Internal Revenue Bulletin 2018-3 (PDF rendition): IRS Notices

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HIGHLIGHTS
OF THIS ISSUE
These synopses are intended only as aids to the reader in
identifying the subject matter covered. They may not be
relied upon as authoritative interpretations.
Administrative
Notice 2018–01, page 299.
This notice provides guidance for implementation of new IRC
7345, added by Section 32101 of Fixing America’s Surface
Transportation (FAST) Act. This legislation requires the IRS to
notify the Department of State of taxpayers certified to have
“seriously delinquent tax debt.” Upon receipt of section 7345
certification, the State Department is generally required to
deny a passport application for such individuals and may also
revoke or limit passports previously issued to such individuals.
The notice also describes exceptions to certification and tax-
payer remedies.
Administrative & Special
Announcement
Notice 2018–06, page 300.
This notice extends the due dates for certain 2017 information
reporting requirements for insurers, self-insuring employers,
and certain other providers of minimum essential coverage
under section 6055 and for applicable large employers under
section 6056. Specifically, this notice extends the due date for
furnishing to individuals the 2017 Form 1095–B, Health Cov-
erage, and the 2017 Form 1095–C, Employer-Provided Health
Insurance Offer and Coverage, from January 31, 2018, to
March 2, 2018. This notice also extends transitional good-faith
relief from section 6721 and 6722 penalties to the 2017
information reporting requirements under sections 6055 and
6056.
Finding Lists begin on page ii.
Bulletin No. 2018–3
January 16, 2018

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.
January 16, 2018Bulletin No. 2018–3

Part III. Administrative, Procedural, and Miscellaneous
Revocation, Limitation, or
Denial of Passport in Case
of Certain Tax
Delinquencies
Notice 2018–01
This notice provides taxpayers with in-
formation about the implementation of
new section 7345 of the Internal Revenue
Code (Code), enacted by Section 32101 of
Fixing America’s Surface Transportation
(FAST) Act, Pub. L.114 –94, on Decem-
ber 4, 2015. Section 32101(a) of the
FAST Act added new Code section 7345,
which requires the Department of the
Treasury (Treasury) to notify the Depart-
ment of State (State Department) if a cer-
tification is made that an individual has a
“seriously delinquent tax debt.” Such cer-
tification or a reversal of such certification
may only be made by the Commissioner
of Internal Revenue, the Deputy Commis-
sioner for Services and Enforcement of
the Internal Revenue Service (IRS), or the
Commissioner of an operating division of
the IRS (collectively, Commissioner or
specified delegate). Upon receipt of a sec-
tion 7345 certification, section 32101(e)
of the FAST Act provides that the State
Department will generally deny an appli-
cation for issuance or renewal of a pass-
port from such individual, and may revoke
or limit a passport previously issued to
such individual. The IRS and State De-
partment will begin implementation of
these provisions in January of 2018.
I.Background
Section 7345(a) provides that if Treasury
receives certification by the Commissioner
that an individual has a seriously delinquent
tax debt, such certification must be transmit-
ted to the State Department for action with
respect to denial, revocation, or limitation of
a passport.
Under section 7345(b)(1), a “seriously
delinquent tax debt” is an unpaid, legally
enforceable, and assessed federal tax liabil-
ity of an individual, greater than $50,000,
and for which:
•A notice of federal tax lien has been
filed under section 6323, and the tax-
payer’s right to a hearing under section
6320 has been exhausted or lapsed; or
•A levy has been issued under section
6331.
Pursuant to section 7345(f), the $50,000
amount is adjusted for inflation each calen-
dar year beginning after 2016.
The $50,000 federal tax liability
threshold is calculated by aggregating the
total amount of all current tax liabilities
for all taxable years and periods meeting
the above criteria (including penalties and
interest) assessed against an individual.
Section 7345(b)(2) provides that a se-
riously delinquent tax debt does not in-
clude the following:
•A debt that is being timely paid under
an IRS-approved installment agree-
ment under section 6159;
•A debt that is being timely paid under
an offer in compromise accepted by
the IRS under section 7122;
•A debt that is being timely paid under
the terms of a settlement agreement
with the Department of Justice under
section 7122;
•A debt in connection with a levy for
which collection is suspended because
of a request for a due process hearing
(or because such a request is pending)
under section 6330; and
•A debt for which collection is sus-
pended because the individual made
an innocent spouse election (section
6015(b) or (c)) or the individual re-
quested innocent spouse relief (section
6015(f)).
Section 7345(c)(1) requires the IRS to
notify the State Department if the Com-
missioner reverses the certification be-
cause it is erroneous or if the debt with
respect to such certification is fully satis-
fied, becomes unenforceable, or ceases to
be a seriously delinquent tax debt. Upon
receipt of a notice of the reversal of the
certification from the IRS under section
7345(c), section 32101(g) of the FAST
Act requires the State Department to re-
move the certification with respect to such
debt from the individual’s record at the
State Department.
Section 7345(c)(2) provides the tim-
ing for IRS to notify the State Depart-
ment about a reversal. In the case of a
debt that has been fully satisfied or has
become legally unenforceable (such as
when the collection statute of limita-
tions has run under section 6502), sec-
tion 7345(c)(2)(A) provides that notifi-
cation under section 7345(c)(1) must be
made not later than the date required for
issuing the certificate of release of lien
with respect to such debt under section
6325(a) (30 days after the day on which
the liability is fully satisfied or legally
unenforceable or following acceptance
of a bond in full payment of the liabil-
ity). In the case of an individual who
makes an election under section 6015(b)
or (c) or requests relief under section
6015(f), section 7345(c)(2)(B) provides
that notification under section 7345(c)
(1) must be made not later than 30 days
after such election or request. In the
case of an installment agreement under
section 6159 or an offer in compromise
under section 7122, section 7345(c)(2)
(C) provides that notification under sec-
tion 7345(c)(1) must be made not later
than 30 days after such agreement is
entered into or such offer is accepted by
the IRS. Finally, in the case of a certi-
fication found to be erroneous, section
7345(c)(2)(D) provides that notification
under section 7345(c)(1) must be made
as soon as practicable after such finding.
In all other cases, section 7345(c) pro-
vides that such notification shall be
made as soon as practicable.
Section 7345(d) requires the IRS to
contemporaneously notify an individual
when he or she is the subject of a certifi-
cation or reversal of a certification. The
notice must include a description in sim-
ple nontechnical terms of the right to
bring civil suit under section 7345(e). This
notice is the Notice CP508C, “Notice of
certification of your seriously delinquent
federal tax debt to the State Department.”
Section 7345(e) provides that an indi-
vidual has the right to judicial review of
whether a certification was erroneous or
whether the IRS failed to reverse a certi-
fication in either a United States district
court or the United States Tax Court. If a
court determines that the certification was
erroneous, the court may order the IRS to
notify the Secretary of State that the cer-
tification was erroneous.
Bulletin No. 2018–3January 16, 2018
299

Section 7345(g) provides that the cer-
tification or reversal of a certification may
only be delegated by the Commissioner of
Internal Revenue to the Deputy Commis-
sioner for Services and Enforcement, or
the Commissioner of an operating divi-
sion, of the IRS.
In addition, section 7508(a)(3) was
added to the Code by section 32101(d) of
the FAST Act to provide that certification
of a seriously delinquent tax debt under
section 7345 will be postponed while an
individual is serving in an area designated
as a combat zone or participating in a
contingency operation.
In addition to the statutory exceptions
set forth in section 7345(b)(2) and section
7508(a), the Internal Revenue Manual
(IRM) will be updated to include informa-
tion about circumstances under which a
tax debt will not be subject to the certifi-
cation process. The IRS will continue to
monitor the certification process after im-
plementation and may update the IRM if
necessary to meet the requirements of the
program.
II.Discussion
If an exception set forth in section
7345(b)(2) applies, the State Department
will not be notified that the taxpayer has a
seriously delinquent tax debt and there-
fore section 32101(e) of the FAST Act,
regarding denial of a passport application
or revocation of a passport, will not apply
with respect to such taxpayer. In addition,
if after the State Department has been
notified of a seriously delinquent tax debt
certified under section 7345 the Commis-
sioner or specified delegate determines
that the tax debt should not have been
certified (for instance, if a statutory exclu-
sion or one of the circumstances set forth
in the IRM applies), the IRS will notify
the State Department in accordance with
section 7345(c) that the certification has
been reversed. The reversal notification
will be made as soon as practicable after
the determination.
Upon receipt of a notice from the IRS
under section 7345(c) that the certifica-
tion has been reversed, section 32101(g)
of the FAST Act requires the State De-
partment to remove the certification
from the individual’s record with re-
spect to such debt. The certification of a
seriously delinquent tax debt to the State
Department will be reversed if the tax
debt no longer qualifies as seriously
delinquent under section 7345(b)(2).
Therefore, taxpayers notified that certi-
fication of their seriously delinquent tax
debt has been transmitted to the State
Department should consider paying the
tax owed in full, or entering into an
installment agreement under section
6159 or an offer in compromise under
section 7122 with respect to the debt.
More information on these payment op-
tions can be found at [https://www.irs.gov/
businesses/small-businesses-self-employed/
revocation-or-denial-of-passport-in-case-of-
certain-unpaid-taxes].
When a certified taxpayer applies for
a passport, the State Department, in gen-
eral, will provide the applicant with 90
days to resolve their tax delinquency
(such as by making full payment, enter-
ing into an installment agreement under
section 6159, or IRS acceptance of an
offer in compromise under section
7122) before denying the application. If
a taxpayer needs their passport to travel
within those 90 days, the taxpayer must
contact the IRS and resolve the matter
within 45 days from the date of appli-
cation so that the IRS has adequate time
to notify the State Department.
Generally, the sole remedy for a tax-
payer who believes that a certification is
erroneous, or that the Commissioner or
specified delegate incorrectly failed to
reverse a certification because the tax
debt is either fully satisfied or ceases to
be a seriously delinquent tax debt by
reason of section 7345(b)(2), is to file a
civil action in court under section
7345(e). The taxpayer may not go to
IRS Appeals to challenge the certifica-
tion or the decision by the Commis-
sioner or specified delegate not to re-
verse a certification. However, the
taxpayer may contact the phone number
in the Notice CP508C to request rever-
sal of the certification if the taxpayer
believes that the certification is errone-
ous.
DRAFTING INFORMATION
The principal author of this notice is
Robin Ferguson of the Office of the As-
sociate Chief Counsel (Procedure and
Administration). For further information
about this Notice contact Robin Ferguson
at (202) 317-6832 (not a toll-free num-
ber).
EXTENSION OF DUE DATE
FOR FURNISHING
STATEMENTS AND OF
GOOD-FAITH TRANSITION
RELIEF UNDER I.R.C.
SECTIONS 6721 AND 6722
FOR REPORTING REQUIRED
BY I.R.C. SECTIONS 6055
AND 6056 FOR 2017
Notice 2018–06
PURPOSE
This notice extends the due date for
certain 2017 information-reporting re-
quirements for insurers, self-insuring em-
ployers, and certain other providers of
minimum essential coverage under sec-
tion 6055 of the Internal Revenue Code
(Code) and for applicable large employers
under section 6056 of the Code. Specifi-
cally, this notice extends the due date for
furnishing to individuals the 2017 Form
1095–B,Health Coverage, and the 2017
Form 1095–C,Employer-Provided Health
Insurance Offer and Coverage, from Jan-
uary 31, 2018, to March 2, 2018. This
notice also extends good-faith transition
relief from section 6721 and 6722 penal-
ties to the 2017 information-reporting re-
quirements under sections 6055 and 6056.
BACKGROUND
Sections 6055 and 6056 were added to
the Code by sections 1502 and 1514 of the
Patient Protection and Affordable Care
Act (ACA), enacted March 23, 2010, Pub.
L. No. 111–148, 124 Stat. 119, 250, 256.
Section 6055 requires health insurance is-
suers, self-insuring employers, govern-
ment agencies, and other providers of
minimum essential coverage to file and
furnish annual information returns and
statements regarding coverage provided.
Section 6056 requires applicable large
employers (generally those with 50 or
more full-time employees, including full-
time equivalent employees, in the previ-
ous year) to file and furnish annual infor-
mation returns and statements relating to
January 16, 2018Bulletin No. 2018–3
300

the health insurance, if any, that the em-
ployer offers to its full-time employees.
Section 6056 was amended by sections
10106(g) and 10108(j) of the ACA and
was further amended by section 1858(b)
(5) of the Department of Defense and
Full-Year Continuing Appropriations Act,
2011, Pub. L. No. 112–10, 125Stat. 38,
169. Section 36B, which was added to
the Code by section 1401 of the ACA,
provides a premium tax credit for eligi-
ble individuals who enroll in coverage
through a Health Insurance Market-
place. Section 5000A, which was added
to the Code by section 1501(b) of the
ACA, generally provides that individu-
als must have minimum essential cover-
age, qualify for an exemption from the
minimum essential coverage require-
ment, or make an individual shared re-
sponsibility payment when they file
their federal income tax return.
Section 6721 of the Code imposes a
penalty for failing to timely file an infor-
mation return or for filing an incorrect or
incomplete information return. Section
6722 of the Code imposes a penalty for
failing to timely furnish an information
statement or for furnishing an incorrect or
incomplete information statement. Sec-
tion 6721 and 6722 penalties are imposed
with regard to information returns and
statements listed in section 6724(d) of the
Code, which includes those required by
sections 6055 and 6056.
Final regulations, published on March
10, 2014, relating to the reporting require-
ments under sections 6055 and 6056,
specify the deadline for information re-
porting required by those sections.See
Information Reporting of Minimum Es-
sential Coverage, T.D. 9660, 2014 –13
I.R.B. 842; Information Reporting by
Applicable Large Employers on Health
InsuranceCoverageOfferedUnder
Employer-Sponsored Plans, T.D. 9661,
2014 –13 I.R.B. 855.
The regulations under section 6055 re-
quire every person that provides minimum
essential coverage to an individual during
a calendar year to file with the Internal
Revenue Service (Service) an information
return and a transmittal on or before the
following February 28 (March 31 if filed
electronically) and to furnish to the re-
sponsible individual identified on the re-
turn a written statement on or before Jan-
uary 31 following the calendar year to
which the statement relates. The Service
has designated Form 1094 –B,Transmittal
of Health Coverage Information Returns,
and Form 1095–B,Health Coverage,to
meet the requirements of the section 6055
regulations.
The regulations under section 6056 re-
quire every applicable large employer or a
member of an aggregated group that is
determined to be an applicable large em-
ployer (ALE member) to file with the Ser-
vice an information return and a transmit-
tal on or before February 28 (March 31 if
filed electronically) of the year following
the calendar year to which it relates and to
furnish to full-time employees a written
statement on or before January 31 follow-
ing the calendar year to which the state-
ment relates. The Service has designated
Form 1094 –C,Transmittal of Employer-
Provided Health Insurance Offer and
Coverage Information Returns, and Form
1095–C,Employer-Provided Health In-
surance Offer and Coverage, to meet the
requirements of the section 6056 regula-
tions.
The regulations under sections 6055 and
6056 allow the Service to grant an extension
of time of up to 30 days to furnish Forms
1095–B and 1095–C for good cause shown.
Treas. Reg. §§ 1.6055–1(g)(4)(i)(B)(1),
301.6056 –1(g)(1)(ii)(A). In addition, filers
of Forms 1094 –B, 1095–B, 1094 –C, and
1095–C may receive an automatic 30-day
extension of time to file such forms with the
Service by submitting Form 8809,Applica-
tion for Extension of Time To File Informa-
tion Returns, on or before the due date for
filing those forms. Treas. Reg. § 1.6081–1;
Temp. Treas. Reg. § 1.6081– 8T. Under cer-
tain hardship conditions, filers who submit
Form 8809 before the automatic 30-day ex-
tension period expires and explain in detail
why the additional time is needed may also
receive an additional 30-day extension of
time to file Forms 1094 –B, 1095–B,
1094 –C, and 1095–C with the Service.Id.
The preambles to the section 6055 and
6056 regulations (T.D. 9660, 2014 –13
I.R.B. 842; T.D. 9661, 2014 –13 I.R.B. 855)
provided that, for reporting of 2015 offers
and coverage, the Service would not impose
penalties under sections 6721 and 6722 on
reporting entities that can show that they
made good-faith efforts to comply with the
information-reporting requirements. This
relief applied only to furnishing and filing
incorrect or incomplete information re-
ported on a statement or return, and not to a
failure to timely furnish or file a statement
or return. Notice 2015– 87, 2015–52 I.R.B.
889, reiterated that relief, and Notice 2015–
68, 2015– 41 I.R.B. 547, provided additional
information about that relief with regard to
reporting under section 6055. The pream-
bles also noted the general rule that, under
section 6724 and the related regulations, the
section 6721 and 6722 penalties may be
waived if a failure to timely furnish or file a
statement or return is due to reasonable
cause. To establish reasonable cause, the
reporting entity must demonstrate that it
acted in a responsible manner and that the
failure was due to significant mitigating fac-
tors or events beyond the reporting entity’s
control. In addition, proposed regulations
under section 6055 published on August 2,
2016, proposed additional rules for report-
ing. 81 Fed. Reg. 50671.
Notice 2016 – 4, 2016 –3 I.R.B. 279,
extended the due dates for the 2015
information-reporting requirements under
sections 6055 and 6056 (both those for
furnishing to individuals and for filing
with the Service). In particular, the notice
provided that the furnishing deadline for
the 2015 Forms 1095–B and 1095–C was
extended from February 1, 2016, to March
31, 2016, and that the filing deadline
for the 2015 Forms 1094 –B, 1095–B,
1094 –C, and 1095–C was extended from
February 29, 2016, to May 31, 2016, if not
filing electronically, and from March 31,
2016, to June 30, 2016, if filing electron-
ically. In addition, the notice provided that
the provisions regarding an automatic and
permissive 30-day extension of time for
filing information returns and a permis-
sive extension of time (of up to 30 days)
for furnishing statements would not apply
to the extended due dates.
Notice 2016 –70, 2016 – 49 I.R.B. 784,
extended the due dates for the 2016
information-reporting requirements under
sections 6055 and 6056 for furnishing
statements to individuals. In particular,
the notice provided that the furnishing
deadline for the 2016 Forms 1095–B and
1095–C was extended from January 31,
2017, to March 2, 2017. Notice 2016 –70
did not extend the deadline for filing in-
formation returns with the Service, nor did
it affect any extension that would other-
Bulletin No. 2018–3January 16, 2018
301

wise be applicable to the deadline. The
notice also extended good faith transition
relief from section 6721 and 6722 penal-
ties to the 2016 information-reporting re-
quirements under sections 6055 and 6056.
TRANSITION RELIEF
A.Extension of Due Date for
Furnishing to Individuals under Sections
6055 and 6056 for 2017
Following consultation with stakehold-
ers, the Department of the Treasury (Trea-
sury) and the Service have determined
that a substantial number of employers,
insurers, and other providers of minimum
essential coverage need additional time
beyond the January 31, 2018, due date to
gather and analyze the information and
prepare the 2017 Forms 1095–B and
1095–C to be furnished to individuals.
Accordingly, this notice extends by 30
days the due date for furnishing the 2017
Form 1095–B and the 2017 Form 1095–C,
from January 31, 2018, to March 2, 2018.
In view of this automatic extension, the
provisions under Treas. Reg. §§ 1.6055–
1(g)(4)(i)(B)(1) and 301.6056 –1(g)(1)
(ii)(A) allowing the Service to grant an
extension of time of up to 30 days to
furnish Forms 1095–B and 1095–C will
not apply to the extended due date. Not-
withstanding the extension provided in
this notice, employers and other coverage
providers are encouraged to furnish 2017
statements as soon as they are able.
Treasury and the Service have deter-
mined that there is no similar need for
additional time for employers, insurers,
and other providers of minimum essential
coverage to file with the Service the 2017
Forms 1094 –B, 1095–B, 1094 –C, and
1095–C.Therefore, this notice does not
extend the due date for filing with the
Service the 2017 Forms 1094 –B, 1095–B,
1094 –C, or 1095–C, which remains Feb-
ruary 28, 2018, if not filing electronically,
or April 2, 2018, if filing electronically.
However, this notice does not affect the
provisions regarding an automatic exten-
sion of time for filing information returns,
which remain available under the normal
rules by submitting a Form 8809.See
Treas. Reg. § 1.6081–1; Temp. Treas.
Reg. § 1.6081– 8T. It also does not affect
the provisions regarding additional exten-
sions of time to file.Id.
Employers or other coverage providers
that do not comply with the due dates for
furnishing Forms 1095–B and 1095–C (as
extended under the rules described above)
or for filing Forms 1094 –B, 1095–B,
1094 –C, or 1095–C are subject to penal-
ties under section 6722 or 6721 for failure
to timely furnish and file, respectively.
However, employers and other coverage
providers that do not meet the relevant
due dates should still furnish and file. The
Service will take such furnishing and fil-
ing into consideration when determining
whether to abate penalties for reasonable
cause.
The extension of the due date provided
by this notice applies only to section 6055
and 6056 information statements for cal-
endar year 2017 furnished in 2018 and
does not require the submission of any
request or other documentation to the Ser-
vice. Because the 30-day extension of the
due date to furnish granted in this notice
applies automatically and is as generous
as the permissive 30-day extension of
time to furnish 2017 information state-
ments under sections 6055 and 6056 that
have already been requested by some re-
porting entities in submissions to the Ser-
vice, the Service will not formally respond
to such requests.
Because of the extension granted un-
der this notice, some individual taxpay-
ers may not receive a Form 1095–B or
Form 1095–C by the time they are ready
to file their 2017 tax return. Taxpayers
may rely on other information received
from their employer or other coverage
provider for purposes of filing their re-
turns, including determining eligibility
for the premium tax credit under section
36B and confirming that they had mini-
mum essential coverage for purposes of
sections 36B and 5000A. Taxpayers do
not need to wait to receive Forms
1095–B and 1095–C before filing their
returns. Individuals need not send the
information relied upon to the Service
when filing their returns but should keep
it with their tax records.
B.Extension of Good Faith Transition
Relief from Section 6721 and 6722
Penalties for 2017
In implementing new information-
reporting requirements, short-term relief
from penalties frequently is provided.
This relief recognizes the ongoing chal-
lenges involved in developing procedures
and systems to accurately collect and re-
port information in compliance with these
reporting requirements. The preambles to
the section 6055 and 6056 regulations
provided transition relief from penalties
under sections 6721 and 6722 to reporting
entities that could show that they made
good-faith efforts to comply with the
information-reporting requirements for
2015. This relief applied only to incorrect
and incomplete information reported on
the statement or return and not to a failure
to timely furnish or file a statement or
return. Notice 2016 –70 extended this re-
lief for the information-reporting require-
ments under sections 6055 and 6056 for
2016. Following consultation with stake-
holders, Treasury and the Service have
determined that this relief is also appro-
priate for 2017.
Specifically, this notice extends tran-
sition relief from penalties under sec-
tions 6721 and 6722 to reporting entities
that can show that they have made good-
faitheffortstocomplywiththe
information-reporting requirements un-
der sections 6055 and 6056 for 2017
(both for furnishing to individuals and
for filing with the Service) for incorrect
or incomplete information reported on
the return or statement. This relief ap-
plies to missing and inaccurate taxpayer
identification numbers and dates of
birth, as well as other information re-
quired on the return or statement. No
relief is provided in the case of reporting
entities that do not make a good-faith
effort to comply with the regulations or
that fail to file an information return or
furnish a statement by the due dates (as
extended under the rules described
above). In determining good faith, the
Service will take into account whether
an employer or other coverage provider
made reasonable efforts to prepare for
reporting the required information to the
Service and furnishing it to employees
and covered individuals, such as gather-
ing and transmitting the necessary data
to an agent to prepare the data for sub-
mission to the Service or testing its abil-
ity to transmit information to the Ser-
vice. In addition, the Service will take
into account the extent to which the
employer or other coverage provider is
January 16, 2018Bulletin No. 2018–3
302

taking steps to ensure that it will be able
to comply with the reporting require-
ments for 2018.
C.Future Years
The extension of time for furnishing
information statements under sections
6055 and 6056 for 2017 provided in this
notice has no effect on these information-
reporting provisions for other years or on
the effective date or application of other
ACA provisions. Treasury and the Service
do not anticipate extending this transition
relief – either with respect to the due dates
or with respect to good faith relief from
section 6721 and 6722 penalties – to re-
porting for 2018.
DRAFTING INFORMATION
The principal author of this notice is
Danielle Pierce of the Office of Associ-
ate Chief Counsel (Procedure and Ad-
ministration). For further information
regarding this notice contact Danielle
Pierce at (202) 317-6845 (not a toll-free
number).
Bulletin No. 2018–3January 16, 2018
303

Definition of Terms
Revenue rulings and revenue procedures
(hereinafter referred to as “rulings”) that
have an effect on previous rulings use the
following defined terms to describe the
effect:
Amplifieddescribes a situation where
no change is being made in a prior pub-
lished position, but the prior position is
being extended to apply to a variation of
the fact situation set forth therein. Thus, if
an earlier ruling held that a principle ap-
plied to A, and the new ruling holds that
the same principle also applies to B, the
earlier ruling is amplified. (Compare with
modified, below).
Clarifiedis used in those instances
where the language in a prior ruling is
being made clear because the language
has caused, or may cause, some confu-
sion. It is not used where a position in a
prior ruling is being changed.
Distinguisheddescribes a situation
where a ruling mentions a previously pub-
lished ruling and points out an essential
difference between them.
Modifiedis used where the substance
of a previously published position is being
changed. Thus, if a prior ruling held that a
principle applied to A but not to B, and the
new ruling holds that it applies to both A
and B, the prior ruling is modified because
it corrects a published position. (Compare
withamplifiedandclarified, above).
Obsoleteddescribes a previously pub-
lished ruling that is not considered deter-
minative with respect to future transac-
tions. This term is most commonly used in
a ruling that lists previously published rul-
ings that are obsoleted because of changes
in laws or regulations. A ruling may also
be obsoleted because the substance has
been included in regulations subsequently
adopted.
Revokeddescribes situations where the
position in the previously published ruling
is not correct and the correct position is
being stated in a new ruling.
Supersededdescribes a situation where
the new ruling does nothing more than
restate the substance and situation of a
previously published ruling (or rulings).
Thus, the term is used to republish under
the 1986 Code and regulations the same
position published under the 1939 Code
and regulations. The term is also used
when it is desired to republish in a single
ruling a series of situations, names, etc.,
that were previously published over a pe-
riod of time in separate rulings. If the new
ruling does more than restate the sub-
stance of a prior ruling, a combination of
terms is used. For example,modifiedand
supersededdescribes a situation where the
substance of a previously published ruling
is being changed in part and is continued
without change in part and it is desired to
restate the valid portion of the previously
published ruling in a new ruling that is
self contained. In this case, the previously
published ruling is first modified and then,
as modified, is superseded.
Supplementedis used in situations in
which a list, such as a list of the names of
countries, is published in a ruling and that
list is expanded by adding further names
in subsequent rulings. After the original
ruling has been supplemented several
times, a new ruling may be published that
includes the list in the original ruling and
the additions, and supersedes all prior rul-
ings in the series.
Suspendedis used in rare situations to
show that the previous published rulings
will not be applied pending some future
action such as the issuance of new or
amended regulations, the outcome of
cases in litigation, or the outcome of a
Service study.
Abbreviations
The following abbreviations in current
use and formerly used will appear in ma-
terial published in the Bulletin.
A—Individual.
Acq.—Acquiescence.
B—Individual.
BE—Beneficiary.
BK—Bank.
B.T.A.—Board of Tax Appeals.
C—Individual.
C.B.—Cumulative Bulletin.
CFR—Code of Federal Regulations.
CI—City.
COOP—Cooperative.
Ct.D.—Court Decision.
CY—County.
D—Decedent.
DC—Dummy Corporation.
DE—Donee.
Del. Order—Delegation Order.
DISC—Domestic International Sales Corporation.
DR—Donor.
E—Estate.
EE—Employee.
E.O.—Executive Order.
ER—Employer.
ERISA—Employee Retirement Income Security Act.
EX—Executor.
F—Fiduciary.
FC—Foreign Country.
FICA—Federal Insurance Contributions Act.
FISC—Foreign International Sales Company.
FPH—Foreign Personal Holding Company.
F.R.—Federal Register.
FUTA—Federal Unemployment Tax Act.
FX—Foreign corporation.
G.C.M.—Chief Counsel’s Memorandum.
GE—Grantee.
GP—General Partner.
GR—Grantor.
IC—Insurance Company.
I.R.B.—Internal Revenue Bulletin.
LE—Lessee.
LP—Limited Partner.
LR—Lessor.
M—Minor.
Nonacq.—Nonacquiescence.
O—Organization.
P—Parent Corporation.
PHC—Personal Holding Company.
PO—Possession of the U.S.
PR—Partner.
PRS—Partnership.
PTE
—Prohibited Transaction Exemption.
Pub. L.—Public Law.
REIT—Real Estate Investment Trust.
Rev. Proc.—Revenue Procedure.
Rev. Rul.—Revenue Ruling.
S—Subsidiary.
S.P.R.—Statement of Procedural Rules.
Stat.—Statutes at Large.
T—Target Corporation.
T.C.—Tax Court.
T.D.—Treasury Decision.
TFE—Transferee.
TFR—Transferor.
T.I.R.—Technical Information Release.
TP—Taxpayer.
TR—Trust.
TT—Trustee.
U.S.C.—United States Code.
X—Corporation.
Y—Corporation.
Z—Corporation.
Bulletin No. 2018–3January 16, 2018
i

Numerical Finding List
1
Bulletin 2018 –3
Notices:
2018-01, 2018-3 I.R.B.299
2018-02, 2018-2 I.R.B.281
2018-03, 2018-2 I.R.B.285
2018-06, 2018-3 I.R.B.300
Revenue Procedures:
2018-1, 2018-1 I.R.B.1
2018-2, 2018-1 I.R.B.106
2018-3, 2018-1 I.R.B.130
2018-4, 2018-1 I.R.B.146
2018-5, 2018-1 I.R.B.244
2018-7, 2018-1 I.R.B.282
2018-8, 2018-2 I.R.B.286
2018-9, 2018-2 I.R.B.290
Revenue Rulings:
2018-01, 2018-2 I.R.B.275
2018-02, 2018-2 I.R.B.277
2018-03, 2018-2 I.R.B.278
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–27 through 2017–52 is in Internal Revenue Bulletin
2017–52, dated December 27, 2017.
January 16, 2018Bulletin No. 2018–3
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2018 –3
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–27 through 2017–52 is in Internal Revenue Bulletin
2017–52, dated December 27, 2017.
Bulletin No. 2018–3January 16, 2018
iii

INTERNAL REVENUE BULLETIN
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