Internal Revenue Bulletin 2017-37 (PDF rendition): IRS Revenue Procedures

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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.
INCOME TAX
Rev. Proc. 2017–50, page 234.
This revenue procedure modifies Rev. Proc. 2008–37,
2008–2 (Vol.1) C.B. 137, to provide guidance regarding the
time for filing claims for recovery of “overpayments” (as de-
fined in § 1.148–3(i)(1) of the Income Tax Regulations) of
amounts paid to the United States with respect to the arbitrage
rebate requirement under § 148(f) of the Internal Revenue
Code for excess investment earnings, similar payments of
penalty in lieu of arbitrage rebate under § 148(f)(4)(C)(vii) and
(viii), and yield reduction payments under § 1.148–5(c).
Finding Lists begin on page ii.
Bulletin No. 2017–37
September 11, 2017

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.
September 11, 2017Bulletin No. 2017–37

Part III. Administrative, Procedural, and Miscellaneous
26 CFR 601.601: General arbitrage rebate rules.(Also
§ 1.148 –3)
Rev. Proc. 2017–50
SECTION 1. PURPOSE
This revenue procedure modifies Rev.
Proc. 2008–37, 2008–2 (Vol.1) C.B. 137,
to provide guidance to issuers of tax-
exempt bonds and other tax-advantaged
bonds regarding the time for filing claims
for recovery of “overpayments” (as de-
fined in § 1.148–3(i)(1) of the Income
Tax Regulations) of amounts paid to the
United States with respect to the arbi-
trage rebate requirement under § 148(f)
of the Internal Revenue Code for excess
investment earnings, similar payments
of penalty in lieu of arbitrage rebate
under § 148(f)(4)(C)(vii) and (viii),
and yield reduction payments under
§ 1.148–5(c). In particular, section 3 of
this revenue procedure extends the
deadline for filing claims for recovery of
such overpayments to two years after:
(1) the date that is 60 days after the final
computation date of the issue to which
the payment relates; or (2) with respect
to the portion of the overpayment paid
more than 60 days after the final com-
putation date, the date that the payment
was made to the United States.
SECTION 2. BACKGROUND
.01 Under § 103(b)(2), the exclusion
from gross income of interest on any State
or local bond under § 103(a) does not
apply to interest on an arbitrage bond
within the meaning of § 148.
.02 Section 148(f)(1) generally pro-
vides that a bond that is part of an issue
shall be treated as an arbitrage bond un-
less the issuer pays to the United States
any arbitrage rebate amounts described in
§ 148(f)(2) (arbitrage rebate) for the issue
according to the schedule provided in
§ 148(f)(3).
.03 Section 148(f)(3) provides, in part,
that, except to the extent provided by the
Secretary, the arbitrage rebate must be
paid in installments that are made at least
once every five years. The last installment
must be made no later than 60 days after
the day on which the last bond of the issue
is redeemed.
.04 Section 148(f)(4)(C)(vii) and (viii)
permits issuers of certain construction is-
sues (as defined in § 148(f)(4)(C)(iv)) to
elect to pay a penalty in lieu of arbitrage
rebate (penalty in lieu of arbitrage rebate)
in the manner and amount described in
§ 148(f)(4)(C)(vii) and (viii).
.05 Section 1.148–5(c)(1) permits issu-
ers to pay yield reduction payments that
may be taken into account in determining
the yield on an issue for arbitrage pur-
poses under § 148 (yield reduction pay-
ments) in the circumstances and manner
described in § 1.148–5(c).
.06 Section 1.148–3(i)(1) provides
that, in general, an issuer may recover an
overpayment of arbitrage rebate by estab-
lishing to the satisfaction of the Commis-
sioner that the overpayment occurred.
An “overpayment” is the excess of the
amount paid over the sum of the “rebate
amount” (as defined in § 1.148–3(b)) as
of the most recent “computation date” (as
defined in § 1.148–3(e)) and all amounts
that are otherwise required to be paid un-
der § 148 as of the date the recovery is
requested. Under § 1.148–3(e)(2), the fi-
nal computation date generally is the date
that an issue is discharged (for example,
retired at maturity or redeemed earlier).
.07 In general, overpayments of the
penalty in lieu of arbitrage rebate and
yield reduction payments are treated in the
same manner as overpayments of arbi-
trage rebate.See, generally,§§ 1.148–
3(i)(1), 1.148–5(c)(1) and (2), and 1.148–
7(k)(3) and (m).
.08 Rev. Proc. 2008–37 provides pro-
cedures for filing claims for recovery of
an overpayment of arbitrage rebate, pen-
alty in lieu of arbitrage rebate, or yield
reduction payments with respect to an is-
sue. Under section 3.02 of that revenue
procedure, a refund claim for an overpay-
ment amount must be filed by an issuer no
later than the date that is two years after
the final computation date for the applica-
ble issue of bonds under § 1.148–3(e)(2).
.09 Like section 3.02 of Rev. Proc.
2008–37, § 1.148–3(i)(3)(i) provides that
an issuer must request a refund of an
overpayment (claim) no later than the date
that is two years after the final arbitrage
computation date for the issue to which
the overpayment relates. Section 1.148–
3(g) provides that each arbitrage rebate
payment must be paid no later than 60
days after the computation date to which
the payment relates.
.10 Section 1.148–10(g) provides au-
thority to the Commissioner to waive
regulatory limitations under certain cir-
cumstances. Specifically, § 1.148–10(g)
provides that, notwithstanding any spe-
cific provision in §§ 1.148–1 through
1.148–11, the Commissioner may pre-
scribe extensions of temporary periods,
larger reasonably required reserve or re-
placement funds, or consequences of fail-
ures or remedial action under § 148 in lieu
of or in addition to other consequences of
those failures, or take other action, if the
Commissioner finds that good faith or
other similar circumstances so warrant,
consistent with the purposes of § 148.
.11 In certain circumstances involving
payments to the United States made under
§ 148 after the final computation date, the
application of the existing deadline to
request a refund of overpayments under
§ 1.148–3(i)(3)(i) may not provide an
adequate opportunity for issuers of tax-
advantaged bonds to recover such over-
payments.
.12 In the interest of sound tax admin-
istration and in reliance on authority under
§ 1.148–10(g), this revenue procedure ex-
tends the time for filing claims to recover
overpayments under § 148 to ensure that
issuers have a reasonable opportunity to
recover overpayments made both before
and after the final computation date. This
revenue procedure adds 60 days to the
existing 2-year deadline under § 1.148–
3(i)(3)(i) and provides a new 2-year dead-
line for payments made after the date that
is 60 days after the final computation date.
SECTION 3. EXTENDED
DEADLINE FOR CLAIMS FOR
RECOVERY OF OVERPAYMENTS
.01 An issuer may file a claim in ac-
cordance with this section 3 for a refund
of an overpayment, with respect to an
issue of bonds, no later than two years
after:
September 11, 2017Bulletin No. 2017–37
234

(1) the date that is 60 days after the
final computation date of the issue to
which the payment relates; or
(2) with respect to the portion of the
overpayment paid more than 60 days
after the final computation date, the date
that the payment is made to the United
States.
.02 Except as provided in section 3.01
of this revenue procedure, a claim for a
refund under this section 3 must be made
in accordance with the procedures for re-
questing a refund under § 1.148–3(i) and
section 3.01 of Rev. Proc. 2008–37 (or
corresponding provisions of any successor
revenue procedure).
SECTION 4. DATES OF
APPLICABILITY
.01 This revenue procedure applies to
claims that are pending or filed with the
Internal Revenue Service on or after Au-
gust 25, 2017, for recovery of overpay-
ments of arbitrage rebate, penalty in lieu
of arbitrage rebate, or yield reduction pay-
ments for an issue of bonds.
.02 For purposes of this revenue proce-
dure, an issuer that has made a payment
after the final computation date for the issue
to which the overpayment relates, but prior
to August 25, 2017, will be deemed to have
made the payment on August 25, 2017.
SECTION 5. EFFECT ON OTHER
DOCUMENTS
This revenue procedure modifies Rev.
Proc. 2008–37.
SECTION 6. DRAFTING
INFORMATION
The principal authors of this revenue
procedure are Timothy L. Jones and Zoran
Stojanovic of the Office of Associate
Chief Counsel (Financial Institutions and
Products). For further information regard-
ing this revenue procedure, contact Zoran
Stojanovic on (202) 317-6980 (not a toll-
free number).
Bulletin No. 2017–37September 11, 2017
235

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. 2017–37September 11, 2017
i

Numerical Finding List
1
Bulletin 2017–27 through 2017–37
Action on Decision:
2017-5, 2017-27 I.R.B.1
2017-6, 2017-33 I.R.B.194
Announcements:
2017-05, 2017-27 I.R.B.5
2017-08, 2017-28 I.R.B.9
2017-09, 2017-35 I.R.B.219
2017-10, 2017-33 I.R.B.210
Notices:
2017-36, 2017-33 I.R.B.208
2017-37, 2017-29 I.R.B.89
2017-38, 2017-30 I.R.B.147
2017-39, 2017-31 I.R.B.150
2017-40, 2017-32 I.R.B.190
2017-41, 2017-34 I.R.B.211
2017-42, 2017-34 I.R.B.212
2017-43, 2017-36 I.R.B.224
2017-44, 2017-36 I.R.B.226
Proposed Regulations:
REG-139633-08, 2017-31 I.R.B.175
REG-128483-15, 2017-32 I.R.B.191
REG-136118-15, 2017-28 I.R.B.9
Revenue Procedures:
2017-41, 2017-29 I.R.B.92
2017-42, 2017-29 I.R.B.124
2017-43, 2017-31 I.R.B.153
2017-44, 2017-35 I.R.B.216
2017-45, 2017-35 I.R.B.216
2017-47, 2017-36 I.R.B.229
2017-48, 2017-36 I.R.B.232
2017-50, 2017-37 I.R.B.234
Revenue Rulings:
2017-14, 2017-27 I.R.B.2
2017-15, 2017-32 I.R.B.176
2017-16, 2017-35 I.R.B.215
2017-17, 2017-36 I.R.B.222
Treasury Decisions:
9819, 2017-29 I.R.B.85
9820, 2017-32 I.R.B.178
9821, 2017-32 I.R.B.181
9822, 2017-33 I.R.B.195
9823, 2017-33 I.R.B.206
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–01 through 2017–26 is in Internal Revenue Bulletin
2017–26, dated June 27, 2017.
September 11, 2017Bulletin No. 2017–37
ii

Finding List of Current Actions on
Previously Published Items
1
Bulletin 2017–27 through 2017–37
Notices:
2015-77
Amplified by
Notice 2017-40, 2017-32 I.R.B.190
Revenue Procedures:
2016-27
Modified by
Rev. Proc. 2017-43, 2017-31 I.R.B.153
2016-27
Superseded by
Rev. Proc. 2017-43, 2017-31 I.R.B.153
2016-48
Superseded by
Rev. Proc. 2017-48, 2017-36 I.R.B.232
1
A cumulative list of all revenue rulings, revenue procedures, Treasury decisions, etc., published in Internal Revenue Bulletins 2017–01 through 2017–26 is in Internal Revenue Bulletin
2017–26, dated June 27, 2017.
Bulletin No. 2017–37September 11, 2017
iii

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