Internal Revenue Bulletin 2010-17 (PDF rendition): IRS Notices

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

Bulletin No. 201
0-17
April 26, 2010
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
T.D. 9481, page 605.
Final regulations under section 162 of the Code provide guid-
ance regarding the deduction of deemed living expenses while
away from home for a state legislator who makes an election
under section 162(h).
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
Notice 2010–34, page 612.
This notice provides guidance about reporting obligations for
certain shareholders of passive foreign investment companies
(PFICs) who are subject to the annual filing requirement set forth
in new section 1298(f) of the Code.
EMPLOYEE PLANS
Notice 2010–36, page 612.
Weighted average interest rate update; corporate bond
indices; 30-year Treasury securities; segment rates.
This notice contains updates for the corporate bond weighted
average interest rate for plan years beginning in April 2010;
the 24-month average segment rates; the funding transitional
segment rates applicable for April 2010; and the minimum
present value transitional rates for March 2010.
EXEMPT ORGANIZATIONS
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
Announcement 2010–28, page 616.
The IRS has revoked its determination that the Housing Action
Resource Trust of Rancho Cucamonga, CA, and the Andrew S.
Braddock Foundation of Waukesha,WI, qualify as organizations
described in sections 501(c)(3) and 170(c)(2) of the Code.
ESTATE TAX
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
GIFT TAX
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
(Continued on the next page)
Finding Lists begin on page ii.
Index for begins on page iv.

EMPLOYMENT TAX
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
SELF-EMPLOYMENT TAX
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
EXCISE TAX
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
ADMINISTRATIVE
Notice 2010–33, page 609.
This notice lists positions identified as frivolous for purposes
of section 6702(c) of the Code. Notice 2008–14 modified and
superseded.
Announcement 2010–29, page 616.
This document contains a correction to Announcement
2009–23, 2010–16 I.R.B. 602, regarding Foundations Status
of Certain Organizations.
April 26, 20102010–17 I.R.B.

The IRS Mission
Provide Americ
a’s taxpayers top quality service by helping them
understand an
d meet their tax responsibilities and by applying
the tax law with
integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
2010–17 I.R.B.April 26, 2010

April 26, 20102010–17 I.R.B.
Place missing child here.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 162.—
Trade or
Business Expe
nse
26 CFR 1.162–24: Travel expenses of state legisla-
tors.
T.D. 9481
DEPARTMENT O
FTHE
TREASURY
Internal Rev
enue Service
26 CFR Parts
1, 301 and 602
Travel Expenses of State
Legislators
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Fi
nal regulations.
SUMMARY: This document contains fi-
nal regulations relating to travel expenses
of state legislators while away from home.
The regulations affecteligible state legis-
lators who make the election under sec-
tion 162(h) of the Internal Revenue Code
(Code). The regulations clarify the amount
of travel expenses that a state legislator
may deduct under section 162(h).
DATES:Effective Date:These regulations
are effective April 8, 2010.
Applicability Date:For date of applica-
bility, see §1.162–24(h).
FOR FURT
HER INFORMATION
CONTACT
: R. Matthew Kelley, (202)
622–790
0 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The coll
ection of information con-
tained
in these final regulations has been
review
ed and approved by the Office of
Manage
ment and Budget in accordance
with th
e Paperwork Reduction Act of 1995
(44 U.S
.C. 3507(d)) under OMB Control
Numbe
r 1545–2115.
The col
lection of information in these
final
regulations is in §1.162–24(e). The
infor
mation will help the IRS determine if
a taxpayer may
make or revoke an election
under section
162(h). The collection of
information i
s required to obtain a benefit.
An agency may
not conduct or sponsor,
and a person i
s not required to respond
to, a collect
ion of information unless the
collection o
f information displays a valid
control num
ber assigned by the Office of
Management
and Budget.
The informa
tion will be reported on a
statement a
ttached to individual tax re-
turns. The t
ime needed to complete and
file this st
atement will vary depending on
individua
l circumstances. The estimated
burden for
individual taxpayers filing this
statement
is 30 minutes.
Comments c
oncerning the accuracy
of this bur
den estimate and sugges-
tions for r
educing this burden should be
sent to th
eInternal Revenue Service,
Attn: IRS
Reports Clearance Officer,
SE:W:CAR
:MP:T:T:SP, Washington, DC
20224, an
dtotheOffice of Manage-
ment and B
udget, Attn: Desk Officer for
the Depar
tment of the Treasury, Office
of Infor
mation and Regulatory Affairs,
Washing
ton, DC 20503.
Books or
records relating to a collection
of infor
mation must be retained as long
as their
contents may become material in
the admi
nistration of any internal revenue
law. Ge
nerally, tax returns and return in-
format
ion are confidential, as required by
26 U.S.
C. 6103.
Backgr
ound
This do
cument contains final amend-
ments t
o the Income Tax Regulations,
26 CFR p
art 1, 26 CFR part 301, and
26 CFR
Part 602, relating to travel
expen
ses of state legislators while away
from h
ome.
On Mar
ch 31, 2008, a notice of pro-
posed
rulemaking (REG–119518–07,
2008–
1 C.B. 844) was published in the
Feder
al Register(73 FR 16797). Writ-
ten c
omments responding to the notice
of pr
oposed rulemaking were received.
No pu
blic hearing was requested or held.
Afte
r consideration of all the comments,
the p
roposed regulations are adopted as
amen
ded by this Treasury decision. The
comments and r
evisions are discussed in
the preamble.
Explanation o
f Provisions and
Summary of Com
ments
Under section
162(a), a state legisla-
tor may be ent
itled to deduct expenses
paid or incur
red in conducting legislative
business (fo
r example, living, transporta-
tion, and mis
cellaneous expenses) while
traveling aw
ay from home. In addition,
section 162
(h) allows a state legislator to
deduct deem
ed living expenses, but not
other deeme
d business travel expenses, on
specified l
egislative days. These regula-
tions prov
ide guidance on the special rules
for deduct
ing a state legislator’s deemed
living exp
enses.
Section 16
2(h) and the proposed reg-
ulations p
rovide that a taxpayer who is a
state legi
slator at any time during the tax-
able year
may make an election under sec-
tion 162(
h) to treat the taxpayer’s place of
residenc
e within the taxpayer’s legislative
district
as the taxpayer’s tax home. In ad-
dition,
as a result of the election the tax-
payer is
deemed to be away from home in
the purs
uit of a trade or business on each
legisla
tive day and is deemed to have ex-
pended a
n amount for living expenses on
that da
y. Under the proposed regulations,
alegis
lative day for a taxpayer includes
each da
y (1) the legislature is actually in
sessio
n, (2) the legislature is not in session
for a pe
riod not longer than 4 consecutive
days, (
3) the taxpayer’s attendance is for-
mally
recorded at a meeting of a commit-
tee of
the legislature, or (4) the taxpayer’s
atten
dance is formally recorded at a ses-
sion o
f the legislature that only a limited
numbe
r of members are expected to attend,
such
as apro formasession.
1.Li
mitation on Availability of Deduction
for T
ravel Expenses
Some
commentators expressed con-
cern
s that the proposed regulations might
impo
se new limits on state legislators’ de-
duct
ions for business travel expenses and
sug
gested that the proposed regulations
sho
uld not be finalized.
The
final regulations do not adopt
thi
s comment because the regulations do
2010–17 I.R.B.605April 26, 2010

not impose new limits. The regulations
merely clarify the existing section 162(h)
special rules for deducting state legisla-
tors’ deemed living expenses for each
legislative day. The regulations do not
affect or limit the deduction for actual
travel expenses under section 162(a). A
taxpayer may continue to deduct actual
substantiated travel expenses, whether or
not the taxpayer qualifies under the special
rule for deducting deemed expenses under
section 162(h).
2.Definitions of In Session and Legislative
Day
Some commentators objected to Fed-
eral regulations defining when a legis-
lature is in session and what constitutes
a legislative day for purposes of section
162(h). The commentators expressed con-
cern that the proposed regulations would
preempt state law governing the conduct
of legislative affairs. The commentators
recommended that the regulations not be
issued.
The final regulations do not adopt this
recommendation. These regulations de-
finein sessionandlegislative daysolely
for the purpose of interpreting the special
rulesofsection162(h),amatterofFed-
eral law.See Morgan v. Commissioner,
309 U.S. 78, 81 (1940) (“If it is found in
a given case that an interest or right cre-
ated by local law was the object intended
to be taxed, the federal law must prevail
no matter what name is given to the in-
terest or right by state law.”). These reg-
ulations do not preempt or supersede state
laws governing the conduct or operation of
state legislatures. The regulations merely
address what amounts (deemed living ex-
penses) state legislators may deduct under
section 162(h).
3.Definition of a State Legislator
The proposed regulations provide that
a taxpayer is a state legislator for purposes
of the regulations beginning on the day the
taxpayer is sworn into office and ending
on the day following the day on which the
taxpayer’s term in office ends.
Commentators noted that some state
laws treat a legislator-elect as a legislator
before the legislator-elect is sworn into
office, for example, on the date elected,
the date the election results are certified,
or on January 1 following the election. A
commentator stated that legislators-elect
often move to the state capital immedi-
ately upon election to conduct legislative
business, for example, to participate in
the formation of committees and assign-
ments. Commentators suggested that the
definition of a state legislator in the final
regulations be modified to permit legis-
lators-elect to deduct legislative business
expenses under these circumstances.
The final regulations do not adopt this
suggestion. Although a legislator-elect
who is present in the state capital on busi-
ness prior to being sworn into office is not
eligible to deduct deemed living expenses
under section 162(h), the legislator-elect
may be traveling away from home and
may be entitled to deduct actual business
travel expenses under the general rules of
section 162(a).
4.Definition of a Committee of the
Legislature
The proposed regulations provide that a
committee of the legislature is a group con-
sisting solely of legislators charged with
conducting business of the legislature.
Commentators noted that it is common
practice in a number of states for legisla-
tive committees to have non-legislative
members. Commentators suggested that
the final regulations modify the definition
of a committee of the legislature to include
groups tasked with conducting public pol-
icy or other legislative business that have
legislator and non-legislator members.
In response to these comments, the fi-
nal regulations define a committee of the
legislature as a group that includes one or
more legislators and is charged with con-
ducting business of the legislature.
5.Effective/Applicability Date
A commentator expressed concern that
an effective date for the final regulations
that falls in the middle of a taxable year
would create confusion about expenses
paid or incurred in the part of the year
before the effective date. To eliminate
confusion, the final regulations apply to
expenses paid or incurred, or deemed ex-
pended under section 162(h), in taxable
years beginning after April 8, 2010, the
date of publication of this regulation.
Effect on Other Documents
Rev. Rul. 82–33, 1982–1 C.B. 28 is
obsoleted as of April 8, 2010.
Special Analyses
It has been determined that this Trea-
sury decision is not asignificant regula-
tory action as defined in Executive Order
12866. Therefore, a regulatory assessment
is not required. It also has been determined
that section 553(b) of the Administrative
Procedure Act (5 U.S.C. chapter 5) does
not apply to these regulations and, because
the regulations do not impose a collection
of information on small entities, the Regu-
latory Flexibility Act (5 U.S.C. chapter 6)
does not apply. Pursuant to section 7805(f)
of the Code, the notice of proposed rule-
making that preceded these final regula-
tions was submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on its impact on
small business.
Drafting Information
The principal author of these regula-
tions is R. Matthew Kelley of the Office
of Associate Chief Counsel (Income Tax
and Accounting). However, other person-
nel from the IRS and Treasury Department
participated in their development.
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1, 301, and
602 are amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authorit
y citation for
part 1 is amended by addin
ganentryto
read in part as follows:
Authority: 26 U.S.C. 780
5***
Section1.162–24alsoiss
ued under
26 U.S.C. 162(h). * * *
Par. 2. Section 1.162–24
is added to
read as follows:
§1.162–24 Travel expenses of state
legislators.
(a)In general. For purposes of section
162(a), in the case of any taxpayer who
is a state legislator at any time during the
April 26, 20106062010–17 I.R.B.

taxable year and who makes an election
under section 162(h) for the taxable year—
(1) The taxpayer’s place of residence
within the legislative district represented
by the taxpayer is the taxpayer’s home for
that taxable year;
(2) The taxpayer is deemed to have ex-
pended for living expenses (in connection
with the taxpayer’s trade or business as a
legislator) an amount determined by mul-
tiplying the number of legislative days of
the taxpayer during the taxable year by the
greater of—
(i) The amount generally allowable
with respect to those days to employees of
the state of which the taxpayer is a legis-
lator forper diemwhile away from home,
to the extent the amount does not exceed
110 percent of the amount described in
paragraph (a)(2)(ii) of this section; or
(ii) The Federalper diemwith respect to
those days for the taxpayer’s state capital;
and
(3) The taxpayer is deemed to be away
from home in the pursuit of a trade or busi-
ness on each legislative day.
(b)Legislative day. For purposes of
section 162(h)(1) and this section, for any
taxpayer who makes an election under sec-
tion 162(h), a legislative day is any day
on which the taxpayer is a state legislator
and—
(1) The legislature is in session;
(2) The legislature is not in session for
a period that is not longer than 4 consecu-
tive days, without extension for Saturdays,
Sundays, or holidays;
(3) The taxpayer’s attendance at a meet-
ing of a committee of the legislature is for-
mally recorded; or
(4) The taxpayer’s attendance at any
session of the legislature that only a limited
number of members are expected to attend
(such as apro formasession), on any day
not described in paragraph (b)(1) or (b)(2)
of this section, is formally recorded.
(c)Fifty mile rule. Section 162(h) and
thissectiondonotapplytoanytaxpayer
who is a state legislator and whose place
of residence within the legislative district
represented by the taxpayer is 50 or fewer
miles from the capitol building of the state.
For purposes of this paragraph (c), the dis-
tance between the taxpayer’s place of res-
idence within the legislative district rep-
resented by the taxpayer and the capitol
building of the state is the shortest of the
more commonly traveled routes between
the two points.
(d)Definitions and special rules.The
following definitions apply for purposes of
section 162(h) and this section.
(1)State legislator. A taxpayer be-
comes a state legislator on the day the tax-
payer is sworn into office and ceases to be
a state legislator on the day following the
day on which the taxpayer’s term in office
ends.
(2)Living expenses.Livingexpenses
include lodging, meals, and incidental ex-
penses.Incidental expenseshas the same
meaning as in 41 CFR 300–3.1.
(3)In session—(i)In general. For pur-
poses of this section, the legislature of
which a taxpayer is a member is in ses-
sion on any day if, at any time during that
day, the members of the legislature are ex-
pected to attend and participate as an as-
sembled body of the legislature.
(ii)Examples. The following examples
illustrate the rules of this paragraph (d)(3):
Example 1. B is a member of the legislature of
State X. On Day 1, the State X legislature is convened
and the members of the legislature are expected to at-
tend and participate. On Day 1, the State X legis-
lature is in session within the meaning of paragraph
(d)(3)(i) of this section. B does not attend the session
of the State X legislature on Day 1. However, Day
1 is a legislative day for B for purposes of section
162(h)(2)(A) and paragraph (b)(1) of this section.
Example 2.C,D,andEaremembersofthelegis-
lature of State X. On Day 2, the State X legislature is
convened for a limited session in which not all mem-
bers of the legislature are expected to attend and par-
ticipate. Thus, on Day 2 the legislature is not in ses-
sion within the meaning of paragraph (d)(3)(i) of this
section, and Day 2 is not a legislative day under para-
graph (b)(1) of this section. In addition, Day 2 is not
a day described in paragraph (b)(2) of this section. C
and D are the only members who are called to, and
do, attend the limited session on Day 2, and their at-
tendance at the session is formally recorded. E is not
called and does not attend. Therefore, Day 2 is a leg-
islative day as to C and D under section 162(h)(2)(B)
and paragraph (b)(4) of this section. Day 2 is not a
legislative day as to E.
(4)Committee of the legislature.A
committee of the legislature is any group
that includes one or more legislators and
that is charged with conducting business of
the legislature. Committees of the legisla-
ture include, but are not limited to, com-
mittees to which the legislature refers bills
for consideration, committees that the leg-
islature has authorized to conduct inquiries
into matters of public concern, and com-
mittees charged with the internal adminis-
tration of the legislature. For purposes of
this section, groups that are not considered
committees of the legislature include, but
are not limited to, groups that promote par-
ticular issues, raise campaign funds, or are
caucuses of members of a political party.
(5)Federal per diem. The Federalper
diemfor any city and day is the maximum
amount allowable to employees of the ex-
ecutive branch of the Federal government
for living expenses while away from home
in pursuit of a trade or business in that city
on that day. See 5 U.S.C. 5702 and the reg-
ulations under that section.
(e)Election—(1)Time for making elec-
tion. A taxpayer’s election under section
162(h) must be made for each taxable year
for which the election is to be in effect and
must be made no later than the due date (in-
cluding extensions) of the taxpayer’s Fed-
eral income tax return for the taxable year.
(2)Manner of making election.Atax-
payer makes an election under section
162(h) by attaching a statement to the tax-
payer’s income tax return for the taxable
year for which the election is made. The
statement must include—
(i) The taxpayer’s name, address, and
taxpayer identification number;
(ii) A statement that the taxpayer is
making an election under section 162(h);
and
(iii) Information establishing that the
taxpayer is a state legislator entitled to
make the election, for example, a state-
ment identifying the taxpayer’s state and
legislative district and representing that the
taxpayer’s place of residence in the legisla-
tive district is not 50 or fewer miles from
the state capitol building.
(3)Revocation of election. An election
under section 162(h) may be revoked only
with the consent of the Commissioner. An
application for consent to revoke an elec-
tion must be signed by the taxpayer and
filed with the submission processing cen-
ter with which the election was filed, and
must include—
(i) The taxpayer’s name, address, and
taxpayer identification number;
(ii) A statement that the taxpayer is re-
voking an election under section 162(h) for
a specified year; and
(iii) A statement explaining why the
taxpayer seeks to revoke the election.
(f)Effect of election on otherwise de-
ductible expenses for travel away from
home—(1)Legislative days—(i)Living
expenses. For any legislative day for
which an election under section 162(h)
2010–17 I.R.B.607April 26, 2010

and this section is in effect, the amount
of an electing taxpayer’s living expenses
while away from home is the greater of
the amount of the living expenses—
(A) Specified in paragraph (a)(2) of this
section in connection with the trade or
business of being a legislator; or
(B) Otherwise allowable under section
162(a)(2) in the pursuit of any trade or
business of the taxpayer.
(ii)Other expenses. For any legislative
dayforwhichanelectionundersection
162(h) and this section is in effect, the
amount of an electing taxpayer’s expenses
(other than living expenses) for travel
away from home is the sum of the substan-
tiated expenses, such as expenses for travel
fares, telephone calls, and local transporta-
tion, that are otherwise deductible under
section 162(a)(2) in the pursuit of any
trade or business of the taxpayer.
(2)Non-legislative days. For any day
that is not a legislative day, the amount
of an electing taxpayer’s expenses (includ-
ing amounts for living expenses) for travel
away from home is the sum of the sub-
stantiated expenses that are otherwise de-
ductible under section 162(a)(2) in the pur-
suit of any trade or business of the tax-
payer.
(g)Cross references.See
§1.62–1T(e)(4) for rules regarding al-
location of unreimbursed expenses of
state legislators and section 274(n) for
limitations on the amount allowable as a
deduction for expenses for or allocable to
meals.
(h)Effective/applicability date.This
section applies to expenses paid or in-
curred, or deemed expended under section
162(h), in taxable years beginning after
April 8, 2010.
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 3. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
§301.9100–4T [Amended]
Par. 4. Section 301.9100–4T is
amended by removing from the table in
paragraph (a)(1) “section 127(a)”, and
removing paragraph (a)(2)(iv).
PART 602—OMB CONTROL
NUMBERS UNDER THE PAPERWORK
REDUCTION ACT
Par. 5. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.
Par. 6. In §602.101, paragraph (b) is
amended to add in numerical order an en-
try for “1.162–24” to read as follows:
§602.101 OMB Control numbers.
*****
(b) * * *
CFR part or section where
Identified and described
Current OMB
control No.
*****
1.162–24...........................................................
1545–2115
*****
Linda M. Kroening,
(Acting) Deputy Commissioner
for Services and Enforcement.
Approved August 27, 2009.
Michael Mundaca,
(Acting) Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on April 7, 2010,
8:45 a.m., and published in the issue of the Federal Register
for April 8
, 2010, 75 F.R. 17854)
April 26, 20106082010–17 I.R.B.

Part III. Administrative, Procedural, and Miscellaneous
Frivolous Positions
Notice 2010–33
I.Purpose
Positions that are the same as or sim-
ilar to the positions listed in this notice
are identified as frivolous for purposes
of the penalty for a “frivolous tax re-
turn” under section 6702(a) of the Inter-
nal Revenue Code and the penalty for
a “specified frivolous submission” un-
der section 6702(b). Persons who file a
purported return of tax, including an orig-
inal or amended return, based on one or
more of these positions are subject to a
penalty of $5,000 if the purported return
of tax does not contain information on
which the substantial correctness of the
self-assessed determination of tax may
be judged or contains information that on
its face indicates the self-assessed deter-
mination of tax is substantially incorrect.
Likewise, persons who submit a “speci-
fied submission” (namely, a request for
a collection due process hearing or an
application for an installment agreement,
offer-in-compromise, or taxpayer assis-
tance order) based on one or more of the
positions listed in this notice are subject
to a penalty of $5,000. The penalty may
also be applied if the purported return or
any portion of the specified submission
is not based on a position set forth in this
notice, yet reflects a desire to delay or
impede the administration of Federal tax
laws for purposes of section 6702(a)(2)(B)
or 6702(b)(2)(A)(ii). The penalty will be
imposed only when the frivolous position
or desire to delay or impede the admin-
istration of Federal tax laws appears on
the face of the return, purported return,
or specified submission, including any
attachments to the return or submission.
II.Background
Section 407 of Tax Relief and Health
Care Act of 2006, Pub. L. No. 109–432,
120 Stat. 2922, 2960–62 (2006), amended
section 6702 to increase the amount of
the penalty for frivolous tax returns from
$500 to $5,000 and to impose a penalty
of $5,000 on any person who submits a
“specified frivolous submission.” A sub-
mission is a “specified frivolous submis-
sion” if it is a “specified submission” (de-
fined in section 6702(b)(2)(B) as a request
for a hearing under section 6320 or 6330
or an application under section 6159, 7122
or 7811) and any portion of the submission
(i) is based on a position identified by the
Secretary as frivolous or (ii) reflects a de-
sire to delay or impede administration of
the Federal tax laws. Section 6702 was
further amended to add a new subsection
(c) requiring the Secretary to prescribe,
and periodically revise, a list of positions
identified as frivolous. Notice 2007–30,
2007–1 C.B. 883, contained the prescribed
list. Notice 2007–30 was modified and su-
perseded by Notice 2008–14, 2008–1 C.B.
310, which added frivolous positions to the
prescribed list. This notice revises the list
in Notice 2008–14 to add additional posi-
tions identified as frivolous. The positions
that have been added are found in para-
graphs 21, 22, and 27.
III.Discussion
Positions that are the same as or similar
to the following are frivolous.
(1) Compliance with the internal rev-
enue laws is voluntary or optional and not
required by law, including arguments that:
(a) Filing a Federal tax or information
return or paying tax is purely voluntary un-
der the law, or similar arguments described
as frivolous in Rev. Rul. 2007–20, 2007–1
C.B. 863.
(b) Nothing in the Internal Revenue
Code imposes a requirement to file a return
or pay tax, or that a person is not required
to file a tax return or pay a tax unless the
Internal Revenue Service responds to the
person’s questions, correspondence, or a
request to identify a provision in the Code
requiring the filing of a return or the pay-
ment of tax.
(c) There is no legal requirement to
file a Federal income tax return because
the instructions to Forms 1040, 1040A, or
1040EZ or the Treasury regulations associ-
ated with the filing of the forms do not dis-
play an OMB control number as required
by the Paperwork Reduction Act of 1980,
44 U.S.C. § 3501et seq., or similar argu-
ments described as frivolous in Rev. Rul.
2006–21, 2006–1 C.B. 745.
(d) Because filing a tax return is not
required by law, the Service must prepare a
return for a taxpayer who does not file one
in order to assess and collect tax.
(e) A taxpayer has an option under the
law to file a document or set of documents
in lieu of a return or elect to file a tax return
reporting zero taxable income and zero tax
liability even if the taxpayer received tax-
able income during the taxable period for
which the return is filed, or similar argu-
ments described as frivolous in Rev. Rul.
2004–34, 2004–1 C.B. 619.
(f) An employer is not legally obligated
to withhold income or employment taxes
on employees’ wages.
(g) Only persons who have contracted
with the government by applying for a
governmental privilege or benefit, such as
holding a Social Security number, are sub-
ject to tax, and those who have contracted
with the government may choose to revoke
the contract at will.
(h) A taxpayer may lawfully decline to
pay taxes if the taxpayer disagrees with
the government’s use of tax revenues, or
similar arguments described as frivolous in
Rev. Rul. 2005–20, 2005–1 C.B. 821.
(i) An administrative summons issued
by the Service isper seinvalid and com-
pliance with a summons is not legally re-
quired.
(2) The Internal Revenue Code is not
law (or “positive law”) or its provisions
are ineffective or inoperative, including
the sections imposing an income tax or re-
quiring the filing of tax returns, because
the provisions have not been implemented
by regulations even though the provisions
in question either (a) do not expressly re-
quire the Secretary to issue implementing
regulations to become effective or (b) ex-
pressly require implementing regulations
which have been issued.
(3) A taxpayer’s income is excluded
from taxation when the taxpayer rejects
or renounces United States citizenship be-
cause the taxpayer is a citizen exclusively
of a State (sometimes characterized as
a “natural-born citizen” of a “sovereign
state”), that is claimed to be a separate
country or otherwise not subject to the
laws of the United States. This position
includes the argument that the United
States does not include all or a part of
2010–17 I.R.B.609April 26, 2010

the physical territory of the 50 States and
instead consists of only places such as the
District of Columbia, Commonwealths
and Territories (e.g., Puerto Rico), and
Federal enclaves (e.g., Native American
reservations and military installations), or
similar arguments described as frivolous
in Rev. Rul. 2004–28, 2004–1 C.B. 624,
or Rev. Rul. 2007–22, 2007–1 C.B. 866.
(4) Wages, tips, and other compensa-
tion received for the performance of per-
sonal services are not taxable income or
are offset by an equivalent deduction for
the personal services rendered, including
an argument that a taxpayer has a “claim
of right” to exclude the cost or value of
the taxpayer’s labor from income or that
taxpayers have a basis in their labor equal
to the fair market value of the wages they
receive, or similar arguments described as
frivolous in Rev. Rul. 2004–29, 2004–1
C.B. 627, or Rev. Rul. 2007–19, 2007–1
C.B. 843.
(5) United States citizens and residents
are not subject to tax on their wages or
other income derived from sources within
the United States, as only foreign-based
income or income received by nonresi-
dent aliens and foreign corporations from
sources within the United States is tax-
able, and similar arguments described as
frivolous in Rev. Rul. 2004–30, 2004–1
C.B. 622.
(6) A taxpayer has been untaxed, de-
taxed, or removed or redeemed from the
Federal tax system though the taxpayer re-
mains a United States citizen or resident, or
similar arguments described as frivolous in
Rev. Rul. 2004–31, 2004–1 C.B. 617.
(7) Only certain types of taxpayers are
subject to income and employment taxes,
such as employees of the Federal gov-
ernment, corporations, nonresident aliens,
or residents of the District of Columbia
or the Federal territories, or similar argu-
ments described as frivolous in Rev. Rul.
2006–18, 2006–1 C.B. 743.
(8) Only certain types of income are
taxable, for example, income that re-
sults from the sale of alcohol, tobacco, or
firearms or from transactions or activities
that take place in interstate commerce.
(9) Federal income taxes are unconsti-
tutional or a taxpayer has a constitutional
right not to comply with the Federal tax
laws for one of the following reasons:
(a) The First Amendment permits a tax-
payer to refuse to pay taxes based on reli-
gious or moral beliefs.
(b) A taxpayer may withhold payment
of taxes or the filing of a tax return until
the Service or other government entity re-
sponds to a First Amendment petition for
redress of grievances.
(c) Mandatory compliance with, or en-
forcement of, the tax laws invades a tax-
payer’s right to privacy under the Fourth
Amendment.
(d) The requirement to file a tax return
is an unreasonable search and seizure con-
trary to the Fourth Amendment.
(e) Income taxation, tax withholding,
or the assessment or collection of tax is a
“taking” of property without due process
of law or just compensation in violation of
the Fifth Amendment.
(f) The Fifth Amendment privilege
against self-incrimination grants taxpayers
the right not to file returns or the right to
withhold all financial information from
the Service.
(g) The Ninth Amendment exempts
those with religious or other objections to
military spending from paying taxes to the
extent the taxes will be used for military
spending.
(h) Mandatory or compelled compli-
ance with the internal revenue laws is a
form of involuntary servitude prohibited
by the Thirteenth Amendment.
(i) Individuals may not be taxed unless
they are “citizens” within the meaning of
the Fourteenth Amendment.
(j) The Sixteenth Amendment was not
ratified, has no effect, contradicts the Con-
stitution as originally ratified, lacks an en-
abling clause, or does not authorize a non-
apportioned, direct income tax.
(k) Taxation of income attributed to a
trust, which is a form of contract, violates
the constitutional prohibition against im-
pairment of contracts.
(l) Similar constitutional arguments de-
scribed as frivolous in Rev. Rul. 2005–19,
2005–1 C.B. 819.
(10) A taxpayer is not a “person” within
the meaning of section 7701(a)(14) or
other provisions of the Internal Revenue
Code, or similar arguments described as
frivolous in Rev. Rul. 2007–22, 2007–1
C.B. 866.
(11) Only fiduciaries are taxpayers, or
only persons with a fiduciary relationship
to the United States are obligated to pay
taxes, and the United States or the Service
must prove the fiduciary status or relation-
ship.
(12) Federal Reserve Notes are not tax-
able income when paid to a taxpayer be-
cause they are not gold or silver and may
not be redeemed for gold or silver.
(13) In a transaction using gold and sil-
ver coins, the value of the coins is excluded
from income or the amount realized in the
transaction is the face value of the coins
and not their fair market value for purposes
of determining taxable income.
(14) A taxpayer who is employed on
board a ship that provides meals at no cost
to the taxpayer as part of the employment
may claim a so-called “Mariner’s Tax De-
duction” (or the like) allowing the taxpayer
to deduct from gross income the cost of the
meals as an employee business expense.
(15) A taxpayer may purport to operate
a home-based business as a basis to deduct
as business expenses the taxpayer’s per-
sonal expenses or the costs of maintaining
the taxpayer’s household when the mainte-
nance items or amounts as reported do not
correspond to abona fidehome business,
such as when they are grossly excessive in
relation to the conceivable costs for some
portion of the home being used exclusively
and regularly as a business, or similar argu-
ments described as frivolous by Rev. Rul.
2004–32, 2004–1 C.B. 621.
(16) A “reparations” tax credit exists,
including argumentsthat African-Ameri-
can taxpayers may claim a tax credit on
their Federal income tax returns as repa-
rations for slavery or other historical mis-
treatment, that Native Americans are enti-
tled to an analogous credit (or are exempt
from Federal income tax on the basis of a
treaty), or similar arguments described as
frivolous in Rev. Rul. 2004–33, 2004–1
C.B. 628, or Rev. Rul. 2006–20, 2006–1
C.B. 746.
(17) A Native American or other tax-
payer who is not an employer engaged in
a trade or business may nevertheless claim
(for example, in an amount exceeding all
reported income) the Indian Employment
Credit under section45A, which explicitly
requires, among other criteria, that the tax-
payer be an employer engaged in a trade or
business to claim the credit.
(18) A taxpayer’s wages are excluded
from Social Security taxes if the taxpayer
waives the right to receive Social Security
benefits, or a taxpayer is entitled to a re-
April 26, 20106102010–17 I.R.B.

fund of, or may claim acharitable-contri-
bution deduction for, the Social Security
taxes that the taxpayer has paid, or similar
arguments described as frivolous in Rev.
Rul. 2005–17, 2005–1 C.B. 823.
(19) Taxpayers may reduce or eliminate
their Federal tax liability by altering a tax
return, including striking out the penalty-
of-perjury declaration, or attaching docu-
ments to the return, such as a disclaimer of
liability, or similar arguments described as
frivolous in Rev. Rul. 2005–18, 2005–1
C.B. 817.
(20) A taxpayer is not obligated to pay
income tax because the government has
created an entity separate and distinct from
the taxpayer—a “straw man”—that is dis-
tinguishable from the taxpayer by some
variation of the taxpayer’s name, and any
tax obligations are exclusively those of
the “straw man,” or similar arguments de-
scribed as frivolous in Rev. Rul. 2005–21,
2005–1 C.B. 822.
(21) A taxpayer may use a Form 1099-
OID,Original Issue Discount, (or another
Form 1099 Series information return) as a
financial or other instrument to obtain or
redeem (under a theory of “redemption”
or “commercial redemption”) a monetary
payment out of the United States Treasury
or for a refund of tax, such as by draw-
ing on a “straw man” or similar financial
account maintained by the government in
the taxpayer’s name (see paragraph (20),
above); a taxpayer may file a Form 56,No-
tice Concerning Fiduciary Relationship,
that names the Secretary of the Treasury
or some other government employee as
a fiduciary of the taxpayer and requires
the Treasury Department to honor a Form
1099-OID as a financial or redemption in-
strument; or similar arguments described
as frivolous in Rev. Rul. 2005–21, 2005–1
C.B. 822, and Rev. Rul. 2004–31, 2004–1
C.B. 617.
(22) A taxpayer may claim on an in-
come tax return or purported return an
amount of withheld income tax or other
tax that is obviously false because it ex-
ceeds the taxpayer’s income as reported
on the return or is disproportionately high
in comparison with the income reported
on the return or information on supporting
documents filed with the return (such as
Form 1099 Series, Form W–2, or Form
2439,Notice to Shareholder of Undis-
tributed Long-Term Capital Gains).
(23) Inserting the phrase “nunc pro
tunc” on a return or other document filed
with or submitted to the Service has a legal
effect, such as reducing a taxpayer’s tax
liability, or similar arguments described as
frivolous in Rev. Rul. 2006–17, 2006–1
C.B. 748.
(24) A taxpayer may avoid tax on in-
come by attributing the income to a trust,
including the argument that a taxpayer can
put all of the taxpayer’s assets into a trust
to avoid income tax while still retaining
substantial powers of ownership and con-
trol over those assets or that a taxpayer
may claim an expense deduction for the in-
come attributed to a trust, or similar argu-
ments described as frivolous in Rev. Rul.
2006–19, 2006–1 C.B. 749.
(25) A taxpayer may lawfully avoid in-
come tax by sending income offshore, in-
cluding depositing income into a foreign
bank account.
(26) A taxpayer can claim the section
44 Disabled Access Credit to reduce tax
or generate a refund, for example, by pur-
portedly having purchased equipment or
services for an inflated price (which may
or may not have been actually paid), even
though it is apparent that the taxpayer did
not operate a small business that purchased
the equipment or services to comply with
the requirements of the Americans with
Disabilities Act.
(27) A taxpayer may claim a refund
of tax based on purported advance pay-
ments to employees of the Earned Income
Tax Credit as reported by the taxpayer on
a filed Form 941,Employer’s Quarterly
Federal Tax Return, or other employment
tax return that reports an amount of pur-
ported wages, tips, or other compensation
but leaves other line items on the return
blank (or with a zero as the amount)..
(28) A taxpayer may claim the section
6421 fuels tax credit (such as on Form
4136,Credit for Federal Tax Paid on
Fuels; Form 8849,Claim for Refund of
Excise Taxes; or Form 1040) even though
the taxpayer did not buy the gasoline or
the gasoline was not used for an off-high-
way business use during the period for
which the credit is claimed. Also, if the
taxpayer claims an amount of credit that
is so disproportionately excessive to any
(including zero) business income reported
on the taxpayer’s income tax return as
to be patently unallowable (e.g., a credit
that is 150 percent of business income
reported on Form 1040) or facially reflects
an impossible quantity of gasoline given
the business use, if any, as reported by the
taxpayer.
(29) A taxpayer is allowed to buy or sell
the right to claim a child as a qualifying
child for purposes of the Earned Income
Tax Credit.
(30) An IRS Form 23C,Assessment
Certificate — Summary Record of Assess-
ments, is an invalid record of assessment
for purposes of section 6203 and Treas.
Reg. § 301.6203–1, the Form 23C must
bepersonallysignedbytheSecretaryof
the Treasury for an assessment to be valid,
the Service must provide a copy of the
Form 23C to a taxpayer if requested be-
fore taking collection action, or similar
arguments described as frivolous in Rev.
Rul. 2007–21, 2007–1 C.B. 865.
(31) A tax assessment is invalid because
the assessment was made from a section
6020(b) substitute for return, which is not
a valid return.
(32) A statutory notice of deficiency is
invalid because the taxpayer to whom the
notice was sent did not file an income tax
return reporting the deficiency or because
the statutory notice of deficiency was un-
signed or not signed by the Secretary of the
Treasury or by someone with delegated au-
thority.
(33) A Notice of Federal Tax Lien is in-
valid because it is not signed by a particu-
lar official (such as by the Secretary of the
Treasury), or because it was filed by some-
one without delegated authority.
(34) The form or content of a Notice of
Federal Tax Lien is controlled by or subject
to a state or local law, and a Notice of
Federal Tax Lien that does not comply in
form or content with a state or local law is
invalid.
(35) A collection due process notice un-
der section 6320 or 6330 is invalid if it is
not signed by the Secretary of the Treasury
or other particular official, or if no certifi-
cate of assessment is attached.
(36) Verification under section 6330
that the requirements of any applicable
law or administrative procedure have been
met may only be based on one or more par-
ticular forms or documents (which must
be in a certain format), such as a summary
record of assessment, or that the particular
forms or documents or the ones on which
verification was actually determined must
2010–17 I.R.B.611April 26, 2010

be provided to a taxpayer at a collection
due process hearing.
(37) A Notice and Demand is invalid
because it was not signed, was not on the
correct form (e.g.,aForm17),orwasnot
accompanied by a certificate of assessment
when mailed.
(38) The United States Tax Court is an
illegitimate court or does not, for any pur-
ported constitutional or other reason, have
the authority to hear and decide matters
within its jurisdiction.
(39) Federal courts may not enforce the
internal revenue laws because their juris-
diction is limited to admiralty or maritime
cases or issues.
(40) Revenue Officers are not autho-
rized to issue levies or Notices of Federal
Tax Lien or to seize property in satisfac-
tion of unpaid taxes.
(41) A Service employee lacks the au-
thority to carry out the employee’s duties
because the employee does not possess a
certain type of identification or credential,
for example, a pocket commission or a
badge, or it is not in the correct form or on
the right medium.
(42) A person may represent a taxpayer
before the Service or in court proceedings
even if the person does not have a power
of attorney from the taxpayer, has not been
enrolled to practice before the Service, or
has not been admitted to practice before
the court.
(43) A civil action to collect unpaid
taxes or penalties must be personally au-
thorized by the Secretary of the Treasury
and the Attorney General.
(44) A taxpayer’s income is not taxable
if the taxpayer assigns or attributes the in-
come to a religious organization (a “corpo-
ration sole” or ministerial trust) claimed to
be tax-exempt under section 501(c)(3), or
similar arguments described as frivolous in
Rev. Rul. 2004–27, 2004–1 C.B. 625.
(45) The Service is not an agency of
the United States government but rather
a private-sector corporation or an agency
of a State or Territory without authority to
administer the internal revenue laws.
(46) Any position described as
frivolous in any revenue ruling or other
published guidance in existence when the
return adopting the position is filed with
or the specified submission adopting the
position is submitted to the Service.
Returns or submissions that contain po-
sitions not listed above, which on their face
have no basis for validity in existing law,
or which have been deemed frivolous in a
published opinion of the United States Tax
Court or other court of competent jurisdic-
tion, may be determined to reflect a desire
to delay or impede the administration of
Federal tax laws and thereby subject to the
$5,000 penalty.
The list of frivolous positions above
will be periodically revised as required by
section 6702(c).
IV.Effective Date
This notice is effective for submissions
made and issues raised after April 7, 2010.
For submissions made and issues raised
between January 14, 2008 and April 7,
2010, Notice 2008–14 applies.
V.Effect on Other Documents
Notice 2008–14 is modified and super-
seded.
VI.Drafting Information
The principal author of this notice is
Emily M. Lesniak, Office of the Associate
Chief Counsel, Procedure and Adminis-
tration. For further information, contact
Emily M. Lesniak at 202–622–4940 (not
a toll-free number).
PFIC Shareholder Reporting
Under New Section 1298(f) for
Tax Years Beginning Before
March 18, 2010
Notice 2010–34
On March 18, 2010, President Obama
signed the Hiring Incentives to Restore
Employment Act of 2010 (the Act). The
Act amends the Internal Revenue Code by
adding a new § 1298(f). Section 1298(f)
requires United States persons who are
shareholders of a passive foreign invest-
ment company (PFIC) to file an annual
report containing such information as the
Secretary may require. Section 1298(f) is
effective on the date of enactment.
The Internal Revenue Service is devel-
oping further guidance regarding the re-
porting obligations under § 1298(f). In the
meantime, persons that were required to
file Form 8621,Return by a Shareholder of
a Passive Foreign Investment Company or
a Qualified Electing Fund, prior to the en-
actment of § 1298(f) must continue to file
Form 8621 as provided in the Instructions
to such form (e.g., upon disposition of
stock of a PFIC, or with respect to a qual-
ified electing fund under § 1293). Share-
holders of a PFIC that were not otherwise
required to file Form 8621 annually prior
to March 18, 2010, will not be required to
file an annual report as a result of the ad-
dition of § 1298(f) for taxable years begin-
ning before March 18, 2010.
The principal author of this notice is
Kristine A. Crabtree of the Office of As-
sociate Chief Counsel (International). For
further information regarding this no-
tice, contact Susan E. Massey at (202)
622–3840 (not a toll-free call).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2010–36
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under §412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the corpo-
rate bond monthly yield curve (and the
corresponding spot segment rates), the
24-month average segment rates, and
the funding transitional segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i), as amended by the Pen-
sion Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to cal-
culate current liability and to determine
the required contribution under § 412(l)
April 26, 20106122010–17 I.R.B.

for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conser-
vatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
March 2010 is 5.90 percent. Pursuant
to Notice 2004–34, the Service has de-
termined this rate as the average of the
monthly yields for the included corporate
bond indices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
April20106.39
5.75
6.39
YIELD CURVE AND SEGMENT
RATES
Generally for plan years beginning
after 2007 (except for delayed effective
dates for certain plans under sections 104,
105, and 106 of PPA), § 430 of the Code
specifies the minimum funding require-
ments that apply to single employer plans
pursuant to § 412. Section 430(h)(2) spec-
ifies the interest rates that must be used
to determine a plan’s target normal cost
and funding target. Under this provision,
present value is generally determined us-
ing three 24-month average interest rates
(“segment rates”), each of which applies
to cash flows during specified periods.
However, an election may be made under
§ 430(h)(2)(D)(ii) to use the monthly yield
curve in place of the segment rates. For
plan years beginning in 2008 and 2009, a
transitional rule under § 430(h)(2)(G) pro-
vides that the segment rates are blended
with the corporate bond weighted average
as specified above. An election may be
made under § 430(h)(2)(G)(iv) to use the
segment rates without applying the transi-
tional rule.
Notice 2007–81, 2007–2 C.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, the
24-month average corporate bond segment
rates, and the funding transitional segment
rates used to compute the target normal
cost and the funding target. Pursuant to
Notice 2007–81, the monthly corporate
bond yield curve derived from March 2010
data is in Table I at the end of this notice.
The spot first, second, and third segment
rates for the month of March 2010 are,
respectively, 2.29, 5.65, and 6.58. The
three 24-month average corporate bond
segment rates applicable for April 2010
under the election of § 430(h)(2)(G)(iv)
are as follows:
First
Segment
Second
Segment
Third
Segment
4.356.59
6.72
The transitional segment rates under
§ 430(h)(2)(G) applicable for April 2010,
taking into account the corporate bond
weighted average of 6.39 stated above, are
as follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
2009
5.036.52
6.61
The transitional rule of § 430(h)(2)(G)
does not apply to plan years starting in
2010. Therefore, for a plan year starting
in 2010 with a lookback month to April
2010, the funding segment rates are the
three 24-month average corporate bond
segment rates applicable for April 2010,
listed above without blending for the tran-
sitional period.
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
2010–17 I.R.B.613April 26, 2010

Tax Regulations provides that the applica-
ble interest rate for a month is the annual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Treasury
securities for March 2010 is 4.65 percent.
The Service has determined this rate as the
monthly average of the daily determina-
tion of yield on the 30-year Treasury bond
maturing in February 2040.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B)specifies a minimum
amount for the full-funding limitation
described in section 431(c)(6)(A), based
on the plan’s current liability. Section
431(c)(6)(E)(ii)(I) provides that the inter-
est rate used to calculate current liability
for this purpose must be no more than 5
percent above and no more than 10 percent
below the weighted average of the rates of
interest on 30-year Treasury securities dur-
ing the four-year period ending on the last
day before the beginning of the plan year.
Notice 88–73, 1988–2 C.B. 383, provides
guidelines for determining the weighted
average interest rate. The following rates
were determined for plan years beginning
in the month shown below.
For Plan Year
s
Beginning inPermissible
Range
MonthYear
30-Year
Treasury
Weighted
Average
90%to
105%
April20104.403.964.62
MINIMUM PRESENT VALUE
SEGMENT RATES
Generally for plan years beginning af-
ter December 31, 2007, the applicable in-
terest rates under § 417(e)(3)(D) are seg-
ment rates computed without regard to a
24-month average. For plan years begin-
ning in 2008 through 2011, the applica-
ble interest rates are the monthly spot seg-
ment rates blended with the applicable rate
under § 417(e)(3)(A)(ii)(II) as in effect
for plan years beginning in 2007. Notice
2007–81 provides guidelines for determin-
ing the minimum present value segment
rates. Pursuant to that notice, the min-
imum present value transitional segment
rates determined for March 2010, taking
into account the March 2010 30-year Trea-
sury rate of 4.65 stated above, are as fol-
lows:
For Plan Ye
ars
Beginning
in
First
Segment
Second
Segment
Third
Segment
20093.71
5.055.42
20103.23
5.255.81
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities Di-
vision. Mr. Montanaro may be e-mailed at
RetirementPlanQuestions@irs.gov.
April 26, 20106142010–17 I.R.B.

Table I
Monthly Yield Curve for March 2010
Derived from March 2010 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.5
0.76
20.5
6.32
40.5
6.61
60.5
6.71
80.5
6.76
1.01.0721.06.3441.06.6261.06.7181.06.77
1.5
1.40
21.56.3541.5
6.62
61.5
6.72
81.5
6.77
2.0
1.75
22.06.3642.06.6262.06.7282.06.77
2.5
2.11
22.5
6.37
42.5
6.63
62.5
6.72
82.5
6.77
3.02.4823.06.3843.06.6363.06.7283.06.77
3.5
2.84
23.5
6.39
43.5
6.63
63.5
6.72
83.5
6.77
4.03.1824.06.4044.06.6464.06.7284.06.77
4.53.5024.5
6.41
44.5
6.64
64.5
6.73
84.5
6.77
5.0
3.79
25.0
6.42
45.0
6.64
65.0
6.73
85.0
6.77
5.54.0525.5
6.43
45.56.6565.5
6.73
85.5
6.77
6.04.2826.06.4446.0
6.65
66.06.7386.06.77
6.5
4.49
26.56.4546.56.6566.5
6.73
86.5
6.78
7.04.6827.06.4647.06.6567.06.7387.06.78
7.54.8527.5
6.47
47.5
6.66
67.5
6.73
87.5
6.78
8.0
5.01
28.06.4748.06.6668.06.7488.06.78
8.55.1428.5
6.48
48.5
6.66
68.5
6.74
88.5
6.78
9.0
5.27
29.06.4949.0
6.66
69.0
6.74
89.0
6.78
9.5
5.38
29.5
6.50
49.56.6769.56.7489.56.78
10.05.4830.06.5050.06.6770.06.74
90.0
6.78
10.55.5830.56.5150.5
6.67
70.5
6.7490.56.78
11.0
5.66
31.0
6.5251.0
6.6771.06.74
91.0
6.78
11.55.7431.56.5251.5
6.68
71.5
6.7491.56.78
12.0
5.80
32.0
6.5352.0
6.6872.0
6.75
92.0
6.78
12.55.8632.56.5452.5
6.68
72.56.75
92.56.78
13.05.9233.06.5453.06.6873.06.75
93.06.79
13.5
5.97
33.56.5553.5
6.69
73.56.75
93.56.79
14.06.0134.0
6.5554.0
6.69
74.0
6.75
94.06.79
14.56.0534.56.5654.5
6.69
74.56.75
94.5
6.79
15.0
6.09
35.06.5655.0
6.69
75.06.75
95.0
6.79
15.5
6.12
35.56.5755.5
6.69
75.56.75
95.5
6.79
16.06.1536.06.5756.06.7076.06.76
96.06.79
16.5
6.18
36.56.5856.5
6.70
76.5
6.7696.56.79
17.06.2037.0
6.5857.0
6.7077.06.76
97.06.79
17.5
6.22
37.5
6.59
57.5
6.70
77.5
6.7697.5
6.79
18.06.2438.06.59
58.0
6.7078.06.76
98.06.79
18.5
6.26
38.5
6.60
58.5
6.71
78.5
6.7698.5
6.79
19.0
6.28
39.0
6.6059.06.71
79.0
6.76
99.06.79
19.56.2939.56.6059.56.7179.56.7699.56.79
20.06.3140.06.6160.06.7180.06.76100.0
6.79
2010–17 I.R.B.615April 26, 2010

Part IV. Items o
fGeneralInterest
Deletions Fro
m Cumulative
List of Organi
zations
Contribution
stoWhich
are Deductib
le Under Section
170 of the Cod
e
Announcemen
t 2010–28
The Internal
Revenue Service has re-
voked its det
ermination that the organi-
zations list
ed below qualify as organiza-
tions descri
bed in sections 501(c)(3) and
170(c)(2) o
f the Internal Revenue Code of
1986.
Generally,
the Service will not disallow
deductions
for contributions made to a
listed orga
nization on or before the date
of announce
ment in the Internal Revenue
Bulletin t
hat an organization no longer
qualifies
. However, the Service is not
precluded
from disallowing a deduction
for any con
tributions made after an or-
ganizati
on ceases to qualify under section
170(c)(2
) if the organization has not timely
filed a su
it for declaratory judgment under
section 7
428 and if the contributor (1) had
knowledge of t
he revocation of the ruling
or determinat
ion letter, (2) was aware that
such revocati
on was imminent, or (3) was
in part respon
sible for or was aware of the
activities or
omissions of the organization
that brought
about this revocation.
If on the other
hand a suit for declara-
tory judgmen
t has been timely filed, con-
tributions f
rom individuals and organiza-
tions descri
bedinsection170(c)(2)that
are otherwis
e allowable will continue to
be deductib
le. Protection under section
7428(c) wou
ld begin on April 26, 2010 and
would end on
the date the court first deter-
mines that t
he organization is not described
in section
170(c)(2) as more particularly
set forth i
n section 7428(c)(1). For indi-
vidual con
tributors, the maximum deduc-
tion prote
cted is $1,000, with a husband
and wife tr
eated as one contributor. This
benefit i
s not extended to any individual, in
whole or i
n part, for the acts or omissions
of the org
anization that were the basis for
revocati
on.
Housing A
ction Resource Trust
Rancho C
ucamonga, CA
Andrew S. Brad
dock Foundation
Waukesha, WI
Correction to
Foundations
Status of Cert
ain
Organizatio
ns
Announcemen
t 2010–29
This documen
t contains a correction to
Announcemen
t 2009–23, 2010–16 I.R.B.
602, regardi
ng Foundations Status of Cer-
tain Organi
zations.
Accordingl
y, the publication of this an-
nouncement
is corrected as follows:
The announc
ement number shown on
page 602 of I
.R.B. 2010–16 as Announce-
ment 2009–2
3 should read Announcement
2010–23.
April 26, 20106162010–17 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2010–17 I.R.B.iApril 26, 2010

Numerical Finding List
1
Bulletins 2010–1 through 2010–17
Announcements:
2010-1, 2010-4 I.R.B.333
2010-2, 2010-2 I.R.B.271
2010-3, 2010-4 I.R.B.333
2010-4, 2010-5 I.R.B.384
2010-5, 2010-6 I.R.B.402
2010-6, 2010-6 I.R.B.402
2010-7, 2010-6 I.R.B.403
2010-8, 2010-7 I.R.B.408
2010-9, 2010-7 I.R.B.408
2010-10, 2010-7 I.R.B.410
2010-11, 2010-10 I.R.B.438
2010-12, 2010-7 I.R.B.410
2010-13, 2010-8 I.R.B.426
2010-14, 2010-11 I.R.B.449
2010-15, 2010-10 I.R.B.438
2010-16, 2010-11 I.R.B.450
2010-17, 2010-13 I.R.B.515
2010-18, 2010-12 I.R.B.460
2010-19, 2010-14 I.R.B.529
2010-20, 2010-15 I.R.B.551
2010-21, 2010-15 I.R.B.551
2010-22, 2010-16 I.R.B.602
2010-23, 2010-16 I.R.B.602
2010-24, 2010-15 I.R.B.587
2010-25, 2010-15 I.R.B.588
2010-26, 2010-16 I.R.B.604
2010-28, 2010-17 I.R.B.616
2010-29, 2010-17 I.R.B.616
Notices:
2010-1, 2010-2 I.R.B.251
2010-2, 2010-2 I.R.B.251
2010-3, 2010-2 I.R.B.253
2010-4, 2010-2 I.R.B.253
2010-5, 2010-2 I.R.B.256
2010-6, 2010-3 I.R.B.275
2010-7, 2010-3 I.R.B.296
2010-8, 2010-3 I.R.B.297
2010-9, 2010-3 I.R.B.298
2010-10, 2010-3 I.R.B.299
2010-11, 2010-4 I.R.B.326
2010-12, 2010-4 I.R.B.326
2010-13, 2010-4 I.R.B.327
2010-14, 2010-5 I.R.B.344
2010-15, 2010-6 I.R.B.390
2010-16, 2010-6 I.R.B.396
2010-17, 2010-14 I.R.B.519
2010-18, 2010-14 I.R.B.525
2010-19, 2010-7 I.R.B.404
2010-20, 2010-8 I.R.B.422
2010-21, 2010-12 I.R.B.451
Notices— Continued:
2010-22, 2010-10 I.R.B.435
2010-23, 2010-11 I.R.B.441
2010-24, 2010-12 I.R.B.452
2010-25, 2010-14 I.R.B.527
2010-26, 2010-14 I.R.B.527
2010-27, 2010-15 I.R.B.531
2010-28, 2010-15 I.R.B.541
2010-29, 2010-15 I.R.B.547
2010-31, 2010-16 I.R.B.594
2010-32, 2010-16 I.R.B.594
2010-33, 2010-17 I.R.B.609
2010-34, 2010-17 I.R.B.612
2010-36, 2010-17 I.R.B.612
Proposed Regulations:
REG-132232-08, 2010-6 I.R.B.401
REG-134235-08, 2010-16 I.R.B.596
REG-137036-08, 2010-6 I.R.B.398
REG-101896-09, 2010-5 I.R.B.347
REG-117501-09, 2010-11 I.R.B.442
REG-131028-09, 2010-4 I.R.B.332
REG-148681-09, 2010-11 I.R.B.443
Revenue Procedures:
2010-1, 2010-1 I.R.B.1
2010-2, 2010-1 I.R.B.90
2010-3, 2010-1 I.R.B.110
2010-4, 2010-1 I.R.B.122
2010-5, 2010-1 I.R.B.165
2010-6, 2010-1 I.R.B.193
2010-7, 2010-1 I.R.B.231
2010-8, 2010-1 I.R.B.234
2010-9, 2010-2 I.R.B.258
2010-10, 2010-3 I.R.B.300
2010-11, 2010-2 I.R.B.269
2010-12, 2010-3 I.R.B.302
2010-13, 2010-4 I.R.B.329
2010-14, 2010-12 I.R.B.456
2010-15, 2010-7 I.R.B.404
2010-17, 2010-8 I.R.B.425
2010-18, 2010-9 I.R.B.427
2010-19, 2010-13 I.R.B.469
2010-20, 2010-14 I.R.B.528
2010-21, 2010-13 I.R.B.473
Revenue Rulings:
2010-1, 2010-2 I.R.B.248
2010-2, 2010-3 I.R.B.272
2010-3, 2010-3 I.R.B.272
2010-4, 2010-4 I.R.B.309
2010-5, 2010-4 I.R.B.312
2010-6, 2010-6 I.R.B.387
2010-7, 2010-8 I.R.B.417
2010-8, 2010-10 I.R.B.432
2010-9, 2010-13 I.R.B.461
Revenue Rulings— Continued:
2010-10, 2010-13 I.R.B.461
2010-11, 2010-14 I.R.B.516
Tax Conventions:
2010-2, 2010-2 I.R.B.271
2010-26, 2010-16 I.R.B.604
Treasury Decisions:
9474, 2010-4 I.R.B.322
9475, 2010-4 I.R.B.304
9476, 2010-5 I.R.B.336
9477, 2010-6 I.R.B.385
9478, 2010-4 I.R.B.315
9480, 2010-11 I.R.B.439
9481, 2010-17 I.R.B.605
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin
2009–52, dated December 28, 2009.
April 26, 2010ii2010–17 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2010–1 through 2010–17
Announcements:
2009-23
Corrected by
Ann. 2010-29, 2010-17 I.R.B.616
2009-51
Supplemented and superseded by
Ann. 2010-16, 2010-11 I.R.B.450
2010-4
Corrected by
Ann. 2010-10, 2010-7 I.R.B.410
Notices:
2005-88
Superseded by
Notice 2010-13, 2010-4 I.R.B.327
2006-87
Superseded by
Notice 2010-27, 2010-15 I.R.B.531
2007-25
Superseded by
Notice 2010-27, 2010-15 I.R.B.531
2007-77
Superseded by
Notice 2010-27, 2010-15 I.R.B.531
2008-14
Modified and superseded by
Notice 2010-33, 2010-17 I.R.B.609
2008-41
Modified by
Notice 2010-7, 2010-3 I.R.B.296
2008-55
Modified by
Notice 2010-3, 2010-2 I.R.B.253
2008-88
Modified by
Notice 2010-7, 2010-3 I.R.B.296
2008-107
Superseded by
Notice 2010-27, 2010-15 I.R.B.531
2008-113
Modified by
Notice 2010-6, 2010-3 I.R.B.275
2008-115
Modified by
Notice 2010-6, 2010-3 I.R.B.275
Notices— Continued:
2008-116
Modified and superseded by
Notice 2010-32, 2010-16 I.R.B.594
2009-11
Amplified by
Notice 2010-9, 2010-3 I.R.B.298
2009-13
Obsoleted by
T.D. 9478, 2010-4 I.R.B.315
REG-131028-09, 2010-4 I.R.B.332
2009-35
Supplemented by
Notice 2010-17, 2010-14 I.R.B.519
2009-38
Amplified and superseded by
Notice 2010-2, 2010-2 I.R.B.251
2009-62
Modified and supplemented by
Notice 2010-23, 2010-11 I.R.B.441
Proposed Regulations:
REG-127270-06
Hearing scheduled by
Ann. 2010-6, 2010-6 I.R.B.402
Revenue Procedures:
80-59
Modified and superseded by
Rev. Proc. 2010-11, 2010-2 I.R.B.269
87-35
Obsoleted by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2008-14
Updated by
Rev. Proc. 2010-15, 2010-7 I.R.B.404
2009-1
Superseded by
Rev. Proc. 2010-1, 2010-1 I.R.B.1
2009-2
Superseded by
Rev. Proc. 2010-2, 2010-1 I.R.B.90
2009-3
Superseded by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2009-4
Superseded by
Rev. Proc. 2010-4, 2010-1 I.R.B.122
2009-5
Superseded by
Rev. Proc. 2010-5, 2010-1 I.R.B.165
Revenue Procedures— Continued:
2009-6
Superseded by
Rev. Proc. 2010-6, 2010-1 I.R.B.193
2009-7
Superseded by
Rev. Proc. 2010-7, 2010-1 I.R.B.231
2009-8
Superseded by
Rev. Proc. 2010-8, 2010-1 I.R.B.234
2009-9
Superseded by
Rev. Proc. 2010-9, 2010-2 I.R.B.258
2009-15
Amplified and superseded by
Rev. Proc. 2010-12, 2010-3 I.R.B.302
2009-17
Superseded by
Rev. Proc. 2010-21, 2010-13 I.R.B.473
2009-25
Superseded by
Rev. Proc. 2010-3, 2010-1 I.R.B.110
2009-55
Corrected by
Ann. 2010-11, 2010-10 I.R.B.438
2010-1
Corrected by
Ann. 2010-5, 2010-6 I.R.B.402
Revenue Rulings:
67-436
Obsoleted by
REG-101896-09, 2010-5 I.R.B.347
92-19
Supplemented in part by
Rev. Rul. 2010-7, 2010-8 I.R.B.417
2008-52
Supplemented and superseded by
Rev. Rul. 2010-2, 2010-3 I.R.B.272
Treasury Decisions:
9424
Corrected by
Ann. 2010-18, 2010-12 I.R.B.460
9443
Corrected by
Ann. 2010-8, 2010-7 I.R.B.408
9458
Corrected by
Ann. 2010-7, 2010-6 I.R.B.403
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2009–27 through 2009–52 is in Internal Revenue Bulletin 2009–52, dated December 28,
2009.
2010–17 I.R.B.iiiApril 26, 2010

INDEX
Internal Revenue Bulletins 2010–1 through
2010–17
The abbreviation and number in parenthesis following the index entry
refer to the specific item; numbers in roman and italic type following
the parenthesis refers to the Internal Revenue Bulletin in which the item
may be found and the page number on which it appears.
Key to Abbreviations:
AnnAnnouncement
CDCourt Decision
DODelegation Order
EOExecutive Order
PLPublic Law
PTEProhibited Transaction Exemption
RPRevenue Procedure
RRRevenue Ruling
SPRStatement of Procedural Rules
TCTax Convention
TDTreasury Decision
TDOTreasury Department Order
EMPLOYEE PLANS
Correction of certain failures of nonqualified deferred compen-
sation plans to comply with the plan document requirements
of section 409A (Notice 6) 3,275
Defined benefit plans, determination letters (Ann 20) 15,551
Determination letters, issuing procedures (RP 6) 1,193
FBAR administrative relief forsignature authority and certain
commingled funds (Notice 23) 11,441
FBAR filing requirements (Ann 16) 11,450
Full funding limitations, weighted average interest rates, seg-
ment rates for:
January 2010 (Notice 14) 5,344
February 2010 (Notice 20) 8,422
March 2010 (Notice 24) 12,452
April 2010 (Notice 36) 17,612
Letter rulings:
And determination letters, areas which will not be issued
from:
Associates Chief Counsel and Division Counsel (TE/GE)
(RP 3) 1,110
Associate Chief Counsel (International) (RP 7) 1,231
And general information letters, procedures (RP 4) 1,122
User fees, request for letter rulings (RP 8) 1,234
Technical advice to IRS employees (RP 5) 1,165
Qualified plans:
Changes in funding method (Ann 3) 4,384
Military services, HEART Act (Notice 15) 6,390
EMPLOYMENT TAX
Designation of section 3504 agent for FUTA tax purposes
(REG–137036–08) 6,398
EMPLOYMENT TAX—Cont.
Frivolous tax return positions (Notice 33) 17,609
Furnishing identifying number of tax return preparer
(REG–134235–08) 16,596
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Proposed regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–134235–08) 16,596
26 CFR 31.3504, revised; section 3504 agent employment tax
liability (REG–137036–08) 6,398
Technical Advice Memoranda (TAMs) (RP 2) 1,90
ESTATE TAX
FBAR administrative relief for signature authority and certain
commingled funds (Notice 23) 11,441
FBAR filing requirements (Ann 16) 11,450
Frivolous tax return positions (Notice 33) 17,609
Furnishing identifying number of tax return preparer
(REG–134235–08) 16,596
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Proposed regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–134235–08) 16,596
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXCISE TAX
FBAR administrative relief for signature authority and certain
commingled funds (Notice 23) 11,441
Frivolous tax return positions (Notice 33) 17,609
Furnishing identifying number of tax return preparer
(REG–134235–08) 16,596
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Proposed regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–134235–08) 16,596
Technical Advice Memoranda (TAMs) (RP 2) 1,90
EXEMPT ORGANIZATIONS
FBAR administrative relief for signature authority and certain
commingled funds (Notice 23) 11,441
FBAR filing requirements (Ann 16) 11,450
Frivolous tax return positions (Notice 33) 17,609
Letters rulings:
And determination letters:
Areas which will not be issued from Associates Chief
Counsel and Division Counsel (TE/GE) (RP 3) 1,110
April 26, 2010iv2010–17 I.R.B.

EXEMPT ORGANIZATIONS—Cont.
Exemption application determination letter rulings under sec-
tions 501 and 521 (RP 9) 2,258
And general information letters, procedures (RP 4) 1,122
User fees, request for letter rulings (RP 8) 1,234
List of organizations classifiedas private foundations (Ann 23)
16,602; correction to Ann 23 (Ann 29) 17,616
Procedures for charitable trusts to obtain Type III supporting or-
ganization classification rulings and refunds of section 4940
taxes for 2008 (Ann 19) 14,529
Revocations (Ann 1) 4,333;(Ann4)5,384;correction(Ann10)
7,410;(Ann13)8,426; (Ann 15) 10,438; (Ann 24) 15,587;
(Ann 28) 17,616
Technical advice to IRS employees (RP 5) 1,165
GIFT TAX
FBAR administrative relief forsignature authority and certain
commingled funds (Notice 23) 11,441
FBAR filing requirements (Ann 16) 11,450
Frivolous tax return positions (Notice 33) 17,609
Furnishing identifying number of tax return preparer
(REG–134235–08) 16,596
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Proposed regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–134235–08) 16,596
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Treatment of transfers made in trust during 2010 (Notice 19) 7,
404
INCOME TAX
Advance Pricing Agreement (APA) program, 2009 (Ann 21) 15,
551
Apportionment of tax items among the members of a controlled
group of corporations (TD 9476) 5,336
Arbitrage treatment of certain perpetual funds (Notice 5) 2,256
Basis reporting by securities brokers and basis determination for
stock (REG–101896–09) 5,347
Bonds:
Allocation of qualified school construction bonds (QSCBs),
national limitation for 2010 (Notice 17) 14,519
Midwestern Disaster Area Bonds, Hurricane Ike Bonds, Gulf
Opportunity Zone Bonds (Notice 10) 3,299
Qualified zone academy bond limitation for year 2010 (Notice
22) 10,435
Reissuance of tax-exempt bonds (Notice 7) 3,296
Consumer Price Index (CPI) adjustments, certain loans under
section 1274A for 2010 (RR 2) 3,272
Corporations:
Nonshareholder contribution to capital, Smart Grid Invest-
ment Grant (RP 20) 14,528
INCOME TAX—Cont.
Reorganizations, distributionunder sections 368(a)(1)(D) and
354(b)(1)(B) (TD 9475) 4,304
Credits:
Low-income housing tax credit:
2010 population figures usedfor calculation (Notice 21)
12,451
American Recovery and Reinvestment Tax Act of 2009
clarifications (Notice 18) 14,525
Nonconventional source fuel credit, inflation adjustment fac-
tor and phase-out amount for CY 2009 (Notice 31) 16,594
Stripping transactions for qualified tax credit bonds (Notice
28) 15,541
Damages received on account of personal physical injuries or
physical sickness, hearing on REG–127270–06 (Ann 6) 6,402
Deemed dispositions by individuals emigrating from Canada (RP
19) 13,469
Depreciation, 2010 limitations on depreciation deductions for
passenger automobiles (RP 18) 9,427
Disciplinary actionsinvolving attorneys,certified public accoun-
tants, enrolled agents, and enrolled actuaries (Ann 12) 7,410;
(Ann 25) 15,588
Disclosure of activity grouping under Code section 469 (RP 13)
4,329
Disclosure or use of information by return preparers:
Amendments to section 7216 regulations (TD 9478) 4,315;
(REG–131028–09) 4,332
In communicating with taxpayers (RR 4) 4,309
In connection with professional liability insurance (RR 5) 4,
312
Electronic filing, waiver request procedures (Notice 13) 4,327
Employer-provided vehicles,cents-per-mile rule, maximum
2010 values for vehicle (RP 10) 3,300
Expenses, housing cost amounts eligible for exclusion or deduc-
tion, 2010 (Notice 27) 15,531
Extension of interim guidance on section 67 limitation on estates
or trusts (Notice 32) 16,594
Extension of timeframe for disclosures to persons designated in a
written request or consent pursuant to section 6103(c) (Notice
8) 3,297
Extension of time to submit comments on Announcement 2010-9
regarding reporting uncertain tax positions, draft schedule, and
implementation date (Ann 17) 13,515
FATCA, implementation and request for comments (Ann 22) 16,
602
FBAR administrative relief for signature authority and certain
commingled funds (Notice 23) 11,441
FBAR filing requirements (Ann 16) 11,450
Foreign earned income exclusion (RP 17) 8,425
Frivolous tax return positions (Notice 33) 17,609
Furnishing identifying number of tax return preparer
(REG–134235–08) 16,596
Information reporting, deadline to furnish payee statements (No-
tice 9) 3,298
Insurance companies:
Interest rate tables (RR 7) 8,417
2010–17 I.R.B.vApril 26, 2010

INCOME TAX—Cont.
Life insurance reserves, actuarial guideline XLIII, AG 43,
CARVM (Notice 29) 15,547
Loss payment patterns and discount factors for the 2009 acci-
dent year, correction to RP 2009–55 (Ann 11) 10,438
Interest:
Certain applicable high yield discount obligations issued in
2010 (Notice 11) 4,326
Investment:
Federal short-term, mid-term, and long-term rates for:
January 2010 (RR 1) 2,248
February 2010 (RR 6) 6,387
March 2010 (RR 8) 10,432
April 2010 (RR 11) 14,516
Rates:
Underpayments and overpayments, quarter beginning:
April 1, 2010 (RR 9) 13,461
Investment in U.S. property, extension of regulations (Notice 12)
4,326
Letter rulings:
And determination letters, areas which will not be issued
from:
Associate Chief Counsel andDivision Counsel (TE/GE)
(RP 3) 1,110
Associates Chief Counsel(International) (RP 7) 1,231
And information letters issued by Associate Offices, determi-
nation letters issued by Operating Divisions (RP 1) 1,1;
correction (Ann 5) 6,402
Like-kind exchanges (RP 14) 12,456
Modification to consolidated return regulation (TD 9458) per-
mitting an election to treat a liquidation of a target, followed
by a recontribution to a new target, as a cross-chain reorgani-
zation(Ann7)6,403
Penalties, substantial understatement, preparer penalty (RP 15)
7,404
Personal exemption, additional for Hurricane Katrina displaced
individual (TD 9474) 4,322
PFIC shareholder reporting under new section 1298(f) for tax
years beginning before March 18, 2010 (Notice 34) 17,612
Postponement of certain tax-related deadlines by reason of a fed-
erally declared disaster or terroristic or military action, correc-
tion to TD 9443 (Ann 8) 7,408
Private foundations, organizations now classified as (Ann 23) 16,
602; correction to Ann 23 (Ann 29) 17,616
Proposed Regulations:
26 CFR 1.304–4 revised; use of controlled corporations to
avoid the application of section 304 (REG–132232–08) 6,
401
26 CFR 1.408–7, amended; 1.1012–1, amended; 1.6039–2,
amended; 1.6042–4, amended; 1.6044–5, amended;
1.6045–1 thru –5, amended; 1.6045A–1, added;
1.6045B–1, added; 1.6049–6, amended; 31.3406(b)(3)–2,
amended; 31.6051–4, amended; 301.6721–1, amended;
301.6722–1, amended; basis reporting by securities bro-
kers and basis determination for stock (REG–101896–09)
5,347
INCOME TAX—Cont.
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–134235–08) 16,596
26 CFR 1.6654–2, amended; reduced 2009 estimated income
tax payments for individuals with small business income
(REG–117501–09) 11,442
26 CFR 301.7216–2, amended; amendments to section 7216
regulations-disclosure or use of information by preparers of
returns (REG–131028–09) 4,332
Publications:
1167, General Rules and Specifications for Substitute Forms
and Schedules (RP 21) 13,473
Qualified disasters:
Chile earthquake occurring in February 2010 (Notice 26) 14,
527
Haiti earthquake occurring in January 2010 (Notice 16) 6,396
Reduced 2009 estimated income tax payments for indi-
viduals with small business income (TD 9480) 11,439;
(REG–117501–09) 11,442
Regulations:
26 CFR 1.162–24, added; 301.9100–4T; amended; 602.101,
amended; travel expenses of state legislators (TD 9481) 17,
605
26 CFR 1.304–4, added; 1.304–4T, revised; use of controlled
corporations to avoid the application of section 304 (TD
9477) 6,385
26 CFR 1.358–2, amended; 1.368–2, amended; 1.368–2T,
removed; 1.1502–13, amended; corporate reorganizations,
distribution under sections 368(a)(1)(D) and 354(b)(1)(B)
(TD 9475) 4,304
26 CFR 1.924(a), amended; 1.1502–43, amended;
1.1502–43T, removed; 1.1502–47, amended; 1.1502–47T,
removed; 1.561–0 thru –3, added;1.1561–0T thru –3T,
removed; apportionment of tax items among the members
of a controlled groups of corporation (TD 9476) 5,336
26 CFR 1.1502–13T, amended; modification to consolidated
return regulation permitting an election to treat a liquidation
of a target, followed by a recontribution to a new target, as
a cross-chain reorganization; correction to TD 9458 (Ann
7) 6,403
26 CFR 1.6654–2, amended; 1.6654–2T, added; reduced 2009
estimated income tax payments for individuals with small
business income (TD 9480) 11,439
26 CFR 1.9300–1, added; 1.9300–1T, removed; reduction in
taxable income for housing Hurricane Katrina displaced in-
dividuals (TD 9474) 4,322
26 CFR 301.7216–0, –2, amended; 301.7216–0T, –2T, added;
amendments to section 7216 regulations-disclosure or use
of information by preparers of returns (TD 9478) 4,315
Requirements, trustee of a blind trust (RP 11) 2,269
Revocations, exempt organizations (Ann 1) 4,333;(Ann4)5,
384; correction (Ann 10) 7,410; (Ann 13) 8,426; (Ann 15)
10,438; (Ann 24) 15,587; (Ann 28) 17,616
Section 305 distributions of stock (RP 12) 3,302
Section 338 election, qualified foreign contract (Notice 1) 2,251
Section 368 reorganizations, continuity of interest (Notice 25)
14,527
April 26, 2010vi2010–17 I.R.B.

INCOME TAX—Cont.
Section 382 limitation, ownership changes, pre-change losses
(Notice 2) 2,251
Section 385, auction rate preferred stock (Notice 3) 2,253
Section 1256(g)(7)(C) qualified board or exchange (RR 3) 3,272
Standard Industry Fare Level (SIFL) formula (RR 10) 13,461
State legislators, section 162(h) election to deduct deemed living
expenses (TD 9481) 17,605
Substitute forms and schedules, general rules and specifications
(RP 21) 13,473
Technical Advice Memoranda (TAMs) (RP 2) 1,90
Tax conventions:
U.S.-Canada Tax Convention,Article XIII(7) election (RP
19) 13,469
U.S.-Germany agreement with respect to consular employees
(Ann 2) 2,271
U.S.-Netherlands agreement with respect to the elimination of
the Dutch “qualification”certification (Ann 26) 16,604
Transfers of stock or securities to foreign corporations under sec-
tion 304 (TD 9477) 6,385; (REG–132232–08) 6,401
Uncertain tax positions, policy of restraint (Ann 9) 7,408
Unified rule for loss on subsidiary stock (Ann 18) 12,460
Widely held fixed investment trusts (WHIFT) transition guid-
ance (Notice 4) 2,253
SELF-EMPLOYMENT TAX
Frivolous tax return positions (Notice 33) 17,609
Furnishing identifying number of tax return preparer
(REG–134235–08) 16,596
Letter rulings and information letters issued by Associate Of-
fices, determination letters issued by Operating Divisions (RP
1) 1,1;correction(Ann5)6,402
Proposed regulations:
26 CFR 1.6109–2, amended; furnishing identifying number
of tax return preparer (REG–134235–08) 16,596
Technical Advice Memoranda (TAMs) (RP 2) 1,90
2010–17 I.R.B.viiApril 26, 2010

April 26, 20102010–17 I.R.B.

2010–17 I.R.B.April 26, 2010

April 26, 20102010–17 I.R.B.

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