Internal Revenue Bulletin 2015-24 (PDF rendition): IRS Notices

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# INTERNAL REVENUE BULLETIN

IRS

Bulletin No. 2015-24
June 15, 2015

## HIGHLIGHTS OF THIS ISSUE

These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.

## INCOME TAX

Rev. Proc. 2015-33, page 1067.

This revenue procedure corrects or clarifies several items in
Rev. Proc. 2015-13, 2015-13 I.R.B. 419, regarding certain
procedures for changing a method of accounting. Specifically,
this revenue procedure (1) modifies the transition rules under
section 15.02(1)(a)(ii) of Rev. Proc. 2015-13 to provide addi-
tional time to file Forms 3115 under Rev. Proc. 2011-14,
2011-4 I.R.B. 330; (2) clarifies when the automatic change
procedures do not apply if the taxpayer engages, within the
requested year of change, in a transaction to which § 381(a)
applies; (3) clarifies the meaning of "three-month window" un-
der section 8.02(1)(a)(ii) of Rev. Proc. 2015-13 for a taxpayer
with a 52-53 week taxable year; and (4) discusses a clarifica-
tion to the applicable Ogden, UT, address provided in section
9.05 of Rev. Proc. 2015-1, 2015-1 I.R.B. 1.

### Notice 2015-40, page 1057.

This notice requests comments regarding the effect on taxpay-
ers' methods of accounting of new financial accounting reve-
nue recognition standards announced by the Financial Account-
ing Standards Board and the International Accounting
Standards Board. Comments should be submitted by Septem-
ber 16, 2015.

### Notice 2015-41, page 1058.

This notice provides guidance under sections 1(h) and 852 of
the Code to regulated investment companies and their share-
holders on the computation and treatment of capital gain
dividends.

## EMPLOYEE PLANS

Rev. Proc. 2015-32, page 1063.

This revenue procedure establishes a permanent program pro-
viding administrative relief to the plan administrators and plan
sponsors of certain retirement plans for failing to timely comply
with the annual reporting requirements of sections 6047(e),
6058, and 6059. This permanent program replaces the pilot
program established by Revenue Procedure 2014-32,
2012-23 I.R.B. 1073.

## EXEMPT ORGANIZATIONS

Announcement 2015-16, page 1069.

Correction of Announcement 2015-14, Revocation of IRC
501(c)(3) Organizations for failure to meet the code section
requirements.

## The IRS Mission

Provide America's taxpayers top-quality service by helping
them understand and meet their tax responsibilities and en-
force the 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.

It is the policy of the Service to publish in the Bulletin all
substantive rulings necessary to promote a uniform application
of the tax laws, including all rulings that supersede, revoke,
modify, or amend any of those previously published in the
Bulletin. All published rulings apply retroactively unless other-
wise indicated. Procedures relating solely to matters of internal
management are not published; however, statements of inter-
nal practices and procedures that affect the rights and duties
of taxpayers are published.

Revenue rulings represent the conclusions of the Service on
the application of the law to the pivotal facts stated in the
revenue ruling. In those based on positions taken in rulings to
taxpayers or technical advice to Service field offices, identify-
ing details and information of a confidential nature are deleted
to prevent unwarranted invasions of privacy and to comply with
statutory requirements.

Rulings and procedures reported in the Bulletin do not have the
force and effect of Treasury Department Regulations, but they
may be used as precedents. Unpublished rulings will not be
relied on, used, or cited as precedents by Service personnel in
the disposition of other cases. In applying published rulings and
procedures, the effect of subsequent legislation, regulations,
court decisions, rulings, and procedures must be considered,
and Service personnel and others concerned are cautioned

against reaching the same conclusions in other cases unless
the facts and circumstances are substantially the same.

The Bulletin is divided into four parts as follows:

### Part I .- 1986 Code.

This part includes rulings and decisions based on provisions of
the Internal Revenue Code of 1986.

### Part II .- Treaties and Tax Legislation.

This part is divided into two subparts as follows: Subpart A, Tax
Conventions and Other Related Items, and Subpart B, Legisla-
tion and Related Committee Reports.

Part III .- Administrative, Procedural, and Miscellaneous.
To the extent practicable, pertinent cross references to these
subjects are contained in the other Parts and Subparts. Also
included in this part are Bank Secrecy Act Administrative Rul-
ings. Bank Secrecy Act Administrative Rulings are issued by
the Department of the Treasury's Office of the Assistant Sec-
retary (Enforcement).

### Part IV .- Items of General Interest.

This part includes notices of proposed rulemakings, disbar-
ment and suspension lists, and announcements.

The last Bulletin for each month includes a cumulative index for
the matters published during the preceding months. These
monthly indexes are cumulated on a semiannual basis, and are
published in the last Bulletin of each semiannual period.

The contents of this publication are not copyrighted and may be reprinted freely. A citation of the Internal Revenue Bulletin as the source would be appropriate.

## Part III. Administrative, Procedural, and Miscellaneous

Request for Comments
Regarding New Financial
Accounting Standards
Board and International
Accounting Standards
Board Revenue Recognition
Standards

Notice 2015-40

### PURPOSE

This notice invites comments regard-
ing the effect on taxpayers' methods of
accounting of new financial accounting
revenue recognition standards, titled
"Revenue from Contracts with Custom-
ers," announced by the Financial Ac-
counting Standards Board (FASB) and the
International Accounting Standards Board
(IASB).

### BACKGROUND

Section 446(a) of the Internal Revenue
Code and § 1.446-1(a)(1) of the Income
Tax Regulations provide that taxable in-
come is computed under the method of
accounting the taxpayer regularly uses to
compute income in keeping the taxpayer's
books. Section 1.446-1(a)(4) requires a
taxpayer to maintain accounting records
that include the taxpayer's regular books
of account and other records and data nec-
essary to support the entries on the tax-
payer's books of account and on the tax-
payer's return.

Under § 451, a taxpayer using an ac-
crual method of accounting accrues in-
come when the right to receive income is
fixed and the amount can be determined
with reasonable accuracy (the all events
test). See § 1.451-1(a).

In a joint announcement on May 28,
2014, the FASB and the IASB announced
new financial accounting standards for
recognizing revenue (new standards). See
FASB Update No. 2014-09, "Revenue
from Contracts with Customers (Topic
606)," and IASB International Financial
Reporting Standard (IFRS) 15, "Revenue
from Contracts with Customers."

The new standards for the timing of
income for financial accounting purposes

may affect the timing of income for tax
accounting purposes for many taxpayers,
such as taxpayers (1) presently using the
percentage of completion method, (2) de-
riving income from the provision of ser-
vices, (3) engaging in bill and hold trans-
actions for the sale of goods, (4)
accounting for sales and returns of goods,
and (5) earning income from warranties.
The new standards may affect some in-
dustries more than others. Commenters on
the new standards have noted that the soft-
ware, entertainment, manufacturing, and
construction industries may be particu-
larly affected because the new standards
may change the timing of income recog-
nition for financial accounting purposes
significantly for these industries.

Accounting method changes for fed-
eral income tax purposes require the per-
mission of the Internal Revenue Service
(IRS). The new standards raise a number
of substantive and procedural issues for
the IRS, including whether the new stan-
dards are permissible methods of account-
ing for federal income tax purposes, the
types of accounting method change re-
quests that will result from adopting the
new standards, and whether the current
procedures for obtaining IRS consent to
change a method of accounting are ade-
quate to accommodate those requests. See
section 2.03(1) & (2) of Rev. Proc. 2015-
13, 2015-5 I.R.B. 419.

## REQUEST FOR COMMENTS

Adoption of the new standards may
create or increase differences between fi-
nancial accounting and tax accounting
rules. The Treasury Department and the
IRS are considering whether to issue guid-
ance on the new standards and request
public comments on the scope, substance,
and form of guidance needed.

Comments are requested on issues of
conformity between the new standards
and the Code. Specific comments are re-
quested on the following issues:

1\. To what extent do the new stan-
dards deviate from the require-
ments of § 451? How may they
affect deferral of income?

2\. What industry and/or transaction-
specific issues may arise as a result of

the new standards that might be ad-
dressed in future guidance?

3\. What types of changes in methods of
accounting do taxpayers anticipate
requesting?

4\. Do taxpayers anticipate requesting
changes in methods of accounting
prior to the effective dates of the new
standards?

5\. Should taxpayers be required to use
the automatic consent accounting
method change procedures or the ad-
vance consent procedures to request
permission to change a method of
accounting under the new standards,
and why?

6\. Which accounting method changes
under the new standards, if any,
should be allowed using a cut-off
method instead of a § 481(a) adjust-
ment, and why?

7\. Will advance or automatic consent
procedures or other procedural guid-
ance (such as Rev. Proc. 2004-34,
2004-22 I.R.B. 991) need to be mod-
ified and if so, how?

8\. What transition procedures may be
helpful?

9\. What related accounting method
changes do taxpayers anticipate re-
questing that may appropriately be
made on a single Form 3115, Appli-
cation for Change in Accounting
Method?

Comments should be submitted in
writing on or before September 16, 2015.
Comments should be sent to the following
address:

Internal Revenue Service
CC:PA:LPD:PR (Notice 2015-40)
P.O. Box 7604
Ben Franklin Station
Washington, DC 20044

Comments may be hand delivered to:

Courier's Desk
Internal Revenue Service
1111 Constitution Avenue, NW
Washington, DC 20224
CC:PA:LPD:PR (Notice 2015-40)

Comments also may be sent electronically
to notice.comments@irscounsel.treas.gov.

Please include "Notice 2015-40" in the
subject line.

All comments will be available for
public inspection.

## DRAFTING INFORMATION

The principal author of this notice is
Charles Gorham of the Office of Associ-
ate Chief Counsel (Income Tax & Ac-
counting). For further information regard-
ing this notice contact Mr. Gorham at
(202) 317-5091 (not a toll-free number).

## Capital Gain Distributions of Regulated Investment Companies

### Notice 2015-41

#### SECTION 1. PURPOSE

This notice provides guidance to regu-
lated investment companies ("RICs") and
their shareholders under §§ 1(h) and
852(b) of the Internal Revenue Code con-
cerning capital gain dividends of RICs.
Notice 97-64, 1997-2 C.B. 323, de-
scribed regulations to be issued under
§ 1(h) for RICs and real estate investment
trusts ("REITs"). Notice 2004-39, 2004-1
C.B. 982, provided related guidance on the
effect of subsequent changes to § 1(h). This
notice addresses how changes to § 852
made by the Regulated Investment Com-
pany Modernization Act of 2010 (the “RIC
Modernization Act"), Pub. L. No. 111-325,
124 Stat. 3537, affect the bifurcation adjust-
ment described in Notice 97-64 and other
aspects of the computation of capital gain
dividends of RICs.1 This notice does not
address REITs.

### SECTION 2. BACKGROUND

For individuals, estates, and trusts,
§ 1(h) imposes differing rates of tax on net
capital gains depending on the type of

transaction in which the gains arise and on
the taxable income of the taxpayer. The
types of transaction in which a capital
gain arises may cause the gain to fall into
one of three rate groups: a 28-percent
group (generally, gains from collectibles),
a 25-percent group (generally, unrecap-
tured section 1250 gain), and a 20-percent
group (most other net capital gain). Gains
from transactions in the 20-percent group
may be taxed at a 20-percent rate, a 15-
percent rate, or a 0-percent rate, depend-
ing on the taxpayer's taxable income.2
Certain gains from the sale or exchange of
qualified small business stock held for
more than five years are subject to a par-
tial exclusion under § 1202(a) and a 28-
percent rate on the non-excluded portion
under § 1(h)(7).

The Secretary has authority to issue
regulations concerning the application of
§ 1(h) to sales and exchanges by (and of
interests in) pass-thru entities, including
RICs. See § 1(h)(9).

Under § 852(b)(3), a RIC that has net
capital gain for a taxable year may distrib-
ute capital gain dividends to its sharehold-
ers. A capital gain dividend is a dividend,
or part thereof, that is properly reported as
such by the RIC in written statements
furnished to its shareholders. In general, a
capital gain dividend paid by a RIC is
treated by the shareholders that receive it
as a gain from the sale or exchange of a
capital asset held for more than one year.

If a RIC's net capital gain for a taxable
year exceeds its deduction for dividends
paid determined with reference to capital
gain dividends only, then the RIC is sub-
ject to tax as determined under § 1201(a)
on that excess. See § 852(b)(3)(A). Under
§ 852(b)(3)(D), the RIC may designate an
amount of "undistributed capital gains"
with respect to its shares. The RIC's des-
ignation must be in a written notice
mailed to the RIC's shareholders prior to
the expiration of 60 days after the close of
the RIC's taxable year. As a result of this
designation, all of the following occur:

. Each shareholder of the RIC at the
close of the RIC's taxable year must
include the shareholder's designated
amount in computing the sharehold-
er's long-term capital gain for the
shareholder's taxable year in which
the RIC's taxable year ends. The
amount so includable, however,
must not exceed the portion of the
amount subjected to tax in the RIC's
hands that the shareholder would
have received if, rather than subject-
ing amounts to tax under
§ 852(b)(3)(A), the RIC had distrib-
uted those amounts as capital gain
dividends to its shareholders at the
close of its taxable year.

· The shareholder is treated as having
paid an amount of tax equal to the tax
that the RIC was required to pay on the
designated amount.

· The shareholder increases the basis of
the relevant shares by the difference
between the shareholder's designated
amount and the amount of tax that
both was paid by the RIC and is
deemed to have been paid by the
shareholder.

If a RIC reports amounts as capital gain
dividends to shareholders, the reports are
ineffective to the extent that the aggregate
amounts so reported exceed the RIC's net
capital gain for the taxable year.3 See
§ 852(b)(3)(C). If a RIC has two or more
classes of stock and reports to one class a
type of dividend that exceeds that class's
proportionate share of the corresponding
type of income, then the report is ineffec-
tive for tax purposes to the extent that the
reported amount exceeds that class's pro-
portionate share. See Rev. Rul. 89-81,
1989-1 C.B. 226. This holding applies
both to capital gain dividends and to des-
ignations of undistributed capital gains.

Prior to the amendment of § 852 by the
RIC Modernization Act, in computing net
capital gain for purposes of determining
the maximum capital gain dividends for a
taxable year, most RICs were required by

1Some relevant provisions of § 852 that were amended by the RIC Modernization Act were further amended by technical corrections in the Tax Increase Prevention Act of 2014, Pub. L.
No. 113-295, 128 Stat. 4010. The descriptions in this notice of the affected provisions generally treat the corrections as if they were made at the time of the enactment of the RIC
Modernization Act.

2See § 1(h). The description of the rate groups reflects amendments to § 1(h) after the publication of Notice 97-64. These post-1997 amendments were contained in the Jobs and Growth
Tax Relief Reconciliation Act of 2003 (the "JGTRRA"), Pub. L. No. 108-27, 117 Stat. 752, and the American Taxpayer Relief Act of 2012 (the "ATRA"), Pub. L. No. 112-240, 123 Stat.
2313.

3The RIC's net capital gain for a taxable year determines the amount of capital gain dividends that may be treated as distributed with respect to that taxable year. Thus, the RIC's net capital
gain for the taxable year affects not only dividends that are treated by shareholders as paid during the year but also dividends governed by either § 855 or § 860.

§ 852(b)(3)(C) to disregard any net capital
loss or net long-term capital loss attribut-
able to transactions after October 31 of the
taxable year. Any such post-October net
capital loss or net long-term capital loss
was treated for those purposes as arising
on the first day of the next taxable year.
For purposes of determining a RIC's tax-
able income, however, § 1.852-11(f) of
the Income Tax Regulations provided for
elective deferral of any portion of the
post-October net capital loss or net long-
term capital loss.

Notice 97-64 describes rules under
which a RIC may make additional desig-
nations of capital gain dividends and un-
distributed capital gains to reflect the var-
ious rate groups under § 1(h). That notice
also establishes a bifurcation adjustment
under which a RIC is required in certain
circumstances to bifurcate its taxable year
into a pre-November portion and a post-
October portion for purposes of determin-
ing the appropriate additional designa-
tions of capital gain dividends that the
RIC may make with respect to that taxable
year. Gains and losses are netted sepa-
rately for each portion of the taxable year.
The purpose of the bifurcation adjustment
is to prevent post-October losses from
causing pre-November gains to be rechar-
acterized as gains from another rate group
after the RIC has-

· Taken the pre-November gains into
account in a calculation of the re-
quired distribution described in
§ 4982(b);

· Made one or more late-December dis-
tributions to its shareholders that ap-
peared necessary under that calcula-
tion to avoid excise tax under
§ 4982(a); and

· Made one or more reports to share-
holders regarding those distributions
reflecting the conclusions of the calcu-
lation.

Notice 2004-39 explains in part how
changes to § 1(h) made by the JGTRRA
apply to certain RIC capital gain divi-
dends. Notice 2004-39 provides that the
rules described in Notice 97-64 continue
to apply to RIC capital gain dividends,
subject to appropriate modifications to

take into account later changes to § 1(h).
The changes to § 1(h) made by the ATRA
generally did not affect the conclusions in
Notice 2004-39.

Sections 871(k)(2) and 881(e) allow a
RIC to report as short-term capital gain
dividends certain dividends paid to non-
resident aliens and foreign corporations.4
Prior to the amendment of § 871(k)(2) by
the RIC Modernization Act, a RIC was
required to determine the amount of short-
term capital gain dividends for a taxable
year without regard to any net capital loss
or net short-term capital loss attributable
to transactions after October 31 of the
year. Any such net capital loss or net short-
term capital loss was treated as arising on
the first day of the next taxable year.

Section 308 of the RIC Moderniza-
tion Act made two significant changes
affecting the deferral by a RIC of capital
losses arising in the portion of a taxable
year after October 31. First, it made the
deferral of eligible losses elective for all
purposes. Under § 852(b)(8)(A), a RIC
may elect to defer any portion of its
eligible losses, and that election applies
for purposes of computing both the
RIC's taxable income and the maximum
amounts the RIC may distribute as cap-
ital gain dividends under § 852(b)(3)(C)
and short-term capital gain dividends
under §§ 871(k)(2)(C) and 881(e)(2).
See § 852(b)(8)(A). Second, the RIC
Modernization Act expanded the cate-
gory of capital losses that may be de-
ferred. A RIC's elective deferral applies
to its "late year ordinary loss," which
includes any "post-October capital
loss." A post-October capital loss in-
cludes not only a net capital loss, or net
long-term capital loss, attributable to the
portion of the taxable year after October
31, but also a net short-term capital loss
attributable to that portion of the taxable
year. See § 852(b)(8)(C).

In describing this provision, the Staff
of the Joint Committee on Taxation ex-
plained that the principles of § 1.852-11
are to apply to the elective deferral of a
qualified late-year loss, which includes a
post-October capital loss, subject to any
subsequent change in the regulations. See
Staff of Joint Committee on Taxation,

General Explanation of Tax Legislation
Enacted in the 111th Congress (JCS-2-
11), March 2011, at 682 n.1913. Section
1.852-11(f) provides that, if a RIC elects
to defer all or a portion of a post-October
capital loss, its taxable income for the
taxable year in which that loss arose is
determined by including none of the cap-
ital gains or losses that were taken into
account in computing the post-October
capital loss, except for capital losses that
equal in the aggregate the amount of the
post-October capital loss that is not de-
ferred. Any such non-deferred loss is
treated as consisting first of any short-
term capital losses to the extent thereof
and then of any long-term capital losses
taken into account in computing the post-
October capital loss.

## SECTION 3. REPORTING OR DESIGNATION OF RATE GROUPS

This notice modifies the reporting and
designation rule described in section 3 of
Notice 97-64 (which that notice called a
"designation rule") to require (rather than
merely permit) a RIC that reports capital
gain dividends or designates undistributed
capital gains to indicate a rate group for its
capital gain dividends or undistributed
capital gains. This notice also modifies the
reporting and designation rule to reflect
both changes in capital gains rates under
§ 1(h) since Notice 97-64 was published
and changes that the RIC Modernization
Act made to the procedures for capital
gain dividends under § 852(b).

If a RIC reports a dividend as a capital
gain dividend for a taxable year in written
statements furnished to its shareholders,
as described in § 852(b)(3)(C), the RIC
must also report in these statements the
amounts of the dividend that constitute a
"28% rate gain distribution," an "unrecap-
tured section 1250 gain distribution," a
"section 1202 gain distribution," and a
"20% rate gain distribution." Similarly, if
a RIC designates an amount as undistrib-
uted capital gains for a taxable year in a
written notice mailed to its shareholders,
as described in § 852(b)(3)(D), the RIC
must also designate in the written notice
the amounts of the undistributed capital
gains that the shareholders must include

4Under the current definition in § 871(k)(2)(C) (which applies for purposes of §§ 871(k)(2) and 881(e), the term "short-term capital gain dividend" does not include a dividend with respect
to a RIC's taxable year beginning after December 31, 2014.

as a 28% rate gain distribution, an unre-
captured section 1250 gain distribution, a
section 1202 gain distribution, or a 20%
rate gain distribution.

The written statements or designations
may be made in some circumstances on
Internal Revenue Service forms. As of the
date of this notice, Form 1099-DIV (div-
idends and distributions) and Form 2439
(undistributed capital gains) provide
boxes corresponding both to total capital
gain dividends (total long-term capital
gain on Form 2439) and to all but one of
the possible components of that total. That
is, there are boxes for unrecaptured sec-
tion 1250 gain, for 28% rate gain, and for
section 1202 gain, but not for 20% rate
gain. If the written statements or designa-
tions described in this section 3 are made
on Form 1099-DIV or Form 2439 (or
successor forms that similarly provide
boxes for reporting total capital gain div-
idends or total undistributed capital gain
and for reporting all but one of the possi-
ble component types), then any amount of
capital gain dividend or undistributed cap-
ital gain that is reported in the total and
that is not reported in one of the compo-
nent boxes is deemed to be reported or
designated by the RIC as 20% rate gain
(or whichever component type is missing
from any such successor form). These
deemed reports and designations are sub-
ject to the same limits as written reports
and designations of rate groups. If the
information on the forms is incomplete or
incorrect, penalties may apply under
§ 6721 (failure to file correct information
returns) and § 6722 (failure to furnish
correct payee statements).

Reports (including deemed reports)
and designations are ineffective for pur-
poses of determining the rate group for a
capital gain dividend or undistributed cap-
ital gains to the extent that the amounts
reported or designated exceed the limits
described in section 2 or section 5 of this
notice. An amount that otherwise meets
the requirements to be a capital gain div-
idend (or undistributed capital gain) does
not fail to be a capital gain dividend (or
undistributed capital gain) solely because
of a failure by the RIC to make an effec-

tive report (or designation) of a rate group
for the amount.

## SECTION 4. SHAREHOLDER TREATMENT

Section 4 of Notice 97-64 continues to
apply with appropriate modifications to
take into account changes to § 1(h). Thus,
a shareholder that receives a capital gain
dividend from a RIC treats the dividend as
follows:

· A 20% rate gain distribution is an
amount of long-term capital gain in
the 20-percent group (which may be
taxed at a 20-percent rate, a 15-
percent rate, or a 0-percent rate, de-
pending on the shareholder's taxable
income);

· An unrecaptured section 1250 gain
distribution is an amount of long-term
capital gain in the 25-percent group;

· A 28% rate gain distribution is an
amount of long-term capital gain in the
28-percent group; and

· A section 1202 gain distribution gen-
erally is an amount of gain from a
sale or exchange of qualified small
business stock held for more than
five years, subject to additional re-
quirements and rules under
§ 1202(g).

## SECTION 5. LIMITATIONS ON DESIGNATIONS OF CAPITAL GAIN DIVIDENDS

The limitations in section 5 of Notice
97-64 continue to apply, with appropriate
modifications to take into account changes
to § 1(h) and changes described in section
3 of this notice to the designation and
reporting requirements.

Reports (or designations) of capital
gain dividends (or undistributed capital
gain) for a taxable year are effective only
to the extent that the aggregate amounts
reported or designated do not exceed ap-
plicable limitations.5 The additional re-
ports and designations described in sec-
tion 3 of this notice must be consistent
with the principles of Revenue Ruling
89-81 and must not together exceed the
following limits.

A RIC determines the maximum
amount that may be reported or desig-
nated for each rate group by performing
the computation required by § 1(h) (with
the modifications described in this notice)
as if the RIC were an individual whose
ordinary income is subject to a marginal
tax rate of 39.6 percent. In this determi-
nation-

· The maximum 20% rate gain is equal
to the amount that is multiplied by
20% in the computation;

· The maximum unrecaptured section
1250 gain is equal to the amount that is
multiplied by 25% in performing the
computation; and

· The maximum 28% rate gain is the
RIC's net capital gain for the taxable
year minus the sum of the maximum
unrecaptured section 1250 gain and
the maximum 20% rate gain.

The computation under § 1(h) is mod-
ified in the following three ways:

· The RIC disregards qualified dividend
income;

· The RIC must first give effect to any
election under § 852(b)(8) to treat all
or a portion of a post-October capital
loss as arising on the first day of the
next taxable year, as described in sec-
tion 6 of this notice; and

· The RIC must give effect to the bifur-
cation adjustment described in section
7 of this notice, if applicable.

As described in section 8 of Notice
97-64, which continues to apply, the
maximum distributable section 1202 gain
for each issuer is calculated separately
from the limitations on the other classes of
capital gain dividends and may not in the
aggregate exceed the RIC's net capital
gain. Section 1202 gain distributions are
subject to the limitations provided by
§ 1202(g).

## SECTION 6. DEFERRAL UNDER § 852(b)(8)

The deferral adjustment described in
section 6 of Notice 97-64 was a statutory
requirement that section 308 of the RIC
Modernization Act replaced with an elec-

5In addition to the limitations applicable to additional reports or designations (which are discussed in this section 5), the basic report or designation as a capital gain dividend or undistributed
capital gain is limited by the maximum amounts set forth in § 852(b)(3)(C) and § 852(b)(3)(D), respectively.

tive deferral regime for taxable years be-
ginning after December 22, 2010.

Under § 852(b)(8)(A), a RIC generally
may elect to treat any portion of a quali-
fied late-year loss for a taxable year as
arising on the first day of the following
taxable year for all purposes of the Code.
Under § 852(b)(8)(B), a qualified late-
year loss includes a post-October capital
loss. Under § 852(b)(8)(C), a post-
October capital loss means any net capital
loss attributable to the portion of the tax-
able year after October 31, or if there is no
such loss, any net long-term capital loss or
net short-term capital loss attributable to
that portion of the taxable year.

If a RIC elects under § 852(b)(8)(A) to
treat all or a portion of its post-October
capital loss as arising on the first day of
the following taxable year, then for all
purposes of the Code, all gains and losses
taken into account in computing the post-
October capital loss are treated as arising
on the first day of the following taxable
year, except for an amount of those losses
(selected as described in the following
paragraph) that equals in the aggregate the
amount (if any) of the post-October capi-
tal loss that is not deferred. For example,
if, for a taxable year, (i) a RIC has a
post-October capital loss that is a net
long-term capital loss attributable to the
post-October portion of its taxable year
and (ii) the RIC elects to defer all but
$5000 of that net long-term capital loss,
then every one of the RIC's post-October
long-term capital gains is treated as aris-
ing on the first day of the following tax-
able year, and every one of the RIC's
post-October long-term capital losses is
treated as arising on the first day of the
following taxable year, except for long-
term capital losses that in the aggregate
equal $5000.

If, for a taxable year, (i) a RIC has a
post-October capital loss that is a net cap-
ital loss attributable to the post-October
portion of its taxable year, and (ii) the RIC
elects to defer less than the entire amount
of that post-October capital loss, then as

part of that election, the RIC determines
the extent to which its long-term or short-
term capital losses constitute the portion
of the loss that is treated as arising in the
taxable year (that is, the portion not de-
ferred). If, for a taxable year, (i) a RIC has
a post-October capital loss that includes
long-term capital losses, and (ii) the RIC's
election under § 852(b)(8)(A) (including
the decision described in the preceding
sentence) results in the deferral of less
than all of those long-term capital losses,
then as part of that election, the RIC de-
termines the extent to which its losses
from each rate group constitute the por-
tion of the long-term capital loss that is
treated as arising in the taxable year.

The deferral of a post-October capital
loss under § 852(b)(8) does not extend the
holding period associated with any of the
gains or losses that, as a result of the
deferral, are treated as arising on the first
day of the following taxable year.

Pending further guidance, a RIC makes
the election described in § 852(b)(8)(A)
for a taxable year by giving effect to its
elective deferral in computing its capital
gains and losses for that taxable year and
by completing its income tax return (in-
cluding any necessary schedules) for the
taxable year in accordance with the in-
structions for those items applicable to the
election.

## SECTION 7. BIFURCATION ADJUSTMENT

The bifurcation adjustment described
in section 6 of Notice 97-64 continues to
apply in certain circumstances. The crite-
ria for the application of the bifurcation
adjustment described below reflect that
the RIC Modernization Act eliminated the
mandatory deferral adjustment, as de-
scribed above in section 6, and broadened
the scope of elective deferral under
§ 852(b)(8), as described above in section 2.

Unless a RIC is excepted from the re-
quirements of § 4982 for the taxable year
under § 4982(f), the RIC must make the

bifurcation adjustment described below
for a taxable year if-

(1) The taxable year of the RIC is not
the period used to determine capital
gain net income for purposes of the
excise tax imposed by § 4982;6

(2) For the pre-November portion of
the taxable year, the RIC has a net
capital gain;

(3) For the post-October portion of the
taxable year, the RIC has a net loss
in one or more rate groups that
would cause pre-November net
capital gain to be recharacterized
(because the RIC would have less
capital gain in a rate group for its
full taxable year than for the pre-
November portion of that year);
and

(4) The RIC does not have a post-
October capital loss the deferral of
which, in whole or in part, under
§ 852(b)(8)(A), would prevent re-
characterization of the RIC's pre-
November gain.

If a RIC is required to make a bifurca-
tion adjustment, then, for all federal tax
purposes, it must net its capital gains and
losses as if the pre-November and post-
October portions of its taxable year were
separate taxable periods. The RIC must
calculate its maximum distributable gain
in each rate group separately for the pre-
November and post-October portions of
its year. The maximum distributable gain
in each rate group for the taxable year is
the sum of the maximum distributable
amounts determined for the two portions
of the year.

SECTION 8. EXAMPLE

The following example illustrates the
application of section 7 of this notice:

RIC X's taxable year ends on July 31.
X has only the following capital gains and
losses for the periods indicated:

6A RIC's taxable year coincides with the period for determining capital gain net income for purposes of the excise tax if either: (i) the RIC's taxable year ends with the month of October,
or (ii) the RIC's taxable year ends with the month of November or December and the RIC has made the election under § 4982(e)(4).

8/1/2015 to 10/31/2015

Net gain / (loss)

Long-term capital gain or loss

20-percent group

$100

25-percent group

28-percent group

Short-term capital gain or loss

11/1/2015 to 7/31/2016

Long-term capital gain or loss

20-percent group

($100)

25-percent group

28-percent group

$150

Short-term capital gain or loss

($50)

For the post-October portion of its tax-
able year, X has a net short-term capital loss
of $50 and no net capital loss or net long-
term capital loss. Therefore, under
§ 852(b)(8)(C), X has a post-October capital
loss, which is the $50 net short-term capital
loss. Under § 852(b)(8)(A), X may elect to
treat any portion of that loss as arising on the
first day of the following taxable year for
federal income tax purposes.

X has a taxable year that is not the
period used to determine its capital gain
net income for purposes of § 4982. X has
net capital gain for the portion of its tax-
able year before November 1 (all of which
is in the 20-percent group). X also has a
loss in the 20-percent group for the por-
tion of its taxable year after October 31.
But for the bifurcation adjustment, that
post-October loss would cause recharac-
terization of pre-November gain because
that post-October loss would cause X to
have more gain in the 20-percent group
for the pre-November portion of its tax-
able year ($100) than for its full taxable
year ($0). More specifically, if X's gains
and losses were netted for X's full taxable
year, X's $100 of gain in the 20-percent
group for the pre-November portion of the
year would be offset by the $100 loss in
the 20-percent group, with only gain in the
28-percent group remaining. X does not
have a post-October capital loss the defer-
ral of which would prevent such rechar-
acterization, because whether or not X
elects to defer its post-October capital loss
(the $50 short-term loss), the loss in the
20-percent group for the post-October
portion would offset the gain in that rate

group for the pre-November portion.
Therefore, regardless of whether X elects
to defer any portion of its post-October
capital loss, X must make a bifurcation
adjustment.

For the pre-November portion of its
taxable year, X has $100 of net capital
gain all of which is in the 20-percent
group. For the post-October portion, if X
elects to defer its entire post-October cap-
ital loss, X has $50 of net capital gain, all
of which is in the 28-percent group. Be-
cause X's taxable year is bifurcated, the
$100 of loss in the 20-percent group in the
post-October portion is netted with $100
of the $150 of gain in the 28-percent
group in the post-October portion, and not
with the $100 of gain in the 20-percent
group in the pre-November portion.
Therefore, X may report (or designate) up
to $150 as capital gain dividends (or un-
distributed capital gains) with respect to
its taxable year ending on July 31, 2016. If
X reports the entire amount as capital gain
dividends, X must report $100 as 20% rate
gain distributions and $50 as 28% rate
gain distributions. Because X elected to
defer its entire post-October capital loss,
X must treat the short-term capital gains
and losses constituting the $50 post-
October short-term capital loss as arising
on August 1, 2016 (the first day of the
next taxable year).

## SECTION 9. CAPITAL LOSS CARRYOVERS

Because post-October losses are sub-
ject to deferral, a RIC's capital gain or

loss computation for a taxable year may
depend in part on whether a capital loss
carryover from a prior year is treated as
arising on the first day of the taxable year
or ratably over the taxable year. Section
101 of the RIC Modernization Act
changed the treatment of capital loss car-
ryovers of RICs for years beginning after
the date of its enactment (December 22,
2010) in several ways. Under
§ 1212(a)(3), capital loss carryovers are
now treated as losses arising on the first
day of the taxable year to which they are
carried over.

Capital loss carryovers arising before
the date of enactment of the RIC Modern-
ization Act will likewise be treated as
arising on the first day of the taxable year
to which they are carried over and not as
arising ratably during the year.

## SECTION 10. EFFECT ON OTHER DOCUMENTS

Notice 97-64 and Notice 2004-39 are
modified.

## SECTION 11. EFFECTIVE DATE

This notice is effective for taxable
years beginning after May 31, 2015. Tax-
payers may rely on section 9 of this notice
for prior taxable years. Taxpayers may
rely on the other provisions of this notice
for prior taxable years beginning after the
date of enactment of the RIC Moderniza-
tion Act (December 22, 2010).

## SECTION 12. PAPERWORK REDUCTION ACT

The collection of information con-
tained in this notice has been submitted to
the Office of Management and Budget in
accordance with the Paperwork Reduction
Act of 1995 (44 U.S.C. 3507(d)) through
the Forms 2439 (1545-0145) and 1099-
DIV (1545-0110).

The collection of information in this
notice is in section 3. This information is
a minor modification to an existing re-
quirement that applies to a RIC when pro-
viding written statements to its sharehold-
ers as described in § 852(b)(3)(C) and
written notices to its shareholders as de-
scribed in § 852(b)(3)(D). The likely re-
spondents are RICs.

An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less it displays a valid control number
assigned by the Office of Management
and Budget.

## SECTION 13. DRAFTING INFORMATION

The principal author of this notice is
Steven Harrison of the Office of Assistant
Chief Counsel (Financial Institutions and
Products). For further information regard-
ing this notice contact Steven Harrison at
(202) 317-6842 (not a toll-free number).

Penalty Relief Program - Late Annual Reporting for
Non-Title I Retirement Plans ("One-Participant
Plans" and Certain Foreign Plans)

## Rev. Proc. 2015-32

### SECTION 1. PURPOSE

This revenue procedure establishes a
permanent program providing administra-
tive relief to plan administrators and plan
sponsors of certain retirement plans from
the penalties otherwise applicable under
§§ 6652(e) and 6692 of the Internal Rev-
enue Code (the "Code") for failing to
timely comply with the annual reporting
requirements imposed under §§ 6047(e),
6058, and 6059. This permanent program

replaces the temporary pilot program es-
tablished by Rev. Proc. 2014-32,
2014-23 I.R.B. 1073. The administrative
relief provided under this revenue proce-
dure applies only to plan administrators
(as defined in § 414(g)) and plan sponsors
of retirement plans that are subject to the
reporting requirements of §§ 6047(e), 6058,
and 6059, but that are not subject to the
reporting requirements of Title I of the Em-
ployee Retirement Income Security Act of
1974 ("ERISA") (Pub. L. No. 93-406).

## SECTION 2. BACKGROUND

Both the Code and Title I of ERISA
impose annual reporting requirements
with respect to certain retirement plans.
To minimize the filing burden on plan
sponsors and plan administrators of em-
ployee benefit plans, the Internal Revenue
Service (the "IRS"), the Department of
Labor (the "DOL"), and the Pension Ben-
efit Guaranty Corporation have consoli-
dated these various annual reporting re-
quirements by issuing a series of forms
that filers can use to satisfy their annual
reporting requirements under both the
Code and Title I of ERISA. This Form
5500 series includes Form 5500, Annual
Return/Report of Employee Benefit Plan;
Form 5500-SF, Short Form Annual Re-
turn/Report of Employee Benefit Plan;
and Form 5500-EZ, Annual Return of
One-Participant (Owners and Their
Spouses) Retirement Plan.1

Plan sponsors and plan administrators
who fail to timely file Form 5500 series
returns for their retirement plans may be
subject to civil penalties under the Code.
In particular, the IRS may assess penalties
under §§ 6652(e) and 6692 for the failure
to satisfy the requirements for annual re-
turns. Section 6652(e) generally provides,
in part, that in the case of any failure to
timely file a return or statement required
under § 6058 (annual return of employee
benefit plans) or § 6047(e) (returns and
reports for employee stock ownership
plans), the late filer shall pay, upon notice
and demand, a penalty of $25 for each day
the failure continues, up to $15,000 per
return or statement. Section 6692 gener-
ally provides that, in the case of any fail-

ure to timely file a report required by
§ 6059 (actuarial report for employee ben-
efit plans), the late filer shall pay a penalty
of $1,000 for each failure. No penalty is
imposed under these sections if it is
shown that such failure to timely file is
due to reasonable cause. Failure to timely
file returns/reports may also result in civil
penalties under Title I of ERISA.

In 1995, the DOL sought to encourage
voluntary compliance by establishing the
Delinquent Filer Voluntary Compliance
("DFVC") program. The DFVC program
includes reduced late filing monetary pen-
alties on filers of delinquent annual re-
ports. In Notice 2002-23, 2002-1 C.B.
742, the IRS determined that it would not
impose the penalties under §§ 6652(c)(1),
(d), (e) and 6692 (to the extent applicable)
on a person who is eligible for, and satis-
fies the requirements of, the DFVC pro-
gram with respect to the filing of a Form
5500 return. The relief under Notice
2002-23 was available only to filers who
were required to file both a report under
Title I of ERISA and a return under the
Code. Notice 2002-23 has been super-
seded by Notice 2014-35, 2014-23
I.R.B. 1072. As under Notice 2002-23,
the penalty relief provided by Notice
2014-35 does not apply to a delinquent
filing of a Form 5500-EZ return for re-
tirement plans that are not subject to the
annual reporting requirements of Title I of
ERISA (such as a "one-participant plan"
under which a sole owner of a business and
the owner's spouse are the only partici-
pants). See 29 C.F.R. 2510.3-3(b) and (c).

Certain retirement plans that are not
subject to Title I of ERISA are exempt
from some of the annual reporting re-
quirements if they satisfy certain criteria
specified by statute or by the IRS in pub-
lished guidance. For example, for years
beginning after 2006, section 1103 of the
Pension Protection Act of 2006 (Pub. L.
No. 109-280) provides that "one-
participant plans" that are not subject to
Title I of ERISA with assets of $250,000
or less at the end of the plan year are not
required to file a Form 5500 series return.
The IRS has determined that such plans
must, however, file an annual return when

1In general, returns satisfy Code reporting requirements, and reports satisfy Title I of ERISA reporting requirements. Form 5500 and Form 5500-SF returns/reports can be used to satisfy
the reporting requirements of both the Code and Title I of ERISA. Form 5500-EZ returns are used only by plan administrators and plan sponsors of retirement plans that are not subject
to the reporting requirements of Title I of ERISA and hence are used to satisfy only the reporting requirements of the Code.

the plan is terminated and all assets have
been distributed.

### SECTION 3. PENALTY RELIEF UNDER REV. PROC. 2014-32

Rev. Proc. 2014-32 established a one-
year pilot program that provides adminis-
trative relief from the penalties imposed
under §§ 6652(e) and 6692 for a failure to
timely comply with the annual reporting
requirements under §§ 6047(e), 6058, and
6059. The relief applies to "one-participant
plans" and certain foreign plans, which are
not subject to the annual reporting require-
ments of Title I of ERISA and thus are not
eligible for the penalty relief provided by
Notice 2014-35.

Under the pilot program, applicants are
required to file a complete Form 5500
series return for each year for which the
applicant is seeking penalty relief. A com-
plete return consists of a signed, filled-out
paper version of the applicable Form 5500
series return, including all required sched-
ules and attachments.

The Form 5500 series return to be sub-
mitted under the pilot program is gener-
ally the specific Form 5500 series return
that was required to be submitted for the
plan year. For example, if a 2005 Form
5500 return should have been filed for the
2005 plan year but was not, a 2005 Form
5500 return must be submitted. For 2009
plan years and later, only the Form
5500-EZ return applicable to the plan
year may be submitted. Thus, a delinquent
Form 5500-SF return cannot be filed for
the plan year, either on paper with the IRS
or electronically through the EFAST2 sys-
tem (even if a Form 5500-SF return could
have been timely filed for the plan year
through EFAST2).

No penalty or other payment is re-
quired to be paid under the pilot program.
Section 5.01 of Rev. Proc. 2014-32
states, however, that a fee or other pay-
ment will be required if the pilot program
is made permanent.

## SECTION 4. COMMENTS ON REV. PROC. 2014-32

Section 7 of Rev. Proc. 2014-32 re-
quested comments as to whether the pilot
program should be replaced by a perma-
nent program and how the fee for such a
permanent program should be determined.
All of the comments received were in
favor of replacing the pilot program with a
permanent program, and two commenters
suggested potential fee structures. Com-
menters noted that a permanent program
is needed so that one-participant and for-
eign plans, which are prohibited from
seeking relief under DOL's DFVC pro-
gram, may also seek relief from late-filer
penalties.

## SECTION 5. PERMANENT PENALTY RELIEF PROGRAM

This revenue procedure establishes a
permanent program to provide administra-
tive relief from the penalties imposed un-
der §§ 6652(e) and 6692 for a failure to
timely comply with the annual reporting
requirements under §§ 6047(e), 6058, and
6059. The relief applies to filers who are
eligible to participate under Section 6 of
this revenue procedure and who satisfy
the procedural requirements of Section 7
of this revenue procedure. As an alterna-
tive to making a submission under this
program, filers may instead file for the
relief currently available for a failure to
timely file that is due to reasonable cause.2
However, a filer who is denied relief for
reasonable cause with respect to a partic-
ular delinquent return will receive a CP
283 Notice, Penalty Charged on Your
Form 5500 Return, and, in accordance
with Section 6.05, will not be eligible for
relief as to that return under this program.
Also, filers may not seek relief for reason-
able cause as part of their submission un-
der this program.

The permanent program generally fol-
lows the requirements of the pilot pro-
gram, but some changes have been made
to reflect the comments received as well

as to reflect the addition of a payment
requirement.

The most significant change is the ad-
dition of a payment requirement with all
submissions. The payment for each sub-
mission is $500 for each delinquent return
for each plan, up to a maximum of $1,500
per plan. Because applicants under this
program will typically be smaller than fil-
ers under the DFVC program, a smaller
payment is required under this program
for two or fewer delinquent returns than is
required under the DFVC program, but
the maximum amount per plan (which ap-
plies under this program to three or more
delinquent returns) is the same. In order to
keep the calculation of the payment sim-
ple, payments are not based on the number
of days the return is delinquent.3

As under the pilot program, the perma-
nent program requires that a Form
5500-EZ return be filed even though the
applicant could have filed a Form
5500-SF return electronically if the return
had been timely filed. Because a Form
5500-SF return must be electronically
filed under DOL's EFAST2 filing system
and any payment under this program must
be submitted directly to the IRS, the De-
partment of the Treasury and the IRS are
concerned that it would be difficult to
match a payment with a delinquent,
electronically-filed Form 5500-SF return.
The Department of the Treasury and the
IRS will consider future changes in the
program to allow electronic filing of de-
linquent returns as administrative and
technological capacities improve.

The permanent program provides that
the applicant must submit the delinquent
return on the Form 5500-EZ that applied
for the plan year for which the return was
delinquent. An exception is provided for
returns for plan years prior to 1990 be-
cause those returns are more difficult for
applicants to obtain. For returns for plan
years prior to 1990, the applicant may use
a current-year Form 5500-EZ filled out
with the beginning and ending dates for
the plan year for which the return was
delinquent.

2A request for relief due to reasonable cause may be attached to a delinquent return when the return is filed or may be filed separately. The request should state the reason why the return
was late and be signed by a person in authority. See §§ 301.6652-3(b) and 301.6692-1(c) of the Regulations on Procedure and Administration. The request (with the delinquent return, if
applicable) should be mailed to the filing address provided in the instructions for the most current Form 5500-EZ available to taxpayers.

3Because the lowest payment under this permanent program is $500 for a delinquent return, some filers who file a delinquent return less than 20 days late may prefer to pay the penalty
of $25 per day under § 6652(e) rather than file under this program.

As noted in Rev. Proc. 2014-32, prior
to 2009, some plans that are not subject to
Title I of ERISA were required to file
returns on Form 5500 rather than Form
5500-EZ. Under the pilot program, these
filers were required to file a Form 5500
return for the applicable year rather than a
Form 5500-EZ return. To simplify the
program for both filers and the IRS, filers
that would have been required to file a
Form 5500 return under the pilot program
are instead required under the permanent
program to file a current-year Form
5500-EZ return, filled out with the begin-
ning and ending dates for the plan year for
which the return was delinquent.

The pilot program also provided that
multiple returns for multiple plans could
be included in a submission. Because the
permanent program requires a payment
based on the number of delinquent returns
for each plan, however, the permanent
program requires that delinquent returns
for each plan must be submitted sepa-
rately. Thus, multiple delinquent returns
for a single plan should be submitted in a
single package, but delinquent returns for
different plans must be submitted in dif-
ferent packages.

Under the permanent program, appli-
cants must include a Form 14704, Trans-
mittal Schedule - Form 5500-EZ Delin-
quent Filer Penalty Relief Program (Rev.
Proc. 2015-32), with each submission, as
further described in Section 7.03(3).4 Un-
like the pilot program, the IRS will con-
tact the applicant if the Form 14704 is not
included, the documents submitted are in-
consistent with the Form 14704, a re-
quired signature on a delinquent return is
not provided, or the amount of payment is
incorrect. As under the pilot program,
however, the IRS generally does not ex-
pect to contact the applicant in other
cases. Filers may use a tracking or other
system provided by the United States
Postal Service (or by a private delivery
service if a delivery service is used) to
determine when delivery of a submission
is completed. Filers may also receive no-
tice from their bank or other financial in-
stitution when a check has been processed
by the IRS.

The Department of the Treasury and
the IRS intend that this program will be of

indefinite duration, but the program, upon
publication of further guidance, may be
modified from time to time or terminated.

## SECTION 6. PROGRAM ELIGIBILITY

.01 General rule. The relief provided
by this revenue procedure is only avail-
able to the plan administrator or plan
sponsor of a retirement plan that is subject
to the filing requirements of §§ 6047(e),
6058, or 6059 but is not subject to Title I
of ERISA for the plan year that a Form
5500 series return is delinquent. Thus, the
relief under this revenue procedure is only
available to the plan administrator or plan
sponsor of (1) small business (owner-
spouse) plans and plans of business part-
nerships (together, “one-participant
plans") described in Section 6.02 and (2)
foreign plans described in Section 6.03.

.02 One-participant plans. For pur-
poses of this revenue procedure, a one-
participant plan is a retirement plan with
one or more participants that:

· Covers only the owner of the entire
business (or the owner and the owner's
spouse) or covers only one or more
partners (or partners and their spouses)
in a business partnership, and

· Does not provide benefits for anyone
except the owner (or the owner and the
owner's spouse) or one or more part-
ners (or partners and their spouses).

.03 Foreign plans. The plan adminis-
trator or plan sponsor of a foreign plan
(that is, a retirement plan maintained out-
side the United States primarily for non-
resident aliens) is eligible for relief under
this revenue procedure if the employer
that maintains the plan is a domestic em-
ployer or a foreign employer with income
derived from sources within the United
States (including foreign subsidiaries of
domestic employers) that deducts contri-
butions to the plan on its U.S. income tax
return.

.04 Title I plans ineligible. A plan ad-
ministrator or plan sponsor is not eligible
for penalty relief under this revenue pro-
cedure if the affected retirement plan is
subject to Title I of ERISA for the plan
year for which a filing is delinquent. In-

stead, a plan administrator or plan sponsor
of a Title I retirement plan may request
relief from penalties under ERISA and the
Code in accordance with the DFVC pro-
gram and Notice 2014-35. Please refer to
http://www.dol.gov/ebsa/ for more infor-
mation regarding the DFVC program.

.05 Penalty assessment notices. The re-
lief provided by this revenue procedure is
not available with respect to a delinquent
return if a penalty has been assessed (that
is, if a CP 283 Notice has been issued by
the IRS to a plan sponsor or administrator)
with respect to that delinquent return.

## SECTION 7. PROCEDURAL REQUIREMENTS

.01 Payment. The correct payment
must be included with each submission.
The amount of the payment is $500 per
delinquent return up to a maximum of
$1,500 per submission (that is, the pay-
ment is equal to $500 for a single return,
$1,000 for two returns for the same plan,
and $1,500 for three or more returns for
the same plan). All payments under this
program must be submitted by a check
payable to the United States Treasury and
must be attached to the Form 14704 that is
included as part of the submission. The
applicant's EIN and the plan number
should be written on the check.

.02 Submission limited to a single plan.
Multiple delinquent returns for a single
plan may be submitted in a single submis-
sion, but separate submissions are re-
quired for separate plans. For example, if
an employer maintains a defined contribu-
tion plan and a defined benefit plan, and
returns for each plan are delinquent for
three plan years, the applicant must sub-
mit two separate submissions, one for
each plan. In all cases, the requirements of
Section 7.03 of this revenue procedure
must be satisfied for each such submission
(including a Form 14704 and check).

.03 Filing contents. The applicant must
submit the following information to the
IRS in order to receive penalty relief:

(1) A complete Form 5500-EZ return.
The submission must include a complete
Form 5500-EZ return, including all re-
quired schedules and attachments, for
each plan year for which the applicant is

4Under the pilot program, the transmittal schedule is an appendix to Rev. Proc. 2014-32. Under this permanent program, the transmittal schedule is a new IRS form.

seeking penalty relief under this revenue
procedure. All returns submitted in accor-
dance with this revenue procedure must
be sent to the IRS at the address listed in
Section 7.04 below and cannot be filed
through the DOL's EFAST2 filing sys-
tem. Filings sent to the DOL's EFAST2
filing system will not be treated as sub-
missions under this program and will con-
tinue to be subject to applicable penalties
under the Code. For purposes of this rev-
enue procedure:

(a) In general, the Form 5500-EZ return
that applied for the delinquent plan
year must be submitted on paper.
Thus, a delinquent Form 5500-SF re-
turn cannot be filed for a plan year,
either on paper or electronically (even
if a timely Form 5500-SF return could
have been filed electronically for the
plan year through EFAST2).

(b) A Form 5500-EZ return for the cur-
rent plan year (rather than the Form
5500 series return that applied for the
delinquent plan year) may be filed on
paper if either (i) the filer would oth-
erwise be required to file a Form 5500
return for the delinquent plan year, or
(ii) the return is delinquent for a year
prior to 1990. Any such current-year
Form 5500-EZ return must be filled
out with the beginning and ending
dates for the plan year for which the
return was delinquent.

(c) All schedules applicable to the plan for
the year for which the return is delin-
quent must be included with the re-
turn. For example:

· For plan years prior to 2005, a Sched-
ule B (Actuarial Information) was re-
quired to be submitted with the Form
5500 series return for non-Title I de-
fined benefit pension plans and certain
money purchase pension plans. Ac-
cordingly, a submission for these plans
for these plan years must include a
Schedule B.

· For 2005 and subsequent plan years, a
Schedule B (or the successor Schedule
SB (Single Employer Defined Benefit
Plan Actuarial Information)) was not
required to be submitted to the IRS
with the annual Form 5500 series re-
turn for one-participant plans and for-
eign plans subject to filing under the
Code and not under Title I of ERISA.
Accordingly, a submission for these

plans for these plan years need not
include a Schedule B (or Schedule
SB). However, an applicant must in-
clude in the submission a representa-
tion that the applicable annual actuar-
ial report has been prepared (even
though it is not being submitted to the
IRS). This statement should be at-
tached to the applicable return in lieu
of a Schedule B (or Schedule SB).

· For plan years prior to 2005, a Sched-
ule E (ESOP Annual Information) was
required to be submitted with the Form
5500 series return for an employee
stock ownership plan. Accordingly, a
submission for these plans for these
plan years must include a Schedule E.

(d) The Form 5500-EZ (but not required
schedules) that applied for each plan
year after 1989 may be found at
http://apps.irs.gov/app/picklist/list/
priorFormPublication.html?value=
5500-EZ&criteria=formNumber. In
addition, an applicant can obtain a
Form 5500-EZ, plus required sched-
ules, for any plan year by calling
1-800-TAX Form (1-800-829-3676).
Also, applicable schedules (for plan
years after 1994) can be found at
http://www.dol.gov/ebsa/
5500main.html.

(2) Delinquent returns must be
marked. For each delinquent Form 5500
series return submitted to the IRS under
this revenue procedure, the applicant
must mark in red letters in the top mar-
gin of the first page of the return (above
the title of the form): "Delinquent Re-
turn Submitted under Rev. Proc. 2015-
32, Eligible for Penalty Relief." Failure
to properly mark the submitted delin-
quent return may cause the IRS to treat
the return as ineligible for the relief
provided under this revenue procedure
and assess all applicable penalties.

(3) Required Form 14704. Each sub-
mission must include a completed paper
copy of Form 14704. Form 14704 may be
found at http://www.irs.gov/Forms-&-
Pubs. A completed Form 14704 must be
attached to the front of the oldest delin-
quent return in the submission. For exam-
ple, if delinquent returns are included in
the same submission for the plan years
2010, 2011, and 2012, the completed
Form 14704 must be attached to the front
of the 2010 return. Failure to include a

completed Form 14704 as directed may
cause the IRS to treat the returns as inel-
igible for the relief provided under this
revenue procedure and assess all applica-
ble penalties.

.04 Mailing address. Submissions un-
der this revenue procedure should be
mailed to:

Internal Revenue Service
1973 North Rulon White Blvd.
Ogden, UT 84404-0020

.05 Private delivery services. Appli-
cants may make their submissions using
any of the private delivery systems listed
in the instructions to the most recent Form
5500-EZ. The private delivery service
can provide information on how to obtain
written proof of the mailing date.

## SECTION 8. EFFECTIVE DATE

The relief provided under this revenue
procedure is effective June 3, 2015. Re-
turns submitted before June 3, 2015 will
be processed in accordance with Rev.
Proc. 2014-32.

## SECTION 9. PAPERWORK REDUCTION ACT

The collection of information con-
tained in this revenue procedure has been
reviewed and approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number 1545-
0956.

An agency may not conduct or spon-
sor, and a person is not required to re-
spond to, a collection of information un-
less the collection of information displays
a valid OMB control number.

The collection of information in this
revenue procedure is in Form 14704. This
information is required to enable the
Commissioner, Tax Exempt and Govern-
ment Entities Division, to ensure the
proper processing of the delinquent re-
turns and the associated payments. The
likely respondents are individuals and
small businesses or organizations.

The estimated total annual reporting
recordkeeping burden is 167 hours.

The estimated annual burden per re-
spondent/recordkeeper is five minutes.

The estimated number of respondents/
recordkeepers is 2,000.

The estimated frequency of responses
is occasional.

Books or records relating to a collec-
tion of information must be retained as
long as their contents may become mate-
rial in the administration of any internal
revenue law. Generally, tax returns and
tax return information are confidential as
required by 26 U.S.C. § 6103.

## SECTION 10. DRAFTING INFORMATION

The principal drafter of this revenue
procedure is Robert M. Walsh of the Of-
fice of the Associate Chief Counsel (Tax
Exempt and Government Entities). How-
ever, other personnel from the Department
of the Treasury and the IRS participated in
the development of this guidance. For fur-
ther information regarding this revenue
procedure, you may contact Mr. Walsh at
202-317-4102 (not a toll-free number).
For questions regarding submissions un-
der this revenue procedure, please contact
the Employee Plans' taxpayer assistance
telephone service at 1-877-829-5500 (not
a toll-free number).

26 CFR 601.204: Changes in accounting periods
and in methods of accounting.
(Also Part I, §§ 446, 481; 1.446-1, 1.481-1, 1.481-4.)

## Rev. Proc. 2015-33 SECTION 1. PURPOSE

This revenue procedure modifies the
procedures in Rev. Proc. 2015-13,
2015-5 I.R.B. 419, for obtaining the con-
sent of the Commissioner of Internal Rev-
enue (Commissioner) to change a method
of accounting for federal income tax pur-
poses under § 446(e) of the Internal Rev-
enue Code and § 1.446-1(e) of the In-
come Tax Regulations. Specifically, this
revenue procedure (1) modifies the transi-
tion rules under section 15.02(1)(a)(ii) of
Rev. Proc. 2015-13 to provide additional
time to file Forms 3115 under Rev. Proc.
2011-14, 2011-4 I.R.B. 330, as clarified
and modified by Rev. Proc. 2012-39,
2012-41 I.R.B. 470; (2) clarifies when the
automatic change procedures do not apply
if the taxpayer engages, within the re-
quested year of change, in a transaction to
which § 381(a) applies; (3) clarifies the
meaning of "three-month window" under

section 8.02(1)(a)(ii) of Rev. Proc.
2015-13 for a taxpayer with a 52-53
week taxable year; and (4) discusses a
clarification to the applicable Ogden, UT,
address provided in section 9.05 of Rev.
Proc. 2015-1, 2015-1 I.R.B. 1.

## SECTION 2. BACKGROUND

.01 Rev. Proc. 2015-13 updates and
revises the general procedures under
§ 446(e) and § 1.446-1(e) to obtain the
consent of the Commissioner to change a
method of accounting for federal income
tax purposes. Specifically, Rev. Proc.
2015-13 provides general procedures to
obtain the advance (non-automatic) con-
sent of the Commissioner to change a
method of accounting and provides the
procedures to obtain the automatic con-
sent of the Commissioner to change a
method of accounting described in Rev.
Proc. 2015-14, 2015-5 I.R.B. 450, (or
successor) (List of Automatic Changes).

.02 Section 15.02(1)(a)(ii) of Rev.
Proc. 2015-13 provides that a taxpayer
may file a Form 3115 to request the Com-
missioner's consent to change a method of
accounting for a taxable year ending on or
after May 31, 2014, and on or before
January 31, 2015, until the due date of the
taxpayer's timely filed (including any ex-
tension) original federal income tax return
for the requested year of change for an
automatic change under the procedures of
Rev. Proc. 2011-14 or Rev. Proc. 2015-
13. The current provision does not allow
taxpayers with taxable years ending after
January 31, 2015, to request an automatic
change under the procedures of Rev. Proc.
2011-14. In September 2013 the Treasury
Department and the Internal Revenue Ser-
vice (IRS) issued final regulations under
§§ 1.162-3, 1.162-4, 1.263(a)-1,
1.263(a)-2, and 1.263(a)-3 (T.D. 9636,
2013-43 I.R.B. 331, 78 Fed. Reg. 57686)
and in August 2014 issued final regula-
tions under §§ 1.168(i)-1, 1.168(i)-7, and
1.168(i)-8 (T.D. 9689, 2014-36 I.R.B.
456, 79 Fed. Reg. 48661) (together the
final tangible property regulations). The
final tangible property regulations gener-
ally apply to taxable years beginning on or
after January 1, 2014. This revenue pro-
cedure extends the transition procedures
of section 15.02(1)(a)(ii) of Rev. Proc.
2015-13 to all taxpayers for their first
taxable year in which the final tangible

property regulations apply. In particular,
section 3 of this revenue procedure mod-
ifies section 15.02(1) of Rev. Proc.
2015-13 to allow a taxpayer to request an
automatic change under the procedures of
Rev. Proc. 2011-14 or Rev. Proc.
2015-13 for a taxable year ending on or
after May 31, 2014, and beginning before
January 1, 2015. This revenue procedure
provides that a signed copy of an original
Form 3115 filed under the revised transi-
tion rules should be filed with the IRS in
Ogden, UT, despite the requirement of
Rev. Proc. 2011-14 that certain copies be
filed with the IRS national office.

.03 Sections 5.01(1)(c) and 5.02 of
Rev. Proc. 2015-13 provide rules that
limit application of the automatic change
procedures in certain instances when,
within the year of change, the taxpayer
engages in a liquidation or reorganization
transaction to which § 381(a) applies.
These rules are intended to provide that a
taxpayer that engages in a § 381(a) trans-
action within the year of change may not
use the automatic change procedures to
request a change to a principal method
(because, as prescribed by §§ 1.381(c)(4)-
1(d)(1) and 1.381(c)(5)-1(d)(1), in gen-
eral, an acquiring corporation does not
need to secure the Commissioner's con-
sent to use a principal method). The rules
in sections 5.01(1)(c) and 5.02 inadver-
tently exclude from the automatic change
procedures certain changes other than a
change to a principal method prescribed
by § 1.381(c)(4)-1(d)(1) or § 1.381(c)(5)-
1(d)(1). Accordingly, section 4 of this rev-
enue procedure modifies sections
5.01(1)(c) and 5.02 of Rev. Proc. 2015-13
to exclude from the automatic change pro-
cedures only changes prescribed by
§ 1.381(c)(4)-1(d)(1) or § 1.381(c)(5)-
1(d)(1).

.04 Section 8.02(1)(a)(ii) of Rev.
Proc. 2015-13 provides that a "three-
month window" is the period beginning
on the fifteenth day of the seventh
month of the taxpayer's taxable year and
ending on the fifteenth day of the tenth
month of the taxpayer's taxable year. It
is unclear how this provision applies to a
taxpayer using a 52-53 week taxable year
because the rule is not expressed in terms
of a taxable year beginning, including, or
ending with reference to the first or last
day of a specified calendar month, as pro-

vided in § 1.441-2(c)(1). Accordingly,
section 5 of this revenue procedure mod-
ifies section 8.02(1)(a)(ii) of Rev. Proc.
2015-13 to provide that for determining
the "three-month window" the taxable
year begins on the first day of the calendar
month nearest to the first day of the 52-53
week taxable year.

.05 Additionally, several provisions of
Rev. Proc. 2015-13 provide that a signed
copy of the original Form 3115 must be
filed with the IRS in Ogden, UT (Ogden
copy), at the applicable address in section
9.05 of Rev. Proc. 2015-1 (or successor).
The U.S. Post Office no longer accepts the
Ogden, UT, zip code provided in Rev.
Proc. 2015-1 for certified mail. While
mail sent to the Ogden, UT, address pro-
vided in Rev. Proc. 2015-1 will be re-
ceived by the IRS processing facility in
Ogden, UT, to send certified mail through
the U.S. Post Office to this location, tax-
payers should use the following mailing
address:

Internal Revenue Service
1973 Rulon White Blvd.
Mail Stop 4917
Ogden, UT 84201-1000

## SECTION 3. MODIFICATION TO TRANSITION RULES

.01 The heading of section 15.02(1) of
Rev. Proc. 2015-13 is modified to read as
follows:

(1) Additional time to file Forms 3115
under Rev. Proc. 97-27, Rev. Proc. 2011-
14, or this revenue procedure.

.02 Section 15.02(1)(a)(ii) of Rev.
Proc. 2015-13 is modified to read as fol-
lows:

(ii) ending on or after May 31, 2014,
and beginning before January 1, 2015
("applicable taxable year"), until the due
date of the taxpayer's timely filed (includ-
ing any extension) original federal income
tax return for the requested year of change
for an automatic change under the proce-
dures of Rev. Proc. 2011-14 or this reve-
nue procedure. Any application filed un-
der the transition rule provided in this
paragraph must be filed with the IRS in
Ogden, UT (Ogden copy), and not with
the national office despite the requirement
in section 6.02(3)(a)(ii) of Rev. Proc.
2011-14 that certain copies of the appli-
cation be filed with the national office.

## SECTION 4. CLARIFICATION OF AUTOMATIC CHANGE PROCEDURES FOLLOWING A § 381 TRANSACTION

.01 Section 5.01(1)(c) is modified to
read as follows:

.02 Section 5.02 is modified to read
"Reserved."

## SECTION 5. CLARIFICATION OF THREE-MONTH WINDOW

Section 8.02(1)(a)(ii) of Rev. Proc.
2015-13 is modified to read as follows:

(II) Three-month Window. (A) A
"three-month window" is the period be-

ginning on the fifteenth day of the seventh
month of the taxpayer's taxable year and
ending on the fifteenth day of the tenth
month of the taxpayer's taxable year.

(B) For purposes of paragraph
(a)(ii)(A), a 52-53 week taxable year be-
gins on the first day of the calendar month
nearest to the first day of the 52-53 week
taxable year.

(C) If the taxable year is a short taxable
year that ends before the fifteenth day of
the tenth month after the short taxable
year begins, the "three-month window" is
the period beginning on the first day of the
second month before the month in which
the short taxable year ends and ending on
the last day of the short taxable year.

## SECTION 6. EFFECT ON OTHER DOCUMENTS

Rev. Proc. 2015-13 is clarified and
modified.

## SECTION 7. EFFECTIVE DATE

This revenue procedure is effective for
Forms 3115 filed on or after January 16,
2015, for a year of change ending on or
after May 31, 2014.

## DRAFTING INFORMATION

The principal author of this revenue
procedure is Neville Jiang of the Office of
Associate Chief Counsel (Income Tax and
Accounting). For further information re-
garding this revenue procedure, contact
Mr. Jiang at (202) 317-7007 (not a toll-
free number).

## Part IV. Items of General Interest

Deletions From Cumulative
List of Organizations,
Contributions to Which are
Deductible Under Section
170 of the Code, Correction
to Announcement 2015-14

Announcement 2015-16
Table of Contents

The information contained in An-
nouncement 2015-14, 2015-20 IRB 971,
is incorrect and that Announcement is
hereby revoked. The correct information
is contained in this announcement.

The names of organizations that no
longer qualify as organizations described
in section 170(c)(2) of the Internal Reve-
nue Code of 1954 are listed below.

The Internal Revenue Service has re-
voked its determination that the organiza-
tions listed below qualify as organizations
described in sections 501(c)(3) and
170(c)(2) of the Internal Revenue Code of
1986.

Generally, the IRS will not disallow
deductions for contributions made to a
listed organization on or before the date of
announcement in the Internal Revenue
Bulletin that an organization no longer
qualifies. However, the IRS is not pre-
cluded from disallowing a deduction for
any contributions made after an organiza-
tion ceases to qualify under section
170(c)(2) if the organization has not
timely filed a suit for declaratory judg-
ment under section 7428 and if the con-
tributor (1) had knowledge of the revoca-
tion of the ruling or determination letter,
(2) was aware that such revocation was
imminent, or (3) was in part responsible

for or was aware of the activities or omis-
sions of the organization that brought
about this revocation.

If on the other hand a suit for declara-
tory judgment has been timely filed, con-
tributions from individuals and organiza-
tions described in section 170(c)(2) that
are otherwise allowable will continue to
be deductible. Protection under section
7428(c) would begin on June 15, 2015 and
would end on the date the court first de-
termines the organization is not described
in section 170(c)(2) as more particularly
set for in section 7428(c)(1). For individ-
ual contributors, the maximum deduction
protected is $1,000, with a husband and
wife treated as one contributor. This ben-
efit is not extended to any individual, in
whole or in part, for the acts or omissions
of the organization that were the basis for
revocation.

NAME OF ORGANIZATION

Effective Date of Revocation

LOCATION

Bill Keller Ministries

June 1, 2006

St. Petersburg, FL

BRIDGES

January, 1, 2009

Cleveland, OH

Filipino Community of Seattle Community Development Corporation

January 1, 2009

Seattle, WA

The Genesis Foundation Inc.

January 1, 2003

Valparaiso, IN

Powers Foundation

April 10, 2006

Abilene, TX

Social Science Conferences, Inc.

August 1, 2011

Chapel Hill, NC

Triunfo Communications

September 1, 2001

Houston, TX

Woman to Woman Breast Cancer Foundation

November 1, 2010

Plantation, FL

# Definition of Terms

Revenue rulings and revenue procedures
(hereinafter referred to as "rulings") that
have an effect on previous rulings use the
following defined terms to describe the
effect:

Amplified describes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).

Clarified is used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.

Distinguished describes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.

Modified is 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
with amplified and clarified, above).

Obsoleted describes 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.

Revoked describes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.

Superseded describes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-

stance of a prior ruling, a combination of
terms is used. For example, modified and
superseded describes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.

Supplemented is used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.

Suspended is used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.

# Abbreviations

The following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.

A-Individual.

Acq .- Acquiescence.

B-Individual.

BE-Beneficiary.

F.R .- Federal Register.

FUTA-Federal Unemployment Tax Act.

FX-Foreign corporation.

G.C.M .- Chief Counsel's Memorandum.

GE-Grantee.

GP-General Partner.

TFR-Transferor.

CI-City.

GR-Grantor.

IC-Insurance Company.

I.R.B .- Internal Revenue Bulletin.

TR-Trust.

CY-County.

LE-Lessee.

TT-Trustee.

D-Decedent.

LP-Limited Partner.

U.S.C .- United States Code.

DC-Dummy Corporation.

LR-Lessor.

X-Corporation.

DE-Donee.

Del. Order-Delegation Order.

Nonacq .- Nonacquiescence.

O Organization.

DR-Donor.

P-Parent Corporation.

PHC-Personal Holding Company.

PO-Possession of the U.S.

PR-Partner.

PRS-Partnership.

PTE-Prohibited Transaction Exemption.
Pub. L .- Public Law.

REIT-Real Estate Investment Trust.

Rev. Proc .- Revenue Procedure.

Rev. Rul .- Revenue Ruling.

S-Subsidiary.

S.P.R .- Statement of Procedural Rules.

Stat .- Statutes at Large.

T-Target Corporation.

T.C .- Tax Court.

C-Individual.

T.D .- Treasury Decision.

TFE-Transferee.

T.I.R .- Technical Information Release.

COOP-Cooperative.

TP-Taxpayer.

Ct.D .- Court Decision.

M-Minor.

Y-Corporation.

Z-Corporation.

DISC-Domestic International Sales Corporation.

E-Estate.

EE-Employee.

E.O .- Executive Order.

ER-Employer.

ERISA-Employee Retirement Income Security Act.
EX-Executor.

F-Fiduciary.

FC-Foreign Country.

FICA-Federal Insurance Contributions Act.

FISC-Foreign International Sales Company.

FPH-Foreign Personal Holding Company.

BK-Bank.

B.T.A .- Board of Tax Appeals.

C.B .- Cumulative Bulletin.

CFR-Code of Federal Regulations.

Numerical Finding List1

Notices :- Continued

Revenue Rulings:

Bulletin 2015-1 through 2015-24

2015-19, 2015-9 I.R.B. 690

2015-1, 2015-4 I.R.B. 331

2015-20, 2015-11 I.R.B. 754

2015-2, 2015-3 I.R.B. 321

Announcements:

2015-18, 2015-12 I.R.B. 765

2015-3, 2015-6 I.R.B. 580

2015-21, 2015-12 I.R.B. 765

2015-4, 2015-10 I.R.B. 743

2015-1, 2015-11 I.R.B. 758

2015-22, 2015-12 I.R.B. 768

2015-5, 2015-13 I.R.B. 788

2015-2, 2015-3 I.R.B. 324

2015-23, 2015-12 I.R.B. 769

2015-6, 2015-13 I.R.B. 801

2015-3, 2015-3 I.R.B. 328

2015-24, 2015-13 I.R.B. 811

2015-7, 2015-14 I.R.B. 849

2015-4, 2015-5 I.R.B. 565

2015-25, 2015-13 I.R.B. 814

2015-8, 2015-18 I.R.B. 945

2015-5, 2015-7 I.R.B. 602

2015-26, 2015-13 I.R.B. 814

2015-9, 2015-21 I.R.B. 972

2015-6, 2015-8 I.R.B. 685

2015-27, 2015-13 I.R.B. 816

2015-10, 2015-21 I.R.B. 973

2015-7, 2015-13 I.R.B. 823

2015-28, 2015-14 I.R.B. 848

2015-11, 2015-21 I.R.B. 975

2015-8, 2015-9 I.R.B. 698

2015-29, 2015-15 I.R.B. 873

2015-13, 2015-22 I.R.B. 1011

2015-10, 2015-11 I.R.B. 758

2015-30, 2015-17 I.R.B. 928

2015-14, 2015-22 I.R.B. 1012

2015-11, 2015-15 I.R.B. 883

2015-31, 2015-17 I.R.B. 929

2015-12, 2015-12 I.R.B. 770

2015-32, 2015-20 I.R.B. 967

Treasury Decisions:

2015-13, 2015-15 I.R.B. 908

2015-33, 2015-18 I.R.B. 934

2015-14, 2015-20 I.R.B. 971

2015-34, 2015-18 I.R.B. 942

9707, 2015-2 I.R.B. 247

2015-15, 2015-22 I.R.B. 1014

2015-35, 2015-18 I.R.B. 943

9708, 2015-5 I.R.B. 337

2015-16, 2015-24 I.R.B. 1069

2015-37, 2015-19 I.R.B. 947

9709, 2015-7 I.R.B. 593

2015-38, 2015-21 I.R.B. 984

9710, 2015-8 I.R.B. 603

Proposed Regulations:

2015-39, 2015-22 I.R.B. 1008

9711, 2015-11 I.R.B. 748

REG-109187-11, 2015-2 I.R.B. 277

2015-40, 2015-24 I.R.B. 1057

9712, 2015-11 I.R.B. 750 9713, 2015-13 I.R.B. 802

REG-132751-14, 2015-2 I.R.B. 279

2015-41, 2015-24 I.R.B. 1058

9714, 2015-14 I.R.B. 831

REG-145878-14, 2015-2 I.R.B. 290

9715, 2015-15 I.R.B. 851

REG-153656-3, 2015-5 I.R.B. 566

Revenue Procedures:

9716, 2015-15 I.R.B. 863

REG-102648-15, 2015-10 I.R.B. 745

9717, 2015-16 I.R.B. 910

REG-136018-13, 2015-11 I.R.B. 759

2015-1, 2015-1 I.R.B. 1

9718, 2015-15 I.R.B. 866

REG-143416-14, 2015-11 I.R.B. 757

2015-2, 2015-1 I.R.B. 105

9719, 2015-21 I.R.B. 977

REG-100400-14, 2015-12 I.R.B. 779

2015-3, 2015-1 I.R.B. 129

REG-132253-11, 2015-12 I.R.B. 771

2015-4, 2015-1 I.R.B. 144

REG-143040-11, 2015-13 I.R.B. 827

2015-5, 2015-1 I.R.B. 186

REG-133489-13, 2015-16 I.R.B. 926

2015-6, 2015-1 I.R.B. 194

REG-103281-11, 2015-19 I.R.B. 948

2015-7, 2015-1 I.R.B. 231

REG-107595-11, 2015-21 I.R.B. 986

2015-8, 2015-1 I.R.B. 235

REG-132634-14, 2015-21 I.R.B. 997

2015-9, 2015-2 I.R.B. 249

REG-102656-15, 2015-21 I.R.B. 1005

2015-10, 2015-2 I.R.B. 261

REG-108214-15, 2015-23 I.R.B. 1035

2015-12, 2015-2 I.R.B. 265

REG-140991-09, 2015-23 I.R.B. 1037

2015-13, 2015-5 I.R.B. 419

2015-14, 2015-5 I.R.B. 450

Notices:

2015-15, 2015-5 I.R.B. 564

2015-16, 2015-7 I.R.B. 596

2015-1, 2015-2 I.R.B. 249

2015-17, 2015-7 I.R.B. 599

2015-2, 2015-4 I.R.B. 334

2015-18, 2015-8 I.R.B. 642

2015-3, 2015-6 I.R.B. 583

2015-19, 2015-8 I.R.B. 678

2015-4, 2015-5 I.R.B. 407

2015-20, 2015-9 I.R.B. 694

2015-5, 2015-5 I.R.B. 408

2015-21, 2015-13 I.R.B. 817

2015-6, 2015-5 I.R.B. 412

2015-22, 2015-11 I.R.B. 754

2015-7, 2015-6 I.R.B. 585

2015-23, 2015-13 I.R.B. 820

2015-8, 2015-6 I.R.B. 589

2015-24, 2015-13 I.R.B. 822

2015-9, 2015-6 I.R.B. 590

2015-25, 2015-14 I.R.B. 848

2015-10, 2015-20 I.R.B. 965

2015-26, 2015-15 I.R.B. 875

2015-11, 2015-8 I.R.B. 618

2015-27, 2015-16 I.R.B. 914

2015-15, 2015-9 I.R.B. 687

2015-28, 2015-16 I.R.B. 920

2015-12, 2015-8 I.R.B. 700

2015-29, 2015-15 I.R.B. 882

2015-13, 2015-10 I.R.B. 722

2015-30, 2015-20 I.R.B. 970

2015-14, 2015-10 I.R.B. 722

2015-31, 2015-23 I.R.B. 1017

2015-16, 2015-10 I.R.B. 732

2015-32, 2015-24 I.R.B. 1063

2015-17, 2015-14 I.R.B. 845

2015-33, 2015-24 I.R.B. 1067

1A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2014-27 through 2014-52 is in Internal Revenue Bulletin
2014-52, dated December 28, 2014.

Finding List of Current Actions on Previously Published Items1

Revenue Procedures :- Continued 2011-14

Revenue Rulings :- Continued

1978-130

Bulletin 2015-1 through 2015-24

Amplified by

Revoked by

Rev. Proc. 2015-13, 2015-5 I.R.B. 419

Rev. Rul. 2015-9, 2015-21 I.R.B. 972

Announcements:

2011-14

1975-491

2010-3

Clarified by

Revoked by

Rev. Proc. 2015-13, 2015-5 I.R.B. 419

Rev. Rul. 2015-11, 2015-21 I.R.B. 975

Amplified by

Ann. 2015-3, 2015-3 I.R.B. 328

1997-27

1990-65

Revenue Procedures:

Clarified by

Revoked by Rev. Rul. 2015-11, 2015-21 I.R.B. 975

Rev. Proc. 2015-13, 2015-5 I.R.B. 419

2014-01

90-5

Superseded by

1997-27

Rev. Proc. 2015-01, 2015-01 I.R.B. 1

Modified by Rev. Proc. 2015-13, 2015-5 I.R.B. 419

Superseded by Rev. Rul. 2015-13, 2015-22 I.R.B. 1011

2014-02

2002-12

Superseded by

2012-11

Superseded by

Rev. Proc. 2015-02, 2015-01 I.R.B. 105

Superseded by Rev. Proc. 2015-17, 2015-7 I.R.B. 599

Rev. Rul. 2015-13, 2015-22 I.R.B. 1011

2014-03

2011-17

Superseded by

2015-9

Amplified by

Rev. Proc. 2015-03, 2015-01 I.R.B. 129

Modified by Rev. Proc. 2015-17, 2015-7 I.R.B. 599

Rev. Rul. 2015-13, 2015-22 I.R.B. 1011

2014-04

Notices:

Superseded by

2015-14

Rev. Proc. 2015-04, 2015-01 I.R.B. 144

Modified by

2013-01

Rev. Proc. 2015-20, 2015-9 I.R.B. 694

Modified by

2014-05

Notice 2015-20, 2015-11 I.R.B. 754

Superseded by

2013-22

Rev. Proc. 2015-05, 2015-01 I.R.B. 186

Modified by

2013-01

2014-06

Rev. Proc. 2015-22, 2015-11 I.R.B. 754

Superseded by Notice 2015-20, 2015-11 I.R.B. 754

Superseded by

2015-8

Rev. Proc. 2015-06, 2015-01 I.R.B. 194

Modified by

2014-24

Rev. Proc. 2015-22, 2015-11 I.R.B. 754

Obsoleted by Notice 2015-29, 2015-15 I.R.B. 882

2014-07

Superseded by

2014-59

Rev. Proc. 2015-07, 2015-01 I.R.B. 231

Modified by

1997-19 Modified by

Rev. Proc. 2015-24, 2015-13 I.R.B. 822

Notice 2015-38, 2015-21 I.R.B. 984

2014-08

Superseded by

2002-43

1997-26

Rev. Proc. 2015-08, 2015-01 I.R.B. 235

Modified by

Superseded by

Rev. Proc. 2015-26, 2015-15 I.R.B. 875

Notice 2015-38, 2015-21 I.R.B. 984

2014-10

Superseded by

2002-43

2001-62

Rev. Proc. 2015-10, 2015-2 I.R.B. 261

Obsoleted by

Superseded by

Rev. Proc. 2015-26, 2015-15 I.R.B. 875

Notice 2015-38, 2015-21 I.R.B. 984

2003-63

Superseded by

2014-31

2002-62

Rev. Proc. 2015-12, 2015-2 I.R.B. 265

Obsoleted by

Superseded by

Rev. Proc. 2015-31, 2015-23 I.R.B. 1017

Notice 2015-38, 2015-21 I.R.B. 984

2011-14

Modified by

Revenue Rulings:

2004-83

Rev. Proc. 2015-12, 2015-2 I.R.B. 265

92-19

Superseded by

Notice 2015-38, 2015-21 I.R.B. 984

2011-14

Supplemented by

Modified by

Rev. Rul. 2015-02, 2015-3 I.R.B. 321

Rev. Proc. 2015-13, 2015-5 I.R.B. 419

1A cumulative list of current actions on previously published items in Internal Revenue Bulletins 2014-27 through 2014-52 is in Internal Revenue Bulletin 2014-52, dated December 28,
2014.

# Internal Revenue Service Washington, DC 20224

Official Business
Penalty for Private Use, $300

# INTERNAL REVENUE BULLETIN

The Introduction at the beginning of this issue describes the purpose and content of this publication. The weekly Internal Revenue
Bulletins are available at www.irs.gov/irb/.

# We Welcome Comments About the Internal Revenue Bulletin

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Internal Revenue Bulletin 2015-24 (PDF rendition): IRS Notices

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