Internal Revenue Bulletin 2011-31 (PDF rendition): IRS Notices

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Bulletin No. 201
1-31
August 1, 2011
HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
INCOME TAX
T.D. 9530, page 77.
Final regulations under section 956 of the Code contain guid-
ance regarding the determination of basis in certain U.S. prop-
erty acquired by a controlled foreign corporation in certain non-
recognition transactions. The Service and the Treasury Depart-
ment became aware that certain taxpayers were engaging in
certain nonrecognition transactions that were intended to repa-
triate earnings and profits of a controlled foreign corporation
without U.S. income taxation. These regulations finalize guid-
ance intended to end such abuses.
Notice 2011–57, page 84.
2011 section 43 inflation adjustment factor.This no-
tice announces the inflation adjustment factor and phase-out
amount for the enhanced oil recovery credit for taxable years
beginning in the 2011 calendar year. The notice concludes
that, because the reference price for the 2010 calendar year
($74.71) exceeds $28 multiplied by the inflation adjustment
factor for the 2010 calendar year ($42.91) by $31.80, the en-
hanced oil recovery credit for qualified costs paid or incurred
in 2011 is phased out completely. The notice also contains the
previously published figures for taxable years beginning in the
1991 through 2010 calendar years.
Notice 2011–58, page 85.
2011 marginal production rates.This notice announces
that under section 613A(c)(6)(C) of the Code, the applicable
percentage for purposes of determining percentage depletion
on marginal properties for calendar year 2011 is 15 percent.
Notice 2011–60, page 90.
This notice provides for the suspension of certain requirements
under section 42 of the Code for low-income housing credit
projects in North Dakota in order to provide emergency housing
relief needed as a result of the devastation caused by flooding
in North Dakota beginning on February 14, 2011.
EMPLOYEE PLANS
Notice 2011–59, page 86.
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 July 2011;
the 24-month average segment rates; the funding transitional
segment rates applicable for July 2011; and the minimum
present value transitional rates for June 2011.
ADMINISTRATIVE
T.D. 9531, page 79.
Final regulations under section 6081 of the Code relate to the
automaticextensionsoftimetofileincometaxreturnsforpart-
nership, trust, and estate taxpayers, and automatic extensions
of time for filing returns for pension excise taxes.
Notice 2011–61, page 91.
This notice invites public comments regarding the process for
individuals and entities to be approved by the Internal Revenue
Service as continuing education providers. Comments are re-
quested by August 17, 2011.
Finding Lists begin on page ii.

The IRS Mission
Provide Americ
a’s taxpayers top-quality service by helping
them understa
nd and meet their tax responsibilities and en-
force the law wi
th integrity and fairness to all.
Introduction
The Internal Revenue Bulletin is the authoritative instrument of
the Commissioner of Internal Revenue for announcing official
rulings and procedures of the Internal Revenue Service and for
publishing Treasury Decisions, Executive Orders, Tax Conven-
tions, legislation, court decisions, and other items of general
interest. It is published weekly and may be obtained from the
Superintendent of Documents on a subscription basis. Bulletin
contents are compiled semiannually into Cumulative Bulletins,
which are sold on a single-copy basis.
It is the policy of the Service to publish in the Bulletin all sub-
stantive rulings necessary to promote a uniform application of
the tax laws, including all rulings that supersede, revoke, mod-
ify, or amend any of those previously published in the Bulletin.
All published rulings apply retroactively unless otherwise indi-
cated. Procedures relating solely to matters of internal man-
agement are not published; however, statements of internal
practices and procedures that affect the rights and duties of
taxpayers are published.
Revenue rulings represent the conclusions of the Service on the
application of the law to the pivotal facts stated in the revenue
ruling. In those based on positions taken in rulings to taxpayers
or technical advice to Service field offices, identifying details
and information of a confidential nature are deleted to prevent
unwarranted invasions of privacy and to comply with statutory
requirements.
Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned
against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.
The Bulletin is divided into four parts as follows:
Part I.—19
86 Code.
This part i
ncludes rulings and decisions based on provisions of
the Intern
al Revenue Code of 1986.
Part II.—Treaties and Tax Legislation.
This part is divided into two subparts as follows: Subpart A,
Tax Conventions and Other Related Items, and Subpart B, Leg-
islation and Related Committee Reports.
Part III.—Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury’s Office of the Assistant Secre-
tary (Enforcement).
Part IV
.—Items of General Interest.
This par
t includes notices of proposed rulemakings, disbar-
ment an
d suspension lists, and announcements.
The last Bulletin for each month includes a cumulative index
for the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.
The c
ontents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.
For sale by the Superintendent of Documents, U.S.Government Printing Office, Washington, DC 20402.
August 1, 20112011–31 I.R.B.

Part I. Rulings
and Decisions Under the Internal Revenue Code
of 1986
Section 956.—
Investment
of Earnings in
United
States Property
26 CFR 1.956–1: Shareholder’s pro rata share of a
controlled foreign corporation’s increase in earnings
invested in United States property.
T.D. 9530
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Part 1
Guidance Under Section 956
for Determining the Basis of
Property Acquired in Certain
Nonrecognition Transactions
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final and temporary regula-
tions.
SUMMARY: This document contains fi-
nal and temporary regulations under sec-
tion 956 of the Internal Revenue Code
(Code) regarding the determination of ba-
sis in certain United States property ac-
quired by a controlled foreign corpora-
tion in certain nonrecognition transactions
that are intended to repatriate earnings and
profits of the controlled foreign corpora-
tion without U.S. income taxation. The
regulations affect United States sharehold-
ers of a controlled foreign corporation that
acquires United States property in certain
nonrecognition transactions.
DATES:Effective Date:These regulations
are effective on June 24, 2011.
Applicability Date:For dates of appli-
cability, see §1.956–1(e)(6)(vii).
FOR FURTHER INFORMATION
CONTACT: Kristine A. Crabtree at (202)
622–3840 (not a toll-free number).
SUPPLEMENTAR
Y INFORMATION:
Background an
d Explanation of
Provisions
On June 24, 200
8, the IRS published
final and temp
orary regulations under
section 956 (
T.D. 9402, 2008–31 I.R.B.
254) in theFe
deral Register(73 FR
35580). On th
e same date, the IRS pub-
lished a noti
ce of proposed rulemaking
(REG–102122
–08, 2008–31 I.R.B. 278)
(the propos
ed regulations) in theFederal
Register(7
3 FR 35606) cross-referencing
the tempora
ry regulations. The tempo-
rary and pro
posed regulations provided
guidance r
egarding the determination of
basis in ce
rtainUnitedStatesproperty(as
defined in
section 956(c)) acquired by a
controlle
d foreign corporation (as defined
in sectio
n 957(a)) in certain nonrecogni-
tion tran
sactions that are intended to repa-
triate ea
rnings and profits of the controlled
foreign c
orporation without an income
inclusio
n by its United States shareholders
under se
ction 951(a)(1)(B). The purpose
of these
regulations is to prevent a United
States s
hareholder of a controlled foreign
corpora
tion from avoiding an income in-
clusion
under section 951(a)(1)(B) where
the con
trolled foreign corporation acquires
United
States property in an exchange to
which t
hese regulations apply and claims
abasis
in the United States property that is
less th
an the amount of earnings and prof-
its re
patriated. No comments in response
to the
proposed regulations were received
and no
public hearing was requested or
held.
This Treasury decision adopts the
propo
sed regulations with minor changes,
desc
ribed below, as final regulations and
remo
ves the corresponding temporary reg-
ulat
ions.
Lang
uagewasaddedto
§1.9
56–1(e)(6)(iii) to clarify the effect
of th
e assumption of a liability by a con-
trol
led foreign corporation in connection
wit
h an exchange to which §1.956–1(e)(6)
app
lies. The final regulations also modify
§1.
956–1(e)(6)(v) to address the situation
in w
hich the controlled foreign corpora-
tio
n exchanges specified United States
pro
perty the adjusted basis in which has
be
en determined under §1.956–1(e)(6) for
other United S
tates property, by providing
that for purpo
ses of applying section
956 the contro
lled foreign corporation’s
adjusted bas
is in the other United States
property is n
o less than its adjusted basis
in the specif
ied United States property
as determine
d under §1.956–1(e)(6)(iii).
Across-ref
erence to the anti-abuse rule
of §1.956–1
T(b)(4) was also added to
§1.956–1(e
)(6)(vi),Example 3.
Effective/Applicability Dates
These final regulations apply to prop-
erty acquired in exchanges occurring on
or after June 24, 2011. For transactions
that occur prior to June 24, 2011, see
§1.956–1T(e)(6) as contained in 26 CFR
Part 1 revised as of April 1, 2011.
Special An
alyses
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, these regulations have been
submitted to the Chief Counsel for Advo-
cacy of the Small Business Administration
for comment on its impact on small busi-
ness.
Drafting Information
The pr
incipal author of these regula-
tions
is Kristine A. Crabtree, Office of
Assoc
iate Chief Counsel (International).
Howev
er, other personnel from the IRS
and t
he Treasury Department participated
in th
eir development.
*****
Adoption of Amendments to the
Regulations
Acco
rdingly, 26 CFR part 1 is amended
as f
ollows:
2011–31 I.R.B.77August 1, 2011

PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding entries in nu-
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.956–1(e)(6) also issued under
26 U.S.C. 367(b) and 956(e).
Par. 2. Section 1.956–1 is amended
by revising the last sentence of paragraph
(e)(1), revising paragraphs (e)(5) and
(e)(6), and removing paragraph (f) to read
as follows:
§1.956–1 Shareholder’s pro rata share
of a controlled foreign corporation’s
increase in earnings invested in United
States property.
*****
(e) * * *
(1) * * * See §1.956–1(e)(6) for a spe-
cial rule for determining amounts attribut-
able to United States property acquired as
the result of certain nonrecognition trans-
actions.
*****
(5) [Reserved]. For further guidance,
see §1.956–1T(e)(5).
(6)Adjusted basis of property ac-
quired in certain nonrecognition transac-
tions—(i)Scope. This paragraph (e)(6)
provides rules for determining, solely for
purposes of applying section 956, the ad-
justed basis of specified United States
property acquired by acontrolled foreign
corporation pursuant to an exchange in
which the controlled foreign corporation’s
basis in such specified United States prop-
erty is determined under section 362(a).
This paragraph (e)(6) also applies if spec-
ified United States property, the adjusted
basis in which has been determined un-
der these regulations, is transferred (in
one or more subsequent exchanges) to a
related person (within the meaning of sec-
tion 954(d)(3)), pursuant to one or more
exchanges in which the related person’s
adjusted basis in such property is deter-
mined, in whole or in part, by reference to
the transferor controlled foreign corpora-
tion’s adjusted basis in such property.
(ii)Definition of specified United States
property. For purposes of this paragraph
(e)(6),specified United States propertyis
stock of a domestic corporation described
in section 956(c)(1)(B) or an obligation
of a domestic corporation described in
section 956(c)(1)(C) that is acquired by
a controlled foreign corporation from the
domestic issuing corporation. Specified
United States property does not include
property described in section 956(c)(2).
(iii)Adjusted basis of specified United
States property. Solely for purposes of ap-
plying section 956, the adjusted basis of
specified United States property acquired
by a controlled foreign corporation in con-
nectionwithanexchangetowhichthis
paragraph (e)(6) applies shall be no less
than the fair market value of any prop-
erty transferred by thecontrolled foreign
corporation in exchange for such speci-
fied United States property. For purposes
of this paragraph (e)(6), the termprop-
ertyhas the meaning set forth in section
317(a), but also includes any liability that
is assumed by the controlled foreign cor-
poration in connection with the exchange
notwithstanding the application of section
357(a). The assumption of a liability by
the controlled foreign corporation in con-
nection with the exchange will be con-
sidered the transfer of property. The fair
market value of such property will be the
amount of the liability assumed. The fair
market value of any property transferred
by the controlled foreign corporation in
exchange for the specified United States
property shall be determined at the time of
the exchange.
(iv)Timing.For purposes of
§1.956–2(d)(1)(i)(a), a controlled foreign
corporation that acquires specified United
States property in an exchange to which
this paragraph (e)(6) applies acquires an
adjusted basis in such property at the time
of the controlled foreign corporation’s
exchange of property for such specified
United States property.
(v)Transfers to related persons.Ifa
controlled foreign corporation transfers
specified United States property, the ad-
justed basis in which has been determined
under this paragraph (e)(6), to a related
person (within the meaning of section
954(d)(3)) (related person transferee) in
one or more exchanges pursuant to which
the related person transferee’s adjusted
basis in such specified United States prop-
erty is determined, in whole or in part, by
reference to the controlled foreign corpo-
ration’s adjusted basis in such specified
United States property, then, solely for
purposes of applying section 956 follow-
ing such exchange, the controlled foreign
corporation’s adjusted basis in any United
States property received in the exchange
(or exchanges) shall be no less than the
aggregate adjusted basis of the specified
United States property as determined un-
der paragraph (e)(6)(iii) of this section,
and the related person transferee’s adjusted
basis in such specified United States prop-
erty shall be no less than the adjusted basis
of such specified United States property
in the hands of the controlled foreign cor-
poration as determined under paragraph
(e)(6)(iii) of this section. This paragraph
(e)(6)(v) shall also apply in the case of
one or more successive transfers of the
specified United States property by a re-
lated person transferee to one or more
persons related to the controlled foreign
corporation (within the meaning of section
954(d)(3)). This paragraph (e)(6)(v) shall
apply regardless of whether a subsequent
transfer was part of a plan (or series of
related transactions) that includes the con-
trolled foreign corporation’s acquisition of
the specified United States property.
(vi)Examples. The rules of this para-
graph (e)(6) are illustrated by the follow-
ing examples:
Example 1.(i)Facts. USP, a domestic corpo-
ration, is the common parent of an affiliated group
that joins in the filing of a consolidated return. USP
owns 100 percent of the stock of US1 and US2, both
domestic corporations and members of the USP con-
solidated group. US1 owns 100 percent of the stock
of CFC, a controlled foreign corporation. US2 is-
sues $100x of its stock to CFC in exchange for $10x
of CFC stock and $90x cash. US2’s transfer of its
stock to CFC is described in section 351, US2 recog-
nizes no gain in the exchange under section 1032(a),
andCFC’sbasisintheUS2stockacquiredintheex-
change is determined under section 362(a).
(ii)Analysis. TheUS2stockacquiredbyCFC
in the exchange constitutes specified United States
property under paragraph (e)(6)(ii) of this section be-
cause CFC acquires the US2 stock from US2, the
issuing corporation. Therefore, because CFC’s ad-
justed basis in the US2 stock is determined under
section 362(a), then for purposes of applying section
956, CFC’s adjusted basis in the US2 stock shall, un-
der paragraph (e)(6)(iii) of this section, be no less than
$90x, the fair market value of the property exchanged
by CFC for the US2 stock (the $10x of CFC stock is-
sued in the exchange does not constitute property for
purposes of paragraph (e)(6)(iii) of this section). Pur-
suant to paragraph (e)(6)(iv) of this section, for pur-
poses of §1.956–2(d)(1)(i)(a) CFC shall be treated as
acquiring its adjusted basis of no less than $90x in the
US2 stock at the time of its transfer of property to US2
in exchange for the US2 stock. The result would be
the same if, instead of CFC transferring $90x of cash
to US2 in the exchange, CFC assumes a $90x liability
of US2.
Example 2.(i)Facts. USP, a domestic corpo-
ration, owns 100 percent of the stock of USS, a
August 1, 2011782011–31 I.R.B.

domestic corporation. USP also owns 100 percent of
the stock of CFC, a controlled foreign corporation.
USP’s adjusted basis in its USS stock equals the
fair market value of the USS stock, or $100x. USP
transfers its USS stock to CFC in exchange for $100x
of CFC stock. USP’s transfer of its USS stock to
CFC is described in section 351, USP recognizes
no gain in the exchange under section 351(a), and
CFC’s adjusted basis in the USS stock acquired in the
exchange, determined under section 362(a), equals
$100x.
(ii)Analysis. The USS stock acquired by CFC
in the exchange does not constitute specified United
States property under paragraph (e)(6)(ii) of this sec-
tion because CFC acquires the USS stock from USP.
Therefore, CFC’s adjusted basis in the USS stock, for
purposes of section 956, is not determined under this
paragraph (e)(6). Instead, CFC’s adjusted basis in the
USS stock is determined under the general rule of sec-
tion 956(a) and under paragraphs (e)(1) through (4)
of this section. As determined under section 362(a),
CFC’s adjusted basis in the USS stock is $100x.
Example 3.(i)Facts. USP, a domestic corpo-
ration, owns 100 percent of the stock of CFC1, a
controlled foreign corporation. CFC1 holds specified
United States property (within the meaning of para-
graph (e)(6)(ii) of this section) with an adjusted basis
of $30x for purposes of applying section 956 that was
determined under paragraph (e)(6)(iii) of this section.
CFC1 owns 100 percent of the stock of CFC2, a con-
trolled foreign corporation. CFC1 transfers the spec-
ifiedUnitedStatespropertytoCFC2inanexchange
described in section 351. CFC2’s adjusted basis in the
specified United States property is determined under
section 362(a).
(ii)Analysis. In the section 351 exchange, CFC1
transferred specified United States property to CFC2
with an adjusted basis that was determined under
paragraph (e)(6)(iii) of this section. Further, CFC2’s
adjusted basis in the specified United States property
is determined under section 362(a) by reference,
in whole or in part, to CFC1’s adjusted basis in
such property. Therefore, for purposes of applying
section 956, pursuant to paragraph (e)(6)(v) of this
section CFC2’s adjusted basis in the specified United
States property shall be no less than $30x. Paragraph
(e)(6)(v) of this section would also apply if CFC2
subsequently transfers the specified United States
property to another person related to CFC1 (within
the meaning of section 954(d)(3)) if such related
person’s adjusted basis in the specified United States
property is determined by reference, in whole or in
part, to CFC2’s adjusted basis in such property. See
also §1.956–1T(b)(4) if one of the principal purposes
of CFC1’s transfer of property to CFC2 was the
avoidance of the application of section 956 with
respect to CFC1.
(vii)Effective/applicability dates.This
paragraph (e)(6) applies to property ac-
quired in exchanges occurring on or
after June 24, 2011. For transactions
that occur prior to June 24, 2011, see
§1.956–1T(e)(6) as contained in 26 CFR
Part 1 revised as of April 1, 2011.
Par. 3. Section 1.956–1T is amended
by removing paragraph (e)(6) and revising
paragraph (f) to read as follows:
§1.956–1T Shareholder’s pro rata share
of a controlled foreign corporation’s
increase in earnings invested in United
States property (temporary).
*****
(f)Effective/applicability date. Para-
graph (e)(5) of this section applies to in-
vestments made on or after June 14, 1988.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved June 11, 2011.
Emily S. McMahon,
Acting Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on June 23, 2011,
8:45 a.m., and published in the issue of the Federal Regis
ter
for June 24, 2011, 76 F.R. 36993)
Section 6081.—Extension
of Time for Filing Returns
26 CFR 1.6081–2: Automatic extension of time to file
certain returns filed by partnerships.
T.D. 9531
DEPARTMENT OF THE
TREASURY
Internal Revenue Service
26 CFR Parts 1 and 54
Extension of Time for Filing
Returns
AGENCY: Internal Revenue Service
(IRS), Treasury.
ACTION: Final and removal temporary
regulations
SUMMARY: This document contains final
regulations relating to the automatic exten-
sions of time to file returns for partner-
ship, trust, and estate taxpayers, and auto-
matic extensions of time for filing returns
for pension excise taxes. The objective of
these final regulations is to reduce overall
taxpayer burden by providing an extension
period that strikes the most reasonable bal-
ance for these pass-through entities and the
large number of taxpayers who require in-
formation from these entities for comple-
tion of their income tax returns.
DATES:Effective Date:These regulations
are effective on June 24, 2011.
Applicability Date:For dates of
applicability of these regulations,
see §§1.6081–2(h), 1.6081–6(g), and
54.6081–1(f).
FOR FURTHER INFORMATION
CONTACT: Jason Bremer, (202)
622–4910 (not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
This document contains amendments to
26 CFR parts 1 and 54 under section 6081
of the Internal Revenue Code (Code). On
November 8, 2005, the Treasury Depart-
ment and the IRS published a notice of
proposed rulemaking (REG–144898–04,
2005–2 C.B. 1062) by cross-reference
to temporary regulations (T.D. 9229,
2005–2 C.B. 1051) in theFederal Regis-
ter(70 FR 67356, 70 FR 67397) relating
to the simplification of procedures for
obtaining automatic extensions of time
to file certain returns. On July 1, 2008,
the Treasury Department and the IRS
published final and temporary regulations
(T.D. 9407, 2008–33 I.R.B. 330) in the
Federal Register(73 FR 37362) finalizing
the rules simplifying the procedures
for obtaining automatic extensions of
time to file certain returns. A notice of
proposed rulemaking (REG–115457–08,
2008–33 I.R.B. 390) cross-referencing
the temporary regulations also was
published in theFederal Register(73 FR
37389) on July 1, 2008. The temporary
and proposed regulations reduced the
automatic six-month extension of time
to file contained in the 2005 proposed
regulations to five months for certain
pass-through entities (most partnerships,
estates, and certain trusts).
As these pass-through entities were pre-
viously allowed to obtain an automatic six-
month extension of time to file certain re-
turns, the Treasury Department and the
IRS requested comments on whether, and
how, a five-month extension of time to
file for these pass-through entities might
increase or reduce overall taxpayer bur-
den. Approximately 70 comments were
received in response to the notice of pro-
posed rulemaking. A public hearing was
held on January 13, 2009. Three speakers
2011–31 I.R.B.79August 1, 2011

appeared at the public hearing and com-
mented on the notice of proposed rulemak-
ing.
All comments were considered and
are available for public inspection at
www.regulations.govor upon request.
After consideration of the written
comments and the comments provided
at the public hearing, the proposed
regulations under section 6081 are adopted
as revised by this Treasury decision. The
public comments, public hearing, and the
revisions are discussed in this preamble.
Explanation and Summary of
Comments
Prior to issuance of the 2005 tempo-
rary regulations, T.D. 9229, pass-through
entities were entitled to an automatic
three-month extension of time to file cer-
tain returns by filing one form, and could
also request a discretionary additional
three-month extension of time to file by
filing a second form. T.D. 9229 provided
temporary regulationsthat simplified the
extension process by allowing most tax-
payers, including pass-through entities, to
obtain a six-month automatic extension of
time to file by filing one single form. In
the 2008 final and temporary regulations,
T.D. 9407, the Treasury Department and
the IRS finalized rules granting an auto-
matic six-month extension of time to file
for non pass-through entities and granting
certain pass-through entities a five-month
automatic extension of time to file cer-
tain returns. The five-month extension
included in the 2008 final and temporary
regulations for certain pass-through enti-
ties responded to comments received on
the 2005 temporary regulations. Commen-
tators expressed concern that an automatic
six-month extension for pass-through en-
tities would unduly burden individual and
corporate taxpayers with ownership in-
terests in pass-through entities because
individual and corporate taxpayers might
not receive information returns from
pass-through entities in sufficient time to
complete their income tax returns in an
accurate and timely manner.
Partnership, Trust, and Estate Taxpayers
Recognizing the inherent conflict
between providing sufficient time for
pass-through entities to prepare returns
and ensuring that the owners and bene-
ficiaries of pass-through entities timely
receive information returns needed to
file their own returns, the 2008 proposed
and temporary regulations specifically re-
quested comments on whether a shorter
filing extension period for pass-through
entities might increase or reduce overall
taxpayer burden. The IRS received ap-
proximately 70 comments, many of which
are summarized in this preamble.
Several commentators suggested that
the Treasury Department and the IRS
should consider changing the filing and ex-
tension due dates for individual and corpo-
rate tax returns rather than shortening the
extension period for pass-through entities.
For example, some commentators sug-
gested moving the individual taxpayer re-
turn due date to April 30th, or allowing in-
dividuals and corporations a seven-month
extension of time to file returns. Other
commentators suggested moving up the
filing date for partnership, trust, and estate
taxpayers to March 15th, thereby allowing
these entities a full six-month extension
of time to file until September 15th so
that individual taxpayers with ownership
interests in the entities would receive
information timely.
These suggestions are not viable op-
tions for a regulation project because the
due dates for filing tax returns are deter-
mined by statute.See, for example, sec-
tions 6012(a) and 6072. Further, section
6081 provides that, except in the case of
taxpayers who are abroad, the maximum
extension of time to file a tax return can-
not exceed six months. Accordingly, with-
out legislative action, the Treasury Depart-
ment and the IRS cannot change the due
date for filing tax returns or increase the
maximum extension of time to file a tax re-
turn for pass-through entities, individuals,
or corporations.
Although the comments with regard to
shortening the automatic extension period
for these pass-through entities varied as
to time periods, the majority of commen-
tators agreed that a less than six-month
extension period for pass-through entities
would generally reduce overall taxpayer
burden by allowing taxpayers with owner-
ship interests in pass-through entities to re-
ceive information in a more timely fashion
vis-à-vis preparation of their own individ-
ual or corporate income tax returns. There
was no clear consensus, however, regard-
ing what the optimal period of extension
would be for reducing taxpayer burden.
The Treasury Department and the
IRS considered several extension peri-
ods for pass-through entities, including
a four-month and a five-month exten-
sion period, when drafting the proposed
and temporary regulations. The Trea-
sury Department and the IRS ultimately
decided upon a five-month automatic
extension period for the proposed and
temporary regulations. Many comments
were received supporting the five-month
extension period.Some commentators
noted, however, that the five-month ex-
tension period would not alleviate the
burden on corporate taxpayers with own-
ership interests in pass-through entities.
These commentators expressed a concern
that even a five-month extension period
for these entities would, in most cases,
simply align the extended due date for
pass-through entities with the extended
due date for corporate returns, resulting in
the same delay of information to corporate
owners of these entities. That delay, the
commentators contend, would greatly in-
crease the need for filing amended returns.
Commentators suggested shortening the
automatic extension for these entities to
less than five months.
In opting for the five-month extension,
the Treasury Department and the IRS rec-
ognize that some corporations with owner-
ship interests in pass-through entities may
continue to experience delayed receipt of
information needed tocomplete their own
corporate returns. The Treasury Depart-
ment and the IRS, however, continue to be-
lieve that a five-month extension period re-
duces the overall burden on taxpayers and
strikes the most reasonable balance for all
affected taxpayers. The five-month exten-
sion period allows pass-through entities,
including complex and tiered entities, an
adequate time for preparation of the re-
quired pass-through returns and also en-
sures the timely and accurate dissemina-
tion of information to a large number of
taxpayers who require that information for
completion of their own income tax re-
turns.
Electing large partnerships required to
file Form 1065–B, “U.S. Return of Income
for Electing Large Partnerships,” for any
taxable year will be allowed an automatic
six-month extension of time to file the re-
turn, however, becausethese pass-through
August 1, 2011802011–31 I.R.B.

entities are statutorily required to furnish
Schedules K–1 by March 15, regardless of
any extension of time to file the return.See
section 6031(b).
Comments varied in response to the
five-month automatic filing extension
period provided for trust taxpayers. Sev-
eral commentators expressed support
of the overall five-month extension to
pass-through entities. Other commen-
tators suggested that trusts resemble an
end taxpayer more than a pass-through
entity, and in that respect are more akin
to individuals than to partnerships. These
commentators argued that trusts did not
belong in the same class of entities as
partnerships and estates for purposes of
automatic filing extensions.
Some commentators further expressed
concern that Schedules K–1 would not be
received by trusts in a sufficiently timely
fashion. For example, commenters noted
that trusts are often invested in partner-
ships, which are often invested in other
partnerships in tiered structures, with each
entity relying on the next for information
before preparing their own statements.
These commenters feared that, due to the
compressed timeframe when Forms 1065,
“U.S. Return of Partnership Income,” will
typically be prepared, Schedules K–1 re-
ceived by each succeeding entity in the
chain ultimately will be received by trusts
at the very last minute, resulting in inac-
curacies and increased preparer burden.
Commentators also pointed out that the
five-month extended deadline for trusts
would coincide with the extended due
date for S Corporation tax returns. Due
to the fact that many trusts are invested
in S Corporations, these commentators
viewed this as an increased burden on
trusts and their return preparers.
The Treasury Department and the IRS
recognize that only allowing a five-month
extension of time to file for trusts may
cause a hardship, as some trusts may have
less time to complete accurate income tax
returns and to provide timely information
to the trust’s beneficiaries. Providing a
longer extension of time to file, however,
still presents the potential of shifting the
burden to individuals who might not re-
ceive timely information. In addition, the
Treasury Department and the IRS believe
that the five-month automatic filing exten-
sion period has generally been successful
and continues to strike the right balance in
reducing overall taxpayer burden since the
proposed and temporary regulations were
adopted.
Therefore, after thorough consideration
of all the comments, the Treasury Depart-
ment and the IRS determined that the five-
month extension period best reduces over-
all tax burden. Accordingly, these final
regulations provide that trusts will con-
tinue to receive an automatic five month
extension of time to file as provided in the
proposed and temporary regulations.
Finally, a comment questioned whether
the five-month automatic extension of
time to file estate or trust income tax
returns applies to individuals filing bank-
ruptcy petitions under chapter 7 or 11 of
title 11 of the United States Code. The
bankruptcy estate created when a peti-
tion is filed by an individual under either
chapter 7 or 11 is a separate taxable en-
tity for title 26 purposes.See26 U.S.C.
§1398. Although fiduciaries of these in-
dividual bankruptcy estates (trustees or
debtors-in-possession) may be required
to file Forms 1041, the bankruptcy es-
tates are not pass-through entities as de-
scribed in these regulations. Therefore,
the five-month automatic extension pro-
vided by these regulations is inapplicable
to bankruptcy estates of individuals under
chapter 7 or 11 of title 11 of the Bank-
ruptcy Code.
Pass-through entities eligible to file
bankruptcy petitions, such as partnerships,
would be affected by these regulations. A
separate taxable entity is not created when
a partnership files a bankruptcy case.See
generally26 U.S.C. §1399. The trustee
or debtor-in-possession of the bankrupt
partnership files a Form 1065, not a Form
1041. Thus, the five-month automatic
extension provided in these regulations
would apply, as the filing of a bankruptcy
petition does not change the information
reporting requirements of pass-through
entities, such as a partnership.
Accordingly, after consideration of all
comments and in order to best minimize
overall taxpayer burden, these final regu-
lations provide for a five-month automatic
extension of time to file certain returns for
partnerships, trusts, and estates other than
certain bankruptcy estates.
Pension Excise Taxes
These final regulations also adopt
without modification the proposed amend-
mentsto26CFRpart54,whichallow
filers of Form 8928, “Return of Certain
Excise Taxes Under Chapter 43 of the
Internal Revenue Code,” to obtain an au-
tomatic six-month extension of time to
file the return after the date prescribed for
filing the return.
Special Analyses
It has been determined that this Trea-
sury Decision is not a significant regula-
tory action as defined in Executive Or-
der 12866. Therefore, a regulatory assess-
ment is not required. It also has been de-
termined that section 553(b) of the Ad-
ministrative Procedure Act (5 U.S.C. chap-
ter 5) does not apply to these regulations.
Although these final regulations reference
forms that are approved under the Paper-
work Reduction Act (44 U.S.C. chapter
35), the regulations themselves do not im-
pose a collection of information on small
entities. Therefore, the Regulatory Flex-
ibility Act (5 U.S.C. chapter 6) does not
apply. Pursuant to section 7805(f) of the
Internal Revenue Code, the notice of pro-
posed rulemaking preceding this regula-
tion was submitted to the Chief Counsel
for Advocacy of the Small Business Ad-
ministration for comment on its impact on
small businesses.
Drafting Information
The principal author of these regula-
tions is Jason Bremer of the Office of the
Associate Chief Counsel (Procedure and
Administration).
*****
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 1 and 54 are
amended as follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation for
part 1 is amended by adding entries in nu-
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section1.6081–2alsoissuedunder
26 U.S.C. 6081. * * *
2011–31 I.R.B.81August 1, 2011

Section 1.6081–6 also issued under
26 U.S.C. 6081. * * *
Par. 2. Section 1.6081–2 is added to
read as follows:
§1.6081–2 Automatic extension of time to
file certain returns filed by partnerships.
(a)In general. (1) A partnership re-
quired to file Form 1065, “U.S. Partner-
ship Return of Income,” or Form 8804,
“Annual Return for Partnership Withhold-
ing Tax (Section 1446),” for any taxable
year will be allowed an automatic 5-month
extension of time to file the return after the
date prescribed for filing the return if the
partnership files an application under this
section in accordance with paragraph (b)
of this section. No additional extension
will be allowed pursuant to §1.6081–1(b)
beyond the automatic 5-month extension
provided by this section. In the case of a
partnership described in §1.6081–5(a)(1),
the automatic extension of time to file al-
lowed under this section runs concurrently
with an extension of time to file granted
pursuant to §1.6081–5.
(2)Anelectinglargepartnership(ELP)
required to file Form 1065–B, “U.S. Re-
turn of Income for Electing Large Partner-
ships,” for any taxable year will be allowed
an automatic 6-month extension of time
to file the return after the date prescribed
for filing the return if the partnership files
an application under this section in accor-
dance with paragraph (b) of this section.
(b)Requirements. To satisfy this para-
graph (b), the partnership must—
(1) Submit a complete application on
Form 7004, “Application for Automatic
Extension of Time to File Certain Business
Income Tax, Information, and Other Re-
turns,” or in any other manner prescribed
by the Commissioner;
(2) File the application on or before the
later of—
(i) The date prescribed for filing the re-
turn of the partnership; or
(ii) The expiration of any extension of
time to file granted under §1.6081–5(a);
and
(3) File the application with the Internal
Revenue Service office designated in the
application’s instructions.
(c)Payment of section 7519 amount.
An automatic extension of time for fil-
ing a partnership return of income granted
under paragraph (a) of this section does
not extend the time for payment of any
amount due under section 7519, relating to
required payments for entities electing not
to have a required taxable year.
(d)Section 444 election.Anautomatic
extension of time for filing a partnership
return of income will run concurrently
with any extension of time for filing a
return allowed because of section 444,
relating to the election of a taxable year
other than a required taxable year.
(e)Effect of extension on partner.An
automatic extension of time for filing a
partnership return of income under this
section does not extend the time for filing a
partner’s income tax return or the time for
the payment of any tax due on a partner’s
income tax return.
(f)Termination of automatic extension.
The Commissioner may terminate an au-
tomatic extension at any time by mailing
to the partnership a notice of termination
at least 10 days prior to the termination
date designated in such notice. The Com-
missioner must mail the notice of termi-
nation to the address shown on the Form
7004 or to the partnership’s last known
address. For further guidance regarding
the definition of last known address,see
§301.6212–2 of this chapter.
(g)Penalties.Seesection 6698 for fail-
ure to file a partnership return.
(h)Effective/applicability dates.This
section applies to applications for an auto-
matic extension of time to file the partner-
ship returns listed in paragraph (a) of this
section filed on or after June 24, 2011.
§1.6081–2T [Removed]
Par. 3. Section 1.6081–2T is removed.
Par. 4. Section 1.6081–6 is added to
read as follows:
§1.6081–6 Automatic extension of time to
file estate or trust income tax return.
(a)In general. (1) Except as provided
in paragraph (a)(2) of this section, any es-
tate, including but not limited to an es-
tate defined in section 2031, or trust re-
quired to file an income tax return on Form
1041, “U.S. Income Tax Return for Es-
tates and Trusts,” will be allowed an au-
tomatic 5-month extension of time to file
the return after the date prescribed for fil-
ing the return if the estate or trust files
an application under this section in accor-
dance with paragraph (b) of this section.
No additional extension will be allowed
pursuant to §1.6081–1(b) beyond the auto-
matic 5-month extension provided by this
section.
(2) A bankruptcy estate that is created
when an individual debtor files a petition
under either chapter 7 or chapter 11 of Title
11 of the U.S. Code that is required to file
an income tax return on Form 1041, “U.S.
Income Tax Return for Estates and Trusts,”
and an estate or trust required to file an in-
come tax return on Form 1041–N, “U.S.
Income Tax Return for Electing Alaska Na-
tive Settlement,” or Form 1041–QFT, “U.S.
Income Tax Return for Qualified Funeral
Trusts” for any taxable year will be al-
lowed an automatic 6-month extension of
time to file the return after the date pre-
scribed for filing the return if the estate
files an application under this section in
accordance with paragraph (b) of this sec-
tion.
(b)Requirements. To satisfy this para-
graph (b), an estate or trust must—
(1) Submit a complete application on
Form 7004, “Application for Automatic
Extension of Time to File Certain Business
Income Tax, Information, and Other Re-
turns,” or in any other manner prescribed
by the Commissioner;
(2) File the application on or before the
date prescribed for filing the return with
the Internal Revenue Service office desig-
nated in the application’s instructions; and
(3) Show the amount properly esti-
mated as tax for the estate or trust for the
taxable year.
(c)No extension of time for the payment
of tax. An automatic extension of time for
filing a return granted under paragraph (a)
of this section will not extend the time for
payment of any tax due on such return.
(d)Effect of extension on beneficiary.
An automatic extension of time to file an
estate or trust income tax return under this
section will not extend the time for filing
the income tax return of a beneficiary of
the estate or trust or the time for the pay-
ment of any tax due on the beneficiary’s
income tax return.
(e)Termination of automatic extension.
The Commissioner may terminate an au-
tomatic extension at any time by mailing
totheestateortrustanoticeoftermina-
tion at least 10 days prior to the termina-
tion date designated in such notice. The
Commissioner must mail the notice of ter-
mination to the address shown on the Form
August 1, 2011822011–31 I.R.B.

7004 or to the estate or trust’s last known
address. For further guidance regarding
the definition of last known address,see
§301.6212–2 of this chapter.
(f)Penalties.Seesection 6651 for fail-
ure to file an estate or trust income tax re-
turn or failure to pay the amount shown as
taxonthereturn.
(g)Effective/applicability dates.This
section applies to applications for an au-
tomatic extension of time to file an estate
or trust income tax return filed on or after
June 24, 2011.
§1.6081–6T [Removed]
Par. 5. Section 1.6081–6T is removed.
PART 54—PENSION EXCISE TAXES
Par. 6. The authority citation for part
54isamendedbyaddinganentryinnu-
merical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 54.6081–1 also issued under
26 U.S.C. 6081(a).
Par. 7. Section 54.6081–1 is added to
read as follows:
§54.6081–1 Automatic extension of time
for filing returns for certain excise taxes
under Chapter 43.
(a)In general. An employer, other per-
son or health plan that is required to file
a return on Form 8928, “Return of Cer-
tain Excise Taxes Under Chapter 43 of the
Internal Revenue Code,” will be allowed
an automatic 6-month extension of time to
file the return after the date prescribed for
filing the return if the employer, other per-
son or health plan files an application un-
der this section in accordance with para-
graph (b) of this section.
(b)Requirements. To satisfy this para-
graph (b), an employer, other person or
health plan must—
(1) Submit a complete application on
Form 7004, “Application for Automatic
Extension of Time To File Certain Business
Income Tax, Information, and Other Re-
turns,” or in any other manner prescribed
by the Commissioner;
(2) File the application on or before the
date prescribed for filing the return with
the Internal Revenue Service office desig-
nated in the application’s instructions; and
(3) Remit the amount of the properly
estimated unpaid tax liability on or before
thedateprescribedforpayment.
(c)No extension of time for the payment
of tax. An automatic extension of time for
filing a return granted under paragraph (a)
of this section will not extend the time for
payment of any tax due on such return.
(d)Termination of automatic extension.
The Commissioner may terminate an auto-
matic extension at any time by mailing to
the employer, other person, or health plan a
notice of termination at least 10 days prior
to the termination date designated in such
notice. The Commissioner must mail the
notice of termination to the address shown
on the Form 7004 or to the estate or trust’s
last known address. For further guidance
regarding the definition of last known ad-
dress,see§301.6212–2 of this chapter.
(e)Penalties.Seesection 6651 for fail-
ure to file a pension excise tax return or
failure to pay the amount shown as tax on
the return.
(f)Effective/applicability date.This
section is applicable for applications for an
automatic extension of time to file a re-
turn due under chapter 43, filed on or after
June 24, 2011.
Steven T. Miller,
Deputy Commissioner for
Services and Enforcement.
Approved June 17, 2011.
Emily S. McMahon,
Acting Assistant Secretary
oftheTreasury(TaxPolicy).
(Filed by the Office of the Federal Register on June 23, 2011,
8:45 a.m., and published in the issue of the Federal Register
for June 24, 2011, 76 F.R. 36996)
2011–31 I.R.B.83August 1, 2011

Part III. Administrative, Procedural, and Miscellaneous
2011 Section 43 Inflation
Adjustment
Notice 2011–57
Section 43(b)(3)(B) of the Internal
Revenue Code requires the Secretary to
publish an inflation adjustment factor.
The enhanced oil recovery credit under
§ 43 for any taxable year is reduced if
the “reference price,” determined under
§ 45K(d)(2)(C), for the calendar year
preceding the calendar year in which the
taxable year begins is greater than $28
multiplied by the inflation adjustment fac-
tor for that year. The credit is phased out
in any taxable year in which the reference
price for the preceding calendar year ex-
ceeds $28 (as adjusted) by at least $6.
The term “inflation adjustment factor”
means, with respect to any calendar year,
a fraction the numerator of which is the
GNP implicit price deflator for the preced-
ing calendar year and the denominator of
which is the GNP implicit price deflator
for 1990.
Because the reference price for the 2010
calendar year ($74.71) exceeds $28 mul-
tiplied by the inflation adjustment factor
for the 2010 calendar year ($42.91) by
$31.80, the enhanced oil recovery credit
for qualified costs paid or incurred in 2011
is phased out completely.
Table 1 contains the GNP implicit price
deflator used for the 2011 calendar year,
as well as the previously published GNP
implicit price deflators used for the 1991
through 2010 calendar years.
Notice 2011–57 TABLE 1
GNP IMPLICIT PRICE DEFLATORS
CalendarYearGNPImplicitPriceDeflator
1990112.9(used for 1991)
1991117.0(used for 1992)
1992120.9(used for 1993)
1993124.1(used for 1994)
1994126.0
(used for 1995)*
1995107.5
(used for 1996)
1996109.7(used for 1997)**
1997
112.35
(used for 1998)
1998112.64(used for 1999)***
1999
104.59
(used for 2000)
2000106.89(used for 2001)
2001109.31(used for 2002)
2002110.63(used for 2003)
2003
105.67
(used for 2004)****
2004108.23
(used for 2005)
2005
112.129(used for 2006)
2006116.036(used for 2007)
2007
119.656
(used for 2008)
2008122.407(used for 2009)
2009109.764(used for 2010)*****
2010
110.654
(used for 2011)
* Beginning in 1995, the GNP implicit price deflator was rebased relative to 1992. The 1990 GNP implicit price deflator used
to compute the 1996 § 43 inflation adjustment factor is 93.6.
** Beginning in 1997, two digits follow the decimal point in the GNP implicit price deflator. The 1990 GNP price deflator used
to compute the 1998 § 43 inflation adjustment factor is 93.63.
*** Beginning in 1999, the GNP implicit price deflator was rebased relative to 1996. The 1990 GNP implicit price deflator
used to compute the 2000 § 43 inflation adjustment factor is 86.53.
**** Beginning in 2003, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to
compute the 2004 § 43 inflation adjustment factor is 81.589.
***** Beginning in 2009, the GNP implicit price deflator was rebased, and the 1990 GNP implicit price deflator used to
compute the 2010 § 43 inflation adjustment factor is 72.199.
August 1, 2011842011–31 I.R.B.

Table 2 contains the inflation adjust-
ment factor and the phase-out amount
for taxable years beginning in the 2011
calendar year as well as the previously
published inflation adjustment factors and
phase-out amounts for taxable years be-
ginning in the 1991 through 2010 calendar
years.
Notice 2011–57 TABLE 2
INFLATION ADJUSTMENT FACTORS AND
PHASE-OUT AMOUNTS
Calendar
Year
InflationAdjustment
Factor
Phase-out
Amount
19911.00000
19921.03630
19931.07080
19941.09920
1995
1.11600
1996
1.1485
0
19971.17200
19981.19990
19991.20300
20001.20870
2001
1.2353
0
20021.26330
2003
1.2785
0
2004
1.2952
0
2005
1.32660
20061.3743100 percent
20071.4222100 percent
20081.4666100 percent
2009
1.5003
100 percent
2010
1.5203
100 percent
2011
1.5326
100 percent
DRAFTING INFORMATION
The principal author of this notice
is Martha S. McRee of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice, contact
Ms. McRee at (202) 622-3110 (not a
toll-free call).
2011 Marginal Production
Rates
Notice 2011–58
This notice announces the applicable
percentage under § 613A of the Internal
Revenue Code to be used in determining
percentage depletion for marginal proper-
ties for the 2011 calendar year.
Section 613A(c)(6)(C) defines the term
“applicable percentage” for purposes of
determining percentage depletion for oil
and gas produced from marginal proper-
ties. The applicable percentage is the per-
centage (not greater than 25 percent) equal
to the sum of 15 percent, plus one per-
centage point for each whole dollar by
which $20 exceeds the reference price (de-
termined under § 45K(d)(2)(C)) for crude
oil for the calendar year preceding the cal-
endar year in which the taxable year be-
gins. The reference price determined un-
der § 45K(d)(2)(C) for the 2010 calendar
year is $74.71.
Table 1 contains the applicable percent-
ages for marginal production for taxable
years beginning in calendar years 1991
through 2011.
2011–31 I.R.B.85August 1, 2011

Notice 2011–58 TABLE 1
APPLICABLE PERCENTAGE FOR MARGINAL PRODUCTION
CalendarYearApplicablePercentage
1991
15 percent
199218 percent
199319 percent
199420 percent
1995
21 percent
199620 percent
199716 percent
199817 percent
199924 percent
200019 percent
2001
15 percent
2002
15 percent
2003
15 percent
2004
15 percent
200515 percent
2006
15 percent
2007
15 percent
2008
15 percent
2009
15 percent
2010
15 percent
2011
15 percent
The principal author of this notice
is Martha S. McRee of the Office of
Associate Chief Counsel (Passthroughs
and Special Industries). For further
information regarding this notice, contact
Ms. McRee at (202) 622–3110 (not a
toll-free call).
Update for Weighted Average
Interest Rates, Yield Curves,
and Segment Rates
Notice 2011–59
This notice provides guidance as to the
corporate bond weighted average interest
rate and the permissible range of interest
rates specified under § 412(b)(5)(B)(ii)(II)
of the Internal Revenue Code as in ef-
fect for plan years beginning before 2008.
It also provides guidance on the cor-
porate bond monthly yield curve (and
the corresponding spot segment rates),
and the 24-month average segment rates
under § 430(h)(2). In addition, this no-
tice provides guidance as to the interest
rate on 30-year Treasury securities un-
der § 417(e)(3)(A)(ii)(II) as in effect for
plan years beginning before 2008, the
30-year Treasury weighted average rate
under § 431(c)(6)(E)(ii)(I), and the min-
imum present value segment rates under
§ 417(e)(3)(D) as in effect for plan years
beginning after 2007.
CORPORATE BOND WEIGHTED
AVERAGE INTEREST RATE
Sections412(b)(5)(B)(ii)and
412(l)(7)(C)(i), as amended by the Pen-
sion Funding Equity Act of 2004 and by
the Pension Protection Act of 2006 (PPA),
provide that the interest rates used to cal-
culate current liability and to determine
the required contribution under § 412(l)
for plan years beginning in 2004 through
2007 must be within a permissible range
based on the weighted average of the rates
of interest on amounts invested conser-
vatively in long term investment grade
corporate bonds during the 4-year period
ending on the last day before the beginning
of the plan year.
Notice 2004–34, 2004–1 C.B. 848, pro-
vides guidelines for determining the cor-
porate bond weighted average interest rate
and the resulting permissible range of in-
terest rates used to calculate current liabil-
ity. That notice establishes that the corpo-
rate bond weighted average is based on the
monthly composite corporate bond rate de-
rived from designated corporate bond in-
dices. The methodology for determining
the monthly composite corporate bond rate
as set forth in Notice 2004–34 continues to
apply in determining that rate. See Notice
2006–75, 2006–2 C.B. 366.
The composite corporate bond rate for
June 2011 is 5.38 percent. Pursuant to No-
tice 2004–34, the Service has determined
this rate as the average of the monthly
yields for the included corporate bond in-
dices for that month.
The following corporate bond weighted
average interest rate was determined for
plan years beginning in the month shown
below.
For Plan Years
Beginning inPermissible Range
MonthYear
Corporate
Bond Weighted
Average90%to100%
July2011
5.975.375.97
August 1, 2011862011–31 I.R.B.

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. Sec-
tion 430(h)(2)G) set forth a transitional
rule applicable to plan years beginning in
2008 and 2009 under which the segment
rates were blended with the corporate bond
weighted average described above, includ-
ing an election under § 430(h)(2)(G)(iv)
foranemployertousethesegmentrates
without the transitional rule.
Notice 2007–81, 2007–44 I.R.B. 899,
provides guidelines for determining the
monthly corporate bond yield curve, and
the 24-month average corporate bond
segment rates used to compute the tar-
get normal cost and the funding target.
Pursuant to Notice 2007–81, the monthly
corporate bond yield curve derived from
June 2011 data is in Table I at the end of
this notice. The spot first, second, and
third segment rates for the month of June
2011 are, respectively, 1.70, 4.99, and
6.33. The three 24-month average cor-
porate bond segment rates applicable for
July 2011 are as follows:
First
Segment
Second
Segment
Third
Segment
2.18
5.36
6.33
The transitional rule of § 430(h)(2)(G)
does not apply to plan years beginning af-
ter December 31, 2009. Therefore, for a
plan year beginning after 2009 with a look-
back month to July 2011, the funding seg-
ment rates are the three 24-month average
corporate bond segment rates applicable
for July 2011, listed above without blend-
ing for any transitional period.
30-YEAR TREASURY SECURITIES
INTEREST RATES
Section 417(e)(3)(A)(ii)(II) (prior to
amendment by PPA) defines the appli-
cable interest rate, which must be used
for purposes of determining the minimum
present value of a participant’s benefit
under § 417(e)(1) and (2), as the annual
rate of interest on 30-year Treasury se-
curities for the month before the date
of distribution or such other time as the
Secretary may by regulations prescribe.
Section 1.417(e)–1(d)(3) of the Income
Tax Regulations provides that the applica-
bleinterestrateforamonthistheannual
rate of interest on 30-year Treasury secu-
rities as specified by the Commissioner
for that month in revenue rulings, notices
or other guidance published in the Internal
Revenue Bulletin.
The rate of interest on 30-year Trea-
sury securities for June 2011 is 4.23 per-
cent. The Service has determined this rate
as the average of the daily determinations
of yield on the 30-year Treasury bond ma-
turing in May 2041.
Generally for plan years beginning
after 2007, § 431 specifies the mini-
mum funding requirements that apply to
multiemployer plans pursuant to § 412.
Section 431(c)(6)(B) specifies a 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 Years
Beginning inPermissible Range
MonthYear
30-Year
Treasury
Weighted
Average
90%to
105%
July20114.273.844.48
MINIMUM PRESENT VALUE
SEGMENT RATES
Generally for plan years beginning
after December 31, 2007, the applicable
interest rates under § 417(e)(3)(D) are
segment rates computed without regard
to a 24-month average. For plan years
beginning in 2008 through 2011, the ap-
plicable interest rates are the monthly spot
segment rates blended with the applica-
ble rate under § 417(e)(3)(A)(ii)(II) as in
effect for plan years beginning in 2007.
Notice 2007–81 provides guidelines for
determining the minimum present value
segment rates.
2011–31 I.R.B.87August 1, 2011

Pursuant to that notice, the minimum
present value transitional segment rates
determined for June 2011, taking into ac- count the June 2011 30-year Treasury rate
of 4.23 stated above, are as follows:
For Plan Years
Beginning in
First
Segment
Second
Segment
Third
Segment
20102.714.69
5.49
20112.214.84
5.91
DRAFTING INFORMATION
The principal author of this notice is
Tony Montanaro of the Employee Plans,
Tax Exempt and Government Entities
Division. Mr. Montanaro may be e-mailed
atRetirementPlanQuestions@irs.gov.
August 1, 2011882011–31 I.R.B.

Table I
Monthly Yield Curve for June 2011
Derived from June 2011 Data
Maturity YieldMaturity YieldMaturity YieldMaturity YieldMaturity Yield
0.50.5220.55.8640.5
6.38
60.56.5680.5
6.64
1.00.7121.05.8941.0
6.39
61.0
6.56
81.0
6.65
1.5
0.93
21.55.9141.5
6.39
61.56.5681.56.65
2.01.1822.05.9442.06.4062.0
6.56
82.0
6.65
2.5
1.48
22.5
5.96
42.5
6.40
62.56.5782.56.65
3.01.8023.05.9843.06.4163.0
6.57
83.0
6.65
3.5
2.13
23.5
6.00
43.5
6.42
63.56.5783.56.65
4.0
2.45
24.06.0244.06.4264.0
6.58
84.06.66
4.52.7424.56.0344.56.4364.56.5884.56.66
5.0
3.02
25.06.0545.0
6.43
65.06.5885.0
6.66
5.5
3.27
25.5
6.07
45.5
6.44
65.56.5885.5
6.66
6.0
3.50
26.06.0846.06.4466.06.5986.06.66
6.5
3.71
26.5
6.10
46.56.4566.5
6.59
86.5
6.66
7.0
3.90
27.06.1147.0
6.45
67.06.5987.06.66
7.54.0727.56.1347.56.4667.56.5987.56.67
8.04.2328.06.1448.06.4668.06.6088.06.67
8.5
4.37
28.5
6.16
48.5
6.47
68.5
6.60
88.5
6.67
9.0
4.50
29.0
6.17
49.0
6.47
69.0
6.60
89.0
6.67
9.54.6229.56.1849.56.4869.56.6089.56.67
10.04.7430.0
6.19
50.0
6.4870.06.60
90.0
6.67
10.54.8430.56.2150.5
6.49
70.56.6190.56.67
11.04.9331.06.22
51.0
6.4971.06.6191.06.68
11.55.0231.5
6.23
51.5
6.49
71.5
6.6191.56.68
12.0
5.10
32.06.24
52.06.50
72.06.61
92.0
6.68
12.55.1832.56.2552.56.5072.5
6.6192.56.68
13.0
5.25
33.06.26
53.06.51
73.06.62
93.0
6.68
13.55.3133.56.2753.56.5173.56.6293.56.68
14.0
5.37
34.06.28
54.06.51
74.06.6294.06.68
14.55.4334.5
6.29
54.56.5274.5
6.6294.56.68
15.05.4835.0
6.30
55.06.5275.0
6.6295.0
6.69
15.55.5235.5
6.30
55.56.5275.5
6.6395.5
6.69
16.0
5.57
36.06.31
56.06.53
76.06.63
96.06.69
16.55.6136.56.3256.56.5376.56.6396.5
6.69
17.0
5.65
37.06.33
57.06.53
77.06.6397.06.69
17.5
5.69
37.5
6.34
57.56.5477.5
6.6397.5
6.69
18.0
5.72
38.06.34
58.06.54
78.06.64
98.06.69
18.55.7538.56.3558.56.5478.5
6.6498.5
6.69
19.0
5.78
39.0
6.3659.0
6.55
79.0
6.64
99.06.69
19.55.8139.56.3759.56.5579.56.6499.56.70
20.0
5.84
40.06.3760.0
6.55
80.06.64100.06.70
2011–31 I.R.B.89August 1, 2011

North Dakota Low-Income
Housing Credit Disaster Relief
Notice 2011–60
The Internal Revenue Service is sus-
pending certain requirements under § 42
of the Internal Revenue Code for low-in-
come housing credit projects in the United
States to provide emergency housing re-
lief needed as a result of the devastation
causedbyfloodinginNorthDakotabegin-
ning on February 14, 2011. This relief is
being granted pursuant to the Service’s au-
thority under § 42(n) and § 1.42–13(a) of
the Income Tax Regulations.
BACKGROUND
On May 10, 2011, the President de-
clared a major disaster for the State of
North Dakota. This declaration was made
under the Robert T. Stafford Disaster
Relief and Emergency Assistance Act,
42 U.S.C. 5121et seq. Subsequently, the
Federal Emergency Management Agency
(FEMA) designated jurisdictions for
Individual Assistance. The State of North
Dakota has requested that the Service
allow owners of low-income housing
credit projects to provide temporary
housing in vacant units to individuals
who resided in jurisdictions designated for
Individual Assistance in North Dakota and
who have been displaced because their
residences were destroyed or damaged
as a result of the devastation caused by
the flooding. Based upon this request
and because of the widespread damage
to housing caused by the flooding,
the Service has determined that the
North Dakota Housing Finance Agency
(Agency) may provide approval to project
owners to provide temporary emergency
housing for displaced individuals in
accordance with this notice.
I. SUSPENSION OF INCOME
LIMITATIONS
The Service has determined that it is
appropriate to temporarily suspend certain
income limitation requirements under § 42
for certain qualified low-income projects.
The suspension will apply to low-income
housing projects approved by the Agency,
in which vacant units are rented to dis-
placed individuals. The Agency will de-
termine the appropriate period of tempo-
rary housing for each project, not to extend
beyond July 31, 2012 (temporary housing
period).
II. STATUS OF UNITS
A. Units in the first year of the credit
period
A displaced individual temporarily
occupying a unit during the first year of
the credit period under § 42(f)(1) will be
deemed a qualified low-income tenant
for purposes of determining the project’s
qualified basis under § 42(c)(1), and for
meeting the project’s 20–50 test or 40–60
test as elected by the project owner under
§ 42(g)(1). After the end of the temporary
housing period established by the Agency
(not to extend beyond July 31, 2012), a
displaced individual will no longer be
deemed a qualified low-income tenant.
B. Vacant units after the first year of the
credit period
During the temporary housing period
established by the Agency, the status of a
vacant unit (that is, market-rate or low-in-
come for purposes of § 42 or never previ-
ously occupied) after the first year of the
credit period that becomes temporarily oc-
cupied by a displaced individual remains
the same as the unit’s status before the
displaced individual moves in. Displaced
individuals temporarily occupying vacant
units will not be treated as low-income
tenants under § 42(i)(3)(A)(ii). However,
even if it houses a displaced individual, a
low-income or market rate unit that was
vacant before the effective date of this no-
tice will continue to be treated as a va-
cant low-income or market rate unit. Sim-
ilarly, a unit that was never previously oc-
cupied before the effective date of this no-
tice will continue to be treated as a unit
that has never been previously occupied
even if it houses a displaced individual.
Thus, the fact that a vacant unit becomes
occupied by a displaced individual will
not affect the building’s applicable frac-
tion under § 42(c)(1)(B) for purposes of
determining the building’s qualified basis,
nor will it affect the 20–50 test or 40–60
test of § 42(g)(1). If the income of oc-
cupants in low-income units exceeds 140
percent of the applicable income limita-
tion, the temporary occupancy of a unit by
a displaced individual will not cause ap-
plication of the available unit rule under
§ 42(g)(2)(D)(ii). In addition, the project
owner is not required during the temporary
housing period to make attempts to rent
to low-income individuals the low-income
units that house displaced individuals.
III. SUSPENSION OF
NON-TRANSIENT REQUIREMENTS
The non-transient use requirement of
§ 42(i)(3)(B)(i) shall not apply to any
unit providing temporary housing to a
displaced individual during the temporary
housing period determined by the Agency
in accordance with section I of this notice.
IV. OTHER REQUIREMENTS
All other rules and requirements of
§ 42 will continue to apply during the
temporary housing period established
by the Agency. After the end of the
temporary housing period, the appli-
cable income limitations contained in
§ 42(g)(1), the available unit rule un-
der § 42(g)(2)(D)(ii), the nontransient
requirement of § 42(i)(3)(B)(i), and the
requirement to make reasonable attempts
to rent vacant units to low-income individ-
uals shall resume. If a project owner offers
to rent a unit to a displaced individual after
the end of the temporary housing period,
the displaced individual must be certified
under the requirements of § 42(i)(3)(A)(ii)
and § 1.42–5(b) and (c) to be a qualified
low-income tenant. To qualify for the re-
lief in this notice, the project owner must
additionally meet all of the following re-
quirements:
(1) Major Disaster Area
The displaced individual must have
residedinaNorthDakotajurisdiction
designated for Individual Assistance by
FEMA as a result of flooding in North
Dakota beginning on February 14, 2011.
(2) Approval of the North Dakota Housing
Finance Agency
The project owner must obtain approval
from the Agency for the relief described
in this notice. The Agency will determine
the appropriate period of temporary hous-
ing for each project, not to extend beyond
July 31, 2012.
August 1, 2011902011–31 I.R.B.

(3) Certificationsand Recordkeeping
To comply with the requirements of
§ 1.42–5, project owners are required to
maintain and certify certain information
concerning each displaced individual tem-
porarily housed in the project, specifically
the following: name, address of damaged
residence, social security number, and a
statement signed under penalties of perjury
by the displaced individual that, because
of damage to the individual’s residence
in a North Dakota jurisdiction designated
for Individual Assistance by FEMA as
a result of the flooding beginning on
February 14, 2011, the individual requires
temporary housing. The owner must
notify the Agency that vacant units are
available for rent to displaced individuals.
The owner must also certify the date the
displaced individual began temporary oc-
cupancy and the date the project will dis-
continue providing temporary housing as
established by the Agency. The certifica-
tions and recordkeeping for displaced in-
dividuals must be maintained as part of
the annual compliance monitoring process
with the Agency.
(4) Rent Restrictions
Rents for the low-income units that
house displaced individuals must not ex-
ceed the existing rent-restricted rates for
the low-income units established under
§ 42(g)(2).
(5) Protection of Existing Tenants
Existing tenants in occupied low-in-
come units cannot be evicted or have their
tenancy terminated as a result of efforts to
provide temporary housing for displaced
individuals.
EFFECTIVE DATE
This notice is effective May 10, 2011
(the date of the President’s major disaster
declaration as a result of the flooding in
North Dakota beginning on February 14,
2011).
PAPERWORK REDUCTION ACT
The collection of information contained
in this notice has been reviewed and ap-
proved by the Office of Management and
Budget in accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–2213.
An Agency may not conduct or sponsor,
and a person is not required to respond
to, a collection of information unless the
collection of information displays a valid
OMB control number.
The collection of information in this no-
tice is in the section titled “OTHER RE-
QUIREMENTS” under “(3) Certifications
and Recordkeeping.” This information is
required to enable the Service to verify
whether individuals are displaced as a re-
sult of the devastation caused by flooding
in North Dakota beginning on February 14,
2011, and thus warrant temporary housing
in vacant low-income housing units. The
collection of information is required to ob-
tain a benefit. The likely respondents are
individuals and businesses.
The estimated total annual recordkeep-
ing burden is 125 hours.
The estimated annual burden per
recordkeeper is approximately 15 minutes.
The estimated number of recordkeepers is
500.
Books or records relating to a collection
of information must be retained as long
as their contents may become material to
the administration of the internal revenue
law. Generally, tax returns and tax return
information are confidential, as required
by 26 U.S.C. 6103.
DRAFTING INFORMATION
The principal author of this notice is
David Selig of the Office of the Associate
Chief Counsel (Passthroughs and Special
Industries). For further information
regarding this notice, contact Mr. Selig at
(202) 622–3040 (not a toll free call).
Continuing Education
Providers
Notice 2011–61
Purpose
This notice invites public comments
regarding the process for individuals
and entities to be approved by the In-
ternal Revenue Service as continuing
education providers. On June 3, 2011,
the Treasury Department and the IRS
published final regulations (T.D. 9527,
2011–27 I.R.B. 1 [76 FR 32286]) under
31 CFR Part 10 (Circular 230) that require
registered tax return preparers to complete
continuing education offered by qualified
continuing education providers. Enrolled
agents and enrolled retirement plan agents
also are required to complete continuing
education under Circular 230. Section
10.9(a)(1) of Circular 230 provides that
continuing education providers must be:
(i) An accredited educational institu-
tion;
(ii) Recognized for continuing educa-
tion purposes by the licensing body of any
State, territory, or possession of the United
States, including a Commonwealth, or the
District of Columbia;
(iii) Recognized and approved by a
qualifying organization as a provider of
continuing education on subject matters
within section 10.6(f) of Circular 230; or
(iv) Recognized by the Internal Rev-
enue Service as a professional organiza-
tion, society, or business whose programs
include offering continuing professional
education opportunities in subject matters
within section 10.6(f) of Circular 230.
Section 10.6(f) provides criteria that
continuing education programs must meet
to qualify as continuing education credit
for enrolled agents, enrolled retirement
plan agents, and registered tax return
preparers, including that a qualifying con-
tinuing education course generally must
enhance professional knowledge in Fed-
eral taxation or Federal tax related matters,
must be consistent with the Code and ef-
fective tax administration, and must be
conducted by a qualified instructor. See
Circular 230 § 10.6(f)(1)-(2).
The IRS is developing procedures and
standards to supplement sections 10.6 and
10.9 for individuals and entities seeking
to be recognized and approved as con-
tinuing education providers under section
10.9(a)(1)(iv). The IRS is also develop-
ing the standards and procedures for or-
ganizations (accrediting organizations) to
become qualified to accredit other indi-
viduals and entities as continuing educa-
tion providers under section 10.9(a)(1)(iii)
after those individuals or entities follow
applicable procedures prescribed by the
IRS. The IRS seeks the input of education
providers, tax return preparers, the asso-
ciated industry and consumer groups, and
taxpayers on the procedures and standards
that will govern the approval process for
2011–31 I.R.B.91August 1, 2011

continuing education providers. The infor-
mation collected will assist the IRS in de-
veloping these standards and the process
for those individuals and entities who seek
IRS approval as a continuing education
provider.
Request for public comments on
procedures and standards applicable
to the continuing education provider
approval process
In addition to generalcomments regard-
ing the procedures and standards to be
implemented with respect to the approval
process, the IRS is particularly interested
in any comments regarding:
Continuing Education Providers
•The information that an applicant must
submit to be approved as a continu-
ing education provider under section
10.9(a)(1)(iv) and assigned a continu-
ing education provider number;
•The criteria that the IRS should use to
evaluate whether a continuing educa-
tion provider applicant meets the re-
quirements of Circular 230;
•The criteria that the IRS should use
to evaluate whether a continuing ed-
ucation provider’s programs meet the
standards for continuing education
programs in Circular 230;
•The information that a continuing ed-
ucation provider must provide to re-
new its status as a continuing education
provider;
•The frequency and month/time of year
that continuing education providers
must renew their status with the IRS;
•The level of detail that continuing ed-
ucation providers must provide to the
IRS regarding changes in continuing
education programs offered and the
mechanism for notifying the IRS about
these changes;
•The information that the IRS should
publish so that tax return preparers
may identify the individuals and enti-
ties approved as continuing education
providers, and how often the publica-
tion should be updated for the infor-
mation to be considered current;
•The approximate date by which con-
tinuing education providers should re-
ceive approval from the IRS to be able
to offer continuing education programs
by January 1, 2012;
Accrediting Organizations
•The criteria that the IRS should use
to determine which accrediting orga-
nizations have minimum education
standards comparable to those set forth
in Circular 230 in order to accredit
an individual or entity as a continu-
ing education provider under section
10.9(a)(1)(iii) for approval after the
individual or entity follows applicable
procedures prescribed by the IRS;
•The procedure that organizations must
utilize to be designated as accrediting
organizations and the requirements
that organizations approved as ac-
crediting organizations must follow to
maintain their status;
•The reports, if any, that accrediting
organizations must provide to the
IRS regarding continuing education
providers approved by the accrediting
organization;
•The records, if any, that accrediting
organizations must maintain and how
long these records must be maintained;
•The information that the IRS should
publish so that continuing education
providers may identify accrediting or-
ganizations, and how often this infor-
mation should be updated to be consid-
ered current;
•Any additional information that the
IRS should consider when developing
procedures and standards applicable
to the continuing education provider
approval process.
Written comments should be sent to:
Internal Revenue Service
Attn: CC:PA:LPD:PR
(Notice 2011–61)
Room 5205
P.O. Box 7604
Ben Franklin Station
Washington, D.C. 20044
or hand-delivered Monday through Friday
between the hours of 8 a.m. and 4 p.m. to:
Courier’s Desk
Internal Revenue Service
Attn: CC:PA:LPD:PR
(Notice 2011–61)
1111 Constitution Avenue, N.W.
Washington, D.C. 20224
Alternatively,commentsmay
be submitted electronically via
e-mail to the following address:
Notice.Comments@irscounsel.treas.gov.
“Notice 2011–61” should be in the subject
line of the e-mail. All comments will
be available for public inspection and
copying. Comments are requested by
August 17, 2011.
Drafting Information
The principal author of this no-
tice is Matthew D. Lucey of the
Office of Associate Chief Counsel
(Procedure & Administration). For further
information regarding this notice, contact
Matthew D. Lucey at (202) 622–4940 (not
a toll-free call).
August 1, 2011922011–31 I.R.B.

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the ef-
fect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is be-
ingextendedtoapplytoavariationofthe
fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that the
same principle also applies to B, the earlier
ruling is amplified. (Compare withmodi-
fied,below).
Clarifiedis used in those instances
where the language in a prior ruling is be-
ing made clear because the language has
caused, or may cause, some confusion.
It is not used where a position in a prior
ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
beingstatedinanewruling.
Supersededdescribes a situation where
the new ruling does nothing more than re-
state the substance and situation of a previ-
ously published ruling (or rulings). Thus,
the term is used to republish under the
1986 Code and regulations the same po-
sition published under the 1939 Code and
regulations. The term is also used when
it is desired to republish in a single rul-
ing a series of situations, names, etc., that
were previously published over a period of
time in separate rulings. If the new rul-
ing does more than restate the substance
of a prior ruling, a combination of terms
is used. For example,modifiedandsu-
persededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is self
contained. In this case, the previously pub-
lished ruling is first modified and then, as
modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names in
subsequent rulings. After the original rul-
ing has been supplemented several times, a
new ruling may be published that includes
the list in the original ruling and the ad-
ditions, and supersedes all prior rulings in
the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of cases
in litigation, or the outcome of a Service
study.
Abbreviations
The fol
lowing abbreviations in current use
and for
merly used will appear in material
publis
hedintheBulletin.
A—Individual.
Acq.—A
cquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank
.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cu
mulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Coo
perative.
Ct.D.—Court Decision.
CY—County.
D—Decede
nt.
DC—Dummy Corporation.
DE—Donee.
Del. Order
—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Emp
loyer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduc
iary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Fo
reign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Fed
eral Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grante
e.
GP—General Partner.
GR—Grantor.
IC—Insura
nce Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited
Partner.
LR—Lessor.
M—Minor.
Nonacq.—No
nacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Persona
l Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Pa
rtnership.
PTE—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Re
al Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsi
diary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target
Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Trans
feree.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpay
er.
TR—Trust.
TT—Trustee.
U.S.C.—Uni
ted States Code.
X—Corporation.
Y—Corporation.
Z—Corporat
ion.
2011–31 I.R.B.iAugust 1, 2011

Numerical Finding List
1
Bulletins 2011–27 through 2011–31
Announcements:
2011-37, 2011-27 I.R.B.37
2011-38, 2011-28 I.R.B.45
2011-39, 2011-28 I.R.B.46
2011-40, 2011-29 I.R.B.56
2011-41, 2011-28 I.R.B.47
Notices:
2011-47, 2011-27 I.R.B.34
2011-50, 2011-27 I.R.B.35
2011-51, 2011-27 I.R.B.36
2011-52, 2011-30 I.R.B.60
2011-54, 2011-29 I.R.B.53
2011-55, 2011-29 I.R.B.53
2011-56, 2011-29 I.R.B.54
2011-57, 2011-31 I.R.B.84
2011-58, 2011-31 I.R.B.85
2011-59, 2011-31 I.R.B.86
2011-60, 2011-31 I.R.B.90
2011-61, 2011-31 I.R.B.91
Proposed Regulations:
REG-137128-08, 2011-28 I.R.B.43
REG-101352-11, 2011-30 I.R.B.75
Revenue Procedures:
2011-38, 2011-30 I.R.B.66
2011-39, 2011-30 I.R.B.68
Revenue Rulings:
2011-14, 2011-27 I.R.B.31
2011-15, 2011-30 I.R.B.57
Treasury Decisions:
9527, 2011-27 I.R.B.1
9528, 2011-28 I.R.B.38
9529, 2011-30 I.R.B.57
9530, 2011-31 I.R.B.77
9531, 2011-31 I.R.B.79
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2011–1 through 2011–26 is in Internal Revenue Bulletin
2011–26, dated June 27, 2011.
August 1, 2011ii2011–31 I.R.B.

Finding List of Current Actions on
Previously Published Items
1
Bulletins 2011–27 through 2011–31
Notices:
2010-23
Modified and supplemented by
Notice 2011-54, 2011-29 I.R.B.53
2010-88
Modified by
Ann. 2011-40, 2011-29 I.R.B.56
Proposed Regulations:
REG-118761-09
Hearing scheduled by
Ann. 2011-38, 2011-28 I.R.B.45
Revenue Procedures:
2008-24
Modified and superseded by
Rev. Proc. 2011-38, 2011-30 I.R.B.66
2008-32
Superseded by
Rev. Proc. 2011-39, 2011-30 I.R.B.68
Revenue Rulings:
58-225
Obsoleted by
Rev. Rul. 2011-15, 2011-30 I.R.B.57
1
A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2011–1 through 2011–26 is in Internal Revenue Bulletin 2011–26, dated June 27, 2011.
2011–31 I.R.B.iiiAugust 1, 2011

August 1, 20112011–31 I.R.B.

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