00063138205246284
74,00076,00068150223267309
76,00078,00074162241288333
78,00080,00079174259310357
80,00085,00089195290347401
85,00090,000102225335400463
90,00095,000116255379454525
95,000100,000130285423508586
100,000110,000150330491587679
110,000120,000178390579695802
120,000130,000205450669801926
130,000140,0002325107589081,049
140,000150,0002605708471,0151,172
150,000160,0002876309361,1221,296
160,000170,0003146911,0241,2301,419
170,000180,0003427501,1141,3361,543
180,000190,0003698101,2041,4421,666
190,000200,0003968711,2921,5501,789
200,000210,0004249301,3821,6561,913
210,000220,0004519911,4701,7642,036
220,000230,0004781,0511,5591,8712,159
230,000240,0005051,1111,6491,9772,283
240,000and over5331,1711,7382,0842,406
Bulletin No. 2018–18April 30, 2018
545

SECTION 5. EFFECTIVE DATE
This revenue procedure applies to pas-
senger automobiles that a taxpayer first
places in service or first leases during cal-
endar year 2018.
SECTION 6. DRAFTING
INFORMATION
The principal author of this revenue
procedure is Bernard P. Harvey of the
Office of Associate Chief Counsel (In-
come Tax & Accounting). For further in-
formation regarding this revenue proce-
dure, contact Mr. Harvey at (202) 317-
7005 (not a toll-free number).
26 CFR 601.601 Rules and regulations. (Also, §§ 54,
54A, 54AA, 141, 142, 1397E, 1400N, 1400U–2,
6431; 1.141–12, & 1.142–2)
Rev. Proc. 2018–26
SECTION 1. PURPOSE
This revenue procedure provides cer-
tain remedial actions that issuers of State
and local tax-exempt bonds and other tax-
advantaged bonds (as defined in § 1.150–
1(b) of the Income Tax Regulations) may
take to preserve the tax-advantaged status
of the bonds when nonqualified uses (as
defined in section 4.04 of this revenue
procedure) of the bond proceeds occur.
SECTION 2. BACKGROUND
.01 Various provisions of the Internal
Revenue Code (the “Code”) provide tax
benefits to facilitate lower borrowing
costs for State and local governments and
other qualified issuers if certain require-
ments are met. These benefits are in the
form of a tax exemption under § 103 on
the interest paid to holders of eligible
State and local bonds (“tax-exempt
bonds”), refundable tax credits under
§ 6431 payable to issuers of certain qual-
ified bonds (“direct pay bonds”), or tax
credits under § 54A and similar provisions
to holders of qualified tax credit bonds
(“tax credit bonds”).
3
Eligibility require-
ments for these tax benefits include pre-
scribed uses of the proceeds of the bonds.
.02 For some types of tax-advantaged
bonds, existing regulations provide reme-
dial actions to cure certain nonqualified
uses. For example, for tax-exempt govern-
mental bonds (as defined in § 1.150–
1(b)), § 1.141–12 provides remedial ac-
tions (including bond redemption or
defeasance, alternative qualified use of
disposition proceeds, and alternative qual-
ified use of facilities) to cure violations of
the private business use and private loan
restrictions under § 141. Similarly, for
certain types of tax-exempt private activ-
ity bonds (as defined in § 141), § 1.142–2
provides remedial actions (including bond
redemption or defeasance) to cure viola-
tions of particular requirements for quali-
fied private activity bonds under §§ 142,
144, and 147. In addition, for qualified
zone academy bonds (“QZABs”) as de-
fined in § 1397E, § 1.1397E–1(h)(8) pro-
vides remedial actions (including bond re-
demption or defeasance and alternative
qualified use of disposition proceeds)
to cure violations of requirements for QZ-
ABs under § 1397E.
.03 The existing remedial actions for
tax-exempt governmental bonds do not
include a remedial action to cure the non-
qualified uses that generally result from
longer-term leases of financed property to
private businesses, other than the remedial
action of bond redemption or defeasance.
Taxpayers have recommended adding a
remedial action for this purpose similar to
the existing remedial action that allows
curing nonqualified uses that result from
sales of financed property to private busi-
nesses through alternative qualified uses
of the disposition proceeds of those sales.
Section 1.141–12(h) permits the Commis-
sioner, by publication in the Internal Rev-
enue Bulletin, to provide additional reme-
dial actions for purposes of the private
business use and private loan restrictions.
Section 5 of this revenue procedure pro-
vides such a remedial action.
.04 For direct pay bonds, no existing
remedial action allows adjustment of the
refundable Federal tax credit for nonquali-
fied uses. Such a remedial action would
provide a simple and administrable
method of preserving the tax-advantaged
status of direct pay bonds. Section 6 of
this revenue procedure provides this re-
medial action.
.05 Finally, for certain types of tax
credit bonds and for direct pay bonds,
none of the existing remedial actions de-
scribed in section 2.02 of this revenue
procedure are available. Extending the
availability of existing remedial actions to
these types of bonds would allow issuers
similarly to cure nonqualified uses of
these bonds. Section 7 of this revenue
procedure provides remedial actions for
these bonds.
SECTION 3. SCOPE
This revenue procedure applies to tax-
advantaged bonds to allow issuers to take
certain remedial actions to protect the tax-
advantaged status of the bonds when non-
qualified uses of bond proceeds occur if
the requirements of particular remedial
actions under this revenue procedure are
met.
SECTION 4. DEFINITIONS
The definitions in this section 4 apply
for purposes of this revenue procedure.
.01Applicable Code sectionmeans the
Code section that sets forth the qualifica-
tion requirements for a particular type of
bond.
.02Defeasance escrowmeans an irre-
vocable escrow established to redeem
nonqualified bonds on the earliest call
date after the date on which a nonqualified
use occurs in an amount that, together
with investment earnings, is sufficient to
pay all the principal of, interest on, and
call premium, if any, on the nonqualified
bonds from the date the escrow is estab-
lished to that call date. No amount in a
defeasance escrow may be invested in an
investment the obligor of which is a user
(or a related party (as defined in § 1.150–
1(b)) to a user) of proceeds of the bonds.
All purchases or sales of investments in a
defeasance escrow must be made at the
fair market value of the investment within
the meaning of § 1.148–5(d)(6).
.03Disposition proceedsmeans, ex-
cept as otherwise provided in this section
4.03, disposition proceeds (as defined in
§ 1.141–12(c)(1)), plus investment earn-
3
Public Law No. 115-97, § 13404, 131 Stat. 2138 (2017), repealed the Code provisions related to tax credit bonds and direct pay bonds effective for bondsissued after December 31, 2017.
References in this revenue procedure to these Code sections refer to those sections as in effect prior to repeal.
April 30, 2018Bulletin No. 2018–18
546

ings on those amounts. For property fi-
nanced with different sources of funding,
disposition proceeds are allocated among
the sources under § 1.141–12(c)(3). For
purposes of section 5 of this revenue pro-
cedure, the definition of disposition pro-
ceeds in § 1.141–12(c)(1) applies.
.04Nonqualified usemeans a failure
to spend proceeds of tax-advantaged
bonds within any required expenditure
period specified in the applicable Code
section and any use of expended pro-
ceeds of tax-advantaged bonds for a pur-
pose other than a qualified use (as de-
fined in section 4.06 of this revenue
procedure). A nonqualified use under
§ 141 occurs on the date of the deliber-
ate action (as defined in § 1.141–
2(d)(3)). For dates on which other non-
qualified uses occur, see section 7.03 of
this revenue procedure.
.05Nonqualified bondsmeans the por-
tion of the outstanding bonds in an
amount that, if the remaining bonds were
issued on the date on which nonqualified
use of proceeds occurs, the proceeds of
the remaining bonds would be used in a
timely manner for a qualified use. Alloca-
tions of nonqualified bonds are made in
accordance with § 1.142–2(e).
.06Qualified usemeans a use required
or permitted by the applicable Code sec-
tion. For example, qualified uses include a
qualified purpose under § 54A(d)(2)(C)
for tax credit bonds under § 54A, capital
expenditures for direct pay build America
bonds under § 54AA(g), and a prescribed
amount of governmental use for tax-
exempt governmental bonds under § 141
and build America bonds under § 54AA.
SECTION 5. REMEDIAL ACTION
FOR ELIGIBLE LEASES OF
PROPERTY FINANCED WITH
TAX-ADVANTAGED BONDS
SUBJECT TO § 141 OR § 145(a)
.01Modified alternative use of dispo-
sition proceeds remedy for eligible leases.
In the case of a deliberate action (as de-
fined in § 1.141–2(d)(3)) that consists of
an eligible lease (as defined in section
5.02 of this revenue procedure) to a non-
governmental person (as defined in
§ 1.141–1(b)) of property financed with
tax-advantaged bonds subject to the pri-
vate activity bond restrictions under § 141
or § 145(a), provided the requirements of
§ 1.141–12(a) are met, the issuer may cure
the nonqualified use resulting from the
lease by applying the alternative use of
disposition proceeds remedial action un-
der § 1.141–12(e) in the same manner as
to a disposition with the following modi-
fications—
(1) Treating the eligible lease as a dis-
position for which the consider-
ation is exclusively cash;
(2) Treating funds (excluding proceeds
of tax-advantaged bonds) in an
amount equal to the lease amount
(as defined in section 5.03 of this
revenue procedure) as disposition
proceeds;
(3) Treating the leased property as
transferred property; and
(4) Allocating proceeds of the issue
that, under § 1.141–12(c)(2), are
allocable to the funds treated as
disposition proceeds, to those funds
during the term of the lease only
(and to the leased property thereaf-
ter).
.02Eligible lease. A lease is an eligible
lease if—
(1) The consideration for the lease con-
sists exclusively of cash lease pay-
ments (regardless of when paid)
that are not financed with proceeds
of another issue of tax-advantaged
bonds; and
(2) The term of the lease—
(a) Is at least equal to the lesser of
20 years or 75 percent of the
weighted average reasonably
expected economic life of the
leased property (determined in
the same manner as under sec-
tion 147(b)) as of the start of the
term of the lease; or
(b) Runs through the end of the mea-
surement period (as defined in
§ 1.141–3(g)(2)) during which
the private business use restric-
tions are measured for compli-
ance under section 141.
.03Lease amount. The lease amount is
an amount equal to the present value of all
of the lease payments required to be made
under the lease. For this purpose, present
value is determined as of the start of the
term of the lease by using the yield on the
issue as of the start of the term of the lease
as the discount rate.
SECTION 6. REMEDIAL ACTION
FOR DIRECT PAY BONDS TO
REDUCE THE REFUNDABLE
FEDERAL TAX CREDIT
In the case of direct pay bonds, an
issuer may cure a nonqualified use by
reducing the amount of the refundable
Federal tax credit to eliminate the amount
allocable to the nonqualified bonds. Fur-
ther, the issuer must treat any disposition
proceeds as described in section 7.02(3) of
this revenue procedure. To effect this re-
medial action, beginning with the first
Form 8038–CP (Return for Credit Pay-
ment to Issuers of Qualified Bonds) or
successor form filed for any interest pay-
ment date for the bonds after the nonquali-
fied use occurs, the issuer, in reporting the
amount of the interest payable, must ex-
clude the portion of that interest allocable
to the nonqualified bonds that accrues on
or after the date of the nonqualified use.
For the first such Form 8038–CP (or suc-
cessor form), the issuer must print or type
across the top of the form “Remedial Ac-
tion under Section 6 of Rev. Proc. 2018–
26” and attach the required explanation
for the difference in scheduled credit pay-
ment. The explanation must state that a
nonqualified use occurred and the date of
the nonqualified use and include a revised
debt service schedule reflecting the exclu-
sion of amounts allocable to the nonquali-
fied bonds beginning with the date of the
nonqualified use.
SECTION 7. CERTAIN GENERAL
REMEDIAL ACTIONS FOR TAX-
ADVANTAGED BONDS
.01In general. In the case of tax-credit
bonds or direct pay bonds, except as oth-
erwise provided in section 7.06 of this
revenue procedure, an issuer may cure a
nonqualified use by taking a remedial ac-
tion of redemption or defeasance of non-
qualified bonds under section 7.02 of this
revenue procedure or alternative use of
disposition proceeds under section 7.05
of this revenue procedure. In the case of
tax-exempt bonds, issuers may apply
section 7.02(2) of this revenue proce-
dure to defeasance escrows established
under § 1.141–12(d) or § 1.142–2(c).
.02Redemption or defeasance of non-
qualified bonds. The requirements for re-
demption or defeasance of nonqualified
Bulletin No. 2018–18April 30, 2018
547

bonds under this section 7.02 are met if
the issuer complies with sections 7.02 (1),
(2), and (3).
(1)Amount and timing of redemption
or defeasance. Within 90 days after the
date on which the nonqualified use occurs,
the issuer redeems the nonqualified bonds
of the issue or establishes a defeasance
escrow for any nonqualified bonds that are
not so redeemed.
(2)Yield restriction or rebate require-
ment. The issuer either restricts the invest-
ments in the defeasance escrow to invest-
ments that are not higher yielding
investments (as defined in § 148(b)) or
the issuer makes rebate payments to the
United States, at the same time and in the
same manner as arbitrage rebate amounts
are required to be paid, in amounts equal
to any earnings on investments in the de-
feasance escrow that are higher than the
yield on the issue with respect to which
the defeasance escrow was established.
For this purpose, the first computation pe-
riod begins on the date on which the de-
feasance escrow is established. Further,
for purposes of this section 7.02(2), § 148
and the regulations thereunder (as modi-
fied by the applicable Code section and
this section 7.02(2)) apply, and compli-
ance with the rebate requirement in this
section 7.02(2) is treated as satisfying ap-
plicable arbitrage investment restrictions
under § 148 for the defeasance escrow.
(3)Treatment of disposition proceeds.
The issuer treats the disposition proceeds
as gross proceeds for purposes of § 148 as
modified by the applicable Code section
(the arbitrage requirements) and as pro-
ceeds for purposes of the applicable Code
section. For purposes of applying the tem-
porary period and spending exceptions to
the arbitrage requirements, the issuer may
treat the date of the receipt of the dispo-
sition proceeds as if it were the issue date
of the nonqualified bonds and disregard
the receipt of disposition proceeds for the
spending exceptions under § 1.148–7 for
which the requirements were met before
the receipt of the disposition proceeds.
.03When a nonqualified use occurs.
For unspent proceeds of bonds, a non-
qualified use occurs on the earlier of the
first date on which the issuer fails to have
a reasonable expectation to spend the pro-
ceeds for a qualified use (within the re-
quired expenditure period, if any) or the
last day of the required expenditure pe-
riod, if any. For proceeds of bonds that
have been spent, a nonqualified use occurs
on the first date on which an action causes
proceeds to be used for other than a qual-
ified use.
.04Reissuance. For purposes of deter-
mining whether the establishment of a de-
feasance escrow under section 7.02 of this
revenue procedure results in an exchange
under § 1.1001–1(a), the defeased bonds
are treated as tax-exempt bonds for pur-
poses of § 1.1001–3(e)(5)(ii)(B)(1).
.05Alternative use of disposition pro-
ceeds. The requirements for alternative
use of disposition proceeds under this sec-
tion 7.05 are met if—
(1)Disposition for cash. The nonquali-
fied use consists of a disposition for which
the consideration is exclusively cash;
(2)Reasonably expected use of dispo-
sition proceeds. The issuer reasonably ex-
pects to spend the disposition proceeds
within two years after the date of the
disposition on alternative qualified uses
or, to the extent the issuer does not expect
to so spend the disposition proceeds, the
issuer takes a remedial action under sec-
tion 7.02 of this revenue procedure for
such disposition proceeds within 90 days
after the date of disposition;
(3)Unspent disposition proceeds.If
the issuer fails to spend all of the dispo-
sition proceeds that it reasonably expected
to spend within the prescribed two-year
period in the manner described in section
7.05(2) of this revenue procedure, the is-
suer takes a remedial action under section
7.02 of this revenue procedure for the
remaining disposition proceeds within 90
days after the end of that two-year period;
and
(4)Treatment of disposition proceeds.
The issuer treats the disposition proceeds
as described in section 7.02(3) of this rev-
enue procedure.
.06Certain special rules on applicabil-
ity. For QZABs under § 1397E, the reme-
dial actions under § 1.1397E–1(h)(8) ap-
ply in lieu of this section 7. For
tax-advantaged bonds subject to § 141,
the remedial action provisions under
§ 1.141–12 apply in lieu of this section 7
for purposes of curing violations of the
private business use and private loan re-
strictions; however, for defeasance es-
crows established under § 1.141–12(d),
section 7.04 of this revenue procedure ap-
plies and issuers may apply section
7.02(2) of this revenue procedure.
SECTION 8. EFFECTIVE DATE
This revenue procedure applies to a
nonqualified use that occurs on or after
April 11, 2018, and may be applied to a
nonqualified use that occurs before April
11, 2018.
SECTION 9. DRAFTING
INFORMATION
The principal authors of this revenue
procedure are Timothy L. Jones, Johanna
Som de Cerff, and Zoran Stojanovic of the
Office of Associate Chief Counsel (Finan-
cial Institutions & Products). For further
information regarding this revenue proce-
dure, contact Zoran Stojanovic at 202-
317-6980 (not a toll-free number).
April 30, 2018Bulletin No. 2018–18
548

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
effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the 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 with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. 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
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example,modifiedand
supersededdescribes 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
published 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
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings 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 following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
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—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2018–18April 30, 2018
i

Numerical Finding List
1
Bulletin 2018–1 through 2018–18
Announcements:
2018-01, 2018-9 I.R.B.387
2018-02, 2018-9 I.R.B.387
2018-03, 2018-9 I.R.B.387
2018-04, 2018-10 I.R.B.401
2018-05, 2018-13 I.R.B.461
2018-07, 2018-16 I.R.B.503
Notices:
2018-01, 2018-3 I.R.B.285
2018-02, 2018-2 I.R.B.281
2018-03, 2018-2 I.R.B.285
2018-05, 2018-6 I.R.B.341
2018-06, 2018-3 I.R.B.300
2018-07, 2018-4 I.R.B.317
2018-08, 2018-7 I.R.B.352
2018-10, 2018-8 I.R.B.359
2018-11, 2018-11 I.R.B.425
2018-12, 2018-12 I.R.B.441
2018-13, 2018-6 I.R.B.341
2018-14, 2018-7 I.R.B.353
2018-15, 2018-9 I.R.B.376
2018-16, 2018-10 I.R.B.390
2018-17, 2018-9 I.R.B.376
2018-18, 2018-12 I.R.B.443
2018-19, 2018-12 I.R.B.443
2018-20, 2018-12 I.R.B.444
2018-21, 2018-15 I.R.B.472
2018-22, 2018-14 I.R.B.464
2018-23, 2018-15 I.R.B.474
2018-24, 2018-17 I.R.B.507
2018-25, 2018-15 I.R.B.476
2018-26, 2018-16 I.R.B.480
2018-28, 2018-16 I.R.B.492
2018-29, 2018-16 I.R.B.495
2018-31, 2018-16 I.R.B.501
2018-32, 2018-17 I.R.B.507
2018-33, 2018-17 I.R.B.508
2018-35, 2018-18 I.R.B.520
2018-37, 2018-18 I.R.B.521
2018-38, 2018-18 I.R.B.522
Proposed Regulations:
REG-119514-15, 2018-04 I.R.B.325
REG-129260-16, 2018-14 I.R.B.470
REG-118067-17, 2018-08 I.R.B.360
REG-132197-17, 2018-10 I.R.B.404
REG-132197-17, 2018-10 I.R.B.404
REG-132434-17, 2018-16 I.R.B.503
Revenue Procedures:
2018-1, 2018-1 I.R.B.1
2018-2, 2018-1 I.R.B.106
Revenue Procedures:—Continued
2018-3, 2018-1 I.R.B.130
2018-4, 2018-1 I.R.B.146
2018-5, 2018-1 I.R.B.244
2018-7, 2018-1 I.R.B.282
2018-8, 2018-2 I.R.B.286
2018-9, 2018-2 I.R.B.290
2018-10, 2018-7 I.R.B.355
2018-11, 2018-5 I.R.B.334
2018-12, 2018-6 I.R.B.349
2018-13, 2018-7 I.R.B.356
2018-14, 2018-9 I.R.B.378
2018-15, 2018-9 I.R.B.379
2018-16, 2018-9 I.R.B.383
2018-17, 2018-9 I.R.B.384
2018-18, 2018-10 I.R.B.392
2018-19, 2018-14 I.R.B.466
2018-20, 2018-11 I.R.B.427
2018-21, 2018-14 I.R.B.467
2018-22, 2018-18 I.R.B.524
2018-23, 2018-17 I.R.B.516
2018-24, 2018-18 I.R.B.525
2018-25, 2018-18 I.R.B.543
2018-26, 2018-18 I.R.B.546
Revenue Rulings:
2018-01, 2018-2 I.R.B.275
2018-02, 2018-2 I.R.B.277
2018-03, 2018-2 I.R.B.278
2018-04, 2018-4 I.R.B.304
2018-05, 2018-6 I.R.B.339
2018-06, 2018-10 I.R.B.388
2018-07, 2018-13 I.R.B.445
2018-09, 2018-14 I.R.B.462
2018-10, 2018-16 I.R.B.477
2018-11, 2018-18 I.R.B.518
Treasury Decisions:
9829, 2018-04 I.R.B.308
9830, 2018-11 I.R.B.423
9831, 2018-13 I.R.B.459
9832, 2018-16 I.R.B.477
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–27 through 2017–52 is in Internal Revenue Bulletin
2017–52, dated December 27, 2017.
April 30, 2018Bulletin No. 2018–18
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2018–1 through 2018–18
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–27 through 2017–52 is in Internal Revenue Bulletin
2017–52, dated December 27, 2017.
Bulletin No. 2018–18April 30, 2018
iii

INTERNAL REVENUE BULLETIN
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